Julie hyman joins me for a roundtable discussion on u. S. Retail sales. It we begin with peter cook on capitol hill. The scramble for the leadership of the republican led house of representatives. Good afternoon. Kevin mccarthy is looking to move up in leadership. That is right. Its down to two people in terms of replacing eric cantor. It did not take long for the conversation to shift to eric cantors loss in virginia to who would replace him as the number two. Kevin mccarthy, the republican from california. Pete going against sessions. He is not part of the leadership right now. He is making the case that a red state republican from the state of texas needs to have a seat at the leadership table. That is his argument. It is pretty clearly mccarthy who has the early advantage in this race. Anarthy is wellliked and is affable guy. Popular among the group. He is not from one of those red states. He is from california. He is popular with the Business Community as well. He is someone very well known in the Business Community. Has the early edge because he runs the whip operation right now and has a lot of contacts. Early advantage to mccarthy. Ofooked at the gathering Texas Republicans and they feel pretty confident that Pete Sessions will give him a run for his money. The position would be open as well. If mccarthy were to win, the whip decision would open up position would open up. You have the possibility that sessions could run for the spot. Mentioned,hree names one of mccarthys chief deputie Steve Scalise and marlin stutzman. Those are the names being mentioned most often. Is a domino taking shape here. Boehnerigns that john is holding onto the speaker job . There is no sign right now gavel isntehners any doubt right now. Thee elections will get leadership through the next election. There is next year that is when any challenge to john boehner with surface. Peter cook live on capitol hill. Thanks. During his 15 years in office, eric cantor raked in Campaign Cash from wall street bonus. What do they have to show for their investment . Megan hughes has been looking into that. How did congressman cantor help wall street and the Business Community when it comes to policy . Cantor has certainly been an ally to the Financial Services community. Everything from fighting. Frank rules to raising the debt limit. His wife once worked for Goldman Sachs. He started his career on the Financial Services committee. There is a long history there. He was willing to talk about sticky issues that were sticky for republicans and democrats. He was willing to create a coalition of believers and create compromise, understanding that he could not get everything done. He was trying to move forward and create progress. No mistake about it, this was a twoway friendship. You look at the numbers over the course of his career, cantor illion from the sector. 8. 5 Million Dollars from finance, insurance and real estate. That gives you some sense of just how much came from Financial Services. Some of the top contributors, dominion resources, all tria, Goldman Sachs and blue cross. What did cantor do for business . He was a big opponent of dodd frank. One of the republicans trying to weaken that bureau. Take a look at the recent debt ceiling but. Cantor helped brokerdeals to and standoffs in october and february. One of only 28 republicans to vote for raising the debt ceiling this past february, joining with democrats to get that done. That is something that big business and ceos wanted to see done. Tea party groups wanted to see more concessions. Cantor was their hero back in a11 when he walked away from grand bargain with president obama. He hasnt always been a compromiser. He worked with democrats on reauthorizing the Exportimport Bank which is a big impact on Companies Like boeing. Byt will need to be renewed september 30. That is in question right now. Support, he would not republican backed reform that meant higher rates for private equity managers. Even though it was backed by a republican on the committee. Defeated part he of the stock act that would have required more disclosure from hedge funds and investors. That was something his opponent campaigned on. He fought that transparency on that issue. Megan hughes, thanks. House majority leader eric cantors primary loss. Charlie rose asked john heilman what this means for the midterm elections. There is no doubt that eric cantor lost touch with his district and spent a lot of time traveling around the country and raising money for republicans. Spending time in the hamptons playing the role of the National Republican leader and not tending to his business at home. Attacked on populist grounds by his challenger as they a corporatist focused on the immigration attack. That is a real split within the republican party. Also got attacked as a representative of corporate republicanism. Bigmoney republican. The tool of the chamber of commerce. There was a populist elements of that, to make. Fort says very little ty ofber because the majori the midterm electors it shows republicans are energized. Democrats still have a chance to come back with a message. Democrats still have to find a way to change that. Polls show the president s numbers are down. Obamacare is still not popular. The economy is a lot chugging along fast enough. Roseu can watch charlie hospital interview charlie ones full interview Bloomberg Television. Retail sales in may rose less than forecast. Purchases increase in was less than expected. Aprils numbers were revised higher. Julie, what happened . Why did they take a breather . It depends on where you were talking about. Inyou look at the two months aggregate, you are not saying as much of a slowdown in spending. There was a lot of concern in the april number initially came out showing only 8. 1 rise because there have had been some. 1 rise. N march we actually saw the april number higher today. You have had four straight months of increases in retail sales. A lot of that was accounted for by car sales. Its been an interesting year where you are missing the man and not. What about the specialty retailers . If you are an apparel retailer right now, its really tough. Retailer, it is tough. Not a lot of newness in the market right now. No big style that everybody has to run out and get in on a new gadget that everybody has to run out and get. Lululemon reported today that their Second Quarter to date so far is lowerthanexpected. Six of the 13 major retail categories showed gains. We are not talking about a broadbased advance here. No. This is exactly to lindsays point. Apparel did not do as well. Department stores, mass retailers, Consumer Electronics those are the areas we are not saying gains. Seen gains. Furnitureaterials and come up things surrounding housing aside from Consumer Electronics and tvs, you are saying some amends there. You haveg Restoration Hardware mirroring what is going on with materials. A huge increase in profit, tripling and shares doing well today. Dichotomy in what consumers are buying. Is improvement giving any lift to Consumer Spending . It depends on where you are talking about. The concern seems to be that people may have more in their pocket. They are still spending it very judiciously. They are there is nothing that exciting in the clothing stores. A little bit more tangible. Er income consumers consumers in the middle income to lower income racket, not so well for them. What does that mean for the lower end of retailers . Times are tough. People are spending less and want to go for a deal. It means everyone has to be really competitive with prices. You are seeing people across the board slashing prices. , youu are already low dont have a lot of discount in your back pocket to add. Everyone is feeling the pinch. If that component to this at all . Do they see this and say, wait a minute . They are looking at this among many other factors. Inflation is at the core as well as the jobs numbers. They have to be looking at the consumption portion as well. Thereill not really is a little bit of momentum, but its not really super encouraging momentum. That is a very tactical macroeconomic term. We are not seeing it hed up to the point where you are seeing Consumer Spending comeback. They have to be cognizant of that. We are still not there. Im surprised we got great whole segment without mentioning the weather. Everybody kept blaming the weather. You can blame it anymore. Is unseasonably cool. This winter was unusual. We are back to the usual unusual. Anthropology put up really good numbers. If you have the right product, people will come no matter the weather. You both so much. We appreciate it. Coming up, will american soccer get a bump from the world cup. We look at that, next. The world cup kicks off in sao paulo today with a match between result and croatia eared the west teams opening match is not until monday at 6 00 p. M. New york time. They will be facing ghana. For a look at the world cup and soccer in of america, im with the commissioner of the soccer. Welcome to bottom line or. What pressure does a host country faced by putting this on . Enormous pressures. They have to deliver on a t with millions of people coming into town. Have to move those people around and feed them and have safe and secure environments and everything like that. Big questions about brazil right now. What about the backlash from spending billions on the event that only lasts 3. 5 weeks . It could be spent on education and infrastructure and health care . Is the cost too high . That is a question for the brazilians and the president of the country there. They think it is a rare opportunity to take a place where the game is so incredibly popular its a religion. For anthem, its hard american to understand how big the sport is in result. Im sure this will be something that will be be very popular by everybody in result. This talk about a world cup bump. Does it translate into fan interest in Major League Soccer . It has in the past. Highest rated games on espn happen after the world cup. All eyes are turned to the sport. We have somebody players in Major League Soccer, 22 of them will be computing for the u. S. And other countries. ,e can tell that story integrating the sport itself with the world cup. Focuses is tomain expand the mls. Do you want to see 24 franchises by 2020 . Hat will cost a lot of money talking about stadium construction. Are we talking about private funding . It starts with somebody paying 100 million for expansion fee to join the league. Just like other leaks, the 2 billion that was paid for the sale of the l. A. Clippers, there is a price to be paid to be part of the shared revenue and to own a Major League Soccer team. Our stadiums have been costing anywhere from 8 millionhundreds of millions of dollars. Ome of that is public money it is for the chicago fire. Philadelphia, it is 85 public money. , davidct in Miami Beckham has decided he will fund entirely with private money. Thate mayor took a pass on this week. Its the second time it happened. What went wrong . I dont know if anything went wrong. These things are tough. Its hard to build even when you fund them yourselves. To find 13 acres that are not used by anybody. Miami, we had two sides. The one on the waterfront. Two sites. If they will find another place to build a stadium. If you can get a stadium built, Major League Soccer will not be moving to miami. It will raise your broadcast revenue to 90 million. That is four times what the league collects right now. How will this impact viewership and what will it mean for stadium attendance . It starts with three things we try to achieve in the deal. A consistent schedule, lots of promotion that is guaranteed from fox and espn, a higher profile for our league, and getting a relationship with great, powerful media earners. Second moste among young people in this country. Who do you think will win the world cup . I hope the u. S. Will win. It is possible to have two mls players competing in the world cup. A lot of people predicting spainbrazil. Thank you. Still ahead, concerns in the middle east on two fronts. A rising insurgency in iraq and tensions in iran. We wanted you to know that bloomberg is the only Business News service being offered on amazon fire tv. If you missed any of our interviews, you can watch them on apple tv. It features Live Streaming and ondemand videos. Theng up on 26 minutes past hour. That means Bloomberg Television is on the markets. A alix steel is standing by with the details. Lets get you caught up on where markets are trading. A pretty rough day overall for stocks. The s p picking up a bit of steam. It was really do to the choppy Economic Data that we have seen. Jobless claims rose last week. It may retail sales were only up 3 10 of 1 . 3 . One of the sectors in the green, the s p, energy use to buy oil. Nd the violence in iraq wouters chief operating officer has stepped down. Put chief operating twitters chief operating officer has stepped down. Able toers wont be listen to lady gaga or kanye west. That is because amazon in universal music were unable to reach an agreement. Back on the markets in 30 minutes. More bottom line on the other side of this break. Will planned to my concerni fighting in iraq will disrupt supplies. They are saying they will march on baghdad. The move is raising fears about. He shiite led government with him and forced him irans oil exports have increased this year. She joins me now from washington. If there is a lot of concern on the hill about whether iran is violating the Oil Sanctions imposed two years ago. That is the 5 billion question. I say that because that is how much iran is losing every month in lost oil revenue because of the u. S. And eu will sanctions. The supply was cut from two point 5 Million Barrels per day to less than half of that at the end of last year. The debate we are seeing now on capitol hill is over whether since anbeen cheating International Agreement went into effect on january 20. The objective of all of these sanctions is to squeeze irans main source of government revenue in order to force the regime to make concessions over its nuclear program. We crunched the numbers and got officials customs data from all six importing nations that still buy a ring in crude and we found that the shipments of a rainy and oil have indeed increased this year, about 20 of overall. If this trend continues through july 20, the date this deal expires, it would be a violation of sanctions. What does the administration say . The moment, the administration insists they are very confident that buying nations are keeping with the limits set. I rans exports are staying within the one million1. 1 Million Barrels per day range. It ministration also said that it is working very hard to make sure that that figure will remain the average by the end of july. When we asked them about the rising exports that we counted, they gave various explanations. Customs reporting lag the actual shipments. They talk about seasonal variations that can make the numbers higher. Thatofficials also say ship tracking was compensated by the fact that Many Companies list the two products can be carried on the same ship. A light Petroleum Liquid that is easier to refine and it is not restricted by u. S. Sanctions. Cap tools to measure and track these Oil Purchases in ways that are not available to us. Our map showed the combined numbers appear to be up more than 1. 3 Million Barrels. If this upward trend continues through the end of july, is the United States going to sanction any of irans oil buyers . I think that is unlikely. China still remains the biggest consumer of iranian energy. The reason it would be hard to sanction them is because it means we would be cutting off chinese angst from the American Financial system. China is a partner of the United States in the International Negotiations in getting a nuclear deal. Indias purchases are also up. We have been told that come in their contracts, they have reduced their iranian Oil Purchases. The priority for everyone is getting a nuclear deal. Congress is not happy about this and there is a strong possibility that if there is proof of sanctions busting, either the administration will have to punish the foreign banks or congress will come in and impose additional sanctions. What is next with the talks . We have the russians meeting with the iranians bilaterally. Next week, we have a full weeks meetings. Both sides have pretty much dug their heels in with iran not wanting to make concessions and the other side not wanting to allow them to keep the Strong Nuclear program. It will be hard to get a deal before july 20 if things continue along this way. Thank you. Icas new president took office on may. How he plans to tackle the economic and clinical challenges ahead. It is time for todays latin america report. Intel announced plans to build a megalab in costa rica to test products under development. The newly elected president of costa rica visited bloomberg World Headquarters here in new york. I asked him what the intel announcement means for his country. I am extremely excited with t