200,000 new jobs in july, but the real question is, what happens with wages? of commerce wilbur ross says he will keep increasing trade sanctions on china until it is less painful for them to reform then to stick to business as usual. englandit -- bank of announces a rare rate hike, but the pound drops -- uncomfortably high risk. daybreak, bloomberg i'm david westin with julie hyman. julie: it is great to be here. jobs day. i love excitement. isyou take a look at what happening in markets, not unusual in u.s. assets to not see a lot of movement. a slight bump on the week, the 10 year yield yesterday touched

3%. that's the level that has been closely watched in the past, triggering selling in stocks. that was not the case yesterday, however, counterbalanced as it was by the $1 trillion market cap milestone. mentioned, we are watching comments out of mark carney at the bank of england, expressing concerns over brexit, sending the pound down versus the u.s. dollar. it fell as much as 3/10 of 1%, now off by 1/10. we are also watching italy, because it is not just having movement today, but over the last three sessions of 27 basis points higher. as we are looking at a meeting between the finance ministers there and the company does it government -- the country's government. david: they don't like to think that they are even meeting, let

alone a green. it's jobs day in the united states. at 8:30 a.m. eastern, we will get the change in nonfarm payrolls for july. ,e will get composite pmi data then brookshire reports its second-quarter earnings. for bloomberg first take, we are joined by carl riccadonna and sarah ponczek. this is sort of the consensus. nonfarm payroll, the consensus is $193,000. you are? carl: $223,000. david: they say it is going to take down to 3.9%. carl: 4.8%. i think we are at a point where we will see more legal pressures -- more labor pressures, enticement to draw workers back into the labor market. as labor force participation

edges higher, that will slow the dissent in the unemployment rate. that's why we saw it pick up in the june report, the good kind of increase which met more people are looking for jobs. agreesi think everyone -- will be at 2.7%. carl: just one notch below the high for the cycle. it doesn't feel like a very pivotal jobs report, right? sarah, what are you hearing from market participants? this setup has been pretty benign going into this. sarah: this is more of the same. i feel like a broken record saying this, but the -- is important here. the consensus is two .7%. if we somehow get a number above that, 3% or so, we could be going through 3% again on the 10 year. and a we did get it yesterday, but some are saying we could be heading towards 3.1% again.

target to their price 3.1%, and this could be the catalyst. look at the compensation question of wages. it's not just the number in your paycheck. -- explain a chart to us why we should be looking at this chart. carl: we have both wage gains and what i'll call nonfinancial cost pressures. we saw this in the eci earlier this week. basically, two different measures of income growth from the jobs report and the gdp accounts. what we see is that yes, things a favorable in direction, but this is telling us the 4% consumer spending number in q2 is not going to be sustainable. ultimately, the limiting factor will be wage and salary gains, not running at a pace that will make that repeatable in the near term. that means this debate over the 4.1% gdp number in q2 could be

repeated later this year. ,hat debate is done and dusted because we are simply not providing enough fuel to the primary engine of economic activity. david: i suspect the president might take issue with that. second story, it has to do with trade and china. the united states is keeping up pressure on china. wilbur ross last night said "the reason for the tariffs to begin with was to convince the chinese theyify their behavior. have instead been retaliating, so the president says it is time to potentially put more pressure on." surpriserprise, they've been retaliating. what a shock. david: he wants to increase the pressure to make it so painful they have to change. what is this doing to the markets? sarah: after we got the confirmation that president trump was actually asking robert lighthizer to up the tariffs,

we saw it offset by apple. if you do look at some of the trade sensitive names, boeing was lowered, caterpillar was lowered. above 2800, i've been asking analysts and investors, what does it take to get above 2873? no size from january? we need to make progress on the trade front. even with this strong earnings season, if you look at where we are in the s&p compared to july 13, when it really kicked off, we are even 1% higher. julie: at the moment, it seems more like a limiting factor than a detrimental factor. looks like market participants are waiting to see how many of these tariffs actually go into effect, not just the rhetoric. it is very hard to estimate until it actually happens. here, 10% there, it is

a micro-story as you target specific sectors. if we target this as a macro at the tariffs impact on chinese exports overall, it is about a 7% tariffs. if we way it -- weight against chinese exports last year. the yuan, has, weakened by about 7% from april and may. they have basically devalued their way out of the tariffs, and everything stays the same. the answer has been a lot of headlines and whatnot, china has devalued its way out of the tariffs. donald trump and his administration are aware of what is happening, so they have up startedoric and grumbling about exchange rate levels as well. story andise to the won't allow china to simply weaken its currency to offset the impact. julie: moving on to a different nation and a different set of

rhetoric, let's talk about what is going on in the u.k. in this mark carney interview with the bbc and his comments with us. he says the bbc -- no deal. having no deal would be highly undesirable. parties should do all things to avoid it. this seems to be a common sense thing to say, but when it is the head of the bank of england, it obviously has different implications. sarah, we saw big reactions in the pound in the wake of these comments. fall: we did see the pound , but if you look at the past four weeks, the pound has declined against the dollar every single one. if you bring it out, it has declined seven of the last eight weeks, so it shows uncertainty around brexit. especially when you have mark carney coming out saying, it is unlikely we won't get a deal,

but it is still a possibility. that puts a wrench and things. he said more than it is a possibility. he said the risk is uncomfortably high. hike, which a rate is an extraordinary thing, and it seems like people are reacting to this interview more. carl: the bigger question about thebasis point move is broader question of how the u.k. will be situated in the broader economic hemisphere. there are some real questions. divorce of an amicable when the countdown clock is running down is significantly reduced. david: it focuses the mind. [laughter] you caneminder that find all of the charts that we just used and more by running g tv in your terminal or browser.

you can save our charts as well. on today's jobs report with michelle girard. her forecast of 185,000 jobs added in june and july is below consensus. ♪

>> mrs. bloomberg daybreak. world bank of scotland has laid down the plan to reduce paying dividends decades after the government bailout. -- still subject to a final agreement with u.s. regulators -- emma: toyota is preparing for

challenges in the u.s. market that could be hit by a trade war. sharpening focus on -- beat estimates. the company smashed its predictions in american sales by 50,000 vehicles. don't telldon't ask on the cbs quarterly earnings call. analysts heated a request from company executives and did not ask about the sexual harassment allegations against the ceo. he spoke on the call that did not address the issue. since the allegations cannot one week ago, cbs is down 8%. that is the bloomberg business flash. julie: thanks. david? david: how did don't ask don't tell work for the u.s. military? it sort of reflects the relationship between wall street and many companies, analysts. that they tread carefully.

david: the issue isn't the sexual allegations for me. this isn't access hollywood. the question is what it is doing to the company. and to what extent is this a distraction, being in a possible fight with viacom. other companies are moving so fast on a distraction that could slow them down. i don't know that they will, but it is an issue. julie: it is a question people should be allowed to ask. david: they are allowed, but they went along with a request not to. julie: as a journalist, even if you are going to get an answer, you still have to ask the question. david: -- are not journalists. julie: we are still one hour away from the u.s. jobs report, predicting -- 193 jobs added last month and that average hourly earnings grew 2.7%, same as the month prior. joining us is michelle girard, managing director

and check -- and chief u.s. economist. where do you think the bulk of the gains are going to come from? >> i would say that our estimate of 185,000 is a little below the consensus. michelle: but it is far from a soft forecast, and it would certainly not imply any meaningful change in labor market conditions. we are looking at trend employment growth over $200,000. that is incredibly oppressive for where we are -- incredibly impressive for where we are in the cycle. we are a little low on the payroll gain because we are expecting pullback in a couple of sectors that looked particularly strong last month. for example, manufacturing activity has outsized gain and we thought that would come back, month-to-month noise. often predicted in the

last few months, the adp numbers, the isn numbers we've had. we might do that again this month. even with our the low-consensus estimate, we would still consider this to be a red-hot labor market. david: draw a connection, if you can, between the strong jobs growth, which has been going on for some time now, the ok wage growth -- i think it is fair to say it is not robust -- and what is going on with the gdp. carl riccadonna says those numbers do not support such a growth number. michelle: the implication is that if gdp is so much stronger than employment, we are seeing a pickup in productivity. that would be a welcome development. , think the productivity story you mentioned the fact that wage growth has been sort of subpart, much lower than you might expect given the tightness in the labor

market. i think productivity is the key. i think it is difficult for firms to pay more for workers that are not contributing more to the bottom line. in a low-inflation environment, it is hard to pass those higher labor costs on to consumers. so productivity, i think, is the arein terms of why it is we getting better gdp growth and employment. looking ahead, that is an incredibly positive development. just to be clear, what kind of pace do you think the productivity gain can sustain? michelle: we've only been growing 1%. the longer historical trend is closer to two, a little bit of both it. ,- in the wake of the tax cuts we've actually seen business investment rebound sharply before that, 2017 had very healthy business investment.

i think that should bode well for activity growth. i'm hoping we will get one half to maybe three quarters percent pickup in underlying productivity? that would be incredibly important for wages, and that potential gdp growth is higher. how tightly is business spending tied to gdp growth? -- to productivity growth? historically, it is strong. quarters half, three wouldn't take us to a trend or above trend of activity pace. but clearly, we are moving in the right direction. i think that is an important piece of the puzzle. we talk about the improvement in growth overall over the last year, we've seen growth accelerate. we are now on a year-over-year basis.

-- an important distinction i make to our customers is that this is not about the consumer necessarily picking things up, although the consumer has been very strong. spending has been fairly solid. the real turn in gdp growth from 2016 to 2018 is the business sector. that is kind of what we would consider to be noninflationary growth. if you are expanding the supply-side of the economy, then the inflation expectations are significantly reduced. julie: i want to mention a headline we just got. people saying china has raised its reserve requirements on fx/the 20% -- f x forwards trading to 20%. we are seeing the offshore yuan hit highs for the day as we see the tweaking of reserve requirements there it i want to bring you back in for one more comment.

the background of the jobs report, the u.s. economy, we have what is going trade ware potential and currency war. where would we see that in the jobs report, if anywhere? will some areas be higher or lower? michelle: i would say that to date, you would be hard-pressed to find tangible evidence that the trade escalation talk is hurting the economy. we are watching. yes, there has been pullback in planned spending, but in terms , secondl activity quarter, growth was boosted by activity that occurred before the tariffs went into effect. earlier, i carl said believe, we are looking at the potential of impact -- the potential impact of tariffs being offset by a weaker chinese

currency. that is something that is happening. whether it is the chinese officials or more likely just pushing down the dollar versus the chinese currency. this morning once suggest that -- the netom line is that impact of the cost of imported prices coming -- of chinese imports coming into the u.s. is something we are watching closely. to the extent that goes up, it will create inflationary concerns. to date, that is not evident in the numbers we see. david: we always love to have you here. thank you. ,oming up, the pound is falling or at least has been, as bank of england governor mark carney warns that a no deal brexit is highly undesirable. ♪

>> we've been watching this

breaking news now that the people's bank of china has raised the fx forward requirement, the reserve 20%.rement to we have seen immediate reaction in u.s. currencies, as well as -- in u.s. currency. as well as in the offshore yuan rate. you see the index spot rate lower. , i want to get your reaction on this latest move. >> i think the pullback in the dollar is to be expected. i think we've seen that across the broad spectrum of currencies. has not just been the dollar against chinese currency, but also, the dollar is lower against the pound and the euro versus levels we saw earlier this morning. there's a lot of room for the story to run, and it has been choppy when it comes to trade,

but the latest development has seen eight broad dollar weakness against not only the chinese currency but others. david: we have seen -- trying to squash speculation on the offshore yuan. is that what this is about? i think that the part and parcel, but i don't know how this will play out. this is sort of the latest chapter, and i think it is very difficult to know how this thing will play out. but i think that is part of what is going on. i also wanted to ask about mark carney and the bank toengland, and his comments the bbc expressing concern about "hard brexit" or "no deal of brexit." how are those comments being taken? richard: i think in a lot of ways what he said today is what people in the fx markets were

asking him to say yesterday, to acknowledge the risk. yields havell, u.k. also fallen. the market has already come to the same conclusion that mark carney did today. that there's a lot more to weigh risk in brexit than the bank was saying yesterday. that's a reason for the pound to go lower and u.k. yields to go lower as well. david: it is always good to have an expert. dow dupontext, delivered a second earnings quarter -- ceo of the dow chemical company to hear about its impending spin in the materials business. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. julie: this is bloomberg daybreak. markets thisng morning. s&p futures gaining steam and to job numbers, up one quarter of

1%. 9/10 of 1%,ing watching that along with the pound, which is now higher, interestingly. it had initially been lower after an interview with mark carney of england after he expressed -- reinforcing the idea that it was a dovish raise that the bank of england did earlier in the week, and the 10 year yield unchanged into the jobs report. on what islines coming outside of the business world. emma: homeland secretary wilbur ross is signaling there's more tariffs ahead in the battle with china. he told foxbusiness that the u.s. has created a situation where it is more painful for china to continue its trade practices then continue tariffs. -- 25% duty on $200 billion worth of chinese goods. president trump's intelligence is onearns that russia

keyboard click away from a major election hack. director of national intelligence dan coats says that russian efforts to disrupt the toterm elections have yet reach the intensity of the kremlin campaign a few years ago. the u.s. is looking to tap down criticism that is trump is reluctant to hold russia responsible. -- has one bank the presidential election. overshadowed by protests and charges that it was rigged. -- job will be to rebuild the economy back by this rule by robert mugabe. global news, 24 hours a day on air and on tictoc on twitter. powered by more than 2700 journalists and analysts in more than 120 countries. david: yesterday, the dow dupont income announced its more than predicted and expects continued growth in the third

quarter. however, the stock is declining in the premarket today. , ceolcome jim fitterling of the dow chemical company. --try to get this straight congratulations, you've been named ceo of dow chemical. that is one of three companies that will be spun off. jim: the new material science company will be called dow. david: let's talk about that component of dow dupont. how you see the second quarter looking forward. jim: we just delivered the second quarter year-over-year of 26%.ngs growth, up we had broad base growth, organic growth from a lot of investments we've made. we overcame about $400 million of costs. our biggest costs are obviously hydrocarbon feedstocks that we used to make our products. we had hired turnaround activity and had a strong quarter.

the key thing is that volume was organicmarkets and our growth and investments, price was up five. and we had a currency tailwind of three. david: is that because the overall market is growing, or are you taking market share from others? see all the geographies around the world growing, and at this kind of gop rate, -- gdp rate, we grow at one to two times. quarter.w 9% in one we are going above because we are making these investments. we had higher equity earnings from our joint ventures. ar kuwait joint venture had higher return. across the board, every business, every geography had greater volume, greater pricing. you don't see this robust economic result or business result very often. it is my that point,

understanding you will grow more in the single-digit trajectory in the current quarter than, perhaps, going forward. it's not frequent you see that kind of growth -- does that mean a single-digit percentage gain is going to be more the norm? jim: i think what has happened some of theill lap big projects we have online. our joint venture with saudi .ramco has been aligned as we get into third quarter, fourth quarter, we will lab those investments. incremental expansions coming. one coming to texas online at the end of next year. two plastics plants at the end of this year. we are continuing to step this growth up. but these high, double-digit types of numbers will probably moderate to just above 1.5, two times the gdp level. julie: i want to ask about at

the lien prices, seeing them go down to a multiyear low. companies haveer been building more plants, some of which you've just been discussing. that as well, start to see that normalize once the plans are online? how does that play out? a timinghave a bit of phenomenon with ethylene. it is not widely traded in the gulf. most reducers have fully integrated back to ethylene. we look at the full chain margins to the derivative. what is the polyethylene ethane margin? and what happens when you bring on these new projects? you get disconnects in the markets. right now, there is not enough derivatives capacity in plastics and other ethylene derivatives to take that, so it doesn't go anywhere and the price plummets. that will change over time. you will get balances right and things will smooth out. david: i want to talk about

trade. how is the trade situation affecting your company? jim: so far, it has not had a big effect on us. key raw materials are feedstocks. we are to be located where the feedstock sources are. we are shipping them around the world to get to our facilities. we export materials. i think a lot of the market is concerned about the impact on-- to service europe, middle east, africa, and asia. we built our gulf coast assets north america and latin america. from an exposure standpoint, we are exposing our growth from the middle east, out of canada, at of locations like our joint venture in thailand. our customers.h there will be, as we move through this, inflationary impact through the value chain. if packaging, for example,

they use aluminum and plastics, they will see prices go up. oil is going up and gas is going up. we are probably in an ,nflationary peropd anyway because of those fundamentals, but we have to keep an eye on the past's of these many costs, and what it does to downstream consumer demand. david: are you concerned about overall patterns on economic growth because of the trade situation? economists say that if we go forward, it will affect global growth, and could affect the demand for your product. yet.i haven't seen that about 70% of what we've made go into consumer product. if you look at the strength of the consumer, in china it is good, in the u.s., consumer strength is very good. julie: talk to me about the spinoff of down. -- of dow.

dupont is going in a split direction. the asf is going in the opposite direction, one of your competitors. what is the strategy of the youoff, and how does it put at a better competitive advantage going forward? brought the companies together, one of the key ideas was take the act businesses and spin that out. we thought it would get a higher multiple on the market. material's side, we would still be an integrated company. we may not have the breath of the asf, but we will still have that still be an integrated company in the six businesses we are in. that will allow us to be a better capital allocator as we move forward and continue to invest in organic growth. in the old dow, we had 13 businesses to service and allocate capital across 13 businesses, hard to keep them

all up, keeping up with pace of gdp growth around the world. david: it is jobs day in the united states. that shows thet number of employees in chemicals and plastics over time. it dipped down in 2009 when we had the financial crisis. in white and plastics are in blue. still not nearly the level it was in 2000 or so. what is your experience with dow in employment? jim: it is coming back. with all the facilities we built, we've done a lot of hiring. and we've got a change in demographic. digitalve into the realm, we are moving to robotics, sensors, data analytics. we are hiring people with i.t. experience. even though the numbers are coming back more slowly than the have been in the past, mix has shifted. 35% to 40% of my workforce today are millennials. we are hiring at the rate of

about 2000 employees per year, because we have to replace the generation that is retiring. in a way, we are rebuilding an industry that from the late 1990's to 2012 had no investment. it to be --enting rebuilding it to be a new company. not a techmpany is company, you will have a hard time surviving in this world. that has an impact on the type of people we hire. people who want to work for i.t. , they think they have to work at google or amazon. you can do that at how -- at do w. please had an apprentice program going on for five years at 10 different sites. a lot of new people. skilled coming in with trades to work at the plants. it is a generational shift, a step shift in the industry. julie: i quickly want to ask about the cost cutting and that

effect on the workforce. you sound excited about hiring these new folks. i'm curious how the people in feeling, and how retention is looking amid some of the cost saving measures the company has had to take, amidst the spinoff? anytime you make a change, you will see some adjustments in the workforce. istead of using a word that very positive for investors and strike fear in the heart of employees, but it has been an adjustment. you are forming three companies out of two, there are some redundancies that -- redundancies in the work that gets done. but our attrition rates have not been higher than previously. our wages have been going up 3%, 3.5% through this. we are a skilled workforce company, so they are a little higher than the national average. ceo at theare the beginning of what i hope will be a long tenure. what you -- what you see the

biggest downside risk? concernede always about what happens with the global economy and with the consumer. if the consumer is healthy and spending money, if we are able to continue to build housing, if the government and everybody are building infrastructure, that is good for our business. if you see that slow down, you'll have to have some caution, but right now, you don't see that. david: it is a pleasure to have you with us. i want to break in with .ome craft-heinz numbers second quarter adjusted earnings, $.92 per share was the estimate. one dollar per sale -- per share. about $6.5 billion is what analysts are estimating. shares trading higher. organic revenue down. there was a report earlier today in the new york post that kraft heinz had recently started discussions with campbell soup,

exploratory talks is what they said, reportedly in the post. this is something the market has talked about, candle as a potential target. -- activistg up investor icon is set to oppose the express gripped takeover. ♪

emma: this is bloomberg daybreak

. coming up in the next hour, alan princeton university professor of economics and former chairman of the u.s. council of economic advisers. this is bloomberg. is bloomberg. david: we turn to wall street beat, covering three things wall street is talking about. cohen's ascent at goldman. disruptsinsky blackrock, leaving after 12 years. and karl i can rattles the -- cark icahn rattles the -- julie: joining us is brooke sutherland. stephanie: in -- stephanie cohen is the woman we are talking about, moving up the ranks very quickly. i'll be happy when we don't tell

these stories, that it will be commonplace for a woman to be in this type of exelon. but what is the significance? a it is significant to have woman, for one, and a person who is this young. 41 might not be considered that young in other parts of the world, but in goldman's management committee, she's the youngest one there. ceo,ses up to become the but i want to point out. it is notable that she is joining, but she's joining ex oficio. there's a bureaucratic asterisk which literally means, from duty, by virtue of office. which suggests that because she is goldman's chief strategy officer, she is added to the management committee, whereas she maybe wouldn't be otherwise. david: the speculation was that that was not to -- some men who were older, in line a lot longer than she was. perspectiveis

against that. how many women have been around goldman for a long time and maybe never made it? how do you think they may be felt, when they weren't necessarily reflected in that position? it is a step forward, but maybe more of a baby step. david: are second-story, mr. stravinsky will be leaving blackstone. known, in thel united states and in europe, always at davos. we know him well, very impressive guy. has had quite a career. is sorthe has, and this of the latest step in evolution. there's been this sort of turnover where we've seen legacy dealmakers, big names to allow room for new growth, new talent to rise up through the ranks. i think that is a healthy thing.

a lot of times, you want to take the company in a new direction, adapt to the market you are inheriting. i think that is what he's doing. david: and he has other interests. he's been interested in human rights issues, and he advises the vatican. he says he's not retiring, looking for something else to do. but he will not compete against blackstone. julie: which is a nice thing to say. says he has a lot of interests and places to go. david: he's very accomplished, so he will not want for something to keep him occupied. is pushing back against cigna buying express scripts, saying it is too expensive. julie: -- doesn't have to formally report it. both companies reported earnings over the last couple of days. cigna's earnings call, nobody

mentioned him by name and asked about this, which david and i are flabbergasted by. they asked about the possibility of investor pushback. when you say "j" that's just one person. : brooke;: they sort of dutch around. the cigna vote is august 24. if he is in fact going to try to get in front of this deal, he does not have a lot of time to make his case. i will say there's a couple market factors working in his favor. amazon's purchase of -- a direct scripts,o express which has a mail-order prescription service. and also, the trump administration proposal to end rebates that pharmacy benefit managers take a lot of their profits from. it is unclear what is in that

proposal. indication that express scripts profit model would have to be significantly rethought, that would raise --stions about whether buying what it really thought it was buying. onie: there were also doubts the market because express scripts is trading at a discount to the offer price. coming up, analysts, don't about the sexual thessment allegations on cbs called despite the stocks falling. if you have a bloomberg terminal, you can check out tv . click on our charts and graphics and interact with us directly. this is bloomberg. ♪

>> the cbs earnings call

yesterday afternoon rock that of in terms of anticipation, but in the end, it was pretty tame. cbs asks that analysts not even bring up the allegations of unwanted sexual advances by the ceo. still with us is brooke sutherland. the dog bit didn't bark. we were all waiting for this. that seems to be a running theme. thedy wanted to raise allegations -- i would say that it is a much bigger red flag at cbs. there's no reason that they should have not addressed it, and that analysts didn't ask the question. na callsack to an where companies are speculated to be in talks with each other. they always start off the talk talk we aren't going to about the deal. analysts still talk about the deal, they'll back into it and ask roundabout questions. so i think -- i'm stunned that

nobody bothered to raise the question. julie: sometimes companies will argue that it is not material. you can't argue that this is not at least potentially material to the business, if indeed the allegations turn out to have merit and there's some sort of management change. if he leaves cbs, that is material, i think you could say. david: even if it does not prove to be true and he doesn't leave, there will be an outside investigation hampering the company, limiting what they can do. it is going to consume management bandwidth, even if there's no merit at all. they just reported earnings and we're not talking about earnings, but we are talking about this, because it is what matters to this determines the fate of the company. and his battle with shari redstone. andd: -- involving cbs shari redstone and the

allegations and everything else. --s is a quote from a piece transparency and accountability. .bs's board has failed at both pretty harsh words. at this point, it seems sort of fair from what we know. brooke: it is fair. there's allegations that the board knew about the allegations for a while, and it raises questions of why they didn't do anything earlier. why didn't they preempt this, announce their own investigation? david: we will have to wait and read the book. coming up, alan krueger, princeton university professor of economics. ♪ economics. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots. and it can be included with your internet. which could save you hundreds of dollars a year. plus, get $150 dollars when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. ♪ david: where is my raise? experts predict that the u.s.

added jobs in july, but what happened with wages? secretary of commerce wilbur ross this the u.s. will increase trade sanctions on china until it is less painful for chinese to reform as usual. the bank of england announces a rear rate hike, but the pound the u.k.h the risk of pulling out of the deal is high as political risk trumps monetary policy. welcome to "bloomberg daybreak. did we mention it is jobs' day? >> i am happy to be here then down in d.c.s i am if you look at the movement we are seeing ahead of the jobs report, the 10 year yields

moving up to 2.90% and touched 3% yesterday as u.s. futures are not much changed. there is movement in offshore yuan with the dollar falling after we got movement from the pboc, which changed the requirement on fx that raised it to 20%, for the latest and the rejiggering of courtesy -- of currency policy between the u.s. and china. in responsed fell to the mark carney comments. it is back up to unchanged. it is time for your morning brief. it is jobs' day in the united states. numbersfinally get the for the month of july. at 9:45, we will get composite

pmi data and berkshire hathaway reported second-quarter earnings. itsill report second-quarter earnings. if julie: emma chandra is here with first word news. >> wilbur ross signaling more tariff pain with china. he told the u.s. has to create the situation where it is more painful for china. -- ident trump president trump's intelligence russian efforts to disrupt the election interferes with the kremlin's campaign years ago. bank of england governor mark

carney is back in the brexit debate. he told the bbc the chance of the u.k. dropping out of the european union is uncomfortably high. that implicates mark carney is more comfortable that theresa may will be able to get consumers to business. david: thank you. it appears china may have a response to wilbur ross saying we will increase pressure on china. china will be levying differentiated terrorists -- tariffs on u.s. goods. i take it means it is not the same rate. they are not crying uncle yet. julie: futures coming off their highs. into the jobs' day

mixed. this back-and-forth on tariffs. david: it is 27 minutes away. --nomist are expecting economists are expect thing that jobs grew. ,oining us is alan krueger former white house chief economist. you don't want to pick a number. are you expecting as robust a number? alan: that seems quite reasonable. unemployment insurance claims continue to below. the report that president trump tweeted about is a first talking about the adp report from the white house. all signs look like a continuation of what we have seen, which is jobs growing.

julie: i want to come back to the china story. as we mentioned, china will be levying tariffs on $60 billion of u.s. goods. and they said it will implement these tariffs as soon as the u.s. implements its measures. alan, there have been so much debate about the effect of all of this. but the implementation has not happened yet. how big of an obstacle in this --obstacle is this going to be? alan: that is part of the problem. we don't know what sectors will be hit and don't know how hard. how do companies make decisions about investing? report a the gdp tremendous amount of stockpiling, soybeans and other commodities. in the short run, that has a positive effect -- that had a positive effect. it creates more uncertainty, which is not good. david: but we don't see any hint

or evidence that employers about hiring. alan: uncertainty is coming at a time when recovery is strong. masked.it is being you do see reports of companies laying off workers because of the tariffs. david: general motors said it would hurt employers -- employment. alan: with changes in the fuel standards, they had investments in place. what the don't know situation will be going forward, so it is a double miami for them -- it is a double whammy for them. david: what rules to you follow? alan: that is the problem. it is multiplied, given the trade skirmishes with other

countries. ifie: are we going to see people are stockpiling soybeans? will there be a tick up in hiring. ? nonfarme beauty of the payroll report is that you will not see too much agriculture. premature for this to show up in job growth this month. david: let's talk about wages as opposed other forms of compensation. there is a chart showing this. you don't just get paid by cash. there are also benefits you get. what is the progress in that regard? is it going up or down and the united states overall? the white line is overall income and orange is wages and salaries. alan: what is interesting about

that chart is for a long time, benefits -- you saw were pulling up compensation because health insurance costs were growing so quickly. now, you see they are catching up. they are right on top of each other. and that is because health flowance costs starting to and it is beginning to pick up again. we will see a return to a more historic pattern. the other part of this is retirement benefits. and companies have been putting less money into benefit plans. they have been declining quite steadily. that has been pulling down benefit costs as well. note: if the income line is rising though, at what point does that become more of an issue for consumer spending? alan: soon. [laughter] alan: and that is been a challenge this whole recovery. consumer spending has been weak. and it is, who is getting the income? most of the income has been going to the top which has a

lower propensity to spend. david: you mentioned the 4.1% gdp number that made everyone happy. how sustainable is it? growth -- andwage how does wage growth drive that number? alan: i think it can keep up for another couple of quarters. i think that is giving a boost in 2018. i don't think the fundamentals are there to sustain growth at 4% or even three percent given our demographics and productivity growth. i think we will see a return over the next year to growth closer to the 2% range. in terms of jobs, certainly the pickup in economic output is related to growth and jobs. what i would like to see is where it is higher income growth

generating more consumption and more gdp growth, and we get into a virtual cycle. julie: i think a lot of people would like to see that, especially people like to receive a higher income. but how is that going to happen? alan: well, i think there is some prospect happening for some period of time. the longer this recovery goes on, the more that dynamic will take place. the more confident people will feel if we can get away from some of these policy disruptions that are causing uncertainty, and the more we will see income growth. we are seeing a gradual rise in wages. but the more the recovery goes on, the more we will see this dynamic ticket place. david: alan krueger, princeton university, will be staying with us. quality versus quantity. we're less than 30 minutes away from u.s. jobs' data. what kind of jobs are out there

to? julie: i wanted to bring in a couple more headlines on the chinese plans to implement tariffs on as much as $60 billion of u.s. goods. they will implement those parties as soon as the u.s. implement their own measures. they are aimed at curbing escalation in the trade friction. they are seeing it as a means to an end to get to the negotiating table. something that has not materialized as of yet. and a common saying china is being forced to retaliate as u.s. escalates it situation. so the rhetoric back and forth continuing here. from new york, this is bloomberg. ♪ bloomberg. ♪

♪ shares of times in premarket trading. the reported quarterly sales and profit that topped estimates. there is a report that kraft heinz is limiting talk about a deal. --y orchestrated toyota is preparing for challenges in the u.s. market that could be hit by a trade war. the japanese automaker is shopping -- for keeping costs in line. toyota reported quarterly profit that beat estimates. shed itsany sla prediction by 50,000 vehicles. tradern unidentified unable to cover losses. in one of the world #is cryptocurrency menus. the exchange was unable to cover

it shortfalls. that is your bloomberg business flash. david: every month, we focus on the numbers of jobs created in the wages, but could we be missing other measurements of the body of those jobs? that is what the senior executive -- sounds like to many -- too many seniors -- stephanie flanders who has written for bloomberg? stephanie, i found this piece fascinating? u.n. around the country and found people of -- and now people left behind. >> it was supported by 20 of the biggest cities in the u.k. what i was struck by having these evidence sessions,

everything was defined by mass unemployment. the solution was to else in that was economic prescription people were given. you go to northern england like sheffield, and they had a lot of employment growth. -- a lot of the social problems they had are with mass unemployment. it seemed like the quality of the jobs produced in the quality of the growth was not something we were capturing in the numbers. the quality of the growth of the u.s. as well as the quantity is what is driving the discontent. david: did you come across other ways of measuring this? >> the struggle for local leaders is it is hard to get local data. most of the local data is either nonexistent or very late. in general, you have a slightly

different problem where a lot of people have dropped out of the workforce. and there are people doing two or three jobs rather than one and people are not a satisfied. people feel like they are not going anywhere. it adds to the feeling of the deadbeat economy. julie: it adds to the trade and globalization issue. even though we may have an overall positive effect on the economy, the human effect is hard to predict. of do you tread that line seeing the big picture, and seeing regions and individuals for that matter? alan: economists in the u.s. have been concerned about growing polarization in the u.s. job market for quite a long time. the rise in inequality has been a top issue of my research and other people's research for decades. what are we -- what are -- we are seeing more diversions

across areas and it is not a matter of getting the macroeconomic conditions right. we have to address the hardest-hit areas. it is unfortunate when president obama proposed the fund to help the hardest-hit areas, congress did not follow through. it is not just one problem that is affecting camden or cleveland or david's hometown of flint from but it is a confluence of problems and we have to bring to of the tools available try to address these areas. this ato what extent is political issue, alan? it --is there a political will to address it? enormousis an political issue and a human tragedy. i think the solutions that we are pursuing may help a little bit in the short run. people feel like

we are doing something different, but i think it will be counterproductive to get into a big trade battle with our allies. stephanie: what i find interesting is that it is about the place. i have been pushing her economic reporters to think more about places and people and not just the numbers. there is also this feeling that some of the problems we have seen with low productivity growth is a bit related to this changing balance of power between workers and companies. we talk about the great profit margins and how they have managed to grow their profits, thathere is some thinking reduced competition among companies has actually contributed not just to the rising inequality, but the low productivity. so, it is hurting the whole economy. alan: that is right. we are becoming less dynamic as an economy. it is partly because companies have gotten bigger.

they have more market power in both the labor market in a product market. free equality, we are not seeing -- -- withour work franchisees that won't compete for workers against one another within franchises. alan: we are seeing a lot of practices restraining competition. one i highlighted with my colleague is most of the large franchise chains in the u.s. prohibited their franchisees from hiring workers from other outlets. there was a major achievement and that the attorney general from washington state, got seven of the largest fast food chains to agree to drop this practice. i don't think there is any sound business justification. julie: something you have paid a lot of attention to which is not

a traditional economic issue, but it is opioid addiction and the u.s. that has had an effect on the job market as well. one would think there would have to be more of a public policy answer is that of a market answer to it. alan: absolutely. and this crosses over to other areas. there is a role for public policy because some of this can about because a pharmaceutical practices. i know you have had on your show in david has been very involved in talking to people who are suing the pharmaceutical companies for their marketing practices. i think we are finally getting we ares around it and seeing a decline in positive tests for opioids, but we are seeing growth in other drugs. methamphetamine, for example, and we need to focus on the opioid crisis, but we need to focus on emergence -- on emerging drug issues. david: do you find a similar phenomenon in sheffield?

stephanie: we have a different medical system. even have dentists who can prescribe these kind of drugs. that is one problem we don't have yet. given the structure of the health services, i don't think we will see that. but this basic point, the problem that you are not seeing in the payroll numbers. it took a long time for people to realize what a national impact this was having. each area thought they were dealing with this alone. it started affecting the longevity of people in the u.s.. julie: stephanie, thank you. stephanie flanders of bloomberg economics, senior, senior. [laughter] julie: alan krueger will stay with us. coming up, the dollar is down. how will the eminent jobs data in fact it's next move -- jobs' data affect its next move? this is bloomberg. ♪

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usuallyurrency markets give us a first reaction to the job markets. we are about to receive those numbers and we welcome brad bechtel. and still on the set is alan krueger. brad, give us your preview. if we do get strong numbers, what will that do to the dollar? reporte had a strong adp and we had the fed statement mentioning the word strong handful of times or more. they are pretty confident on economy, so the company is looking for a strong result. bid tone it would add a the dollar. the dollar has been firm for a wi-lan should remain firm on the strength of the u.s. economy and what the fed is doing and everything going on in the world as well. midtone to a nice

the dollar for the remainder of the day hopefully. david: does it take away from the yen? -- theillion is the when yen is the one you usually look at. they are trying to battle back again some of the currency moves. in focus as well, so emerging markets, china. typically a strong reaction to rates in dollar-yen to risk on an risk off type moves. move, does the china that policy move tend to be sustained? brad: it can be to the extent they keep doing more and more and more. one off, it will be more disregarded in a way. it will impact the price initially, but then the market will say, what is going on? and then maybe test the resolve

of the central bank. clearly, the trade war rhetoric is heating up again. i think the market is too complacent on that issue. going into august, everyone is going on vacation and feeling a little relaxed. i think things are ratcheting higher and we could see more turbulence in the weeks to calm -- in the weeks to go maker did julie: the u.s. dollar has been growing sideways. between the u.s. and china, it seems as though china has more ability to use its currency to its own benefit with this back-and-forth between the two donations. alan: it certainly does and that would be the main economic response. i am curious what brad thinks about the $60 billion announcement on targeted tariffs. i am not clear on what they meant by differentiation, but there may response will be through the devaluation of the yuan.

brad: the currency is a reaction point if we are talking about 25% on 200 billion are there,ing up the tension the only reaction function they have is the currency to a large extent. they can nibble around it with the reaction but will be more in the currency than anything else. china has two options -- either back down or keep going on the currency side. you could see that the currency what thened beyond dollar is doing, so they can no longer point to that as the catch up. they are weakening beyond a normal catch up at this stage. julie: if we continue to see this job growth, do we see the dollar stuck in a range here? brad: probably stuck in a range

with a slightly mid-tone. it will keep us firm is my belief. if u.s. rates grind higher, it will put pressure on emerging markets, which will give the dollar some strength. well.n should weaken as the dollar should remain firm. but probably range down. we don't have a catalyst to take us higher. we still have a large deficit issue in the u.s. bechtelhank you to brad of jeffries. alan krueger staying with us. just a quick check on the markets. we did see futures take a hit on the china retaliatory tariffs. .1%. gaining looking at the 10 year yield that we have seen moving around. remember yesterday, it touched 3%. now it is at 2.98%. david: we are going to move on

down the washington, d.c. jobsrojections are 193,000 with a 2.7 entries. michael, we are going to you next in washington. michael mckee. michael: a downside surprise to the headlines hiring number. the report is begged on consensus. average hourly earnings go up 2.7% unchanged from june 3 unemployment ticked down to 3.9%. more than 600,000 inches the labor force in june. 14,000 jobs lost in education with kids out for the summer. one could be the demise of the retailer toys "r" us. 31,800 jobs lost.

trump tariffuick numbers here. primary metals terrell, steel and aluminum companies lost 700 jobs, but metal fabricators of steel and a moment gained 5100. coal was unchanged. by fifth 2000.f utility jobs of by 5200. us isbor market telling it a steady as she goes. missedthe one thing we has last month's revision. it looked like they took it up. do i have it right? michael: it looks that way.

we had the seasonal variations. when we get the seasonal numbers, that number will be revised again. it is the case of the labor market being very strong. you get these monthly seasonal variations. the toys "r" us numbers back in. and you are up to almost 200,000 jobs. david: we will be coming back you to look into the specifics of the numbers. alan krueger, i want to bring you back in. what is your reaction? alan: this really is a solid report. i don't think there is any reason for alarm when you look at the top line number. the private sector is up 170,000, and the numbers will be volatile month to month. we will eventually see a ratcheting down around 125,000 and month given our demographics and what we are doing with our immigration policy and the aging

workforce. linenk this is a report in with all of the other economic indicators that are coming in. julie: as you say, nothing to be worried about, but nothing to be excited about. average hourly earnings have a .3% gain. a 10thor month was just of a percent gain. wait growth is not heating up -- wage growth is not heating up certainly. alan: this is consistent of what we are seeing from the other wage measurements. another reason you may be less excited compared to last month is labor force participation did not continue to rise. there were a lot of people that thought a lot of people would be coming back into the labor force. i don't expect to see that happening in this recovery. david: you say eventually, we

will have to go back to 100,000 a month. what is eventually? alan: i think that means soon. -- i said that two years ago. with the unemployment rate, it is hard to see where the job growth will comes from. david: what it all of us miss? what did not we understand about the underlining economy that we now know? alan: one of the things we missed is that the unemployment rate got below 4%. it wasn't so obvious at 6%. it is just a matter of looking at where the labor force could come from. unless we change the workplace to make it more hospitable for groups that are out of the labor force, a lot of folks had been participating and have reduced their participation. i don't see where the workforce will come from. julie: it seems like there was nothing in the report that would change the fed trajectory,

right? alan: right. i think the fed look at this a part of the broader picture they are looking at. it may be got a little optimistic last month when labor participation grew. addition toe low labor force, that will cancel it out. david: what do we know about various sectors, like manufacturing, which had been doing quite well? brad: we added a lot of jobs in manufacturing and it has continued along the same lines. construction jobs rising by a significant amount. one area in which we did see a larger rise in compensation, wages for construction workers up 3.1%, which is running ahead of others because companies have reported they have not been finding workers to build houses. we have seen a decline in new home construction. when does that feed through into other areas? manufacturing, it

does not seem to be any kind of impact in the data from the trade wars. thing abouther construction, that is an area where the economy got really tight. it was a fairly elastic sector. given the administration's position on immigration, is that discouraging the work for illegal immigrants? michael: it is something we had been hearing anecdotally. it is harder to find manual laborers, particularly for construction. why could be a factor as to we wages going up in that category. but they are still attracting people in that sector. right now, bayer able to fill that -- right now, they are able to fill that. julie: back to the discussion of the quality of jobs. butt of people have jobs,

what about job satisfaction? as much as we can extrapolate from the numbers, when you have -- relative to some of the other groups, what can we sort of gleam from these numbers about the quality of jobs? make too muchnot at one particular month. this is part of the pattern we see at the end of the business cycle. we see construction offering opportunities for often less skilled men continuing to expand. ladies in the business cycle, we have seen companies reach out to less qualified workers. this looks to me like a continuation of a high-pressure labor market. julie: alan, great to have you.

alan krueger from princeton and michael mckee in washington. let's get update on what is making headlines outside of the world of business. emma chandra is here. >> thank you. china is ready to retaliate if the u.s. goes ahead with tariffs on chinese products. beijing plans to lead the tariffs from 5% to 25% on about $50 billion worth of u.s. imports. china is trying to keep trade friction from escalating. singapore for in a regional summit that will spotlight challenges involving north korea and iran. the u.s. must keep pressure on both. north korea has been attending these meetings sense 2000. they will join a special prominence this year following the summit with trump in june. aere ran just signed friendship pact. enter reason he takes another step to get a brexit deal. she needs with french president and metal macron at his vacation home.

u.k. officials say they are working on a new proposal. i'm emma chandra. julie: thank you. just wanted to recap the jobs' numbers. more than 160,000 jobs added last month. below the 190,000 consensus, but we had an upward revision from june. that is something to keep in mind. the unemployment rate holding steady at 3.9% and average earnings, rising year-over-year at 2.7%. we do see futures coming u.s. futures coming off their highs of the session perhaps on the headline number coming in below estimates.

they are still hanging onto a gain, but barely. david: coming up, the truck driver shortage. trucking companies are having trouble finding drivers to higher and the fed is concerned. that is coming up next. this is bloomberg. ♪

♪ >> this is bloomberg daybreak. i'm emma chandra in the green room. .oming up, the open

this is bloomberg. heineken hopes it has found a way to grow hops in the chinese market. they have taken a three point billion dollars stake. the world bank of scotland has unveiled a plan to pay a dividend a decade after its government bailout. it's payout is still subject to a final agreement he is regulators. dividend ford the the bank. blackstone's international dealbreaker is calling quits. he is ready for new challenges after 12 years at the largest private equity firm. the group of managers is moving up at blackstone. another -- a number of veterans

are moving on. julie: thank you. hiring cold in july with 150,000 jobs added last month, less than estimated and down from a revised number for the month of june of 248,000. the jobless rate ticking down to 3.9%. one industry having a hard time finding workers is trucking, seeing a historic labor shortage. trucking's 25ned times in its report. is a fed reporter who has been looking at this issue of trucking, which has been affecting a lot of types of industries. we have heard companies from walmarts to trucking companies talk about it. why is this happening right now? part of it -- >> part of it is a demand story.

folks withof these shifted to an online model. on the supply side, you are seeing their are not enough people getting their cdl acenses and willing to work hard job with not a lot of pay. there does seem to be a disconnect because wages have not been rising all that quickly. they have been going up, but not what you expect to see considering the widespread shortage. david: why is the fed exceeded on trucking? >> what you are hearing is respondents from the region talking about what they are dealing with. what we can -- but we consistently here is bottlenecks in trucking are holding back businesses for everyone else. this is not just a sector that effects immediate employment in this industry, but has ongoing effects that extend throughout the rest of the economy. david: thank you so much.

good to have you here. one trucking company expecting that driver shortage first tennis u.s. express, was started is u.s. express the started offering bonuses. eric fuller is with us. how hard it is to get the number of truckers you need? eric: we are seeing this situation continuing to deteriorate. 4% ofhave gotten around employment, we have found it difficult to find people who are interested in coming into the industry. right now, trucking is one of the least desirable jobs out there. we are competing against manufacturing and -- and construction. that is pulling our pool of potential applicants away and into those industries and away from trucking. david: what is that doing to wages? eric: driver wages make up one

third of our total cost. and so, it could be very costly to increase wages on a larger level. and you typically don't get that back from the customer. it is my opinion if you have to bring new people into the industry, you probably have to be closer to 20% or 30%. julie: michael mckee just emailed me with a number of trucking jobs added in july. 4400. i think the last number we had for the trucker shortage was nearly 300,000. taking and little tiny bite out of that overall shortage. wages,f you cannot raise as we have been talking about, trucking is a hard job in younger people are not getting into it. it is mostly an older workforce. how do you make it more appealing, if not waging -- if not raising wages? we have jobs we pay

$80,000 a year that we cannot fill. part of it is lifestyle. if you look at the newer generation, there is less and less people wanting that lifestyle. they live on a truck for two weeks at a time away from their family and friends. we having to change the job. that means getting people home more often, making jobs more localized so they can get home at night. and that means the customers are going to have to change their expectations. at this point, we are starting that migration, but i think that will be something that will be very tough to do on a large scale and for quite a while. david: talk about the migration because if you are sure 300,000 truckers as an industry, that means there isn't much getting shipped on trucks. are you losing market share to other means of transportation? eric: that is not what we are seeing. 71% of freight in the u.s. goes by truck. there could be a small percentage that gets moved via train.

but for the most part, we are seeing the demand levels are continuing to go up. and people are willing to be a little bit more patient on their expectations. you look at large shippers with a had expectations about moving freight one or two days. maybe they are now accepting a three or four day transit order to get capacity. addition to this pressure on your industry, you offer a window into the u.s. economy. you ship a lot of stuff all over the country. shipping rates have gone up because of the trucker shortage. our clients willing to pay it? so far, you have been able to pass on some of these costs. eric: we have seen rates go up. also, we have seen shippers are now moving potential -- are moving to a potentially dedicated model. thing is instead of having a one-year contract were maybe the rates are variable, customers are willing to lock in a long time three to five-year rate because they are concerned about capacity.

we have seen customers who have never used this model migrating to this model because they are so concerned about financial capacity. david: eric, how do you find demand for your services? how much shipping is going on in the country? eric: extremely strong. we could double the size of our company overnight if we had drivers. drivers are the limiting factor. julie: is there any see-through at all -- are there any concerns from the tariffs? there are pretty high shipping rates, right? when you have a potential trade war looming over. eric: you know, from the equipment side, we see it a little bit. we are big purchasers of equipment for trailers and tractors, but from a shipping standpoint, we have not seen any effect from the tariffs at all. david: ok, thank you very much. that is eric fuller, u.s. express' ceo. julie: coming up, what can go

wrong when the boss is a company's biggest weakness? more on many examples of this in the next couple of weeks. viewersmber, bloomberg can interact with charts on the bloomberg. you can save chart for future reference as well. , some of the it charts he recently looked at, including workers at chemicals and plastics companies. from new york, this is bloomberg. ♪ berg. ♪

♪ julie: welcome back. it is jobs' day. let's get a recap of these

numbers, which show the next picture. 150,000 jobs added last month. that was worse than the 190 -- 190,000 estimated. but we saw a higher revision. that could offset the disappointment. 3.9% for the unemployment rate. and average hourly earnings at 2.7%. we are seeing futures that had come down a little bit after we saw these numbers, but now just flat here. it will be interesting how it plays out. david: if there are 157,000 jobs, there are more jobs for entering --are more jobs for people entering the workforce. it is real wage growth. there is good news in those numbers. julie: i like your optimism. david: half full. besides those numbers, the key man risk.

when they falter. keye: in fact, this is a theme of this week's issue of " bloomberg businessweek." they said, how can we tie these together? and key man risk is the idea. les moonves, one of the big examples of this. david: terribly successful for cbs for many years. this man really put cbs on the map. now, he is under question with investigations going on. we don't know the truth of the allegations. at the very least, it is a distraction. julie: and one that the company refused to address on an earnings conference call. john schnatter is an example john, although

his image is not on the company's pizza boxes. ousted as ceo and chairman of the company following races comments he made. he built the company, right? there is the key man risk there. falter, it cany be that on the way down. next on "bloomberg markets," with jonathan ferro, larry kudlow, rick minter a black rock and greg davis of vanguard will be right here with jonathan ferro. live from new york, this is bloomberg. ♪ bloomberg. ♪

jonathan: from new york city, 30 minutes until the start of trading, this is the countdown to the open.

jonathan: the jobs report reinforcing labor market growth in line with the fed outlook, the gradual hikes. over ross warning of more trade pain for china, china preparing to retaliate. feeding the yuan weakness, authorities stepping in, stabilizing the record losing streak. 30 minutes away from the opening bell in america, the futures situation set up as follows. negative by not even a single point. u.s. dollar 115.96. the dollar story turns around and treasuries yields a life at a single basis point. we begin with the payrolls report, the economy adding a weaker than estimated 150,000 jobs. unemployment rate falling back. the anna kruger economic