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tv   Bloomberg Markets  Bloomberg  August 12, 2015 10:00am-11:01am EDT

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fears that china's yuan intervention could spark a new currency war. analystsme in below estimate for macy's, cutting the sales forecast for the year. macy's claims a strong dollar and inventory backlog. you'll hear straight from the ceo. sinks as well-- as the saturating the chinese market. the stock is trading at its post ipo lows and now jack ma is announcing a buyback. matt: good morning, i matt miller. erik: overnight, the chinese yuan devalued by an additional 2%.
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the ripple effects continued through financial markets worldwide. that's have a look at what is going on with u.s. stocks. the exchange that is new york stock exchange and the nasdaq open for business officially about half an hour ago. here you can see the s&p 500, 2064. declines were little more accelerated in excess of 1% on the dow and the nasdaq. quick ship to europe to show you how those markets are faring considerably worse on the euro stocks. matt: gloom and doom. .rik: 3.2% the list goes on. not just germany or france, you can see it in spain and italy and -- matt: it is not just the chinese currency move, it is what that says about chinese government's fears and look at the retail picture, alibaba growth's slowest rate in three years. macy's --
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>> still 28%, mind you. matt: falling sales in china. in some markets, they are shanking. take a look at some currencies. buy 6.4yuan, you can for one dollar. the malaysian cell for the first time since the asian financial crisis. you can buy more than four for dollar right now. ." these are all quoted in dollar terms. you see the weakening looks like an increase. matt: when it goes up, it is going down. , 193 more than you could buy yesterday. the dollar is getting stronger in all of these currencies are weaker. since 1998.st level doom and gloom.
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let's have a look at what is making news this morning. we will begin with alibaba. matt: shares down big after it posted sales that rose at the slowest pace in at least three years. revenue is up 20%, but rising at an average of 56% for four years all stop alibaba says over the next two years, it will buy back as much as $4 billion of stock. exceededbile revenue pc revenue. i think this is a good transition to the mobile and also we made a big investment in sony, the largest consumer electronic chain. i think all of these signaled that we enjoy a healthy growth and we will create more value to our customers. erik: shares down 30% on the year. the decline has wiped out more than $100 billion market value.
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the cost cutting promise after the merger of craft and heinz is kicking in. the food giant today announced 2500 jobs inon of north america, about 5% of its combined workforce. the merger with accommodation earlier this year, driven by warren buffett's and 3g capital in brazil. known for cost controls. drug maker lacks shut down a plant that discovered rick perry a that caused -- bacteria that caused legionnaires disease. routine testing found the bacteria in a cooling tower. 400 employees who work there have been told to stay away into the towers are cleaned up. the plant produces inhaled drugs like those for asthma. guidance. raising its finally, in up arrow story. expecting all three to increase in 2015. in the next three years, following its takeover of directv and two mexican wireless
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companies. now looking for adjusted eps of 262 22 68. the whole range above the estimate on the street of 257. macy's says second-quarter sales unexpectedly fell. bases relied on discounts to clear seasonal inventory that had been delayed at west coast ports. having its forecast for the year saying revenue is likely to be flat. we will have the ceos take from 10:45 eastern.at stephanie will interview the ceo of macy's. ge has sold off another chunk of its financial finance business, capital one has agreed to buy ge's health-care finance unit which offers loans and mortgages and businesses such as sourcing homes. the price is about $9 billion. capital one is best-known for its heavily advertised credit cards will stop the firm is now the seventh largest commercial bank in the u.s. those are just some of these
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stories that we are following for you. a lot of news today. a lot of m&a. erik: it feels like doom and gloom because what the chinese did was somewhat unexpected. it came with at least the magnitude, perhaps, was unexpected and we have seen it for a second day. investors expressing themselves through financial markets are trying to respond. the range opened up that there will allow their currency to trade to be a real range from the day before and then they panicked when it continued to slump. they intervened with selling dollars. erik: we can put that question. like greek and is sitting beside us. he is our stocks editor. sitting besideis us. he is our stocks editor. do we proceed? know the chinese intervene
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in the currency market, is that a sign of panic or just an effort to try and moderate the devaluation? >> i would be more tempted to say moderate the weakening. the way we think about it is, it is a signal for a change and it they pullmany levers to stabilize the economy. managedal then is weakening over the course of time. we will see how far they let it go. the history of chinese currency policy has been to have long periods of sustained moves, clearly, the past 10 years it is been more on the strengthening side than anything else. as we said earlier, can buy about 6.4 for one dollar. let's look at the long-term chart of the trade. the last time we saw a move like
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2008, 2009, right? >> and that was in the bit -- midst of a difficult time from a global perspective. the point that i would take with that chart is, number one, it is not just the dollar. we're all accustomed to thinking about the dollar. but the yuan is more than that. you have to think about, to japan -- japan has its issues. europe has its issues. there is slowing in other countries in asia. has been strong along with the dollar. the policymakers in beijing has said enough is enough. let's go managed the other way. matt pointed out moments ago, we have the yuan to evaluating at a time there are a number of other perhaps even more reliable signals about the slowing pace of the chinese
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economy, sales of high-end cars, for example. what inferences can we draw from these various data points? >> there are two things at play here. there is the concern that china's growth is slowing and that this move was a reflection of that. there is also the concern that come as you said, this was an unexpected move. it is basically causing volatility that a lot of people cannot expect. field, heon market said consider all the risk models of low investors and trading firms and they've all just in thrown in total turmoil in the last couple of days. it is not just the dollar versus china's currency. look at the european currency. erik: even more against theu. >> the euro is stronger against the dollar. the swiss is that more than 1%. it really just froze into the trash can all of these risk models that a lot of people had,
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basing their decisions on and basically, a stable china currency. the question is, does that volatility -- is it just a flash in the pan? the it work itself out and markets will settle or is it strong enough to have an actual impact on the economy in an of itself? but can this much financial inmoil, 150 billion dollars market capital lost from apple since february, is that the type of thing that can jump out of the markets into the real economy? matt: you can have an effect on the fed. two days ago we were looking at 56% chance that janet yellen would raise rates in september and today we're looking at something like 40%. don't we have a chart of said fund futures fed fund futures?
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i think we do. you should see about a 40 in change percent chance of janet yellen will raise rates. over the last two days -- is a 40%? reduce that by 16%. it is affecting the fed. erik: 42% as we speak. >> there is a lot of uncertainty. the fed hasn't said a lot about china and how that factors into their decision-making, so it is a great question. it is surprising to see that big of a drop in those rates. lot: the fed hasn't said a about china and china has upset a lot about the fed. wonderould we believe whether part of china's effort is to prevent the fed from raising interest rates? >> i would take the argument of, no. i think chinese policymakers are focused on what do they need to do to stabilize growth at a reasonable targeted level. they have dropped rates. we expect them to drop rates more. they are put in place policy
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initiatives to help ease the downturn in housing, which is now starting to tick up. this is another method. monetary conditions are a great barometer of how easy it is to do business in a country. monetary conditions have been quite tight and china, in part because of a strong currency. the flipside of this is, this essentially tightens monetary conditions in the u.s. and that is being forced upon the u.s. because of china and other recalibratingen versus the states, then part of the interest rate hike that the fed is considering has only been done for them. erik: we thank you very much. he is in hong kong and our stocks editor mike regan here in new york city. matt: coming up alibaba shares
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down as much as 8%. pledged a the company $4 billion share buyback. we will hear from the ceo on what is wrong. ♪
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matt: welcome back. i'm matt miller. erik: i'm erik schatzker. matt: joining us with a look at what is going on in the market here this morning. the redajors are all in this wednesday morning. and they are all at session lows , extending losses from yesterday and following asian and european shares, this is really in large part a reaction
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to china devalue and its currency twice -- the valuing its currency twice in the past few days. at a six-month low. down by 1.4%. currently looking -- now past the 200 mark down. it puts the dow on pace for its worst two-day drop since late january. the s&p and nasdaq falling to a fresh one-month low. looking to individual movers in the go to, fossil. it is down by two point 2%. among the worst performers on the s&p this morning. earnings were out after the bell tuesday. for the most part, those numbers were not good. shares are reacting at the --est level since of ember november of 2010. the stock is paring some of those major losses. it was done as much as a percent right after the open. the second quarter revenue came in worse than expected. 740 million versus an estimate of 750 million. big gainer on to talk about,
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fidelity national. it is up by 6%. this is the payment services provider, jumping -- in fact, the best performer on the s&p 500 so far. fidelity says it will buy sungard data systems in a deal worth $9 billion including debt. matt: thank you for that. another $9 billion deal. a little m&a a midst the bloodshed. but stay on alibaba. the ceo daniel chang spoke earlier with emily chang. they talked about how the company plans to reverse the stock slide. i think this quarter, we continue to deliver a stronger 36%lt in our group i year-over-year in a revenue grew by 28% year-over-year.
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specifically, we make very good progress and mobilization for mobilest time, our revenue exceeded the pc revenue. i think this is a good transition to the mobile and ino we made a big investment sony, the largest consumer electronic retail chain. i think all these signaled that growth and welthy will create more value to our customers. talk about the investment and sony. this gets you big and off-line commerce, the biggest deal alibaba has made. chinany customers inrural do expect to get as a result of this deal? >> the investment marks our commitment to our on the channel strategy. we want to create a unique premier experience with sony to
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integrate the online/off-line experience. as you know, sony has over 1600 off-line stores. they have over 5000 service stations around the country. store in will open a marketplaces and they will bring a large selection of products of home appliances. and i think the customers will like this. sony has a ready built up extensive network. to date, they will open a network to the merchants and we can work with sunni to developer the premier services to the customers. emily: there's a lot of concern, daniel, about the chinese -- howent to valuing the worried are you that demand is softening and china?
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are you seeing any impact in your ability to promote global brand to chinese consumers? >> well, we always closely monitor the chinese economy and consumer behaviors. as a report of this quarter, we have active buyers of 367 million. i think each buyer makes purchases an average of 50 times a year on a platform. this demonstrates the stress of the ecosystem and people by large other product for their daily lives. people come here not only for specific shopping purpose, they come here for lifestyle. we're confident for the long-term growth and we will continue to closely monitor the consumer behavior and china economy as a whole. but we're confident for the growth. emily: as i understand it, the chinese government is now is insidelly's office
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-- police offices inside internet companies including early bob a. what can you tell us about this? are there police officers working inside alibaba right now? >> as a company that has a huge and some are base and services millions of merchants, we work closely with the government and to follow the government policy regulations. and we will continue to do so in a make sure we are in compliance with the laws and regulations in china. from that was daniel zhang alibaba, which is down as much as 8% today, even after promising a $4 billion by. still ahead, when your boss once to know your heart rate. ♪
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matt: the future of the high-performance workplace is signs place full stop
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shows hormones affects behavior and employers in the u.k. are taking advantage. hedge funds, banks, consultancies are installing tracking systems that use biosensing wearable devices to link human behavior to business performance. erik: ok, it is science. so the initial reaction for most people will be, what on earth does in employer need to know my heart rate for? why should an employer be tracking my health, which is for many people, a very personal thing? the more i thought about it, the more i thought, this makes sense. there's no reason you wouldn't kinds team to know these of things from a performance athlete, particularly professional athletes, and if you believe your employees, more or less, fulfill the same role that a pro athlete does, the maybe this is a -- isn't a crazy thing after all. matt: i could see what you want to hook up heart rate monitors to your traders, but you could
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use the information -- erik: just to find out how bad of a hangover they brought to work? are you referencing me? matt: you could use the information to the harm -- you could say, look, you have -- i can tell you have you are in bad shape because your heart rate is out of whack on a daily basis. not just because -- erik: it has to be more sophisticated of that. we're not talking about a jawbone or fitbit, but something more sophisticated. there are a number of companies in this business, including a clear and apply technology -- --aren technology matt: you could wear one of those on the back of your neck. that's not creepy. it is totally creepy. erik: that is where the chip was implanted. matt: i feel like the end times are upon us when you wear something like that. there is a trade-off to be
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made. if you want to work for anyone of the hedge funds that are beginning to employ these technologies, you have to be -- there is some conversation to be had if you're successful, but, yes, you have to be willing to play. you have to be willing to give up something, like i say, others might feel quite private about. matt: i think a lot of people already give up their fingerprints, so it has started. erik: i gave up my fingerprints to the u.s. government. i gave up my fingerprints at bloomberg. and who knows what other government. matt: this is where i leave you. we will see you back here tomorrow. market day continues. ♪
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erik: matt: welcome back.
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i matt miller. we have read across the board. our markets are not faring so badly when you put them next to european markets. but we are moving to session lows now. dell jones off 248 points. -- dow jones off 248 points. down.p and nasdaq also europe, butloss in only about 1.5% here. i want to bring breaking economic data in commodities. u.s. crude oil inventories are out and we see a drop of 1.6 8 million barrels. be bad news for the price of oil as well. you can see the change. let's take a check of nymex crude if we can pull it up. you can see it is up about $.23 a barrel. but at 43.31, nymex crude down
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at 43.31. it has been rocked as well as brick crude holding well -- brent crude holding well under 30. 49.44, so under $50 as well. top headlines this morning, hillary clinton has agreed to turn over the private e-mail all secretary of state. the democratic presidential front runner has told aides to give the server to the justice department. authorities want to know whether clinton sent or received classified e-mails through nongovernmental server. former banker ellen pao has appealed an order she must pay part of for old firm's legal costs in the 60's from a nation case she brought. she lost the case and a judge ordered her to pay $276,000 in costs. awardl give up the cost
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if she drops her appeal of the verdict. new england quarterback tom brady and nfl commissioner roger goodell are in court today over the deflategate scandal. federal judge wants to talk about settling the case. radio's appealed his four-game suspension in the matter that he ordered the deflation of footballs in order to win the super bowl. those are just some of the top stories we are sharing with you at this hour. a lot going on. there are -- there is a market route going on across the world. officially entered a bear market , lowest level since 2001. stocks being pushed down by locomotive the prices and china's falling yuan, especially immediately be msci emerging markets index down more than 2% over the past two days. covering for bloomberg news joins us now. when you say this is mostly due interventione yuan or have commodity prices just been battering the emerging-market stocks? --we got a lot of merging
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moving parts in emerging markets. for the whole year it hasn't been lucky. matt: and less your short. >> see of accommodation, a strong dollar, the specter of an interest-rate rate hike in u.s., which is going to take money out of risky assets, you have the specter -- matt: less likely to happen now. >> we will get there. and yet the prospect of a slowing growth in china and lower demand for commodities. it has been a whole confluence of factors that a been bad for bridging markets. been depreciating tremendously throughout the year. it is knee-jerk to what is happening in china is adding to that. matt: talk about what is happening in china. this latest currency intervention is only one of the levers china has tried to pull .o stop drop in its markets
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commodity prices and been affected greatly by that. >> the question of, are they doing this to revive growth in the country or doing this as a part of meeting the imf requirements to become a reserve currency. matt: doesn't that seem less likely now that we see a little but if you're the chinese interventions? >> that intervened, so it shows they don't want the currency to fall off the deep bed. and if you want to be a reserve currency, you cannot be volatile. if they're going to be doing this, and they have a little while, they need to make a gradual adjustment to a free market moving currency. you can't just do it in one fell swoop, ok, we are now free market currency and let it do whatever it does. it needs to be a gradual adjustment. that is what they are showing. matt: than the argument there is a currency war and definitely not alone in such a countries are going to competitively divine currencies in order to sell more goods. >> right, the race of the bottom. we will see what happens. a lot of banks are waiting to
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see what happens next in china before involving in this. countries export to china that are -- already have suffered a tremendous blow to their currencies, them needing to maybe catch up, and then also countries that compete with china like korea trying to become competitive. race to the bottom, it is not going to indwell. if china is trying to do this, you have this competitive depreciation throughout the world, the results are going to be diluted. matt: some countries obviously have been helped by the fall of the currencies. you point on going on for a long time. carmakers. japanese carmakers of had a huge advantage because of the weakness in their currencies. is it going to be the same for other emerging-market countries? >> you don't want too much volatility. you have seen some and central-bank stepping in to jack up interest rates or end loosening cycles to keep that. now this china thing is a whole other added element.
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china has been a pillar of stability, even in 1998. they have been a color of stability. this is a total game changer for a lot of these countries. they need to see how weak it gets. they are trying to balance a weak economy in a very volatile exchange rate and potentially high inflation and a lot of these emerging market economies. it is a trade-off that a lot of central banks are dealing with right now. matt: unfortunate, it cannot be that volatile. thank you so much for joining us. still ahead, the chairman and ceo of macy's terry lundgren is talking earnings after missing the streets estimates. stay with us. ♪
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welcome back. we are one hour into the markets a. to kick it off in asia, losses started their and they continue across the board. the shanghai composite and nikkei dropped more than 1%. hang seng down over 2%. the chinese yuan fell sharply after yesterday's surprised devaluation was suffering its biggest two-day loss against the dollar in two decades. stephen engle filed this report from hong kong. >> this was the first time beijing used its revised market-based methodology for setting me yuan's daily reference rate for which the currency can trade 2% on either side. that fixing rate was set lower wednesday in the currency fell sharply. the biggest two-day loss against the dollar in more than two decades. many regional currencies have fallen as well unfair china will lead a new currency war to aid its exporters, vietnam and
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reaction whiten the trading band on its currency. china central bank says there's no economic basis for a constant evaluation of the yuan. matt: thank you. now let's get to mark in london. i can't help but feeling i'm watching something historical. bart: for shares here in europe, i mean, the biggest a client since october. china very much continuing to cast a shadow over european stocks. the two-day decline for european stock markets for 4%. that equates to 450 billion euros. of red.sea that is how the whole story. these are the individual stocks that are really taking a hammering from their exposure to china, the weaker currency lives the value of their products which their china sold to chinese consumers. bmw, look at that, autos, by the way, biggest two-day drop since november 2011. 30 billion euros.
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biggest luxury goods company in the world. 10% tech line over two days. 9 billion euros has been lost in the last couple of days. glencore, miners in the last two days, have had their biggest fall since 2011. in the air from the mining industry in the last couple of days. the cousin of this, this chinese to valuation. where's the money going? i tell you, it is going into the european bond market. one bond market you want to watch today is the german bund, the 2-year note, the yield intonuing to head deep negative territory. in fact, fl to a record low today. the u.k. bond market is worth watching as well because rate expectations in the u.k. have been pushed out by the chinese news from april to august next year. that is ensuring bonds are well in the u.k. this is fascinating, the euro is
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up for the sixth consecutive day against the dollar. it is one of the haven currencies. that is its best run since april. that rise, that 1% rise is the biggest rise in two months. matt: thank you. in new york, we're hitting session lows, extending losses as you were speaking following europe as well as asian shares. this is in large part a reaction to china's currency devaluation over the past two days. the dow has now fallen to a six-month low. let's check these numbers. the dow is down 1.3%. the s&p is down by 1.3% and the nasdaq is down by 1.6 percent. the s&p is already sing its worst two-day drop since january. the nasdaq is down to a fresh one-month low. and there is also further sign the dow may be headed for a longer-term decline to stop this year is the gpo function if you want to follow along on your own terminal.
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we talked about this yesterday. this is the dow death cross. i will say day too. basically, the 50 day moving average which is represented by the pink line has crossed underneath the 200 day moving average represented by the yellow line. when that has happened in the 2007, the 2011 and dow has fallen even further. today we already know we are seeing that fall. you can see more if you are a bloomberg terminal subscriber. 'sth china slowdown and yuan devaluation hanging over the markets, take a look at some stocks that measure exposure -- major exposure. apple is down more than 2%. paring some of those losses, now down 1.5%. extending his life from july 21 when it announced worse than expected iphone sales. yum is getting sour, down by nearly 5%. this is at its lowest since april 8. yum! brands have more than 50% exposure to china.
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as much as i love it, i cannot eat it enough to bring the stock back up. matt: don't the chinese have a craving for pizza hut they can't be satisfied for chicken that they need k of c? michael regan thank you very much, now macy's shares down by more than 4% this morning after posting second quarter profit that missed estimates. blaming the stremme -- blaming the strong dollar. terry lundgren with stephanie ruhle. disappointing numbers, though i'm going to say i have all the time in the world to buy clothing, walk us through what you think we have these numbers. >> first of all, we are against the best quarter we had last year in the second quarter, so we're going against tough numbers for one. two, we took out a promotion and consumers are responding to promotions. we thought it was a good idea we would do more business before and after the promotion last year to get out and lost it off. -- lost it all.
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the consumer is very promotion-focused right now. something important is the international tourist. you're not seem international tourists shopping in america today. the dollar is so strong and prices have gone up by 30% for most currencies. we can track it by location. macy's in particular, but bloomingdale's is a very strong retailer for international consumption. stephanie: how can you combat that? you are a ceo looking at your inventory, you have consumers who are addicted to promotions, and you can't help the strong dollar. i i can't, but the good news, am going to anniversary that number in the holiday season. that is the only thing i can look forward to. i think the dollar will stay strong. as first promotion, we're gradually entering the off-price business. we're entering the off-price business at macy's. stephanie: what does that mean? >> a separate company, separate business come all buying off-price merchandise and taking
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discontinued merchandise from ac stores and transferring it to the stores. opening up six this fall season. we will compete with the nordstrom rack in her own options like that. stephanie: my fear is you're feeding the beast. nobody wants to be the secretary retail anymore. >> first of all, i just bought a company with beauty products. it does range in terms of what the consumer is doing. -- turninge consumer to trade down. i look at that and think, they are buying right now. they're just not buying in our categories. there are buying cars and houses . i am selling furniture and mattresses really well. i'm sure their home improvement business is doing well. they're just not buying apparel and accessories the way we had planned and hoped a way. that will change over time. stephanie: what do you think the
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consumer looks like today? when you look at the u.s. economy, trying to get a feel for what the real beat is, who is she? do they have money to spend? have they suddenly decided to become savers? but the been gradual, answer is yes on the second part. look at the first corner gdp growth. it was nothing. second quarter, a little better, but it is anemic. where are they spending? categories as i mentioned. they are spending, but the savings rate is very high. that is good thing long-term for the consumer and eventually, history repeats itself, we will get some of that savings. a right now them chosen to save their money as opposed to spend it on discretionary products. my sense and believe is very strongly that there will be a shift back to purchasing and those discretionary allegories. and when that happens, macy's will benefit. stephanie: china is a big plan for you. you are expanding. he of new partnerships. , whatg at the market
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does it mean for you? >> i am just launching in going there. for those poor people going against those numbers, that may be another problem. for me, we will be launching this fall's i'm not going against the negative stuff happening that may creep problems for existing retailers. this will be new for us. 630 potential middle-class consumers by the year 2022. i want some of that. that is double the entire population of america. we would be crazy not to have some role there. to have this great venture where we are doing joint venture with the retailing group, you may know it well, and my guys who started macy's.com for us, very experienced god, he is moving to hong kong. we will sit together and build a business does he is a very experienced guy, he is moving to hong kong. we will sit together and build a business.
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stephanie: you had to be more positive on the chinese consumer. alibaba was in a much stronger position. when it ipo'd, we said, what are they going to do, purchase a movie studio or media company? now they're backed into a corner. do you need to change or strategy or at least back off? >> i just saw today alibaba as we all did that they did not meet expectations, and they're only up 28%. to me, that is a high-class problem. expectations set by others, but i hope some days i miss expectations and i am up 28%. it is relative. our industryng in at those rates. it is all relative about what the expectations have been set. there is plenty of business and plenty of opportunity. we do zero today. the opportunity for us is only incremental. stephanie: let's talk about macy's identity and how much more macy's could do. you mentioned macy's.com. if people were to go online today, do they realize -- have
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you communicated all that is there? if you dig in, it looks a bit more like a walmart and amazon just in terms of the vast amount of products one could buy. >> the product is different, but the point is the vast array of options are there. listen, we're the seventh largest internet company in america today. we will probably be sixth by the end of this year. stephanie: does anyone know? to enough people know that macy's.com is the seventh biggest internet? >> your point is valid. i'm telling you now. inattention, where the seventh -- pay internet company attention, we are the seventh largest internet company and going to sixth. we invested early into the online business. we have very robust systems that help us. i just open a fulfillment center i went to the opening in tulsa, oklahoma, 1.3 square -- 1.3 million square feet. we are serious about this business. all they do is fulfill for our
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online business. we are doing send a delivery in multiple cities. -- we are doing same-day delivery in multiple cities. we can go head-to-head with many. stephanie: given how big you have gotten, what does this mean for your brick-and-mortar business? we look at the project in brooklyn, potentially have an activist investor knocking at your door, is the real estate plague given how good you are in do you need these massive stores? >> the consumer starts with their phone, go into the store and touch the product, and may go home and fight on their couch or ipad. but that on the channel experience i think it's important. and i think over time we'll proven to be the right formula. it will not just be pure play, online only but accommodation of stores and online. as far as the brooklyn transaction is concerned, which us, fantastic project for and we have been working on this for well over a year, not a new
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subject that someone came up with. this is a great transaction. taking a 150-year-old store, i'm shrinking -- i don't need all the floorspace i have, so i'm selling my top floors. i am keeping the main store. i'm selling the parking garage. i will be able to put $100 million to rebuild that store outn and take $170 million and give it back to shareholders. and i still own the building after all that. to me, this is a great way to maximize the value of your real estate and still keep the flexibility. stephanie: the one thing i hear, whether we're talking you expanding globally, what you're doing online and in this real estate play, you are clearly a very active ceo. the headline crossed an activist investor could be standing at your doorstep, what do you make of this? the id -- the idea is, thank
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goodness, you're clearly not one of the sleepy ceos. isthank you, i think that true. i'm very involved in very active in the business. every aspect. real estate has a different valuation today than a few years ago. while the subject has been floated many times on many retailers in the past, nothing major has transacted in any significant way. there is been a couple of things -- hudson bay has done more joint venture than does sears has done something. we're going to look at these ideas. i have hired professional real estate teams from green street advisors who are well-known in lawyersstry, hired tax to make sure we understand the tax consequences of any work we might do in terms of the transaction with our real estate. they help us and guide us to make sure we're looking at every single possibility. in the end, stephanie, we're going to do what is right for our shareholders short-term as
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well as long-term. stephanie: i want to talk about the decision-making process. you mentioned brands. whether you're talking cushman or victor fung or blue mercury, i have to ask about donald trump. when you choose brands to partner with, celebrities, it has to take -- you clearly put a lot of thought into it. things have turned with donald trump in this manner has come out on twitter, macy's sucks. you're not selling his product. do you regret doing business with them? >> no, i don't. what has happened is unfortunate. the truth is, we're not going to support any presidential candidate because you can't possibly win is a retailer trying to sell to everybody. as i have mentioned, if hillary clinton comes out with a new coat line, i'm not going to carry it. stephanie: it would be more of a pantsuit. >> i won't have it even if it is a hot seller because you just can't win. company. a political
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this is the last thing we want to be involved with. that decision was a business decision, and it was related to the role that he has. it is unfortunate how it has come out, but it is what it is. stephanie: did you feel inclined to respond him on social media? >> no, i don't believe that is necessary at all, so i'm not going to do it. stephanie: do you think he's qualified to be president? >> no comment. stephanie: what is your favorite golf course you have ever played? >> royal county in northern ireland. the number one rated golf course in the world is kind valley in new jersey -- pine valley in new jersey. it is spectacular. stephanie: does donald trump own it? no. are you wearing something from macy's? >> always. bloomingdale's is my suit. my tie is hugo boss from macy's. my shirt is from macy's. stephanie: sorry, ryan seacrest.
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worn plenty of ryan seacrest. stephanie: when you hit the clubs. at nightbly go ryan with our money during the day. thank you for joining me. the one and only terry lundgren. matt: fantastic interview, stephanie. thank you for that. hopefully, you can bring terry to a club so he can worsen ryan seacrest. coming up, we are going to bring it back down. take a look at stocks plunging around the world. china's yuan intervention. stay with us for the details and implications. ♪
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♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. sanford though, and :00 in beijing. a global selloff in docs as
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china devalues the currency for a second day. will this launch a worldwide currency war? the student debt timebomb is ticking. graduates currently on three -- $1.3 trillion. republicans say will drive the prices up. pimm: where are the world's luxury travelers headed the summary? we will hear from the ways to share luxury residences. ♪ ♪ good morning. i'm matt miller. pimm: i am pimm fox. a look at how stock markets are faring right now.

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