Looking for. Mp analyststhe bu are looking for. Whats next for apple . What next headed overhaul to induced demand. This was the 10th anniversary phone, and once demand is exhausted for this one, there will be much left. It may be a while before we see 1 trillion, but it is headed in that direction. Brightervices was a spot, growth up 24 , accelerated from 22 in june, 2017. The big other surprise yesterday was mainly china, it grew 12 . China has lagged. It wasnt just the focus on expectations for the iphone x. Services in china, they are performing. Apple has a lot to smile about last night. Shery it did. It lasted away expectations a lot of fun a lot of fronts. Mac sales are up, i revenue growing 5 and products like the watch and the air pods cover the headphones that can be annoying when you break them or lose them, that revenue was up 36 . Also research and development spending, thats a 17 in three months to 3 billion. Apple is not resting on its laurels, in terms of r d. It wants to keep up the lines. Hit, if the iphone x is a that feeds into the other offerings like apple music and i club storage. We spoke to Michael Flynn about the price. Olson about the price. He already bought one today. Sense ont have a good the price until later this year at the earliest. Vonnie of laws continues at the apple store in palo alto and tim , bound tople uniform cell phones today. The sick a look at with the rest of the universe of equities is doing about 90 minutes into the trading session and julie hyman is here. Julie apple is a big part of the universe when you look at whats going on with major averages. One of them stands out is the one that defends the most heavily on apple, that is the nasdaq. About 14 index points of the 16 point gain are from apple alone. Thats why the nasdaq is the outperform her. We are not seeing the change overall, given it was a jobs report day. The jobs report having some noise from the hurricanes, not seeing that strong of a report when you look at the average hourly earnings. They remained unchanged. Looking earnings. With the scorecard on the s p 500 during earnings season, a gain of 1 since the First Company started rolling in on the bottom. Halfway through the reporting season with a oneday gain. Lets look at todays winners. On the winning side, you have apple with that gain. The stock to touch 900 billion for market cap in the afterhours sessions. Not enough to make is that threshold today. Its also interesting when we come a apple, apple has long way in the past couple of years. There was a conversation about how the company needed to become less reliant on the iphone. Remember that . And now the iphone is doing so well similar to that conversation has faded. Starbuck shares are higher, the reversed after the ceo said hes looking for the company to exceed its growth estimates, and Molina Healthcare in the midst of a turnaround as well, though shares are higher despite the Company Reported a loss in its third quarter. They are optimistic that the turnaround is indeed gaining strength. Julie hyman, thank you. Apple up about 2. 5 , briefly 900900 million billion. Emily chang is at the apple store. How long does this euphoria last . Emily certainly for the rest of the day. Hundreds of people in line in every direction. Tim cook is smiling and taking photos. I heard the loudest squeal ever when he showed up. A lot of people are excited. One of the important things to mention is now you have iphones ranging in price from 350 to 1000. Its a new strategy for apple. They revealed three new phones in just a matter of weeks. When they were asked on their Earnings Call yesterday how they expected that play out, they said we will see. Its new for them and new for these customers. A lot of people are here for the iphone x, but they say i do want to pay the extra 300, i can stick with the iphone 8 or something cheaper. They are looking at the wash and the imac and the ipad. The ipad numbers yesterday were quite up. Ipadts of the death of the are greatly exaggerated. Forecast, 84 billion to 87 billion is externally incredibly strong. He doesnt seem to be as much of a concern today. Tim cook told me he was pleased. In terms of when supply and , they were meet looking at wait times of three weeks to four weeks for the iphone x down from five to six earlier. We will see how that plays out around the world. Mark thats a 1000 premium phone in significant quantities. Emily right. 1000 premium phone in significant quantities. It looks like they are going to be able to meet demand. The demand they are expecting, especially if you look at the holiday forecast. And it is interesting is that the average selling price of the iphone did not increase much year to year, it was basically flat and that just shows that people are opting for lowrent phones. But for apple, sale is a sale. This new Pricing Strategy in this range of phones and family of iphones is having very new for apple. It is something we will continue to watch how this plays out in terms of demand and supplier of the world. Up inthings are looking china, on the services side. Emily indeed. China returned to growth, tim cook told me yesterday they are very pleased with what they are saying in china. Not just with the iphone, but also, the mac. Services in china hit an alltime high. The ipad did well in china. When i asked her people going to pay 1000 for a phone in china, he said im optimistic and we will see. You have a lot of lowercost competitors in china, phones that are half the price that some would say are just as good. That kind of strategy were going to be watching services at a record rate. 34 . How long is that kind of growth sustainable . That is really where apple is making up some of the revenue, for a long time, the apple has made up two thirds of apples revenue. Now we are seeing less of a dependence on the iphone as it starts to be a bigger part of the pie. This is still an iphone company, and that is why today is so important, thats why its a great sign for apple, lines going around the corner in both directions. Well see how that demand evolves. Vonnie emily chang in palo alto, thank you. The u. S. Labor market bounced back in october, Hurricane Impact working its way through highfrequency data. Employers added 260 1000 jobs with people resuming work after Hurricane Harvey and irma. Provisions also turning september jobs into gains rather than losses. Get the michael mckee, bloombergs International Economics and policy correspondent. He joins us from the Washington Dc Bureau washington, d. C. Bureau. We didnt make the 300,000 job gain that analysts and economists were exciting. Not a massive miss in the threemonth revisions were higher. Is there anything for the current fed or new fed to be concerned about . Michael if they are concerned about anything, its the low level of wage growth. If you average over two months, you get 2. 5 gain and you are looking for something stronger than that. We are come at this point, seeing unemployment levels we havent seen since the year 2000. Theres no wage growth. The absolute level of job growth is not a big concern, vonnie. We know over the length of an expansion, the number of jobs created each month starts to go down as the expansion ages and we are averaging over the last three months, 162,000. Last year, 191,000. Its about where you think you would be. Vonnie i will want to say we are at a freakishly low unemployment rate, and we are seeing participation drop. This is the job report to be almost discarded in some ways . Michael absolutely. The fed will look at this one from distortions of the hurricanes. Ofre was also a weird aspect the other rate, 764,000 people leaving the labor force, the most since 2013. It is unclear with going on. They will wait for november willrs, which it appears be a reasonably claim meeting. In the next fed meeting is in the middle of december, they can work off of that. Mark given we are discarding this jobs report, the nominee for the next fed chair, but the potential nominee for fed vice chair, how soon might that position be filled, and you might potentially fill it . Michael i can tell you gary cohn just told us on Bloomberg Television that they hope to have a named by the end of the year. The president is looking a list of potential nominees for vice chair. Some people in the republican party, who would like john taylor, hoping he gets elected. Im not sure donald trump wants to do that to jay powell. His view of the economy and how you manage it is different from powell. Powell is not a fan of sticking to rules, he just looks of the number of rules of the fed has presented with each month as guidance. Hes also not in any hurry to raise Interest Rates. He wants a gradual, slow path. If republicans want taylor because hes in favor of Faster Movement and higher rates, that may make for an awkward working relationship. Vonnie michael mckee, bloombergs International Comics economics and policy correspondent, thank you for joining us. Yield willreal discuss the nomination of the fed chair and the bank of england rates increase. At 11 30ld, starting new york time, in about 15 minutes. Mark coming up, an industrywide trading slump. How its fair to against its european rival. This is bloomberg. Vonnie live from new york and london, im vonnie quinn. Mark im mark barton. This is bloomberg markets, on Bloomberg Television. Socgen getting hit by the thirdquarter trading slump. Trading fixed income currencies and commodities followed by 28 , equity sliding 19 . The deputy chief executive spoke earlier on bloomberg about the trading slump. Our business has been more impacted on the equity side, because on fixed income, we are pretty much in line with the global environment. And equities, we have been more impacted due to our business mix. Were much more oriented on products which are more sensitive to the very low volatility environment. We have low revenue in her equity, 19 . Ur irony, becauseof most derivative products helped pioneer its equities business is traditionally a strong business. Vonnie what happened in the last few quarters is the french banks have been doing pretty strongly in trading or have different better than european peers and people have gotten used to the fact that they would do that is an average. Selloff youe see the selloff. Vonnie its been quite a week for french powerhouse banks. They are losing some of their power. Elisa yes, thats right. They are also facing conditions in their home markets and Consumer Bank markets that are difficult. , revenueemain thin remaining flat, if not down. Thats a market that is just about to get more competitive in europe next year. Towas the banks being asked open up their data. The spotlight being on those areas that are not helping to grow the top line. Vonnie whats the plan in france to make them more competitive, now that london is neither looking like its going to be the center of the universe for the major banks in europe . Elisa they are both have large trading presences here and on the continent. Which means they are not feeling is pressured in terms of the number of roles they would have to shift to the continent. In that regard, they are currently in a position of strength. They have more time to make those decisions because they have pretty extensive trading licenses on the continent already. Banks,hey come into the one might play the game, which ceo is going to crack under the pressure. Deutsche bank and barclays. On hes atory new chief executive. He is restructuring, is progressing. Elisa its been slow. He did come into shaken up, but for more than a year into that plan, he was facing a lot of questions and every surprise seems to be about the price. At moment with seems to be happening is the shift towards wealth is paying off any were saying that with strong numbers from international acknowledgment from asiapacific. Hes quite comfortable he can have a conversation with an activist that wants to break the bank up because he sees no reason to do that. Winters is struggling, trying to restore growth and pay dividends. Elisa thats right. He still is grappling with legacy issues. Gove seen regulatory costs up, which is outpacing the growth in revenue. Analysts are not really expecting much in the way of dividends for this year, which is what investors were coming to hope for. Mark which banks to look out for . Whos left . Elisa the italians, so quite a few. Martinuzzi elisa martinuzzi, thanks. A quick check on the european stock market. We are little changed today, we are up by 1 5 of 1 . The ftse is a little lower, sterling up. You know what happened to sterling yesterday. The dax is marginally higher, more declines, this is bloomberg. Mark this is bloomberg markets, im mark barton, in london. Vonnie from new york, im vonnie quinn. When Justin Trudeau was running to be Prime Minister can do, his opponents said he was not ready. , the economy is roaring and they are not concerned about deficit spending. Lets bring in matt winkler, editorinchief emeritus. The market is cheering the current Prime Minister of canada. Canada markets in inering Justin Trudeau and the u. S. , cheering donald trump, and they are so different . Matt Justin Trudeau inherited donald trump has inherited the obama yellen economy continu. The trudeau economy is a big surprise, in that its positive all the way through. Everywhere you look, canada is outperforming what was expected to do when he was elected. ,e was perceived to be young untested, and in fact was happened is theres enormous confidence in corporate canada, outperforming in the corporate u. S. Right now in the equity and debt markets. And you see that also in the economy, which is right in the top of gdp growth. Bek is always better to lucky than smart, your words, matt. How lucky has he been . Hes been lucky, i dont think there will ever be a politician who will take being smart over lucky. However, he proved to be smart in the sense that when he ran, he completely changed the equation when he said this economy could afford a bigger deficit, if thats what it takes. And by signaling to canadians how committed he was investment, that was a departure. That wasnt about luck, that was about being thoughtful, and he turned out to be right. Vonnie is a wonderful function in the bloomberg terminal, go. Try guides, coun you can see graphs and financial snapshot the wrist monitors and so forth. Canada is doing well everywhere. Is this any kind of conclusion about with system works, or is it more about as you said, Corporate Health in a particular country . Matt you will hear executives on this program say whether they dislike most is uncertainty. And one thing that trudeau has done from the outset is given people a sense of what he values and what is committed to. Thats probably increased confidence throughout the country. He said i want to invest in theda, i want to invest in 21st century, i want to invest in infrastructure technology, immigrants are good for canada, globalization is good. He negotiated a trade agreement with the eu early on his first year. These are all things that business can get behind and be excited about. Vonnie does he have a free hand in the sense of he wants to do more spending. Actually not been profligate. Hes been pretty careful about not really going overboard. He just said when you look at the equation right now, we can afford to be a little more expansive. Matt winkler, bloomberg editorinchief emeritus. I encourage everyone to read this particular Bloomberg View column about canada, entitled market cap yes vote for bloombergs trudeau. And Matthew Orbach hornbach. The iphone x in sale on sale today. This is bloomberg. Jonathan im jonathan ferro, this is bloomberg real yield. Coming up, unemployment has a 17 year low, the wage growth stalls, disappointing inflation bowls. Named the next fed chairman. And the republican tax bill could add 1. 3 trillion to the tax deficit. Unemployment writing lower wage growth stalling out. Being a bit softer, though think theres a lot of noise in the summer. The economy is in very good safe. Economy withrobust growth of 3 plus at least for the last two quarters, despite is rather disappointing unemployment numbers. I think we are past the crisis. Getting a lot of distortions but the underlying economy is strong. Whats worrisome is the decline in unemployment happened for the wrong reasons. We saw pretty big drop in purchase rates. This could be noise related to the hurricane. The job number is noisy. Down to 4. 1 unemployment. The u sixook at number, down 1. 5 for the year, we are bringing a lot of people back into the workforce. Wages are accelerating. Well think wages are going to move beyond levels that economy tremendously high because of automation technology. But it is real wage acceleration. It just allows them we think theyre going to go in december, two to three times next year, probably three times. Jonathan joining me is matt moore back Matthew Hornbach and priya misra and Nick Gartside. Is there any signal in this jobs report at all . Ms. Misra this whole pickup and ,age inflation we saw last time with a handshake. Unilever market is tightening, even though the labor market is tightening, we are not seeing wage inflation. Theres pressure on the fed to keep hiking. That is the signal its giving the market that one or two more hikes. And then the fed have to see whether they have to keep going. Jonathan several elements have to fold into the payroll story. , how is he likely look at these numbers . \ are there one or two hikes away from saying willing to step back here . Mr. Gartside when you look at jay powell, he is a realist. Hes from the same mold as janet yellen. These labels of doves and hawks what they are his realists. They look at the data. When you look at the data, in terms of economic growth, it is pretty robust. When you look at wages come a little bit disappointing. There is real wage growth, so that was the fed absolutely in play for december. Probably three hikes next year. Tend tonbach i a agree with him. To the 2. 4 or 2. 3 wage growth we are saying, thats not out of the realm of what you would expect. Productivity growth trending around 1 and 1. 5 inflation. Thats going to get the wage growth somewhere right where we are. Andthan growth rich inflation poor seems to h