>> we came into this year saying there's going to be a slow down, and that is what you are seeing. >> we are bearish now, and that is a big change from six months ago. >> the fed may be overdoing it

and therefore they may not be able to do much more the future. >> we are hoping that there won't be crashes, but hard landings i think are inevitable. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning everyone. on radio and evolution -- and television, from the world economic forum in davos, switzerland, they've announced january meetings in the dead of winter. we will see it in seven months. lisa: despite all the people to cry and they will be slipping on the ice, that seems perhaps to be a better time. it is an eventful moment. we have a slew of corporate news amid this executive gathering as people meet with policymakers. it really paints a bifurcated picture for the u.s. economy and frankly, for the world tom: macy's doing -- for the world. tom: macy's doing really well. a lot of pros saying you can't

guess a recession. lisa: frankly come of the data is not supporting it. perhaps a little bit more pessimistic when it comes to europe and other regions, but still we are seeing people spending, and that is what we saw was macy's. i think this is a really big deal. they came out and boosted their expectation for the year. and why? basically people are charging things more on their credit cards. they are buying things for weddings and beyond. tom: far more important to me is this debate that is percolating. it will be a far bigger deal for your reading over the weekend into june, and that will be the path for nominal gdp. when i saw those headlines, 14%, and then you got a forward view of 12% comp sales, that is a nominal gdp on fire for the consumer. lisa: another way of saying this

is inflation is not necessarily bad if the consumer is still spending at pace with inflation. frankly, it will look a lot better for these companies, macy's among them. what you are seeing is people coming in, going out to events, shares up nearly 12% ahead of the open. at what point do we take a look at the and say we can't get a recession if people are still charging everything on their -- on their amexes and still going to parties? tom: we do this early, 7:00 wall street time. why is target so grim and macy's so good? lisa: the same story basically with dollar general that came out. they did a bit more of a downgrade in their forecast. honestly it has to do with where you supply your parts and it has to do with the composition of the things that you sell.

that is what we saw was target and walmart, and perhaps macy's had a bit more basic mix of clothes and people are buying them to go places. tom: maybe a lift in the market. dow futures up 143, nasdaq up a fractional 0.2%, up 24 points. i'm reading this off the bloomberg terminal on my iphone. this revolutionized wall street. bitdog down to $29,000. how my doing -- how i doing, lisa? what am i doing this morning before i dash to the airport? lisa: 8:30 am, we get u.s. initial jobless claims. even brian moynihan a bank of america said you've got to watch jobless claims. you have to watch whether the labor market is loosening. we have seen a little bit of a

shift with an increase in claims, but it is infinitesimal. this to me could be the harbinger of more potential pain in the housing market. we have seen it so far in the volume of sales. we have not seen it in the prices. u.s. pending home sales for april will come out. we saw new home sales on tuesday come in well below expectations. do you see a repeat of that kind of feeling? as 1:00 p.m. you will be on the edge of your seat, $42 billion and seven your notes sold by the treasury department. i'm interested in this because this is always a disaster auction. i want to see who comes in and buys it, in particular the japanese investor base. tom: i will be doing that circle you do east of london when you have to wait three hours to get into heathrow. i'm going to be riveted to the seven year. i will look down at the charles dickens family. how about that seven-year auction?

can i just state that fancy suits, fancy bowties, you are in chanel today. it's what? 50% of renters in new york city use 50% of their income to pay their rent. that is appalling. "new york times" had that yesterday. scary. lisa: the scary part is that has been a long-standing new york city issue. now it is becoming american issue. you are seeing that, and the more prices continue to go up in the fact that housing supply is not come back on, rent is going to continue to climb, and that is what has a lot of people concerned about where the momentum is right now. tom: if you are part of global wall street, this is the bond nerd interview of the day. a conversation with ian lincoln, head of u.s. rates -- ian lyngen , head of u.s. rates strategy at bmo capital. give us a report on the sloshing

of the money given to trillion dollars in the repo space. ian: i think you are right, there's a lot of money still at the front end of the market moving around, that $2 trillion is really distorting what we are seeing in bill rates, and it has change the pricing in the front end of the market. it has people concerned about the overall functioning of the treasury market in the near term , but at the end of the day it is still the most liquid bond market in the world, and as lisa pointed out, we do have a pretty significant seven-year auction this afternoon that we are expecting will provide a good barometer of the willingness of investors to underwrite the deficit. all else being equal, the recession commentary that has been making the rounds really is defining the direction of overall rates. he saw 10 year yields peak. we are now down to 2.7 hi

percent. the twos-tens at 25 basis points, give or take. we are really moving beyond the initial stages. tom: is ian lyngen one of the people who cares about the auction? lisa: there are a lot of people do. i've even gotten letters saying thank you for telling tom the seven-year auction matters. you are reconfirming the lower for longer kind of thesis as you look out to some sort of slow down. how much pushback do you get at a time when we don't know if japan is going to come in, we don't know if china is going to come in come that we don't know if the banks are going to come in in the same way that that siren is coming into our broadcast? ian: i think what we have actually seen over the course of the last two weeks are early indication that japan are coming back into the market, if you look at the data we've got, about $7 billion of buying and overseas notes and bonds.

that follows a stretch of 16 weeks where there was about $75 billion of selling, so still an early process of getting japan back reengaged in the overall bond market, but a pretty solid sign that i expect will continue over the course of the next several months because there is this sense of yield from a, as it were. -- yield fomo, as it were. lisa: not to play the parlor game of what fed officials will won't do, but do you think there's any sense between what that your jay powell said about not being nuanced about inflation and taking a pretty hard tone and what we heard with raphael bostic that seems to be driving the narrative of the moment, which is 50 for the next two meetings, and then after that they will stop? ian: i think the fed has done a good job of signaling a commitment to fighting

inflation, but i think the bigger debate is one about where is neutral monetary policy. the way we are thinking about it is we won't know it when we get there, but we will know it when we have passed it. that is why people are so worried about the wobbles in the equity market and what that means for financial conditions because if powell overshoot's, we are going to see a material slowdown, and that is going to lead to another recalibration of forward expectations for monetary policy. that is why we are not at 3.50% tends, but closer to do .50%. -- 3.50% tens, but closer to 2.50% tens. tom: thank you for joining us. i think they had a jason bourne sighting in the valley.

anytime the number $61 billion comes by, that gets your attention. lisa: we are talking about broad, and the purchase of vmware which is coming out as we do hear more about consolidation in the tech shares and on tech space. i got to say, they have so much cash. what are they going to be doing with it now, given the fact that they are looking at still a growing economy in the longer-term and still a transition to the tech industry? tom: this is really important. i harking back to microsoft and activision. activision was like, we are doing business with microsoft, and microsoft said we like this. whatever the politics was. maybe's -- maybe the same thing here. but what is it say about next year given the tech turmoil that we have? lisa: there's some people who think it will actually allow more sales because of what chuck robbins was saying yesterday, where he basically was saying for so long, these founders had

so much hubris and thought that their values were so high that they would not sell. now they might be starting to get willing to sell. tom: we will never have robbins on again. he refused to give us a signal. lisa: he looked at us like, are you kidding? tom: very important. look for our technology coverage across bloomberg intelligence on vmware and broadcom. futures up 25%. -- up 25. always an important conversation, geoffrey yu, bny mellon. ritika: keeping you up to date with news from around the world, with the first word, i'm ritika gupta. huge transaction in the tech industry. broadcom has agreed to buy cloud computing software company vmware. the price, about $61 billion in cash and stock. vmware created the market for a type of software that lets businesses run corporate

networks more efficiently. in china, the premier warned of dire consequences if officials don't move decisively to prevent the economy from getting worse. he told thousands of officials it recession must be avoided. apple is taking a conservative stance when it comes to building iphones this year. bloomberg has learned the company is asking suppliers to assemble roughly 220 million of the devices in 2022, about the same as last year. the mobile phone industry has got off to a difficult start to the year. production estimates are down across the board. the massacre at a texas school has revised -- has revived discussions of so-called in-flight laws. those laws allow police family members to ask a court to temporarily remove firearms or prevent their purchase by someone considered a danger. still there are divisions between the two parties over the specifics. in the u.k., prime minister

boris johnson's government will lay out a plan to help britons struggling with the cost of living. chancellor of the exchequer rishi sunak will unveil a plan to help households. . global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ready. this is bloomberg. ♪

>> sweden is in a different position. we don't have dependence on russian oil or gas. we have a 100% fossil free

energy system in sweden. but we get affected anyway because of the joint writing system in europe. so the prices are very high. tom: good morning everyone. from the meetings of the world economic forum in davos, switzerland, lisa abramowicz, tom keene. jonathan ferro is off. thrilled you are with us for the perfect day in switzerland. we had torrential rains, clouds, we had the hurricane the first day as well. it is really beautiful. you get why people come here in the summer. lisa: i grew up reading heidi, and i understand the flowers and grass. i could go on. tom: it has been a very successful spring meeting here in davos. right now, annmarie hordern with us. we are going to reset here on what is not being discussed in a china free davos, and that is

whither china. annmarie hordern on finally, mr. blinken will give a speech on china. describe the finally as we hear the speech today. annmarie: this has come from months of negotiations. 16 months they have been talking about this china policy, and in a speech long-awaited because's terry blinken got covid. this is something -- because secretary blinken got covid. this is something many have been waiting to hear, but there's not going to be anything too bold in this speech. it is likely just going to talk about a lot of issues and the strategies the u.s. is already using when it comes to china. they will emphasize strategy at home, how do we make innovation better in america. t-- in america. two, strengthen allies. and finally, making sure they can compete financially and

militarily. but there will not be something new and bold they have been hiding from us over the past year and a half. lisa: how much has the conversation shifted as we hear from premier li coming out and downgrading the expectation for china, talking about the unemployment rate near record highs? how does that shift the conversation from the u.s. standpoint? annmarie: i think the u.s. still sees long term china being this mega powerhouse in the economy that they need to compete with, even though obviously this covid zero policy and what you are seeing in china right now in terms of the economics digit that and during their growth long-term. the united states certainly sees china as the country mating to compete within the end of pacific, and secretary blinken today is going to make that point. even though there's been a lot of time and energy in this administration used towards making sure are focused on ukraine, they still want to make sure they are communicating, that they are still very much

focused on what is going on in the end of pacific and in china. -- the indo pacific and in china. a lot of capital in asia is going to be focused on this. singapore is saying don't want bifurcated policy. the premier saying if the u.s. and china continue on this path, they could get there. they want more integration of china. we did not see that on the president's trip. tom: the dominant factor is this is one of the few, we are all in the same page views of congress. does mr. blinken adjust his speech and his strategy based on china or based on congress? annmarie: congress has not changed in terms of wanting to talk tough on china, but there is some notable interesting development happening in washington, d.c. the president said when he comes back to the white house he is going to sit down with treasury secretary yellen and look at these tariffs.

a lot of economists are saying if you want to get inflation down, it is the number one domestic issue. one way to do it is to live these tariffs. now you have a bipartisan letter signed by lisbeth moran, as well as the likes of mitt romney, say and do not -- i elizabeth warren , as well as the likes of mitt romney, say and do that. but you will really not -- say and do not do that. -- saying do not do that. this white house really wants congress to pass that chips act lisa: this is about -- that chips act. this is about innovation at home. tom: once again, america did not show up. the secretary of commerce is here. gina raimondo. maybe there's a few others i have not seen. but i want you to explain the reticence of any government of the united states of america to show up to engage the global

conversation at davos. why are republicans, why are democrats reticent to do that? annmarie: i know also climate envoy john kerry was there because you had an interview with him, but you're right, there's been low numbers that we have seen in the past. american presidents really don't want to go to davos. this is very much seen as an elite club for the rich and powerful, and how does that track with domestic policies? whether or not this administration or prior administration, every president is dealing with some sort of domestic issue, and i think this president knows that would look poorly on the president to be hobnobbing with the rich and elite in this tiny swiss mountain town that is very difficult to get to when he is dealing with higher gasoline prices and higher grocery bills at home. tom: do you see that? if four other competent members

-- other cabinet members had gone we would have drag annmarie here, but they don't. lisa: this is why it is under so much scrutiny, but there is a self-awareness of that. frankly, it seems like people are less trying to prescribe solutions and more trying to just have meetings and figure out things hind the scenes. tom: one thing i have learned with the pandemic as we are all learning how to be social again. everyone knows i have no social life so it is not a big deal. annmarie: i'm sure you've spent all your nights at the piano bar. tom: i did come about what is important here is on international relations, everybody is going to run into each other. what are they doing, mowing the lawn of the white house? lisa: here we've got sirens, there they are mowing the lawn. annmarie, thank you for taking the time. tom: the funniest noise here, that was not the sheep. the simon and will kennedy goat farmers important. the sheep are not out today. they are keeping cool. i think dalio underwrote the

barn. the funniest thing, you've got to admit, was john kerry and the helicopter came overhead. literally right above us. it stayed there because they are doing a photo shoot. you know, john kerry is being very john kerry. lisa: one more time? tom: john kerry is being very john kerry. and we actually got a smile when i told him it was the gop helicopter. we got the annual carry smile -- the annual kerry smile. lisa: again, it is a very self-aware davos for people who want to get things done. tom: full disclosure, we will be at the zurich airport, as you look out on amber waves of golf streams -- of golf streams. they will all be there. brent near $115 a barrel. an update from amrita sen. on radio and television, this is

bloomberg. ♪

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tom: "bloomberg surveillance"

from davos, switzerland. in new york, kailey leinz. kailey: the picture is looking better for futures, right around session highs at the moment. nasdaq 100 futures are higher by a little more than 0.5%, even after some of the disappointing headlines from the likes of nvidia and apple. in the bond market we are seeing yields moving up. a little bit of selling pressure in treasuries, up about two basis points on the tenure. yields were lower earlier in the session. you are seeing no bid in the bond market. in foreign exchange, the russian ruble really catches our attention today. the russian central bank cutting interest rates for the third time in a little over a month by a larger than expected amount. economists that about a two percentage point cut. 14% down to 11%. they are trying to weaken the russian ruble, whose strength has become a little bit more alarming. right now russian ruble is indeed weaker, trading at 63.20

or so to the dollar. there's a lot moving beneath the surface, so let's get over to romaine bostick with some individual names. romaine: a lot of that story centers around the retailers, and it is looking pretty good. we had kind of a mixed picture on the retailers last week. this week is has been a little more upbeat. he sees shares up after raising its full-year guidance. comp sales came in at about 12%, and the company is expecting that momentum to continue as it has seen a big shift to occasion apparel. the idea that a lot of us are going back out of the house to the fancy events and we need fancy clothes to do that. in the meantime we are still stocking up on stuff for our homes. williams-sonoma up about 8%. comp sales were up 9%. the street was only looking for 3% growth, so triple what the street was looking for. dollar general, which services the lower income end of the spectrum, shares up 11% after comp sales came in about 4% and

the guidance also seemed to be above the average estimates. that is the set up on the retailer front here. the other big question for the day on the macro basis goes back to some of those tech names. nvidia did come out with earnings last night. they were not bad. they were talking about 46% growth year over year. unfortunately this was a company growing in the triple digits just last year. those shares down about 4%. meanwhile, the big deal that was not much of a secret come abroad, agreeing to buy vmware. -- a secret, broadcom agreeing to buy vmware. they have now confirmed the $61 billion deal, one of the biggest tech deals we have seen in quite some time. twitter shares up about 5% on the back of that amended elon musk that suggests he is maybe still sensually may be going forward with this deal. tom: thank you so much. more on the equity markets and particularly the good markets on the moment on the close this

afternoon. futures up nicely. the 30 year bond ticks above 3%, which is one of those measurements, and i'm waiting for the vix with a 27 handle. we are also waiting for history to repeat itself and we are seeing that now with a chancellor of the exchequer of the united kingdom. lisa, you've got a better grasp on the headlines than i do. but back to the 1970's, maybe the 1980's, mr. sunak is going after big oil. lisa: rishi sunak saying he wants a temporary levy of 25% on oil and gas profits, basically saying it will be phased out when profits return to normal. that is what he said. he also said the more a company invests come the less tax they will pay. they will expect the proceeds to help adjust the cost of living for people on the lower income tiers. this comes as energy prices absolutely surge and people are seeing their bills double.

how to they deal with that at a time of inflation and some on the other categories as well? tom: this is an exceptionally sensitive issue. it is not the same geography is america, but you have to wonder, does it follow on in the united states? lisa: how much does this open the door to some sort of tax on profits for oil and gas companies? it is definitely being talked about in the united states. how do you justify that at a time when you are trying to encourage investment but also move away from fossil fuels? tom: behind him, i will not mince words, and i wish jon ferro was here to help us, it is an exhausted prime minister of the united kingdom. lisa: well said. tom: if you are not up on the story, it is called partygate. if you are not up on the reality, i don't understand it, but i can suggest the prime minister in the united kingdom looks exhausted. lisa: this is all about holding a party when everybody else was in lockdown, not able to see their families during the

holiday and how they deal with that. it seems like he's very much in a beleaguered state. tom: we get to rip up script with amrita sen, truly excellent on the microeconomics of what crude will do. in your studies, do windfall profit taxes work? amrita: no, and especially not when you are asking oil producers to also raise production because there's a bit of a supply crunch. so the answer is no. tom: go back to lyndon baines johnson and the idea of an investment tax credit. sunak is going to fold in here if you invest, you don't pay enough tax. what kind of investment program spurs oil production? amrita: the problem right now is that we do need investment for sure, and to your question, what kind of investment spurs production?

you are talking about investment in the north sea, and that is not overnight. you are still going to look for or first and foremost find the oil bid again. you can beget best you can get some tieback projects in a year. but these are small volumes you are talking about, maybe 40,000, 50,000 barrels per day rather than hundreds of thousands per day, which is what we need. if anything, we probably need in the millions of barrels per day. for that you need a sustained investment program. norway actually has much better prospects. so it is not that lucrative to necessarily invest, but having said that, there are still assets which oil majors over here could extract oil from. if the tax incentive is right, i think the world needs that will and they would be more than keen to develop that, except of course that there are est

pressures on them as well, so that is always going to be detention -- going to be the tension. lisa: how much is this an issue of getting the oil out of the ground and how much is this an issue of refining it so that people can use it to power their cars and their homes? amrita: it's a great question because we got shortages in both right now. we are not investing in the upstream. that has been the trend for the last eight years. we have not invested more than $400 billion each year for the last pretty much eight years. we have closed about 3 million barrels per day of refineries in the west, so we are very short of refining capacity. we have a few refineries starting up in the next couple of years and even back half of this year, but not nearly enough to meet demand, so we are constrained on both sides, but right here, right now, we're

more constrained on refineries. lisa: it only raises costs for consumers and continues to do so despite wobbles in the actual crude market. understand perhaps we are not going to the oil companies produce more as a result of the tax that is being proposed in the united kingdom. however, how much does it give cash to be able to offset the costs for people who are only going to see those costs climb? amrita: the challenge is going to be how you make this a global solution because we'll markets are global, and part of the solution is they are always trying to come up with local solutions. even the u.s. is talking about potentially limiting diesel exports.

we have to annul of statoil and gas demand continued to grow very sharply, particularly in asia, and right now china is not even growing, sue imagine when china does come out of it's your it -- it's euro covid policy, we need to therefore facilitate enough investment across the board to meet that energy demand. otherwise, like you say, there's only going to be one thing. it is pretty simple demand and supply. tom: an unfair question. this goes back to 1980 and the experience of the united states, they find out excise tax over the taxes they were already paying because they were making more money. if the united states affects a british equivalent in the windfall profits tax, what does that do to a calamus gas -- a gallon of gas? amrita: the producers we speak

to in the u.s. have said this administration has considered it and probably still is. you will see u.s. shale production fall because what is the incentive? much like in the u.k., if that happens, crude prices go up even further. gasoline prices are already high, and of course it is going to make matters worse, but the crude price will definitely rise. lisa: we are gas prices going to go in the united states through the remainder of this year? amrita: we think it is going to continue to go higher. inflation is high, but people are going to be driving and flying as well, so both gasoline and jet fuel prices will continue to rise. tom: thank you so much for joining us with energy aspects.

monday, is that the day we have off? lisa: that is supposedly the day you have off that you will be working. this is the issue. you just saw gasoline inventories come in lower-than-expected ahead of that driving season, which is the reason why people are looking for prices to go up. tom: i need vw rabbit diesel. that is that old solvent. lisa: you know what it is to let up your car with diesel? it costs like $100 each time you fill it up. tom: good point. then, diesel was cheaper. coming up, michael feroli, jp morgan. ritika: keeping you up to date with news from around the world, with the first word, i'm ritika gupta. it is one of the biggest technology deals of all time. broadcom agreed to buy cloud computing company vmware for about $61 billion. the transaction represent about

a 44% premium to vmware's valuation before may 20, the last trading day before bloomberg reported a potential takeover talk. the u.k. will impose a tax on oil and gas companies to be used to help fund at least $6.3 billion of britons facing a cost-of-living crisis. today secretary of state antony blinken will deliver a long-awaited speech outlining u.s. strategy towards china, but there's an muchly to be any bold new direction unveiled. instead blake and will expand existing policies. the strategy includes investing in democracy and innovation at home, bolstering allies and competing with china on military and economic issues. alibaba reported better-than-expected 9% rise in revenue on the march quarter. chinese consumers turned to online malls for basic needs during covid lockdown.

the company is grappling with intensifying competition and mounting economic uncertainty at home. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

>> government bonds probably feel less volatile from here, but it is still quite a challenging environment. i think we've probably got another two quarters at least of volatility as we see the economic backdrop gradually ease a little bit, and we will be looking towards the fourth quarter maybe to see a little more clarity. tom: anne richards of fidelity

international, one of my favorite people at davos. someone who really has a grasp of the dynamics of global wall street. i think of loretta mester at the cleveland said. math wins, and anne richards is the best in global wall street at mathematics. he knows the math of macy's. what is the difference between macy's doing well and target when less than well? >> good morning from halfway around the earth. great question, tom. i think this is really important be buried -- this is really important. i think something a little bit different is happening. i think we are reverting to the

mean. i think you're seeing a lot of the pandemic winning categories, winning franchises start to give some of those gains back to get some of those categories of retailers that struggled during the pandemic for obvious reasons , you're seeing consumers return to those stores and return to those categories, so i think we are seeing more of a spending shift then necessarily verily signs of a recession. tom: the word moonshot is not part of what your research departments want you to use. the fact is macy's has been a moonshot off the pandemic, but off the last number of years it has been a real doubt about the strategic execution of their management. is this as good as it gets for macy's? >> this is the ultimate question. clearly they are having a very strong earnings pattern. the biggest change from history right now is the reduction of motions. there's two factors driving

this. really the ultimate question of what drives a company like macy's and the new normal world, their margins are way up because promotions are way down, partially due to supply chain constraints and solid demand as all of these companies pull back on inventory and demand is rebound faster than supply, but it is also due to a lot of data and analytics and a lot of technological advancements these companies can apply to their and mentor -- their inventory planning, especially as they begin to look at the customer. it is one customer and one inventory pool for both customers. it means less markdowns and potentially a longer tail. lisa: how efficient is it to see the consumer levering up in a massive way? we are seeing that particularly in these earnings in the forecast, where they basically

said a lot of their expected outperformance this year stems from the use of credit cards. omar: that is an interesting new development. credit card revenue share has been way down because consumers have been carrying much lower balances during covid because all of the savings. we have not heard much from other companies seeing a huge increase in credit card revenues, but this is the first kind of sign that you are seeing that balance is returned. i don't think that necessarily means consumers are under stress. however, we are seeing the lower and consumer starting to build some balances and behavior little differently as we cycle stimulus. it is not something to panic about, having lived through 2008, 2009 this is a tiny amount of credit compared to previous cycles, and i don't that it will get as last time.

lisa: perhaps this is something that indicates that even if wages start to increase at a slower pace, even if you start to get inflation outpacing and continuing to outpace wages in a meaningful way, you just see more and more playing of that gap was credit. how much are you actually seeing that versus basically people able to spend some of their savings, as brian moynihan of bank of america was saying? omar: i am more in that camp so far. keep in mind, the stocks we cover are more luxury and fashion and tend towards a high end consumer. even when we were visiting them and their headquarters yesterday, they are seeing the resistant to price increases, typically signs -- tie into

travel and experience as people go shopping. there's no sign of trade down either, which is just not happening. people still seem to want to trade up. tom: one of the things i have done in my extensive research is vintage clothes. i'm not sure if you were aware of that. if it isn't vintage, i won't wear it. how do they deal with well mannered children who won't walk in their stores? lisa: that is so specific, tom. [laughter] omar: this is great. vintage close is a great entryway for consumers who really want authentic brands, authentic experiences that have traceable roots. it is a reason why air jordan is doing so well, because they have relaunched these shows with long lineages that go back decades. macy's picked up millions of new customers during covid, and a lot of them were actually young. this is because you had a lot of

young customers who were online searching for fashion, searching for these brands that sell vintage products like levi's and ralph lauren, and lo and behold, macy's is one of the largest retailers of these brands, so a lot of young consumers discovered macy's during the pandemic. the actual volume of vintage clothing that is out there is relatively limited to the overall supply of new clothing, but it is a great entry point for a lot of these retailers. tom: we've got 30 seconds tops. can you explain -- can you explain brandy melville? omar: this is a private company. it is not something we are super close to. it is actually an italian firm. i don't know a ton about it, but does reflect that desire of the consumer as well to return to fashion and get dressed up again. we are not going to be wearing sweats forever. tom: he is so slick. he nailed that. i love busting your chops.

thank you so much. greatly appreciate it. i'm in italy and i go by a store , and it is brandy melville. it looked like the vatican. lisa: let's be honest, you have a personal gripe with andy melville because of personal experience. this theory about all of the vintage clothing, theoretically what would you think about brandy melville. tom: "bloomberg surveillance," brandy melville is one size clothes, which means they buy them, they are appropriate and then they are not. that's brandy melville. lisa: i am dealing with the air jordan resales. tom: it is an outrage. it is a scandal. lisa: i'm sure everyone is happy to know. one of our best guests cross asset with geoffrey yu, head of markets strategy at bny mellon. there's a $61 billion merger in tech. stay with bloomberg today. this is bloomberg.

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