WEBVTT - Bloomberg's Torres on Brutal Journey Back to Work (Audio)

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<v Speaker 1>Broadcasting live to New York, Bloomberg eleventh, wo to Washington,

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<v Speaker 1>d C, Bloomberg to Boston, Bloomberg Well, undreg to San Francisco,

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<v Speaker 1>Bloomberg nine to the Country, Joe's Exam General one nineteen

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<v Speaker 1>and around the globe the Bloomberg Radio plus Apen, Bloomberg

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<v Speaker 1>dot Com. This is taking Stock. I'm Kathleen Hayes Long

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<v Speaker 1>with PIM Fox. We're live at Pershing's Inside sixteen conference

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<v Speaker 1>at the Highett Regency in Orlando. As we keep the

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<v Speaker 1>Federal Reserve in focus, We're going to ask why is it,

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<v Speaker 1>with unemployment at four point seven percent, that the Chairman

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<v Speaker 1>of the Federal Reserve, for the chairwoman, I should say,

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<v Speaker 1>Janet Yellen, is not in a bigger hurry to raise

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<v Speaker 1>the key rate PIM. It might have something to do

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<v Speaker 1>with the fact that the underemployment rate is nearly ten

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<v Speaker 1>percent in this country. We're going to hear about the

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<v Speaker 1>brutal journey back to work for millions of Americans. Yes,

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<v Speaker 1>we'll be joined by our Federal Reserve reporter Craig Torres

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<v Speaker 1>will be joining us from Washington. Right now, Let's go

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<v Speaker 1>to the newsroom and Charlie Pellett with the Bloomberg Business

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<v Speaker 1>flat man, and we've got the bulls back of work him.

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<v Speaker 1>The Dow, the SMP, Nestank, they are all advancing. SMP

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<v Speaker 1>five hundred index up seven points now a gain of

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<v Speaker 1>three tents of one percent at twenty one nine down

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<v Speaker 1>Industrials up fifty nine to seventeen thousand, nine ninety seven.

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<v Speaker 1>Again there are three tenths of one percent. Nastank also

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<v Speaker 1>advancing by three tenths of one percent. SMP five hundred

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<v Speaker 1>index holding at the highest since July, bolstered by speculation

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<v Speaker 1>borrowing costs will remain lower for longer amid moderate growth.

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<v Speaker 1>Hewlett Packard Enterprise CEO Meg Whiffan just wrapping up an

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<v Speaker 1>interview on Bloomberg Television. She talked about the outlook for acquisitions,

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<v Speaker 1>among other topics. We are interested in M and A,

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<v Speaker 1>but at the right price in complementary areas. So, for example,

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<v Speaker 1>what has worked well for us is the opposition of

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<v Speaker 1>three par three Calm and Aruba, great complementary technologies that

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<v Speaker 1>we can put through our distribution system. And by the way,

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<v Speaker 1>they weren't overly expensive. We fad We paid a very

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<v Speaker 1>fair price for those companies but it wasn't at sixty

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<v Speaker 1>seventy eight times multiple. She spoke to us from HPEES

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<v Speaker 1>Annual Discover Conference in Las Vegas. Hewlett Packard Enterprise shares

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<v Speaker 1>up now by one point six percent. Crude oil holding

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<v Speaker 1>above fifty one dollars a barrel of eighty one cents

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<v Speaker 1>now advancing one point six percent to fifty one eighteen

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<v Speaker 1>Gold up sixteen forty v ounce of one point three

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<v Speaker 1>percent now to twelve sixty three. Lulu Lemon out with

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<v Speaker 1>earnings this morning's uh this morning of shares advancing now

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<v Speaker 1>by four point nine percent. Lulu Lemon at seventy six

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<v Speaker 1>It is up by three dollars thirty one cents to

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<v Speaker 1>thirty two on Wall Street. Now, let's take a look

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<v Speaker 1>at other news from around the world. On Bloomberg Radio.

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<v Speaker 1>Thank you, Charlie from the Bloomberg News Room. I'm Sherry On.

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<v Speaker 1>Hillary Clinton has claimed victory in the race for the

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<v Speaker 1>Democratic presidential nomination, becoming the first woman to run as

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<v Speaker 1>a candidate of a major US party. She won four

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<v Speaker 1>of the sixt eights holding primary door concusses yesterday, including California.

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<v Speaker 1>Bernie Sanders says he won't give up, although the Associated

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<v Speaker 1>Press reports is laying off about half of his staff today.

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<v Speaker 1>Donald Trump won the Republican presidential primary in California, but

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<v Speaker 1>many GEOP leaders are struggling to rally behind him. Main

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<v Speaker 1>Republican Senator Susan Collins says she would like to endorse Trump,

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<v Speaker 1>but he needs to stop insulting people. He is the

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<v Speaker 1>one who needs to start acting more presidential and articulate

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<v Speaker 1>clearly what a Trump presidency would look like. In a

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<v Speaker 1>speech yesterday, Trump took a more unifying path, vowing never

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<v Speaker 1>to let GOP voters down authorities, saying at least five

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<v Speaker 1>people are dead following I hit a run involving cyclists

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<v Speaker 1>in Michigan. Kalamazoo County of Prosecuting Attorney Jeffrey Getting says

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<v Speaker 1>the bike riders probably didn't know what happened. They were

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<v Speaker 1>all north found, they were all on the right shoulder

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<v Speaker 1>of the road. Who pick up. Trump was also morth

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<v Speaker 1>found struck them from behind the head of the and

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<v Speaker 1>its correction officers union is facing federal corruption charges along

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<v Speaker 1>with a hedge fund founder. The FBI says Norman C.

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<v Speaker 1>Brook and Murray Hoberfeld, the hedge fund founder, have been arrested.

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<v Speaker 1>Haberfeld is accused of paying kickbacks to Seabrook. In return,

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<v Speaker 1>Seabrook agreed to transfer millions to a hedge fund operated

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<v Speaker 1>by Hoberfeld and others. Global News twenty four hours a

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<v Speaker 1>D eight powered by our hundred journalists in more than

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<v Speaker 1>a hundred and fifty news bureaus around the world from

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<v Speaker 1>the Bloomberg News Room. I'm Sherry, Anne, Charlie, and we

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<v Speaker 1>thank you, and we are brought to you by Sector

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<v Speaker 1>spider E t FS. Why by a single stock when

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<v Speaker 1>you can invest in the entire sector of visits, Sector

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<v Speaker 1>sp d r S dot com recall Sector et F

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<v Speaker 1>stocks are advancing SMP up seven now a gain of

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<v Speaker 1>three tenths of one percent. I'm Charlie Pellatin. That's a

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<v Speaker 1>Bloomberg business flash is taking stock. The FED in Focus

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<v Speaker 1>on Bloomberg Radio were brought casting live from Persians inside

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<v Speaker 1>six conference at the Highatt Regency in Orlando, Florida. The

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<v Speaker 1>topic is the labor market. Unemployment four point seven percent.

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<v Speaker 1>That is down from the nine and a half percent

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<v Speaker 1>level when the economy started expanding in June of two

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<v Speaker 1>thousand and nine. Indeed, employers have been adding an average

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<v Speaker 1>of about a hundred and fifty thousand jobs a month

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<v Speaker 1>so far this year, but there are still troubling issues

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<v Speaker 1>in the job marketing. Here to tell us more. As

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<v Speaker 1>Craig Torres, Federal Reserve reporter for Bloomberg News, joining us

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<v Speaker 1>from Washington. Craig, thanks for being with us the good news. Yes,

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<v Speaker 1>unemployment four point seven percent and as I noted, hundred

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<v Speaker 1>and fifty thousand jobs on average being created each month.

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<v Speaker 1>But in your most recent article you write that it

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<v Speaker 1>has been a brutal journey back to work for millions

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<v Speaker 1>of Americans. Tell us more. I think that is driving

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<v Speaker 1>the sentiment we're seeing play out in the election, which

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<v Speaker 1>you could use any number of words from anger, bitterness, uh,

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<v Speaker 1>kind of a shattered American dream, kind of feeling. Um.

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<v Speaker 1>It did take people who lost their jobs a long

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<v Speaker 1>time to get back to work, and often they ended

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<v Speaker 1>up in jobs that were lower paying, less benefits, and

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<v Speaker 1>less security. So we went back and talked to some

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<v Speaker 1>of the people we interviewed when they were unemployed and

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<v Speaker 1>asked them what was it like back to employment? And

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<v Speaker 1>the stories weren't pretty. So Craig, uh, tell us some

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<v Speaker 1>of the stories. Uh, And it seems a lot of

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<v Speaker 1>us know unfortunately, Um, friends of friends, even you know,

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<v Speaker 1>some family members that are really on tough times, really

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<v Speaker 1>having a hard time finding a job. Give us an

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<v Speaker 1>example and tell us is it is it really different

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<v Speaker 1>from other times coming out of business cycles. Um. So,

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<v Speaker 1>one person we interviewed in our story today was Sally Richards.

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<v Speaker 1>She I think she's a great example. So she's a lawyer,

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<v Speaker 1>ran her own practice in Ohio, had more than a

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<v Speaker 1>hundred clients, and so she moves to d C kind of,

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<v Speaker 1>you know, for family reasons, personal reasons, figuring she would

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<v Speaker 1>land a job pretty quickly. Um, ended up looking for

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<v Speaker 1>two years. Um, you know, just hearing nothing back from employers. Um,

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<v Speaker 1>building up a debt pile. And I'll tell you, Kathleen,

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<v Speaker 1>when you talk to these people, what's hard to reflect

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<v Speaker 1>in print, It is when you're sitting in front of

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<v Speaker 1>them as a reporter. Um, what's hard to reflect in

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<v Speaker 1>print is this sort of anguish you see like someone

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<v Speaker 1>it's like someone who just went to a fight or

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<v Speaker 1>a cancer battle or something like that. It costs these

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<v Speaker 1>people a lot personally, not only financially, but as I

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<v Speaker 1>say in the story, like from a self esteem standpoint,

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<v Speaker 1>it was very expensive. Craig, if you can describe what

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<v Speaker 1>is the thread that runs through all of these stories

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<v Speaker 1>for you? I think Tim, the threat is, this isn't

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<v Speaker 1>the America that I grew up in. Um, This isn't

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<v Speaker 1>the America that I'm used to. This isn't the America

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<v Speaker 1>that UM is, you know, that had the promises that

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<v Speaker 1>if you work hard, that you would get ahead. It's

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<v Speaker 1>it's defeating, and it's it's confusing, and and there often

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<v Speaker 1>aren't answers why nobody's gonna is calling you back, for example,

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<v Speaker 1>And so I find I find that very troubling as

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<v Speaker 1>many people in the electorate obviously, and obviously if the

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<v Speaker 1>people like this easily can slip into losing their homes

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<v Speaker 1>and their apartments, and the homelessness is a growing problem

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<v Speaker 1>even for people like this, so kind of fall through

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<v Speaker 1>the cracks. Um in some sense, then is Janet on

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<v Speaker 1>what we would call debbishness. She's a labor market economists.

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<v Speaker 1>Her her sense of, oh, yes, the economy is doing better.

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<v Speaker 1>But then she says right after that, of course there's

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<v Speaker 1>still a lot of slack. Is that is she's you know,

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<v Speaker 1>really in connecting into this ethos as well, do you think, Craig,

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<v Speaker 1>I think one of the odd things, a little bit odd,

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<v Speaker 1>is this gamble she's making um that if she just

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<v Speaker 1>runs the economy hot enough, good things will happen. It's

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<v Speaker 1>a it's a it's hard to appreciate what a big

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<v Speaker 1>gamble that is because the reason people apply for jobs

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<v Speaker 1>and don't hear back or kind of structural. Give you

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<v Speaker 1>an example, there's this software that almost every employer uses

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<v Speaker 1>called to Leo. So if you apply for a job today,

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<v Speaker 1>chances are probably eight out of ten that you're going

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<v Speaker 1>to be on some to LEO interface. To Leo is

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<v Speaker 1>this impersonal scoring of your resume, of your personal data.

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<v Speaker 1>Even though it doesn't ask your age, it figures out

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<v Speaker 1>your age, and the hiring manager just sees basically a

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<v Speaker 1>bunch of statistics, never sees the person, and this allows

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<v Speaker 1>them to flip through dozens and hundreds of applicants in

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<v Speaker 1>a highly in personal way. Can the said really change

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<v Speaker 1>something like that? Maybe? Maybe maybe if you push the

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<v Speaker 1>economy down to like two unemployment, people will be scrambling

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<v Speaker 1>to have, you know, for talent. But I don't think so.

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<v Speaker 1>I mean, Craig Tores, thank you so very much an

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<v Speaker 1>eye opening story. I highly recommend that everybody take a

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<v Speaker 1>look at it. I'll tweet it out Pim and I'll

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<v Speaker 1>teat out at Craig Torres and everybody can read it.

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<v Speaker 1>This afternoon, Well, I'm Kathleen Hays along with Pim Fox,

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<v Speaker 1>and we are broadcasting live at Person's Insight Conference in Orlando.

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<v Speaker 1>The fed in Focus is brought to by Willoughby since

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