Top executives as part of the sanction violations. Economists forecast another month of solid gains for payroll. What will the jobs report really tell us. Mike mckee is with us. What are we looking for . What we want to see is some confirmation that the american expansion is gaining momentum. It doesnt necessarily mean that we need a strong headline jobs numbers. We will be happy if we reach a consensus. If we get there, it is the fourth consecutive month over 200,000. We have not had that since 1999. Jobs being that more available will attract more people into the labor force. That is going to happen. The reason unemployment plunged was one Million People left the labor force. Nobody thinks that is what is really happening. If that reverses, we will see unemployment rise. What will affect Interest Rates and the Federal Reserve is Janet Yellens dashboard. We want to look beyond these numbers. We went to see an increase in hours worked. More of the longterm unemployed and wage gains. Those are particularly important. Be what theywould are looking for. We are starting to see some of the labor market the cup. Come up. We look at the revisions. Revision is 36,000. We get over 300,000. We dont need a blowout headline number. We only need 114,000 new jobs created. We will have suppressed the previous record. We hope gotten back all the jobs we lost during the recession. Four and a half years after we bottomed out. Thank you so much. Largest private employer in this country is walmart. They just darted their Shareholders Meeting in arkansas. It is been struggling with sales and a tarnished reputation after a bribery probe in mexico. Julie hyman has much more. How is looking so far . Rush of employees and shareholders to enter the walton arena has subsided. They are getting underway right now. It is called the but walton arena does speak to something. That is the pervasiveness of the walton name and the family here in northwest arkansas. Not just the family, but the area as a whole. We talk about the family, this is a family company. They control 51 of the company. There are many others in the family who serve as executives or on the board or another positions. One of the votes will be on having an independent chairman. It will be interesting to see how many votes it gets. You mentioned the scandal in mexico, the New York Times mentioned that some have departed as result of that. They have not confirmed that yet. That may be something that does come up today. Walmart is struggling. The stock has been lagging. The sales a been lagging. It is trying to regain its footing here in the United States. That sometioned executives had departed in the wake of the bribery scandal in mexico. What also they doing . In terms of what it is doing to try to turn sales around, it is focusing on smaller is better. They are opening up more of the neighborhood markets. That is something they are focusing on. They are starting to lose market share. They are focusing on ecommerce. I spoke with the ceo of the ecommerce business about how that fits into the overall strategy. This is what he said. A lot of sales from this technology is through commerce. I dont see us licensing this technology to other people. I do see us providing a competitive advantage to our entire company. Sales shouldmmerce reach 13 billion by the end of this year. That sounds like a big number. Walmart is a giant in retail. Thank you so much. Julie hyman is a senior markets correspondent. In normandyama is on the 70th anniversary of the dday invasion. It is in remembrance of the historic they were allied forces stormed the beaches at normandy into not ci guide france. This was caught on 16 millimeter color film by an unlikely soldier. Hollywood director george stevens. We wanted to share this footage with you. It is incredible. President obama spoke at a cemetery. We were in normandy with the president. Right now he is having lunch with other heads of state. That is right. There are 17 in all. British prime minister, the german chancellor, the ukrainian president and the russian president. The president of france is , but also use this as an opportunity to try to forge some kind of peace in ukraine. Withd some ceremonies president obama at the First American cemetery that was established on european soil during world war ii. The russian hosted president for a private dinner at his palace. He greeted him this morning at the state lunch. Both he and president obama have been working behind the scenes to get the russian resident to sit down directly with this new ukrainian president elect, he will be inaugurated tomorrow. It was not the french president but the german chancellor who succeeded in doing that. All chattingthem for a short while. It is hard not to see that as an achievement. That was one of the biggest goals of the head of state to get Vladimir Putin to sit down with the new ukrainian president elect. These two men have never actually met facetoface. What we have in the eastern ukraine, separatists if you will and ukrainian forces, if there is going to be any kind of peace there it is essential that these to start talking. Thank you so much, ryan. Netflix Ceo Reed Hastings comes back to the small screen. Startsis the new black its second season. Be availablewill for download tonight starting at been caught out Verizon Communications for slow download speed. There have been flashing messages. The giants sent a cease and desist letter to netflix. We will see how all that plays out for netflix. Up front just finished. Major broadcasters like cbs striking a deal with and online firm. They will sell commercial space seven days after it layers on live television. The original was around three days. The media buyer is group them. This could change the way the way madison avenue does business. I am joined by my guest host mike dolan. He is the former ceo. Of fire come. He is the interim ceo of bacardi. Media, it allrts, goes together. How. Ll me there is a growing consensus among all parties that the way people watch tv is changing be. The gen xers and the general iron is dont believe in appointment tv. They believe that the appointment is when they make it. The way people used to watch it has fundamentally changed. That is an important breakthrough in this. We have been seeing that. The thursday night to use to be so popular 20 years ago, we dont have that anymore. People want to watch it when they are prepared to watch it. I want to watch it on different screens. The Advertising Community is coming to terms with that. Understandying to what the right economics are between them and the broadcasters. They went to recognize that behavior has changed fundamentally. Does that put more money in broadcasters pockets . I think it does. It whatever it is, the economics of shifted more toward the broadcasters. The advertisers are acknowledging that people are going to watch this for a longer. Of time and a different forms. Correct me if i am wrong, this is only going to make sports, live sports for granting, that much more valuable. Reallyonly thing that people will watch when they are supposed to watch it is sports. Sportskes the value of rights that much more. They already seem inflated now. This may be just the start. This is something that the broadcasters can agree on. When the world cup is shown, they dont think we are watching it. Nobody wants to watch yesterdays soccer match or yesterdays football game. It this is all about the here and now. Be with meou will through the jobs report. Up next, we look at the impact of sports on networks and cable. It is jobs day in america. We are 20 minutes away from those numbers. This is what the aol cofounder said recently. Tech revolution has had a lot of benefits. It hasnt been as good at creating middleclass jobs. That is an area that needs more focus. We will have full coverage of the world cup. We will show you how the world uses a soccer pitch to generate billions in commerce. Erik schatzker will give us reports from the week. Lucky guy. The world cup is having a big influence on madison avenue. Participation at much higher than it was in 2010. Many bluechip marketers are seeing this as a premier opportunity to advertise like the 11th or super bowl. Joined by mike dolan, the former ceo of img world. Are the advertisers this year so excited about the world cup . We were talking about these events. If anything, the u. S. Has lagged behind the world cup. Had the nfl and nba and baseball and a lot of other opportunities for people to enjoy sports. The rest of the world has been their version of football. These are the other 4. 5 billion people. This has universal appeal around the world. North america is just starting to catch up. Why do you think that is . Of young kids in this country over the past 20 to 30 years. They have been exposed in school to the game of soccer. They play a middle school. Outlet onnot had an the professional level to continue their interest in the sport. Bit about thettle last time when i was here about india. This is the same phenomenon. You were starting a rugby league. We were starting a football league. It has now started. We were talking a little bit about basketball. The kids late basketball in school. There isnt a professional league for them to carry their enthusiasm to. I think with the success of the mls over the past decade or so, with each and every world cup, more and more buyin from the viewers comes into a world game. A more is becoming global population in the United States. They like to watch soccer more. Especially in the hispanic market. They love soccer. Are realizings that if they want to hit the hispanic market, they should be sponsoring the world cup. It is all of those forces that are converging. I want to talk about the timing. The games will be played in our big zone, that will be a boom to people following it in the United States. The 2ndis walking down avenue at night. As you walk past the bars, all youre going to see for the next couple of weeks is the world cup. This is controversial. How worried is the nfl . More kids are playing soccer that used to play football. How worried is the nfl about that . I cannot imagine they are very worried. American football is so ingrained in the culture. Job have done a fabulous producing the events. There is this issue with concussions. It could affect soccer as well. Nfl, i would not be terribly worried about it. You dont think the concussion issue is a big deal . It is for many sports. Hockey. There is head to body contact. The stanley cup finals are going on right now. How big of a deal is this going to be for Madison Square garden . A championship has eluded them. This is a great opportunity for him and Madison Square garden. They could not be under a luckier set of stars. You have been following the rangers. It it has been transformative in new york. Everybody is a ranger fan. It would be the first championship in 20 years. It is electrifying. Reportill have a jobs coming up. Stay with me. Is allimportant jobs report out in less than 10 minutes. Alan krueger will be joined in the conversation. Much more after this break. Youre watching the life loop. Wirelessd largest carrier said 29 governments asked for access to its network. The request range from wiretapping to intercepting calls to access to broad broader information. Lexis is on track to overtake mercedes. A after trailing its competitor for three years, they outsold mercedes for the second time in five months in may. Lexis came within 12,000 deliveries of bmw. There is a race to be at the top. Ups has ac suite shakeup. Are chief operating officer will become the next ceo and appointed him to the board. The current chairman is retiring and will a seem the road role of nonexecutive chairman. Them on Market Makers coming up right after. It is 26 minutes past the hour. We are going on the markets. Equity futures are ready unchanged ahead of the may jobs report. Expectedand jobs are to have been created last month. We will see a just a few minutes. We are on the markets again in 30 minutes. Dolan. Back with mike i want to bring in a, must alan krueger, the former chairman of the president s council of economic advisers. He is a professor at princeton university. On earlierw you are with tom keene talking about the jobs report. You say one of the key things you are looking for is labor participation. Yes. We saw a big drop in labor force participation. I think we will see some bounceback. Because of the aging of the ofulation and discouragement longterm unemployed workers, that will move downward over the longterm. Month, there will be a little bit of a bounce back. What about you . Hire ande who has to expand your workforce, what are you seeing in the jobs market . I am curious to see allens opinion on this. Createdity of the jobs is important. Do you have any sense of that . What would be a good number or good proportion of higher value jobs added as opposed to lower Value Added Service jobs . Excellent point. Construction jobs were week at the beginning. Professional Business Services have been strong. The composition of jobs is very important. A look closely at what is going on in the wage rate, to see if there is any pressure on wages. That will help consumption and the economy overall if there is wage growth. Is there any pressure on wages . We are seeing that. Theres no question about it. Has beenhere containment of wages over the past four to five years. Companies have managed to what we used to call the middle of the pml. There is very little growth. Earnings byproduce managing the cost structure. There is a containment of cost. This includes wage costs. With the growth in revenue and the expansion of the economy, we should see some expansion. Are you going to pay us . Are you going to satisfy the shareholders . It is a competitive market. You have to pay a fair rate. You have to pay a competitive rate. This is a very competitive market place for talented people. You have to pay the going rate. Hang on. That jobs report is coming up at any moment. We have also got scarlet fu standing by and. At the labor department. 217,000 jobs added last month. The Unemployment Rate is unchanged at 6. 3 . There are no major curveballs. There were no revisions. Not much is happening there. We have gained back all the jobs lost during the course of the recession, 8. 7 million jobs. We have added back 8. 8 million. 6. 3 unemployment. The Participation Rate is unchanged. The Household Survey rose. The u six number, 12. 2 is down from 12. 3 . There was a big jump and health care. Upsure and hospitality is 39,000. Temporary jobs are up 14,000. Than 40,000. Hourly earnings is up 0. 2 . Wages were up. The average weekly hours is steady at 30. 5. No major curveballs in this report. Nothing to scratch her head at. We have had four straight months over 200,000. 198,000onth average is jobs a month. That is one of the most unsurprising reports. Spike inabout a futures. Futures were up little changed. Now they are showing a slight modest gains. It is still in the category of a muted reaction. I did see the 10 year yield move up a little bit there in it was just a load 2. 8 . Not Much Movement in the yen or the euro yet. Not much of a reaction. The level it was expected to. It came in just in line. I am looking at the composition of the earnings. Allen was talking earlier about whether you are getting paid more or less. Within the construction trades, we did not see much homebuilding constructions added. Manufacturing jobs helps. It looks like this is the kind of social assistance of people who dont get paid a lot of money. They are adding jobs because it is paid for by the government. They are not adding highpaying jobs. You have the lowpaid jobs, people in the middle can be added. We are still missing that piece. Hang on with me. I want to bring back allen and mike dolan. Allen the, what is your reaction is to mark i wouldve slept really well last night. This shows that the economy is healing. There is a lot of work that needs to be done. Parts of the recession and need to be addressed. Continuing ands gathering steam. The recovery has been slower than we wanted, but it is now entering its fifth year. It looks like it is going to keep going. Where is it going together steam . We just see interim incremental gains . We need to build on the pressure progress we have made. Given how much wealth was we need to see weakness in construction. This is a steady as she goes. The longer it goes on, the greater confidence it will come back. Second halfd to a that willuld be be better than the first year. This will be stronger than the year before. It is gradually building. As a ceo and the employer, what is the most important thing you are looking at in order to make your hiring decisions . It is demand. It starts with consumer demand. What that requires is people having enough funds in their pockets to be able to purchase things. The improvement in the economy that allen was talking about is important. That is the flywheel that drives the entire economy. It creates a demand that drives revenues and the entire p l. It begins with that. I think the numbers are good in the aggregate. I am not an economist. I think it wouldve been nicer if the manufacturing numbers had been larger. Those are jobs the are in decorative real production. Arehose are jobs that indicative of real production. I would take the good numbers and put them in the bank. Is that a trouble spot . I agree. It wouldve been better if manufacturing was stronger. In the last recovery, we were losing hundreds of thousands of manufacturing jobs and then it fell off a cliff. We have added over 500,000 manufacturing jobs, which is a good start. Wages up 2. 4 . For about 80 nt of the workforce. The bottom 80 are sent start to see wage gains. It that will bring back the demand that microsoft about. That will strengthen purchases with discretionary items. I want to bring you back in here. We were talking about the wage pressure. Whether or not we are seeing indications of an upward pressure on wages. We see a little bit of that in this report. Wed see a lot more so that employers are going to start hiring. A gets complicated. It is not just wages, it is benefits. We are not seeing much rusher on the wage side. At this point, we only see 2. 1 ge hourly wages up over the course of the year. You need to get into the threes and fours before the recession. We know it is what people take home and what their incomes will be that drives additional spending. Futures of found a direction. Higher. They are up at least 2 10 of one percent. As for everything else, we are not seeing much of a reaction. I want to go back to the idea that because of the federal it has led to a muted response of the market. Garnett going to see a very strong reaction to the numbers given that the fed is not using it to guide Interest Rate direction. How is all this going to play in washington . A Midterm Election year. This is a solid number, but is it a good enough number to feel better about the economy. Can republicans make the economy a big issue in the Midterm Election . Plays tosure this either side specifically. Want to pick up on is the manufacturing number. We had that down for the month. If four of the last six months we have been in the single digits. We have not seen the manufacturing growth and people are looking for. Let me posit something. Port. S an unremarkable everything came in as expected. That is good news in the sense of animal spirits. We have had a good start to the year and then things fall off. This is the fourth month in the row of 200,000 jobs. Maybe we have reached a turning white double stick in peoples minds and they will feel like things are Getting Better and act on it. That is right. This is steady as she goes. Workthe manufacturing, the hours were increasing which means future hiring. Case how many manufacturing is expanding. We are starting to regain and build on the progress. It took much too long to get here. The recession was deep. This is a milestone that we have more jobs than we have ever had before. It is growing at about two and a half million a year. That is fine. We need to make up for all his , we are expanding at a reasonable clip. Thank you so much for joining me. Mike dolan is my guest host for the hour. Thank you so much for joining me as well. We will have much more on the job report. A we will head to the white reaction from you labor secretary. Stay in the loop. We had a jobs report that was in line with estimates. Jobs created. The jobless rate hit drop a little bit. We are continuing to improve. We continue to talk about jobs. My guest host just lost a job and get a new and. He is interim ceo of bacardi. You just took the job last month. I did a couple of weeks ago. Things are great. Bacardi is a familyowned company. Based in bermuda. Originally cuban. It was founded in 1862. That was pushed out by castro. Castro nationalized all the companies in cuba. It is familyowned. It will continue to be familyowned and it is a terrific company. What do you do when you step into a new company . The first thing you do is listen and find out what people think. What are the opportunities that exist and the impediments to moving the Company Forward . The single most important thing is to keep your ears open and connect with people. I started out as a consultant. You were on the other side. I am not a big believer in consultants. Managers have to do their own homework. They have to spend time with the people who work in the company. They really know what to do. How do you translate from being a rubicon into a Spirit Company . It is a spirits company, but it has more in common with Luxury Products than most anything else. These are highly Branded Products in bacardi. They are very highly branded. The emotional intensity that people have with the kinds of scotch they drink or the vodka they drink or the rum they drank is not to be believed. It this is the closest parallel. It it is heavily branded. It is reminiscent of the issues i dealt with. We would deal with companies with those issues. Luxury brands and how to connect to the consumer. We will have much more with mike boland. Well be back in two minutes. That is how many fans sweated it out in the at t center for game one of the nba finals. The air conditioning broke just before halftime. The temperature soared to 91 degrees. The game went on. Lebron james could not take the heat. He had to leave the game with severe cramps in the final moments. Let the conspiracy theories begin. Another battle we have been Donald Sterling finally dropping the lawsuit against the league and signing off on selling the Los Angeles Clippers to Steve Ballmer for a record 2 billion. Mike dolan is with me. This is an area you know very well. He had no chance in this lawsuit. It was a long shot. I wish i had bought the clippers back then. He made a killing. What are the lessons . You are a consultant. It playis great to see out. I think adam silver, for a guy coming into the job as he had this land on his desk and hats off to him for handling this so well and decisively. Is what he did was worry about the brand. Whatrried about the brand. He did was everything he had to do to protect the value of the brand. We are talking about all the other teams and the franchise that is the nba. It is one of the most viable sports brands in the world. Dillydally and get a bunch of consultants in or it wasnt advisers, he just took a decisive action. Think he was fielding a lot of phone calls from other team owners . Im sure he was fielding tons of phone calls. Managing aou are group of people who are billionaires. They are hugely successful in their own fields and have multiple and strong opinions. That is a tourg de force. Wasing a consensus within heroic activity. He is writing a high. What does he do to leverage that . Continue the way he started off. He has to manage the way the brand appears. Make sure that the various stakeholders support the brand and dont diminish it. I think it is unfortunate. Does he have to have a tighter rein on the owners . As someone said years ago, you rule by persuasion. I think that is a job where you have to have great intelligence because you have persuaded that this is the right thing to do. The 2 billion price tag yet, that is astronomical. What is the aftereffect of that . We were talking earlier about the value of sports rights and these franchises. , they look at alibaba paid 200 million for it. That is the best team in china and probably in asia. This is a global phenomenon . Rightyou bought the faberge egg, it will increase in value over time. When you look at those bets, the nba is a good place to have made money. Of brands, Phil Mickelson is a legendary golfer. He is in this Insider Trading case. At what point do sponsors start to distance themselves . This is another matter of the branding issue. I dont know what the situation is with Phil Mickelson. Keep in mind that the first reports from the battlefield are always wrong. I hope that he is cleared. In the meantime, what he has to be careful about is how do you handle this pr problem . I was saying before, maybe one of the best examples of that was 25 years ago. The best way to handle those things is to be direct and honest. To come out phil and take the high road and be very honest and direct. So much for staying with me through the hour. It was wonderful. Good to see you again. Is 56 past the hour. Bloomberg television is on the markets. Are lower than estimates. They are in line with what was forecast. We will watch how the markets trade as we head into the opening. We will be speaking with the labor secretary. He will give us his view literally from the white house. We are about 30 minutes away from the opening bell and you are a quote in the loop. Equity futures are higher. Employers added 217,000 jobs in may to push u. S. Payrolls past their prerecession peak. The jobs rate held at a sixyear low as the economy gained traction. At thelive in arkansas walmart Shareholders Meeting at a time when it has been struggling with sales and a tarnished reputation after a bribery probe and mess to go. A seconds getting wind. It has surged in recent weeks. Right now in normandy, president barack obama is taking part in an International Commemoration for dday. Atis attending a ceremony one of the landing points when troops stormed the beach during world war ii. He is speaking now and then french president Francois Holland will give his remarks. Market news is the may jobs report which showed unemployment for the month remained that 6. 3 , the jobless rate. Michael mckee digs further into the report that gave few surprises. This were an ice cream parlor, the economy just walked in and ordered vanilla. It tastes good but nothing remarkable. We are just about on point with at number of jobs created 217,000. The consensus was 215,000. It is four months in a row over 200,000 jobs created. We have not seen that since 1999. Maybe we are not getting huge increases we have seen in some recoveries but we are seeing strong steady job growth. The Unemployment Rate stays at 6. 3 and fell that far last month because although one Million People left the labor force, this time, people came back in. We stayed that way because more people were hired is the good spin for unemployment. As far as hours worked, unchanged. The fed wants to see wage prices rise a little bit. That isggestion is that what will indicate that we are really making pressure. There is not a whole lot for the markets to react to. Given that there is not a lot to react to hear, does that mean Something Else will be more important . For signswill watch that the economy is building on the momentum that it has. If more people have jobs and are making more money, they should start spending more synnex week we will take a look at retail sales. We will see if this economy can start to get going and if employers react to having more people i ramping up production. Thank you so much. Lets turn to another subject that has been a focus for this week, tesla motors has been battling with u. S. States over the push to sell directly to consumers. The automaker seems to have turned a corner in new jersey. An Assembly Committee yesterday unanimously passed a bill that would allow it to open for sales outlets in the state. Dealerships might view this as a setback, it is not the only thing that could stand in the way of their business. Found that nine out of 10 americans wish car shopping was easier. Someone somewhat even give things up like sex, facebook and their taxes to avoid that hassle. I would definitely give up my taxes. Joining me with more is the consumer advice editor at edmunds. Com. 90 of americans hate going to a dealership, that is not a surprise to me. Its not surprising because people get very stressed out about car shopping. They hate haggling. They hate not knowing what the car will cost. We were not shocked by the survey results ourselves either. How have these Car Dealerships been able to stay in business with such poor consumer feedback . People were accustomed to shopping a certain way. People really only buy cars once every seven years or so. There have been massive changes the last seven years about everything, about car shopping and car buying. The car shopping process has changed considerably. Not everybody has caught that wave. What has been the biggest change . To get a lotbility of information very quickly via their laptops and now theyre smart phones. On the fly, they can understand where cars are available for shopping and understand tries. They can find out the going price for this car in my market and what to i want to pay. It has revolutionized the way people car shop and progressive dealers get that and theyre coming along. There seems to be more transparency. What about the challenge which we covered by tesla on these dealerships . You say that it is interesting but it cannot scale up. It cant. 60 Million People will buy new cars in the United States this year versus about fewer than 20,000 hours that tesla will sell. The tesla model does not allow for certain things that people have expected when they are car shopping like tradeins. There is a long way to go and we think that elon musk himself is right when he says he will have to work with franchised dealers as he scales up to being a mass marketer of automobiles. He will cherry pick the good ones and make sure they have the experience a want. Your view, there seems to be no way these dealerships are going away . Not in our lifetime but they are changing. It is not static. They understand they have to meet their customers where they are. On theirmers are tablets in the smartphones and progressive dealers get that and they will change to meet them. Thank you so much. Over in arkansas, the walmart annual Shareholders Meeting is in full swing as the company the so oe investors following the bribery probe in mexico. The i spoke to the new York City Comptroller on why the citys pension fund is now voting against nearly half of the companys board of directors. We still do not know nine years later what exactly happened, where the company is going. We want financial disclosure, we want an independent order chair. We want to know about access related to executive performance and we want lobbying disclosure. Putting it all together means as shareholders, we have a fiduciary responsibility to make sure the company is operating at its highest level. Thats just one of the issues for walmart. Julie hyman is outside the meeting in arkansas. Does this seem to be a common complaint among shareholders . Stringer is not alone in wanting independent chairman. I have here the ballot for the company. It has that measure on its 11 independent chairman and a measure on reporting on clawback of executive pay as a measure to report walmarts lobbying efforts. There was a shareholder in their who was an employee of the company who presented on that independent chairman proposal. There is some support for it. It mightany support have is going to be worked by the support of the Walton Family which controls 51 of the company. It will be adjusting to see what kind of votes a guess but it does not have a chance of passage because of the walton control. True of the likely other proposals as well that are on the table. As well is business, the walmart meeting is unique in that they have a lot of performers and surprise performers which is a closely guarded secret going into the meeting. Harry connick jr. Is the mc with rob walton. He has been ushering in the festivities and we saw robin thick along a while ago and pharrell. I miss that because i was waiting out here. The crowd was very excited. Employees5000 walmart that the Company Brings in from around the country and around the globe for the meeting, many of them are shareholders. Very starstudded for walmart. Im sorry you had to talk to me in this that. Thank you so much. I owe you a drink. Coming up, we will take a deep dive into todays job report and what it means for the economy. Mohamed elerian will be with us in a moment. Ubs announced will be announcing a shakeup with the ceos. That will be on Market Makers at 10 00. One stock we are watching calledrning is a company zoes kitchen, a mediterranean restaurant chains that reported its firstquarter results after going public in april. It has been using the proceeds from its ipo to focus on growth. It plans to open up to 30 new restaurants this year. Kevin miles is the president and ceo and joins us now exclusively. Thank you so much for joining us. Outside the earnings come i want to focus on jobs. We are on jobs day and are talking to several employers. As you are expending, are you finding it difficult to hire . Thank you for welcoming us and allowing us on your show. Absolutely not, we are excited about the growth we have. Our ipo has brought a lot of attention to the job market and attracted great town for us. We are not seeing that of all. G all the folks who brought onto our team. Are you finding it hard to hire people with higher skills or is that not a challenge . It has not been a challenge for us. We are getting great talent. With the newness of our concept and as we grow across the country, it is resonating. We have always been focused on hiring a great talent and great team and is one of the toppings things we look for as we do this so we have not had that struggle. Where are you expanding . Really across the 15 states we are currently in, from texas up through the northeast into philly. What is the biggest challenge as you are expanding . What eats at the most cost . It is finding great real estate first and foremost. Also great talent. We are selective of our talents and look for great hospitality and its imperative to our business to really deliver that great mediterranean experience that we expect our restaurants were customers. Are you hiring admin wage . Not, we are above minimum wage and always have been. Continue to pay great wages and look for that great talent and we are willing to pay for it. That is a big issue right now for the entire restaurant industry. As you see protesters fighting against mcdonalds and walmart is another one that has been the subject of this. Are you worried you will see these wages rise for your industry . I cannot speak on behalf of the other concepts out there. Focused onhave hiring great talent and paying the wages as we need to. We dont really see an imminent issue in our business or any kind of decline by doing that. We are well above the minimum wage. We will continue to focus on that. Always comply with the federal laws out there we dont foresee that as an issue for us today. I know you are expanding but where have you put that capital to work . A big majority of it was to pay down our debt. Thewe continue to build infrastructure for our growth. We are focused on longterm growth and building new locations across the country and bringing zoes to a location near you. Thank you so much. Weve got some breaking news we have been monitoring president obama and his trip to europe where he was in normandy right now. The white house says obama and russian president Vladimir Putin had an informal meeting today. There has been a lot of attention on how much the two would speak if at all. They had an informal meeting today we have no other details from the white house but we will keep you posted on that as the details come out. We will be back in two minutes. Bitcoin appears to have gotten a second wind as its value has surged in the last couple of weeks. Dish and ebay are taking further saps steps to accept bitcoin. Matt miller joins us now. Whats going on . So much is going on with bitcoin. I spent all night talking to people onredit and tweeting about it. I called up my buddies in Venture Capital. Its a number of Different Things but the general idea is that big corporations, big money , Venture Capital, even government regulation everybody seems to be getting behind it Even Television news anchors are not so cynical anymore as they have been on the past. Dont look at me. If apple allows coinbased and other bitcoin apps onto its ecosystem, thats a huge thing for adoption. So many wealthy people would be investors in bitcoin and use apple products. I personally got rid of my iphone and got a samsung because it was easier to use my wallet on android. Dish is another thing. Its a big Large Corporation that realizes that this is an soy way to get paid for free why not take it . Many other people will do the same. Donahoe from ebay talking about taking it and the paypal ceo says he is long bitcoin. If you look at the Venture Capital money over the last three years, its amazing. In 2012, 2 million of Venture Capital money came into the bitcoin startup world. Last year, 88 million and this got, its only june, weve 113 million. The big names are buying into it. What about the tax issue . It iss ruling widely misunderstood or it its not that if you make money in bitcoin oversees you dont have to pay capital gains. You dont need to report those accounts. The irs is getting into this and regulating it. U. S. Regulators are on the forefront of bitcoin regulation around the world. None of it has been incredibly china style negative or russia styled negative. All in all, the signs are looking good. Thank you so much. Were a few moments away from the opening bell on this job day and we have the top 10 trades you dont want to miss after this right. Welcome back. It is 26 minute past the hour on this jobs day. Scarlet fu has more as we are on the markets. Futures went to decidedly higher after the 8 30 a. M. Jobs report. 500 closed the s p at record highs yesterday and we are set to continue that run. 217 thousand jobs added in the month of may and the on implement rate dropped to 6. 3 . We are seeing strength overseas with european stocks higher. This comes a day after mario announced interestrate cuts priced into the market but a series of stumbles measures that of cap markets rallying. Thank you. Lets count down to the open with top 10, the only trade you need to know about today. Matt miller joins in. Lets start with number 10 and t mobile. To benearing an agreement acquired by sprint is likely to run the combined company. The t mobile chief is being favored over dan hesse, the ceo of sprint. Number nine is angies list which has been upgraded to a buy from neutral. The companys overall trends are moving in a positive direction. Its a small rebound from an otherwise down year. Number eight is monster beverage. The soda maker has been ordered to pay 1. 7 million to the beastie boys and a Copyright Infringement suit. The band has accused monster beverage of using its music in a promotional internet video without permission. Aig, who saidn is it may repurchase as much as an additional 2 billion in private stock after selling its aircraft business. Aboutave brought back 418 million in shares as the end of the first quarter. Number six isveriphone reported secondquarter profit analystped out that estimates. Because of their forecast for the year as well. Number five is mens wearhouse who reported firstquarter earnings that were better than wall streets estimate. It also said it expects its planned merger with joseph a tank to be completed within the next few weeks plus emma you will like the way you look, they guarantee it. We just had to say it. Panera breadr is announcing a threeyear stock buyback row gram worth up to 600 Million Dollars replacing an existing one that was set to expire in august of next year. They said earlier this week it will remove all artificial ingredients from its food by 2015, part of a healthy food craze. Number three is diamond foods. It reported a loss for the third quarter. It voted strength that had reported strengthen its mac business. Number two is hertz. It fell as much as 12 in early trading after saying it needs to fix three years of accounting. It also announced that Quarterly Results will not meet consensus estimates on weaker car rental revenue. Number one is ups, which is named the chief operating its new ceod abney replacing scott davis so dont miss both executives on Market Makers today after 10 00 eastern time this morning. As the markets trade on the jobs data, i want to bring in economist Mohamed Elerian who is a former ceo of the big bond from emco and now the chief Economic Advisor to allianz. What is your take this morning on the jobs report . Good three takeaways. A solid number overall. It is good to see a monthly number in excess of the 12month average in terms of job creation, and finally we are back over the eighth of january, 2009, in terms of how many people were employed. That is the first takeaway. The second takeaway is there are longterm concerns. Earnings growth is anemic. The third takeaway, directly relevant to markets, the fed will welcome the jobs report because it suggests there is slack in the labor market in the policy stance can remain as is. The markets like that. Steady as she goes in the tapering and the economy. Thesignificant is it that labor force Participation Rate seems to be stuck at the 63 level . It is significant. Stuck, thewo numbers dissipation rate and Participation Rate and longterm unemployment. It is structurally embedded, and that is not good news, complicating policies around the world. It is. What can washington do we will be speaking with the labor secretary what can washington do, if anything, to unfix the problems . There is a ton they should do. Issues of down to productivity, competitiveness, supporting the labor market, retooling, retraining. Congress has the ability to do that. The problem, as you know, is they have not stepped up to the plate when it comes to economic governance, and there has not been much down on capitol hill. There is a lot congress can do but i suspect there is not much congress will do. I am sure we will get a chance to ask the labor secretary in a moment. Onto the markets, mohamed and how they interpret the data. It looks like the fed will continue that paper tapering program, and some worry that as we continue we will continue to see distortion in the markets, and you see that through how bonds are trading the City Equities obesity equities. Will we see more of that at this year . We will see more in the next few months. The markets are comfortable watching the fed, the ecb, the Central Banks wave. They believe they are the best friends of the market, they have proven to be, and for now, everybody is willing to ride the wave, but as you say, it causes distortions, excessive risktaking. At some point there will be a correction. For now, everyone is comfortable because the Central Banks are signaling they remain supportive of markets, not because they like markets, but it is john the way they can impact the real economy. It sounds as if the economy is improving, should we not see a significant backup in yields . It is not improving fast enough. That is the problem. It is improving, but rangebrown. If you say it will be rangebound, and then tell them that it is supportive and protectable, markets will lever virtually every risk factor. Equity, credit, default, volatility, and liquidity, and that is what is happening right now. Do you see a new neutral, as we have heard about from bill gross and others, in yields do you see that as the status quo from now on . I think for now the markets are going to be comfortable e. Aying the central bank them it has been very rewarding. Over the longer term, it is correct to say that natural rate of interest is lower than it has been in the past. Where there is going to be a lot of work is how much lower, and that is open to debate. It is absolutely open to debate. Mohamed elerian, in the years we have talked about the economy and its recovery, you have mentioned liftoff, the escape velocity. We are improving, but there is not that escape velocity. What will change the picture for the economy . We are improving, but again, like you said, it took us 51 months to get back to where we were before the rate recession, twice as long as the normal cyclical rebound. Clearly, there is Something Else happening in the economy. What else is happening is the Growth Drivers are not strong enough. To get the liftoff we have to istinue healing, which happening month in and month out, but we also need the extra impetus, the extra push for escape velocity, and that is policyrelated. I do not think the private sector can get there on its own and as we discussed, unfortunately, congress is now moving. Condors is not touching many issues that some would say would help the jobs market. Stay with me. We will be speak with labor secretary tom perez from the white house with their take on the jobs report. We will be back in two minutes on in the loop. Well, for more on the may job numbers we are joined by labor secretary tom perez from washington, and also with us Bloomberg View columnist and allianzs chief Economic AdvisorMohamed Elerian. Z, as mohamed went out, we are back to prerecession levels in terms of the number of people employed. Does that list a huge weight off of washington and this country . We are moving in the right direction. We have seen 51 consecutive months of hard sector job growth, and mohamed is correct in the numbers that he cites, but we have a lot more work to do. We have to pick up the pace of the recovery. Before aboutd policy intervention. We know ways to pick up the pace of the recovery, investing in transportation and the structure. Those are good, middleclass jobs and they are real issues addressed. Addressing the minimum wage puts people put money in peoples pockets. This is been a consumptiondoes deprived a consumption deprived recovery. Havehe things i described been bipartisan and regrettably some republicans in congress have blocked these. Well continue to fight 40s because this is how you pick up the pace of growth. You mentioned infrastructure, immigration, and minimum wage, three issues that have stalled in washington. So, are those the only policy alternatives to try to accelerate growth here . Well, we will continue to fight for those. They are not the only policy alternatives. The president has put on the table tax bills to lower taxes for businesses and take a themime savings and put into infrastructure. There are a number of things on the table. The president s jobs bill has been on the table for a long time. Investing in our Human Capital what we do at the department of labor make sure. Oh make sure people are trained for the jobs of the 21st century. We need to do more of that. We have 1 billion on the street in competitive grants that help local governments and community colleges, and individuals get the skills they need to succeed in todays manufacturing, tomorrows manufacturing. These are things where other countries have figured out what to do. Look at germany and their publicsector workforce investment. It is significantly more expensive than what we have here in the United States, and those investments pay dividends. Mohamed, i know you have a question for the secretary. Because congress is now moving on the issues you just raised, longterm unemployment remains high. Some of us are very worried that it will be entrenched in the system. The question to you is how many more months of solid job gains do we have ahead of us before we hit the level of longterm unemployment that is very difficult to move because congress itself is not moving . You are absolutely correct that the longterm Unemployment Rate is unacceptably high. Think it is 2. 2 in an ordinary coverage from a recession the longterm Unemployment Rate is usually about 1 . So, if we had that, we would be added on implement rate of 5. 1 . Here is what we are doing. We have 150 billion on the street right now in grant proposals for the purpose of helping to catalyze best practices and hiring a longterm unemployed. We know a lot about what works out there. I was with the Vice President recently in new hampshire. There is a program there where using federal funds we actually subsidize the wage of the employee, the longterm employee if the employer takes a flyer on him or her. Employers that have used this have loved it. It has a great return on investment. We are putting money on the street to help catalyze those partnerships and best practices. We have to extend emergency unemployment compensation. This is the first time that congress has failed to act when longterm unemployment is at this level. Congress has always lifted this lifeline for the longterm unemployed. It is a lifeline. It is not a lifestyle. I speak to longterm unemployed all of the time. I had a focus group about one week ago. These folks are talented, working their tails off to find a job. They are so angry when congress as they are lazy, because they are not. That is right. You have opponents that would say the fact is we have not extended unemployment benefits, job creation is up over 200,000, we have had that for the last four months, and that shows there is no need to extend the benefits, and maybe it has forced, in their view, people they believe are lazy, to go out there and get a job. People who suggest that the longterm unemployed are unemployed by choice have not spoken to the longterm unemployed. I have not met a person who is having a ball sitting at home making 1 7 of their salary, not being able to pay their bills, not been able to keep the heat on during the winter. This is a catastrophe for them and that is why it is so important to extend the benefits of quality same time doing the investments we are talking about so that those that need to be upskilled, we provide the training that allows them to get back into the workforce. The onthejob training funds are an example. Extensive case supervision. We are spending a lot of time with a longterm unemployed. They need that help. When you are told 100 times that i can not hire you, you start to lose your confidence. We do not want them to lose their confidence. , two are forperez joining us. Labor secretary tom perez. My pleasure. Mohamed will stay with us. The blockbuster announcement from mario draghi and the ecb. We will get mohameds take. That is president obama on the far left. Russian president Vladimir Putin on the far right. They were at a lunch in normandy in remembrance of the 70th anniversary of dday. The white house says they had an informal conversation at the 15nch, lasting around 10 to minutes. Well bring you the details of the talk as soon as we get them. Time for the global outlook, andBloomberg View columnist allianz advisor Mohamed Elerian is back with me. Before the jobs data that today, the European Central bank yesterday ratcheted down Interest Rates with the deposit ranks rates in the negative. All of this historic for the ecb, but you worry it will not be sufficient. It was historic, and precedent, not only in the choice of individual tools that the ecb ended up using, but also the package approach. They have a bit of everything except for qe. Yeah. Historically been, and the equity and bond market reacted accordingly, but keep an eye on the currency market. Munch did not budge much. There is a sense that while they what they are doing is it isant, monetarily wise not enough given the structural issues. We talked about the structurally choose in the u. S. Issues in the u. S. And you can multiply that in europe. Monetary policy is not enough to overcome the structural issues it a good move, but not enough. It is a demand problem equation. It is out of the hands of the ecb. How do policymakers get the demand out up . They are the same issues here, productivity and competitiveness, but also you have unbalanced demand and supply throughout europe. They have the National Level issue and then the other, how to get balance within a currency zone. That is proving difficult and it is not because the central bank is not engaged. Just like the fed, the ecb is very engaged. Other policymaking entities are not sufficiently engaged. Executing the ecb will have to employ some sort of qestyle . Rogram, mohamed i think i will. They will need to take some time to see how the measures works out. It is complicated. They will have to see if there are unintended consequences. If growth remains in, if inflation remains stuck, they will take another step and mr. Draghi made it clear when he said we are not finished yet. That was his phrase. What time frame are we talking about before another move . To probably to three probably three to four months. Not too far ahead. Does that have any implications for the fed . It means we are on a multispeed world of banking. Think about the ecb stepping on the accelerator while the fed is taking it off while continuing. O taper we will see a multispeed world of central banking, something we have not seen in a while, and only an interesting theme for the markets over the remainder of the year and into the next year. Mohamed, thank you for staying with us for this halfhour. Mohamed elerian, the Bloomberg View, missed and the chief allianz advisor. That does it for in the loop. Keep watching us on live on Bloomberg Television and streaming on your phone, tablet, and on bloomberg. Com. We are on the markets next. Have a great weekend. It is 56 minutes past the hour. Bloomberg tv is on the markets. I am scarlet fu. We are 30 minutes into the start of the u. S. Trading day. Another day, another record high for the dow and the s p 500, both gaining at the moment. European stocks are rising as well, one day after mario draghi cut Interest Rates and announced stimulus measures. In the jobs report we learn that the economy added 217,000 for the month of may and unemployment fell to 6. 3 . All right, well, now that the jobs report is over we can focus on this weekends big events, sports, specifically. Tomorrow, California Chrome going for the triple crown at the Belmont Stakes and the new york rangers facing off against the la kings in game two of the stanley cup final. Sunday, the nba finals pick up again with the miami heat trying to rebound from the loss to the san antonio spurs. Whichever teams win or lose lets go rangers there are some stocks that benefit. We are joined by sam poser to look at the retail winners. When it comes down to winners, youre looking at nike and under armour. Definitely. What we see with nike across all categories, exceptionally basketball especially basketball, exceptional business. Their marquee player shoes do well. Lebron shoes, the jordan launch sold over 300 thousand pairs. Michael jordan shoes still have an impact. Are a much so. A lot of the players play in them and the retro shoes do well as well. This shoe in a daze did 44 million in a as did 44 million in sales. All of this exposure to nikebranded shoes, is it enough to the highest and we saw last year for nike . I think so. They are spending quite a bit against the world cup and other events and china has been on a slow turn, positive. We think china has will turn the corner in the next couple of quarters and that is positive, and we think nike is going through the world cup, up through the olympics in 2016, ndo and thecrexe retailers we have spoken to are extremely positive about the product we see in the future. Like under armour as well, but there is a distinction between nike and under armour in terms of where they sell their products, their clothing, their gear, as nike is available in Department Stores and under armour is not. Correct. Under armour is focusing more on athletes. You find both brands in the athletic specialty and sporting and sportsels, like Authority LikeDicks Sporting Goods and sports authority. Under army does not play under armour does not play in jcpenney and so on. Nike does have distribution. Under armour is about 10 . Nike has the scale, but our growth aspects better for under armour question mark you are a little more bullish on under armour than nike under armour . You are more bullish on under armour than nike. I believe they are. You grew up on nike, but kids today want their own thing. Ball game ora tee kids soccer, it is under armour and i think that will continue to evolve. Thank you, sam poser live from bloomberg headquarters in new york, this is Market Makers, with Erik Schatzker and stephanie ruhle. Clicks of court player. This is the largest public utility at a big burner of fossil fuels, we will ask the ceo what he thinks of the president s plan to crack down on coal. A new ceo, the incoming and outgoing chief tells us what is next. War and remembrance, leaders gather in normandie to remember world war ii