i'm john ehrlichman. kriti: the stock market is down two point 5%. the nasdaq is down almost 4% on the session. coming back from jobs day, good news for the economy, bad for the equity market. a gain of 8000 jobs, yields up only 4%. -- four basis points, excuse me.

stocks and bonds are selling off. the dollar edge -- is marginally higher, stronger by .2%, but not translating into a weaker commodity story. brent crude trading at a 98 handle up almost 4%. let's go to president biden in maryland is speaking about the job support. president biden: it has been the fastest increase of people reentering the workforce of any modern economic recovery. there is something else. our job market continues to show resilience as we navigate this economic transition. for some time, i have been saying that what we need to do in this transition is to move from historically strong economic recovery to more steady, stable recovery. we need to bring inflation down without giving up the historic economic progress working-class and middle-class people have made. that is what we are seeing. over the past four months we

have created an average of 350,000 jobs per month. that is down from the 400 50,000 jobs per month the prior four months and down from the 600,000 jobs per month the four months before that. the pace of job growth is cooling while still powering the recovery forward. wage growth remains solid, down from a historic high pace months ago, but still growing for workers that deserve a raise and this is the progress we need. short-term, transition to more stable growth continues to deliver for workers and families while bringing inflation down. long term, the economy will build on a firmer foundation. we still have a lot of work to do. we are building a different economy than before. a better one, a stronger one. not a trickle down economy. that never helps my family very much. this is an economy built on building from the middle out and

bottom up, not the top down. when that happens everyone does well. the middle class do well and the wealthy do very well. they are not hurt at all. that is the economic division i offered -- the economic vision i offered to america when i ran and i am pushing it now. i want to talk today about how our republican colleagues have a different view and i know many of you are probably republicans. many of my republican friends are arguing that good news for the economy is bad news for americans. as if they are rooting for fewer jobs and lower wages. that is all part of a trickle down mentality. that says, it does not matter what is happening in the main street. what matters is wall street. if wall street does well, everybody does well. i noticed that the past four years we were not doing that well and wall street was doing well. it is not my plan. we continue to grow our economy

in a sustainable way. we can build on an economy that works for everyone. today, we will do something that my republican colleagues in column -- congress don't want us to do. they love to attack democrats and say -- for what we have done. but, they really do not want to see their plan. i doubt any of you can tell me what the republican reelection plan is this time. what is their platform if they take control of congress? we will start with inflation. let me tell you how i think about it. i think about how my dad used to talk about it. my dad was a well read guy and his biggest regret was he never went to college. when coal died everything died with it and he moved to claymont, delaware, a little steel town. but it is the way people at home talk about it around the kitchen table.

we have enough money to cover the bills for the month and all of the necessities. if we do that, do we have a little breathing room? just a little bit after that is done? enough to not worry. that is what we are trying to do. give families a little breathing room. that is what we have done. we passed the inflation reduction act. that name does not matter for a lot of people, but it will give medicare the power to negotiate lower prescription drug prices. we pay the highest drug prices of any developed nation in the world. this will limit out-of-pocket cost for people on medicare, someone with cancer their drugs might cost $14,000 or $15,000 a year. prescription drug procedures cannot exceed $2000 a year even if it is $10,000, 20 thousand dollars, $30,000 they --

$20,000, $30,000 seo. it will cap the cost for seniors on medicare. how many of you know somebody with type 2 diabetes that needs insulin? it costs a lot of money. a lot of money for children. i was in virginia not long ago. a woman stood up and said, i have two kids with type 2 diabetes. we have to break up what we have. we don't have enough money. if they did not have insurance, they were not covered. guess what? how can you look at your child knowing they have type 2 diabetes and there is nothing you can do about it. that is not a joke. this is the united states of america, for god's sake. with the bill i introduced, it said we will reduce the cost of insulin. by the way, the cost to make that insulin, it costs $10 to make it and package it. $10.

they are charging as high as $650 or $700 per month for it. the bill i introduced originally said we would take care of everybody on insulin and my friends on the other team were able to get enough votes to knock that out for anybody but seniors. we have locked in savings and health care treatments for millions of people on the affordable care act. one of the things people forget about the affordable -- is before the affordable care act anybody with a pre-existing condition could not get insurance. they could not get insurance if you did not have a lot of money for a private policy. we guaranteed people with pre-existing conditions can have insurance. may be a family can save thousands of dollars in energy savings. we will invest in jobs.

for the first time in a long time, we will make sure the biggest corporations pay their fair share of federal taxes. kriti: that was president biden speaking in maryland. the market is continuing to sell off. the s&p 500 is down 2.5%, a reaction to the jobs story earlier. 263,000 new jobs added in september, 255,000 was the estimate. michael mckee is our international economics and foreign policy correspondent as well as an along joining us in studio. thank you for joining us. michael, going through the details of the report, wall street is interpreting this as good for the economy and bad for the market. what stood out for you? michael: in the unemployment rate falling to 3.5%. a big gain in jobs in the household survey, a big decline in unemployment in the household survey is contributing to that.

it shows the fed will not get demand it down in the economy as quickly as it might have hope. however, we did also see the average hourly earnings drop a little bit, may be, because the biggest job gains were in lower paid, lower wage sectors. overall, it is sort of a status quo jobs report. john: an important point for everybody watching where wages go. anna, one of the points you made today is looking at not just who is in the labor force, but who is not and how that is contributing to the compensated story here. can you walk us through that? anna: the concerning thing about today's job report is that the labor force actually went down. that is concerning because the fed had counted on a flush of workers to place downward

pressure on wage growth. what we saw today is that hope might be misplaced. we had estimated previously that even without the pandemic, the participation rate should be around 62.5 at the end of this year. we are close to that already. this just means the fed will have to do more on the demand side to bring down inflation. kriti: i think we are at 62.3 at the moment, very close on the labor force participation rate. what does this mean when it comes to what the federal reserve will do what the maxed -- next meeting? it is 75 basis points on the table for that november decision? anna: this seals the deal for 75 basis point hike. john: we just heard comments from president biden talking

about progress on wage growth. we had a comment from the president about a main street versus wall street. obviously, the question going forward is whether or not inflation cools. if it does not, and today's report is evidence of that, what kind of cushion people ultimately have in their pocketbooks. this will clearly be a continued conversation as we move towards midterms. michael: right now americans have some money in their pocketbooks. most americans got extra payments last year under the covid release programs. a lot of that is still around. so, they are able to weather the downturn or the tightening we are seeing so far. reasonably well. we have not seen a big drop in demand. the fed is waiting for that. one thing they have to do is bring the unemployment rate up. fewer people earning money to keep spending. but, at this point they are ok. the question is, what are their

perceptions? the question -- problem for people running for office in november as we do not exactly know where gas prices are going from here, but probably up. even if other categories of inflation start to fall and we don't know what we will get next week in the cpi report, if it shows progress on inflation but people are still looking at higher gas prices, it will look like inflation did not go anywhere and it will not be as good of news to americans. kriti: we know that technology companies have been pulling back on some hiring and increasing some layoff plans. outside of technology, are there sector trends we should pay attention to? michael: it is hard to say there will be trends, but we saw a big rise in unemployment at restaurants and bars. they have had a hard time finding people. they did not want to come back and work a lower wage job that is very difficult. same with home health care

workers. we are seeing some more jobs created in the help wanted temporary services areas where maybe companies are reluctant to put somebody on permanently because they want to see how things work out. we did not see a big drop in real estate overall. even though, that has been a hard hit sector. except for mortgage brokers. they are losing their jobs fairly quickly. kriti: that is something we will keep an eye on especially as we get more information around wage growth. bloomberg's michael mckee and anna wong. thank you for your time and insight. chipmakers saw a drop in demand as fears of recession loom. the biden administration has new restrictions on a chip exports to china. we will bring you the latest next. this is bloomberg.

kriti: this is bloomberg markets. i am kriti grouped up. --gupta the biden administration announced new restrictions on access to chinese semiconductor technologies. joining us now is mandeep singh of bloomberg intelligence. this move in the broader market. chips were down under pressure to the tune of 5% and some of the heavyweights as well. a lot of this is cyclical demand. about one year ago, this was the macro hedge because it was a play on inflation and supply chain issues that have really not gone away yet. where does demand go? mandeep: there are certain pockets within semiconductors where the demand has really

fallen off the cliff, if i can use that analogy. when you look at consumer pcs, it looks like there was a big push forward during the pandemic and that is the pocket getting hit the worst now. a mp3 announced last night and they took their guidance down almost 3% in the client segment. intel took the client side down by about 5 million. amp took it down by one billion. we think it will be another one billion for 4q. you can see a compression in pc unit expectations by 50 million or 60 million already. john: whether intel, nvidia, burning through the stockpile. the story for i a lot of investors will continue to be, what is happening with the bottom line? what do product margins

ultimately look like? even though these names are getting hit, there seems to be a consensus that a company like amd is in better fighting shape than intel. mandeep: amd despite taking down guidance last night will still grow 40% this year based on our calculations. next year they will outgrow the overall semiconductor market growth. intel on the other hand, they will be facing declining sales this year and probably they will be flatish next year. they are losing share at this point in time. the big pockets of growth remain a data center, cloud, and auto. those are the main areas where chipmakers now are seeing a lot of growth. that could change. i think there will be a phase where you could see a capex slow down on the loud side, but we have not seen that -- the cloud

side, but we have not seen that yet. kriti: now the geopolitical part. from the margins perspective, american-based names are not seeing as much as samsung, which overnight reported a 32% decline in operation margins. factor in geopolitics, export restrictions, maybe one day import restrictions as we talk about manufacturing capacity in this country getting built up, how do you price that in to a sector that is still very much in demand? mandeep: i think the gross margin in semis, names like nvidia have 65% gross margin. that is software like. that is primarily because they were outsourcing, focusing on design work. but if you have to have a lot of that fabrication done in the u.s., that will drive up the

cost for someone like nvidia or amd. that hits their growth margin. i think the geopolitical aspect will pressure the growth margin and have an impact. john: getting back more specifically to what kriti alluded to at the top of the segment, with the biden administration announcement on restrictions for u.s. players in china. how do you quantify that? if it is that much difficult to get select business for a market like china, how do you figure out what that business will look like? mandeep: nvidia, for example, the chinese exporter is north of 25%, 30%. clearly, they have big customers in china. if they are restricted to sell chips in china, this means they will have to take a hit in terms of the demand side of the equation.

look, everything is very convoluted when it comes to semiconductors. the supply chain aspect, how they sell the chips, how they get assembled over there, then shipped back here. everything will add up if you have restrictions. in my mind, the largest chipmakers are diversified. they have some levers to pull. at the end of the day china is a big market in terms of being a supplier as well as a customer. john: great analysis as always. a busy week for you. at the chipmakers, the twitter saga, we appreciate it. coming up, it's make or break time for mr. metz. steve cohen, in major league baseball, that team now playoff bound for the first time in six years. we will teach -- take a little view into that story. this is bloomberg.

john: i'm jon erlichman with kriti gupta. today our number is 314 million, the total payroll of the new york mets. they are starting their playoff round this evening. the owner is no stranger to wall street. he has made a big name for himself in the sports world. that is steve cohen, the wealthiest owner in the game. that helps explain the payroll. kriti: a $12.8 billion fortune. it has gotten him to also be the mainstay of this thing called the cohen tax. it's kind of wild. john: it is. the mets are not the only seem -- team heading to the world series. the toronto blue jays are hosting a baseball playoff game for the first time since 2016 earlier today. we caught up with march pyro, the president and ceo of the team. >> coast-to-coast, we will have

fans on the edge of their seat with us. i am excited for what it will mean to our city and our country, for the whole organization, for our group of players. this is a positive from a business. the goal is to have a sustainable championship team playing in october every year. kriti: thinking of the sports world, don't forget to watch bloomberg: the lineup. sports betting shows are airing tonight in the u.s. at 7:00 p.m. in new york and re-airing at 11:00 p.m.. they have been hard at work with this new show, as well as our producers leading the charge. it's really exciting. j i'm very --john: i'm very excited about it. shout out to tim for allowing toronto blue jays content in the program. it's a big season for the yankees as well. kriti: he is in the control room

celebrating nonstop. the markets are down. they are down big to the tune of two .6% on the s&p 500. -- 2.6% on the s&p 500. stick with us. this is bloomberg.

>> the most crucial moments in the trading day, this is "bloomberg markets: the close," with caroline hyde, romaine bostick, and taylor riggs. caroline: two hours, the technical term. romaine: the other technical term we are talking about is the pivoter. taylor: to unpivot.