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

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Speaker 1: dot com, the radio, plus mobile, lapt and on your radio.

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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Handquarters.

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Speaker 1: I'm Charlie Pallett's stocks are lower. The DAL, the SMP,

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Speaker 1: and nez DAK all declining. And this update brought to

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Speaker 1: you by Sector Spider e t S. Why by a

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Speaker 1: single stock when you can invest in the entire sector.

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Speaker 1: Visit sector sp d r S dot com or call

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Speaker 1: one six Sector e t F sell off today in

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Speaker 1: oil has sent stock slumping, the SMP five index erasing

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Speaker 1: its monthly gain. Crude oil West Texas Intermediate down three

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Speaker 1: point seven percent, dropping a dollar seventy two forty four

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Speaker 1: sixty two. Right now on West Texas Termedia, Crude Brent

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Speaker 1: is down two point seven percent at forty seven oh

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Speaker 1: five of barrel gold also lower down four tenths of

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Speaker 1: one percent, dropping four ninety eight the year up one

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Speaker 1: thirty second the yield one point five six SMP down

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Speaker 1: eight sixty seven to drop of four tenths of one percent.

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Speaker 1: The DOWBT down seventy one points, also a drop of

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Speaker 1: four tenths of one percent. I'm Charlie Pellett, and that's

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Speaker 1: a Bloomberg business flash Bloomberg taking stock the FED in focus.

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Speaker 1: There's certainly a large discussion about whether or not the

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Speaker 1: set is going to try to hike rate again this year.

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Speaker 1: We think the Fed by December will be ready to

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Speaker 1: do another hike. That sounds like a big difference from

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Speaker 1: the markets, but it's not that big a difference. I

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Speaker 1: think at this point the set is going to remain

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Speaker 1: on the sideline through and most likely the better part

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Speaker 1: of seventeen. I think they have a huge communication problem

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Speaker 1: for the public about what's driving their policy decisions. They

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Speaker 1: basically have no strategy the Fed in focus on Bloomberg

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Speaker 1: Radio that observe caping an eagle's eye on the job's

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Speaker 1: report if there is another, very strong one. A lot

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Speaker 1: of people on wall streets saying, hey, interest rate increase,

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Speaker 1: maybe not in December, maybe even in September. So a

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Speaker 1: lot writing on this right now. We want to take

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Speaker 1: a look not from the top down, from the point

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Speaker 1: of view of the big jobs report put out by

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Speaker 1: the Labor Department on Friday, but from the ground up.

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Speaker 1: Tom Gimble is founder of c and CEO of Lasal Network.

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Speaker 1: It is a professional staffing and recruiting service firm based

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Speaker 1: in Chicago's we want to find out what he's seeing

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Speaker 1: out in the field, where the demand is for workers

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Speaker 1: and where it isn't. Tom, welcome back to the show.

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Speaker 1: No good to be with you. Thanks for having me on.

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Speaker 1: You know, they one of the big picture trends that

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Speaker 1: comes out of the ADP report and out of the

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Speaker 1: government data as well. If you look August, you see

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Speaker 1: the UH softness for goods producing jobs, manufacturing, service producing jobs,

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Speaker 1: some of them high paid, you know, professional services business,

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Speaker 1: some of them not so much. You know, restaurant workers,

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Speaker 1: fast food. That's where you see practically all the gains.

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Speaker 1: What are you seeing from your point of view in Chicago, Well,

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Speaker 1: I think in the Midwest we have a national practice

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Speaker 1: and we do we do temporary staffing as well as search,

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Speaker 1: and we see all over the country and especially in

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Speaker 1: the Midwest, is UH continued strong demand for UH skilled workers.

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Speaker 1: I mean, the skills gap will always exist UM as

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Speaker 1: long as technology keeps going at the pace that that

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Speaker 1: it has been for the past twenty years. And I

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Speaker 1: don't see that slowing down. So technology is big. Accounting

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Speaker 1: and finance is big we're seeing still a big Russian

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Speaker 1: marketing and data analytics. But you're you're you know, I

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Speaker 1: always look at it and see that if hospitality and

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Speaker 1: service worker demand and is on the increase, that that

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Speaker 1: is a pretty good signal for the economy. And I'm

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Speaker 1: pretty bullish on where things are right now. So you're

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Speaker 1: saying that you're there, are there's demand for the high

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Speaker 1: skilled workers. We've had reports from say from the National

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Speaker 1: Federation of Independent Business Survey and others UH companies say

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Speaker 1: we can't find the skilled workers we need. Is that

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Speaker 1: changing or are their gaps still? No? There there's definitely

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Speaker 1: a skills gap, and it tends to be in the

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Speaker 1: technology side of thing is more than anything else, as

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Speaker 1: well as data analytics is more and more companies want

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Speaker 1: to play that um moneyball, if you will, an analogy

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Speaker 1: type of business and big data metrics. But it's still

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Speaker 1: there's no signs of a slowdown yet, you know, I

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Speaker 1: think where things will be after December one, when the

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Speaker 1: overtime legislation goes into effect for people making less than

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Speaker 1: forty seven thousand dollars, and how that affects the average

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Speaker 1: or average company in America. But right now, things seem

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Speaker 1: to be holding very very strong. Let me ask let

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Speaker 1: me ask you this. Are you saying things look good

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Speaker 1: in your bullets they continue to grow at the same rate.

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Speaker 1: Are you saying, no, Kathleen, over the last six months

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Speaker 1: or have last twelve months, this is accelerated. I seem

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Speaker 1: a growing demand for workers. Are just kind of the

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Speaker 1: same steadiness. No, I've seen a bigger demand. I think

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Speaker 1: companies are hiring right now. They're excited about you know,

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Speaker 1: I think people are similar to what the Fed was right.

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Speaker 1: They were looking and saying the Fed isn't raising interest

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Speaker 1: rates so um, but they are thinking about doing it.

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Speaker 1: And they're thinking about it because the economy is good.

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Speaker 1: And the people on main street or who are running

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Speaker 1: small and medium sized businesses call it mid cap stuff

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Speaker 1: under a billion two billion dollars in revenue uh down

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Speaker 1: to startups ten fifty million dollar companies are saying, let's

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Speaker 1: hire people, let's take advantage of this economy while we can,

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Speaker 1: and God only knows what will happen in November, and

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Speaker 1: let's let's hire people right now and grow our revenues. Tom,

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Speaker 1: do you think it would make any difference to the

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Speaker 1: businesses who call you up to have you, you know,

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Speaker 1: filled some positions for them Chicago, across the country. If

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Speaker 1: the Friend to Reserve made a couple of interest rate

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Speaker 1: increases this year, you know. I I thought, and and

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Speaker 1: and and it happened obviously in December that last year

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Speaker 1: there would be an increase. I was a little bit skeptical,

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Speaker 1: skeptical of them doing a rate increase earlier in the year,

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Speaker 1: and was glad that they didn't and they let the

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Speaker 1: economy kind of absorb what happened at the end of fifteen.

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Speaker 1: My guess is, um I would like to not see

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Speaker 1: them do one. I think when I talked to CEOs,

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Speaker 1: especially in the at Weston, we see it'd be nice

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Speaker 1: to get through this election and have things to stay

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Speaker 1: at the status quo and not have people worried about rate.

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Speaker 1: Interesting you mentioned this this change in the Liberal laws

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Speaker 1: where managers uh, this this out the the salary cap

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Speaker 1: is gonna be lift lifted right, so that they can

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Speaker 1: make more money and and still get over time. Where

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Speaker 1: there's also a lot of states enacting minimum wage increases. Now,

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Speaker 1: is this going to really hurt businesses to the extent

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Speaker 1: they don't hire as many workers or are we at

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Speaker 1: a point of enough strength in the economy that companies

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Speaker 1: will just shrug it off because they really need the workers. Now,

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Speaker 1: I think it's gonna be I think short term it doesn't.

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Speaker 1: It's really in that neutral. I think long term it's

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Speaker 1: in that negative. And the reason I feel that way

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Speaker 1: is what we're gonna have is the effects coming in

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Speaker 1: of the Affordable Care Act three years after legislation went

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Speaker 1: into effect, which we just saw in Illinois that another

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Speaker 1: couple insurance carriers um stop stop servicing the plans, right

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Speaker 1: and then and we're seeing that across the country. And

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Speaker 1: then secondly, we have the overtime or the minimum wage increasing,

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Speaker 1: you know, it's at ten fifty and a lot of

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Speaker 1: states now and going up to eleven eleven fifty twelve

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Speaker 1: bucks up to fifteen over the next five to seven years.

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Speaker 1: And then the last straw on that um or last

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Speaker 1: needle on the hair or hay on the haystack, if

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Speaker 1: you will, is being dumped on is the overtime exemption.

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Speaker 1: So I think what we'll end up doing is is

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Speaker 1: when we're gonna start feeling the effects of this legislation,

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Speaker 1: it's not gonna be good. Alright. Tom Gimble, thank you

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Speaker 1: so very much. Tom Gimble, founder and CEO of Lassall Network,

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Speaker 1: based in Chicago, a national professional service recruitment placement firm.

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Speaker 1: He says he's bullish the rate of increasy amount of

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Speaker 1: workers being hired is doing better, but that might be

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Speaker 1: a little slow on rate tax that they're listening to him.

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Speaker 1: This is Bloomberg coming up on a taking stock more

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Speaker 1: of our federal reserve in focus now with Mark Grant,

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Speaker 1: he's chief fixed Income Strategies at Tilltop Securities. Here what

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Speaker 1: the Wizard has to say about the bond rally on

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Speaker 1: taking stock