worldm bloomberg headquarters in new york, this is "bottom line." in u.s.e-month surge retail sales is over. forhe road to rio worth it host country brazil? to our viewers here in united states and those of you joining us from around the world, welcome pbf full coverage of the stocks and stories making headlines today.

julie hyman joins me for a roundtable discussion on u.s. retail sales. it we begin with peter cook on capitol hill. the scramble for the leadership of the republican led house of representatives. good afternoon. kevin mccarthy is looking to move up in leadership. >> that is right. it's down to two people in terms of replacing eric cantor. it did not take long for the conversation to shift to eric cantor's loss in virginia to who would replace him as the number two. kevin mccarthy, the republican from california. pete going against sessions. he is not part of the leadership right now. he is making the case that a red state republican from the state of texas needs to have a seat at the leadership table. that is his argument. it is pretty clearly mccarthy

who has the early advantage in this race. anarthy is well-liked and is affable guy. popular among the group. he is not from one of those red states. he is from california. he is popular with the business community as well. he is someone very well known in the business community. has the early edge because he runs the whip operation right now and has a lot of contacts. early advantage to mccarthy. ofooked at the gathering texas republicans and they feel pretty confident that pete sessions will give him a run for his money. >> the position would be open as well. >> if mccarthy were to win, the whip decision would open up -- position would open up. you have the possibility that sessions could run for the spot.

mentioned,hree names one of mccarthy's chief deputie steve scalise and marlin stutzman. those are the names being mentioned most often. is a domino taking shape here. boehnerigns that john is holding onto the speaker job? >> there is no sign right now gavel isn'tehner's any doubt right now. thee elections will get leadership through the next election. there is next year -- that is when any challenge to john boehner with surface. >> peter cook live on capitol

hill. thanks. during his 15 years in office, eric cantor raked in campaign cash from wall street bonus. what do they have to show for their investment? megan hughes has been looking into that. how did congressman cantor help wall street and the business community when it comes to policy? >> cantor has certainly been an ally to the financial services community. everything from fighting. frank rules to raising the debt limit. his wife once worked for goldman sachs. he started his career on the financial services committee. there is a long history there. he was willing to talk about sticky issues that were sticky for republicans and democrats. he was willing to create a coalition of believers and create compromise, understanding that he could not get everything done. he was trying to move forward

and create progress. no mistake about it, this was a two-way friendship. you look at the numbers -- over the course of his career, cantor illion from the sector. 8.5 million dollars from finance, insurance and real estate. that gives you some sense of just how much came from financial services. some of the top contributors, dominion resources, all tria, goldman sachs and blue cross. >> what did cantor do for business? >> he was a big opponent of dodd frank. one of the republicans trying to weaken that bureau. take a look at the recent debt

ceiling but. cantor helped broker-deals to and standoffs in october and february. one of only 28 republicans to vote for raising the debt ceiling this past february, joining with democrats to get that done. that is something that big business and ceos wanted to see done. tea party groups wanted to see more concessions. cantor was their hero back in a11 when he walked away from grand bargain with president obama. he hasn't always been a compromiser. he worked with democrats on reauthorizing the export-import bank which is a big impact on companies like boeing. byt will need to be renewed september 30. that is in question right now. support, he would not republican backed reform that meant higher rates for private equity managers. even though it was backed by a republican on the committee. defeated part he

of the stock act that would have required more disclosure from hedge funds and investors. that was something his opponent campaigned on. he fought that transparency on that issue. megan hughes, thanks. house majority leader eric cantor's primary loss. charlie rose asked john heilman what this means for the midterm elections. >> there is no doubt that eric cantor lost touch with his district and spent a lot of time traveling around the country and raising money for republicans. spending time in the hamptons playing the role of the national republican leader and not tending to his business at home. attacked on populist grounds by his challenger as they a corporatist -- focused on the immigration attack. that is a real split within the republican party. also got attacked as a

representative of corporate republicanism. big-money republican. the tool of the chamber of commerce. there was a populist elements of that, to make. fort says very little ty ofber because the majori the midterm electors -- it shows republicans are energized. democrats still have a chance to come back with a message. democrats still have to find a way to change that. polls show the president's numbers are down. obamacare is still not popular. the economy is a lot chugging along fast enough. roseu can watch charlie hospital interview -- charlie one's full interview bloomberg television.

retail sales in may rose less than forecast. purchases increase in was less than expected. april's numbers were revised higher. julie, what happened? why did they take a breather? >> it depends on where you were talking about. inyou look at the two months aggregate, you are not saying as much of a slowdown in spending. there was a lot of concern in the april number initially came out showing only 8.1% rise because there have had been some .1% rise.n march -- we actually saw the april number higher today. you have had four straight months of increases in retail sales. a lot of that was accounted for by car sales.

it's been an interesting year where you are missing the man and not. >> what about the specialty retailers? >> if you are an apparel retailer right now, it's really tough. retailer, it is tough. not a lot of newness in the market right now. no big style that everybody has to run out and get in on a new gadget that everybody has to run out and get. lululemon reported today that their second quarter to date so far is lower-than-expected. >> six of the 13 major retail categories showed gains. we are not talking about a broad-based advance here. >> no. this is exactly to lindsay's point. apparel did not do as well. department stores, mass retailers, consumer electronics -- those are the areas we are not saying gains. -- seen gains. furnitureaterials and

come up things surrounding housing aside from consumer electronics and tvs, you are saying some amends there. -- you haveg restoration hardware mirroring what is going on with materials. a huge increase in profit, tripling and shares doing well today. dichotomy in what consumers are buying. >> is improvement giving any lift to consumer spending? >> it depends on where you are talking about. the concern seems to be that people may have more in their pocket. they are still spending it very judiciously. they are -- there is nothing that exciting in the clothing stores. a little bit more tangible.

--er income consumers consumers in the middle income to lower income racket, not so well for them. what does that mean for the lower end of retailers? >> times are tough. people are spending less and want to go for a deal. it means everyone has to be really competitive with prices. you are seeing people across the board slashing prices. , youu are already low don't have a lot of discount in your back pocket to add. everyone is feeling the pinch. >> if that component to this at all? do they see this and say, wait a minute? >> they are looking at this among many other factors. inflation is at the core as well as the jobs numbers. they have to be looking at the consumption portion as well.

-- thereill not really is a little bit of momentum, but it's not really super encouraging momentum. that is a very tactical macroeconomic term. we are not seeing it he'd up to the point where you are seeing consumer spending comeback. they have to be cognizant of that. we are still not there. >> i'm surprised we got great whole segment without mentioning the weather. everybody kept blaming the weather. >> you can blame it anymore. is unseasonably cool. this winter was unusual. we are back to the usual unusual. anthropology put up really good numbers. if you have the right product, people will come no matter the weather. you both so much. we appreciate it.

coming up, will american soccer get a bump from the world cup. we look at that, next. ♪

>> the world cup kicks off in são paulo today with a match between result and croatia eared the west team's opening match is not until monday at 6:00 p.m. new york time. they will be facing ghana. for a look at the world cup and soccer in of america, i'm with the commissioner of the soccer. welcome to "bottom line or ." what pressure does a host country faced by putting this on? >> enormous pressures. they have to deliver on a t with millions of people coming into town. have to move those people around and feed them and have

safe and secure environments and everything like that. >> big questions about brazil right now. what about the backlash from spending billions on the event that only lasts 3.5 weeks? it could be spent on education and infrastructure and health care? is the cost too high? >> that is a question for the brazilians and the president of the country there. they think it is a rare opportunity to take a place where the game is so incredibly popular -- >> it's a religion. for anthem, it's hard american to understand how big the sport is in result. i'm sure this will be something that will be be very popular by everybody in result. >> this talk about a world cup bump. does it translate into fan interest in major league soccer? >> it has in the past. highest rated games on

espn happen after the world cup. all eyes are turned to the sport. we have somebody players in major league soccer, 22 of them will be computing for the u.s. and other countries. ,e can tell that story integrating the sport itself with the world cup. focuses is tomain expand the mls. do you want to see 24 franchises by 2020? .hat will cost a lot of money talking about stadium construction. are we talking about private funding? >> it starts with somebody paying $100 million for expansion fee to join the league. just like other leaks, the 2 billion that was paid for the sale of the l.a. clippers, there is a price to be paid to be part of the shared revenue and to own a major league soccer team. our stadiums have been costing anywhere from $8

million-hundreds of millions of dollars. .ome of that is public money it is for the chicago fire. philadelphia, it is 85% public money. , davidct in miami beckham has decided he will fund entirely with private money. thate mayor took a pass on this week. it's the second time it happened. what went wrong? >> i don't know if anything went wrong. these things are tough. it's hard to build even when you fund them yourselves. to find 13 acres that are not used by anybody. miami, we had two sides. the one on the waterfront. -- two sites. if they will find another place to build a stadium. if you can get a stadium built, major league soccer will not be moving to miami. -- it will raise

your broadcast revenue to $90 million. that is four times what the league collects right now. how will this impact viewership and what will it mean for stadium attendance? >> it starts with three things we try to achieve in the deal. a consistent schedule, lots of promotion that is guaranteed from fox and espn, a higher profile for our league, and getting a relationship with great, powerful media earners. second moste among young people in this country. >> who do you think will win the world cup? >> i hope the u.s. will win. it is possible to have two mls players competing in the world cup.

a lot of people predicting spain-brazil. >> thank you. still ahead, concerns in the middle east on two fronts. a rising insurgency in iraq and tensions in iran.

>> we wanted you to know that bloomberg is the only business news service being offered on amazon fire tv. if you missed any of our interviews, you can watch them on apple tv. it features live streaming and on-demand videos. theng up on 26 minutes past

hour. that means bloomberg television is on the markets. a alix steel is standing by with the details. >> let's get you caught up on where markets are trading. a pretty rough day overall for stocks. the s&p picking up a bit of steam. it was really do to the choppy economic data that we have seen. jobless claims rose last week. it may retail sales were only up 3/10 of 1% -- .3%. one of the sectors in the green, the s&p, energy use to buy oil .nd the violence in iraq wouters chief operating officer has stepped down. -- put chief operating -- twitter's chief operating officer has stepped down. able toers won't be listen to lady gaga or kanye

west. that is because amazon' in universal music were unable to reach an agreement. back on the markets in 30 minutes. more bottom line on the other side of this break. ♪

will planned to my concerni fighting in iraq will disrupt supplies. they are saying they will march on baghdad. the move is raising fears about .he shiite led government with him and forced him

iran's oil exports have increased this year. she joins me now from washington. if there is a lot of concern on the hill about whether iran is violating the oil sanctions imposed two years ago. that is the $5 billion question. i say that because that is how much iran is losing every month in lost oil revenue because of the u.s. and eu will sanctions. the supply was cut from two point 5 million barrels per day to less than half of that at the end of last year. the debate we are seeing now on capitol hill is over whether since anbeen cheating international agreement went into effect on january 20. the objective of all of these sanctions is to squeeze iran's

main source of government revenue in order to force the regime to make concessions over its nuclear program. we crunched the numbers and got officials customs data from all six importing nations that still buy a ring in crude and we found that the shipments of a rainy and oil have indeed increased this year, about 20% of overall. if this trend continues through july 20, the date this deal expires, it would be a violation of sanctions. >> what does the administration say? the moment, the administration insists they are very confident that buying nations are keeping with the limits set. i ran's exports are staying within the one million-1.1 million barrels per day range. it ministration also said that it is working very hard to make sure that that figure will remain the average by the end of july. when we asked them about the

rising exports that we counted, they gave various explanations. customs reporting lag the actual shipments. they talk about seasonal variations that can make the numbers higher. thatofficials also say ship tracking was compensated by the fact that many companies list -- the two products can be carried on the same ship. a light petroleum liquid that is easier to refine and it is not restricted by u.s. sanctions. cap tools to measure and track these oil purchases in ways that are not available to us. our map showed the combined numbers appear to be up more than 1.3 million barrels. >> if this upward trend continues through the end of july, is the united states going to sanction any of iran's oil buyers? >> i think that is unlikely.

china still remains the biggest consumer of iranian energy. the reason it would be hard to sanction them is because it means we would be cutting off chinese angst from the american financial system. china is a partner of the united states in the international negotiations in getting a nuclear deal. india's purchases are also up. we have been told that come in their contracts, they have reduced their iranian oil purchases. the priority for everyone is getting a nuclear deal. congress is not happy about this and there is a strong possibility that if there is proof of sanctions busting, either the administration will have to punish the foreign banks or congress will come in and impose additional sanctions. >> what is next with the talks? >> we have the russians meeting with the iranians bilaterally. next week, we have a full weeks meetings.

both sides have pretty much dug their heels in with iran not wanting to make concessions and the other side not wanting to allow them to keep the strong nuclear program. it will be hard to get a deal before july 20 if things continue along this way. >> thank you. ica's new president took office on may. how he plans to tackle the economic and clinical challenges ahead. ♪

>> it is time for today's latin america report. intel announced plans to build a mega-lab in costa rica to test products under development. the newly elected president of costa rica visited bloomberg world headquarters here in new york. i asked him what the intel announcement means for his country. >> i am extremely excited with this idea because of the rica.vation in costa

it signifies that costa rica continues to be a trusted ally of foreign investment in the region. it increases the quality of the investment. we are now dealing with research and development issues, not only manufacturing, which indicates a y weking ground in the wa make deals with this company. >> what does this vote of confidence mean for your country? >> a record stands by itself. it is a record of opening and keeping a good relation with investors. the health of the economy, which is an important thing. sophisticated, high-tech and prizes. >> speaking of confidence, what do you and your government need to do to attract more foreign direct investment? >> we have to deal with some issues, including battering our infrastructure and improving the quality of our education, which is till very good in regional terms.

further.o improve that it also means that we have to be more willing to do things like the ones i'm doing here. are andre the investors talk with investors and assure them that we will be a new , respectful of the rule of law. which ultimately is a very important issue. >> citibank cut its 2015 economic growth forecast for costa rica almost in half to 2.2% after those firings were announced. what is your economic growth forecast for the rest of this year and next year? >> at least 3.5%. i got the figures from the central bank as i left the country three days ago. i'm very confident we will be able to uphold it as a goal. tothermore, if we are able

continue making the internal economy grow -- i mean not only costa rica itself him about costa rica in the broader central caribbean context, which is how i like to see our market. >> you promised not to raise taxes for two years. given the current economic environment and considering you just said you are expecting growth of 3.5%, can you keep that pledge? >> i hope so. i hope we will make growth -- this has been the experience of the country in the past. it one way we have decided is reform will forward the in congress so that in two years time, we have that ready to go as soon as we are able to streamline our expenses and dish were the costa rica and people that the money we have is better used. a matter of transparency i like to put forward.

>> is it possible to tackle the deficit without raising revenue? >> it is not. that is a political reality. this is why we have committed ourselves to doing that. can have the political and moral authority to tell the people that the money they have already provided is well used. this includes fighting contraband and other maladies the country has. >> the panama canal expansion project -- >> a very positive impact. we are committed to improving .he port for o we are in the process of finalizing part of what we call the northern caribbean corridor, which is a number of highways that connect the border of nicaragua with the port.

this with the enhanced traffic in the region will help us to erode our own country as part of that complex -- promote our own country. for costasidents rica in columbia. what impact is that having on the region and your relationship with united states? >> the relationship with united states remains strong. it's the biggest partner for all of these countries that you mentioned. as far as i've been able to foresee fo with my conversations with the new presidents, costa rica is the chair of the latin american-caribbean conference -- towards an intensified relationship will keep. i don't see any particular danger or turbulence in that relation, not between costa rica

and the united states. >> is there any impact from the federal reserve's decision to wind down stimulus? some countries have said they might see a ripple effect because of it. >> it is difficult not to have ripple effects of some sort. we can expect that cold to be a mild one. i hope this will not stop the objectives we have, particularly because the major challenges i see for the growth of our economy are hours. we are responsible for some of the things that need to be done in order to prevent the cold from becoming pneumonia. >> mr. president, why is costa rica in group a for the world cup? what happened? >> it's a rough draw. you get there and you know it's going to be like that. all groups are difficult.

the mostne of difficult ones. nobody said it was going to be easy. are you talking about soccer or your administration? >> i'm talking about both. it's a good illustration. rica. president of costa up next, it's estimated that result spent over $12 billion to host the world cup. will it be worth it in the long run? we look at the positives and the negatives. ♪

>> the pitch is always the same. being the host for the olympics or the world cup would mean a boom for your country's economy. just look at south africa or sochi where stadiums and olympic villages now stand empty. why did brazil think things would be any different? the country has been $12 billion on the game.

money that would have been spent on education and infrastructure. market makers anker erik schatzker traveled to brazil to look at the true costs of the world cup as we continue our special series, the road to rio. brazil is one unhappy country. for months, people have been taking to the streets in protest. some of them loud. they want education, health care, housing. what they don't want is the world cup. schools or have good good hospitals. people are complaining about the salaries. fear.e lots of it's a waste of money. lots of money. brazil is the industrial and agricultural heart of south america.

capita tripled from 2004-2012. yet, brazil still ranks 85th on th you when possible and development index. even some of the cities hosting the world cup -- i invest in manaus. i did not want the arena. i wanted to use the stadium that already existed. >> it is a jungle city on the banks of the amazon. much civilization between. there are more seats in the arena than there are in fenway park. , thishe world cup is over could be a white elephant. arena must be sold after

the world cup. somee to sell it to entrepreneur. i try to bring that money back. socially, good. economically, good. brazildy expected to win the world cup rights back in 2007. soccer is like a religion here. this is the country that although.ele and when -- and rinaldo. city officials are confident that the $12 billion preparing for the world cup was money well invested. >> is very important --

>> if the world cup does not turn a profit, the government is making sure it serves a social purpose. every day brazil plays will be a national holiday. granting the economy to a halt, all in the name of soccer. respecting -- it will be good for the tourists. >> will the world cup be worth it? brazil may not know for years. , eric seesp firsthand how brazil's underclass is suffering from policy choices used to support the world cup. our coverage of the road to rio continues today and tomorrow. stay with us. another check on the market movers is on the other side of the break. bottom line continues in just a minute. ♪

>> get the latest headlines at the top of the hour. turning on your tablet at bloomberg.com. that does it for this edition of " bottom line." on the markets is next. i will see you tomorrow. it is 56 past the hour.

that means bloomberg television is on the markets. i'm alix steel. it is a down day overall for the markets. the s&p up 14 points. it was the may retail sales numbers rising to .3%. a pullback says it is likely. we want to take a look at a couple of individual stocks for you. lululemon cutting its full-year earnings forecast. the company's founder and biggest shareholder lashed out at the company for being too focused on short-term growth. look at restoration hardware. shares of the retailer soaring to an all-time high today. growth for the first quarter. retail is the focus of today's sector report. -- take menow is

behind the numbers here. way below estimates. >> if you think about it, it's coming off of april. were looking at sequential growth. april had easter in the month. retailers int general, many have said that may was off to a better start than april. that includes macy's, dollar general, to name a few. it lululemon this morning came out and said growth was weaker. i think those are lululemon specific. it can't relay any message on the broader retail landscape. >> department stores and retailers are pretty much doing ok. electronics makers were not giving as well. >> electronics sales come if they look at it year-over-year, it was still weak.

not only do you have deflation, but that category in general is really going to online retailing. >> amazon eating those businesses away. don't focus on electronics. their main business is our peril. -- apparel. >> what our seasonal trends we can expect into the summer? thatu have to keep in mind july is a clearance month. retailers will start to clear out inventory to make room for back-to-school fashion. have mother's day and graduation and father's day. the two big retail seasons are back to school and christmas. >> margins for the summer will not be that great, either. >> probably not. if you look at the retailers, they ended the first quarter with more inventory than they would have liked. it we do expect steeper

promotions -- >> what are things you do end up liking? >> we don't recommend companies in terms of what they are doing a quick th -- >> the sectors. >> there are not that many doing well. tjx came out with not such good numbers. you have the woman's retailers that are doing ok. >> thanks so much. street smart is up next. ♪

but another tough day for the bulls. streak.day losing and get this, three-day -- three months. i'm trish regan. "street smart" starts next. ♪ to the mostyone important hour of the session. 60 minutes left to go until the closing bell today. street smart. the ron kind