the one and only terry lundgren. matt: fantastic interview, stephanie. thank you for that. y, you can bring terry to a club so he can worsen ryan seacrest. coming up, we are going to bring it back down. take a look at stocks plunging around the world. china's yuan intervention. stay with us for the details and implications. ♪ ♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. sanford though, and :00 in beijing. a global selloff in docs as china devalues the currency for a second day. will this launch a worldwide currency war? the student debt timebomb is ticking. graduates currently on three -- $1.3 trillion. republicans say will drive the prices up. pimm: where are the world's luxury travelers headed the summary? we will hear from the ways to share luxury residences. ♪ ♪ good morning. i'm matt miller. pimm: i am pimm fox. a look at how stock marke

we will hear from terry lundgren .onsumers are just focused on finding the lowest prices. ♪ with itsy's is out latest earnings report. the retail giant missed estimates. emily chang spoke with the ceo and asked why they had such a rough quarter. terry: consumers are not responding to promotions. we thought we would do more business before and after, we took it out and business went away. we are talking about how consumers are very promotional focused right now. something that is interesting is the international tourists. you are not seeing them shop in the u.s. today, the dollar is so strong. we contracted by location. at macy's in particular, but also bloomingdale's, we are a strong retailer for international consumption. stephanie: how do you combat that? strong't help the dollar. terry: here is the good news. i am going to anniversary that number. i think the dollar will stay strong, that would be my guess. we are entering the off-price business. we are going to have macy's backstage a separate company, separate bus

terry lundgren is joining us. thank you for joining us.r and what happened and what you're seeing in terms of the consumer. and why cut guidance? >> we're cutting-- first of all, tough quarter top line, down 1 1/2% and same-store sales for us, not what we expected. clearly, this quarter was our toughest, going against a 4% comp. maria: a year ago your best quarter comparisons. >> the international tourism, maria, they're not here and because of the strength of the dollar and when they're here, they're not spending on discretionary items. they're going to hotels, but we can track by stores, i can tell you in las vegas how much they spent in brazil versus in canada, versus china, versus germany because of the way we can track this information and they're all down significantly. it's a number for us. maria: the dollar is making everything that much more expensive. >> frankly we benefit more in good times when the dollar is weak and tourists are here and we're hurt more in times like this and frankly the consumers are spending money in differe

joining us is terry lundgren, i want to thank you for coming in today.e appreciate you being here, good news or bad. >> we're going to do that, face the music when we have good quarters, bad quarters. this is a tough one, no question about it. we definitely are seeing that the consumer didn't shop in our categories to the degree we thought the consumer would. a number of reasons, we're against our best quarter of the year last year. that's one issue. clearly, i've mentioned this before, that european, the chinese stores, the brazilian tourists arndt the world, they're just not coming to america, and the strength of the dollar is impacting that. when they are here, they're not spending in our categories. i think finally, you know, you're just seeing where the consumers is spending, and definitely you're starting to see a little up tick. not great, but a bit better, is in automobiles, in housing, it's in health care, it's in, you know, certain -- and they're going to get to our categories, becky, but they weren't there are weren't there to the degree we ex

. >> terry lundgren is the polar opposite of daniel zhang. his critical of his own merchandise.nd this harold square, some people think it's one fifth or one sixth of their sales. we know tourists aren't staying away but they've been hurt very much by the strong dollar. i also felt referencing david of the starboard interview we did at delivering alpha, he's not embracing for rejecting the idea of monetizing the sale of real estate of vacant real estate that didn't matter in brooklyn. >> they did, and they will help the stock price this morning. they indicated they have retained specialized real estate advisers to study their portfolio and find out where further opportunities exist. it's not as though they're going to say we're going down that road but they're not saying no. they're saying we're going to look at it and they may attack advantage in certain instances. do i think they're going to turn around and sell harold square or anything else of that nature? no. and we should point out after that runup after delivering alpha an mr. smith's comments and analysis, the stock is l

earlier, ceo terry lundgren explained to stephanie ruhle. we'll have a separate company, separate as this, by an off-price merchandise and taking discontinued merchandise from macy's stores and transferring it to these stores. we open up six this fall season. we will compete with nordstrom rack with our own options like that. meanwhile, macy's reported second-quarter sales unexpectedly fell. it had offered discounts to move out merchandise whose arrival had been delayed. and macy's just signed a deal with alibaba, making it the first u.s. department store alibaba's t-mall global. has been ordered to legalr old company's costs after she sued for sexual discrimination. and it was home sweet home in major league baseball. tuesday marked the first time in history that all 15 home teams one on the same day. viewing each game is a 50/50 proposition, sports company stats but the odds of a home sweep tonight with a full big-league schedule at one in 30 32,758.- those are just some of the top stories we're following for you on this wednesday. as the

hour, i am excited to share with you in interview with macy's ceo terry lundgren.eir earnings numbers out this morning. the stock is down 3% and i may have an activist knocking at their door but they've also got back to school shopping which i don't want to talk about because it bums me out. you will have to watch that it 10:45 a.m. erik: here's a look at our top stories. hillary clinton has agreed to turn over private e-mail service to use while secretary of state. she has told aides to give the server to the justice department. authorities want to know whether she sent and received classified e-mails through a nongovernment system. the sharp downturn in the automobile market in china follows the june 3 .4% decline. such monthly third contraction since september of 2012 and china is the worlds biggest auto market by number of vehicle sold. gross has declined as the economies fooled -- cooled. wallenda completed his longest tight rope walk ever in wisconsin. was builtor wire above the speedway. fallsked across niagara in 2012. stephanie: i wonder how you demand you

it echos what we heard from macy's ceo terry lundgren yesterday.is shopping. >> you saw that in the numbers. department stores and apparel have been weak. the focus today shifted back to the u.s. and better economic data and odds of a september interest rate hike and dollar strong strengthening against the euro and yen. we talked to a chief economist, china's devaluation will go down 10% but not in the u.s. we are seeing core inflation move up. this positive story in the united states continues. that was the focus with consumer discretionary outperforming. >> let's put that question to rich bernstein. which way does inflation go? >> fed will do what the fed is going to do. who knows when? the guess is they will probably raise rates. the question is september or december? the important thing to remember, we are on the down side of a global credit bubble. the global credit bubble is deflating. as credit deflates, it's really hard to get inflation. we've called this the walmart world. everybody is trying to undercut everybody else to gain market share

betty: and terry lundgren mentioned that yesterday. stephen: i believe that, too. that is another conversation for us. how much down market should macy's go? i think nordstrom rack represents x amount of their sales and probably another amount of their profits. but they are very good at what they do. they have a beautiful store. and they are investing on their e-commerce. that is a smart move. betty: what is it about their e-commerce site that is better? stephen: ease-of-use. that they keep updating and putting new things on their to make it easy for customers to find and navigate. and even shopping. easy returning, ease of delivery, not overly expensive. forything should be these the customer, whether it is on the tablet, because more and more sales are coming from a phone or a tablet, versus the desktop. and they should be out on the forefront. betty: so we know that trouble is going on in that space. where do you think -- what is the sweet spot right on retail? stephen: i don't know if there is an exact sweet spot as far as where you can be. we had this conversa

earlier, chief executive terry lundgren explained the idea. >> a separate company, a separate businessing off price merchandise and taking them and transferring them to different stores. opening up six this fall season. we will compete with tjx, nordstrom racks. pimm: meanwhile, macy's reported sales and profit lower than analysts estimates and offer discounts to move out merchandise. arrival delayed because of congestion at west coast port. here is something you don't see every day. 96 million black plastic balls .oming -- covering a reservoir they were put there in order to keep the water from of operating and causing the chlorine to react with the sunlight to create domain. 30 six cents and the flex ultraviolet rays. these are designed to 300 million gallons of water evaporating peach year. turns out they are much less expensive than putting a tarp over an entire reservoir. those are your top stories at the moment. at the moment markets are closing in europe. for the latest, we go to mark arden. mark barton. mark: the biggest drop of 2015. billionates to 470 euros. these companies a

i will talk with terry lundgren on the adm alert and later on, alibaba ceo daniel is sa

terry lundgren fan. i think he's done a great job. still ahead on the bloomberg market day, the future of your automobile is not going to be built around its engine, but the maps used to navigate. who is ahead in this game? we will give you the details. ♪ olivia: welcome back to the bloomberg market day. i'm olivia sterns. pimm: and i'm pimm fox. olivia: makers of memory chips are sliding today. julie hyman has the details. micron is affected by the downgraded its the worst performer on the s&p 500 today. downgradingica is the group, saying they are spending too much money on capital expenditures and that they lack discipline on. this is amidst a tough environment for these chipmakers. this chart comes to us from bloomberg intelligence. this is the price to sales ratio of some of the memory makers versus the semi conductor index, say broader measure of the chipmaker. lagged. it has really so you have micron in the blue and pink. held up well and then has fallen as the semi conductor index continues to go higher. memory chipmakers have

macy's chairman and ceo terry lundgren tried to put a brave face this morning on "squawk box." >> it'sough one. we definitely are seeing that the consumer didn't shop in our categories to the degree we thought the consumer would. >> mr. lundgren also said that macy's is seeing a slowdown in sales to foreign tourists due to the stronger dollar. meanwhile, alibaba shares hit a record low despite announcing a $4 billion stock buyback. the e-commerce giant posted the slowest growth in more than four years. telling cnbc he remains upbeat about the future. >> we closely monitor the chinese economy and the impact on our chinese consumers' behavior. but what we observed, that consumers still coming to our retail platforms to do the shopping because of the lifestyle change. so we are confident for our long-term growth. >> kayla tausche has been following the story for us all day. and for some time now we should say, covering the conference call with analysts this morning. and joining us now with the key take aways. the shares are still down almost 5%. >> well, i think it's safe to say that inve

ceo terry lundgren told maria bartiromo, it has been a tough quarter. here is what he said affected the company's bottom line the most. >> we benefited more good times with dollar weak and tourists are here and we're hurt in times like this. frankly consumer is spending money in different places. they're buying houses. they're buying automobiles. health care is more expensive and downloading every possible app. at some point in time they will finish that and get to our categories and i'm hoping it will be second half. melissa: hmmm. kraft hinds will cut 2500 jobs in north america -- kraft-heinz. the food giant is looking to eliminate positions and budget cuts as two companies begin to emerge. >>> latest details on the toxic chemical spill in colorado and the potential legal action. ew. that is brewing. david: looks pretty awful, doesn't it? >>> cracks in "the donald's" lead. why there is concern for trump in the very latest poll. we'll tell you about that. melissa: "deflategate" day in court. tom brady appearing before a federal judge. hear how the nfl

matt: i was thinking of terry lundgren.kind of macy's backstage or bloomingdale's behind the scenes. retail did not look that great last week. it is looking at little better today. what do you think about the state of the u.s. consumer? >> we think they are improving. we have some great tailwinds. low oil prices are great for u.s. consumers. we have a strengthening dollar and lower unemployment. we liked the consumer discretionary space right now. people are spending money that they were not spending before. they are spending it on things they did not need to spend it on before. clothes, electronics, cars. matt: you consider that discretionary? the changing credit , over 60% of the cars sold in the last year had loans at 72 weeks, which is crazy. matt: why is that crazy? it is just different. don't worry about it. cory: it is subprime lending. you are extending credit terms to try to reduce sales and maybe that does not reflect the house -- health of the consumer. >> they don't have to be driving period. matt: not everyone

ceo terry lundgren admitted that it was going to be a secular program yesterday following those earningslet's ask "trading nation," ari wald is a technical analyst with oppenheimer, dennis david is with harvest volatility advisors. ari, do the charts tell you that the is over for these companies? >> it doesn't say the worst is over but they do say that this is an industry-specific issue for multi-lines here. hard lines are performing. consumer discretionary sector as a hold has been in a steady up trend for years. let's take the big picture view of kohl's. it's been in this big 15-year sideways range. no up side progress since 2000. once again we have this inflection from $80 resistance. that marked the peak in 2002 as well as 2007. the lower end of that range, that's $45. we're not there yet. the stock's in free fall. no base yet, no support. >> dennis, what about this idea from the fundamental side that prices at the pump are going lower. consumers will have more money in their pocket. we're in the middle of back to school. do any of these play into the fundamentals? >> they do play in

. >>> macy's ceo terry lundgren joined "squawk box" earlier this morning. >> it was a tough one. no question about it. we definitery are s rr rly seei consumer didn't jump in our categories to the degree we thought the consumer would. >> if consumers aren't shopping at macy's, where are they shopping? two retail pros, stacy, if they're not buying apparel which we know has been a weak category, what are they buying? >> yeah. general merchandise is a tough place to be right now. so the consumer is just shopping elsewhere, they're shopping on experience, they're shopping and eating out, they're shopping on travel and really staying away from apparel. even the handbag and watch category has slowed down significantly so that's a big core category for macy's. they did take comps down from the year from 2% to 0%. i would argue that comp needs to come down probably even further for the rest of the year. >> the guidance there, jan, obviously consumer discretionary stocks are not all created equal in this environment. where would you tell investors to buy? >> in addition to what stacy said

. >> terry lundgren dagen yesterday said a tough quarter. >> very tough quarter i predict i might being into the end of the year, it will be great, in terms of the boost from. >> he think real sales will move up by year end tom brady goodell in court we talk about incider mike garofalo from fox sports. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive? to breathe with copd?ow hard it can be it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled copd maintenance treatment that helps open my airways for a full 24 hours. spiriva helps me breathe easier. spiriva respimat does not replace rescue inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva respimat. discuss all medicines you take, even eye drops. if your breathing suddenly worsens, your throat or tongue swells, you get hives,

terry lundgren basically invented the word omnichannel.e commerce, social commerce work within their bigger ecosystem, supporting the instore experience as well. >> jason, thanks very much. appreciate it. >> nice to be here. thank you. >>> coming up, a shake shack taste test. >> really? >> are we getting burgers? >> no. >> they're teasing us. we're talking about the stock, not the burgers. and this morning, investors are big fans big time. but first, as we head to break, check out oil prices this morning. you're watching "squawk box" on cnbc. we're first in business worldwide. ♪ cheeseburger in paradise lily lily, may i call you lily? i don't really know what else you'd ca- lily, i want an iphone, with a great data plan to share pictures of this smile. well, all of our mobile share value plans come with rollover data so the data you don't use this month rolls over to the next. wow. using unused data for all sorts of uploads. my constituents love... to... watch...me talk. today's leftover data means a brighter future tomorrow america. write

we listen to what macy's ceo said about gas prices last week here on "squawk box" terry lundgren. >>spending in the lower channels. i don't know that for sure. >> that would be my guess and my forecast. i thought we would get blor of that share than we did. i still think the consumer gat a raise if you will. i think the gas prices will stay low for some period of time. so that should continue t. consumer is saving money. you see the savings rates are high. >> joining us with his take on all this the ceo of jay rogers world wide. it is a theory that somehow gas prices go down, people will spend it on retail. we've talked about i. you don't agree with it. >> i don't like the story. gas prices are higher than they were in january because of refinery issues. you keep saying oil going down is not gas going down. if you are in michigan, wisconsin, california, alaska, you are angry. >> the other angle of that even if you do believe good oil prices are lower and that actually it's affecting people at the pump, it's not bringing people in to boy retail. they may be going to restaurants, home