Jobs Report Surprise: Market Makers (07/05)

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July 5 (Bloomberg) -- On today's "Market Makers," Erik Schatzker and Stephanie Ruhle use analysis, insights and A-list guests to help set up your daily market trades. (Source: Bloomberg)

From the valley.

We will also be talking to toby kross growth -- cosgrove who will also be at the sun valley meeting.

That is next week on bloomberg television.

We are about half-an-hour into the trading session.

We have we have you covered on bloomberg television.

"market makers" starts right now.

Jobs report surprise, payroll grows faster than expected in june despite higher taxes and government budget cuts.

The bidding war for hulu.

Will the online video hub miss out on a big wave of media m&a? having a blast.

The industry always hoping for explosive growth.

We look at the challenges facing the fireworks business.

Welcome to "market makers." i am scarlet fu.

Tom keene is joining me this morning.

It is a huge morning.

Let's recap for everyone, the u.s. economy added 195,000 jobs, more than expected.

Big revisions for the prior month.

Unemployment held steady at 7.6%. this is a huge positive report in so many dimensions.

We do want to jump into the newsfeed, the worlds largest smartphone maker came up short in the second quarter.

Samsung reporting missed analyst estimates, selling fewer lxes4 phones than expected.

Later on we will let at -- ask cory johnson that.

The dreamliner, new routes in long-haul destination such as asia.

42 true minors have been ordered by reddish air.

That makes the aircraft well suited to new destinations initial domains could be modest.

A report that rupert murdoch knew for years that journalists at his british newspapers were paying public officials for tips . that comes from a recording of murdoch and a journalist and one of the papers.

For its part, news corporation said murdoch never knew of the payments until the company disclosed them to police.

The deadline for bidders wanting to buy hulu, what a train wreck this is.

Seven bidders.

We will talk about why there are likely to be fewer than the seven this time around.

Will yahoo be part of the hulu bidding?

This is amazing.

Going once, going twice.

And the industry is changing so fast.

Also coming up, a husband-and- wife who helped run one run one of the world's most grim and it fireworks -- most prominent fireworks companies.

Fireworks look fun, but it is a pretty tough business.

There is a competitor, china.

Books absolutely.

Jobs report, did.

-- jobs report, stronger than it.

It reaffirms what chairman burton bernanke said.

More than anyone, he has been pro-bernanke about what is ahead for this u.s. economy.

What does it signal to our viewers worldwide?

Box that the u.s. economy is poised to expand further in the second half of the year and the risks to the consensus with outlook are skewed significantly to the upside.

We have two parts.

The tapered talk which is on portfolio machinations within the ballot sheet and we actually raising rates.

They begin in september.

When would they begin to raise rates to help retirees and their savings accounts?

I think that is still years away.

What i will say is the interesting thing right now is thomas tom, in the employment report, the participation rate is moving out.

That will make it more difficult over time to bring the unemployment rate down because we need much more job growth it participation -- we have 200,000 moving.

To me, that is better than good.

Are you saying this is not a great job economy?

I think an absolute sense, it is not not a great job economy.

In a relative sense, it is improving.

I think the risk is, yes, the fed is likely to tapered september, but they may continue to buy for longer than people currently expect.

We know you are bullish on u.s. economy, but there is a debt of 6000 manufacturing jobs when you look at the latest report.

Retail and hospitality made up 57%. there's a question over the quality of the jobs and traded weather than the quantity.

I think that argument comes up in every cycle when job growth is too good for the bears and they continue to peddle that argument.

First, it if you look at leisure and hospitality, it has been rising steadily since the 1950s. does that mean our living standards have been declining for the last 50 years?

I don't believe that.

If you look at aggregate hours, wages.

Wages rose pretty nicely last month.

Let's bring in michael mckee, our chief economic correspondent.

Linking better than good jobs report to the dow jones, to economic growth.

Alan krueger on with betty liu, do we have a three percent gdp economy?

Hard to say yet.

We're moving in that direction.

The missing agreement has been business confidence -- the missing ingredient has been business confidence.

Will it translate into enough spending to lift the economy?

Hard to say.

The feds forecast has been optimistic for you let's hope they are right for a change.

Krugman saying, do something.

200,000 jobs per month.

It depends on what you're focused on.

If you're focused on the absolute are forms of the labor market, that is not what anyone wants.

It is significantly above nero.

Was that a market makers?

Jargon alert.

Jargon alert.

Basically, the not accelerating inflation rate of unemployment.

In financial markets, i am worried about the relative increment of the weber market.

Where is the market thinking things will be in six months and where do i think it will be in six months?

I think the market is probably expect a continued 175,000 implement growth from now to your in.

I think it will be better.

We don't necessarily need that are economic numbers for the fed to start reducing or pulling back on stimulus, we just need not disastrous numbers . i think the tapering is low.

It is about the cumulative stock of progress toward the fed labor market objective.

We are on paste at anywhere between julian to 2.5 million -- between 2 million to 2.5 million.

Is he the dominant theme of the fed right now?

He is one of the intellectual centerpieces.

He added jay powell have started to add their voices, speak out on what think the fed should be doing.

There is going to be a bit of a vacuum when ben bernanke gets close to the end of his term in january.

The good point about the threshold for tapering.

The fed is says because they want to taper, they don't care if the economy gets any better.

This is good enough for them where they are right now.

The doom and gloom you're been pushing back against, i can see the e-mails coming in right now, you guys don't know what you're doing.

Guess what, gold down $40. what is the doom and gloom crew?

How many more rallies to we need to satisfy these people?

How many 200,000 numbers do we need an jobs to satisfy these people?

At the end of the day, the economy is in a cyclical recovery with a benign inflation.

Simple as that.

When you look at hourly earnings, up .4%. we have been here before and have seen it fizzle out.

Is it sustainable?

The catalyst for growth is simple.

Shocks dissipate.

You had a depressed housing market, ongoing belt-tightening in state and local governments.

And the last three years, significant consolidation federally.

Are these shocks getting worse or better?

If the economy grew with all of those shocks, which are not there anymore, it is reasonable to understand they would move up.

What does it mean for business in america?

What does it mean for corporations?

They've been doing better better than good the last four years.

Will workers finally get the wage increases?

It does not feel that way for those out of a job and looking for work.

Michael mckee, our economics correspondent.

Coming up, who will get hulu at a time when content is king?

Will we see a bidding war?

That story coming up.

The first family of fireworks.

If you saw bombs bursting in air last night, there's a pretty good chance you saw this family at work for you and -- at work.

? this is "market makers." the hottest bidding war in media faces a big deadline because offers for hulu may be due today and they're scribbling to make best offers in the hopes of landing the media giant.

For a look at that, we joined by our deals reporter.

Still a crowded field.

We have seen some fall by the wayside, but there are still some strong ones in there with deep pockets.

The ordeal has been quite -- it is an ordeal.

You had the bidding process that failed about a year ago and this one looked like it went off the rails at various points, now it seems like it is back on.

Who are the deep pockets?

Time warner, directv.

It is important for them to hedge against the declining pay- tv audience.

Very important.

Also a former fox news.

If they are getting to watching saturday night live on hulu and jeff bice hulu, can they still get nbc on hulu even if time warner owns it?

That is a big question.

That is part of the complication.

Even though disney and news corp.

Own this and also comcast owns hulu as well, they're going to be somewhat reluctant to get further in mashed with the content distribution people because they have to negotiate with those providers on various things.

If you're giving them the content as well, then they have for the negotiating leverage.

Are these guys too late because netflix has done so well gekko -- done so well?

Does that make hulu yes valuable?

Hulu has been a bit of a mess because disney and news corp.

Have had stood she do it -- strategic differences of what hulu is about.

Do you let others provide content or just leave it exclusively to the owners?

Whoever owns it next is going to decide what hulu is going to be.

We heard talk about yahoo maybe being in the mix.

Does that seem likely and does it make sense?

It is interesting because we heard yahoo was around this, now hearing it is not that interested her he had one of the main reasons is it had already made a splashy acquisition into tumblr.

Were so myers has been making a lot of deals.

She has.

But behind the scenes she is been doing smaller acquisitions, companies like quickie and big noggin.

Very little common themes thematically between these companies.

One does mobile video, the other is more of a fantasy gaming platform.

What is the strategy?

That is the question.

Some say, she's going after population were companies that provide content that people want.

The question is -- on july 5, great jobs report, things look great.

Where is m&a for the next 90 days?

Do they come back in labor day?

The fact interest rates may remain low would be a positive sign for the m&a market.

We have seen depressed volume all year long.

The first half of this year compared to last year at this time, m&a is down.

But not in the media industry.

But in general.

Overall.

Executives are very cautious about paying too much.

Equity valuations have gone through the roof.

Do we take off until labor day?

She cannot tell you that.

If you don't book the deals basically for the first eight months of the year, they don't count because they probably won't count -- close before the end of the year.

We could see a bump, but closed deals, we may still be down three at -- could be down.

Sluggish so far.

Thank you for the latest on hulu.

Coming up, risky business.

When more companies believe the government is hazardous to their health.

That is next on "market makers." ? good morning.

I am here with scarlet fu.

The dow jones up one after that jobs enthusiasm.

Do you think everyone has exited the trading floor?

Last summer, exceptional heat and the lack of rain but to drought conditions across much of the united states and canada.

The former almanac tells us many areas are expected to see hotter than normal temperatures this summer.

Certainly, we have seen that out west.

Carol massar has experienced 115 degree heat.

This is serious.

It is serious.

We talked about our stressed power grids.

Based on the forecast, more heat means more air conditioning so we will be tapping into the power grid.

Last weekend in southern california, one of the largest electric utilities out there, urging customers to be conservative in terms of power usage to already reduce some of the strenuous -- strain on their already strained system.

Other regions in the u.s. are facing tight supply.

In new york and east coast , in the lone star state of texas, you are the most stressed out.

Why is that?

A lot of power usage, a lot of people.

We talk about infrastructure, old grids.

There was a blackout in the 60s and i remember staring out the window -- we remember the one from 2003. is the nation any more prepared than it was when something bad happened, i think in ohio, when it took out the entire northeast?

There is an increased awareness and this plays into the whole infrastructure, whether you're talking about bridges and buildings in the power grid.

People are aware there is more usage so there is an increased awareness and understanding we need to commit money to it.

We did go through the power grids.

New york, texas, and california have their own power grids.

We did a comparison between energy demand and the available resources out there.

Look at texas.

If demand in that state from electricity peaks this summer, they may lack needed power.

They are almost one percent below what will be needed at peak.

They are incredibly stressed out.

In new york, almost a two percent surplus.

California has about a 2.4% surplus.

That shows you a very slim margin that if -- not a whole lot of room for you and what does this mean for energy prices?

We see them down, interestingly.

Looking at the forecast, an average bill of june, july, and august to be $400. i am one of those people with the fans.

This is bloomberg data read -- data.

Where does nuclear fit into this right now?

We are not building any plants.

Everyone is scared of nuclear and what it means, but we have to figure out some way because more and more people are taxing the system.

And that is a problem.

It is a political foot tall.

Is there any part of the region that is ok?

The southeast is doing the best.

Florida, tom reed let me look at my number.

They have about 11.8 at peak during the summer, almost 12% extra they can kick into the system.

You walked on the streets of manhattan and it will be like 90 something degrees and you walk by a store , likes the fora, which i think is a makeup store, and the doors are wide open and cold air is rushing out.

We have a lot of inefficiency.

We all have to have some awareness of how we can conserve.

That just means on monday tom is going to come in in shorts to the bloomberg studio.

Much more coming up.

Thank you, carol massar.

We will talk about egypt, bracing for the next up in the showdown for the military government.

? tom.

Good morning, this is "market makers." huge moves in the market after the jobs numbers.

We have a higher yield this morning.

I read annual reports in my spare time.

The pages devoted to risk are one of my favorite parts.

This is off the charts.

Companies are seeing the government as more of a risk than never.

This is based on government data.

Annual reports of about 60 companies.

What is interesting, bloomberg government found more than one quarter, 27% to be exact, of the companies they looked at site a government risk whenever they discussed the risk factors.

Risk factors could be anything from increased regulation or changing regulation to the central bank's role to the political paralysis we see in washington, whether it is sequestration or the debt ceiling or health care changes to the law there as well.

I would agree it is out there and overemphasized.

You have to put in a risk factor like the kitchen sink.

Anything and everything.

But you have to admit the government plays a bigger role than ever, especially in the last few years since the recession.

If you look at the industries cited the highest, the defense industry.

Military contractors.

41% cited government risk in their 10k, and all reports.

Also the healthcare industry.

Obamacare.

Washington-based legislation as well.

On bloomberg radio, telling us dodd frank is only about 36% implemented.

You have not only the obvious risk come up with the implementation risk and you see that with the affordable care act, portions of that being displayed -- delayed.

The companies that did not blend the government as much in the risk factors, technology and industrials.

The risk could be that samsung does not sell enough units.

It is amazing how the equity markets pullback this morning.

Great jobs report.

Victory lap for chairman ben bernanke.

You have to remember, it is the day after a holiday and a lot of people are off, so there is a lot of volatility.

The real test will be next week.

I agree with the economic data next week and also your desk is percolating in the background.

Much more coming up, including the place where employees always have a blast.

The future of the fireworks industry with the biggest name in the business.

? good morning.

"market makers." where were you the first time you went to fireworks?

Wow, new york city last night, always spectacular, but truly becomes a worldwide phenomenon including what we saw in egypt over the weekend.

Tom keene with scarlet fu, in for stephanie ruhle and erik schatzker.

Wind issue return, 2017? no, next month.

With us are two people who help put on plenty of fireworks displays last night, 16 in fact, fireworks by grucci, a family operation lighting up the sky sent 1870. it is a sixth generation family company originating from southern italy.

They are husband and wife.

Donna, you're just saying this is like your super bowl event and yesterday was a big day for you.

You have two more days.

We still have tonight with many shows on eastern long island and tomorrow also.

Why is that?

Whenever the fourth of july falls for the middle of the week, we get two bangs because we get the weekend prior, the fourth of july holiday, and the weekend after.

People tend to like to have those friday and saturday nights.

Resell the accident last night in california and we all know about that, we know about the danger involved.

Is it any safer with you as a six generation maker going back to 1870? is the business any safer than 10 years ago or 100 years ago?

Most definitely.

There is a lot more rules and regulations.

You are allowed to jump in here, sir.

Just ride right over me, it dear.

It is not a good idea.

Did you sleep at all last night?

We were up until about 1:00 when we got home for what we were doing.

The bottom line is, it it is plastic or paper -- it is black powder.

We don't need the graphite.

In strict terms, it is black powder.

Is it cheaper?

Safer?

No, gunpowder is only used in rifling.

You don't need to do that with fireworks.

How is black powder safer now than when we were kids?

By the way we fire the fireworks.

The technology through the course of the generations has changed drastically.

Everything now is basically computer-driven.

Or is dumb or going over and lighting a and possibly endangering -- these are your fireworks you put on.

This is the palm in dubai.

The largest program we've ever done in our history.

The largest display in the history of fireworks.

You can see the scale.

To choreograph this?

I my nephew phil grucci who is now the ceo of fireworks by grucci.

We are retired, we retired in december, but we are still here.

You are still working.

The plan was not that great.

When you look at what you do and you look at the danger involved in the excitement, what i come back to is someone is going to call you up from a small town, some rich guy is writing the check for my watches bloomberg every day and says, i want to spend 48,000 dollars.

What do you do with someone who tells you what to do you go do you say, we have been doing this for a while.

Or do you try to meet their needs?

Both.

First of all, you listen to and see what they want, then you find a program to meet those needs.

The majority of our shows are from private clients.

Their are not many government lee sponsored shows left in the country.

It is sponsorships whether corporate america or people who are wealthy, but very of the governmental programs, probably reduced by 90% in the last two decades.

What do you see now when you look at the fireworks as an economic indicator, business indicator?

Is it on the rebound?

Definitely.

The phone is ringing, which is good.

We have had a banner year this year ourselves.

We anticipate the end of the year, very large orders coming in.

Most of the fireworks out there, the bulk is imported from china.

Yours is made in the u.s.. how do you compete effectively against the chinese?

We do still do importing from china, but we shop the world.

We also go to japan, italy, portugal, spain.

Fireworks are made in japan?

Yes.

Which color is the toughest?

Blue, purple, because of the two hues.

The quick answer is purple.

You have the combination of the red and blue and those are two mysteries.

Those have not changed.

They are ageless.

Where is the next innovation coming from for the fireworks industry?

The average person probably cannot see it.

The average person goes to the fourth of july and they don't care what we do as long as it is up there in the sky.

Women like color, men like boom.

Surprise, surprise.

The personal story that goes back touching fireworks from a small village up close, and one of the guys we are with fought in vietnam read he went into the whole shellshocked thing.

Those booms we see with fireworks, or the equivalent to the military boom or is it less?

Much less.

Much less than what our soldiers -- absolutely.

It is a high decibel level.

The italian style, our grand finale, that sets us aside in many programs.

The large window rattling, chest banging.

Cannot have a great show without the grand finale.

The features are those booms.

Very good.

Thank you so much.

Gruccis, your clinic on fireworks, most interesting.

Look for their fireworks through the weekend as well nationwide.

A showdown in egypt.

Supporters of the ousted president call for nationwide protest against the new military appointed government.

That is next on "market makers." ? good morning.

It is not a coup, it is an ouster.

We will talk about that in a bit.

This is cairo, two days on from the drama, the huge crowds we saw in front of the presidential palace, the military present.

Look like people are crossing the streets.

This is cairo.

All in all, peaceful.

Certain amount of tension to be involved as well.

This from egypt.

It is "market makers." good morning, everyone.

We go to the head of middle eastern country risk at the lexington, massachusetts research firm, joining us from london.

Good morning to you.

Thank you for having me.

There's so much to speak about, but let me get to the immediate moment.

Tammy islamist supporters mount a collegial counterattack against the military ? can we see a rebuttal in the coming days?

We can see violence, a lot of it both from the side of protesters and also from the side of armed individuals, but they cannot take on the military and the opposition to president morsi and actually win.

No, they would not be able to defeat the odds against them.

But the lesson for the islamists, the muslim brotherhood, they would never be allowed to obtain power through the ballot box given what has happened this week.

That is -- some of these are leading into that, yes, which is why we're saying we're going to see more terrorism in egypt, more attacks against state security, against the army, they can seek judiciary, maybe some politicians, but i think there is also another big chunk of the islamists, or example, the salafists who won about 25% no last parliament reelection.

These guys are fully on the side of the military back the removal of president morsi up intent to participate in the next round of elections.

It is not that all of the islamists are backing morsi.

They are divided, which is why some will turn violent and some will remain in politics.

The idea of drawing back in the rest of the arab world into a dialogue with egypt.

The events we have seen in the past 48 hours, can we think the new military and whatever leadership there is has a closer affinity with saudi arabia than they did a week or month ago?

Absolutely.

The saudi king was the first person to congratulate the newly appointed egyptian president and he was closely followed by the foreign minister.

To me that means you're probably going to see more aid from gulf countries coming into egypt in the next weeks and months.

Critically, can the hb lead in to support -- can the aid be linked to support from the u.s. separately or do the act in concert with other arab nations?

The united states has been very careful not to use the word coup because of the implications under u.s. law.

You cannot provide aid if there has been a coup.

I think u.s. position right now as been to keep giving aid to the egyptian military in order to ensure they still have a say over what the egyptian military does.

Given how much the egyptian army is dependent on u.s. weapons, this is probably going to be the case.

Then who within the egyptian military should we be most concerned about?

Who should we be looking to in terms of setting the tone?

The egyptian military does not break with its command.

So whatever the general into saying, it will be followed.

Over the last few months, the commander of the second egyptian army and the third egyptian army who are stationed in port said and elsewhere, they've been making an effort to back the protesters making an effort to make sure they're on the side of the anti-muslim brotherhood road testers.

The head of the central command deployed his forces to protect the immediate production city.

They are a cohesive unit and speaking with one voice.

It is the rank and file where you larger number of people who have some affinity with the islamists.

So far the army has not had to deploy conscripts to the street.

It deployed more reliable units generally from some form of special forces over the other.

We saw some scenes of cairo and it looks fairly peaceful right now.

Is the reason to be concerned about the pro-muslim brotherhood protest?

Yes.

I think, what i was just seeing, they were heading from where their holding a protest for the presidential guard where they think the president is being held.

To me, this says there's going going to probably be violence.

We have already seen a number of attacks on police stations in egypt proper as well as sinai.

We're looking at more violence by a faction of the islamists.

We focus on the islamists right now, what is the cohesion of the secularist within egypt?

The only thing they agreed on was that president morsi should go, but the opposition includes a very broad spec room.

You're talking about former mubarak supporters, talking about liberals that -- by a bear day, -- elbaradi.

They do not have a united agenda or an agenda to bring egypt out of its economic crisis.

Like i said, there's very very little they agree on other than we need to stand up to the brotherhood.

Thank you so much, very informative.

Thank you for having me.

This entire interview will be on bloomberg video coming up area did it takes about an hour.

A lot of information.

Something else we're watching, the reverse of the british invasion of the 1960s. they sent us the beatles, we're sending them burgers.

? this is "market makers." you can call it the battle of the burgers.

A fight between two popular american companies opening in london.

Shake shack, opened here in new york in 2004. 300 meters away, five guys.

It actually got a jump on the competition.

By last night, there was a three hour wait for a table in london.

Shake shack opens in london today.

You have never had a shake shack.

I love five guys to death.

Every time i go to shake shack, the lines are vast.

Probably because you're going to madison square park and that is where all the tourist saar.

-- tourists are.

It cannot be good for you have it taste so good.

You should limit yourself to 10 week.

Was going to say one a day.

But you wonder why the mcdonald's and the -- mcdonald's is too busy working on healthy offerings.

Five guys, shake shack.

We will be back in just two minutes.

We will take a look at one side effect of a stronger labor market in the united states, workers who feel free to quit their jobs without another one lined up.

You are watching "market makers." ? . . this is "market makers" with erik schatzker and stephanie ruhle.

The job market picks up steam.

The economy shrugs off government cutbacks and expects to -- creates more jobs than expected in june.

The new anthem for workers, a growing number are now saying "take this job and shove its." would you where these?

Unhefor pro golfers, there is nothing casual about what they wear on the course.

I am in shock over those pants.

Welcome to "market makers." i am tom keene.

Scarlet fu is here with me.

We're in for erik schatzker and stephanie ruhle.

I saw stephanie on social media.

Yields moved dramatically.

Dramatic change in what he will see in your home mortgage with the next 30 days.

The highest since august of 2011. gold is down $38. these are big market moves.

We need to get ready for monday.

The reason these big moves are taking place is -- let's go into the new speed.

A surprisingly strong jobs report for june.

The economy added 195,000 jobs, more than expected.

A revision added 20,000 more for may.

The unemployment rate stayed at 7.6%. we will be speaking with the deputy chief of staff under president clinton.

European central bankers are making it clear they are breaking with ben bernanke when it comes to interest rates.

The bank of england and the european central bank indicated they will keep rates low for longer than anticipated.

The fed is getting ready to a slowdown its stimulus.

China is making it tougher to analyze its economy.

The chinese have suspended the release of data from manufacturing purchasing manufacturers.

Authorities say there is not enough time to process the information.

Earlier this year, there was concern about chinese numbers because fake invoices were used to inflate trade numbers.

It goes back to whether you can trust the numbers out of china.

Have we come to a saturation point for smartphones?

Samsung, the biggest smartphone maker in the world, a second quarter earnings came up short.

They sold fewer phones.

We will go to the west coast and talk about what is going on with the galaxy.

This is a challenge.

It sets up apple.

They desperately need to get to the new product.

Maybe there's room for more competitors.

Here is something you would not have thought possible a year and so.

People quitting their jobs even though they do not have another one lined up.

Some see more jobs coming in the economic recovery.

Is it too early to do that?

We will discuss with a pro.

It is one of the statistics in the report.

It was a very bullish statistic of people having confidence.

We saw 195,000 with the revision.

Talk about the broader job landscape and a large part of american not participating.

Karen was a former deputy chief of staff to president clinton, the chief executive officer of blue star strategies.

Good morning.

We talk about two americas.

There is a better job economy.

Have we seen the structural job economy improve or is it still is about cyclical improvement of elites?

There has been improvement.

You cannot deny this is a strong jobs report.

It is not robust enough.

We have some cyclical changes . the bars and restaurants are up.

We see that as we get into the summer months.

There is still under-employment.

A lot of part-time employment . the 7.6% number has not changed.

You are the founder of the global fairness initiative.

When we talk about a new fair and the state of american labor, where are the full-time jobs going to come from?

Everybody wants them.

They are not out there, are they?

The full-time jobs we used to sea with insurance and benefits and vacation, those are not coming back you are seeing a lot of casual employment, hourly employment, contract employment.

That robust structural , a steady job you can rely on, those are not coming back with the type of certainty we would like to see in the market right now.

What about jobs in the public sector?

We saw a loss of 7000, a lot linked to the fiscal tightening.

Are those coming back?

This is a very important point.

Here is where government policy makers can make a difference.

They have chosen not to.

You see the private sector is slowly but surely investing in private sector jobs.

The reason the numbers are not moving on the unemployment index is month after month we see public sector is shedding jobs.

Government can make a difference.

It is choosing not to.

It is choosing one policy, deficit reduction.

I think over the long haul, that is not a wise approach.

With tax receipts ready to go up, do you see that changing?

I do not because i think a lot of governors see deficit reduction rhetorically as more political security for them.

It takes a lot of leadership to talk about a long gain -- the long game and investment in human resources.

How would you suggest your democratic party advocates for that kind of leadership?

What needs to change for the democrats?

I think president obama has talked about the long game.

I think the real problem is not on the executive side or anyone running in 2016 on the democratic side.

I do not think there will be a deficit in leadership or message.

I think we have a crisis in congress.

I do not see leadership coming out of either party.

They are playing a very short game.

I do not think that is good for the country.

The white house delayed the employer mandate provision of the health care law.

Is that good for the jobs market in the next year?

Is that good until 2015? i think most employers that are affected by obamacare and the change in health care policy are already providing health care insurance for their employees, the vast majority.

I think it does put a bit of certainty.

I was watching your commentary.

You talked about the risk in companies seen the government as a risk factor.

I think the extent to which president obama and his team can put forth the policies they are going to be falling over the next couple of years, that is all for the good.

We greatly appreciate it.

She is the executive officer of blue star strategies, formerly with president clinton.

The debate about getting beyond 2014 is germane.

There is no long-term thinking.

People are fixated on that number, the 7.5% or 7.6% because of what ben bernanke has said he will do.

You mentioned hamburgers.

I am fixated.

Let's move on.

President obama did meet with his national security team yesterday to discuss the ousting of the egyptian president mohamed morsi.

Hans nichols has been wrapped up for us.

What are you hearing?

We are not hearing the crucial word "coup." they have not made an announcement on whether they have determined the ousting of president morsi amounts to a coup.

Military and economic assistance is in the balance.

We have a test of the relationship.

That was always the way the u.s. and egypt operated going back decades.

Commanders coming over here attending our military academies, going back and forth.

Secretary hagel is reaching out to his counterparts.

John kerry is reaching out to his.

In the past, you have seen the white house and obama administration be flexible.

Remember march of 2012. this was 13 months after the initial ousting of mubarak.

The white house made the determination everything was going according to plan towards democracy.

They released $1.3 billion at the time.

What will be the linkage of the white house projection with other arab nations?

Are we doing this in a vacuum?

Are we going to do it with saudi arabia and the uae?

There are direct conversations going on between secretary john kerry and his counterparts.

You will see an effort to put this in the context to have the gall state allies on the same page.

If they are not burning up.

Of fire miles, they are burning up telephone time.

It is not glamorous or exciting, but this is what it is made up.

We will see how successful they have been.

Greatly appreciate it.

A busy day at the white house.

We will talk more about the showdown of in egyptian politics.

It is not a kook.

We will speak to a secular critics of the ousted president.

-- it is not a coup.

Are you having a bad day?

It could be worse.

We will tell you about the billion that lost 1/4 of his fortune in one day.

This is "market makers" on bloomberg television.

? "market makers" from new york city.

Tom keene and scarlet fu.

A momentous week in egypt.

The focus has been on islamists.

There is secular politics as well pushing against the islamists and in some way, our relationship with the military.

Joining us by telephone from egypt is an egyptian politician and great supporter of the secular movement, and outspoken critic of the ousted president.

Good morning.

What do the secular institutions need to do next week?

What is the to do list for the secular movement?

The first thing is to defend the imprisoned muslim brotherhood and make sure they get fair treatment.

They should be released.

There are no accusations of mattel and -- military or security breaches.

They should be released immediately.

We do not want to use the same methodology they were using.

The reason 30 million people went to the streets of cairo is because they were opposing mr.

Mors becausei he was not adhering to the democratic rules.

He rejected the rule of law and order.

He did not obey the constitution.

The first thing we want to do is to demand fair treatment for these people.

The second point, we want people to understand this is not a time for revenge.

We need to move forward and pushed the economy.

We have more important issues than to avenge the three years we have to suffer under the extremist regime.

Do you need to see outside support for a beleaguered egypt?

How does egypt project itself in its foreign policy right now?

How does egypt speak to the saudis?

The saudi king was the first arab ruler to congratulate the egyptian people on the peaceful revolution.

If 30 million people go to the streets in cairo, you cannot underestimate it.

It was called in military coup.

This did not happen.

30 million people, half of the population of egypt, four times the number of people that elected mr.

Morsi, everybody went to the streets to call for this president to be removed because he has let them down.

We cannot call that a military coup.

The saudi arabian king has congratulated egypt.

They have expressed they will help egypt economically.

We will soon have a delegation from egypt going to meet the countries to support egypt.

Tom asked how egypt speaks to countries.

How does he did speak to investors and foreign companies?

What mr.

Morsi has built to do is portrayed a transparent country that obeys the law and respects the law and has the rule of law and order.

If this will happen, investors in the world will come.

Our stock exchange soared yesterday because of this move.

People want to see a country that is not ruled under a dictator, and respects the opposition, that allows free speech and the minority.

I believe these countries will come back to egypt.

Egyptians are coming back.

My family and everybody will resume investing in egypt.

There is so much lack of distinction in the western world about the nuances of the arab experiment.

You need to avoid algeria of 1992. how do the egyptian people avoid the long term civil war we saw in algeria?

I have to tell you in this specific case, the ones who are threatening repercussions against its own people , they are the minority in egypt.

Itthe foreign media did not cover the events in egypt when they started.

They did not see the picture from the air where the citizens of alexandria joined with even the religious egyptians on the street because we wanted our freedom back.

We want to democracy.

If the west would prefer we have a taliban-type regime so you can feel democracy has prevailed, we do not need that.

You can argue when you send drones to pakistan.

We cannot have jihadi and people who want to terrorize the world to rule our country.

We will never accept that.

Thank you.

We will have to leave it there.

He is joining us on his support of the secular movement in egypt.

This is an aggressive moment for egypt.

They have to sort this out in 24 hours.

Coming up, imagine losing 1/4 of your net worth in one day.

We will tell you about the billionaire that did that.

That is coming up.

? every time we think it cannot get worse, for him it does.

He has never had a day like wednesday.

Scarlet fu has today's latin american work.

In one day, he lost more than 1/4 of his fortune.

Most of it came from a personal guarantee.

The rest of the loss came from publicly traded companies in brazil.

They are still getting hammered.

On july 2, he was worth $4.1 billion.

A little more than a year ago, his fortune was worth $34.5 billion.

He has fallen from 10th to out of the top 200 on the billionaire index.

His oil company has lost 90% of its body.

The bonds have fallen to as little as 19 cents on the dollar.

He has been trying to sell off assets and raise money.

According to people familiar with the situation, advisers say he should think about shutting down the shipbuilding business.

The company says it has no plans right now to close it.

It is a personal story.

In brazil, is about the gdp.

It does not get it done.

The emerging markets are taking it on the chin based on what is happening in china and the u.s. the fed policy has had implications beyond the u.s. from blackrock, he is fairly optimistic about what he sees from brazil.

We have not heard this question for a few years.

Is it time to quit your job?

We will talk to an expert that tells us how to recognize the signs.

That is next on "market makers." ? . . here is a skill that everyone needs.

Knowing when to quit your job.

What are the signs that your dissatisfaction requires follow- up action.

Let's bring in the founder of fashion stake, which was acquired by sap.com last year.

He also co-authored "fashion in purpose or go." you say the problem is most standout jobs because of the way the corporate world is structured, but certainly these days the tepid economy is a big reason as well.

Yeah, that is exactly what right.

If you look at the statistics , about 80% of americans are currently either really dissatisfied, strongly dissatisfied, or does this set aside with her jobs.

I think the economy is definitely a key driver, although if you look at the data in the past five to 10 years, whether we are in a uptake or dad -- downtick, people send to stay in jobs they hate.

He say a couple of signs you should be looking for is if you do not what your boss was a job, that is an indication you should move on.

Exactly right.

We did a bunch of research on the signals that people should look at in the figuring out whether it is time to their job.

The first one, as you mentioned, if you do know your bosko the job, chances are there are a bunch of -- your boss's job, chances are there are a bunch of peers who do.

That is definitely number one.

The second one was around false starts.

In other words, if you told yourself multiple times that you are going to quit, but never do, chances are that is another sign that you should probably listen to.

The third was, if you have tried your best to perform, if you have gotten feedback that you are underperforming and you have done everything in your power to increase your performance and it just has not happened, that might be another sign that it is time to move on.

One of the great partitions we have in america is, i think of the classic book, we have got fancy people like you went to harvard business school, and then we have everybody else who do not have the advantage of your education and maybe your confidence.

What does the average person do who is stuck in a job?

I think that is a great point.

I think a lot of people tell themselves that they have got no other options.

In our research, we looked at ceo's, head of business units.

We also looked at manufacturing workers, i interviewed a used car salesman, so we often make the argument to ourselves that we have got no other option and we need to support our families and we need the money, etc., etc., but there are various reasons why that is often not the case.

What are your thoughts, dan , of the primal urge wiese have seen in america over the last four or five years -- everybody goes back to school, or everybody stays in school?

Do you see that as an excuse over the courage of being entrepreneurial?

I think school is a whole other op -- topic.

If you look at issues around student debt, over $1 trillion now, i think, fast becoming the new bubble in the economy, i think people definitely use a school as a landing zone.

I think in some cases -- a landing zone that is not as well thought out as could be.

I think school is really interesting.

I think it makes school from -- makes sense for a lot of people.

But you have to understand the reasons you are there before you drop hundred thousand dollars on education.

One thing that you point out is that people get about 10 chances to quit a job in their lifetime.

That works out to about an average of every four years.

Has the view from potential employers changed on how often you change or job given the name tour -- given the nature of our changing economy?

I think employers, when we interview them today versus five years back, i think there's a lot more tolerance to people who want to experience and explore different career options.

The old paradigm of staying in one company and climbing the corporate ladder for 20 years just is not exist anymore.

I think employers, small employers, large employers understand that.

You do get into a risky zone when you are chopping and changing every six months.

If you look at millennial's and the younger demographic, that is not an exaggeration.

There are a lot of people who change jobs very frequently.

I think there is a lot more tolerance for job changers now than there was.

My least favorite word, dan, was in commencement addresses and all that is passion.

Your passion and purpose.

Passion has been so beat to death.

What do you mean by passion?

I think passion involves finding something that you love, but i think, tom, you raise a really good point which is it is not the full story.

It is not the whole equation.

I think you really have to combine your passion, which is what you truly love, with what opportunities are out there in the marketplace, and what skills you have to offer the marketplace.

I think you reach this career nirvana when you combine what you love, what you are really good at, and what the market wants.

That would be bloomberg "surveillance." and "market makers," too.

Everyday i have been here at bloomberg, i've never had a real job.

I wait for one day to actually be among you don't get to do this, how cool.

Listen, dan, thank you so much.

Maybe we can switch jobs.

You can come by, dan.

Dan gulati, cofounder of passion and purpose joining us this morning.

We now go to dominic chu.

After what we have seen in the markets, as what we saw equities, bonds, currencies, commodities, we need to get the real truth from chu.

What do you have?

I do not know about the real truth, but as you might expect with u.s. stocks, options are trading below their 20 day average.

A lot less volume today.

A lot of post-firework hangovers or a lot of long week is in play.

There are some noticeable movements, especially on the heels of today's bullish job reports appeared the s&p opened up about 1% to the upside, but quickly gave up most of those gains along with the index.

We are seeing a lot of action and etf's. the top 11 most actively traded options in u.s. markets are all tied to that etf, the sp y, y, the one that tracks the s&p 500. it is currently trading just below $152 a share.

-- $162 a share.

Weekly expiration options on apple, well traffic stopped ck here.

The $425 call option, falling and value to become very on mike lee that this contract will be worth anything by expiration at the end of the day.

Other actively traded contracts are automakers, specifically ford and gm.

Vehicle sales are at their highest levels in five years.

One trader in particular seem to put a pretty alleged that on gm, right around 10:20 a.m., 10,000 conference on gm traded for the august 30 five -- i know, that was me.

That was you, tom, i know because you are bullish on detroit.

Is it possible dom chu will get 36 holes in this weekend?

Dom chu might get -- it depends on the weather, tom.

Certainly watch those gm and ford options because they might see activity today.

Oh, stop, mrs.

Chu is out of town, and you are all golf this weekend.

Dom chu with the options alert, thank you so much.

Dom will be back with another options report in the next hour during -- jim lucchese -- live from bloomberg headquarters in new york, this is -- during "lunch money." we're talking about those squid pants, why would a pro golfer put those on?

He is on national tv, international tv wearing these pants.

We will discuss that coming up on "market makers," on bloomberg television, streaming on your phone, your tablet, and at bloomberg.com.

? good morning, everyone.

"market makers." tom keene and scarlet fu.

We're are in for erik schatzker and stephanie roll.

Let's turn to golf right now.

Thank you, mr.

Was.

He picks up an annual shirt with a nike logo on it.

Not a chance.

The course -- the shirts he wears on the courts are scripted in advance.

It is all designed to make you and me by more.

With us from los angeles, patrick reach, founder and director of sports impact.

Patrick, the morning.

Big business, how much are squid pants selling?

That has been the rupp arena with me and scarlet.

Are they all the rage?

I think that if ralph lauren paid you $1 million to wear squid pants on the air, i think you would do it too.

I would.

That is the simple answer.

It is interesting because the young man who wore those pants at the u.s. open was planning on wearing those in the third round, but because he was in contention and ralph lauren new that he was going to get a lot of coverage on the last day of the tournament, they asked him to hold off and wear it during the final round when the ratings were higher.

I do not think square pants are going to be all the rage on a golf courses, but ralph lauren got the attention they were looking for.

Instead of being able to focus on his game, he is listening to what the ralph lauren guys are telling him what to wear gekko?

Andm i getting this right?

You are exactly right.

For a young golfer like billy who has won on the pga tour this year, i know most sports fans do not know the name, even for himself, he has put himself on the map by doing this.

I must say that apparel scripting, where golfers, tiger woods, rickie fowler, very famous with whom a puma, and even apparel, like bubba watson, the 2012 masters champion with his pink driver from ping, this is structure to bring visibility to the corporate rant.

The players make a lot of money winning tournaments, but then there are all those endorsements as well.

Who is doing the best besides tiger gekko?

Who else is minting money?

Phil mickelson and tiger, rivals on the course, and rivals off the course as well.

If you look at the most recent estimates of the wealthiest athletes, both of them have been estimated to making somewhere between $40 million and $50 million in endorsements.

What is interesting is again, and i look at it this way, tiger woods put nike golf on the map in the late 1990's with his success.

Rickie fowler in the same way with his unusual -- i just learned recently that the orange attire that he wears from head to toe on sundays of interment, that sense from the fact that he is an oklahoma state graduate, and that is their colors at oklahoma state, but these guys alone have put these companies on the map.

Patrick, thank you so much.

Afterpatrick rishe on golf and clothing.

Michael dell, the founder, former ceo of dell, and silver lake management are not planning to sweeten their offer to take a dell private.

Bloomberg broke the story.

She joins us now, along with our deals reporter cristina alesci, who is hard at work.

First off, why aren't they boosting an offer you go?

Because they think the offer on the table is fair, and it is already offering a significant amount compared to where the stock would trade if the deal falls apart.

Silver lake is happy to walk away from the deal with expenses for the deal.

Michael dell thing he could keep controlling the company and the long-term.

Which dynamic right now is the most crucial for mr.

Del?

-- mr.

Dell?

His ownership, the amount of cash, share holder cash, keeping silver lake on board -- what is the most important thing this friday for michael dell?

Has major concern is the future of the company.

But also, i mean, his interest, right?

He thinks that he can keep control of the company in the long term, even if he loses the bid to take it private because there is no utter takeover offer on the table.

Icahn's proposal is only doable if icahn wins control of the board.

Shareholders of dell are voting july 18 whether they want the still or not.

-- this deal or not.

They can only vote on icahn's proposal if icahn gets control of the board.

Does this change the timeline in terms of how quickly we can see this resolved?

Not really.

What we are expecting is the iss, the advisory firm thomas to give an opinion, advice to shareholders on how to vote on july 18. they are inclined, my sources say, to vote against it.

If that is the case, the lbo will be voted down, and then it remains to be seen what happens afterwards.

The expectation is that the stock will tank, and then you have to go to the -- that is a key point, the stock will tank.

Cristina alesci with us , mergers and acquisitions reporter, how worn out is silver lake and glenn hutchings?

I was in dabbles in january, and glenn kept telling me he could not talk about it.

This is getting old for mr.

Hutchings.

It certainly is getting old , tom.

The fact that it has been so drawn out has definitely played against the special committee and michael dell and silver lake.

They were hoping to get this wrapped up pretty soon.

From sources close to this situation, especially those that are familiar with the way carl icahn is thinking about this, he is very serious about his proposal, and he would like to see the company potentially be under his own control.

In some way, his ownership.

They want -- the delay has worked for a much to the benefit of carl icon.

-- carl icahn.

It is a dynamic story, cristina alesci, thank you so much.

Look for that story out on bloomberg.com just coming up.

Wife dell shares are falling in the meantime, below $30 a share, $12.93. crushing the stock.

Serena single-handedly move the stock price.

The biggest reported sales that were less than expected coming up.

? this is "market makers." i am scarlet fu.

Here with tom kane in for erik schatzker and stephanie ruhle.

The big loser was the aleksei -- the galaxy s4, falling short.

This is despite expectations that the bigger screen and new software could go head to head with the iphone.

For more, we had not out to san francisco where our tech experts cory johnson is standing by.

Samsung's result probably had a lot of people in silicon valley cheering.

Perhaps.

I hate this whole discussion, comparing things to analysts' estimates, is because all of us told us is that the analysts got things wrong.

The growth for the company is fantastic.

On a revenue basis, 19.7 5, 20% year-over-year growth, which is fantastic when you're talking about nearly $50 billion in revenue.

And the profits growth, the operating profit growth, 47% year over year operating profit growth, maybe that's disappointed some analysts who thought the numbers would be even better than the company's guidance, but i see a big company that is changing their business model to go where profits are more available.

And taking profits off the table.

I totally agree with you, cory.

What has apple learned by the launch of this fancy galaxy?

They have got to learn some lessons about it that they can put into the iphone5s. you wonder what they will learn.

We do not know if it is the new equipment and it that tells the temperature, that could be a whole new series of apps that the android operating system is not benefited from yet.

But one wonders of apple might do the same thing, the sam carter technology is available.

What is interesting with the samsung is that the pace of innovation is faster.

This text has been automatically generated. It may not be 100% accurate.

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