for a television network called fuse tv. they will pay $200 million to buy the channel owned by madison square garden. investors and economists will be waiting for today's payroll reports to see if the winter impact is finally ebbing. mike mckee has more. >> we will call it groundhog day for the economy. will the shadow of the long winter finally go away? -- we werergue about averaging $200,000 jobs a month. then we dropped off after october. there was something going on. it probably had a lot to do with the weather. we are still quite cold in mid-march when they took the survey. better than it was in february. we have had better data. we saw the auto industry report of best sales since may o 2007. we will see an increase of 200,000. there was another area, hours worked, where we were studied for a long time. about whena week for he seven months. then, down the drain. that should come back as well. another sign that things are getting a bit better. >> this will be the first jobs data that we get after the fed said that they were going to thresholduidance of of 6.6%. >> janet yellen gave us a lift to watch her. we want to watch the number of people who actually want jobs. the size of the labor force coming in and out. how many people are moving from the part-time roles to the full time roles? how long does it take people to get jobs? what is the voluntary turnover? we want to see whether people are starting to get more money. up watch average hourly earnings. those nonsupervisory workers. people who are paid by the hour. that has been rising. that is important. we will watch the unemployment rate. it has its problems. it is supposed to go down to 6.6%. even if it does not, that could be good news because it would show people coming into the labor force. >> thank you so much. mike mckee will be with me during the jobs report. moving and shaking this hour is bank of america's ceo. he made more than $13 million last year. underpaid by about 30%. year, they had a return that was two points above the s&p 500 gain. way tohey will have a make it up to him this year. for more on the best and worst compensated ceos, we are joined by laura. the salaries of 177 top executives? >> that's right. they crunched numbers from 2013 sales and total returns versus the snp. the going rate for each ceo. moynihan's with 30% below. >> he is an company here. there are other ceos that are well underpaid. >> there are. stanley,eos at morgan bank of new york, ups -- they all had returns that exceeded the s&p last year but had paid that was below the going rate. >> what about the overpaid ceos? >> there are plenty of those. we had coca-cola, citigroup, ford, at&t -- they had returned that lagged the s&p and pay going over the rate. >> these are all interesting numbers. we love to hear what top executives get paid. the impact of this study or the results of this? >> ceo pay will almost always go up when a company's performance improves. it does not always have a decline when performance goes down. it tracks one way more than the other. >> interesting. thank you so much. let's switch over to defense. chuck hagel wrapping up a meeting with asian defense ministers and white. heading to japan today. all part of the obama administration's much talked about tidbit to asia. the tragedy of fort hood is following the defense secretary. peter cook sat down for exclusive interview with hagel in honolulu and join us now in l.a.. does he have an exclamation for why these tragedies are happening so often at u.s. military bases? >> it's pretty clear that chuck hagel is just as confused as everybody else as to why this is happening so often here at home. american men and women in uniform in harms way back here in the united states. he is clearly troubled by it. called it a terrible tragedy. we were there in honolulu when he got word about what had happened at fort hood. yet conversations with the president and other top officials about it, trying to make sure what happened here -- was this a terrorist threat? i pressed him on why this is .appening and he wa to andave been adjusting a blending a number of recommendations that came out of the 2009 fort hood incident. to further ring more security -- bring more security to our bases. we will see what comes out of this. assure in every way possible the safety and security of those bases. as for this particular incident, hagel said, listen, we need to let the investigators do their work. he did not know the motivation d.pez ha this is a very difficult issue for the pentagon. he is a vietnam veteran. this is a challenge that he had not anticipated when he took this job on. >> i imagine not. as we have talked about, the purpose of his trip is that he wants to give it the focus onto asia. china will be a key stop. >> arguably the key stop. this is part of that give it to asia. the fourth trip or chuck hagel to the region. he met with 10 of his counterparts from southeast asian nations to talk about ways they could cooperate, not just on military bases, but also humanitarian disaster relief. that sort of thing. a visit in china that will grab the most tension because there are a lot of people in china to see this pivot to asia by the u.s. military as a direct threat to china. an effort to contain china. i asked hagel about that. chinas is not a contain approach. out is an approach to reach and try to be more open and communicate and corneille and find ways we can work with each other in a common purpose and a common interest and we do that now with chinese in many areas. we will continue to do that. do we have differences? yes. but the only way to deal with that is to be direct, open. topics when heot meets with his counterparts from china is going to be the issue of cyber warfare. one of many areas of tension between the two countries as chuck hagel tries to smooth those relations out. >> i know you also talked with him about russia and ukraine. and what the u.s. should be doing about this. of the was a major focus conversation. a lot of things on chuck hagel's plate. the united states sees no evidence of the russians are pulling back at all from the border. all those russian forces along the border. he told me -- i asked what nato is going to do to respond to all this. he said that they will consider a number of options. one is this idea of moving a u.s. army brigade back to europe. of them out of o europe. now we are talking about moving one back. one of the many options on the table. that would be a significant deal. >> that would be huge. i want to bring in richard falkenrath. he is our bloomberg contributing editor. what about that option of sending a permanent u.s. army brigade back to europe? >> it suggests that military escalation in this diplomatic crisis -- my personal opinion is rather ill advised. there's no one in their right mind that wants to engage russia militarily over what's happening in crimea. a solution to be here, it strikes me as more likely going to be a diplomatic and possibly economic one. >> did we miss judge putin? >> without a doubt. misunderstood and have not been listening to the russian president and his cohort for the last 5-6 years. he has been fairly transparent in his view. he is not going to permit ukraine to fall into the western sphere of influence. the u.s. and many others don't like that he still thinks about the world that way. but he does. >> we have a comment from hillary clinton where she made some comments about how the u.s. has dealt with russia. i want to play that for both of you. >> vladimir putin is motivated by the past. andants to re-create it reclaim it. he wants to restore what he place ofthe proper russia in the world order. >> that sounds like what you just said. why would the white house not be more prepared? >> it was distracted by other things. they are not vital national interests. the obama administration is domestically focused and pulling back from international engagement. a lot of things have happened that have taken us by surprise. clinton gets it right. -- who 19th century knows what he really wants. if that is who he is. a person who believes in power and someone who has made it real clear, he will not tolerate the expansion of the european union and nato into the ukraine. he is pretty blunt about it. with in my conversation hagel, asked him, did president obama misjudged vladimir putin? he said, no. he makes the case that they saw what happened in 2008 with georgia. this may not have been what they expected. they know what vladimir putin is up to. -- he makes the case it is not an escalation but nato acting defensively. no doubt that putin will take it is escalation. they have eastern european partners. they are moving u.s. navy warships back into the black sea. this is a provocative move, no doubt. but one that would be defensive in nature. >> this makes the case for the u.s. to not cut back on military spending. >> we are cutting back for domestic reasons. because we have a profound fiscal imbalance in the country. the world has not gotten any safer. we have a really difficult budget problem. we are overextended in a number of ways. if we wanted to get into a military competition with russia over ukraine, it would make no sense to cut the budget. we don't want to get into a military competition with russia. nobody wants that. president obama is not going there unless he is dragged by some terrible crisis. >> thank you for joining us. richard falkenrath and peter cook. thank you so much for bringing that for us. we are waiting for the jobs report about 60 minutes away. where are employers hiring? we will have much more on that, next. can't wait for the world cup? check out the robotic version. we will have that in a few moments. ♪ >> one question that comes to mind, where exactly our jobs being created? here in new york city, tech related jobs are thriving and being created at a fast pace. a new study shows that 45,000 tech jobs are created in the city between 2003-2013. which represents 18% increase. jack, who now is ran for new york city mayor this past year. it is interesting to me that, not only are we creating tech jobs at a faster pace than under industries in new york city, but those jobs pay 50% more than hourly wage workers who work for the government. that is both positive and troubling. >> that is correct. we have a very exciting jobs picture here in new york city, particularly with tech jobs. nearly 300,000 jobs in new york city alone in the tech sector. what's really interesting about that is that 150,000 of those companies. non-tech that is like being a programmer at citibank or a tech manager goldman. a lot of the tech jobs in new york city are in non-tech company spirit we have a lot of startups in york city. that is the result of the new incubators and venture capital that is now flowing into new york at record paces. >> you are seeing areas like seeingn where there are a huge start a culture. i find it troubling because the fact that the growth is so fast and the wages being paid are so much higher than other sectors, isn't that going to increase the wage disparity in the city? >> the opportunity in the tech sector is different from other sectors. in law, you have to go to law school and get a degree. going to that. medicine, the same thing. the tech sector sees a different picture. a lot of nontraditional workers coming into the tech sector. a lot of people who did not major in computer science or do not go to college. now entering the tech workforce. techthan 100,000 jobs in in york city don't require a college degree. at a lot of them are going to places like general assembly or going online to code academy. these are online and off-line places to get computer schools. the computer industry in york city is taking these folks and. a lot of opportunity in new york in the tech sector specifically for folks who did not go the traditional route. .> we will talk more about this you will stay with me throughout the area. our.roughout the hour. >> there is an improvement in the job market. rateown employment includes discouraged workers. rateof the participation -- there are still plenty of f slack in the labor market. ♪ loopu are watching in the live on bloomberg television. good morning. i'm betty liu. it is 26 minutes past the hour. which means bloomberg coalition g television is on the markets. the consensus here, according to economists that we surveyed its fourth edition of 200,000 jobs in the month of march. futures are higher right now. up by four points. sitting around record highs. a lot of people are looking for this jobs report to confirm the move higher in equities. treasuries are set for a losing week. the two-year has picked up in terms of yield. 2.80%.-year unchanged at we start up with the euro at a five week low versus the dollar. it is weaker against the dollar this morning. dollar-young, little change right now. euro also weakening against the yen as well. 101 -- oil at 101.06. consensus is for 200,000. according to economist notes i've been reading, we are ofking at a whisper number 220,000-240,000. we will find out in just a few minutes. we are on the markets again in 30 minutes. here's look at our bloomberg top headlines this morning. time is running out to find the black bo from the missing malaysian airline jet. using boats are underwater vessels and focusing on a 150 mile area of the southern indian ocean with the hopes of hearing one of the signals from the box. online food ordering service $192 million in its ipo. the company's price shares above the market at $26 apiece. the stock will begin trading today under the ticker symbol grub. best buy may be sensing the and for windows xp. it is offering users a $100 whent for a new computer they trade in their current windows xp machine. it may be due in part to microsoft's stance that it will lower longer send out security updates for its platform at the end of next week. the trade-in credit starts on sunday. we are awaiting the jobs report, which will be out in just a few minutes. we will go through the numbers really quick. the change in nonfarm payrolls up 1000. -- up 200,000. the unemployment rate expected to be at 6.6%. tch for numbers out of average hourly earnings. it looks as if companies may re even more.er eve mike mckee is standing by. >> one number you might want to watch for is the number of people who have part-time jobs and how many of them might move into full-time work. janet yellen put that on their list of things the fed is watching. also, the number of voluntary job levers. job leavers. that would be a positive sign as well. >> thank you so much. our team is standing by to help break down the march payrolls report. scarlet fu is going to stay with us. jack, theguest host, former chairman and ceo of the dice.com job-search website who sits on the advisory council for google. also the labor department is washington correspondent megan hughes. let me get a quick comment from you on how much you expect tech jobs to contribute to the jobs report going forward. >> tech jobs is increasing at a rapid pace here in new york city. 18% comparedsed by with overall increase of only four percent. outpacing by four to one. this will spread throughout the country. >> i want to get to megan with the number. 192,000 jobs were added in the month of march. shy of economist's forecast. holding steady with last month. some interesting revisions to talk about here. last month, 175,000 was revised up to 197,000. we are down this month compared to the month of february. january's numbers were actually also revised to 100 44,000. some significant revisions. the growth and nonfarm payrolls and the private payrolls, all the growth was in the private sector. professional and business , 57,000 jobs. about average. , 19,000. mining and logging, 7000. -- health care, 19,000. a ms. for the economist forecast. for the economist forecast. >> if you look at futures right not come up by eight points. as for that spike you are referring to, there is a movement up. a leg higher in equity index futures. we are not looking at a massive move in futures overall. .4%.up once you look at it over a three-month average, that might suggest the fed would need to consider moving towards normalizing interest rates perhaps by next year. that is one area where you are seeing an immediate reaction. also in commodities -- oil at 101 .23. we see a boost in some of these risky assets right away. in treasuries, treasuries right now have to move higher. prices are up. that pushes the yield down. move on7%, a similar the shorter end of the yield curve. points before the jobs number. the federal reserve will continue buying treasuries. it has tapered it down over the last several meetings. it will still buy those assets. >> i want to bring in mike and what this means for the fed. >> the fed is going to look past this number because they are playing a longer game. they want to see of this sort of thing is sustained. it is good news not only because we get to trend and we don't go beyond that that because we did not have revisions -- we have revisions to prior months. the economy has not really slowed over the winter period. it isn't spectacular. we are making gains. the unemployment rate -- this is a good news story even though it did not go down. we talk about the responsibility -- a big rise in the number of people who came into the labor force. 500-3000. 503,000. you might spend more if you think the economy is getting better. we did not see a major increase in average hourly earnings. that was a big jump the prior month. this might be a bit of payback. until we see that continue to not seeularly, we may as much of a gain from job gains in the economy as we thought. average hours worked rises back to trend. we are back where we were maybe in october. that is good enough for the fed at this point to continue their tapering on a regular schedule. >> let me bring you into this conversation. move a bit away from tec and borrow from what you were trying to do when you are running for mayor. you are trying to create jobs. on the growingot industry. what does government need to do? local and federal government to get the jobs market going. >> here is a number you don't see in the report today. the number 3 million. 3 million open positions right now across the u.s. on job boards and job listings across different sectors. there is a mismatch between the open jobs and people trying to fill those jobs. more than 14 million people out of jobs. 3 million open jobs. mismatch. training a gap between the training of that workforce and these job positions and the requirements. to do a better job in training those folks so they can take those open positions. >> who is responsible for that? the public and private responsibility. while the government has lagged a bit in terms of offering that training, the private sector a stepped-up in nontraditional training. you can go online now. there's lots of new schools opening up that are not four-year colleges that train people for different kinds of positions. if we can focus on those partnerships, we can get going to fill many of those 3 million open positions today. that is a huge opportunity that is not being met right now. >> republicans have said that enoughent is not focused on job creation and democrats are saying, hey, we are focusing on jobs creation. at the same time, we need to extend jobless benefits. we need to raise the minimum wage. in the senate, they just passed the bill and extending those jobless benefits. are we even clear who that is going to help? >> there are about one million people who are knocked off the jobless benefit rolls of the beginning of the year. many of them have not found jobs yet. is there going to be enough momentum to get that through? the median duration of unemployment falls again. the people who were more releasably out of work. much of what is being talked about -- the training jack is talking about -- those are long gain issues. we need a bit of a spark for americans to start spending more and for companies to than reflect that back and hiring. that does not come from the government. the government can spend but it can get it started. >> hang on with me. scarlet watching the markets and megan hughes at the labor department. thank you so much. u.s. labor secretary tom perez will be in the loop as we continue to the jobs and focus on this friday morning. will be joining me as guest host for the next hour. he will give his take about jobs. he will be guiding us through the opening bell. we will be back. ♪ >> we just got the jobs report a few moments ago. a mixed picture here on the labor market. 192,000 jobs that were created. a bit less than what economists had expected. in the prior months coming at revisions. for the overall report. and talk aboutck the overall jobs market, there is some more concerned that perhaps technology is going to replace some of the traditional jobs. some are asking, are you want to have your job in 10 years or are you at risk of being replaced by a robot? the exponential growth in tech is fueling rampant replacement of everyday tasks like driving, making food and even trading shares. it the second machine age. by andrewew book mcafee. alec still joins us now with more. joins us now with more. alec scummy sat down with these economists who shed some light on the changing labor market. >> it depends on what your job is. we may not be worried in the media industry. some people should be. there was a study out of the oxford that estimated low-wage jobs were being replaced by robots. has always been destroying jobs. it is always creating jobs. we need to look for ways to use technology to not just substitute or automate work but also to augment what people can do. a more longer-term optimistic view on technology. they did it knowledge the ship could widen the income gap in the short term. a large part of the workforce needs to be retrained for different types of jobs. >> a sense of what jobs were lost? >> manufacturing make sense. administrative workers. oxford alsoty of found that service jobs were was at risk. look at dishwasher dobbs. ates, construction -- look housing. you can build houses and a controlled environment using ira a robot. the jobs that are more creative or need a certain degree of social intelligence would be considered sacred. a biologist or a fashion designer. safer.d be considered lawyers. emotional connection -- all of the qualities that they talked about. you don't want to rely on them for machinery. there could be growth in these categories in the short term. there are some jobs that you can completely replace with robots. stay with me. jack is eager. you are right in the thick of this change. people say, this is troubling for me. what kind of an economy are we going to have when low-paying jobs are being completely phased out? >> we are squarely in a disruptive economy. where is blockbuster or tower records? there is also an opportunity here. take tesla as example. it is up five times from its ipo. it took over a factory in fremont, california that gm used to have an created lots of jobs. how did it do so? how did it manage to create its cars on u.s. soil using som? you can see both humans working there and robots, side by side. those jobs are changing the nature. instead of just a human screwing in the bold, the robot does that. but the human need more training to operate that robot. was able to use automation to keep those jobs on u.s. soil. >> i don't argue against that. this is why the government -- now you take it back to washington. this is why the president and democrats say, we need to extend long-term unemployment benefits and increase wages for minimum-wage workers because some of those jobs that are being replaced or excluding a whole segment of this country who were not able to now find another job. they can't get that retraining. now they are in no man's land when it comes to finding a job. on thised to focus training component. look at other disruptions coming down right now. amazon made his big announcement about its fire box. what implications will that have four people at time warner cable and comcast? consumer behavior will start changing at home. people will start watching more over the internet. we need to get in front of those kinds of trends and provide training to those workers to say, these are new disruptive trends that are coming. let's get you that trendy. the good news is, we don't need for your programs to train those workers and retool them. there are quick hit trainings that can get people to this new opportunity. >> great to see you. thank you so much for joining us. bringinglix steel for us that story. we will be back in two minutes with more on jobs. ♪ >> as we mentioned, some surprises here in the jobs report. a bit worse than expected. the whisper numbers had expected higher employment data. the revisions were better than expected. randy, thering in professor of economics at the university of chicago's school of business. great to have you back on the program. >> great to be here. >> how do you think the fed is going to look at these numbers? >> this is pretty much right on target. the numbers are around 200,000 what the jobich is creation rate has been for the last year. the upper revisions to the previous months are helpful. we had a take back up in the work week, which was important down on theicked months where people cannot get to their jobs. the work week was shorter. one troubling piece of news here, the average hourly earnings. they pretty much did not grow at all when you look at the month on month figures. they were slower than expected over the course of the year. that tells me that we may not be in for any robust hiring. >> we are creating a reasonable number of jobs. not strong enough or a strong as we would like to see. but pretty much the pace we have been seeing. what is concerning for income growth is that we are not seeing it. we are seeing a decline in nominal income. so obviously a decline in real income. that will keep wage pressure down. that will allow the fed to stay lower for longer. --that wage pressure downward pressure on wages is the reason why some of the fed's presidents is saying that we are not in any type of inflationary environment. disinflationhis in plac area right now. his concerns right now with the economy. >> i'm not talking about raising interest rates. what we're doing is laying out the conditions that we are would be paying attention to. even a six-month timeframe we finishedhen the asset purchases. then we will start looking at the economic conditions and inflation. >> why can't we get inflation? what's going on here? >> we're certainly not seeing a lot tightness in the labor market. when there is more competition for getting a job, that will put downward pressure on wages. we just have not seen the recovery wef the have typically seen when you get more employment and some growth. this is one of the reasons why the fed has stepped away from the 6.5 unemployment reginald. it is not a robust labor market. -- unemployment threshold. >> do agree with charlie evians? we can't even begin to talk about raising rates until next year. >> it's clear from what janet yellen has said and what charlie has said that is likely that the tapering process will conclude sometime by the end of this year. but at least six months until they take the next step. >> thank you so much. good to see you again. the former fed governor. in entertainment news, let's switch over to that. something fun. j lo has outbid ditt in the bid fuse tv. they reached an agreement to buy the station from madison square garden. iddy is fuming about this. interviewedhle, you him before. >> we did. i'm not sure if he is feeling. supposedly, it's a friendly rivalry. -- he is fuming. -- she doesllion contribute to content on nuvo. they are not changing who they are. what they need are more eyeballs. tv is currently and 34 million homes. with views, they will be in 70 million homes. the network is an english-language network or commit to war latinos. if you're an advertiser, you are not going to advertise with a company that has so few homes. revolt about diddy and tv? >> al jazeera paid $500 million for current tv. did they pay too much? we don't know yet. you don't want to be in that position. we can't tell how well his network is doing. for j lo, a big win. that's her ex-boyfriend. yay for the women. clinton high-fiving onstage and j lo buys a tv network. a big night for girls. is 56 minutes past hour, which means bloomberg television is on the markets. equity futures are holding onto those gains. the jobs data came in. one of the revisions added 37,000 jobs. 192,000 jobs created, staying at 6.7%. we will be talking to tom perez about the labor market. we are on the market again in 30 minutes. mario gabelli is in the loop. jobslps me with today's numbers. s off on some of the media deals. ♪ >> we are 30 minutes away from the opening bell. you are "in the loop." i am betty liu area here is what we are working on. equity futures are higher. the job numbers were slightly weaker than expected. we added 37,000 jobs over the last two months. as iarch jobs report, mentioned, continuing to affect equity futures and the markets. let's go to megan hughes who is standing by in washington with much more on how the white house is putting this labor report in context. >> yeah, betty, we will be hearing from the labor secretary in just a little while now. the big surprise out of today's number, a lot of economists are a big bounce when you look at february compared to march, but when you dig down into the numbers you do not see that. 192,000 this month, and last month was revised upwards, 197,000, so we are down a little bit, but steady, consistent. in terms of where are the jobs -- the biggest growth, professional services, 57,000 jobs food services, 19,000 . the weather has not had that much of an impact. we have seen a steady rise in construction jobs. where there was not much change, government, number one. a decline in federal jobs, but an increase in local jobs. government was little changed. also, little change in manufacturing. that is what we are seeing in the big picture. it is worth pointing out all of the job creation was in the private sector. >> megan, thank you so much. they can he was in washington area economics editor -- washington. economics editor michael mckee weighing in. , mariocial guest host gabelli. you are watching the jobs report closely. hang on. mike has something to say. >> i want to point out the fed was never in this report. they pointed out what the timing was for the paper and janet foren got in trouble suggesting there was a time enough for the tightening. the fed is looking past this. people are confident, trading in their own forecast for what the fed is going to do. the reaction has been strongest with the five-year note, what they call the valley of the curve, which would cover the period in which the fed will start tightening. people are backing off in their assurance that the fed will start acting in that time. one central bank has been affected, the european central less likelyseems the fed will tighten, and the euro is strengthening, and that is bad news for mario draghi and company because this inflation stays on track, their economy might grow more slowly. >> what do you think, mario gabelli? >> the jobs report is an element in the total mosaic. improvements will occur. the private sector is improving. this morning, for example, class a truck orders are coming in attic celebrated rate. there are a lot of dots to connect. comment --, april, may, we will get past the weather. >> given the fact that the fed has said we will do away with engine marketing the policy -- , doesarking the policy that change the way you view how the fed will move? >> you have a very simple example of going beyond the curve, the bell shaped curve of what they are doing. trillion,four dollars -- $4 trillion. how are the banks reacting? the central banks are working together in unison. it is kind of a put in the market. mike, given what we are saying with the jobs market, and as mario seems to be dismissing the impact the fed will have on the labor market. thethere any other levers central bank could poll? >> there really is not. they could try to flood the market with additional liquidity and you could have jobs created because there is so much going on in an asset bubble that it helps you out, but they will not do that. beyond that, they are on the sidelines, and they know it. that is why they are going ahead with the taper. what we need to see is a spark that changes the dynamic, that is companies to focus more on hiring to meet topline goals as opposed to preventing hiring for bottom line goals. x-unit fiscal policy, the government to get their act -- >> you need fiscal policy, government to get their act together. we have an election coming up in six months. >> are companies still using the excuse? >> they are not an excuse. if i understood what my tax rate would be in 2015, what i need to do in terms of regulations, i could focus on the fundamentals of my business. i do not think that is an excuse. think one thing is clear, the public sector is not adding jobs except state and local, and that is a healthy thing for corporate profits. >> if i could jump in and say mario is right except that it is not going to change. we know washington will not do anything. the best they have done is get out of the way, postpone budget crisis until 2015. beyond that, they will not give you more clarity or take active policies to try to create jobs. janet yellen and the rest of the fed have to look at it and say we have to make policy on our own. >> you cannot work on one cylinder. >> you can, but how do you change that? >> it will change. the voters will be very active come november. >> you think that scenario will drastically change? what was put up in the air was a whole mosaic of tax policy, and those are trial balloons. those, put together, will put the u.s. back on the path of good growth, and be the economic leader and engine of the world and mario draghi will do the same thing. >> for private sector ceos, the ones you are talking to, what do they say besides a clear regulatory environment or tax policy -- is anything else that would encourage them to create jobs? >> within the framework of profits, why'd you add an incremental individual to work for you? demand is improving. demand is improving in a lot of sectors. i think the engine is moving at a gradual pace which is great for the stock market. mario gabelli throughout the hour and through the opening bell. >> delighted to be here. >> of gamco. jobsll have much more on including the white house reaction with labor secretary tom perez joining in a moment. ♪ >> in testimony before congress ahis week, gm ceo mary barr said she did not know about why it took so long to learn about the deadly flaw that led to more than one dozen deaths. i would like to bring back mario gabelli and matt townsend, who has done a study on how other companies have behaved during a recall. we all remember them johnson & johnson recall. in othere found industries and talking to executives and ceos, it is really on the ceo to create a culture that promotes people to speak up and really reinforce the idea that safety is important in a company. in the case of gm, what we have learned so far is that under previous ceos they were not that involved -- not been involved in a reit -- recall process or making that decision, and that seems like an outlier. >> i was going to say, is that unusual with automakers? is not.automakers, it >> so this is an auto industry issue. >> it looks like an industry-related problem because it is a complicated industry, so many things go into making a car, and a lot of times ceos are kept out of the process, or when they do a recall, wrought in late in the process. you have to give that some thought when looking at this. >> mario, i know you do not own gm. minimal amount. my understanding is the government owned this while this was going on and they sold stock. >> we are talking about a problem that happened in 2003. >> you are talking about crisis management 101. asked my question is how involved you want your ceo to be in an issue like safety? >> that is fundamental to the industry. wantfine in an airplane, i to make sure boeing has the 777 working and i want to make sure the ceo is involved. within the context of mining companies, you read annual reports, many of them, how do they create safety, what is the loss of man-hours per accident? >> they should ultimately be held accountable? >> there are a lot of reasons you are the ceo. there is no question the ceo of the united states government should be held accountable. that is the president, and everybody top down. i go back to the truman approach, and that is the buck stops here. matt, you found that it was different in other industries. >> we have anecdotes of former executives talking about what it was like in companies that they work, and one of the anecdotes was a ceo of a large conglomerate gave his personal cell phone number and said if there's anything life-threatening ever involved in any of your divisions call me immediately. a culture -- >> you have to have an open door policy with regards to harassment, and have a committee that can be an outlet. the process is pretty much ingrained in many companies that we follow. >> net, thank you for bringing me that story. that townsend, our reporter. mario gabelli stays with me through the open. we'll be back in two minutes on "in the loop." ♪ >> moving and shaking this hour, tiger woods, who has an impact on golf tournaments, even when he is not playing. he has pulled out of next week's masters because of a bad back and stub hub says ticket prices have fallen 25%. if he had been playing and had a a ticket would, go for $5,000. moving and shaking, brandon ike who quit as head of mozilla. criticizef employees him for donating money to an anti-gay marriage group years ago. he originally said he would not quit, but changed his mind. lastly, bank of america ceo brian moynihan made more than $13 million last year, but one expert says he was underpaid by about 30%. crystal came up with a way to figure out the rate tied to a benchmark, and last year they had a rate of return two points above the s&p 500 gain. we are back with gamco's mario gabelli. ceo pay -- do you ever pay attention to that? with corporate governance, that started back in the 1980's, we published what is right for shareholder rights, and magna carta. it is more of an element. about recentned cases. a ceo's paid to the degree that they are taking away stock, which in the case of company x, that would be an issue. on balance, we do not think that is a mover. >> our bank ceos overpaid? >> i have no idea. i do not follow that industry. if you are asking me about companies that we follow, we know how ceos make money, and some of them are underpaid. some of them are overpaid, but on balance, it sorts its way through. it is not an element that is a decision within the context of whether we want to buy a company or not. wordght now the financial -- world is a twitter with what is going on with michael lewis' book. orright now you get about 40 50 annual reports. >> you are reading that. >> there's nothing else to read it is important to understanding stock specifics. within the context of flash trading, i do sit on the trading desk, and i watch what happens. it is a ripoff of the consumer. >> what do you mean? in and watch the stock and how they probe at $60.22 a bid for 400 shares, before you can put an order in to sell it, the bid disappears. a should hold it firm for a period of time, but i'm not the only one that has observed this. >> are you glad michael lewis brought this issue out? >> michael lewis is talking about high-frequency trading, other things. the most important thing for capitalism, for us as investors, as owners of businesses, is confident by the public, by investors in the clarity of the marketplace. o used to do this at the new york stock exchange. specialists would always try to figure out something. from running and all of the forms of it has to be examined, and that is why you have the sec, who is doing a terrific job, the technology is fast and they have to change the rules. technology,about michael lewis has been on our network a few times this week. >> he is selling books. >> he does not need that much help. this is what he said about technology within banks. >> part of the reason high-frequency trading has happened outside of the banks is shops that elevate the status of the technologists, those that do it the best, it is about flickr technology. it is out -- in a way how the industry is structured and a --ect result of the banks to failing to accept the technology. >> do you agree? >> i have no point of view on that. none. >> ok. we will end it here. >> we can talk about stocks and how to make about -- how to make money. >> we will. we are just a few minutes away from the opening bell. the top 10 trades you do not want to miss right after this break area keep it here -- break. keep it here on "in the loop." ♪ >> first. bloomberg. >> welcome back. you are "in the loop." i am betty liu. it is 26 minutes past the hour. bloomberg is on the markets. scarlet fu has the latest before the open. a risk-friendly jobs report we were dealt. futures are higher by eight points. nasdaq futures are gaining. oil prices are higher along with treasuries. and analysts as the jobs report was the best of both worlds because it keeps a rally going in stocks. flat road in hourly earnings and lack of downward movement in unemployment reminds investors the federal reserve has cut your breathing room. , but ratecontinues hikes remain in the distance. youhese are the only trades need to know about today. scarlett stays with me and alix steel joins. philip morris -- the tobacco giant says it will shut down its manufacturing plant in the netherlands, the largest worldwide,company saying sales volumes in europe have plummeted 20% in the last four years. >> number nine, anadarko than $400 paying more million to settle fraud claims. it is the largest environmental settlement one by the u.s. government. >> number eight is google. not labs has suspended sales of a smoke alarm after discovering that it could be switched off unintentionally. google bought next intent -- nest in february. accusing-- they are sampson of misleading jurors at the start of a trial over smartphone technology. losses bid to show how they used three of five pence. mixed results for global payments. they maintain their revenue forecast. >> number five, online technology,-- align who make the invisible line technology. >> number four, gm. the company said deliveries in china rose nearly 8% last month driven by demand for buick and cadillac vehicles. gm lost the title of china's foreign automakers in 2013 hoping 19 new worry fresh tomatoes will use sales by 10%. >> number three, carmax, reporting their biggest annual jump in same-store sales in more than decade, saying they sold more than 500,000 vehicles in a single year for the first time ever. technologywo, micron , the largest u.s. maker of microchips, beat analyst estimates as limited supply that amid lackluster computer and phone demand. one, grubhub, the serviceood delivery starts trading today on the new york stock exchange. grubhub raise $192 million in an ipo last night. it was above the expected range. we will see how it trades today. in fact, they are ringing the opening bell, and look, pizza slices. wow, ok. [laughter] now you know what you might be having for lunch. as markets open, i am joined by my guest host and fund manager at gamco. do you care about ipos? >> we do because it is part of the process in allocating capital. it is so the minimus that we do not participate in them, but notwithstanding that, what is important, if a public is -- company is going public in an area, what does that mean for comps. >> what about grubhub, which basically gets commission for online, and the valuation is, in many ways, as we have seen, a bit more expensive than even what some of the traditional food companies are getting. are we getting into frothy areas? >> i do not know anything about grubhub. about, i wasi know at the roadshow. i listen to them. we were one of the largest holders before they went private. it was basically a recycling of capital. what does it mean for companies like mandarin, which we have an interest? we look at that as a benchmark. >> media -- a lot of media deals lately. you must be loving it. john malone -- first, what do you make of i do notice a divestiture, but basically, they are taking some shares, or taking their money out of barnes & noble, giving up their board seat area would you make of that -- seek. what you make of that? >> he found a way to exit, made a nice half it. he moves on. , as iial engineering showed you, this is the grid. >> the kingmaker. equipped he is good as a three-dimensional chess player eric you understand -- player. taxes better than most. fingerprints are on charter, liberty mobile, cable on a global basis, what is his vision ?hree-to-five years from now why did you take a bet on charter and what did they do with regards to time warner cable? in the united states you have 120 million households. comcast is not going to be that big. it will have 34 million subs if they buy time warner, minus three, 31 million. that would allow dish and directv to come in and have an offsetting force and a counterbalance. >> do you expect a merger? >> it is a logical deal, there are a lot of synergies. directv has wonderful assets. michael white has done a terrific job. i own both. they are substantial in our holdings. in that context, a merger between the two companies -- directv, using capital structure, has taken a number of shares out but probably down to 500 million. has 100 million. a deal is logical. the name of the game is speed and it is broadband. >> where else does it make sense to see a merger? >> you have already going on a merger in the broadcasting industry. media general, which warren buffett is a big shareholder, is trying to buy lynn. soft stuff, so the supreme court ruled on the notion of a lot of money being able to be put into the elections, raising money -- that is great for broadcasters. not only is there a mini tsunami this year -- >> we will see tons and tons of political ads on television. >> and that will help because advertising for cars and other subsets is very important area that is what we do -- important. that is all we do. we like the hard news and the soft news. >> we like both. >> let's look at malone and charter. where does he go from here with charter communications? >> it is a great question. basically, we have at the moment, it different million subscribers that subscribed to video through cable, and the sweet spot is broadband. net neutrality is an element of that. i will not relegate the companies to be dumb pipes, but together they could add value. they could create the next netflix of the world by combining content and distribution. >> is a charter with cox communication, who? >> when i was younger recently a game played and they still play it called musical chairs, and the last one to sit. cablevision is trying to figure out -- >> where they fit. >> ideal world, take on new york. >> mario gabelli, stay with me. coming up, the white house reacts to the latest jobs numbers. we'll both be speaking with labor secretary thomas perez when we come back here if -- come back. ♪ >> nonfarm payrolls, as we reported this morning, rose 192,000 in march, and as ever, the white house is watching these numbers closely. i want to bring in labor secretary thomas perez live from the labor department, and also , and who has a lot of opinions on how to create jobs in the u.s., mr. fund manager mario gabelli. mr. secretary, you have, on the show a number of times after these numbers, and the question on a lot of people's minds is what can the government do to create jobs when it seems like so many initiatives, like extending the jobless benefits, continue to be on hold? >> actually initiative to extend long-term unemployment benefits will be voted on by the senate on monday and it will pass in a bipartisan fashion. we have made progress -- >> it might pass, but the house will not pass it. >> two weeks ago, he said the senate would not pass it and on monday, the senate will pass it. i talked to folks that are unemployed and their stories are tear your heart out stories. i met a guy in cleveland who said i have no quit in may. my full-time job is looking for a full-time job. that is why people like senator portman and other republicans have been joining with democrat to pass this bill. wrong, butme if i am didn't fewer republicans vote this time around for this bill in the senate, each only means a republican-controlled house it is not going to pass? >> again, two weeks ago, people told me, people like you, who i have great respect for, told me he would never get through the senate, and now monday it will get through the senate and we will continue to move forward because the american people want action. folks want us to move forward. that is why the president is moving forward supporting the minimum wage, immigration reform, infrastructure that would grow the economy. it is ironic where people say where are the jobs reform. it immigration reform will create jobs, and the shutter picks up the pace of growth -- infrastructure picks up the pace of growth. when you give people the lifeline with emergency unemployment compensation, that requires them to do the basics and that requires them to do the work. >> secretary thomas perez, you have laid out the elements you would like to see, roads, bridges, infrastructure, funding that with higher gasoline prices would go hand-in-hand with that. we know potholes are an issue, bridges are fundamental, and the ability toaving the move goods and services and efficient cost, what are the other elements you would like to see in the next six-to-12 months in terms of creating jobs? >> again, the president has outlined a robust job growth plan. i agree with you, mario. i was out in las vegas recently speaking to the chamber of commerce, and the thing they told me most was that the failure of our roads and bridges as a real impact on their ability to do business because it makes it that much more expensive and delay-ridden to transport goods across this country, so the president has outlined a proposal. immigration reform will create jobs. when you raise the minimum wage and put money in people's pocket, that -- they will spend it. >> i do not want to pick you up on that point because it really is nitpicking, but one report issued by an office that had a lot of phd's in economics would argue that raising the minimum wage, elasticity of jobs, productivity comes in, but we all want people to participate, reeducation and so on. one area you did not mention is energy, and our ability geopolitically and for balance of payments and everything pushing forward on the subject of handling the environment right and also allowing fracking and other unconditional drilling. is that a priority? >> the president has had and all of the above strategy. we are producing more oil domestically, more energynow! domestically than we had in over 20 years. that is a data point that people overlook, but that is a fact. underscoreand priority for the president is to create jobs and we are delighted that is an element of your focus. , mr. secretary, can you point to one program that we put in place in next six months there will be a significant jobs reader? >> -- creator? >> i can point to three or four. immigration reform. >> do you believe that will get done in the next six months? >> when you pass the president's bill, which was reducing corporate tax rates, take the one-time savings, investment in infrastructure, that is how you create jobs. for one, i have given you three. what frustrates us is we have to pick up the pace of progress, and all the things i just described for you have historically enjoyed overwhelming bipartisan support -- the minimum wage, immigration reform, investments in infrastructure. as you know, it was dwight eisenhower who brought us the in -- interstate highway system. these are basic items in our nation's infrastructure and that is why we are going to continue to push for them. >> right about the problem is on those issues of immigration there is not this time around bipartisan support. >> well, actually, the senate immigration bill -- again, that he, -- betty,at we heard the same things. you cannot get anything done in a election year. it was after the shutdown. what happened in 1996? immigration reform passed, the minimum-wage is increased, health insurance past. things get done when people demand it. imagine people want action. people that are long-term unemployed, if we were at prerecession levels of long-term unemployment, there would be 2.2 million people at work that are not currently at work. we need to invest in them. we have a series of proposals out there. we are doing so much of the department of labor to make sure we address this issue. >> secretary thomas perez, we have to go. thank you so much. >> have a great day. stayso, mario gabelli will with me to talk about china and growth there. we will be back in two minutes. ♪ >> you are watching "in the loop ." i have some breaking news. i am a scholar of -- scarlet fu. and it has begin trading is soaring. prices were offered last night at $26. it is trading somewhat lower than $46 and $37.65. --y raised 100 $22 million $192 million. a lot of companies are asking whether grubhub is a consumer company or technology company. in the perspective, it listed itself as a consumer company, but the valuation was more like a tech company. >> very interesting. it is time for our global outlook. markets everywhere are watching china's economy as it shows signs of a slowdown. if weeks are debating economic data is a hiccup or a sign of things to come. bloomberg said alan jim o'neill, -- sat down with jim o'neill for his outlook. >> the slowdown with china is a never-ending thing to focus on. by and large, i'm in the camp where it is sort of all deliberate and quite manageable, but every now and then i think it is getting out of hand and the chinese are losing a bit of control. given the global relevance of china, in many ways i would say that is the single most important thing. >> i am back with mario gabelli of gamco, and you will be taking a tour of asia. would you agree with what jim o'neill said? >> there is a $77 trillion gross world product. europe is 23%. the united states is leading three percent. -- 23%. china is an important element. what you saw in a balance of trade numbers, we are starting to buy more than we did before, exporting less, even though the dollar is weaker. on balance, the united states is the driver, and companies here -- what do china ash what does china need -- infrastructure, water, energy. the concern you have is they managed the downcycle. >> you have confidence and managing the downcycle well? confidence onee way or the other. we are observers. we hope that they do it because if they do not leaders will try to find an external foe to remain in power and that is the philippines or japan, and that is not good. the rising middle class something you are concerned with because that affects the luxury companies you invest in? >> it is a good point. in the world,o you will see indian and chinese individuals, tourists -- how did they fly? that is important for blowing, airbus, and all of the -- boeing, airbus, and all of the vendors. , we should cheer them on it, and we should be leaders. that is important. ge.s also important for american fracking companies going into china. they understand the need for energy. >> alternative energy. >> what does it mean for government sponsored agencies. >> always great. you connect all of the.. >> we try, but we try to bring them back to stocks specifically. you do.w mario gabelli, great to see you. he is sick of reading the annual reports sign up on his desk. >> it is fun. >> that does it for "in the loop ." next week, sallie krawcheck and former studio had that mgm. ♪ it is 56 minutes past the hour. bloomberg is on the markets. i am scarlet fu. start 30 minutes into the of the trading day and we had a risk-friendly jobs report according to a couple of traders, with commodities moving higher. movingies are also higher. an economist says the report was the best of both worlds because it kept the prospect of a selloff and they. he said that fly growth in hourly earnings and lack of downward moving unemployment reminds investors that the fed has plenty of breathing room. the paper continues but rate hikes remain in the distance. we will keep you posted on how markets are trading. we want to move to the story of the day that has to do with high-frequency trading, a buzzword after michael lewis out and he" came said the market is rigged because of that -- flash trades, adding no value to the system and taking money out of the pockets of retail investors and even institutional investors. we will check in with mike reagan, and you have written and edited a lot of stories about high-frequency trading. what you think about what you have heard this week? >> it is surprising, the range of emotions drawn out. this is a debate that has been raging for years. a lot of angles -- not just the latency arbitrage, which is discussed in the book, but all sorts of fairness issues. it was interesting to see the people that have been complaining for years, joseph louis, it really was a "we told you so" type of moment. joe wrote on his blog "i had to pinch myself when i saw everything happened." bill o'brien had an emotional reaction. i sat down with him a good four hours a few months ago. a very cerebral, loki -- i would not say laid-back him about mild-mannered. to see that much emotion was shocking. >> interesting. given that you have done so much work on high-frequency trading and you know the big players, having covered them for so long, what did you think of the book? did you read it, and did you walk away feeling michael lewis captured what is going on? >> first of all, michael lewis is an incredible writer. >> his ability to tell a story -- unrivaled. >> unrivaled. as we heard the book was coming out, we spoke to a lot of guys, exchange executives, none of them had really heard from him. it is clear he focused on the iex story and did not go too far to look on the other side, which is part of the reason he is getting criticism. >> looking ahead, now that it is brought up and the attention is back on it, what are some of the potential regulatory fixes? >> the most important thing to remember is that is a result of regulation overhaul, ironically. the interesting part of the iex story, it is the market solving the problem for itself. investors really believe iex is the place to go. right now it is a microscopic market share -- 18 million a day versus six or 7 billion on the u.s. market. as he continues to grow, i think the market will solve problems on its own. >> a market solution. thank you, mike reagan. the brick stocks editor. "market makers" is next. >> chuck hagel, the pentagon chiefs it's done with peter cook in a bloomberg inclusive. he has a lot to say about the confrontation with russia and vladimir putin's next move. j.lo beats her ex-boyfriend in the battle to acquire fuse tv which means she can expand her cable network targeted at latinas. online food company grubhub soars in its first minutes of trading.

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