>> welcome to bloomberg markets. u.s. markets reacted to strong jobs data. you have the s&p 500 just above .1 -- .3%. if you see that indexes up by up by more than 1%. we also have the dollar index strengthening. it was only last week that the dollar interest -- index was at a dollar and change. nymex crude up another percent.

about five dollars on their with the geopolitical risk. and then a massive move for the two year yield. 3.903. a huge repricing after september's jobs data. let us get some quick mid-day movers. rivian down more than 4%. a drop of more than 50% on the year. deliveries disappointed and cut its for -- its production forecast. they are faulted by a shortage of a component. the price target has been lowered to five dollars on that news. jetblue, it is up almost 16.5%. it was up more than that a little earlier. it is just one example of airline soaring. delta, united and frontier already up. arguably a spirit bankruptcy is

-- if that what happens benefits other airlines. finally, lagarde -- lennar down three point 25%. -- 3.25%. the fed will not be as inclined to lower that interest rate and maybe the housing market stagnates a little bit longer. it is all about job data and u.s. unemployment unexpectedly declining in concerns about deterioration. michael mckee was able to speak with austan goolsbee. austan: this job number's today and it is a superb report. you could not ask for a better report. i still think as a central bank, do not want to react too much to one month's report. vonnie: joining us now is michael mckee, so as austan

goolsbee said you could not ask for a better report but that is if you are just looking at the jobs data. was this about -- the best outcome for today? michael: it does suggest that we will have a soft landing or that we are in one as austan goolsbee said. the economy really neverland's. the numbers were unbelievable and everybody was shocked. 254,000 jobs created. and july and august were revised up by a total of 72,000. the interesting number, unemployment rate. wall street took that as an omen of no big moves in the fed funds rate because you look down at the three decimal unemployment and we were about .5 away from a 4% handle. the market reaction as expected, the three-month moving average for jobs numbers and it has all of a sudden ticked up after

slowing down for a while. that pushed everybody's view of how many times the fed will cut up. we were at 10.5 in the middle of the set -- in the middle of september and now we are at 6.5 by the end of next year. the market inks that the fed will back off. i asked austin about that and they said too early to tell. and they get one more jobs release for the next meeting. vonnie: it almost seems ludicrous, but what do you think the fed is thinking? there was a concerted effort on all members to move the public perception of what the mandate is to the unemployment side. inflation was taken care of. does this belie the fact that they thought there was weakness but maybe there is not? michael: maybe it worries people because we get the cpi report. if that comes in benign, it will

fade somewhat as a concern but he could come out whatever his next asked -- next appearance is and others will say we are concentrating on both sides of our mandate. we will not skip on the inflation side and just focus on the employment side. vonnie: i guess he has to save that memo. thank you so much. for more on how the jobs data and broader economy is faring fs investments lara rain. you heard on the interview with austan goolsbee, are we all clear or what are -- or what are the concerning elements right now? laura: i love that he mentioned the three-month moving average, the payroll data is always viral and two months ago we were worried about job growth slowing quickly. i like the three-month moving average it is about .185.

that reflects the fact that the underlying become -- underlying economy is solid. we are entering uncharted territory, at least territory we have not been in for decades. the fed has not had to actively manage both sides of the dual mandate for a very long time. for almost 20 years, we had low growth and it was just about trying to manage for an on -- low unemployment rate. and horrible inflation was just about bringing employed -- inflation down. we are going into quarters where they will have to actively manage both sides and we should get ready for big swings in the fed rate expectations. vonnie: we saw a massive swing today. what does that mean for what's next? is it playing 25 basis point cut because they said they will likely cut some more by year end or maybe a few changes in the statement to amplify that they are concentrating on the dual

mandate again. lara: it is appropriate that they take this window of opportunity with lower inflation to bring rates closer in line with neutral. as inflation comes down the real feds fund rate is rising, even if they do not change rates. it would make sense to want to keep up. i am in the camp that believes the economy is going to experience only an incremental slow down to something more sustainable. it is good news and it means that we can kind of be this steady slow as she goes group in the middle while markets are just really worried about the outlier expectations of runaway inflation or a crash landing. i think the economy will be fine and the fed will be study through the end of the year. and then i think they hold rates at beginning of next year and then exit -- and then assess. vonnie: we will bring it --

bring up hr without expectations change. we are looking at 50 basis points in november and now we are looking at 22. there has been a massive repricing. does the elections interfere with any of this? lara: one pattern i have found in higher volatility in fixed income markets and the stock market. i think that will happen. and all of this said uncertainty is just playing into a. while we can take some comfort that the underlying economy is looking resilient, the reality and -- the reality is data is noisy and markets are uncertain. that will not change. we will see these great expectations move a lot. even before the november 7 meeting and the election will only amplify that. vonnie: what happens to the curve. if these inflation and job

market expectations continue to shift than that could mean having, no? lara: you are bringing up one of the least appreciated features of the fixed income market. the yield curve remains inverted. as that normalizes, it will be a combination of fed rate cuts that bring short-term rates down. and strong economy, debt and deficit dynamics, inflation that is a little stubborn. all of those will cause long-term interest rates to drift higher. i think the long-duration trade has run its course. we are in a higher for longer interest rate environment and yield curve normalization will be a big part of that. vonnie: you are chief economist, and you are a fixed income specialist recommended and what type of play from the yield

curve can be made at this point? lara: i think it is all about harnessing the strength that we are seeing in credit markets. it is about looking for extra yield and deeper in the credit space. that is everything from high yield, leverage loans and private credit, middle-market private equity. there is a lot out there. those publicly traded markets will really get not between now and the election. vonnie: thank you so much. that is lara rhame. spirit airlines sitting turbulence as it struggles to avoid filing for bankruptcy protection. the latest details next. ♪

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vonnie: this is bloomberg markets. it is time for the stock of the hour. more clouds gathering around spirit airlines. the efforts to restructure have hit a snag after months of talks failed to result in a deal. this is according to people with knowledge of the metal -- on the matter. the share price fell on those news. we are joined by francoise, thank you for joining. exactly what is spirit trying to refinance and how long? francoise: they have been working on the balance sheet since the failure with jetblue. this is because they are trying to refinance 1.5 billion. and those products are based on

the value of the loyalty program and customer data and subscription and credit card. this is a little bit difficult to refinance if the company is not able to operate. that is why it has made things more difficult. in the market is nervous. vonnie: if it cannot maintain its partnership with u.s. bank which is its loyalty program and if the bond values are dropping anyway, then why won't the creditors taken eric -- take a haircut? francois: the credit card agreement you are talking about is something that is part of the refinancing that they have to do. they extended from september to october and now it is october 21 to reach an agreement of the right -- refinancing in order to get this particular processing

agreement for the next two years, basically. that illustrates why it is so important for them to refinance this 1.5 billion of loyalty bonds. refinancing royalty bonds is not something that is hard. other airlines did that before the merges. the thing like -- the thing with spirit is at the path to profitability is not clear. they have been burning cash for months. they have been burning over 500 million from operations for the last 20 months. and then for this quarter the market is expecting $300 million of loss. the path to profitability is not clear even though they are trying to transform the product

and services. vonnie: that is why do not understand fully why the creditors are holding out. what do they expect will happen? the bonds are losing value, so what are they waiting for? francois: the thing is, there are so many issues that go with what we are talking about, including the grounded fleet. they will have about 40 aircraft on the ground at the end of the year which is 20% of their fleet. and they will have more next year, so they expect to have 50 grounded. so that will hurt profitability even more. it is not clear which way they would like to go. if it is a chapter 11, that is one solution but not the only one. airlines can still have another

solution because they have 1.1 billion of equity. they have about one billion of encumbered assets. half of it is in their fleet. so they have a little bit of a solution, a few solutions that they can use in order to find a solution. that is not a chapter 11. vonnie: we have to leave it there, but thank you so much. we will continue to monitor -- to monitor spirit and its competitors. the weather might be getting colder but shoppers are getting ready to warm up. the preview the holiday shopping season next. this is bloomberg. is it me... or is work not working?

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vonnie: this is bloomberg markets. today's jobs data is painting a rosier picture of the u.s.

economy and american households are facing increasing debt. total u.s. debt payments increased .6% to $17.8 trillion compared to 17.68 7 trillion the previous quarter. from more we are job but just joined by robbie williams. so, what have you been noticing in the consumer, consent -- particularly the consumer living paycheck-to-paycheck. rodney: the good thing is that they are employed more. the problem is that they are facing is that they are underemployed. they are in a job where the wage is less than they feel they should earn. the combination of that alongside inflation to lower income individuals who rent check to pay check we understand that hits harder. they are still feeling a burn and this is a very challenging economic firemen with rising

debt, study and elation that at the end of the day there wages are not enough for their everyday expenses. vonnie: average hourly earnings worlds -- was up a little bit year-over-year, a tiny bit more than inflation. our those looking for loans seeing the benefits of better wages versus higher inflation? rodney: they are not really seeing it. and you have to take things into consideration. a schoolteacher who was once a schoolteacher but then started to drive uber and is now working at a restaurant as a manager, at the end of the day all of these scenarios the schoolteacher is employed but not being a schoolteacher. and not earning the wage they think they deserve or the wage they feel like they could live well. and that is the challenge. even though we see wage

increases, the sentiment that we are seeing across our upcoming report is that consumers are greatly underemployed. the majority are spending still on necessities, over 29%, focused on necessities. that is things like keeping the lights on and putting the food on the table. when you think about a spending and economic environment those are the challenges. there is limited cash when it comes to discretionary spending. that is one of the drivers for a great economy. vonnie: one of the silver linings for that demography was leisure and hospitality were at a tear followed by health care, construction, and retail which should help during the holiday season. but what are you seeing on your platform now that interest rates are coming down ever so slowly. is there any difference to those who are looking for loans.

rodney: you know, living paycheck-to-paycheck as you mentioned, the average consumer has a rising debt meaning they are maintaining a rising balance. as their balance increases and the debt ratio causes -- it does not look as healthy so it becomes challenging to get additional credit. the interesting thing about our platform as a community finance platform where borrowers are borrowing from other community members. this opens up a capital pool that is not necessarily dependent within changes in a fed rate or within the greater macroeconomic environment. and i think that is something that we value and one of the reasons we continue to see particular seasons like this when credit is still pretty difficult to get. and they are looking for flexible options. and this same group will have

emergencies, like a flat tire or six shot -- or sick child and they need to count on someone. vonnie: does it matter to the amount of funding you have available for borrowers and those who want to lend to receive a better interest rate who the next president is? rodney: i think it matters incredibly. it is very important. consumer confidence is -- there are a number of stats that we can measure. at the end of the day consumer confidence means that they are out and enjoying life and maybe they are at restaurants more or using discretionary capital. they ultimately believe that there wage will increase and their opportunities will increase and they will have a greater opportunity than before. that is the outlook that we are hoping to accomplish with whoever enters the office as an ex-president. i think we are all hopeful and

myself included and the members of my plat form. it is super important that we have a candidate who is going to not only help everyone get employed but we have to help get the right employment. i think underemployment is a big issue that needs to be addressed very quickly. vonnie: we have to leave it there. thank you so much. that is the solo funds co-founder, rodney williams. it is an interesting day for the markets. we had stocks popping after the jobs data better than anticipated. and they gave up some of the gains. we are seeing a nice gain for the s&p 500 up .5%. the nasdaq 100.9% as the chip stocks soar, that little bit of a haven -- a little bit of a haven. oil trading higher to 75.12 a

barrel. the dollar index is closing in on 103. 100 261 is where we are at with bitcoin seeing again. and the yields are all important. this is bloomberg. ♪ iling returns. avalarahhh ahhh it's our son, he is always up in our business.

it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

>> from the world of politics to the world "balance of power of business, this is "balance of power --the world of business,

this is "balance of power." live from washington, d.c. joe: it is good to be the incumbent, at least today. welcome to the fastest show in politics as the september jobs report lows the doors are as a major dock workers is suspended along the east coast. i'm joe mathieu alongside kailey leinz in washington. welcome to the friday edition of "balance of power" on bloomberg tv and radio. we may not be out of the woods on either front. bloomberg economics predi cting a weak report for september. kailey: issues that could be on the back burner for now. the dockworkers will not be another problem from the strike perspective until january 15. clear on the cusp of someone inaugurated by then. the