100% Chance of December Rate Hike: Bill Gross

Bill Gross of Janus Capital spoke with Bloomberg's Tom Keene and Michael McKee on Bloomberg Radio and Television this morning to respond to today's jobs report.

Gross said there is a "100 percent chance" the Fed will raise interest rates in December after jobs surged. "They’re ready to go." He said: "100 percent that they go in December and then try and tamp it down with mild, gradual language that will keep the dollar from strengthening even further."

On dollar strength, Gross said: "I think the Fed fears it…They took it out of their statement last month. But prior to that, they were cognizant of the fact that a very strong dollar has negative implications for emerging markets… It’s certainly a negative for the global financial system because there are many bets and much dollar denominated debt in terms of emerging market corporations and sovereigns will be impacted by this."

On gold, Gross said: "Gold is a mystery, we all know that, but to the extent that real yields rise, it’s a negative impact for a gold price because it makes it more expensive relative to other alternatives. So that’s one explanation. I can’t give you the total solution for why gold goes up or down."

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