We will hear parts of that interview. Jobs data in america. The most important economy in the world. Some would dispute that. No. Yes, it is. It is not really going to be the most important indicator. We have wondered whether the Winter Weather whether we eather it. To whether i how strong would have the economy been if it werent for the winter . Right now, wall street is leaning toward the strong side. 218,000 jobs. The people giving us therefore cast of come in Even Stronger than that. We are expecting unemployment to be down by a tick. We are expecting wages to be up. Hours worked, unchanged. We may see upside risk to the report. Earnings numbers were strong. What is the chance we might see some disappointments . Probably very small. There is always the chance. Statistically, it could be anywhere from 100,000 gained to 300,000 gained and it would fall within the statistical parameters. Odds are it will fall within the 200,000 range. This is the indicator everyone watches. Jobs are at the heart of the american economy. More people, more jobs, more spending. The markets will react. The bond market cares. Make the does not economy. The fed does not care about today. They are not going to raise rates until next year at some time. They will say, yes, this is nice. Still, we are all very interested. Thank you so much. Two years ago, Warren Buffett announced that the Berkshire Hathaway board has chosen had chosen his successor. Speculation was rampant. Who are the leading candidates that you have found . Who have you found to be possibly the sleeper candidate . Focused on the head of the Energy Business at Berkshire Hathaway. They own a bunch of utilities and pipelines. He was one of those executives who was seated away from the other managers at last years meeting. I used that as a jumping off point to explore his career and what that says more broadly about where berkshire is headed. How does he compare to the other leading candidates . That is an interesting question. There are things that recommend all of them. The things i find fascinating is that he has been there to help build up the Energy Business over the last 20 years. There really been building up the company through acquisitions, running them in a very efficient manner. It has been good for berkshire shareholders and for the folks who are served by the utilities. What i say in my piece is that those are some of the qualities that may be useful to berkshire going forward. Unlike 15 or 20 years ago, berkshire is much less dominated by the stockpicking of the ceo, Warren Buffett. It is a company that has evolved to having massive operating units, like the railroad, energy units, manufacturing companies. Ceoskill set for the next may need to be a little bit different than what Warren Buffett brought to the table. You and i were there the other week when we were talking with Warren Buffett. He answered questions about david winters, who was pounding on buffett to Say Something about cocacola. Do you think buffett has put the issue to rest . Do you expect more questions . Absolutely not. I would anticipate that will be the first question on saturday. It is clearly the hot button issue. There are a lot of folks who as a loned to buffett star or moral compass for how ceos and investors should behave. A lot of people in omaha think there are inconsistencies to what he said over the years and what happened. I would expect that he would try to address that very soon out of the gate. David winters is out again with another statement this morning, saying they want cocacola to change their equity plan. The other notable thing about the meeting is that buffett could not find a bear to sit on stage to ask them questions. Him questions. Has that been given any kind of chatter in omaha . I think it is more curiosity than anything. A lot of the people who show up at this meeting many of them are shareholders, they are part of the base, they really believe in berkshire and what it is doing. You can speak with some people and they would say, why would anyone put themselves up to that challenge . That is closeany to hitting 200,000. There was a lot going right at the current moment. I am not terribly surprised that they struggle to find someone to fill that seat. Thank you so much. I will see you there in omaha. Moving and shaking this hour, steve wynn. What people really want to know about is that run in he had with George Clooney last month. Wynns vegasn criticized wynn obama and the Affordable Care act with bulger language. Clooney responded in kind bulger language. Clooney rege. Vulgar language. Clooney responded in kind. In atists or actors live world of the run. They live in a relatively small world. The people around them are very solicitous and caring for them. Isy have a worldview that therefore, everything should be given to everybody because everything has been given to them. If you run a business, if you are responsible for a lot of people, you come to grips with the reality that you have to have discipline. You have to protect the enterprise in order to take care of the employees. Therefore, you cannot be wasteful, you cannot squander things, or you jeopardize other people. Running a business gives you a that is compassion defined in different terms than someone who just thinks of themselves as generous, who lives in that environment. That was a surely impassioned speech. Coming up, a favored mode of transportation for ceos. Flying high in the sky. A new documentary takes aim at americas sweet tooth. Sugar may become as socially unacceptable as smoking. We are 15 minutes away from getting the april jobs report. Stay in the loop. We are just getting started. Insideerday, i went pepsi co. And spoke exclusively to the chairman and ceo. I think in the last 67 years , with the internet pervading every country around the world and innovation flowing very freely, it is critically important to spend enough money to develop a different shade of products, different shade of platforms that can give you real increment talent he incrementality. Joining me now is the author of the new book hidden in plain sight. Eric, for pepsico specifically and cocacola, these are two Companies Facing maturing markets, they have gotten their hits, what happens to a company at that point . Companies realize the numbers very quickly. Especially in a declining market. I seek out different market opportunities. Successful in the snackfood business. Cocacola is very successful in the noncarbonated soft drink businesses. Theyre seeking new growth in adjacent categories. While they try to do that, what is the big danger that any of those ceos have to avoid . The biggest problem is that a Business Model or supply chain or a business practice that is applied to one particular category does not necessarily apply to another category. If you are in a carbonated soft drink business, it is a very mature business that exists for a long time. Is Business Structure wellestablished. If you go into the energy drink business, it is a very different game. There is red bull, monster energy, it is an emerging market and you serve an entirely different am a very dynamic, and volatile market. Im glad you mentioned the energy drink market. Both coke and pepsi missed this huge Beverage Market that grew up right under their noses. How did that happen . Did nobody at pepsico or cocacola say, wait a minute, this volume growth is pretty shockingly huge . Shouldnt we be in it . Absolutely. They go to the same trade shows. They see it before it the consumers see it. Generally, there was a lot of growth happening in other areas. Is question is, what actually growing into a trunk or a tree . There are lots of weeds. By the time they realize it is a trunk, it is too late. That is what it is. Alan mulally is stepping down early and saying that mark fields is going to be his successor. That was well broadcast before hand. What is mark fields have to make sure he does . Mark fields faces a lot of problems. , otherother ceos succession plans, mark fields faces a lot of problems. There are problems in china, to give one example. There are problems in europe, in terms of profitability. Mark fields is very immersed in operations profitable. There are United States problems for the company. Why do you say it is like tim cook succeeding tim jobs steve jobs . I know alan mulally i have encountered him a number of times. I find him to be very mercurial. Hes a strategist. He is very driven by execution. He knows how to get a strategy in place, a longterm strategy. He knows how to make the strategy executable. Much like steve jobs in this point of view. Mark fields has the job of tim cook to keep the train on the tracks . That is a good analogy. To put the train on the tracks, really know the business, and make sure the numbers come in and the supply chains work. Both of these functions are extremely important. , their yum brands biggest problem is china. How to grab the consumers trust. What does he need to do . Wellversed. I do not know them personally. They are wellversed in addressing the china problems. I think in the markets they are operating in right now, they have shown how to run the business, how to innovate, how to look at consumers, how to come up with new cook product concepts. Critical, as we heard from the ceo of pepsi earlier. Why do you think strategy is hidden in plain sight . Most Companies Look from the inside out. They see their experiences. Mark fields has 20 years at ford. He sees the world from the fort point of view. By looking from the inside out, you do not see the biggest opportunities in plain sight, right out there in the consumer market. There needs to be oftentimes a ceo that comes in and says, i have seen a different world, i see this company from an outside in perspective. From that, i have a new, fresh way of looking at innovation. Innovation from the inside is a matter of how the company approaches it. Fast enough. Cocacola, red bull. Thank you so much. Really appreciate it. Vivaldi. Er and ceo of the Inconvenient Truth about sugar is coming up. Calling it the tobacco of the 21st century. Is it really that bad for you . We will go behind the scenes on that story. We are less than 10 minutes away from the april jobs report. Our survey says the economy added 218,000 jobs. The jobless rate likely ticked down to 6. 6 . You are watching in the loop. Live on Bloomberg Television and streaming on your phone and Bloomberg Television. It is time for the big number. Days you haveny to live in boston to become a cop or a firefighter if a new law is passed. Down one to cut newcomers taking coveted city jobs. Massachusetts law rants residency preference to those who have lived in the state for at least one year. Locals are getting upset over dwindling number of police and firefighting jobs. Bloomberg television is on the markets. Olivia sterns is watching trading just ahead of the jobs report. Futures are a little bit higher right now. They are pretty much flat. Lets take a look at the s p. It has been bouncing in between higher and lower earlier on this morning. Themarket is anticipating big number. The headline number we are looking for is 218,000 added. We are expecting the jobless rate to take down to 6. 6 from 6. 7 . That will be the lowest rate since 2008. This is what is happening to the treasury market. Not a lot of action again head of the jobs report or read treasuries have been pretty rain bound this week. Whiteningit of against the twoyear notes. Do see thelly economy accelerating, that is going to dampen demand for longer dated maturities. We will be on the markets again in 30 and back in a few minutes with the jobs report. So much. You in washington, the president s review is out. The white house is proposing changes to companies and governments. Megan hughes joins us with details. What exactly is in this . This is a broad review of online data mining. It did surprise a lot of people in actually laying out six specific recommendations, policy changes to the president. I wanted to run through some of these. These could be big changes. Number one, advancing the Consumer Privacy bill of rights. Standards for how personal information is used. That is something that privacy advocates have been using pushing for. Passing a National Data breach legislation. It will provide a single standard around the country. That is something that target has back. Also, extending Privacy Protection to nonus citizens. Recognizing that that is a group that also gets tracked online. Making sure the Data Collected in schools is used for educational purposes. Being useddata not inappropriately. Developing better Technical Expertise within the government. Who they are hiring, specifically to look at discriminatory impact of big data. And then changing the law to align the protection of online digital content, email, with the physical world, like how we treat regular mail. That is something that has been floating around on the hill for quite some time. This review was released by white house counselor john podesta. Along with Penny Pritzker and gene sperling. Some big headlines out of this. One of the big headline, the potential for big data to enable discrimination. Areas like housing, employment, credit, and the consumer marketplace. Some big headlines out of this. Privacyare the private experts saying about this . You think they would be gung ho. There was a lot in there for them. There is some criticism that there is no timeline here. How does this happen . How does this cross the congressional finish line . Three of those six recommendation would require congressional approval. Figure so much. Here is a look at our top headlines. Pfizer is increasing its bid for astrazeneca to 106 billion. Astrazeneca probably rejected that offer. They say it substantially undervalues the company again. The deal would create the Worlds Largest pharmaceutical company. Earnings rose. Generic drugs and acquisitions helped it whether the winter storms. Weather the winter storms. Spacex successfully test fired its reusable rocket for the second time this week. We are watching its progress now. That april jobs report is due momentarily. We have team coverage. Alan krueger. Michael mckee. Olivia sterns. Bloomberg chief washington correspondent, peter cook. The Unemployment Rate drops to 6. 3 . The lowest since september of 2008. There is noise attached to that unemployment number. 288,000 jobs added. Add another 36,000 jobs. Average. Month unemployment, 6. 3 . 0. 4 . That is the best number we have seen since september 2008. The Participation Rate dropping to 62. 8 . The civilian labor force dropping by more than 800,000. This was due mainly to fewer people entering the labor force, rather than people exiting. There will be lots to chew on within the unemployment number. Who was hiring . Professional and Business Services up 75,000. We had temp jobs up 24,000. Retail up 35,000. Leisure and hospitality up 28,000. Health care up 19,000 in the month of april. Average hourly earnings, no change month over month. The yearoveryear changes up 1. 9 . Here is thatne this is a number that janet yellen and a lot of people at the fed have been waiting for. Is it good enough to get them to change their outlook on Interest Rates . That is one of the questions. The bottomf people, line comes down and comes down substantially. Back to you. There is no wage growth. That has got to be troubling for the labor market. That is the one thing i picked out immediately that is a little bit of a concern. That is offset by the fact that more people will have jobs and paychecks. The people who already were employed are not seeing wages yet. It will not create a lot of enthusiasm or ability to go out and spend more. Other than the fact that we have more people who or able to do so. A little bit of an offset. This is a really good report. Statistical noise and the Unemployment Rate among but you have to like what you see. That might mean what the markets are reacting positively, but not as significantly as you might expect from a report like this. Right. Markets seem to like what they see, futures all spiked immediately higher on the reports. The s p has a sharp upward move on the back of the jobs report. 288,000, a big surprise. To jobless rate falling to 6. 3 . Reaction was in the treasury market. Treasuries selling off. A pretty sharp move. Now trading just below 2. 7 . That is a very strong Market Reaction. Not as strong as we might expect. Up seven basis points. It looks pretty good. Lets show you what is happening to the currencies. The dollar is a little bit weaker against the euro, stronger against the yen. Clearly, investors seem to like what they see. Are you surprised . I am surprised. Whatever you see the Unemployment Rate drop by 0. 4 in a month and job growth over 250,000, those are surprisingly positive numbers. Of course, we have to dissect what Labor Force Participation fell. Entrants fell new more than expected. I would like to look more closely at whether employed workers were leaving the labor force, in particular longterm unemployed workers. Right. I know that you believe that the longterm unemployed are having a much more difficult time than some would say with finding work. That is right. Have 35 of the unemployed been out of work for over six months. This suggests that the labor markets are continuing to improve. I suspect we will see wage growth. Numbers arethese stronger than one would expect. I have more on the longterm unemployed picture. There is improvement on that as well. Biggest onemonth drop we have seen since october 2011. Longterm unemployed stands at 3. 5 million that is the lowest number since march of 2009. That particular sector, which janet yellen has highlighted, especially, improvement highlighted. That might mean that the fed moves quicker on raising Interest Rates . The fed will stay where it is. One month does not make a trend. We talked about that earlier in the hour. They are locked into the tapering trend at this point. There was no point in getting out of it quicker, given how much little they have left to do. They wanted to wait until a while after the jobs report to start raising Interest Rates because they want to find out whether or not this is sustainable. That is not just the jobs report, but the gdp numbers have to continue to come in strong. We will have a couple of quarters before they would start to think about that. Two quick points that are also good news. I look at health care hiring. Health care hiring is not out of line with what it has been. Maybe that did not add as many jobs as we would have liked. But local government did hire an additional 12,00013 thousand people, depending on the category. It is something we have not seen in a very long time. A beginning of a more healthy turnaround for the economy. What do you make of that . The industries that have expanded, construction, it all looks like the economy is strengthening. Longtermn unemployment is potentially positive. If it fell because the longterm unemployed found jobs. If it fell because they lost the labor force left the labor force, that is something that still needs to be addressed. Futures are coming down now. It is quite interesting. We saw all the benchmark indicators up by 0. 3 . There are now only up by 0. 1 . If i had to come up with a reason, i would go back to what mike mckee was saying. We heard a similar thing from pimco. Wage data might be the fulcrum on which markets job this judge this job report. The wage number combines the two factors that the fed is looking at, its dual mandate of inflation and unemployment. That is exactly right. N, why are we not seeing that wage pressure . They are running ahead of inflation. We have a lot of slack in the economy. That is keeping dollar pressure on prices and wage growth. More and more of that slack is going back to work. That should put up or pressure on put pressure on wages. We are seeing an increase in real wages in the last year. I was just going to add to n was saying. It is interesting to see the bond Market Reaction on the shorter and. You will not have inflation pressure. Perhaps they are overreacting a little bit here. Peter, what about what you believe . How are the republicans going to react . To Something Like this does this make it harder for them to criticize the white house . Some veryquires careful language writing in the statements that come from republicans. You cannot be critical of a number as big as 288,000. You have to be careful about how you attempt to criticize or explain such a big drop in the Unemployment Rate. This is good news for the white house, good news for democrats running in the Midterm Election year. There is still a lot of questions about the u. S. Economy in a lot of pain out there. Whether we see this kind of improvement, whether this is soon enough, beginning fast enough ahead of the Midterm Elections to actually make a difference at the polls. That is a lot of question marks for the people at the polls. Going to get more complicated. But it is not going to change the outlook. Arguably, it might even heard it. That was not going to go anywhere in the Midterm Election year. Democrats knew that already. They knew this was a good political move for them. It is something they believe in strongly. It helps them at the polls in november as well. Dont you think it will be harder to argue for a minimum wage hike . I dont think so. Adding art says we are lot of jobs. But wages are not growing fast enough. I think that will help make the case that the economy is Strong Enough to see an increase in the minimum wage. The assumption is that wages will follow. That remains to be seen. We have seen a big dead virgins and productivity growth divergence in productivity growth and wage growth. I have a question. They are still trying to extend emergency Unemployment Benefits. If you take benefits away from people, it forces them to go out and find jobs and so we shouldnt do that . We have to look more deeply into this report. It is not clear whether longterm unemployment fell because longterm unemployed left the labor force after benefits expired or whether they found employment at a higher rate. What we have been seeing over the last few months is a continuing rise in labor force for the longterm unemployed. It is not clear to me how this report should affect, whether the house should follow the senate in extending benefits. My own view is that the longterm unemployed have been struggling, the economy is still far below potential. The cause of the consumption affect. Thank you so much for joining us. Also, to our entire team. Reporting linkedin better than estimated earnings. We will have a look at how they make their money on the job seekers we just talked about. Stay in the loop. We just got the april jobs report. Much better than expected. 288,000 jobs created. We have not hit that level in quite some time. The jobless rate falling to 6. 3 . The market concerned. No growth. Staying on jobs, linkedin is in the business of employment. Moneyes the company make off of its matchmaking . A different kind of matchmaking. We took a look at linkedins strategy. Work . Does linkedin Quarterly Earnings topped 473 million, up from 25 million five years ago. A third of its members are here in the u. S. It makes money in three different ways. One, jobseekers upgrading to premium subscriptions. Unlike other social my works, people pay for special access. Subscribers can drop up to 25 a month. 20 50 per month. Advantages may help candidates stand out. Two, Companies Selling to other companies and to users. D sales brought in 326 million last year, accounting for more than a fifth of the companys revenue. Accessrecruiters buying to members data and paying for their firms to get noticed. They pay thousands of dollars per month to have access to the databases. Through linkedin, Top Companies can access potentially suitable candidates who may not even be looking for new job. This business area, known as talent solutions, is the golden goose. It brings in more than half the revenue. William joins us for more on linkedin. It seems like all of us are on linkedin these days. How many people are actually paying to be on linkedin . Good question. There are 300 million official users. Analysts think there are about 200 million actually using it. Analysts think there are less than 1 paying. To 2 , that from 1 is a jump from 80 million to 160 million. Are they going to continue with the threepronged strategy . Or will they mix it up . Revenues have grown, but they are still losing money. Obviously, they need to mix things up. Some people are saying they need to become a company that focuses more. It is great having people come to your site when theyre looking for jobs. You want them to be there regularly. They have been hiring people like Richard Branson to write blogs on their site and encourage people to come on regularly. It is certainly active now when you see the original content they are generating. Thank you so much. Coming up, we will get the white houses reaction from the sairman of the President Council of economic advisers. That is coming up. Is sugar the tobacco of the 21stcentury . They are looking to spark a movement away from sugar. Julie hyman has the details. The filmmakers are trying to spark a movement. They are. Y want people to start stop eating processed foods or cut sugar out. They want to change the way people read labels on food. One of the things the movie points out is that if you look at a nutritional label, they tell you the recommended daily allotment percentage protein, fat it does not for sugar. Check it out the next time you look at the label. I will. This is really what they are pushing for. Said that the Food Industry is responsible for tricking people into think that they cannot cook real food at home. Here is what he says. Doit is too expensive, difficult, inconvenient, people do not have the capacity to do this. That is the messaging that the Food Industry wants us to believe. It is not true. Speaking about Companies Making you believe that, i was at pepsico yesterday. I was talking to their chief scientist. Theaid, look, we are in search for the perfect substitute for sugar. Here is what he said. We know that Consumers Want great tasting products and convenient forms they can afford. From an Innovation Point of view, we want to hit all three of those, depending on the type of product that the consumer wants. Is a finding that sweetener . That one . It is never one magic bullet. Aerything we consume is complex mixture of texture, aroma, taste, physical form, what we see. Can consumers and companies coexist . Not according to the filmmakers. They say you have to cook real food at home. Evenilm contends that artificial sweeteners cause the same effect in your body because your brain is tricked into thinking it is consuming sugar and gains weight and you want to eat more. Thank you so much. We will be back in two minutes on in the loop. Equity futures are mixed after that stellar jobs report. Much better than expected. Investors are focusing on no wage growth. We will be back. We are about 30 minutes away from the opening bell. You are in the loop. I am betty liu. Surprising jobs report. It did not have as much of an impact on equity futures. 280 8000 jobs, the most in more than two years. The jobs rated a 5. 5 your low, the unemployment low,fell to a 5. 5 year falling to 6. 3 . There looking at all of data behind the headline number. It was surprising that there was a spike ended immediately came down . It is another sign that people are not taking the headline number for what it is. Medianell above our survey. Good news at first. We saw a cody futures spike higher. Immediately, investors started to read between the lines and see the details and there were troubling signs. The Household Survey disappointed. Labor force Participation Rate continues to come down. Wage rate disappointed. This could be the fulcrum that move the markets. Whatoks like that is happened. Wage growth did not grow in line with what we expected. Economists want to see it, more because that is see itt is the more because this market. This was priced into the market. The data have all pointed us in this direction. The fact that somebody people out of thedropped labor force is a surprise. The Unemployment Rate has not been a particularly important indicator for the markets recently, anyway. The earnings aspect has become more so. I was just talking with bill gross. He said that the fed is not going to change with they are doing. Unemployment was their marker. They have switched back to inflation. Until the inflation rate starts to rise, there will not be any change or any talk of change. How is this playing in washington, peter . From are seeing statements a lot of democrats out there, hailing this number, and saying it still makes the case for a rise in the minimum wage. That is something they have been fighting for. There was a vote that went down in the senate flames in the senate. It is good news for the president who has seen his popularity numbers sagged in the last couple of weeks. This is a good report for the white house. At one month does not make full trend here. That is something we have been warned about over at the federal reserve. The one thing that stands out to me is that this number matches what we have been hearing from janet yellen. This bolsters her outlook and bolsters her credibility, as she has to make very tough decisions over the months ahead. If it continues, it may be good news for the democrats. Theresearch we did before 2012 elections show that americans react most to a drop in the Unemployment Rate or a change in the and employment rate, rather than the number of jobs. People are going to see that headline, they are going to say that is good news. They are not going to look at the details underneath. No. But maybe this shows that policymakers, whether you are the fed or the congress of the white house, you should leave the economy alone. It will repair itself. Right . Forhere is an argument that. At what point do you leave the economy alone and at what point do you step in and help people out and need help . It does raise the debate we were talking about with alan krueger as to whether you extend Unemployment Benefits because the longterm unemployed are beginning to find jobs again. How would that play in washington, peter . I agree that that will be fuel for that debate. That issue was not going anywhere, just like the minimum wage. The entire picture, in terms of the Midterm Election year, the economy is going to play a big role. The healthcare debate is going to be part of it as well. If there is a real upturn from here to november, that is good news for democrats, who are worried about you losing the u. S. Senate and not feeling optimistic about taking back the house. If there is hardly any reaction to the jobs report, what does that tell us . The dow hit a new record high on wednesday. The equity markets look strong. We know that janet yellen dropped the Unemployment Rate as a key threshold by which the fed will gauge whether or not when they will gauge raise rates. The details are important. Inflation seems to be a focus. Another number is the dollar euro rate. That will be important. If the euro comes down, then that means that the ecb does not have as much of a case to move next week. This does play into what happens around the world. The euro is a little weaker. Much. Ckee, thanks so olivia sterns, our markets reporter. Peter cook, our chief washington correspondent. Thank you guys. Moving and shaking this hour, a name that you are familiar with, Warren Buffett jimmy buffett, not war in warren. It will cost you to waste away more in margaritaville next week. The price is more than truffled tripled for limes. A crop disease has ravaged lime trees in mexico, forcing up prices. Getsrgaritaville expensive, you might have to settle for a cheeseburger in skipise paradise and the guacamole as well. I will be in las vegas to talk with sheldon adelson, the wealthiest man in the gambling industry, in an exclusive interview. Be sure to stay tuned for that. There was another casino mogul in the news today. Billionaire steve wynn. Firstquarterat profits. Stephanie ruhle joins us after her exclusive interview with wynn. Are the profitos drivers. 73 of his revenue is coming from macau. He is building a huge property in boston, working on it. He is spending a few billion dollars. He has 3. 5 billion going into a new property in asia. That is where all the dough was coming from. Yes, it is true that we are primarily a chinese company. That is probably going to look even more so as our third hotel is being completed in the next 18 months. There will come a point where the ratio of domestic to chinese earnings is even greater than it is now. We were in macau about a month ago and we met with one of his rivals. ,hen we were Walking Around just directly across from the city of dreams is the venetian. It is a giant structure. These guys are building these monsters. Not regulars coming once a quarter, twice a year. They are coming once or twice a week. That is much higher volume than you see in vegas or atlantic city. How about you . Do you ever hit the tables . Go to the casino floor . He does. I like to shoot craps. I have not done it recently. About once or twice a year, i throw caution to the wind and i decide im going to win all the money at the casino. [laughter] i shoot craps. Of course, i am a real big success. [laughter] he knows better. The house always wins. He is the house and he doesnt win, most of the time. I do so much, stephanie. Wynn just ahead. Tell you exactly what we mean by their philosophy about paying for perks. We will get the white house on the better than estimated jobs report. Time for this versus that. Ceos are ramping up the use of corporate jets for personal t rips. This is steve wynn. He had one of the biggest bills for corporate trips in 2013. 928,000. Boards defend this sort of thing because it is for security and eases wear and tear on executives, who practically live on airplanes. That is Warren Buffett. He tends to look at this mess expenses differently. Business expenses differently. He uses the Company Aircraft only for business trips. He is charged standard rates to fly in a net jet plane, of which he owns part. Part of itsring cash hoard back to the u. S. Hitay take a 3 billion tax to return 9 billion in profit back to the u. S. Ebay want to do this on so Many Companies have said, lower your tax rates before i bring the money back . It is a good question. Ebayis interesting about is that a number of companies do bring the cash back home, but they do not generally advertise that the way ebay did. Pfizer has been gradually taking tax reserves for cash rather quietly. Ebay explicitly said we are taking this big charge to bring all of this cash back home. It is probably more likely that it is for a share buyback. It is a great point. Why would they advertise this . Possibility is maybe to smooth over disappointing earnings. Otherwise, it is very page will your. Peculiar. If theyre doing and i position, you would think they would wait , you wouldisition think that they would wait until they have an acquisition lined up. If it were for an acquisition, who do you think it would be . Would like tonk i speculate. One thing that is interesting about ebay is that they are is thethe amount takingof taxes they are they paid virtually no income taxes on this stuff overseas. Profitsallocating most by paying no income tax at all. There is a tax element to pfizer making a bid for astrazeneca, the u. K. Drug company. It may help them lower their tax rate . Yes. If that deal with pfizer goes through, it will almost definitely significantly lower its tax rate. What pfizer is doing is theyre going to structure the acquisition where there will be a new u. K. Holding company at the top. Although pfizers employees and executives can be in new york, they can take the benefits of their he is tax incentives the u. K. Has established in the last couple of years. Really as a result of shuttling paper through this acquisition. Thank you so much. Time ralphry nader will be joining us with his take on jobs and the economy. Spiderman to the rescue. How the biggest production could mean big box for sony. Stay in the loop as we head toward the open. Here is a look at the top tech stories. Linkedin Sales Forecast missed estimates. Seen six straight quarters of slowing growth. Revenue will be 500 million short of wall street estimates. Google busses ought to be outlawed according to a Community Group in san francisco. There was a lawsuit against the city. Many executives use the buses and the city collects only one dollar from the buses for each public bus stop that it uses. Spending 150 Million Dollars on the biggest Film Production new york has , sony could be eligible for 45 million. A 30 rebate. The new spiderman opens in theaters this weekend. Check on the latest in tech and media on bloomberg west. Coming up, former pimco ceo Mohamed Elerian will be giving his take on the jobs report. Why america has to confront its economics. We are a few minutes away from the opening bell. Keep it here, in the loop. Welcome back. You are in the loop. I am betty liu. It is 26 minutes past the hour. We are on the markets. Olivia sterns joins me. To give us the take. Atthe jobs number coming in 288,000, the biggest monthly gain since 2012, well ahead of our survey for 218,000. The headline unemployment numbers dropping to six. 3 . Despite all that, futures are basically exactly where they were right before the jobs report came out. Initially, the s p futures bike tire, all of the futures spiked higher, because it looked like investors were happy to see big headline numbers. If you look through the details, there were a few signs of weakness. The household report disappointed. Labor Participation Rate is at its lowest rate since 1978. The biggest reason of all, the wage rate growth disappointed, coming in at an annualized rate of 1. 9 below expectations. Investorsps is what are focused on. Futures are exactly where they were basically. Slightly higher heading into the open. We will be on the markets again in 30 minutes. Thank you. For a more indepth look at the jobs report, i want to bring in a friend of our program, the former ceo of pimco, Mohamed Elerian. Mohammed, are you surprised by how strong this report was . Pleasantlym surprised. It is nice to be with you on a day when you get a strong report. Ritually across the board. The us is good news for the u. S. Economy. Virtually across the board. This is good news for the u. S. Economy. Is the lack of wage growth a big concern for you . There are two elements that were not good. Two is ages and decline in the Participation Rate that we have not seen since 1978. Apart from that, not only the headline numbers, how many jobs were created and the Unemployment Rate, but the elements that speak to the most vulnerable segments of the population if you look at longterm unemployment, that came down to under 3. 5 million. We have not seen that level for a while. If you look at teenage unemployment, that came down to under 20 . We have not seen that level for a while. It is good to see the strong numbers. It is good to see the Unemployment Rate come down. It is even better to see the most vulnerable populations of the segments better. Would need to do earnings and that is the next step in the progression. We need to do earnings and that is the next step in the progression. Arent these major exceptions . Those are two pretty big exceptions. They are. They are big exceptions. The good news is that the increase in jobs, if you add also the revisions, was also really solid. It is good news. In fact, why isnt the market reacting more . Because it realizes that this has an impact, may have an impact on the fed. I do not think it will. That is what the market is worried about. It is such a strong report that the market is worried that the fed support may not be there. You say that you do not think it will. But where is there any credibility that this could affect Monetary Policy . If you thought the fed was pursuing one objective of the mandate, which is unemployment, you would get worried they would start tightening. However, the fed is pursuing two objectives. The other is an inflation rate of 2 . We are nowhere near that. It is important for the market to take account of the unemployment picture and inflation picture. Hang on for one moment. I want to staleness jobs conversation. I want to stay on this jobs conversation. Ralph nader joins us. He is a longtime advocate of consumer safety and has written a book called unstoppable. It just came out this week. Thank you for joining us. You say we need to bridge this partisan divide and come together to create policies beneficial to americans across the board. Build toge can we create job policies . It has already happened in the past. When we have gotten things done in this country, it is often leftright alliance. We see it in the state legislatures. We are seeing it for the minimum wage to restore it to the level of 1968, inflationadjusted. That would raise wages for 30 Million People and put billions into the consumer demand framework as a stimulus to the economy. A second area that has not gone operational yet has huge support is the leftright alliance for major works, communitybased public works to repair our country, public transit, sewage, water systems. All of which create the jobs that cannot be exported. There are many other areas in my book. They are current news areas. The opposition to corporate welfare, the crackdown on corporate crime. Leftright no coalition yet on raising the minimum wage. Amed, in the past you have supported raising the minimum wage . I still do. If you look at the studies, it is hard to claim it will lower employment. It will help on the consumption side because that segment of the population has the highest propensity to consume. It will also help on the inequality side. I think it would be a winwin for the vulnerable population and economy as a whole. Likeen you see a report today that shows people are finding more jobs, that makes it more difficult for congress to come together and say we need to pass a wage hike. It is happening in city after city. They are passing them. San jose past it, seattle is on the way. Depends on the Political Party the mayors are in. 80 support a higher minimum wage. We are seeing it in state legislatures. 20 states have a higher minimum wage than the federal. It is beginning to hit capitol hill. It is only the top leadership of the Republican Party pressing down on the rankandfile. They will pay a price in 2014 if they oppose 30 million workers getting a minimum wage equal to 1968, adjusted for inflation. It is a winning issue. Do you believe raising the minimum wage will cause a loss in jobs . If you look at the studies on, it is krueger was hard to argue convincingly you will lose jobs. At a time to argue when we do not have enough aggregate demand and Companies Need encouragement to invest that increasing consumption would be a good thing. Theou look at the studies, benefits exceed the costs. I would add another thing, which is the inequality issue. There are a number of elements. It is also privatepublic. Infrastructure, immigration reform. There is a set of issues that if you could cross left and right, you could also get publicprivate art bishops partnerships. Why are companies not raising the minimum wage even more . Because they are looking at what others are doing. They are waiting. Some are. Some of the enlightened ones are. They depend on a labor force that is relatively stable. Some have already. Others are waiting. It may be in your interest or mine, but we need to move together to do it. Otherwise, to demand i create may go to you the demand i create may go to you. In a conversation with the c. E. O. Of cosco last year i asked him why he raised it, he said you have less turnover and more productivity and it is the right thing to do. That is the message we will get to walmart who is now deliberating the issue. Convincing is just private players to raise their own wages. Yeah. Theres nothing like Public Opinion for the politicians and c. E. O. s to know it is written on the wall. We learned this from henry ford 100 years ago. Doubled up the autoworkers wages. He was asked why and he said because i want workers to be able to afford to buy our cars. That is the trajectory of american history, not going backward with a low wage economy. They certainly deserve it. Ralph nader and Mohamed Elerian, stay with me. The chairman of the president s council of economic advisers joins me to go through the jobs numbers. Angela merkel and president obama looking like asked friends these days. How they will seek to present a united front against Vladimir Putin as merkel visits the white house. Stay in the loop. Our top turn back to story, the april jobs report coming in strong. The chairman of the u. S. Council of economic advisers is joining us to share the Obamas Administration response to those numbers. Mohamed elerian also staying with me. Jason, how much of this bounce in april is a bounce back from the Winter Weather in the First Quarter . We did see strong months in february and march in the jobs report as well. It bounces around a bit from monthtomonth. I think it is the trend over the long term i focus on. Athave been adding jobs about 200,000 private sector jobs per month the last year. That is a strong and steady pace of growth. We would like to see that continuing. Doesnt make it harder for the democrats to push for a minimum wage hike and to reinstate Employment Benefits . I dont think it makes it harder. By our estimates, we have encouraged 80,000 jobs lost because of the purchasing power associated with Unemployment Insurance. Those people not getting benefits and not spending money. We would have had Even Stronger jobs number if we extended it. The Senate Passed it. We would love to see the house pass it. We have seen wages grow over the last 12 months, but not as much as we would like. Raising the minimum wage would help that wage growth, which is one of the things the economy needs right now. I want to bring in mohamed. He has a question for you. You mentioned the minimum wage and wage growth. That is a little disappointing. Is that something that can be done to encourage jobs growth but also wage growth . As you know, wage growth follows jobs growth. As the Unemployment Rate comes down, you have more tightness in labor markets that drive wages up. We have seen wages rising the last year or two. We had seen eight straight months of nominal wage growth prior to april. April you have consolidated the gains. You did not add to them. We like to see a tater tighter later market tighter labor market with more people getting jobs and an increase in the minimum wage. What about putting together policies for the longterm unemployed . One of the encouraging things is the longterm Unemployment Rate came down. It is the number one cyclical economic challenge we face. Is twice as high as before recession. It is not an unsolvable problem. It does keep coming down. Extending Unemployment Insurance for those people would help, working with employers to have best practices for dealing with longterm unemployed, something the president did with ceos at the white house a couple of months ago. That is another good step. The stronger economy will continue to help bring longterm unemployment down. Differs wither janet yellen in terms of how to look at the longterm unemployed. Her focusen believes is more on the longterm and how they are finding jobs as an indicator of whether inflation will pick up. Where do you stand . I think there is a cyclical and structural and sectoral component. 3. 4 5 million, unemployment is still too high. At the cyclical component because that is what she can impact with her instruments. She cannot get to the secular and structural components because that requires tools she does not have. That speaks to what congress can publicprivate partnerships can do. Some have criticized the reason why we focus so much on the fed and janet yellen is because there is no help coming from washington on the jobs or economic fronts. That is why there is almost a distorted reality where the fed is the only name in the game when it comes to repairing jobs. Part of why i think we will is we haven 2014 made progress on the fiscal side. We will have less fiscal drag this year. We had a budget agreement in december. Congress extended the debt limit without drama earlier this year. Isnt that all low hanging fruit . Absolutely. Theres more we would love to do with infrastructure, education, extending Unemployment Insurance. There are a lot of things,s could do to help the economy. It is important in that we are in a better position because of the bipartisan progress. Ralph nader just pointed to one issue. You just mentioned it. I dont understand why both sides cant come together on putting more money in infrastructure. That is something president is strongly supporting. Hes pushing a plan that would expand investment in infrastructure. Most immediate business is the Highway Trust Fund that will run out of money this summer. Highway construction would grind to a halt. That is something we dont want to see. We are working with commerce to avert it. It is something they need to figure out how to deal with. Thank you, the chairman of the council of economic advisers. Mohamed elerian, stay with me. There is nothing like a common enemy to bring people together. How the threat in ukraine has made best friends of president obama and Angela Merkel. We will be back. In time for the global outlook. We will hear from the president and german chancellor in a joint News Conference from the rose gordon rose garden. You can watch that at bloomberg. Com. Russia will dominate their discussion. For more on that, we are back with Mohamed Elerian and phil mattingly. Has the crisis in ukraine helped heal a rift between the president and Angela Merkel . I think it has. Administration officials feel repair thelped initial committee cases between the officials. Since the ukraine crisis started in late february, the president Angela Merkel have spoken eight times by phone. They been closely aligned with every move on the sanctions side. G issue remains important to the germans. It will come up again. On ukraine, communications are on a good level. Both recognize they cannot move forward on ukraine without the other. Mohamed, you questioned recently where is the rule of law global politics. For good news is ukraine is bringing the west closer together. The bad news is it is a major test for the rule of law. Days, the geneva agreements are dead. Mr. Putin continues to make requests on ukraine that are unrealistic. Conditions on the ground in Eastern Ukraine are getting worse with the loss of central authority. This meeting between president obama and chancellor merkel is key. Question will be simple. Can they agree on sector sanctions that will get the attention of russia . That is a fundamental issue. Is germany willing to sacrifice shortterm Economic Growth to put pressure on president putin . That is a fundamental question that needs to be answered. Do you think they will be able to come up with an answer . Mohamed nailed the biggest question about the meeting today. When it comes to the next round of sanctions, the big hammer the west has had hanging over fiber over Vladimir Putin has been the sectoral sanctions. 50 will take a major hit, billion of imports. Angela merkel is hearing from their business interests. They dont want anything to do with the sectoral sanctions. Her ability to stay aligned with the president is crucial for sectoral sanctions to work and not be implemented in patchwork fashion. Mohamed, you mentioned because the economy is getting tighter that the cost of protectionism is rising as well. It is interesting we have not seen protectionism happen like you would have expected when we went into a Major Economic slowdown. The key issue now is stepbystep this diplomacy normally would favor you step onvor, does this step which seems appealing to politicians, are you losing control of the situation on the ground . There is reason to believe that is happening. It means it will be harder to solve in a few weeks. Mohamed, thank you for joining us. Mohamed elerian. You can read all of his bloomberg columns on bloomberg. Com view. And of course, to phil mattingly. Next week, the outspoken casino magnate will join me for an exclusive interview. That is next week at 8 00. It is 56 past the hour. I am olivia sterns. Lets get you caught up on where stocks are trading. Equities are mixed. The jobs report showed payroll jumped by the most since 2012. The headline Unemployment Rate fell to 6. 3 . Equity markets little changed. We are seeing more action on the treasury market. Treasuries are following, perhaps on the theory investors are thinking of the jobs number, boasted the economic outlook. We are seeing yields come up on both yields. Both in tandem. Overall, stocks are still trading near record highs. Is this the year two ignore the old adage of sell in may and go away . My next guest thinks so. To buy in may. What are your big takeaways . Is whateal question happened with wage inflation. This has been a huge thing for years on the lack of acceleration in metrics. That is where the fed story is going to go. The equitys response is muted. The twoyear sold off but the tenure sold off the same amount. That means the yield curve is not changing. The yield curve has been declining and almost taking out the october lows. I believe it is near a sixyear low. That is one of the headwinds i think investors have to be confident of cognizant of. We want to see the 10year selling off more than the twoyear. That is tricky given the fed has shifted to guidance over the longerterm. The wage rate growth came in at 1. 9 . Oft was short of forecasts 2 overall. In terms of your other big takeaways from the jobs report, were you surprised by the Market Reaction . You would have expected a slightly better takeaway from equities. We look at the broader tape, have been in a sideways consolidation for several weeks. I think a lot of people have reservations about committing to a rich market. The price earnings multiple for the amount of growth out of earnings is high right now. I still think you dont want to be too bearish. There are a lot of indicators away from jobs that will start coming to fruition in the next few months. What are those strong indicators . On wednesday, the dow hit a new record high on the back of the fed meeting and also on a day when gdp came in at. 1 . Was encapsulating a lot of news the markets already knew. There are a couple of interesting things looking forward. One thing that strikes me is the loan growth in the commercial sector has been robust. Capxcan be an indication is starting to accelerate. Youre seeing m a volumes up 70 year over year. I think there is a shift in the where ceos and the boardroom are committing to the economy finally. There is support for the equities markets as well. Thank you. We are going to be on the markets again in 30 minutes. Market makers is next. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. Recovery summer. April saw more jobs added than any month in two years. The report has important warning signs. Steve wynn speaks. We will bring you my exclusive interview with the billionaire casino mogul. Find out why he likes doing business in china more than the u. S. And what really happened with George Clooney