with jobs report, here is mike mckee. mike: 850,000 jobs restored in the month of june.ths net payroll revision, 15,000. you come up with 865,000. the change in private payrolls, manufacturing up by 15,000. there was some question yesterday when the ism report showed contraction in hiring. that may be because manufacturers could not find workers. the unemployment rate goes up to 5.9%. i've got to double check. i think that is because we see a rise in the labor force. the number of people in the labor force goes up by 150,000. no change in the participation rate. 61.6%. the employment to population ratio is also unchanged at 58%. it looks like we are attracting more people into the labor force which pushes the other employment rate a little higher. you say it is good news the unemployment rate goes up. average hourly earnings 3.6%. last month, 1.9%. that is the year-over-year number. it looks like a good jobs report. a little better than expected in most categories. the unemployment rate is something you can look past. jonathan: a lift in the equity market. add a little m

but i want to get mike mckee's take on the data, particularly those prices paid aspects. mike: there's a lot of questions about whether we are going to see lasting inflation. at least for manufacturers and the input prices, the prices paid number comes in at 92.1. that is the highest since july of 1979. so a very long time since we saw that kind of inflation. and that was in the lead up to the great inflation. the manufacturing headline numbers, the new orders numbers, same as in the market number. it shows that manufacturing is still at a high level. here is the really interesting one besides prices. employment, that is down from 50.9. the expectation was that we would get a solid gain in manufacturing jobs. raises the question tomorrow about what we are going to see with the u.s. payrolls report. taylor: mike mckee, as always, thank you so much. talking, of course, about some of those big manufacturing numbers. of course, we also want to pivot to some other big news in the u.s. as well. the trump organization's longtime cfo surrendered to authorities in new york this mor

i am just trying to set up mike for an exciting question today. what is are betting that mckeelast question again? jonathan: i am pretty sure that mike goes at the end and then gets ignored. the room or the time they played the elevator music over mike mckee at the end? i will look for that little bit later. mike mckee, looking forward to that coverage later. we will be covering that federal reserve decision for you. i will be dropping by, alongside you and lisa, working through what could be a boring news conference. let's hope it's not. a difficult time for the federal reserve. everything mike has just said, there are a whole list of excuses to take up on this week and not do much at all. tom: seriously, i think it is a changed conference from two or three weeks ago. jonathan: would you agree, lisa? lisa: yes, although i wonder, if they do remain on hold, whether yields actually rise. the market responds i find interesting. jonathan: that's the difficulty i've had. you can call the fed. you can call the data. can you call the market in response to the fed and the data? tends

mike mckee is in idaho for the rocky mountains summit.aria taddeo is in brussels for the eu green deal announcement we had today. as we speak, the citi earnings call getting underway right now. bloomberg's sonali basak has been following the latest headlines. let's get what we need to know. sonali: citigroup and bank of america, when it comes to costs, they are showing investors that they want to invest in their business. they want to remain competitive. looking to grab share in prime brokerage as other firms come back. over at bank of america, everybody is so worried about loan growth, but now they are talking it out with analysts, talking about the fact that they are sitting on oh so much dry powder. so what can the use that dry powder for? right now they are talking about the ability to deploy this into securities. earlier today explained we are not a hedge fund at bank of america. they are going to deploy this prudently. but it is a welcome note for clients and investors who want to see these banks engaging with markets, really proppi

with your data, here is mike mckee.hael: a downward surprise, better-than-expected jobless claims numbers. 364,000. that is a decrease of 51,000 from the previous week's revised levels of 415,000. it is much lower than the 388,000 that was forecast. what we also are looking at is continuing claims because we want to know how soon people are coming off these roles. 3,469,000, that is higher. that number is delayed by a week. it is not as good news on an ongoing basis. we do see progress being made. jonathan: s&p 500 futures up for present, advancing .1%. yields where we were. 1.47 on the 10 year. is there any read on this from claims of last couple of weeks going into payrolls tomorrow? michael: not a lot. these are people not working who are getting claims who are no longer getting claims it could be working. it does not tell us necessarily they did get jobs. that is the dichotomy between the number of those who are looking for work and those who are offering work. we will have to wait until tomorrow to see what progres

taylor: mike mckee, thank you, as always. a lot of news out of china today as well, cutting the reserve ratio by 0.5%, and more firms being added to a u.s. blacklist over alleged human rights abuses. let's get more with tom orlik, chief economist at bloomberg economics. that's start with that reserve ratio. is this just to help pump liquidity and help what might be a slowing economy? tom: the chinese economy was a story about strength, the only economy to grow through the pandemic. what we are seeing in 2021 and especially its with the news overnight is a reminder of some of the vulnerabilities. the people's bank of china surprising economists with a forceful move to cut reserve requirements by 0.5%. that releases about one trillion you want into the economy. what is striking is the idea that perhaps the pboc is seeing something that the markets are in seeing. perhaps the pboc is seeing weakness there and moving to get ahead of it. from the united states, news that more chinese companies will be added to the blacklist, reflec

mike mckee there was st. louis fed president jim bullard. think that was a classic mike mckee clinic on some of the issues. a key issue he has cited repeatedly, i think it is important that he keeps asking this, what do we get from one hundred 20 billions a month -- from $120 billion a month that we would not get? tom: i think james bullard has been way out front about his interesting theory on regime change. and i think the fed president inserted well. it gives you an idea of the debate that is going to take place in the coming months. from new york city this morning, good morning. for our audience worldwide, this is bloomberg. ♪ ritika: fed reserve chair jerome powell said it is too early to scale back the aggressive support for the economy. he told the house of financial services committee that the debate over bond buying will continue at the central bank's upcoming meeting. meanwhile, powell said inflation has risen faster than expected. he's back on capitol hill today. senate democrats have found a way to help pay for their $3.5 trillio

bloomberg's mike mckee joining us to give us his take on what is happening.potentially for janet yellen. michael: definitely a huge win for janet yellen and the biden administration and the united states coming back from a time when most countries were not listening to us on foreign policy. it is in most of the countries interest to come to some kind of deal. they've wanted to avoid a race to the bottom. you do not want to say the irish are on the bottom but they have made money by having low tax rates. this does not prohibit countries from having higher tax rates. it is expected the united states and others will be above that. when companies are looking at where they should locate, it will be a question of not just taxes, but other expenses that should even out. it also should get rid of some of what we used to call in versions in the united states, where companies would move their mailing address to another country like ireland and keep other production facilities here to pay the irish tax rate. taylor: it is interesting. how some of those countries respond

as mike mckee just pointed out, no base effects with the 5.4% increase in the cpi on a year-over-yearasis. yet the market is not really reacting. it is not because the market is optimistic, it is because the fed is still pegging the market with zero rate policy and with $120 billion of asset purchases. does that change? i think that does change. why? the fed inflation forecast. 3.4% on headline is predicated on an average increase of 0.15% per month. we just got an increase of .9% on the cpi, maybe -- we are blowing away a forecast that was already revised up 1% at the last fomc meeting. when does the fed recognize that? lisa: aren't we looking at transitory types of increases? hotel, car rentals, apparel, airfare, things not in use a year ago. the comparison is such that by necessity we are looking at record increases in pricing, and on top of that supply chain constraint. what about this seems more than transitory? john: let's think of two things. first of all we are told the story is transitory, and yet the increases are going faster for longer, so we have to pretend what the defin

he spoke exclusively to mike mckee. >> i think we are in a situation where we can taper. think setting those parameters the right way, we don't want to draw markets or anything. i think it's time to end emergency measures. dani: the chicago fed president thinks the fed could again to taper bond purchases by years and as employment slides closer to 4.5%. >> if unemployment is at 4.5% at the end of the year and things are progressing the way that i'm expecting, i would guess that some adjustment would be in order. somewhere in that timeframe probably. it will depend on the data. that's the whole point. dani: i want to move over to corporate news. lines crossing the terminal on erickson, the telecom company. second quarter adjusted operating profit coming in and missing estimates. 5.8 billion krona. 6.12 had been the estimate. this is obviously not a great sign for them as well. they are competing very heavily with nokia. that is potentially hurting some of their earnings. they are trying to claw back market share. missing on their operating profit. let's turn back to the fe

tom: we do not have time with mike mckee. chart and by no means does it violate the trend to a better set of statistics, better feeling about employment in america. the continuum of the trend is still very much intact. jonathan: i will run you through the opening on tb and tom keene will do that on the radio. into the close, romaine bostick putting in a long shift. romaine: the breadth of the selloff combined with the lack of breadth in the rally, whether you put that together and whether it spells the idea that some of the steam is coming out of this. tom: i lost my train of thought. i was thinking about italy and england. the breadth thing is a big deal. it has not been there. romaine: we will have a good conversation. that day mary during the close. -- that game heirs during the close -- that game airs during the close. jonathan: how does that work? romaine: checking the phone during the commercial. jonathan: from new york city, heard on bloomberg radio, seen on bloomberg tv, this is "bloomberg surveillance." ritika: with

the fact that the federal reserve may hike earlier, as mike mckee noted, the market was certainly thinkingaybe they would hike as early as 2022 as a few of the fomc members noted in their dot plot. i think one of the big issues going on in the market right now is positioning, which was very short, and thinking the yield curve was going to steepen quite substantially, so long-term interest rates are much higher than short-term interest rates. those are being washed out right now. you can see that in a lot of the position got in the futures, but in the cash market you see a significant flattening with long-term interest rates coming down quite a lot. i'm concerned about what happens when the fed does start to taper. maybe not quite as high as we thought they would get when we first started talking about a potential 2% 10 year in march of this year? taylor: ira jersey keeping us smart on rates. japan planning a state of emergency now in tokyo throughout the olympics as concerns over the virus outbreak mount. the olympics set to begin on july 23. here with more, or bloomberg tokyo bureau chief

mike mckee pushed back on some of the themes that were controversial in that. i will say they are on their way to the next meeting and they have to get more data and we will get data and gdp today and also wonderful conversations we -- conversations. we have a strong lineup. jon: looking forward to that. up on the s&p 500, not much price action to look at. in the premarket, didi global absolutely flying. up my more than 30 percentage points. this is from dow jones, " ride-hailing giant didi global is considering going private in order to placate authorities in china and compensate investors for losses incurred since the company listed in the u.s. in late june." tom: manipulated -- it is a dow component. manipulated going down. i just don't think it's that big of a story. i think this is the manipulation of capitalism by the chinese government. it was manipulated on the way down, guess what, is manipulated on the way up. jon: i think many would agree with you. tom: do you think the government has any interest in the privatization of didi? lisa: they will placate

let's get more with bloomberg's international policy and economics correspondent mike mckee. what do we make of all of this data heading into a fed decision day tomorrow? reporter: -- michael: none of this is really going to influence the fed all that much. they are more interested in the pce price index on thursday. as we look at the numbers from the conference board, we can see that not only did the present situation go up, but the expectations index also rose as americans grew more confident about the economy, and this probably has a lot to do with the labor market reopening in the country as a whole reopening. the present situation goes up to 160 from 159.6, and expectations up to 108 -- actually, it is unchanged at 108.4, because that is revised higher. it looks like people are feeling a lot better about it. the other number we wanted to look at is the inflation expectations, a little bit different than the university of michigan ones. they look at what people think it is going to be for the next year, and it falls to 6.6% from 6.7%. so if anything influences the fed, it

bloomberg's mike mckee is our international economics and policy correspondent.he michigan number i think is really interesting. what do you make of that downward revision we are seeing for the consumer? michael: it just shows how lumpy and difficult it is to read the data these days. we got the 0.6% rise in overall retail sales. everybody cheered. then you look and see the main number was revised -- the may number was revised down. core sales up 1.1%, but the 0.7% decline in may was revised down to a -1.4%. this is the problem with retail sales, only about half of the retailers have reported by the time they put this preliminary number out, which is why they call it the advanced number. so we don't get a clean read. that is the trouble for the fed because they do believe the consumer is hanging in, but they can't put enormous faith in it. i believe the number everybody is going to look at today is that inflation expectations from the university of michigan, 4.8%. the fed has been worried about, and fed chair powell made a big deal about inflation expectations, a

guy: mike mckee, thank you very much, indeed. we need to talk about what is happening with the virgin galactic story. the stock is up really sharply. virgin galactic sounder sir richard branson flying to space on july 11. he's going to be there before jeff bezos. joining us now is the company's ceo, michael colglazier, virgin galactic president and ceo. welcome to moberg television and bloomberg radio. thank you indeed for your time today. sir richard branson is going to be going into space. we can debate where the line of space is. we will do that a little later on in the conversation. you've said it is not important who's going to be first here, sir richard or jeff bezos, but it looks like it is. going to be sir richard. i am curious -- but it looks like it is going to be said richard. i am curious, whose decision wasn't to make the first flight first? michael: as you say, it is not important when any of these spaceflights go. what is important is that they are ready to go. that is what you are hearing for mass -- hearing from

mike? what's the update? >> we have until further notice mckee closed. just west of 680. to or fromful 0 use allen rock.why that will be clear and stays clear. the rest of the freeway in the south bay moving smoothly. minor crashes 580. over here on the peninsula the other crash and very concerned hearing affecting the center divide in both directions of 101. both have lanes blocked north along the center divide there with debris and activity there. fire crews, chp. there's san francisco. so between the two areas where the stretch of 101 with the crash activity but we don't have a lot of slowing. 280 is well clear of that. no major injuries. has to be more than minor. highway 4 to bay point at the limit. same thing across the golden gate bridge. i saw the crew heading into san francisco clear from the morning from the north side. back to you. >>> a new impact to one major northern california power source. the hydroelectric plant faces closure due to low water levels why the water pumps through for electricity. at full capacity powers 800 ,000 homes. the plant was shut down at 640 feet. experts believe t

mike inouye is following this. >> this is video from mckee.see the flares, the flashing lights and a white car which i believe is critical to the investigation. look at the wind shield shattered there. a pedestrian hit and killed this morning, died at the hospital. but the investigation continues. the map will show you we're talking about mckee only the eastbound direction from what i understand so the direction heading up toward or past over felt park and then past ludlow. over here is 680. heading to 680 do not use that roadway. use allen rock. just to the south. everything else throughout the south bay a moving with slowing for san jose and more coming up. back to you. >> thank you. >>> pressure is building for the city of oakland to come up with a deal to deep the a's from leaving today. bob reddell this morning. >> reporter: good morning to you, marcus. this is all about where the a's should build a new stadium. in las vegas, at the current site 0 for proposed site at the howard terminal. this morning oakland united and members of the oak

mckee road, orange and yellow. a big line before union avenue, a second crash there. so heads up there. a live look at the bay bridge. we do not have metering lights on. hi, mikeelow average. 64 in san francisco. 88 in antioch. air quality will stay on the healthy side. there's a slight thunderstorm sunday and monday and tuesday warmer than normal. >>> coming up on "gma," what you need ♪ ♪ ♪ ♪ ♪ ♪ monitor, check and lock down you money with security from chase. control feels good. chase. make more of what's yours. or the day your visitors quadruple. with comcast business you'll be ready with the flexibility to control multiple wifi networks from anywhere— all on the network that can deliver gig speeds to the most businesses. every day in business is a big day. we'll keep you ready for what's next. get started with internet and voice for just $64.90 a month. plus, for a limited time, ask how to get a $500 prepaid card when you upgrade. call today. ♪ ♪ ♪ ♪ ♪ ♪ hey google, turn up the heat. ♪ ♪ ♪ a argepoin home flex ch or pchgingredit. see your volvo retailer for details. >>> good morning, america. it's 8:00 a.m. sliding backwards, this morning the major america