1
00:00:03,279 --> 00:00:07,560
Speaker 1: Broadcasting live to New York Gloomberg eleventh old to Washington,

2
00:00:07,680 --> 00:00:12,680
Speaker 1: d C, Bloomberg to Boston, Bloomberg twelve hunders to San Francisco,

3
00:00:12,800 --> 00:00:15,520
Speaker 1: Bloomberg nine sixteen to the country. See when he is

4
00:00:15,560 --> 00:00:18,599
Speaker 1: at JAM channel one nineteen and around the globe the

5
00:00:18,640 --> 00:00:24,760
Speaker 1: Bloomberg Radio plus appen Bloomberg dot com. This is Bloomberg Surveillance. Hey,

6
00:00:24,760 --> 00:00:27,000
Speaker 1: good morning. I'm Karen Moscow along with Tom Keen and

7
00:00:27,080 --> 00:00:29,560
Speaker 1: Michael McKee. And the opening down brought to you by

8
00:00:29,600 --> 00:00:33,480
Speaker 1: s c I Imagine your asset management firms. Operational infrastructure

9
00:00:33,560 --> 00:00:36,479
Speaker 1: is a competitive advantage. Let see I show you how

10
00:00:36,720 --> 00:00:39,920
Speaker 1: at s C i C dot com slash imagine and

11
00:00:40,159 --> 00:00:42,720
Speaker 1: stocks they're little changed at the open. The SNP five

12
00:00:42,760 --> 00:00:46,080
Speaker 1: hundred at twenty fifties six now, Jones Industrial average down

13
00:00:46,120 --> 00:00:49,240
Speaker 1: fourteen points now to seventeen thousand, seven hundred twenty six.

14
00:00:49,320 --> 00:00:51,360
Speaker 1: That's still less than a tenth of upper cent. And

15
00:00:51,400 --> 00:00:54,960
Speaker 1: then NAZDAC little changed at thirty five ten year treasury

16
00:00:54,960 --> 00:00:57,760
Speaker 1: of four thirty seconds, the yield one point seven six percent,

17
00:00:57,840 --> 00:00:59,920
Speaker 1: the yield on the two year point seven one percent.

18
00:01:00,480 --> 00:01:03,200
Speaker 1: Now I'm ex crude oil down one or fifty three

19
00:01:03,200 --> 00:01:06,200
Speaker 1: cents to forty four eleven and barrel comes gold is

20
00:01:06,280 --> 00:01:08,960
Speaker 1: up or is down rather one point nine percent or

21
00:01:09,360 --> 00:01:13,400
Speaker 1: four dollars twenty cents at twelve snounced the euro at

22
00:01:13,400 --> 00:01:17,199
Speaker 1: all three again one oh eight point three three, Tom

23
00:01:17,240 --> 00:01:20,560
Speaker 1: and Mike Karen, thanks so much. It turned to the markets.

24
00:01:20,600 --> 00:01:23,000
Speaker 1: Of course, after jobs report, we look at the economy.

25
00:01:23,080 --> 00:01:27,479
Speaker 1: We look forward to Friday's retail numbers. Oliver Chen joining

26
00:01:27,560 --> 00:01:31,080
Speaker 1: us earlier. Dana Telsey not only brings an acute mind

27
00:01:31,120 --> 00:01:34,280
Speaker 1: on retail, but also the heritage of her family and

28
00:01:34,319 --> 00:01:37,320
Speaker 1: the mystery long ago of darkening the door of Bergdorf

29
00:01:37,520 --> 00:01:39,640
Speaker 1: when others did and her family was affiliated with a

30
00:01:39,720 --> 00:01:43,120
Speaker 1: company to say the least, Dana, good morning, good morning,

31
00:01:43,120 --> 00:01:44,720
Speaker 1: Thank you so much for having that. I look at

32
00:01:44,760 --> 00:01:48,520
Speaker 1: the rock stud Valentino butterfly and broadered tie tyed tote

33
00:01:48,560 --> 00:01:51,480
Speaker 1: bag at two thousand, eight hundred ninety five dollars. This

34
00:01:51,640 --> 00:01:55,600
Speaker 1: screams I need this in the Hampton's. Is luxury dead

35
00:01:55,800 --> 00:01:59,640
Speaker 1: or are we still buying luxury? It's still buying luxury,

36
00:01:59,680 --> 00:02:01,520
Speaker 1: but it's in a different mindset than it was in

37
00:02:01,520 --> 00:02:05,160
Speaker 1: the past. We have the issues of weak tourism. That's

38
00:02:05,200 --> 00:02:09,520
Speaker 1: definitely impacting the luxury goods sector in the US, along

39
00:02:09,560 --> 00:02:13,079
Speaker 1: with the fact of stock market volatility which is hampering

40
00:02:13,080 --> 00:02:16,400
Speaker 1: the wealth effect. And that's why product innovation like what

41
00:02:16,480 --> 00:02:21,040
Speaker 1: you mentioned with the Rock study, shoes and bags from Valentino,

42
00:02:21,200 --> 00:02:24,399
Speaker 1: or what's needed to drive interest and drive sales growth. Yeah,

43
00:02:24,400 --> 00:02:28,320
Speaker 1: they were needed this weekend. We didn't get there, unfortunately, Dana.

44
00:02:28,840 --> 00:02:31,600
Speaker 1: When I look at luxury, the simple answer to me,

45
00:02:31,720 --> 00:02:34,120
Speaker 1: given the challenges in what we see within the Telsea

46
00:02:34,160 --> 00:02:38,440
Speaker 1: Advisory Group reports, is put out less stuff? Is there

47
00:02:38,480 --> 00:02:44,280
Speaker 1: a responsibility and rigor among fashion to do less? I

48
00:02:44,320 --> 00:02:47,640
Speaker 1: think the responsibility of fashion right now is you can't

49
00:02:47,639 --> 00:02:50,200
Speaker 1: just do the same because if you're doing the same,

50
00:02:50,320 --> 00:02:53,160
Speaker 1: you're not going to drive consumer interest. You're not going

51
00:02:53,200 --> 00:02:55,840
Speaker 1: to be able to get that consumer in the door. So,

52
00:02:55,880 --> 00:02:59,560
Speaker 1: if anything, the ability to make what's old new again,

53
00:03:00,040 --> 00:03:02,880
Speaker 1: what is doing at the highest end, for example, with

54
00:03:03,000 --> 00:03:05,600
Speaker 1: the Fender, with the fenders of the world is driving

55
00:03:05,720 --> 00:03:08,200
Speaker 1: excitement and you need to bring that to the low

56
00:03:08,320 --> 00:03:11,040
Speaker 1: end and the masses in order to get them to spend.

57
00:03:11,400 --> 00:03:14,560
Speaker 1: Wage growth is there, but there's a lot to choose

58
00:03:14,600 --> 00:03:19,040
Speaker 1: from experience and services have a higher growth rate than goods.

59
00:03:19,520 --> 00:03:21,720
Speaker 1: I want to go back to a question I asked earlier,

60
00:03:22,480 --> 00:03:26,239
Speaker 1: are the young people millennials or whatever the new generation

61
00:03:26,440 --> 00:03:30,200
Speaker 1: is called. Are they buying less stuff or they just

62
00:03:30,240 --> 00:03:34,920
Speaker 1: buying less expensive stuff so they have money left over

63
00:03:35,000 --> 00:03:39,280
Speaker 1: for experiences. They're buying less expensive stuff. There's so much

64
00:03:39,320 --> 00:03:42,160
Speaker 1: better choice for cheap today than there was in the past,

65
00:03:42,480 --> 00:03:44,800
Speaker 1: whether it's from H and M, from Indo, texts, from

66
00:03:44,800 --> 00:03:48,120
Speaker 1: Prime Mark, whether it's what you can find online. They're

67
00:03:48,160 --> 00:03:52,680
Speaker 1: looking to have experiences and there's there now in greater

68
00:03:52,800 --> 00:03:56,560
Speaker 1: number than their parents. And the other interesting thing with millennials,

69
00:03:56,640 --> 00:03:59,680
Speaker 1: millennials are going to inherit the most wealth. We've done

70
00:03:59,680 --> 00:04:03,760
Speaker 1: a big report on millennials and basically millennials are going

71
00:04:03,800 --> 00:04:07,320
Speaker 1: to inherit thirty trillion dollars from their parents over the

72
00:04:07,360 --> 00:04:10,000
Speaker 1: next two is the next over by two thousand thirty

73
00:04:10,040 --> 00:04:13,920
Speaker 1: five compared to the twelve trillion dollars that Baby boomers inherited.

74
00:04:14,320 --> 00:04:18,039
Speaker 1: They've got money, not not from me, who does the

75
00:04:18,080 --> 00:04:22,560
Speaker 1: best in that in that it is that discount but

76
00:04:22,640 --> 00:04:26,599
Speaker 1: cheap fashion space. I think you're seeing certainly the into

77
00:04:26,640 --> 00:04:29,479
Speaker 1: taxas and the H and ms do very well in

78
00:04:29,520 --> 00:04:32,599
Speaker 1: the fast fashion space, and they're expanding more aggressively in

79
00:04:32,600 --> 00:04:37,000
Speaker 1: the United States, Dana, I mentioned the Valentino bag, and

80
00:04:37,040 --> 00:04:38,960
Speaker 1: I guess you trooped down to burg Door for name

81
00:04:39,040 --> 00:04:40,800
Speaker 1: the other store, and you buy the thing if you

82
00:04:40,880 --> 00:04:43,760
Speaker 1: have to. You know, I went to Corey Johnson Corey

83
00:04:43,760 --> 00:04:46,760
Speaker 1: sits where I said, folks for his wonderful show after ours,

84
00:04:46,800 --> 00:04:49,800
Speaker 1: And of course Corey's Amazon account is cued up. Corey's

85
00:04:49,839 --> 00:04:53,960
Speaker 1: looking Dana at the Valentino woman's black leather tote for

86
00:04:54,080 --> 00:04:58,240
Speaker 1: two thousand, four hundred off Amazon. Am I gonna buy

87
00:04:58,520 --> 00:05:02,839
Speaker 1: a bag for two thousand four dollars off Amazon Fashion.

88
00:05:03,800 --> 00:05:06,760
Speaker 1: I think we're seeing more luxury goods. Companies work to

89
00:05:06,800 --> 00:05:10,960
Speaker 1: integrate technology and the customer. I think online it's not

90
00:05:11,040 --> 00:05:13,600
Speaker 1: a question of either or it's a question of both.

91
00:05:13,960 --> 00:05:17,320
Speaker 1: So yes, I think consumers are spending more dollars at

92
00:05:17,400 --> 00:05:19,880
Speaker 1: higher tickets and online. And part of that is the

93
00:05:19,920 --> 00:05:22,799
Speaker 1: iPhone has a bigger screen. So how do you advise

94
00:05:22,920 --> 00:05:27,200
Speaker 1: investment given the chit chat we've just talked about, I mean,

95
00:05:27,480 --> 00:05:30,440
Speaker 1: do you have a single best buy or a category

96
00:05:30,920 --> 00:05:33,520
Speaker 1: that tells the advisory group things is attractive in this

97
00:05:34,200 --> 00:05:37,200
Speaker 1: uh and then this mess we're in. Certainly think we're

98
00:05:37,200 --> 00:05:40,760
Speaker 1: continuing to see strength and cosmetics. Look how selfies now

99
00:05:40,800 --> 00:05:43,000
Speaker 1: are so important and you have to look better when

100
00:05:43,000 --> 00:05:46,320
Speaker 1: you're taking a selfie. So I was thinking that the

101
00:05:46,360 --> 00:05:50,599
Speaker 1: other day selfie with Michael McKay, so s day Lauder

102
00:05:50,720 --> 00:05:55,440
Speaker 1: Alta are very attractive. We think that activewear isn't going away.

103
00:05:55,880 --> 00:05:58,719
Speaker 1: The strength of active where, whether it's a Nike or

104
00:05:58,720 --> 00:06:00,720
Speaker 1: whether it's an under Arm or or whether it's in

105
00:06:00,800 --> 00:06:04,680
Speaker 1: Lulu Lemon. Consumers are consolidating their wardrobes and what you

106
00:06:04,720 --> 00:06:07,200
Speaker 1: wear on the weekends, you wear to the office. So

107
00:06:07,480 --> 00:06:11,960
Speaker 1: active where certainly plays in that space. So Michael cores

108
00:06:12,040 --> 00:06:15,479
Speaker 1: fifty to a hundred, back down to fifty. Is that

109
00:06:15,560 --> 00:06:18,719
Speaker 1: an opportunity for Dana Telsey or is that trouble ahead?

110
00:06:19,360 --> 00:06:24,000
Speaker 1: It's an opportunity. Handbags are stabilizing. We've seen improved results

111
00:06:24,040 --> 00:06:26,560
Speaker 1: out of Kate's Spade and out of Coach, and we'll

112
00:06:26,600 --> 00:06:28,880
Speaker 1: first get Corps results at the end of the month.

113
00:06:29,560 --> 00:06:32,000
Speaker 1: You're the second one today to mention coach. What's coach?

114
00:06:32,080 --> 00:06:35,080
Speaker 1: Coach made little red belts years ago? How is Coach

115
00:06:35,200 --> 00:06:39,360
Speaker 1: becoming the new coach? Reinventing itself? They got a new designer,

116
00:06:39,400 --> 00:06:41,960
Speaker 1: they're putting in new products. They're becoming a bit more

117
00:06:42,000 --> 00:06:46,200
Speaker 1: fashionable while still having credibility in the outlet space. One

118
00:06:46,240 --> 00:06:48,320
Speaker 1: of the newest things you're gonna see with handbags in

119
00:06:48,320 --> 00:06:51,320
Speaker 1: the fall selling season. Take a look at Bendy. You're

120
00:06:51,320 --> 00:06:53,520
Speaker 1: gonna have the base of the bag, but everyone's gonna

121
00:06:53,520 --> 00:06:57,120
Speaker 1: buy different handbags straps to mix, mix and match. That

122
00:06:57,279 --> 00:07:01,320
Speaker 1: becomes new. Thank you, Dane. Yeah, I hope the sainted

123
00:07:01,400 --> 00:07:04,800
Speaker 1: ones not listen to that. Say that again. We're gonna

124
00:07:04,839 --> 00:07:08,520
Speaker 1: buy and then we have multiple straps to go with

125
00:07:08,560 --> 00:07:11,640
Speaker 1: our bag. Yep. It can be embroidered and ballast, it

126
00:07:11,680 --> 00:07:13,600
Speaker 1: can be solid, you name it. It will be new

127
00:07:13,640 --> 00:07:17,360
Speaker 1: and different. Yeah, sudden my checking account, Mike, save me here.

128
00:07:18,640 --> 00:07:20,960
Speaker 1: How often does fashion turn over these days as fast

129
00:07:21,000 --> 00:07:23,560
Speaker 1: as it used to? No, it seems like a little

130
00:07:23,560 --> 00:07:25,720
Speaker 1: bit less and part of the reason why you don't

131
00:07:25,720 --> 00:07:28,440
Speaker 1: have separations. You don't have where to work, where on

132
00:07:28,480 --> 00:07:30,840
Speaker 1: the weekend, where to the gym, or where to a party?

133
00:07:30,920 --> 00:07:33,400
Speaker 1: Now it's where to a party and everything else is

134
00:07:33,440 --> 00:07:37,840
Speaker 1: all combined, and so the ability to move fashion you

135
00:07:37,880 --> 00:07:41,240
Speaker 1: have to really give that consumer, whether it's tops, bottoms,

136
00:07:41,280 --> 00:07:44,640
Speaker 1: or accessories, find something new to give them. And lately,

137
00:07:44,680 --> 00:07:47,760
Speaker 1: what's been changing his shoes. We've seen the most change

138
00:07:47,760 --> 00:07:51,960
Speaker 1: and shoes go to any footwear department, and whether it's sandals,

139
00:07:52,280 --> 00:07:56,000
Speaker 1: words heels, whether it's boots or even open toe booties

140
00:07:56,000 --> 00:07:58,480
Speaker 1: for the summer. That's where the news. We're gonna come

141
00:07:58,520 --> 00:08:01,160
Speaker 1: back and talk open toe booties, Dana very quickly, here's

142
00:08:01,200 --> 00:08:03,880
Speaker 1: Coach Vintage selling their selling their old look from a

143
00:08:03,920 --> 00:08:07,240
Speaker 1: million years ago when they changed leather in America's Coach

144
00:08:07,320 --> 00:08:12,600
Speaker 1: Vintage work. It is selling fascinating. Dana Telsey tell us

145
00:08:12,600 --> 00:08:14,520
Speaker 1: the advisory group with us, we'll come back and talk

146
00:08:14,560 --> 00:08:19,440
Speaker 1: about open toad booties. Mike, what I was gonna say

147
00:08:19,480 --> 00:08:22,120
Speaker 1: the same thing. It is joy to talk to Dana.

148
00:08:24,400 --> 00:08:27,560
Speaker 1: She is so wired into the silliness of all this

149
00:08:27,720 --> 00:08:30,960
Speaker 1: and the seriousness of it with her decades of work.

150
00:08:31,040 --> 00:08:33,400
Speaker 1: She's really wonderful. And we'll come back and seriously talk

151
00:08:33,440 --> 00:08:40,760
Speaker 1: about boots. And yeah, Dana wasn't around for that song, unfortunately,

152
00:08:40,760 --> 00:08:45,080
Speaker 1: I was. Nancy Sinatra h green on the screen now

153
00:08:45,160 --> 00:08:47,480
Speaker 1: is might mentioned earlier? The markets can't figure out what

154
00:08:47,520 --> 00:08:50,600
Speaker 1: to do. It was green Futures, Red futures right now

155
00:08:50,840 --> 00:08:53,920
Speaker 1: fifteen SPF. I found it up for actually the vix

156
00:08:54,520 --> 00:08:55,959
Speaker 1: I'm not gonna call it do any much sort of

157
00:08:56,000 --> 00:09:00,319
Speaker 1: what you'd see Monday after a job's day, I will say, yields. Men,

158
00:09:00,720 --> 00:09:03,960
Speaker 1: I'm watching a two year particularly to four digits points

159
00:09:04,000 --> 00:09:09,080
Speaker 1: seven one four zero in two basis points that bears

160
00:09:09,120 --> 00:09:18,480
Speaker 1: careful watching the young weaker. The time not to check

161
00:09:18,520 --> 00:09:20,760
Speaker 1: in with Michael Mayer and get the latest world at

162
00:09:20,840 --> 00:09:23,880
Speaker 1: National Headlines. Mike Tom, thank you very much about eighty

163
00:09:24,000 --> 00:09:28,760
Speaker 1: thousand residents of Fort McMurray and Alberta, Canada, hoping that

164
00:09:28,840 --> 00:09:32,400
Speaker 1: cooler temperatures and light rain will help firefighters get the

165
00:09:32,440 --> 00:09:35,320
Speaker 1: upper hand on the wildfire that has already scorched about

166
00:09:35,440 --> 00:09:38,640
Speaker 1: four hundred thousand acres. If this will say about six

167
00:09:39,240 --> 00:09:42,360
Speaker 1: homes and other buildings have been destroyed. The latest effort

168
00:09:42,400 --> 00:09:45,319
Speaker 1: to relaunch the Syrian peace process is taking place today

169
00:09:45,320 --> 00:09:48,440
Speaker 1: in Paris. US Secretary of State John Kerry is on

170
00:09:48,520 --> 00:09:51,200
Speaker 1: hand for the talks and a meeting with Frances Foreign Minister.

171
00:09:51,640 --> 00:09:55,559
Speaker 1: Representatives of other countries, including Britain, Germany, Saudi Arabia and

172
00:09:55,800 --> 00:09:58,800
Speaker 1: the EU have also been invited for a meeting in

173
00:09:58,840 --> 00:10:02,320
Speaker 1: the presidents of the head of the Western back Syrian

174
00:10:02,320 --> 00:10:07,160
Speaker 1: opposition coalition, Mercury is making a rare move across the Sun.

175
00:10:07,280 --> 00:10:10,720
Speaker 1: Now from now until about two thirty Eastern time, you

176
00:10:10,720 --> 00:10:13,800
Speaker 1: can see the event, and you will need special binoculars

177
00:10:13,920 --> 00:10:17,200
Speaker 1: or telescopes to view it. Just as Tom said earlier,

178
00:10:17,280 --> 00:10:21,000
Speaker 1: NASA's Stephen Reynard says Mercury's journey helps scientists learn more

179
00:10:21,000 --> 00:10:24,200
Speaker 1: about Earth. We're learning about the weather on the Sun,

180
00:10:24,720 --> 00:10:27,840
Speaker 1: and that weather actually has an opportunity to have an

181
00:10:27,840 --> 00:10:29,800
Speaker 1: effect on us here on Earth. So it's it's nice

182
00:10:29,800 --> 00:10:32,640
Speaker 1: to understand how our sun behaves so that we can

183
00:10:32,720 --> 00:10:34,480
Speaker 1: understand its effect on us. In the long term. The

184
00:10:34,480 --> 00:10:36,440
Speaker 1: event will happen again in three years, and then after

185
00:10:36,480 --> 00:10:41,559
Speaker 1: that it won't take place until the year two. We'll

186
00:10:41,559 --> 00:10:43,320
Speaker 1: be here. We'll be here, we can see it, but

187
00:10:43,520 --> 00:10:46,520
Speaker 1: get the special bleoculars and telescopes that you mentioned, so

188
00:10:47,440 --> 00:10:49,440
Speaker 1: I want to see it. I'm glad you mentioned, Michael

189
00:10:49,440 --> 00:10:51,560
Speaker 1: bar very seriously, folks, don't look at the sun even

190
00:10:51,640 --> 00:10:54,480
Speaker 1: for a few seconds. Canna cause damage to your retina.

191
00:10:54,559 --> 00:10:57,680
Speaker 1: That of course very important. Michael Barr, thank you. This

192
00:10:57,760 --> 00:11:02,840
Speaker 1: is Bloomberg's surveillance Bloomberg Shavunds brought to by Tito Computing,

193
00:11:02,840 --> 00:11:04,920
Speaker 1: a new kind of I t solutions company for workflow,

194
00:11:04,960 --> 00:11:08,080
Speaker 1: mobility and infrastructure. Let them explain how their expertise can

195
00:11:08,120 --> 00:11:10,880
Speaker 1: help you gain greater business value. Visit Tito computing dot

196
00:11:10,960 --> 00:11:12,079
Speaker 1: com for more promotion