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Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C,

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Speaker 1: Bloomberg to Boston, Bloomberg twelve Honors, to San Francisco, Bloomberg

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Speaker 1: to the Country, Channel one ninety and around the globe

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Speaker 1: the Bloomberg Radio Bus, Bloomberg dot Com. This is Bloomberg Surveillance.

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Speaker 1: Good morning, seventh thirty on All Street and Michael A.

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Speaker 1: Key along with Tom King were two hours away from

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Speaker 1: the start of trading. So far futures hanging in there.

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Speaker 1: It looks like an up day at least. To open

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Speaker 1: the markets will be the fourth day in a row.

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Speaker 1: We shall see. Walmart chair is not going to open higher.

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Speaker 1: Walmart cutting its annual sales forecast to relatively flat from

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Speaker 1: a previous view of up three percent to four percent,

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Speaker 1: earnings per share of four dollars to four dollars and

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Speaker 1: thirty cents. The estimate is four thirteen Rather wide. They're UH.

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Speaker 1: Their first quarter comps sales disappointed UH and revenue was short.

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Speaker 1: Walmart shares now down four point four on the day,

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Speaker 1: boeing we can mention them won't face labor strife later

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Speaker 1: this year. Engineers and technical workers are proving a six

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Speaker 1: year contract extension Boeing shares flat in early trading. Now,

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Speaker 1: let's check in with Michael Barr and get the latest

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Speaker 1: World and National Mike, thank you very much, fines. President

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Speaker 1: Joe Biden says President Barack Obama is looking to nominate

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Speaker 1: a Supreme Court candidate who has been supported by Republicans

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Speaker 1: in the past, Republicans have threatened to block any action

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Speaker 1: on the President's nominee to replace late Justice Hanton and Scalia.

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Speaker 1: Biden tells Minnesota Public Radio Today that there are plenty

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Speaker 1: of judges who seemingly fit the criteria. President Obama will

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Speaker 1: announce his plans later today for his historic trip to

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Speaker 1: Cuba next month. It would be the first time a

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Speaker 1: sitting president has visited Havana since Calvin Coolidge in night.

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Speaker 1: Not everyone is on board with the President's trip. Florida

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Speaker 1: Congresswoman Ailena Ross late in it. How does that benefit

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Speaker 1: the United States at all? Does it make us any

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Speaker 1: safer to have a Cuban embassy in Washington? No, it

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Speaker 1: makes us less safe. The U. S. And Cuba recently

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Speaker 1: signed an agreement to allow commercial flights between the two countries.

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Speaker 1: So Yoga is recalling about two point nine million sport

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Speaker 1: utility vehicles because of seatbelts that might fail in the crash.

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Speaker 1: More than one point one million of those SUVs are

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Speaker 1: in the US. The recall covers RAV four SUVs from

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Speaker 1: two thousand five through team model years. Global News twenty

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Speaker 1: four hours a day, powered by our dred journalists and

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Speaker 1: more than a hundred fifty news bureaus from around the world.

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Speaker 1: I'm Michael Barr, Mike, thank you, Michael. Time now for

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Speaker 1: the Ray Katina Auto Group, Bloomberg NBC Sports Update with

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Speaker 1: John stash Our, John all Right, Light Chicago Black Ops

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Speaker 1: be the White House today on it for winning the

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Speaker 1: Stanley Cup third time in six years. There at top

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Speaker 1: the Western Conference again this season showed why at the

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Speaker 1: Garden last night they led the Rangers to nothing. They

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Speaker 1: fell behind three to two. A rookie led the black

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Speaker 1: Ops back first change star for r Chevy p Black

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Speaker 1: Cooks pick up five free lead and that was the final.

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Speaker 1: NBC the call despight getting the captain Ryan mcdunnob back

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Speaker 1: from his head injury. The first regulation time home loss

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Speaker 1: for the Rangers since December. College basketball in the sports

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Speaker 1: best rivalry Ducally Land in the second half twice, never

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Speaker 1: by more than the point for the Blue Devils one

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Speaker 1: at North Carolina sev seventy three. St. John's sixteen game

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Speaker 1: losing streak finally over eighty to sixty five over De Paul.

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Speaker 1: A win for Seaton Hall that could help at NC

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Speaker 1: double a hope four over Georgetown Fordham beat you Mass. St.

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Speaker 1: Peter's top Manhattan and Stony Brooks eighteen game winning streak,

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Speaker 1: longest with the nation, came to an end at alban

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Speaker 1: eighty two to seventy With the Bloomberg NBC Sports Update,

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Speaker 1: I'm John Stage. Thank you John. As we mentioned, SMP

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Speaker 1: shares up by six points now three tenths of eight percent,

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Speaker 1: as we get ready to see if we can do

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Speaker 1: four days in a row. I don't know if it

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Speaker 1: qualifies as a turnaround or not. Tech the land, Let's

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Speaker 1: tell you it's abounce. We shall see ten your note Yale,

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Speaker 1: though higher than it was yesterday one point eight one

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Speaker 1: per cent. This is Bloomberg Radio worldwide, and welcome back

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Speaker 1: to Bloomberg Surveillance. I Michael McKee along with Tom Keene.

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Speaker 1: As we mentioned, a a risk on day for everyone

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Speaker 1: except the British. The foot seed down by twenty one points,

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Speaker 1: right now, they're kind of waiting to see what happens

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Speaker 1: with this whole Brexit talk. The negotiations underway in Brussels,

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Speaker 1: will see if Prime Minister Cameron comes up with a

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Speaker 1: deal that he can sell to the British people. The

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Speaker 1: rest of the world looking reasonably happy. US futures up

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Speaker 1: across the board by around three tenths of a percent.

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Speaker 1: The stock six D in Europe is up by three

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Speaker 1: points right now. That is eight tenths of a per cent.

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Speaker 1: Time now for the Bloomberg n j I T STEM Report,

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Speaker 1: brought to you by New Jersey Institute of Technology, partnering

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Speaker 1: with government and industry to apply the university's world class

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Speaker 1: research assets to innovate and spur economic growth. Learn more

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Speaker 1: at n j I T dot e d U. Here

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Speaker 1: is Michael good Morning, seven thirty four on Wall Streets,

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Speaker 1: and here's what's making news in science, technology, engineering and math.

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Speaker 1: Tim Cook has picked a flight with the US government,

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Speaker 1: and Silicon Valley is joining his side. From Google to Facebook,

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Speaker 1: the industry's biggest names have rallied around Apple's chief executive

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Speaker 1: officer after he valued a resist a court order demanding

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Speaker 1: it helped unlock the iPhone of a shooter in the

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Speaker 1: California terrorist attacks. Technologically speaking, Apple has the capability it

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Speaker 1: needs to comply with the government's request, but giving the

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Speaker 1: government a back door to its customers private communication, it contends,

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Speaker 1: would be a dangerous president, which could then lead to

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Speaker 1: a relatively simple technical work around to obtain call records,

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Speaker 1: text messages, text messages, and other data. The coalition representing

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Speaker 1: companies including Google, Facebook, Microsoft, and Twitter issued a statement

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Speaker 1: reiterating that while it's extremely important to deter crime and terrorism,

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Speaker 1: no company should be required to builddoors to their own technology. Separately,

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Speaker 1: Google chief executives Sundar Pachai explained that his company provides

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Speaker 1: law enforcement access to data based on valid legal orders,

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Speaker 1: but added that's wholly different than requiring companies to enable

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Speaker 1: hacking of customer devices and data. And that's this morning's

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Speaker 1: Bloomberg and j I T Stem report. Michael, thank you,

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Speaker 1: Robert Walmart. As we mentioned, UH cutting their forecast for

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Speaker 1: the year to relatively flat. Previous view was up three

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Speaker 1: to four percent. They are, as so many companies are

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Speaker 1: these days, blaming the dollar. They also cite recent store

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Speaker 1: closings for the forecast and for the fact that comp

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Speaker 1: sales are not going to be significantly improving. They were

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Speaker 1: also short on estimates. Shannon Petty Peace covers Walmart for

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Speaker 1: Bloomberg News. Shannon, Walmart, we know is in a quote

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Speaker 1: unquote turnaround process. So do we look at their results

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Speaker 1: in the most recent quarter as a failure of management

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Speaker 1: to the stocks getting killed down down four and a

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Speaker 1: half percent in early trading, or as just part of

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Speaker 1: a bumpy step towards uh, the eventual achievement of their goals. Um. Well,

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Speaker 1: I mean, I guess you know, it takes time to

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Speaker 1: turn around the titanic. Um. You know, they're humongous company.

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Speaker 1: They have almost five billion dollars in revenue each year. UM,

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Speaker 1: so you know it wasn't going to be painless. But

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Speaker 1: expectations have been because a really um, you know low

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Speaker 1: for among investors and analysts for Walmart. Um. You know,

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Speaker 1: for example, analysts, we're expecting um same source sales to

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Speaker 1: increase about one percent. Walmart only increase them about half

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Speaker 1: a percent to zero point six percent, you know, and

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Speaker 1: for you know, the next year. They had given this

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Speaker 1: guidance in October saying that sales would grow about three percent. Uh.

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Speaker 1: You know, investors weren't happy with that, but they had

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Speaker 1: sort of grown to live with it, and then they said, oh,

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Speaker 1: well wait, you know that really didn't take into account

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Speaker 1: how strong the dollar has been. You know, when you

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Speaker 1: factor in currency, it's going to be flat this year.

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Speaker 1: And I think that just sort of um, you know,

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Speaker 1: it's not pleasing to investors, or they're at least saying, well,

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Speaker 1: why do I stick around with a company that's not

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Speaker 1: going to have any growth next year? There's plenty of

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Speaker 1: companies that are still growing despite everything that's going on

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Speaker 1: in the global economy. These guys just getting killed by Amazon.

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Speaker 1: I mean, Walmart was the world's biggest store, uh, destroying

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Speaker 1: everybody through the nineties or early two thousand's, and now

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Speaker 1: they almost seem irrelevant in this age of Amazon. Well,

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Speaker 1: and I think, yeah, Amazon's kind of the elephant in

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Speaker 1: the room. And when you look at e commerce sales,

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Speaker 1: they were up eight percent in the quarter, um and

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Speaker 1: that might sound good, but in context, they've been slowing.

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Speaker 1: They were they were ten percent last quarter, they were um,

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Speaker 1: you know, fifteen percent a quarter before. A year ago,

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Speaker 1: they were around you know, so part of that's the

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Speaker 1: law of large numbers, but not a lot of that.

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Speaker 1: I mean when you look at Amazon, I mean they

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Speaker 1: are double digit growth, just you know, chugging away no

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Speaker 1: matter how big they get. Um, you know their growth

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Speaker 1: is going faster and faster. So um, I think yeah,

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Speaker 1: the online side, despite all the investment the company has

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Speaker 1: been putting into that, it's at least as far as

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Speaker 1: the perception is what investors want, it's not growing as

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Speaker 1: fast as as they wanted to. So what does the

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Speaker 1: Amazon say to investors on their call today? How do

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Speaker 1: they keep them on board? So? How does walmartt? Yeah?

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Speaker 1: Has Walmart keeping them on board? Um? You know they

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Speaker 1: are blaming currency, They're blaming these store closures even though

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Speaker 1: the store closures were tiny rounding error for the company. Um.

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Speaker 1: You know, they're blaming food deflation and milk and dairy.

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Speaker 1: But again, you know, this is a huge company. You

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Speaker 1: know how much milk and dairy do they sell? Um?

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Speaker 1: And uh you know that. I think the real message though,

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Speaker 1: is we've got a strategy in place. We're trying to

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Speaker 1: fix up our US stores. We're spending in our online operations,

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Speaker 1: We're trying to get more competitive there. We have the strategy,

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Speaker 1: we're sticking to it. We see some signs that it's improving.

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Speaker 1: We see the quality of our stores improving, We see

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Speaker 1: slight improvements in traffic. Hey, at least our same store

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Speaker 1: sales weren't down, which was the case a couple of

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Speaker 1: years ago. Um, you know, stick with our strategy. But

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Speaker 1: I do always kind of note to Walt on Walmart. Um,

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Speaker 1: you know, they're owned and controlled by the Walton family,

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Speaker 1: and so there's at the very end of the day,

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Speaker 1: there's only one shareholds that really matters, and that's the

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Speaker 1: Walton family. And um, you know, obviously they have to

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Speaker 1: take into account the way Wall Street fills and and

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Speaker 1: respond to all of their shareholders. But that's who controls management,

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Speaker 1: that's who controls the strategy, and as long as they're

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Speaker 1: sticking by it, the family is, then you're probably not

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Speaker 1: going to see any big drastic changes. Shannon Petty Peace,

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Speaker 1: thank you very much. Well. The Walton family has a

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Speaker 1: stock price of right now that is down four and

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Speaker 1: a quarter percent from from where it closed yesterday at

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Speaker 1: sixty six eleven after reporting those disappointing shares, and it

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Speaker 1: may be weighing a bit on Walmart. I mean on

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Speaker 1: the market s SMP now only up four points two

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Speaker 1: tenths of eight percent. This is Bloomberg Radio Bloomberg Announced

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