we are going to read the tea leaves. : president obama sitting down with saudi king. we get the latest from a reporter at the white house. it is fantasy football time. no longer just fun and games. now there is real money at stake. ♪ matt: good friday afternoon. i and matt miller here with alix steel. alix: we do have to look at the markets right now. lows oflooking at the the session. it seems as if the job report

was a glass half-empty kind of day. matt: the jobs number disappointed. the unemployment level was so low it means the fed's employment gauge and you have inflation at one point in percent -- 1.8%. alix: it is the second worst week of the year. the snp suffered its two biggest weekend losses just in the past three weeks. i want to take a look at the technical levels. -- s&p 500 over the last couple days. this is a tuesday low. we reached the wednesday low during the day. this seems to be the key number right around 1903. matt: i was wondering that.

bounceseeing if it will back down to the august low. take a look at treasuries here. insaw a little bit of a dip the two-year, which rallied. when bonds rally, yields come down. prices of hans that bonds -- bonds up. the action obviously is in the front of the curve because that towhat moves most sensitive the fed decision. alix: the jobs report kind of good, kind of not good. jobs.e a look at lost it shows the percentage of the labor force that just lost their job.

they were basically employed a month earlier. this is the lowest level since 2000. about 1.1%. it is the lowest since 2000. people are unemployed for a less. of time -- for a less amount of time. matt: i've been having a twitter argument with people all morning on this labor participation rate . i think it is a dead horse that fear mongers talk about too much. peakedarticipation rate in the year 2000 and has been heading down ever since. in 2006, the bls said it would be on a downward trajectory until 2050 because of the demographics. kids are choosing to stay in school longer, women are going back home. alix: not this woman that yes. -- but yes.

foraw-hill education filed an ipo. the initial registration is $100 million. the offering is said to value the company at $5.6 million. matt: kraft heinz expanding a recall of its kraft singles american and white american cheese. the reason -- a piece of packaging film could remain stuck to the product and cause choking. they save 335 cases -- alix: nissan recalling. a panel could cut to the right edge of a drivers shoe and slow breaking speeds. they will notify owners and dealers and make the modification for free. they have received a report of one accident causing injury but

no debts tied to the issue. bloomberg news reports the british bank may cut about 250 managing directors, one fourth of those holding this title. they are trying to reverse a two-year slide and profit. says it'srey lacher time for the fed to end the era of zero interest rates. he said the labor market has improved. >> i'm not arguing this economy is perfect by any means but nor is it on the ropes, requiring the stimulus of low monetary policy interest rates. it is time to align our military policy. one of the voting members of the open market committee. hedid not say whether you -- favors raising rates at the next meeting.

matt: a kentucky county clerk .eld off to jail a jubilant gay couple walked out of her office this morning with a marriage license. they were the first of several gay couples to receive marriage licenses today. had defied court orders to issue licenses despite the supreme court legalizing gay marriage in june. she says it she is doing the civil disobedience because it went against her religion. alix: bentley says their first suv will not be the most expensive. they claim it talks at 187 miles an hour and will set you back about $200,000. those are your top stories. the u.s. unemployment rate is not a seven-year low.

wages should finally start to really pick up. fewer jobs were added than projected, the smallest amount in five months. james joins us from washington. what do you think overall of this report? >> i think it was a pretty good report. historically in august numbers, you don't have as many fundamental surveys so we'll probably see revisions to the payroll and jobs number. the unemployment rate number was encouraging. that didn't show any acceleration but we seem to be heading on a pretty optimistic path. alix: if things wages being the key.

that riseu attribute to? this lower-income worker finally getting a piece of the pie? >> we have seen the unemployment rate come down, inflation adjustment wages has gone up. when you have low unemployment and businesses have to compete for workers, ecl port pressure on workers. upward pressure on workers. matt: we don't have a strong inflation, high productivity. is it possible the curve has flattened out a bit? >> if you take a look at what productivitywith recently, i think it is a concern. the very recent numbers were encouraging but over the last

several years, productivity growth has been growing and that is what determines pay growth. if the economy flattens out, there will not be much room for pay increases. matt: right now at 62.6%, economists love spent time in the white house say it is normal , people are retiring, kids are staying in school longer, there is a new work for millennials. do you buy that? i think it's partly right. everyone was expecting labor force participation to fall. the drop in labor force participation pretty much perfectly match the demographic rejections in -- projections of 2007 starts since then, it can only be about one third explained for the changing of the population. we have a much larger drop in

labor force participation than anyone would have expected. alix: something we have seen over the last few years is the shift in the part-time workers. see a bigmp services acceleration. what does that tell you? it seems like businesses are more reluctant to hire full-time if they are hiring temps. >> temps services can be a good sign. they will often hire temporary workers before they connect to hiring full-time workers. that can be a good thing. but one of the things that the effect of the affordable care act on workers schedules and there is a strong incentive to keep workers schedules below 30 hours a week. we have seen the shift for workers going from 45 hours a to 29 hours a week. i am concerned we will see

government policy depressing workers hours. although did you see the rule on temp workers at how much control over a company can have on them? isn't it a problem for companies if they shift their labor force to temporary and outsourced workers? >> the national labor relations would blowt stands, out the franchised business model. they say if you hire a business contractor, you are a co-employer of those workers and make it very difficult to rebate the contract. it is potentially very destructive. alix: thank you so much for your perspective. thank you for joining us. matt: coming up, we hear from

mohamedonomic advisor el-erian on the is buzz about the job report. ♪

matt: welcome back. alix: another cell up on wall street leading stocks to their second worst week of the year. we are right around those session lows. david: the only market in the western hemisphere up to they -- today in jamaica. the s&p 500 down 2%. the dow down about 2%.

all dow stocks down at least 1%. this is the bloomberg social velocity monitor. you think of the twitter sphere as a chaotic space, we found a way of sorting through the noise and seeing what companies are in the social chatter. bp is among them. the reason for that is him analysts-- is some downgrading that today. caterpillar. it is a company that depends very much on commodities. 2% here,terpillar down $73 today. i know something near and dear lix, copper. we saw a decline in copper today. they are down to the eight week

low so we look at copper down 2.8%. alix: thank you so much. matt: what was that function, david? bsvm. what so you can read traders are tweeting about. gassed prices are at an 11 year low this holiday weekend. this will be the busiest labor day weekend on u.s. highways in seven years. more than 30 million people are expected to travel more than 50 miles from home. alix: extra security measures in place on the nation's rail systems is holiday weekend. joe johnson says travelers will see enhance security presences weekend. he says travelers will see more

canines and random back-checks. matt: as we prepare for labor day weekend, jfk tsa screeners reminding us of the need to stay vigilant. she has been charged with stealing a passengers $7,000 diamond watch. she has been charged with grand larceny and official misconduct. the biggest problem is if the passenger had a gun, it is unlikely they would have found it. our top story,to the jobs report. employers added 173,000 jobs in august and the unemployment rate fell to 5.1%. investors worry this could mean the fed will raise rates in two weeks. matt: earlier, betty liu spoke with mohamed el-erian and got

his thoughts on the job report. was something for everyone in this job report whether you are enthusiastic or worried about the economy. job creation fell short of what was expected but the unemployment rate came down, hourly work went up, wages went out. it is a mixed report and it will make the fed even more uncertain and even more tentative about what to do in september. betty: you tweeted out shortly after the report. let's show that tweet. since you co-come you are very active on social media. left pimco, you are a very active social media maven. does that tell you the market will remain very volatile and

this is why we are down over 200 points right now? >> today, absolutely. and indecisive jobs report comes a long weekend. and you will see a lot of over the paradigms. we are going from a paradigm of .ow volatility, a low growth all of this helped by the central bank to a paradigm of much higher volatility in a much higher uncertain global economy so we are shifting paradigms. betty: what would a rate hike due to the volatility? >> that is the basic issue.

i have been supportive of a rate hike for a long time but i believeth there is a hike in september, it would be doing the right thing at the wrong time. the economy is ready for a slow monitor his vision of the monetary policy. the monetary policy should be normalized gradually. it would be the wrong time not because of what is happening in the u.s. but the global economy. now, you end up doing what china did with its currency change a few weeks ago and you end up fueling global instability and you have to worry about the still back. -- still back. i suspect they won't hike. matt: still ahead, a look at the booming business of fantasy sports. drafting's raises an additional 300 million and

funding. ♪

alix: football season is here. the most important part of the year for companies like draft king. the company just raise $350 million in funding. we spoke with the ceo. >> we are expanding into international markets and this is the time of year we have a lot of customers we can get to try the platform so we are doing a lot of advertising. >> your expanding in the u.k.. there are a lot of passionate area overotball there. how do you compete? >> like in the u.s., the season is a dominant product. just like in the u.s., we have to come in and do some partnerships with those types of companies and provide a different value proposition.

what are these lounges you are installing at the nfl stadiums? >> they are about trying to take the fantasy experience and taking it to the stadium. fans whono reason that want to enjoy experience at the stadium cannot still follow their fantasy teams . the idea is to have this lounge where you can go and follow your teams on computers and enjoy the life experience. what you were advertising everywhere. your even advertising on bloomberg. >> it is an important part of attracting new customers. this is the time of your fantasy startingteams are their leaks. this is a best time of year for us to advertise and being able to reach the right customers. a lot of people watching

bloomberg are mathematically minded. the more you look at a chart and do analysis and have it do wish and for the way players will perform, the better you will do so bloomberg is a great audience. >> how long can you keep going? >> i hope for a long time. overseas.t starting we have about four more years left of this growth in the u.s. their 56 million fantasy players in the u.s. and about 6% are playing daily. the u.k. launches next quarter will be a great start. i think we can keep that going for another six or eight years total if international is as lucrative as i think it will be. final question on tom brady. you are from boston. the patriots are one of your first big partners. now that he has won the case, is that going to have a big impact

on that is a football? >> it is. brady,tuation with like if he had got his suspension upheld, it doesn't affect the season. you have to decide if you will draft him and daily come you don't pick him for the first picker weeks and you can him and not have to sacrifice anything so that is one of the great things about the games. you have injuries and suspensions not impact you because you have a new team every week. matt: you can win $2 million from them by this week. ♪

back to thee bloomberg market day. let's get to a look at some of the top headlines this afternoon.

hundreds of frustrated migrants and refugees gathered their belongings and marched out of the city. they vowed to make it to austria or germany on foot and begin the long trek after authorities blocked them from boarding western bound trains. many of them are fleeing syria and the british prime minister david cameron says his country will taken thousands more refugees. >> we will continue with our approach of taking them from the camps. this provides them with a more direct and safe route to the u.k. rather than risking the hazardous journey which has tragically cost so many lives. alix: the crisis is the subject at three meetings today with leaders across europe. from rebel to reliable in the eyes of germany and france. the former prime minister is being held the best help to keep the area together.

deal thatgo over a would secure greases -- greece's and they eurozone. the governor says this debt cannot be repaid. hunting is in favor of letting puerto rico agency file for bankruptcy but that may alienate predators at hedge funds. president barack obama says the u.s. share of the saudi king desire for a functioning government in yemen. they also spoke about the iran nuclear deal, a source of lingering tension in the relationship. federal prosecutors laid out their case against a british trader. he had been indicted by grand jury in chicago. the u.s. will try to have them extradited from london. that is a look at some of your

top stories. instability in chinese markets continue to rattle investors. economists are looking closely to see on china's government is reacting. earlier, we spoke with the chairman of roubini global economics and italy. they asked him to china needed to do more to stimulate the market. >> china is in an economic slowdown. their economy is in freefall. the view has been that the will be something short of a real hard landing. are becoming slightly too pessimistic about their economic growth. do they need to do anymore?

>> there should be more policy actions from china. they need to do more to popularize the economy and they have to be more consistent in their economic policy. there is a movement of managing away from the stock market and the currency. that is creating short-term pain -- it is something in the media long-term that is positive. >> when it comes to financial assets and if you had a bit of money to invest right now, what would you be buying and selling? believe that the activity coming from china and the slowdown in the emerging markets , the u.s., japan economies are going to stay with us for the next few months.

thesemplies that probably results will continue for a wild and you might 20 be slightly underweight risqué with equity for the time being and go more to long-term bonds or you will see some high returns and stay away also from emerging market assets and their currencies. stay away from risky assets like paper. alix: oil has also seen its fair share of volatility. the recent slump of commodity prices has energy companies inundated with debt and creditors are thinking twice about helping. with more.us now welcome.

here's what is going on in the oil community, in april, companies asking banks for money based on the reserves and the banks are we determining the loans in october due to the following oil prices. how does this influence oil companies? jody: they will have a more difficult time this round given where the commodity prices are. he last round, we saw a lot of -- this time around, people are saying bankers are taking a harsher stand. we will see a much more difficult time. basically, i might have lent you $100 last year and this year i will let you $50. what kind of steps have companies been taking to prepare? jody: they are finding every including debt,

exchange deals. what is a debt exchange? tell me about it. >> it is when a company wants to review their debt laws they go to existing creditors and say can we negotiate better terms so we can write this commodities slumped out. in return, creditors will take a haircut on their investment. take a short-term pain but with the hope that they will be paid back later on. jody: exactly. -- itg to any situation is to make the maximum profit and protect the downsize. when they agree to the exchange, they take a pain up front in hopes they will be recuperated in the long-run. alix: what companies have been

doing this and what companies are struggling now? seen six closed deals like this. dealsng in july, those have become much more difficult. you have energy 21 plus started conversations with creditors and now see the deals struggling. a chart're looking at now showing the face value versus the market value of the companies that have been able to execute these debt exchanges. did a dealcompany last week and what happened was at the deal was announced, their bonds plunged, wiped out a quarter of their value. alix: many that if you are a

creditor, you will not say this sounds great because of the other creditors are taking a hit, why would you want to get into it? jody: creditors are very upset. they have lost a lot of money the first half of the year. they lost money with the oil prices. what if the price goes down? which we have already seen. alix: it is a broad base. jody: it is eating all over. -- hitting all over. tougher time ahead of them. you will see companies start to look for other avenues. it comes down to how badly the

companies what a debt exchange deal. if they do want a deal, they might have to offer better terms. you will probably see this getting done with more creditor friendly terms as opposed to the ones we have seen earlier. alix: this is if that one of the most important issues in the commodity market right now. thank you for bringing it to our attention. google's popular street view app got a virtual makeover. those details next. ♪

alix: welcome back. 15 minutes before the closing bell. the second worst week for the s&p 500 this week. matt: the s&p 500 right now losing about 3.7% for the week, down at 19.26. the dow jones down 220 points. down 320 points earlier but still not a good way to end the week for investors losing a total of 500 points this week on the dow. the nasdaq down as well. not terribly exciting when everything is down because it is just a big red blob. this is a great function where there -- when there is movement in the market. a lot of people don't know when

you're looking at an index, you can actually get the weekly change. 3.2%is the s&p 500 down this week, last week up zero point 9%. not only can you see the price change come you can see the change in volume. we have traded about 3 billion shares. -2.6 billion. we had a lot more volume last week then we did this week. you can also see monthly changes. it is a cool way to get a look at what is going on. let me tell you the biggest losers as far as industry groups for the week are utilities, health care, and financial. these are the one-week losses. for health care, 4%

financial. goldman sachs is the biggest loser on the dow jones this week. if you put goldman sachs and j.p. morgan together, they take out about 80 points of the 500 and change we lost. weighedo very heavily are responsible for a lot of the loss we have seen. also apple is a huge part of the drop we have seen on the s&p 500. down 3.5%. it has taken big losses this week. people are concerned they won't really dazzle with their september net presentation. what are they going to show us we absolutely have to have? what do you think?

alix: i think it is a lot of trading to sell the news buy the rumor. matt: are you excited for the apple presentation and what do you think tim cook is going to show you that you have to go and buy right away? alix: i don't know. we will have to see. i do know that the iphone 6 replacement cycle is really big so it has to be something pretty awesome to keep that product cycle going. thank you. now to a look at some top stories. twitter needs a new ceo and we will not know who until after labor day. the newion today that ceo could be named today. after dominating the market and , sony is now on to the next big thing. new are focusing on

technology that can process 1000 images per second. the sensors could also help driverless cars avoid road hazards or allow industrial robots to speed up manufacturing. star wars fans in 15 cities found the droids they were looking for and then some. disney introduced new 12 merchandise for the new movie. disney brought the iconic franchise -- bought the iconic franchise for $4 billion. the movie opens in december. hasin tech news, google given its popular street view app a virtual makeover, giving users a chance to upload their on material. emily chang joins us now from san francisco with more.

what did they do? emily: google released a new street view app. you can get it on your iphone, android. it enables you to add and share user generated content around the globe. in one gallery, you can see the google generated content and in the other, the user generated content. google says you can explore photosphere isde contributed by people around the globe. the street me up -- at -- of you there is a spherical camera and you can use the application from within the camera to upload steerable

rical photos.e it is an interesting development. alix: what does this do for the mapping industry and why is it so important? i feel like mapping is where the next tech battlers. emily: it is. there are only a you established players. one is google, the other is tom-tom, the other is nokia. there has been a bidding war for the nokia mapping selection. this is valuable information. apple try to get into the business but they have had problems with their own division. that is something google and these couple other companies really own. alix: you can catch more of emily and bloomberg west coming up at 4:30 today.

still ahead, we are looking at the market that has deteriorated throughout the week, the second worst week for the s&p 500 all year. ♪

alix: u.s. stocks most likely ended lower this week. joins us now from l.a. with his take on the market. as i look at stocks here, what do you make of this kind of week? a test of theof market decline we had. this is a normal corrective process we see. it volatility increases.

this is a great opportunity to buy stocks, especially dividend stocks. i see the best deals on blue chip stocks in a long time. why wouldn't you take advantage? buy a marketyou when there is still so much volatility in the currency market? is,he truth of the matter price-earnings ratios mean that stocks have gotten cheaper so if i can buy the same thing i was vying three months ago cheaper companies,gh-quality why wouldn't i get into these? the actual companies themselves, their stories haven't changed. tim cook said there china sales are fine. why wouldn't i want to get into these stocks at lower prices? they have such huge compliment comes to their

iphones. how much more juice can they really get out of the iphone, which is their real key product? >> a great question. the smartphone market is now 2 billion phones a year. apple has 15%-20% of the market. the market itself is growing and the market share has been growing so we expect apple continuing to take share and the overall market. we are not concerned about iphone sales and the new iphone will be great to step -- great. alix: how long do you think volatility will last? i am looking at the forward curve and i see volatility stay elevated until about mid october. >> i think that would be a good time frame to look at. september, october are never really good months in the stock

market. when we hit november, that is a strong time for the market and as we get into christmas and star wars is coming out, i think we will see a happier market and better earnings. when we get to earnings reports in october. i think they volatility chart might be right. alix: earnings season is going to encapsulate the volatility we have seen with the global meltdown over the last few weeks. why are earnings going to hold out? global manufacturing is really rolling over. .> we are not an energy financials will be decent because the economy is ok but many other areas are really strong like health care and the consumer is strong. we expect good earnings from good companies and weak earnings from companies that are sufferings. you will have to be a stock

picker in this market. alix: in the meantime, when we seem to have triple digit leans on the dow as the daily habit is hard to get a read on the market. what leads it every day? what do you look at when you get up in the morning? use look at the news and i twitter for that and i look to see if there is anything extreme happening and i always look at bloomberg because it is a great information source. i gather up the information because the markets have to reflect reality at some point. i want to know what is really happening in the world. and things are not as bad as the media makes it out to be most of china has some issues but i'm confident the government will deal with this and china will continue to grow. that is a great number and we will see as time goes on, this will get handled.

europe is improving right know from where it was. the u.s. economy is doing just fine. i think when you look at the real numbers come it gives you a clarity of where should i be investing and taking advantage of the daily ups and downs? you cannot think about a day or week, you have to think about the next year or two. alix: thank you so much. much more ahead. john spouse, former advisor to janet yellen will be joining us jobsve his take on the market and what the fed should do next. ♪

alix: u.s. stocks closing lower this labor day weekend. next week the markets in china reopen. the only certainty is uncertainty. >> plus inside today's big jobs report. the unemployment rate drops to a seven-year low. we'll break down the numbers. alix: and the great rate debate. we'll ask a former adviser to fed chairs to weigh in on whether it is time to hike. but first, we have to begin with the markets. yes, we're finishing off with the dow down about 270 points but that is kind of a comeback. >> a crazy week. alix: our session lows we were off by about 348 points to the dow and we really came back in the last sort of half hour of trading. >> absolutely. what was interesting to me this week were inflows. i was looking at this note