we have some guy -- we have robert kaplan coming on, a sitting fed president after the jobs report. >immediately after >> immediately after >> i will watch both of those. you got me hooked. this could be the calm before the jobs report storm. we have nelson peltz on october 10th is the storm, right? >> this is the last business day. monday is a holiday for banks, columbus day >> is it >> it is markets are open banks are closed schools are closed some schools are closed. >> do they call it that anymore? >> i do. >> i don't want to get -- i don't want to trigger anyone andrew is back, we'll start talking about columbus you think that's smart thank you. they're guarding that beautiful -- up at -- >> you just lost your mic. >> columbus circle >> i think it's called something else now it was changed to some other name >> columbus circle to me >> you are stepping out, my man. you are -- >> i've lived in the city a long time it's columbus circle >> you are unusually timid >> i know. >> the september jobs report is due out in a couple of hours many expecting the recent hurricanes to show up i

robert kaplan calls that development ominous. he doesn't want the fed to raise rates too fast and risk getting what's known as an inverted yield curve, because that tendsed to a precursor of a recession. >>> the deadly wildfires burning in california have taken their toll already. and now threaten one of the safe .conomic >>> the head of the food and drug administrn says the country may start to see some drug shortages because of the damage that hurricane a caused to puerto rico. 10% of drugs prescribed in the u.s. are made by manufacturing facilities on that island. drug makers are working to get their facilities back online, but they're facing widespread power occupation and supply iss. >>> the images out of northern california are nothing short of apocalyptic. homes and businesses have been destroyed by the hundreds, lives lost, much of the damage caused by the deadly wires concentrated in sonoma and napa counties, the heart of wine country. aditi roy reports tonigh >> reporter: ray signorello is seeing his winery for the firs

dallas fed president robert kaplan sees the setback as temporary. >> we knew that the september number was going to be affected by harvey and to some extent irma, and it has been. >> reporter: but there were also signs of underlying strength in the job market. the unemployment rate fell to 4.2%, the lowest in 16 years. >> it's a number that really got my attention. the bls said the survey wasn't disrupted by the hurricanes. they said the response rate was in line with normal, even in the areas affected by the storms. >> reporter: and there was a spike in wages. average hourly earnings up 5/10 of a percent to nearly $27 an hour. that wage growth may be artificially inflated because of the hurricanes. but a leading wall street economist says upward revisions on wage growth in july and organize support the overall trend. >> i think the most significant part is actually the upward revision to wages in july and august. the cumulative 3/10 of a percent in wage growth. >> the big theme coming out of this is we see an interest rate rise off the back of it, the probability of a rate hike from t

our steve liesman joins us now after digging through the report, steven, a chance to speak with robert kaplando you make of it all how much can we blame on the hurricanes >> i think a lot i think this was a big miss as you said, but this is hurricane weakness when i read the commentary out there, a lot of economists are finding strength in the weakness and i'll go through the numbers and show you where they find that strength. take a look. we were looking for 80,000 plus on the jobs. we got minus 33,000. revision down 38,000, not too much over the two-month period there. hourly wages, up by half a point. the unemployment rate down more than expected. that could be a little affected by the hurricane participation rate, people coming back into the workforce, that one ticking up to 63.1% when you look at where the job losses were, that's where you see the actual hurricane effect. first, look at service providers, they were down by 49,000 this number does 100 to 200,000 in a good -- on a regular month. leisure hospitality, i don't know if that's all disney and universal, retail trade, we saw that

unusual, but something that we're pleased about, we will be able to talk to dallas fed president robert kaplanfter the report comes out. so maybe we'll get insight into the fed's thinking, depending on how the report looks at that point. we also have kudlow versus fuhrman, which is always interesting. larry is funny, he goes i love you and respect -- then he lays into people. >> did he that to me, too we have a debate over gender pay gap. >> it's endearment >> i try to do that. just saying with all due respect doesn't always -- somehow larry -- i love you, then boom you only hurt the ones you love. nelson peltz, extended interview in what is the most accrimoniou and longest running proxy fight ever that will come to some type of resolution on october 10th. >> tuesday >> i can't believe it's october. i can't believe it's 2017. i can't believe any of it. i can't believe it's the fall. i can't believe people are back to school. i just can't believe how quickly the years are going by, sarah. >> go to starbucks, it's pumpkin spice time your taste of fall >> i'll try that pumpkin spice. thank you. >

. >>> dallas fed president robert kaplan says he believes disagreement at the federal reserve is healthy he was responding to a reporter who asked his opinion of kevin warsh. the fed governor is one of a number of people being considered by president trump as the next chair of the federal reserve. he said he and warsh may disagree on some things but it was a good thing and stated he believed the fed would operate effectively in the future. tomorrow steve liesman will speak to boston fed president eric rosengren you can catch that interview tomorrow from 9:00 p.m. cet. >>> back to our fx discussion with john hardy. before the break you were talking about who will be the next fed chair that will be a huge driver for the u.s. dollar. what's your best bet at this point? we still read articles that janet yellen might stay in her chair. that wouldn't move the dollar too much >> like everyone else, we've been throwing around ideas on who it might be. to my mind, i don't see how yellen is reappointed. i don't think it sends a strong enough signal about change, especially the weak parting comment

robert kaplan said my concern is you would create a bump in gdp that would be short-term. when you decline back down, you'd be more leveraged than when you started. san francisco fed president john williams said, a less targeted to rise productivity and underlying potential, a tax cut could feed unsustainable growth by asset price bubbles, inflation and possible recession. why is now the time for added stimulus? i know you've been concerned in the past about inflation risks and fis sccal risks in the past. why are we being so procyclical right now? >> i would share those concerns if the tax proposal was a demand stimulus. but the tax propoesal is to stimulate supply. you're making the workers that are already employed more productive because they have better machines to work with. that doesn't create an inflation spiral at all. rather, the increase in capital supply puts downward pressure or at the margin given the positive gdp growth given that you're increasing supply. >> corporate profits are at an all-time high right now. there's more capital sitting on the sidelines t

robert kaplan said my concern is you would create a bump ingdp -- bump in gross domestic product thatould be short-term. we declined that back down with trend growth you'd be more , leveraged than when you started. san francisco fed president john williams said, a less targeted to rise productivity and underlying potential, a tax cut could feed unsustainable growth by asset price bubbles, inflation, and possible recession. why is now the time for added stimulus? especially -- i know you have been concerned in the past about inflation risks and fis scalcal -- fiscal risks in the past. why are we being so procyclical right now? mr. hassett: i would share those concerns if the tax proposal was a demand stimulus. but the tax proposal is to stimulate supply. if you stimulate supply, there's more capital, higher labor productivity and you're making the workers that are already employed more productive because they have better machines to work with. that does not create a keynesian demand inflation spiral at all, but rather, the increasing capital supply puts downward pressure or at the marg

we have the philadelphia fed president patrick harker and robert kaplan the dallas fed president tomorrowarl >> their comments mean more now than ever, steve, we can't wait to hear it we'll take a break quick you're looking at a live shot of the podium where secretary of state rex tillerson is expected to talk from in just a few moments. dow is up 12 points. we set a record high on the 'rba ia mes and the transports wee ckn mont >>> let's get to the cme group in chicago and get the santelli exchange with rick good morning, rick. >> thanks, carl. jerome sni jerome schneider in person you're the perfect man for the perfect day. when i brought out the number at 9:00, 10:00 eastern, ism service sector was off the charts. best number in about 12 years. i know these are considered soft numbers, it's not kind of the quantitative number we get in other areas, but a lot of these softer numbers have been strong. what do you think? >> quite honestly, the market needs to pay attention because it shows an increasing trend toward positive momentum within the marketplace. we've seen that in terms of the

sees a 2% inflags rate i'll get to post the questions tomorrow to robert kaplan, dallas fed presidentthis conference here about workforce development which sabt putting people back to work. kelly? >> all right steve, anything jump out to you, michael? >> above trend growth is an interesting way to characterize where we've been if that's, in fact, what esther george said. is sththat what we're talking au when we say 2.8% -- >> what's trend, 1.5%? >> that's the one nitpick. of course she want to get on with things in terms of rate hikes. >> steve, thank you very much. steve liesman for us. >>> now a blockbuster "new york times" story detailing decades of sexual harassment by movie mogul harvey weinstein sent shockwaves through hollywood julia boorstin joins us from l.a. with the latest julia? >> reporter: hey, kelly, "the new york times" alleges harvey weinstein is guilty of decades of sexual harassment, in an expose published hours ago the 3,200 word article reports weinstein, ceo of independent film company, the weinstein company, and co-founder of miramax, reached settlements with wo

maybe, maybe not first, let me show you what robert kaplan this morning in an exclusive cnbc interview said about the jobs report right after it came out. >> i think a lot of these job losses, our judgment will be temporary. i think labor markets are tightening, yes. i'm not saying there isn't still some more slack, but my judgm t judgment, i think labor markets are tightening >> reporter: so tightening labor markets you think capital would be somebody's ready to hike rates. not so fast. kaplan is troubled by the low inflation numbers and suggests maybe there's a disconnect now between higher wages and inflation. he's not so sure that it's time to hike rates. he said he's still on the fence for that december rate hike. kelly? >> sounds like larry agrees with him. >> wow, was that like a fall i heard there? >> stay right there. mr. larry kudlow is sitting here next to us with more reaction. >> kaplan and kudlow was this -- was mr. kaplan's idea that the connection between wage rates and inflation, is that breaking news i mean, yellen -- yellen in her speech two weeks ago said it hadn't

we will start out here in from two fed presidents, bill dudley and robert kaplan in a discussion. u.s.nutes later we get housing starts and building permits for september, and the senate finance committee will meet with president trump. jonathan: china's president xi jinping laid out a roadmap to turn the country into a leading country by 2050. he warns there may still be a bumpy road ahead to success. >> our development is due within a great situation. slight but our challenge is tough. jonathan: opening china's doors to foreign businesses and monetary policy. joining us are tom mackenzie and enda curran. just run us through the highlights of what was a speech that lasted i believe over three hours. was a marathon speech, went well over what we expected, and he tried to crystallize a vision for the next five years of his leadership. this is a president who is the most powerful leader in china for generations. some of the highlights, he wants to see greater ported -- policy coordination and stepped up reforms around the exchange rate and interest rates. he called out real estate a