For a session without up or down by 1 or more. Vonnie pretty amazing. Wtie to unite going down going down. 43, . 27 for crude oil. That is 43. 27 for crude oil. Schlumberger1 , down 0. 75 . There were comments from the Russian Energy minister saying no need to impose output caps accurate prices. Clearly with that job we were looking at automakers as well. Bad, nothing that from automakers. Looking at ford, gm, Fiat Chrysler, all missing estimates. Ford is down 1. 4 pre 43 . 1. 43 . Reportswe have earnings of one of the biggest losers, campbell posting a disappointing forecast today, hurt by this policy recall and the organic food. This was acquired by campbell four years ago. So far sales have benefited from the fresh food push, but at the wrong time. David we will look for the caret function on the bloomberg, i am sure it is there. Check thets headlines on bloomberg first word news. Mark crumpton is in the newsroom. Says an anomaly occurred during the loading of a rocket today, and that led to the explosion at Cape Canaveral. The company is reviewing data to identify the cause. Mark nasa says spacex was theucting a test firing in blast occurred. It was considered routine in advance of a planned saturday launch from Cape Canaveral air force station. The rocket was supposed to hoist an israeli satellite rocket. It was also a part of facebooks plan to use a satellite to bring Internet Service to areas of subsaharan africa. The u. S. Geological survey says a 7. 2 earthquake 100 miles off the eastern coast of new Zealand North island struck today. There are no immediate reports of damage or injuries. A tsunami warning has not been issued. Chicago has concluded his deadliest month and about two decades. Inpeople there murdered august. This is the thirdlargest city in the united states. It already has had more murders 471, then new york and los angeles combined. That is 50 more than a year ago. The man who shot president Ronald Reagan 30 years ago will leave a Psychiatric Hospital to live fulltime in virginia september 10. He was deemed no longer danger to himself or others and will leave Saint Elizabeth hospital in washington to live fulltime with his mother. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton, this is bloomberg. David looking at tomorrows jobs report, estimates are 180,000 jobs in august, which were be a drop from 255,000 in july. Joining us now from your more insight is the chief economist at Bloomberg Intelligence. Always good to have you. When you look at the importance of tomorrows numbers, the speech from jackson hole, largely centered on inflation. Policymakers indicating they are happy enough with employment. What are the threshold they are looking for tomorrow . Carl it depends on threshold or what. The threshold to hike by year end, which is what they are trying to signal here, is something 125 or 150 would be good enough as long as we hold that pays through yearend to december. Ptember in september, there is little evidence we have shrugged off the sluggishness from the first half of the year. Motor vehicle sales you are highlighting that. All of these telling us it is a gradual reacceleration in the economy, but there is an extremely high hurdle for the confidence to take the plunge in september. Vonnie we had a building member of the foc speak today. What does he have to say about tomorrows number. If you look at employment growth, we should not expect that the employment rowing 200,000 jobs per month every month. Now Labor Participation has come down, it means employment growth probably will be somewhere, and it depends on the model and graphics Going Forward between 75 and 150 is enough to keep the employment rate constant. They are content with the unemployment right now. Is this the right kind of employment or inflation . We did see unit labor costs rising more than forecast for the second quarter. He wasnt in manufacturing though. Carl i agree with the president because she is not giving an exclusive forecast for tomorrow. She is talking about steady state employment in the economy, which would hold this constant and arguably hold a result in the inflation and vicinity of 2 as well. Miami calculations show that is somewhere around 100,000 mark. I am in agreement with that assessment. We will see faster job gains than that over the next couple of months because the economy is in fact accelerating. She is talking about a mediumterm view and productivity. I dont see that necessarily in the august numbers, but we still have slow growth albeit in alchemy economy is accelerating in the back half of the year. We have low relativity numbers as we saw in the revision you are highlighting. So slow growth but week productivity means weak productivity means we see the first number. David we focus on the headline number when we get the profit payroll tomorrow. When you dig deeper, what are you looking for . Carl well i am looking for an policymakers are looking for is evidence the economy is at full employment. Signs of wage pressure emerging, the average earnings number. Even more pressing is the nearterm performance of the economy. You look at aggregate hours worked or more importantly aggregate income growth, a big jobs earnings, and which helps a proxy for growth in the economy. That will show how these continue to drive spending, which is the sole engine of Economic Growth right now in the economy. Vonnie how concerned should we be about auto Sales Numbers . Carl there is significant changes in the auto sector with the onset of uber and ridesharing, so the question is how much pentup demand is in the economy. If we use the old rule, looking at auto sales on the demographic basis, that would suggest there is further upside potential for auto sales. If you look at the freed fleet age, that would suggest this as well. But talking with auto analysts, they suggest maybe the old rules have not been bent by significant changes taking place. One month i would not hit the panic button. Vonnie we will watch this closely tomorrow. Looking at whis on the bloomberg, this gives you an idea of the whisper number on the street. We will see what will happen this month. Thank you. Up, major automakers missing estimates for vehicle sales in august in the u. S. Good annual sales change . We will explore this. Mixed the u. K. Has seen signals from the postbrexit vote. The region is heading for trouble. York coming in new up is 3 10. Lets check in on the majors. We are declining for the dow down 0. 2 . Snp [indiscernible] and nasdaq is unchanged. It has erased gains. David welcome back to bloomberg markets. Vonnie you are looking out of the smokey manhattan. David it has been gray. Vonnie time for a look at the business flash. This drug company drug takeda isch data developing a zika vaccine. They will take 20 million for research and manufacturing. Human trials begin in the second half of next year. A newa preparing for search with truvada go. Trivago. The ipo will take lace later this year or early 17. And a lower court has thrown out a claim from access lindsay lohan. They say she had her like this use without permission. There was a lookalike model as a character in the game, complete with voice impersonation, shoulder length blonde hair and her signature peace sign. They said it was a game of fiction and satire. That is your Bloomberg Business flash update. David now we dig into the auto Sales Numbers. This may be hitting the end of the road, the growth. The numbers dont lie. Every major automaker missed estimates for august. , toyota. Early 9 Fiat Chrysler the only one with 3. 1 , trailing estimates as well. Consumers are not responding, it seems to him to them. See 17. 2 million, that is the Bloomberg Survey number. That is the orange line. In the case of auto sales, white line. U. S. Automakers have underperformed since the start of the year. Fee at chrysler down 26 . Ford shares fallen 10 even with the redesigned f150. It has been indicative of the truck over cars brand. You can see trucks in orange taking up cars taking up ticking up, cars are going down. The oranges trucks, the white is cars. The current trend sales were down. G. M. Silver lake chevrolet brought there is concern in the market that is overheated including blue diamond. They point out a chart of intensity of sales at the highest point in the current economic expansion. Consumers are paying for increase in auto purchases with borrowed money. This has been a big driver of Consumer Spending. Some economists are worried. Vonnie thanks. Now to the u. K. They reached a 10 month high last month as the pound boosted exports. U. K. Nce is mounting the economy is resilient in the wake of the brexit vote. The founder at Cumberland Advisors is still cautious. He spoke with the verb bloomberg surveillance team. The u. K. Is headed for trouble. There is firm after firm looking at elsewhere. Tom can currency adjustment, Deutsche Bank at 120, hsbc a stunning 110, if you get currency adjustment, you will have a rollsroyce among others. David if you can have currency adjustment without secondary, yes. But how you do that, you just put up a wonderful chart showing the history of 1992. What happened in the next two years . We had the crisis of worldwide currency crisis. We had banking stocks you cant do it. Herewe had Stanley Fischer a few days ago. When you look at what bankers are doing right now on the september 1, are you like focusedat Deutsche Bank on future financial and stability. . David i think the gap between riskless and risk, the why bore isead thing going on now restating the price of risk. There are now two categories of things. You have riskless under percent level one assets. You get paid no matter what, and you have the rest. Then you have the divide bill. Tom jonathan people maybe not want to live in frankfurt. They are try to persuade people to live in poland. People dont want to move along. So there is a kind of embedded infrastructure it will take a long time to unwind. And who is to say the decent deal cannot be done, david . Why does it have to be doom and gloom . David we dont know. Uncertainty rises. I agree with what you have said about the current situation. But if you had the u. K. In one position, what will the new one look like . Norway, switzerland, iceland . Whatever it looks like, it will be different than where it was before the vote. And we have seen deferrals of Capital Investment in the city in finance, and many open questions now from brexit. The fence is buying. I think it is a different question. We dont have a clue how this is going to play out. we dont know how the whole of europe is going to play out. Bunds bank now with ubs, the chairman talking this morning. They have a policy environment in front of them. We see week pmi out of italy, france. And negative rates are working, take a listen. The ratese are now, pact has been lost. Rates are at zero. They see a little more negative, but i was always skeptical about negative rates. They do more harm than good. Actual actually had those doubts since you left bundesbank. He left bundesbank the concern now grows and grows. That is where we are in this crazy world of negative rates. Tom do you believe in the First QuarterFourth Quarter and even next year bankers of different nations will transmit negative rates more than little people, or will they state in institutional vehicles stay in institutional vehicles . David you see marginal transition tom but where will they go . Will they expand to german people, if you will . David there will be political uproar if they try and do it. We saw political uproar in the impact every time there is a mini shock. The italian bank, whatever happens to be. People dont want to deal with negative rates. David the chairman and founder at Cumberland Advisors on bloomberg surveillance earlier today. We have trading with netflix, streaming under pressure, down 14 . Vonnie it is time now for insight. We have a person from delta derivatives. We thank you for joining us. We are seeing the first day of trading, and once again a tight, tight range. What is going on . Tim it will remain tight until tomorrows job numbers. We have been in this trading since the middle of july when the brexit rally stalled out. Really 2 , 2. 5 trading range. We will see what it takes to break out. Unless tomorrows job number is red hot, well north of 200, maybe 180, the fed will continue to sit on their hands, given the economic convention. A lot of position squaring and wait and see on the trading floor. Vonnie how are you playing tomorrow, when there is such Little Movement in the overall agencies . Tim i think they are positioning for what comes next. At some point we know, mark is going to break out. Given the vix is at 114 now, positioning with longterm option strategies is awfully for breakout in the longterm. The longer we go, the bigger the loan will be. We will see if it does move. Option prices are very cheap. A lot of positions to either protect or present an upside breakout. Vonnie you guys, you are speaking for a group of guys now. Tim it is a redhot number like we talked about or a real dismal number. Two or really have to be three standard deviation move to get things going. Is market with lowvolume trying for a lot of wiggle room. Unless things are really alarming either upside or downside, we will clean up away from next week. Vonnie this has been the quietest stock in the last year. 3 volatility. You are taking advantage of that, tell us how. Tim on historic volatility, this is the quietest it has been all year. Implied volatility, fast approaching as well. And a similar market, we get a 98k a big movement, a inflection movement. September where it is straddling september. In different about a move up or down. Paying six dollars for that. Last quarter it was mixed netflix at the same price, north of eight dollars, so it dropped 25 . I like the fact it is cheap, and netflix is due for a pop or a drop. Vonnie all right, thank you. From delta derivatives, and thank you from everyone down there. David an important programming note. Tomorrow, dont miss a very rare exclusive interview with president Vladimir Putin speaking to our chief editor. We will watch that with the russian president. On monday, you dont want to miss a special hourlong report revealing with Vladimir Putin monday. That is told 00 eastern. Matt i am matt miller. Lets check out the headlines. For that we go to matt mark crumpton. Tsunami warning for the north island. A foot highway was generated at east cape and extends to auckland, the most populous city. This 7. 1 magnitude earthquake struck off the east coast 4 40 a. M. Local time, followed by several aftershocks. Residents and businesses along floridas gulf coast are bracing for hermine, upgraded to a hurricane. Gov. Rick scott calls the storm potentially lifethreatening. Residents have been asked to evacuate, and government offices in 51 counties closed at noon. The last time was wilma in 2005. That entered the state along the southwest gulf coast as a category three storm, leaving five people dead and causing billions of damages. Hillary clinton leads donald trump by seven points in the latest nationwide poll. The Suffolk University showed clinton has 48 , trump with 41 . In the fourway race, clinton is 42 to 35 . Gary johnson has 9 , and gilles simon is at 4 jill stein is at 4 . The french spidermans field this 600 foot high skyscraper outside of paris spiderman foot highs 600 skyscraper outside of paris. He has also done the Empire State Building and the towers in malaysia. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Back to you. Nejra markets close in under 30 minutes. Lets go to the nasdaq with abigail doolittle. The nasdaqoking at falling off. It opened higher, then dropped lower on disappointing i. S. Am report, and that it is trading at slightly higher again. The nasdaq right now is basically unchanged. We see very small gains and losses. It looks like it will be right down to the wire. If the nasdaq have to close down today, it will be the first threeday decline since the middle of june. That will have the biggest drags on the nasdaq, all day tesla shares are down sharply as a recent solar city merger filing exposed cash. Not only is this tesla cash but also suggesting perhaps the merger, the proposed merger be green between tesla and solar city may not go through. They need shareholder approval. With these issues between the ceo,nies linked by the some wonder of it will go through. As for tesla its self, lots of turbulence. This is a year to date term. Shares at tesla have fallen into bear markets in two bear markets. Right now tesla is back in correction territory. This does not have to do with the solar city merger but investors wondering whether or not they can meet is whether the rather ambitious target for this year and ahead. Nejra what about bright spots . Abigail the biggest boost all day and helping the nasdaq to be up 0. 1 , Charter Communications. Shares are higher. That is their best day in quite some time on news the companys stock has been added to the s p 500 and will be replacing the Storage Company pnc. And the reason this is reacting in this way, according to Bloomberg Intelligence paul sweeney, not just on this but in general where are added to the s p 500, it forces the influence. Anager to buy shares others say it is a status symbol or a coming of age. Good stuff for Charter Communications helping the nasdaq today. Nejra abigail doolittle, thank you. Matt tomorrow joe we get the most important jobs report of the year after the hawkish tone in recent weeks. This could seal the deal of a race this month. Next guest s