supervalu. all the names. sprouts. weis, they'll have a harder time competing. give a shout-out to anthony declemente, he had raised the price target on amazon to $1,100 and he was trying to justify that he had 975 it would be faster than walmart and costco, but the primary reason he thought they were going to get faster growth was the amazon was going into the grocery industry he noted it remains one of the largest and most underpenetrated markets for amazon nice shout-out to anthony declemente on that one we had the biggest week of inflows since the elections. etfs hit all the inflows the mutual funds had modest outflows but it's going into the things that we see all year, what we call plain vanilla etfs. s.p.y. which is the biggest out there and the core s&p the mid cap, all of these plain vanilla etfs continuing to get big inflows. financials had big inflows overall. the xlf attracted more than $1 billion in investments through the week so they're eager to go out and buy banks right now. so xlf is getting big inflows. we talked yesterday about the concerns a

i don't care if you're kroger or walmart or costco or supervalue, this purchase, it changes everything that's because amazon which struggled with food, mightily, has found the trojan horse in the supermarket industry and it's achilles heel all at once it's averitable homer or home run, judging by the way amazon stock rallied today. i do not think people realize how big this is. amazon's like a modern mechanized army, rolling over the opposition, just like tanks rolled over the trenches in world war 12 in one fell swoop, it will do to the supermarket industry what has already done to the mall how do you compete against a nonunionized company that knows exactly what its customers want. a company that can afford to give away eggs or milk to amazon prime members without worrying about the bottom line? i think that's exactly what's happening now. i know whole foods has just a little more than 400 stores across the country but that's just what it looks like now whole foods got sidetracked that did the format it thought -- anyone in grocery was crushed by this today and that makes sense, at l

billion in market cap did those supermarkets that compete in the space from sprouts to krogers to supervalue target they all lost 25 billion collectively in market cap meanwhile, amazon as you say, up over 15 billion in market cap as they're spending 13 billion. i thought this was a great deal. i still believe this is a great deal i talked about the lodgistics and layout that they want to build out and who has it already. the things that they don't have already. target has it. walmart has it a couple of other retailers has it, ross, but what i'm looking at, i thought this was a brilliant play if you just did the math, 450 store, 250 bucks a square foot, figure 40 to 50,000, they paid between 5 and 6 billion, they would have built cinder block warehouses for that. now, they have whole foods >> in upper echelon neighborhoods, let's think about where whole feoods is. where those buildings are located right now. and you know who else is getting hit right now, big pharmaceutical drug companies. you look at cvs and wall greens, there's a reason they're down today. amazon just basically put a distr

the likes of supervalu and target, supervalu taking it harder than some of the others.a look specifically. we have got the consumer price index here. this gets to the heart of what is going on. this is the year-over-year change in food inflation. positivenot seen a read on it since the end of 2015. it is abating to some extent but the question is what will happen if indeed these pricing wars heat up even more? will you consider -- that a negative number? subject in the grocery industry, at this time of intense come petition, seeking julie, a german discount food market chain is helping is first 10 u.s. stores partner,s now is a great to have you on the show. model the hard discount disrupt the u.k. market with intense power. how successful do you think these guys will be in the united states? question -- >> we think they will be incredibly successful. we think this model is real and it is here to stay. they'll grow between 8% and 10% in the next five years, five times the rate at which traditional brochures -- if they do not act quickly, they could and the between 30 bi

earlier today i saw supervalu down 20%. now it is down 17%. kroger down 14%.10%. lasts time i checked walmart was down five or six bucks, down to 73, $5 lower. national grocers, i don't know what that is, down 5%. costco, huge company, down 7%. why? why, liz? it is because amazon is going to take over the world and grocery included. liz: kroger is included to want to buy whole foods. wow it is really taking hits today. this is is direct strike at walmart. walmart gets 1/5 of itsç revens from groceries. stuart: yeah. >> this is such a big deal even european grocery retailers are down as well in sympathy. stuart: i think this is the large of the outflow of cash, the largest layout of cash amazon ever made. i don't think they bought anything of equal value. liz: biggest deal ever. stuart: look at that stock go, virtually, 1000 bucks a share. >>> as we told you earlier today, marks two years since then donald trump came down the golden escalator in trump tower and declared his candidacy for the white house. i was there when it happened, watching, listen to what i

pockets, we saw the prices of some of those competitors in the grocery space like a kroger's or a supervalu, take a big tumble. there's a lot of speculation that they cannot afford not to try to make a bid over this particular deal. >> agreed. it's not going to be without its challenges, for amazon to complete this deal. one of those challenges might be competitive bids. one challenge that the competitive bidders such as an a kroger or other traditional grocer would face, people ask about antitrust. if you already have a large share of grocery and you're buying somebody else who has a large share of grocery, that might get more scrutiny, whereas amazon is less than 1% of u.s. grocery sales as of today. something else to consider is whole foods had already begun to roll out this new slightly lore price, smaller footprint whole foods 365 concept, which i think appeals more to millennials, more technology-forward, more data-driven, which could be positive for kroger but that could fit very well with amazon's data-driven models. >> we will see. to be continued. a.b. mendez, thank you. >> thank

i'm not sure supervalu is big enough.on has certain expertise and they just acquired certain assets they did not have. walmart has certain assets that they already have but there are certain expertise they don't have. but that makes sense to me. erik: great seeing you. the future of the grocery is miss. it played out on friday but it has not played out fully. innie: i love seeing a trade motion. that was a fantastic interview. it's not over yet. if you look at the stoxx 600 at individual stocks, cargo is one of the best performers and i will talk more on that later when we do the european close ♪. this is bloomberg. ♪

if you look outside of these, you see this spread to the like of cosco, supervalu and target, all ofseeing steep declines. what am i talking about when i talk about food inflation? this is food at home specifically. goes back to 2010 and you see the declines in year over year that we have been seeing in the cost of food at home. it's good news for you and me and those constituents the government was just -- the governor was just talking about, but it is not good news for the grocery store chains. in debating have but if there is a price war, they could see some pressure. are also looking at income versus grocery sales. we have grocery store sales year over year in blue going back and there is a relationship when you see average hourly earnings to the low into the negative and see grocery store sales follow. you would think this is a consumer staple, but there is a relationship. the treasury department is honing in on foreign ,nvestment from foreign nations particularly chinese firms that could be subjected to extra scrutiny. this is according to an administration official. our guest

but whole foods brought in three times more revenue than sprouts and supervalu and whole foods is supposedo be a specialty store, right, guys back to you. >> that is right, susan li thank you. with us now, a voice in the industry, ceo of the american apparel and footwear association. let me correct myself here i believe whole foods does sell cheerios, organic cheerios, but there are a number of main street things they don't sell. we're going to talk more about amazon rick, what do you think the legacy of this deal will be 18 months, two years from now how big a deal is this >> this deal is beyond huge. this deal is so exciting i wish i could get as animated as jim cramer was this morning. >> don't we all? >> yeah, i mean, i've never seen anything quite like that for the world of retail, which needs some exciting and encouraging news right now, this is absolutely monumental this is equivalent to iphone, ipad, imac moment. this is going to change retail but for a lot of reasons that i think some of your folks may be missing. you know, if you go back to the walmart deal last year where they b

supervalu, kroger, target, walmart, all the competitors in the grocery business suffering on a weak outlook from kroger this week got pummeled. some moved to levels we've not seen since 2013 and 2014. they will have pricing pressure and profitability issues. melissa: for sure. david: phil, oil up slightly. below 45 bucks a barrel, dropping for the fourth straight week in a row, down more than 11% since may. when will we ever see it go up again? >> you know that is the big question. we're hanging on by a thread right now, dave and $44 a barrel is a number a lot of traders believe, i do believe, that if we go below we'll see real pain in the shale patch. all those rigs we've been adding, we'll stop doing that and it will raise risks of bankruptcy. but i do think we're pretty darn close to a low right now. even though this bounce today was very small, we'll roll over into a new contract in the next week and it is going to raise some hopes we could see this market start to come back. really we've gone straight down four weeks since opec said they would extend production cuts. we'll be coming up

we're seeing not only supervalu, kroger, tar got, coming under pressure but the food companies stocksmucker's, kellogg, mccormick spices and the like. everything under pressure across the board. largest acquisition ever for amazon, right? 13.7 billion. the deal that didn't happen was target and sprouts farmers' market. that was last year. they pulled out of that. see what happens. some of these stocks will be closing at lows -- neil: better part of that deal. that he not trying necessarily to reverse but scale it back, to something advantageous for us to remind cubans they have a lot more to do. he will speak. marco rubio, of course the vice president. full-scale effort come back, we're keeping track of congressman steve scalise's condition. connell mcshane with an update on that. hey, connell. reporter: hey, neil. all we can say fox has been told congressman is doing better. no official change in his condition, still critical. last night at the congressional baseball game, prayers at second base. both parties gathering at the position. he would have played, scalise, in the stands. pe

with news of the merger, big players like kroger, costco and supervalue took a hit over the weekend, have more selection and lower pricing and two really, really big players making that happen. it will be walmart and it will be amazon. >> reporter: amazon's move comes with some risk. this is the ecommerce second major attempt to conqur groceries. amazon fresh has not been a wild success. and amazon knows this. research shows 74% of money spent on food is still spent in traditional stores. >> i like to touch, feel, smell, look. >> reporter: it's an opportunity for amazon to turn the grocery industry upside down, similar to what it did to books and household products. ceo jeff bezos will capitalize on the whole foods brand with an estimated 80 million americans currently subscribing to amazon prime. amazon's acquisition of whole foods will give them a pretty local footprint including here in california. 450 stores that may become the distribution centers and, guys, it will really change the way online retail is blended with offline retail. back to you. >> amazon's world, we're just liv