alix: from bloomberg world headquarters in new york, good afternoon . scarlet: i am scarlet fu. alix: i'm alix steel. around $30 they'll could did anyone predict is volatile market? scarlet: president obama will adjust the state of hiring later this hour. alix: who do you want to win the super bowl? portfolio could depend on the outcome. scarlet: we went to head over to the market desk where julie hyman is tracking a selloff of stock. julie: it's been selling since we got the jobs report. stocks settled on a more declining tempted the nasdaq has been -- tone.

the nasdaq has been leading the clients all day. it leaves room for the fed to raise interest rates somewhere down the line this year and stocks seem to be reading that interpretation somewhat negatively. if you look at the stocks that are declining the most in the mov,00, the bloomberg and it is some of the usual suspects from other selloffs this year. facebook,ech like microsoft, amazon, and johnson & johnson after the fda released a favorable commentary on a competitive a lot of the competitor. a lot of the big cap tech scene declines. the nasdaq leading declines with this -- i would not call it a meltdown of large technology, but an acute weakness after the group did well last year.

i want to look at particular groups on the week. transport seeing again on the week. utilities also seeing again. before today, we were seeing a decrease in yields. gold bouncing back this week as well. it's interesting to look at the winners there. alix: speaking of volatility, you have to look at the dollar bouncing around all week. and having a positive reaction to the jobs number. it would equalt the fed raising rates goo the dolla. the dollar rising against the yen and gaining against the euro and the pound. the yield moving higher today co on . on a historical basis, very low. it is strange to say yields are up to 1.87%, but there you have it. ip on the bloomberg showing

the rate hike po probability is back above 50% for the end of the before, you were not getting that reading until next year for now we are getting that 55% chance of a rate increase by december and if you look at june, it's a 32%. you see a little bit of a region jiggering of expectations. scarlet: thanks, julie hyman . alix: now to first word news with mark crumpton. mark: we are learning more about the spread of zika virus. further study is needed, but because found in urine and saliva samples. it is important that pregnant women use conscienc caution. researchers say there is a link between the virus and a birth defect. be in panel found to

favor of wikileaks founder julian assange. he has been detained since 2010 and believe that he should be detained could. he spoke today. detained without charge in the united kingdom for five and a half years. today, that detention without charge has been found by the highest organization in united nations to be unlawful. mark: julian assange has been holed up in ecuador's embassy in london since 2012. if british police would arrest him, he could be extroverted to sweden and end up in the united states in question about leak classified documents. a spokesman says the u.n. ruling changes nothing. report some serious say government troops are close to a victory that could tip the civil war in their favor. president assad's forces have nearly surrounded the country's

largest city. a supply line to rebels have been cut and refugees are fleeing into turkey. the new york fire department says one person is dead and three others injured following a crane collapse in lower manhattan. that incident was reported around 8:30 a.m. local time in the tribeca neighborhood. landed across several parked cars, smashing the roots. the metal stretched across the intersection and much of a block and global news 24 hours a day powered by 2400 journalists in more than 150 news bureaus around the world. i mark crumpton. that keeback to you. scarlet: with oil at $30 a barrel, wall street analysts are tightening up the hatchets and cutting their forecasted credit suisse change the estimate from $25 to $31. alix: when it comes to the

volatile oil markets, does anyone know how much oil prices can fall? amare going to ask i stewart. it's good it's good to see. to $39.t what happened over the last eight months that would be so hard to be able to track? >> what's been difficult to track is the inertia anemic and system. a lot of this on the slowness of the supply response in america. if you recall, we have a supply driven surface. that will shrink once applied against the fall. it takes that much longer for rising demand to make the crossover happen. slower supply response in the very last two months or so, a little bit less demand growth then we would've wanted.

the real culprit is the slowness of the supply response. scarlet: to what extent is that because we got a little bit of a realization and a pop in oil prices last year that prompted people and companies, investors as well, to think maybe we are done here? jan: i think that's a good point. and i, look back on 2015 as an economist, have to forecast on the basis that people stay within cash flow, right? when you look back, it turns out that the industry was able to overspend by a very significant amount. that overspending is either really smart or maybe not so smart. toher way, it allows you uild up more, and maintain production reflected when we were talking about high and you'll number, we thought production would be fully more steeply than it actually is. alix: we have seen a lot more

damage to the curve. taking a look of the bloomberg and it's predicting what markets will be out in the future. the green line is what markets thought it would be a month ago. 2024 anda barrel in now they are expecting $50 and 24. that is still more bearish. who's right at this point -- the market or analysts? jan: the short answer would be the futures curve is more often even more wrong than i am. curve does not doe do a good job of predicting. alix: if you are in oil producer, you would say i'm not going to invest in that project that $55 a barrel. what you are not seeing her do what you are seeing an industry is that budgets will the cut i half and even cut by more. you see people getting fired and losing jobs for reasons of the

futures curve and the aggregate deciding thattors oil demand will never grow again and we are forever going to be able to produce oil at ever lower cost. we kind of know that's not really right. but when will the futures curve and the aggregate of the markets to come igo back would argue, properly pricing oil? we don't know. but we do know is that this is not sustainable. we also know that supply is already going to fall. we also know that unless chan into a global recession, demand will continue to grow. the futures curve will go up and not down. scarlet: this is clearly not your first rodeo. you have written through a lot of these oil swings. learnid oil producers

from the oil collapse in the 1980's versus what did investors learn? jan: i think both learned from the 1980's that when you have a really, really large amount of spare capacity, it will take through them. from 1985 all the way to 1998, rises did not get over $20. an economist pointed out they would surely would never be over five dollars. lot of thater a spare capacity was churned through, we like another lesson that at margin, this would cost learnedproduce. we loads of different lessons. the question would be what do people remember and at what point in time? we learned that in 2009. alix: something we saw in the aftermath of the 1980's is that cost became so much higher in part because it inspired all these workers to get other jobs. then there was a worker shortage and that contributed to the spike in oil prices down the road.

are we going to see that down the road? fast is that happen on the upside? jan: it is fair to argue the price is now too low. the system that we have in america is to short order reaction functions. we thought america would react shortly into the three quarters. we are at the back end of year two. alix: is it the same on the flipside when prices rally? $60 i as an economist think and $65 is the target for the end of next year because i think that makes more sense. it will probably be higher than that. scarlet: how should come please project work oil can be if economists and oil strategist cannot figure it out themselves either? jan: what companies learned the hard way to do is to be really, really cautious, to plan for the long run. the long run on wall street is something like next week friday. in real life, these are seven-year leadtimes for projects. you learn that some companies

learned you need to plan for the middle of the cycle. you need to be able to sustain or survive on the low end of the cycle and you need to learn what is normal. not $100. patently is normal is no longer $20. it is probably somewhere in between. if your setup to grow only when it's $80 and go bankrupt when it's $50, that come in he is not going to be around for much longer. alix: great stuff. tuart, a global oil economist at credit squeeze. in the nexting up 20 minutes, u.s. stocks falling and the dollar advancing after a jobs report showing the labor market is on solid footing. what is the feds take away on all this. alix: wages are up and on a plane is falling, but there's a lot more to analyze and the latest jobs report. we're going to break down three charts. scarlet: president obama will be delivering a statement on the nation's economy. he is set to speak at 12:30 p.m.

eastern time. we will take you there live. ♪

scarlet: let's head back to the markets desk where julie hyman has a check on individual company movers. julie: i mentioned earlier that consumer discretionary is one of the biggest drags on the market today and a lot of that is going on in the media sector. let's start on the film side of the equation. lions gate outfits numbers after a close and revenue missing estimates by a 12% margin. the company said it's the optical slate did not perform as well as expected. the third "hunger games" installment, although it was part two of the third one, it

did not do as well as the earlier films had done. that is contributing to the declines there. is also falling after lions gate confirmed that it plans to start stars talks on a possible, nation. that is why both of them are falling in tandem. we also heard from news corp. after the close of trading that they are missing estimates. advertising sales declined hurt effect of the stronger dollar. though shares down nearly 9%. the viacom continuing its weakness. it appointed the ceo as the chairman of the company as well. 21st century fox getting doubt -- dragged on along with it. an enormous tumble here. nearly 50%. fourth quarter license revenue falling short of estimates. it is hurt perhaps by competition from cheaper alternatives. the interesting thing is that the miss was not that wide. the company said license revenue was $133.1 million.

$135 million is what was estimated. it is just that investors have apparently become accustomed to the company beating estimates. that is why we are seeing the decline. again, we're seeing it spread to other software makers. scarlet: thank you so much, julie hyman. alix: the u.s. january employment report released this morning show wages rising while the pay rate declined. scarlet: there are three numbers that are key to determining the health and longevity of the strength of the market. let's revisit those trucks with carl riccadonna. the first chart that matt picked out was a chart that shows growth and goods producing jobs versus services providing jobs. what you see is consistent with this bifurcated economy . it's producing jobs have been declining ball services providing jobs are accelerating.

when will we finally see a spillover from manufacturing into this services sector or is that not in the cards? carl: that's an interesting chart to bring up because as we look at today's jobs report, we actually see a more pronounced deceleration in the service sector than the goods sector, which is not what i would've been expecting giving what we f surveyn from the im and what we know about the broader economy. historically when we see a big divergence from the service via goods i.s. m, it is several points lower. scarlet: wire manufacturing jobs more influential than service sector jobs? carl: there are a lot of service jobs tied into the manufacturing sector. engineering, transportation, financing, all

these types of sectors are impacted as well. what may be happening over the last couple of months within , it is alsohiring mining and mineral extraction, which is not producing jobs. it is also construction activity. we have seen huge gains in construction employment over the last 3-4 months. it does not seem to you justified by the data. -- be justified by the data. if we look at housing starts and completion of housing, they were falling slightly in the quarter when we saw huge gains. there may be distortions because the usual layoffs that happened in november and december. hereord one christmas eve in new york city. those layoffs got pushed back later into the winter and maybe in january. if you are a construction worker and you worked a day or two at the start of the year coming the still --, you were still employed. chart was weekly earnings versus hourly earnings. hourly earnings moving faster than weekly earnings, stuck

around 2%. what do we learn about today on this? carl: average hourly earnings saw it bigger than expected increase for the month. in year on year term, we saw a 2.5% growth, it little lower than 2.7% previously cou. we are pretty much at the highs of the cycle for average hourly earnings. what it's important is that as we are crossing through 5% unemployment, we should start to see wage pressures. the 5.5% or 5.25% on the unemployment rate. now it is starting to materialize. it is telling economists, including those at the fed, we are crossing through full employment. we are starting to generate more rates pressures. you don't want to be completely off the mark with policy, but it also speaks to the resilience of the domestic economy because consumers are earning money. they will be spending that money. that tells us the economy will have momentum in the next couple of quarters. alix: the phillips curve isn't

totally dead. [laughter] carl: exactly. finally we are seeing where it's engaging. scarlet: the third chart is the percent of workers that were in the labor force last month. the white line is the 12 month moving average. this speaks to the continuing slack in the labor market and the u.s. economy's ability to reabsorb it. does that start to roll over? carl: this is an important chart because this tells us finally -- we have been watching slack be drawn down in the labor market. the big question was can we turn the labor force participation slop around? some fed cup said no. janet yellen said yes, we can. we have to run the labor market heart and generate wage pressures and entice workers back in. that is exactly what we saw in the household survey last month in the month before that could in fact, over the last four months, the labor force

participation rate has increased by 3/10. there is evidence supporting janet yellen saying keep your foot on the pedal here and we can bend this decline in participation. alix: it's always like the head of the fed new what she was talking about. carl: she's next one forecaster. i will give her that. even though the payroll change was weaker than we have seen in the last three months given the increase in the work week and the increase in average hourly earnings, from an income perspective, this is a stronger jobs report that we have seen over the last month. scarlet: great perspective -- looking beyond the headline numbers. carl riccadonna, thank you so much. alix: we will be looking at three charge you may have missed in today's report on "what did you miss?" later today. scarlet: still ahead, more on jobs and the economy. the president will be speaking live from washington on the state of the economy. we will bring you his comments. ♪

scarlet: welcome back to

"bloomberg markets." i'm scarlet fu. alix: i'm alix steel. flex work is a win for everyone. companies are producing rental costs, capitalizing on technology, and employees can work from the comfort of their own home. except there is a cost to the planet. scarlet: according to a study by carbon biggest provider, working from home can increase what causes global warning could people turn up the heat and energy consumption increases 20% when people work live.where they unless you plan to sit there with your winter jacket on, you will crank the heat up. alix: working from home is only green if you're traveling a lot. if you travel over 12 miles a day by bus or seven miles a day by car, basically it is ok to be at home because you are saving on gas mileage and train mileage. scarlet: another question is

where in the world are people working from home the most? it is actually india followed by indonesia. the u.s. is pretty low on this list, just above japan. really, you're talking less than 30% of people answering that they do the flex work and telecommute from home. alix: an amazing study could just come the work at still ahead, we are awaiting statements from the president, who will be speaking on the state of u.s. economy. we will bring you his remarks live. ♪

alix: from bloomberg world headquarters in new york, welcome back to "bloomberg markets." i am alix steel. scarlet: i'm scarlet fu could

let's star. let's start with the first reduces mark crumpton. mark: colombia's blaming is firstly deaths on the zika virus , and neighboring brazil is the hardest hit of the more than two dozen countries affected we are standing by for president obama. he is due to speak at the white house. the subject undoubtedly the economy. the joblessness rate at an eight year low of 4.9%. bloomberg's victoria stillwell is standing by an hour washington bureau. take us through these numbers and specifically what does this mean for the american worker. victoria: the jobs report today was pretty solid. the payroll game came lower than expected at a $151,000 game. that was down from two and 62,000 in december. we saw -- 262,000 in december. show a nice pop and wages as well. at year over year rate was

2.5% and that was from 2.7% in december. mark: i'm glad you mentioned the wage component of this. what does that mean for pocketbook issues? what does that mean for spending and consumption? victoria: that's a great question. wages have been the missing link in this recovery. it has been really disappointing to see the labor market tank so much and yet not that much happening with wages. if we are starting to see pressure in wages, that should give people a little bit more money to spend. the lionspending is share of the economy. when households are out there buying things, that's great news for our economy and we could use it after growth decelerated in the fourth quarter. mark: the torilla stillwell, thanks so much. let's go live to the brady press briefing room. president obama: as you're aware by now, america's businesses created another 158,000 jobs

last month. in 2009, theg 10% unemployment rate has now fallen to 4.9%. joined more americans the job market last month. this is the first time the unemployment rate has dipped below 5% and no mistake years. americans are working. haveold, our businesses added 14 million new jobs. 71 straight months of private-sector job growth extends along the street on record. years, 2014- two 2015, our businesses added more the since any time in 1990's. most of portly, this is finally starting to translate into bigger paychecks. over the past six months, wages have grown at the fastest rate since the crisis.

policies this year will give workers more leverage to earn raises and promotions. so unemployment, deficits, gas prices are all down. jobs, wages, and the rate of the insured are up. i should mention, by the way, since i signed obamacare into law, nearly 18 million americans have gained coverage and our businesses have created jobs every month since. on that, all of them full-time jobs. state ofaid that my the union address, the united states of america right now has the strongest, most durable economy in the world. i know that is still inconvenient for republican their doom andas despair to replace in new hampshire. i guess you cannot please everybody. that does not mean that we do not have more work to do. the globalftness in

economy. china is going through a transition. europe's economy is still slow. a lot of the emerging markets are challenged. that is all creating headwinds for a lot of u.s. companies that do business overseas. it makes it more difficult for us to sell exports. we have to take smart steps this year to continue progress. we also have to do more to make sure the progress we do make is broadly based. and impacting folks up and down the income skills. the budget that i sent to is going totuesday make sure that we can continue that progress. talking down the american economy by the way does not make that progress. offer mores going to opportunities for americans to get the education and jobs training they need for a good paying job. forill offer new ideas benefits and protections to

provide folks with a basic sense of security. we will create more good paying jobs not by subsidizing the past but investing in the future. that is why we are placing a big emphasis on clean energy. private sector solar jobs, for growing 12 times faster than the rest of the economy and they pay better than average. that is one reason why my budget is going to double our investment in clean energy research and development by the end of the decade. that's good to help businesses create more jobs faster and lower the cost of clean energy faster. it's going to help renewable power compete with 30 fuels across america in a more effective way. those are some of the steps that are going to make sure our future is even stronger, a future that is worthy of the hard work and determination of the amazing people. the progress we made -- going from 10% now to under 5% -- that's a testament to american

workers, american businesses, the american people being resilient and sticking to it. and my hope is that, rather than hinder the progress, we are going to continue to help them make progress. with that, have a great weekend. enjoy the super bowl. i'm not telling you my take. pick because the bears aren't connecte what i'm hoping in it. but hoping for a great game. >> you say you don't take enough credit. president obama: let me take a couple questions. and a good mood. it's friday. . >> you are flying yesterday in a joking way that you don't get enough credit. president obama: this is when i was talking with the warriors. now to the referring republicans and their message,

which you could say could be affected during an election, or where you are reflecting on the fact that 67% of americans in polls think it is not going well in the country? why do you think that this? the time, iama: at was making a joke with the basketball team. while we is no doubt have made significant progress, and i talked about this during the state of the union, there is still anxiety and concern about the general direction of the economy. if you look at some of the service, people feel better about their circumstances, their finances, but they are not sure about the future. is stillof it is there a pretty big carryover from the devastation that took place in 2007-2008. if your home value drops in half or you lose a job that you thought you were secure in or your pension suddenly looks full

mobile, you're going to remember that. so a lot of people still feel that. and their right to recognize there are some longer-term economic trends that we still , the economy is more dynamic c and it turns pressure onhe companies to maximize short-term returns, oftentimes at the expense of long-term investment, the lack of loyalty sometimes to workers to help those companies laidre threatened to be off, the fact that wages and incomes up until the last six months have not gone up as fast as corporate profits or benefits at the very top -- all those things. people feel an expanse. even though they know things are better, they are worried where we are going. the argument i am making here

and will continue to make during the course of this year is we should be proud of the progress we made. we have recovered from the worst theomic crisis since 1930's, the worst in my lifetime and lifetime of most the people in this room. and we have done it faster, stronger, and more durably than just about any other advanced economy. adopted some of the policies that were advocated by ,epublicans over the last four 5, 6 years, we know we probably would've done worse, and we know that because a lot of european countries adopted those policies. they have not yet gotten to the same place they were before the crisis. so evidence, fax or on our side. gives you onert more indication that the facts are on our side. ushink it is important for than to understand how do we take the next step and make

people feel more secure and feel more confident about the future. is why investments in education and job training, going after the high costs of higher education, making sure paid leave ande family leave are put in place, raising the minimum wage so that if you are working full-time you're not in poverty, making sure that we are investing in transportation infrastructure in clean energy, going after the jobs of the future, investing in technology -- all those things are recipe for continued growth and increase security. as far as i can tell, those who are running down the economy and adding to the anxiety don't seem to have any plausible, coherent recipe except cut taxes for the folks who are doing the very best in this economy and somehow magically, that's going to make other folks feel good.

for alternatively, they argue the reason you are feeling insecure is because immigrants or poor people are taking more and more for paycheck. and that is just not true. the facts do not bear that out. that is not where the weaknesses in the economy are. depressing what is wages for middle-class families are making them warm vulnerable to disruptions in this economy. i want to keep on making that argument during the course of this year. we should feel good about the progress we made, understanding that we've still got more work to do. , you know --like i'm 54 now so i thought workout harder to stay in shape. i'm feeling good in the gym. i want to ignore knowledge that .hat i'm doing is working otherwise, i'll just go off and have a big double bacon

cheeseburger or something because i think, well, this isn't working. if it's working, we should be staying on that same path. iat doesn't mean i'm mor where necessarily want to be. stop doing hard work to get where we need to givo. i'm just going to take two. >> thank you, mr. president. how can you improve workforce participation levels? as much as people talk about the recovery, so few americans are relatively speaking in the job force, compared to 2008. if you wouldn't mind, could you please comment on the $10 per barrel fee that we have heard so much about? president obama: on the first question, part of what was written in this jobs report is the fact that the participation rate, in fact, didn't drop.

reason why the unemployment dropped. more people are entering into the workforce. they feel more confident and they are finding work. but what is true is that we are the labor point where participation rate is lower than it has been historically. some of that is explained by demographics, the population is getting older. you would expect that there is some decline, but it's not fully explained by americans getting older. some of this is still the hangover from what happened in 2007-2008. this is part of the reason why theave to keep our foot to accelerator in terms of doing the things that need to be done to keep the economy growing and keep it strong. we should not let up from the progress that's been made so that the labor market continues to tighten, people feel more

confident that if they go out and look for work that they can find it. there are particular cases where some folks have just been out of the labor market for a long time and may not be equipped for the jobs of today. and that's where we have got to target some special efforts. i get a lot of letters from middle-age workers who got laid off, aren't confident about their current skills, and so have not yet reentered the workforce. they need to get retrained. so that is a special group of folks in her late 40's, early 50's, still far away from the retirement, but feel like taking a doubt. -- can't adapt. , highare young people school dropouts, folks in rural communities and inner cities, that just came of age right in

the middle of this terrible recession. and they have not gotten attached to the labor market yet. we have to make special efforts to figure out how do we get them it's a job training programs or community college and allow them to get some skills. so there is a wide status strategies we can take on that. -- set of strategies we can take on that, but it's going to require, overall though, a strong labor market for them to feel like it's working to make these efforts. making sureto keep that the labor market is as strong as possible. ,ith respect to oil and energy i will probably make it larger speech about that and the this,ion we need to go on but the basic proposition is is $1.80. now, gas

gas prices are expected to be low for a while, for the foreseeable future. that overall can be a good thing for the economy. important islso d where use this perio gas prices are low to accelerate the transition to a cleaner energy economy because we know that's not going to last. us have seen cycles where gas prices go down and the they pop back up and idea here is that if we say to oil companies, which by the way, got a significant benefit in the omnibus, allow them for the first time to export oil, up until that point, domestic oil producers cannot export. so if we say to them now, all right, oil companies, we know you are having to retool. we know that prices are low

right now. you are allowed to export, but is that we areg going to impose a tax on a barrel of oil imported, exported , so that some of that revenue can be used for transportation, some of that revenue can be used for investments in basic research and technology that's going to be needed for the energy sources of the future, then tenures from now, 15 years from now, 20 years from now, we are going to be in a much from your position -- stronger position once oil starts getting --ed again and oil starts prices go up against. we will wean off of dirty fuels. we will also have a much longer economy, a stronger infrastructure. we will be creating the jobs of the future and i think we will look back and we will say, that was a smart investment.

that was a wise decision for us to make. my point is that it's right to do it now when gas prices are really low and they will below for quite some time to come so it's not going to be a disruptive factor in terms of the economy. ok, guys. i only said to questions, but i hope you have a wonderful super bowl party. thank you, guys. mark: the president of the united states live from the brady press briefing room at the white house could present obama making comments on the day that the labor market reported that the jobless rate for january fell to 4.9%. that is the lowest rate in eight years. that 14ident saying million new jobs have been created in the past six years. said the united states of america right now has the strongest, most durable economy in the world. and taking a swipe at some the republican president shall contenders, the president said

that news is inconvenient for them as they are on the campaign trail. asked if he gets enough credit for the economy, the president said people still feel the impact of the recession, even if they lost their job or saw the value of their home drop by half. he was also asked how he could improve the labor force participation levels. he said the participation rate did not drop. more people are entering the workforce and finding work, but he did at the participation rate is lower than it has been historically. we will continue to follow this story. one of the top stories on bloomberg today is the january fiveumber down to point 4%. from bloomberg world headquarters in new york, i am mark crumpton. ♪ scarlet: you are watching bloomberg news. i'm scarlet fu. alix: we are looking at france's largest bank seeing fourth tumbling.ofits come w

scarlet: we are also looking at the european union. deal talks are on the table. alix: hold on a second. there we go. u.s. equities -- how much are they going to pay out? scarlet: first, let's start with comments from the british prime minister david cameron. supported warsaw for from his polish counterpart. off think britain is better in a reformed european union if we can achieve those changes. i think that is something that would be good for britain, for europe, and also good for poland. fourth-quarter profit falling more than expected at france's largest bank and the income down 2% from a year ago. profit and frees up capital. they did produce income to the

highest output in a year. oil pumping and saudi arabia is at a record pace. the saudi minister for foreign affairs talked about how oil is affecting foreign policy and how outlook can hold at these levels. >> we believe there's sufficient room in the market for countries to produce oil. their demand is going to be growing. prices willhat the be set by the equilibrium between supply and demand globally. alix: the third-largest lender in switzerland will pay money to settle a tax evasion case. baer admitted that it helps clients hide assets from tax authorities and it also coaches bankers on how to avoid detection. scarlet: time now for the bloomberg quick take where we can provide context and background on the issues of focus. transactions track involved leverage, which is like

a loan that allows families to make a small down payment to buy house. it also multiply losses when markets move the other way. as a result, regulators around the world are pushing new capital requirements in order to withinverage at banks safe limits. it has become a linchpin issue that many hope will prevent the next global financial crisis. here's the situation. thanks were put on notice to create a bigger cushion between withdrawals in losses. met in, regulators switzerland and more than doubled requirements for capital ratios. they introduce a backup measure that introduced a broader, simpler accounting of the bank's liability call the leverage ratio did it will rise to six with 75% in 2019. globally, banks have raised about half of what they need to make the requirements, mostly by holding onto profits. the european union is criticized as being lax toward

the rules. by the time the subprime crisis broke, the capital on average was 4% of assets. when markets crash, many banks would've been insolvent if not for the believes of dollars pumped in by central banks. they are putting up a fight against capital requirements. they argue it is bad timing to impose new rules when the world economy is still recovering from the crisis. a cedi rules will possibly and ultimately discourage new lending. other critics say it is too long to implement and another global crisis could erupt before the standards kick in and banks would be caught without enough money in the ball. that is today's quick take. businesssure global report. for more stories, visit bloomberg.com or bloomberg.com/quick takes. over tooing to head abigail doolittle, who joins us live from the nasdaq. abigail:. we are still looking at a big

selloff here at the nasdaq, one is outpacing the other coul. the biotech industrious down to the nasdaq itself as the biotech bear market worsens. the mbi is down 35% from its record peak, well below the buying support of last year's lows. it suggests the selling may .ontinue to part of th part of the weaknesses is allergen. some of this could be around whether rising drug prices may spark more activism in congress, something that could continue. the biggest drag on the nasdaq though is big tech. the overweighting to these names. we have seen this team all year. today, amazon, facebook, microsoft, and alphabet -- 70% of the nasdaq com composition index, they are trading down in sympathy with linkedin. there is also quote momentum stock bubble made popular those

may pocket a may have a point since netflix and amazon are down 25% from the record peaks put in last year. the question could be whether or not that is a tell for what is to come over all are not. alix: we do want to take a quick check on the markets. his been a website day as markets have adjusted to the better jobs number. you're taking a look at the s&p off by 29 points, at 1.5%. nasdaq is the worst off by far, over by 2%. if you take a look of the dollar they, you can come inside bloomberg terminal and i can point out to you what happened with the dollar as that jobs number came out. the interpretation is this would be good enough for the fed to continue to raise. i should point out that barclays

has their interpretation of the jobs report pair of their rate hike cycle from three to two because of the weakness in the services jobs, which did not match up with the rest of the data. everyone wants to look at more data before the draw any conclusions for anything could the sense here is that the labor toket is strong enough sustain the games we have seen. if you come inside the bloomberg terminal, you can see what set fund futures are calculating in terms of a rate increase. it is back to 55% for december. if you go for instance to yesterday before the jobs report, that number was 46%. alix: adjusting. coming up in the next hour of "bloomberg markets," we will talk to armored wolf ceo. ♪

alix: it is 1:00 p.m. in new york, 6:00 p.m. in london, 2:00 a.m. in hong kong. scarlet: welcome to "bloomberg markets."

scarlet: from bloomberg world headquarters, good friday afternoon. i am scarlet fu. alix: i am alix steelalix:. he was what we are watching this hour. president obama: the progress we have made is a testament to american workers, american businesses, the american people being resilient and sticking to it. president obama celebrating the latest jobs report, saying americans are working and that means the economy is in good shape. remain: the economy may strong but there is weakness in other parts of the economy. alix: super bowl 50 is sunday. what do companies get for the millions of dollars spent on ads?ads -- 30-second scarlet: julie hyman is tracking

the followed from the jobs report. good jobs report, that is for stocks? julie: this is from the economic playbook is that it is bad for stocks because rates are going up. it has been an interesting next we have seen today. the nasdaq has been leading the declines, down 2.5%, and that is because of the clients we are seeing in technology. take a look at bloomberg. 2.74% is the drop we are seeing in the information technology next, closely followed by consumer discretionary's. energy is also down sharply. check, which is also, incidentally, the largest part of the s&p 500, is the group that is weighing on it the most today. alix: is it an earnings story or something different? julie: it seems to be a reprise of the story we have been telling so frequently this year. large-cap tech has been honorable this year.

-- vulnerable this year. these are some of the best performers this year and they are also stocks seen as vulnerable if there's any kind of economic weakness, or if, for example, the federal reserve raises rates too soon. facebook, amazon, microsoft. in the case of facebook and amazon, you are talking about stocks near highs. something to consider as well. then you have the linkedin affect separately. linked in coming out with earnings yesterday causing the shares to tumble by the most ever, down 41.5%, after coming out with a sales forecast that is short of what analysts had been anticipating. the company is trying to divers of the -- diversify but it seems like that is not bearing fruit. the interesting thing is from even as he see this broad selloff in technology, and the volume and technology is not seeing any kind of significant gain. the game and technology

volume over the past 20 day average. up about 4.7%. overall, we are seeing volume higher today than the recent average daily volume. it is interesting that even know there is the selling pressure in h, it is not at this torrid pace. alix: thank you so much, julie hyman. scarlet: mark crumpton has first word news from our news desk. event you saw live on bloomberg television, president obama's the falling unemployment rate is translating into bigger paychecks for working americans. the president met with reporters to discuss the january employment report and praise to the nation's sub-5% jobless rate. president obama: the unemployment rate has fallen to 4.9%, even as more veterans during the job market last month. this is the first time the unemployment rate has dipped below 5% in almost eight years. mark: the president also said

falling deficits and gas prices are adding to economic optimism, and that the united states has the most durable economy. the flint, michigan water contamination crisis will be the subject of a congressional hearing in march. the house energy and commerce committee will hear testimony on the matter with the panel's ranking members say is "unacceptable at all levels." flint's water supply was switched to the flint river in 2014 but it wasn't properly treated, resulting in dangerously high levels of lead. brazil is sending a set of samples related to the zika outbreak to the united states. international officials were frustrated after brazil's refusal to share viral samples. two thirds of the material gathered by fieldwork by an american team would be shifted to the centers for disease control and prevention. as we get closer to sunday's super bowl, some area residents are being -- feeling betrayed. the game will be played 40 miles south in santa clara.

the event will still cost san francisco an estimated $5 million. residents complain that while it is a boon to businesses, cost for security, cleanup, and more will come out of taxpayers pockets. while the game is sure to be america's most-watched tv show of the year, ratings are dwarfed by the world cup, seen last time by about one billion people around the world. news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. back to you. to the monthly jobs report from which show the unemployment rate dropping to an almost eight-year low of 4.9%. alix: uncertainty over the fence next week i still remains as global economic appears to be johnng it let's bring in byrne jolson, ceo of -- john in yeltsin, ceo of

armored wolf. john: the headline number is clearly not blockbuster. we had a revision down in december. 121 is not a sign of strength. we also had week factory orders and other statistics published in january prior to this report coming out that didn't speak to strength in the u.s.. the u.s. probably is one of the strongest economies in the world . it is my guess, the healthiest horse in the slaughterhouse. alix: oh, wow. scarlet: to what extent was the january jobs report an extension of this idea that there is a diverted in the global economy? you have made that point before, especially after the latest jobs report in december. julie: globally, -- john: globally, the stories the

slowdown in china and relative china, it is strong. the other is the stress in middle east and brazil and africa. those points of view, the u.s. is the strongest economy, recession --er a avert a recession, but the markets have already essentially eliminated the idea of a fed hike in 2016. it is possible that the next ane on the fed side would be ease. alix: we have been hearing that an ease needs to happen. he said he would be returning armored wolf's capital. we have had huge volatility and slide into negative rates and a complete slide in oil. how does that wind up changing your investment strategy? julie john: a lot of these things come

i somewhat anticipated some stress. the drop in oil is dramatic. it seems like those conditions are in place. while a long-term outlook for 35, certainly i can envision , $45, 55, 60 five dollars per barrel of oil, inventories are building, production is continuing, and demand is not growing. think, are seeing is, i are being put in place for a washout of oil down to $15 a barrel. scarlet: how about your perspective on your time horizon . are you able to take a long-term view in a way you weren't able to perfor -- able to before? i'm not involve myself in a day-to-day trading and portfolio management although i work with my co-portfolio manager on the return fund, fund we launched four years ago that

has a great track record. -- make the call of $15 oil. would you want to be shorting? that is one of the bearish calls i've heard on that commodity. john: the dynamics for oil has been one way since about december 2014. in place -- for were in place. we did not aggressively position for that although we were somewhat position for that, and we continue to be somewhat short oil at this juncture. scarlet: somewhat short oil at this juncture. in terms of the momentum plays -- for instance, the tech company, we heard from linkedin and that disappoint now look where the stock is down 40% today. you have talked about the tech front and how the nasdaq does a poor job of capturing the accelerating nature of innovation. because you are a family office

now, are you looking to invest in cap companies in a different -- tech companies in a different way, given the scrutiny from outside investors and regulators? john: yeah, that is a very exciting area. i probably not the first call by small companies looking to raise capital, but i'm certainly keeping my finger on that pulse and looking at some opportunities. but absolutely, as peter t hiel told me personally four or five years ago, investing in the nasdaq is investing in stagnation. it is investing in the companies that innovated 10 or 15 years ago and have established revenue bases on the back of established technology. it is kind of the opposite of innovation. the innovative companies are the ones who are developing new technologies today and i also had the privilege of hearing my brother speak on this topic a number of times and i read his books and papers and i converse

with him almost daily. his case for an accelerating innovation cycle is very, very compelling. things are changing almost hour by hour in terms of how we use our technology. he ist: and of course referring to the second machine age. alix: try this all together for a straight you seem much more pessimistic on the u.s. you are pessimistic on oil. you have a different view on how tech stocks should work. how do you invest? john: just to paint the big picture here, the financial crisis was obviously devastating and totally transformed in terms of thinking or highlighting some major problems with the way we were doing things. there has been some attempt to address the global financial crisis. the hangover from the global financial crisis is not 100% do to just those traditional factors. there is also some credible

transfer mission of how we work and what we do with our time and how factories are doing things. the internet is not just laptops pcs. dell is obviously history. now we're looking at the internet of things. scarlet: all right -- alix: all right, thank you -- [laughter] scarlet: thank you so much for joining us from irvine, california. alix: parts of the u.s. economy are struggling despite the strong jobs report. is the session approach -- is recession approaching? scarlet: despite oil inventories at record levels, producers are continuing to pump. alix: china is preparing for the lunar new year but there was one more challenge based in the country's economy before celebrations begin. ♪

alix: welcome back to "bloomberg markets." i am alix steel. scarlet: i'm scarlet fu. alix: time for the biggest business stories in the news right now. scarlet: the company founded by actress jessica alba is working with banks for an ipo. --felt natural baby products it's also natural baby products. it is valued at $1.7 billion. alix: bilberry is cutting the number of its annual fashion shows and half, breaking tradition in the industry. make items on the catwalk available immediately. this shows will be directed at the customer. homes are morer

expensive but financing does not cost as much. fha loans became cheaper when insurance premiums were cut last year. fha insures mortgages used uptly by first-time buyers, from 17% a year ago. and that is your business flash update. alix: let's go to our markets desk where julie hyman has a check on the company members. julie: i will start with oil and moved to come these related -- as you pointed out, it is time for the rig count numbers to come out. we saw a drop of 31 rigs. you can see the gradual work down in the rigs in the united states. this drop of 3100% basis is the biggest -- 31 on a percentage basis is the history of seeing since 2010. -- biggest we have seen since 2010. has it helped oil prices? to some degree.

we have seen a bounce in oil prices but they have turned negative, interestingly enough. this worked out of the rigs is not enough to help the oil prices were significantly. we're seeing again in energy-related shares today. as we have been watching in recent days, some of these stocks with the highest short interest in the s&p have seeing pops. they happen to be energy companies as well. consol energy is saying that have wasted 284% -- replaced 284% of production. we are seeing natural gas prices, despite oil not doing well, natural gas prices rising today. that is helping the natural gas-focused producers as well. one that is commodity-related this tyson foods. the chicken producer is coming out with earnings that beat

estimates in part because of lower feed costs. alix: thanks so much, julie. thelet: other parts of economy are still slowing, creating a delicate task for the fed as they contemplate another rate increase. alix: earlier citigroup's chief economist sat down with the "bloomberg surveillance" team. >> there is a problem that even to the extent productivity and real income is growing, it is killing overwhelmingly to those -- it is going overwhelmingly to the those of the top and. middle america is not materially better off. caroline, jump in with professor buiter. we were looking at the isn and manufacturing data and the employment parts to those data points, not looking pretty. are we about to turn into perhaps not such a strong labor market when it comes to the

u.s.? , we will secret employment and labor market are lagging indicators. only once of recent indicators that have looked good for the u.s. in a way that is a concern if 's, other indicators, pmi durables, etc., are more forward-looking indicators. there is risk for the u.s. economy softening. i don't hear the word "recession" quite a bit yet for the u.s., but there is a risk of a slowdown underway. it is not just urban my external demands. --t is not just urban not just driven by external demands. excessive corporate leverage and. tom: i want to go back to caroline hyde but can you reaffirm the likelihood of the

global recession? can i get a head on that? willem: global recession -- global growth recession. 2% -- tom: which is -- willem: we are close to that. the last quarter of 2015, if you correct the chinese data for the obvious fudge factors in there, you get about 2% global growth. capacity.s well below i think that is as close to recession as you can get. caroline: we have seen weakness this week, down 2.5%. how much will that be a bit of a relief coming to the fed right now? how much do they want the market to target down on the u.s. dollar or one to stick by hikes for the rest of the year or will they change the talk? willem: i'm sure they will change the talk and i'm sure they're slightly regretful of

having talks past december. four heights completely off the table. i wouldn't say we are seeing the cyclical high and cycle, but the weakness that is already discernible, relative to what was expected evenly last year, means the that is worrying about -- the fed is worrying about development and external drugs on growth. you will be -- they will be sitting on their hands and doing it very well for the seeable future. b==let: that was willing willem buiter on "bloomberg surveillance." alix: we will look at why there are few halts on global oil output.

alix: citadel securities is

buying the kcet business. >> i think the markets have become much more automated over the last 10 years, and so the firm that is going to do best as a designated market maker is one that is really good and maybe investments in technology to be able to do automated trading. we are going to give the humans on the floor the tools they need to trade stocks better and make better markets for listed companies. your reaction to the news that the chicago stock exchange has a chinese investor group agreeing to acquire it now? what does it mean that the chinese are moving into the exchange business? >> we are watching it with great interest. recent and fresh moves that came out this morning. wehaps stating the obvious, care deeply about the u.s. equity markets but we also care deeply about china.

was iny, alibaba -- i china the latter half of last year. it is something we will watch on for very closely but given how fresh it is -- vonnie: have you had approaches yourself? >> i won't comment on conversations -- vonnie? -- vonnie: would you be interested? >> what you mean by approaches? vonnie: approaches from chinese investors. soliciting capital or soliciting much of anything in that regard. >> let me ask a question about the market-making activities. we talk a little bit about volatility. as we have seen the evolution in and is, how if you positioned yourself to be better without that volatility should interrupt again? it starts with the designated market maker value. the designated market makers are unique. ony're obligated to offer

the socket change at all times and that results in a tighter also, theypread but are obligated to open and close spots every day. about 6% of all volume in this country have is on the open and the close and at the new york stock exchange, it is not just overseen by machines. it is overseen by humans and machines. the data shows that because of that model we have less volatility in the new york stock exchange. it is a reason we have had 14 of the 15 largest ipo's over the last two years and we're feel that citadel security is coming in. it is my believe they will be terrific at it. ♪

alix: from bloomberg world headquarters in new york, welcome back to "bloomberg markets." i am alix steel. scarlet: i am scarlet fu.

let's start with the headlines. mark crumpton has more. mark: president obama says the before .9% unemployment rate is prove his economic policies have succeeded. he met with reporters to discuss january job numbers and says that improving conditions mean bigger paychecks for working americans. president obama: this progress is starting to translate into bigger paychecks. wages have grown at the fastest rate since the crisis, and policies i will push this year are designed to give workers even more leverage to earn raises and promotions. mark: the monthly jobs report released today show employers added 151,000 jobs in january. the 4.9% on implement rate is the lowest in nearly eight years. scientists may be learning more about how the zeke a virus -- zika viruses transmitted. researchers have found the presence of active zika virus in

urine and saliva samples. brazilian researchers suspect there is a link between the virus and a rare birth defect. u.n. human rights panel has come out in favor of wikileaks founder julian assange. the panel ruled yet been the u.k.ly detained by and sweden since 2010 and should therefore be free. assange had this to say this morning. julian assange: we have been detained in this country, the united kingdom, for 5.5 years. today that detention without charge has been found by the highest organization in the united nations to be unlawful. been holed uphas it at ecowas embassy in london since 2012. if british police arrest in, he would be extradited to sweden and could end up in the united states and be questioned about

leaks classified documents. today saidm syria that government should are close to a victory that could tip the civil war in their favor. president bashar al-assad's forces have surrounded the largest city, aleppo. refugees are fleeing into turkey. the new york fire department says one person is dead and three others hurt following a crane collapse in lower manhattan. the accident occurred in the tribeca neighborhood. the crane landed across several parked cars, smashing groups. it landed across an intersection and stretched much of a block. news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. back to you. alix: after a year of lower oil prices, global producers are still pumping. scarlet: let's find out from the research director at will and

can see. alix: you had a report saying one .1% of global production has been curtailed despite the fact that 3 million barrels a day on profitable. how is that possible? >> you are right, it is not just us which you can flip. there are various to access -- there are barriers to access. , that costoductivity can stretch into the tens of thousands of dollars, but when you talk about a platform in the north sea, it could be hundreds of millions of dollars. it is a sentiment that has to change. prices would be about $10 better in the latter half of the year, you have a positive outlook. you don't really begin abandoning wells until you have low prices and you believe it will be low and lose money for a long time. scarlet: the cost of halting production is high but what are the advantages of continuing to pump? r.t.: well, it is a simple

equation. production times christ is the top line and all you can control is the production. it is hard to go to a cfl and say not only do i want to shut off production, i also want to increase costs while revenue is at an all-time low. alix: digging deeper, it seems like there are, in my mind, three things that have contributed to this. they can spend much less to produce oil. 2, they hedged a lot so they have to keep production going even if they don't want to. three, they drilled a lot of wealth and didn't complete them. they have these extra wells they can tap when they see oil prices rise. what of those three aspects do you see being more significant? r.t.: in terms of production resilience, the drills on uncompleted wells give you a couple hundred thousand barrels a day of support this year. the reality is we are coming up pretty hard. it is often overlooked. we underestimated u.s. supply

growth during the boom and we are probably underestimating its actual fall right now. we are up half a million barrels a day already. masked by gulf of mexico numbers to some extent. but we are coming down. we were peter trop by the end of the year in terms of our analysis by one million barrels a day. we think that is significant. that is what brings global supply roughly flat. it goes back to one of your prior segments, what really happens to the economy on a demand-side. we are expecting strong demand but can that be hit by economic weakness? alix: you see she'll production rolling over. is there a tipping point in prices? r.t.: i mean, you are right, we are right at a tipping point in our estimates. it is not really tight oil and the shale plays committees those stripper wells that you talked about previously. kind of in the middle of the

cost curve -- you are kind of in the middle of the cost curve. about $30 for a full year. the reality, though, for all the reasons i mentioned before, the number is probably much smaller, something like 100,000 to 200,000 barrels a day at risk. alix: we had a chart of that shows the cash cost for oil production. there is a significant amount of oil production that is profitable under $35 a barrel. only a little bit of oil production as that higher -- scarlet: but $70 barrel seems like a far, far cry. my question to you is is it better for the producers if oil gets to $15, $10, and then goes back up, or is it better for oil to bounce around these $30 levels for a long time? r.t.: you know, i think it would be hard to come up with a scenario where $15 oil is good

for producers. in reality, they are not going to thrive at $30 oil soaked $15 oil would make it worse. we are oversupplied in the first half of the year, in our view. the reality of the oversupplied market is prices could get there. we think they would get there for a very short time. in our view, producers need -- at $40 they start to look back up again. at $50 they probably have decent businesses again. and that is a far cry from the 70 dollars from $80 people talked about two years ago. the industry as a whole will come out a little bit and -- a lot leaner, a little meaner through this downturn. alix: thanks so much for your perspective. the backdrop for weak commodity prices is slowing chinese economy. chinese markets will close for one week as the nation's oldest the lunar new year. to come the last data

up before everyone goes on vacation is foreign reserves. they are at a three-year flow and are poised to express another job. nicholas consonery joins us from washington with more could we get to see the cost of china supporting its currency this weekend. but the intervention china has done in the currency market in context for us. china devalued in august and is burning through reserves to keep its currency from weakening further. what is the endgame here? >> i think there is a major question in the market about where this is headed. the data release we will get on sunday is hugely important because it is a big indication of how much beijing is intervening and we are getting questions from our clients about whether the government might have to allow much bigger depreciation, 10%, 15%. some people are talking about even more. i think that is unlikely. i think we see 5-8 percent or so this year. the downside risks are increasing. alix: in terms of reserves and

what to expect, barclays is super pessimistic. what part of that actually might be good? like, some capital outflows that toe sense or perhaps due currency depreciation are not necessarily selling down the base? nicholas: there is no question that a lot of chinese copies are imaging foreign-exchange exposure. i don't think this is about capital flight. this is a major, major risk for the market. it is hard to find the upside here. i think the potential for much more significant renminbi weakness has reverberated across the floor next change markets, certainly be asia ones. i think this is a major market risk for 2016. scarlet: your expertise life not just in the economic outlook for china but reading the tea leaves politically. how much dude domestic politics -- how much do to mr. politics affect strategy? nicholas: it is completely driven lyrically. i will say there has been a

political decision to allow the currency to be a little more responsive to the market, and what the market is looking for is are they going to follow through with that commitment? they want to have the free float by 2020. they can get there but by 2016 this is a story about active intervention, potentially the imposition of capital control, and certainly some depreciation. that is the big story. to what extent are the communication mishaps the result of a tug-of-war between the leading chinese politicians? nicholas: yeah, this is a very interesting story right now and it is one where we see some questions in the market about the credibility of the leadership. my sense is that even in china there is a conversation about do they have an effective regulatory apparatus, and effective and sufficient understanding of what is going on in the global marketplace to manage this? this a big, big problem for them. we're talking about regulatory reform in the financial space. there is potential turnover at the state council to print the

leading economic policy maker and put him in charge of these decisions. there is a lot going on politically. scarlet: very quickly, do you expect any kind of decision over chinese new year to come out from the government? toholas: we might see some got interest-rate but i think it is unlikely. in the past we have seen so moves around the holidays because it allows them to have time for the market to respond without being open in china. but i think it is unlikely. scarlet: nicholas cuts and eric, thank you so much. coming up in the next 20 minutes, there is a study that says the markets will end the year up or down depending on which football division wins the super bowl. will the broncos or the panthers be better for your portfolio? scarlet: i'm impressed, you know who is playing. alix: oh, make fun. scarlet: is this a worthy investment? alix: jessica alba's startup is making plans to go public. how does it navigate the ipo market?

♪

scarlet: welcome back to "bloomberg markets." i am scarlet fu. alix: i am alix steel. let's go to the markets where julie hyman has the latest. julie: i want to look at stocks declining because of specific news not because of what is going on macro-wise. a lot of earnings we heard about. hanes brands missed estimates and a forecast that will that missed estimates. some analysts at places like oppenheimer and bain capital or recommending you buy the shares on weakness, saying it was seasonality to blame for the week results, but that is on helping shares today. another one of the big declines we seeing in the wake of

earnings reports or more accurately, the reports of the loss in the fourth quarter. it said it was going to be issuing new shares to raise cash. that typically does not help the stock. and news corp. also out with its numbers. it's probably also missing estimates as it saw advertising sales declining in part because of the effect of the stronger dollar. you see those shares down by 9%. alix: what about the decliners that don't have to do with earnings? julie: we noticed travel stocks today. if you look at priceline, expedia, trip advisor also declining. this may have to do with the spreading effectively zi -- the spreading effect of the zika virus. puerto rico declared state of emergency related to that virus. it was talked when the virus serviced that it might put a damper on travel stocks. that seems to be resistant. if you look at airlines as well we are seeing declines in that

arena. it could be tied to concerns over zika. alix: good stuff. thank you so much, julie hyman. scarlet: after a volatile january more investors are becoming gold bugs. alix: as you can see, gold is doing a lot better this year than stocks in the s&p could let's bring in the etf analyst eric balchunas. what is the best way right now? comes to gold, it is a commodity and store and have physically backed. almost all the assets prefer to be physically stored. big one, took in 2.5 million of outflows. there is the iau. that does the same thing but instead of charging 40 basis points, it charges 25. iaustores it in london, stores it in toronto, new york,

and london. and this is for the paranoid and i just the fearful, etf securities swiss gold shares. gld, except it is stored in switzerland could believe it or not, that was a billion-dollar etf idea because people concerned about that, not only that, but to be the gold bugs, they had random checks on the gold to make sure it is there. alix: there was lots of controversy a few years ago. the question, is the gold you think you own actually there? if you want to redeem in some capacity, would you be able to? scarlet: that's if you refer to, is there an cost of their because someone has to check on the gold? eric: no, it is one basis point on gld. however, concerns on gld have been proven because it's a $25 billion in outflows and there is no way all those redemptions could have been met if they were pulling some sort of scam. ways,what about other

might as that would be more risky than investing in atf. eric: there is always that debate, miners versus etf. alix: take a xanax -- eric: you have to take more than a xanax. there's triple leverage miners. predominantly, a lot of these are just and physically backed gold like gld and iau. scarlet: if you want to play the super bowl. -- i am proud of alix because she knows who is playing the super bowl. alix: yeah -- oh, come on. panthers?sus [laughter] that's a start to the super bowl. is laughable but it has been right -- the super bowl theory is laughable but it has been right. you look at something like the

panthers winning, that means the market will go up. you can do the vanguard s&p 500, great, cheap way to own the market. scarlet: what is the ticker for that one? eric: vlo. this is saying that the market will end the year down. there is a great etf for long-term shorts. -- this is literally and next hedge fund manager who shorts stocks he thinks are bad. it is up more than the market's down. he has the ability to pick shorts. the downside is when you short, you have got to burma the stock and there is the borrowing costs on top of the expense ratio. alix: great stuff. thank you so much, eric balchunas. good deal. scarlet: speaking of the super bowl, companies are paying a record $5 million for a 30-second ad. do they see any return on the

money? ♪

a large portion of america will be glued to the tv sunday to watch a super bowl 50, but as we know, it is not just for the game, it is also for the commercials. cbs has nearly sold-out it's available ad spots for the game including this one for heinz. it is up 500 thousand else from last year. scarlet: were up about $500,000. alix: it is a hot dog thing. that is funny. i was confused. scarlet: but it got you watching. here to break it down is paul sweeney. paul, cbs, which is broadcasting the super bowl, sold out all the available advertising spots. that is par for the course at this point. paul: it really is good most of

the networks hold one or two spots up until game time. this is going to be a huge moneymaker for cbs. they will do north of $350 million of ad revenue just for the game. and given the rates they have to pay for the nfl, it is a big payback for them. we will have to see. they are hoping for competitive game so that the ratings remains from throughout the game so that all the advertisers are happy. scarlet: and of course the super bowl gets a lot of draw because it is a lightbank event and people have to watch. how does that compare to the ncaa basketball championships that stretch on for a couple weeks? paul: even know it is just one game for several hours it is number one in terms of audience, the number one even in terms of total advertising revenue. even more than you would get during a seven-game world series, for example. just a huge moneymaker, the number one event. they really built a whole day around it. it will have a whole day of programming on the network where they are selling spots at higher rates than it one you really

would for a sunday afternoon. if you cap to the networks one of the real values of having the super bowl is promoting other shows on your network good you will see lots of ads by cbs about the programming, a lot of promotional value. alix: what kinds of companies will be new this year? isn't amazon doing its first super bowl ad ever? paul: it is. usually you have your big advertisers that can afford -- alix: like car companies. paul: car companies, beer company, coca-cola, pepsi. usually every year you get one or two new advertisers that are trying to break through the clutter, whether it is godaddy from several years ago or will whatever. it is usually hit or miss. they rolled the dice on a big $5 million ad buy on the super bowl. which, cbseaking of is set to win from all of this no matter who wins game itself.

management changes at cbs. sumner redstone stepping down as chairman of the board and les moonves taking over as chairman. have a newcom, you chairman of the board. paul: that's right, and shareholders applauded les moonves becoming chairman of cbs because he has gained the support of wall street because he has delivered for shareholders. a different story at viacom. the stock is underperformed and he has gotten me a lot of pushback from investors. wasn't necessarily well received when he was named chairman but it was preordained because of his agreement with viacom. the real question for viacom becomes when sumner redstone passes or becomes incapacitated, what happens to these 2 companies, cbs and viacom? we know that the trust of sumner's estate will be in control and there are some people on the trust that investors don't know what the

trust is going to do. are they really going to work for shareholders and maximizing shareholder value or something different? scarlet: do they trade at a discount because of the uncertainty? paul: no, it is possible they will be in play in some way, shape, or form. five, has underperformed and they might be employed in a consolidating business. alix: good stuff. thanks for joining us. scarlet: coming up, a rocky start for ipos in 2016. good jessica alba buck the trend? ♪ . .

york, 7:0000 in new in london, and 3:00 a.m. in hong kong. welcome to "bloomberg markets."

from bloomberg's world headquarters in new york, i am david gura. stocks sliding in the u.s. technology shares taking the brunt of the beating as stocks like amazon and netflix are getting crushed. the january jobs report is not enough to lift the market. the unemployment rate at an eight-year low. hear what bill gross has to say about the economy. jessica alba's company is working with banks towards an ipo. with the market so rocky, will it fight enough buyers? julie hyman has the latest. it looks like all the major indexes are down. julie: with all the stronger than estimated jobs report, a great number even if it was not better on the nonfarm payrolls number. we have seen stocks fall in the wake of that. we have been seeing the chances for interest rate