Where politicians are one week away from a budget deadline. Even lawmakers are skeptical any deal could be reached. Are you as skeptical . Its good to alix steel for insight lets get to alix steel for insight on how the markets will trade. Over the last two years, on average, the s p was pretty much flat, averaging a gain of almost. 2 . When the jobs number was stronger than estimated, it was up. 7 . When it was weaker, it was down. 4 . That is what you can expect with the s p. Usually, action is priced in at the open. Performings wind up well on a positive surprise day . This is a day where you want to bet on the financials, which typically has a rally of 1. 2 . Next up is consumer discretionary, also pretty strong, up one percent. 1 . , industrials up you have a riskon trade when the number is better. On a disappointing day, what you need to run away from . 6 . Text, typically down following, down with four following down. 4 . Following, if the number comes in ahead of expectations, it could mean a fed taper earlier rather than later. Thank you, alix steel. Michael mckee, who is skeptical about these numbers, says this time the numbers do matter. Crisis is the most important jobs report since said this is the most important jobs report since september. People think the fed could come into play. There is a meeting they could be influenced. The official forecast is for 185,000 new jobs created by the economy, 180,000 of them private, but the whisper number on the street is stronger over 200,000. The number, we had a big surprise remember, we had a big surprise last month and everyone expected a disaster. The adp payrolls number came in over 200,000, and that surprised people. Factor in revisions, and we could see 50,000 or 60,000 additional jobs added. Bettingld have people on the fed starting to buy what buys in bonds. Cars. Rates on homes and the fed surprises by not tapering after the weak job report in september. Talked back oner the table. Doesnt the fed have a target for the Unemployment Rate . Yes, and no. Ring does notape tightening. Then implement number does not mean as much because it was distorted by the Government Shutdown. It will come down, but it will not be a factor for the fed air it said officials have told me that. Said. Fed officials have told me it will not be dependent. Fourthquarter gdp is tracking much lower, around 1 . They want evidence we will not see a fallback in job creation. We do not have a lot of data before that meeting to prove it. But i want consistency they want consistency. Q i, Michael Mckee, our onomics editor thank you, Michael Mckee, our economics editor. And shaking, Eddie Lampert, its been enough lands chain. M the casual sears bought the company in 2002. Eddie lampert has been selling off assets to raise cash. One analyst estimated sears million 2. 5 billion. For more on the spinoff, i want to bring in julie hyman. Lands end has been well, so how much will this help . You mentioned the 2. 5 billion. This could boost liquidity at sears. 670 1ugust 3, they had million in cash, so this would boost the cash position. In terms of how it is structured, it will be spun off to shareholders. If you are a sears shareholder, you will get a lands end share. Remember, Eddie Lampert recently sold shares to meet the gumption in a redemption in his fund. He and his affiliates will own about 48 of this lands end spinoff, which is expected to trade on the nasdaq under the symbol le. This could bolster the cash position. Other analysts have estimated that the auto care business would be valued at about 660 million, further boosting liquidity. Why does it need this liquidity . For 20 seven quarters straight, 27 quarters straight, the company has seen declining sales at sears and kmart chain. Enhancing a long streak of sale sales decline. Any lamperte said is known as being a savvy investor, and yet he has not been able to turn around the sales numbers. Selling off the other assets is well and good, but a turnaround at the core business is also necessary. Some investors have also complained that if you spin this stuff off, you are left with not very much of a quality investment. That is one of the concerns. That is true, what are you left with then . Thank you, julie hyman. I want to turn to the big news, Nelson Mandela, south africas first black president , who passed away yesterday. Crowds have been gathering paying respect. The government says they will have 10 days of warning, and his funeral will be held on december 15. National leaders are morning. He collaborated a long working relationship with administrations on both sides of the aisle. Obama,sident Barack Mandela was a Strong Political and personal influence. He paid tribute last night. I am joined by the former ambassador to south africa under president george bush who worked with mandela. Also with us is bloomberg political analyst matthew dowd. Rick to have you with us. Ambassador, great to have you with us. Ambassador, let me start with you. Tell us about what your meetings were like with him. The thing that really struck me was his level of graciousness and humility. He was not a big man, but he was larger than life in my eyes, and he struck me as a gentle soul. He offered me a tremendous level of encouragement, and he was very positive in terms of the interactions between me and him, and also felt that we had the opportunity to continue to strengthen the relationship between both south africa and the United States. Matthew dowd, i want to play one part of the president s tribute to Nelson Mandela, where he was really emotional talking about his influence on him. We have lost one of the most influential, courageous, and profoundly good human beings that any of us will spend time with on this earth. He no longer belongs to us. He belongs to the ages. Some would say that mandela represents an era of Political Leadership that we do not have any more. The great thing about Nelson Mandela is maybe even in his death he could highlight the political issues that we face here. He was not a saint, and he fought against this deification of himself when he came out of prison. He could have come out of prison in revenge, but he sought forgiveness. That is what his life was. Absolutely. Ambassador, there were some Nelson Mandelan and president george w. Bush at the time. I know they joined forces in fighting aids, but he was vehemently opposed against the war in iraq. That was true, but the issue was to move the country forward, addressing hiv and aids, and that was the president s Signature Health program for south africa and for the continent. Things we could agree on to serve the needs of a significant number of people, not only in south africa, but around the world. What you think we can take as lessons . There are a couple. First, it is amazing, the power of an individual that can change the nature of entire country. He demonstrated one person can really make a change in a country. Two, the majority of his account judgments happened after he was 72 years old when he got out of prison. Or 55y say when i am 65 and retired, i am done, but it is a lesson that the best part of our years are to come. Good for us, or good for me. And, again, the power of humility. Certainly, his legacy is enormous in what he did to fight apartheid in south africa, and his efforts to bring Racial Division bringing the races together, however, there is still Racial Division in south africa. There is still lots of violence and crime in the country, and some would say the influence he had beyond south africa was limited. Are you disappointed, in some ways, that the impact was not bigger . I do not think so. I think he was something the country needed at that time. Apartheid, theof leadership, the moral courage that he demonstrated that diageo point in time, and especially that he demonstrated at that especiallyme, and serving one term and then stepping down. That is very unique to many african leaders. He demonstrated a high level of leadership in terms of taking that step in moving that country forward, the issues of reconciliation, and also being a beacon of hope. How important go ahead. I was going to say, one of the assets and liabilities of the dominant player like Nelson Mandela, he can change the Church Rectory of and trajectory of a country, but once he is gone, you are left with smaller people and petty politics. You will not have another leader like Nelson Mandela, and it is up to south africa to figure out how to figure deal now without that person feeling the landscape. He clearly was a moral compass. For civil rights leaders here, how important was his passing . As president obama said, he was a leader for the world, and around the races world about apartheid and many things. He will be in the annals of Martin Luther king, gandhi, Nelson Mandela. And he was an inspiration to people all over the world in terms of what he stood for, and that is so important, and something that any of us should never forget that none of us should forget. On that note, an appropriate note, thank you, matthew dowd, and also eric bost. We will discuss Nelson Mandelas legacy with someone who knows it quite well. Ceo Mohamed Elerian will weigh in, as well as on the jo report that will be out in 15 minutes. Stay in the loop. We are just Getting Started on this friday. In the loop with betty liu will be right back. As we await the crucial employment report for the month of november, the last jobs to poorly with good this year, were starting to see the jobs report we will get this up a whoppingre 28 this year, making bonds a tough sell. I want to bring in Jeff Rosenberg from blackrock who says this market proves how addicted investors are to bed fed easing measures. You will be frustrated what is going on with what the fed is doing. You call this paranormal activity. What do you mean by that . We have seen this for a while. What paranormal means is nothing in the relationship between the real economy and the stock market is normal. Good news in the economy is bad news for the stock market. Overis because fears better news in the economy, what that means for withdrawal of Monetary Policy accommodation stock markets, Financial Markets globally are addicted to accommodation, so there is a complete disconnect between what happens in the financial market, what happens in the real economy, and that is the paranormal market activity that i am talking about. You wrote in this report nightmares are guaranteed. You cannot ignore the impact on your psyche. What, jeff, are your nightmares . That was a quote form the paranormal movies. It was from the movie poster that i was making an allusion to, paranormal activity should be disconcerting. This is not normal, not necessarily healthy financial , because theor transition we are trying to accomplish is very difficult to for the baton for support valuations from monetary support to real economic activity. That is the hope, you can create the transition. You hope that, that i get back to the question, what is your nightmare scenario . The nightmare scenario, the bad scenario, is that the transition between Monetary Policy support and real economy support does not happen smoothly and he just does not happen with valuations detailing to go up. Market valuations have gotten so far ahead of real economy fundamentals that when you fear the withdrawal of policy accommodation, valuations fall. That is really the risk. And you think it will get even worse under janet yellen when she takes over the fed . No, actually, i think it is the opposite. What janet yellen represents and what they are going to try to communicate is even as they begin the process of trying to pull back from quantitative easing, they will augment that withdrawal of accommodation by accommodations for expectations of lower for longer, longer than zero Interest Rates, trying to convince the markets they will be accommodated, even as they are pulling away from quantitative easing. The tricky part of that is they are moving more towards communication of policy than action, and it seems the markets are having a hard time appreciating what that really means. It is a hard time for anyone in fixed income, so how are you trying to get your returns . But the trick here in fixed income is we really have to think differently the trick here in fixed income is the really have to think differently. If we are in rising Interest Rates, which means falling bond prices, to manage an Interest Rate fixed interest portfolio, you need flexibility. We want to be able to buy bonds and be a longonly investor, but also sell bonds. It is good to be long and short to manage fixed income in todays environment. Thank you, Jeffrey Rosenberg from blackrock. We are about seven minutes away from the november jobs numbers. First. Bloomberg. You are watching in the loop , live on Bloomberg Television and streaming on your phone, tablet, and on bloomberg. Com. Good morning. I am betty liu. It is 26 minutes past the hour, which means Bloomberg Television is on the markets. We are awaiting a jobs report. We are expecting 180,000 jobs created in the jobless rate coming down to 7. 2 , not a big difference from october. We are on the market again in 30 minutes. The top headlines mourners are gathering outside of the home of Nelson Mandela, who died 95. Night at the age of he led the emancipation of south africa and went on to serve as the first black president of the country. We will have 10 days of mourning before the funeral is held on december 15. The Time Warner Cable incoming ceo says hes willing to sell the company at the right price. The current chief operating officer will take the reins amid speculation they will be acquired, and he says he is the perfect guy to manage the mergers and acquisitions component. Deutsche bank is cutting 200, oddity jobs. Europes biggest nash, oddity jobs. Jobs. Modity they have dropped to the lowest level since 2009 is regulations have doubled. We are moments away from the jobs report. We have full coverage. Dianne swamp is with its. Wonk is with us. As we are awaiting these numbers, i know your expectations are a little lower than what most economists surveyed are expecting. Why is that . It does not feel like a 200,000 jobs a month economy. I have 160,000 jobs. That is like. Of ther, last month, 40 jobs gains were lowwage in leisure and hospitality. Those are minimum wage. That is the composition we need to get itself feeding momentum in the u. S. Economy. , looking ahead to 2014, some are saying we are likely to get a minimum wage increase, at least that seems to be the momentum right now. Do you expect that to have a big impact on the jobs market . One of the issues on minimum wage, during the Great Depression we saw a lot of unionization. When people are living below the Poverty Level on minimum wage, they will be upset about it. The unions have linked onto this and are trying to lever that point, but hard point is when you raise the price of labor in lowmargin businesses like fast food, you will lose a number of workers as well. It is a tough issue. Raising the minimum wage sounds great to people that want to increase living standards, but you could also be cutting a lot of people out of the job market. It is a controversial issue right now in washington. Let me bring in Michael Mckee who is standing by with a whisper number right now on the jobs data. Is potentially a volatile day because the whisper number is 200,000, or maybe a little over that. The consensus is 180 5000. If it is much higher or much lower, we could see market whips. We might see that in a few seconds. 180 5000 jobs expected. 7. 2 for the jobless rate. It or cook. Next it or cook eric on peter cook. Unemployment drops to 7. 1 . There is some noise. Nonfarmingd on the payroll, better than our survey number of 185,000. Modest revisions combined september and october changes. Were looking at job gains three out of the last four months better than 200,000 jobs, very stable, very consistent. Toemployment rate drops seven percent, the lowest Unemployment Rate we have seen since november of 2008, when it was six. 8 . The Participation Rate is up. Again, what happened here in terms of the drop, we saw a gain in employed in the Household Survey of 118 thousand, the biggest number we have seen since may, 1984. The unemployed number falling by three under 65,000, including 377,000 of those temporary, laidoff government employees. They are again, once again on the job. They were included in the 118,000. So, again, some noise, but it is clean. They were counted both times, october and november. The longterm unemployed is unchanged. A big improvement in the Household Survey. Big hiring numbers for transportation and warehousing. Manufacturing up 27,000, the best month since march, 2012. Healthcare up 28,000. One area of weakness, financial activity is down 3000. Up average weekly hours are 34. 5. The bottom line, moore improvement, more traction in the labor market. The unemployed rate will get the attention of the Federal Reserve talk. Art paper taper it is getting the attention of the markets. Alix steel, do we see a rally . A little bit of a rally. It looks like investors are taking good news as good news. Typi