Wages were stagnant while the unemployme rate fell to 5. 3 and therein lies the problem. The Unemployment Rate did not drop because workers found more jobs but because people stopped looking. Hampton pearson has more. Rep whi june headline unemployme is the lowest since the 2008 recession, the jobs report was weaker than expect. Hiring came in below the 233,000 consensus forecasts, wages were flat and job growth for april and may was revised downward by 60,000. Not the kind of jobs report leading economists and fed watchers say is likely to move Monetary Policy makers anytime soon. Te not yet sufficiently convinced that the two tests for rate hikes have been met, which is further movement in the labor market and reasonable confidence that it will move back to 2 . The overall labor force part tags rate dropped to 66. 2 , the lowest since 1977. The primary reason fewer teens and recent College Graduates than usual enderte the labor forecast. June is a function of fact that people like my 19yearold daughter the get a summer job. Rep the labor secretary has been involved in efforts to increase the hiring in baltimore where theres an added sense of urgency after the riots this spring. This week we went to baltimore where don fry is coordinated efforts by City Government to create 8,000 summer jobs for baltimore youth through public pri partnerships what we saw from the unrest that occurred a couple of months ago, i think this report indicates the an enhanced focus on young people when opportunities can be presented to young people. R for many of the youths theres a lot more at stake than just a summer job for a few weeks. Its a potential game changer for 18yearold single parent headed to col this fall whos getting an opportunity to learn busines skills. If i make it through this and really make something out of it i will really pat myself on the back for this and ill be so grateful to be able to help support my friends. The challenges of a changing workforce in a slow growth econo are also on the feds radar screen and it ponders raising intert rates from historic lows. For nightly busine im Hampton Pearson in washington our guest tonight says todays jobs report will not change the timing or pay of the rate hike. Bill welcome and good to have you with us. You say this is basically what the fed needs to do what it wants when it wants. What will it do and when . We think the fed can move in september and we think things are right on schedule. My reaction to your notion of job growth is we have an economy that is growing at a 2 1 2 to 3 pace. This is what the fed is looking for. Bill just to push back on that a little bit, if you look at the fed funds futures, they are not signaling ae big firms on the street are on the opposite side of where you guys are. They say that given greece the fed wont move. The impact of greece is going to be insofar as the u. S. Financial markets and internatl markets generally. So far theres been no sign that that has happened. Greece is off the table as far as the fed increase is earn canned. Has no effect what solve. What is more important is what is going on domestally. Youre right, the fed fund future are pricing in a lot of Downside Risks and thats where we stand. The best case is that the septembe increase is in line and were waiting to see if in fact the data coming in is going to ratify that or not. I think the bulk is surely to the downside and thats why we have pricing the way it is. What about inflation, bill . Where do you see that . Its really been quiet below what the fed would like. What inflation . Thats exactly the issue. There is no its not sufficient stren in the economy to generate any kind of impetus towards revising prices. We dont see inflation hitting the 2 targets that the fed has in mind until easily 2017. As far as the fed is earn canned its not inflation now that is the issue. Are you worried at all about the Participation Rate . Yes, i am. Yes, i am. Thats a real issue because we dont have enough people coming into the labor force because people are discouraged. Their view of the economy is one where, you know were not possibly going to maintain the 2 1 2 or 3 because, after all, potential growth right now is only at 1 1 2 to 2 much lower than what most would have thought. An thats the consequence of severe shock that weve had and the slow growth that weve had post crisis in 2008. Bill lee with citi you can probably see that hes with citi bill thank you very much. Tlot. Stocks stalled after that soso jobs report. The major averages closed out the week with losses. Uncertaint with greeces referend pressured the markets and well have more on that in a few moments. At t dow was at 17,030 s p was down a fraction. Bp enters into an historic settlement e compa agreed to pay a record fine related to damages caused by the oil spill in the gulf of mexico five years ago. As a ult are result bp shares jumped today. Eamon javers has more. R officials announced the news on thursday a recordbreg settlement with bp that would end years of litigati in the wake of the 2010 deepwater horiz oil spill. It will be split among the gulf coast states with louisiana getting the largest share at 6. 8 billion. All of that money will go to environml restoration and economic recovery. The settlement clears out the majority of pending lawsuits at the state and local level. And much of it will be tax de de for bp. We think this is going to help our state recover and move on. The last thing that we wanted was to be tied up again in a black hole of litigation that could have gone 15 20 30 years that perhaps our grandchildren wo seen the results of. For its pa bp says the company is happy to put the mess in the past. The settlement resolves the companys largest remaining legal exposures, provides clarity on costs and creates certainty of payment for all parties involved. This deal will still have to go through a public process and ultimate be approved by a federal judge. But if it does go through, it will be the biggest environml settlement in the history of the united states. For nightly businen 1 2javewashingt regulators are accusing fiat of not moving fast enough on recalls. Failed to provide timely informn to agency which is looking into chryslers handling of 23 recalls involving 11 million vehicles. More now on greece that could decide whether the country will use the euro as its currency. E heads to the polls, the question on the ballot i but clear. Michelle carusocabrera has the details from athens. The ballots are printed and polling stations are being moved into place as greece goes into full campaign mode. A vote to decide whether or not to accept unpopular Economic Reforms in exchange for billions more in bailout money. The street with posters urging greeks to vote yes or no. Xoi means no. Nai is pronounced nay and means yes. As for both sides, still the airwaves. Social media sites like facebook and twitter are als campaign platforms. While the choice in answers is clear, the actual question on the ballot is complicated. It reads, should the plan of agreement be accepted which was submitte by the European Commission t European Central bank and the International Monetary fund in the euro group of june 2015 and comprise of two parts which constitute their unified proposal . Regardless of what the ballot says other european leaders have told the greek people very clearly, they should see this vote as a decision on whether or they want to stay in the euro. Dutch finance minister said no place in the eurozone if its not willing to reform. The prime of the country, alexis tsipras, went on television tonig and said thats not true. Hes tel greece to vote against e agreement saying a strong no vote will give them a et abouter negotiating position. In the meantime the banks are still closed except t pensione who come day by day and collect 120 euros of their monthly stipend. They wont decide until at least monday after the results of the referendum are known. Because greece is so reliant on imports, Business Leaders say its onl a matter of time before there are shortages. If you look at it at the end of the day, youre looking at machinery and pharmaceuticals. Customers are already shifting their buying habits for fear of empty shelves. They are buying less cosmetics and more needed products like milk diabetes supplies like testing strips and insulin. Reporte regardless of what happens on sunday the Greek Economy is already sufferi dramatical. R nightly busine michelle carusocabrera, athens. Still ahead, as the health ca industry undergoes tremendous change there are some stocks that could see some big gains. Our market monitor i whole foods top executives apologizg for overcharging in new yorky stores. The group was under investign for allegedly mislabeling packages with the wrong weight. The company coc oechlt os will explain how this will not happen again. They are inadvertent because its a handson approach to bringing you fresh food. Whats important is what were committed to do to fix that. Were increase our training in our new york stores and around the country because we want to be perfect in this area. We dont want there ever to be any mistakes. While the compa apologized whole foods still disputes the department claim that it systemat overcharges customers. A we reported earlier in the program, the economy added 223,000 jobs last month. This as an increasing numb of americans are turning to freelancg and away from traditiol fulltime 9 00 to 5 00 jobs. Mary thompson has the latest installment of where the jobs are. Reporte for emily sharon a sixmonth search for a fulltime job ended tslots of parttime work through task rabbit. My work exploded. The former teacher, broadcaste and chef finding Strong Demand for her writing, cooking and other skills through the online odd jobs marketplace. Ive been hired to write a love letter and deliver a frapuccino. These ondemand marketplaces are expanding freelance well into the territory that used to be occupied exclusively by fulltime employment. Professor says this sharingdr shift benefiting highquali freelancers whose re work is generating more jobs for these free lancers at higher pay. Across every profession its significan higher than the bure of labor statistics averages. Rep still, while 10 of the firms 30,000 taskers make parttime work their fulltime job, most tasks make ends meet. 90 of the community is actually utilizing this to pay one to three bills every single month. There is party city. Sharon grosses about 3500 a month after they take their cut. As much as sharon loves the ever changing nature of her job. Nice to meet you. R at her age, she wants the stability of a fulltime job. I want to know exactly what im making. The income uncertaint for many peopleg on their own, which they believe could be partly solved by a government worker funded rainy day reserve. You could imagine the people would be able to put away pretax amounts into an account. Reporte one way of providing protection for a growing number of the workforce. Im Mary Thompson in new york city. To read more head to our website, nbr. Com. Another multibillion Dollar Health ce merger is where we begin tonights market focus. Health net is being bought in a deal at valued at over 6 billion. Insurers are increasingly combinin help cut costs. Health net popped and centene fell. Shares of zoom literally zoomed on news that pay pal will buy the online Money Transfer company. E deal is worth about 900 million before pay pal spins off from ebay. The stock climbed 21 to 2505. Shares of yelp saying ouch. The company stopped its search for a buyer. The Online Review company hired goldman s to help find a suitor but it will hold off on a sale for now. The stock dropped 10 closing at 38. 18. And anthem is rekindling their talks after cigna is reportedly consg a possible acquisition o humana. Anthem fell 1 to 1. 63. Cigna off a fraction. And now to our mark monitor betting big on health care who he suspects it will rise in the next year and a half. Hes a portfolio manager, a Wealth Management firm. Michael, welcome. Nice to have you here. Thanks for having me. Lets start with your picks because im interested in some of the reasoning behind it. Dana herr is one of the stocks and youre looking for a company that is in the first stages of longer term transitions. Tell me about it. Thas right. Its a great example. They announced in the acn about a month ago and the company is going to be splitting. Next year and a half youre going to have an industri busin which was the core business and a faster growing Health Care Business and we see that as a potential catalyst. Each will be leveraged more to do more acquisitions and generate more internal growth. Your second choice on 168 price target or thereabouts, is United Health care. I assume this is because you believe united will be one of the last men standing one of the winners in the consolidation is going on . Thats right, tyler. You have the biggest of the breed, so to speak, and united actually is the most diversifie so they have not Just Health Care management part of the business but internally they have a faster growi f business in the pharmacy of benefit manageme part of health care. And the whole group kind of got a lift here in the last week and a half or so. Some of that overhang from a potentia negative decision from the Affordable Care act. The Supreme Court took that risk away. We do see consolidation happening. The is some jockeying on share pric right now. Serna has a price targetce of 100 over the next 18 to 24 months and its a digital solution. Its an interesting pick. S. Serner is the waste fraud and abuse in the Health Care System and its the largest independent i. T. Services company for health care. Theyve got a really impressive growth projectory and we see that going for the next five years. A little bit of growth there in name not for the faint of heart. It doesnt have some of the dividend protection that unite and dana herr has but the company is on a good track, we think. Michael, thank you very much. Michael with svb capital. You. Coming up do you remember when you used to put pennies in a piggy bank to save b or invest . Now there 50 years after the grateful dead was formed the band will be playing its final show. And farewl tour isnt just about the songs and the fans but also about the bands financial legacy. Steve liesn has more from 50 years ago, the grateful dead embarked on a long, strange trip that changed the music business. Is weekend, the former band members joined together for what is their last show together. It promises to be one of the biggest concerts ever with nearly 250,000 tickets sold ove night and then dead heads call the couch tour the ability tot on multiple media from anywhere in the world. Whe youre watching on your home or tv you can go to a concert venue. Its across the country and they are having screenings you can go to movie theaters its going to be in movie theaters around the worln see it at your house and sit on your couch. We tried to make it available to everywhere the two early shows in santa clara, california, the band included the ability to see it on the web and the first ever music stream on youtube. An estimated 100,000 people paid for it and watched the show. He thinks chicago could be many times that number as the band finds a way to monetize 50 years of goodwill. The grateful deads most successf a touch of gray with fans streaming in from around the world, the city of chicago is expecting a touch of green with an estimated impact between 50 and 100 million. For nightly busine im steve liesman. Steve, in case you didnt guess, is a big dead fan. Well its no secret that 20 something millennials have not been in a rush to save their money. They h been paying off College Loans and may have seen their parents lose money in the stock market over the past 20 years. And so now, though theres an app for that. Apps for investing are not brand new but this app is our latest bright idea. Reporte marlin white is one of the millennials you keep reading about. This 25yearold washington, event planner has been hesitant to invest his money. I think the traditional stock market youre supposed to understa or if your parents dont invest you dont have anyone to tell you how to do it. Rep now hes using an investme management and budgeting cell phone app called acorns. White says its roundup function is helping him find money to invest tracking debit and credit card purchases and rounding the charges up to the nearest dollar putting spare change aside for investments. Think its going to blow up because with the app it makes it really easy. R jeff got the idea for the app when he was a senior in college about six years ago. Now hes a fourth generation investme pro in southern california. His dad walter didnt need much convinci to help his son start the business. I cosip for Car Insurance o my phone at that point, mul i could do but it was difficult to start investing. I remember one day i had the smartpho and said dad, this is your Brokerage Firm this is your broker. These things are getting so smart. What rea smart is the way the app is attracting customers. About 850,000 in just ten months since it went live. Users contribute and indicate a risk tolerance. The app uses acorns proprietary formulas to come up with an asset mix, typically stocks and bonds in etfs from big names like vanguard and pimco. Its built up and its a very big decision and if you can reduce it down to an app approprie decision something that people can commit to in a few minutes with investing spare change it can be quite effective. On top of the typical fees acorn charges just a couple of bucks and one quarter of 1 for accounts more than grand. It wasnt too long ago it cost 35 to do a Wire Transfer and we can now transfer for just a penny or two. R users are accustom to do business on their phone and they are getting hooked. I check it a couple times a day. Of course that video gamelike attraction can also be a concern. Games are good at getting you over and over again. In finance, thats not necessarily a good thing. This professor says constantly trading and checking balances runs counter to the idea of longterm investing but he also notes these apps are helping to enlighten new investors. Thinking about how you increase their Financial Literacy how you increase their sense of empowerment. Those are really where i think its exciting. Exciting too, for jeff and walter who feel like they are helping to blaze a trail with acorns that could be lined up with a whole lot of nuts down the road. I believe that this will be ubiquitous were making it easy and accessible. Old Business Done a new way. 850,000 customers is nothing to sneeze at right in the ballpark with some of the big Brokerage Firms that have had apps for several years. Do you use your phone for financials . I dont. Not my phone. R computer . I use my computer. I know. Im still a little nervous t youre much more progressive than i am my dear. I d that. That does it for nightly for tonight. Im sue herera. Thanks for joining us. And im tyler mat son well see you back here tomorrow for a special nightl edition. Youre making me feel the following kqed production was produced in high definition. Calories, calories, calories wow, it rocked my world it just kind of reminded me of boot camp. I dont know what you had, but this is great it almost f
comparemela.com © 2020. All Rights Reserved.