Since the summit started in germany yesterday. Police say 196 officers have been injured during the two days of clashes with activists. Global news 24 hours a day powered by more than 2700 journalists and analysts. I am Alisa Parenti and this is bloomberg. Caroline i am Caroline Hyde in london, in for emily chang. This is bloomberg technology. Coming up, the Silicon Valley view on the june jobs report and the outlook for tech workers with the increasing threat of automation. Russianators say hackers are chief suspects in a breach of u. S. Power plants. We will look at how they may have pulled off the cyber attack and the potential endgame. Samsung reports a Second Quarter for the ages. Can it maintain momentum . We will discuss. First to our lead. June payrolls coming in strong, 222,000 positions added. That beat forecasts. But wage growth weaker than expected. Check out this chart on the bloomberg. In the white line, u. S. Average Hourly Earnings change year on year. June up 2. 5 . Month on month, just a. 2 increase. We are seeing the lack of inflationary pressure. Areworkers underemployed the workers unemployed or perhaps technology is allowing employers to hold down wages longer . We are joined by andrew economist atchief a massive jobs database. And our guest host, david kirkpatrick, c. E. O. Of techonomy. Im focusing on the Silver Lining and the numbers. More people joining the labor force. When we look at bloomberg analysis, it looks Like Department stores, telecoms, these are the biggest job losses. We are seeing disruption affecting jobs at the moment, arent we . Absolutely. We know bluecollar jobs are clearly going to be affected. What many people are not talking about is that whitecollar jobs will be affected also. Loan officers and other whitecollar roles increasingly being replaced by apps and software are at risk as well. We see an indication of that today. Caroline ai becoming more prevalent and relevant. David, is the u. S. Ready for this . I dont think the u. S. Is ready for it. Before i make another comment, i want to say we absolutely need to have policy and investment to accommodate the reality that job dislocation is going to become pervasive across the economy, including whitecollar professions. But there is an irony about the handwringing in Silicon Valley about job losses because of closerion given we are to full employment that we have been in a long time. We dont have enough unemployment. The time to be having this concern is a slightly odd one, nevertheless we look forward and to this odd conundrum. Near recordg amounts of employment at the moment. However, we are not seeing any wage pressure building into the system. Can you talk about the underlies and underlying reasons for this . Perhaps it is not automation feeding into this yet. Underneath the 2. 5 wage growth, there is a lot of diversity. It is misleading to focus on the topline figure. It depends on what city youre in and what job youre doing. That determines your wage growth. Health care and software, they are seeing wages rise at 3 to 4 per year. Manufacturing and Design Engineers are seeing wages falling. Excessive focus on the topline figure does miss the fact there are labor shortages in places like San Francisco and not like atlanta and houston. Caroline how do we read into this on a more general basis . How can policy help . Is it by helping people move from state to state, to make Labor Mobility more easy . Labor mobility will help. Part of the problem today is we have close to 6 million job openings in the United States. Many people who need jobs are not in the same cities creating jobs. Anything from housing policy to tax policy, anything that encourages people to relocate to where there is work will help. Theres also this issue of training and making sure people have the right skills, making sure universities are teaching what employers need to hire today. I dont think that is happening and why you are seeing things like boot camps to fill in the gaps. Caroline talk to us about the handwringing you talked about in the fact that many are talking about taxing robots in the future. Overall optimist or effectst of this on the on people and the economy . Im an optimist on everything. , you give themey credit for recognizing the profound innovations they are bequeathing to the world, and you mentioned ai being one of them, is clearly changing the job landscape dramatically. They have stepped up and leaders are actively and publicly worried about that. There is no question we need to train people. We need to do a better job of connecting companies to the availability of workers. But it is weird that people do not want to move. There was a study this week i saw that young people are spending so much time on video games, young men, that is one of the reasons they are not working as much. They love just hanging out playing video games. It is astonishing some things happening throwing off the traditional calculations. Caroline wow. Andrew, you are a man all about calculations. Talk of july numbers, the rest of 2017, where do we see the pattern of weeks group going. Do we remain at this stagnant wage growth level . Today marks the eightyear anniversary of economic expansion and we dont see any end in sight. Believerd to we could continue to have sluggish job growth with 8 million job openings. I am optimist about automation. History and evidence are clear. Automation always ends up creating more jobs and raises wages in the long run. I think people should be optimistic about growing automation. They should he happy it allows us to produce more per hour of work. When we will know automation is affecting the labor market is when we see the product to the productivity numbers rise. Today we see slow productivity. With automation working, he would see more output. I will wait for the evidence on automation and maybe dial back fears until we see data. Much,ne thank you very andrew. David kirkpatrick is sticking it out. Elon musks tesla has won a contract to provide what he calls the Worlds Largest lithium battery which will be used to backup australias power grid. The carmaker promises to provide 11 megabits of storage. At the g 20. In Russian Hackers are chief suspects in a breach of at least a dozen u. S. Power plants including a nuclear one in kansas. Bloomberg technology is Live Streaming on twitter. Check us out weekdays at 5 00 in new york, 2 00 in San Francisco, 11 00 in london, 10 00 even. This is bloomberg. Caroline the chinese smartphone maker has turned a corner in sales. They reported secondquarter shipments rose 70 . It is targeting shipments of 100 Million Units in 2018. The smart phone maker which slipped to six in the First Quarter is trying to regain the dizzying growth it wants made as china one of chinas most successful startups. Bloomberg has learned russians may be behind Cyber Attacks a dozen or more u. S. Power plants, positioning themselves to potentially disrupt supply, although there is no threat to Public Safety at. This as trump and putin agreed to look at security threats at the in germany. Mike riley wrote this great story and is joining us from washington now. Still with us, david kirkpatrick. Like mike, talk us through it. Utinave trump and p talking. It looks like Russian Hackers are looking to potentially disrupt the infrastructure of the u. S. What is happening . The confluence of the meeting and the news breaking about the attacks on power plants shows there is a lot going on behind the scenes even as the leaders are meeting. , howrms of the russians you determine these are Russian Hackers, there were private security at the power plant and also the f. B. I. And n. S. A. Multiple sources said all fingers seem to be pointed at russia. The context of this and why the u. S. Government is so worried is in the last two years, Russian Hackers took down the ukrainian power grid two different times. They get more sophisticated as if they are using the ukraine as a testbed for this. When hackers that seem to be connected to russia start hitting a dozen power plants in the u. S. , it makes them very nervous. Caroline fascinating really. I want to get davids opinion. Are you . Rned when we startn losing power because the russians are turning it off . I hope that is not true . As mike went about, cyber forensics are better than a lot of people realize. Ball hacking is a problem, detection is improving. Disagree i slightly about is the fact the u. S. Government is worried. If we were, i think our president would be making this a bigger concern. I dont think President Trump is worried about this even though you could make the case the russian government is waging a kind of war on our economy. If we really are so worried that power plants might start going out his of their behavior because of their behavior, we should be taking action at least in public statements and proceeding much differently than we are. I dont hear that kind of talk coming from washington. Caroline mike, is there talk coming from washington . Can you paint some background . You did some great Investigative Journalism into what went on at Wolf Creek Nuclear site. The first point is we are in a relatively unique position. People in the National Security part of the government that have to think about the power grid are pretty worried about this. But by all accounts, President Trump does not particularly think the russians tried to influence the election. As a result, i think that means the way he views any of these claims are going to be clouded by his sense of what hackers, especially Russian Hackers, did or did not do during the election. It is a unique position for the government to be an and does create this split personality within different parts of the government. In terms of what the hackers did, the u. S. Government did send out, and they do this in situations like this, they sent out a warning to utilities and stakeholders with a lot of information about how they could detect these same hackers in their systems. One of the things that was clear is you could see the malware the hackers were using to get in to the Office Computers seem to be scanning internal parts of the network looking for connections between those computers and control systems. It is the control systems that would control turbines and other things. As far as we know, they have not been successful. The concerned the government put out was they are worried these guys are going to burrow into these networks which might give them the ability to pull the trigger on something more serious at a time of their choosing. Caroline fascinating amount of depth you managed to get into. David, when you look at the significant global cyberattacks in the last couple of months, are Companies Getting this . Is investment going into this weekly enough and is our government reacting quickly enough . David there has been a big shift in the Way Companies think about cybersecurity in the last two or three years. At the board level, most companies are talking about this. C. E. O. s are on alert this is a big deal. Money is being spent. We have a challenge for public aisle seat and strategy. We need a global treaty on this. We need global discussions among to discuss what is proper and what is not. The fact that is not happening in being discussed as urgent worries me. Mull over plenty to the weekend. Mike riley, great piece. I urge you to go on to bloomberg. Com and read it. From theocks rebounded biggest selloff since may closing out the week with the gains. Feature i would like to bring to your attention is our new interactive tv function. You can find it at bloomberg of them tv on bloomberg. This is for bloomberg subscribers only. This is bloomberg. Caroline a new note from the j. P. Morgan analyst says twitter continues to make positive product changes. That includes the interface updates rolled out in june. The also expects more engagement to translate into ad revenue growth. J. P. Morgan still has a neutral rating on the stock. Tech stocks ended the week on a high note in the United States. The nasdaq recovered a bit from losses last week. Here for more reaction, lets bring in abigail doolittle. Still with us, david kirkpatrick. Take us through the u. S. Moves. Abigail a pretty impressive session. We saw a nice rally for all three major averages. The nasdaq stood out. More than 1 , led by lots of big tech names, plus apple. All of these stocks have big games on the day and did not appear to be driven by anything on a mental outside of a boost in confidence and optimism, probably only betterthanexpected jobs report. Lets look at the Group Function return. Up 17 safe the up 17 . Up in a big way. A solid day for technology. Lets put this in the context of the pullback. We still have the nasdaq down about 3 from the last alltime high on june 9. This is just the best day since last wednesday. Investors not sure they want to be buying the dip or still cautious. Time will tell. We still have earnings season again. Atope, we saw Technology Number two. It was up on the week. Asia was down for technology stocks. Ang. Ail mentioned f are you a buyer when we see this dip and volatility . Mind, my company is called techonomy. Im a big believer this is the way the economy is moving. In general,e i would buy on the dips, especially for Great Companies not going anywhere in that show every sign of consolidating more profit for them and perhaps at the cost of the rest of the economy. Techonomy, Technology Technology is the future of the u. S. And global economy. It is as simple as that. Caroline abigail, you kept a close eye on the volatility we are seeing. Talk us through how it is across the board in sentiment. Abigail it is pretty fantastic what is happening relative to volatility, especially volatility for tech. Kevin kelly was making a big deal of the spread between the x and the other vix. Down andhe s p 500 vix 11, near alltime lows. You made a big deal of the fact the s p 500 vix dropped below techech vix core the vix dropped below the s p 500 vix. It has given that some of the gains. Vxn near 17 could be a towel on overall volatility for the markets, perhaps led by earnings season. Something to keep an eye on. Talking of volatility, when only needs to see the 8 billion wiped off the market cap of tesla this week. Good job as always, abigail. David kirkpatrick with techonomy, his favorite word, sticking with us. We look at samsungs historic earnings report. How the Company Continues to thrive despite crises knocking at its door. You can listen on the Bloomberg Radio app and in the u. S. On sirius xm. This is bloomberg. Alisa i am Alisa Parenti in washington and you are watching bloomberg technology. Lets start with a check of your first word news. We want to begin by taking a live back to hamburg where police have resorted to Water Cannons in an effort to contain protesters at the g 20 summit. Nearly 200 Police Officers have been injured in clashes with thousands of protesters. World leaders gathered for the talks have condemned the violence. These are live pictures. We will keep you posted if there are further developments. Hadidents trump and putin their first confirmed tweeting today in hamburg. Trump confronted putin. Russias meddling in the Election Campaign which putin denied. Russias economy minister says putin also complained about economic sanctions. Both leaders discussed how best to move forward. They had a robust and lengthy exchange on the subject. The president pressed president putin on more than one occasion regarding russian involvement. President putin denied such involvement, as i think he has in the past. The two leaders agreed this is a substantial hindrance. Alisa the Russian Foreign minister was also at the meeting. Secretary tillerson said the russians asked for proof and evidence of moscows involvement in the 2016 election. The u. S. And russia also announced a ceasefire for southwest syria in an increased effort to stop the civil war. U. S. Officials say the agreement would take effect sunday at noon damascus time. Angela merkel arrived at a concert hall in hamburg for a show and dinner with other World Leaders during the first working session of the summit, the chancellor said the countries must Work Together to solve the worlds problems. The bigl know challenges and we know that time is short. Therefore, solutions can only be found if we are ready to compromise when we approach each much without giving up too because there are differences as well. British foreign secretary has traveled to the middle east in a bid to end the political crisis with guitar qatar. His first stop, saudi arabia, one of the First Nations to cut diplomatic ties. The European Unions bailout authority has approved a 9. 7 billion aid package for greece. The majority of the funds will be dispersed on july 10. Global news 24 hours a day, powered by more than 2700 journalists and and lists in more than 120 countries. I am Alisa Parenti and this is bloomberg. Is bloomberg techno