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