Speaker 1: Broadcasting live to New York, Bloomberg eleven, Brio to Washington,
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Speaker 1: one nine and around the globe the Bloomberg Radio Plus
Speaker 1: and Bloomberg Got Gone. This is taking Stock. Coming up
Speaker 1: on taking Stock. Do you think that Amazon already rules
Speaker 1: the world? While according to my next guest, get ready,
Speaker 1: you've not seen anything yet. We're gonna be talking about Amazon,
Speaker 1: its logistics business and its ability to crush almost everything
Speaker 1: in between the producer and the consumer of a product.
Speaker 1: But right now, let's go to Katherine Cownterie in the
Speaker 1: Bloomberg news room for you Bloomberg Business Flash. Thank you,
Speaker 1: Pam Bloomberg. Taking Song has brought to you by the
Speaker 1: American Arbitration Association. Business disputes are inevitable, resolve them faster
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Speaker 1: dispute resolution for over eighty five years. Learn more at
Speaker 1: a dr dot org. The stock market has reversed direction
Speaker 1: and is gaining for the first time in four days.
Speaker 1: The smallest job's advance in seven months, is fueling speculation
Speaker 1: that the Fed Reserve will look to raise interest rates gradually.
Speaker 1: The report showed employers added one hundred sixty thousand jobs
Speaker 1: last month. That's far fewer than the two hundred thousand
Speaker 1: that economists had anticipated. John Canally, chief economic strategist at
Speaker 1: LPL Financial, says for stock investors, the report was mixed.
Speaker 1: Not strong enough the cause of FED rate hike in June,
Speaker 1: which is good, but also not weak enough to suggest
Speaker 1: that there's a global growth scare. So it was a
Speaker 1: narrow path for this report to actually be somewhat favorably
Speaker 1: viewed by markets, and I think we hit that path
Speaker 1: alough it might be on flood on the side of
Speaker 1: a week. We check the markets every fifteen minutes throughout
Speaker 1: the trading day. Down industrial average is up sixty three
Speaker 1: points a third percent, trading at seventeen thousand, seven hundred
Speaker 1: twenty three. Smp f I thundered up five points at
Speaker 1: quarter percent to two thousand fifty five. The NASTACAZ up
Speaker 1: twelve points a quarter percent. Its trading at eight West
Speaker 1: Texisinemedia Crude oil up thirty one cents a barrel to
Speaker 1: forty four sixty three spot gold up eighteen dollars. Announciense
Speaker 1: a cane at one point four percent, trading at twelve
Speaker 1: ten year treasury down eight thirty seconds with the yield
Speaker 1: of one point seven seven percent. Among today's top business stories,
Speaker 1: Charter Communications has cleared its last federal hurdle to become
Speaker 1: the second largest cable company in the US. The FCC
Speaker 1: has approved its murder with Time Warner Cable. The development
Speaker 1: leads approval from California as a final regulatory hurdle for
Speaker 1: the fifty five billion dollar deal. It's three thirty two
Speaker 1: on All Street and having dis time to get an
Speaker 1: update of some of the other stories were following right
Speaker 1: here on Bloomberg Radio. Thank you Catherine from the Bloomberg Newsroom.
Speaker 1: I'm a Lisa Parenti. This news update is brought to
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Speaker 1: luxurious interior and legendary four by four capability. Drive one
Speaker 1: at your local Jeep dealer Today. President Obama, answering questions
Speaker 1: from reporters today, refused to comment directly on Donald Trump
Speaker 1: becoming the presumptive Republican presidential nominee, but the President called
Speaker 1: Trump the standard bearer of the GOP and said voters
Speaker 1: and the media need to examine his policy positions and
Speaker 1: statements carefully going forward. This is not entertainment. There's not
Speaker 1: a reality show. This is a contest for the presidency
Speaker 1: of the United States. As for the Democrats, Mr Obama
Speaker 1: said he won't make an endorsement until the primary process
Speaker 1: plays out. He said he expects both candidates to work
Speaker 1: to unify the Democratic Party for the general election. Pentagon
Speaker 1: Press Secretary Peter Cook says the attack by Islamic State
Speaker 1: in Iraq this week that killed Petty Officer first Class
Speaker 1: Charles Keating took officials by surprise. And the forces they're
Speaker 1: been able to see this attack coming, they would have
Speaker 1: responded differently to it. Perhaps this could have been avoided.
Speaker 1: That's certainly something that that we're looking at carefully. Keating
Speaker 1: is the third U s Service member to be killed
Speaker 1: in combat in a Rock since US forces returned there
Speaker 1: in two Police on Long Island say stepped up efforts
Speaker 1: to fight an opioid crisis are paying off. Suffolk Police
Speaker 1: have made more than one hundred fifty arrests and sees
Speaker 1: more than one million dollars this year. Global News twenty
Speaker 1: four hours a day, powered by our twenty four hundred
Speaker 1: journalists and more than one hundred fifty news bureaus around
Speaker 1: the world. From the Bloomberg News Room, I'm Alisa Parenti, Katherine,
Speaker 1: thank you. And now let's get a quick update of
Speaker 1: the equity benchmarks down Industrial averages up fifty five points
Speaker 1: at seventeen thousand, seven hundred sixteen smp F I founded,
Speaker 1: up three and a half points at two thousand, fifty
Speaker 1: four nasat higher by nine points trading at And that's
Speaker 1: a Bloomberg business flash. You're listening to Taking Stock with
Speaker 1: Kathleen Hayes and Pim Fox on Bloomberg Radio. Amazon. Amazon
Speaker 1: will least twenty Boeing seven six seven jets from Atlas
Speaker 1: world Wide. That was announced yesterday. In March, Amazon also
Speaker 1: agreed to least twenty Boeing seven six sevens from air
Speaker 1: Transport Services Group. So is Amazon getting into the airline
Speaker 1: and logistics business. Let's find out from my next guest,
Speaker 1: Satish Jendal, joins me. Now, Satis Jendal is an expert
Speaker 1: when it comes to the world of logistics and transport.
Speaker 1: He is the founder and the president of s J
Speaker 1: Consulting Satish. Always a pleasure, Thanks for coming in, Thanks
Speaker 1: for having um. It just set the record so people
Speaker 1: understand a little bit about your experience, so that they
Speaker 1: are aware that you know a lot about logistics and
Speaker 1: also about the changing nature of who's in the logistics business.
Speaker 1: I have worked with every global transportation provider that we have,
Speaker 1: from FedEx, do Ups to d h L to T
Speaker 1: and T and on and on. And I've been in
Speaker 1: this industry thirty some years, have been part of all
Speaker 1: the major changes the industry has had an influence many
Speaker 1: of them, and have worked with overtoned companies around the globe.
Speaker 1: So and also deal with many of the retail shippers
Speaker 1: through the technology of ship Matrix and have got great
Speaker 1: insight into the paints they're experiencing. All right, So, now,
Speaker 1: did you ever think that you will be writing about
Speaker 1: Amazon as a shipping and logistics company? You know, for
Speaker 1: people who know me, they are shocked that I could
Speaker 1: put up paper like that about Amazon out And when
Speaker 1: you had me on the taking Stock television a year
Speaker 1: ago about minions, you saw what I had to say
Speaker 1: about it. Amazon is a company that is a very
Speaker 1: large company, but it operates like a very small company.
Speaker 1: When they've put ideas, they don't waste time analyzing and
Speaker 1: analyzing for a year it becomes dated. They implement and
Speaker 1: they test it. If it works, they go forward. If
Speaker 1: it doesn't, they move on to something else. And Amazon
Speaker 1: is going to change the way people think of retail sector.
Speaker 1: And let me put in perspective. Not many people will
Speaker 1: realize that there used to be a time when when
Speaker 1: you bought something from a retail store and you took
Speaker 1: it back, they won't take it back. You couldn't take
Speaker 1: it back. There was no returns, and if some of
Speaker 1: them did take it, there the stocking fee. Today, every
Speaker 1: retailer takes our return returns are very expensive for our retailer.
Speaker 1: So what do they do? They take it? But then
Speaker 1: who's paying for it? Everyone? It's part of the business
Speaker 1: model Amazon exchanging that where they're gonna say free shipping
Speaker 1: is part of the business model. You have to find
Speaker 1: ways to recover the cost of shipping. And Amazon has
Speaker 1: got the best model for it. That's gonna crush other
Speaker 1: retailers who are struggling with it. Social investors who are
Speaker 1: invested in fed X and UPS, should they be concerned.
Speaker 1: They should be concerned from the perspective that those companies
Speaker 1: need to respond at a faster pace to the changes
Speaker 1: taking place in the e commerce world, and to the
Speaker 1: extent that some of them will tell their investors that
Speaker 1: we're not losing any business because our customers are not
Speaker 1: going to Amazon. What Amazon is doing is when they
Speaker 1: are shipping a billion packages a year and managing it themselves.
Speaker 1: Those packages would have been part of a fed X
Speaker 1: or a UPS or a post off the network. The
Speaker 1: report that you put together about Amazon. Where can people
Speaker 1: access this so that they can learn a little bit
Speaker 1: more in detail? They can't get the details for free.
Speaker 1: We've spent three months, over two fifty hours of research
Speaker 1: assembling it, and people who wanted are placing orders for it,
Speaker 1: and they can buy They can get the highlight from
Speaker 1: the articles that they have been published. Vast Peak is
Speaker 1: going to be including that in one of their reports,
Speaker 1: but for the full details and the charts and the tables,
Speaker 1: they would have to buy it. How much is this
Speaker 1: going to cost Amazon to put together or is that
Speaker 1: immaterial for a company of this size. You know Amazon
Speaker 1: is going to spend sixteen billion on all of this
Speaker 1: for this year, on the outbound shipping twenty two billion
Speaker 1: next year. That's a lot of money, but it is
Speaker 1: still a better model for them because what Amazons approaches
Speaker 1: that my customer is my customer, and I want them
Speaker 1: to have my kind of experience from the time they
Speaker 1: place the order till it is delivered to their doorstep.
Speaker 1: Turning it over to a carrier and washing your hands
Speaker 1: off like retailers to is not the customer satisfaction model
Speaker 1: that they are pushing, which I think is a very
Speaker 1: high level of customer satisfaction. And they're going to to
Speaker 1: English themselves from that perspective and whatever it takes for
Speaker 1: them to build this, they're not trying to build it.
Speaker 1: They're trying to control the distribution and the fulfillment. And
Speaker 1: it's the control that's important that doesn't cost as much
Speaker 1: as building it. Is. This also part of their strategy
Speaker 1: to expand outside the United States. I mean, obviously it
Speaker 1: already is global, but to reach even deeper into emerging
Speaker 1: economies where they want to be big players. Yes, and
Speaker 1: they're already doing that in India. I know it from
Speaker 1: being my home country. They're doing it in Europe. Look
Speaker 1: at their buying an airport in Germany. They can control
Speaker 1: of it and what they plan to do. And this
Speaker 1: is where people don't realize. The biggest target for Amazon
Speaker 1: in their corporate offices is another company starts within eight
Speaker 1: and it's not Walmart, and it's not Target and others.
Speaker 1: It's Alabama. Because Alabama is approaching it in the perspective,
Speaker 1: they're saying, I'm gonna make it easy for the manufacturer
Speaker 1: to sell directly to the consumer, which is the real
Speaker 1: value of Internet is connect pieces people without middleman. Amazon
Speaker 1: is saying, ah, when it comes to product moving, I'm
Speaker 1: going to control that because distribution is critical the goods
Speaker 1: moving from one point to the other. And I'll have
Speaker 1: the cheapest and the fastest solution that no manufacturer will
Speaker 1: be able to offer. Thank you very much, Satisue Gindle
Speaker 1: of s J and southing. Where where's the airport in Germany?
Speaker 1: Maybe we'll go visit. It's near Frankfoot. Aye, we'll take
Speaker 1: a little ship there in Amazon's new airport. Thank you
Speaker 1: very much, satis Gender On Amazon, it wants to rule
Speaker 1: the world. Coming up on taking stock, We're going to
Speaker 1: take stock of impact investing, What is it sustainable investing
Speaker 1: and what portion of your portfolio should it be dedicated to.
Speaker 1: That's next