Will be out in a half hour, a much has been made about the dependence on ecommerce. They still have a lot to do on improving the experience. Julie hyman has more on this. Part of the problem is a lot like what we do in the stores we are browsing online. Except we do it at a higher rate. Forrester research put out a report looking he looking at the name reason why people abandon their ecart. They say shipping and handling is too high. Theyre just not ready to purchase for whatever reason. I spoke to a Retail Consulting group yesterday, and there are a lot of reasons your online, cries,ne rings, the baby whatever it may be, and you do not get back to it. Also, 22 wanted to compare prices. Saysee something, and you maybe i can get it cheaper somewhere else. Piecee of that shipping we have seen an increase in the number of transactions that offer free shipping. Amazon has been aggressive on that front and set the standard. Other ecommerce sites have followed suit. In terms of why people are shopping online, part of it is fast shipping, getting it quickly. A lot of them are picking it up in the store, even if they are buying online. Theyre also looking for deals they cannot get in the stores. It is also difficult to distinguish between online and offline. It is, and that is something that is positive from the retailers point of view, this channelhannel omni retail. We are seeing Research Done on mobile phones or other devices, and then not purchases made no matter where, either in the store or again online. It is this integrated experience. The folks i talked to say it needs to be more integrated, specifically when it comes to selection. What you get online has to be the same thing you get in the store. There has the more uniformity when it has to do with collections. Thanks sent. That makes sense. For retail sales, what are we looking at . We are looking at an increase. 10 after only a increase, which was a disappointing number following march. Entum in it did not materialize in april and there was a lot of head scratching over that. There are some hopes that it will come back. One thing that might be positive, we got revolving credit numbers. They are more dated. This is essentially credit card spending. We saw a big rebound in that number in the month of april and economists are saying is that a oneoff, or will we see a continuation of that trend . We will continue to watch what these things indicate for each other in terms of credit card spending and retail sales. Thank you, julie hyman. Washington, the aftershocks from eric cantors stunning primary defeat are being felt. House republicans will pick his replacement as majority leader and the campaigning is underway. Peter cook, who is in the running, who has the edge . The politicking has begun in always, closeddoor meetings. The three names getting the most attention House Majority leader Kevin Mccarthy, his close ally who is number three in the republican leadership. He is the House Majority with. You also have jeb hensarling, a fiscal conservative who chairs the House Financial Services committee. He is not always seen eye to eye with wall street in the position. The other option is pete sessions, chair of the rules committee, and he helped republicans in 2010 gain so many seats in the congressional election. Right now, the edge goes to Kevin Mccarthy, in part because eric cantor has given him his endorsement. I do not know who will actually be running. I can tell you my dear friend and colleague Kevin Mccarthy decides to run he would make he would make an outstanding leader and i would be back in with my full support. Willic cantors backing help, in part because it is just a weeklong race. Kevin mccarthy has more infrastructure, easier for him to mount a quicker campaign. It is not a sure thing. That er, it is just remember, it is just an appetizer. The real fight will happen after the election. Whereby john boehner and his job . Is it safe, peter what about john boehner and his job . Is it safe, peter . It is safe for now. After the election, boehner could face a challenge. One thing to watch his jeb hensarling. If he does not run against Kevin Mccarthy, keep an eye out if he mounts a campaign against john boehner. Eric cantor was known as being friendly to big business. What is the Business Impact so far . We have seen bowling bowing falling. You have other piece of which is some doubt in some doubt. There are also concerns about highway funding. Eric cantor had the idea of ending Postal Service on saturdays and using the money for a shortterm patch. The biggest one of all, Immigration Reform. Eric cantor was not a supporter of comprehensive reform but he was open to discussing aspects of Immigration Reform and that is effectively over. For foreigne visas workers. Peter cook, thank you. Join me for more is a real estate entrepreneur and political activist. Eebles is vice chairman of the board of Congressional Black Caucus and he was an active fundraiser for president barack and president bill clinton when he was governor of arkansas. Great to see you. Great to see you. Thank you for having a. How do you see the fallout . Offhe tea party is talking conservative republicans. They will pushing republicans to democratic party. Which republicans . The tea party is hijacking the Republican Party and he will be the beginning of their and in the majority of the house. It will take some time. Maybe another election cycle or two. The tea party is out of step with most of the country. They reflect a group of people that are afraid of where the country is going and they are trying to slow down progress. You see it in immigration, for example. Well, immigration would be the one issue. Democrat, but i cannot imagine you would be happy to see eric cantor go, someone who want a republican side was willing to work on immigration. I am not happy to see him go, per se, but ultimately, this will damage the Republican Party and help the Republican Party determine what kind of party they want to be in the future. They lost charlie kissed, who is now running as a democrat to unseat a republican in florida. There is a runoff. These are republicans fighting each other. The Republican Party we as democrats are sitting back and thinking this is a great opportunity for a clintontype of democrat. Clinton was a much more conservative democrat, especially on Fiscal Affairs. I was at a party recently with some folks who had donated a lot of money to the Obama Campaign and they said to me i believe in the president when he first ran, but im disappointed now with what he has not done in his term. He could have done immigration early on when he knew he had the votes and he did not do it. . Hat do you say to that actually, they are misinformed. The president , before he was sworn into office for his first term, the Republican Party decided their goal would be to instruct any kind of change that he would bring about and they would try to defeat him for a second term. So, he walked in the door with extreme gridlocked and a party whose sole mission was he got health care through. He got health care through with some significant compromise and there was a major issue for the country. The reality is governing today is far different than when bill clinton was president or Ronald Reagan was president , who i think was one of our most transformational president s. The company the country was different and there was much more of a spirit of bipartisanship. Back when clinton was president , early in his term, democrats lost the congress, and he was able to be very effective. That is what will came up to say, you know what, i need to step in the middle and negotiate. Yes, but he got elected by being a conservative democrat when it comes to Fiscal Affairs and progressive when it comes to social and domestic affairs, and frankly that is where the country is. It has to be the middle. With me. Es, stay well talk much more business and politics as well with don peebles. Moving and shaking this hour, new york rangers goalie henrik lundqvist. He made 40 saves last night to keep the rangers alive in the stanley cup finals. They now trail in the bestofseven series 31. Henrik lundqvist is considered one of the best goalies in hockey, the only goalie in nhl history to win at least 30 games in each of his first seven seasons. Now they will try to beat the odds and win three games in her road to take the stanley cup, and you will not only would it will be like in new york if that happens. Coming up up, the accidental marketing gimmick the european protests against uber might actually help the car sharing service. Play like a pro as the u. S. Open gets underway, we have tips from one of the greatest golfers ever. Stay in the loop. We are just Getting Started on this thursday. You are watching in the loop , live on Bloomberg Television and streaming on your phone, tablet, and on bloomberg. Com. The worlds altra wealthy now holds more than 5 trillion in real estate and they are chasing luxury properties, spurring bidding wars and higher prices. We spoke to one such developer, don peebles of the peebles corp. Just signed another contract to develop land in d. C. , right . Tommy about that. We are right . Right. , you about that. Tell me about that. Hotel in building a the mount vernon area. A Boutique Hotel with Hotel Services for residents as well. This is how you have gotten an edge over other property developers. Peopleinto cities that are not focused in, and i do not want is a second tier because i come from philadelphia, but philadelphia or las vegas as opposed to new york or l. A. What we do differently as we have a heavy focus on private Public Partnerships and we do that nationally. We become local developers in these tertiary markets and primary markets. We focus our efforts, a big part of our product is obtained through Public Private partnership. We did on publicly owned land and we do that in washington, d. C. , philadelphia, new york city, and other parts of the country. Are you finding bidding wars here, not just for the land, but once you develop . Look, prices of land for luxury audits for highend condos, the rise for land has tripled in the last 2. 5 years or so. Tripled . Tripled. That means you could have bought the former drake hotel site at park avenue and 57th, you could have walked that property in 2008 for about 300 a square buildable area. Today on the market it would be 1500 to 2000 a foot of buildable area and you can see oft that does to the price the finished product as well. That is happening in manhattan. Does that price someone like you out because you say wait a minute, i will not make the returns that i could make in other cities . It does not price us out, but it is not what we do. We focus on getting in earlier. We have walked in manhattan already. We are feeling good about our property. We are converting the building on leonard street to luxury condos. We made our that. We bought that building a couple of years ago. And you can go elsewhere now. Exactly. And were are still looking for opportunities in new york city, but we are not competing for 1500 to 2000 a square foot. What do rich people want, what do they want to buy . Quality of life. We all want quality. We all do, those that have willing toeans are pay for it. They are defined in increments. There is someone that is a 5 million buyer and they want their home the way they want it, in the most desirable luxury lifestyle they can afford. Someone who will buy 10 million will want something different. And you get to 20 million 30 million, i would say milliong over 20 dollars in new york city would go quicker than something at 5 million. Are you seeing turnover are we talking just days . Absolutely. You see headline pricing at 10,000, 12 thousand dollars a square foot, and there is a migration. Many in the Upper East Side are upper west time side, moving downtown. Qualityoflife. Higher heard prices on the Upper East Side have gone down. They are stagnant. Premier buildings on park avenue, fifth avenue, they are still doing very well. It is the buildings on the Upper East Side, the runofthemill luxury apartment buildings, those units that are not having the same escalation in prices because there is not as much of a demand. The demand is downtown and the trophy locations overlooking the park. If you were competing with several other properties, lets say in miami, for instance, what would get them to go to a peebles corp. Property . We have a great building we are working on, a luxury building that has private pools, 12 to 25foot ceilings. The homes themselves are estate in the sky. They are all full floor or duplexes. And they all have pools. Pools, many have home theaters, stateoftheart electronics, unparalleled Services Including a garage within a garage, fourcar parking. If i lived there, i may never leave. [laughter] don peebles, stay with us. We will be asking him about the sale of the l. A. Clippers. He looked into buying the team. Plus, inside the secret world of the Koch Brothers. We talked to the author of a revealing new book. Stay in the loop. First. Bloomberg. ,ou are watching in the loop live on Bloomberg Television and streaming on your phone, tablet, and on bloomberg. Com. Good morning. I am betty liu. It is 26 minutes past the hour. Bloomberg tv is on the markets. About five minutes we will get some economic numbers. Everys claims are out thursday, and also retail Sales Numbers for the month of may expected to rebound to a gain of. 6 . Watch the retail Sales Numbers. Very important for investors and where the economy is going. Futures right now are mixed. We are on the markets again in 30 minutes. We are back with Real Estate Investor don peebles, chairman and ceo of peebles corp. , the company he founded. There is another area where you are also well known, sports. Eldiness and sports m together so well. You considered buying the l. A. Clippers at one point . I did, but as a business investment, expecting to make money while i owned it, and the price being paid now, it is more like buying a great masterpiece, a rembrandt, a picasso, except you get to interact with it and enjoy it, but you will make money one day when you sell it. Look at the return on investment that Donald Sterling is going to make for horrible behavior. He bought the team for 12 million. He is selling it for 2 billion and he is kicking and screaming along the way. He is still going to sue. Instead of saying thank you very much, take the 2 billion and call it a day. What a great return on your money. Is Steve Ballmer going to get a good return . It is a qualityoflife purchase. Many times sports teams or nba franchises are quietly qualityoflife purchases. It gives him away to channel his sense of competitiveness. Obviously he is an extremely competitive person. He ran microsoft and made it one of the greatest companies in the world than you do not do that without being competitive. He loves basketball and he is now retired from microsoft. Why not . Why not . He can afford it, and it is more fun than owning a picasso. When he was at microsoft people said microsoft was not cool, Steve Ballmer is not cool, but now with the clippers he is cool . Absolutely, he is cool. The average person does not know who the ceo of microsoft was. I know bill gates, but they do not know the coo of the company. This will give him an opportunity to be much more of a global, worn american comingout party. How much were you willing to pay for it . Under 1 billion. Ok. We thought there was no way that team could make economic sense and anything north of 1 billion in without the right price was 700 million to 900 million, and when the numbers got to 1. 5 billion, it did not make sense. There were other bidders that said lets combine forces, but nobody could get to that number because it is a lifestyle purchase, and maybe one day when i finish doing all the stuff that im doing, my son is running this company, i can go have some fun, either a sports team or alex. You almost ran for d. C. Mayor. I did. I have to get to Donald Sterling. He is about to sue the nba. Is he a racist . Do not no caps on his comments were horrible and when i heard the recordings, also, it sounded to me that he frankly is not well. His behavior and speech was not animated. He did not think anyone was listening. There was no reason for him to be tentative. Did you know him, by the way . Looks no. No. The clippers have always in the basement. They made better draft decisions and they got chris paul, who should have been a los angeles laker, and the mba canceled that trade. I think he is not well. Certainly, that kind of speaking is detrimental and it gives you insight into how he thinks. Also, it highlights a bigger issue for the mba. The nba. At 90 off you look the players, they are africanamerican, and we have 1 the league has one africanamerican owner, one, and one female with jerry buss family, his son and daughter owned the lakers. The responsibility of the nba to reach out . Optically, it presents challenges for them and this is become an issue they wanted to close out right away. The reality is these players are creating significant value. It is not Donald Sterling the created the 2 billion business. It is chris paul. It is blake griffin. It is that team of players. You are saying he created the wealth on the back of successful africanamerican athletes . These guys are