Bloomberg Intelligence: NYC Casinos, Macy’s, Salesforce Earnings

Podcast: Bloomberg Intelligence
Hosts: Paul Sweeney, Norma Linda (filling in for Scarlet Fu)
Date: December 5, 2025

Main Theme

This episode offers a comprehensive market overview, focusing on major developments in the casino and gaming industry, retail sector earnings—with deep dives into Macy’s and Dollar Tree—and the technology sphere, especially Salesforce and the booming data center power demand. Aerospace and the state of real estate investment trusts (REITs) round out the discussion, providing insights into both current performance and forward-looking risks and opportunities for investors.

Key Discussion Points & Insights

1. NYC Casino Licenses: Steve Cohen’s Queens Casino

[02:40–08:01]

• Background: New York Mets owner Steve Cohen receives state approval to build an $8B casino by Citi Field in Queens, in partnership with Hard Rock International. Two additional licenses went to Resorts World (Genting Group) and Bally’s.
• Analyst: Brian Eggert, Senior Gaming & Lodging Analyst, Bloomberg Intelligence.

Key Insights:

• Competitive Selection: "This is a fairly protracted process... It authorized resort casinos for the downstate New York area, mostly New York City. The three qualified casino applicants really are in New York City but outside Manhattan itself." (Brian Eggert, 03:22)
• Returns & Economics: “We came up with something like a 10% return on investment, which is certainly a bit less than most operators would expect to attain in these regional markets.” (Eggert, 03:59)
• Revenue Mix: Non-gaming elements (retail, hotels, food & beverage, entertainment) are expected to constitute close to half of overall revenue: “Those will be fairly sizable chunks... probably cumulatively close to half, which is true of many gaming resorts in attractive environments.” (Eggert, 05:08)
• Market Impact: The new casinos may challenge Atlantic City, with operators like MGM, Bally’s, and Caesars watching closely due to increased competition.
• Timeline: Target opening dates for new casinos are around 2030.

Notable Quote:
"You’ve got this much additional gaming capacity with resort elements opening up in relative close proximity to a key Atlantic City feeder market."
—Brian Eggert [07:43]

2. Retail Sector: Macy’s Q3 Performance & Strategy

[08:05–12:43]

• Analyst: Mary Ross Gilbert, Senior Equity Analyst, Bloomberg Intelligence

Key Insights:

• Strong Quarter, Cautious Guidance: Macy’s posted solid Q3 results with sales up 2.7% in go-forward stores. Guidance for Q4 is conservative, with the company hoping to outperform projections.
• Store Experience & Engagement:
  • Store environments have improved: "Bringing in more relevant brands... The stores look brighter, there's really kind of exciting music... store associates are more engaged with the customer." (Gilbert, 08:25)
  • Black Friday saw higher traffic than in recent years, indicating momentum for CEO Tony Spring's changes.
• Collaborations & Celebrities: Macy’s and Bloomingdale’s leverage collaborations with designers (Aqua with Milanese designers) and celebrities (Jennifer Hudson, Martha Stewart at American Eagle) to draw younger, diverse customers.
• E-commerce & Omnichannel:
  • Digital sales account for a third of Macy’s business. Omnichannel strategies (e.g., buy online, pick-up in store) are key for growth.
  • "Over the weekend through Cyber Monday, the sales strength was really led by digital." (Gilbert, 11:44)
• Consumer Trends:
  • Lower-income shoppers "are really feeling pinched" by price increases, while higher earners are proving resilient.

Notable Quote:
"We saw more traffic in the store than we've seen in years past really. So we think that the changes that CEO Tony Spring is making… it's resonating, it's working."
—Mary Ross Gilbert [09:20]

3. Dollar Tree and Shifting Consumer Behaviors

[15:44–20:13]

• Reporter: Lily Meyer, Bloomberg Retail Reporter

Key Insights:

• Earnings & Outlook: Dollar Tree met revenue expectations and raised its profit outlook, benefiting from both value-seeking and higher-income customers trading down.
• Core Consumer: 85% of Dollar Tree’s products are $2 or less—its business remains anchored in catering to budget-constrained shoppers.
• Tariffs: Tariff effects pressured traffic this quarter but are expected to abate.
• Promotional Trends:
  • Some retailers are reducing promotional activity to protect margins.
  • Consumers, even during Black Friday, prioritize essentials over luxury: "Instead of buying... a Le Creuset Dutch oven, they were... gonna buy like three bags of 40 pound dog food." (Meyer, 19:11)
• Omnichannel and Youth Trends: Physical stores with strong deals and youth-oriented brands are still drawing crowds, especially during holiday shopping.

Notable Quote:
"We're really still seeing consumer spend... but they're really value driven. So they're looking for the best deals they can get. They're trading down when they need to. They're stocking up on essentials."
—Lily Meyer [18:09]

4. Salesforce Earnings: AI’s Growing Influence

[20:16–22:59]

• Analyst: Anurag Rana, Senior Technology Analyst, Bloomberg Intelligence

Key Insights:

• Q3 Results: Salesforce beat earnings expectations; strong outlook attributed to success with its new AI products, though core business growth is slowing.
• AI Product Momentum: AI products are growing rapidly but are currently too small to offset declining “seat” growth in traditional product lines.
• Enterprise Sales Dynamics:
  • "It's going to be very difficult for an established Fortune 2000 company to get rid of their core system of record... and just deploy a model in there. At least we are not there yet." (Rana, 22:21)
• Macro IT Spending: The main drag on Salesforce’s larger growth is broader weakness in corporate IT budgets.

Notable Quote:
"When you have a revenue base of $41 billion, it takes a lot to move the needle. So even though these products [AI] are very small and growing triple digits... they are not right there in order to take down what is happening on the core business."
—Anurag Rana [20:41]

5. Airbus’ Quality Issues and Delivery Targets

[23:06–27:02]

• Analyst: George Ferguson, Senior Aerospace, Defense & Airlines Analyst, Bloomberg Intelligence

Key Insights:

• Recent Quality Issues: Airbus revealed defects in A320 fuselage panels and a software glitch, prompting inspections that may delay deliveries.
• Ambitious Delivery Goals at Risk: Target of 820 planes for the year seen as increasingly doubtful due to ongoing supply chain issues and recent setbacks.
• Industry Comparison: Historically, Airbus delivers more aircraft per month than Boeing due to broader infrastructure and supply chain, but these targets may now be over-ambitious.

Notable Quote:
"The aerospace supply chain is a bit thin... when you just have some little problem at one of your suppliers, it can really interrupt your ability to deliver airplanes."
—George Ferguson [23:40]

6. State of U.S. REITs: Opportunities and Risks

[29:36–34:24]

• Analyst: Jeff Langbaum, Senior U.S. REIT Analyst, Bloomberg Intelligence

Key Insights:

• Recent Performance: REITs were flat or slightly down in 2025, underperforming the S&P for a third consecutive year due to rising interest rates and especially office sector struggles.
• Bright Spots:
  • Senior Housing: "That's the clear winner right now... driven by demographics... There's not nothing being built. So the supply demand dynamics in that space are incredible." (Langbaum, 30:45)
  • Data Center REITs: Equinix and Digital Realty expected to benefit from AI-fueled demand, but need for massive capital could worry investors.
• Headwinds:
  • AI Efficiency: Potential future reduction in office space demand as AI enables companies to operate with fewer employees.
  • Rent Control in NYC: Proposed rent freezes unlikely to affect REITs owning newer, market-rate properties.

Notable Quote:
"As long as demand stays elevated, then that should flow through to the ability to keep buildings full and keep rents rising to a degree."
—Jeff Langbaum [33:25]

7. Data Center Power Demand and U.S. Grid

[34:46–40:54]

• Expert: Helen Koh, Head of US Power Markets Research, BNEF

Key Insights:

• Rapid Growth: Data center power demand expected to reach 106 GW by 2035—double today’s; up 36% from projections just six months prior.
• Regional Power Constraints: Northern Virginia/PJM region highlights grid stress, possibly facing a 9.5 GW energy shortfall by 2030 if all planned centers come online.
• Fuel Mix: Near-term demand likely met by gas; nuclear is a longer-term solution due to longer development timelines.
• Policy Shifts: States like Georgia and Ohio imposing new rules to manage the strain of large users on the grid.
• Sustainability: Hyperscalers have clean energy targets, but Koh expects gas to dominate near-term supply.

Notable Quotes:
"What we know is there are certain regions that are hitting a tipping point in terms of actually being able to power this overall supply."
—Helen Koh [36:11]
"In the near term, what is likely going to power data center demand is actually going to be gas. And nuclear is a much more longer kind of play."
—Helen Koh [37:19]

Memorable Moments & Takeaways

• The Competition for NYC Casino Licenses:

  • The significance of three casino projects being approved in NYC and their scope beyond just gambling to include hotels, retail, and entertainment—with notable implications for regional market competitors.

• Retail’s Balancing Act:

  • Macy’s is transforming its in-store experience while leaning into omnichannel integration, reflecting broader industry efforts to adapt to changing shopper behavior.

• Consumer Adaptation:

  • Both Dollar Tree and Macy’s see value-conscious shoppers prioritizing essentials and leveraging promotions, especially during high-traffic periods like Black Friday.

• Tech Sector Caution—AI vs. Core Business:

  • Even industry leaders like Salesforce face headwinds: AI products are gaining traction, but not at a scale sufficient to offset macro-driven slowdowns in enterprise software.

• Aerospace and Ambition Limits:

  • Airbus’s delivery projections are being tested by new quality setbacks, underlining the fragility of global supply chains.

• Powering the Digital Future:

  • The explosive growth in data center demand, fuelled by AI, is stressing U.S. grids and prompting policy changes and investment debates regarding the use of gas, nuclear, and renewables.

Timestamps (MM:SS format)

• NYC Casino Licenses: 02:40–08:01
• Macy’s Earnings & Retail Trends: 08:05–12:43
• Dollar Tree & Discount Retail: 15:44–20:13
• Salesforce & Tech Earnings: 20:16–22:59
• Airbus & Aerospace Challenges: 23:06–27:02
• REITs Outlook: 29:36–34:24
• Data Center Power Demand: 34:46–40:54

Notable Quotes (with Attribution)

• "We came up with something like a 10% return on investment, which is certainly a bit less than most operators would expect to attain in these regional markets."
  —Brian Eggert [03:59]

• "Bringing in more relevant brands... The stores look brighter, there's really kind of exciting music... store associates are more engaged with the customer."
  —Mary Ross Gilbert [08:25]

• "We're really seeing consumer spend, but they're value driven. So they're looking for the best deals they can get. They're trading down when they need to."
  —Lily Meyer [18:09]

• "When you have a revenue base of $41 billion, it takes a lot to move the needle. So even though these [AI] products are very small and growing triple digits... they are not right there in order to take down what is happening on the core business."
  —Anurag Rana [20:41]

• "The aerospace supply chain is a bit thin... when you just have some little problem at one of your suppliers, it can really interrupt your ability to deliver airplanes."
  —George Ferguson [23:40]

• "In the near term, what is likely going to power data center demand is actually going to be gas. And nuclear is a much more longer kind of play."
  —Helen Koh [37:19]

Conclusion

This episode captures the pulse of several major industries, spotlighting how macroeconomic forces, technology trends (especially AI), and consumer behaviors are shaping the outlook for casinos, retailers, software giants, aerospace, real estate, and infrastructure. The breadth of discussion, expert guests, and actionable insights make it a highly relevant listen for anyone following the business and investment landscape.