Speaker 1: Broadcasting live to New York, Bloomberg even to Washington, d C.
Speaker 1: Bloomber to Boston, Bloomberg twelve hundred to San Francisco, Bloomberg
Speaker 1: nine to the country and around the globe the Bloomberg
Speaker 1: Radio Plus Appen Bloomberg Dot Gone. This is taking stock Walmart.
Speaker 1: Walmart has ruled brick and mortar retail, but what about
Speaker 1: e commerce? It has spent billions to expand its online operations.
Speaker 1: Walmart has hired thousands of workers, open two offices in
Speaker 1: Silicon Valley, and it's built a large e commerce distribution center.
Speaker 1: And now it's buying Jet dot Com. Will that help
Speaker 1: Walmart in its battle against Amazon? That's next? Right now,
Speaker 1: Let's go to Charlie Pellett in the Bloomberg news room
Speaker 1: for Bloomberg Business. Flat man, I think of him Fox
Speaker 1: Amazon down one tenth of one percent, of Walmart down
Speaker 1: six tenths of one percent. Stocks are lower, pulling back
Speaker 1: from a record will changed and fluctuating. Right now, We've
Speaker 1: got the SMP five hundred index down four to seventy eight.
Speaker 1: To drop there of two tenths of one percent down,
Speaker 1: Industrials down thirty nine, a decline also of two tenths
Speaker 1: of one percent. The nastak Compositive Index down eighteen to
Speaker 1: fifty two oh to a drop of four tenths of
Speaker 1: one percent. A lot of concern the gains will be
Speaker 1: hard to extend as companies wrap up a fifth straight
Speaker 1: quarter of earnings declines. Schelle Meyer's head of US Economics
Speaker 1: at Bank of America Merrill Lynch, And on Bloomberg Television
Speaker 1: this morning, she was asked how the July jobs report
Speaker 1: might have altered her views about the September FED meeting.
Speaker 1: We didn't change our FED call. We've been in the
Speaker 1: December camp and I feel just as confident about that. UM.
Speaker 1: The labor market data has been clearly rebussed. On a
Speaker 1: six month moving average, we're running at just under hundred
Speaker 1: ninety thousand monthly job growth. That's quite strong. That's all
Speaker 1: bit better than what we were expecting. However, on the
Speaker 1: other side, the GDP numbers, I've looked a lot bit softer. UM.
Speaker 1: We've seen some weekending and I'm survey data as well.
Speaker 1: Steinhoff International Holdings European Acquisitions free has swept across the
Speaker 1: Atlantic as the South African retailer agreed to buy Mattress
Speaker 1: firm holding for about two point four billion dollars. That
Speaker 1: announcement sent the company's shares soaring. In the US, shares
Speaker 1: of Mattress Firm rallying one hundred four percent, up thirty
Speaker 1: three ninety seven to sixty three dollars and seventy two cents.
Speaker 1: Burger King's latest new items and latest item taking a
Speaker 1: stab at Chippolti Mexican grill as In introduces the waparrito. Now,
Speaker 1: let's take a look at some of the other stories
Speaker 1: making news. Thank you, Charlie from the Boomberg news room.
Speaker 1: I'm Raimi in aescentio. Donald Trump is focusing his economic
Speaker 1: message on boosting jobs and making America more competitive. In
Speaker 1: a speech today to the Detroit Economic Club, Trump said
Speaker 1: his proposals include reducing regulations, increasing energy production, and tax reform.
Speaker 1: I will have one overriding goal when it comes to regulation.
Speaker 1: I want jobs and I want wealth to stay in America.
Speaker 1: Hillary Clinton will deliver an address on the economy on Thursday.
Speaker 1: Dissatisfied Republicans now have an alternative to Donald Trump. Conservative
Speaker 1: Evan McMullen is running for president. He's a CIA veteran
Speaker 1: and former chief policy director of the House of Representatives,
Speaker 1: he tells ADC News quote. I humbly allfer myself as
Speaker 1: a leader who can give millions of disaffected Americans a
Speaker 1: conservative choice for presidents. Delta Airlines has canceled around four
Speaker 1: hundred fifty flights so far today after its computer systems
Speaker 1: crashed worldwide. Thousands of passengers have been stranded on a
Speaker 1: busy travel day. That number is likely to grow. More
Speaker 1: than a thousand flights were delayed, according to flight tracking
Speaker 1: site flight Stats. About eleven hours into the outage, limited
Speaker 1: flights had resumed, but widespread delays cancelations are ongoing, and
Speaker 1: the parents of a thirty year old woman found dead
Speaker 1: after she went for a run near her home in
Speaker 1: Howard Beach Queen's say they're counting on authorities to catch
Speaker 1: their daughter's killer. Karina Patronto's mother says the assailant must
Speaker 1: know the world is seeking justice. A ten thou dollar
Speaker 1: award is being offered for information leading to an arrest.
Speaker 1: Global News twenty four hours a day, powered by more
Speaker 1: than journalists and analysts in more than one twenty countries.
Speaker 1: I'm Ramie in Essensio. This is Bloomberg, Charlie, and we
Speaker 1: thank you, and again recapping Stock's lawre SMP five index
Speaker 1: down four to eight, a drop there of two tents
Speaker 1: of one percent. I'm Charlie Peloton. That's a Bloomberg business flash.
Speaker 1: This is taking Stock with Kathleen Hayes and Pimpox on
Speaker 1: Bloomberg Radio. Three point three billion dollars. Three point three
Speaker 1: billion dollars is the price that Walmart says it will
Speaker 1: pay for the e commerce startup Jet dot Com. Here
Speaker 1: to tell us more is strategic Jinder. He is the
Speaker 1: president of s J Consulting and he's got details, all right,
Speaker 1: So states, tell me a little bit about this deal
Speaker 1: from your perspective and maybe just give people a quick
Speaker 1: sentence about your background so they understand how you come
Speaker 1: to be an expert in this world of retail but
Speaker 1: also logistics. You know, we have worked in the space
Speaker 1: of transportation and logistics from the perspective of how it
Speaker 1: helps shippers, including retailers. UH, and we have many of
Speaker 1: them as our customers who are in brick and mortar
Speaker 1: and online retail. UH developed their distribution strategy to get
Speaker 1: the products either to the stores or get it into
Speaker 1: hands of the consumer. And there are two elements to
Speaker 1: e commerce success. One is having a good technology that
Speaker 1: helps people find that you're very use the friendly to
Speaker 1: buy online. But then the more expensive than the challenging
Speaker 1: part is getting those orders and getting them out through
Speaker 1: a good warehouse, distribution system and transportation network that gives
Speaker 1: the customers a wonderful experience in getting the right product
Speaker 1: on the right date, in right condition. Alright, So sate
Speaker 1: to the distribution systems that are used by companies like
Speaker 1: Walmart and Amazon, and you fill in the blank. Do
Speaker 1: they use one that is common or do they have
Speaker 1: very heterogeneous distribution systems? Are they really that different? So
Speaker 1: they're they're not very different in a very simple sense
Speaker 1: for the people are listening to this. The differences come
Speaker 1: in the way that the information gets received and processed
Speaker 1: to get into the hand of the people who are
Speaker 1: picking those items, and then getting it into the boxes,
Speaker 1: and then getting those boxes out of those buildings in
Speaker 1: the hands of the people who are gonna move them
Speaker 1: through the country, through the market or the city to
Speaker 1: get it in the hands of the person who has
Speaker 1: ordered it. Okay, that's the ordering and distribution sections. The
Speaker 1: technology piece that you described is that why Walmart is
Speaker 1: buying jet dot com. There is probably the only thing
Speaker 1: they could be getting from Jet dot com. And I've
Speaker 1: been paying attention and I even tested Jet dot com.
Speaker 1: Then I started getting promotional material for them. In my view,
Speaker 1: I am absolutely shocked that the board and the CEOs
Speaker 1: are falling for this. Buying Jet dot Com is Noway're
Speaker 1: going to help them compete with the Amazon. It is
Speaker 1: almost insulting to think that Jet dot com can compete
Speaker 1: with And why is that? Because Jet dot Com is
Speaker 1: like a baby going up against pim Fox. He can't walk,
Speaker 1: he can't talk. Jet dot com is nothing. But if
Speaker 1: they had to be five million for it to buy
Speaker 1: its technology a little bit, and maybe the name, the
Speaker 1: only thing they get from Jet dot com, the name
Speaker 1: that better than Walmart dot Com. But I can tell
Speaker 1: you they could have hired former FedEx executives who have
Speaker 1: done great job in branding a name, and they could
Speaker 1: have given them a better name for a few million
Speaker 1: dollars because Walmart dot com reminds the young teenagers and
Speaker 1: the millennium generation that after Grandpa's and they don't buy
Speaker 1: from Walmart dot com no matter how good the deal is.
Speaker 1: Walmart buying Jet dot Com has been described in the
Speaker 1: same paragraph as something called gain sharing. This is luring
Speaker 1: buyers to add items to their orders to cut the
Speaker 1: shipping costs and to pay with a debit card instead
Speaker 1: of a credit card to reduce transaction fees. Is that
Speaker 1: how you understand it as well? There is an element
Speaker 1: to it, but that is nothing, nothing complicated. Walmart, if
Speaker 1: with all the millions of dollars it paid to bring
Speaker 1: on companies like Deloitte Tush, that was one disaster a
Speaker 1: few years ago. And they've gone from one disaster of
Speaker 1: hiring wrong people to build their e common strategy to
Speaker 1: now buying jet dot com to think it is going
Speaker 1: to be a savior. It will go down pain in
Speaker 1: the history of online retail dot com businesses as the
Speaker 1: most expensive acquisition and the worst one. It was not
Speaker 1: even what I founded million. Why do you think Doug McMillan,
Speaker 1: the chief executive of Walmart, decided to go ahead and
Speaker 1: do this because the people in Bentonville, Walmart headquarters, have
Speaker 1: gotten desperate because their online retail sales are declining. The
Speaker 1: growth rate from being at twenty seven percent growth rate
Speaker 1: in first quarter of to being seven percent in the
Speaker 1: first quarter of sixteen. And they're in a panic mode
Speaker 1: and they are buying companies no matter what it is,
Speaker 1: just to show that they're trying to do something and
Speaker 1: they're actually doing the wrong thing. The board of directors
Speaker 1: of Walmart should stop the PI executives from closing on
Speaker 1: it until they get some fairness opinion, not some bankers
Speaker 1: who don't understand it, but from people who understand the
Speaker 1: core business that this is. And Walmart shares it down
Speaker 1: about a half a percent down even more such as
Speaker 1: a desperation acquisition. And Jet dot Com think about it,
Speaker 1: they were just valued at only one point three billion
Speaker 1: in November, and who else was gonna buy them? Giving
Speaker 1: them six months to a year, they would have run
Speaker 1: out of cash and there would have been nothing left
Speaker 1: for Jet dot Com. Certise Gender President s J Consulting Group,
Speaker 1: thank you very much giving us his thoughts on Walmart
Speaker 1: dot Com or Walmart buying Jet dot Com price tag
Speaker 1: three point three billion in satitious words, bad dollars. This
Speaker 1: is taking stock. I'm pim Fox. This is Bloomberg coming up.
Speaker 1: David Malpass. He has been named to Donald Trump's economic team.
Speaker 1: We're going to learn about taxes, trade, and government regulations.
Speaker 1: That's next,