That matters so much or stands out, but it is the fact that we have declines as opposed to gains for the s p 500. This is the first down day in and nine. There has been so much bullish momentum. The three major averages are on pace for weekly gains, but we do not have any record highs, the first time we have seen that this week. The nas whack nasdaq is down, and we can see if the tech heavy index can pull out of the weeds. This could have to do with the jobs report and the cryptic comments from President Trump, but it is also earnings season. This is a oneyear chart. The s p 500,ve those yellow lines, arrows, that is the q4 reporting season earlier this year, and the First Quarter earnings season earlier this year. On the bottom, a momentum indicator. We see before the Earnings Report. Reports, engine, this happened. We had the tech wrap. , so conditions were not overbought. We are starting to trend down, suggesting we might see these overbought conditions cooldown for a little bit. But this woman does not think a meaningful pullback is ahead from these overbought conditions. Maybe just some sideways trading. Lets take a look at some of the cross class action. We have the dollar index now down a little bit, less than 1 10 of 1 , earlier up 3 10 of 1 . Theresting picture with bloomberg u. S. Dollar trading here, as the 10 year yield is off of its highs. There are some that north korea could be testing another missile. In turn, gold is trading higher and crude down 3 on the day. It is up for its worst week since may, its first down week in five. So little bit of a risk off tone here, and oil seems to be hurting some of the emp and shale producers a little bit more than the other names. Neighbors down nearly 6 off of the lows, we also have neighbors in action there. Utting to 12 per share nonetheless, ahead of the Third QuarterEarnings Report. And we also have declines in both Whiting Petroleum and continental resources. But what you should take away from today is a little bit of a risk off time. Fora abigail, thank you that wrap. Turning back to the jobs report, if you strip out the job losses and the hurricanes, the u. S. Labor market looks solid in september. Average Hourly Earnings jumped was int since 2009, it part fueled by overtime for utility workers, raising toward 63. 1 , the highest since 2013. Gary cohn it could go even passed. F tax reform is he spoke to bloomberg earlier. When you lower the business therate on the past , corporate rates, we make ourselves more competitive. Businesses want to locate in the United States. When they located in the United States, they have to hire labor. They go out and compete for labor. They hire people. Julia joining us from chicago is austan goolsbee, professor of economics at the university of think you for joining us. Some are saying it is more weather reports and payroll jobs reports today, given the exceptions for the hurricanes. What is your assessment overall . Austan goolsbee i think it is almost entirely due to the hurricanes and the weather. Lets hope it is, because it was an abysmal jobs report. Even the positives, that wages went up, if you explore that a little the reason they went up is because there was a massive loss of lowwage jobs, so it makes the average wage go up some substantially pure there was a revision of last two months that was fairly negative, but before the hurricanes, im hoping we can write this one off and we will get a strong rebound next month. If you follow an abnormally bad a hurricane, there will be a rebound, so hopefully next month will be better than expected. Scarlet i wanted to pick up on that point, because the surgeon average Hourly Earnings was also vertimeutility workers o pay. This will also mean more overtime for construction and utility workers, disrupting the wage data for the foreseeable future. In that create some momentum when it comes to wage pay on its own . Austan i do not think so. For sure, as i say if you go look at this data from this month, the biggest increase in wages is because you took a lot of lowwage people and threw them out of their jobs, and just looked at the wages of who was left. I think you will see some rebound from the rebuilding efforts, but it is weird to think of that is momentum. You are not better off if they burn down your house and then you rebuild your house. After it is all done, you are back to where you started. So i think it is weird to think of that is momentum. Little bitts talk a about fiscal policy, because the white houses tax reform has tax cutnto more of a push, if you listen to how President Trump is selling it. Do get the sense that companies are holding off on making hiring decisions until they get some kind of clarity on the bill, and once that comes out that will unleash it . Been on public records that i think the unleashing of animal spirits in the argument that the tax cuts will pay for themselves if we cut taxes enough for high income people or big corporations is unfounded. It is unfounded in the data, in the historical record, and is not going to work this time, either. See said, for sure i could a lot of Larger Companies that are publicly traded, those that might have money sitting offshore or those that might be directly affected and give them a Big Christmas present, that they would either hold off on their Capital Investments or that the market value of those Companies Might fluctuate a lot in the short run while we decide if we think it can pass or not. I think we might see some volatility from that. Julia can i move on and ask you about the fed . There has been a lot of talk about there being a final, final shortlist now for those President Trump will assess and decide on. What do you make of the discussions that are ongoing and how important do you think this is, actually, or investors at this moment as they look at what the fed needs to achieve over the next coming months . Austan there is a lot in that. I think it is important the fed chair important, the fed chair is by far the most powerful driver of said policy. So who you appoint as a fed chair says a lot about what is the approach of Monetary Policy going to be. As we look at these candidates, although i think that the prospect of reducing or ending fed independence is a very bad idea, my impression of the president is that he is going to want somebody that he can call up and harangue them and say what are you doing . You are killing me, you are raising Interest Rates, and having a political influence on a fed chair is not a historical norm. Personally, i think it is unlikely that they would reappoint janet yellen or any candidate that donald trump does not feel he has a personal connection with, that he would feel comfortable calling them up and saying that. Julia you mean he wants someone he can bully, basically. Austan bully, influence, what have you. The prospect that a fed chair might be raising Interest Rates going into the year of Donald Trumps reelection and that donald trump would not publicly expresses dismay and try to call them up and influence them, i think given his past behavior that is a little probability that he will not try to do that. Scarlet we have been hearing the names circulating that are on the shortlist, not officially on the shortlist. Who is your dark worse candidate dark horse candidate you think might make a good fed chair . Oftan we have seen a lot interesting names. I find it unlikely that donald trump would choose someone who is an academic. He has not always had the highest respect for academics. Kevin warshs old friend who i knew through the crisis times when i was working in washington and he was at the fed, totally reasonable name. I would say my dark horse candidate would be some private sector banker that the president knows. I do not know who those people would be, but that is the kind of profile that i would i would not put zero weight on someone like that. Scarlet a banker from the private sector. Austan goolsbee, professor at school of chicago business. Lets get a check on the first word news with mark crumpton. Mark Tropical Storm nate continues to gather strength as it cuts a path to the u. S. It is expected to hit the golf of mexico as a hurricane on saturday. Chevron, bhp, and bp are among companies shutting Deepwater Oil gulf ins and in the that storm, which has left 22 dead in central america. President trump held an event to mark hispanic heritage month. Under fireer from latino leaders under what they say is a slow and poor response to puerto rico. Comeu predicted it would back strong after a long recovery. The president said his administration would not lift sanctions on the cuban government, until it delivers full Political Freedom to the cuban people. Attorney general Jeff Sessions issued a memo to federal agencies today regarding religious freedoms, regarding the possession rising them to follow 20 principles following the Justice Departments interpretation of existing law. Among them, employing employers can religiously discriminate in hiring. This is following the order President Trump side in may, which was made as a thank you to the religious conservatives who helped him get elected. The Washington Post reports the Trump Administration has permanently lifted most sanctions imposed on sudan and is ending the economic embargo. The post also reports that officials speaking on condition of anonymity believe the northern african nation is addressing can earns about terrorism concerns about terrorism and human rights abuses against civilians. Last month, sudan was the only country removed from the list of nations whose citizens are restricted subject to travel restrictions. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton, this is bloomberg. Starlet scarlet . Scarlet coming up, the bitcoin debate. Is this just the mania of the moment . Hyman Bassett Hayman capital weighs in. This is bloomberg. Julia this is bloomberg markets. Im julia chatterley. Scarlet im scarlet fu. Julia getting headlines from President Trump speaking to reporters at the white house. He said of Congress Acts on the will createk, it more jobs. He says we are creating thousands more jobs, and again he has been asked about his comments from last night. That photo opportunity with military leaders and their wives , when he mentioned the whole calm before the storm. About what itgain meant, and he said you will find out. So adding to the drama. Scarlet we will be discussing that further with ian bremmer in about 10 minutes. Meanwhile, if you look at bitcoin it is up slightly today, but this year it is over 300 alone. It is it but is it overvalued . Erik schatzker spoke to kyle bass, speaking in an exclusive interview from the rue, texas. Kyle early on i dismissed bitcoin and i should not have. Truthfully, i do not understand the depths of the algorithms, the technology, and the fundamental financial and Dutch Foundation of bitcoin. I have spent a lot of time trying to understand it in the past foundation of bitcoin. I have spent a lot of time trying to understand it in the past six months. I understand that the asset class of cryptocurrency is an asset class, but considering how the world used Digital Currencies views Digital Currencies. If you look at global qe, it is 110 of mobile gdp. So we are talking about 100 10 trillion worth of cash in the world. That is never happened before has never happened before. When i think about inflation, you are starting to see wages move, the price of all goods and services move. The thing that has been very to station or in the globe has been technology. It has been a very positive deflationary force. I think that has played out. The Technology Local to the logical deflation has played out, so i think you will now see inflation and wages move. That gets into cryptocurrency. The collective alley was a little over 100 billion today. What is 100 billion . The question is what is it worth . You need to exchange another currency, i do not think there is any true institution investor, some have some nominal amounts invested in bitcoin, but i think it will be an asset class that will work overtime. Im not sure how to evaluate yet. I have no idea. Eric do you own it . I dont. I wish i did. I think there is a digital gold rush that is going on. A lot of people are going to lose a lot of money. S, you will see a bunch of them go completely go. A lot of them are frauds, and i will be problematic for a lot of people that rushed in. I think it is a mania at the moment, but in the long term it is a viable asset class. Payment c i o kyle bass cio kyle bassn class with erik schatzker. Before the storm, what a President Trump mean by that . We discussed. This is bloomberg. Scarlet this is bloomberg markets. Im scarlet fu. Julia im julia chatterley. Scarlet the 10 second sound bite that has the world wondering. Last night, President Trump was dining with senior military officials and theirs out his spouses when he said this. It is the calm before the storm. What storm, mr. President . You will find out. Scarlet the president moment ago echoing those comments, speaking to reporters at the white house. Joining us by phone from chicago is ian bremmer. Donald trumphink meant by that, and was he sending a message . Ian you know, another hurricane, world war iii, what it is really about, of course, is trying to keep people a little bit offbalance, both inside the United States so that trumpism protectable trump is unpredictable and you have to keep watching him, and also particularly the North Koreans and iranians, he has made very clear he wants the North Koreans to believe that he could engage militarily, he wants the iranians to believe that if they do not behave and improve the quality of their cooperation with the west, their relation with the United States could get a lot worse. By sending that message with all of the military officials around him, the message that trumpism flying is not trump is implying is not just about sanctions, is that he is willing to send in the bombs come up with the boots on the ground. Theresaw in syria, after were chemical weapons i think that is really the message that you have. What do you think the strategy actually is . Whether he is messaging to the North Koreans, iranians, or both here . Do they see this is credible from the president . Think that the north thatns have to consider even if you have a bunch of adults around trump, like tillerson, mattis, he would be recommending who would be recommending strongly against military options in north korea, trump is a greater question mark. He is more uncertain. This has the potential to bring the North Koreans to the negotiating table, but certainly , if you were advising kim jongun, you would also tell him hey, is there is even a 1 is going totrump strike you, it is very important for you to develop publicly as much deterrent capability asinst a trump first strike humanly possible. Do it publicly and quickly. So certainly, why do you think the North Koreans are stepping up the test of icbm miniaturization reentry technology, talking about hydrogen weapons, all of that, to the extent that they can credibly get trunk trump back on the american homeland, then his threats, even if they only represent a timely likelihood of occurring, art much easier to deal with the north korea. Even if this were a well executed madman, good cop, bad cop theory, which i do not think it is, it still has the potential to backfire on the United States. Julia i wanted to ask you about iran as well, because as reports if reporter to believe, trump is expected to back out of the deal, and congress will have to reclarify. What will happen if he does . This is exactly what i have expected, and i am on record on this over the past few weeks, that trump has made very clear that when tillerson, secretary of state certified the deal the last time around, trump was very unhappy about it. Theaid at the time that iranians were not living up to the spirit of the deal, and probably not even the letter. So by now, telegraphing that he is going to decertify. And i do not nothing is done until he actually says is, but i expect that is the direction we are going. Trouble be able to say publicly you see . I am being harder line trump will be able to say publicly you see, im being harder line the iranians will not be able to get away with murder. Russiay have china and warned america not to do this, but American Allies have made it clear they want to stick with the deal as it is. Even the israelis and the thiss, who are no fans of deal, know that america unilaterally pulling out makes it worse for them in their own backyards. So it is very clear to me that trump is not going to blow it up by himself. Hes going to kick it to congress. We should recognize as with north korea the potential of an accident is going up. Lets imagine what would happen if those sailors, american sailors went into the straight, sailed into iranian territorial under obama,ey did and a ron grabbed them and made them into hostages were a few days. Under Trump Administration, that is a much more dangerous thing to have happen. Scarlet is Rex Tillerson going to be fired this week . Yes or no . Soon. Think he is going if he goes this week, i guess it will be today, after the close of news, but he might have a couple of months. I will be stunned if he is there in a year. Youlet ian bremmer, thank so much. President of eurasia group. This is bloomberg. From bloomberg World Headquarters in midtown manhattan, this is bloomberg markets. Im scarlet fu. Modern he markets are closing in new york, so lets begin with gold. The precious metal took a big hit following the september jobs report, which neither bolstered the case or took away from the case for a fed rate increase. Back on abounce report that north korea plans to test a missile capable of reaching the u. S. West coast. Todays gain still not enough to reverse golds fourth weekly loss. Overan see it is moving the past five days, up 7 10 of 1 even after todays dramatic moves. West texas intermediate took a downward turn as concerns eased Tropical Storm nates threat to offshore refineries. Le this has shifted down shutdown oil and gas platforms in the gulf of mexico, they do not expect the track to impact most energy infrastructure. A look ats take Tropical Storm nate. You can track makes potential path on this chart. On track to strike new orleans overnight saturday. 1ight cause what billion in damage in regions already battered by months of the worst hurricanes on record. Lets get to brian sullivan, the weather reporter for bloomberg news. Brian, great to have you on. Tropical storm expected to become a her again, and what kind of peak intensity level are we looking at it this stage . It will be a hurricane sometime tomorrow, going over warm water in the gulf of mexico. The water in the gulf of mexico is about as warm as your bathtub water. That will give it some strength. We got torn up a little bit in nicaragua, it will brush against the yucatan peninsula, but once it gets over the water it will strengthen to probably a category one hurricane by the time he gets to new orleans. Scarlet and you report that 14 storms have already formed this hurricane season. Is that more or less than worry to the we are for this point . An average seasons 12 storms, so we are obviously over average. Waserms of the record, that 2005, with 28 storms. We still have a little ways to go for that. If nate hits is a hurricane, it will be the fourth hurricane to hit the United States and one month. Brian the distinction here scarlet the distinction here is that it is a fastmoving six them system. What are the risks as opposed to a slowmoving storm . Wean it is good for what are encountering right now in the gulf of mexico, because it will not have enough time to up in the water and get really strong. If it was moving slower it could possibly build up into a major hurricane. Julia we have heard that bp, shell, chevron, the preparations they are making here, but what capacities will be at risk from this storm . Brian i think it will be a minimal risk, really, because the main problem here will be from rain in the Lower Mississippi valley there, and this is all in the range where i think the refineries should be able to handle it quite well. Scarlet and when you look at nate and where it is supposed to head, i think there is a temptation here to compare it to Hurricane Katrina in 2005. But there is a big difference, which is the storm surge. What could change nate into a storm with a bigger storm surge, or are we comfortable with saying that will not happen . An given its forward see speed, it is going about 20 Miles Per Hour and i think it would have to slow down to five or six Miles Per Hour to be able to build up that kind of strength. It is basically the launch of eddie over the water, and it is not going to have enough time to do that. I think we are kind of off the hook. Longevity over the water, and it is not going to have enough time to do that. I think we are off the hook. We are in a better sit tuition situation than folks were in 2005. Scarlet good news, especially with the weather headlines this hurricane season. Sullivan, thank you so much. Lets get you a check on the headlines on the first word news with mark crumpton. Mark the british Prime Minister theresa may saying she has the support of her cabinet, despite the campaign ouster. She said that the country needs calm leadership, in that is what she is providing. The former chairman Party Conservative grand chefs says he has a list of five former cabinet members who support his campaign to get major step down. There is a report that President Trumps aides and allies are the idea of a public possible successor of jude Rex Tillerson. Ask seos and mike pompeo, insiders believe that the president s relationship with tillerson cannot bureau be prepared. Still, there is no timetable for him to leave. North korea is planning to test a longrange missile that might be able to hit the United States. This according to two rudge unless landers russian legislators who just returned from pyongyang, saying north korea wants to show it is ready for confrontation. It will likely be able to hit the west coast of the u. S. Campaign toional abolish Nuclear Weapons has won the nobel peace prize, at a prize. Onference at a press conference in geneva, he challenged the socalled notion of nuclear power, saying they do not bring stability or security. He was also critical of President Trump, saying that he made a lot of people feel very uncomfortable with the fact that he alone can authorize the use of Nuclear Weapons, and there is nothing people can do to stop him. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton, this is bloomberg. Scarlet . Up, how the new Jersey Devils hockey club is enhancing the Fan Experience at the rink. It involves selfies and a big screen. This is bloomberg. Is bloomberg markets. Im julia chatterley. Scarlet im scarlet fu. Julia now time for the stock of the hour, and pandora is popping high. It is not a huge move. The stock as up about 3 , but this is a stock that swings on a pretty big basis and pretty frequently, but today we have this case that stands out, and analysts stand myers stand myers sees a lot of positives here. New management and supervision from serious and liberty se liberty, and they have a 13 price target. This could rise by more than 60 from here. If we look in this chart, we see what a rough last 12 months it , asbeen for this company they have had a tough time getting the numbers to where investors want them. And now, still below the 50 day moving average. Tolysts price target is up here, 13. The buyers really take control. What about listener trends. Do you listen to pandora . Scarlet every time i log in, there is some problem and i cannot get through. Spotify, sose pandora is a bit of a mystery. But relative to active users, some people feel the way you feel, scarlet, because here is the negative trend on the bloomberg, the dashboard here on some of the internet companies. This is pandoras active user trend, and that has moved down, 76 million. This analyzed analyst has been talking about how to improve monetizing the base as much as possible, but a question how where the Cost Companies could bring back the number of active users to where it used to be, 80 million. Julia amazon deciding before thanksgiving if it cant sell prescription can sell prescription drugs. We saw this before and the possibility of amazon potentially branching out into the pharmaceutical distributions. Scarlet is there any space that amazon does not touch at this point . Is for theys turn likes of cbs, as you can see 3. 7 on thate news. Scarlet pharmacy stocks getting a bit of a scare, we will keep you posted. The new Jersey Devils have a new scoreboard, the largest in arena scoreboards in the world, where they will feature their deal 15 social media startup seconds of fame. I recently caught up with their by as well as i began asking brett about how this technology works. The first and only social Media Company that is able to identify people when they are filmed on camera at a live event, and send that content directly to their phone. For a consumer it is very simple. You sign up, take a selfie when you register, and our proprietary technology is able to identify when that person is on camera, and send that content directly to their phone, where they can share those video clips and images on social media. Scarlet and you have partnered with nhl and nfl teams, including the new Jersey Devils. For fans attending stumbles games, this will all be ,vailable on the new gigantic stateoftheart scoreboard. Inwe have made investments the pan experience, and we will not have the only the largest corporate only in the nhl, but in the world. It will be four stories tall, images will be gigantic, and this is something that will augment the Fan Experience, along with 15 seconds of fame. Seelet so when the fans to their faces up there, are there any privacy concerns raised by users . Think about the high profile data breaches that equifax and yahoo some people are more on it with sharing their data. Data. Are conscioust we of, so the content we deliver is for fans who sign up to the app. So we are nuts getting a public or private database except for the people who sign up, take a selfie, and one that content. This is great content, this is fans when they are having fun at a, this is greatest aldrich these are great assaulted moments, exciting moments, so people on camera want to those see them go up. That is something we are conscious of, something we are, like you say, with the various data breaches being something we always think about as we present the product publicly. We were one of the first to partner with the company, and looking for a way to differentiate that Life Experience and have it last people want to have something that is different and be able to share it socially, so we found it a great platform. Scarlet four devils fans, how much of aroldis technology play into their decision to attend a live game versus sitting at home and watching the game there . Investments help us give fans something unique and different and makes them special, so they are the stars of the show. They can broadcast to their fans on social media platforms and talk about the things they did that were unique. New iphone xes has a facial id software as well. I know it is not the same as what you use, but do you see it as helping your business or growing awareness of your business . Facial recognition has become more commoditized, and this is another example of that. But our Technology Platform is very robust. Facial is a part of it, but it is only a small part. There are a lot of different out rhythms and processes that go into what we do. And processes that go into what we do. Facial recognition has become a more mainstream products, and some of the privacy concerns are also part of that conversation. I think we deal with that, we , and fromy conscious a technology standpoint, it is only a small part of what we do. We continue to innovate outside of just biometrics. So i do not know it has a direct bearing now other than just raising the profile of some of the technologies that we use. Scarlet and i know that outside of sports, this has been used at college graduations, music festivals, you run the Credentials Center given what has happened lately in big venues, like what happened in las vegas, talk about the security changes you might have made or are paying extra attention to in light of tragic events like this . Have about 1. 7 visitors that 1. 7 million visitors visit us every year. The sophistication of the techniques and tools that are folks have to make sure that every person in that venue not only in the venue, we are seeing in manchester and other events, where it is any place people are gathering it will be a continual process, to make sure we are one step ahead in every way we can be. So this last week was just one looking atat we are how we can make sure that where people gather, people are safe. Scarlet i want to talk a little bit about the upcoming nhl season. The doubles play their home game on saturday. Go reds. Major fan, but yes, i did it for you. Lets talk about your expectation for the upcoming season. You have the number one pick nico quiche, what are the odds of making the playoffs this year . We have made the playoffs 20 years and are a land three stanley cups, but we have gone through a time where we are getting younger and faster, and changing our for lost the. Our number one draft pick is an exciting plater, so i think player, so i think you will see a number of players coming together. It could be spectacular, there might be some growing pains along the way. But we are trying to do the right things over the longterm, and is might be surprising to people. Scarlet that was 15 seconds of and. Eo that is now how a of turn the company. Time for the Bloomberg Business flash, a look at some of the biggest business stories in the news right now. Buying Chicago Bar Company for 600 million. Chicago bar is known for its healthy rx bar. They have been facing industry pressures due to price wars and shrinking margins. This is kelloggs first acquisition under their new ceo. Jamie dimon is calling bitcoin a , but this includes a soft price for the cryptocurrency. According to people familiar, this shows wall street is embracing virtual currencies. Finance will firms birch Financial Firms offering more coverage on the currency itself due to growing client interest. Going to bes announced in the second half of the month, the Company Wants to distance itself from the postipo flop of a similar startup, blue apron. Forill share investors limitary thirdquarter results plans. Disclosing its hello fresh is owned by rocket internet. That is your business flash update. Runner coming up, blade 2049 hits theaters, it is the type of film that used to debut in summer, but could be this falls next big success. This is bloomberg. Julia this is bloomberg markets. Im julia chatterley. Scarlet im scarlet fu. Julia lets get a quick check on the markets to get a sense of what the price action looks like today. Eight straight sessions of gains. This time, before the close of the equity markets today, it has a bit of softness, in the dow and the nasdaq. Hey, it is a friday. We have had some gains in a bit of consolidation makes sense. There is a broader nervousness. There have had some headlines that we might see a rocket launch from north korea over the meat and weekend. Scarlet going into a weekend where anything can happen and ned ofesident has war things that could happen. Is enjoyingr bros. A good run at the box office. Wonder woman, what else did we have . Scarlet dunkirk. Julia dunkirk, it did very well. A prequel coming up, a sequel coming up, blade runner 2049. Great to have you on the show. When you are talking about a sequel for something that was so popular, as blade runner, you have to wonder if it will be a hit or a miss, but the buzz seems like it will be a good one. You are exactly right. A sequel, often it is a prequel and a spin off. Having a moment of remaking, sterilizing movies from the past, and blade runner is an iconic film. At the time, 1982, considered before its time and heavily influenced the 80s. This new version, which takes place 30 years after the first, 2049, as it is called, has been getting up to buzz and has been highly reviewed from critics. Overnight, there were lots of first screenings and it seems to be doing really well. So it is a risky projects. Scarlet it is, but they made sure to stop it with bankable stars. Ryan gosling, Harrison Ford, and kind of a bromance between the two. It has been reported it was a favorably harmonious set, they have been talking about how they hung out together and how Harrison Ford punched him by accident. So all of that is contributing to a lot of goodwill as well about a fairly dark story. Ryan gosling, jared leto, Harrison Ford, all big drawers at the box office. Ryan gosling was nominated for another oscar story, and just the visual effects with Roger Deakins as head of cinematography, people are talking about an oscar for him. Going topeople who are make potentially a lot of money off of this, and it is rrated. So there are limits on how much this can do. Julia given the subject matter, where it is Artificial Intelligence or the role of technology in our lives, is that much more relevant today than it was more than 30 years ago . I cannot wait to see this one. But the question is will it help the box officep receipt . 2 billion worth of Box Office Receipts this year. What is your bets here . That is what they are hoping. It is close and they have only done it once before. It does mark a bit of a revival for them. They havent had a difficult that have had a difficult time with their movies like d. C. Comics, but they have had, with wonder woman, more success. This is more it will be a bump for them and sony as well, which will not only be distributing overseas, but heavily invested in this movie alongside other billionaires like fred smith and fringe is true, the mining magnet scarlet the former president of the fedex. What are they saying about another sequel, because they have to move quickly. Harrison ford is 75 years old. Someone was telling me involved in the film, he was telling people after the premiere that it was sitting well or looking in good shape, so if there were not going to be if there were going to be more films, he seems ready to do them. But it is a question of how successful this movie will be this weekend. At the end of the day, it is not a cheap venture. Theaw that with mad max, new sequel that came out last year. It was very popular with critics, people liked it, but some of these films can be really expensive. On the of the ball ball for another film, we will have to wait and see, but people tell me it is an expansive universe of stories and there are a lot of things they can mine, which is the key. Scarlet thank you so much. Julia 675 million to make this profitable. Be done. I bet it can we have much more coming up. This is bloomberg markets. Julia it is 3 00 p. M. In new york. I am julia chatterley. Scarlet i am scarlet fu. Welcome to bloomberg markets. Julia we are live in bloomberg World Headquarters in new york, where for the next hour, here are the top stories we are covering on the bloomberg and around the world. Can puerto rico ever beat its bond crisis . We speak to howard cure, who says it is a municipal disaster that is about to get a lot worse. And a big week in tech. We will do sect top stories including amazons potential new Delivery Service and a softbank deal. Lets have a check on markets with emma chandra. We got the wardrobe. Emma markets were already. Looking at the major averages today, it is fairly flat. Not much of a selloff. Off just a little over there. What we see this morning was a mixed jobs report in the u. S. The Unemployment Rate fell. Wages rose. We saw a net jobs loss of 33,000. It was the first met decline in hiring since about 2010. A lot of people say this is hurricane related but we need to wait until next month to see if there will be further affects. What is notable here is that the s p is on pace for its first retreat in nine days. It had been up for eight days before that. Lets look at some of the movers, what has been driving everything. At the top. Ght it has been fueling a number of moves. This is on more news about amazons decision to push into drug distribution. They are going to make a decision on that before thanksgiving. And cvs both falling on that. They were already down yesterday , with an Analyst Report which said that amazon would be making this decision about whether to get into drug Sister Vision in the next two years. We are hearing they may be making that decision a lot sooner. Cvs are those who would be most threatened by amazon getting into drug distribution. A quick look at costco, down over 5 . That is on an earnings beat. They Beat Estimates on etfs, revenue, sales. Investors are concerned about falling memberships at costco, and the threat from amazon. Threateningrs to be everyone. There is overlap between the whole foods customer, now im amazon customer, and the costco customer. It is friday. Tv5197. Looking at gb this shows the weekly changes for the major averages. They were all down today. They have actually had pretty good weeks. Nasdaq, the dow, and the , four consecutive days of records. They have been doing pretty well. A little factoid the dow has had just for down days since september. E of the movers this week the financials are also having a good week. They are among some of the top performers. Are having the longest weekly running streak since december. I will hand it back to you. You so much. K a comment from President Trump on puerto ricos massive debt rippled through the Municipal Bond market. Puerto ricos general Obligation Bonds tumbled to record lows after the president suggested load should be wiped out in the aftermath of hurricane maria. The bonds didnt recover a bit after white house officials walked back those remarks. Here is how kyle summed up the weeks events. Kyle i saw a piece that day that trump spoke and said he is calling into question a muni market. He is not. He is being pragmatic and saying they cannot repay the debt. He is not calling the muni market out. It does not have the same unanswered characteristics. I think it is getting wiped out. Julia scarlet howard shore is with ever court wealth management. What do you think about winding out puerto rican debt . Is that feasible . Howard he captured it well when he said that a lot of the comments from the president would have to be walked back. There is a process in place for bankruptcy, and that was implemented by the federal government, particularly for puerto rico. And you should let the process play out, because there are a lot of creditors out there decides bondholders. You have employees, pensioners, many other creditors. So to have the president sort of eliminate whatever statutory and constitutional means there are on the debt by making that for theis worrisome market, and the market reacted. The market has been worried about puerto rico for a long time, on top of everything else. The vulnerabilities of the hurricane. But we really are hoping that the process will play out in courts, and have a coherent idea about how to fix the situation, and hopefully we stimulate the economy. Julia we have talked about this a number of times this week already, and it is complicated by the different forms of bonds. As you pointed out, there is a ranking system here for creditors, when you look at this as a snapshot of what we are dealing with. He said pragmatic. Bondholders in isolation have to be here, and recognize that you are talking about an area that has 70 billion worth of debt. Estimates to the tune of 90 billion as a result of this hurricane. Think you have got when you look at your agreement as a bondholder . There needs to be a reality check. Howard every bondholder for a different sector is going to want their holdings and their Legal Backing to take precedent. Leadfolks have a statutory lien. Some have a constitutional lien they think would trump the statutory. Something because there are revenues within a system, that would take precedence. That is why you really need a comprehensive approach by one overseer to this. Julia in a Bankruptcy Court or an overseer, does humanitarian crisis trump all of the things you just mentioned . Within the municipal world, there is not a lot of precedent for this. It is hard to imagine a judge saying we are either going to give bondholders priorities over Public Health issues, or kicking children out of school buildings, or laying off so many teachers and Public Safety issues that has to be weighed. A corporation, where if a Corporation Goes out of his this, something gets replaced. We are really talking about human lives here. It is unimportant distinction. Keylet it is a distinction. You said there is no real precedence in terms of the humanitarian side of the story. What kind of precedent is there that we can draw from, whether it is from florida, from texas, or anywhere else, that can be applied in figuring out the kind of timeline here . Howard i will answer that in two ways. I can look at detroit, michigan. Frankly, existing employees and pensioners got treated much better than bondholders. I said, need to maintain the infrastructure and the Services Provided by a city. If you are looking at florida and texas, because they are so recent the benefit among the benefits that puerto rico has it cuts both ways, good and bad, with washington, d. C. They are entitled to fema money. It is a question of what will fema cover. Restore thest infrastructure, the electric system, the water, the sewer system, which was in a pretty bad state of disrepair . Or would they put in additional money and make it stronger and better . Puerto rico is going to be competing, i think, with texas and florida for money, and we as investors ought to look at the possibility of having the economy restored, stronger levels in places like houston, florida, as potentially an opportunity. Puerto rico also has a representative in the house. But no voting. They are really combating a couple of structural, governmental problems. We are all waiting to see just how much the United States government wants to work with puerto rico to restore that economy, and what would it take . Scarlet that is what it comes down to. Julia politics are very important. Great to get here insights. Howard is with you do so Municipal Bond research. Lets get a check of the headlines with mark crumpton. Mark another weatherrelated story. Tropical storm nate leaving behind a pack of death and distraction in nicaragua. The storm killed at least 11 people there and caused flooding usedeas already daily following two weeks of nearsteady rain. Is expected to strengthen into a hurricane and hit louisiana early sunday. The governor of the u. S. Virgin islands says the u. S. Government hurricane response has been down to a science or go down to a science. He praised the efforts during Vice President pences visit to today. Oy to st. Croiz to reopen onchools tuesday. The Trump Administration has not had any success in repealing obamacare, so it is taking aim at some of its features. Administration officials told reporters it will give employers the option of whether to cover Birth Control in their healthcare plans. It extends an exemption meant for religious organizations. Toe bergdahl is expected plead guilty to desertion and misbehavior, rather than go to trial for leaving his post in afghanistan. That is according to the associated press. Bergdahl left his post in afghanistan in 2009 and was a cap dave of the taliban until he was released in a prisoner swap in 2014. Her daughter could face a life sentence. Global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Facebook,oming up, twitter, and google under the spotlight, as lawmakers continue to probe russias influence in the election. What changes could be underway . Scarlet this is bloomberg markets. Im scarlet fu. It is time for the Bloomberg Business flash. The Commerce Department imposing preliminary duties on canada after five canadas bob marty eight, who sold his jet at below marking the market value. Just last week, the Commerce Department said preliminary countervailing duties of 220 percent, following complaints from boeing. Is said to bele in settlement talks for bribery allegations in dealings with the libyan investment authority, according to lawyers representing a former bank employee. The u. S. Justice department is leading the criminal investigation, which has been plaguing the french bank for years. That is your business flash update. The Senate Intelligence committee is asking officials from facebook, twitter, and google to testify on part of its russia probe. We are going to send it to san francisco, where brad stone is standing by to go over the tech week. We hand it to you. Than a more eventful week most. Here to discuss it, tom giles of bloomberg technology, and eric newcomer, one of our star reporters. Not a great week for facebook, right . They had to turn over 300 russialinked ads. Regulation a dirty word in Silicon Valley . Is a very real possibility. Our colleague sera reported this week about how facebook lobbied for years with the s. E. C. In washington, d. C. To keep from having to have their political ad spending regulated the way it is on tv, radio, and print. Their argument was the space is too small. There is not enough characters for you to add all the disclaimers you have on radio and tv. Now, there is a very real possibility that legislators could come in, force regulators to impose some limits on this. That could slow the trickle of coffers. Nto facebook it is remarkable that facebook and twitter seem like punching bags all week, and facebook, the stock was up. Why doesnt wall street care about this, and should they . Eric i guess it is a 498 cap. On market we saw the trump a bump after the election. The stock market has been pretty bullish and has not been particularly responsive to these russia concerns, or north korea, or much reaction. From facebooks perspective, there is always going to be the fact that anything facebook is held accountable for is probably going to be reflected that the situation was for far worse than the intelligence agencys handling of hacking. There will be a level of political cover for them, if the situation gets worse. I think that would reassure people that facebook will not take the biggest hit. Reported oflleague a new program. Amazon will be picking products up in the warehouses of suppliers and is to beating them directly to customers. How worried should u. P. S. And fedex be . Tom the near, not a lot of concern. You saw the stock take one or two ticks down. Longerterm, you know as well as anybody that amazon likes to experiment and iterate, and they love spending money on warehouses and their network. The fact is, if you see them ,f they start to see success there is nothing to stop them expanding the network. In the near term, those networks cost billions of dollars. Fedex and u. P. S. Are in place. They have everything in place. I do not think it is something that affects them in the near future. Eric ecommerce and amazon in particular is a growing market. Amazon is looking for ways to fulfill all that demand. Eric, lets talk about uber. If there is not more uber drama, it is not a week in Silicon Valley. The word unanimous was remarkable in the board meeting, where they unanimously voted to move ahead with the softbank investment. Is this an end to the fractious mess . It was governance plus softbank. How could we put these pieces together . Everybody is getting something. Here was a lot of negotiation literally day of, night of, people were fighting about what exactly would go into this. One of the central points of ate was how much to track crackdown on traviss role in the company. The basic message was, it was clear they were about him. There was an idea to make it more restrictive, but less meanspirited. There were still thinks people did not like about it. There was enough agreement. Extrawhat does the billion mean in the bank . Eric there is a level of optics. He is useful, but the important part of the deal is the secondary, which could be in the range of 9 billion. 14 bank and investors want to 17 , with outstanding shares. It depends on the valuation, which could be around 50. The number is a moving target. Good for the company, but it is much smaller than the larger secondary investment that could happen here. Newcomer, tom giles, thank you very much. Back to you in new york. Julia brad, great to hear what has been going on this week. The bloomberg Senior Executive editor, brad stone. Scarlet still ahead, todays options insight. Crude prices having a pretty rough week. Julia this is bloomberg markets. Scarlet time for abigail doolittle. Abigail i am joined by the chief Energy Strategist at macro risk in visors. Thank you for taking the time. I have to give you props. The last time we had this conversation a few weeks ago, one analyst was talking about the idea that oil could go higher, toward 60. You thought the bias was toward the downside, that the propping up from the hurricane could be temporary. We have a great chart we showed them. Lets look at it. This chart shows this moving band of oil, moving around different moving averages. It looks like it is dropping their 44. You had a good call before, saying oil is not going to 60. These think it is going back below 45 . We are negative on the commodity. Will remain under pressure for wti as well as brent. We do think it could go below 45, so thank you for the props. It was a challenging market. I think we have seen the lower 48 productions taken offline from Hurricane Harvey and arm a. Net u. S. Output made it back 101 over the last several weeks. Now, we are right at this 9 million barrel per day level. It is pretty hard for us to build the case why oil should be trading above 60 when you have inventories out there, a rig count that was up again, and another blip on friday. We still think the picture is up and to the right. But the next year, maybe not the Million Dollar mark, maybe not the 5 million 5 million barrel per day mark. A 700,000 per day growth trajectory. It is enough to basically put a cap on prices. Below 45, somes of this would have to do with dollar strength. What do you think is ahead, just to suggest the dollar is going to go higher . There is a synchronized move lower in the commodity and the upstream and some of the downstream starks. Energy has taken the brunt of the move, i think off the back of a stronger than expected labor and Earnings Report this morning. We did inhouse analysis. We thought it was pretty bullish. The base cpi and Interest Rate forecast is a pretty powerful signal for the markets. Abigail your trade on the xlp, if you could look at that. The message is, get paid to fade. We had a move in september for the hurricanes. You in the market has moved such you can extract premium while maintaining downside convexity. Go with a 31, 33 point spread. I look forward to our next conversation. Back to you, scarlet and julia. Julia still ahead, a jobs report stunner, with jobs falling and wage growth surging. Scarlet but there is also a big caveat. Two hurricanes. Julia eyepopping charts you will want to see. Mark Tropical Storm nate could add a billion dollars to the hurricane bill already tallied this season. The storm has caused widespread damage in central america. When it hits the gulf coast of this weekend at expected hurricane forst, it could destroy crops, impact oil drilling, and damage property. Rooftop will airlift panels and batteries to puerto rico, where a hurricane knocked out power to 90 of homes and businesses. The first supply plane is expected to leave this week. Puerto ricos governor also welcomed elon musks tweet suggesting a rebuild of the island grid with solar panels and batteries, telling the tesla founder, lets talk. Attorney general Jeff Sessions issued a memo today regarding religious freedom. 20 principles based on the Justice Department interpretation of existing laws. Among them, that religious employers can discriminate in hiring. The memo helps explain the executive order President Trump signed in