>> welcome to the bloomberg audience. i am mark crumpton. ukraine is criticizing report from amnesty international that says that the military is endangering civilians. it follows troops setting up bases, and doing it in residential areas, including schools and hospitals. woodmere zelinski says criticism of his military's defense aids russian terrorists. the white house is touting a jobs report. more people are working than any time in american history. he says it is the result of an economic plan, but there is more work to do. speaking to bloomberg television, marty walsh echoed

that sentiment. >> most of the economy has recovered. companies are all returned, so it shows good gains. we have good wage growth. there good areas with manufacturing for that is one of the areas not just coming back pre-pandemic, but beyond that. >> u.s. secretary of state marty walsh -- antony blinken, and a russian foreign minister say they are willing to talk about a prisoner swap involving wnba star brittany greiner and other jailed americans. the diplomat spoke on a sideline in cambodia. a day after a court sentence them on drug charges. the president called this unacceptable. global news, on-air, and on quicktake, powered by 2700 journalists and analysts in on -- in over 120 countries.

i am mark crumpton. this is bloomberg. >> welcome to bloomberg markets. >> as we always say on this program, we have to get it quick check on these markets. as you can see, some of the big lows of the session came after that jobs report. since then, we are climbing our way back it we are on the s&p, and nasdaq is the big underperformer. it gives a huge move in the yield market. take a look at this. the yield is higher. on a two-year yield, we are backup 19 basis points to it. as mentioned, we continue to talk about the duration and magnitude of the inversion. -40 basis points, but still as inverted since august or september of 2000. as we continue to watch those

broader market realities, it is a jobs ryan day. canada is out with numbers as well today. however, a different story with job losses for the second straight month. 30,000 jobs percent. that was expected. we saw gains of 43,000 in june. now there are two sides to this. on one side, higher interest rates could have a cooling effect on the employment side, but we did not see change in the unemployment rate, so that could feed into the idea that the bank of canada can continue on the rate hiking cycle. >> a totally different story, when you think about the u.s. jobs report it are labor secretary spoke to bloomberg earlier. really, about what the report means for the economy. >> were think about where we are today. it is gravel. in my opinion, that will be sustainable, moving forward.

there is a new type of economy, and we are dealing with inflationary pressures rid we talked about it before we got on the air. we heard the talking, and we will adapt and adjust and move forward. >> let's dive into at the numbers mean. what it means for the fed. we'll do that with our international policy correspondent. wow. what do you make of these numbers. >> who knew that joe biden could do an irish jig. >> he woke up and saw numbers. it was good for the president who is struggling with the economy for a while. 558,000 jobs were created in july, that is more than double the amount it was expected, and certainly up from the month before. this matches the january 2020 high, just before the pandemic the average hourly warnings -- earnings are at 5%, and they're still getting paid, even though

there are job vacancies out there. payrolls have top january 2020 pre-pandemic high by 32,000, so we have gotten back the jobs that we had lost. we have not caught up to where we had been if there been no pandemic, but were back to where we were. >> in the market, we take that news, and we try to figure out where interest rates go from here, but as you told us for a long time now, certainly for the last couple of weeks as we digest that, we are data-dependent. we are awaiting a key decision on inflation as we head into next week, as well. >> it's going to be one of the premier numbers of the month. even more importantly in this case, job numbers, because they tell you the economy is in good shape, and they can withstand rate hikes. inflation numbers are going to be what the fed makes a decision on.

we have cbi as mentioned. pce at the end of the month, and another cpi coming up in september. before the fed meets. a lot of inflation data to come, and that's what you want to keep your eye on, going forward. trying to figure out what the fed will do. >> will be knocking on your door. will make sense of it all. thank you as always. let's continue this conversation. we are with a chief economist. you have a new slogan for the economy. stronger for longer. walk us through how you would characterize this. >> first of all, it is time to shelve the recession narrative. at least for the next three to six months. i think growth is accelerating pretty significantly in the third quarter. nominal spending and nominal -- nominal income is never a problem. real growth has been squeezed in

the first half of the a buy price shock, and that has faded. i'm not suggesting that inflation is going down, i don't think that's the case. i think it will plateau at 4%. that is largely because of what is happening in the labor market rid between now and then, we will see a pretty significant slowdown. i expect this to be up just 1/10 next week. it is on track to contract in august. this is happening at a time where obviously, we are seeing strong income gains from wages and unemployment. real wages and we'll -- real income are turning positive. sequentially in july, it is only a three month basis per they will trend by september, and we have not seen that since last summer. again, it is a major driver of the week, in the first half of the year. it is basically reversing and accelerating over the next quarter, at least. >> talk about the stickiness of

wage gains and the big employment gains you see. does that solidify how sticky and not transitory inflation really is. >> absolutely. i think the july numbers may be were a little exaggerated. we heard some anecdotal evidence going into the numbers, that a certain company was actually implementing wage increases to compensate for the increases in the cost of living. that is not likely to be a. you may not see another 5/10 next month, but certainly, we are seeing wage pressures across the board. it is an all sectors in july, with the acceptance -- with the exception of technology. a very broad based wage gain. at the same time, has been very weak. labor costs are obviously very elevated. we will see another increase in unit waiver costs next week. all of that tells us that there is no way that inflation can

return to 2% without the fed, at some point. not only with job openings, but jobs. wages tell us where inflation is going to be next year, they don't tell us where it will be in the next three to six months. i think it is those numbers that will be much more important in driving the fed -- fed decision. we'll watch that closely. obviously, when asked, in the most recent decision, jay powell said that no. there is a shifting narrative. does it have to change away from those who were suggesting about a recession? >> absolutely. i don't think that we were in a recession. we have not seen those employment losses.

spending while they soften, they have not contracted. industrial production has not shown sustained contraction. none of the hallmarks of recession are here. earnings have been ok. profit margins have expanded. and so, none of the hallmarks of the recession, none of the characteristics of the recession are with us, so i think, a recession is going to be inevitable at some point. i think it will be the price we have to pay for returning price stability, but i think it is still probably 12 months away. we need to see margins squeezed. we need to see more pressure on profits and balance sheets before corporate actually embarks on a major cost-cutting and layoff cycle. of course, were not seeing any evidence of that, today. >> we really appreciate that, as always. of course, over there, we are really trying to digest a huge payroll support here in the united states.

coming up, we are going to digest some other big headlines. yesterday, the u.s. declared monkeypox a public health emergency. we'll talk about how to stop the spread. we will do that with the ceo of a genetic sequencing company. that conversation is next. this is bloomberg rid --. buried in receipts, invoices and other paperwork that's preventing you from doing what matters most? then get the all new epson rapidreceipt smart organizer to scan, digitize and organize your documents and receipts. paper goes in and stress goes away. it's the

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>> this is bloomberg markets. i am taylor riggs. u.s. health officials have declared monkeypox a health emergency. really, dear raising accuracy to fight the buyers. it is demand for a vaccine, outstripping supply. joining us now is the ceo of a leading genetic sequencing with companies working on those vaccines. there are therapeutics. we are wondering how you see the sequencing platform in your company helping to provide some of those vaccine makers in the midst of elvis. >> the role of this inviting and outbreak is meaningful. we identify and outbreak early, wherever it is happening around the world that we can identify

that the upright is happening. there is a pathogen causing the operate. there is coronavirus, monkeypox, tb, there is emerging microbial resistance or a terrorist attack that allows you to talk about the pathogen causing the operate. but that is the information we then give to the companies created with the diagnostic tools to test for that pathogen written also allows us to give data vaccine manufacturers and therapeutic manufacturers, so they can come up with additional tools to fight the outbreak rid after that, you can track how the virus is spreading around the world, as well as how it is you taking. if the tools we are using to fight the pathogen, the diagnostic tools, the vaccines, the therapies, if those will can to you to be affected, or they need to be modified, that is the role of a global genomic based pathogen network.

>> we got to see that firsthand with technology, being used with the likes of moderna, during the operate. they are creating a vaccine. how is technology being used as people look for answers on the fly to solutions for monkeypox -- lucky box. in the covid outbreak, we were out there in china, sequin gene the pathogen. that data was then used without the pandemic. that data was also used to create a test and diagnostic to diagnose of people have the disease. that same technology, which were aber -- able to rule out, around the world, is being used for other outbreaks. it is being used in the fight against monkeypox, so we have countries around the world that are using our sequencing technology to see if they have

monkeypox in their countries. today, about half the countries, so 80 countries have identified him he box. about half of them have already started sequencing the virus and publishing the data. >> i am curious to know, how much more complicated is fox virus compared to the spike protein which was easy to identify with the coronavirus. >> they are all very different. what we are tracking is where are those spots on the virus. you want to target a vaccine, so what you are looking or is it art of the virus that is unique to this virus. so that it will not inadvertently have eight side effect against the dna and rna in your body. what you're looking for is where on this virus can you find a part of the virus that is unique to the virus, but also stable. you want to make sure you will not mutate very often, and it

will render things in operable. you need something stable, but something unique as well. >> decisions ultimately are made based on technology from companies like yours. policymakers, lawmakers, countries. they also to think about the road ahead. the early days of covid and the hard decisions to make on travel. what do you think it looks like on things like travel bans. x you are right. this data is used to make policy decisions. i will give you a decision -- an example. in the early stages of the operate, if you are sequencing, you would notice that the virus entering your community is coming from the outside. a strength coming in from the outside. at that point, it cannot be very effective because you can block virus from your community. but if you start to notice local spread, it is already spreading the community.

at that point, travel ban is not effective it it is essential in driving policy decisions. when we enact things like travel bans on countries, we need to think about sending a country for the operate, because the travel ban can be difficult in the economy of a country. when we do a travel ban, we need to think about things like can we combine that with a surge in funding or vaccine or therapies, so we are creating an incentive for a country to a hand up and say we have an out happening. if you penalize countries that report they have an outbreak happening, we create a disincentive to make it difficult for those countries to report rid >> helpful. thank you for joining us. coming up, amazon has its own home robot rid wide by rumba maker. we'll explain. this is bloomberg.

>> this is bloomberg markets. i'm with taylor riggs. time for what it's worth. how about $1.65 billion. that is how much amazon is paying to acquire irobot. the creator of rumba robots. it sold 40 million home robots over the years. amazon already has lots of robots in the warehouse, so why do a deal like this? let's ask our bloomberg intelligence team member. she joins us now. nice to have you with us. what is your reaction to this deal? >> it is just one of those things that amazon does for they want to enhance their home offerings and automation within consumer homes. you have an echo and an echo device. you have an amazon security. so why not have the rumba, integrate with alexa.

just own the home space when it comes to automation. >> i'm confused. i thought there was an administration that was anti-big tech and anti-amazon, according to the ftc chair. >> they've been inquisitive. they are acquiring the largest in the last two years, but this is fairly small. 1.6 5 billion dollars. they can do this. they have the funds to do this. will they care? that is a question i cannot answer. >> i'll throw in at you. hopefully you can answer this. you obviously keep a close tap on what's happening in retail. generally speaking, could you see this outside of having more interaction with other amazon products in the home with the opportunity to row retail business through a deal like this area >> yes. it helps, but amazon does $600

billion on its marketplace. buying a robot or rumba is not going to be neil moving. no item can move the needle. but it does help. the more they can broaden with a cell on their space and on the product, and c integration, that is key. not selling out of it if the rumba is connected to alexa, that's one more device where you can access alexa and do more. they are keeping it top of mind, getting comfortable with shopping and activation of devices. it is integrating the experience and i think that is key. >> are consumers comfortable with the datasharing behind it? >> they are buying. the echoes of alexa are still selling, so you always have some customers that are comfortable, but they are showing in people's homes, and people are adapting and like them.

>> really quickly, this is obviously a time where amazon has been doing quite a reset. they have talked about going back a little bit on their spending. how do they integrate this deal with also appeasing investors on some of the other things they told us about after the results. >> this is not going to require a lot of spending. this already has infrastructure in place. it is in an adjacent investment. when they talk about this, they said they are spending on cloud. they are spending on vehicles. on the retail front, they pulled back. >> we appreciate it. so smart. of course, you joined us to their. we join together to try to going forces, and it went green. he only looks at the s&p 500. firmly in the red, but off of the big lows we had earlier this morning, particularly with the futures from 8:30 a.m., and a

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>> keep you up-to-date with news from around the world. here is the first word. i am mark crumpton. president biden is a prodding a july jobs report. speaking from the white house, he said that more people are working than at any point in american history. today, we received another outstanding jobs report. 528,000 jobs were added just last month through employment. 528,000 jobs. we have now nearly doubled, almost a 10 million jobs. almost at 10 million jobs since i took office. >> the president added that jobs growth is the result of his economic man, but he