WEBVTT - Bloomberg's Pettypiece on Walmart, Clark on Tony Fadell (Audio)

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<v Speaker 1>Global business news twenty four hours a day at Bloomberg

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<v Speaker 1>This is a Bloomberg Business Flash from Bloomberg World Headquarters

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<v Speaker 1>and Charlie how at the dial. The SMP NEZDAC all

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<v Speaker 1>lower today. Stocks did pair their declines and this update

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<v Speaker 1>brought to you by National realtyt returns on cash in

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<v Speaker 1>rented real estate find them at n r i A

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<v Speaker 1>dot net. Stocks paired losses as the dollar fell, treasuries

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<v Speaker 1>and gold gained after US employers out of the fewest

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<v Speaker 1>jobs in almost six years in May, bolstering the case

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<v Speaker 1>for the Federal Reserve to leave rates lower full longer.

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<v Speaker 1>SMP five hundred index down six to two thousand ninety nine,

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<v Speaker 1>a drop of three tenths of one percent. Shares of

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<v Speaker 1>commodity producers extended gains, helping the SMP five hundred index

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<v Speaker 1>trim declines, Gold surging thirty three sixty ounce to twelve

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<v Speaker 1>forty six, a gain there of two point eight percent.

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<v Speaker 1>Crewed down eight tenths of one percent, down thirty nine

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<v Speaker 1>cents forty seventy at a barrel on West Texas Intermediate

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<v Speaker 1>without down thirty one points a drop of two tenths

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<v Speaker 1>of one percent and has stack down twenty eight, a

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<v Speaker 1>drop of six tenths of one percent. I'm Charlie Pella.

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<v Speaker 1>That's a Bloomberg Business flash. This is taking stock with

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<v Speaker 1>Kathleen Hayes and Pin Box on Bloomberg Radio. Shares of

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<v Speaker 1>Walmart stores down about a tenth of a percent today

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<v Speaker 1>trades lower by eight cents at seventy dollars and eighty

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<v Speaker 1>seven cents. This comes after Walmart says it's far to

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<v Speaker 1>test grocery delivery service with Uber Technologies and Lift all

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<v Speaker 1>part of Walmart's effort to compete head to head with

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<v Speaker 1>Amazon dot Com. Let's find out more from Shannon Petty,

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<v Speaker 1>piece US consumer reporter for Bloomberg News. Shannon, always a pleasure,

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<v Speaker 1>Thanks for being with us. Yeah, glad to be here.

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<v Speaker 1>All right, So you at the meeting, CEO. This was

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<v Speaker 1>Doug McMillan's effort to kind of say, look, where in

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<v Speaker 1>the technology business as much as we're in the retail business. Uh,

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<v Speaker 1>the annual shareholder meeting today, they're going to start this

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<v Speaker 1>grocery delivery service in Denver and Phoenix later in the month.

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<v Speaker 1>Is this really what's going to turn Walmart around as

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<v Speaker 1>it needed. Well. I think what they're doing here with

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<v Speaker 1>this grocery delivery and also this grocery pickup service is

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<v Speaker 1>they're really trying to like fortify the walls of the

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<v Speaker 1>fort around their grocery business. Grocery accounts for more than

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<v Speaker 1>half of Walmart's US business, Like, they can't lose in grocery.

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<v Speaker 1>And when you have Amazon, Google, Um Target dipping their

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<v Speaker 1>toes into grocery delivery, I think Walmart knows. Yes, they

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<v Speaker 1>obviously they sort of missed the boat on the Internet,

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<v Speaker 1>and you know with Amazon when it comes to general merchandise,

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<v Speaker 1>they've been trying really hard to play catch up. But

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<v Speaker 1>when it comes to grocery, they cannot lose their like

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<v Speaker 1>they cannot be caught behind, and so doing things like

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<v Speaker 1>testing this grocery delivery service they announced today where you

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<v Speaker 1>place your order online, an uber or a lift dry

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<v Speaker 1>ever in these two cities that are testing it, goes

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<v Speaker 1>and picks it up, drives it to your house for

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<v Speaker 1>a seven to ten dollar delivery. See UM. The other

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<v Speaker 1>thing they've gone as this grocery pickup service, So you

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<v Speaker 1>order your groceries online and then um you drive into

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<v Speaker 1>the Walmart parking lot, you send a notification to the

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<v Speaker 1>store that you're there, and in less than five minutes,

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<v Speaker 1>an employee wheels a card out, put them in your trunk,

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<v Speaker 1>and you never have to get out of the car.

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<v Speaker 1>Like they're trying to do all of these things to

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<v Speaker 1>really make sure they aren't going to be losing any

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<v Speaker 1>grocery business and hopefully picking up some more, hopefully attracting

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<v Speaker 1>customers who want a shop at Walmart, who will because

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<v Speaker 1>of the convenience, and then of course just improving their

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<v Speaker 1>brand in general with customers. Hey, we're a company with

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<v Speaker 1>a website and we do stuff online. You're in the

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<v Speaker 1>parking let's get groceries. Don't you want to stop in

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<v Speaker 1>and pick up some kids clothes? You know, and then

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<v Speaker 1>it will sort of trickle out to the rest of

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<v Speaker 1>their business. So Shannon share some of the color as

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<v Speaker 1>you uh report all day at the Bud Walton Arena

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<v Speaker 1>on the University of Arkansas campus at the Walmart Annual Meeting,

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<v Speaker 1>because it strikes me too, this seems on a very

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<v Speaker 1>practical of that's it's huge, you know, get the groceries

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<v Speaker 1>out there, maintain this business. But isn't also something about saying, Hey,

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<v Speaker 1>we're not the old Walmart Walmart, we are kind of

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<v Speaker 1>hip and cool. Isn't that part of what they are

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<v Speaker 1>trying to get out to customers and and people who

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<v Speaker 1>buy their stock. Yeah, that's a really interesting question, and

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<v Speaker 1>something I've been thinking about the past few days as

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<v Speaker 1>I've been here is this sort of mix between old

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<v Speaker 1>Walmart new Walmart. So they've been bringing some things back

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<v Speaker 1>from the past. Um, these smiley face logo that UM

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<v Speaker 1>in the nineteen eighties and the nineteen nineties was all

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<v Speaker 1>over Walmart marketing material. When there was a low price,

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<v Speaker 1>they had that miley face next to it. Like that

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<v Speaker 1>went away in two thousand six, and they announced at

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<v Speaker 1>this meeting they were bringing that back. A few and

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<v Speaker 1>maybe it was last month, they brought back the door

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<v Speaker 1>greeters who had sort of been dispersed to other parts

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<v Speaker 1>of the store UM to do other tasks the companies

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<v Speaker 1>that they're bringing those to the door. The old hallmark

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<v Speaker 1>of Sam Walton layaway over Christmas, they brought that back.

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<v Speaker 1>So there's been a number of big things that used

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<v Speaker 1>to be hallmarks of Walmart that went away that they're

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<v Speaker 1>bringing back. So in a sense, there's this little bit

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<v Speaker 1>back to the future, but at the same time we've

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<v Speaker 1>got all this new tech coming out saying we're also

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<v Speaker 1>a new hip company. So it's an interesting dynamic. Channon

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<v Speaker 1>Petty Peace, thank you so very much. Interesting conversation about

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<v Speaker 1>Walmart at the annual meeting today. We're breaking news this

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<v Speaker 1>afternoon Tony Fidel sitting stepping down as the head of

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<v Speaker 1>Nest Labs, a blow to Google, which bought the company

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<v Speaker 1>just two years ago. Joining us now is Jack Clark

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<v Speaker 1>Jack interesting story. You say it's a blow to Google

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<v Speaker 1>to have Tony Fidel leaving, but they some say he

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<v Speaker 1>was a problem. So they've been employee complaints about Nest

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<v Speaker 1>for the last few months. They've also been delays on product.

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<v Speaker 1>At the same time, Fidel has said in the blog

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<v Speaker 1>post that this is a personal decision that's been underway

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<v Speaker 1>since last year. However, it is a blow to Google

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<v Speaker 1>to lose a high profile CEO of one of its

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<v Speaker 1>alphabet ventures, probably the most high profile of the non

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<v Speaker 1>Google businesses. Jack, is there any indication at the three

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<v Speaker 1>point two billion dollars that Google paid for Nest is

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<v Speaker 1>it an acquisition they regret or is it just just

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<v Speaker 1>an executive issue they're portraying it as an executive issue.

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<v Speaker 1>They point out the revenues have grown. Internet of things

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<v Speaker 1>products are a crucial part of Alphabet's future. But you

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<v Speaker 1>may notice that Google just announced Google Home, which is

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<v Speaker 1>a smart AI powered virtual system that will sit in

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<v Speaker 1>your living room and talk to you, much like Amazon's Echo.

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<v Speaker 1>That's being done out of the Google business rather than Nest,

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<v Speaker 1>So they're certainly hedging their bets with another products line

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<v Speaker 1>not coming from Nest. Now, well, next move for Tony

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<v Speaker 1>Fidel any ideas quickly? Well, he's got a start up

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<v Speaker 1>that he's sort of involved in that does internet connected

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<v Speaker 1>go karts for children, So he's going to be working

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<v Speaker 1>on that for a while. He's already been working on

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<v Speaker 1>that for a few weeks. So it became public, I believe,

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<v Speaker 1>last month. And he's a lifelong hardware tinkerer. I don't

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<v Speaker 1>think this is the last will hear from him? Jack Clark,

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<v Speaker 1>thank you so very much, Bloomberg News reporter about Tony

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<v Speaker 1>Fidel leaving Nest two years after Google bought the company, Pam,

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<v Speaker 1>we got a big day on Monday. Janet Yellen speaks

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<v Speaker 1>at twelve thirty. What will she say about the economy

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<v Speaker 1>and future interest rate moves, Yes and a big day

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<v Speaker 1>beginning on Tuesday for us. Were broadcasting live from Pershing's

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<v Speaker 1>Inside sixteen conference at the Higatt Regency in Portlando. Thank

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<v Speaker 1>you for joining us today on taking stuff, Keep it

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<v Speaker 1>right here on Bloomberg Radio for Bloomberg Law coming up.

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