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Speaker 1: Broadcasting live to New York, Bloomberg eleven Rio to Washington,

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Speaker 1: d C. Bloomberg to Boston, Bloomberg twelve hundred to San Francisco,

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Speaker 1: Bloomberg to the country, US exam General one, and around

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Speaker 1: the globe the Bloomberg Radio, Plowstappen, Bloomberg dot Com. This

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Speaker 1: is taking Stock. I'm Kathleen Hayes along with PM Fox

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Speaker 1: on the road again, broadcasting live from the Kmton Morrison

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Speaker 1: House Hotel in Alexandria, Virginia, the Washington metro area home

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Speaker 1: of Bloomberg One. Taking a look now, pim at retail.

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Speaker 1: You know what, no matter where you are, you can

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Speaker 1: go online and buy stuff. I wonder what it means

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Speaker 1: for brick and mortar people here in Alexandria. Yes, well,

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Speaker 1: and we know what it means for a lot of

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Speaker 1: retailers such as Macy's as well as Nordstrom's after learning

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Speaker 1: about their quarterly results that we'll be speaking with Christian Magoon.

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Speaker 1: He's the chief executive and the founder of Amplify Investments,

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Speaker 1: about a new et. Fit's got online retail All right,

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Speaker 1: right now, let's got Charlie Pelletan the Bloomberg News and

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Speaker 1: for Bloomberg Business FLA and I thank you Tim, Thank

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Speaker 1: you Kathleen. Stocks aren't trading at the worst level of

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Speaker 1: the day. This update brought to you by Pershing's Insight

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Speaker 1: sixteen conference, a must attend for advisers June seventh through

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Speaker 1: the ninth in Orlando, Florida. Register at Insight dot com.

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Speaker 1: That is I N S, I T E twenty six

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Speaker 1: dot com. Two regional Fed bank presidents say at least

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Speaker 1: two interest rate increases may be warranted this year because

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Speaker 1: the economy continues to expand and inflation is picking up,

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Speaker 1: pushing back against expectations the Central Bank will delay action

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Speaker 1: next month. Federal Reserve Bank of Atlanta President Dennis Lockhart

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Speaker 1: says his assumption is to possibly three moves this year.

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Speaker 1: He was joined at the Politico hosted event by San

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Speaker 1: Francisco Fed colleague John Williams, who said, quote gradual means

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Speaker 1: two to three rate increases this year. Torsten sloss Block

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Speaker 1: is chief international economist at Deutsche Bank. He was interviewed

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Speaker 1: this morning on Bloomberg Television. One very important driver of

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Speaker 1: rates is the economy. So if inflation goes up, rates

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Speaker 1: go Upflasing go down as rates go down, but in

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Speaker 1: this globalized world, with fifty percent of treasuries held by

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Speaker 1: foreigners and fifty percent held domistically, those foreigners are actually

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Speaker 1: really important. So that's why both private foreigners and central

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Speaker 1: banks have brought a very important drivers. And the supply

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Speaker 1: in the US off treasuries has actually been declining quite

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Speaker 1: substantially over the last sevil year. Right now, we've got

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Speaker 1: the down down two hundred and four points, a drop

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Speaker 1: of one p SMP down twenty two, a drop of

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Speaker 1: one point one percent, gold up four tenths of one

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Speaker 1: percent to twelve seventy eight. Right now it is twelve two. Charlie,

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Speaker 1: thank you from the Bloomberg news room. On Mark Crumpton,

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Speaker 1: how Speaker Paul Ryan is reacting to a new poll

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Speaker 1: that shows more Republican voters trust Donald Trump to lead

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Speaker 1: the GOP than the speaker room. So he's wrapping up

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Speaker 1: the nomination. Good Lord, I hope it is because the

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Speaker 1: person who is getting the nomination of our party is

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Speaker 1: the person to lead our party. The chairman of the

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Speaker 1: National Transportation Safety Board testified today about last year's deadly

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Speaker 1: Amtrak crash in Philadelphia. Christopher Heart says speed controls on

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Speaker 1: the tracks would have provided a safety night. If a

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Speaker 1: PTC system had been active there, this train would not

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Speaker 1: have derailed on the curve. Close to two hundred passengers

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Speaker 1: would not have been injured, and eight other passengers would

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Speaker 1: still be alive. Today, the crash killed a people. The

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Speaker 1: debate about funding the US fight against Zekea continues. House

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Speaker 1: Republicans have proposed spending about six twenty two million dollars

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Speaker 1: to fight the spread of zeka in the US. It's

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Speaker 1: only about a third of the one point nine billion

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Speaker 1: dollars requested by President Obama. The House version would be

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Speaker 1: financed by cutts to unspent funding passed to battle a

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Speaker 1: bowl up. Florida Congresswoman Debbie Wasserman Schultz is calling on

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Speaker 1: Congress to approve President Obama's proposal. This is such an

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Speaker 1: urgent issue that Governor Scott, Senator Rubio, President Obbama, and

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Speaker 1: myself agree agree on it. The House could vote on

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Speaker 1: their funding measure this week. Michael Barr Bloomberg Radio of

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Speaker 1: Federal Appeals Court is delaying the release of a list

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Speaker 1: of co conspirators in the thirteen George Washington Bridge Lane

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Speaker 1: closing scandal. The ruling calls for a June sixth hearing

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Speaker 1: to decide whether to release the list. Global news twenty

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Speaker 1: four hours a day, powered by our two hundred journalists

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Speaker 1: and more than one hundred fifty news bureaus around the

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Speaker 1: world from the Bloomberg News Room by Mark Crumpton, Charlie

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Speaker 1: and we thank you. And at two thirty four on

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Speaker 1: the East coast, still thirty four on the West coast,

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Speaker 1: we are brought to you by s E I imagine

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Speaker 1: your asset management firms operational infrastructure as a competitive advantage.

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Speaker 1: Let see I show you how at se i C

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Speaker 1: dot com slash imagine again the dowdown two oh nine,

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Speaker 1: SMP down twenty three. That is a drop of one percent.

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Speaker 1: I'm Charlie Palette. That's a Bloomberg Business flash bus. He's

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Speaker 1: taking stoff with Kathleen Hayes and Pim Box on Bloomberg Radio,

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Speaker 1: continuing our line broadcast here at the Kenton Morrison House

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Speaker 1: Hotel in Alexandria, Virginia. We're in the Washington metro area

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Speaker 1: of the nation's capital, home of Bloomberg one. No matter

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Speaker 1: where you are, retail is certainly a big question right

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Speaker 1: now for investors and for the markets. Some news out

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Speaker 1: on e commerce sales. They were up eleven year over

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Speaker 1: year last month. Sounds good and it is, except it's

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Speaker 1: the lowest rate of recorded so far this year. Following

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Speaker 1: a tough month broadly for retails retailers, which we saw

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Speaker 1: in the government's retail sales last week. We're gonna put

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Speaker 1: a focus now on e commerce as we introduced our

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Speaker 1: next guest, Christian Magoon. He's CEO of Amplify Investments. He's

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Speaker 1: got a new e t F and he's got a

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Speaker 1: lot to tell us about what's going on with online commerce.

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Speaker 1: Welcome to the show, Christian, Thanks appreciate you. So how

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Speaker 1: did you? First of all, let's talk about e commerce

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Speaker 1: and uh, your new e t F. It's it's unique

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Speaker 1: and it gives people a chance to invest in e

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Speaker 1: commerce plays, which you can't do with a lot of

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Speaker 1: retail sales e t f s. That's right. We saw

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Speaker 1: an opportunity. Online sales are growing at a pretty a

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Speaker 1: significant rate in the U s and and globally, and

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Speaker 1: there wasn't an e t F that really focused on

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Speaker 1: companies that had a majority of their revenue coming from

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Speaker 1: online retail sales. So we launched I Buy to take

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Speaker 1: advantage of that. A company has to have sevent or

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Speaker 1: more of their revenue from online retail sales to be

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Speaker 1: in the index and thus in the e t F.

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Speaker 1: Give us a little bit of your own history, because

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Speaker 1: you have been an expert and a industry creator in

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Speaker 1: exchange traded funds. Christian. Yeah, thanks, Pim. I've been doing, uh,

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Speaker 1: been launching et F since two thousand five. I've launched

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Speaker 1: over six the e t F in the United States,

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Speaker 1: many of them first to market products, first solar et F,

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Speaker 1: the first brick ETF. Uh. This is kind of in

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Speaker 1: that same line, launching the first online retail ETF, trying

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Speaker 1: to access a unique market segment that's complementary to the

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Speaker 1: existing e t F selection that is out there. So

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Speaker 1: I'm not all about I'm launching e t s for

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Speaker 1: et F sake. We have to provide new market segments

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Speaker 1: and exposure, and that's what I Buy did in our opinion.

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Speaker 1: So e commerce is has certainly grown rapidly, uh, And

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Speaker 1: it's happening in environment where the traditional brick and mortar

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Speaker 1: retail part of this was already very overstored, right, and

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Speaker 1: people are already kind of wondering where we're kind of

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Speaker 1: fall up there would be we're seeing a lot of

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Speaker 1: retail bankruptcies this year. How do you how do you

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Speaker 1: measure e commerce and what do you look for when

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Speaker 1: you go to put a company in one of your

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Speaker 1: e t s. But this one in particular, your I

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Speaker 1: buy Yes, so UM I buy as an index based

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Speaker 1: e t F. It seeks to track before fees and expenses,

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Speaker 1: the e q M Online Retail Index. So the index

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Speaker 1: provider actually has to go into all the retail companies

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Speaker 1: really globally that meet a minimum market cap and trading

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Speaker 1: volume history and then go into their balance sheets and

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Speaker 1: determine the percentage of revenue they receive from online retail sales.

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Speaker 1: And the benchmark that they've created is a company must

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Speaker 1: have seventy or more of their sales coming from online

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Speaker 1: retail to be me and the index. So that involves

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Speaker 1: a fair amount of going into company financials. It's not

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Speaker 1: like we're just buying the fifty largest market cap companies

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Speaker 1: in that space UM and we feel like that's an

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Speaker 1: item of value to investors. What's interesting is you see

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Speaker 1: about forty three companies actually qualified globally UM, majority of

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Speaker 1: them in the US UM Under those criteria. Christian, let

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Speaker 1: me just throw a couple of names at you just

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Speaker 1: maybe you can expand on the concept so that we

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Speaker 1: understand the strategies that are so diverse in the online

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Speaker 1: retailer and retail space uh EPs, blue Nile, over Stock,

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Speaker 1: dot Com, grub Hub, uh H s N, price Line,

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Speaker 1: shutter Flow, eBay, Expedia, Netflix, tell us about how they

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Speaker 1: all come together Amazon. Right, So there's really three types

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Speaker 1: of companies in the e t F PIM. The largest

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Speaker 1: allocation is traditional retailers. It's about six of the e

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Speaker 1: t F and these are companies like pet meds, UM,

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Speaker 1: companies like lands and that are doing again seventy or

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Speaker 1: more of their sales from through an online channel. The

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Speaker 1: second largest waiting is UM online marketplace companies, and these

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Speaker 1: are companies that really create a place for you to

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Speaker 1: buy and sales, so think of eBay, think of etc.

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Speaker 1: For example. And then the final area is online travel. Expedia,

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Speaker 1: trip Advisor are are great examples. Priceline again, UM companies

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Speaker 1: that are providing travel services UM in UM receiving the

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Speaker 1: majority of their sales from online. So you get a

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Speaker 1: diverse group of companies UH in these three different market

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Speaker 1: segments and then about seventy US exposure outside the US.

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Speaker 1: So what is your bet on online retail? Has it? Uh?

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Speaker 1: Is it starting to plateau? I mean I still buy

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Speaker 1: most everything in stores. I may never change much my

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Speaker 1: daughter buys more online? Uh? Or or do you think

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Speaker 1: this continues to grow? This play out? Yeah, that's a

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Speaker 1: great question, Kathleen. Currently, even though a lot of people

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Speaker 1: are familiar with online retail sales, it's only seven and

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Speaker 1: a half percent of US total total US retail sales.

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Speaker 1: So we think they're um this, This has room to

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Speaker 1: maybe double or triple over the next four or five years,

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Speaker 1: and we've seen research that supports that. So I think

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Speaker 1: it continues to grow dramatically. Christian, will you come back

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Speaker 1: and spend time with us some time in the future,

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Speaker 1: because I'd love to talk to you about social media

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Speaker 1: and what you're doing there were you absolutely him? Christian Magoon.

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Speaker 1: He's the chief executive founder Amplify in Investments, UH, Colorado

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Speaker 1: springs at Colorado. His Twitter handle at Christian Magoon. You're

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Speaker 1: listening to taking Stock on Bluebirg Radio Bloomberg. Taking Stock

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