pimm: good morning, i am pimm fox. matt: and i am matt miller. .t is, after all, jobs day what does this mean for the u.s. economy? expert analysis is on its way. an initial public offering. novocure'slk to chairman. and all the questions we have about drones but were afraid to ask. the chairman of the faa speaks to us as well. mm: let's go to julie hyman with a look at the markets right now. julie? we are seeing a pullback continue but it is not as sharp as it was earlier in the session.

we have the s&p 500 if you want to take a look here. the dow is down two thirds and the nasdaq is down just 2/10 of 1% at this point. so really, trimming the declines from earlier. i should mention in and aside from earlier, most of the show on myerages bloomberg terminal it is now showing up. at the bloomberg terminal and see what is helping to support stocks. care is leading in terms of rates, and in terms of health care, pfizer is upgraded. over at morgan stanley,, they say they are improving growth prospects. morgan stanley says they like some of the companies who have innovations and balance

sheets, and it's there is some restrictions, the new laws are likely to be enacted anytime soon. pfizer is getting upgrades, and medtronic is in that group as well. we have been watching all this morning with the 10-year note and we saw the 10 year yield dropped below 10%. still, 1.94%, and we have been watching the currencies as well. the other currencies, particularly a haven currency like the yen, the dollar and the pound have been gaining speed. matt: and now a more information on the gaining strength of the u.s. economy. are saying that

job experts are putting the brakes on the job growth. now, it isn't like these companies stopped hiring. we've heard on "surveillance" that's if you can have 200,000 people getting jobs every month, then you wouldn't have any other people to take these jobs. you add in the revisions lowered in july and a particularly august where everyone thought it would go higher, everyone thought that the economy was going to slow down. there is a suggestion that companies would be cutting back on what they are producing. you put it all together and it was, at least in september, a slow down. whether it continues, we will have to see the data points.

--t: as we get closer to carl: as we get closer to full employment, we should see that pressure release, but this could signal near full employment, and we are not there yet. average earnings are flat. asked alan again about the labor participation rate and it drops off as well, but he says most of that has to do with demographics. he said that has to do with the financial crisis and the structural shift. with that be why we don't see the wage pressure as well. are the new jobs the lower-paying ones? michael: certainly we have the baby boomers approaching the end of their careers, however, you won't see -- carl: certainly we have the baby boomers

approaching the end of their careers, however, you won't see as many dropping out. there will be a real test to see for we get those fence-centers ittersnto the -- fence-s back into the labor force. and a certain amount of this is globalization of jobs and a certain amount of this is corporations keeping costs down. there are a lot of reasons why this is happening and there are no easy solutions to this. pimm: let's take all three of those items that you just described, globalization, the technology, and these other technological indicators, and look into them? carl: inflation is a lagging just earlier this week, we saw the trade figures that let everyone revised down there estimates -- their

estimates. that, but ifstand you are an employer, you are not going to go out and hire workers unless you see demand. to do withl has confidence in the outlook. if we have looked at what has been happening in the equity markets in the last few months, i thought we would not see this until october, but we saw this materialize in july. michael: this is a tough call for the fed. 18 million cars were sold. pimm: right, we talked about that yesterday. michael: the gdp numbers that carl talks about shows inventories are going to be a lower and consumer spending looks to be still very strong. carl: it will have its wily coyote-- its wile. e. moment where -- pimm: what's the wile e.

coyote moment? carl: it is where they run off the cliff and look down and then fall. michael: we were talking about that consumer -- matt: we were talking about that consumer spending issue with cars and some say it is about sub prime financing. this is a guy who at least on the car side definitely should know. let me ask about interest rates. a lot of people are starting to feel like maybe jim b on go is right. anco is right, maybe the fed is never going to move? michael: japan is japan, they were too slow. rates fromutting earlier from 5% down to 0%, and

policy forto the 0% a long time with a lot of guidance, and they also went towards quantitative easing. that is the reason that we are not comparing ourselves to japan, and the fed is trying to keep october as a live meeting, but october is not happening. if the fed will continue to stumble -- matt: we are not talking about a rate increase, right? we are talking about qe4? michael: the problem with janet yellen is that they sort of tax themselves into a corner here because the data does not suggest a rate increase should sort of back-- corner herento a because the data does not suggest a rate increase should be done at this time.

the data don't support that. how do they get out of that? that is a tough question. carl: we have to wait for the economy to get stronger. the economy is not strong enough yet. pimm: we want to thank our guests and jeremy fisher is scheduled to speak in boston at 1:30 eastern. we are, of course, going to bring that to you, live. matt: here's a look at the top stories of this hour. pimm: the east coast may dodge nhe bullets of hurricane joaqui that is pounding areas of the bahamas with 140 mile per hour sustained winds. the model now indicates that the hurricane will not hit the east coast of the united states. instead, it will sweep south and east of cape cod, massachusetts i tuesday afternoon -- massachusetts by tuesday afternoon.

arece in oregon investigating a man who walked into a community college class and killed and nine people. the gunman was killed in a shootout with police. one witness claims that the gunman demanded the students' religions before shooting them. president obama gave another frustrated statement. president obama: people have anguish and parents across the country are scared because they know it might have been their families or their children. pimm: the president said that the congress is standing in the way. it won't even allow the government to collect data on how to reduce gun deaths. russia has launched a third day of attack in syria -- matt: russia has launched a third day of attack in syria. has joinedthe u.s.

six other countries in calling russia to stop those attacks. the issue problematic but russia claims that they must back president of saud against isis -- president assad against isis. syria also overshadows the ukrainian summit were angela merkel and other eu leaders meet to discuss the issue of the refugees. thatberg news reports of there are potential suitors eyeing gelencore.

glencore's's has lost 2% of its value this year -- glencore's stock has lost 2% of its value this year. pimm: and how hillary clinton criticizes the financial industry while holding out her donations.paign and we will go back in time. sotheby's is auctioning leases from the 1980's. and a look at the biotech itsany novocure as it makes debut today, but there is cool reception so far. we will discuss the sun more when "bloomberg market day" continues. ♪

pimm: good morning. i am pimm fox. matt: and i'm matt miller. welcome to "bloomberg market day ." let's go straight to julie hyman with a look at the markets. jules? julie: let's take a look at the companies who are doing a little bit better. , thea look at micron shares are down, but the company reported sales and profits for its fiscal fourth quarter to beat analyst estimates. essentially, what investors are looking for four micron is stabilization in memory chip -- for for micron is stabilization in memory chip. these are chips that goes into various kinds of technology and they are looking for stabilization as we have seen a

glut of overutilization. weller group that is doing today are the mining stocks. we looked earlier today at gold prices which were rising. theaw this environment for market and gold is seeing a relative rise today. groupsf mining industry have been battered. another look will be at jcpenney today. we're looking at lump sum payments and settling of their pension liabilities by as much as 35%. analysts say this is a good step for the company and the shares are up by 4%. we have seen other companies do this as well. and finally, sprint is doing some cutting, some additional cutting, and their shares are up by 3%.

it is also going to be eliminating more jobs and it will let employees know about that plan -- and they let employees know about the plan earlier this week. so while there were some down issues, there are definitely silver linings here, stock-wise. matt: thank you, julie hyman. move to politics. hillary clinton is spending plenty of time on the stump discussion discussing financial reforms, this in the aftermath of the 2008 wall street crisis. of wanting to bill a big banks is drawing attention. jesse hamilton writes about this and story for "bloomberg news." he joins us now from washington, d.c. who doesn't she say is responsible for this situation

-- does she say is responsible for this situation? jesse: she likes a talk about shadow organization and it is difficult to ascertain who she is talking about with that, but she talks about the lehman brothers and other groups who are primarily responsible for the crisis shadow organization g banks. she compares in these speeches these companies to other banks, and she thinks banks should begin in a -- should be given a break. banks she isy putting the blame on or financial institutions are those that can no longer give to her campaign or those that don't really exist, right? jesse: that is true and it certainly is no mystery that hillary clinton has been sympathetic with these large

banking institutions, certainly as the senator, the former senator from new york, she never went up against them in effect and she received major campaign donations from them, including citigroup, for instance. been anyse, has there pushback, any criticism of her stance from fellow candidates or people who have worked for her in the past? jesse: not from fellow candidates that we have seen, but there has certainly been a lot of interested parties out there that are fairly critical of her stance on this, especially from the left flank of the democratic party, which isn't unusual. she certainly has been walking a soundope, trying to tough, regulating the financial industry while also being friendly enough that she could still be a recipient of their

donations. pimm: -- matt: we say that morgan stanley and j.p. morgan donationsf the top 10 of her groups, but wasn't that true of barack obama, was in that true of george w. bush, wasn't that true of every contender? jesse: no doubt, no doubt. but of course we have seen that hillary clinton has bernie sanders breathing down her neck and raising money, and in the third quarter, he was very close to her numbers, and he certainly isn't a recipient of wall street's largess. pimm: jesse, does this have to do with the way that campaigns raise their money? this is in comparison of bernie sanders versus hillary clinton? hillaryhat's right,

clinton's campaign has been around large-scale fundraisers and bernie sanders, for instance, as we have seen, has taken a lot of a very small online donations. pimm: thanks very much, ,loomberg's jesse hamilton again from washington. giving us details about hillary clinton and her campaign finances. and some breaking news from bloomberg that arne duncan, the secretary of educati, will be stepping down on the cabinet position in december. we will, of course, bring you information as soon as we receive it. he will be replaced by deputy secretary john king, john king will replace arne duncan when he stepped down in december. pimm: he was the former head of education for the los angeles school district. time a littlein

bit. it won't make you younger. matt: are the 80's really that far back in time? pimm: maybe for some people. isre going to look at what back in the 80's and we will tell you about it. ♪

pimm: this is thepimm: -- pimm: this is the "bloomberg market day." i'm pimm fox. matt: and i'm matt miller. imagine back in the 80's, plastic watches would have become an investment? is now saying to buy watches. pimm: the chief executive of

goldman sachs has been swat -- has been spotted wearing his swatch watch and maybe that will add to the collection of swatch watches. these becameber popular when i was maybe 13 or 14, and it was cool to wear maybe multiple swatch watches. pimm: at the same time, of course. matt: on one wrist or on both arms or maybe your ankle. a fortuitoushis is reminder that buying the apple watch and keeping it in pristine condition, a cousin i can also imagine that you have to keep it in the box and -- matt: the apple watch is a tech old tech. can become but the swatch can never become old tech. pimm: that's what old people say, by the way.

is swiss watch industry going to have to figure out how to respond to the apple watch as well as all of the fitness devices. matt: that's right, maybe apple will be the next watchmaker to get into car building? pimm: there has been plenty of speculation, right? matt: i just want a rolls-royce my life and then maybe would be complete, and maybe i will get a swatch watch as well. pimm: we will work on that. matt: pimm is out of here, i'm going to stick around. there will be more analysts coming in, and we will hear from the former chairman of council of economic advisers and pimm, you have a good weekend. pimm: you too. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve evy aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment,

we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. matt: welcome back to the "bloomberg market day." i'm matt miller. let's take a look at the top stories at the bloomberg terminal at this top ever.

the u.s. economy is feeling the slowdown in global markets. the september jobs report came down much slower than expectations. the median forecast was for 200-1000 jobs and the august figure was resigned -- was revised downward. more people left the workforce. labor secretary tom perez was asked what the government can do. tom: we are still the envy of the world, and we know we can get better. we need to pass the transportation and infrastructure will. -- bill. we need to get rid of these ridiculous sequester caps. we know how we can pick up the pace and grow and that is exactly what we need to do. matt: the share of working age people in the workforce fell a little bit to 62%. that is the lowest participation rate in 38 years. that jobs number has changed the way the bond market is looking

at an interest rate hike. anders haired their bets they're pricing in at just a 29% chance that the fed will raise rates in december, and more than half believe the fed what move 2016.march of house republicans believe they may have enough to force the import export bank. his authorization to make inorts in june -- expired june. warren buffett has some advice for some young silicon valley millionaires. give often and give early. he has been pushing tech give away theto fortunes. he said if he had been giving away his billions in his 30's, he would have been giving to -- if he had been earning his

billions in his 30's, he would have been giving the majority to charity. and now we go to marco is standing by. in europe went down to a decline of 6% before slowly reis -- slowly rebounding. uncertainty about the strength of the modern u.s. economy made havelobal economy gyrations. what a weird session. have some data on u.k. home-building, which reached its fastest pace in the year, and that is another sign that the u.k. economy is showing some momentum. ahead of the national elections, regardless of the outcome, a bloomberg poll suggests calm in aremarket as both parties

looking at fiscal prudence. how about some of those big stock movers in the last week? notcore improved, but enough to raise that record 29% on monday. investors have expressed interest in buying stake in its agricultural business for those who are familiar. wagen way again -- volks dropped another 4.50% after admitting to installing software that would help their curse cheat on emission tests last week. bm offshore is up 2.95%. to come back to the stoxx 600 to see if it closed higher over the week.

let's just press this button because despite the rebound on friday, over the week, if fell by one half of 1%, that means it was the third consecutive weekly decline, the longest stretch of losses for the year. don't forget, this comes after the stoxx 600 fell by 9% of the third quarter, which was the worst quarter in a year. back to you. have a great weekend. matt: thank you to mark barton in london. and alan krueger and jim glassman broke down the jobs report on "bloomberg surveillance." >> this is disappointing, but as long as job growth is in excess month, that is growth in extent of our underlying trends. we are going to have to get used to these notions later. no compelling reason

that the fed has to do anything now. the compelling reason is the zero. rate is at if they want to move in an orderly way, it is about small steps. again, you have to ask yourself, what do you think the economy is going to be looking at in the next several years? not in one month. yes, this economy is a little slower than people thought, but this information shows the market is still recovering and i think the most compelling case for the fed to start moving beyond zero is not a good answer, and one or two points above inflation is the right answer, and a slower they can do it, the more orderly it can become. tom: alan krueger, i believe this put the inflation rate back to rates before 1977. is there a way to improve the number of bodies in the labor force? n: yes, most importantly, we

can make work more flexible. if we look at why workforce labor has been declining, it is because we are getting older and it is also a left over from the recession, but i also think what is most important is that it was about increasing participation by women. when we compare us to europe, europe has continued to see workforce participation rise. we have seen it and jean down. so i think any reason for the difference is maternity leave policy, sick leave policy, a more flexible workplace, and that is something i think that employers can do on their own and public policy can help, like providing preschool education. jim, tell us about how

there is a struggle to get this going. jim glassman agree, how do they respond to this report? will be slightly disappointed by the report, because we were expecting upper revisions and the job market is steady. the truth is, when you think about the economy, we have to think about all that we have on the economy, and when you put this together with the steady trend we have seen in jobless claims, which to me is the best measure of all of the things that we look at, and you look at measures, yeah, we are slower this year in terms of job growth, especially in terms of what has been going on in the oil industry. but if you look at the economy, there are reasons to be pretty constructive about what is going on here, and i think we will see job growth may be run a little slower than we are used to, but we are still growing faster than our underlying trend. was princeton

economist alan krueger with senior economist jim glassman on "bloomberg surveillance" this morning with tom keene. still to come on "bloomberg market day," commercial drones. the government can't figure out how to regulate them. we are to figure out why when we come back. ♪

matt: welcome back to the "bloomberg market day." we continue to see a success story in spain and on that no, we have breaking news out of standers and pours -- standers poor, -- standards and and they just got a rate to a b

plus. they had four and half percent of gdp for this year, so improving its deficits as the 4%, nominal gdp growth above 4% over the next three years for spain. once again, breaking news, standard & poor's raising its rating on spanish government +.bt to a bbb oflis tackle look at some the top stories across the bloomberg terminal right now. the education secretary arne duncan will leave in december after seven years on the job. duncan says he is returning to chicago to live with his family. john king will serve as acting secretary through the end of president obama's term, and the president is expected to talk about the move at 3:30 eastern time today. so tune in to bloomberg

television for that or go to bloomberg radio or go to bloomberg.com. itsnney has increased pension responsibilities by 35%. ney has $5 billion in pension obligations in the u.s. and it is trying to deal with those. richestorld's worst-performing billionaires ranging -- wang jing? network -- net worth has he is using his personal fortune to find a ackel margaret cho -- fund to a newn challenger canal.

to figurea can't seem out how drones fit into the equation. congress had asked the faa to govern the use of nonmilitary drones, but the deadline was missed. bloomberg's editor at large cory johnson joins us now with a look at regulation gone wrong or not gone at all. cory: not gone at all. it has been three years since congress asked the faa to create regulations on drones. now it is a rapidly changing world because of there is so much going on in the world of different so many types of drones. but they are so far behind the curve that they don't know how to issue rules about drones. there are a lot of issued permits for companies trying to try new things, but now they are trying to apply drones to business and the faa has not given guidance. matt: so if you don't have

regulations, do you just do what you want to do and kind of ask per business -- ask forgiveness instead of get permission, a la uber? or du go and look for countries that are more business-friendly -- do you go and look for countries that are more business-friendly? they many have said that do not have the guidance that they have asked for on this government, so they go and develop in other countries. a lot of drones start up companies are frustrated by this. on bloombergthis radio, not saying you shouldn't watch blooper tv, but afterwards, with listen to bloomberg radio -- watch bloomberg tv, but afterwards, do go ahead and listen to bloomberg radio. matt: i prefer radio. cory: of course, and you are lovely to look at.

are having a difficult time of this and furious about this because they really want to grow their business and they want to do it domestically what the other aspect of this is that we are seeing a lot of unregulated drone accidents because it is unregulated. droneshnology around means a rise in the number of incidents of drones safety issues and the faa has been recording these dutifully, they haven't even given us comments on how to operate these drones. matt: are these serious safety incidents? cory: there were a couple of drones that crashed into seats at the u.s. open. matt: was anyone seriously injured there? crashing but a drone into a seat might wound your hand but he might have an entirely different effect if it crashes into the engine of a jet. so even though congress demented rules three years ago, the drone operators in the drone

businesses are concerned that there is going to be an accident and it is going to lead congress to then demand drones to be banned and that is sort of the opposite approach. you have the use of drones in agriculture and the use of drones examining pipelines and the use of drones in all kinds of businesses but it is not being grown because there is no guidelines about what should be legal to prevent danger from happening. a bottom line as to why the faa hasn't delivered these regulations? -funded?der are they understaffed? certainly plenty of dollars going into this from venture capitalists, so examining pipelines, for example, all drones -- all oil carriers are required to examine their pipelines.

it is very expensive and very inefficient and they can do it with drones. withan also do this agriculture and looking at crops in very distant and rural areas. waynesses are growing the that they could because the guidance and the faa is lacking. matt: you are going to continue this on bloomberg radio? cory: yes. i am here to help. and one a note about arne duncan? matt: yes. cory: charter schools wouldn't be what they are in america if -- if it werehim not for him. excellent, cory, thank you so much for that information. reporter and former hip-hop reporter, believe it or not. i am not kidding about that, by the way. cory johnson. still ahead on "bloomberg market day," worrying about the housing

rebound. betty liu will join us to explain. ♪

matt: welcome back to "bloomberg market day." u.s. home prices are on the rebound. this should be a good thing but maybe not. it's complicated. signsilliams says he sees of imbalance emerging, especially in real estate. yesterday, betty liu was in san francisco hosting a panel on a real estate conference and there is more to add on this conference. wait, you were in san francisco yesterday? how did you get back? the redeye? betty: no, i just got back. but thank you for being concerned about my sleep cycle.

john gray, who is arguably the most influential person to listen to in the real estate market, he is also via blackstone, the largest owner of single-family homes in the u.s.. they own something like 50,000 homes and multifamily residential properties as well. the bottom line is he says that the housing market is still going to recover and they still want to take their residential assets public, so he is still quite bullish on that market, but there is this weird disconnect on what is happening the public in the private markets on how things are priced. smashing expectations regarding the fed's interest rate, and the private markets -- trading and john grain

john gray says it looks like a big disconnect and a big opportunity. especially as we now realize the fed is never going to raise rates, right? betty: let's put it this way, a very small chance in october, almost nil. now we're looking at december? matt: they say that you cannot do it in october and they will have a press conference with it but they are not going to have a press conference in october. according to futures, the biggest chance or the only time that fed fund futures have had over 50% is starting in march of 2016. betty: john also warned that the longer the fed holds off on raising rates, there is a acre, bigger risk of fueling these asset doubles -- bigger, bigger risk of fueling these asset bubbles. matt: betty liu is going to stick around? betty: i will be with you in the

next 30 minutes. matt: i very much look forward to that. i planted this. -- i planned this. i had a drone at your house this morning. let's go over to julie hyman with a check of the markets. julie: matt miller and drones. so joining me for options is some -- is scott bauer and he joins me from out in chicago. scott, we had this dramatic and negative reaction to this jobs thert on the idea that's global report is weak and may be here in the u.s. as well as. what kind of reaction are you seeing? is a lot ofnk it confusion, actually, julie. we are in kind of a no man's land.

we saw a really weak jobs report and the market could have rallied pretty heavily because we know that would have really delayed then any rate hike. everyone was pretty much expecting a rate rise and now it puts more uncertainty into the marketplace. uncertainty brings voluntarily -- brings volatility. now i think people are digesting it at and losses are cut in half. i don't they we should've sold off the way we did, but the way we break it down, it really says what is going on is not working. the economy is really not improving that much and that leads to some of the cautionary reaction we saw this morning. have seen a lot of hedging volume against more of a drop, perhaps, in stocks going forward? maybe this is not going to be the last negative data point we're going to see? early this morning, we

saw volatility rise substantially, and now it has whacked off quite a bit. i am not really seeing the public paper running by the s&p's or anything. i am: one of the groups watching very closely is the financials. it is the group that is doing the worst consistently today. , the company is coming out with a earnings on october 15, and you have a oldish strategy going into that -- bullish strategy going into that? do, 168, 169 is pretty solid support here for goldman sachs. it traded down there this morning but it didn't have the opportunity. --i want to buy the october

we have earnings on the 15th, and i believe that goldman has already baked into this earnings report that there was not going to be any earnings rate rise. a $10rket was expecting move between now and the october expiration. if we get right near that 180, my investment of $1.20 on that spread can go up to five dollars. and i what my risk is paid for the spread, so i really think that goldman is being the leader in this financial sector. they are the ones to look at. got toall right, we've leave it there. scott bauer with financial earnings. this is "bloomberg market day." we will be right back. ♪ ♪

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betty: despite a positive forecast, wage growth remains stuck. matt: and does this mean that the fed hike will be off the table? analysts believe that a hike will come in march of 2016. russian economy is struggling. we will look at how this will impact russian businesses going forward. ♪ betty: well in best are not at all liking that jobs report this morning. matt: it's weird, it is like bad news is bad news all of a sudden? betty: it doesn't make sense. well, it is a change in mentality going on with the fed right now. matt: typically when we get a horrible jobs number, that means it is sewing