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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: This is a Bloomberg Business Flash and I'm Tera in Moscow.

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Speaker 1: This updates brought to you bi Sector Spider e t

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Speaker 1: f S. Why buy a single stock when you can

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Speaker 1: invest in the entire sector? Visits sector spd r s

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Speaker 1: s dock Indix Futures are higher as investors away data

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Speaker 1: that may show hiring picked up pace last month. We

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Speaker 1: checked the markets every fifteen minutes throughout the trading day

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Speaker 1: on Bloomberg SNP E Many futures up four points now

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Speaker 1: EVENI futures have thirty seven nas. Documuni futures up seventeen decks.

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Speaker 1: In Germany's up one point one percent. Pen your treasury

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Speaker 1: little change yield one point eight three percent. Nim X

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Speaker 1: screwed oil up eight tenth percent or twenty eight cents.

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Speaker 1: Co Max schoold is up six tenths percent or seven

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Speaker 1: dollar seventy cents. The euro An dollar oh nine seven one.

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Speaker 1: The end one thirteen point seven two. That's a Bloomberg

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Speaker 1: Business Flash. Tom and Mike Caramasco thank you very much.

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Speaker 1: The Bloomberg n j I T STEM Report is brought

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Speaker 1: to you by on New Jersey Institute of Technology. I

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Speaker 1: just lost my place here, I'll be right back. We

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Speaker 1: are brought to you by nj idea of partnering with

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Speaker 1: government and industry to apply the university's world class research

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Speaker 1: assets to innovate and spur economic growth. Learn more at

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Speaker 1: n j I T dot e d U Bob Moon.

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Speaker 1: I need I need an electronic version of that billboard

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Speaker 1: so I don't mess up like I just did. Okay,

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Speaker 1: good morning, Michael. Here's what's making news in science, technology,

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Speaker 1: engineering and math. Facebook will pay millions more in taxes

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Speaker 1: starting next year, all because of where it sends the

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Speaker 1: bills out for the advertising it sells In the United Kingdom.

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Speaker 1: The social network has decided to stop rooting advertising sales

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Speaker 1: of its largest UK clients through Ireland, which effectively increases

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Speaker 1: its tax bill by millions of pounds. It's a bid

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Speaker 1: by Facebook to improve transparency and fend off criticism over

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Speaker 1: tax avoidance. Smaller business sales where advertising is booked online

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Speaker 1: will still be rooted to the company's Ireland offices, which

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Speaker 1: will remain in the firm's international headquarters. But a Facebook

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Speaker 1: spokesman tells Bloomberg and an emailed statement that it's larger

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Speaker 1: UK customers will start receiving invoices from Facebook UK instead

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Speaker 1: of Facebook Ireland. That means the revenue will be recorded

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Speaker 1: in the UK and those tax there. The British Treasury

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Speaker 1: issued a statement welcoming the additional revenue and saying multinationals

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Speaker 1: should pay every penny they owe. The UK is famous

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Speaker 1: for its tenacious tax enforcement. Remember when the Beatles were

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Speaker 1: compelled to pay a rate of And that's this morning's

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Speaker 1: Bloomberg and j I t Stem reports, Tom, that was

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Speaker 1: a revolver moment, a revolver moment. Why clever Mike? Pick

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Speaker 1: it up here with our esteem Well, our steam guest

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Speaker 1: is our Steam Job's Day co host Alan Krueger from

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Speaker 1: Princeton University. We were walking with Robert Gordon of Northwestern

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Speaker 1: in the last block about what a difference uh An

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Speaker 1: administration can make in the economy. Let's keep it in government.

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Speaker 1: Moved down the street a little bit to twenty and

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Speaker 1: C streets in Washington and Aska. At this point, is

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Speaker 1: the Fed still affecting the economy or has the impact

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Speaker 1: of zero interest rates and Kiwi and the Fed's balance

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Speaker 1: at this point sort of become a neutral factor. I

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Speaker 1: think they're still accommodating the economy. I think it'll be

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Speaker 1: a while before monetary policy is in the mutual stance. So, uh,

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Speaker 1: when you say it's a while, then what is the

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Speaker 1: What is what the Fed is considering whether they raise

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Speaker 1: interest rates in the basis points or fifty basis points

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Speaker 1: is here? Is that going to have an impact? Are

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Speaker 1: we going to notice that at one point? Do they

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Speaker 1: hinder the economy? Well, I think it'll I'll start to

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Speaker 1: slow the econ to me when they and I assume

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Speaker 1: that they'll continue to raise rates because I expect the

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Speaker 1: recovery is going to continue. Um, the question is at

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Speaker 1: what pace. The reason why I say I think it's accommodative,

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Speaker 1: it'll just be less accommodative going forward is real rates

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Speaker 1: are still negative. If you look at where we are

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Speaker 1: with inflation, where nominal interest rates are, even if they

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Speaker 1: go up fifty basis point basis points this year, Uh,

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Speaker 1: that's still going to be below the inflation rate, and

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Speaker 1: that still would be supporting investment in the US economy,

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Speaker 1: supporting consumption within this and to the debate, and I'm

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Speaker 1: sure you have a strong opinion on this. How much

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Speaker 1: of a vector on the unemployment rate can be attributed

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Speaker 1: to the White House and to what is becoming a

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Speaker 1: lame duck white House. I was quite taken us to

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Speaker 1: the about the president of the first Lady suggesting they

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Speaker 1: will stay in Washington. I guess we all knew immediately

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Speaker 1: why their youngest daughter's education is a priority. But the vector, now,

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Speaker 1: how much can a White House influence that? Well, there's

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Speaker 1: still many things that the administration is engaged in that

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Speaker 1: can influence the economy, the trade agreements, for example, uh,

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Speaker 1: international policy. UM, I think we made some big steps

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Speaker 1: with the budget which will provide more certainty going forward

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Speaker 1: and a little bit of a tailwind for the economy.

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Speaker 1: But if you look at over this weep but the

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Speaker 1: last seven years, I think there's no question that the

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Speaker 1: Obama administration's policies helped to get us out of the

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Speaker 1: worst recession since the Great Depression. The script you do

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Speaker 1: every time I'm here, Yeah, I don't believe you have.

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Speaker 1: Thank you, Professor Krueger. I'm watching in our wonderful coverage

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Speaker 1: from Washington. One of the Republican candidates I want to

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Speaker 1: leave the politics out of this. Go after the Affordable

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Speaker 1: Care Act and without any political angle. I'm saying to myself,

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Speaker 1: how many people in his Republican audience's benefited from the

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Speaker 1: Affordable Care Act? How many did? Large numbers. I have

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Speaker 1: to say I watched like half of the audience, No question,

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Speaker 1: it was millions. I did full disclore, full disclosure, Rich Truman,

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Speaker 1: full disclosure. One of my kids got a two year

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Speaker 1: free ride because of the Affordable Care Act. You know,

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Speaker 1: to hear the claims during the debate that the troits

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Speaker 1: not doing well because of the Affordable Care Act is laughable.

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Speaker 1: That struck me as as a little bit odd. But

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Speaker 1: let me ask you. During the debate, they argued it

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Speaker 1: was a job killing piece of legislation, and that was

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Speaker 1: the argument that was put forth in the debate over

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Speaker 1: whether depascit or not. Can we tell what impact has

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Speaker 1: had on jobs? I mean there were a lot there

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Speaker 1: were a lot of stories going into this that companies

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Speaker 1: were hiring more part time workers so they wouldn't become

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Speaker 1: subject to this and converting full time workers to part

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Speaker 1: time workers. Can we tell what the impact has been? Well,

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Speaker 1: there's no sign that it has had an adverse effect unemployment.

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Speaker 1: If you look in this recovery, and especially since the

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Speaker 1: Affordable Care Act passed, virtually all of the job growth

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Speaker 1: has been in full time jobs. You know, Like the

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Speaker 1: same thing was said at the Social Security Act that

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Speaker 1: it was going to destroy the US economy. So I

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Speaker 1: think everybody needs to take a deep breath and look

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Speaker 1: at the Act in in fall. Uh, look at the

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Speaker 1: effect it's had on healthcare costs, which is probably to

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Speaker 1: slow them down and to accelerate some trends that were

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Speaker 1: taking place before the pass which, uh, we're contributing to

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Speaker 1: slower growth and healthcare costs. Uh. We should all be

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Speaker 1: proud of the fact that twenty million more people have

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Speaker 1: gained health insurance coverage UM and the effect on the economy.

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Speaker 1: Job growth is certainly stronger in the last two years

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Speaker 1: and it wasn't the two years before that. I just

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Speaker 1: put out a photo on Twitter, folks. It's one of

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Speaker 1: the three or four most important photos of the history

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Speaker 1: of Bloomberg Surveillance and Bloomberg on the economy. They have

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Speaker 1: Kruger and Gordon with this special what have you learned

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Speaker 1: off of Krueger card card Krueger from what you were

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Speaker 1: like seventeen years old. I mean, come up, you know

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Speaker 1: not's sick. I can remember the dates of some of

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Speaker 1: these papers. Krueger card, What have you learned about the

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Speaker 1: minimum wage with the new experiments we're having in Seattle

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Speaker 1: and other places? In Secretary Clinton, I believe surrounding the

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Speaker 1: fifteen dollar statistic? What have you learned recently? Well, I

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Speaker 1: think in the last twenty years since our book came out.

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Speaker 1: And by the way, I'll give a shameless plug, we

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Speaker 1: just published uh twenty anniversary edition of mythan measurement half

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Speaker 1: that half that um and uh, what's remarkable to me?

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Speaker 1: And I thought this was the case when we wrote

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Speaker 1: our research and our our book back in the early nineties,

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Speaker 1: that the judgment would be based on what happened subsequently,

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Speaker 1: on what the research subsequently shows. And overwhelmingly, the research

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Speaker 1: has found that moderate increases in the minimum wage do

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Speaker 1: not have a noticeable effect unemployment, that moderate increases in

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Speaker 1: the minimum wage tend to boost wages, tend to support consumption,

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Speaker 1: yet don't have an adverse effect unemployment, in part because

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Speaker 1: the job market is not as competitive as we like

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Speaker 1: to think. There are frictions in the job market, bargaining

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Speaker 1: power matters, and the minimum wage sets a norm for

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Speaker 1: what's acceptable wages. Now, I do have some concerns about

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Speaker 1: the minimum wage going too high, because even in the

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Speaker 1: non competitive labor market, you can set the minimum wage

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Speaker 1: above the point where it does more good than harm.

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Speaker 1: And fifteen dollars, frankly, is beyond the experience that we've

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Speaker 1: had in the US and beyond the experience in almost

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Speaker 1: every other country. So I think that would take us

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Speaker 1: into uncharted waters. But I'm quite comfortable saying that going

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Speaker 1: up to a range like twelve dollars an hour would

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Speaker 1: have more benefits for low wage workers for us. Or Krueger,

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Speaker 1: thank you so much for being with us today. Our

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Speaker 1: people are looking at your people. You're entourage, e Lane.

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Speaker 1: She's screaming, get him out of here. Alan Krueger has gone.

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Speaker 1: The former Protger can always take you know, we'll rub

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Speaker 1: up the script sometime and he can. He can come

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Speaker 1: back anytime. He was He's enchourage is coming right into

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Speaker 1: the studio to drag him out. It's so rude. He's

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Speaker 1: the former chairman of the President's Council of Economic Advisors.

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Speaker 1: Alan Krueger of Princeton University, fugures up five downfugures up

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Speaker 1: forty three. Mickey Leavey to join us, thrilled with that.

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Speaker 1: With Barrenberg Capital Markets also joining us today. William Gross,

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Speaker 1: we'll speak to him for Janice Capital with an important note.

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Speaker 1: A few days ago he said banking, he's warning the

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Speaker 1: sun is going to burn out it, yeah, or or

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Speaker 1: something like that. Bill Gross will join us after the

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Speaker 1: jobs report. Yeah, well, we'll look at that. We begin

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Speaker 1: another hour here and then on to the nine o'clock

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Speaker 1: our of Bloomberg surveillance, and of course in thirty two

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Speaker 1: minutes we will do what we do, which was gonna

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Speaker 1: go but eath the headline data to inform you on

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Speaker 1: America's labor economy. Michael McKee and Tom King coast to

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Speaker 1: coast worldwide Bloomberg Surveillance