we are talking about whole foods and amazon and the idea that whole foods might have wanted $45 a shareas offered by amazon. alex: when these big deals are announced they come with a proxy statement, which gives details about how the deal happened, and of the various bids along the way. it is like christmas for a reporter. one of the details mentioned is that during negotiations between whole foods and amazon, there was a bit of a back and forth on price. goldman sachs representing amazon in this transaction. taking a hard line in negotiations. if you backtrack, basically what we learned through this was april 18, jana partners said we have an 18.3% -- a .3% stake in whole foods and we want to talk about strategic alternatives. at that point, three firms came in and said they were interested in having a discussion if you guys are interested in selling your business, or at least part. at that point, you bloomberg aig, saidspencer and cr that amazon was looking up whole foods in their internal review. that prompted a consultant from whole foods to reach out to amazon and ask if it was tru

about getting rid of cashiers getting rid of a lot of jobs delivering food by drone using these whole foods stores as socially drone launching pads it warehouses to really enjoy near the food market in america but just like to actually drivers truck drivers cashiers these are the minimum wage or little more than minimum wage jobs that are the ball work of the american economy if you get rid of drivers with automated goobers and you get rid of truck drivers with automated trucks you know you going to get really cashiers at whole foods and other grocery stores have to compete. now with amazon whole foods you're going to put millions and millions tens of millions of people out of a job they're on to basic income as you say this is the likes of mark sucker bergen people like that are coming forward saying well maybe we need a basic income because they themselves don't want to give up their monopolistic positions over eyeballs on the internet so for example i saw that something like four out of ten dollars spent on line is spent on amazon and they hope to capture even more of it it doesn't look

a whole foods just shot up. >> if you have a whole foods center in place, more likely to see increased foot traffic and we would expect retailers would want to be around those. >> increased foot traffic will come from those who may have stayed away before because of higher prices. now, they have a reason to go. if prices are and maybe theye picking up some bedding they ordered on amazon. other centers with competing grocers are likely to see less foot traffic, which will hit the grocers, connect its stores and the real estate underneath even harder. >> you might see a degradation, situations where rent growth stagnates and at the end of the day, that's not happening because the best retailers are like ly to desire being near th whole fo center. >> these centers are owned by publicly traded real estate investment trusts, which could take a big rit. regency and wine garden are the most exposed to whole foods competitors. on the plus side -- like american assets could do very well. two competitors at an amazon whole food deal are unlikely to hurt are ethnic and value oriented shopping cen

population even why amazon has trouble with, hence why they're buying whole foods.a great concept seemingly had great financials the company took in $77.8 million in revenue by 2014 that figure had quadrupled to $340 million by 2016 it more than doubled those are staggering positive numbers. unfortunately the value of large numbers makes it difficult to sustain those numbers. in the first quarter, blue apron posted 42% revenue growth. i know, most companies would kill for that. given that the company had 133% revenue growth last year, it feels so much disappointing. no one expects blue apron to double sales for all eternity. it's natural that the deceleration growth would make people less enthusiastic about the stock. same thing happened with the gross ma gin in 2015, the company's growth margin expanded by 1,550 basis points egads. in 2016, it rose another 1,030 basis points it drove the bulls wild. but so far, 2017 has been a different story. blue apron isn't just experiencing a slowdown here, their gross ma gin dropped to 31.2%. for ages this company's fabulous m

amazon whole foods.terrible idea." >> jimmy: oh. [ cheers and applause ] you can take your things. why does it have to be in the thing to wheel it off? [ laughter ] by the way, i could use a hummus drone. that could be the key to peace in the middle east. a hummus drone. [ laughter ] i'm not sure if they have these at whole foods. have you seen the unusually shaped deep sea creature that's been online? this is an animal that's been -- it was discovered by a team of horny australian scientists. [ laughter ] they call it the peanut worm. for real. this is what we know about the peanut worm. it lives 4,000 meters under the sea, and it's jewish. [ laughter ] it's a big deal. they say this is the first penis-shaped creature discovered by scientists since nba commissioner adam silver. [ laughter ] of course this interests me because i have the maturity level of a 12-year-old. so we decided to do a study. we went out on the street today with a picture of the peanut worm and asked people a simple question. we as

amazon purchasing whole foods for $14 billion. announcement that i think helped nike a whole heck of a lot that they are going to be opening a store front on amazon. these are strategic deals. they speak to some of the deals in retail and i think when you look at the department stores we know this very well, that there is just way too many of them they need to consolidate they need to close some of the under performing stores. the real estate market there's some good real estate to monetize there they're cheap. we all know thesentiment is poor there's probably stuff to do >> quick one i'd make comparing the basically boxed retailers and things like that to whether you're talking about nike or you're talking about whole foods, there's a difference between brand as retail versus these stores i don't know that it's all that comparable the other thing is everybody talks about the fact that they have these great real estate assets if that's all of the assets that they have and they're looking to monetize it, that's a buyer's market when

is logical but i am not convinced at this point. >> there could be a drive through window at the whole foods can pick up my alson goods tha amazon foods that i ordered online >> that's where you see the changes and what the evaluations is on the land below >> not only for convenience but in terms of brands >> whole foods for something, namely, healthy, organic products and if you had the whole things are available for amazon, you cannot say all of them or most of them fit in the brand definition that whole foods have >> that's more of a retail question, of course. what it will do is drive more foot traffic to the center and the more foot traffic you have not just to whole foods but the surrounding stores that's where you see occupancies so up and more traffic going up. >> they're benefiting now because amazon is going to be apart of it. they were suffering because amazon amazon them out of business >> absolutely. i asked the question, well, would the warehouses suffer because of this because we have seen such a growth in the a warehouse sector this could become one of those distribution cent

thinking about that, work in the opportunities be, and thinking about how they can leverage on the whole foodscouple of things we know. the restaurant business is an $800 billion industry, which is bigger than the grocery market. digital penetration of digital food sales is over 20% in china versus 2% in the u.s. the margins are ripe for the taking. you put that together, we think we can be in a situation where amazon can leverage their data, their analytics, and predict the kind of preferences of each individual market, leverage the infrastructure of whole foods to act as a commissary, slash the margins to 0%, and then deliver potentially celebrity chef tie-in dishes at five dollars a pop for prime members. i think it could potentially open up a whole new array of food services beyond delivery and grocery. >> wow. you were just talking about as a seed investor perhaps not the time to be going into the food delivery companies, even though it might be the time to look at delivery or this ipo. do you see this sort of potential for the restaurant chains themselves to be disrupted by technology de

amazon's decision to acquire whole foods market took many by surprise. ich market amazon will disrupt next. amazon is encroaching into the territory of restaurants. andentire prepared food delivery market, doubling up on the grocery opportunity. theree an analyst with us a partner at passion capital. talk us through your report. it is a fascinating one. you think this is a $1.5 trillion opportunity for amazon. james, james: the thing is, there is no way that my thinking 's in line with jeff bezos thinking. he is probably several steps ahead. about how they could leverage the whole foods infrastructure. here i couple things we know -- the restaurant business is an $800 billion industry. over 20%ood sales is in china versus 2% in the u.s. the margins are right for the taken in terms of prepared food. a think we could be in situation where amazon could leverage their data and analytics and predict the type of taste preferences on the palate of each individual markets, leverage the infrastructure of whole foods to act as a commissary,/the margins, and then de

i still have that tweet in my mind, i still felt the need to defend my local whole foods because wholeade it -- i worked for years to battle the food desert in new york and new jersey and through all creative means from urban farming, acres of farms to having supermarkets move in or whatever. but we have a crisis in our country right now. you're seeing trends that often are coming about by a short termism. >> let's bring in the executive editor kara swisher. good morning to you. >> good morning. >> good interview with the senator. >> yep >> between that interview and pe low pelosi's article, are you sensing a build in democrat politicians targeting big business >> well, i think the antitrust investigation certainly have gone by the way side in comparison to europe n a the love ways senator was very much talking like european regulators like margarite in that the big companies got too big and we have to do something about it. it's a very valid thing to talk b there hasn't been any action in a long, long time against any of these mergers and so i think a good thorough looking at them is

whole foods had earnings at 36 times a share.esult of amazon expressing interest in buying whole foods. let me turn back to you now. inflation is a huge interest here. you look at the role that is playing in the venezuelan economy. proceed this forecast will continue to get bigger and bigger? casey: yes. we also have a situation where approaching rate is nine boulevards -- bolivars. moreave a situation where imports are needing to be sourced through a private sector when they are being constrained through the official channels. david: what more could the treasury department to hear? do here? i'm sure they will be watching this weekend. casey: they have to weigh the impact on u.s. interests and u.s. refiners and oil prices in the u.s. a lot of venezuelan crude is exported to the u.s., particularly in the gulf coast you have refineries that are dependent on that. there are u.s. oil companies lobbying against the sanctions. might be politically productive or strengthen the regime, as well. i think another question for the u.s. is is

whole foods is not in the guidance it's probably going to be an investment phase around whole foods so analysts need to start to take that into consideration but the net of this they did a good job of explaining why the margins came down. >> so you give the quarter what grade then >> i give it an a minus and the reason is that the unit growth accelerating aws in line with with last quarter and lastly is that the areas that they're spending in makes perfect sense that they're spending to build out content and fulfillment and that's the right thing for the long-term. >> thanks for getting on the call and bringing us the headlines as well. let's bring all of this back what's the need to rush into a stock that's performed so aggressively well. >> it's not a structural change how does he know that just yet fulfillment, whole foods, i don't think we have the answers. >> maybe people are questioning what's the need to rush out of it what's the need to rush out of it >> it's up 40% the stock earlier in the month was at 950 in june it was 950 the stock was up 14% and can we take it easy on drun

thinking about how they could leverage the whole foods infrastructure. ouple of things we know. the restaurant business is an $800 billion industry, bigger than the $700 billion grocery market. digital penetration on food sales is 20% in china, 2% in the u.s., and the margins are ripe for the taking. you put that altogether, we could be in a situation where amazon can leverage data and predict the taste preferences, the pallet, of each individual market, average the emphasis are of whole foods to act as a commissary, cut the margins to 0%, then deliver potentially celebrity chef tied in dishes for five dollars a pop for prime numbers. it could potentially open up a whole new array of food services beyond just delivery and groceries. you were eileen, talking about as a seed investor it is not the time to be going into food delivery companies, companiesh we have that have recently ipoed. for thehe potential restaurant chains themselves to be disrupted? >> yes. i completely agree with james. there are other categories. i don't think it will end with food. as

even as amazon spends capital like nobody's business in order to integrate whole foods and those distribution>> you do have to believe that there will be some additional fulfillment they have to do. get wholey once they foods on board with amazon. i think that eventually we will see margin leverage. there likely will be some increased in the first-ever 2018 after we see whole foods close later this year. it is important for investors to keep in mind that margins are over time likely to expand, but in the near term, whole foods spending on fulfillment and spending on other fulfillment for prime, same day, same hour delivery, video content, salesforce for amazon web services and for advertising, will pressure margins to some degree. vonnie: retail revenue growth has been 22% in that area, does it continue at that pace? how long can that happen for? >> the good news is that, from overall retail buying perspective, online is still a very small component of global retail sales. even in the u.s., online sales desk0%-50% of u.s. retail 10%-15% of u.s. retail sale and their scale when opportunity for

you have full commitment from the likes of walmart now, what does it mean for grocery once the whole foodseal is closed then you, once again, set up against walmart. >> are they explaining enough about what they're investing in, how they're going to approach the grocery business, how they're going to sacrifice all of this margin profitability >> not a lot of visibility into that as is traditional for amazon i think, however, i said this on the show before, a big part of the whole foods piece is delivery, right? i think for amazon, for any kind of e-commerce play, it's a delivery hack. the faster you can get it to the customer, the more it feels like going into this >> it's not as really as if it diskorn disgorged a huge amount of the up side. but amazon for this run it's had over however long a period you want to look at, it almost every year had a double digit pullback you haven't had one of those in a long time. that's been the case for the market as a hole it does show that you even on this huge trajectory up, there was pretty some jagged parts of it >> so now add that we got the cleare

you look at whole foods acquisition and amazon and they they're going to be a number five player. not close to taking over from a market share perspective. how can the government command some control over this they're just in a lot of spaces. >> david e commerce growth last year, they had one of every two. there's no shortage of issues that the government, let me tell you, when the government set their sites on microsoft, that stock outperforms for like ten years. when you look at the sell side, they're all in one side. investors are on one side. >> if 80% of the market share we're gaining, 100% agree. but this is different. they're not capturing that kind of market share. they undercut everybody on price. that's not bad for consumers by any means. but there's enough lobbies out there to put pressure on the feds to look at a lot of different businesses, were there for example flexing their muscles. looking into amazon whole food, looking at every business. >> the combine will have 3.5% of groceries. not even -- every industry they're moving into, they have the potential to really

should investors be concerned about it because of amazon and whole foods? ause of all these other things? david: if i were any food related delivery service, i would be watching amazon with incredible care. the fact that they bought whole foods, which surprised most of us, just goes to show the that they view food as part of their conquer the world strategy. i do think so. i think they should worry. seriously. emily: should there be any more scrutiny on how this is handled? not knowing that amazon/whole foods was coming? alex: it seemed like they did what they had to. i talked to people around the deal, not around the deal who are in the industry. if they launched the deal after the amazon announcement or if they waited until after labor day, this idea was still going to be there. the valuation they went out at is very strong. as we talked about, it was valued more richly than most e-commerce companies out there. the valuation made some people point scratch their heads. it seemed like they did what they needed to do to get the deal done. franklin, blue apron

they're backing it up with retention and engagement, this is worth a look at these levels. >> what's whole foods going to do for them? >> i think what's interesting is a number of facts to the transaction. i think the first and foremost is it gives them credibility in the fresh food market. that's something they've lacked. they've tried to get into the grocery space but never had the suppliers backing it. this will help to move prime members from the prime tier to the prime fresh tier. i think there's a private label play here. you'll see the third and fourth brand of whole foods removed and see it replaced. on top of it all, too, i think there's a lot of interesting ways that amazon can redesign the stores, make it more of an experiential feel. there are a number of angles that make more and more shoppers coming back and praying for a higher pricing tier. >> r.j., thanks again. good to see you with morningstar. >>> another big company reporting after the bell was dell component intel. they earned 72 cents a share beating it by 4 cents. revenue came in below 15 billion and ahead of consensus. in

amazon's acquisition of whole foods is peaking interest -- has piqued the interest of other companiess is martin mignot. index ventures is an investor in -- going back to 2015, you wrote a piece saying the $1 billion food delivery wars would eat into the dominance of traditional grocery retailers. it's happening now. how much further has it got to go? are we hitting saturation point? martin: i think it's the beginning. i'm surprised it's taken so long for traditional retailers to enter the space, to start realizing that they have to do something. i think it's really taken a long time for some really well-capitalized, cash-rich companies to really move, but i think it's just the beginning. food penetration in the u.s. is close to 1% or 2%. it's a bit closer to 5% in the u.k. on average for the rest of the retail industry, it's close to 25%. food is much harder to deliver. it's fresh. logistics are compensated. i think -- are complicated. i think there is still a way to go. i would be focusing more on the takeaway market, which i think will eat in the grocery market -- eat into the groc

whole foods market. >>> health care hit.ore the fourth of july. >> if we don't get it done,ites just going to be something we're not going to like. >> so now the president's proposing repealing obamacare now and replacing it later. and he's working on a new strategy with one of his frequent critics. >> we need repeal. we need replace. trying to do them together hasn't seemed to work. >> centers ben sasse and bernie sanders will both be here live as health care ledge slaz hangs in the balance. >>>

amazon's proposed deal with whole foods could be a game changer for food delivery startups.is is bloomberg. ♪ caroline: now, a big milestone for lyft. it has announced it is now providing over one million rides per day. the company says its service, which is only available in the united states, has spread to cover 80% of the u.s. population. the announcement highlights the company's growth and momentum as it continues to battle with uber, note it does have a way -- though it does have a way to catch up. uber reaching 5 billion cumulative rights worldwide -- rides worldwide. amazon's acquisition of whole foods is peaking interest -- otherqued the interest of companies. still with us is martin mignot. is an investor in -- going back to 2015, you wrote a piece saying the $1 billion food tolivery wars would eat in the dominance of traditional grocery retailers. it's happening now. how much further has it got to go? are we hitting saturation point? martin: i think it's the beginning. i'm surprised it's taken so long for traditional retailers to enter the space, to start realizing

like this — the deal it announced last month to buy the supermarket chain whole foods for over $13 billionn putting increasing pressure on bricks and mortars retailers in the us. optimism about the company's future has helped to push up amazon's share price. since january, amazon shares have risen by more than 40% to a new record, making the company worth about $500 billion. that has proved very lucrative for this person — the firm's founder, jeff bezos. on thursday, he became the richest person in the world, overtaking microsoft's bill gates. but it was a brief reign. as the share price has come down again, he has dropped back into second place. what you have to remember is the market is making him rich based on his ownership of amazon, and amazon is not making a heck of a lot of money. the market is saying that, at some point in time, they will generate so much market share that they can set their own prices. this is extremely profitable, and that's so he's done what he's he's done. so it's really a tribute to someone who latched on to the strength of the so—called new economy, and inter

. >>> coming up next, the food recall involving a summer favorite at whole foods.ll tell you all about it. >>> and the new images coming in on a wildlife rescue we told you about last night. stay with us. then it hit me... ...managing was all i was doing. when i told my doctor,... ...i learned humira is for people who still have symptoms of moderate to severe crohn's disease... ...even after trying other medications. in clinical studies,... the majority of people on humira... saw significant symptom relief... ...and many achieved remission. humira can lower your ability... ...to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened;... ...as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. before treatment, get tested for tb. tell your doctor if you've been to areas where... ...certain fungal infections are common, and if you've had tb,... ...hepatitis b, are prone to infections,... ...or have flu-like symptoms or sores. don't start

let's start with the whole foods deal, by far the largest in amazon's 23 year history. the.1 billion purchase -- biggest since a $1.1 billion purchase back in 2009. is expected to enter the 800 billion dollar market for food and beverages. up until this point, amazon has held just a tiny share of this space. it is also part of the increasingly competitive cloud services industry. the cloud unit has seen eight quarters of growth and accounts for the majority of amazon's operating profits. this diversification in revenue should help balance spending. amazon added 22 million prime members, and its recent prime sale day event was its biggest ever. it was triple its average daily e-commerce revenue according to bloomberg data. most prime members have helped amazon's unbroken 20 year streak of double-digit revenue growth, which shows no sign of slowing this year. we will be looking at that revenue number and margins in the earnings report. amazon stocks went to a record high this week. we will be following the release after today's u.s. closing bell. , welet: for more on amazo

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just recently with the notion of blue apron being scared by just the notion of amazon amazon by a whole foods he would think that was just untouchable even that's not safe because what's happening we're staying in doors less socialization less communal commercialism right you and i both know that when you buy real estate in a lulu lemon and a whole foods come in you're going to make a jackpot about five years lionel of why no media thank you so much for your time that you. that's all for now check out the show on youtube youtube dot com slash thanks for watching see you next time. it's a very rough roads around you sort of rough climates and you have to be trying to be able to them if. it was gunshots on top of them and so many friends they would have been going to we may have been and you don't. you know i don't when you see a better body in the truth when these are the two punches read in the good. old two new book. you don't think about these movies so good on you've got three to play and you know another patients. facebook is a global community of two billion but and facebook is in bed wi

and granted a lot of people might already be prime but a lot of them that aren't and that shop at whole foods are probably going to get pounced with prime and things that they like to have delivered to them through amazon and so forth. i think it's brilliant i like the way that that moves back and forth across both the high-end customers at whole foods and back to prime. the one question that i have, a great name and stephanie, you have been all over this thing. she's been right >> thanks. >> as a value gal and continues to be in there -- >> thanks. >> -- but the one thing that stands out that makes it interesting to me is revenue growth and revenue expansion i tell you what, i think the competition level out there is coming more and more at them and i don't necessarily agree with that part of the story line in terms of this. >> you are the guy who consistently tells everybody. >> yep. >> look at apple and the services. >> yep yeah >> and now you're telling us to question the trajectory of growth and competition >> and here's why. >> yes, i am exactly right. >> they cut prices five times in t

these all read as if nothing has happened with whole foods.hey read as if the day that the deal came public is what they were focused on. i think all of these analysts, with the exception of barclays that has a very kind of hold, all of these analysts better take into account that the world changed when amazon bought whole foods. anyone in the sights of amazon is bad maybe there's something going on they may be not victims. they may be winners. his argument at the time was that competition, when you're creating a new category everybody who is involved is building the mass audience and that there are there may not be barriers to entry but there maybe bare yes, sir to scale. >> there's 20 newcomb pet tos. you could argue it could be grubhub. they spawned a lot of competitors and they end up being the winners of come pet tors but they did not go up against amazon it's true they created a category but then jeff besos said i want to be in this category every time you buy this stock if you do buy it you're going to get hit by a whisper of amazon as

communal commercialism you and i both know that when you buy real estate in a lulu lemon and a whole foods come in you're going to make a jackpot about five years line of why no media thank you so much for your time that you. that's all for now check out the show on youtube youtube dot com slash thanks for watching see you next time. it was all be all. the boss at. least. yes to all this is all the good. old little. league. people with stories to tell. the tale so deserved her and. our. insight. still has a new suit for the skin of. the players. you see first and this is simply they're here to speak are you there to hear. the warhawks sell you on the idea that dropping bombs brings police to the chicken hawks forcing you to fight the battles they're going. to do socks for the tell you that would be gossip and probably by itself a little bit. of the off the bat doesn't tell me you are not cool enough to buy their product. all the hawks that we along the border we'll watch. it. facebook is in bed with the. people. and their reality. is basically. the u.s. is set to vote on further sanctions

communal commercialism you and i both know that when you buy real estate in a lulu lemon and a whole foods come in you're going to make a jackpot about five years lionel of why no media thank you so much for your time that you. that's all for now check out the show on youtube youtube dot com slash thanks for watching see you next time. here's what people have been saying about rejected in the us actually just pull along awesome the only show i go out of my way to launch you know what we want it is the really packs a punch oh yeah it is the john oliver of r t america is doing the same we are apparently better than blue the things that i see people you've never heard of love redacted tonight my president of the world bank so you're going to let me cheerfully send us an e-mail your watching our team special report when they get you and me as mine up but basically everything that you think you know about civil society have broken down. there's always going to be somebody else one step ahead of the game. we should not be. the normalising pilot. we don't need people that think like this on a pla

just recently with the notion of blue apron being scared by just the notion of amazon amazon by a whole foods he was saying that was just untouchable even that's not safe because what's happening we're staying in doors less socialization less communal commercialism right you and i both know that when you buy real estate in a lulu lemon and a whole foods come in you're going to make a jackpot about five years line of why no media thank you so much for your time that you. that's all for now check out the show on youtube youtube dot com slash boom bust artane thanks for watching see you next time. it's. called the future we don't need something. everyone in the world should experience . and you'll get it all the old. the world according to josh. welcome to my world come along for the ride. i do not know if the russian state into john podesta e-mails and gave them to wiki leaks but i do know barack obama's director of national intelligence has not provided credible to support his claims of russia i also know he perjured himself in a senate hearing planned three months before the revelations provi

there's a whole foods market.e some homes tucked in and around this building that was under construction. and we heard one heartbreaking story from a couple who did escape safely, but they do think their home was destroyed. >> so i was asleep. and when i woke up, this one gentleman who was going on screaming saying wake up, wake up. and then nothing had gone wrung, but it helped us. it helped us prepare, get stuff out. if he was not there, we were all asleep. i don't know if we might not have been able to make it through that fire. because i don't know whoever that gentleman was, he was going on right, screaming, saying, you know, there's a fire. there's a fire, which actually helped us. we could get a lot of our families out because if one good shout like that, everybody could move. that actually helped us a lot. >> i want to apologize. i told you were going to hear from a couple. his story, though, was inspiring to hear. i enjoyed hearing him talk about the hero in his neighborhood who went around and woke up pe

whole foods market. do yno, not really. head & shoulders?one you think you know the tri action formula cleans removing up to 100% of flakes protects and even moisturizes for sofia vergara hair >>> this is the way we live now. nice, even temperature. no rain, no snow, no loud noises. music is playing. everything's perfect in the mall. >> in the 1980s, you have 16,000 malls popping up like mushrooms, and they become the high temples of the great american religion, shopping. >> pam and melissa, 15 years old, come to the mall almost every day. they call themselves mall rats. >> i love it. it's only $24. >> consumerism definitely took over in the '80s. people emerged from the '70s from tough economic times and went wow, we can now spend. >> i want you to think about this also. >> that's what is going to set your eyes off. >> the economy started growing, and it was largely a consumer-driven growth. but the consumer economy was funded by debt. >> the national bankruptcy rate is soaring. greg and diana, annual income, $32,000. they had over $12,000

should investors be concerned because of amazon and whole foods? vid: if i were any food related delivery service, i would be watching amazon with incredible care. buying whole foods surprise most was. they view food as part of heir conquer the world strategy. i do think so. i think they should worry. emily: should there be any more scrutiny on how this is handled? not knowing that this was coming? alex: it seemed like they did what they had to. i talked to people around the deal who are in the ndustry. if they launched the deal fter the at amazon announcement or if they waited until after labor day, this idea was still going to be there. the valuation they went out at was very strong. it was valued at most e-commerce companies. this made some people scratch their heads. it seemed like they did what they needed to do to get the deal done. blue apron it needs cash. if you look at their first quarter cash situation, they had $61 million on hand. the have a cash flow deficit. they told investors we have cash and borrowing to get us to at least 12 month

if you recall, they have been pushing whole foods to sell itself which of course it did to amazon and indicate, i think, for the market is that johnna does not anticipate a higher bid coming in and outbidding amazon for whole foods. now, taking a look at some data here by 13 d monitor, johnna entered or disclosed it's stake in whole foods in just april this year and the returns, since that disclosure were about 42%, kelly. >> all right whole foods a little bit weaker. leslie, thank you. vinny is what comes to mind here, brian, on this one they came, you know, they pushed, they got the sale done they win big they're out. they're on to the next one >> sounds like a good day, doesn't it >> and it's a cash deal. all jana is doing is leaving 28 cents on the table as leslie said, they don't expect any competing bid to come in not like you were going to get amazon stocks. >> you don't think this is too mercenary to stay in there >> to just, you know, squeeze it back toward $42? no, i mean this is not their business. >> it's like nigel -- >> again, if it were for stock, then off question of o

how this could hurt their deal to buy whole foods. block in their deal to buy whole foods...ing allegations regarding misleading discounts. >>> amazon could be hitting a road block in their deal to buy whole foods. amazon uses inflated prices to give consumers the impression they are getting a bargain. the federal trade commission is looking into the allegations. amazon says the study is deeply flawed. >>> google is launching us in to space. street view lets users poke through the international space station. it is set up like a house. you will also be given an legislation about each area. >>> we could be riding in our cars leaving the driving driving to a computer. kpix 5's kiet do tells us one company wants to make it like a driver's lounge. >> reporter: makers of self- driving cars want you to sit back and enjoy the ride, one company wants you to sit back, they want you to sit way back. >> the vision is we wanted to put you in your living room. >> reporter: largest auto supplier you never heard of. the world's biggest maker of auto interiors. they are starting up a 25 memb

emily: what about whole foods?re we getting any more clarity and how this acquisition will play out? how will this be integrated into the empire? >> the answer is no. the deal has not closed yet. the cfo declined to comment on it. it has not gotten past regulatory review. we are not even sure if there will be regulatory scrutiny. they are not talking about that. we can see grocery is a major avenue for amazon, not just the whole foods purchase but they just entered singapore with prime now. amazon fresh they are expanding. in the coming weeks and months we will no more. emily: i'm interested in how the dynamics between brands are changing. nike and sears selling directly to amazon. >> they have this infrastructure capability to deliver goods in another way. they are becoming a logistics company as well. they are building the logistics they need to do groceries. bezos loves solving problems. they are building the infrastructure to deliver -- to deliver other kinds of products. they are going to take that ability and

amazon will take time to integrate whole foods which is a major commitment. >> it depends very much ony see the way forward with food. i could expect they will take time to absorb whole foods, which is there forced -- at first their biggest brick-and-mortar network. they will want to grow in that space. they may make an acquisition in europe as part of that. >> much more ahead on daybreak australia. a roller coaster ride, why some say iron ore is going to struggle with extreme volatility not just through the end of the year but for years to come. this is bloomberg. ♪ ♪ i am betty lou in new york. you are watching "daybreak: australia." the u.s. government is involved in apple's tax dispute. washington has filed an application with the eu general court over the retroactive application of state aid rules to apple. irelandr the eu ordered to recoup money in unpaid taxes from the company. uber has suffered a setback in the eu after a french law was backed leading the sanctions on managers. last year, uber executives were whichver their service allows unlicensed drivers to pick up riders. t

the meal kit, blue apron sinking and grocery stores go down when they buy whole foods and so forth. this is the one company that hasn't suffered from amazon getting into television production and video streaming netflix has not missed a beat through that all. >> that's right. we have to remember that netflix was up against a bunch of competitors since day one. at first they were trying to be like hbo and then we saw amazon try to be like netflix and hulu and invest in more original content so reed hastings thinks there isn't going to be one player in this space it will be like cable channels where you may subscribe to a bunch of these the services, amazon prime, netflix and hulu as well as you try to get all the different types of exclusive content that's out there the fact that they are investing in original exclusive content means you can't get what netflix is doing on amazon. >> 91 emmy nominations, that's getting it done on netflix thank you, julia see you later. >>> let's get to our closing bell exchange. dow 150 points, down just 58 and joining us to talk about this day on wal