I am informed. Some other nuggets germany where industrial output rose 1. 9 percent. Germany is totally detached from the rest of europe. Here in the u. S. , i have got three words for you jobs, jobs, jobs. It was actually up from last months 6. 1 . 230,000 new nonfarm payroll jobs are theory being created. No earnings of note that we should mention, but president obama is speaking at 1 00 in wales at the nato summit. Incredible report and we will talk with that in a moment. Lets look at stocks, bonds, currencies, commodities. The 10year yield higher over the last couple of hours, 2. 4 . Euro. Euro, currency depreciation in europe. Onto the next screen if you would. The vicks 12. 64, the dow still over 17,000. I put the spanish tenure over this is not a good record low for spain. It shows the challenges and of course ireland and germany. Lets go to the math monitor and look at the persistency of negative Interest Rates. Here we are with a normal twoyear, down we go in may. Adam, this was the draghi plunge yesterday. I have honestly never seen this. Negative Interest Rates. In other words, im going to effectively pay the government to store my money because you can get it back. That is the thing. I mean, the banks are not going to collapse. It is an analysis of looking at the actual or the nominal Interest Rate versus adjusting for inflation, disinflation, or deflation. We will talk about that on surveillance today this morning. We did not know where to begin with our front page this morning. I guess you have to begin with ukraine. Here is scarlet fu. There were so many choices this morning. Ukraine wins out because of peace talks between ukraine and prorussian rebels. It was part of a peace plan put forward by Vladimir Putin before the nato summit began. He wants a pullback of troops on both sides, but the speculation is he wants relative control of eastern ukraine. Talks,call it peace which is unbelievable when you look at twitter and ecb press with the first report i have seen on syria when you see the press with the first report ive seen on syria. Folks, this is the joe mauer tree you need to know going into the weekend. It is the geography of west of help me, adam, i do a better with a shot of vodka, novoazo vsk. The rebels are centered around mariupol. As we look at the map and we talk about these two towns, they are in the south of ukraine as opposed to frankly if you were to draw a line directly above them, that would be in donetsk where most of the fighting has been. I just want to mention there are headlines as well coming out where a ukrainian Spokesman Says russia keeps sending troops to ukraine where forces are upol. Ing at mari to cuts surprise move Interest Rates the euro below 1. 30, bonds rallying for a second day. This is a great stat 45 of the government bonds of the world less than 1 before the ecb took action. After that happened, bonds continue to rally. Mario draghi signals he will spend 1 trillion to buy privately owned securities. He did not go into full on qe, which is by an government debt. We will have this through all of bloomberg surveillance this morning. And we will be talking about it through the next week as well. Abby joseph cohen will be joining us in the next hour along with david herro. Just to clarify, for anyone who has been sleeping under a mattress for the last couple of years, adding joseph Abby Joseph Cohen, the number one right portfolio strategist in the world of Goldman Sachs. She has been right, right, right. Hacking is back in the news. This is an update because we have now found out that the obama website, healthcare. Gov, was hacked back in july. No personal data appears to have been taken. The attack exploited a test server that was never intended to be connected to the internet. It was protected only by a password. We know how that turns out. Yeah, we sure do. Yesterday a show talking a double authentication you need a password and a biometric sensor . Michael wolf was talking about that. Update for apple do i look ok for robert burke . My look. A just a quick look, apple has planned some new security features. Users will get emails, alerts anytime than an effort is made to change the password. As well, they will add more password protection, so get ready to remember five more passwords. This goes next week to the big announcements from apple. Right. Why will all childrens phones break . They get a new one, so the timing is great. Get out in front of it. Lets stay on a serious tone, and of course it is ukraine and what is going on outside mariupol. They greet in belarus for in search of a ceasefire for ukraine. Rebels probe east and north of mariupol. Inis then wales, he is wales, ryan chilcote. How has the fighting changed . Weeksl, if a couple of ago the Ukrainian Forces were on the offensive, now they are very much on the defensive. It looks like they may be able to protect the east of the country. Now that is pretty much not going to happen, and they are worried about the south. Is all aboutriupol whether or not Vladimir Putin wants to build a land bridge between russia itself and crimea and other little russian states to the west. It definitely put the ukrainian president as far as i can tell an much more they mood to negotiate with the russians. Maybe one of the reasons why he is so optimistic. Ryan, how has the president been greeted in wales . Well, he has gotten a lot of pats on the back, there has been a lot of rhetoric, but i think some of the things he a scene probably are not enough to really embolden him in a the fight against russian forces. It would have been wonderful for him to get support from nato directly. That is not going to happen. Obviously nato is not going to send any troops. It would have been wonderful if at least some nato countries have said we will pony up some weapons and send them to you. That has not happened yet. It looks like there may be sanctions. I think that depends on what happens with the talks today, but i think the ukrainian president has also decided that even the sanctions we have seen thus far, maybe they have had some cause for the russian economy, they certainly have not changed Vladimir Putins views or actions in ukraine. President obama is going to be speaking a to the world at 1 00 p. M. What is he likely to set . Im sure he will focus both on ukraine, throw his support out there for the ukrainian president. He is also going to talk about this Rapid Reaction force and the need for it that was telegraphed by the nato secretarygeneral before the thatt began, 4500 troops would not actually be based in Eastern Europe because that would upset the russians but will be constantly rotated through. He will call on the nato countries to spend more money. They have not been spending money for a couple of decades now, and he will talk about the Islamic State and the need to capture than. It looks like the brits may be ready to join the u. S. And airstrikes, but if we get some in like that, it will only be a coalition of the willing. Very good. Ryan chilcote, thank you so much from the nato meeting in wales. Managing director of the Boston Consulting Group on manufacturing, we will do a wonderful piece on this in a bit. Us, robert burke, the chief executive officer of Robert Burke Associates, this in celebrations of one of my favorite weeks in new york, which is fashion week. Iur world has been adjusted believe you go out across the world and help people establish malls like on the outside of moscow. You are not doing that right now. How has your world changed . How has Vladimir Putin change the robert burke world . There were two different american retailers looking at opening malls in moscow. There were advanced discussions going on, and obviously now those are at a complete stand till and probably will be at a stance ill for a very, very long time. People are concerned. The sanctions august the of had a great effect. Will that conduit from moscow to london it has been there for decades will that change because of what is going on . We are still seeing some buying patterns in london of the russians but not nearly as robust as we have in the past. Really intaying russia. They are not spending as much. There is a great synthesis of what all these geopolitics mean for the United States market, in particular the labor market. Our summer of discontent will it have a knockout effect on american gdp and our spirit . I do not think we will have much knock on effect on our gdp. I think things are pretty robust. The real problem is going to be the euro. Basically pricing themselves out of the market. It costs about 24 more to manufacture and something in france or belgium but it does in the United States, and you just cannot live that way. We will talk about manufacturing here, adam. He went to alabama. I did indeed go to alabama. We will be talking about jobs on a both from a manufacturing point of view and a retail point of view thanks to our retail guru. Twitter question of the day are you more concerned about getting a raise or just keeping your job . Question. That is way too sophisticated for a friday. Tweet us bsurveillance. In the meantime, lets get to some company news here. In london arebs pulling job offers on delaying start dates due to scandals. These changes so that things are looking more closely at new hires and the hope is that they can head off problems before they get in the door. Approval to market a new cancer treatment. The fda giving a green light to a treatment for melanoma, the deadliest form of skin cancer. It can generate 1. 5 billion in 2017 sales according to estimates compiled by bloomberg. And shake shack gears up for a new ipo and hopes for a 1 billion valuation. At that level, the burger chain would debut at about 50 times projected earnings. It is expected to make about 20 million of this year. Burgers and fries. An affordable price 1 billion valuation . Can i say two words . Boston chicken. Remember that . My grandfather called it a diner. We called it boston chicken. It has been traded at 50 times earnings. , on, it is not shake shack. That is true. Shake shack. Shake shack. On mine and mobile shopping, we know the question is, if you are a retailer, do you have to focus on that is shut down some of your stores . There is tom keene a beard. A younger tom queen. It looks like eric lundqvist. We will take a break. We will be back here on friday morning. You are watching Bloomberg Television streaming on your tablet, phone, and bloomberg. Com. Good morning, everyone. Bloomberg surveillance. Like ale it sounds movie. Do not miss this broadcast, crocodile in the yangtze, the a la bob a story not 00 p. M. Eastern time here on Bloomberg Television. Story at 9 00 p. M. Eastern time here on Bloomberg Television. It is fashion week here in new york. Luxury brands are debugging their latest looks. You get any stores, many others are online, but the question is is digital the new black echo robert burke presses against that. You aggressively pushed back against the young upstart saieh digital, digital, digital. Lets start with Neiman Marcus. I am pushing back, but im the facttailing that you have to be online and you have to be good online and you need to have bricks and mortar. That combination will be the winning formula going forward, so Neiman Marcus announced this week they will be opening 250,000 square foot store in manhattan. It will be in hudson yard, and the Financial Centers in brookfield, westfield, sacks of avenue will be opening a store there along with many retailers, and barneys is opening in chelsea. That is just in manhattan. Top men malls, and they are opening four very large malls in puerto rico, who i. E. In hawaii. What have they learned . Even the people that started out just with online, people like rent the runway are opening york, andre in new warby parker will be rolling out stores, so there is a combination of bricks and mortar and online, and you cannot replicate everything just online. It has to have a retail presence as well. Off, a friend of yours, was on recently is that everyone will have to spend more on capital because you had to give the website looking as good as amazons but you have to make the physical store experience worthwhile for customers. What does that mean in terms of pricing . Think the pricing you could see some increase. I think it will really be of sort in the margins because you have to be competitive today and you have this whole millenial customer demanding more than ever before. Ideally the consumer is appealing to the baby boomer and the millenial at the same time. I have used ralph lauren as an example of that with his advertising and opening a store on fifth avenue this coming week with of the polo brand, so it has got to be both. And also social media. You will see people spending more and more on social media and how that plays into fashion today. Next so if margins are going to the a hit, that suggests highend retailer will appeal to the mass retail scene. They will. They have probably been the slowest adopters. The Department Stores have been the fastest adopters to online retailers. The luxury brands, like a chanel and a dior, really do not have an online presence. Who knows if they will. That is their decision. You know what i like about robert burke . He can tell you know bag is say oh, of and you course. He is the Bergdorf Goodman guy. There is a j. Crew around the corner from my apartment, and i will go in every now in an. Every week they change the stuff around. There is a sale, a reason to go in. Is that with this resurgence of brick and mortar is about, the entertainment value of walking into a place . Yeah. I think we went to a cycle where we were so proecommerce that we now realize you cannot recreate that experience, that whole experience online, so you want a sense of discovery. You walk into j. Crew and i do it as well or better than anyone. You get a sense of theater, of service. The Service Aspect is huge. The Service Aspect is huge. New yorkll part of our fashion week coverage. We have a special guest this morning for viewers. Nanette lepore will be joining us once again. This is bloomberg surveillance. We are on Bloomberg Television, streaming on your tablet, your smartphone, and bloomberg. Com. Tom, aj, and i will be right back. Good morning, everyone. This is bloomberg surveillance. On this jobs day, scarlet fu and adam johnson. Im tom keene. Here is a must listen. Here is adam. This is an exclusive interview, talking about the ecb rate decision. It does not matter if you buy private assets, whether the ecb has decided, effectively what theyve decided to do is increase the Balance Sheet from the current 2 trillion, for a target closer to 3 trillion. This will have a Significant Impact over time together with other policies like fiscal policy and structural reforms. Tom, what he is commenting on is the fact that ecb has been tricking its talents shed even as the u. S. Has been increasing. They have reversed it right around. Of qe this, qeni that, here we are. Heres a sharp comment quickly from the telegraph last night. Prichard has been out front with criticism. Euro has fallen 4 in trade weighted term since may as it has become a cheap funding currency for the global carry trade. This counters inflation and is a muchneeded shot in the arm for french and italian firms. Is this nothing more than a race to the bottom solution . That is what is going to happen, but youre a pastor it. They have been keeping the euro reasonably high for a long that is what is going to happen, but europe has to do it. It is going to take years to climb out of this. Scarlet, the first thing i thought when i saw that announcement was barry aiken greenup berkley. I like thely, and way you point out the contrast between what the fed is doing and what the ecb is doing. By the way, unemployment in europe, still 11. 5 . Nearly double. Talking about jobs, unemployment, i travel to wilcox county, alabama to find out why jobs are coming back to an area that is actually the 18th worst county economy in the country. We will explain what is going on. The good morning, everyone. This is bloomberg surveillance. I am tom keene. With me scarlet fu and adam johnson. Lets get right to top headlines. Rescuers and bosnia are digging around the clock trying to reach nearly three dozen trapped miners working more than 1600 feet underground. A small earthquake triggered a gas explosion. Mine Officials Say they have air for now. And protesting fast food workers in boston were among hundreds arrested during demonstrations nationwide. They staged sit ins yesterday escalating their campaign for wages of at least 15 an hour. The Service EmployeesInternational Unions organized the workers. Finally, Roger Federer refused to leave the u. S. Open tennis term it widely. He was down two sets but saved two match points to beat gael monfils. That puts them in the finalist for the First Time Since 2011. A good to see him fight back. Arent you going to a u. S. Match . Unbelievable. A friend that ive tickets to the mens opened monday night, do you want to go . Do i want to go . It is a box seat. I am the luckiest guy in new ddy ofecause another bodus mine asked if i wanted to go to the jets home opener on sunday. This is as good as it gets. I am going to whole foods. [laughter] let me do a data check. Stocks, bonds, currencies, commodities on a jobs day. 2959. Ollar 1 american cubbies have been outsourcing manufacturing to china for decades. We all know about that. Until now, it was just a oneway street, but here is what is amazing after all of those years of siphoning off jobs from the u. S. , china is creating jobs here. It is an amazing story. I traveled down to alabama to see it for myself. Welcom