david: here is what we're watching this hour. two huge to vote is for the energy industry and the earth climate. president obama rejected the controversy over keystone pipeline proposal and i thought under investigation for his climate change disclosures. ? how is in for oil underemployment is coming up fast on jobs day. mostit janet yellen's importantly labor market measures is now looking a lot better. an intriguing development and ben carson's campaign. allegations he lied about his acceptance to the u.s. military academy at west point. let's head to julie hyman. julie: you'd expect on a daily got a big jobs report would have a little bit more market action in terms of the decisive direction. we've been bouncing around all

day as investors try to figure out the implications of the jobs report. not just for the u.s. economy for rates as well. the s&p going lower. it's been a mixed session. look at my bloomberg terminal and you can see the next nature of the session. financials of strongly. better than 1%. utility stocks taking a big plunge today on race, consumer staples, and energy. ,et's take a look at the wirp the interest rate probability. this uses the fed funds futures to calculate the probability of an interest rate increase. the december probability his 9070%. he was in the 30's just a few weeks ago before he got the fed statement showing there was indeed a possibility it would raise rates in december. you can see the trajectory changing on this chart as well. it has had a big upswing. the bond market seeing the

increasing likelihood of a great increase in price and there. .9%. even going up another 10th today. that's the highest in at least five years. also taking another take higher since we last checked. david: the jobs report having a big effect on the u.s. dollar. julie: rising versus all its major counterparts today. you can see that looking at the dx why that -- index. now trading higher by 1.25%. gold prices going in the opposite direction as the dollar gained. down within 1%. oil prices also have been moving lower. not just today but all week we've been seeing a declining oil price and that is putting prices on energy stocks today. one of the things holding back the market overall. david: thank you julie. let's get a check of the headlines.

mark is at abuse desk. mark: thank you very much. president obama is rejecting transcanada's keystone at co-because he does not believe it serves the national interest. he made the announcement at the white house with secretary of state john kerry and vice president biden. of aecision in seven years over project that ballooned into a contentious issue. the collapse of crude oil has lowered gasoline prices, weakening the argument for the $8 billion pipeline project. another challenge to obamacare today. the u.s. supreme court agreed to hear a challenge from religious nonprofits over the laws birth-control mandate. the groups complain they are complicit in making contraceptives available and that is in violation of their religious beliefs. this is the fourth time the justices will review a challenge to the president's health care overhaul. russia is stopping airline service to egypt while the crash of a russian airliner is investigated. vladimir putin signed up on the

decision today. the airbus that crashed last saturday was taking tourists from egypt. pieces of wreckage are not being tested in moscow for traces of explosives. campaign officials for republican presidential candidate ben carson have admitted a central point in his personal story was made up. his application and acceptance into the west point military academy. this came in response to the inquiry from politico. the academy says it has no record of carson applying or ever being. admitted to the school in his book from 1996, he wrote he turned out a full scholarship to west point. making the cut for the first three republican presidential debates chris christie and mike huckabee will be missing from the next primetime lineup in minneapolis. the two candidates attracted to little support in recent national polls and will face off at an earlier time slot. republican-- eight

candidates will face off in the main event. that is the first look at his right now. you can get these and other breaking stories at bloomberg.com. david, back to you. david: something crossing the terminal now. the uaw has reached a tentative contract deal with ford. they stated bargaining committee has secured big gains in job security protection in a proposed. tentative agreement more on what this means for ford stock, let's get a julie hyman given julie: julie: at the moment is not meeting a big -- a heck of a lot. shares are up about 3/10 of 1%. it looks like perhaps this was expected. i'm not sure. we will give you more details. david: more on this later. let's go back to the top story. the october jobs report left little doubt the u.s. labor market is back. 271,000 gain in payrolls with

the biggest this year and it exceeded all estimates. does this give enough of the fed to get agreement to hike rates later this year at its december meeting? mohamed el-erian weighed in on this earlier today. mohammed: 99%. is in sixe meeting weeks time and things on the international site could get complicated, i would reduce its with the market has priced now which is 70%. david: is the fed ready to go? michael regan anteater -- and peter. let's go to the headline numbers. of all of the estimates that economist gave before this number, none was as high as this. what do we learn? >> the number really is a strong number. i want to put into a bit of context which is if you combine it with the august and september number to get a three month moving average, it is not that strong. it's actually below the rate of growth that we saw the first half of 2015. even further below what we saw

during 2014. these summers do fluctuate quite a bit from month to month. i think three months is a better. -- period. yes, we have job growth but to say it is white hot, no. as for 5%, a good number. a nice strong number and it is good to the 4.9% that the fed takes as its measure of full employment. beenfter having underemployed for so long the american workforce has lost some of its strength. there could be an argument for giving below the full employment number for a while to try to pull some of those people back into the labor force. david: mike, what say you? i do taking this measured approach? the market seems pretty ok with everything. obviously, it felt like the market has made peace with the fact that race could go a

potentially. if you look at the reaction to the september fed statement, ish. itas pretty dov sort of faded immigrant lower. we have the october statement which is more hawkish. we are looking at pretty much a flat market. the yield proxy stocks from utilities, real estate investment trusts, limited partnership stocks, those that are known primarily for the dividends they pay. treasury yields going up as high as today that they had went. regional banks are strong today. is sort of market settling into this range that we had earlier in the year. 21 hundred-2130 level in the s&p 500 is kind of what feels like where things were not us -- run out of speed. the valuations are a big part of the story. the expection and valuation

multiples was a big part of the reason why we rallied so strong over the years. earlier this year it seems like we had the ceiling where investors are saying shows the earnings now. they are not necessarily comfortable flowing out -- owing out evaluations like the.com bubble. david: this is something we've been watching closely as each of the reports come out. today some good news. 2.5% year-over-year increase which is the best in the cycle. a lot of catch-up to do. getting we are only now 2.5% annual growth after years of getting really slow growth means there is not a lot of wage pressure in the economy. we are not to the point where it are starting to see a wage price spiral which is what the fed ultimately worries about. david: manufacturing still a sign of weakness. peter: no growth there,

we saw numbers showing the manufacturing sector is weak and has been losing jobs. at the same time the rest of the economy was gaining jobs. the service sector is where the strength is. david: thank you peter and mike. ise again, the big headline uaw tentatively agrees to a contract deal with ford. more that coming up in the next 20 minutes. along with russian flights halted to egypt. putin facing the lingering concerns of a security threat. we will look at the cross-border banks are helping or hurting. and president obama ends seven years of little ring linked by saying no to the keystone pipeline. where will the energy debate over here? ♪

♪ david: welcome back to "bloomberg markets." let's look as some of the biggest business stories in the news. valiant pharmaceuticals says goldman sachs sold 1.3 million shares of the company. they were holding them as collateral as part as a $100 million for the loans to mike pearson. he used the loans to finance journal contributions to duke university and find a community swimming pool. 1/5 of the total holdings. we will talk more about valiant in a few minutes. square is selling its initial public offering at 27 million shares with a price range of $11-$13. hoping to raise about $285 million. jack dorsey will have about 26%

voting power. facebook is building a virtual reality content creation. a trio of microsoft researchers. they were previous at microsoft research working on projects like hyperlabs technology for stabilizing videos. you can get more business news at bloomberg.com. let's head back to the markets desk with julie. julie: based on earnings. disney, we got this after the close of trade, but he was higher by 2.5%. dreamworks animation, disney coming up with reassuring numbers on espn in particular. those espn numbers and network numbers in general came in ahead of what analysts had been estimating. dreamworks doing well on the strength of home sales of its itie as well as tv shows

shows a netflix. another earnings winner is monster beverage. the best-performing stock in the s&p 500, up 13% after earnings per share rose 20% year-over-year. also a couple of movers including blue mobile, the maker of the kim kardashian game. first,ook at skullcandy down 23.5% after they missed analyst estimates as to the outlook. they talk about slower than expected growth in distributor transitions in europe and china. they made the comments on the conference call. let's get to blue mobile. you can see down 11.6%. that companies numbers also missing estimates. they said it saw significant a lower-than-expected install volume. other words, not as many people buying their games. david: they do very much julie. back to the breaking news.

ford in the united auto workers have received tentative four-year agreement. this comes after the uaw restate deal with gm. let's go to the auto editor jamie butters. talk to me about the timing. we mentioned gm reaching its conclusion of its own. what more can you tell us about that? jamie: it's a little unusual. they negotiate a deal with fiat chrysler and gm and now afford. usually they wait for the 20 get ratified for the voting by all the local genius to be done before moving on to the next one. they have been waiting so long, after fiat chrysler workers rejected their first one and then went back to the drawing board and a negotiated with gm. they just got tired of waiting. they felt like they had a good enough deal and maybe they gained enough confidence that the gm deal was good be ratified so why not move forward. david: but was at the heart of these negotiations? i read about the two-tier

payment system that was something heavily fought over by workers at the union and the automaker. jamie: that was a big issue. goes back to 2007 even before the recession hit. the u.s. automakers were losing $1 billion a quarter. that was a good quarter in north america. they were so uncompetitive. the union gave in on their really fundamental principle of everybody being treated equally in order to try to help the automakers get through and stop losing money in north america. they about the second-tier workforce to come in. with this contract automakers have served -- are so much healthier and they are closing the gap on pay and benefits for active workers and still maintaining for the automakers, they are not promising pensions and health care for life. people retire when they are 50 or 60 and then still use the health care for another three or four decades after that. they have limited liability and their exposure to the long-term

risk. yet a love auto workers to get the payback they wanted and bring everyone up to the same level and get more harmony on the shop floor. david: how different are the contracts of the big three? jamie: they are mostly the same. there are a few things and sort of the work rules and some of the things that are tailored specifically to the plants. the other thing that is different is the have gotten progressively a little bit more generous. we present the ford dealer will be a little bit more generous than the g.m. one. usually the uaw starts with the healthiest automaker, guess the best deal they can, then work as hard as they can to force the other two to match the deal. the uaw flipped out and went if you across the first which is the smallest in the weakest. got the best deal he could run them in and try to add to it with gm and presumably the ford. the main differences been a be signing bonuses, the ratification bonuses. they give more money up front

but after that the wages and benefits stay pretty much the same. and gm they did at the second tier for mobile to first-year benefits, first-year health care while that fiat chrysler there was still more obamacare type of health care system. david: where did things go from here? i imagine there will be a vote among the membership, the 50,000 members. how long will this take? jamie: but you get a result of the g.m. vote tomorrow. monday the local leaders from the ford factories around the country will come to detroit and he will have a meeting. assuming they ratified and approved the contract which the uaw vice president said is one of the richest in the history of the uaw with ford, they will take it back to their members. it will probably take a week or two for them to vote at the various plants. it will be done with this for another three and three quarters years. david: thanks so much jamie. coming up next we will talk

foreign policy with nicholas burns, former u.s. ambassador. that's ahead of benjamin netanyahu's visit to the u.s. next week. ♪

♪ david: welcome back to "bloomberg markets." president obama and his seven years a contentious clinical back in work by saying no to the keystone at cell pipeline. -- xl pipeline. --secretary kerry ignore informed me after extensive public outreach and consultation with cabinet agencies, the state department has decided that the keystone xl pipeline would not serve the national interest of the united states. david: the backers are accepted to challenge his decision in court. congress made try to override the president. nicholas burns joins me now. i know this is not your under -- not under your immediate purview

but with your reaction to the news that white house has decided not to love the deal to go through? nicholas: i think it's a disappointing decision. from my point of view the united states needs to build up its energy infrastructure in north america, particularly with the canadian. it will make us a stronger producer of oil. it's a safer way to transport oil by pipeline rather than by rail. i think it would be better to approve the keystone pipeline. that's my own personal position. obviously you saw the reaction of prime minister trudeau in canada. he said he was also disappointed but he clearly distanced himself of the prior canadian government and say the u.s.-canada relationship is bigger than one issue. in terms of the strength of our country, our energy, i think it is a blow. david: talk about the symbolic significance of this project. he became a very politicized project for better or worse. here we are heading to the big

climate conference at the end of november. i was talking to bill mckibben, someone who has opposed this project the beginning. he says this would be a very huge symbolic gesture going into that conference if the president or to reject this. what does it say to the world community? nicholas: i think president obama has been trying to make the point that the united states is going to act on climate change, reduce carbon emissions. i think he is right. united states should be a world leader at these paris talks. this does give the president another argument to convince the rest of the world we are serious about climate. i don't actually agree with the argument. i am for renewable energy obviously. i want us to take decisive steps to lower our carbon emissions. when you look at the numbers and economic projections, the global economy will be dependent on fossil fuels for many years, many decades to come because renewables and not be able to make up that difference. absent technological jewel -- technological change.

that united is a fraternity transport oil safely because we will continue to be oil and gas producers. also to take commiserate measures when we cannot reduce carbon emissions. i don't see that is logically contradictory. i think our political debate has made people choose between one side or the other. i think it rational energy policy can go along with constructive environment the policy. week primeng up next minister netanyahu is coming to the u.s. what you make of the state of the diplomatic relationship between the two countries? admittedly brouhaha surrounding a new spokesperson for prime minister netanyahu? what does the obama administration needed remedy them? nicholas: it needs to be strengthened. i'm a longtime observer. i served in israel 30 years ago and watch the relationship. it probably is week now ahead of -- at the government level.

it's in the interest of them to put aside the differences they clearly have over the iran nuclear deal and try to move forward. i think president obama was right on the iran nuclear deal. i supported him on that deal. i think prime minister netanyahu would be making a major mistake is in this trip he tries to perpetuate publicly that disagreement. the iran nuclear deal is going to move forward and i think the israelis do you understand that and consigned themselves so that. and a spokesperson nuvasive outrageous choices -- charges against president obama. i don't you canonical -- can appoint president obama of things he is not. david: think you very much for your time. this is "bloomberg markets." ♪

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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 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. david: from bloomberg headquarters in new york, this is " bloomberg markets." mark crumpton is at the news desk. >> president obama has rejected

transcanada's bid to build the keystone xl pipeline. joined at the white house by vice president biden and secretary state john kerry, the president rejected claims the pipeline would reap economic benefits for the united states. president obama: this would neither be a silver bullet for the economy nor the express lane to climate disaster claimed by others. >> the canadian prime ministers has he is disappointed by the rejection of the pipeline and looks forward to what he called a fresh start with american officials. russia is suspending airline service to egypt while the crash of a russian airliner is investigated. president vladimir putin signed off on the decision today. the airbus that crashed last saturday was taking tourists home from egypt. pieces of wreckage are being tested in moscow for traces of explosives. turkish police detained 20 people suspected of links to islamic state, including two

russian nationals. the move comes ahead of the g-20 summit set for later this month. massive suicide bombings along the syrian border have been blamed on a local cell of the terror group. the attacks have killed over 100 since july. for the first time in a decade, americans appear to be smoking more. cigarette sales in the u.s. have been rising for several months. if the pattern holds, this would be the first year since 2002 sales volume has increased. among the reasons, savings on gas, improving jobs market, and cuts in government antismoking programs. " firsta look at our word news." you can get more on these and more breaking stories 24 hours a day at the new bloomberg.com. i mark crumpton. david? reporting,ark was after seven years, the keystone pipeline debate comes to an end. president obama rejecting transcanada spent to build the pipeline. more analysis from bill matson

who joins me from washington along with pamela ritchie. we heard from president obama explaining his rationale for this. what is his reasoning? >> it is important to note, and the president mentioned this today, calling this issue largely overblown. there was a sense inside the white house among his closest advisors that this issue was bigger than it was. it had become a political issue. it had nothing to do with policy, the impact on the environment would not be that big. the impact on jobs and energy security would not be that big. it has been frustrating for them for a long time. there is no question, politics played a large role as to why this took seven years. they did not want to do it during presidential reelection. democrats asked them not to do it during the midterm elections in 2014. the administration has made clear addressing climate change will be a key component of the president's legacy. they have the paris talks in a couple of weeks. now is the time, administration

officials felt, they could reject this and hopefully take that momentum into those talks it was some kind of agreement the president can point to going forward. david: president obama called the new prime minister of canada before he made the announcement. the prime minister has his quest his displeasure with his -- expressed his displeasure with this. do we express -- did we expect this to be the outcome? >> i think he probably expected this would be the outcome. in fact, probably hoped it would be the outcome if it was coming before he got elected. he was sworn in. it has been a busy week for him. tuesday, we had transcanada saying they wanted a cause before the state department review. wednesday, justin trudeau sworn in. thursday, not a lot. three days then, he has his first international issue to deal with. in many ways, the fact it has come so early in his time in

ottawa is much easier because it pins it as harper's baby. stephen harper was prime minister for 10 years. if it had been six months down the road, it might have been more of him being involved with it as well. david: a very busy week. put in context what an issue this was for stephen harper and the relationship between canada and the u.s.. >> it was extremely contentious. no question about it. it was something justin trudeau throughout the campaign used as a big thrust of this argument as to why it was time for change and why just entered a presents a more -- justin trudeau presents a more united front with the united states. all that said, i think resetting for paris. justin trudeau was elected on a platform of a much greener approach for canada in the future. he also is setting his agenda for paris and will meet president obama there. we are expecting to see fairly large commitments or outlines of

how canada will move forward. the interesting thing on the pipeline side is at the moment, it is not a massively difficult situation for pipelines and oil companies in canada. but many of them are in expansion mode. they are building so production can be bigger over the course of the next three to four years. in that three to four years, if there is not a series of pipelines or plans or things in the works, it could be an issue for bottlenecking, keeping things inside canada, assets not being able to get out. at the moment, it is not a huge deal. we have the energy east pipeline that is still up in the air. it has gotten through but with lots of quid pro quo. and also something to the west. there is a bit of a concern, no question. david: in your conversations with white house officials,

there must be some relief to have this over with. seven years in the works. a number of postponements. big reports, legal action. does it liberate the administration going forward? >> as one official put it bluntly, i am so tired of this, today is a great day. every press briefing, josh earnest was asked about this. most of the time the president had a press conference, they were asked about this. this was an issue that was problematic to the overall agenda, let alone the agenda on climate change. i think there is a lot of relief in the white house now and a great sense from their team that this is done, now we can move forward and look towards paris or at least for the sake of josh earnest not have to answer this everyday the press briefing. david: thank you, phil and pamela. launches soon out of canada. i want to bring in the founder of citizens for affordable energy. he joins us from houston. let me gauge your reaction.

surprised by this? seven years in the running. did you expect it would go this way? >> i don't think it is a surprise to anyone i know in the industry. it is not a surprise to me. it was a matter of picking the right political time to make the decision. it could have been made seven years ago and put a lot of people out of the misery they have lived through for seven years. but it waited until now. i think there is a bigger issue than the keystone xl pipeline that investors and american consumers need to think about. that is in the last 30 days, obama and his administration have made three important decisions that are basically going to condemn the american people and american economy to high-priced oil when this cycle of low oil is over. that is the decision not to export crude oil, which the president threatened to veto the congressional bill in that regard. the decision not to extend leases in the arctic, where

companies have 10-year leases expiring in 2016 and 2017. and this administration will not extend funds, even though they have held up the company's for many of the last -- and this administration will not extend those even though they have held at the company's for many of the last 10 years. then the keystone pipeline. for making those three decisions within the last month. this is going to mean domestic producers in north america and the u.s. are not going to have some of the access to domestic natural resources to take care of our fuel needs in the years to come. we know we will have those fuel needs as we continue to put 16 million cars on the road each year. detroit is having a field day. this is a bigger decision than just the keystone xl pipeline when you put it in the context of those other tickets decisions david: two decisions --two

decisions. david: we saw your former employer deciding to pull out of the arctic, to set aside the $7 billion plus expiration project. economics are changing. it is not all politics. >> truly. this low oil cycle is destroying capacity and value. as long as it continues, people are not going to spend the kind of capital it takes to fuel our future fuel needs, which is my larger point. now you are putting legal obstacles in the way as well given the recent decisions. at $45 oil, you cannot develop the arctic. you cannot develop the oilsands easily. and you cannot develop a lot of the offshore at $45. as sure as we are talking today, we are not going to have $45 oil forever. we are going to go back up. we know we will. world demand will continue to grow. every year, we lose 5 million barrels a day to reservoir depletion.

we have to keep up. that is the point of the oil industry. we have to keep up. we need the price necessary to keep up because otherwise, what do we do without enough oil? we end up with very high prices. we end up with shortages and economy destructive behaviors because of the high price of oil. david: let me ask you where the energy industry goes from here. there has been mention of legal action in response to this. mention of congress taking this up and trying to force the administration to approve what it has rejected today. looking ahead, what would you like to see the energy industry do? move past the keystone xl to something different or is it worth dwelling on for years to come? >> most everyone i know has written off obama and the obama administration is a failure with respect to the u.s. energy future. next 16ything in the months is a waste of time

because the obama administration is fixated on how many feathers they can put in there cap for the climate change agenda that the holdup pursuing for many years. and now in the later part of this administration, it is going to be the priority. the future energy needs will need to be taken care of by whoever the next president is. if the next president takes the same approach as the current president, we are going to suffer mightily from higher oil prices. david: thank you for your time. shalls the former president and c.e.o. and founder of citizens for affordable energy. ben carson's campaign team scrambles to fix the wreckage after admitting the central part of his personal story was a lie. more on that after the break. ♪

david: welcome back to "bloomberg markets." i'm david guerra. campaign admits a central part of his story was a lie, his admittance into the military academy. politico magazine uncovered this. this is something he has talked about for a long time, about how he applied and got in. >> there is some ambiguity. he has never said he applied and got in. he said he had an offer for a scholarship. the problem for ben carson is if you are well known and there are controversies that come up in a presidential campaign, voters have universal knowledge about you. part of that would be questions about things you said that her controversial. for ben carson, most americans don't know much about him. this will take up a large space over the next day or so about what people know about him as he tries to explain why he left the

clear impression in his books and interviews for a long time that he was -- that he had an offer to go to west point rather than simply people encouraging him and suggesting if you wanted to apply, you could get in. david: you have a guy like him who has not been in elected office before. so much that we know about him is his biography from books he has written, movies made about him. now is a front runner, he is being subjected to a lot of scrutiny. >> there have been other incidents this week. i think this is the most series were people are questioning stories about himself which you just suggested are fundamental to his popularity. people are not drawn to ben carson because he has great ideas on policy. they are not drawn to him because he has a great record of accomplishment in government. they are drawn to him because of one of the most extraordinary rags to riches stories in american history, i think, and because they like his honesty and integrity. this threatens to undermine those things.

if he is not honest and his story is not what he claims it forit will pull for threads people who want to keep calling to see if there is more. david: we are looking forward to another president of debate next week. fox business will host that one. chris christie will not be on stage for the main event. >> chris christie and mike huckabee will not be on the state. we we'll be down to eight candidates in the main debate. i think the organizers believe eight is the way to have a better discussion. unfortunate for chris christie and mike huckabee they missed the cut. this has been an unbreakable cycle. i think those who say this represents an end to the momentum chris christie has been building up a wrong. i think he will find a way to turn this to his advantage. david: this is not a do or die moment for him? >> i don't think so. right now, the leading candidates by polls and other factors would be ben carson, donald trump, and ted cruz. none of them are establishment

candidated. one or two of them will get the chance to have their chance when the voting begins. i think chris christie is in the mix. david: that is mark halperin. you can join mark and john tonight for "with all due respect." ben carson's campaign advisor will be on at 5:00 to address the west point story among other things. moving on to global banking. shops are shrinking. it is prompting central bankers to take a fresh look at current levels of regulation. chicagogreeley is in attending the annual federal reserve international banking conference. he joins us now. good to talk to you. >> you, too. the story of the week at the conference is balkanization. they arehat banks say being forced by individual countries to capitalize subsidiaries on a country by country basis instead of holding

capital at the actual holding company level and moving it around as they see fit. daniel gave a speech yesterday. he is a member of the federal reserve's governors board. he is responsible for macro policy, bank stability. he took on the subject of organization yesterday. >-- balkanization yesterday. >> they say it will result in the balkanization of international banking. it is not clear development since the crisis have balkanized banking. as much as they have shifted international banking assets from countries disproportionately affected by the financial crisis to banks in emerging and developing markets. that struck me because we have been paying attention to deutsche bank, credit suisse, like you were talking about, making the footprints smaller internationally. , i saws great data i saw

chart by dutch researchers that looks at growth in foreign subsidiaries overall in the world. you can see banks headquartered in oecd countries, that number peaked around 2006. thanks headquartered in emerging markets, it shows steady growth the entire time, which did not stop during the crisis. it is not that we don't have international banking. it is that we have less of it from the u.s. and in particular from the e.u. and more of it from emerging markets. david: we have had a lot of big speeches by fed officials. our focus has been on what they may or may not say on when a rate increase might take place a lot of these seem to center on financial regulation. some of theurope financial regulations in the u.s. might be imposed upon banks in europe. is there a lot of talk about that at the conference? >> absolutely.

daniel tarullo got a question about dodd-frank. he says we will see some regulatory relief for smaller banks. he suggests banks below $3 billion in assets should not have to heed the volker rule. i think we will see changes to dodd-frank soon. david: thank you, brendan greeley, live in chicago. coming up, square sets its ipo price and cuts its violation by $2 billion. we will bring you that story next. ♪

david: welcome back to "bloomberg markets." i am david groep. let's go to abigail talking about facebook after it announced earnings. facebook is on track to be the best-performing stock this week at the nasdaq.

ironically, it is one of the worst performers today at the nasdaq down 1.5%, reclaiming losses earlier. the reason it is the best performer of the week is the stellar quarter, they beat estimates, surpassed many metrics. they said they have more than one million viewers -- users coming to their site daily. the monthly user rate increased by 14% to 1.5 5 billion. there is a street high price of 155 at piper jaffray. that suggests facebook could score higher from 40% from here. david: appreciate it, abigail doolittle at the mastec. where -- square values the company at $2 billion less than its previous valuation of six point dollars. joining us from san francisco is emily chang. what accounts for this? this goes to show a have tiedpanies that

valuations to the private market may not be able to sustain those on the public markets. the price is going to move up and down. we don't know how the ipo is going to price on the day. square may think it can get through the 6 billion valuation in the public round. in the private round. we have been talking to a lot of analysts to understand this the core how strong business is. when it comes to the core says the one analyst core business is very strong. take a listen. >> they will continue to grow at high rates. within the niche of small retailers alex mentioned, they are the leader and they control that niche. there is a lot of room for them to penetrate, not forever but at least for a few years longer. they are selling other products into that category which will help them grow over the next couple of years as well.

expandedng: it has into other areas like small business lending. the question is, is this a $6 billion business? at this point, they are not pricing the ipo that way. it has been a tough time for new companies hitting the public markets. first data has done ok. pure storage has had a tough time. square is a different case. it is a buzzier company. it will be interesting to see how investors respond. a big question is going to be valuation. right now, lower valuation of $4.2 billion. investors think maybe that is more fair. david: we talk a lot about the prevalence of unicorns roaming around the bay area. i wonder what we can read from this announcement today about the other companies that have skyhigh valuations. emilyaching: we have --

chang: we have been talking about this nonstop, are the uniforms -- unicorns real? if there are 150 unicorns, a of valuations of near $1 billion. investors are saying these companies use significant engineering to achieve those valuations. but they are not real, they are just on paper, not real yet. david: appreciate it, in leaching -- emily chang. jack ma will be sitting down with emily chang next week in beijing. this is "bloomberg markets." ♪ buddy- nice place, nice car what happened?

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betty: flung bloomberg world headquarters in new york, good afternoon. i am betty liu. the blockbuster employment report, blowing away expectations. the job rate falling to a seven-year low. what does that mean for the rate hike? is it a green light? president obama saying no to the keystone pipeline putting an end to the seven-year debate over the controversial infrastructure project. facebook showing why it is the year of the mega cap stock. shares of the largest u.s. company possibly on track to beat the s&p by the widest margin since at least the 1990's. we are about an hour away from the close of trade. i want to head to the markets desk where julie hyman has the latest.