President obama is meeting with congressional leaders. Republicans say they want to work with the president but john boehner says the president is asking for trouble if you changes immigration without congressional approval. Have made clear to the president if he acts unilaterally on his own, outside of his authority, he will poison the well and there will be no chance for Immigration Reform moving in this congress. He also says he expects the house to vote again to repeal obamacare. President obama sends a letter to iran, asking for help to fight the islamic state. According to officials, it went to top officials. It says the two nations have common interests and putting the militant group. Officials say it makes one of the key point. If they agree to fight, it will not get any concessions on the talks on the nuclear program. World, Big Corporate Television contracts for pro basketball and football. It is cutting into profit at disney. Company posted Quarterly Earnings that beat wall street estimates. Movie profits offset the cost of sports programming, like espn. Meanwhile, bob iger is not a big fan of all card racing. He says they have no plan to provide espn or the Disney Channel on it standalone basis. We have a multi channel bundle that is creating tremendous value for us and the consumer. There is no reason, as far as we see, to do anything rash or anything that necessarily in no way the damages it for the longterm. Shares of disney are lower in premarket trading. Hackers cost a lot more damage at home depot than we first thought. They say 53 million email addresses were stolen. To stolen addition data from 60 million. Cards. Depot says hackers got into the network by using a thirdparty vendors username and password. I want to circle back to the issue of today, jobs. Is the u. S. Creating enough . We will find out in just under half an hour. I want to bring in peter, who just wrote a piece about how the Unemployment Rate might actually be headed to 4. 7 by the end of next year. Also one of my guests today, minority owner of the Brooklyn Nets. Great to see you. Great to see you, everything good . We will see in half an hour. Peter, i thought this piece was interesting, you quoted an economist, looking at the insured Unemployment Rate. We could see possibly 4 . Next year . Looking at the eligibility of unemployed insurance, benefits, that rate tends to be lower than the overall on a blended rate. It implies because it is a forward indicator that the Unemployment Rate is likely to go down. If Current Trends continue a big if we would be down to 4. 7 unemployment by the end of next year. Which a lot of people on the fed would say is actually too low in the sense that bottlenecks start to form, companies have troubles finding the people they need, wages go up, which is a good thing, until access creeps into the price index. You would start to see Wage Inflation. Does that mean that the fed would find themselves behind the curve . The point is, this does not mean it is time for the fed to start cranking up Interest Rates. It is an indicator of where we are headed. On Current Trends, we will see what happens very soon in the october report. But assuming it is on trend, new jobs created. If that happened, we would get to the point. The fed is may be behind the curve by some definitions, but it may not even mind at this stage. Feel like the it economy is getting that much better . Our economy in new york is pretty good. The real issue is who is benefiting. The economy is definitely doing well, but what is happening to the middle class, are they doing better or worse . You were glad to see the minimum wage hike . Mary. 70 for minimum wage increases. That is a huge thing. And from a relatively conservative electorate, that is huge. That is the issue. Obama missed talking about that. Are you upset because of what happened on tuesday . I think he has not been an effective leader and that is one of the major reasons why he got them vote of noconfidence. We have talked to several ceos over the last few days, what they want to see out of washington. What was on your agenda . Issue ofsing this income fairness, the single most important issue today. It is on the American Publics agenda. They dont like the idea that the upper 1 are getting the benefits. Wage. Lly involves minimum the second thing is making sure we create middle income jobs that produce real money. Thatrrange issue, but needs to be talked about. States, two of them being red states, voting for a minimumwage hike. Will while that put any pressure on at all . Minimum wage does not tend to put a lot of pressure on average hourly wordings. Earnings. Not many people are making the minimum. Ushelps the poorest among get closer to a decent standard of living. There were actually three red states, plus alaska, all voting strongly in favor of the minimum wage. There was money that went into those campaigns from the prominimumwage people, and i asked him about that. They said it probably would have passed without their support, but they wanted to run up the make a point,o send a signal to washington. It sounds like the republicans if the ballot happened despite or with republican support, it seemed like they are rallying around it. That means for the democrats it becomes less of a flashpoint politically. And that is a good thing. You do not want a flashpoint if you want to be elected. It is also the amount of minimum wage. If you bring it up to a 15 wage, that is a different issue in terms of affecting families. But things like that have to be done. We are in a situation where the rich and the poor are getting divided more, as well as megan tash middle income. Middle income for an average family has gone down. You cannot have a country that does well when that happens. I agree. Thank you for joining us. Out the newestk edition of bloomberg businessweek. Looking ahead to the year 2015. Peter, you wrote the cover story. That is not your face. We have been grilling the c suite all week on the u. S. Jobs picture, leading up to the jobs picture. Here is what the chief executives are saying about employment picture in the u. S. More job training. The universities need to do a having moref practical skills. Company themselves are doing it as well. The problem is we cannot get people to new york city. A fairink we should have minimum wage, and it should be different in new york city than it is in iowa. But when you have crazy stuff, like what evil are proposing in seattle, that is going overboard. When you have minimumwage up into the teens, you are preventing entry level jobs and stopping job growth. What will accelerate this escape velocity in the jobs market . The combination of economic factors, lower energy costs, increasing transportation costs. As middleclass emerges in markets around the world, in asia, and they have increased demand for consumer products, you will see the momentum put. We are close to the Tipping Point today. The rest of the world is watching the u. S. For the u. S. To look strong to the rest of the world, we need a political system that works. It could be much better. The great thing is, americans are hard workers, we have great capital markets. We continue to find entrepreneurs and bring people in from the rest of the world, so the u. S. Is a great place to do business. Moving and shaking this president was a favorite to replace injured new year. Surprisingly, he has decided to retire next year. Shares of pepsico are up 17 so far this year. Nooyi has been able to fend off calls to split the Dutch Company into two. One more person out of the c suite. We get theuntil october labor report. We will hear from Mohamed Elerian and jason furman. And santa claus is coming to town. It is Jeff Katzenberg and bruce ratner. We will talk about that in a moment. As we have heard from a number of retail ceos, is beginning to look like christmas already. Dreamworks animation is teaming up with malls across the nation for a hightech holiday extravaganza. Here is ceo Jeffrey Katzenberg and one of the unveilings yesterday. On dreamworks history of storytelling and Great Technology we have developed a dream place with the hopes of creating a unique experience for the entire family which transports guests to a special destination, up north, way up north. I want to bring back bruce ratner. Also, catherine welch, the head of retail. Both of you work with katzenberg at dreamworks to bring dream place to the rigell mall. You saw these places around the country. You called dreamworks and said you wanted to work on this . Yes, we were the first one. Ll is iner at ridge hi westchester county. Ifalled dreamworks and asked i could see it. This is the future of retail. You have to create experiences that are different than shopping to bring the family and. This was a great combination of technology, theater, and adventure. Why is this important . That you givetant families coming due in the holidays. A reason for people to come to the mall. At of their houses and into the mall. Consumers are consuming, but more online. It is a lot harder to get physical traffic, people walking into your properties. It is live entertainment. In a way, because of the internet, we have to create an experience that is live an exciting. It is interesting because i think this is the beginning of something that we will see more of. There is no substitute for experience. Get them off the couch, off the computer, so i can take my grandchild to something. It is obviously great for us, but it is really important to look at it as a movement happening in the Shopping Center business. How easy was it to work with dreamworks, what were some of the points of negotiation here . It was very easy. They are very creative, interested in having this succeed. It is a new effort for them, something that will branch out the retail side of their business. They have not gotten into that as deeply as disney has. You have other malls that we can do this in . Up anotherpening center in california, rancho cucamonga. So this is the start of a longerterm relationship . Did signed longterm deals at ridge hill and victoria gardens, and we do have a few other options. We were talking about politics. The barclays center, attracting the Democratic National committee convention. What is the update on that . You have one article on one verysaying new york is a liberal place, so we will not be here, but on the contrary, people want an effective government. What really works is new york city and that arena. That is why we have a great chance. We are good at traffic, hotels, entertainment. Roviding people and experience people want effective government, they want things to work. We talked about this before, the traffic going into brooklyn, the hotels, will there be enough space . Have you been able to address those concerns . Nott is very clear, it does take long to get from midtown to Berkeley Center in the summertime whether it is by subway or by surface transportation. But the of hotel rooms. We have everything here. We can also raise the money necessary. We are a showcase place. The name brooklyn is worldwide famous. The democrats need to have an important tag. They need something that really works. How our government works. New york is our best example. Of youe are also reports selling a stake in barclays. What is the process right now . Is there a Minority Stake or majority stake that will be sold . Minority. We are looking for Strategic Partners. We have a couple of partners at this point. We would stay in control of it. Are you going to bring in the Brooklyn Nets at all as part of the deal . It is only about the arena. What Strategic Partners . Some of the bigger entertainment companies. How does that answer . Great to see you, bruce. Executive chairman of for city. Also thank you to kathy welch. Coming up, startling revelations about those exploding airbags. A new report says the airbag maker but the flaw and covered it up. And less than 10 minutes away from the october labor report. You are watching in the loop. Heres a look at our top Corporate News as we await the jobs data. Takata knew about problems of its airbags that can explode and hit passengers with shrapnel. The Company Conducted secret tests on its airbags in 2004 and ordered engineers to his delete the results, according to the new york times. Down silk road 2. 0 yesterday and arrested a San Francisco man who they say resurrected the online drug bazaar. The site generated 8 million in Monthly Sales and attracted 150,000 vendors and customers on the socalled dark web. The new star wars movie has a weakens ande so it immediately began trending on twitter. The film is slated for release at the end of 2015. It is 26 minutes past the hour which means bloomberg is on the markets. Equity futures have now calm down, pretty much unchanged as we await the october labor report. Is what iss expected. We are on the markets again in 30 minutes. Three minutes away from the labor numbers. It is a crucial window into u. S. Wages. Anyamerican workers making more money as the economy is adding jobs . Voters overwhelmingly supported increasing the minimum wage on ballots, even in republican red states. So what does all of this mean . Bring in alan krueger, professor at princeton university, former adviser to president obama. You have been talking about jobs all morning long. You could maybe look at this as a double edged sword. Generalstates in feeling that we should be raising the minimum wage. They feeler hand, that way because they do not feel the economy has gotten better, that wages are still low and income big inequality has actually gotten worse. Is the of the reason minimum wage has been stuck at 7. 25 an hour. It is well below where it was in the 1980s when you adjust for inflation. That is contributing to the inequality that we have seen. The American People spoke clearly on both sides of the aisle. Even Business Owners support an increase in the minimum wage. Although there have been some significant holdouts. Ball mark has not said walmart has not said that they would act on that. Past, they, in the have supported increases in the minimum wage. Certainly there are different views in business, but with the minimum wage being so low, it is in the interest of companies. What are you looking at in this report to tell you if there is any sort of wage pressure . The most direct measure is looking at wage growth. I look at production nonsupervisory wages. That is more indicative of wage pressure than the overall private sector wage. Unemployment, longterm unemployment. With the pattern of all the data coming in, this report should be taken with a grain of salt. Every month report is. All the other indicators are not moving as strongly in the same direction. Unemployment claims reached their lowest level since 2000. Of indicators that suggest the labor market is strengthening. Not back to full health but moving in the right direction. Employed look at the insurance rate, that indicates that we could get to 4. 7 next year. If we keep at this pace, we will quickly be in the low below 5 . That seems feasible. We are seconds away from the number. Is standing by with the reaction to the jobs report. Peter cook is at the Labor Department with those numbers. 214,000 jobs created in october, on employment drops to 5. 8 . Revisions, make this number better than it first appears. The 214,000 jobs created last month, the ninth straight month of about 200,000. September revised to 216,000, august, 2003000. The sixmonth average now stands at 235,000 a month. Survey, 5. 8d percent is the new Unemployment Rate, the lowest level since july 2008. We had the number of unemployed dropping, the number of employed rising by 683,000, the best figure we have seen since november 2013. Participation rate rising slightly to 62. 8 . Unemployed, two point 9 million, down slightly. The broadere number, down to 11. 5 , the best number there we have seen since september 2008. Only one sector where we had a loss of jobs, information. Uptaurants and bars were 42,000, retail, 27,000, construction, 12,000. Pretty good numbers across the board but no real standout. Wages were up slightly month over month. 0. 1 . Yearoveryear, 2 . Basically, another solid report. Not a blockbuster, but one that the fed can look at and say it is consistent with a trend we have been seeing. Stay withh me me. I want to go to scarlet fu. We now have gains of. 2 for futures. The nasdaq is up by. 3 . This comes as everyone looks at the report and says it keeps the fed on track with what he was planning to do. Before thed said jobs number, anything above 200,000 would be considered a good number, keeps everything on track for tightening sometime next year which we think will happen in june. I am also keeping an eye on the two year yield. 50 basis points right now. Users arent starting to tear their advantages. It did give us a little bit of direction in the meantime. The obvious question when people look at data like this is what does this mean for monetary policy, steady as she goes . This is a goldilocks report. It suggests the economy is intending to heal, you are not seeing overheating yet. We are far from that . We will start to see wages grow more quickly as black inroads. Production nonsupervisory workers wages were up 2. 2 in the last 12 months. I think this will keep the Federal Reserve on the course it was on. It is reassuring that the economy is still growing. Increase in many fracturing jobs, given weakness in the rest of the world is a good sign. When you talk about wage growth, average Hourly Earnings month on month, up by only 0. 1 . Where is that Wage Inflation we n . There has been a slight pickup in wage growth. I expect to see more. One of the reasons we are not seeing the increase that we had in the late 1990s is we have not increase the minimum wage, so employees are not facing the same kind of bargaining pressure. We focus so much on average Hourly Earnings. To what extent does it not capture everything we know about the wagerelated data in the economy . Good question. It misses fringe benefits, for example. Cost of Health Insurance, other benefits that workers get. There are some jobs that are under the table. Electionostly on the nonsupervisory numbers because the hourly wage does reflect their compensation by and large. When the job market gets tight enough, that is where we will have job growth first. Doesnt this make certain initiatives by the president dead in the water . Extending jobless benefits. That was a Key Initiative that the Obama Administration was trying to get through. That had been dead in the water and now it will never come up. I think election day had more that then this report. Perhaps you could see more discussion about raising the bedroom wage. Could there be some give and take some from republicans . There has been some discussion that could be one area where republicans gain ground. We did see in some of the statebystate measures that even in some red states, there was support for raising the minimum wage. Dont be surprised to see some movement on that in the next two years. With thisnefits, report and election day, will not happen anytime soon. Do you expect any change in tone from the Republican Leadership in response to this report . No, i dont. I expect them to use this report, highlight things that they do not like, make the case for why the president needs to consider the measures that the house passed, and they will want to bring them back to the senate. You will hear the same argument from republicans, this is still not good enough, we should be doing better. Maybe things will be better in the new year, but we will see. A lot to fight about when it comes to economic policy. What is in the realm of possibility, for what can be passed in the next two years . The jobs agenda can move forward. If the republicans are in the mood to optimize, there could be some movement in the Affordable Care act, such as the medical device tax. Talke other hand, if they about repealing obamacare which the speaker said today. They say we are not creating enough jobs, but here we have over 200,000. If noth mcconnell said repealing obamacare, piecemeal taking it apart. One of the things will be bringing back the 40hour work week. If you look at job growth, it is really fulltime mostly. Average hours are actually higher, at least back to where they were, from when the president took office. I dont think that is a likely change but there are certainly some fixes, like changing the way employers report that they are making the mandate. Arent there statistics that show changing the 40hour work week to 30 hours of that which is what obamacare has outlined i believe there is a statistic that says it cost one Million People to go from private Health Insurance provided by their employers onto governmentsubsidized medical care. This is a very complicated issue and i do not think that is very accurate. Even the parttime aspect of it has not kicked in. That was in related to the employer mandate. Most of the job growth in this recovery has been fulltime. Average work hours are backup. I do not see much sign that that law has been depressing work hours. On the outer side, maybe there is hope for Corporate Tax reform. That will be a different issue, but a lot of things can be improved. Equity Index Futures are holding onto their gains right now. Nasdaq futures up the best. Bond yields are lower. The dollar weakened as well following the latest jobs report. Around adex trading at fouryear high. Oil prices are getting a little bit of a lift as the dollar weakened as well. Certainly, the story continues to be Dollar Strength and commodity weakness. Futures indicating a higher opening. By the way, that one million number was from the cbo. Yes, but that was a projection before the law took effect. Ok. Thank you. Up, with just one hour to go before the opening bell, continuing coverage. Mohamed elerian will be joining us in the next hour with his take on the jobs data. Newly empowered republicans are taking on the president S Health Care law. The first up is. House Speaker John Boehner and Senate Republican leader Mitch Mcconnell said yesterday they wanted to restore the 40hour work week and remove a destructive. Two more hours and better pay created by the Affordable Care act. Joining us now is one republican congressman pushing for this. Luke metzler of indiana. Alan krueger is also with me. We had a debate about the projections of the 40 hour work week and what that means for the employment picture and for americans getting health care. Congressman, you have called obamacare the biggest assault on americans . I think another one of my colleagues said it that way. It is clear, it has been a disaster for our country. I heard your commentary earlier. The cbo number, one million folks impacted. Go out and talk to the folks working in restaurants or teachers aides. Across america, there are people who are being cut back to 29 hours as employers prepare for the mandate. We ought to fix that. It has always been a 40hour workweek in america, it is hurting the very people that the law was intended to help. Im optimistic we can fix it. I think we will have bipartisan support to fix it. We were talking about it during the break. Than one million number by the cbo is a projection. Employer mandate has not yet taken effect, but couldnt you see that employers are preparing for the mandate by cutting back on workers hours . We are not seeing that in the data. Most of the recovery has been fulltime. Work hours are growing. Billions of more people have Health Insurance coverage. It is hard to see how this is an assault on the American Public when millions are getting the health care that they need. Health care costs are growing at their slowest rate in 50 years. He cbo score the bill as reducing the deficit. It seems to me to be working as intended. Sure, the medical device tax was not the best way to raise additional revenue. I think there are some administrative it fixes that can take place, but the law seems to be helping americans as intended. Congressman . The realou get out in world and talk to people, that is not what they see. A lot of folks who have obamacare plans, they see high , treatments that i thought would be covered. People are losing their hours and their jobs, folks having to take a second job. What they see is a disconnect in washington where we tell them that what is happening in their world is not real. That is why you saw the Election Results from a couple of days ago. On we need to do now is work the areas of the law that we can fix. This, what about the medical device tax . Alan krueger says that there could be bipartisan compromise there. Absolutely. I think you will see that, you may see the individual mandate away, the rationing part of the plan go away. We will see what happened beyond that. If the senate is able to pass full repeal, we may see that in but we will have to demonstrate our replacement as well. The house has repealed dozens of times. I have voted for appeal. But we need to move forward in the areas that we can get done now. Thef youre talking about mandate, you are talking about repealing the law. It does not work without universal coverage. People would wait until they were sick and that would make the Insurance Industry unravel. That does not sound like there is much ground for compromise. Continue to cover the jobs market and the various aspects of obamacare. Alan krueger, thank you for joining us. Luke messer of indiana. We will be focusing on twitter. One year since the blogging site went public. But is the lackluster performance really worth celebrating . Aereo laying off almost all of its workers after the Supreme Court dealt its fatal blow. All of those details when we come back. Injust to recap where we are the jobs picture, the numbers came out moments ago. 214,000 jobs created. That is a little bit under what 235,000, the survey, but the revision added 31,000 over the last several months. The jobless rate falling to 5. 8 . Another sixyear low. The lowest level since july 2008. That is why you saw a take higher in equity futures. Here is a look at our other top tech stories. Twitter. Thday, shares began trading one year ago today. Losses are winding faster than sales gains. Said that twitter would start to make money next year but now they have changed that to 2017. Tech startup aereo firing most of its workers to stay afloat. Only about a dozen people are left. The Supreme Court blocked it from distributing blog broadcast tv signals online. Aereo is now trying to become a cable system. Much more on jobs ahead with Mohamed Elerian, and many more big names coming up in the 9 00 hour. The hour which means Bloomberg Television is on the markets. Equity markets are now back after taking up slightly. Overall the jobs report was good. Alan krueger called it goldilocks for the fed. 216,000 jobs. Were on the markets again in 30 minutes. We have continuing coverage and analysis of todays jobs report with an allstar lineup of guests, including Mohamed Elerian, counsel chairman of the council of economic advisers, said lazear, and jason furman. Were 56 million payment cards stolen, but millions of email addresses as well. You are watching in the loop. Welcome back to in the loop, we are 30 minutes away from the opening bell. Futures are showing we will be opening marginally higher with equities coming off another alltime high of the s p and dow are setting records yesterday in anticipation of the labor report. For the ninth month in a row, the economy added more than 200,000 jobs. Aboutbs report came out 30 minutes ago and employers added 214,000 employees and the Unemployment Rate fell one 10 of a percent. Broadbased was with factories and construction and companies and retailers were among those hiring. Night, president obama and congressional leaders have talked about ways they can cooperate and they will get a chance to do that today in person. The president and leaders of the house and senate me today at the white house and cooperation may only go so far as john boehner made it clear that he is taking aim at the president s signature achievement. Obamacare is hurting our economy. Its hurting middleclass families. Ability forting the employers to create more jobs. Im sure the house, we will move to repeal obamacare. He also says the president will have big problems with congress if he tries to change immigration without congressional approval. Weve got breaking news a big and is meant change at fort motors. Ford motors. Ofjim farley who is the head global sales and the chief marketing officer for ford is now going to go to europe and help revive the company over there. Ford has been losing billions of dollars in europe. He will try to turn that around. By the way, if he has come to ford a while back but with a pedigree because he made lexus the biggest luxury brand in america about a decade ago. He will now try his hand at a turnaround in europe. The european head will move back to detroit and he is going to become the chief marketing officer. This is ford moving manages around trying to give different managers different experience in different regions. They have a history of doing this. They did this with mark field to is now the ceo when alan mulally was running the company. Ford does this and they are trying to do it again successfully. They have done it successfully in the past. Main take away is that jim farley is now going to be moving to europe. Slight Musical Chairs but with all the outlook of major changes at ford as they compete against the global competitors. Iq so much, matt miller. We are under 30 minutes away from the start of trade and i want to can you down to the open with the top tech headlines the top 10 headlines. Olivia sterns and Brendan Greeley is joining us this morning. Number 10 is Rupert Murdoch enlisting the help of the italian comic book hero d iabolique to fend off netflix as the merger complete of his entertainment companies. They are basing it on this character who i dont know anything about. Is based on Rupert Murdoch. No hes not. Omx perfect sense. They are combining the Production Units which is a bold think an italian comic book hero will play well in germany. Tohas always wanted consolidate his pay tv ads so he can have purchasing power in sports. You buy a sky package in europe because you want sports but not because you want sitcoms. Superheros a german and its called the supersaver. I dont see this working at all. They are far behind the americans in the pay tv space. Its interesting that Rupert Murdoch is trying to make these major moves now as he anticipates what will eventually look like them or can market. I was trying to get netflix when i was in europe but i could not get it. Did you do it through a proxy server . Thats above my pay grade. Vesber nine is les moon embracing the digital revolution. He is launching a 24hour online news channel yesterday. Cbsn and it reached a deal with sony. We are obviously part of the digital age and there is a digital revolution going on. Content toprily a and and are producing great content and entertainment and news and sports and want to make it accessible to everybody. He does not look a day over 86 there. I am all for any content company wanting to go digital but the real revolution has been in timeshifting. Im not completely convinced that a realtime network is going to be as valuable as a property. Im aware that i am saying that on a realtime network. You said cbs is 87 years old but the average viewer for cbs is 55. 4 years old. They need desperately to do something to reach out to younger people. We have heard from bob eiger saying he does not see bringing espn or the Disney Channel a la cart onto digital. Is amazonight unveiling the echo Voice Control interactive speaker. This lets people stream music and order items from the online retailer. The companys written to extend its reach into Consumers Digital lives. One analyst comment said i dont get it, what is the point of this . I read they analyst, but i thought this is something there is no reason for amazon to do something i already have on my pocket. I think little differences can make a huge difference in behavior. What do you like about this . You can say a word on the speaker wakes up and listens to your order. When i first read the story, i pictured a very is a Brendan Greeley with four children at home changing a diaper and having no hands to pick up his phone and shouting out to order something. Maybe jeff bezos. I am impressed that jeff is is has come up with another way to lose money in hardware. He is doing this out of ab out of amazons lab 126. On the hotg maker is seat. The company knew that its airbags had the potential to rupture and spew metal debris back into the vehicle according to two workers at the testing lab. How scary is that . They may have covered this up. There iserrifying but a story that broke this and im reminded of the power of investigative media. All sorts of magazines and newspapers are pulling back on and its important to figure out a way to do that. This is a big part of democracy. The allegations are shocking that they deleted deliberately test results and that engineers have discovered flaws that were so worrisome they started to build fixes because they assume there would be a recall and all of that was covered up. The story points to pressure from honda and toyota to deliver on time. The more you learn about this, the more scary as a consumer and a driver you are. There could be so many more of these. I think we will see congressional hearings on this immediately. Facebook ceo is Mark Zuckerberg took the stage yesterday for his first ever public with an answer session and thoughts about privacy and users and addressed why he wears the same shirt all the time. I feel like i am not doing my job if i spend any of my energy on things that are silly or frivolous about my life. I dont think president obama chooses what he wears every day. Man can get away with that. Same thing over and over again and they dont get criticized. Barrau imagine ifmary came in with the same suit everyday . I have worn this code twice this week. Did anybody notice . No, evidently not. Nobody has told me to wear a tie yet. If we can remove the amount of time it take to get us to get dressed, we would be more efficient. Barack obama has four suits and three ties and does not make any decisions because he says making a decision about a suit robs you of decisionmaking power. To the openingn bell continues with a deep dive into the jobs report with Mohamed Elerian, we will be back. Way continue to countdown to the opening bell so its time for a deep dive. Number five is jobs day america. Three days after the midterm election, the government says employers added 214,000 jobs in october and the hiring lower the Unemployment Rate to 5. 8 which is the lowest since july, 2008. Lets go to the former penn coceo, Mohamed Elerian. He is traveling in paris where he has been meeting with top central bankers including the fed chair janet yellen at a conference in france. We spoke with alan krueger this morning who says this labor report seems like it is a goldilocks scenario for the fed. Would you say that . And i would say it is a solid report given the context. The context you have been talking about for weeks which is the weakening global economy. Its impressive we have been able to create 214,000 jobs plus lets not forget 31 house and in positive revisions lets not forget dirty one thousand and initive revisions 31,000 positive revisions. Is there a bigger risk the fed will be behind the curve when it comes to raising Interest Rates . The key thing is will we see more Earnings Growth . That was disappointing this month. Its was simply not enough Earnings Growth. I dont think this will threaten the fed policy but what it does this is important it highlights the divergence between the fed on the one hand and the bank of japan and the ecb. That divergence will continue and has continued to contribute to volatility in the Foreign Exchange market. Between japan and the u. S. , is europe and people start to feel that as the boj goes further into their stimulus and we start to exit, where is the ecb . Is mario draghi in danger of taking too long on his journey in getting the eurozone out . I dont think he has a choice but to do it gradually. Hes got to have consensus and hes got a much more complicated governing council then the fed or the bank of japan. I would listen carefully to his press report and i think its unambiguous. The ecb will do more and its interesting that they gave us a Balance Sheet target which anchors had to think about future policy here. Think should the ecb mode . Move. I think they will wait for an update of the projections which will come in december and it would not surprise me if they move then. U. S. , weere in the just got through our elections are now looking at various policy initiatives and what can to helpugh congress create jobs and get this economy going. What is in the top of your agenda . I think the low hanging fruit is on the trade side. Immigration and possibly Corporate Tax reform. Those are the three low hanging fruits and there is already a certain amount of bipartisan agreement. They would be positive for the economy but they would not be the great move required for liftoff. You need more action on Infrastructure Investment and labor market reforms and i doubt we will get that in the next two years. Emigration might below hanging fruit but i think it will take a lot of hacking in order to get anywhere on immigration judging by what the two sides have said so far. Thank you so much for joining us. Coming up, pepsico loses some pop after a key executive calls it quits on expectedly. Welcome back. Lets get back to bringing you the most important stories you need before the market opens. Brendan greeley is joining me along with olivia sterns. Home depot says hackers stole 53 million email addresses in addition to customers cardin data. More information is now being revealed about this hack attack. I guess they will slowly bleed the information out. Makers and banks will move toward a different system which is more secure and will fix the problem. I dont understand why retailers are asking you for your zip code and email address. I dont think its reasonable they just want to get your data3 they can blast you with ads. Will we learn to stop giving them to retailers . Hopefully things will get more secure. There are advantages to retailers having information if you want more personalized offers. Whohis is coming from a guy just said a few months ago that you are fine waking up in the morning and telling alexa to buy something for you. Im excited about waking up in the morning and saying something and having a computer response. . What if they hack into your system my house is completely plugged into the amazon empire. Is forwardhree shifting gear announcing management changes. You heard jim farley is now being best appointed to the head of europe and the middle east and africa. The outgoing you are up in chief is she the marketing domestically. He could be considered for the top job. He might still be. Of cyclinghistory around their employees. I wonder if this is a referendum on Matthew Mcconaughey in a lincoln advertisement. Its an obvious knockoff of true detective so it might rub some people the wrong way. It certainly rubs olivia the runway. Who wants that job in europe . Europe ato fix continent to do this and mariota druggie cannot do this so why should farley be able to pull this off . It gives him experience and puts them in a better position. Right on time, number two, pepsico president who has been to replacea favorite the pepsico ceo. He has decided to retire. There is speculation about in dira nooyis successor. Already Brian Cornell who is thought to be another potential successor who has not said anything about wanting to retire, he went to go run target. Who is next . It were my job to sell sugared beverages, i would retire as well. Thats a bad gig but these are things people dont want anymore. The stock has not done too bad. It is not done that bad under ingenuity indra nooyi. They have been able to fend off tough times. One investor has tried to split the company and says there is lots of costs to be cut but so far, they have not. I would rather be in snacks than sugared beverages. What about burgers . No . We are all clean living folks here. As we near the opening bell, we are on the markets. Equity futures are pretty much unchanged, mixed at this point, a mixed reaction to what was largely a mixed labor report. It does not change the focus for the fed. Our top story is next. Welcome back, lets get back to bring you the most important stories you need to know before the bell. Olivia sterns and Brendan Greeley are joining me. Number one is the u. S. Economy. Added 214,000 dollars last month son in the upland rate to 5. 8 which is the lowest level since 2008. We are pretty much at prerecession levels in jobs and yet if you talk to the average american, they can hardly feel that right now. One of the things we learned in the election that jobs are not as important as wages. The median wages have been going down and were already going down before the recession and plummeted after that. In 2000, it was at 55,000 and now its a 51,000. People do not think about investments. They think cash and cash a monthly basis. In this labor report, we did not see anything significant rise in which growth. It was lower than what economists protected. Its just not enough. It was a very modest improvement on the longterm participation rate. Below 60 , its an historical anomaly. Technology means more people are working parttime but below 60 . I think this is hood. The fed has focused on other numbers other than the topline unemployment number and we were learning she is right. This is why we saw this republican sweep on tuesday. As stocks start to trade him this friday jobs day, i want to ring in ed lazier, a Stanford University professor and a former white house chairman of economic advisers. Still thinks that despite the fact we seem to be here at sixyear low levels, you think we need to add another 5 million jobs in order to say that we are where we were before the recession . All, the population has grown significantly since before the recession. The easiest way to see it is the prerecession number was 63. 5 of the working age population employed. One of the good things this month is that the employment to population ratio which is the number of people employed relative to the working age population went up from 5959. 2 . That is still way below are a recession levels. We are really not at prerecession levels at all. The Unemployment Rate is at the peak in terms of Economic Activity it is 4. 4 so even if you use the Unemployment Rate which is not a very good indicator of the strength of the labor market, we are still a far cry from where we should be. In order to keep up with population growth, what we need is 120,000 jobs per month. Right now, we are doing 220,000 jobs per month so we are gaining 100,000 a month and it will take us for years to get back to where we were before. Be confident that we will get back up to that level . Droppingr has been since 2000. There are trends that have nothing to do with the actual economy now. Who says we will get back . We wont get back to 53. 5 . We should be 61. 5 . Im saying that if you take great demographics into account and the other trends in the economy, we should expect to be at about 61. 5 rather than 59. 2 . We will never get back to 63. 5 , at least i dont think so, primarily because of the changes in demographics. That is not the target. I think the target of 61. 5 and we can get there. Pace, itsup this slower than everyone would like, but it will take a while but we will get there eventually. How, by the growth of the economy . Exactly, if we keep growing 220,000 jobs per month, it will take us four more years but we will get there and will be back to the level we should be. The point you made earlier about structural changes, that is certainly true. There are structural changes in the economy and in the labor market. Though structural changes are longterm patterns and they have been going on forever. Changes in manufacturing if you go back to the 1950s, changes in unionization and female Labor Force Participation all of those things go back a long way. Very few of those are actually related to the recession itself and the recovery. We will have a changing economy whether we get the same jobs back that we have before. I think that is questionable but we will certainly get jobs back and there is no reason why we cannot get back to a normal economy. Are these structural changes the reason we are not seeing wage growth . What will it take before we start seeing americans getting raises . I dont think the structural changes are the reasons for the lack of which growth. What generally happens when you have a recession is the first thing that happens is jobs come back and the second thing that happens as wages start to grow. Even in the late 1990s when you have a boom economy, for a long time, you did not have wage growth. You had job growth but not which growth and we are in that pattern now. Eventually, wages will grow but it requires a tight labor market. This says that the labor market is still not tight. Dont you say also that you believe that parttime workers have increased in anticipation of the employer mandate that will come into effect with obamacare . Yes, it is certainly true. We have 7 million workers employed part time right now which is over four percent of the labor force. That is abnormally high. Whether that is the result of obamacare and the attempt to evade the restrictions employers are associated with, i think that remains to be seen. The leading explanation right now for why we have so much parttime work. You should not see that. But the mandate has not happened yet. It has not taken effect so how can you say that that rise is due to that . Said, peoplet i anticipate this and set up their labor force and set up their employment and order to accommodate what they expect to see in the near future. The near future is now. Its a leading candidate but i dont think there is a great deal of evidence one way or the other on that question. If i had to say what is going on, that would probably be it. I want to get one question this if this president and congress get one thing done, what will it be . The biggest difference is the one thing that is most likely his trade. Harry reid was blocking the president s trade agenda and the republicans are much more sympathetic to the president s view on this. That is probably nothing that can get done. Trade is important so if you get that done, that would be a big improvement. Great to see you and thank you so much. Everyone is talking trade. Thank you so much and thank you to brandon and olivia on this jobs day. Coming up, we will get the white house reaction to the jobs report from the current chairman of the president s council of economic advisers, jason furman joining me in a moment plus, the ceo of Spirit Airlines plays defense of fliers expressing what they really hate. Do we hate air travel . Yes. Its miserable. Moments into a few the session, stay in the loop. Lets dig deeper into the jobs report. Furman is president chairman of the council of economic advisers. Great to see you. Overall, this seems to be showing the economy is on track and that we continue to create over 200,000 jobs on average. Go back to the question the economy is doing so well but why are americans not feeling it . Why are we getting wage growth . As you said, i agree that we are continuing a streak of solid job growth. The Unemployment Rate fell at the fastest rate in 30 years. Job creation this year is on pace for the strongest year since the 1990s. You are seeing real wage growth. Wages are rising faster than inflation. They have picked up over the last couple of years but they are nowhere near what they should be. Understandably, people would like to see those gains do more to translate into their paychecks. If you take a measure of what happened on tuesday, you would say that if the economy is doing so well, why did the dig them why did the democrats get wiped out . I am not a political pundit so i cannot answer that question but i can tell you that if you look at things like Consumer Confidence and sentiment, they are the highest they have been since 2007. People are feeling the recovery but they are also feeling the fact that we have not dug out of it completely. The Unemployment Rate is not down to where it should be. Income growth is not back to where it should be either. Thats why the president is so focused on all the types of things he is focused on like investing in infrastructure and raising the minimum wage. We saw some of the ballot measures across the country say that which is raise the minimum wage. How can the president and the next two years in office convince the American People that the policies are working . What can he do to convince them that he is creating jobs and is getting the economy on track . Are there some benchmarks . With the job rate have to fall lower . The most important thing for us to do is to actually continue to strengthen the economy and then the economy will be what convinces people. We want to take the steps i just talked about and Work Together , onxpanding our exports reforming our tax code to get rid of loopholes but also make it more attractive to invest here in america, expand preschool these type of steps are things that will lead to which is what the president is pursuing, not a Communications Agenda around the economy. We have talked to several economists and some of your predecessors, there seems to be a unanimous feeling that if there was going to be any kind of bipartisan support for any type of job creation policy, it would be trade. Is that on the top of the agenda . There is a lot of things on the agenda. Anything that could increase our growth, anything that can Better Connect us. Certainly, trade is one of those. We are making progress in our discussions with our partners in the pacific and europe and we want to move forward to make sure the United States is taking advantage of globalization and doing it on terms that are good for our workers and the environment. On a different note, it has come to my attention that the board of the fed governors which ,s appointed by the president seven seats are still not filled. There are two seats that still remain open. The president has indicated he planned to fill those seats. He has not yet. Is there an update on filling those two vacant seats . It is harder now with a congress that is more republican. I dont have an update for you but we are certainly looking to fill those seats. We will fill them with the type thatcellent candidates historically you have seen on the fed. The fed should not be a partisan group. It should be a group that centers their expertise. Theuld hope to matter what composition of congress, they would recognize and respect that. Thank you so much for joining us. Air travel is getting a really bad rep. When airlines asked for feedback, they were asking for something and were overwhelmed by the angrys response. Their state ofse page report and Stephanie Ruhle has been reading through this. Are they a glutton for punishment . They did a state of page report and found that customers hate their guts and Spirit Airlines thanks they dont care. Because people are still flying with them. They did this state of hate report and customers responded and said i cannot stand that i have to pay to print my wording pass or have to pay three dollars for a bottle of water or for my carryon bag or 41 for my checked bag. Guess what, people are still flying with them. We will sit down with the ceo. Cheap ticketsing but if you actually walk through it, you can fly from new york to chicago from 50 100 that when you tack on printing your boarding pass, spending 199 receipt close to the front, needing a blanket all of these things add up to your spending. Like 500 orore 600. People who did the survey were offered record player miles. Miles,0 frequent flyer Spirit Airlines is embracing this. We will sit down with their ceo and i have a feeling he will say that haters want to hate and people are still flying. Are they doing anything else besides saying that . There will be places where they decide on a Customer Service approach. They may offer more but for the most part, they are weighing how their customers feel. I complain every time i am on a plane. I feel like i need to yet some wrestling lessons. Every time i tried to board a plane, its like a zoo. People are knocking each other over to get on board. They want to put their bags in the ben, its ridiculous. Now because people dont want to pay for it, they have. The luggage they are trying to jam in the overhead. The app or death the answer is simple for you teterboro airport. You should be flying private. I dont travel like you. We will be back in two minutes. Berlin march the 25th anniversary of the fall of the wall. Its no longer bargain city when it comes to real estate there. Hans nichols looks at the luxury apartments where the wall once stood. 25 years after the fall of the berlin wall, moving on. The opulence has exploded in an unlikely spot. This used to be no mans land between east and west berlin. For many property developers, it has become Fertile Ground to build some highend apartments. Rich in history, art, and culture, berlin is increasingly hosting the actual rich. We are selling a lot of apartment to russian buyers but also northern americans, scandinavians and german billionaires coming from historical industries who want to have a footprint in a global city. Longawaitede postreunification growth in berlin, this is finally happening. Five start living but at three or four star prices. This row of townhouses follows the walls oldline. For two point 5 million, you can get an open feeling living room and privacy on demand. And eating kitchen, four stories, a guestroom on its own floor, private bath, and a nice little study. A master bedroom, a massive bathroom and eight tub with a view, a personal gym in the penthouse. And a sauna to relax. A 7. 5 million apartment is the record for berlin but the prices are significantly cheaper than london or paris. With the housing shift, longterm residents are being priced out. 10we recognize that we have or 20 if it did today at the moment and 10 years before, we had only one or two evictions per day. 50,000 people moved to berlin last year alone and rents are up 43 in the past five years. Wages have lagged raising just four percent in the past three years. Say bigiples of deluxe dollar buildings spur growth and they still see open road ahead. Were looking at a luxury remarket market that has increased between 5075 of i believe the trend will continue to probably five percent for the next three years. Ofwhich could mean a ribbon luxury where the wall once ran. That does it for today on in the loop. Weve got jobs coverage all day long. 214,000 jobs were created. Next week, we are looking at a different topic. We will space to one of tvs biggest innovators can a man who helped launch mtv. We will speak with the cfo of pandora music thats next week on in the loop. Thet is 56 minutes past hour which means Bloomberg Television is on the markets. 30 minutes into the trading day so lets get you caught up on stocks. Tradingsee stocks are down and the s p is off by about of one percent after the u. S. Added 240,000 jobs last month and the unemployment ralph l to 5. 8 goosing the shares of the population working to the highest in five years. The dollar is weakening while treasuries rose on the news. For more reaction, i am bringing in jeremy hill. Lets talk about this report because it was below estimates. It is still a strong number. I think it really is. Anytime the government releases this kind of data, there are many nuances. Ald point to one thing year ago, the Unemployment Rate in this country was 7. 2 . Consumers 5. 8 and the it is a good thing. The trend is up. I look at these figures on the underemployment rate which includes parttime workers who would prefer to have a fulltime job, that the client to 11. 5 . There is always new ounces around this there is there is always nuances around this. Almost 32 of people are longterm unemployed which is not a good thing. That is more than six months of being out of a job yet the trend continues to be up for many different types of economic data. If you look at jobless claims or the gdp, it is confirming a bias towards better u. S. Economic growth. The average hourly wage for. 1 kers just rose a measly and the fed does not seem to be doing much to help the wage part of the equation. Maybe their hands are tied. The other dynamic to that is im not so sure the fed is so concerned about that right now. I think their best avenue is probably an environment where we have medium to higherlevel trending growth but a very low inflation environment. Wage growth being a part of that we would rather have more people back at work and having wages exploding and killing that momentum. I dont know, wouldnt you want people working getting paid the wages they deserve . We like both of those things at the same time but im not sure thats a realistic scenario. You are picking the best in a worstcase scenario. What does this mean for next year . Does this mean the fed is on track to boost Interest Rates in the middle of next year . Market expectations are that we have to pay attention. We are focused on the fed which is toles a variety of Different Things and it would point to perhaps a slightly earlier expectation for Interest Rates to rise in the market has. And to september, the San Francisco fed released a paper saying hold on. Make sure youre paying attention because we are saying something slightly different than the market is expecting. That is not yet been reconciled and i think that will be one of the key things to watch Going Forward over the next couple of things months. You have changed your views . I have come a month ago i thought when the gun to the belly of the october selloff especially in equities, i did not think managers would come back and size. I think they are now seeing the potential for really strong last quarter. Interesting stuff and thank you for that. We are on the markets again and 30 and minutes but Market Makers is next. Live from bloomberg ad court is in new york, this is Market Makers. The labor market is on a hot streak with employers adding more than 200,000 jobs for the ninth month in a row. The u. S. Economy, can it withstand the global slowdown . Happy birthday twitter. When we start making money. A year after the ipo, there are questions about the companys performance. Two foreign retailers fight for your dollars and their first battleground is new york city. Welcome to market