St. Louis fed talking about the economy later. That is what is driving this market. Everyone stops trading until a breath. , 8 30, take everybody wants to see whether the momentum continues. It is not that we are 00 iserating, 197,0 forecast. The Unemployment Rate will be interesting. The Labor Department releasing revisions to the last five years. They could move it around a little bit. It is possible we could go below 7 . Just on a revisions basis. Street into aall tizzy, able take a while for people to absorb that. We are all above the consensus, we think what happened in december will play in january. We are talking about after five years having the best fiveyear pattern of jobs since the recession. This is north of 2 million for this year, possibly. Rate aside, what is really interesting is the average hour workweek is pure a session. We have taken the slack out of the system and we have got to start hiring. Does the street care about the jobs number . At 8 30, everybody is cheering, betting, is it really affecting what they are doing . It affects the idea of quantitative easing. If we get a good number and unemployment goes, on your morning show, someone said it will go under 6 . John herrmann. Type of fastthat forward, you will see quantitative easing the reduced more. That will impact wall street all the sudden in a dramatic way. Rise, a possible slowdown in construction. Aside from our wager, the most important thing at 8 30. Your number . 240,000. 232,000. 250,000. Price is right roles, you cannot go over. 32. Umber 32, you are number you have got president obama on your speed dial. You play a lot of golf together, you are an insider. Chris christie. What is going on . I know you are a democratic fundraiser. I like chris christie. His office is calling the Port Authority in new york and saying create a traffic jam because the mayor of fort lee i would rather not get into politics. Benefit to give him the of the doubt, i think the whole thing is a crazy. The truth will come out one way or the other. I was stuck in that traffic for 3. 5 hours. I was yelling and screaming. I think at the end of the day, oris tough to run a country a state. Some things fall through the cracks. I am glad he made an immediate decision and terminated those involved. Does it matter to 2016 . We dont know. If yesterday was the end, people will move forward. Every politician is going to have some things in the closet that will come out in an election. Those will move on and be news for a minute. Standpoint,litical was yesterday the right kind of apology . He couldes out clean, be even better off because he stood up and gave reporters all the time in the world and said i am sorry. I will take the blame. Some people said they wanted obama to do that when it came to obamacare. Say i am sad. Obama took it on the chin for health care, he came out and said it was disaster is how we started the aca. The good thing about the aca is we are now passed one Million People on the exchange, it is starting to do better. When you stand in front of the new york media for 1. 5 hours and you answer every question, you have to give that person a lot of credit. The question is, we will see if there is some sort of you are going to have the attorney general. You can ask him what he would do in that situation if he was in new jersey. He may have something to do with it because it was poor authority. Local investigations underway. A lot of politicians have you on their speed out you have a horse, are you willing to sign on . Too early. I am trying to make sure i can be helpful to the president while he is in this seat. I think some of those priorities that we will hear coming up in the state of the union about infrastructure, something i have been pounding been touting. It is the fastest job creator. We need a publicprivate partnership. Absolutely, there is an immense amount of money on the sideline. The answer is yes. More and partly, when you have this country rated a d on the structure, we would fail. It is not just bridges and tolls, nextgeneration gps, admissionransit c grid. Immigration reform. On the business side, whether the left or the right, those are bipartisan issues. Immigration, infrastructure, education. Income inequality. Issues for the next election. For today and the next election. Do you think qe could be blamed for income inequality . It got investors really rich. Flip a coin qe 1, 3. Qe 2, not for m qe housing is doing better because the economy is doing better. People want hard assets and are nervous about the dollar. The end ofn is at the day, will this create a bubble or not. When you have zero rights and you are being forced into the market because youre not going to put cash under the pillow, the question is are these multiples. Are we at the right setting for the market or the wrong setting . 14 for thetastic market, i dont think people we had a fantastic 2013, i dont think people are predicting that. Some breaking news. More on the target story, there was a data breach that affected millions of people. Target saying that up to 70 million individuals personal information may have been stolen in a data breach. The cost of the breach may materially hurt results. Of up to 70 figure million individuals. Target saying it plans to close eight u. S. Stores on may 3. We will follow this story and get the latest, back to you. Thank you so much. I waske speed symposium, there. The countdown to super bowl xlviii. Check this out. Years, get aive couple wins. We have got the coach and the players and the attitude. We have the same dream in the same goals. Coming out on newsstands today, the new bloomberg businessweek. Bitcoin dreams, everybody is talking about bitcoin. Is this thing real, what is at . Read about it in bloomberg businessweek. Wolf, ceo and founder of 32 advisors, former chairman and ceo of ubs americas, adviser to president obama. Joining us, a very special guest, a man who has been quite dizzy. New York Attorney general. Office reached an agreement with blackrock stemming from an svestigation into the firm access to nonpublic information. With the Mathew Martoma trial, everybody wants to know what is going on. What happened with blackrock . Andlackrock had the largest most survey and the history of financial markets. Tenant of thousands tens of thousands analysts providing them with information. They had the intention of getting information so they could from the market. They would go to an analyst before they issued their next report. They would ask a series of question that were clearly designed to find out what would be in the next report. They took all this data, a group called strategic equities, a quantitative unit within blackrock they acquired when they got barclays capital, would aggregate the data. They turned it into a frat smoothie. They factor that information to their decisions about buying and selling. We thought there were violations of securities law. The folks at blackrock, after providing us with hundreds of thousands of documents and allowing us to depose people, they said we are going to stop this whole thing, they did the right thing and they are cooperating with us as we continue our broader investigation into this whole area of early access to analysts senate. This is not about hard information. They do not care if analysts were right. We want to know because we are going to front run your report. That is the essence. Because it was so artfully woven together, they took all the data and processes so you cannot trace one individual, it was the aggregate of all these opinions, they did not disclose that they had access. Sat down with head of fixed income at blackrock, asked him about nonpublic information, how a firm like blackrock, who does get the first call from the street, how they use that information. People have a pretty good understanding of what is not in the public domain. There is not a gray. Listen, i was global head of fixed income before i was president of ubs, i know him well and i have respect for him ink andry f blackrock. You know what is nonpublic. Why do guys do it . Ofyou have an industry hundreds of thousands of people, there are always bad eggs. Firm likeook at a blackrock, to their credit, they saw something was wrong, he came in, they changed it, they are cooperating. Is really the role model when it comes to ceos in our industry. These guys are creative and thoughtful. I think at the end of the day, if they think there is something wrong, they will fix it. My question, attorney general, what exactly is it legal about this . Analysts are on the phone all day with clients explaining their views. Wouldid blackrock do that violate the law . Is this something that might be shady . It did violate the martin act. A very broad act. Holding the yellow pencil you have probably violated it several times this morning. I cannot say enough good things about the folks we dealt with their. Re. This was in good faith, resolved very quietly, cooperating with us. The problem was that analysts are prohibited from releasing data to a couple clients before they release a report to all clients. They were getting around that problem by doing a survey instead of having the analysts give them the report early, clearly illegal. Artful algorithms were then fed data in, it gives them a competitive advantage. It does not fit into the classic framework for what we consider Insider Trading. Federal securities laws have higher burden from the martin act. It is something we have been calling Insider Trading 2. 0. Running on analyst sentiment, last year when we stop Thomson Reuters from releasing data on Consumer Confidence survey, 5 seconds before they released it to the rest of their clients. They were allowed to move the markets. This is not hard information. Inse people just struck oil alberta or something, it is just for running what the analysts are saying. Was onlyt why the fine 350,000, as opposed to jpmorgan . Totally different situations. Cost ofhen pay for the our investigation, it was important to establish this practice should not be going on. They are cooperating, we are looking at analysts who may be to othernformation firms in advance of their reports. It is a broad investigation. Is an affair for blackrock to expect the first call . Fair for blackrock to expect the first call . There is no question it is the largest and the fastest to the firsty deserve call, they execute quickly, it is not a big bureaucracy. They can shake things up. That is not surprising. The question is, is the first call that they are getting in the public domain. That is where they are trying to thread the needle. There were firms that really icite concerned, an impl sense that people were afraid of losing blackrocks business if they did not cooperate. They had a system on breaking analysts based on the degree to which they cooperated and surveys. Note was something that was this is why there were no huge penalties, we cannot connect it specifically, they went through a quantitative branch. Blackrock taking a hit. Jpmorgan, you know this company, another week, another fine. 20 billion, they have become the vp of wall street the bp of wall street. I disagree. Will say jamie dimon and jpmorgan were the first thing to realize that putting everything behind you and enables you to tell the world you have it behind you. They are not, jamie dimon is saying yes, i will take the punch, fine me. We are living in Elizabeth Warren country. I do not object to living in Elizabeth Warren country. This is very calculated, they are very smart. My negotiations with them were excellent. They are very well run. There are other banks that have similar liabilities that are just hanging out in litigation. Paying billions of dollars to lawyers. At thehave been forefront of this whole intersection of litigation with tanks with respect to the mortgage prior mortgage industry and how rich nation took place how origination took place. There are now rumors that we will have 50 billion in 2014 on litigation. Other banks. Possible double what happened this year. Wouldt naming banks, we like to hear them, what would be some things you think are new to the marketplace that we are not aware of that would force these types of litigation . There big liability out is the cloud from the collapse of the mortgagebacked securities bu bble. I am cochairing a working group along with the Justice Department and other agencies, jpmorgan was the first bank. We have investigations Going Forward with many institutions. We are looking forward to using the template we establish with jpmorgan. Moving ahead to try and clear all this out. The misconduct that caused the Mortgage Backed securities crash behind us. Is that all the states settlement coming in, and the states also go after . We let the banks paid. Have investigations, most states, the statute of limitations have passed. We try to put together every possible entity. Fdic, credit union association, fhfa, justice, me. Youre going to see more deals. What is taking so long . 5 years, 6 years. The president created our task force in january 2012, we are moving along. Thank you very much, new York Attorney general eric schneiderman. Filling us in on the details of the latest investigations. Will be back with of the jobs report coming up. What is your number . You are watching the jobs day edition of in the loop. Life on Bloomberg Television and streaming on bloomberg. Com. I am Michael Mckee with Stephanie Ruhle and adam johnson. Moments away from the december jobs report, this is big. Taking a look at futures, up. Typically ahead of a big number, you see markets flat, today, optimists. S p futures up 8. 5 points, dow futures up 65, nasdaq futures up on must 1 3 of a percent. Of a percent, 3 there is a chance we could go below 7 . Imagine 6. 8 . Normally you dont do this Much Movement ahead of a jobs report. You must think it is going to be good. Sense iss to make robert wolf, former ceo of ubs america, chief economist at raymond james, scott brown. Looking for a gain of around 230,000. There is a lot of uncertainty because of seasonal adjustment on the Unemployment Rate. Holding at 7 , getting benchmark revisions. Some uncertainty as we head into these. You did not hear that i said 232,000. No. Alright. Like wall street, you have got to put your money on the table. Each one of us has a forecast. What am i going to do with that 80 . Stephanie is the bull. In more ways than one. Robert seems to think that a lucky number. He has been wearing that number since college. Adam 240,000. 238,000, over the past six months, adp and a jobs report has been within a couple thousand. Bloomberg Economics Team worldwide as its own survey, the numbers are in the median. Orecast at about 210,000 that actually turns out to be better than the wall street consensus, which is 197,000. Very quickly, scott. Unemployment the Labor Department could be releasing is going to release revisions to past numbers. Could we see a move that might have nothing to do with job creation . Certainly. The last few years, you have gone from a peak of 10 down to 7 . Looking forgiven up jobs, Labor Force Participation rate is down substantially. It overstates the improvement in the job market. We are seeing games, we still have a very long way to go to get back to a full recovery. Does wall street care about Unemployment Rate . I am not sure. As he mentioned, the Participation Rate is so low. As it goes lower and lower and unemployment number goes lower, you have less people working. Were not counting as many people anymore. We are down i like 62 . It used to be 66 . We need to get everyone back working and everyone looking for jobs. Is, do we question get a load 7 , that is the consensus. ,000 is the consensus for number of jobs created in december. Our questions will be answered by peter cook come outside the Labor Department. He has all the numbers and will be breaking them now. 74,000 jobs added in december, Unemployment Rate 6. 7 . A lot of the reason for that, people leaving the labor force. These numbers will come locate Janet Yellens job. 74,000 is the lowest number we have seen since october 2011. Well below our survey of 203,000. We saw some revisions, november up to 241,000. That was the best month since february. Something happened between november and december. 182,000for all of 2013, jobs. Household survey, 6. 7 unemployment. 0. 3 , 1 3 of that attributable to increase in employment numbers. Decrease in the civilian labor force of 347,000. 62. 8 Participation Rate, lowest in years. Retail up 55,000, temporary hiring up 40,000. Wholesale trade, up 15,000, manufacturing getting 9000. , construction down 60,000, government down 13,000, information down 12,000, hollywood, 14,000. Our average Hourly Earnings up, year over year 1. 9 . Hours down to 34. 4. Some seasonal adjustments to the household survey, they are modest. The most notable change, octobers rate was 7. 2 . Bottom line, a confusing number for the fed. Peter cook, wall street trying to figure it out. Futures up. You would think with the disappointment on nonfarm payrolls we would not be up. 5 , as in theut futures up. 25 , if we could show the 10 year, big movement. In at a chart of the 10 year an intraday chart of the 10 year, someone just pulled the plug. If we are not creating jobs, that eradicates the whole notion of taper, the fed might untaper, a big reaction on the 10 year. Michael mckee just became 80 richer. Congratulations. I will go home and feel really guilty. Trying to figure out what went wrong. Manufacturing jobs lower than expected, construction, the weather was bad, construction is a monthly blip. What stands out to me is that there were zero jobs created in health care. In november, 26,000 in october, 14,000 in september. 57 thousand in august. Health care and education has been the two biggest job creators throughout the entire downturn. What it looks like is maybe just maybe there was an obamacare affect. Health care providers not knowing what the situation was, held off on adding people. That is something you would expect light up like a christmas tree. On aam not saying this political basis, i am saying this on a practical basis. If you dont know what is going to happen because there is talk of delaying obamacare and all the problems you were having a november, they may have sat on the sidelines. Now you have got to say this Football Player is also a smart guy. I in using my wharton numbers. Of 38, twoease 41s. Total 356, about 178 average. Average for the year is 180. Looking over the last two months when everyone was shocked by the increase in november, all we did was flatline. We are taking a longer view, we are at the flatline. A lot of volatility. Back in 2012, it was zero and everyone said oh my god, then we had 250. This is a pathetically poor number. You weigh in. Has Janet Yellens job just gotten harder two days in . We have had the debate about go 10 the fed would billion in reduction every policy meeting or perhaps 20 billion at every other policy meeting. This suggests they may wait until the march meeting to decide. There is plenty of time to observe these trends. Bear in mind, seasonal adjustment is pretty difficult in december, it is going to be even worse in january because you get the end of the Holiday Shopping period. You want to take these numbers with a grain of salt, they get revised and we have annual bench mark revisions. The other problem when he says a grain of salt, salt all over the roads causing problems. It could be the weather. A lot of people talking about a weather affect in the forecast. You didnt see it in adp, a big difference in terms there are methodological differences. Peter, fill us in on the weather impact. There was a weather impact in the household survey. It does not affect the 74,000 number, maybe some noise that is going to have to be washed out. 1. 7he household survey, 174,000ulltime fulltime workers reported that they were parttime because of the weather in the month of december. The highest number we have seen since 2005 in december. At all did not work because of the weather in this survey period. It was not reflected in the 74,000 number, something to consider. There was a storm that shut down the federal government december 5. We will have to look with the numbers get revised. The point about revisions is well taken, a big change for november, no change to october, this is a difficult period because of holidays. Stephanie, your question on chairman yellen, i dont think it changes the lowering of quantitative easing. Participation rates stay the same, 62. 8 . They made it clear they are looking at the unemployment number. They are looking hang on. Participation rate. That is the lowest since march 1978. That cant be right. Seriously . Towe have been in that 62. 5 63. 5 range. Does it complicate your life as an investor and a trader when the Unemployment Rate is 6. 7 and the fed has said we are going to raise Interest Rates at 6. 5 , their guidance does not mean anything now. As an investor you have to feel like rates are going to back up. Easing is going to hold off. Today bodes well for what i think bill gross has been saying. This morning, he talked about that is coming back. Bonds coming back, staying in that one year to five year duration. Slow growth and bounce coming back. I think they will continue to lower quantitative easing. They will lower it at each point in time. Million 10 their Balance Sheet is still in the trillions. Theyre not selling their Balance Sheet. They are lowering what they put in the market. It is still increasing at a lesser rate. Michael mckee, it was last april that ben bernanke said we are going to be done tapering once we are at 7 unemployment, we have not even begun yet. Re economists continuing to put so much weight into this guidance . That was an official guidance, that is no longer operative. 6. 5 is official guidance. Let me ask scott brown, what do you think . The fed tells you they are going to start thinking about it at 6. 5 , there at 6. 7 two years ahead. They have downplayed the Unemployment Rate as a threshold for forward guidance. Policy that in the Statement Last month. There was a debate about whether to actually lower that threshold. The majority of fed officials decided that was not a good thing to do but that it would give qualitative guidance that shortterm Interest Rates would remain low well after the Unemployment Rate goes through 6. 5 . The markets are well aware of that as well. There is really nothing magical about the 6. 5 Unemployment Rate, we could go through that within a couple months at this right. The key is the pace and tightening. It is not just the payroll numbers, a lot of different things. Thank you very much, chief economist at raymond james, thank you for being with us. Keeping the focus on jobs. Not just adam and robert and stephanie. Robert mentioned bill gates bill gross. Officer,ief investment Mohamed Elerian will be in the loop next hour. We will ask him about the stay long on bonds call. You are watching in the loop, a fresh read on the u. S. Economy, december jobs number is. Adding just 74,000 jobs. Heres is what is so curious, it fell to 6. 7 the jobless rate fell to six. 7 because we are counting fewer people. The Labor Force Participation as low as march 1978. That is the problem and that is why the market and wall street players are going to have to debate this number and figure out what is more important. As we look at different industries, one thing that is clear airlines are hiring. That may come as a surprise. Take a look at this, there is the Airline Index versus the s p 500, up about three times as much as the s p over the past year. Who is actually doing hiring . Airlines are finally hiring again forceout for the first time in three years, Southwest Airlines is looking outside the company to hire Flight Attendants. Employee perks like free air travel, southwest saw resumes at a record pace of 10,000 in two hours for only 750 spots, about 80 per minute. Southwest is not the only airline to be inundated with applications. 22,000 resumes for 300 jobs in 2012. Merging with american airlines, u. S. Airways got 14,000 applications for 420 openings. Industry hiring still felt last october, that is the smallest decline in 13 months. With profits forecast to rise 52 this year to 90. 7 billion, airlines are flying high again. In hiring is set to continue, airlines ordering bigger planes, expanding international routes. Maybe a career for you, adam . A Flight Attendant. You can bring me a diet coke. Southwest said we are going to have 750 slots, they got 10,000 applications in two hours. The annualized rate for Flight Attendants with southwest. Guess. Ne him how much does a Flight Attendant make per flight . Starting salary. 2,000. Flight. 8 per of 72ly an average flights, 19,003 hundred dollars, this is a tough way to make a living. Fueled passenger outbursts are surging. More and more people going wild on a plane for 20. No tips. Salary, youtarting start low anywhere. The median pay for a Flight Attendant in 2012, 30 7,240 37,240, above the median for all jobs. Was thinking they are on 20 weeks a year, making 2000 per week. Fly 75 hours to 90 hours a month. Nice recovery. The ceo of southwest, we were on the jobs counsel together. I went down to texas. He is as cuttingedge as ceo in this country. He has taken an airline that was a local hub and has made it a global company. Betweenally is driving north america and south america. We know who is going to get peanuts, 2000 jobs in the Airline Industry in the past month. Robert wolf is a 32 advisors, he is staying with us. You are watching in the loop. In focus keeping jobs all morning. Can coceo Mohamed Elerian reacts to the numbers in a few minutes. Youre watching in the loop, our guest host robert wolf of 32 advisors. The numbers are ugly, the country added 74,000 jobs in december, more than 100,000 fewer than forecast. Unemployment drops to 6. 7 , the fed said it with think about raising Interest Rates when we got to 6. 5 . It is amazing. What is really happening here, we are not counting people. When the Labor Force Participation follows the slow, the 6. 7 jobless rate is meaningless. It does not matter. You mentioned infrastructure spending. Do we need job training spending . Off week macys is letting 25 hundred people. There is not a jc pennys looking to hire them, what do we do about these people . Gap. Ere is a skills entrepreneurship and getting people involved with science and technology at an early age is important but not is important. It is a priority for the president and for all the state governors. Weis a priority for parents, need to get education early and make sure it aligns with skills that this country wants. People talk about job training and it sounds good in a political rally. What does it mean . It is not true. You have a lot of Companies Working right now, whether it is variousy colleges or skill centers, i will give you an example. Mcdonalds had a thing, i forget what it was called, something under the arches. They worked with the Hispanic Community to open mcdonalds as franchise owners in communities. Types of all these skills training that we have to make sure blossom. One thing we are missing on a positive note and this number is manufacturing. Manufacturing went up again. We are building things again in this country. , 2013ghest it has been was a heist year for manufacturing in the last 15 years from a payroll perspective, that is good. People want to buy america, that is positive. What about Small Business owners saying i am afraid to hire people because of obamacare . Were not seeing that. Were not seeing Small Businesses not hiring because of obamacare, that is not factual. We should note that obamacare does not take in kick in until north of 50 people. You are right. That is not accurate, lets chalk one up for that. 80. U did not went Hourly Earnings only up 1 10 of a percent. Start makinge money . There has been no Wage Inflation for years. Should there be . Yes, it is important people make real money, we are still a consumerbased economy. Ofthe federal minimum wage 7. 25 an hour, 40,500 a year 14,500 is too low. I would be in favor of changing the minimum wage. Times whatw make 232 the average employee makes. Problem in this country on income inequality. Whether you are at the higher end, you want to make sure people are doing well in america. I do not think anybody at the higher end, myself included, is happy the way this is going. Is stephanies point, a lot making sure we give people the right skills. Why is unemployment down . Construction is up. The biggest contributor to unemployment during the procession was construction. Ofstruction has unemployment 25 . We are heavy on housing and building. Have ap, we will slowdown in housing and be never sought unemployment. Have a slowdown on employment. Has thet wolf, president s number on speed dial. Thank you so much. We will donate this money to charity. I win, nothing to take me to lunch. Over television is on the markets. Futures up. 25 , betty liu is coming up. We will be right back. Welcome back, youre in the loop, heres what were working on. What a head scratch of this was, payrolls in December Rose of the slowest pace in nearly two years, indicating a positively recent strength that we have seen in the labor market here in the u. S. That may have been reflective of the effects of the bad weather, but the jobless rate held to a fiveyear low of 6. 7 . Equity futures pulled back but treasuries rose after the jobs report, and an investigation into the target credit breach reveals that information for nearly 70 Million People stolen, including names, addresses, phone numbers, and the bells. As the programis continues. The big news this morning, the jobs report. Economicsbring in editor mike mckee and chief washington correspondent. Who broke the news for us. We are trying to figure this out, how we can see a jobless rate falls to 6. 7 , but at the seven small smallest gain in two years. Aswere scratching our heads well, trying to set these numbers, digest them. Not only do you have the disconnect between the ,nemployment rate of the jobs youll set the 74,000 number for the month of december, get the ball before that but 201 241 thousand with the best month since february. Sub the gap between november and december. This will be ample opportunity for revision, well have to see, but it is a disappointment. Again, the 74,000 number of worst ever with iensense on over of 2011. 6. 7 , the reason we brought that forward is as we have more people than ever leaving the workforce. It is lowest number weve seen in 35 years. That is not good news for the economy, it would particularly bad month to be an accountant or bookkeeper, 25,000 of them lost their jobs more last month. I know youre right there with the numbers broke, and the Immediate Reaction market is what does this mean for the fed . You saw the yield come down on the tenyear. Does this mean that tapering is off the table for now . This is not really going to affect tapering at all will even you it is4,000, roughly in line with the last few months or so. The fat is going to is he more than one month worth of data before making in the decision. He will begin talking about onsing Interest Rates, when ivious to 6. 7 six 15 6. 5 . Does guidance mean anything more to the guidance if you cannot take that seriously . Then on what do you base your decision to buy or sell . The other thing that stood out to me was that there were zero jobs and health care last month created. The strength of the labor market for the last 2, 3, four years. Im wondering if there may be an obama carryback there. Hiring combatf on with my might get a payback in the next couple of months. Do you think the republicans might latch onto that . I think what youre going to see is more debate about the unemployment benefit situation. We have this thing debate happening up on capitol hill of whether or not to extend emergency unemployment benefits. This is going to supply ammunition to democrats that the time is not right to pull back on those benefits. People are hurting. At the same time, you have this Unemployment Rate going down. When does the emergency and in terms of those additional benefits . That is going to be a shortterm political fight, but there will be a lot to chew on in this report. Not just for those on the fed, but those of capitol hill. See the democrats yielding to a shorter extension of the jobless benefits . I think youre going to see a growing clamor for some sort of deal. Theres a lot more appetite on the republican side for achievement deal that a one month deal, which the democrats have been pushing even up to yesterday. They worked really hard, even if it is going to have to be paid for. I think the incentive to cut a deal on that is going to grow as a result of this number. Ofwere going to ask that jason furman adjusted little bit. In just a little bit. Others a quick look at company headlights out this morning. It was a Great Holiday for tiffanys. The Jewelry Store known for its little blue boxes reported a rise in sale in november and december. Tiffany also maintained its fullyear profit forecast. Operatesler which sears and kmart stores drop ly. Ling sharp that stock has been struggling the last month or so. Mercedes sales are accelerating. The worlds thirdlargest lender carmaker closing in on second placed audi. Sales surged 64 last year. Automaker german outpaced audi in the united states. , bill root in rudin joins us. Better to talk about the jobs report and the impact on the fed did pimcos ceo mohamed . Ly rm elerian plus, were going to go to the white house about with jason furman in the loop. If youre feeling the squeeze of city life and are tired of paying 50 for a cocktail, you might be in luck. Many companies are moving to the suburbs, and secondary cities are drawing the frugal crowd and pick painless rent will they do that. You do this yourself . Will realized it was impossible to drive around, and i decided to move out to the suburbs, and im very happy i did. A lot of companies have made similar decisions. A lot of Big Companies already are in secondary cities, or in what we root for to new york as flyover country. There in way up redmond, washington, and has been there forever. The same is true of make of america, dow and charlotte. Aboutwas a lot of talk whether they would move their headquarters you to new york, and they did not. A lot of those executives are pretty happy about that decision. They do have companies that are kind of moving out or growing big out in their secondary offices. Growingsachs Biggest Office is on salt lake city, utah, which is a fantastic place to live if you love to ski. There are a lot of cities in america that are growing because of a trend which we would call X Organization exu rbanization. Denver is one of those vague moving cities big, booming cities im a the houses are much more affordable, as you would expect. There is a very Diverse Talent pool out there. It is not the same type of go go, dog eat dog city people. They have a vibrant cultural scene in denver. A comparison of home prices, you can see what you could buy for 1 million here in new york, compared to what you can buy in denver is a lot different. Here in new york you are looking 515,000, in Central America that is a lot of money. You can get a two bedroom it isent in new york, but very unlikely. In san francisco, you could get you could house get a house, but for that you s, fiveet five bedroom bathrooms, in the event or in denver. Thank you. Guest wouldmy next say bring it on. Demand for expensive, big apple real estate is still there, and stock. Mr. New york joining me. A collection of condos, townhomes, and all in downtown manhattan. You cannot even move into that until late 2015 . It is a few months away, but we have sold 80 of those in just a few months. Ave to disagree for that with that last report. There are trees in your kitty, and the growth in demand, just yesterday, ibm announced they are moving from westchester down to not far from our project in the greenwich lane in the east , to open their center for cloud computing, innovation, and incubator space. Example of what you mentioned with greenwich village, and the demand out there, on the flip side, some people might say that this is why i am worried about moving to been happened to manhattan. I might get squeezed out by everyone who is more money than me, and i have to go subway sells might have to go someplace else. Thehat were focused on last two years is creating opportunities in the other boroughs. The 250,000 over feet for 25 a foot. You have the highend, the media mad, and you have the lowcost alternatives. We have a company that has grown to almost one million feet of space, create shared workspace. That is the dynamic that is going on in the city. There are many competitive cities, and we have had many weursuers on world have had many entrepreneurs on. Somewhat to make st. Louis a new checkup, at the same case with washington, at michael dell in texas. We have to be competitive, went to continue to grow our city can we have to continue to find opportunities and invest in infrastructure, and transportation. You saw the governor announced the other day copper billion dollars of tax cuts focusing on getting computers to schoolchildren with the within this space. To be competitive, and attract companies. I think you will see continued announcements of Companies Growing and coming to new york city. The Biggest Issue i hear from your click from new york leaders will become to new york , is, is the infrastructure the transportation about the traffic. Like bridgeincident gate, which is not exactly shedding sparkly light on the new york city politics, or its insured trucker just it infrastructure. You have all the researcher going on in Lower Manhattan with the trade center, and the translation train station. You also have he site access, which will connect midtown to the ridership of long island. You have tremendous about of moneys being spent for the , online sooner rather than later. Yous never fast enough, but of the capital that is being floated to the city. Yet investors from all over the world, the chinese just bought one manhattan plaza. Imperative to the confidence of the city, and looking forward. There are so many dynamics and we had to be competitive, we have to be aware of all of these issues whether it is affordable housing, quality education, we have to invest in those things to make sure that we are at the top of the list wouldnt cover these are the gay by our expanding, to come to new york. Your family has been dismantled shipping new york. You are on the Tax Commission that has been appointed by governor andrew cuomo. There are some who are very concerned, particularly as his legs, about the tax issues by what they need with the new incoming there incoming mayor be defined as someone who will raise the taxes on the wealthy. I think he was to try to solve certain issues. A philosophy and an agenda to a published that, but i think all of the things that he are talking about is talking about is education, infrastructure, the things that all of a sudden the Business Community care about and look over to working with him and his administration. He has brought in a very good team. Commissioner,ice the former deputy beer, mayor, you want to see what is going to do the terms of with oneu in agreement of the initiatives that he is talked about witches raising taxes on the wealthy in order to pay for universal education in your city in new york city . I would agreement with the idea, but how you fight as that is the question that comes into all of the things we have talked about before. Remaining competitive with all of the options out there. You have to look at it in the whole sense of what it cost to do business in new york, and how what it costs to raise a family. Do you pay a premium to live in the city because you have trees, open space . New aquariumnced a the coney island, and we are opening a tremendous terror cell Lower Manhattan that will be in addition to battery conservative. These are things that need to be funded, and all of these things have to be taken in its totality. On a final note, the commission that i just mentioned, there is that this proposal to freeze property tax increases. It does not apply junior c suite, why is that to new york city, why is that . It would have a huge impact for the would make up for the non property tax cap . Thehe city council controls robert intact, not the governor. It is all tied into the governors most significant tax reductions for corporations. They create the sort of zones that i mentioned before, and we have to look at everything. The totality with the other cities and regions across the country. They are all competitive compared trying to grab the companies. That is why were seeing the response. Youre seeing these like ibm othero our area, countries that are expanding a fashion and media. Went to continue that positive momentum. Great to see you. Minutesbe back in two no . Im hearing that were going to go to Olivia Sterns . Hi betty, i would update you on what has been happening with target today. We got an update on their Financial Performance which was impacted by the data breach. The target is saying now what was stalling includes personal 70 million up to people. Names, emails, addresses, up to 70 Million People. They came out and cut their fourthquarter earnings, and 1. 60. Sly they saw thank you. We will be back with the opening bell, and Mohamed Elerian joining us with his take on the jobs market. Will come back, you are in the loop. Louvered television is on the markets. Disappointing jobs number, but Futures Holding on to some kind of games to i this downdraft right after the number came out. Were looking here at the s p. Jobs numbers can actually be good for the markets. Climbed higher from its low around 11 00 a. M. As you can imagine, and the treasury market we are seeing yields fall under 2. 9 . The expectation that the fed will slow down its bond chases driving record is driving purchasers into the bottom market. More many the system he values the currency. At gold here. We do have a continuation of monetary policy, if growth picks up above we will see that take up after the numbers. Thank you. , as you just saw, are reacting to this monthly jobs neighbor data. Jobless0 last month, rate down to 6. 5 by fiveyear low. Oughi d i have been some surprising jobs report of the last few years, and this is one of the most surprising. How did we all miss that . It is very surprising. It is somewhere between puzzling and worries some. Puzzling because it is such a abouth straight number even if you added the revisions from last month. What still half of consensus was, and it is inconsistent with lots of other data. It is also worrisome and we have to remember that. Within the report, we get some worst singles with what is happening with labor participation. Longterm unemployment still stuck. We are going to learn a lot more about what is the effect of the weather, how much of this is real, how much of this is temporary. It is a shocker, to put it mildly. Could it be perhaps something that is just a oneoff that we will be puzzling over, but does not signal a trend . I think it is in between. Definitely an impact of whether that we had to figure out, but fundamentally it reflects an economy that is still trying to gain enough momentum. An economy that is still stuck between second and third year. A much highernd gear and much higher speed and is not there yet. It reminds the markets, not only although we believe that they will continue to taper, and by the end of 2014 , the fed will be out of the qe business, but it reminds the market of the biggest forgotten , that that few weeks that is unlikely to hike rates in 2050. It is more likely to be 2016, but not 2016. The market is starting to recognize that the fed may be to not just get out of the qe business but less eager to hike rates in 2015. But this has to be confusing for janet yelling at her current yellen and her colleagues. They had some very specific targets for when they are going to hike Interest Rates command where the job started needed to be. They had the inflation targets, and whatnot. When you have a number like this, that does not make sense, it has to be very troubling for the fed because then they have to question whether their targets are actually real, or correct. They have already prepared in three ways. First, they told us that the Unemployment Rate, the 6. 7 does not capture the extent of labor market issues. Also, look at the price data about the inflation data, which is too low. Do not upset over the unemployment number. Third, they reminded us that there are the issues that theyre worried about who which is the eventual soundness. But all of this together, this number doesnt change the expectation that they will continue to taper, and execute me by the end of 2014. Youit does suggest that will not get a rate hike until 2016. Said we have objected should we have abandoned this jobless rate . It is less and less react give of and reflective of what is going on in the jobless market. Most economists will tell us that there is a plus two 80,000 minus 80,000 error range. When we focus on a consensus number, etc. Range number, we are being inconsistent with how accurate this information can be. That is the reality. Having said that, the Community Like sensible lovers, that is why we are obsessed with the consensus number. The important thing is to look and averages over time can to look at the other elements, not just to obsess about one number, but to look at the other elements of the performance report. Does this change your forecast for earnings this year . For where you think the companies how committees are going to companies are going to recover . Were still analyzing the number, so not as yet. Our forecasts are based on a more holistic outlook on the whole economy. This is just one small part of a bigger picture. That does not change anything. That just confirms the view we had to begin. We will be talking more about the jobs report, and jason furman will be why it live from the white house. From las vegasrs begin heading home, we are going to ask about the coolest gadgets we saw at the show. Stay in the loop. As weve been discussing, the december jobs figures are out, and then goes ceo Mahmood Al Arian with me but and also the president of the president economic advisers. What is going on here . Thateres no question december was less than ask beck did, but every month, when the numbers are good, when the numbers are less than expected, i do the same thing, and look back at what is happened over what haske that happened over the last 3, 6, 12 months. Recovery that is continuing, and it is going to be volatile from month to month, but youre going to see an ad economy that overall will continue just drink that continue to strengthen. Im not just talking about the number of dogs created at only 74,000, but you also have the fact that average Hourly Earnings have come in lower than x occasions. You have weekly hours worked lower than expectations. Zero jobs created in health care, manufacturing only 9000 in december. Some people are saying, we thought we were in recovery, what happened here . I do not think anyone should data andmonths fundamentally alter their perception of the economy. A wide range of data all showed that as 2013 went on, the economy was picking up momentum. Member, the budget deal we reached a december is really good to be aboard for the economy to it is going to be important starting january Going Forward. That deal is not even reflect dead in this data. There are certainly a lot of things that are volatile and bounce around a lot from month to month. Lost 25,000 accounting jobs in december, according to this data. Lost some really seasonality and fluctuation in a number like that. Can you give us a sense of how you think todays report is going to play with the ongoing discussion on capitol hill of the emergency unemployment benefits, and then the next discussion on the minimum wage . How you think theyre going to react . I think this is just another clear argument as to why we really need to extend Unemployment Insurance benefits. There is a struggling striking fact we look at the Unemployment Rate with the shortterm Unemployment Rate is now below what it was during the last economic recovery. The entire reason we have elevated unemployment is because of the longterm Unemployment Rate. It would be unprecedented to let emergency Unemployment Insurance expire with that Unemployment Rates at this level. This is clear evidence for why this is absolutely needed. I lot of burkett a lot of people are working really hard to look for jobs. Their lives are difficult, we should be helping them. Minimum wage, not i support one way or another, the motivation for that continues to be that we would like to see wage growth for families of the bottom, at the middle, and overall. Some republican opponents would come out and say, we have seen this pretty big job at the. 7 ,ss rate by down to six the lowest rate since the recession. Is this really an emergency anymore . We focuss exactly why on that longterm Unemployment Rate. That is the reason we need to extend benefits. Heres something important to understand, right now for every havehat has a vacancy, you 63 people unemployed looking for that job you have six people look the for that job. More to to be doing create jobs for people who are working really hard to find those jobs, and in the meantime, we need to do more to make sure that they can pay the rent, pay rhe mortgage, meet their ca payments and put food on the table to make those jobs. Economists like you look very closely at the budget, at how washington is spending its money. Can washington afford to extend these jobless benefits . Can, and it should. If you look at the three problems we have in this country, we have insufficient aggregate demand, and adequate inadequate supply responsiveness, and that bubbles. The emergency unemployment benefits, in addition to being the right thing to do from a acialist perspective from the supplyhelps on oversight. That, it makest both social and economic sense. With the democratic cap consider, they would say that we would believe that this is the right thing to do, republican say we agree, we just want to figure out how to pay for it, would the democrats except a shorter just extension of the benefits . Yesterday, senator reid put forward an idea which was extended for a year and pay for it. His idea to pay for it was not something he took from president obamas budget, it was of the heat took from all rights budget agreement it was taken from paul ryans budget agreement. There was a bipartisan proposal to both senator jack reed of rhode island, and senator heller of nevada. ,hat was a three month, clean extension of Unemployment Insurance. If we cannot figure out how to provide for those benefits, to a clean threemonth passage. Thank you. Mohamed elerian, ceo of pimco. Two years since it ran costad, the shipwrecked concordia is ready to be moved, but where is it going . Stay in the loop big o in the loop. Here to look at the top tech google employees with a tied to a secret of group, the one that made google glass. Edward snowden took the most secret average u. S. History would he downloaded from the nsa. Verizon communications and other u. S. Characters might have to pay up if they want to keep those phone records for the nsa. After a meeting with president obama yesterday, it would be too costly for phone companies to retain the metadata in and fight expose them to lawsuits. In tech ande latest media only on bloomberg west. Of thes the final day 2014 International Consumer Electronics Show in vegas. It was a big year for ces, we saw a lot of really cool products. Omberg intervening at contributing editor had a great time. You, what picture of is this . This is one of the things that has been betting that getting the most attention. If you put on the glasses, and you are suddenly inside a virtual world. You can turn around with the world ships with you, you look down at your feet, the world ships with you. Layupre a lot of location, but it is great for lots of other things. For military training, reducing medical applications. Virtual reality is this something that people of the talked about for 20 years. It has never worked, because the chips have not been taxed enough fast enough. Relatelar rest, almost actually worked. Photo. One took a is it heavy . That was one of the problems of the early Virtual Reality not. Ms, but this one was i was not a very good video gamer, but im enjoying the world in which im testing it out. Drones are a big topic the better watch. People are buying them for recreational use, and farmers are using them in their own business. What is this . A French Company with a cool drawing demonstration that had a lot of people. They have iphone controlled mini drones. They turned on subject so tec chno music and had them dance around. Drone is i know some not going to be about my house spying on me . You do not know that. There were multiple demonstrations where they had cameras inside the drones. People want them on the drones for valuable purposes, like checking on your crops. To let you know if you need to water somewhere. And spying on your neighbor . That is a little scary. Also got it just to test got a chance to test drive the new bmw . Possibly the worst place to do a test run, because youre going through ces traffic. It is pretty impressive, bmw is making a big deal about it. They are very excited about the carbon fiber frame, the relatively light car. A one pedal drive, you let your foot off the gas. This is presumably cheaper . It is about 40,000 before tax credits but which will drop down what the pending under state a bunch depending on your state. Thank you. Time for the global outlook, french president threatening legal action over claims he is having an affair. Expose of thehoto leaders alleged glacier both an actress. The president is not married, but has been in a longterm relationship. Six men were found shot to death near sochi. Uspected of staging the assassinations. That doesnt here for us and does it here for us in the loop. Bob benmosche a will sound off on my new book. That is next week at 8 a. M. 56 past the hour grew which means that Bloomberg Television is on the markets. We are 30 minutes into trading, after that very disappointing jobs report. Lets take stock of where the markets are trading. All of the indices are clawing their way haligher. This pope did crunch the numbers bespoke did it crunch the numbers and say that the numbers to watch are the financials as we continue trading. Diller has a history of taking the smaller startups and turning them into profitable businesses. Turningow tuning his attention to vimeo. What is the game plan . Is a subscription based company, and right now they really turned their focus to this committee as they separated match. Com into their own group. You have subscribers that come in, they can upload their videos, they can pay for more storage. This is a business that dollar lerreally putting dil is really putting pressure on. The danger is that a people decide that the service is not worth a four, the reviewing subscribers pay 199 per year. If they think they can with their it is offer free on another service like youtube, they may not indeed to pay continue to pay. Youre low end, you have youtube cat videos and skateboarding videos, video that likes wearing of the big hollywood shows glad the big entertainment committees are putting out their videos there companies are putting out their videos there. And then video is to share the kids laying in the yard playing in the yard. Hefty0 is a pretty subscription fee, why is it so popular . You sought with expedia, you sought with ticket monster am a position for a spinoff rate a search and applications business that is big grab bag, this of the internet agglomerate conglomerate. What does barry diller do then . Analysts andat the investors are considering as well. There are some smaller media companies, and then there are these Certain Applications businesses. Withr is also involved aereo. What does he do . He has the really hot dating hold ontoe decides to that match business, there are some interesting dating properties that go with match. Com. What is the significance there . Ceo has moved over to the new batch group, and your media business, youre dating, your surgeon application but are all now reporting directly to diller. Thank you. Really appreciate that look. Market makers from bloomberg headquarters in new york, this is market makers. We crunch the numbers in the sky top the list of the bestperforming hedge managers of 2013 and he is here to tell us how he did it and whats in store for this year. As of today, mortgage lenders must make sure you can afford your loan and be more transparent about what you are really paying for. Will it backfire and make it rd
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