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 -- that means that

the fed will postpone its rate hike is further, but the market will get juice. doesn't the market like juice? betty: maybe if the juice is in the right kind anymore. we will see, i don't know. farber is saying that things are going well. maybe jim binaco? -- bianco? betty: let's go to the top stories. ist: hurricane joaquin better the bahamas. it is a category four and the hurricane center has shifted its track of the storm. earlier models show that the u.s. was going to get hit but now later models show that it is staying offshore. early reports from an oregon thating situation claim

the shooter was targeting people who claim they were christian. one woman said she survived by playing dead. it happened yesterday at a community college in a rural town 180 miles south of portland. afterwards, president obama expressed frustration. the reportinga: is routine, my response here at this podium and's up being up being- ends routine, the response in the aftermath of it, we have become numb to this. we have talked about this after tucson andnd after after new town and after laura and after charleston -- newtown and after aurora and after charleston. the: this is the 15th time president has had to issue a

statement like this after a mass shooting situation in his presidency. the education secretary resigns. step down after serving during the entire clinton administration. he will be replaced by john king, junior. and the latest round of walmart layoffs showart 450 people will lose their jobs and headquarters. albertsons will have an initial public offering and the sale will consist of more $23 65 million shares at apiece, and albertsons took on over $6 billion in debt lester to buy safeway. thatloomberg news reported offers are going for the

glencore company. its stock has lost more than two thirds of its value this year. tope are just some of the stories we are following that this noon. here is a big story, though disappointing jobs report. betty: the u.s. economy added 142,000 jobs last month, but analysts expected to hundred 215,000.- a guest fromith sanford, connecticut. we have the chief economist at rbs. michelle, what do you think? missed the window with at the rate hike or is there never a good time? never an easye is time to raise rates. it is not as easy to do as

cutting rates when it comes to trying to limit the impact in terms of adverse market reaction. but i believe that their window was probably september, if not even sooner, in large part --ause the meeting be quite the meeting between now and the years and was going to be complicated anyway. i didn't think that there was a risk that there would be economic concerns overseas and financial market volatility that this would drop a bit. again, that would make things all the more difficult. i think today's number, certainly that throws october out of the question, but it is going to make it very even more difficult in december. i have more confident in my march 2016 call after my call from earlier this week. part of that logic that i

don't understand, michelle, because what if the fed had increased the rate in december and this data shows perhaps we are in the middle now of further softening, and yes, the emerging market and the slowdown we are seeing their is impacting us here -- there is impacting us here. would you say the fed would be wrong in raising the rate? michelle: i think you are right, but let's scale back. this is not in any way going to put an expansion at risk. have beened, and we looking at a very a calmative monica -- a very accommodative economic policy. even if the economy slows to a 2% growth rate, it still has potential, it is a still going to bring the employment rate down, and it still does not justify a 0% interest rate. i think the case for raising interest rates and moving off of

the zero number would be valid even with the soffer numbers -- the softer numbers we're seeing. betty: what is the fed afraid of? michelle: first of all, i think the fed is concerned with the economy slowing and having to reverse course. there is no question about that. that is what has kept them from moving prematurely and they wanted to be sure. but by waiting, there is always something that keeps you on hold. the domestic economy is strong enough to warrant a raise, and i think most everybody agrees with that. i think what cap the fed on hold was the international situation. what i think we are much more insulated from global growth and by focusing on the international situation as opposed from the domestic economy, they have locked themselves in. aere is always going to be reason, but eventually, you're going to find yourself where the

domestic economy slows and then what do you do? matt: do you think one of the reasons that the fed stands back is because it is concerned that the market will come down, the market will react negatively? because i think everyone will agree that a 25 basis point hike will hardly affect the economy. michelle: i absolutely agree with you. i think that is a bit too beholden to the market. about that the federal reserve needs to lead here, it needs to not react so much to the market and i think what the market is struggling with is that it doesn't appear that the fed has a plan. it is not clear what the fed is looking at. we focused on the labor market in the u.s. and in the laker -- and then at the labor market achieve this, and there is another thing we are worried about. what the fed is looking at is the markets, the markets are looking at the fed's, and we are

looking at this circular analysis, and i think that is presenting more problems. to explain this to the markets and then lead and then the markets will have to adjust to this. the more you pull back, because of concerns about the market, the harder it gets. each time you do that, each time you wait, it makes it more difficult when you really want to move. what is going to change, michelle, between now and march when we expect liftoff, or will there be more time for us to collect data? michelle: even if they grow at 2%, which is far below our estimate, you are going to see the unemployment rate go down. theext march, you can see unemployment rate solidly below 5%. you are still sitting at zero

and i ultimately think that we will see probably a little bit more wage pressure, and i think that is going to be the ultimate trigger to process that and make the forward -- and make the fed take action. all right, michelle girard at rbs securities in stamford, connecticut. betty: and remember, vice chair stand -- stanley fischer will speak regarding monetary policy. matt: i was wondering what tom was doing up there. the rest of the team is really not up to snuff, so i thought he was up there to watch that. betty: apparently he has a date with stan fisher -- stan fischer. motors isgeneral getting into the sharing economy, launching a sharing

organization right here in new york city. ceo willd former pimco join me at the bottom of the hour. ♪

matt: welcome back to the "bloomberg market day." i matt miller. betty: -- i am matt miller. betty: and i am betty liu. let's take a look at the markets. >> you can see the markets are down across the board after that bad jobs number out today, 142,000 versyus 215,000. terminal,me into my

actually, let's not dive into the terminal just yet. i want to talk about a couple of interesting things regarding losers and the rig gainers -- big gainers. haveally, financial stocks been some of the market's worst performers all day. will be because the fed has not decided whether to cut rates at the end of the year. down nearly 3%, wells fargo is down over 2%, and bank of america is down almost 3.3%. these losses are more than the 2.2 percent losses, so we are seeing this across the board. financials are dropping like a rock. betty: what about the energy shares? >> energy shares go exactly the other way. energy shares went to becoming the best -- went to become the

last actor today. was about 1.8% up, but these of three companies are paying over 4% in dividend yields. this is even as we are seeing a crude fall over the last four bank days or so. the thing that people are deftly watching for is what is going to happen with the dead's future. now let's head over to my bloomberg terminal. we can see what is going to happen over the next six months or so. right now, only about 8% of analysts think we're going to hike ofve of a fed rate about 8% or so, but if that does happen, it will be at about 92% profitability. the first thing we are actually going to see something over the 50% line is in march of 2016

with about 65% of the folks polled believe in that is going come -- happeni then, and that is up a quarter of a percent. economisthad an saying just a moment ago that this would not happen until march. now a look at the top stories at this hour. house republicans may end up having to force a vote on the import and export inc. charter. the authorization for new loans thered in june and republican lawmaker from tennessee says he is confident that it will get approved. matt: there is another big hacking attack that has been found out. t-mobile said that customers who filled out credit applications with the mobile carrier may have had their personal information stolen. their names, addresses, and social security numbers were hacked by experience, the credit

tracking firm. betty: there is always another hack. and bloomberg news reports the jp morgan will pick up one third of the settlement in the swaps case. accused of trying to limit competition in the federal swap market. that is a look at the top stories in this top hour. matt: vladimir putin may be trying to assert himself in the military in syria. betty: but why is he losing ground at home on the economic front? we will take a look at that when we return after the break. ♪

betty: this is the "bloomberg market day." i am betty liu. matt: and i matt miller. -- i am matt miller. russian president vladimir putin is flexing his muscles. betty: he is in paris right now as you can see, meeting with world leaders and hoping to get an easing on the sanctions that have been imposed by the u.s. and the eu, which is hurting the russian economy. we bring in michael from the brookings institution. michael, we know that the russian economy has been hurting for quite some time, we see it with the ruble and with their be numbers, but will this enough to rein in their military ambitions?

michael: that is a great question because as we know, there is a fall in oil prices. thatct, i am almost sure affected prices. what that means is that it is twofold and these pressures point in two different directions, the pain on the russian economy is even more severe and putin needs a reprieve even more. knows the other hand, he these prices have affected him even more than the sanctions so far, so he may not be all that desperate to lift the sanctions, and moreover, i think his popularity is at 87% or 80% in russia, mainly because he has suppressed debate. so i think he is probably going to try moderately hard to get sanctions suspended or lifted, but i wouldn't count on him being desperate. matt: i wonder what you think about the situation in syria.

does he use that as a bargaining chip? sohael: i don't think because it is not obvious to me, frankly, that's we need him out of syria for anything we are trying to accomplish. obviously, the first couple of airstrikes by russia in syria have hit targets that we don't want them to hit. but it is not like they won't have success or even any prospects of success and i can see a need to even accommodate russia's role, some kind of osmium model for russia to protect the group from which a himselfhich assad comes from. maybe we would be able to protect them while still attacking isis. so i don't know if he would use that as a bargaining chip, i am not sure what we would get out of russia parsed up archer, and i don't think it would even be appropriate for us. to acknowledge that in those terms. for us tontial to --

acknowledge that in those terms. betty: you're absolutely right, we are not willing to validate what he has done in ukraine. michael, you mentioned that putin is not desperate due to a variety of factors and he has this high popularity rating, but he needs to have a functioning economy, right? at some point he is going to have to pay attention to that. michael: right, but again, to put it in perspective, for his desire for a functioning economy, he would have never caused this war in the first place, but he did. so his calculations are different than yours or mine, and he is willing to suffer for this broader economic game. but having said that, i think you are right, he would like to see these sanctions lifted. that is probably a preferable outcome, and that is why

activity in eastern ukraine has probably quieted in the past few weeks. this would require not just mass -- not just moscow but also kiev to focus on the economy in those eastern sectors. that would require russia to withdraw its forces and stop helping the rubble sectors. i am not sure putin is really willing to do that. so he may just calm things down and fire a few less rounds and tell his own forces, the separatist, not to attack a lot for the next few weeks, and not try to pay too much of a price himself. he is certainly cynical enough to do that and i would not rule that out. i'm looking at my bloomberg terminal on the price of crude oil, and he has gone the $90 price to a

little above $65. do you think sanctions make a 10% difference or do you think it is more like a 1% reference as opposed to the price of oil? michael: i think you are right with the first number. i haven't done a calculation, yes,y intuitive sense says 10%-20% of the sanctions, and 80%-90% of the falling oil prices. the effect of essentially discouraging any new investments, so it is not just the amount of direct harm that they cause, russia has been put ice i the international community and those companies who wanted to do more business with russia have reportedly scaled back their ambitions. so i don't want to trivialize is ini think it probably the range of only causing about 10%-20% of the economic problems

that russia has gone through in the past 18 months. you somichael, thank much for joining us. michael o'hanlon from the brookings institution. matt: are you serious? is that it for me? i just got here and i won't get to spend any time with you and i won't get to see anyone here again until monday. oh wait, actually, i will be back to talk about general motors. phew! betty: that's right. and then when we return, we will talk about the weak jobs report. stay with us. ♪

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and that's what we're doing at xfinity. we are challenging ourselves to improve every 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. welcome back to the bloomberg

market today, let's get the stories making headlines at this hour. u.s. economy is feeling the effect of a global slowdown. employers added 142,000 jobs. ofaugust figure was written -- was revised downward. >> we are still the envy of the world in terms of our economy. we know what we need to do to get better. we need to pass the transportation infrastructure bill. we need to get rid of these ridiculous sequester passes. we know how we can pick up the pace of growth. more one will have jobs. sprint is hope and it can cut back its profits. the wireless carrier is expected to reduce $2.5 billion next month.

and warren buffett has advice for young silicon valley billionaires, give early and give often. the world's third or richest person has been urging tech entrepreneurs to give away half their money. buffett tells the financial times if he had been worth billions in his 30's he would be donating to charity in a big way. hour, up in the next half general motors is taking on new or. we are going to ask a gm executive why automakers are getting in this crowded sector. we will get a live report from the french capital. federer preserve vice-chairman will be making a speech at a conference in boston. we will bring you his remarks on monetary policy.

fed, tradersof the are saying goodbye to a rate hike. 55% of those. weakness shown across the board. wages stagnating. joining us now is mohamed el-erian. chief economic advisor. let's start with the comments we are waiting for. picture seems to really try to get out there. report,er today's jobs do you think you will be coming that table for a rate hike?

mohamed: i think he want's keep his options open. we grew vision, week hourly worked,ours participation rate back to 1977 level. i think that takes october off the table. but i don't think it takes december off the table. there are other elements of strength in the u.s. economy. what you get is a message from him that says we keep our options open, we are data dependent, but he will not take it off the table. >> what are the other areas that are more positive and would go for a rate hike?

mohamed: to look at other indicators, they are not as negative as today's report. consumerok at spending, including what people have been spending on cars, it is not as negative. today's report is bad, but it is not that enough for the fed to completely remove 2015 as a possible hike. betty: michelle gerrard believes the fed had missed its window. they should have hikes in september before this new unveiling of more bearish economic numbers. do you think the fed made a mistake and miss their window? mohamed: i think it was earlier in the year when you had them -- had international and domestic

factors. the international factors became major headwinds. you have financial market and stability, that makes it difficult. now there are questions about ie domestic elements area would say it was earlier in the year. betty: we had a lot of people talk about the fed and the impact on the market. is howard from oak tree. i want to play this for you. howard: another reason they should bite the bullet and start doing it is when they don't do it, everyone takes that as a signal that they believe the market is too fragile to do it. that is why i think things have been week. think the fed thinks the market is just too fragile?

the fed isthink worried the market has lost its anchors. only have to worry about the impact of its actions but signaling. the fed will be looking at the market and say, wait a minute, the stock market came back pretty well. but the mop -- but the bond market still has u.s. treasuries moving downward. the market is not saying we know the economy is weak, but the fed will remain imminent. that is not what the fed wants to be. they want to be completely polar opposite, where they are able to slowly normalize policy. the fed is in a difficult position right now. forecast of a 50-50 chance for a rate hike is different than what the fed futures, where they are trading at and how they are gaming out. let's show that bart chart of a probability of a fed move.

that 50-50 scenario is more likely in march. there is a difference between your opinion and what we are seeing traded right now. why do you think in the futures markets they pushed it out so much further? mohamed: it is hard to say why the market does certain things. let me tell you why decembers 50-50. the critical issue is not when it moves first. it is the journey. the fed has an important communications challenge. it has to take the market focus away with a set sing -- away from obsessing about the timing. it will be a stop go process. in that communication challenge it will have a bigger window. then the market can be correct.

to what extend does the fed get to influence market expectations ? betty: the fed seems to be losing in that communications challenge. they said they are on track to raise interest rates this year. mohamed: janet yellen had been quiet for a long time. other federal officials would think on other federal than other factory things. views. range of

i think there is a realization -- it will be important in this regard. we talked about almost every major -- every major measure we look back. do you think this is the beginning of a down cycle in the jobs market? or could we see this as a momentary pause? one thing that gave me a lot of contraction the manufacturing sector. we are being hit by the impact of a stronger dollar, we are being hit by the slowdown in the emerging world. every systemically important emerging economy is slowing down and two are already in recession.

we are not as immune from the rest of the world as we thought we were. but the good news is there are policy actions that can be taken. that is a whole other discussion about congress. betty: thank you so much. great to see you. chief economic advisor. always joining us on job day. p.m. stan fisher will be speaking in boston. we will bring you his very important remarks live. college and universities have seen enrollment numbers drop for the past three years. what is the value of a college degree anymore?

that evening of course we are talking jobs and this incredible comeback in the market. >> if you had come to me a couple of minutes earlier i'm would have been able to show you a board green across the screen. clawback from earlier drops on the markets. we see that after st. louis fed president alert said the fed should start raising interest rates. we are seeing this reaction in the markets right now. atant to point out we are the 1922 mark and we are still

on track for a negative for the week. we did see this in the green earlier. we would be positive for that week. we will be looking to see what happens when the vice fed chair speaks. i want to show you the imap. financials have been down the most. with financials in particular, down by 2.4% for most of the day. the left over in energy is coming from transocean, up by 3.5% right now. pfizer was getting an upgrade from morgan stanley. let's head on over to commodities. over to gold.

gold is jumping to a one-week high. you will remember it have been falling all week because of that jobs data. taking a look at the dollar. the dollar is falling to a two week low. you can see that plunge around eight: ready or so. lower against the japanese yen. finally another job. still below the 2% yield mark. the fed vice chair will be speaking. betty: thank you. be golden age of college may drawing to an end.

and roman numbers have fallen for the past three consecutive years. law schools are also getting hit hard with enrollment declining at about 30% in the last four years. what is driving this trend? andof control student debt parents know longer able to foot the bill for their kids. mark crumpton is here. one reason would be everyone wants to get into a new startup. mark: it seems that at least for younger people now, they are of the understanding that why am i about to be burdened with student debt? why don't i get a job now? you can always go to college after you work for six years and may be saved up enough money to pay for your own education as opposed to having your parents.

our janet lauren has told us in if past horror stories of the parents don't have high enough credit the pair date -- high enough credit they may go to their grandparents. if they default will take that money back from social security. assuming harvard, yale, and princeton is immune to those enrollment numbers. are talking about is universities right below that level that still charge high prices. community colleges might still .e ok but it is those four year that cost just as much. mark: a lot of people have made the correlation what is happening in the housing market

and what is happening with the student debt. a lot of these young people, because of what it happened during the recession, they couldn't get jobs, they lost jobs if they had them. their credit ratings took a hit. the labor force participation rate is still a little bit disappointing. then do i pay my rent or do i pay my student loan? it's a non-virtuous cycle. it seems like a lot of folks don't want to talk about it. it's a presidential election year to. next we are going to preview stanley fischer's speech.

we are going to carry parts of that live. with thee speaking smartest minds we have here. talk about the september jobs number, which was disappointing. mr. by that much. it's pretty bad. betty: much more ahead. gm is taking on uber. find out what is new in the car sharing economy.

betty: welcome back to the bloomberg market day. gm is getting into the car sharing game.

residents of the ritz plaza apartments in times square. it's called let's drive new york city. perprice tag is a cool $10 hour. director ofecutive strategy and global portfolio planning at general motors. also joining us here is matt miller. you love cars. and this story is great. let's start with you on this. you had done a little bit of experimentation earlier in the last 12 months. what is this leading to? >> it is the simple fact of their opportunity to have access rather than ownership.

in new york city where everyone knows that ownership is down and 25%, providing residents without the burdens of was a great chance to deliver an integrated product for them to share. residents get three hours of beyond that they pay roughly $10 or $75 per day to access a diverse fleet of vehicles. we have eight tracks, vehicles, they are small utilities that are roomy and tall. and then two equinox vehicles. the parking partner is icon parking -- icon parking.

>> i wonder what the endgame is here. idea and it is a cool i'm sure a lot of new yorkers would love to be a part of this. but the best thing would be if everyone by his or her -- his or her own car? >> ownership is decreasing. providing 25 vehicles to 200 individuals and them being better for 20 people who own them and keep them there and use them seldomly. we think offering access to mobility -- to mobility increases the size of the accessible market.

betty: who knows maybe they would buy one of your cars. >> millennials may not be forgoing ownership completely. they are just deferring a lot of things. whether it is college or merit or their first big job. ultimately people need to have the freedom of the automobile gross. >> are you trying any other experiments that are similar? >> we certainly are. we talked about a project we did earlier last year with google. -- active commuting commuting into and out of campuses. was a very efficient process

but very pedestrian today where people are coming in and going out. the ability to connect people with out in vehicle connectivity allows you to set up commuter pooling systems that are very of it shouldn't and can be responsive because of connectivity and not necessarily inconvenient or something you can't rely on. that is what other thing we're looking at clearly. this whole idea is driven by the idea you can merge connectivity with the vehicle and with personal devices to create systems that provide access. you for joining us. executive director and portfolio planner for general motors. thanks to matt miller as well.

betty: mark: concerns flareup after october's report

disappoints. the turmoil is starting to hit home. betty: will the jobs report give the fed even more paths about raising the rates? stanley fischer duet the bottom thehe after -- bottom of hour. putin's surprise intervention in syria that has everyone on edge. good day from bloomberg world headquarters in new york, i'm mark crumpton. betty: let's get straight to remy. just in the last hour we have gone across the board read to in the green.