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Speaker 1: Broadcasting live to New York, Gloomberg to Washington, d C,

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Speaker 1: Bloomber to Boston, Bloomberg dwellers to San Francisco, Bloomberg to

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Speaker 1: the Country Sea Channel one, and around the globe the

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Speaker 1: Bloomberg Radio bus an Bloomberg dot Com. This is Bloomberg Surveillance.

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Speaker 1: Good morning eight thirty on Wall Street. Michael McKee along

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Speaker 1: with Tom Keene. Economic indicators brought to you by Commonwealth

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Speaker 1: Financial Network. When it's time to change the conversation, talk

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Speaker 1: with a broker dealer r I A that's ready to

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Speaker 1: listen call eight six six four six two eight or

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Speaker 1: is it Commonwealth dot com to learn more? A boatload

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Speaker 1: of economic indicators out. Let's go to Vidi Dell judas

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Speaker 1: our captain for this cruise. Okay, Michael, Let's look at

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Speaker 1: retail sales. A surprise of big surprise and increase of

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Speaker 1: one point three percent and April top in Wall Street forecast.

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Speaker 1: Now the exclude autos and gasoline. Mindy, gasoline prices have

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Speaker 1: been back up and increase the point six first and

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Speaker 1: still respectable, still more than Wall Street forecast. Inflation. The

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Speaker 1: producer price index up point two percent in April. That

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Speaker 1: followed at the client the prior month. Again the headline

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Speaker 1: the big story. Retail sales April up one point three percent,

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Speaker 1: topping forecast, reversing at decline at the Bloomberg first Word desk, Compel, Judice,

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Speaker 1: let's go back to me in my comedia dollar strength

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Speaker 1: yon week or got a one eighteen onion d X

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Speaker 1: y nine yield. Market doesn't move all that much, but

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Speaker 1: definitely a lift feel off that revision. Something to look at.

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Speaker 1: Um the retail sales Control Group, which is the part

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Speaker 1: that goes into the VP. Everybody watches the Cogniscenty watch

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Speaker 1: up nine tenths. The forecast was for a four tenths

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Speaker 1: with a revision improved better with a revision improvement as well.

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Speaker 1: Howard Divinomitz is the man. He studies the retailers, and

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Speaker 1: he comes on Bloomberg and he gives us unvarnished opinions

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Speaker 1: about how we're doing. Howard, many times you have come on,

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Speaker 1: and as Tom said, you have suggested that hil is

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Speaker 1: U in the crap up. But today it doesn't look

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Speaker 1: like it. Well, it sure looks like it when you

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Speaker 1: go down company by company. I don't know what number

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Speaker 1: I mean. When you look at a company like Macy's

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Speaker 1: and collapse. Cole's terrible, Nords, Droum bad, Walmart is bad.

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Speaker 1: I mean, I don't know what you're looking at. But

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Speaker 1: if you go down every Pacific sunwhere in bankruptcy, I mean, uh,

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Speaker 1: sports authority, when bus the liquid that, when you go

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Speaker 1: down all of the companies, find me a good one.

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Speaker 1: I mean, that's your job. Can't find that. Department stores

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Speaker 1: were up three tenths of a percent, and people were

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Speaker 1: saying that was gonna be the one area that was

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Speaker 1: bad because of all these retailers. You're talking about the

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Speaker 1: general merchandise and department stores. Somebody's got to be making

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Speaker 1: money if all the numbers and nuts. Look, it's impossible

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Speaker 1: if you go down every single department store, but do

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Speaker 1: one of them. She is norths from Macie's. If you

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Speaker 1: got Bond, if you look at Dillard's, if you look

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Speaker 1: at every department store in America, coals, they're all bad.

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Speaker 1: Now they say the numbers of department stores are up, Hello,

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Speaker 1: I mean they're nuts. Every department store, every department store

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Speaker 1: is down. Everybody's closing stores. This is the reaction. Okay,

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Speaker 1: The reality, Howard is beautiful things updated daily. Amazon is

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Speaker 1: getting serious? Is this about economic slowdown or is the

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Speaker 1: Amazon finally clicked in. Well, it's a combination of everything.

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Speaker 1: We're in a massive we have we're in a no

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Speaker 1: growth economy. This we know we're in a no growth economy.

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Speaker 1: And there is no question that Amazon is the Walmart

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Speaker 1: of today. We used to have the top hundred discounters

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Speaker 1: in sam Walton killed every single one of them except Target,

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Speaker 1: mote them down. Now we have Amazon, and they're gonna

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Speaker 1: mow down a lot and they are not mowing down

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Speaker 1: lots of people, and this is going to continue for

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Speaker 1: them of fifteen years. That's where we are now. Well,

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Speaker 1: the big number outside of gasoline and cars was non

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Speaker 1: store retailers. It's a difficult number to part because it

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Speaker 1: includes catalogs and door to door salesman and it also

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Speaker 1: separates out some of the retailers from their websites. But

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Speaker 1: in it does suggest that people are buying, They're just

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Speaker 1: not going to bricks and mortar stores. Well, the people

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Speaker 1: are buying, let's I don't. When the province stores report

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Speaker 1: their sales, that includes online sales. The biggest investment in

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Speaker 1: the last five years has been an online sale Nordstromcy's,

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Speaker 1: They've invested a fortune. They're doing online. The gap is

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Speaker 1: doing online sales. The gaps number that's terrible. So when

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Speaker 1: these companies put out there sales, it includes everything, it

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Speaker 1: includes their online So every one of them are down,

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Speaker 1: including their online powered in the time that we've got

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Speaker 1: left and people have great esteem. We love your passion,

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Speaker 1: your energy, but what people really like is your experience.

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Speaker 1: You've been doing this for a few years. Mr Londrin

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Speaker 1: has seen this before. He's enjoying a fifty five drop

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Speaker 1: in his share price. What is your prescription for the

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Speaker 1: good house of Macy's, Well, I like long Run's prescription. Uh.

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Speaker 1: He acquired Blue Mercury, the cosmetics business that will help

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Speaker 1: him build those shops in the stores, enhance productivity. He's

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Speaker 1: he's very late to the off price business, Terry, He's

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Speaker 1: seven years late. But he finally spotted where he's got

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Speaker 1: backstage and he's gonna add those backstage departments in the stores.

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Speaker 1: The years ago, the Boggain basement was the best part

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Speaker 1: of the department store business. That back people are more economic.

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Speaker 1: Now that backstage will work to flee to be connectecuted. Well,

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Speaker 1: so he's got he's also gonna work on the real

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Speaker 1: estate with partnerships, which is a smart way to do it.

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Speaker 1: So he's got three or four major initiatives underweight. They

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Speaker 1: basically make sense to me. It's not going to happen tomorrow.

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Speaker 1: But I think he's on traps left. Unfortunately, do they

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Speaker 1: basically have to survive until back to school? Well, they

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Speaker 1: were all gonna survive. These companies up very well financed

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Speaker 1: to have powerful balance chiefs that the big ones will

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Speaker 1: all survive. There's no doubt about it. Our divis Thank

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Speaker 1: you so much, Mike. That's great. Can we get Mike?

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Speaker 1: Can we get him on for a whole hour? Yes,

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Speaker 1: well there's all the time. That would be hilarious, very good. Seriously,

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Speaker 1: there how our dividive, it's with good perspective, and you know,

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Speaker 1: obviously with the New York it's great to go down

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Speaker 1: Fifth Avenue when there's Howard Divisive is walking down the

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Speaker 1: street checking out stores. We're gonna come back and link

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Speaker 1: this retail challenge into your cell phone. That would be

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Speaker 1: the world of Michael Nathanson and Mafatt. We are honored

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Speaker 1: to have Moffatt Nathanson with us today. You've heard them

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Speaker 1: talk about clicks, talk a little bit about Disney and

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Speaker 1: TV coming back. We'll look at your cell phone into

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Speaker 1: the next two, three and four years. This our of

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Speaker 1: surveillance party by Westchester Subaru is it Westchester Subaru dot com.

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Speaker 1: Here's Michael bar with news headlines. Mike Tom, thank you

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Speaker 1: very much. Bernie Sanders is not budgeting from his vow

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Speaker 1: to stay in the race until the end of the

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Speaker 1: presidential primary season. Some Democratic Party leaders are concerned as

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Speaker 1: presumptive Republican nominee Donald Trump begins to take tentative fence

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Speaker 1: mending steps. Democratic leaders are an increasing the pressure on

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Speaker 1: Sanders to end this campaign and allow Hillary Clinton to

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Speaker 1: fully pivot to the general election. The Islamic State Crew

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Speaker 1: has now claimed responsibility for an attack on the coffee

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Speaker 1: shop north of Baghdad that has killed at least thirteen people.

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Speaker 1: People flying in the Phoenix airport yesterday I had a luggagemare.

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Speaker 1: A luggage screening malfunction held up more than three thousand

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Speaker 1: pieces of checked luggage. In other words, travelers were in

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Speaker 1: Phoenix while their luggage was struck to another airport to

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Speaker 1: be screened and flown separately from the passengers he's still

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Speaker 1: trying to sort it out Phoenix Sky. Harvard spokesperson Julie

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Speaker 1: Rodriguez had some advice for people traveling to weddings or graduations.

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Speaker 1: Make sure that you carry with you what you need

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Speaker 1: for that special occasion. If you're gonna wear a certain outfit,

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Speaker 1: bring it with you on the plane. Don't put it

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Speaker 1: in your check. Lugged Global News twenty four hours a

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Speaker 1: day hour by our journalists. Thanks a lot, Michael Barr. Alright, Michael,

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Speaker 1: thank you now for the land Rover Parcipani Bloomberg NBC

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Speaker 1: Sports Update with John Stashoer, who has all the sports

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Speaker 1: on the plane in his carry on. Thanks Mike Bartolo.

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Speaker 1: Cologne did not hit a home run this time. Instead,

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Speaker 1: he served one up to his money Grindal with two

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Speaker 1: one in the first inning, Dodgers scored four and the

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Speaker 1: first went on to win five to nothing thanks to

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Speaker 1: Clayton Kershaw all the way on a three hit thirteen strikeouts.

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Speaker 1: Yankees clearly playing better seven three over Kansas City. They

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Speaker 1: hit three homers to back Nathan Novald. The other bullpen

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Speaker 1: four scoreless sittings of relief, allowing just one hits the

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Speaker 1: five and two on the homestand they've scored thirty one

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Speaker 1: runs in the last four wins. Girardi is encouraged. You know,

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Speaker 1: we went through some tough times, there's no doubt about it.

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Speaker 1: But we've seen to pull out of it, and you know,

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Speaker 1: we have a tough series coming up the White Sox.

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Speaker 1: They've been playing extremely well and we need to stay

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Speaker 1: at it. Still in last place, still seven games by

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Speaker 1: Baltimore and Boston, who both have won five in a row.

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Speaker 1: NBA Playoffs, Oklahoma City took care of San Antonio one

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Speaker 1: thirteen to ninety nine. This was over by halftime in

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Speaker 1: the thunder when the series in an upset. Okay see

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Speaker 1: twelve fewer wins during the regular season. They lost game

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Speaker 1: one of the series by thirty two points, where they

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Speaker 1: won four or five after that, and they move on

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Speaker 1: to play Golden State in the West Finals starting Monday.

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Speaker 1: Question now for the Spurs when last night the final

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Speaker 1: game for fourty year old Tim Duncan, he says he

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Speaker 1: has not decided about retirement and nhel another one sided

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Speaker 1: game seven the West San Jose over in Nashville five

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Speaker 1: to not being to move on to play St. Lewis

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Speaker 1: in the West Models but the Bloomberg NBC Sports Update,

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Speaker 1: I'm John stand John, thanks so much. We didn't look

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Speaker 1: at the data. Check here off good retail sales, good

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Speaker 1: revision curve flattening. We were at a hundred and three

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Speaker 1: basis points early this week. We flattened out two y yield,

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Speaker 1: higher tending yield, relatively weaker nineties seven down in ninety

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Speaker 1: six basis points. Uh. That's an important uh moment, a

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Speaker 1: dollar strengthening. Michael as well, you know what this is.

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Speaker 1: This is exactly what John Farrell was talking about with

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Speaker 1: me earlier today, that with no theme in the markets,

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Speaker 1: any bit of data changes people's nights. We came in

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Speaker 1: this morning, it was doom and gloom and things are terrible.

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Speaker 1: And then we get this report and now we're seeing

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Speaker 1: market in a big swinging Gold as well, down ten

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Speaker 1: dollars off the call, non negative five for the day,

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Speaker 1: twelve sixty six uh per ounce. We're with Craig Moffatt

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Speaker 1: and Michael Nathanson, thrilled to have both of them in

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Speaker 1: our studio. We talked media, we talked digital, where you

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Speaker 1: can make money in those stocks. Next, the Sports Report

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Speaker 1: was brought to by Landroper Parcipani. The Spring Sales event

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Speaker 1: and beyond,