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