Latest / Bloomberg Intelligence / Bloomberg's Torres on Brutal Journey Back to Work (Audio)

Transcript

Bloomberg's Torres on Brutal Journey Back to Work (Audio) · Bloomberg Intelligence

• 0:04
  Speaker 1: Broadcasting live to New York, Bloomberg eleventh, wo to Washington,
• 0:08
  Speaker 1: d C, Bloomberg to Boston, Bloomberg Well, undreg to San Francisco,
• 0:13
  Speaker 1: Bloomberg nine to the Country, Joe's Exam General one nineteen
• 0:17
  Speaker 1: and around the globe the Bloomberg Radio plus Apen, Bloomberg
• 0:21
  Speaker 1: dot Com. This is taking Stock. I'm Kathleen Hayes Long
• 0:25
  Speaker 1: with PIM Fox. We're live at Pershing's Inside sixteen conference
• 0:28
  Speaker 1: at the Highett Regency in Orlando. As we keep the
• 0:31
  Speaker 1: Federal Reserve in focus, We're going to ask why is it,
• 0:34
  Speaker 1: with unemployment at four point seven percent, that the Chairman
• 0:37
  Speaker 1: of the Federal Reserve, for the chairwoman, I should say,
• 0:39
  Speaker 1: Janet Yellen, is not in a bigger hurry to raise
• 0:41
  Speaker 1: the key rate PIM. It might have something to do
• 0:43
  Speaker 1: with the fact that the underemployment rate is nearly ten
• 0:46
  Speaker 1: percent in this country. We're going to hear about the
• 0:49
  Speaker 1: brutal journey back to work for millions of Americans. Yes,
• 0:52
  Speaker 1: we'll be joined by our Federal Reserve reporter Craig Torres
• 0:55
  Speaker 1: will be joining us from Washington. Right now, Let's go
• 0:57
  Speaker 1: to the newsroom and Charlie Pellett with the Bloomberg Business
• 0:59
  Speaker 1: flat man, and we've got the bulls back of work him.
• 1:01
  Speaker 1: The Dow, the SMP, Nestank, they are all advancing. SMP
• 1:05
  Speaker 1: five hundred index up seven points now a gain of
• 1:08
  Speaker 1: three tents of one percent at twenty one nine down
• 1:12
  Speaker 1: Industrials up fifty nine to seventeen thousand, nine ninety seven.
• 1:16
  Speaker 1: Again there are three tenths of one percent. Nastank also
• 1:19
  Speaker 1: advancing by three tenths of one percent. SMP five hundred
• 1:23
  Speaker 1: index holding at the highest since July, bolstered by speculation
• 1:27
  Speaker 1: borrowing costs will remain lower for longer amid moderate growth.
• 1:31
  Speaker 1: Hewlett Packard Enterprise CEO Meg Whiffan just wrapping up an
• 1:35
  Speaker 1: interview on Bloomberg Television. She talked about the outlook for acquisitions,
• 1:39
  Speaker 1: among other topics. We are interested in M and A,
• 1:42
  Speaker 1: but at the right price in complementary areas. So, for example,
• 1:46
  Speaker 1: what has worked well for us is the opposition of
• 1:48
  Speaker 1: three par three Calm and Aruba, great complementary technologies that
• 1:53
  Speaker 1: we can put through our distribution system. And by the way,
• 1:55
  Speaker 1: they weren't overly expensive. We fad We paid a very
• 1:58
  Speaker 1: fair price for those companies but it wasn't at sixty
• 2:01
  Speaker 1: seventy eight times multiple. She spoke to us from HPEES
• 2:04
  Speaker 1: Annual Discover Conference in Las Vegas. Hewlett Packard Enterprise shares
• 2:09
  Speaker 1: up now by one point six percent. Crude oil holding
• 2:13
  Speaker 1: above fifty one dollars a barrel of eighty one cents
• 2:16
  Speaker 1: now advancing one point six percent to fifty one eighteen
• 2:20
  Speaker 1: Gold up sixteen forty v ounce of one point three
• 2:23
  Speaker 1: percent now to twelve sixty three. Lulu Lemon out with
• 2:26
  Speaker 1: earnings this morning's uh this morning of shares advancing now
• 2:30
  Speaker 1: by four point nine percent. Lulu Lemon at seventy six
• 2:34
  Speaker 1: It is up by three dollars thirty one cents to
• 2:38
  Speaker 1: thirty two on Wall Street. Now, let's take a look
• 2:40
  Speaker 1: at other news from around the world. On Bloomberg Radio.
• 2:45
  Speaker 1: Thank you, Charlie from the Bloomberg News Room. I'm Sherry On.
• 2:48
  Speaker 1: Hillary Clinton has claimed victory in the race for the
• 2:50
  Speaker 1: Democratic presidential nomination, becoming the first woman to run as
• 2:54
  Speaker 1: a candidate of a major US party. She won four
• 2:58
  Speaker 1: of the sixt eights holding primary door concusses yesterday, including California.
• 3:03
  Speaker 1: Bernie Sanders says he won't give up, although the Associated
• 3:06
  Speaker 1: Press reports is laying off about half of his staff today.
• 3:10
  Speaker 1: Donald Trump won the Republican presidential primary in California, but
• 3:14
  Speaker 1: many GEOP leaders are struggling to rally behind him. Main
• 3:17
  Speaker 1: Republican Senator Susan Collins says she would like to endorse Trump,
• 3:22
  Speaker 1: but he needs to stop insulting people. He is the
• 3:25
  Speaker 1: one who needs to start acting more presidential and articulate
• 3:30
  Speaker 1: clearly what a Trump presidency would look like. In a
• 3:34
  Speaker 1: speech yesterday, Trump took a more unifying path, vowing never
• 3:38
  Speaker 1: to let GOP voters down authorities, saying at least five
• 3:42
  Speaker 1: people are dead following I hit a run involving cyclists
• 3:45
  Speaker 1: in Michigan. Kalamazoo County of Prosecuting Attorney Jeffrey Getting says
• 3:49
  Speaker 1: the bike riders probably didn't know what happened. They were
• 3:52
  Speaker 1: all north found, they were all on the right shoulder
• 3:55
  Speaker 1: of the road. Who pick up. Trump was also morth
• 3:57
  Speaker 1: found struck them from behind the head of the and
• 4:00
  Speaker 1: its correction officers union is facing federal corruption charges along
• 4:04
  Speaker 1: with a hedge fund founder. The FBI says Norman C.
• 4:07
  Speaker 1: Brook and Murray Hoberfeld, the hedge fund founder, have been arrested.
• 4:11
  Speaker 1: Haberfeld is accused of paying kickbacks to Seabrook. In return,
• 4:15
  Speaker 1: Seabrook agreed to transfer millions to a hedge fund operated
• 4:18
  Speaker 1: by Hoberfeld and others. Global News twenty four hours a
• 4:21
  Speaker 1: D eight powered by our hundred journalists in more than
• 4:24
  Speaker 1: a hundred and fifty news bureaus around the world from
• 4:27
  Speaker 1: the Bloomberg News Room. I'm Sherry, Anne, Charlie, and we
• 4:31
  Speaker 1: thank you, and we are brought to you by Sector
• 4:33
  Speaker 1: spider E t FS. Why by a single stock when
• 4:36
  Speaker 1: you can invest in the entire sector of visits, Sector
• 4:39
  Speaker 1: sp d r S dot com recall Sector et F
• 4:45
  Speaker 1: stocks are advancing SMP up seven now a gain of
• 4:48
  Speaker 1: three tenths of one percent. I'm Charlie Pellatin. That's a
• 4:51
  Speaker 1: Bloomberg business flash is taking stock. The FED in Focus
• 4:57
  Speaker 1: on Bloomberg Radio were brought casting live from Persians inside
• 5:02
  Speaker 1: six conference at the Highatt Regency in Orlando, Florida. The
• 5:06
  Speaker 1: topic is the labor market. Unemployment four point seven percent.
• 5:11
  Speaker 1: That is down from the nine and a half percent
• 5:13
  Speaker 1: level when the economy started expanding in June of two
• 5:16
  Speaker 1: thousand and nine. Indeed, employers have been adding an average
• 5:20
  Speaker 1: of about a hundred and fifty thousand jobs a month
• 5:23
  Speaker 1: so far this year, but there are still troubling issues
• 5:26
  Speaker 1: in the job marketing. Here to tell us more. As
• 5:28
  Speaker 1: Craig Torres, Federal Reserve reporter for Bloomberg News, joining us
• 5:32
  Speaker 1: from Washington. Craig, thanks for being with us the good news. Yes,
• 5:36
  Speaker 1: unemployment four point seven percent and as I noted, hundred
• 5:40
  Speaker 1: and fifty thousand jobs on average being created each month.
• 5:43
  Speaker 1: But in your most recent article you write that it
• 5:47
  Speaker 1: has been a brutal journey back to work for millions
• 5:50
  Speaker 1: of Americans. Tell us more. I think that is driving
• 5:54
  Speaker 1: the sentiment we're seeing play out in the election, which
• 5:57
  Speaker 1: you could use any number of words from anger, bitterness, uh,
• 6:02
  Speaker 1: kind of a shattered American dream, kind of feeling. Um.
• 6:07
  Speaker 1: It did take people who lost their jobs a long
• 6:11
  Speaker 1: time to get back to work, and often they ended
• 6:13
  Speaker 1: up in jobs that were lower paying, less benefits, and
• 6:18
  Speaker 1: less security. So we went back and talked to some
• 6:22
  Speaker 1: of the people we interviewed when they were unemployed and
• 6:25
  Speaker 1: asked them what was it like back to employment? And
• 6:29
  Speaker 1: the stories weren't pretty. So Craig, uh, tell us some
• 6:34
  Speaker 1: of the stories. Uh, And it seems a lot of
• 6:37
  Speaker 1: us know unfortunately, Um, friends of friends, even you know,
• 6:42
  Speaker 1: some family members that are really on tough times, really
• 6:44
  Speaker 1: having a hard time finding a job. Give us an
• 6:46
  Speaker 1: example and tell us is it is it really different
• 6:50
  Speaker 1: from other times coming out of business cycles. Um. So,
• 6:55
  Speaker 1: one person we interviewed in our story today was Sally Richards.
• 6:58
  Speaker 1: She I think she's a great example. So she's a lawyer,
• 7:04
  Speaker 1: ran her own practice in Ohio, had more than a
• 7:07
  Speaker 1: hundred clients, and so she moves to d C kind of,
• 7:11
  Speaker 1: you know, for family reasons, personal reasons, figuring she would
• 7:16
  Speaker 1: land a job pretty quickly. Um, ended up looking for
• 7:20
  Speaker 1: two years. Um, you know, just hearing nothing back from employers. Um,
• 7:26
  Speaker 1: building up a debt pile. And I'll tell you, Kathleen,
• 7:29
  Speaker 1: when you talk to these people, what's hard to reflect
• 7:31
  Speaker 1: in print, It is when you're sitting in front of
• 7:35
  Speaker 1: them as a reporter. Um, what's hard to reflect in
• 7:38
  Speaker 1: print is this sort of anguish you see like someone
• 7:43
  Speaker 1: it's like someone who just went to a fight or
• 7:46
  Speaker 1: a cancer battle or something like that. It costs these
• 7:49
  Speaker 1: people a lot personally, not only financially, but as I
• 7:54
  Speaker 1: say in the story, like from a self esteem standpoint,
• 7:57
  Speaker 1: it was very expensive. Craig, if you can describe what
• 8:03
  Speaker 1: is the thread that runs through all of these stories
• 8:06
  Speaker 1: for you? I think Tim, the threat is, this isn't
• 8:12
  Speaker 1: the America that I grew up in. Um, This isn't
• 8:16
  Speaker 1: the America that I'm used to. This isn't the America
• 8:20
  Speaker 1: that UM is, you know, that had the promises that
• 8:25
  Speaker 1: if you work hard, that you would get ahead. It's
• 8:28
  Speaker 1: it's defeating, and it's it's confusing, and and there often
• 8:34
  Speaker 1: aren't answers why nobody's gonna is calling you back, for example,
• 8:40
  Speaker 1: And so I find I find that very troubling as
• 8:44
  Speaker 1: many people in the electorate obviously, and obviously if the
• 8:47
  Speaker 1: people like this easily can slip into losing their homes
• 8:50
  Speaker 1: and their apartments, and the homelessness is a growing problem
• 8:54
  Speaker 1: even for people like this, so kind of fall through
• 8:56
  Speaker 1: the cracks. Um in some sense, then is Janet on
• 9:00
  Speaker 1: what we would call debbishness. She's a labor market economists.
• 9:03
  Speaker 1: Her her sense of, oh, yes, the economy is doing better.
• 9:05
  Speaker 1: But then she says right after that, of course there's
• 9:08
  Speaker 1: still a lot of slack. Is that is she's you know,
• 9:13
  Speaker 1: really in connecting into this ethos as well, do you think, Craig,
• 9:18
  Speaker 1: I think one of the odd things, a little bit odd,
• 9:21
  Speaker 1: is this gamble she's making um that if she just
• 9:26
  Speaker 1: runs the economy hot enough, good things will happen. It's
• 9:31
  Speaker 1: a it's a it's hard to appreciate what a big
• 9:34
  Speaker 1: gamble that is because the reason people apply for jobs
• 9:40
  Speaker 1: and don't hear back or kind of structural. Give you
• 9:43
  Speaker 1: an example, there's this software that almost every employer uses
• 9:47
  Speaker 1: called to Leo. So if you apply for a job today,
• 9:51
  Speaker 1: chances are probably eight out of ten that you're going
• 9:55
  Speaker 1: to be on some to LEO interface. To Leo is
• 9:58
  Speaker 1: this impersonal scoring of your resume, of your personal data.
• 10:04
  Speaker 1: Even though it doesn't ask your age, it figures out
• 10:07
  Speaker 1: your age, and the hiring manager just sees basically a
• 10:13
  Speaker 1: bunch of statistics, never sees the person, and this allows
• 10:17
  Speaker 1: them to flip through dozens and hundreds of applicants in
• 10:21
  Speaker 1: a highly in personal way. Can the said really change
• 10:24
  Speaker 1: something like that? Maybe? Maybe maybe if you push the
• 10:28
  Speaker 1: economy down to like two unemployment, people will be scrambling
• 10:32
  Speaker 1: to have, you know, for talent. But I don't think so.
• 10:36
  Speaker 1: I mean, Craig Tores, thank you so very much an
• 10:39
  Speaker 1: eye opening story. I highly recommend that everybody take a
• 10:43
  Speaker 1: look at it. I'll tweet it out Pim and I'll
• 10:45
  Speaker 1: teat out at Craig Torres and everybody can read it.
• 10:48
  Speaker 1: This afternoon, Well, I'm Kathleen Hays along with Pim Fox,
• 10:52
  Speaker 1: and we are broadcasting live at Person's Insight Conference in Orlando.
• 11:01
  Speaker 1: The fed in Focus is brought to by Willoughby since
• 11:03
  Speaker 1: eighteen ninety eight, New York City's boutique camera store for
• 11:06
  Speaker 1: precision craft at Hazelblot and Like A Cameras, plus a
• 11:08
  Speaker 1: full selection of GoPro action adventure cameras. Willoughby's corner Fifth
• 11:12
  Speaker 1: Avenue and thirty first Street,