A warm welcome to the pulse, live from london. Jobs day. I manus cranny. It is jobs day in the usa. Ambassadors will be trying to see if there is any evidence that the Worlds Largest economy is ready for higher rates in 2015. Economists have been surveyed here in bloomberg. 2001000 jobs as the number, the consensus for the month of september. We will get those numbers at 1 30 london time, how they behave in and about this crucial set of data. Mark, we started the Fourth Quarter with a little bit of a boost. Mark we did, and european stocks are rising. But this time 24 hours ago they were also rising. 200,000 expecting jobs for september, boosted mainly by private employment. We had 173,000 in august, slightly before this years monthly average. That is a slow down from last average, which was the best since 1999. Ething worth noting payroll readings have been revised by the Labor Department in 12 of the last 14 years. Economists may, dismiss a lower than projected number, particularly if the august figure is revised. This is the monthly change going back to 2009. Where you see is an increase or decrease. Lets move it onto the jobless rate, because it will probably hold at 5. 1 , the lowest reading since april, 2008. Dont forget, 4. 9 is the level the fed considers consistent with maximum employment. The third thing we need to keep an eye on is average Hourly Earnings year on year. Will there be signs of a muchanticipated pickup in worker pay . Average Hourly Earnings has been 2 since the expansion began in june, 2009. In september we have these your of the year earlier, when wages didnt budge much between august and september. Expect a gain of 2. 4 year on year, the most since 2009. Fare . Ill markets that is what is important. The msci is down, stock 600 down, commodities down, the place to put your money is treasuries and european bonds. Will todays jobs report make things any clearer . Manus perfectly put. For all of our viewers, bonds are the only asset class that have delivered a positive return in 2015. If you go to hike rates, does that even the stand . Mark, well done. To the societye general ceo. The thinks that the u. S. Will raise rates this year, take a listen. Personally, i am not that a great fan of commodity policy of the last too long stop i think they are useful booster, but in the longterm, they create distortions in asset prices. If they have too much money chasing too many assets. I think the fed will probably raise rates. In we tend to think, december. The ecb and Japanese Central bank in our minds might pull through, probably in 2016, which means that money will be available, and will remain positive regarding europe and equity Asset Classes in 2016. We have a scenario of progressive improvement in the economy, held by the low commodity prices. I think this category of assets might be considered not that expensive in this world of ample liquidity. Manus so you think they will extend qe in 2016 . They certainly will in september and maybe a little longer. Willie u. S. Jobs data gives the said fed the momentum for hiking rates . That is the question. What does it mean for the emerging markets . He is at the head of an emerging markets cross assets. Welcome to the show. Markets just run us through the critical numbers that we all need to be focused on. Your world is a punch from every side fed hikes, the iif report saying it has internal problems, then china. Which punch is the biggest focus in your world . This is the way we can put it in context this year, bonds in the u. S. Have delivered positive returns. Yields have come down. Emerging markets have suffered despite that, so clearly there are problems, very unlike 2013. 2014, it sold off because the eurodollar when significantly lower. This year, china is manus so we are narrowing the funnel down. Bhanu the fed will be important im not saying they arent. Hikeidea that the fed will and assets will be released with the site, thank god, now we can rally i think it will be a small, tactical rally, but make no mistake, if the fed rate is ,oing up, if the cost goes up that does make the material. Em is not suffering because of risk. Are coming down and risks are rising. I think they have moved it to a different phase we are just worried about em growth. We are now moving to a phase where emergingmarket Balance Sheets, stock variables, have began to get interested. That is why the holy grail of em, debt trade, is likely to get impacted. As it happens, able have an impact on equity, because the cost of equity goes up. Manus we caught up less than a month ago, and you said to me, i dont believe that emerging markets positioning is as aggressive or as negative as the media reports. Has anything changed . We are seeing a point for the seeing the we are first outflows in almost 27 years. That is what we are on target for. As the positioning changed . Bhanu modestly. The bulk of the positioning bears repeating. It is in debt. This moves in a much more clunky fashion. We are beginning to see the first signs of cracks, but the pressure comes when you go to the market and refinance yourself as a bank and the market doesnt give you the money. That is when you go to defaults, and then you call money out. Thee are we going to bulk of the money was raised in 20102012. The pressure comes around 2016, 2017. That is the time when we can see some serious outflows, which is not to say it is all fun and games between now and then, that i would not be surprised if the nature of volatility in em is a step function. Then all of a sudden, stuff begins to manus that worries me even more. I take what you have just said default rates probably wont spike onto the back end of next year, refinancing gets more expensive, so this is a walk in the park at the moment. 540 billion out of developing markets, and 548 billion out of emerging markets. Story. Re legs on that bhanu your member what happened with moms earlier. It moved 7280 basis points. 70 280 basis points. It can certainly happen to emerging markets and it hasnt yet though we have seen early signs. Last week, local swaps moved up and down with her the same day. We are beginning to see signs of that but it could become more widespread. Issues are much poorer than people believe. Manus what are you telling people to do now, with that fairly negative scenario painted in terms of 2016 . What is your top advice . Bhanu first of all, we should all expects lower total returns across the asset spectrum. Within assets, hard currency debt remains relatively competitive, but that will get compromised and we will see 1 return. Equities continue to underperform. But the weakest link is the fx. I think that will overshoot. But policymakers are quite happy with currency depreciating. Currencies are not as potent as they used to be. I think they will manus what are you in the pot for . Bhanu 5 unemployment rate. Manus whoa,. Thank you very much. Lets get you up to speed with some of the other major headlines on the pulse. Nine people are reported killed in a mass shooting at a Community College in oregon. Police say the gunman is dead but havent clarified whether he was shot by armed officers were killed himself. President obama offered his condolences and lamented the countrys inability to stop repeated mass shootings. Somehow, this has become routine. Routine, myg is response here at this podium is a routine. The conversation and the numbmath, we have become to this. We have talked about this after columbine, after blacksburg, after tucson, after new town, after aurora, after charleston. It cannot be this easy for somebody who wants to inflict harm on other people to get his or her hands on a gun. Manus the leaders of russia, ukraine, germany, france meet in paris later to discuss the situation in ukraine. The meeting was called by president hollande, who last month said that following recent ceasefires and ukraine, he hopes to see an end of sanctions against russia. The issue could be overshadowed by russias airstrikes in syria this week. The countrys first use of military force outs wide the former soviet union in decades. Portuguese voters will cast a ballot this weekend in what could be the countrys austerity program. While turnout is expected to be low, opinion polls show voters are willing to stick with the government. Based on economic output compiled. A little bit of breaking news progress on the volkswagen story. The company is about to communicate with us all in terms of the recall and fix, but it looks like the swiss have taken action. They are about to suspended new car registries for some vw models and registries. The ban would take effect on october 5. This was federal road office commented in an emailed statement. Coming. Ions are just up next, amazon cracks down on google and apple. The battle to dominate media delivery intensifies. We have the details coming next. Manus welcome back to the pulse. We are streaming on bloomberg. Com your tablet, and your phone. Amazon is banning the streaming devices from apple into google. They say it is incompatible with their own service. It is the latest move in their attempt to dominate the way people consume media. Caroline hyde is our tech guru. Tell me this why the sudden tough tactic . Caroline the timing is everything we are in the runup to the holiday season, and it will hit google and apple where it hurts. Suddenly we are saying goodbye to Google Chrome cast, goodbye to apple tv via amazon, because they feel they are not compatible with amazon fire to the, therefore they are saying goodbye. New listings lobby put on amazon and existing ones will be off the amazon system by october 29. However if you are a streaming device maker who happens to be compatible with prime video, you are fine. You can stay there. Roku can stay. Microsoft, xbox can stay. If you want to use your playstation, you are a ok. This is just for the juggernauts of google and apple, and it is phenomenal what they are willing to sacrifice. Clearly they are moving to hurt google, because apple already has direct access. They have highspeed stores and online processing but google will be the one hurt the most, no longer offering Google Chrome cast. That amazon is willing to sacrifice the sales of popular items. Apple dominates a lot of the streaming tv market and they will bolster their own product. They want to bolster amazon fire tv at the expense of selling these products. They will lose customers that they really want to bolster amazon fire tv. They also want to abandon google and apple to their will. These twoto make giants make Amazon Prime Video compatible with their own products. They have used these tactics before. Remember when they were trying to focus in on hash at question ette about what the price would be . When this whole issue was going on we suddenly had amazon blocking preorders from hachette books. You had both companies saying , butis anticompetitive amazon has a lot of space when it comes to bookselling. The google andet apple products elsewhere, so this probably wont be deemed anticompetitive but they are going for the jugular. Is the number three player already in this space when it comes to streaming. There are only four key players. Roku is the number one in the u. S. And amazon comes in at number three 86 the market is what they managed to dominate. The market has 86 million devices set i20 19. The reason they are doing this is to focus all in. User, thatu a prime ines you order their goods 24 hours and makes you addicted to the amazon ecosystem. Manus breaking news for citizens of london. If you are a supporter of the tory party, they are going to put up officially Zac Goldsmith banking dynasty. For richmond an mp park. He takes the tory mayoral candidacy. He was one of the most vocal antiexpansion heathrow voices out there, threatening to resign if they build a third runway. It has been quite a week for one stock glencore. The center off at a global panic on monday which resulted in a 29 drop in its value. Share prices have since spiked back, but it did have people wondering there was any kind of some a leader moment in the market. Oflier i spoke to the ceo general society and asked him if that was the case. I dont think so. The systemic effect was there but i dont think you will see the same thing in the commodity sector. The question is how long will this last will this remain humble . Who can predict the increasing might see, especially with the scenario where u. S. And europe should do well. It is a two to threeyear thing and i dont think there is a systemic element there. That there is this the of euro has built big business are you concerned for me european banking perspective that the commodity rout will begin to have an impact in terms of the numbers for the banks . Nto 2016 question dont think so. We have to think 10 years ahead as bankers. We remain an important sector. To keep an expertise in the sector and right financing and structuring. The major recipe for success that keeps me Going Forward at the end of the day, crisis can happen what predicted the situation in brazil and russia two years ago . The concentration of risk. The management of the concentration of risk. You need to avoid and over concentration. That means that whatever happens, you will be able to carry on developing your business. Manus bloombergs managing editor for energy and commodities will kennedy is with me now. This is about whats was monday, what was that 29 drop. Was it revenge . Listening to him, it was very not stand back, this is a contagion or a systemic issue. It has been quite a week, hasnt it . Will extraordinary. But there is a wider thing here it is not systemic, but it does speak to real weakness in the commodity sector and the fact that a lot of companies have borrowed on the up cycle, cheap money, and now that is hurting them and glencore is leading the pack. Blasberg wanted to be bigger and bolder, no longer just that quiet gentleman commodity trader in zurich. He leveraged up and got 30 billion in debt. He took too much on. Will the interesting thing is , youyou take a miner widen out the bad times. But the real essence is that its not working, clearly. Has is a lot of mines which the world doesnt want so much of these days, and it is. Ard to trade in a bear market manus the interesting word you use was humbled lets be humble in terms of our ability. Urged,u have been hell someave to show st utility what do you think glencore has learned . Will i think i have learned the power of communication. Monday, everyone was asking whats going on. Tuesday, put out a statement and it starts a lot of effort into communicating with the press and banks and it is starting to work. Manus we leave it there. Bloombergs, managing editor for energy and commodities. Coming up, the french Startup Company that won the investors allstar award. We will explain what that means, next. Companies, the lady who presented the award. Join me on twitter. Manus welcome back. We are live from london. Im manus cranny. Lets get you up to speed with our top headlines. U. S. Jobs data in just a few hours. Investors will be looking for evidence of the Worlds Largest economy being ready for higher Interest Rate. Of 2001000survey nonpay last month, policymakers held off on raising rates for the First Time Since 2006, citing weaker than hoped for inflation and risks to the Global Growth emanating from china. The leaders of russia, ukraine, germany, and france meet in paris later to discuss the situation in ukraine. The meeting was called by president hollande following recent ceasefire progress in ukraine. He helps to cnn that sanctions against russia. The issue could be overshadowed by russias airstrikes of syria. The countries first use of military force outside the former soviet union in decades. Who filled outle credit applications with tmobile u. S. Have had their personal information stolen. Tmobile says hackers access the database via a tracking firm. Payment and banking information has not been breached. It is giles day, and we have been telling you throughout the morning how are the markets going to behave in these final hours . Lets bring in mark barton. Typically they run for the hills in these dying hours before 1 30 london time. Mark they are rising, the. Out. As stood stock, a chinese share listed in hong kong. Was Seng China Enterprises closed yesterday and is responding to measures enacted by the chinese government. Minimum homehe down payment for firsttime buyers being cut, as has attacks on passenger vehicle purchases. China has also reportedly studying measures to support macau. This is it over the last five months. Falling the trend for five consecutive months, the longest losing streak since 2000, the worstperforming global primary equity index last quarter along with china and shanghai sinking like 28 . One asset class that is falling today after a terrible run is gold. It has fallen for five quarters, the longest losing streak since 1997. Why is losing its allure . The prospect of high Interest Rate is highlighting the fact that goal doesnt pay interest or get returns like assets such as bonds and equities. It is on track for its biggest weekly drop since march as investors await for clues on the timing of the u. S. Rate hike. Portugal we talk about we talked about it back in 2011 and 2012 this is a lovely chunk. This is the portugal 10 year 2012 is when the economy received a bailout. This weekend the nation heads to the polls dont expect any drama, because voters are likely to set the social Democrat Party that has sold assets and has raised taxes. Remember, the bond yield and portugal is 17. 5 in may when it hit a record low of 1. 56 . How things changed in the intervening three months. We were there. Manus we were there, and i learned more than i ever wanted to. Mark, you are the only man i can get passion and portugal. Lets switch it up. Nightsnner at last investor allstar awards, which recognizes investors and entrepreneurs. The french startup makes lowcost Wireless Networks to connect devices, and it raise 115 million. We cant speak to the ceo. We have the cofounder in the house who organized the event. And our very own caroline hyde, who was there to present the award. Lets take the attention to the the event welcome to you all, and well done. Kelly what it is. The internet of things is what caroline said. You want to redefine you want to be the company that connects the internet of things. What is that mean . Who are you . Ludwig for me, the next step for the internet is to connect the real world to the digit