1
00:00:04,080 --> 00:00:08,400
Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington,

2
00:00:08,480 --> 00:00:13,480
Speaker 1: d C, Bloomberg to Boston, Blueberg twelve hundred to San Francisco,

3
00:00:13,640 --> 00:00:17,600
Speaker 1: Bloomberg to the country. Joe is exam General one nine

4
00:00:17,960 --> 00:00:20,960
Speaker 1: and around the globe the Bluemberg Radio plus Zapp and

5
00:00:21,040 --> 00:00:25,200
Speaker 1: Bloomberg Dot Gone. This is Taking Stock. Coming up on

6
00:00:25,280 --> 00:00:28,720
Speaker 1: Taking Stock to government data showing that employers added just

7
00:00:28,760 --> 00:00:32,680
Speaker 1: a hundred and sixty thousand jobs in April, the unemployment

8
00:00:32,800 --> 00:00:36,360
Speaker 1: or rate holding steady at five percent. We're gonna be

9
00:00:36,400 --> 00:00:40,720
Speaker 1: speaking with Heidi Shierholtz, Labor Secretary. Tom Perez is Chief

10
00:00:40,840 --> 00:00:44,199
Speaker 1: Economists find out what's going on with hiring. But right

11
00:00:44,200 --> 00:00:45,479
Speaker 1: now we want to know what's going on with the

12
00:00:45,520 --> 00:00:47,760
Speaker 1: world and business news. Let's go to Catherine Cowdery in

13
00:00:47,800 --> 00:00:50,120
Speaker 1: the Bloomberg news room. Thank you, bam Well. The stock

14
00:00:50,159 --> 00:00:53,480
Speaker 1: market is staging a comeback. Resource producers are rallying, along

15
00:00:53,479 --> 00:00:56,720
Speaker 1: with prices for medals from gold to cover. Treasuries are

16
00:00:56,760 --> 00:00:59,760
Speaker 1: still declining. A slowdown in jobs growth, coupled with accelerating

17
00:00:59,760 --> 00:01:02,480
Speaker 1: weight gains did little to change views on the timing

18
00:01:02,520 --> 00:01:05,600
Speaker 1: for higher interest rates. Mohammad al Aary in Chief Economic

19
00:01:05,600 --> 00:01:08,520
Speaker 1: advisor at Alliance and a Bloomberg View columnist had this

20
00:01:08,600 --> 00:01:12,160
Speaker 1: reaction to the jobs report. If you look at the

21
00:01:12,240 --> 00:01:17,400
Speaker 1: internals of this employment report is actually quite mixed. So

22
00:01:18,319 --> 00:01:22,440
Speaker 1: to conclude that quickly that June is completely out of

23
00:01:22,480 --> 00:01:24,680
Speaker 1: the question and that we're unlucky to get a hike

24
00:01:24,720 --> 00:01:27,560
Speaker 1: in twenty sixteen, I think it's going to fall. We

25
00:01:27,720 --> 00:01:30,560
Speaker 1: check Americas every fifteen minutes throughout the trading Daydale Industrial

26
00:01:30,640 --> 00:01:33,479
Speaker 1: average is up sixty nine points. I gained a four

27
00:01:33,520 --> 00:01:35,880
Speaker 1: tents of a percent of training at seventeen thousand, seven

28
00:01:35,920 --> 00:01:38,560
Speaker 1: hundred twenty nine. S and P five funded up five

29
00:01:38,600 --> 00:01:41,199
Speaker 1: points a quarter percent, trading at two thousand fifty five.

30
00:01:41,560 --> 00:01:43,800
Speaker 1: The NASAC is higher by nine points to tens of

31
00:01:43,840 --> 00:01:46,640
Speaker 1: a percent. Is trading at forty seven twenty six. West

32
00:01:46,640 --> 00:01:49,280
Speaker 1: Texas Centermedia Crude oil up twenty eight cents of barrel

33
00:01:49,320 --> 00:01:51,640
Speaker 1: two thirds of a percent at forty four sixty one.

34
00:01:52,040 --> 00:01:55,680
Speaker 1: Spout gold is of eighteen dollars announced at twelve thirty ten.

35
00:01:55,760 --> 00:01:57,960
Speaker 1: Year Treasury down nine thirty seconds with the yield of

36
00:01:58,120 --> 00:02:02,040
Speaker 1: one point seven seven percent. Among today's stop business stories,

37
00:02:02,080 --> 00:02:04,920
Speaker 1: Amazon dot Com plans to eliminate gaps in its free

38
00:02:04,960 --> 00:02:08,120
Speaker 1: same day delivery service in all twenty seven cities where

39
00:02:08,120 --> 00:02:11,720
Speaker 1: it's offered, responding to complaints at some minority neighborhoods were

40
00:02:11,760 --> 00:02:14,680
Speaker 1: not included. Amazon made the pledge at a statement obtained

41
00:02:14,680 --> 00:02:18,119
Speaker 1: by the Congressional Black Caucus. In a statement, Amazon said

42
00:02:18,120 --> 00:02:20,720
Speaker 1: it will be expanding its Prime same Day service to

43
00:02:20,880 --> 00:02:23,359
Speaker 1: every zip code of the twenty seven cities where the

44
00:02:23,440 --> 00:02:26,840
Speaker 1: service is currently offered. The University of Texas is the

45
00:02:26,919 --> 00:02:30,600
Speaker 1: latest investor to reveal that it was burned by Valiant Pharmaceuticals.

46
00:02:30,800 --> 00:02:34,040
Speaker 1: The once high flying pharmaceutical company is under scrutiny for

47
00:02:34,200 --> 00:02:38,799
Speaker 1: its billing practices. It's two thirty two on Wall Street,

48
00:02:38,880 --> 00:02:40,600
Speaker 1: and that means it's time to get enough data. Some

49
00:02:40,639 --> 00:02:44,000
Speaker 1: of the other stories were following right here on Bloomberg Radio.

50
00:02:45,000 --> 00:02:47,960
Speaker 1: Thank you Catherine from the Bloomberg Newsroom. I'm a Lisa Parenti.

51
00:02:48,200 --> 00:02:51,160
Speaker 1: This news update is brought to you by T two Computing,

52
00:02:51,480 --> 00:02:54,520
Speaker 1: a new kind of I T solutions company for workflow, mobility,

53
00:02:54,560 --> 00:02:58,119
Speaker 1: and infrastructure. Let them explain how their expertise can help

54
00:02:58,120 --> 00:03:01,320
Speaker 1: you gain greater business value. Visit T two computing dot

55
00:03:01,400 --> 00:03:04,840
Speaker 1: com for more information. President Obama says voters need to

56
00:03:04,840 --> 00:03:08,040
Speaker 1: remember that the presidency is quote a serious job and

57
00:03:08,120 --> 00:03:11,360
Speaker 1: not a reality show. Answering questions at the White House today,

58
00:03:11,440 --> 00:03:14,440
Speaker 1: Mr Obama said Americans need to ask themselves whether the

59
00:03:14,480 --> 00:03:19,000
Speaker 1: presumptive Republican nominee really represents their views. There is no

60
00:03:19,120 --> 00:03:24,640
Speaker 1: doubt that there is a debate that's taken place inside

61
00:03:24,680 --> 00:03:27,080
Speaker 1: the Republican Party about who they are and what they represent.

62
00:03:28,400 --> 00:03:31,959
Speaker 1: Um their standard bearer at the moment is Donald Trump.

63
00:03:32,680 --> 00:03:35,600
Speaker 1: Donald Trump is promising to unite a fractured party, but

64
00:03:35,640 --> 00:03:38,560
Speaker 1: he'll have to win over some top Republicans, including how

65
00:03:38,640 --> 00:03:42,320
Speaker 1: speaker Paul Ryan. Former GOP presidential candidate Bobby jin Dall

66
00:03:42,400 --> 00:03:45,280
Speaker 1: says he will support the party's candidate. For me, as

67
00:03:45,320 --> 00:03:47,880
Speaker 1: a conservative, it really is a binary choice. It really

68
00:03:47,920 --> 00:03:50,520
Speaker 1: is what is the conservative thing to do. I'm voting

69
00:03:50,520 --> 00:03:52,720
Speaker 1: for Donald Trump because I don't think we can afford

70
00:03:52,840 --> 00:03:57,400
Speaker 1: four more years of liberal incompetence. Republican National Committee Chairman

71
00:03:57,480 --> 00:04:00,640
Speaker 1: Ryan's previous said today he supports Trump even if he

72
00:04:00,680 --> 00:04:03,720
Speaker 1: disagrees with his tone and some of his ideas. Police

73
00:04:03,760 --> 00:04:06,040
Speaker 1: are asking for the public's health and identifying the people

74
00:04:06,040 --> 00:04:09,240
Speaker 1: who stole a statue from a Roman Catholic church in Brooklyn.

75
00:04:09,560 --> 00:04:12,440
Speaker 1: The sacred heart statue of Jesus swiped from St. Peter

76
00:04:12,600 --> 00:04:15,440
Speaker 1: and Paul Roman Catholic Church on seventy one South third

77
00:04:15,480 --> 00:04:19,600
Speaker 1: Street last weekend. Police have released surveillance video of three suspects.

78
00:04:19,839 --> 00:04:22,200
Speaker 1: Global News twenty four hours a day, powered by our

79
00:04:22,200 --> 00:04:25,320
Speaker 1: twenty four hundred journalists in more than one hundred fifty

80
00:04:25,320 --> 00:04:28,360
Speaker 1: news bureaus around the world. From the Bloomberg Newsroom, I'm

81
00:04:28,360 --> 00:04:32,719
Speaker 1: Alisa Parenti, Catherine, thank you, and now let's get a

82
00:04:32,760 --> 00:04:35,880
Speaker 1: quick update of those equity bandmarks down. Industrial leverages up

83
00:04:35,880 --> 00:04:38,839
Speaker 1: sixty nine points at seventeen thousand, seven hundred twenty nine.

84
00:04:39,080 --> 00:04:41,600
Speaker 1: SMP five, founded he raced earlier, loss is currently up

85
00:04:41,640 --> 00:04:44,400
Speaker 1: five points at two thousand fifty five. The NAZZAC is

86
00:04:44,440 --> 00:04:47,560
Speaker 1: up nearly ten points at six. And that's a Bloomberg

87
00:04:47,560 --> 00:04:52,480
Speaker 1: business flash. He's taking stock with Kathleen Hayes and Grim

88
00:04:52,560 --> 00:04:57,160
Speaker 1: Box on Bloomberg Radio. Employers in the United States scaling

89
00:04:57,279 --> 00:05:01,760
Speaker 1: back there April, hiring amid some eaker economic growth, but

90
00:05:01,880 --> 00:05:05,440
Speaker 1: the wages increased the last month and the work we

91
00:05:05,640 --> 00:05:08,279
Speaker 1: grew longer. Let's find out what's going on with the

92
00:05:08,360 --> 00:05:12,000
Speaker 1: U S economy. We have Heidi Shecherholtz, the chief economist

93
00:05:12,080 --> 00:05:16,320
Speaker 1: for Labor Secretary Tom Perez. Heidi, thanks very much for

94
00:05:16,440 --> 00:05:21,760
Speaker 1: being here, very much for having me. All right, So, Heidi,

95
00:05:21,839 --> 00:05:24,640
Speaker 1: it can you as step back as an economist. You're

96
00:05:24,640 --> 00:05:28,000
Speaker 1: not responsible for the data. You just interpreted looking at

97
00:05:28,000 --> 00:05:31,200
Speaker 1: the details. What does it tell you? So we are

98
00:05:31,320 --> 00:05:34,240
Speaker 1: jobs streak continued in April. We added a hundred and

99
00:05:34,240 --> 00:05:38,680
Speaker 1: sixty thousand jobs, potentually lower than the pace of growth

100
00:05:38,760 --> 00:05:42,600
Speaker 1: that we had been seeing, but it's well above the

101
00:05:42,640 --> 00:05:45,240
Speaker 1: pace that we need to keep the unemployment rate low

102
00:05:45,320 --> 00:05:47,799
Speaker 1: and stable. So just to sort of put a number

103
00:05:47,839 --> 00:05:51,320
Speaker 1: on that, estimates from a wide variety of sources are

104
00:05:51,400 --> 00:05:55,280
Speaker 1: that right now we need around eighty thousand jobs just

105
00:05:55,320 --> 00:05:58,200
Speaker 1: to sort of hold steady. So we got double that.

106
00:05:58,680 --> 00:06:01,760
Speaker 1: So it's not the two hundred thousand plus that we

107
00:06:01,839 --> 00:06:04,600
Speaker 1: have been seeing, but it's a very solid number. The

108
00:06:05,080 --> 00:06:09,040
Speaker 1: other thing that I think is um useful to just

109
00:06:09,160 --> 00:06:11,880
Speaker 1: keep in mind is that there's always a lot of

110
00:06:12,360 --> 00:06:16,400
Speaker 1: two months to month variability in these numbers. Last year,

111
00:06:16,680 --> 00:06:20,400
Speaker 1: we average two hundred twenty nine thousand jobs on average

112
00:06:20,440 --> 00:06:24,080
Speaker 1: per month, and we had three months in the year

113
00:06:24,240 --> 00:06:27,320
Speaker 1: where we got job growth of a hundred and fifty

114
00:06:27,360 --> 00:06:29,960
Speaker 1: thousand or less and so it's just this sort of

115
00:06:30,120 --> 00:06:32,719
Speaker 1: common thing where you see this bouncing around. So we

116
00:06:32,760 --> 00:06:35,039
Speaker 1: don't get too freaked out if it's a lower number,

117
00:06:35,080 --> 00:06:38,160
Speaker 1: we don't get too giddy if it's a really high number. Um,

118
00:06:38,240 --> 00:06:43,599
Speaker 1: this represents pretty solid job growth, alright. If it represents

119
00:06:43,640 --> 00:06:46,919
Speaker 1: a solid job growth, where is the weakness in the

120
00:06:47,080 --> 00:06:51,680
Speaker 1: job in the job sector. Yeah, you know. The thing

121
00:06:51,720 --> 00:06:56,560
Speaker 1: that I think is just the ty ongoing saying that

122
00:06:56,640 --> 00:07:00,560
Speaker 1: I'm got my eyes on with these numbers is age growth.

123
00:07:00,640 --> 00:07:04,400
Speaker 1: And we are seeing some acceleration of wage growth over

124
00:07:04,440 --> 00:07:08,039
Speaker 1: the last year. Wages grew two point five percent with

125
00:07:08,240 --> 00:07:12,600
Speaker 1: low inflation. That means workers are seeing some real gains.

126
00:07:12,640 --> 00:07:14,960
Speaker 1: But we just have a lot of ground make up.

127
00:07:15,400 --> 00:07:18,000
Speaker 1: But the question, but hang on, the question was where

128
00:07:18,040 --> 00:07:20,120
Speaker 1: was the weakness in the actual jobs report. I was

129
00:07:20,160 --> 00:07:24,040
Speaker 1: on the impression that retailers cutting payrolls, and that also

130
00:07:24,120 --> 00:07:28,760
Speaker 1: construction companies had been adding the fewest positions since the

131
00:07:28,880 --> 00:07:32,320
Speaker 1: last June. Yes, you're totally right. I was interpreting jobs

132
00:07:32,320 --> 00:07:35,480
Speaker 1: report broadly. I appreciate it. Go ahead, you are, You're

133
00:07:35,520 --> 00:07:39,760
Speaker 1: absolutely right. So, yes, the retail numbers were low. Um,

134
00:07:39,840 --> 00:07:44,320
Speaker 1: the construction numbers were low. Both of those things, particularly construction,

135
00:07:45,040 --> 00:07:48,600
Speaker 1: UM could be have a big weather component, and it's

136
00:07:48,640 --> 00:07:51,360
Speaker 1: not the weather component that we typically think of, where

137
00:07:51,800 --> 00:07:54,600
Speaker 1: we got a huge snowstorm and that's why the numbers

138
00:07:54,640 --> 00:07:58,400
Speaker 1: were low, which happens on occasion in winter months. This

139
00:07:58,480 --> 00:08:01,040
Speaker 1: is a different story here. Or what we saw is

140
00:08:01,240 --> 00:08:06,880
Speaker 1: extremely mild weather in the in February and March, and

141
00:08:06,920 --> 00:08:10,360
Speaker 1: so some of the hiring that would have otherwise happened

142
00:08:10,400 --> 00:08:14,520
Speaker 1: in April in for example, construction instead got pulled forward

143
00:08:14,840 --> 00:08:17,840
Speaker 1: and so employers hired those people early. So we saw

144
00:08:18,000 --> 00:08:21,240
Speaker 1: big gains in construction in February and March, and this

145
00:08:21,520 --> 00:08:25,720
Speaker 1: and the April numbers and construction looked quite weak by comparison.

146
00:08:26,040 --> 00:08:30,560
Speaker 1: But I think that, UM, I believe due to the

147
00:08:30,640 --> 00:08:34,360
Speaker 1: weather effects of very mild February March that we had.

148
00:08:34,360 --> 00:08:38,000
Speaker 1: I'm not too concerned that we're seeing a an ongoing

149
00:08:38,040 --> 00:08:41,439
Speaker 1: slowdown in construction, but that's definitely something I'll be keeping

150
00:08:41,440 --> 00:08:44,360
Speaker 1: my eyes on. Okay, So now move on to the

151
00:08:44,400 --> 00:08:49,520
Speaker 1: wage growth, but also the workweek. It grew longer for workers. Yeah,

152
00:08:49,600 --> 00:08:53,960
Speaker 1: it increased, that's very good news. I um it had

153
00:08:54,040 --> 00:08:57,679
Speaker 1: picked down earlier, so it's not it's it's still within

154
00:08:58,559 --> 00:09:01,440
Speaker 1: a band that we've been being for quite some time now.

155
00:09:01,840 --> 00:09:05,360
Speaker 1: The work week basically it's kind of moving sideways at

156
00:09:05,360 --> 00:09:07,719
Speaker 1: this point, fluctuating up and down a little bit. But

157
00:09:07,880 --> 00:09:12,600
Speaker 1: one of the things that the increasing workweek just is

158
00:09:12,920 --> 00:09:16,439
Speaker 1: um sort of provide some comfort. When when you get

159
00:09:16,440 --> 00:09:20,920
Speaker 1: a jobs number that's one sixty when everyone expected two hundred,

160
00:09:21,000 --> 00:09:23,440
Speaker 1: one of the things you do is look for signs

161
00:09:23,480 --> 00:09:26,200
Speaker 1: of do I think this is a one off, or

162
00:09:26,240 --> 00:09:29,400
Speaker 1: do I think there's signs that this may be signaling

163
00:09:29,640 --> 00:09:33,720
Speaker 1: some sort of like ongoing softening. And the fact that

164
00:09:33,800 --> 00:09:37,760
Speaker 1: the work week increased is a very good sign that

165
00:09:37,760 --> 00:09:42,040
Speaker 1: that that we didn't see the strong the two plus

166
00:09:42,120 --> 00:09:46,120
Speaker 1: job grows, but the increase in hours means that we're

167
00:09:46,240 --> 00:09:51,600
Speaker 1: um sort of offset some of the the decline and

168
00:09:51,720 --> 00:09:54,080
Speaker 1: job job grows in a way that make it that

169
00:09:54,200 --> 00:09:57,280
Speaker 1: comforts economists, which is that can be a leading indicator

170
00:09:57,360 --> 00:10:02,640
Speaker 1: if we are going to be seeing ongoing dramatic, we

171
00:10:02,760 --> 00:10:06,280
Speaker 1: reduced job growth, I would expect to see ours drop

172
00:10:06,640 --> 00:10:10,280
Speaker 1: rather than increase. And the jobless rate remaining at five

173
00:10:10,400 --> 00:10:13,120
Speaker 1: per cent is that likely to indicate full employment or

174
00:10:13,200 --> 00:10:17,840
Speaker 1: near full employment. So I think that the other signs

175
00:10:17,880 --> 00:10:21,800
Speaker 1: in the labor markets suggest that we aren't there yet,

176
00:10:22,080 --> 00:10:24,160
Speaker 1: that there's still a ways to go. We have made

177
00:10:24,520 --> 00:10:27,559
Speaker 1: enormous progress. The worst of it, the unemployment was ten

178
00:10:28,120 --> 00:10:30,640
Speaker 1: we're now we've now cut that in half, so that

179
00:10:30,800 --> 00:10:34,080
Speaker 1: we've we've made tremendous progress. But I don't think we're

180
00:10:34,160 --> 00:10:37,040
Speaker 1: done yet. And so just to put it in context,

181
00:10:37,840 --> 00:10:40,160
Speaker 1: before the recession, for the two years before the Great

182
00:10:40,160 --> 00:10:43,679
Speaker 1: Recession hit, the unemployment rate average four point six percent

183
00:10:44,080 --> 00:10:47,800
Speaker 1: and today at five. Thank you very much, Heidi Shareholds,

184
00:10:47,960 --> 00:10:52,080
Speaker 1: the economist, Chief economist for the Department of Labor Secretary

185
00:10:52,200 --> 00:10:56,640
Speaker 1: Tom Perez. You're listening to taking Stock on Boomberg Radio.

186
00:11:00,480 --> 00:11:04,920
Speaker 1: Bloombertaking Stock is brought by Jaguar Manhattan. Visit Jaguar Manhattan today,

187
00:11:04,920 --> 00:11:07,800
Speaker 1: where New York goes for luxury, Conveniently located at fifty

188
00:11:07,800 --> 00:11:10,720
Speaker 1: fourth and eleventh AVENU went online at Jaguar Manhattan dot com.

189
00:11:11,120 --> 00:11:13,600
Speaker 1: Jaguar Manhattan is at your service,