♪ good morning. i am betty liu. 's groundedport expectations. adding in december. does it july 1999? u.s. that's a rebounding this morning after china moves to halt their slide in shares. chinese stocks up about 2% overnight. a new twist and american apparel drama. a $200pany getting million takeover bid. ♪ we are a half an hour now into the trading session. julie hyman has the latest reaction to the jobs report. a pretty strong report. snapping a losing streak,

but not a huge reaction. wehas been fascinating what saw this week with a big selloff in u.s. stocks. you have some green on your screen today. it is definitely not increasing losses we have seen, but does reflect relief over the jobs report. some concern being expressed by investors by the lack of weight growth. remember tech was one of the worst performers yesterday? it is coming back today. pretty broad-based rally with notable exception of energy. looks like oil prices remain stubbornly resistant to the positive news on the jobs front. commodities up. while prices moving lower. prices moving lower. still concern about volatility

in china. higherfutures are bouncing back from losses recently. we have seen the buying of gold recently. interesting on treasuries. the yield not budging a whole lot either. julie: i won a to look at the interest-rate outlook as well. i wanted to look at the interest-rate outlook as well. yield.e the 10 year a little bit of a bump up and yelled. the two-year yield is that budging. this is the interest-rate outlook. for the march meeting, we are going downward. got a little bit of a bump up on the back of the jobs report. finally, let's take a look at currencies. the japanese yen has been

catching a bid recently. that ends today along with gold prices. people have been looking more for safety. that is not much the case today. betty: thank you, julie. this morning, vonnie quinn has more from our news desk. vonnie: showed a glaring divide between the glaring countries. south korea is condemning the latest bomb test. criticismasting clues -- includes criticism. poplso blasted south korean music. belgian investigators say they know where the attackers built their bombs.

were foundxplosives any brussels apartment. they also found a fingerprint of del salam. those attacks killed 130 people. president obama has a message for america's gunowners. he is not trying to take away their weapons. he spoke at a town hall meeting on gun control and said he -- eves brett favre is one step away from pro football's hall of fame. he left the nfl after the 2010 season. it will be decided february 6. beyonce is returning to perform at the halftime show.

24 hours a day, i am vonnie quinn. betty: it has been a rough weight for the market after plunging. the s&p is trying to pick up. the economy added 292,000 jobs. there was also a surge in payrolls. bloombergbring in our economic expert tom mckie. mike, let's start with you. i am reading these reactions. they are saying, hang on, we can weather this china storm. can we? mike: we have the biggest economy in the world, china is second. we do not get much of our gdp in

trade. it will not bring down the economy. as markets do, they overreact. the chinese stock market -- nothing at all like the u.s. stock market. thehow do people see strength of the u.s. economy, we will turn our attention to earnings. oliver, anyone having seller's remorse here in the market? oliver: hard to say. these are pretty bearish. what happens when you come into a decline likely had, short interest rises, and people started taking out bearish wages. shorte had a lot of interest in companies across the s&p 500 since august the didn't recover full he. -- didn't recover fully. you had a lot of people come in after a volatile year and

wanting clear indication, not just from what is going on overseas, but on the u.s. economy. there are some fundamental issues with companies. betty: we have two more job reports before the next fed meeting. do we continue to get good data -- if we continue to get good we can see a big rally here? oliver: the shorting of the benchmark scale is there, but in a lesser degree. persistent onat individual companies, investors are not to confidence. if the economy continues to improve, that will be good. are good for the u.s. economy and bad for u.s. stocks. numbers will create bullish sentiments. betty: mike, where does that

leave the fed? >> they are on hold right now. they place to be slow and steady. it will be a chance for them to assess what has gone on in the economy. it may be march before we talk about it again. they are not want to make a decision until we get close to that. we have talked about the lessons we have learned. none of that means anything. wait until we get to the end of february. let's see what the data shows. as oliver says, if we see more people spending money because more people have jobs, that will be good for companies, the stock market, and the fed will feel like he wants to raise rates again. chicago fed had president speaking earlier and he was saying that we do have consider the strength of the dollar and the impact on the economy.

that is what bill gross said this morning. i want you both to listen to what bill said this morning about the dollar. fisher and janet yellen seemed to confirm, probably are on track in terms of the verbiage. possible tok it's raise interest rates by 100 basis points in this leverage global economy, which reflects a stronger dollar. but, i think the fed at the moment will talk that talk. at theis there a chance dollar strengthens, mike, that might cause the fed to pause? word let's substitute the "if" to "as." it is confusing. everyone is expecting the dollar to go up.

we could see it strengthen in the future. that will depend on the economic progress of the regions of the world. the chinese gdp numbers may have an affect on that. strong,ollar gets very it will take a hit out of manufacturing, exports. are showingumbers export numbers are starting to rise because the dollar has not gone up. betty: what about the dollar on earnings? a lot of analysts are saying, if we have a dollar that is flat and doesn't see the surge in 18 months, that is going to be bullish for stocks. it is still one of the biggest head winds. betty: oliver, thank you. of course, thank you to mike mckee.

much more ahead on bloomberg television. yes, it isrming that .onsidering an ipo is it so big to value? the price of crude resuming trading near the 12 year low. investors are keeping an i on that volatility -- keeping an eye on that volatility. we are going to speak to the president of citizens for affordable energy. ♪

♪ despite the strong jobs

report, growth prices hitting their lows. down about 1.5%. close to that $30 a barrel. on thers are focused volatility in chinese markets. joining us now is john high-priced are, the former shell president. john, you say, things are going to get worse in the first quarter before they get better. how much worse can they get? john: i think we can continue the downward slide for some additional period of time. chain, the entire manufacturing sector, which reports the upstream part of the oil business, is going to be very hard hit with a lack of orders, lack of profitability, very difficult conditions to try to operate their plans because

the business has just declined tremendously. there is a circuit breaker in the system that not too many people are talking about yet. that $32 a suggest barrel, some of the operators, that is the remote ones out of the countryside that make 2, 3 productions a day. they are going to be shedding in because they will be selling oil below the cash costs. if the hundreds of thousands of down,er wells get taken that can be $1 million a day of lost production because it does not take a big push out to just shut in stripper wells. millionok another barrels a day out of production, that will have worldwide impact. betty: you are making it sound like that could be an instant

thing. how quickly could that happen? could that draw out for 12, 18 months? john: no, more like 30 days. betty: really? john: operators are independent owners. farmers, ranchers, the that have these old wells that aren't abandoned yet on their fields. if they get serious about shutting them in because it is costing them cash to keep them operating because they still have costs associated with their comection, and one, or to or three barrels a day is not a lot of money per se, but you add -- there isoil hundreds of thousands of these wells. you can shut down hundreds of thousands within days and have a very strong reaction to the oil price. betty: when i am reading into that, john, there is another warning that we could see what?

tremendous whiplash in oil prices? john: yes, and i have been talking about that for 18 months. the rapidity of the decline in oil prices can directly affect the rapidity of the rise in oil price. ders do is they trade on a surplus and shortage. they trade on the psychological impact on the surplus or shortage. what comes down will come up and vice versa. we could see it for very volatility, which is of direct benefit to traders. that is how they make their money. it would not surprise me if the strippers shut-in, which is near term, that sometime in the next five or six months, we could see a significant rebound start to occur as two things happen. the loss of the stripper wells, which is a lot of oil, one

million barrels a day, potentially, and the fact that we are six months further into the capital reductions of investments that will start to impact another production. ofbegin to see it -- instead 16 barrels down market, we are looking at 1.5 billions a day and that has impact worldwide. betty: sounds like we need to make a visit to one of the stripper wells by the way. [laughter] john, on another topic, local importance, isramco. i am curious. what did you make of this announcement that they are going to lift public shares? john: i have always been positively impressed by saudi aramco. they do everything professionally, thoughtfully. they think short, medium, and long-term rigorously. they have tremendous advisory staff that give the best advice. seeill be interesting to

what would be the governing body that oversees their public offering. company,artial to the or a whole of the company? one of the biggest hurdles for them to overcome would be coming to grips with the transparency, the publicly listed companies they have to live with. they have not dealt with that type of internal discipline before. do they want to get into the disclosure business and have the level of the? they have to think about that long and hard. betty: indeed. we have to leave it here. john, great to talk with you as always. john high-priced are -- john -- wester, former ceo have much more. american apparel saga continues. former with the

president. that story coming up. ♪

♪ welcome back to "bloomberg markets." i am betty liu. seeing the south african rand hitting a record low. you are seeing the line chart go up. part of it has to do with the jobs report. if the jumpy port is strong, the fed will continue raising rates and that will widen the differential between the u.s. and the rest of the developing world. check in with julie hyman. julie: getting esoteric with the currencies. i like it, betty. many investors will be using etf to hedge themselves.

our etf analyst joins us. i encourage everyone to check out eric's piece which talks about the enormous market for options tied to etf's. let's just touch on that. the options market volume is usually accounted for by etf's. it was amazing for me to read this. eric: you look for five years ago, they are double where they were. here is a step most representative. eds account for 30% for equity trading everyday. they account 70% of equity options trading. is theeason for that -- it haseason is become such a beast in the options market and used as a catchall. advisors and institutions, they and boom, michael

-- my whole portfolio is protected. it is like a snowball rolling downhill. they can come in anonymous, no impact cost. gigantic institutions start using them as well. julie: interesting. it is so straightforward. there is also the idea of buying options on relatively -- volatility.. eric: even though they are equities, they are pulling in from these other markets that are not equities. we hear people talking about buying volume. that is like buying insurance. buying big eds is like buying a gun.

eds is like buying a gun. this trait is $2 million a day. trade is to land dollars a day. 10% is a serious kick. way more than anything. you do get that kick but not quite what the picks does. you are looking at 40% a year. these things turnover 300% a day. in that case, you want to see a lot of turnover. you would hate to see that kind of turnover in a vanguard etf. short, thereng of is a short s&p etf as well. are using options volume on that? eric: just using it as a head.

when the sky starts falling, you will see a lot of volume and cvicks etf's. people reach for these things immediately. other investors may not want to go far. baby by every verse etf. the issue with this is the leverage resets every day. over the long term, it could corrode your return if there is volatility. julie: buyer beware as always. thank you so much. stay with us here on "bloomberg markets." live from bloomberg world

headquarters you are watching bloomberg television. with the first word news. vonnie quinn has more from our

news desk. : a u.s. special am i -- special employed in syria. the u.n. wants them to come to the negotiating table january 5 in an effort to sign a rebel -- sign a resolution to the five-year conflict. iranians rallied against saudi arabia today. thousands of worshipers and tehran joined the rally. similar protests taking place in other cities and towns. the u.s. state department -- state department releases e-mails from hillary clinton's private e-mail account. the the goal of the week. the department has now released 82% of the 55,000 pages e-mailed

that has been sent and turned over after she left office. el niño had record-setting rainstorms. the entire state is listed as of normally dry -- as abnormally dry. more than 150 news bureaus around the world. american apparel is set to emerge from bankruptcy with a possible takeover bid. joining us now, it has been that

long. is there a chance for them to come back? this, nobodyto do believed him. it looks like he has a financier . it was enough that he was able to make an official bid to the company about a week ago. he did wasest move he officially objected to the reorganization plan and said i have this other restructuring plan that involves these investors. not officially submitted to the court. he has been working on this plan and needs more time. >> where are we exactly? it looks like the banks would wind up this month.

it's up to the banks to judge and to intervene and either reject that plan or give china more time to develop this current other plan. >> how does the judge make this decision? >> it is how much release there is for creditors. sometimes creditors get repaid, others don't. it will be up to the judges discretion basically. a lot of between the lawyers. he made the following late last night.

>> and he is working with mollusk group? , it is the investment bank working with the company to assess its. anybody working with him that is named right now? >> these investors are willing to pony up. the bit is supposedly worth more than $200 billion. -- $200 million. >> is that price apprising? >> that is kind of the ballpark. that seems like it is right on par with where it would be. a final note, what are the finances right now of american apparel? when they file for bankruptcy they had $400 billion -- $400 million of bankruptcy.

is not that the operations have turned around. it should in the next couple of weeks. >> we should note something. much more ahead. apple is having a rough start with shares closing for the -- closing for the worst -- with shares closing below for the first time since -- kevin turn this around? -- can they turn this around?

a look at the biggest business stories in the mood -- in the

news right now. the family dollar brand will survive. 8200 u.s. stores last july. 2015 was its best year ever in china. 1.1 millionsold vehicles there, 3% better than the previous year. -- has jointt ventures with two companies. and colleges could lose their tax-exempt status. the plan calls for 100 colleges with assets more than 100 billion dollars to move their nonprofit status if they don't use one fourth of their endowment income for financial aid. and that is your latest bloomberg's newsflash. big story,k to our today's jobs report showing hiring remains solid in america with employers adding 292,000 jobs in december.

wages still remains stuck. piece of that story has been the battle over hiking the minimum wage. one ceo was front and center. c ke generates 1.3 million dollars in revenue. recently wrote an op-ed opposing minimum wage hikes around the country and joins us from santa barbara california. good to have you on this program. i ready your op-ed with great interest several times. i actually live in new jersey but live in new york state. the swing of the public is to hike minimum wage. it seems that is the trend. understand the

opposition, are you going assume you again -- going against the swinging public sentiment. bell and there is excitement for a minimum wage hike. there is not support for 12 or $15 per hour. per hour, thes company's largest retailer, the number one company with respect to, couldn't adjust, was unable to adjust pricing and technology to an increase to nine dollars per hour. they lost 10% earnings per share. they are predicting a another 10% decline despite a $20 billion stock buyback. businesses are actually losing money and there is not broad-based public support, because i think the american people have more sense than that.

>> the people might say to you that this is just further evidence that the retailing industry has made its money off of the backs of hard cheap labor of americans. >> i looked at the companies on the fortune 500. apple makes $400,000 per employee. they make about $6,300, not a tremendous amount. at 12 and $15, you are losing money when you hire people. here is just

everybody isn't going to make more money if minimum wage goes up. maybe suzy will make a dollar or two more. understand when they impose these costs on businesses there are ramifications, there are results. will have jobs, even the people will make more money, the ones who are able to hold onto their jobs. you will be condemning millions of americans to know wage and all. >> have you run the numbers at 10, 12, 15? >> in california we are at $12 per hour. we are 92% franchised. people often accuse me of making arguments on minimum wage. it's really not as important to

us as people might think. ofhave looked at the impact minimum wage increase. to do is go into a restaurant and see ordering kiosks. you go in there and there are no employees. you go to the grocery store. automation is coming in very strongly. are makingages automation more economically rational than hiring people. andare seeing jobs decline jobs lost. shareholder -- that is not shareholder unfriendly.

the retail industry may be held back on innovation, they are going to be forced to look at new technology. that could actually benefit the company, even a company like walmart in the short-term is feeling the pain of higher wages. >> with labor participation this labor participation is at 62.6%. or below 63% for 26 of the last 27 months. at a time when people are beking for work, should we using the force of law to make americans more expensive to employee? artificially increasing the costs of employing people and that is not a good idea at the same time technology is advancing.

>> you have seen the numbers as well. wage gap is growing, the rich are getting richer and the poor are getting poorer. what is the alternative? >> the problem is massive increases in the minimum wage. it has the highest minimum wage in the country for at least 10 years. the median household income has gone from 70 to $78,000 per year. low unemployment. what about poverty? 11.5% toas gone from 13.5%. he let the lower end of the economy, working-class americans, they are losing their jobs. therty is increasing in city where unemployment is low and medium income is increasing. have these incredibly high

level minimum wages. it doesn't reduce income inequality, it makes poor people poorer. the solution to this is economic growth. you can't eliminate income inequality with 2.2% gdp growth. the tax code simpler, if we replaced obamacare with something that we can get back to 4% of gdp growth. that was a longer answer than you wanted. >> i'm glad you mentioned the political side. good to talk to you. another ceo we caught up with this week's john martin.

he sat down with bloomberg's cory johnson to talk about its newly formed sports gaming leak. >> we bring a know-how as to how to put on sports events. and we have fantastic media assets. we are looking at this as a media business. we think this is something we can host, put on air, market, and bring to audiences. the championships are going to air on tbs. going to see how willing consumers are going to be to come to tbs.

>> you can drive big audience to a single show. >> it is actually a blending of the two. a little bit of an experiment. we are going to take these rogue and hostms of gamers these tournaments on twitch. to the finals, the best of the best, are going to be celebrated on tv. there are physical venues that are selling out with people coming to watch these events. incredibly exciting. tbs in general. the number one at support basic

cable network in the united states. it already has a huge percentage of viewers or millennials. in order to attract audiences from this kind of content, we are going to be able to reach new types of advertisers. missed --emale on a male and female audiences who are millennium based. put too muchto emphasis on the first go around. when you look at the global secular characteristics of people who want to watch this kind of programming. of course we are going to be consumer aggregation in terms of numbers. more business about fan engagement. our opposition is to engage fans

around the world and make our source of most valued entertainment news programming anywhere in the world. work learn -- we are to learn a hell of a lot more. we want to grow and build a category. >> much more coming up next.

betty: stocks are staging a slight recovery. i want to go to abigail doolittle, where she has the latest look on a stock really being battered, apple.

nasdaqt of a recovery in led by apple. shares of the iphone maker. pacific crest joins the growing bandwagon of analysts. that is the sort of action that has been behind the stocks big drop. analysts on the street have a buy rating. even in the near term there are some bumps here, analysts feel like the stocks for the long run. >> for more on apple, let's bring in our bloomberg intelligence analyst and tim higgins, who has been covering apple for us in washington. it just sort of seemed to snowball here. another.t and

>> it may have been a case where expectations have gone ahead of themselves. china is weak in macro data. you combine all of that and maybe we had expectations that are higher than what the channels are indicating and some indicatesa into apple they have taken down numbers. it seems to be par for the course matching up to reality. >> we will see is the numbers are distributed by apple. where does this leave the company in terms of products? people are looking to the iphone seven area is that going to change people's view of apple right now? every couple of years the

question is what is next, what can we do next with the iphone. we saw in 2014 the iphone in -- the iphone 6 increased record sales. it is an issue apple had for a number of cycles. tim cook is constantly fighting to say we continue to innovate. >> you are holding your iphone aren't you? we are glued to our phones. new product, what can apple due to reassure? >> from a seasonal perspective, this is an iffy quarter from a seasonality perspective. electronic sales are going to be likely down from the december quarter.

all the questions could be raised with him enough receptive years, this would be the time to do it. one of the things clearly set about apple is he is a media distribution franchise. maybe devices take less of a , but witho the media one product having such a significant portion of revenues it is hard to move the needle on the near-term. our reporter tim hagans in washington. much more ahead, i sit down with mohamed el-erian. the former the you columnist giving his take on the jobs report.

betty: 4 p.m. in london and midnight in hong kong. good morning, i am ready luke. welcome to the european close. joining me live from london.

like europe and the world are focused on two different things. >> china and active measures to curb its markets. the european close starts right now. betty: we are going to take you from new york to london. as you were saying there is a lot to watch in the markets. it seems like you are really focused on the commodities. >> it has been a choppy trading session. fornacted barriers financial markets. the first hour of trade stocks, just as the u.s. jobs report came out.