♪ vonnie: from washington to tokyo. out of the u.k. and italy in the next hour. the u.s. added 151,000 jobs in august, less than the forecast but still hiring -- is it enough -- mark: in a wide-ranging and exclusive interview, bloomberg sits down with russian president vladimir putin. we will hear from him on whether he thinks the euro can't survive in the wake of the brexit vote. how government officials -- efforts to overhaul the country's banks will be successful.

we will see what the foreign prime minister says this hour. data, capitalic gets and durable goods ordered, durable goods on the mark, 4.4%, -- we should see boeing orders dropping off in the next few months and that will impact the total number of transportation orders. capital goods orders, nondefense teixeira 1.5%, a little lower than last month's 1.6%. 30 minutes into the trading day, let's go to the market desk work abigail doolittle has the latest. stocks trading higher, three major averages all up quite nicely. after the nonfarm a payroll came in -- non--- the three major averages on pace for weekly

increases. perhaps investors with stocks think the fed is less likely to raise rates anytime soon. helping shares traded higher. we see what this might look like for stocks, the s&p intraday futures, there is the massive spike around the time of the payroll report, perhaps investors think the fed will be a little bit slower around its policy decisions to raise rates. this is reflected with the oil newmontls, shares of mining and marathon oil trading higher. this is oil and gold up more than 2%. we look at the 10 year yield, a roller coaster today. around the time of the report, the yield spike down, supporting the other asset classes with the idea the fed may be on hold but a recovery. ato the bloomberg, we look

this, a monthly chart of the 10 year yield over the past three years. august was the worst month for bonds, 10 year bonds in about one year, this rain suggest we could see the yield climbed areer, price and yield inverse, suggesting september, october on could be bad for treasuries. perhaps the fed rate hike timing has not been put off by this jobs report but time will tell. we will know in september. mark: we are literally 90 minutes away from the end of the friday session. every single industry group rising today. part by the small jobs report, up a third of 1%. since1.4%, highest level may, we are rising for the second consecutive week, led by basic resources and utilities.

that's get to individual movers, europe's busy -- biggest hotel operator will probably not meet the 2016 forecast given currency industry backdrop. current industry backdrop. ayman foster, the u.k. energy services company, raised by bank of america merrill lynch, a price target increase of 60% to 925, raised earnings estimates, next year, the year after, new -- i cannot say it, a new strategy, shares up 5.9%. u.k. construction, the beat

, it is still.2 negative but an increase from 45.9, above economist estimates. that was the biggest monthly 2013,ince november throwing yesterday's pmi manufacturing number, it highlights the resilience of the u.k. economy post-brexit. let's check in on the news. vladimir putin says the hacking of democratic national committee e-mails and documents was a public service. was moscow responsible, he spoke with a bloomberg in an exclusive interview. i do not know anything about that. you know how many hackers there are today. they act so delicately and precisely that they can leave their mark at the necessary time

in place, even camouflage. it is a difficult thing to check. we do not do this at the state level. all dayinto bloomberg for more of the exclusive interview with russian president vladimir putin and do not miss our special report on monday at noon eastern. the first hurricane to strike florida has -- since 2005 has weakened to a tropical storm she came on short today bringing high winds, heavy rains, massive thousands ofs of people in georgia are without power and the storm is expected to move into the carolinas tonight. president obama has one more item he could achieve on his wish list for china, he would like to get their president to join them in ratifying an international agreement on climate change.

china and the u.s. account for 38% of global emissions, the president meets with the president after meeting for the g-20 summit, chinese hackers targeting hong kong government agencies. according to a u.s. cyber security firm. on at least three occasions come hackers sent e-mails with malicious links and attachments containing malware, hong kong's government says it is taking steps to block the hackers. global news 24 hours a day powered by more than 20 600 journalists and analysts in more than 120 countries. this is bloomberg. returning to the u.s. labor report that shows companies cap adding jobs in august, not as many as expected. you can see payrolls climbed by 151,000 last month following an upwardly revised gain of 275,000 in july.

the jobless rate held steady at 4.9%, we were looking for a 10th of a percent off. what does this mean for the fed decision. -- lineup of guests wait in in. in your >> -- weighed >> wages were up a bunt last month, not as much of this month, we would like to see more nominal wage growth will we are seeing real wage gains for american workers. >> the work week fell a little bit, do the math, more important than the headlines, number of adders. >> i would caution, be careful, because it signals there is not much left in the labor market, so this will put the fed in a tricky position when they meet in september. >> september is on, not 100% but close to 100%, janet yellen told us not just in jackson hole but

in other places, that she looks at jobs, jobs, and jobs and that gdp is not at the top of her list and if these types of jobs do not do it, i am not quite sure. cornerstone call this report inconclusive in terms of a rate hike in september or december, what is there in this that would make the fed pause if they wanted to move in september? >> not much in a sense that would make them go in september, and even before the number came a very big stretch to say they will go in september. the report itself shows gains are ok but income creation is not. the decline in average work week, that is not good for

income creation and consumer spending. vonnie: absolutely. i grant that come average weekly but when you 34.3 look at the participation rate, getting better, mohamed el-erian talk about slack disappearing, bill gross at 100% in september, other wage indicators like unit labor costs that look better, why wouldn't they move in september? >> we are seeing progress in the labor market but if we look at economic growth overall, say gdp growth, that is no way near where it should be before the december rate hike. the initial liftoff in rates last year. we are a full percentage point lower than where we stood before the initial rate hike. mark: you have your scorecard,

talk us through it. what does it mean? -- vonnie: he asked you to talk through the scorecard. >> the labor market conditions looking much better, relatively 232,000 inare now at terms of payroll growth here we stood at 218,000 before the december rate hike. and the unemployment rate is slightly below. , we are af gdp growth full percentage point below 2.1% , the data that was available for the fed before the december rate hike. it is concerning because we are not going to see much of a rebound in the second half of the year this year. the data is very scarce and the are telling us we

will not see much of a rebound in the second half. was: bill gross said it jobs, jobs, jobs, to him the jobs report is worth more than the gdp data. >> the fed has a dual mandate, looking at jobs and inflation, that pace of job creation is unlikely to continue if we are going to decelerate in terms of overall economic growth. it does matter in fact for the fed because they have been puzzled with slow growth for some time. it is not very good. vonnie: inflation, any indicators of inflation in the data, i do not just mean the and data, we looked at data things like durable goods orders, consumer readings? >> in terms of wage growth, average hourly earnings fell in

terms of annual pay for growth. data wasous month's the highest since 2009. aat to me is a little bit of cold that we will see some acceleration in terms of wages and inflation. vonnie: you are convinced it is september? evenat is what we expected before today's number, today's report tells us the chances are more remote for the september rate hike. vonnie: thank you for joining us. our: coming up, more from rare and exclusive interview with the russian president. on the future of the euro and. -- next. ♪

mark: from london and new york, i am mark barton. vonnie: you're watching bloomberg markets. a look at the biggest business stories in the news. ireland will appeal to european commission's tax ruling on apple, they ordered island to recoup $14.5 billion from apple saying the government illegally/become panisse tax bill. /the companies tax bill. -- long matches and delays at airports, some airlines blames shortage of aviation fuel.

first nation airlines -- hewlett-packard enterprises wants to sell software unit in a deal that could bring up to $10 tolion, it makes software make -- manage business operations, hp was one of two companies -- that is your bloomberg business. mark: the interview you do not want to miss. russian president vladimir putin is sitting down with bloomberg in russia ahead of the g-20 summit in china. a topic was brexit. we asked lead represent if he expected the euro to survive in the wake of the referendum. becausetin: i hope so we believe in the fundamental

basis in the european economy. , i cannots agreements say right or wrong, depending on what side you look at it from -- they primarily strive for structural changes that are no -- i am referring to a problem they cannot overcome. problem thatg to a becomes overcast, specifically with the dominant in the oil and gas sector in russia and as a result dependence on oil and gas. europe also has dependence on oil and gas. have ading economists

pragmatic approach to resolving the economic problems in europe. that is why we hold 40% in europe. >> do you think britain might be more compliant or more likely to do a deal with russia now or leave the european union? u.k. has not exited the special relationship with -- u.s., the u.k. perhaps it would be possible. if britain is guided by the commitment with its allies and think this is a -- it is the choice of our british partners.

we understand that in light of the alliance and special relationship with the u.s., to take into consideration a key partner to the u.s., as far as the u.k. is ready to resume, that is as far as we will be ready to go. bloomberg foro our interview with vladimir putin, his view on the race in the white house, the situation in syria, the oil markets, do not miss our special report on monday at 12:00 eastern. vonnie: we say goodbye to summer and hello to fall. we will how you the winners and losers. this is bloomberg. ♪

vonnie: you are watching bloomberg markets. mark: i am mark barton.

vonnie: on the bigger etf -- let's go to ones -- abigail doolittle. an etfuld like to bring analyst into the conversation. august was a big month and so many different ways, market action, talk about the the-performing etf's, from commodity complex, oil a huge month, reflected in etf's? >> the spider oil and gas was the big performer, lesser-known, most used a big spider energy but they are a hidden jim -- gem. up 7.4%, if you go back to this year, the oil rebound that finally happened, oil up and , 22%, around what

crude oil is up. uso down 5%. a lot of people in for a nasty surprise because it holds futures contracts that get killed with the costs and 2009, a great indicator of what would happen. xop is not surprising that it is a top the leaderboard, the reason is upside volatility, tripled the s&p. vol is bad on the way down but good on the way out. china? about buthina having a good month the china tech etf on fire, up 12%. etf do not have much tech, 10%, china's tech industry is booming and a lot of the tech companies list in the u.s.

holdsina tech that companies like alibaba and has the ones -- you get the whole china tech scene, alibaba.com had great first just -- first half earnings and e-commerce a big deal in china and that etf benefits. >> august treasuries, the 10 year with its worst year -- performance on a monthly basis in a year, what about in the world of etf's? 2.4% let the month but which is pretty good for bonds but like xop it has been on top of the leaderboard in this etf is interesting, technically high-yield but the best quality high-yield, double be rated and it tries to pick up bonds that are recently downgraded. they get oversold a lot because there is so much money tracking

investment grade when -- that when the bonds downgraded, the managers have to sell them. they get oversold beyond the five levels, that is the premise and that is working, this etf up 21%. >> interesting from the standpoint of investors may be not going toward the safety of treasuries but going for risk of high yields. thank you. thanks to you both. coming up, joined by the full and finance mr. -- poland finance minister. ♪

. live from new york and london. mark: you are watching " bloomberg markets" on bloomberg television.

let's go to the newsroom. vladimir putin is not taking sides in the u.s. presidential election, but he doesn't care for the tactics of either hillary clinton or donald trump. the russian president spoke with bloomberg's editor in chief in an exclusive interview. we -- with the shock tactics of not only one, but the other -- they are very smart people. >> tune into bloomberg for more of our exclusive interview with russian president vladimir putin and do not miss our special report on monday at 12:00 p.m. eastern nbc natalie news anchor leslie hope will moderate the first presidential debate at hofstra university in new york.

fox news sunday anchor chris wallace takes over for the third and final debate. cbs news reporter elaine couto moderates the best presidential debate. in venezuela, opposition leaders called it the biggest mobilization of protesters in the country's history. hundreds of thousands of venezuelans demonstrated in the streets of caracas, domenico recall vote against president nicolas maduro. global news 24 hours a day, powered by more than 2600 journalists and analysts to more than 120 countries. this is "bloomberg." mark: thank you. still ahead, we will be joined by poland's finance minister. we will ask him how brave it could affect the polish economy and whether poland's new tax on banks is affecting growth. this is "bloomberg." ♪

watchingou are "bloomberg." this is your global business report. here is what we're watching, russian president vladimir putin speaking to bloomberg in an exclusive interview. find out why he wants to settle a decade-long dispute with japan. let's get to this big interview with the polish finance minister at a szalamacha speaking form. thank you for joining us, sir. >> good afternoon. imposed new taxes on banks, on retailers. intend to rejuvenate

investments. first, i would disagree with you on what you just said. levy is in place in other countries. it is the measure which is known in several jurisdictions. we're not doing anything extraordinary. the second one, which you just mentioned, the retail tax, it is enforced for just two days. it started on the first of september. i would say i disagree fundamentally with what you just said. we will see first, revenue from the retail track in october. this year it will bring not more than something like the range of 100 million euros, 100 million euros. it is a frankly meager levy. i do not think it will put

investors at bay or something like that. mark: maybe you will agree the economy seems to be slowing and some are doubting whether you will reach your eu-opposed deficit rule if the economy does not accelerate as much as you hoped. might you have to take extra measures to reach those deficit targets? >> right. for the seven months of this year, and then after seven months of this year we have realized deficit of at least -- not more than one third. so when you think about the calendar year and the momentum which it has is quite positive. why is that? significantly improved

revenue collection. the revenue collection jumped by .ore than 7% on an annual basis therefore, i feel quite confident. to be quite frank, we have significant challenges ahead of us to the next year 2017, a given the fact that we have done ofnificant progress in terms the revenue collection, i think we will just meet the target, the deficit target at 2.9, which i put in the budget for next breached. not be we will be within the limit. vonnie: minister, moody's is announcing a ratings review for your country, poland, next friday. they are concerned there will be a downgrade. do you anticipate that? what does: need to do to avoid that? -- what does poland need to do to avoid that? >> i'm sorry, i did not hear the

question. could you please repeat a shorter version? minister, will moody's downgrade: next friday? right, again -- vonnie: some question? mark: minister, hopefully you can build a hear me better. my coanchor asked if the rating's agency moody's will downgrade your rating next friday? what is your view? for this.thanks decisionsen several of the rating agencies this year . , two. we have been in a constant

information with a ratings agencies. i don't know what they will do, but we have proved we are quite resilient. the decision was quite short. anything like a negative effect on the financial market was, i should say, very short. and we have recovered their previous position. we don't have any problems with replacing our debt. just a week ago, we made the first european issue of the bonds in china in the people's republic of china. issue, to behuge fair, but it was heavily oversubscribed by the chinese investors. we were the first european country to enter that market under the chinese rules. have quite a good

opinion among the investors. mark: finance minister, bloomberg ran a story a week or andgo that state-controlled state fund are in talks to buy cacao from unicredit. could you elaborate on the story for us if you can? why is poland simply interested in boosting ownership of its banks? >> right. as you might know, the biggest italian bank needs to raise capital. and they have quite a successful polish operation. the second largest in the country, the one you just mentioned, pko, and they're considering various options. either they will go to the polish or sell the subsidiary. very successful operation.

it is their decision. it will be decided in milan. and if they decide to divest and andhey decide to sell, there are various options on the table. one of the companies which consider this move is the biggest insurance company in central europe, that's true. and they are in open talks. reason you any should be discriminated against and disallowed to buy the bank. mark: finance minister pawel szalamacha, thank you for joining us, poland's finance minister. with a coming up next, plan to save italy's bank succeed? we go back to june of you where mario monti joins us on that topic and so much more. this is "bloomberg." ♪

vonnie: you are watching "bloomberg." mark: this is your global business report. what we're watching today, russian president vladimir putin picks to bloomberg in an exclusive interview. -- speaks to bloomberg in an exclusive interview. what he wants to end a decades long dispute with japan. -- samsung has a huge recall. cartels have dominated certain industries for years, but there are growing legal and business challenges to their supremacy. the subject in today's quick take. russia wants a compromise in a dispute with japan. this stretches back more than 70 years. at the end of world war ii, the soviet union occupied the

islands. president vladimir putin said that resolving the conflict should be part of developing a long-term relationship. >> several years ago japanese return to thet discussion of this topic. we did that. we met them part way. side, theseanese were frozen. but now our partners are showing a willingness to discussion of the subject. we are talking about not some exchanges of sales, but finding a solution where neither of the parties would feel defeated or a loser. mark: the world's biggest banks want a special break the deal to keep the status quote. they've asked british prime minister theresa may to strike an interim agreement with the eu before exit talks start.

according to people from earlier with the matter, that deal would try to preserve passporting the ability of banks to self services and products across the eu. angela merkel may stand in the way. italy has rejected germany's request to take a closer look at sears over emission rules. the transport ministry shows the used known authorized devices on its cars to get around pollution rules. germany stepped up its oversight on the auto emissions in the wake of the vw scandal. the germans have now asked the you to get involved -- eu do you have all. samsung has announced a recall. the problem? full to got a respecting catch fire. people who have bought the note 7 will get a replacement. the samsung recall comes less than a week before apple is set to introduce new iphone models. vonnie: time for our bloomberg quick take.

background on issues of interest. cartels found unsavory, .uggesting drug kingpins they are in fact illegal within the u.s. and most developed economies. cartels exist openly in many places and covertly almost everywhere. here's the situation. crimes over price fixing within several industries on the rise. in july, record fines of nearly 3 billion euros against daimler and other truck makers for fixing prices. libor scandal for banks in the u.s. and europe, paid out about $9 billion in fines for many relating prices in the foreign exchange market. one huge cartel, opec, has remained a strong force until the market forced countries to act and their best interest. determined to recapture market share, including oil from shale, saudi arabia and other arab producers opened the tabs, sending oil prices down 46% by

the end of the year. among those hurt were ok numbers iran and venezuela. the idea is age-old, performer cartels versed emerged in germany in 1870's and spread other european nations as well as japan. it is noted domestic retail's typically emerged in industries with high fixed cost under record of competition. steel, coal, fertilizer, aluminum. here's the argument. cartels face moral and legal hurdles today, the ubiquity's throughout suggest attempt eradicate them entirely will fail. they face a threat that will never go away. teaming on the cartels rules by members who can't suppress the competitive side. this recently happened in europe. ubs and barkley avoided fines but being the first to come clean about interest rate manipulations. you can read more about cartels on bloomberg.

head to bloomberg.com for more stories. mark: italy's lenders are tried to convince finance and business leaders the troubled banks overall will succeed. earlier a time in -- the italian prime ministers spoke with bloomberg and had this to say about one of the most troubled lenders. is completed,an which i'm fully confident it will be, the bank will be stronger, will have got rid of its in plo did, will be based on a very effective business plan. we will have a strong bank back in the entire banking system. mark: joining us now for italy is mario monti, former prime minister of italy and a senator for life. thank you for joining us today. >> good afternoon. pleasure. mark: the a tie and cry minister and the italian finance minister -- italian finance minister and

do you share that optimism? can a solution be found to shore up the battalion banking industry -- italian banking industry? >> i think the prime ministers and the finance minister were balanced in their judgment. for the other main banks, certainly not worse than other eu countries. so i believe that there are some problems like and all of banking systems and economies where the recovery is very sluggish and slow in coming up but i have the

impression that there is maybe to deflect the attention from concentration of a tensions on italy at this juncture. that if the market decides today the ecb executive board member struck a more cautious tone, he said it was up to the markets to assess whether the italian government had done enough to address this view of nonperforming loans. if it is up to the markets, yet the set of performers for the italian shares in recent months tells us that investors are still concerned. yes, investors are still concerned. i can see that. i think it is not a very good moment for the banking industry in general.

but, you know, we have seen many times investors concern and realities, as they emerge over time, not coinciding 100%. you had the opportunity and you used it speaking with the and primenister minister, you're not going to extract from me at this time because i'm not in the position anymore available judgment than you did from them. mark: let's talk about brexit. you said it was being used as a distraction from brexit. so let's talk about brexit. when do you think article 50 -- how important is it that it is triggered in the near future? important, the verdict of british electors was clear. i believe it was not a good idea

to call for a referendum on this. i believe david cameron would be the most convinced person in the world that it was not a brilliant idea that he had. editing you rate, the people spoke -- but at any rate, the people spoke out clearly. i think this is not the time to gain time with games, so i do article process forcing undueactivated without delays and i hope that it will be conducted on both parts in a seeking a punitive attitude. and i believe that not having a punitive attitude in particular by the rest of the u.k., and i

will say more than that, seeking to establish strong, constructive relationships of friendships does not mean at all orsell out or to unbundle dilute existing structure of the eu market, which has a coherence of its own. -- pick and to be choose selectively. mark: was sort of model do you prefer? relationship do you envision between the u.k. and the eu? can the u.k. maintain access to the single market? under what sort of conditions? well, if one says conditions ,imilar to the one for norway

maybe the u.k., given their might resent.just but i think it is a very --gmatic condition, namely for the u.k. who largely invented the european single market. and i go further, it was largely the british conservative party .hat invented it , i do not think it will be possible to just subscribe to some of the freedoms of the single market and not others. for example, this is not a matter for ideology but suppose the u.k. were to ask in the eu were to concede.

for participation in the markets cap except for free movement of workers, which is down at the moment very liked by the u.k.. ok, one could say, but i'm sure after such an agreement, france will say, wait a moment, i, too, want to participate in the single market but, please, result in the freedom of the market for corporate control. and i don't want others to buy the control of french countries. mario monti, thank you for joining us, former prime minister of italy and senator for life. vonnie: coming up, the european close. this is "bloomberg." ♪

new york, i'm vonnie quinn. mark: from london, i am mark

barton. we are going to take you from san francisco to moscow in cover stories out of washington and london, and here's what we're watching today. an exclusiveging interview, bloomberg sits down with russian president vladimir putin. we asked him if russia central banks move to boost the country's currency reserve. president putin's answer just a moment. vonnie: the u.s. added 151,000 jobs. stocks climbed after the dollar fell. there's a chance the federal reserve will boost interest rate this month. its galaxyrecalling note 7