from bloomberg world headquarters in new york, here's what we are watching this hour. the jobs report shocks to the downside, the u.s. adding only 38,000 jobs in may. : what happened today, along with concern about brexit referendum means that a june rate hike is less likely. it is too early to rule july out. let's see what the data -- june a lot less likely today. july still on the table. shery: stocks falling today, but paring earlier losses after that weak jobs number. the dollar is plunging the most since february. what oil prices will look like

in the next three to six months from opec's new secretary-general to the potential for more supply disruptions. we will look into the major market drivers for crude. in two hours.g stocks are down. reversing those gains we saw the last couple of days. my: right now, we are paring most losses that we saw out of the payroll jobs number that we saw earlier this morning. let's take a look at the snapshot of where we stand. the nasdaq is down the most, .7%. the dow, .3% there. the s&p intraday, we can see right out of the gate after the payrolls came out way worse than expected, we saw the big drop in -- big drops plunge

and this plunge at 10:00. we are paring some of that and off the session lows, but still down about .4%. i want to show you what's been happening in terms of the sectors for the s&p in terms of volume. the falls we've been seeing throughout the day have been coming mostly from this blue bar chart. this is the financial sector. 65% in terms of the volume against the 20 day average according to the time now. specific equities in which this isbeing affected -- this what is happening. bank of america down by 3.7%. citigroup also down by just as much. wells fargo and jpmorgan also down 2%. shery: how about other asset

classes? let's take a look at what's been happening with the u.s. 10 year. this fall happening with the payroll numbers coming down 10 basis points. the yield just obsession those at 1.7%. lows atoff session 1.7%. in february --ls biggest fall since february. gold seeing its biggest gain since march. boost offrs getting a the bat payroll numbers. -- bad payroll numbers. shery: let's get a check of the first word news this afternoon.

mark: french ministers are meeting in paris. belarus activated their crisis theer as the country faces possibility of continued flooding. hasly a week of heavy rain led to serious flooding across a large portion of europe, leaving 14 people dead and many others missing. president obama is traveling to florida for the school fundraisers to help democratic candidates in the general election. -- two fundraisers. the first will raise money for the democratic senatorial campaign committee. the second is a fundraiser for the democratic national committee. slight clinton has a edge over donald trump. mrs. clinton leads mr. trump 45-42% in florida according to

mason-dixon polling and research survey. view mr. trump unfavorably. 47% said the same of mrs. clinton. tax fraud trial has concluded. star and his father face charges of failing to pay taxes on inmates rights -- image rights. 24 month sentence is possible for each. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. shery: thank you so much. investors having to reconsider a hike10 hike -- a june fed following a report showing the

u.s. edit fewest workers in four years. weighed in on the data earlier today. shock tos enough of a ay june and july, for sure. they've been trying to convince us that one or two hikes are in the cards. this certainly june thinking. along with brexit. shery: how should investors readjust their portfolios? i want to bring in kathy jones from charles schwab. great to talk to you. inthe last jobs report april, he said the market overlooked some sides of strength. kathy: this was a big disappointment.

some of the numbers were not so bad. hourly earnings held at a 2% rate. there was a lot of disappointing data in here come especially following the last couple months. i don't think we can dismiss this as a one off. second order growth is probably somewhat weaker than we had been anticipating. what does it tell you that labor force participation decline for the second straight month? kathy: that is not a good sign. ,he prime working age folks their participation rate had been picking up a bit over the past couple of months. the ratio of that group to the population was increasing nicely as well. that would be a good sign of a healthy labor market out there and then it turned back down

again. we will have to see what happens in the next month or two. it is not as good as we thought it was a month ago. shery: markets think the june rate hike is dead now. how many hikes can we expect this year? kathy: our anticipation coming into the year was one, maybe two. i think july is a possibility. are weak global growth, the fact that inflation has not hit its target since 2012. softening in manufacturing and a bit of the service sector as well. we need momentum in the economy. shery: the fact that we are seeing the labor market coming in below the average for the year at 200,000 as the average

for the past four years, what does this tell you about the jobs report? kathy: it should be declining somewhat because the labor pool should be declining somewhat. as you get into this phase of the economy, you would not expect that to hold up at that pace. 100,000-120,000 would be a great number. 30,000 is not a good number. we have dropped off pretty precipitously. it is not a demographic trend. shery: what do you expect yellen to say? kathy: this will be interesting. there's been so much chatter from the fed over the last month or so about preparing us for a rate hike. now, she will have to pull back from that. my guess is she will still be

focused on the fact that we've got slowing momentum in the economy. she will try to push expectations out to july, maybe september. shery: how do investors position their portfolios? kathy: our view has been that iset spot on the yield curve that gives you the most reward per unit of if the fedsk -- raises rates, the yield curve will flatten. investment grade looks more attractive to us than high yield. high-yield has had a good rally, but the reward for the risk does not look attractive. bloomberg will have live coverage of the federal reserve

chair janet yellen on monday. she speaks at a world affairs council of philadelphia luncheon event at 12:30 p.m. new york time. up next, more perspective on the disappointing may jobs report from jeff rosenberg of blackrock . the wage picture and what we've seen in wages for some time now is a gradual strengthening. that is telling you about the tightening of the labor markets. you can have slow down in headline payroll growth and that is not a recessionary single. ♪

shery: this is "bloomberg markets." i am shery ahn.

seekingation brands is a valuation of roughly $771 million for the initial public offering of its canadian wine business later this year. constellation is working with goldman sachs t on the offering. the company is expected to list in toronto as early as this fall. resorts international rebranding -- renovating the property to create two hotels. one will be called the park mgm 00 rooms. house 27 the other will be known as the nomad las vegas. match theer aiming to convenience of services offered

by amazon and other e-commerce companies. that is your bloomberg business flash update. did the market overreact to this morning's lackluster jobs report? decline -- one-day jeff rosenberg shared his perspective on bloomberg earlier today. can we just talked for a second on the reaction -- i characterize it as an overreaction. there's a lot of factors here. it certainly big report, but we and saytake a step back we expect payroll growth to grow.

this is a weak report, but let's not go overboard. that's payroll growth to slow. this makes june a very, very high hurdle for the fed to go. the markets are pricing that in. it will focus on us on the next report. jon: monday, janet yellen has a speech to make. how does she communicate on monday? jeff: on the longer run trajectory of the improvements in the labor market. not one data point on friday. which includes the fact that the pace of improvement cannot continue, not because of the demand side. this is a recessionary signal

because we are not creating as many jobs, but there's two sides. one is supplied, the other is demand. we are seeing constraints on the supply side. she can emphasize that. the other thing that is missing here, we are seeing wage growth. strengthening the in the wage picture. is thet important one atlanta fed wage tracker, the best indicator for tracking wages. piecesl highlight those to make the case of an eventual but gradual increase in normalization. n: it is a global story, but a u.s. domestic story as well. you get a data point like this that pushes us all back again -- are we going to continue to be

with sword -- with sword -- whip sword? jeff: it's about the global story in terms of low interest rates. with the ecb and mario draghi and expectations around qe come on the long end of global interest rate yield curves, there is further pressure downward. perspective to the long-term yields in the u.s., it is a global story because the high-yielding instruments, these yields look very low, but on a global effective, they are very high. that draws investments into the back end of the liquor for investors looking for places where they can get away from negative interest rate. irrespective of the u.s. economic outlook and the speech that janet yellen may

you havet give them a this backdrop that in the rest of the world, we are not having this debate over normalization. we are having a different debate. how much do you think you can isolate what is going on here from what is happening in the rest of the world? that is a path we are on. jeff: absolutely. you cannot isolate it. we focus on one thing at one time. this morning, it's about the u.s. and the front of the yield curve. slows theial that pace of normalization, that helps the rest of the yield curve. yesterday was about the global factors. shery: jeff rosenberg from blackrock on "bloomberg ." dividend strength -- utilities inversely

proportional to what happens when interest rates fall. the utility look at index come up at session highs come up by nearly 2%. -- utility index, up at session highs, up by nearly 2%. let's take a look at the specific stocks. not only that, not only utilities, but a couple other

stock groups are also rising come in particular tobacco groups. all tree is up 1.5%. --llip morris up the most real estate stocks seeing a bump today. the most in a month or all of these. -- for all of these. shery: still ahead on "bloomberg markets," remaking the motor city. we take you to detroit to find out how general motors has helped bring racing back to motown. ♪

shery: this is "bloomberg markets." i am shery ahn.

it's only natural to have auto racing in the trek, but after the recession in 2008, the city suffered and its grand prix was put on hiatus. general motors worked hard to return racing to his hometown, culminating in the 2012 return prix. belle isle grand the 2016 edition gets underway chiefgm's global product -- >> this is incredibly important in the history of detroit. e who the point where anyon wanted recreation would come. it was neglected over the last couple of decades. the city did not have a lot of money to put back into it. four years ago, roger penske and penned in down and

indycar deal. we are not bringing chevy racing back into auto ca without the grand prix in detroit. event with two day live coverage from detroit. all the proceeds brought into weekend goand the back into redoing each historic building on belle isle and. -- bell island. yearyou can see it every becomes a better place to come. it is a wonderful thing for detroit. there will be a couple hundred thousand people coming in and out this weekend.

we bring most of the detroit public school children onto the island for the weekend. the gm executive by president speaking to david westin. future, wethe examine how the ceo is changing their corporate culture. the cleveland cavaliers are currently playing against the golden state warriors in the nba finals. -- we willy owner i get you more on that as "bloomberg markets" returns. ♪

shery: from bloomberg world headquarters in new york, this is "bloomberg markets." .'m shery ahn

clinton continues her campaign swing through california ahead of next week's primary. her appearances come a day after she delivered a blistering critique of donald trump lack of foreign policy experience. california is one of six days holding primaries on june 7. judge,trump blames a saying he has an absolute because he is of mexican heritage. the search continues along the fort hood texas creek for four soldiers who went missing after their truck overturned thursday in swift floodwaters. five soldiers were killed and three others injured.

overturned truck during a training exercise. flooding is also a problem in paris where at least 20,000 people are without power. the city seeing its worst flooding in more than 30 years. museum closed its doors today the high waters also disrupting travel on roads and some train lines. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton. shery: thank you so much. commodity markets closing in new york. let's take a look at today's biggest movers. gold shooting straight up after that disappointing jobs data earlier today. investors flocking to the safe haven as prices saw the biggest gains since mid-march. weather,orries of what

concerns erupted this week after the european union's top two week producing countries produced torrential rain. crude currently down almost $48.69 ading at barrel. members rejected a proposal to adopt a new adduction ceiling thursday -- new production ceiling thursday. for more perspective come i'm joined by bruno stanziale. thank you for coming in. the new secretary of opec saying that we will see some equilibrium in the oil markets. bruno: we definitely agree. rebalancing will not

start until the fourth quarter of this year. processhat rebalancing beginning. averaget prices to $47.50 for the remaining portion of 2016. a lot of this data is fluid. uptaicke saw oil rigs by nine. it is a fluid process. we are always monitoring the data. we do start to see the beginnings of a rebalancing in the market. what do you think of opec being able to appoint a new secretary-general? bruno: everyone wanted to look at that as a sign of success. more cooperation than we saw at doha. the one thing that came out of

that meeting that gave me a bit of pause, concern was the tone change in the saudi's. saudi arabia has always taken this staunch stance that they are the lowest cost producer and they will not see market share anymore, they will not allow people to have them take the burden of cuts down the road. little toochanged a abruptly and they got a little too conciliatory. the fiscal situation may not be as strong as they once thought. nothing came out of the meeting other than the appointment. you are setting a predicate for further cooperation. they started to use words like control the market a bit more. we are not going to flood the market. that is a change in their tone towards their relationship with

opec. is based upon it a softening in their geopolitical views. particularly their proxy war with iran. it had to do more with the fiscal situation of the country come which could have ramifications. there is a higher probability saudi arabia could actually initiate talks for cuts. shery: we just heard from the that opec has no meeting without country quotas. how likely is that? bruno: a fair point, very accurate. at the end of the day, even if to get back some of and you don't have a for mechanism to make up for that increase -- a firm mechanism to make up for that

increase, it is frivolous. it is difficult to have opec come to a meaningful agreement if you do not have volumetric leak -- volumetric leak significant non-opec members involved. shery: we saw the dollar plunging after that jobs data. how is the movement in the dollar -- where do they see the dollar going forward? gyrations and correlations could be all over the place, but over the term, i think a strong dollar will ultimately continue to wear on coittee prices. that commodity prices. more secular strengthen the dollar based on the fact that the shale phenomenon in the u.s. is enabling the u.s. to grow with less account deficits. the fact that we are importing ass oil is really making

difference in the availability of u.s. dollars outside u.s. which can serve as an ultimate headwind for all commodities going forward. shery: how is the behavior changing now? bruno: a great time to ask that question. we got data that u.s. producers added nine oil rigs to the fields. we spend time between 45 and 50 and boom, nine rigs appear in the field again. producers were making serious ground in becoming profitable at $50, particularly the volumetrically significant producers. they tend to concentrate on basins where they have real field proficiency. we will see if there is followthrough next week. right now, producers are ir businessg the

models to be profitable at $50. shery: what are the major drivers going forward? bruno: nigeria is going to be a very big story. avengerlem with the faction in the southeast is a real challenge. , butare smaller in number very sophisticated and they seem to be very diehard. they are calling for complete independence. they are sticking to their word. every time they threaten an attack, they do it. we will see how that develops. it will be a difficult situation for the government to get its arms around militarily. after nigeria, keep an eye on venezuela making sure they can pay their operators in maintaining production. shery: coming up in the next 20 minutes, we are looking at

donald trump. he is calling the main jobs report terrible and accuses hillary clinton not making things up international security speech yesterday. trump's tough talk drive away voters he needs in november? mayican airlines says they remove wi-fi equipment from their planes. american airlines plunging more than 2.5%. "bloomberg markets" is back in two minutes. ♪

davidshery: this is "bloomberg today's disappointing

jobs report got the attention of many around the globe, including investors and even donald trump. the presumptive republican presidential nominee tweeted after the data was released saying terrible jobs report just reported come only 38,000 jobs added. john heilemann joins me now. who has he met with so far? wynn brokered a meeting between donald trump and karl rove. it's you figure in george w. bush's election and reelection campaigns. he's been critical of trump in the past.

he has not been in a big -- been a big fan of trump in the past. he's been trying to get people at least neutral if not on his side. mr. rove has a long-standing relationship with egg donors. how important is his support? donors. how important is his support? john: he is tightly bound up in the donor community. people writing checks make decisions on the basis of what they think. the question is whether trump will be able to persuade them to put money into trump's coffers. shery: paul ryan held out for a long time.

20 plus days. he is finally saying he will vote for trump. does that make other republicans fall in line with trump? john: most have already fallen in line with trump. andendorsement was tepid not really full throated or particularly enthusiastic. you have to see the video to get a sense of how tepid it was it was a bit of a hostage video situation. criticizing trump the day after he endorsed him. is he will hold his nose and vote for trump. fromll not hold back criticizing trump when he thinks he has the wrong end -- shery: the tuesday primary in

california -- are there more challenges ahead for clinton? john: the polling suggests that race is a tops up -- a tossup. after next tuesday, she will probably have gained the magic number of delegates she needs to be considered the democratic present of nominee. if bernie sanders were to win there, it would embolden sanders to continue fighting on after the primaries stop all the way to the convention. clinton is spending a bunch of time out there. they would like to win that state. to strengthen the case that sanders should give up. shery: we have some breaking news out of the sports world. a minority stake in the cleveland cavaliers is going up for sale. the cats are currently playing against the golden state warriors -- cavs.

>> he used to own the team outright. he sold the franchise to dan gilbert. shery: what do we know about his background? >>+++ that size often does not come onto the market.

this is lebron's team. a high-profile international deal. we don't know who is lined up. the price is one herzig $2 million. that's $160 million. shery: how will that affect the team? shery: they don't care -- >> they don't care. there's no governance and you get no control. when the valuations of these clubs were much lower, it makes sense to make million-dollar investments -- you are talking one herzig $2 million except --t's $160 million except you are talking $150 million for nothing. sponsorship goes up, season-ticket renewals go up, prices go up, you state at the max with national appearances. winning makes the team more valuable to advertisers. shery: thank you so much. up on "bloomberg markets splittingn airlines the order for on-air wi-fi.

♪

shery: this is "bloomberg markets." let's head to the markets desk where we are looking at stocks moving after some analyst action. my: dear is getting a little bump now because goldman sachs raising their call to a buy from neutral. that analyst at goldman sachs demand for feed and exports mean crops could outstrip supply in the 2017-2018 years. also getting a rise this morning at morgan stanley is union pacific.

up to percent. -- up 2%. union pacific getting a raise to overweight. ,f cole rallies into next year union pacific would be the biggest beneficiary. , let's head over to solar stocks, losing a bit of their shine because of a .owngrade at roth capital ja solar down 6%. getting a downgrade to neutral from a buy. down. in china slows it's especially challenged given its high exposure to china. trina solar also at its lowest in eight months. firm also falling by

5%. pulling up from its session lows. where bush saying the first quarter results are likely to be soft. actuallyday discounts don't come to fruition. people are not buying mattresses. american airlines delivers a big blow to wi-fi provider gogo saying we will use sometitor viastat on planes come including its fleet of 100 boeing 737 planes. shares of gogo tumbling the most in three months. cory johnson joins us from san francisco. you spoke with the viastat ceo. what did he have to say about this deal? cory: it is a huge deal for viastat.

also a huge deal for gogo because they are losing their business with american airlines. they could be pulled from a number of american airlines planes. the contract was split. american airlines is about to bring a lot of new planes onto the market. the announced the wi-fi contract would be split. all new planes would get viastat wi-fi service. from arvice coming satellite, delivering a lot of bandwidth to every seat. unlike terrestrial service offered by gogo. most of their flights are powered by data that comes from the earth instead of from the satellite. the user experience has been painful for gogo users, so american deciding to go a new

direction for their new planes. ceo of viastat had to say. an important step in terms of how wi-fi will be presented in the air for the industry. american has made a statement that they want to improve and have the best wi-fi in the sky. this is a good step towards that. won based on has that experience and breath of bandwidth. shery: gogo plunging today. the most in more than three months. such a huge decline -- is it justified here? be atpart of my job is to large. i'm spending so much time in airplanes trying to access wi-fi

planes is on the newer -- viastat is on the newer planes. the experience is dramatically different. if they cannot land more deals, they cannot land a lot more deals, they cannot expand their footprint with customers, their stock needs expensive growth -- expansive growth. gogo may have trouble that goes beyond american airlines. investors are recalibrating the notion of optimism. shery: how competitive is this market getting? cory: there are not a lot of new entrants.

it requires a lot of planning and very expensive satellite launching. they're looking at another launch for the end of this year because they know they will have to expand their service beyond airplanes come also thinking .bout rural customers a lot of planning come a lot of dollars. shery: you can see more on onstat's battle with gogo "bloomberg west." in the next hour of "bloomberg rosenberg gives his take on the jobs report. his agent rate hike completely off the table or will the fed june -- is ae's a june rate hike completely off the table or will the fed surprise? ♪

shery: welcome to "bloomberg markets."

from bloomberg world headquarters, good evening -- afternoon. betty: one hour less in the trading day. stocks are placed to end lower after u.s. players added the fewest jobs in almost six years in may. that bolster the case for the fed to leave interest rates lower for longer. traders rethink the fed's next move. betty: the retailers making big changes to take -- stay competitive. we are one hour from the close of trading. happy friday.