Speaker 1: Broadcasting live to New York, Bloomberg eleventh, Brio to Washington,
Speaker 1: d C, Bloomber to Boston, Bluemberg, Well Undis to San
Speaker 1: Francisco Bloomberg nine to the Country's series Exam Channel one
Speaker 1: nineteen and around the globe the Bloomberg Radio plus Zappen
Speaker 1: Bloomberg Got Gone. This is taking Stock. Coming up on
Speaker 1: taking stock, will take stock of labor and its implications
Speaker 1: for the European Union. For example, in early June, and
Speaker 1: we're protests in Paris over French labor reform bills. They
Speaker 1: turned violent. Forty people were injured, seventy five thousand demonstrators
Speaker 1: convening in the capital to block the new reform bill.
Speaker 1: We've got details, but right now we'll go to Charlie
Speaker 1: Pellett in the Bloomberg newsroom for details. And I think
Speaker 1: you very much. Pim Fox, the DAL, the SMP NEZ
Speaker 1: tank all trading higher twenty nine minutes to go ahead
Speaker 1: of the clothes on a Tuesday. Here SMP five hundred
Speaker 1: index at a record now at fifty two, up fifteen points.
Speaker 1: That is a gain of seven tenths of one percent down.
Speaker 1: Jones Industrial Average also at a record on track for
Speaker 1: a record close here at eighteen thousand, three hundred fifty one,
Speaker 1: the Dow rallying a hundred and twenty four points, up
Speaker 1: seven tenths of one percent, and Nasdaq also hired by
Speaker 1: seven tenths of one percent, up thirty five points to
Speaker 1: five thousand, twenty four down. Jones Industrial Average gaining and
Speaker 1: along with the smp is investors way corporate health amid
Speaker 1: the start of earning season. Alcohol reported last night it
Speaker 1: is now up by five point one percent. Gold dropping
Speaker 1: the most in seven weeks as stock markets climb on
Speaker 1: speculation that policy makers will act to spur growth. Right now,
Speaker 1: gold is down twenty two sixty the ounce the thirteen
Speaker 1: thirty four, that is a drop of one point seven percent.
Speaker 1: Dennis Gartman is the editor of the Garment Letter. He
Speaker 1: was interviewed this morning on Bloomberg Surveillance on Currency Trader.
Speaker 1: We were always taught from uh from the outset to
Speaker 1: be a buyer of one currency as seller of another.
Speaker 1: So I tend to be a buyer of gold in
Speaker 1: euro terms. I tend to be a buyer of gold
Speaker 1: in the end terms, and honestly, over the court of
Speaker 1: past several actually over the course of past several years.
Speaker 1: It's been a far better trade to have been involved in,
Speaker 1: and it reduces the daily volatility, it reduces the abject
Speaker 1: movements of gold. American Airlines Group expects new credit card
Speaker 1: deals with City Group in Barkley's to boost its pretax
Speaker 1: income by about one point five five billion dollars over
Speaker 1: the next two and a half years. American Airlines Flying
Speaker 1: high up eleven point four percent three thirty two on
Speaker 1: Wall Street. Now, let's take a look at other news
Speaker 1: from around the world. Thank you, Charlie from the Bloomberg
Speaker 1: News room. I'm Jill Schneider in Dallas at this hour
Speaker 1: a somber goodbye for five Dallas police officers who were
Speaker 1: killed in an ambush last week. President of Bamba addressed
Speaker 1: thousands of mourners, saying Dallas and the entire nation are
Speaker 1: suffering the memory and more in the loss five fellow Americas.
Speaker 1: Dallas Mayor Mike Rawlings also spoke, pointing out the presence
Speaker 1: of some of his fellow city leaders. These men and
Speaker 1: women are here with us because they know we have
Speaker 1: a common disease, this absurd violence on our streets. Former
Speaker 1: President George W. Bush also made remarks The attorney for
Speaker 1: the family of a Minnesota black man who was shot
Speaker 1: and killed by police during a traffic stop, says there
Speaker 1: will be a lawsuit against the officer who fired the
Speaker 1: Shops attorney Glenna Hatchett today announced the planned litigation in
Speaker 1: the death of Philando Castile. State officials are still investigating
Speaker 1: the shooting. The decision on possible criminal charges will fall
Speaker 1: to a local county attorney. Senator Bernie Sanders has offered
Speaker 1: his long awaited endorsement to Hillary Clinton. The two appeared
Speaker 1: on stage together at a rally in Portsmouth, New Hampshire.
Speaker 1: They have to reform our broken criminal justice system, take
Speaker 1: back our democracy from the wealthy special interests, and make
Speaker 1: our economy work for everyone, not just those at the top.
Speaker 1: Republican presumptive nominee Donald Trump accused Sanders of selling out
Speaker 1: to Clinton. Global News twenty four hours a day, powered
Speaker 1: by more than journalists and analysts in more than one
Speaker 1: twenty countries. I'm Jill Schneider, and this is Bloomberg, Charlie,
Speaker 1: and we thank you, and again we capping S and
Speaker 1: P five hundred index up sixteen points to three, a
Speaker 1: gain of seven tenths of one percent. I'm Charlie Peloton.
Speaker 1: That's a Bloomberg business flash. You're listening to taking stock
Speaker 1: with bim Box at Kathleen Hayes on Bloomberg Radio. Labor
Speaker 1: reform labor reform in the European Union. In early June,
Speaker 1: European Central Bank Executive board member ben Wa Korree issued
Speaker 1: a lee for quick adoption of economic reforms throughout Europe. Indeed,
Speaker 1: he said that the Eurozone risks suffering a lost generation
Speaker 1: because of high youth unemployment. Here to tell us more
Speaker 1: about labor markets in Europe is Elaria Masselli, senior economists
Speaker 1: for Europe for the Conference Sports. He's based in Brussels,
Speaker 1: but joins us here in our studio in New York. Hilaria,
Speaker 1: thank you very much for being with us. Thank you
Speaker 1: for inviting me. So set the stage if you can
Speaker 1: describe for people that may not be following what's going
Speaker 1: on in labor reform in the European Union, what is
Speaker 1: or isn't happening, and maybe compare it to some of
Speaker 1: the issues that we face in the United States. Okay, well,
Speaker 1: and he's a question to start here there, you go right,
Speaker 1: just to do it all once, Okay, well, I will
Speaker 1: start perhaps on what I see as the biggest problem
Speaker 1: in the European labor markets. UM, not all of them,
Speaker 1: because let's remember I mean Europe. You know, you can
Speaker 1: show statistics with every for the urala European Union, but
Speaker 1: it's made of very diverse economies within. But notwithstanding the differences,
Speaker 1: I would say that a big problem is the dualization
Speaker 1: of the labor market. I'll explain what I mean. It
Speaker 1: means that there is a generation of works, a portion
Speaker 1: of the workers that enjoy let's say, the full package
Speaker 1: of all the benefits that were negotiated some fifty sixty
Speaker 1: years ago, and then there is UH. And then there
Speaker 1: were a series of labor market reforms that started in
Speaker 1: the nighties in in a lot of European economies, and
Speaker 1: these reforms were called well, we're liberalizing in the labor market,
Speaker 1: but on the margin. And on the margin it means
Speaker 1: that we're introducing all forms of flexible contracts, temporary work
Speaker 1: arrangements and UM, without touching what was there already. So
Speaker 1: you have right now in France, in Italy, in Spain,
Speaker 1: to some extent in Germany, you have a lot of
Speaker 1: workers which enjoy it let's say two thirds or four
Speaker 1: fifths of the workers that enjoy the full package UM,
Speaker 1: and then you have a portion of workers, most likely
Speaker 1: young workers that's uh, that a much weaker position in
Speaker 1: the labor market. So I think all the attempts to
Speaker 1: do reforms should aim at rebalancing this situation. So is
Speaker 1: that similar for example to let's say the US airline
Speaker 1: industry that negotiates contracts and has the pilots that are
Speaker 1: veterans who have been in those positions for many years.
Speaker 1: They enjoy the pay and the benefits of those and
Speaker 1: that new pilots perhaps coming into the company they work
Speaker 1: under a different contract. Yes, and they have the longer
Speaker 1: hours for example of work and UM, much more limitations
Speaker 1: on sickness for example, or maternity leaves UM. So there
Speaker 1: is an unfair distribution of rights, and to some extent
Speaker 1: this distribution is also generational. And this is why UM
Speaker 1: young workers feel really affected by this by the crisis.
Speaker 1: In your analysis, tell us countries in Europe that you
Speaker 1: feel are doing the right thing when it comes to
Speaker 1: labor reform and those that are dragging their feet, Well,
Speaker 1: the model, I would say is the Scandinavian model. UM.
Speaker 1: It's a very interesting equilibrium because um, everyone enjoys UM
Speaker 1: a lot of a lot of benefits. I mean, the
Speaker 1: Scandinavian welfare system is perhaps the best system in the world.
Speaker 1: At the same time, it's very convenient for companies. There
Speaker 1: are a lot of profitable companies that operate in Copenhagen
Speaker 1: or in Stockholm and UM well, if if there is
Speaker 1: a problem within a labor relationship, they can easily higher
Speaker 1: fire people. And at the same time this is not
Speaker 1: a drama because the system is there to help you.
Speaker 1: And also you're sure that you will find another job
Speaker 1: easily because if you're, for example, your skills are outdated,
Speaker 1: there is a whole system of ACTI labor market policies
Speaker 1: that would really help you to to be trained again
Speaker 1: and then be employable the relatively easily. So in this
Speaker 1: system you have very low unemployment rates, very high employment rates,
Speaker 1: everyone works UM and everyone is happy. It's called flex security.
Speaker 1: Is that something that could have been adopted by the
Speaker 1: United Kingdom. Why didn't David Cameron, the former Prime Minister,
Speaker 1: push for that kind of system. Oh, that's the one
Speaker 1: billion dollar question. Because UM, of course, how generous systems
Speaker 1: are welfare systems are depends on depend on um preferences
Speaker 1: of the people, because a system like the Danish one
Speaker 1: is also an expensive system, which means that people pay
Speaker 1: quite high taxes UM and maybe you know, the same
Speaker 1: system could not be applied in the United States, where
Speaker 1: there is a different preferences. There are different preferences compared
Speaker 1: on this on this domain also there is another challenge.
Speaker 1: So actually one my my my TASiS when I wasn't
Speaker 1: Universe City was on, exported this model to Italy, which
Speaker 1: is my home country, and the bitter conclusion of that
Speaker 1: was that it's not possible because it requires a lot
Speaker 1: of management. You know, every single unemployed worker needs assistance,
Speaker 1: and every single UM employee of a of a local
Speaker 1: local office so that manages active level market policies, needs
Speaker 1: to be trained in order to provide the type of assistance.
Speaker 1: So it's really working on each single person, and not
Speaker 1: every system has that capacity. I want to thank you
Speaker 1: very much for coming and spending time and look forward
Speaker 1: to having you again on the program in the future.
Speaker 1: Larry Maseli is Senior Economist for Europe the Conference Board
Speaker 1: based in Brussels, speaking about labor market reform in Europe.
Speaker 1: You're listening to taking Stock. I'm pim Fox and this
Speaker 1: is Bloomberg coming up on taking Stock. Weaker earnings, higher multiples. Strategists,
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Speaker 1: Will find out more from Jonathan Golob of RBC Capital
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