1 00:00:02,520 --> 00:00:10,440 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast, 2 00:00:10,800 --> 00:00:14,040 Speaker 1: your roundup of companies making moves in the stock market, 3 00:00:14,240 --> 00:00:17,120 Speaker 1: harnessing the power of Bloomberg Data. 4 00:00:17,480 --> 00:00:19,840 Speaker 2: Let's take a look at some of the stocks on 5 00:00:19,920 --> 00:00:23,040 Speaker 2: the move on this interesting day. We're joined by Bloomberg's 6 00:00:23,160 --> 00:00:23,760 Speaker 2: John Tucker. 7 00:00:23,960 --> 00:00:27,320 Speaker 3: Let's start in the luxury space. We have deal news, 8 00:00:27,760 --> 00:00:30,639 Speaker 3: and who better to talk about the luxury space than me. 9 00:00:31,400 --> 00:00:35,080 Speaker 3: Prada agreeing to buy Versance for one point three eight 10 00:00:35,120 --> 00:00:38,040 Speaker 3: billion dollars in cash. This is a deal aimed at 11 00:00:38,040 --> 00:00:42,280 Speaker 3: strengthening Prana's position as Italy's largest fashion group. 12 00:00:42,320 --> 00:00:42,600 Speaker 1: Wow. 13 00:00:42,840 --> 00:00:45,479 Speaker 3: The companies based in Milan. They expect the transaction to 14 00:00:45,520 --> 00:00:49,040 Speaker 3: close in the second half of this year. You recall 15 00:00:49,120 --> 00:00:51,320 Speaker 3: earlier this year we reported that Prana was near a 16 00:00:51,320 --> 00:00:55,000 Speaker 3: deal to buy a Versanchi from Capri. They paid one 17 00:00:55,000 --> 00:00:58,279 Speaker 3: point eight billion dollars for the brand back in twenty eighteen. 18 00:00:59,120 --> 00:01:02,120 Speaker 3: This purchase is the largest in Prada's one hundred and 19 00:01:02,200 --> 00:01:07,880 Speaker 3: twelve year history, returning Versace to Italian ownership and could 20 00:01:07,959 --> 00:01:11,040 Speaker 3: put product in a better position to compete with some 21 00:01:11,080 --> 00:01:12,880 Speaker 3: of the bigger luxury brands. 22 00:01:12,920 --> 00:01:15,240 Speaker 2: And they got construction at Fifth Avenue. They sort of 23 00:01:15,319 --> 00:01:18,640 Speaker 2: kicked off the Fifth Avenue purchase that Lewis Futon's doing 24 00:01:19,160 --> 00:01:21,480 Speaker 2: as well. They're at Fifth Avenue in fifty seven. 25 00:01:21,480 --> 00:01:24,240 Speaker 3: Which is draped in a big looks like a big suitcase. 26 00:01:24,280 --> 00:01:28,200 Speaker 2: Is yeah, you know, you know, you say no, we're 27 00:01:28,240 --> 00:01:30,640 Speaker 2: not getting that this quarter dere Versaci. 28 00:01:30,840 --> 00:01:34,760 Speaker 3: As you know my experiences, they have a flashy ready 29 00:01:34,800 --> 00:01:35,440 Speaker 3: to wear design. 30 00:01:35,520 --> 00:01:37,120 Speaker 2: Yeah, it's a little too flash. I mean, we're not 31 00:01:37,280 --> 00:01:40,240 Speaker 2: We're not striding in VERSACEI not quite there yet this morning, 32 00:01:40,440 --> 00:01:41,039 Speaker 2: let's move on. 33 00:01:41,440 --> 00:01:45,000 Speaker 3: At a factory in China that turns out Christmas ornaments 34 00:01:45,000 --> 00:01:48,240 Speaker 3: for Walmart, it's always been pretty much standard practice to 35 00:01:48,320 --> 00:01:52,080 Speaker 3: add the price stickers to those packages as the last 36 00:01:52,120 --> 00:01:54,440 Speaker 3: step before they they're shipped off to the US, But 37 00:01:54,520 --> 00:01:57,360 Speaker 3: for the first time in more than ten years, Walmart 38 00:01:57,440 --> 00:02:00,440 Speaker 3: is asking the factory to leave the price stickers off 39 00:02:01,080 --> 00:02:04,440 Speaker 3: for all their items. This is reflecting the uncertainty around 40 00:02:04,680 --> 00:02:08,040 Speaker 3: the tariffs. Suppliers say well factories negotiated with their American 41 00:02:08,040 --> 00:02:10,480 Speaker 3: clients to share the costs of the earlier round of 42 00:02:10,520 --> 00:02:15,360 Speaker 3: tariff increases. The latest developments create a sense of powerlessness 43 00:02:15,360 --> 00:02:19,160 Speaker 3: on either side. Walmart declining to comment, but they had 44 00:02:19,160 --> 00:02:23,399 Speaker 3: the Analyst Day yesterday, and the CEO Doug McMillan said, 45 00:02:23,400 --> 00:02:25,760 Speaker 3: there are real time decisions. 46 00:02:25,760 --> 00:02:27,120 Speaker 2: I can't imagine. 47 00:02:26,840 --> 00:02:30,239 Speaker 3: That's being made on prices. The company hasn't. They haven't 48 00:02:30,520 --> 00:02:33,160 Speaker 3: so far canceled any orders at least, so they say. 49 00:02:33,120 --> 00:02:35,320 Speaker 2: Well, Jesse's over in the dust. Start saying there you 50 00:02:35,360 --> 00:02:37,960 Speaker 2: know the Amazon. They're they're like loading the boat here 51 00:02:38,000 --> 00:02:40,720 Speaker 2: on imports. And Paul, what we learned from Kuna Haik 52 00:02:41,280 --> 00:02:43,399 Speaker 2: is China can do all sorts of go to other 53 00:02:43,480 --> 00:02:44,239 Speaker 2: country things. 54 00:02:44,440 --> 00:02:46,920 Speaker 3: I don't, Yeah, but it seems like there are terriffs. 55 00:02:46,919 --> 00:02:48,960 Speaker 1: I guess you can go to a lower tariff, whether 56 00:02:48,960 --> 00:02:51,080 Speaker 1: it's Vietnam or something else and trying. 57 00:02:50,919 --> 00:02:51,720 Speaker 2: To mac product it. 58 00:02:52,000 --> 00:02:52,760 Speaker 3: Yeah, in Mexico. 59 00:02:52,840 --> 00:02:54,080 Speaker 1: So we'll see how it plays out. 60 00:02:53,840 --> 00:02:58,480 Speaker 2: As you say, Tom, companies adapt and we'll see how 61 00:02:58,480 --> 00:03:01,800 Speaker 2: they adapt going forward up to another selection within the 62 00:03:01,840 --> 00:03:05,600 Speaker 2: stock movis, Well, you mentioned Amazon, so let's do Andy Jassy. 63 00:03:05,639 --> 00:03:09,600 Speaker 3: It wasn't just JP Morgan and Jamie Diamond who put 64 00:03:09,600 --> 00:03:13,480 Speaker 3: out his annual letter. Jesse miss he and his annual 65 00:03:13,560 --> 00:03:17,320 Speaker 3: letter to shareholders. He says Amazon has to operate like 66 00:03:17,400 --> 00:03:21,639 Speaker 3: the world's largest startup as it works to meet demand 67 00:03:21,639 --> 00:03:27,480 Speaker 3: for artificial intelligence and cut bureaucracy in its ranks. Amazon, 68 00:03:27,560 --> 00:03:30,400 Speaker 3: like most of the large tech companies they met, heavily 69 00:03:30,440 --> 00:03:33,560 Speaker 3: on AI, committing about one hundred billion dollars in planned 70 00:03:33,560 --> 00:03:37,680 Speaker 3: capital expenditures this year. Most of that gear toward data 71 00:03:37,720 --> 00:03:42,640 Speaker 3: centers operated by Amazon Web Services, the largest seller of 72 00:03:42,760 --> 00:03:44,520 Speaker 3: rented computing power. 73 00:03:44,600 --> 00:03:48,360 Speaker 2: How many trucks do they have on Third Avenue at 74 00:03:48,360 --> 00:03:49,640 Speaker 2: any given moment. 75 00:03:49,760 --> 00:03:53,520 Speaker 3: Well, you know, especially when you're leaving twenty trucks they 76 00:03:53,920 --> 00:03:56,560 Speaker 3: I think somebody gave them the order to move to 77 00:03:56,640 --> 00:04:01,320 Speaker 3: the side streets because it's all better. It is, no, 78 00:04:01,400 --> 00:04:01,800 Speaker 3: it is. 79 00:04:01,720 --> 00:04:04,160 Speaker 2: So they're really back on seventy third Street with one 80 00:04:04,200 --> 00:04:04,880 Speaker 2: of those big. 81 00:04:04,720 --> 00:04:08,120 Speaker 3: Trucks right in front of your house. Hopefully I'll finish 82 00:04:08,200 --> 00:04:11,680 Speaker 3: up with US steel that was lower. President Trump said 83 00:04:11,680 --> 00:04:15,440 Speaker 3: he's against the proposed sale of US steel to Japan's 84 00:04:15,520 --> 00:04:18,960 Speaker 3: Nipon Steele. He was making these comments at a campaign event. 85 00:04:19,040 --> 00:04:21,480 Speaker 3: He said he we don't want to see it to 86 00:04:21,560 --> 00:04:22,120 Speaker 3: go to Japan. 87 00:04:23,320 --> 00:04:27,440 Speaker 1: The Stock Movers podcast from Bloomberg Radio. Check back with 88 00:04:27,520 --> 00:04:30,280 Speaker 1: us throughout the day for the latest roundup of companies 89 00:04:30,320 --> 00:04:33,360 Speaker 1: making news on Wall Street and for the latest market 90 00:04:33,400 --> 00:04:37,800 Speaker 1: moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube, 91 00:04:37,800 --> 00:04:41,080 Speaker 1: Bloomberg dot com, and on Applecarplay and Android Auto with 92 00:04:41,120 --> 00:04:42,599 Speaker 1: the Bloomberg Business app.