WEBVTT - LaSalle's Gimbel: Overtime Rule Could Hurt Sweat Equity (Audio)

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<v Speaker 1>Global business news twenty four hours a day at Bloomberg

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<v Speaker 1>This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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<v Speaker 1>I'm Katherine Cowdery Bloomberg. Taking Stock is brought to you

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<v Speaker 1>We take the markets every fifteen minutes throughout the trading day.

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<v Speaker 1>Now over the first Word breaking news desk were today's

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<v Speaker 1>afternoon call with Bill Maloney. Bill, Good afternoon, Katherine. US

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<v Speaker 1>stocks have rebattened for the lows for a second day,

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<v Speaker 1>with the Dow currently down nine points, says Top drop

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<v Speaker 1>five and AzaC is lowered by fifteen. At one point.

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<v Speaker 1>The Dow is down a hundred and nineteen points, the

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<v Speaker 1>small cap six hundred falls five, and the US ten

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<v Speaker 1>yield at one point seven three. Eight out of eleven

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<v Speaker 1>sub sectors are still lower, led by declines and materials,

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<v Speaker 1>industrials and consumer discretionary utilities. Healthcare and financials gained doubt.

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<v Speaker 1>Transports fall sixties seven, as a biotech drop twelve, and

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<v Speaker 1>the vig is higher by four percent. Leaders to the

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<v Speaker 1>downside in the Dow included home Depot, up X and Walmart,

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<v Speaker 1>while Travelers, Procter and Gamble and J and J. Lead.

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<v Speaker 1>In other news, Tyson food Sinc. Nine percent was cut

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<v Speaker 1>to sell at Pivotal amid a convincing class action lawsuit.

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<v Speaker 1>Honeywell dropped eight percent. Q three profit forecast was below estimates,

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<v Speaker 1>while the gap ros as much as seventeen percent. That's

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<v Speaker 1>a Motion's two thousand and eight, Live from the first

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<v Speaker 1>breaking news task on Bow Maloney Katherine, thank you, Bill

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<v Speaker 1>All and to hear live breaking news over your Bloomberg

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<v Speaker 1>typed s q U a K on your terminal West

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<v Speaker 1>Texas Intermedia. Crude oilis down sixty three cents of barrel

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<v Speaker 1>one in a quarter percent at one sparckled of two

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<v Speaker 1>dollars ten cents ounce at twelve ten and the tenure

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<v Speaker 1>treasury of three thirty seconds with the yield of one

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<v Speaker 1>point seventy two sixty nine. And that's a Bloomberg business flash.

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<v Speaker 1>You're listening to taking stock with pim Box and Dapolin

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<v Speaker 1>NS on Bloomberg Radio. The US economy delivered modest job

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<v Speaker 1>growth in September. Employment outside of the farm sector grew

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<v Speaker 1>by one hundred and fifties six thousand jobs during the month.

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<v Speaker 1>This all according to the Labor Department, this was the

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<v Speaker 1>smallest gain since May. Let's find out more from Tom Gimble.

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<v Speaker 1>He is the founder and the chief executive of LaSalle

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<v Speaker 1>Network and he joins us now from Chicago. Tom, thanks

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<v Speaker 1>very much for being with us. First, tell people what

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<v Speaker 1>is LaSalle Network, and then you can tell us about

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<v Speaker 1>some trends in hiring. Sure. We're a staffing, recruiting in

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<v Speaker 1>corporate culture firm. We're headquartered at of Chicago, working in

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<v Speaker 1>about twenty three different major markets around the country, with

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<v Speaker 1>physical offices in Chicago and San Francisco and then remote

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<v Speaker 1>locations UH in those other cities, and we provide recruiting,

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<v Speaker 1>search and staffing services UM ranging from accounting and financial personnel,

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<v Speaker 1>human resources, marketing, technology, and administrative Tom, excuse me, um.

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<v Speaker 1>Last time we talked, it seemed like you were reasonably

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<v Speaker 1>upbeat on hiring, given your business and the kind of

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<v Speaker 1>people you were seeing being offered jobs and getting jobs.

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<v Speaker 1>I want to get to the whole point though, of

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<v Speaker 1>what the FED may do, and that's raising their key

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<v Speaker 1>rate by a quarter point by at the end of

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<v Speaker 1>the year, which then may lead to a whole debate

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<v Speaker 1>about g and how many do you do the following year?

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<v Speaker 1>Is this going to affect the any momentum, however modest,

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<v Speaker 1>we have in hiring at this point, I think the

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<v Speaker 1>FED rate is gonna if the Fed decides to increase

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<v Speaker 1>interest rates, is going to be secondary to how the

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<v Speaker 1>global economy responds. Really, the national economy and global economy

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<v Speaker 1>responds to two things. Number one, the election and who

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<v Speaker 1>takes over in UH in January after the November election.

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<v Speaker 1>And number two, what's going to happen with some of

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<v Speaker 1>the UM you know, not as pro business legislation, and

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<v Speaker 1>that is the increase in minimum wage, and that continues

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<v Speaker 1>to take effect in the next two or three or

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<v Speaker 1>four years to come. In secondarily, UM the overtime exemption law,

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<v Speaker 1>which will either happen in December or it will take

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<v Speaker 1>place in June of and those will greatly affect how

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<v Speaker 1>corporations are compensating people, running people, what they're doing with

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<v Speaker 1>overtime pay, people getting laid off, what the salaries are

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<v Speaker 1>for new hires. I think there's a lot will go

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<v Speaker 1>into it, and I think, uh, quite frankly, twenty five

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<v Speaker 1>basis points by the Fed in November or December isn't

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<v Speaker 1>going to have that great effect on those issues. Tom,

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<v Speaker 1>I wonder if you could just offer an example, Uh,

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<v Speaker 1>you don't have to name the company, but an example

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<v Speaker 1>of how you have seen these new regulations changed the

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<v Speaker 1>behavior of employers. Sure, so we're working with a lot

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<v Speaker 1>of companies right now that have millennial workforce. They're hiring

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<v Speaker 1>people out of college. I'm not talking about the most

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<v Speaker 1>expensive areas like San Francisco or New York, but in

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<v Speaker 1>in other cities around the country, and they're hiring a

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<v Speaker 1>millennial group out of out of college, white collar, liberal

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<v Speaker 1>arts kids, and they're getting jobs between thirty and forty

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<v Speaker 1>dollars a year, and they're in either management training programs,

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<v Speaker 1>they're in inside sales, they're in operational roles. And now

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<v Speaker 1>they're not going to be able to work more than

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<v Speaker 1>forty hours a week. And the traditional way that this

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<v Speaker 1>country has been built on the white collar side, and

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<v Speaker 1>the whole story of from the mail room to the

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<v Speaker 1>CEO was put in by sweat equity and and working

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<v Speaker 1>your butt off to get ahead. And now that's not

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<v Speaker 1>gonna happen. So you're not gonna allow people to compete

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<v Speaker 1>unless companies want to spend extremental dollars um to pay

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<v Speaker 1>these books. It is. It's a different mindset than this

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<v Speaker 1>country has ever seen before. You know, I just have

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<v Speaker 1>to tise want to throw this in that big of

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<v Speaker 1>American mery. Lynch Global Research put out a piece by

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<v Speaker 1>Ethan Harris, who who's one of their top economists there

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<v Speaker 1>around the world in eighteen days uh and he said

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<v Speaker 1>that the uh, the question of the election has come

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<v Speaker 1>to the election probabilities far outweigh what the Fed might do.

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<v Speaker 1>So it's interesting, do you think it's a question of

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<v Speaker 1>sentiment or because of the policy changes that that might occur,

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<v Speaker 1>that it's going to make such a big different difference

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<v Speaker 1>to businesses? You know what I mean? Is it like

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<v Speaker 1>they're too Trump is too much of an unknown Hillary

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<v Speaker 1>is more of a known quantity. Trump's offered big tax cuts.

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<v Speaker 1>What do you think that businesses are looking for when

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<v Speaker 1>they think about workers and what they're gonna do next.

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<v Speaker 1>I think what businesses look at and they say, um

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<v Speaker 1>that Hillary Clinton coming in is more of a probably

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<v Speaker 1>a little bit more dissenter of what the current administration is.

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<v Speaker 1>But it's a known commodity and we know what we're

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<v Speaker 1>going to get, but there still is a lot more um,

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<v Speaker 1>you know, legislation, a lot more rules, a lot more

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<v Speaker 1>compliance than that business would like. I think they feel

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<v Speaker 1>with Trump. I was listening to the three CEOs of

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<v Speaker 1>companies that are are nine big, good, nine figure companies

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<v Speaker 1>hundred and nine million in revenue the other day and

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<v Speaker 1>they said, I'm not going to tell you that I'm

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<v Speaker 1>voting for Trump. What I am going to tell you

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<v Speaker 1>is that a Republican president is better for business in

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<v Speaker 1>the Democratic president. Okay, well let's leave it there. Uh.

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<v Speaker 1>We're so happy to have just spoken with Tom Gimbal,

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<v Speaker 1>founder and CEO of Lassal Network. He said it the

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<v Speaker 1>FED may raise the key rate once this year, a

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<v Speaker 1>couple of times next year, but people are really mostly

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<v Speaker 1>focused right now on the presidential election, and I suspect

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<v Speaker 1>the closer we get, the truer that is going to become.

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<v Speaker 1>I'm Kathleen Hayes along with PM Fox on taking stock.

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