"bloomberg markets." mark: here are the top stories we are covering on the bloomberg and around the world. visits the palo alto store as the iphone x goes on sale, greeted by long lines around the globe. apple soars above a $900 billion market cap. how long until it hits $1 trillion? looming,w fed chair the u.s. adds jobs in october. how the jobs report will impact the rate hike to be going forward. european politics, yanis varoufakis joins us. we will talk greece, the ecb and get his take on the crisis in catalonia and what lessons it may hold for the eu.

european equities trading right now, what we gets been good that's what a week it has been we are taking a look at european equities trading right now. what a week it has been. the euro falling against the dollar. the u.k. 10-year up for basis points today that four basis the u.k. 10-year up four basis points today. the maker of high-end lipstick and mascara in china giving loreal a boost. makers leading the way. company has had strong

performance in china and hong kong, helping the luxury division post double-digit growth. ar france klm shares opened bit up-to-date. the stock then slumped, it's now rising. air france shares are lower. we will come back to that. these are renault shares. france giving up some of its control with the sale of a 4.7% stake in the carmaker that was acquired in a contentious power struggle a couple of years ago. renault shares have climbed 16% in the last two months. today, they are up by 4%.

julie: a little better over here. all the major averages at their highs of the session, even though the dow and s&p are still little changed. technology gains are extending here. apple is a big part of that. i wanted to look at the other earnings winners and losers. this is the best performer in the s&p 500 today on a percentage basis. the maker of dental equipment, the company had better than estimated third-quarter results. that shows signs of life for the company. fluor forecast earnings per share to midpoint of which was above estimates after its third-quarter numbers beat. motorola solutions, strong product sales helping fuel that companies beat -- that company's beat. discovery communications on the media side, those shares on a

seven-year low. cable customers going with the skinny bundle here or cutting the cord entirely. they've been dropping the niche tv networks that are owned by discovery. had an earnings beat. however, it was not big enough, according to an analyst at morgan stanley. earnings per share growth slowed to its most modest pace in over a year. activision blizzard, the videogame company, third-quarter earnings beat but it was cautious on its fourth-quarter outlook, which illustrates the difficulty in predicting demand for video games. there's a migration to digital from the physical games. outside of the world of stocks, getting back to this talk about the fed and also about taxes, the bi stocks team with this

chart, deficits in the white line and the dollar spot index in blue. steady as sheg goes with monetary policy, fiscal policy would be more of a driver of the dollar and it could be a negative pressure on the dollar. if we have the tax cut coming, we could potentially see federal deficits grow, which could then in turn be negative for the u.s. currency. vonnie: thank you for that. a major week in general. let's get back to the u.s. labor economy. payrolls rising the most in a year as people resumed work after hurricane harvey and irma. again missed economist estimates and wage growth stalled. joining us in york, michelle meyer. thank you for joining us. a jobs report we will discard to a certain extent. was there anything in here of major value to you and your team? michelle: sure.

the headline numbers were quite strong. let's start with the paybacks from last month. it's important to look at the three month moving average, which is coming in at 162,000, very in line with what we've seen throughout this recovery. a healthy pace of job growth. what stood out much more to me was the wage data. we saw zero on a month over month basis. it was down slightly, -0.4%. that was an offset from the strength in september and it pushed the rate down to 2.4%. wages have been missing so far. we haven't seen a real acceleration in wage growth, this by fact that the unemployment rate continues to fall -- despite the fact that the unemployment rate continues to fall. vonnie: given that we are likely in the final months of janet

enure as fed chair, what did you learn during tenure? michelle: for market participants, we learned how much the fed is trying to balance their dual mandate. on the one hand, they have to look at what's happening with the labor market and with reaching full employment. there, we can see considerable progress with young implement rate falling below what most people consider the measurable implement. -- the measure of full employment. what we discovered throughout was year is that the fed able to tolerate a miss on their inflation target in the short run on the assumption that in the medium-term, we were going to be able to see a move back up in inflation in an environment where the unemployment rate is heading lower. fascinating to

understand how the fed is trying to interpret the balance from the pool mandate. -- dual mandate. mark: does the path of rate hikes change with jay powell if he is confirmed by the senate? michelle: it's largely anticipated or speculated that jay powell will be a symbol of continuity when it comes to the fed. that's in terms of interest rate hikes and in terms of balancing normalization. best balance sheet normalization. -- and in terms of balance sheet normalization. his comments have been largely in line with those of janet yellen, supporting a gradual process for the hiking cycle and one where they are being quite prudent. the fed will attempt to follow the dots. the balance sheet normalization is indeed on autopilot. mark: we had a guest on earlier who said there are deep thesions with the fed,

comments were related on the pathway for inflation. i will jay powell cope with those supposedly visions -- suppose it divisions -- supposed divisions? michelle: it is not an easy job, that's for sure. has had janet yellen in that role for the past several years and has been a careful thinker when it comes to how to conduct monetary policy and how to balance these risks. we don't have agreement on the federal reserve. you have those in the hawkish camp that have been advocating for higher interest rate hikes either because of concern of asset prices or because they are uncomfortable with the level of the on implement rate. you have others that are in the dovish camp that are embracing this idea of a new normal in the economy, one where inflation is structurally low. powell is used to that debate. it's not new. findob is going to be to

that consensus and hear a brady ause and come just hear variety of views and come with what he feels is the best policy approach. -- and here a variety of views and come with what he feels is the best policy approach. we are less than six weeks away from another increase, as everybody in the consensus is calling for another increase in december. do you anticipate any market reaction between now and then? it's very much anticipated that the fed will go ahead and hike. we are looking for the market pricing in as a consensus. for the fed not to hike in december, it would require a disruption to financial markets. financial conditions would have to tighten considerably, there would be a big risk off move.

the data generally speaking has been supportive and will continue to be supportive based on the fed guidelines. it will be a market event, something big that happens that takes us off course and that would shake things up. we go into the december meeting with a hike and at the december meeting, what will be interesting is what happens with the economic production. thanks, michelle meyer. let's check in on the first word news. says he'sident trump disappointed the justice department isn't doing enough to investigate hillary clinton and the democratic national committee. the president is in route to asia for a fall day trip before boarding air force one, he spoke to reporters and denied any connection between his campaign and russia. >> there was no collusion, there was no nothing.

you want to look at hillary clinton and the new book that was just put out by donna brazile where she basically points to the dnc and she stole the election from bernie. she: in the new book, alleges clinton's campaign controlled party strategy and finances before she secured the presidential nomination. house republicans have put up a united front on their new tax reform bill. already, some cracks are showing. they represent high-tech states that would get hurt by the plan's elimination of state and local income tax adoptions. angela merkel said today she remains "optimistic" about the changes of forming a coalition government after an initial round of talks produced little visible progress. they've struggled to find common ground on issues like protection, climate

best military judges ruled that bowe bergdahl should not serve for walking off his post in afghanistan. he was captured by the taliban and held for five years. they reduced his rank to private. prosecutors have recommended a 14 year prison term. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. mark: thanks a lot. coming up, theresa may outlines a new code of conduct for her party as she deals with the scandal rocking westminster. details next. later, yanis varoufakis. we are talking catalonia, the ecb, much more. this is bloomberg. ♪

live from bloomberg world headquarters in new york come i'm vonnie quinn. mark: and i mark barton. let's get to the you hate politics -- u.k. politics. today, theresa may wrote a letter outlining a new code of conduct for the tory party. may says "we believe there is a vital need to provide better support and protection for the thousands of staff working in westminster." she's asking for parliament to come together to resolve this as a matter of urgency. joining us now, flavia krause-jackson. thank you for joining us.

ss this a threat to maty' majority? a slim majority. flavia: it certainly is. she needs to try to get ahead of this. there's this appearance that she's done the minimum required. she's named whatever insiders to a top job that's one of her insiders with top job. -- she's named one off her insiders to a top job. there was no code of conduct before. thatis a tangible evidence may is trying to get ahead of this problem. she will be meeting with jeremy corbyn and other leaders from the party and other parties. mark: it's not just a

conservative party issue. flavia: correct. we've focused on the tories to a certain extent because they are running the country, but this is an across-the-board thing. german corbyn has suspended two of his mp's. that's evidence that he's taking this very seriously as well. .he hasn't done that she is hemmed in politically. mark: this is the first week we've barely mentioned brexit. it's the sexual-harassment scandal. flavia: it's not brexit off the may, it is but froor a huge headache. weeks, shen seven has to produce something in brussels. those issues don't go away. massive, she's got this

political nightmare at home. it's beyond the politics. it's a culture that's being addressed, it has come at her unexpected late -- unexpectedly. mark: thank you for joining us, flavia krause-jackson. vonnie: fantastic stuff. still ahead, president nicolas maduro laid out his plans for venezuela debt. we will discuss. this is bloomberg. ♪

mark: i'm mark barton with the european close minutes away. vonnie: i'm vonnie quinn. venezuela plans to default on its debt.

in a televised speech that lasted more than an hour, president nicolas maduro said the government would refinance its debt, then used the word " instead.re was goin more, let's bring in katia porzecanski. what exactly did maduro say? was he lucid? katia: great question. he used the words refinance and restructure interchangeably. they are two very different words. he didn't clarify if he was including the state owned oil company with a sovereigns, so that caused some confusion. it wasn't entirely clear that they intend to continue to pay their bonds through this

situation or if they are defaulting. today, the vice president, who has been put in charge of the restructuring process, provided a bit more clarity. he said it will be both sovereign and the oil company, they intend to keep paying their debts throughout this process. he used the word "renegotiate." the third word in the whole thing. regardless, the market is not taking this well. reaching many bonds down $.18 on .he dollar traders don't like confusion. vonnie: they lost 93% of their value this year. let's talk about the creditors. there's a lot of money at stake. value is dwindling for them, to

o. katia: there's the big question of how this is going to go down which is why prices are so depressed. u.s. sanctions currently prohibit a debt restructuring and a debt refinancing. you can't do it because creditors cannot accept new bonds for the u.s. sanctions imposed in august. they can't participate in talks with somebody like the vice president. no one is going to go down and participate. is this something they attempt to do but don't really get done and the default later on the down the road? is this something that will blow over in a few weeks? probably not. the quantity of question marks

is affecting the market today. there's a lot of so-called real money involved in here, big institutions like fidelity or g.m. what we haven't seen yet is the participation in the long-term of hedge funds. presumably, they might start coming in now with prices depressed as they are because they've been studying it for the last four years. they've been studying this closely hoping to pounce on an opportunity. mark: does this remain a localized event? you talked about the market reaction. the wider em market reaction has been muted this year. talking about turkey and the flare up with u.s. and ongoing political issues in south africa . does this stay localized? katia: for now. think about how depressed the prices were going into this. some bonds were trading higher

in the 50's and 70's, but prices have been pretty low for a while. it's been very cheap for a while. they need -- the collateral damage has been done. the economy has been a mess for a while. it's isolated from other south american economies. doneffect that's been already, the economy has been a mess for a while. vonnie: katia porzecanski with the venezuela story. she's on top of it all. mark: take a look at where european equities are looking as we head into the close in four minutes. this is bloomberg. ♪ who knew that phones would start doing everything?

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chemicals. on track for their second weekly gain in the seventh in eight. one company that shares her hammer today, falling as much as 10%. 8.8% lower now. the biggest decline since 2013. beginning on the tax overhaul bill, could trim the wind energy tax credit for more than one third. market,f the u.s. america representing. 67 of its new pipeline goldman sachs is regulatory changes may cut it. nordex, another company by 18%. the best proposal is "disappointing." u.k.d some data out of the af