more and more retailers are filing for bankruptcy now today earlier on thursday luxury retailer neiman marcus filed for bankruptcy earlier this week we saw american giant j. crew also declaring bankruptcy and now there's some talk that saks 5th avenue could be a potential buyer of the luxury retailer neiman marcus are we going to see some possible mergers here especially when it comes to these luxury brands. there could be and it does make sense because sex that they do have cash on hand and do have the buying power in our brand such as j. crew the problem is given the fact that everybody has kind of rained and spending and we don't expect a quick we found in consumer goods any time soon especially in the luxury level then playing cash right now for an acquisition of a decently summiteers sized name brand like j. crew is real but is not necessary and at a time like this i think for x. but i think they are more in survival mode so i think the best course for them is to actually hoard that cash and make it last as long as possible because we also happen to borrow. and now you have neiman marcus

crew's and jcpenney and neiman marcus, is the amount of debt. when you have debt it constrains your ability to use the money you are making to build up things like internet presence and improve stores, things like that. the fact of the matter is there has been a transition how we shop. people are increasingly going to the internet to buy things. everything from the staples to cars. people are buying cars over the internet now. of your retail merchant now, the number one thing you have to have is a good balance sheet which crew, jcpenney's and neiman marcus do not have. then you have to have a strong internet presence, which they do not have either. and then you add in the complete collapse in demand because of the pandemic, it's a tough place. jcpenney's, neiman marcus, sears all will declare bankruptcy in the near future. >> when you don't go in something like this with solid financial footing, it's stuff to make it through. appreciate your time. >>> tracking the coronavirus. of the new resource available starting today to provide a real view o

make it last as long as possible because we all saw what happened to barney's and now you have neiman marcus so now it's like whoever can outlast the next the next retailer wins essentially so it was a merger if expos was merging with alike and equally had 2 weaker balanchine merging to become a strong balance sheet this works but right now fact would be deploying valuable cash resources to acquire a smaller segment that really isn't worth their time or effort what about macy's where do you see the them going i mean they've closed a lot of stores even before the coronavirus crisis started. macy's has macy's equities value is primarily divide derives from their real estate value so many while many analysts do see that macy's is undervalued given their real estate it's kind of hard to put the finger on because macy's has been known to have declining year over year same store sales and they haven't expanded at all so the private equity buyers they have a major overhaul plan in store for may think but that remains to be seen because they tried to do the same thing with barney's and we all saw th

barney's and we all saw that that did not work especially when you have so many locations like neiman marcus flagship store that opened here the hudson yards in manhattan i mean that that was out doing clearly not well but danny i want to turn to you turning over to the fed and the stimulus here a new fed study actually found that rural states have apparently been approved for more of these p.p.p. loans or small businesses the more populated coastal states who have been affected greatly and more so by the virus are only getting a small portion now many economists some economists are suggesting that this is because these rural banks are rural states are serviced by smaller banks do you agree is that the reasoning behind this. well i. i think that that has to be one of the factors i mean all of the anecdotes that we've heard especially about that initial round of 349000000000 in p.p.p. loans all of the anecdotes that we've heard said that whether you were in a big city or in a small town as long as you went to a smaller bank you were going to get better service and you were going to get proces

>>retail giant neiman marcus filed for bankruptcy today making it the largest u.s. retailer to collapse since the coronavirus pandemic devastated the industry. a bankruptcy filing does not mean a company will go out of business. many companies use bankruptcy to shed debt that they can't afford while closing some locations neiman marcus did not announce if any stores will be closing permanently. there aren't even stores in san francisco's union square, one the creek and palo alto. one day after announcing it was laying off 14% of its workforce. uber is also ditching its scooters and throwing its support behind line. the san francisco based company is now leading a $170 million investment into limes scooter business under the deal over will not transfer its own electronic bike and scooter division called jump to line and the companies will integrate their apps. let's check back in now with our chief meteorologist lawrence karnow as we take a live look outside here in san francisco blue skies out there and warm across much of the bay area. lawrence was enjoying a nice.

few retail situations, including neiman marcus and jcpenney, both of which we have reported have been in discussion with their lenders, trying to get together their bankruptcy restructuring plans in place. those have been delayed by days, by weeks, depending on how market conditions are changing, but we are expecting to see at week,nieman come this jcpenney probably right behind it. vonnie: were these bankruptcies like? waiting, if you we know that this has been in talks, and j. crew was pushed into it by private equity. so would this have happened anyway? katherine: you make a really good point there. these situations had been evolving and were kind of seeing trouble, writing on the wall before the pandemic hit. so with the store closures, that has put even more pressure on

luxury department store neiman marcus files for bankruptcy. why the ceo says it will help the company better serve customers. >>> concern president trump may have been exposed to the coronavirus. person close to him that just tested positive and how the white house is responding. >>> neiman marcus is the first major department store chain to file for bankruptcy amid the coronavirus crisis. it closed its 43 stores in march and furloughed most of its 14,000 workers. the company had been struggling with competition from online rivals and a debt. the bankruptcy filing should help neiman marcus restructure and flush it $4 billion in debt. the ceo says they plan to come back is a stronger company that can serve its customers. >>> wall street rally today despite millions of unemployment claims. investors are hoping the worse of the coronavirus outbreak is over. the dow was up in the nasdaq was up 125 and the s&p 32. federal approval for a second phase of testing for a potential vaccine also helped lift the markets. >>> capitol hill where republicans

crew and neiman marcus were leveraged buyouts. neiman marcus went lbo to lbo. that does a great deal of debt and pressure to their balance sheets in a difficult time >> exactly that's a great point yes, since 2013 neiman marcus has been owned by the private equity group that still owns it. and just like j. crew, sort of this lbo and really saddled the companies with debt. it's not as if there were no sales this certainly not the sales levels as before, but they had massive debt loads they were always going to be fighting against that had been one of the big crushing factors for many of the retail bankruptcies we saw actually in the years following the financial crisis so if they were able to make it through the crisis, and then they were bought out by private equity or had some involvement, it was the debt loads that were too big to bear as the retail landscape has changed dramatically >> yeah. just to name names, the owners here were arie management and the canadian plan investment board. before that was tpg. clearly a long history of private equity i'm wonder

i mentioned neiman marcus. i understand you cannot talk about it.ee a risk of bankruptcy and other portfolio holdings? you see stress in your private credit portfolio? mark: when you look across the whole portfolio, there will be pockets -- anything that is travel related, anything that involves experience within a small space is probably going to be impacted for quite a while. trends we thought would be there, the experience economy, that is going to be harder. erik: that is on hold for a while? mark: that is on hold. there are a lot of other trends we saw. e-commerce, delivery, telemedicine, fintech, these areas could see an enormous among therticularly age group that has been slower adopters. this is force people to home ofking, to home delivery things that might not have ordered otherwise. they may have ordered books but now they are ordering groceries. things will probably be more sticky. online education as well, while the uptake has been more in the east and the west, the western markets are still quite resistant to online education. there is

dallas-based neiman marcus declared bankruptcy earlier in may.ike jcpenney, many of its problems preceded the pandemic. j.crew's bankruptcy filing came a few days before neiman marcus. all three companies said they intend to stay in business. of course when large retail stores struggle, the malls they anchor struggle too. and then there are questions about how the pandemic will change the way we all shop. for more on these issues, i'm joined by vicky brown. she's also the author of "from main street to mall: the rise and fall of the american department store." welcome to you, thank you so much for joining us. >> you're welcome. >> j.crew and neiman marcus and just this week jcpenney. some of our international viewers may not know it, but most of us who grew up here know jcpenney very well. what do losses like this signal for the future of department stores? >> well, jcpenney, it's in every shopping mall across the united states and it's a company that has a long history. it's an over 100-year history like sears which has faced troubles. besides t

you see the bankruptcy at neiman marcus, j. crew, jcpenney is on the verge.e is not the friend of anybody in a pandemic like this. path of every the purchase, and you are world-famous, how we actually go about doing a purchase. we see an item in a magazine and decide to buy it, and there is a whole emotional process. can jeff bezos expert at that process? can amazon learn the way that we acquire the acquisition items we want to acquire? stephen: i think they already are. amazon is doing a remarkable job of tracking the consumer and understanding them, looking at their marketplace, what is selling and not selling, and creating the amazon basics. how you track that consumer behavior and appeal to them is changing. it used to be national television advertising or media print and now it is social media, analytics, artificial intelligence. media has changed -- retail has changed, not just in the luxury sector. you will see people marketplaces . you will see marketplaces emerge at luxury, they are may not be amazon, but others at play. those competing beneath the s

vonnie: neiman marcus, eightware have lost ratings notches in the last week alone. any places that are so close to bankruptcy, it is a hair's breadth? issues trading at distressed levels, you are really going out on a limb, investing in those. it is noteworthy, there are some that have bb ratings trading at distressed levels. i leave out the energy companies. but there have been, historically, that has been a good bet. spread overoints treasuries. in some cases, with stable outlooks on them. buta lot in that category, you don't have to believe the ratings are perfect. managers,o a lot of they claim they pay no attention to ratings, and so on. the fact is, the ratings are not companyff, a typical rated bb is on the brink of the chances are not very likely within a 12-month period. vonnie: give us some more names that look interesting to you at these levels. well, i wouldn't want to butinto specific issues, within the sector, one of the attractive opportunities is in smaller issues. ordinarily, the market charges a $400um to an issue of million, $500 million, as oppos

neiman marcus filing for bankruptcy this morning. >> i am hopeful that we can bounce back and i don't think and i am optimistic that we are headed for another great depression. i think it is becoming clear that we are in for a long gradual recovery which is unfortunate. i wish we had a quick bounce back. i think we'll overt the scenario because policymakers are going to be aggressive to fight that outcome. >> more on the economy later. let's get straight to the white house with cnn's kaitlan collins. what did the white house tell you about the personal aid testing positive for coronavi s coronavirus, now what? >> reporter: we reached out to the white house with this report. they confirmed a staffer informed did test positive but of course we had more details about that about who this person is and how closely they were with president trump and how closer they are to president trump on a daily basis. this is a u.s. navy member who's assigned to the president's personal valet. that means someone works incredibly close not only to the president but to the first family as well. they handl

these lenders would provide neiman marcus with a bankruptcy loan.bt and hand over control to the lenders. meantime, i want to talk a little bit about elon musk, who tweeted last week that he thought tesla shares were overvalued. the stock plunged about 10%. it is backup about 9%. he is making good on his promise to sell his physical possessions his homes ono of the market. elon musk has five homes. two of them are on the market. is he really selling these homes? >> he seems to be, according to zillow. it is a pretty hard time to sell houses right now. california is still largely under lockdown. i think he is trying to make good on his tweets that he is i guess downsizing is fairly vast carbon footprint. emily: these are not cheap homes. we are talking about a $30 millionmansion, a $9.5 ranch-style home. we are never sure what is going butnside of elon's head, saying the stock is overvalued, being concerned about the shutdown of the factory, concerned about the coronavirus pandemic being overblown. dana: the backdrop of all of this, one is that musk

neiman marcus is one that negotiated a debt deal with their lenders last year, and 2018, actually, thatem some time. since then, things have accelerated. there debt didn't really get cut the way it needed to, so they are still dealing with a heavy storesad, and now some are closed, and most rulers are adjust toshift and the new norm. . the debt has become an issue for retailers like neiman. we saw it with j. crew filing. and we will probably see more companies come that are having to decide whether or not bankruptcy is the best option for them. this frome look at the investor perspective? at the moment, we simply don't know what the retail landscape is likely to look like on the others out of covid-19. we know that ultimately, consumers are going to need to shop at some point, but the patterns of that retail story have changed and have change significantly. nobody really knows what the long-term picture is going to look like. from an investor perspective, how risky is it putting money to work in this space, and how many are some plea deciding that the risk is too high given the lack of

more drama with neiman marcus. the retail sector continuing to be impacted. off with what we are seeing with earnings. su: yeah, we can go right to the after hours movers. you can see the stocks in the green those reporting earnings. stocks in the rent are hurt. one of the companies seeking restructuring. it ended up in a vague deal that was announced. these are some massive $272 billion hits. that is a pretax law that comes from the business lines that were also hit. commercial property, trade credit and worker policies. it was volatile after hours with the earnings missed again is overshadowed by the fact they have a very cloudy outlook. a double whammy for aig. they took a loss from covid and they took a loss in their stock. let's take a look at shake shack which is a slightly different story. profits better than expected. you mentioned hamburgers are back in. shares were actually higher. they are saying a recovery could reopen and help the economy. they're considering doing drive-through. and then we've got tyson. the stock plunged as much as 8% on earnin

now neiman marcus. you think neiman marcus might hit harter, why? >> i think we're marking the end of an era for these big iconic store brands in the shopping mall or how it's looked. it follows the collapse of barney's new york last year. the problem is exiting bankruptcy during a pandemic when stores are shocked and consumer spending reduced is a real challenge here. there is a warning going off for other brands like lord and taylor's, j.c. pennies, sears, too, those are the ones to watch. >> also a huge reversal by frontier airlines that low-cost carrier tried to make money having customers pay to keep the middle seats empty that didn't go over pretty well? >> it absolutely didn't. some might call it profiteering. you pay for everything on an airline. it seems we stopped short for paying for safety under the guise of quote more room. some might call it situational survival for a budget airline that faces ripping out a third of those seats, it will raise seat prices or ticket prices by 50% and this is the key. >> do those costs then get passed on?

crew and neiman marcus, two other well known retailers, both of which were lbos.us was a double lbo the debt of that company did not help in this difficult time. j. crew also but in the case of jcpenney it was more execution failure there that left them in this difficult position for many years. >> they had a loyal clientele under mike goldman they didn't have great numbers, it's true, but consistent numbers. the clientele loved the brands, the house brands which were equal to the quality of the name brands like vf offered it was kind of sticky. they had 95,000 people work for them, and you would go and they would have great bargains, they were one of those places that marked down, marked down ron johnson didn't like that strategy it was like he came in and just said to all of the regular customers, this isn't your store anymore. we'll attract new people that is a redo that you can't do in america you can't do it. not with retail. it failed miserably. the company never recovered. they had no money to do a good e-commerce, they're history. 95,000 people. where do w

let's bring in one of the nation's most experienced retail executives, allen questrom, and neiman marcus and a former walmart board member and he joins us on the phone. >> nice to be with you. >> how do you look at this retail environment and karen was mentioning stocks are close to 52-week highs and walmart, for instance, is only off 6.3% from its 52-week high and target's only down 5% from its high and yet we have an economy which is in shambles and consumers which are out of work and a historic unemployment rate and does this jive with you with how investors are seeing the stock and how the economy really is? >> it does jive because first of all, both are in the grocery business and both have very good e-commerce business particularly walmart and target it has put a lot of money into their e-commerce and upgrading their stores i think both are very well-run companies and they've done things in the past to protect them in the future and because they have such a big percentage of their business, and i think 55% is in the grocery business and target has gotten into the grocery business,

>>today neiman marcus became the latest big name company to feel the impact financially from this pandemic the retail giant announced that it has now filed for chapter 11 bankruptcy. more than 4 million californians have filed for unemployment during the 7 week crisis. perry leaders say we've still got to hit rock bottom. >>we see companies making really tough decisions to lay off workers left and everybody and neiman making really tough decisions to keep their companies afloat any that that represents is that we are not at the bottom yet you cannot people need to prepare for this to get worse. >>the chamber of commerce also says restarting construction projects was a critical step in getting people back to work in helping the economy and now they're encouraging city leaders to do more for small businesses including deferring taxes and business fees. one of the most important aspects in the fight against coronavirus is an effective vaccine and as the world waits the deadly virus continues to devastate our nation camila bernal explains the quest for covid-19 vaccine. >>hospitals skilled job

jackie: you see neiman marcus filing for bankruptcy. >> exactly. jackie: uber also said it was laying off 14% of its workforce and you worry that reopening is certainly wonderful and it appears to be the right thing to do right now but it could just take longer, alicia, than most folks are expecting. >> absolutely. i couldn't agree more with the recent comments. you know the truth is we really don't know how many of these small and medium size businesses actually have a business on the other side of this and whether demand has simply evaporated for certain kinds of consumer behavior, whether restaurants, socializing, or going to large studios or going to the movies. that really remains to be seen. the other thing i want to point out the way the unemployment benefits are stuck tured half the recipients are earning more on unemployment than they were at their job. so i think the data will be distorted and we won't see a more accurate read until july when the benefit run out. then we'll really see where that shakes out. jackie: it is hard to get peopl

the pandemic also pushed already struggling chains like pennies and neiman marcus and a bankruptcy, the retailers that and lowe's they were deemed essential and stayed open. still have one of the many promising coronavirus a vaccine contenders. it's made right here in a bay area company has chosen a coronavirus vaccine candidate to move into clinical trials soon vax art is hoping to move fast and says trials could happen as soon as the summer today i talked to company ceo vowed or look tour to get details after this is exciting tell us some more about what's happening. >>yeah, this has been really an m a very dynamic past few months for 4 backs arts we've been working fyi virtually all our version of the corona virus vaccine. we have a fantastic platform that's really suitable for this indication so really excited to try to make a contribution. and we just announced that we have a made a number of vaccine concerts of that very well in our preclinical model so that's very exciting news. and one of those constructs we just selected to the going to a manufacturing with the manufacturing pa

people inn neiman marcus and j crew have filed for bankruptcy. >> reporter: the pandemic hit, the retail industry was facing a number of challenges. we as shoppers have been spending more money online, less in stores. the future of america's economy depends on retail, but what will it take to bring the industry back? we go inside small businesses, department stores and of course the malls to get a glimpse of the future of shopping. in alabama, the future has begun. after five weeks, customers are lined up, waiting for the doors to open at east dale mall, a hub for the montgomery, alabama community. >> when we open back up, it really, brought a cheer to our hearts saying they're coming back, they're still believing in us and we're still here. >> reporter: the mall owner says about two thirds of the stores are open but some of the major department stores remain closed for now. >> you've got some stores waiting, some corporate stores that are waiting to come back. >> reporter: any traffic is good for the jewelry store owners. >> it was emotional, and we happy to see it was opening back agai

thank you, dom neiman marcus, saddled by debt, hit by the pandemic, filing for bankruptcy with a deal over the business to its creditors. the companies furloughedmost o its 14,000 workers, closed its 43 stores. neiman marcus says it's secured enough financing from creditors to fund operations through this crisis it's now the second major retailer to file for bankruptcy during this pandemic we've been talking about j. crew up to this point >>> moving on, it's one of the largest media mergers since the pandemic started liberty global and telefonica agreeing to combine their uk operations julia boorstin joins me now with all the details. julia? >> liberty global and telefonica are teaming up to create the largest phone and telephone operator in the uk with a joint venture between liberties virgin mobile and telefonica's 02 which will be valued at $39 billion. this creates a rival to bt, which has been the only urk operators, which has both a mobile and fixed network this new deal unites virgin, which has the second largest broadband network in the uk with o2's largest mobile network. now

>>several retailers including jc penney and neiman marcus have filed for bankruptcy during this pandemic but another company is now taking a step further. pier want is asking the bankruptcy court to cease its retail operations quote, as soon as reasonably possible. the company says it tried to find ways to remain in business, but liquidation was the best option. pier one currently has more than 500 stores, including several in the bay area. it plans to sell its remaining inventory website of intellectual property orders placed on its website will continue to be felt. the starting line for the triple crown will be outside of new york this year. officials say the belmont stakes will officially kick off the traditional horse racing series for the first time ever the race which is usually the final leg of the triple crown has now been set for june 20 s on long island. there will be no spectators and of course will be cut down the course will be cut down to a mile and an 8th, as for the other 2 races, the kentucky derby is scheduled for september 5th and the preakness stakes is slated for oct

for chapter 1 bankruptcy becoming the largest retail to fall victim to the coronavirus following neiman marcus and j. crew the 118-year-old retailer has struggled with slowing sales for years. covid-19 exacerbating the problems the company saying the closure of our stores due to the pandemic necessitated a more fulsome review it currently operates over 850 locations. the company says some stores will close permanently. overall retail sales dropped by more than 15% last month, the most ever on record. meantime grocery chains are under pressure, too. starting tomorrow kroger the country's largest grocery chain will end the extra $2 an hour of hero pay for essential workers. amazon, wal-mart, starbucks and target are following suit by the end of the month she worked at the check out at kroger ralph for more than ten years. when you realized this pay is going to go away how does that make you feel? >> we're dealing with being in the pandemic and the coronavirus is still here. >> reporter: kroger issued this response saying as the country moves toward reopening we will continue to safeguard our ass

crew one of them, neiman marcus another. also, jcpenney. it is not just retail hurting.taurants and bars are closed. spendingdo in that sector i sharply. groceries is one of the few areas whater hee p meoorple.e there wa a y,fosithe sdechiurs s i tndustrl drop.h showed an 11% it was a sharp decline. what we are seeing is that orelfateedfoinie-pctlace os rded a terrible effect. if youoo athat is having a knock on effect. anchor: the economic news out of germany is not great either. europe's biggest economy is in recession after shrinking by more than 2% in the first quarter of the year because of it is germany's biggest slump sinces he financial crisire than a decade ago. the u.k.hief brexit negotiator david frost said little progress has been made in the latest talks with the e.u. on fu aad tmehe e.u. of including unfair agreements that would bind the u.k. michelle garnier described it as unfair. unconvinced about the wisdom of sending more pupils in england back to school after meeting russia launched a mass screening srogram for coronavi antibodies the hope is results

most 90% down in april, several retailers have filed for bankruptcy in recent weeks, including neiman marcus and j crew adding to that is now jc penney who filed for chapter 11 bankruptcy protection today. the company is expected to announce which stores will close if any in the coming weeks. jc penney now joins the marcus and j crew which also filed for bankruptcy and comes as consumer spending dropped a record, 16.4%. up next a new antibody treatment is being developed from cows learn why scientists believe that these animals could save lives. four plus one is... 16. (laughter) how many pints of iced tea are left in the pitche times... ten... so, wait... (errhhhhh) do you want to show us the continents on the... no. it is not going good. my mom is getting stressed out. (speaks hebrew) momma's tired. i, i'm, like... woooo... (screams) (sighs heavily) so, starting just quickly by breathing in... i never thought i'd say this, but i kind of miss school! the teachers, i mean, y'all are gifted people! i thank you so much for what you're doing. their investment into our children is beyond what we

jc penney now joins neiman marcus and j crew which also filed for bankruptcy in recent weeks. and comes as consumer spending dropped a record 16.4% in april clothing and accessories store saw the biggest hit falling 89.3%. as california leaders prepare to make billions of dollars in budget cuts for the upcoming fiscal year governor newsom is setting aside millions for a new controversial state law. the governor plans to put that money towards enforcement of 85 that's the law that requires a number of independent contractors to be redefined employees our capitol bureau reporter ashley zavala has the story. >>nearly 9 months since its passage, the drama is nowhere near over with california's ab 5 the law redefining many independent contractors as employees is at the center of numerous repeal efforts regardless governor gavin newsome proposing to put more than $20 million toward its enforcement with 17.5 million going to the state department of industrial relations, 3.4 million to the economic development department and 750,000 to the department of justice it's said to be perfect

bankruptcy protection, nema's marcus -- neiman marcus becoming the first bankruptcy major retailer.y had already closed more than 40 starts as shopping stays home. this is days after j. crew filed for bankruptcy as well. you are watching bbc. still to come on tonight's program. in southern india, a gas leak kills at least 13 people and hundreds more are taken to hospital. parts of france will begin loosening their lockdown measures next week with shops and schools allowed to reopen. far stricter measures will remain in the capital that has been designated a red zone. >> the particular area to watch is the paris area because that is an area where the number of cases is going down and there is still a lot of pressure. and because it is the capital city, all eyes will be on the new movement of people and movement of people coming into force monday. this is amid fears that things could take off again in paris. the rest of the country is green. the difference between green and red is actually pretty marginal. basically all the country is going to go through this process of de-confinement

. >>> new at 11:00 for you, neiman marcus filing for bankruptcy. saddled with debt, the luxury department store had been struggling before the coronavirus pandemic. the health crisis only made it worse forcing it to furlough most of the 14,000 workers and close its 43 stores. it's the second major retail tore file for bankruptcy during the pandemic following j. crew earlier this week. >>> today's incoming heat is just another reminder to be prepared, searing temperatures is one of the main ingredients of wildfires. fires already burning like this vegetation fire in oakland yesterday afternoon. firefighters contained it. no property damage or no injuries. but one of the many fires across the region. cal fire says it is launching a public service campaign, encouraging residents to be proactive about protecting their homes. they want to you clear away dead trees, brushes and vegetations within 100 feet of your home. >> people are telling us they do have time at home now. they have more time to address their defensible space responsibilities. >> pg&e i

another retailer bites the dust, neiman marcus declared bankruptcy, the second major retailer to collapse due to the coronavirus pandemic following j.crew earlier this week. the high end department store chain has no plans to liquidate and will continue to operate online while stores are shut due to the virus. while disney world will reopen disney springs, it's shopping and dining center on may 20, the florida theme park and its hotels will remain closed. a limited number of third-party operators will be able to open up within, with increased cleaning measures in place. that is your cbs money watch report, for more head to cbs money watch.com, i'm diane king hall. >>> and east bay position won't happen this year, the alameda county fair is canceled for the first time in its 108 your history. the fair which is held every june normally host about have 1 million people. >>> new incredible video this morning of the last super moon of the year, take a look. these shots showing the moon in clear skies over southern california and caracas venezuela. this is named the full flower moon because it

neiman marcus filed for imnkruptcy today. resorts notified 63,000 employees their furloughs could become layoffs. awandler had to pawn her daughter anayah's laptop to feed the family. >> she asks me questions that sometimes i don't want to give her the answer to, because i don't want to hurt her. you know, i want her to know that mommy's trying, you know. i'm trying. it's just... hard. >> reporter: like this restaurant behind me, some major chains are reopening, including starbucks, nordstroms and macy's. but it could be months before rehired workers reverse the historic downturn in america's unemployment. norah. >> o'donnell: mark, thank you. the country's most-populous state, california, is easing its restrictions. starting tomorrow, some stores will be allowed to open their doors, as long as customers don't go inside. but unlike in some states, nail salons will remain closed. that's because the governor says community spread in california began in a nail salon. cbs' carter evans reports tonight from los angeles. >> reporte

neiman marcus, lord & taylor, j.c. penney and others are reportedly in talks to file for bankruptcy. economist diane swonk says retailers face an uphill bat until convincing customers it's safe to come in. >> it's not a field of dreams scenario where you build it or open it and they will come. the reality is that fear is a real factor. >> reporter: to ease those fear, costco and whole foods announced today that all customers must wear masks inside their stores, and the country's largest malls are providing mask, hand sanitizer, and temperature checks for any who asks, but for many, shopping at the mall is still not an option. >> abas a -- absolutely not. everyone is opening too quickly too soon. >> reporter: j. crew's c.e.o. says this restructuring will hopefully help the business and its brands to thrive in the future. but big picture, the national retail federation says this pandemic has caused an estimated loss in sales of $1.3 trillion, norah. >> o'donnell: jericka, thank you. navy officials say captain brett crozi

before the pandemic and they are in a tough situation and we have seen some bankruptcies, j crew, neiman marcusspeculation as to what will happen next for the department store jcpenney. we to what will happen next for the department storejcpenney. we know restau ra nts a nd bars department storejcpenney. we know restaurants and bars are closed so spending and that sector is down and it is one of the areas where they are spending more because they are at home or. there was a second survey, focusing on the industrial sector that showed an 11% drop. it was a sharp decline and again what we are seeing is that manufacturing all the factories that were first to close when shelter in place took effect has a terrible effect. car production for example is down some 70% and that is having a knock on effect. well, the economic news out of germany isn't great either. europe's biggest economy is in recession after shrinking by more than two per cent in the first quarter of the year because of the coronavirus pandemic. it's germany's biggest slump since the financial crisis more than a decade ago. the uk chi

neiman marcus, jc penny and the central is said to be in trouble and the gap may not reopen. >>> new nurses graduated and licensed but unable to find work. why they feel shalt out when their skills are needed. >>> a victim shot and wipe the killer was in custody before. >>> a pretty significant warm up today. some areas as much as 8 degrees. most of us 4 or 5, a warming trend. how warm is it going to get? i'm be back with the details. across america, business owners are figuring things out. finding new ways to serve customers... connect employees... and work with partners. comcast business is right there with you. with a network that helps give you speed, reliability and security. and enough bandwidth to handle all your connected devices. voice solutions like remote call forwarding and readable voicemail. and safe, convenient installation. when every connection counts, you can count on us. get the connectivity your business needs. call today. comcast business. this virus is testing all of us. and it's testing the people on the front lines of this fight most of all. so abbott is getti

i think the high-end retailer like neiman marcus, saks fifth avenue and others like it, there has beenessure and you are seeing more direct to consumer for the luxury brand, but i think those brands will hold up well. feldman, thank you so much here is ritika gupta. ritika: the trump administration cut royalty payments for utah,rs on the land in paying as little as 2.5% of the value of the natural gas and oil they extract. it is designed to help oil producers survive during the crisis. president trump says it is a badge of honor the u.s. has 1.5 million cases of the coronavirus, saying it is a result of the testing regime. behind germany. drivers into the u.s. dutch in the u.s. are turning private -- in the u.s. are turning private roads into their racetrack. americans actually drove 19 percent fewer miles. california highway patrol says the number of tickets issued driving over 100 miles an hour has almost doubled. india and bangladesh are bracing for the biggest cyclone in almost two decades. it is the equivalent of a category three hurricane with winds up to 112 miles per hour. glob

neiman marcus has had trouble with creditors. all about the moral hazard associated with the fed in the u.s. and whether or not that holds, and whether or not we see spread compression here. alix: right. like you mentioned, we have the fed backstop here versus in em. there's no real appetite you take on duration as there is no true backstop. damian: exactly. this potentially creates a new generation of zombie companies in the u.s. spreadsd expect greater over the long-term, but in the short term, let's see if the fed is willing to be that backstop, as you rightly point out. alix: always good to catch up with you. ask a lot, damian sassower of bloomberg intelligence -- thanks a lot, damian sassower of bloomberg intelligence. coming up, darrell cronk of wells fargo investment institute. what are the recovery trades? we will break that down. this is bloomberg. ♪ these days staying connected is more important than ever. so we're working 24/7 to maintain a reliable network, to meet your growing internet needs. we're helping customers

our stores like neiman marcus and jcpenney considering bankruptcy. >> there is going to be so much fall out from this in the reta tail area. really terrible. >> big names. >> they are big names. let's talk about the rest of the week. it's early. mother's day is sunday. i would like to remind you of that. no pressure. >> what is your request? what kind of weather would you like? >> a beautiful day. >> i got that coming for you. there is talk about this heat coming in. yeah, i got you covered. you know, and it's going to get hotter but for the moms on sunday, with the shelter at home, we have great weather for all the moms to head outside and have time for themselves. let's get new the microclimate forecast. we will show thaw, i want to start off with something a little different tonight. the residenervoirs. we know by now, we are a big time storm system. where are we at this point? we are actually doing pretty good. how strong the rain was last year and we did have stronger rain this past december as well. and the average, 98%. really, really low. and 87%, and san pablo, 82. and should b

ne neiman marcus is in talks with pimco over a deal that would slash whthe company's debt loads >> incredible. >> and not just california tapping the federal government because they could soon be running out of unemployment funds. >> incredible times. >>> we have some breaking news on united. saying it will likely slash thousands of jobs as the pandemic cripples travel demand. these, i believe, are management jobs at united airlines? >> management and we'll also see a lot of front-line employees that will lose their jobs come the fall here is with regards to the management jobs. the company sent out notice to 11,000 in management saying at least 30% of the jobs that comes to a little over 3,400 will by eliminated come act because we anticipate spending millions more than we take in while continuing to employ 100% of our work force is not sustainable for any company. just a couple of weeks ago that united received $5 billion from the federal government one part of this was that we'll give you the money but you must keep employees through september 30 that's what they've done if there is no imp

neiman marcus is close to a bailout deal with pimco. load by half and pimco would take over the company. sales of trucks beating cars for the first time ever in the u.s., pickups out selling cars. offers boosted truck sales and shut downs slowed sales in urban areas where cars are popular. francine: we have plenty more on your markets and a full round of what we heard from the german constitutional court. joining us is michael zezas. great to have you on surveillance we like to dig into the minutia you look at day in and day out read when you look at the u.s. economy and what funding, will the we struggle? michael: we are worried about the potential of drag on local and state governments. of abouta revenue hole $180 billion and potentially as big as $375 billion. clients are asking us a lot about what happens in the next cares act and how much money needs to be appropriated to state and local governments to eliminate the drag. there probably needs to be at least $180 billion. it is not as nest -- necessarily as bad as the global financi

going to recover quickly, but i put it to you that the number of companies filing for bankruptcy, neiman marcusthe list goes on and those are the banner heads versus the small to medium enterprises. there is no way we are going back from 20 million to 10 million or 10% in any quickstep in a realistic way? good morning. >> good morning. it certainly is very challenging. says thereyment data working that a collection into the surveys so the unemployment -- data collection into survey so unemployment could be understated. with qualityblems of data and that permeates areas for what it is going to do is bifurcation a between winners and losers so you will have the obvious victims, which will be the airlines and the leisure , any industry where a physical presence is important to thrive, and daniel have the winners which is increasingly -- and then you'll have the winners, which it is increasingly clear that tech companies are coming out as winners in the they have managed to expand their customer base, so covid-19 is proving a fronts, and the biggest damage will be for the smaller unquoted companies