WEBVTT - LaSalle's Gimbel: Overtime Rule May Boost Unemployment (Audio)

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<v Speaker 1>Broadcasting live to New York, Bloomberg eleven, Rio to Washington,

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<v Speaker 1>d C, Bloomberg to Boston, Bloomberg twelve, under to San Francisco,

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<v Speaker 1>Bloomberg nine to the country Studies Exam Channel one nineteen,

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<v Speaker 1>and around the globe the Bloomberg Radio Plus athen Bloomberg

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<v Speaker 1>dot com. This is taking stock. Look like we might

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<v Speaker 1>have a deal in the making. Today we learned that

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<v Speaker 1>mondal Is International, a global food and snack maker, was

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<v Speaker 1>making a takeover offer for hers she uh and it

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<v Speaker 1>was according to a person familiar with the matter. We

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<v Speaker 1>were waiting to have it confirmed. It would have made

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<v Speaker 1>the world's largest candy maker. Instead, we are learning that

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<v Speaker 1>that deal has been rejected by Hershey. Catherine Cadriell have

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<v Speaker 1>more on that in just a minute from the newsroom.

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<v Speaker 1>I'm Kathleen Hayes, my co host Pim Fox on vacation,

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<v Speaker 1>and we are going to be speaking in this half

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<v Speaker 1>hour to Bloomberg's deal maker correspondent Alex Sherman. He'll talk

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<v Speaker 1>to us about what was behind the Mondelez bid and

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<v Speaker 1>what means what it means now if Hershe has said no,

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<v Speaker 1>thank you, well I'm not gonna say no Thank you

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<v Speaker 1>to Katherine carry. I'm getting right over to her in

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<v Speaker 1>the Bloomberg newsroom for a Bloomberg Business Flash. Thank you, Kathleen,

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<v Speaker 1>and let me see if I can give you a

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<v Speaker 1>little more information about that Hershey story. Well, Hershey has

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<v Speaker 1>confirmed that it received preliminary non binding indications of interest

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<v Speaker 1>from Mondelis to acquire the company for a mix of

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<v Speaker 1>cash and stock consideration and a total about one seven

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<v Speaker 1>dollars a share for her She shares. Now hers She

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<v Speaker 1>had been up as much as earlier today and it's

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<v Speaker 1>stock is still halted pending more news. Hershe um had

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<v Speaker 1>Hershey Trust owns one of the Class B shares which

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<v Speaker 1>hold ten voting rights per share, and that's according to

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<v Speaker 1>Bloomberg datam And we will of course have more information

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<v Speaker 1>as it becomes available. Well, the global rally continues today.

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<v Speaker 1>Is policymakers signal further steps to buff the impact of

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<v Speaker 1>Britain's decision to leave the European Union. Mark Kearney indicated

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<v Speaker 1>the Bank of England would cut interest rates within months

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<v Speaker 1>as a central bank tries to shield the UK economy.

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<v Speaker 1>David Kelly, chief global strategist at JP Morgan Funds, on

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<v Speaker 1>the impact of the Brexit vote. I think there's still

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<v Speaker 1>a lot of negativity in global markets. One of the

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<v Speaker 1>things we've seen as we've seen a bounce back in

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<v Speaker 1>US stocks, but we're still seeing very low yields on

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<v Speaker 1>US bonds of anything. The bond markets, which was out

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<v Speaker 1>of whack to start with, is even more out of

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<v Speaker 1>whack right now. I think what people are missing is

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<v Speaker 1>that there is a pickup going on in the US

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<v Speaker 1>economic growth right now. Ten Your treasury is currently up

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<v Speaker 1>ten thirty seconds with the yield of one point four

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<v Speaker 1>seven percent. And now let's get an update of some

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<v Speaker 1>of the other stories were following today on Bloomberg Radio.

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<v Speaker 1>Thank you, Catherine from the Bloomberg Newsroom. I'm Julie Hyman.

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<v Speaker 1>One week after the Brexit vote, former London Mayor Boris

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<v Speaker 1>Johnson says he will not run to succeed David Cameron

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<v Speaker 1>as Conservative Party leader and Prime Minister. Outing consulted and

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<v Speaker 1>in view of the circumstances in Parliament, I have concluded

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<v Speaker 1>that person Johnson helped lead the campaign for Britain to

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<v Speaker 1>leave the EU. He was considered a favorite to replace

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<v Speaker 1>Prime Minister David Cameron, who was resigning in a few months.

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<v Speaker 1>A Turkish official says the death toll from a triple

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<v Speaker 1>suicide attack at Istanbul's at a Turk airport has climbed

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<v Speaker 1>to at least forty four. The country's interior minister says

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<v Speaker 1>nineteen four nationals were among the victims. More than two

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<v Speaker 1>hundred and thirty others were wounded. Secretary of State John

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<v Speaker 1>Kerry unveiled the twenty sixteen Trafficking in Persons Report at

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<v Speaker 1>the State Department today. The report assesses government efforts around

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<v Speaker 1>the world to combat human trafficking. We're talking about slavery,

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<v Speaker 1>modern day slavery that still today claims more than twenty

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<v Speaker 1>million victims on any given time. This year's report includes

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<v Speaker 1>narratives for one and eighty eight countries and territories include

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<v Speaker 1>being the United States. A New Siena College pole has

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<v Speaker 1>found New York voters are unimpressed with a series of

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<v Speaker 1>ethics reforms pushed by lawmakers and Governor Andrew Cuomo. More

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<v Speaker 1>than half said the measures, which include new rules on lobbying,

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<v Speaker 1>disclosures and spending by independent political groups, will not reduce

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<v Speaker 1>state government corruption. Global News twenty four hours a day,

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<v Speaker 1>powered by more than twenty six hundred journalists and analysts

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<v Speaker 1>in more than one hundred twenty countries. From the Bloomberg newsroom.

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<v Speaker 1>I'm Julie Hyman. This is Bloomberg Catherine, thank you, and

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<v Speaker 1>now let's get a quick update of the benchmark style

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<v Speaker 1>industrial averages up two hundred points one point one percent,

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<v Speaker 1>trading at seventeen thousand, eight hundred nine one SMP five

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<v Speaker 1>hunded up twenty two points, again at one point one percent.

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<v Speaker 1>It's trading at two thousand ninety two naszac hire by

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<v Speaker 1>forty seven points, again of one percent, trading at forty

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<v Speaker 1>twenty six. West Texas intermediate crude oil down a dollar

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<v Speaker 1>fifty five of barrel three point one percent to forty

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<v Speaker 1>eight thirty two spackled down five dollars ten cents. Announcer

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<v Speaker 1>and that's a Bloomberg business flash. He's taking stock with

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<v Speaker 1>Kathleen Hayes and Finn Fox on Bloomberg Radio. The health

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<v Speaker 1>of labor market. It will continue to be at the

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<v Speaker 1>top of the Fed of Reserves list as it continues

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<v Speaker 1>to watch the economy, the impact of global shocks like

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<v Speaker 1>the Brexit vote of the UK to leave the European Union.

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<v Speaker 1>But again it's the domestic economy. Many say that will

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<v Speaker 1>most determine what the FED does next if it's on

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<v Speaker 1>indefinite hold, if it even considers a rate hike this

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<v Speaker 1>year at all. Let's bring in Tom Gimble now for

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<v Speaker 1>a more in depth look at the labor market. He's

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<v Speaker 1>founder and CEO of La Salle Network, one of the

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<v Speaker 1>leading staffing and recruiting firms in the country, based in Chicago. Tom,

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<v Speaker 1>welcome to the show. So, if you were just looking

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<v Speaker 1>at jobless claims as a measure of the health of

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<v Speaker 1>the economy, you'd say, whoa, they're staying at this and

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<v Speaker 1>it's nice low range, you know, anywhere from two D

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<v Speaker 1>fifty thousand to you know, over two eighty, but a

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<v Speaker 1>very low range. But if you listen to Janet Yale

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<v Speaker 1>in the FED chair, if you look at other indicators, uh,

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<v Speaker 1>there are more job openings, but somehow they don't get

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<v Speaker 1>to field. There's a lack of skilled workers, it seems.

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<v Speaker 1>Janet Yellen talks about wages not rising enough to suggest

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<v Speaker 1>that the slack is really being taken up. From your

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<v Speaker 1>advantage point at a recruiting firm, what do you see, Yeah,

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<v Speaker 1>there's definitely a skills gap. There's no doubt about that

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<v Speaker 1>that the jobs that are in high demand, as always

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<v Speaker 1>in a in an interesting economy like we're in sales,

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<v Speaker 1>is always going to be in high demand. But what

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<v Speaker 1>we've seen over the past fifteen years is this change

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<v Speaker 1>to becoming uh. You know, when it went from uh

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<v Speaker 1>fifteen years ago was oh, are we going from a

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<v Speaker 1>manufacturing country to a services business based country? And now

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<v Speaker 1>it's gone from a services based company to a technology country.

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<v Speaker 1>And what I'm seeing is is that the skills gap

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<v Speaker 1>in in really educated talented developers and architects and infrastructure

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<v Speaker 1>folks in the technology side just isn't there to keep

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<v Speaker 1>up with the demand. And that's why those jobs continually

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<v Speaker 1>um you'll see on on reports is very high paying,

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<v Speaker 1>growth oriented industries where we're not seeing as much as

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<v Speaker 1>in the lower level stuff. So now we're gonna end

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<v Speaker 1>up happening. My my take is, and for the first time,

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<v Speaker 1>I'm getting a little bit more concerned. I don't think

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<v Speaker 1>we're going to see interest rate hikes this year. If

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<v Speaker 1>we're seeing minimum wage increase in municipality, state level, and

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<v Speaker 1>federal level soon, and then we're also seeing in December

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<v Speaker 1>one of this year, we're going to see the UM

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<v Speaker 1>overtime exemption salary point increase from twenty four thousand and

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<v Speaker 1>changed to almost forty eight thousand dollars, and we're gonna

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<v Speaker 1>start seeing unemployment creep back up again because companies will say,

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<v Speaker 1>I can't afford to pay more. That's exactly right. So

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<v Speaker 1>I think that the goal was that the administration was,

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<v Speaker 1>let's increase wages for all Americans by saying, if you're

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<v Speaker 1>working more than forty hours a week and you're making

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<v Speaker 1>over twenty five thousand dollars a year, you should be

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<v Speaker 1>getting overtime. What's gonna end up happening is people are

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<v Speaker 1>going to keep people at forty hours a week. They'll

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<v Speaker 1>maybe higher one or two more at lower level lower salaries,

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<v Speaker 1>which won't be a wage increase. Unemployments already at five

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<v Speaker 1>percent how much lower connect going with qualified people, and

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<v Speaker 1>or they'll lay those people, often the only higher one

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<v Speaker 1>person back at a higher salary of fifty. We're not

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<v Speaker 1>going to see UH any any huge changes across the board,

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<v Speaker 1>and I think the actual end result will be an

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<v Speaker 1>increase in unemployment. Is one of the challenges of this

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<v Speaker 1>economy as it moves to more UH technology and technology

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<v Speaker 1>is now part of everything. Right, it's in how you

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<v Speaker 1>might outsource some of your jobs to you know, an

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<v Speaker 1>online payroll services firm something like that, right, So eliminates

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<v Speaker 1>the need for you to have a certain kind of workers.

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<v Speaker 1>And it does that across a lot of companies. So

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<v Speaker 1>if everybody is doing that, that's one kind of job

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<v Speaker 1>that's gone, right, I mean that is telecon technology has

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<v Speaker 1>you know, it's a sort that seems to cut two ways.

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<v Speaker 1>How big of an issue is that for labor market, Well,

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<v Speaker 1>that's a big issue. But taking even a different approach,

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<v Speaker 1>so even if you get to a point where UM

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<v Speaker 1>technology go into the retail sector and you get restaurants

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<v Speaker 1>that are gonna phase out cashiers and they're gonna have kiosks,

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<v Speaker 1>which is already happening. So but then what you have

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<v Speaker 1>is that eliminates that job. But now there's service jobs

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<v Speaker 1>of people that have to repair those kiosks, right, And

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<v Speaker 1>that's a job that that a human being has to do.

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<v Speaker 1>But there's a skills gap between somebody who is working

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<v Speaker 1>in a factory putting bolts on a car and somebody

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<v Speaker 1>you can go in and work at a kiosk and

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<v Speaker 1>fix them. Technology, so we're really at a shortage of

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<v Speaker 1>training and development in this country, of course. But you'll

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<v Speaker 1>find in many factories now though, is those jobs are

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<v Speaker 1>very much more sophisticated technologically when you're when you're putting

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<v Speaker 1>a cardigo than they used to be. But specifically to

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<v Speaker 1>your example, that kiosk and you know iPads instead of

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<v Speaker 1>people waiting on you, that replaces what maybe five six

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<v Speaker 1>seven workers and you only are you only need one

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<v Speaker 1>person to service the kiosk. Seems to me that's the issue.

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<v Speaker 1>You don't create as many new jobs as you potentially destroy,

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<v Speaker 1>there's actually no doubt about that, but it does create

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<v Speaker 1>jobs in other areas, and that's where the skillet skill

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<v Speaker 1>gaps are. So you need to have more tablets being

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<v Speaker 1>created for those they're gonna wear out more because people

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<v Speaker 1>are using them. So there's more development, more technology, more

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<v Speaker 1>manufacturing of the actual device in whatever country that's in,

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<v Speaker 1>hopefully here but maybe some place else. So there are

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<v Speaker 1>jobs that are being created, but they're different job. Okay, Tom,

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<v Speaker 1>what would you tell the Federals or what would you

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<v Speaker 1>tell Janet Yellen from your vantage point in this in

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<v Speaker 1>this labor market industry, what she should have shouldn't do.

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<v Speaker 1>You got fifteen seconds to tell me. You gotta keep

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<v Speaker 1>you I gotta keep interest rates flat. And so I

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<v Speaker 1>was a huge proponent of her raising interest rates at

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<v Speaker 1>the end of last year. I'm glad that happened. Now

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<v Speaker 1>where we're at, I think we're gonna get an increase

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<v Speaker 1>in unemployment and she's got a whole flat Tom Gimble,

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<v Speaker 1>thank you so very much, first time on the show.

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<v Speaker 1>Thank you for joining me. He's founder and CEO of

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<v Speaker 1>Lassalt Network, located in Chicago. He said, because of this

0:10:43.320 --> 0:10:45.800
<v Speaker 1>new overtime rule and rising minimum wages, we're going to

0:10:45.880 --> 0:10:47.960
<v Speaker 1>see some people out of work. At least that's what

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<v Speaker 1>he sees as a head of a recruiting company, one

0:10:50.920 --> 0:10:53.679
<v Speaker 1>of the biggest in the country. I'm Kathleen Hayes. This

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<v Speaker 1>is taking Stock, and this is Bloomberg Bloomer. Taking Stock

0:11:01.840 --> 0:11:04.120
<v Speaker 1>is brought to you by Willoughby's since eighteen ninety eight,

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