Speaker 1: Yeah, welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane.
Speaker 1: Daily we bring you insight from the best in economics, finance, investment,
Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud,
Speaker 1: Bloomberg dot Com, and of course on the Bloomberg Francine.
Speaker 1: Let's bring in our guest Julia Cornado with us UH
Speaker 1: to make us smarter as well. We've been talking through
Speaker 1: the morning, Julia about the Fed. How important is the
Speaker 1: vice chairman job? Dr el Arion was vetted to be
Speaker 1: vice chairman. Is it like a big deal to people
Speaker 1: like you? It can be a big deal. Yeah, I
Speaker 1: think the who the vice chair is will very much
Speaker 1: set the tone for the committee. Um, we know. And
Speaker 1: and the other important position is of course the President
Speaker 1: of the New York Fed, which we know that President
Speaker 1: Dudley will be uh, you know, stepping down and handing
Speaker 1: over the reins to somebody in mid year next year.
Speaker 1: So there's going to be a lot of change in
Speaker 1: the key leadership positions. And yes, it does matter, matters
Speaker 1: a lot in terms of how they will work with
Speaker 1: Chairman Powell, uh and what their views will be on
Speaker 1: monetary policy. Do you worry, Julie about communication that because
Speaker 1: you have so many new kids on the blog. I'm
Speaker 1: sure talk, you know, not too much or not enough. Sure. Well, look,
Speaker 1: the FED is still committed to transparency and I don't
Speaker 1: expect that to change. But as you say, just the
Speaker 1: fact that the cast of characters is changing could make
Speaker 1: it more of a cacophony and harder to sort through
Speaker 1: the tea leaves. So I think it is going to
Speaker 1: be you know, there was sort of a sigh of
Speaker 1: relief when when Powell was announced as as the successor
Speaker 1: to chair yelling Um on the idea that we we
Speaker 1: would have continuity and policy and communication. I think that
Speaker 1: is true for Powell himself, but for who will the
Speaker 1: vice chair be? Who will be the New York Fed
Speaker 1: press it in That will also be very important to
Speaker 1: setting the tone, and we just don't know. We just
Speaker 1: don't know who those people will be and what issues
Speaker 1: they'll be confronting. As unfolds, Julie, does the yield curve
Speaker 1: just keeps on getting flatter and flatter? H Yeah, And
Speaker 1: I think you know that's the current issue on the table.
Speaker 1: We saw that in the minutes last week that uh,
Speaker 1: one of The potential drivers of this is persistently low
Speaker 1: inflation and what should the FED do about this? So far,
Speaker 1: the choices have been easy because it's about getting off zero.
Speaker 1: It's about getting away from you know, ultra accommodative polity
Speaker 1: policy to something that's more neutral. But once you get there,
Speaker 1: or once you get closer, how much attention should you pay?
Speaker 1: How much weight should you put on persistently low inflation?
Speaker 1: The FETE seems like they're starting to rethink this notion
Speaker 1: that oh, this is all good, just transitory and going
Speaker 1: to go away, and and and starting to prepare a
Speaker 1: potential policy response if it sticks around. You really brought
Speaker 1: up and Francine frankly brought up something that that was
Speaker 1: a big it last week and I just in the
Speaker 1: blur this morning, folks missed it, which is the flatter
Speaker 1: yield curve. Does anybody in the profession worry that we're
Speaker 1: getting near the recession signal? I mean, you've got a
Speaker 1: run rate g d P under two percent, right, I'm
Speaker 1: gonna call that wicked gloomy, good morning, wicked gloomy, but
Speaker 1: but realistic, realistic, not wicked gloomy. But we also are
Speaker 1: getting towards a wicked flat yield curve or are we not? Ye? Know,
Speaker 1: well we are? I mean and and uh, the ten
Speaker 1: years seems very stuck below two fifty And if in
Speaker 1: lesson until that changes, uh, then the FED is going
Speaker 1: to be flattening out the yield curve even further as
Speaker 1: they proceed with normalization. We've heard a few FOMC members
Speaker 1: express concern about that. Now, I don't necessary I don't
Speaker 1: necessarily subscribe to the yield curve being a signal of
Speaker 1: impending doom. That might surprise you, since you think I'm
Speaker 1: so gloomy, but I actually don't think it's necessarily sending
Speaker 1: a recessionary signal so much as a signal of structurally
Speaker 1: low inflation and lower growth globally, meaning that you know,
Speaker 1: the ten year at two fifty two or close to
Speaker 1: there is not that bad a deal, Julie, Are you
Speaker 1: gloomy about inflation expectations? What do they do from here?
Speaker 1: So that's I think the key challenge for the FED.
Speaker 1: I think if you look at all measures, there is
Speaker 1: evidence of a break lower somewhere around. We just got
Speaker 1: settled into lower expectations, whether it's survey market um or
Speaker 1: or forecasters everybody sort of shifted down to a new paradigm.
Speaker 1: It's been stable since then. These measures, UH, and the
Speaker 1: Fed's challenges to keep them where they are and keep
Speaker 1: core inflation where it is and not lose further ground,
Speaker 1: because that is I think the key for them and
Speaker 1: the challenge for the next downturn. Can you keep inflation
Speaker 1: and inflation expectations anchored if we get hit by another
Speaker 1: recessionary shock, Julie, if we get the tax cuts where
Speaker 1: the tax cut posal plan, does that help with inflation expectations?
Speaker 1: It probably does. I mean, it probably will give a
Speaker 1: near term push to growth at least for a while,
Speaker 1: and that will probably you know, since we are at
Speaker 1: full employment, that will only pressure the labor market further
Speaker 1: and potentially bring forward some more wage growth. So it
Speaker 1: is inflationary in that sense, and the Fed UH may
Speaker 1: want to accommodate it to some agree to to get
Speaker 1: that inflation higher. Uh. There of course weighing all of
Speaker 1: this against concerns about market bubbles and and financial instability concerns.
Speaker 1: But um, but yeah, I think at the margin that
Speaker 1: it helps probably inflation and inflation expectations more than it
Speaker 1: does growth itself. Yes, So how do you get that
Speaker 1: three percent growth that that we know the administration wants
Speaker 1: look sustained three percent growth would require, given you know
Speaker 1: the building blocks of growth, our population growth and productivity.
Speaker 1: I am relatively optimistic that will see some better productivity
Speaker 1: numbers after a very very lethargic period. But we're looking
Speaker 1: at population growth that's projected to be about half a
Speaker 1: percent a year, and that's assuming no reduction in immigration.
Speaker 1: If we get a reduction in immigration, it will be
Speaker 1: even lower. So what are you looking at? Three percent
Speaker 1: productivity growth? That just doesn't seem realistic under any kind
Speaker 1: of investment boom that we might imagine. Is this eurosclerosis
Speaker 1: by any other name? It is a global phenomenon. You know,
Speaker 1: this is a population growth is slowing, populations are aging. Um,
Speaker 1: there is some tie between that and productivity. There's been
Speaker 1: sort of a mystery as to why all of this
Speaker 1: technological change has shown up in productivity numbers. But if
Speaker 1: you actually one of the implications could be that real
Speaker 1: growth is higher, but inflation is actually even lower than
Speaker 1: we're currently measuring, and so that's an even bigger problem.
Speaker 1: The nominee speaks this week, what will you listen for
Speaker 1: from future Chairman Powell. I think that uh. I think
Speaker 1: the current Governor Powell will keep it very close to
Speaker 1: the vest I think he's uh, he's got one of
Speaker 1: the best poker faces on the f O m C
Speaker 1: for sure. Always worth so much money. I saw a
Speaker 1: beautiful chart. I can't remember who bother me, not at all.
Speaker 1: Do we need a fed chairman that you know? It
Speaker 1: was like Trump has got more money than God. Does
Speaker 1: it make a difference. No, I don't think it really
Speaker 1: makes a difference. Um, I think I think what I
Speaker 1: am happy about is that Governor Powell has a healthy
Speaker 1: respect for the institution, has a deep understanding of the process. Uh.
Speaker 1: And and and he's committed. I think he's committed to
Speaker 1: getting the job done right and not playing with matches. Julia,
Speaker 1: thank you so much, Julia Cortonada. She brought in leftover
Speaker 1: Turkey which is just killer as well. Macro policy personpectives
Speaker 1: as well. This is a joy with us now the
Speaker 1: president First Data Corporation, Guysarillo with us as well, First
Speaker 1: Data of course thousand large out of New York and
Speaker 1: and and Guy, I want to go back to your
Speaker 1: storied career, it Chase. You were chief information officer, and
Speaker 1: you are widely accredited with hurting the cats into a
Speaker 1: room and creating the retail visibility of Chase. What was
Speaker 1: the first meeting like where you took Chase from an
Speaker 1: also ran to the retail juggernaut. It was when you
Speaker 1: left for First Data. You know, it was a great
Speaker 1: team there and Jamie led a great company and we
Speaker 1: decided very early on in my time there that we
Speaker 1: were going to be a digital leader. And at that point, uh,
Speaker 1: we didn't really have the branches fully digital. We didn't
Speaker 1: have a t M S fully digital, and we didn't
Speaker 1: have you know, a website, didn't while we had a website,
Speaker 1: but it was it wasn't what you would want it
Speaker 1: to be. And I think from that day in two
Speaker 1: thousand and seven when I started to the time I
Speaker 1: left in two thousand and thirteen, the focus was really
Speaker 1: to be digital everything and to iterate, iterate, iterate. And
Speaker 1: I see that now at First Data you've got the
Speaker 1: Clover system in that to to iterate, what do you
Speaker 1: iterated into? Are you iterating into charge cards being dead?
Speaker 1: You know? I think charge cards people will use a
Speaker 1: variety of formats as a combination of generational activity as
Speaker 1: well as just ease of use. So I think you're
Speaker 1: gonna see people tapping terminals, You're going to see people
Speaker 1: who are swiping cards. They're gonna be you know, transacting
Speaker 1: on their phones. It's pretty it's pretty natural at this
Speaker 1: I got the new toy, got it like three days
Speaker 1: ago as well. Is Tim Cook's no wonder child, your
Speaker 1: friend or enemy? You know, you never know at the
Speaker 1: end of the day. But they are really a consumer
Speaker 1: company and they are focused on ease of use in
Speaker 1: every way possible. I think payments integrated with a phone
Speaker 1: is a very is a very positive aspect. It's also
Speaker 1: a safer transaction in many different ways. And uh, and
Speaker 1: it's hard to know in this payments business who is
Speaker 1: your friend or not, but we are the collaborator, guys.
Speaker 1: Sharrolla with this with first day at Francy Loquix and
Speaker 1: London Francy. Yeah, guy, it was interesting too. You know
Speaker 1: what comes afterwards when you look at the kind of
Speaker 1: you know, the big takeaways. Um, and if you look
Speaker 1: at Thanksgiving like Friday, so overall spending was up at
Speaker 1: eleven point nine percent. Is it just because there's cheap
Speaker 1: and it's too much stock or is it actually a
Speaker 1: healthy consumer? No, I think it's healthy consumer. We saw
Speaker 1: that ten days prior to Thanksgiving and Black Friday being
Speaker 1: very robust. We've seen different things in different years, but
Speaker 1: it took nothing away from the holiday weekend that that
Speaker 1: activity was robust across retailers, electronics and appliances in a
Speaker 1: very very healthy way and carried forward right into the
Speaker 1: holiday weekend where we saw uh, you know, nine percent
Speaker 1: increase in total spend in retail eighteen percent and electronics
Speaker 1: uh and you know, a very robust spending year over year,
Speaker 1: no matter what category you looked at. Do you assume guy,
Speaker 1: And I don't know if it's wrong, just human that
Speaker 1: just e commerce. I think making up some twenty of
Speaker 1: Thanksgiving Black Friday will just continue so every year, if
Speaker 1: I speak to in one or two years, it's going
Speaker 1: to be up thirty percent and then and then it
Speaker 1: will finally reach that fifty percent mark. You know, I
Speaker 1: don't know where it levels off, but it's definitely has
Speaker 1: a lot of room to grow, a phenomena we saw
Speaker 1: all over the last couple of years. I've studied this
Speaker 1: pretty deep in a detailed way. In two thousand and
Speaker 1: fifteen and two thousand and sixteen. We saw these bumps
Speaker 1: and e commerce traffic during the holiday season, but it
Speaker 1: normalized when you went back into the first quarter. We
Speaker 1: didn't see that in two thousand and seventeen. What we
Speaker 1: saw that happened during the holiday season continued right through
Speaker 1: two thousand and seventeen. So people are more comfortable now.
Speaker 1: Your website always has the touchy feely little shop somewhere
Speaker 1: where first day of saving the day within transaction costs,
Speaker 1: I get, I get the you know that's what you do.
Speaker 1: How are you greeting Amazon when first data shows up
Speaker 1: at Amazon? What do you in team Bezos talk about?
Speaker 1: You know, there's a lot of there are a lot
Speaker 1: of different opportunities. It's and it's not just Amazon. It
Speaker 1: could be Ali Pay, Apple Pay, Google Pay. It doesn't
Speaker 1: matter where we show up our ability to process transactions
Speaker 1: in a secure and safe way around the world. So
Speaker 1: what do you do for Bezos? Actually, what we do
Speaker 1: for Bezos is process a lot of the Amazon transactions
Speaker 1: that come through the website, for Amazon Prime and all that,
Speaker 1: for a range of Amazon. We're not the only we're
Speaker 1: not the exclusive to Amazon, but we are a provider
Speaker 1: of those services in a variety of different ways, and
Speaker 1: you know, very successfully I hope to continues. Does Amazon
Speaker 1: try to get market share at all costs? I I
Speaker 1: don't know whether they're actually making you know, losses and
Speaker 1: some of the products that they sell just to make
Speaker 1: sure that people get addicted to their service. You know
Speaker 1: that we don't see. I think that Amazon is a
Speaker 1: is a great provider of products and services to uh,
Speaker 1: you know, two people around the world. And I think
Speaker 1: we see that again with a variety of our other
Speaker 1: large scale retailers and providers. So you know, they're they're
Speaker 1: a fierce come editor too many and you know, from
Speaker 1: our perspective, we will work to continue to provide safe
Speaker 1: commerce and transactions for Amazon and all the other companies
Speaker 1: we do business with around the world. Who can survive Amazon.
Speaker 1: So Toma disclaimer, I'm definitely a better mother thanks to
Speaker 1: Amazon because I pre buy everything it's waiting for me.
Speaker 1: But there must be things that people are too shy
Speaker 1: to buy on Amazon. You know, It's hard to tell.
Speaker 1: I you know, I don't look inside the Amazon baskets,
Speaker 1: but I believe that people are just getting comfortable in general,
Speaker 1: they order their food in advance and pick it up
Speaker 1: in a line. They order their retail in advance and
Speaker 1: have it shipped. As you know, it's a way of life.
Speaker 1: I mean, you and I are old enough. Francy's way
Speaker 1: too young to remember this. Where you bought American Express
Speaker 1: traveler checks and Carl Malden said, don't leave home without them.
Speaker 1: And you were a kid and your parents sent you
Speaker 1: out with this little lot of paper. I mean that
Speaker 1: was a transaction that disappeared. Is your world gonna disappear?
Speaker 1: I mean, are you staying up night looking at the
Speaker 1: College of New Jersey, Penance, You've got right on the bedroom.
Speaker 1: Are you staring there, going, Oh, one day they're not
Speaker 1: going to use the visa card of the master. No.
Speaker 1: You know, we love commerce. It's whether it's Visa, Amex, MasterCard, Discover,
Speaker 1: whether it's gift or EBT. We have one of the
Speaker 1: largest gift businesses in the country, and digital gift cards
Speaker 1: are are very robust. Um in from a euro excuse me, Francine.
Speaker 1: Those are exclusively used to purchase slime and slime materials. Caught.
Speaker 1: You buy like kilos of slim kilos. You can buy Elmer's.
Speaker 1: I wish I had the Elmer's Glue franchise for we
Speaker 1: love commerce. I think we love commerce and all and
Speaker 1: all formats. You'll take slime sales, not slime sales, but
Speaker 1: we love commerce. I mean, we're within this is the
Speaker 1: pressure to perform financially. What are you gonna do to
Speaker 1: really jumps? I mean you've come out of the bottom
Speaker 1: and all that and done better. But given a d
Speaker 1: P and the challenges with Mr Ackerman and all that,
Speaker 1: is there a pressure to goose the financials? You know. Look,
Speaker 1: I think in every business you have this pressure. This
Speaker 1: company is a huge transformation if you think about where
Speaker 1: we came from with billion dollars of that significant losses
Speaker 1: in the private equity space for a long time, one
Speaker 1: of the largest I P O. Still since October two
Speaker 1: thousand and fifteen, have transformed the company financially, growing the
Speaker 1: top line, improving the bottom line, expanding margins. I mean,
Speaker 1: we're going to continue to do what we have been doing. Fritzy,
Speaker 1: we don't care, we just want Are you going to
Speaker 1: create jobs in Manhaman? We're going to create jobs around
Speaker 1: the country and around the world. Yeah, oh see how
Speaker 1: he missed that? Did that? Frenzy? Where where guys, there
Speaker 1: is it? You know? Is it back office? Is it?
Speaker 1: What kind of jobs will you create? Are the quality jobs?
Speaker 1: You know? I'm hoping that the cyber related profession is
Speaker 1: a definitely an opportunity to create jobs. We are actually
Speaker 1: helping all of our merchants do the same. I think operationally,
Speaker 1: there are ways to continue to do things more and
Speaker 1: more efficiently. So I think that you know, those are
Speaker 1: those are opportunities to eliminate roles, while on the other side,
Speaker 1: the front end of the house their opportunities to expand.
Speaker 1: I had been three bad uber charges on my Chase
Speaker 1: account this weekend. I was going to call Jamie Diamond
Speaker 1: and complaint. Could you get it fixed for him? I
Speaker 1: think you should call Jamie, He'll help you. Call Mr Diamon.
Speaker 1: Very good, Thank you so much. Guy Ciarello with us
Speaker 1: with first day of Corp their president, moving the ship
Speaker 1: forward and really interesting within all the bitcoin and cyber
Speaker 1: currency is well to a great part of the Keene family.
Speaker 1: Francine September nine, two thousand and six was one of
Speaker 1: the darkest days in the history of mankind. This is
Speaker 1: when Marshall Field and the name went away of a
Speaker 1: building that was the fabric for part of my family.
Speaker 1: We're on it to bring you on this cyber what
Speaker 1: was it Cyber Wednesday, Cyber Monday. It reaches Monday branding,
Speaker 1: Geared Storage, Gerald Storch, which was if you know its history,
Speaker 1: Toys or Roast, Target and Hudson Bay and the rest
Speaker 1: of it. Stop it. Did you ever walk around the
Speaker 1: Marshall Field store at night when the lights were out?
Speaker 1: What a wonderful storage. You described the experience of the
Speaker 1: third largest thing in the world. Amazing, amazing building on
Speaker 1: State Street in Chicago. There and we bought it when
Speaker 1: I was at Target, and we set about to renovated extensively,
Speaker 1: bring back the old heritage. We hung the largest American
Speaker 1: flag in the world in the atrium because that's what
Speaker 1: they used to do. Bring We brought back all the traditions.
Speaker 1: What a beautiful, beautiful old building and what an enormous place.
Speaker 1: And talk about experience in retail, that was an experience
Speaker 1: that that's a nostalgia GM and you know the the
Speaker 1: just the Midwest retail, the Christmas Story, the comedy about
Speaker 1: the department, that's a nostalgia. It's all gone. I'm on
Speaker 1: my iPhone X buying something right now, do we need
Speaker 1: your world of nostalgia anymore? Well, my world includes the
Speaker 1: Internet and the Internet. It's a technology just like electricity,
Speaker 1: and we all use electricity in our businesses. It isn't
Speaker 1: just the exclusive domain of the electric utility companies. And
Speaker 1: so we're just at the very beginning of e commerce
Speaker 1: and of the Internet. It's going to change dramatically. So
Speaker 1: what we see is the traditional venerable bricks and mortar
Speaker 1: companies are doing a pretty good job of starting to
Speaker 1: bring the Internet into their businesses. Commerce is still done
Speaker 1: in the physical location. So what's gonna happen in the
Speaker 1: future is every transaction will have an Internet component, Internet
Speaker 1: enabled to one or the other, or you'll buy in line,
Speaker 1: pick it up in the store. But it doesn't mean
Speaker 1: we don't need bricks and mortar locations. We just don't
Speaker 1: need as many of them as we have now. So Jerry,
Speaker 1: when you good morning first of all from London, more
Speaker 1: you say we we still need bricks and mortars. This
Speaker 1: is what kind of like a showcase, you know. So
Speaker 1: I went to a supermarket for like the first time
Speaker 1: in like three years yesterday, um, and it was a
Speaker 1: lovely experience because everything I do is online. But do
Speaker 1: I have time to go back? Probably not so, Jerry,
Speaker 1: Is this when when people want to just, you know,
Speaker 1: do something different with the family. Is it a kind
Speaker 1: of show and tell? Or do you think people at
Speaker 1: some point will be fed up of shopping online and
Speaker 1: go back to bricks and mortars. Oh, I don't think
Speaker 1: it's getting fed up. I believe the internet is is
Speaker 1: revolutionary and it's transformational, but it's not transcendent. It doesn't
Speaker 1: mean it has to replace everything. So it's not just
Speaker 1: going to have a good time. It's also going to
Speaker 1: try it on to make sure that it fits before
Speaker 1: you buy it, so you don't have to go through
Speaker 1: buying twelve different sizes and returning the ones that don't fit.
Speaker 1: It's going to learn new things that you might not
Speaker 1: think about unless you walked in there. It's going to
Speaker 1: get a media gratification to have the product instantly able
Speaker 1: to walk out with it, and don't forget it still
Speaker 1: has superior economics to the online channel. This is what
Speaker 1: people forget when you when you buy something online and
Speaker 1: ship it to the home for home delivery, it's enormously
Speaker 1: expensive and this is why most companies do not make
Speaker 1: money on the physical home delivery of goods that are
Speaker 1: ordered on the Internet. This is kind of the dirty
Speaker 1: little secret of the Internet right now. But Jerry fits luxury.
Speaker 1: I mean, if you need a shop on you know
Speaker 1: here Old Bond Street or New Bond Street or Oxford
Speaker 1: Street in the US on Park Avenue, it's going to
Speaker 1: be more expensive than certainly getting a warehouse in New
Speaker 1: Jersey where you can just keep the stuff and ship
Speaker 1: it out. Yeah, but those luxury products are not going
Speaker 1: to sell online in that fashion. They want you to
Speaker 1: have the whole surround, have the high service, and you're
Speaker 1: gonna want the service to If you're going to spend
Speaker 1: a lot of money for something that's high luxury, you
Speaker 1: certainly want to know the person you're buying it from,
Speaker 1: have that kind of service, have someone who knows you
Speaker 1: who can help you pick it out. But the Internet
Speaker 1: is amazing, it's fantastic, and it will grow, but it
Speaker 1: will be integrating everything. Okay, down the income statement and
Speaker 1: now we're talking to Jerry Storg financial guy, which is
Speaker 1: really what he's famous for. Mr Londgren down in the
Speaker 1: Herald Squares making eleven twelve cents in the dollar he's
Speaker 1: cleaning basis, his clock basis is lucky if he's making
Speaker 1: nine sense, but as well, nobody cares since when is
Speaker 1: your business based on this sales growth fiction of Amazon
Speaker 1: versus valuing companies based on cash flow or something that
Speaker 1: on the income. There's no doubt that that Jeff has
Speaker 1: done an amazing job at Amazon, and people are betting
Speaker 1: on the future and what he's done, and so at
Speaker 1: some point, though, everybody has to make money. Now he's
Speaker 1: making a ton of money on the cloud. In other ways,
Speaker 1: it's helping to sort of cross subsidize what's going on
Speaker 1: in retail. Eventually, though, the bricks and watar retails will
Speaker 1: be smart. He'll be smart. You know, he bought Whole Foods,
Speaker 1: And you're gonna have these combined models of bricks and
Speaker 1: mortar and the Internet that are economic to operate, both
Speaker 1: for Amazon and for others. Is Huts is Hudson Bay's
Speaker 1: company and the others. Are they going to eventually make
Speaker 1: revenue growth? I mean at the top line. That's as
Speaker 1: you just mentioned, that's the great differential. How do we
Speaker 1: get back to nominal GDP growth in retail? You know,
Speaker 1: retailers in general can grow and it will be a
Speaker 1: mixture of traditional bricks and mortar sales and online sales,
Speaker 1: and it won't that we are in the Roman normal
Speaker 1: numbered pages of the book. On the internet, it will
Speaker 1: not look anything like it does today. There will be
Speaker 1: so many different combinations and integrations of the Internet with
Speaker 1: the stores that you will not recognize it. This notion
Speaker 1: that the Internet is for home delivery will look as
Speaker 1: antiquated as wearing a ruffled shirt. No wig does today.
Speaker 1: Do you have a Hudson's bade brain blanket on a
Speaker 1: bed at home? Do you like you have like a
Speaker 1: ginormous king size Jerry Storge badd and you've got like
Speaker 1: the green, the red, deal orange, the yellow and the
Speaker 1: black stripe. By my secret is that we don't use
Speaker 1: a blanket. You don't use a blanket. But you know,
Speaker 1: the the uh, the future is very bright for retailers
Speaker 1: who make rapid change in this environment. And you see
Speaker 1: a lot of successful retailers, even those that are principally
Speaker 1: bricks and mortar, who they're offering the right value property.
Speaker 1: Someone like t J Max with a forty five billion
Speaker 1: dollar market cap, it's worth more than the entire department
Speaker 1: store sector combined Costco doing very very well. Is it
Speaker 1: on Canadian that the Hudson Bay blankets made in England.
Speaker 1: I don't know what that's about. Thank you so much.
Speaker 1: We have to do this again. Don't be a stranger.
Speaker 1: Jerry Storch with the Storch Advisors this morning on his
Speaker 1: Hudson Bay on his martial fields. Thanks for listening to
Speaker 1: the Bloomberg Surveillance podcast. Subscribe and listen to interviews on
Speaker 1: Apple Podcasts, SoundCloud, or whichever podcast platform you prefer. I'm
Speaker 1: on Twitter at Tom Keane before the podcast. You can
Speaker 1: always catch us worldwide. I'm Bloomberg Radio