close video US economy is in a very complex environment: Bob Nardelli
Former Home Depot CEO Bob Nardelli joined Cavuto: Coast to Coast to weigh in on France raising the retirement age to 64 and retail sales falling more than expected in March.
Former Home Depot CEO Bob Nardelli issued a grim warning over the U.S.'s "very complex" economy, cautioning consumers that middle market companies are under "tremendous pressure."
"I think we're going to see a lot of bankruptcies. Like Bed, Bath and Beyond. We got Walmart not only laying people off, but closing stores. We got Accenture laying people off. We got Amazon closing distribution centers. So I think there's a tremendous-mixed message," Nardelli said during an appearance on "Cavuto: Coast to Coast."
WALMART CLOSING THREE TECH HUBS, ASKING EMPLOYEES TO RELOCATE
The former CEO continued, saying that the "complexity" of the U.S. economy is "different than anything I have seen in my 52 years." Image 1 of 2
According to the U.S. Commerce Department, retail sales in March are up 2.9% year-over-year. | Fox News
According to UBS analysts, more than 50,000 retail locations could permanently shut their doors over the next five years. Those closures would cut the current U.S. store count of about 940,000 by around 5% by the end of 2027.
50K STORES COULD CLOSE IN FIVE YEARS DUE TO A SLOWDOWN IN CONSUMER SPENDING, ECOMMERCE DEMAND
The number of shuttered stores is "already up significantly" in 2023 compared to last year, due to heavy hitters like Bed Bath & Beyond, Foot Locker and bankrupt Tuesday Morning trimming their footprints.
“We’re in a very complex environment. And, of course, this debt issue only adds to that,” – Bob Nardelli, former Home Depot CEO
Over the past year, Bed Bath & Beyond has initiated a turnaround plan that involved shuttering hundreds of stores. Last month, Foot Locker announced it plans to shutter more than 400 low-performing stores in shopping malls by 2026 as it shifts its focus to new concept stores. close video Retail sales expected to get worse in 2023: Stacey Widlitz
Stacey Widlitz, the founder of SW Retail Advisors, reacts to Novembers retail sales coming in worse than expected at a 0.6% decline on Mornings with Maria.
According to Nardelli, Congress' inability to come together and raise the debt ceiling limit has placed an unprecedented burden on businesses, sharing with host Neil Cavuto that he is "definitely worried."
"I'm seeing inventory builds in a lot of the businesses, both public and private. Neil, you remember when we spoke in ‘07, ’08 and '09, there was a singular focus on the banks, right? Their meltdown took everything down," Nardelli continued, Friday.
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"Today, the banks are doing great. But now we have this mixed messaging. Retail is not doing so well. Banks are doing well. Transportation is up 13.9% over the last 12 months. I think we're in a very complex environment. And, of course, this debt issue only adds to that. It adds to the certainty of uncertainty, what's going to happen," he concluded.
FOX Business' Daniella Genovese contributed to this report.
I gently suggest that people in Britain might be shocked at the idea of a summer break in a country better known for famines and forced labour than parasols and pina coladas.
“We were interested in seeing how people live there,” Anastasiya explains.
“There were a lot of prejudices about what you can and can’t do in North Korea, how you can behave. But actually, we felt absolutely free.”
Image: Pic: Anastasiya Samsonova
Anastasiya is one of a growing number of Russians who are choosing to visit their reclusive neighbour as the two allies continue to forge closer ties following the Kremlin’s invasion of Ukraine.
Last year, North Korean troops supplied military support in Russia’s Kursk region, and now there is economic cooperation too.
North Korean produce, including apples and beer, has started appearing on supermarket shelves in Russia’s far east.
And last month, Moscow launched direct passenger flights to Pyongyang for the first time in decades.
Image: Pic: Danil Biryukov / DVHAB.RU
But can this hermit nation really become a holiday hotspot?
The Moscow office of the Vostok Intur travel agency believes so. The company runs twice-weekly tours there, and I’m being given the hard sell.
“North Korea is an amazing country, unlike any other in the world,” director Irina Kobeleva gushes, before listing some unusual highlights.
“It is a country where you will not see any advertising on the streets. And it is very clean – even the asphalt is washed.”
She shows me the brochures, which present a glossy paradise. There are images of towering monuments, pristine golf greens and immaculate ski slopes. But again, no people.
Image: ‘There is a huge growing demand among young people,’ Irina Kobeleva says
Ms Kobeleva insists the company’s tours are increasingly popular, with 400 bookings a month.
“Our tourists are mostly older people who want to return to the USSR,” she says, “because there is a feeling that the real North Korea is very similar to what was once in the Soviet Union.
“But at the same time, there is a huge growing demand among young people.”
Sure enough, while we’re chatting, two customers walk in to book trips. The first is Pavel, a young blogger who likes to “collect” countries. North Korea will be number 89.
“The country has opened its doors to us, so I’m taking this chance,” he tells me when I ask why he wants to go.
Some of the world’s leading tech companies are betting big on very small innovations.
Last week, Samsung released its Galaxy Z Fold 7 which – when open – has a thickness of just 4.2mm, one of the slimmest folding phones ever to hit the market.
And Honor, a spin-off from Chinese smartphone company Huawei, will soon ship its latest foldable – the slimmest in the world. Its new Honor Magic V5 model is only 8.8mm thick when folded, and a mere 4.1mm when open.
Apple is also expected to release a foldable in the second half of next year, according to a note by analysts at JPMorgan published this week.
The race to miniaturise technology is speeding up, the ultimate prize being the next evolution in consumer devices.
Whether it be wearable devices, such as smartglasses, watches, rings or foldables – there is enormous market potential for any manufacturer that can make its products small enough.
Despite being thinner than its predecessor, Honor claims its Magic V5 also offers significant improvements to battery life, processing power, and camera capabilities.
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Hope Cao, a product expert at Honor told Sky News the progress was “due largely to our silicon carbon battery technology”. These batteries are a next-generation breakthrough that offers higher energy density compared to traditional lithium-ion batteries, and are becoming more common in consumer devices.
Image: The Magic V5. Pic: Honor
Honor also told Sky News it had used its own AI model “to precisely test and find the optimum design, which was both the slimmest, as well as, the most durable.”
However, research and development into miniaturisation goes well beyond just folding phones.
A company that’s been at the forefront of developing augmented reality (AR) glasses, Xreal, was one of the first to release a viable pair to the consumer market.
Xreal’s Ralph Jodice told Sky News “one of our biggest engineering challenges is shrinking powerful augmented reality technology into a form factor that looks and feels like everyday sunglasses”.
Xreal’s specs can display images on the lenses like something out of a sci-fi movie – allowing the wearer to connect most USB-C compatible devices such as phones, laptops and handheld consoles to an IMAX-sized screen anywhere they go.
Image: Pic: Xreal
Experts at The Metaverse Society suggest prices of these wearable devices could be lowered by shifting the burden of computing from the headset to a mobile phone or computer, whose battery and processor would power the glasses via a cable.
However, despite the daunting challenge, companies are doubling down on research and making leaps in the area.
Social media giant Meta is also vying for dominance in the miniature market.
Image: Ray-Ban Meta AI glasses are shown off at the annual British Educational Training and Technology conference. Pic: PA
Meta’s Ray-Ban sunglasses (to which they recently added an Oakley range), cannot project images on the lenses like the pair from Xreal – instead they can capture photos, footage and sound. When connected to a smartphone they can even use your phone’s 5G connection to ask Meta’s AI what you’re looking at, and ask how to save a particular type of houseplant for example.
Gareth Sutcliffe, a tech and media analyst at Enders Analysis, tells Sky News wearables “are a green field opportunity for Meta and Google” to capture a market of “hundreds of millions of users if these devices sell at similar rates to mobile phones”.
Li-Chen Miller, Meta’s vice president of product and wearables, recently said: “You’d be hard-pressed to find a more interesting engineering problem in the company than the one that’s at the intersection of these two dynamics, building glasses [with onboard technology] that people are comfortable wearing on their faces for extended periods of time … and willing to wear them around friends, family, and others nearby.”
Mr Sutcliffe points out that “Meta’s R&D spend on wearables looks extraordinary in the context of limited sales now, but should the category explode in popularity, it will be seen as a great strategic bet.”
Facebook founder Mark Zuckerberg’s long-term aim is to combine the abilities of both Xreal and the Ray-Bans into a fully functioning pair of smartglasses, capable of capturing content, as well as display graphics onscreen.
However, despite recently showcasing a prototype model, the company was at pains to point out that it was still far from ready for the consumer market.
This race is a marathon not a sprint – or as Sutcliffe tells Sky News “a decade-long slog” – but 17 years after the release of the first iPhone, people are beginning to wonder what will replace it – and it could well be a pair of glasses.
Addressing the City Academy Voices choir directly, the bishop of Fulham said: “I write to apologise for the distress and offence I caused in bringing the concert to a premature end.
“This should not have happened … I also apologise for remarks which were made in haste, and which have understandably caused hurt and distress.”
Image: The bishop, in his dressing gown, gave the choir a dressing down
Mr Baker had demanded for the performance to stop because it was 10pm – and says he didn’t realise the choir had booked the church until 11pm.
In the statement obtained by Sky News, he added: “I have lived here on site at St Andrew’s for 10 years, for much of which City Academy has rehearsed and performed here.
“You have been, and continue to be, welcome – and I hope that you will be able to continue the relationship with us.
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“I can give you every assurance that the events of Friday evening will not recur, and I apologise again to performers (especially those unable to perform at the end of the evening) and the audience alike.”
Image: The choir performed their last song
The choir was performing to a 300-strong audience in Holborn when the lights were suddenly turned off, with Mr Baker declaring the concert was “over”.
A church employee then asked the crowd to leave quietly and for the musicians to step down from the stage, attracting boos from the audience.
The choir went on to perform one last song, an A cappella version of ABBA’s Dancing Queen, before bringing their show to a close.
One member of the audience, who was attending with his 10-year-old daughter, told Sky News he initially thought the interruption was a staged joke.
Benedict Collins had told Sky News: “This work deserves respect, not to be disparaged as a ‘terrible racket’. The people here had put their heart and soul into it.
“The bishop cut them off in midstream, preventing soloists who had worked their hardest from singing – and preventing the audience, which included people of all ages, from enjoying it to the end.”
The choir told Sky News it was “upsetting” that they were unable to finish their show as planned, but “hold no hard feelings and wish the bishop well”.
A spokesperson added: “If anyone is thinking of joining one of our choirs, the City Academy Voices rehearse on Mondays in central London. Dressing gowns optional.”