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Speaker 1: Yeah, welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane.

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Speaker 1: Daily we bring you insight from the best in economics, finance, investment,

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Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud,

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Speaker 1: Bloomberg dot Com, and of course on the Bloomberg Francine.

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Speaker 1: Let's bring in our guest Julia Cornado with us UH

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Speaker 1: to make us smarter as well. We've been talking through

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Speaker 1: the morning, Julia about the Fed. How important is the

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Speaker 1: vice chairman job? Dr el Arion was vetted to be

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Speaker 1: vice chairman. Is it like a big deal to people

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Speaker 1: like you? It can be a big deal. Yeah, I

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Speaker 1: think the who the vice chair is will very much

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Speaker 1: set the tone for the committee. Um, we know. And

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Speaker 1: and the other important position is of course the President

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Speaker 1: of the New York Fed, which we know that President

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Speaker 1: Dudley will be uh, you know, stepping down and handing

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Speaker 1: over the reins to somebody in mid year next year.

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Speaker 1: So there's going to be a lot of change in

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Speaker 1: the key leadership positions. And yes, it does matter, matters

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Speaker 1: a lot in terms of how they will work with

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Speaker 1: Chairman Powell, uh and what their views will be on

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Speaker 1: monetary policy. Do you worry, Julie about communication that because

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Speaker 1: you have so many new kids on the blog. I'm

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Speaker 1: sure talk, you know, not too much or not enough. Sure. Well, look,

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Speaker 1: the FED is still committed to transparency and I don't

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Speaker 1: expect that to change. But as you say, just the

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Speaker 1: fact that the cast of characters is changing could make

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Speaker 1: it more of a cacophony and harder to sort through

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Speaker 1: the tea leaves. So I think it is going to

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Speaker 1: be you know, there was sort of a sigh of

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Speaker 1: relief when when Powell was announced as as the successor

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Speaker 1: to chair yelling Um on the idea that we we

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Speaker 1: would have continuity and policy and communication. I think that

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Speaker 1: is true for Powell himself, but for who will the

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Speaker 1: vice chair be? Who will be the New York Fed

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Speaker 1: press it in That will also be very important to

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Speaker 1: setting the tone, and we just don't know. We just

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Speaker 1: don't know who those people will be and what issues

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Speaker 1: they'll be confronting. As unfolds, Julie, does the yield curve

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Speaker 1: just keeps on getting flatter and flatter? H Yeah, And

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Speaker 1: I think you know that's the current issue on the table.

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Speaker 1: We saw that in the minutes last week that uh,

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Speaker 1: one of The potential drivers of this is persistently low

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Speaker 1: inflation and what should the FED do about this? So far,

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Speaker 1: the choices have been easy because it's about getting off zero.

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Speaker 1: It's about getting away from you know, ultra accommodative polity

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Speaker 1: policy to something that's more neutral. But once you get there,

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Speaker 1: or once you get closer, how much attention should you pay?

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Speaker 1: How much weight should you put on persistently low inflation?

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Speaker 1: The FETE seems like they're starting to rethink this notion

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Speaker 1: that oh, this is all good, just transitory and going

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Speaker 1: to go away, and and and starting to prepare a

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Speaker 1: potential policy response if it sticks around. You really brought

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Speaker 1: up and Francine frankly brought up something that that was

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Speaker 1: a big it last week and I just in the

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Speaker 1: blur this morning, folks missed it, which is the flatter

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Speaker 1: yield curve. Does anybody in the profession worry that we're

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Speaker 1: getting near the recession signal? I mean, you've got a

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Speaker 1: run rate g d P under two percent, right, I'm

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Speaker 1: gonna call that wicked gloomy, good morning, wicked gloomy, but

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Speaker 1: but realistic, realistic, not wicked gloomy. But we also are

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Speaker 1: getting towards a wicked flat yield curve or are we not? Ye? Know,

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Speaker 1: well we are? I mean and and uh, the ten

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Speaker 1: years seems very stuck below two fifty And if in

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Speaker 1: lesson until that changes, uh, then the FED is going

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Speaker 1: to be flattening out the yield curve even further as

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Speaker 1: they proceed with normalization. We've heard a few FOMC members

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Speaker 1: express concern about that. Now, I don't necessary I don't

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Speaker 1: necessarily subscribe to the yield curve being a signal of

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Speaker 1: impending doom. That might surprise you, since you think I'm

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Speaker 1: so gloomy, but I actually don't think it's necessarily sending

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Speaker 1: a recessionary signal so much as a signal of structurally

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Speaker 1: low inflation and lower growth globally, meaning that you know,

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Speaker 1: the ten year at two fifty two or close to

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Speaker 1: there is not that bad a deal, Julie, Are you

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Speaker 1: gloomy about inflation expectations? What do they do from here?

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Speaker 1: So that's I think the key challenge for the FED.

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Speaker 1: I think if you look at all measures, there is

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Speaker 1: evidence of a break lower somewhere around. We just got

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Speaker 1: settled into lower expectations, whether it's survey market um or

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Speaker 1: or forecasters everybody sort of shifted down to a new paradigm.

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Speaker 1: It's been stable since then. These measures, UH, and the

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Speaker 1: Fed's challenges to keep them where they are and keep

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Speaker 1: core inflation where it is and not lose further ground,

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Speaker 1: because that is I think the key for them and

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Speaker 1: the challenge for the next downturn. Can you keep inflation

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Speaker 1: and inflation expectations anchored if we get hit by another

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Speaker 1: recessionary shock, Julie, if we get the tax cuts where

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Speaker 1: the tax cut posal plan, does that help with inflation expectations?

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Speaker 1: It probably does. I mean, it probably will give a

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Speaker 1: near term push to growth at least for a while,

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Speaker 1: and that will probably you know, since we are at

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Speaker 1: full employment, that will only pressure the labor market further

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Speaker 1: and potentially bring forward some more wage growth. So it

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Speaker 1: is inflationary in that sense, and the Fed UH may

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Speaker 1: want to accommodate it to some agree to to get

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Speaker 1: that inflation higher. Uh. There of course weighing all of

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Speaker 1: this against concerns about market bubbles and and financial instability concerns.

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Speaker 1: But um, but yeah, I think at the margin that

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Speaker 1: it helps probably inflation and inflation expectations more than it

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Speaker 1: does growth itself. Yes, So how do you get that

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Speaker 1: three percent growth that that we know the administration wants

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Speaker 1: look sustained three percent growth would require, given you know

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Speaker 1: the building blocks of growth, our population growth and productivity.

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Speaker 1: I am relatively optimistic that will see some better productivity

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Speaker 1: numbers after a very very lethargic period. But we're looking

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Speaker 1: at population growth that's projected to be about half a

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Speaker 1: percent a year, and that's assuming no reduction in immigration.

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Speaker 1: If we get a reduction in immigration, it will be

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Speaker 1: even lower. So what are you looking at? Three percent

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Speaker 1: productivity growth? That just doesn't seem realistic under any kind

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Speaker 1: of investment boom that we might imagine. Is this eurosclerosis

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Speaker 1: by any other name? It is a global phenomenon. You know,

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Speaker 1: this is a population growth is slowing, populations are aging. Um,

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Speaker 1: there is some tie between that and productivity. There's been

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Speaker 1: sort of a mystery as to why all of this

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Speaker 1: technological change has shown up in productivity numbers. But if

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Speaker 1: you actually one of the implications could be that real

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Speaker 1: growth is higher, but inflation is actually even lower than

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Speaker 1: we're currently measuring, and so that's an even bigger problem.

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Speaker 1: The nominee speaks this week, what will you listen for

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Speaker 1: from future Chairman Powell. I think that uh. I think

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Speaker 1: the current Governor Powell will keep it very close to

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Speaker 1: the vest I think he's uh, he's got one of

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Speaker 1: the best poker faces on the f O m C

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Speaker 1: for sure. Always worth so much money. I saw a

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Speaker 1: beautiful chart. I can't remember who bother me, not at all.

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Speaker 1: Do we need a fed chairman that you know? It

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Speaker 1: was like Trump has got more money than God. Does

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Speaker 1: it make a difference. No, I don't think it really

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Speaker 1: makes a difference. Um, I think I think what I

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Speaker 1: am happy about is that Governor Powell has a healthy

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Speaker 1: respect for the institution, has a deep understanding of the process. Uh.

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Speaker 1: And and and he's committed. I think he's committed to

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Speaker 1: getting the job done right and not playing with matches. Julia,

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Speaker 1: thank you so much, Julia Cortonada. She brought in leftover

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Speaker 1: Turkey which is just killer as well. Macro policy personpectives

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Speaker 1: as well. This is a joy with us now the

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Speaker 1: president First Data Corporation, Guysarillo with us as well, First

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Speaker 1: Data of course thousand large out of New York and

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Speaker 1: and and Guy, I want to go back to your

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Speaker 1: storied career, it Chase. You were chief information officer, and

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Speaker 1: you are widely accredited with hurting the cats into a

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Speaker 1: room and creating the retail visibility of Chase. What was

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Speaker 1: the first meeting like where you took Chase from an

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Speaker 1: also ran to the retail juggernaut. It was when you

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Speaker 1: left for First Data. You know, it was a great

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Speaker 1: team there and Jamie led a great company and we

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Speaker 1: decided very early on in my time there that we

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Speaker 1: were going to be a digital leader. And at that point, uh,

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Speaker 1: we didn't really have the branches fully digital. We didn't

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Speaker 1: have a t M S fully digital, and we didn't

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Speaker 1: have you know, a website, didn't while we had a website,

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Speaker 1: but it was it wasn't what you would want it

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Speaker 1: to be. And I think from that day in two

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Speaker 1: thousand and seven when I started to the time I

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Speaker 1: left in two thousand and thirteen, the focus was really

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Speaker 1: to be digital everything and to iterate, iterate, iterate. And

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Speaker 1: I see that now at First Data you've got the

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Speaker 1: Clover system in that to to iterate, what do you

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Speaker 1: iterated into? Are you iterating into charge cards being dead?

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Speaker 1: You know? I think charge cards people will use a

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Speaker 1: variety of formats as a combination of generational activity as

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Speaker 1: well as just ease of use. So I think you're

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Speaker 1: gonna see people tapping terminals, You're going to see people

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Speaker 1: who are swiping cards. They're gonna be you know, transacting

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Speaker 1: on their phones. It's pretty it's pretty natural at this

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Speaker 1: I got the new toy, got it like three days

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Speaker 1: ago as well. Is Tim Cook's no wonder child, your

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Speaker 1: friend or enemy? You know, you never know at the

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Speaker 1: end of the day. But they are really a consumer

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Speaker 1: company and they are focused on ease of use in

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Speaker 1: every way possible. I think payments integrated with a phone

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Speaker 1: is a very is a very positive aspect. It's also

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Speaker 1: a safer transaction in many different ways. And uh, and

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Speaker 1: it's hard to know in this payments business who is

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Speaker 1: your friend or not, but we are the collaborator, guys.

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Speaker 1: Sharrolla with this with first day at Francy Loquix and

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Speaker 1: London Francy. Yeah, guy, it was interesting too. You know

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Speaker 1: what comes afterwards when you look at the kind of

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Speaker 1: you know, the big takeaways. Um, and if you look

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Speaker 1: at Thanksgiving like Friday, so overall spending was up at

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Speaker 1: eleven point nine percent. Is it just because there's cheap

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Speaker 1: and it's too much stock or is it actually a

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Speaker 1: healthy consumer? No, I think it's healthy consumer. We saw

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Speaker 1: that ten days prior to Thanksgiving and Black Friday being

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Speaker 1: very robust. We've seen different things in different years, but

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Speaker 1: it took nothing away from the holiday weekend that that

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Speaker 1: activity was robust across retailers, electronics and appliances in a

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Speaker 1: very very healthy way and carried forward right into the

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Speaker 1: holiday weekend where we saw uh, you know, nine percent

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Speaker 1: increase in total spend in retail eighteen percent and electronics

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Speaker 1: uh and you know, a very robust spending year over year,

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Speaker 1: no matter what category you looked at. Do you assume guy,

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Speaker 1: And I don't know if it's wrong, just human that

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Speaker 1: just e commerce. I think making up some twenty of

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Speaker 1: Thanksgiving Black Friday will just continue so every year, if

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Speaker 1: I speak to in one or two years, it's going

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Speaker 1: to be up thirty percent and then and then it

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Speaker 1: will finally reach that fifty percent mark. You know, I

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Speaker 1: don't know where it levels off, but it's definitely has

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Speaker 1: a lot of room to grow, a phenomena we saw

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Speaker 1: all over the last couple of years. I've studied this

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Speaker 1: pretty deep in a detailed way. In two thousand and

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Speaker 1: fifteen and two thousand and sixteen. We saw these bumps

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Speaker 1: and e commerce traffic during the holiday season, but it

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Speaker 1: normalized when you went back into the first quarter. We

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Speaker 1: didn't see that in two thousand and seventeen. What we

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Speaker 1: saw that happened during the holiday season continued right through

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Speaker 1: two thousand and seventeen. So people are more comfortable now.

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Speaker 1: Your website always has the touchy feely little shop somewhere

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Speaker 1: where first day of saving the day within transaction costs,

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Speaker 1: I get, I get the you know that's what you do.

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Speaker 1: How are you greeting Amazon when first data shows up

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Speaker 1: at Amazon? What do you in team Bezos talk about?

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Speaker 1: You know, there's a lot of there are a lot

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Speaker 1: of different opportunities. It's and it's not just Amazon. It

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Speaker 1: could be Ali Pay, Apple Pay, Google Pay. It doesn't

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Speaker 1: matter where we show up our ability to process transactions

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Speaker 1: in a secure and safe way around the world. So

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Speaker 1: what do you do for Bezos? Actually, what we do

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Speaker 1: for Bezos is process a lot of the Amazon transactions

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Speaker 1: that come through the website, for Amazon Prime and all that,

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Speaker 1: for a range of Amazon. We're not the only we're

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Speaker 1: not the exclusive to Amazon, but we are a provider

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Speaker 1: of those services in a variety of different ways, and

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Speaker 1: you know, very successfully I hope to continues. Does Amazon

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Speaker 1: try to get market share at all costs? I I

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Speaker 1: don't know whether they're actually making you know, losses and

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Speaker 1: some of the products that they sell just to make

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Speaker 1: sure that people get addicted to their service. You know

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Speaker 1: that we don't see. I think that Amazon is a

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Speaker 1: is a great provider of products and services to uh,

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Speaker 1: you know, two people around the world. And I think

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Speaker 1: we see that again with a variety of our other

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Speaker 1: large scale retailers and providers. So you know, they're they're

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Speaker 1: a fierce come editor too many and you know, from

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Speaker 1: our perspective, we will work to continue to provide safe

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Speaker 1: commerce and transactions for Amazon and all the other companies

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Speaker 1: we do business with around the world. Who can survive Amazon.

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Speaker 1: So Toma disclaimer, I'm definitely a better mother thanks to

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Speaker 1: Amazon because I pre buy everything it's waiting for me.

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Speaker 1: But there must be things that people are too shy

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Speaker 1: to buy on Amazon. You know, It's hard to tell.

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Speaker 1: I you know, I don't look inside the Amazon baskets,

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Speaker 1: but I believe that people are just getting comfortable in general,

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Speaker 1: they order their food in advance and pick it up

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Speaker 1: in a line. They order their retail in advance and

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Speaker 1: have it shipped. As you know, it's a way of life.

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Speaker 1: I mean, you and I are old enough. Francy's way

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Speaker 1: too young to remember this. Where you bought American Express

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Speaker 1: traveler checks and Carl Malden said, don't leave home without them.

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Speaker 1: And you were a kid and your parents sent you

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Speaker 1: out with this little lot of paper. I mean that

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Speaker 1: was a transaction that disappeared. Is your world gonna disappear?

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Speaker 1: I mean, are you staying up night looking at the

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Speaker 1: College of New Jersey, Penance, You've got right on the bedroom.

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Speaker 1: Are you staring there, going, Oh, one day they're not

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Speaker 1: going to use the visa card of the master. No.

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Speaker 1: You know, we love commerce. It's whether it's Visa, Amex, MasterCard, Discover,

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Speaker 1: whether it's gift or EBT. We have one of the

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Speaker 1: largest gift businesses in the country, and digital gift cards

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Speaker 1: are are very robust. Um in from a euro excuse me, Francine.

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Speaker 1: Those are exclusively used to purchase slime and slime materials. Caught.

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Speaker 1: You buy like kilos of slim kilos. You can buy Elmer's.

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Speaker 1: I wish I had the Elmer's Glue franchise for we

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Speaker 1: love commerce. I think we love commerce and all and

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Speaker 1: all formats. You'll take slime sales, not slime sales, but

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Speaker 1: we love commerce. I mean, we're within this is the

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Speaker 1: pressure to perform financially. What are you gonna do to

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Speaker 1: really jumps? I mean you've come out of the bottom

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Speaker 1: and all that and done better. But given a d

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Speaker 1: P and the challenges with Mr Ackerman and all that,

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Speaker 1: is there a pressure to goose the financials? You know. Look,

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Speaker 1: I think in every business you have this pressure. This

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Speaker 1: company is a huge transformation if you think about where

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Speaker 1: we came from with billion dollars of that significant losses

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Speaker 1: in the private equity space for a long time, one

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Speaker 1: of the largest I P O. Still since October two

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Speaker 1: thousand and fifteen, have transformed the company financially, growing the

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Speaker 1: top line, improving the bottom line, expanding margins. I mean,

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Speaker 1: we're going to continue to do what we have been doing. Fritzy,

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Speaker 1: we don't care, we just want Are you going to

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Speaker 1: create jobs in Manhaman? We're going to create jobs around

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Speaker 1: the country and around the world. Yeah, oh see how

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Speaker 1: he missed that? Did that? Frenzy? Where where guys, there

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Speaker 1: is it? You know? Is it back office? Is it?

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Speaker 1: What kind of jobs will you create? Are the quality jobs?

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Speaker 1: You know? I'm hoping that the cyber related profession is

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Speaker 1: a definitely an opportunity to create jobs. We are actually

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Speaker 1: helping all of our merchants do the same. I think operationally,

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Speaker 1: there are ways to continue to do things more and

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Speaker 1: more efficiently. So I think that you know, those are

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Speaker 1: those are opportunities to eliminate roles, while on the other side,

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Speaker 1: the front end of the house their opportunities to expand.

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Speaker 1: I had been three bad uber charges on my Chase

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Speaker 1: account this weekend. I was going to call Jamie Diamond

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Speaker 1: and complaint. Could you get it fixed for him? I

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Speaker 1: think you should call Jamie, He'll help you. Call Mr Diamon.

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Speaker 1: Very good, Thank you so much. Guy Ciarello with us

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Speaker 1: with first day of Corp their president, moving the ship

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Speaker 1: forward and really interesting within all the bitcoin and cyber

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Speaker 1: currency is well to a great part of the Keene family.

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Speaker 1: Francine September nine, two thousand and six was one of

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Speaker 1: the darkest days in the history of mankind. This is

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Speaker 1: when Marshall Field and the name went away of a

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Speaker 1: building that was the fabric for part of my family.

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Speaker 1: We're on it to bring you on this cyber what

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Speaker 1: was it Cyber Wednesday, Cyber Monday. It reaches Monday branding,

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Speaker 1: Geared Storage, Gerald Storch, which was if you know its history,

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Speaker 1: Toys or Roast, Target and Hudson Bay and the rest

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Speaker 1: of it. Stop it. Did you ever walk around the

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Speaker 1: Marshall Field store at night when the lights were out?

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Speaker 1: What a wonderful storage. You described the experience of the

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Speaker 1: third largest thing in the world. Amazing, amazing building on

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Speaker 1: State Street in Chicago. There and we bought it when

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Speaker 1: I was at Target, and we set about to renovated extensively,

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Speaker 1: bring back the old heritage. We hung the largest American

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Speaker 1: flag in the world in the atrium because that's what

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Speaker 1: they used to do. Bring We brought back all the traditions.

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Speaker 1: What a beautiful, beautiful old building and what an enormous place.

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Speaker 1: And talk about experience in retail, that was an experience

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Speaker 1: that that's a nostalgia GM and you know the the

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Speaker 1: just the Midwest retail, the Christmas Story, the comedy about

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Speaker 1: the department, that's a nostalgia. It's all gone. I'm on

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Speaker 1: my iPhone X buying something right now, do we need

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Speaker 1: your world of nostalgia anymore? Well, my world includes the

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Speaker 1: Internet and the Internet. It's a technology just like electricity,

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Speaker 1: and we all use electricity in our businesses. It isn't

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Speaker 1: just the exclusive domain of the electric utility companies. And

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Speaker 1: so we're just at the very beginning of e commerce

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Speaker 1: and of the Internet. It's going to change dramatically. So

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Speaker 1: what we see is the traditional venerable bricks and mortar

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Speaker 1: companies are doing a pretty good job of starting to

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Speaker 1: bring the Internet into their businesses. Commerce is still done

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Speaker 1: in the physical location. So what's gonna happen in the

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Speaker 1: future is every transaction will have an Internet component, Internet

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Speaker 1: enabled to one or the other, or you'll buy in line,

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Speaker 1: pick it up in the store. But it doesn't mean

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Speaker 1: we don't need bricks and mortar locations. We just don't

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Speaker 1: need as many of them as we have now. So Jerry,

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Speaker 1: when you good morning first of all from London, more

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Speaker 1: you say we we still need bricks and mortars. This

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Speaker 1: is what kind of like a showcase, you know. So

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Speaker 1: I went to a supermarket for like the first time

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Speaker 1: in like three years yesterday, um, and it was a

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Speaker 1: lovely experience because everything I do is online. But do

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Speaker 1: I have time to go back? Probably not so, Jerry,

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Speaker 1: Is this when when people want to just, you know,

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Speaker 1: do something different with the family. Is it a kind

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Speaker 1: of show and tell? Or do you think people at

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Speaker 1: some point will be fed up of shopping online and

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Speaker 1: go back to bricks and mortars. Oh, I don't think

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Speaker 1: it's getting fed up. I believe the internet is is

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Speaker 1: revolutionary and it's transformational, but it's not transcendent. It doesn't

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Speaker 1: mean it has to replace everything. So it's not just

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Speaker 1: going to have a good time. It's also going to

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Speaker 1: try it on to make sure that it fits before

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Speaker 1: you buy it, so you don't have to go through

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Speaker 1: buying twelve different sizes and returning the ones that don't fit.

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Speaker 1: It's going to learn new things that you might not

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Speaker 1: think about unless you walked in there. It's going to

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Speaker 1: get a media gratification to have the product instantly able

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Speaker 1: to walk out with it, and don't forget it still

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Speaker 1: has superior economics to the online channel. This is what

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Speaker 1: people forget when you when you buy something online and

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Speaker 1: ship it to the home for home delivery, it's enormously

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Speaker 1: expensive and this is why most companies do not make

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Speaker 1: money on the physical home delivery of goods that are

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Speaker 1: ordered on the Internet. This is kind of the dirty

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Speaker 1: little secret of the Internet right now. But Jerry fits luxury.

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Speaker 1: I mean, if you need a shop on you know

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Speaker 1: here Old Bond Street or New Bond Street or Oxford

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Speaker 1: Street in the US on Park Avenue, it's going to

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Speaker 1: be more expensive than certainly getting a warehouse in New

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Speaker 1: Jersey where you can just keep the stuff and ship

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Speaker 1: it out. Yeah, but those luxury products are not going

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Speaker 1: to sell online in that fashion. They want you to

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Speaker 1: have the whole surround, have the high service, and you're

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Speaker 1: gonna want the service to If you're going to spend

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Speaker 1: a lot of money for something that's high luxury, you

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Speaker 1: certainly want to know the person you're buying it from,

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Speaker 1: have that kind of service, have someone who knows you

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Speaker 1: who can help you pick it out. But the Internet

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Speaker 1: is amazing, it's fantastic, and it will grow, but it

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Speaker 1: will be integrating everything. Okay, down the income statement and

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Speaker 1: now we're talking to Jerry Storg financial guy, which is

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Speaker 1: really what he's famous for. Mr Londgren down in the

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Speaker 1: Herald Squares making eleven twelve cents in the dollar he's

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Speaker 1: cleaning basis, his clock basis is lucky if he's making

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Speaker 1: nine sense, but as well, nobody cares since when is

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Speaker 1: your business based on this sales growth fiction of Amazon

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Speaker 1: versus valuing companies based on cash flow or something that

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Speaker 1: on the income. There's no doubt that that Jeff has

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Speaker 1: done an amazing job at Amazon, and people are betting

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Speaker 1: on the future and what he's done, and so at

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Speaker 1: some point, though, everybody has to make money. Now he's

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Speaker 1: making a ton of money on the cloud. In other ways,

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Speaker 1: it's helping to sort of cross subsidize what's going on

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Speaker 1: in retail. Eventually, though, the bricks and watar retails will

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Speaker 1: be smart. He'll be smart. You know, he bought Whole Foods,

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Speaker 1: And you're gonna have these combined models of bricks and

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Speaker 1: mortar and the Internet that are economic to operate, both

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Speaker 1: for Amazon and for others. Is Huts is Hudson Bay's

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Speaker 1: company and the others. Are they going to eventually make

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Speaker 1: revenue growth? I mean at the top line. That's as

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Speaker 1: you just mentioned, that's the great differential. How do we

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Speaker 1: get back to nominal GDP growth in retail? You know,

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Speaker 1: retailers in general can grow and it will be a

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Speaker 1: mixture of traditional bricks and mortar sales and online sales,

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Speaker 1: and it won't that we are in the Roman normal

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Speaker 1: numbered pages of the book. On the internet, it will

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Speaker 1: not look anything like it does today. There will be

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Speaker 1: so many different combinations and integrations of the Internet with

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Speaker 1: the stores that you will not recognize it. This notion

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Speaker 1: that the Internet is for home delivery will look as

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Speaker 1: antiquated as wearing a ruffled shirt. No wig does today.

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Speaker 1: Do you have a Hudson's bade brain blanket on a

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Speaker 1: bed at home? Do you like you have like a

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Speaker 1: ginormous king size Jerry Storge badd and you've got like

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Speaker 1: the green, the red, deal orange, the yellow and the

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Speaker 1: black stripe. By my secret is that we don't use

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Speaker 1: a blanket. You don't use a blanket. But you know,

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Speaker 1: the the uh, the future is very bright for retailers

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Speaker 1: who make rapid change in this environment. And you see

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Speaker 1: a lot of successful retailers, even those that are principally

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Speaker 1: bricks and mortar, who they're offering the right value property.

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Speaker 1: Someone like t J Max with a forty five billion

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Speaker 1: dollar market cap, it's worth more than the entire department

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Speaker 1: store sector combined Costco doing very very well. Is it

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Speaker 1: on Canadian that the Hudson Bay blankets made in England.

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Speaker 1: I don't know what that's about. Thank you so much.

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Speaker 1: We have to do this again. Don't be a stranger.

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Speaker 1: Jerry Storch with the Storch Advisors this morning on his

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Speaker 1: Hudson Bay on his martial fields. Thanks for listening to

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Speaker 1: the Bloomberg Surveillance podcast. Subscribe and listen to interviews on

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Speaker 1: on Twitter at Tom Keane before the podcast. You can

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Speaker 1: always catch us worldwide. I'm Bloomberg Radio