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tv   Best Of Bloomberg Markets Middle East  Bloomberg  November 11, 2016 12:00am-1:01am EST

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>> it's 1:00 p.m. in hong kong. currencies are falling on speculation that the fed will be more aggressive in boosting interest rates under a trump administration. plunging the most in two years, prompting the fed to step in. the ring it and you on also have yuannes -- ringgit and also have declines. alibaba racking up nearly $2 billion in sales. alibaba enlisted top celebrities, scarlet johansson,
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david beckham, and kobe bryant to drum up support for single status here. toshiba net income fell by 28%. month, it cited strong demand for energy ships -- chips. this is bloomberg. take a look at how this recovery rally is shaping up as we head into the end of the trading week in asia. hong kong getting up early gains, down by 1%. shanghai heading for a bull market. shenzhen also looking higher. this is bloomberg. ♪
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emily: coming up, the dow celebrates a record high, but tech was not invited to the party. we'll dig into why technology is the only sector getting hammered because donald trump won the election. plus, a disturbance in the force at disney. we'll hear from c.e.o. bob iger on the disappointing results. and exploring the unknown. as silicon valley braces for a trump presidency, my exclusive interview with blackberry's c.e.o. and whether trump's policies could lead to a trade war with china. but first to our lead. the dow jones industrial average searching to an all-time high off the back of the election victory, but one industry is missing out, the tech sector. facebook, amazon, netflix and google's parent, alphabet, down for the second day. it may be that investors are weighing the impact of trump's policies on big tech multinationals. to put this in perspective, joseph cholli in new york.
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apple also ending the day down almost 3% today. walk us through the market. joseph: you saw the companies that are going to benefit from a trump presidency doing quite well, like industrials, materials and financials. but on the other side, you have tech. there's a lot of internationally exposed companies in the tech sector. you are looking at companies like alphabet, facebook. these are companies that get half their money from overseas. if overseas trade takes a blow, technology is a sector that will be most poised to get hurt. the tech sector was up about 11% year-to-date until today. that tells you this is an area people will be looking to sell given any reason. perhaps a little overvalued by some measures. just people looking to take some profits, maybe reinvest in other areas that might be seen as benefiting more from a trump presidency.
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and lastly, there's the more cynical view here, which is that people in the tech sector weren't quiet about their distaste for mr. trump on the campaign trail. there's a little skepticism that he's going to treat them nicely. maybe he's going to have some sort of a revenge agenda. i'm not sure if i'm willing to go that far, but there's a lot working against technology today. you saw all of those fang stocks down more than 1.9% for one day. emily: thinking about amazon's c.e.o. jeff bezos, who tweeted about sending donald trump to space after trump said something negative about him owning "the washington post." that said, financial and industrial shares rallied. are these industries affected by trade and immigration issues as well? joseph: yes, but the things to look at our specific things he said since the election was completed.
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dodd-frank, he's talking about repealing that. that's going to remove a lot of regulatory oversight from this area. and also, you also keep in mind that the probability of a rate hike next month is very high. that's going to benefit banks too. it might not just be trump affecting banks. people with money to burn, looking to get cash off the sidelines would be looking at financials as an appealing place. when you talk about materials and industrials, those are sectors poised to really benefit from the increased infrastructure spending that trump has long proposed. it's just the sort of, i guess, pro-economic cyclical sector that is the type that would benefit from that sort of thing. and technology unfortunately just weighing some of the brunt of that. also, it wasn't just technology, even though that was the biggest loser today. big spike in bond yields, bond proxies like utilities get crushed today as well. so it's sort of a war under the surface of the stock market.
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the market was only up about .2%. but you had huge moves that we haven't seen since the financial crisis. emily: we will continue to follow. thanks so much. shares ofdisney moving after hours. shares are now higher post-market after reporting fourth quarter results. per share fellgs to $1.10 on revenue of just over $13 billion, both of which fell short of analyst estimates. the company said it was hurt by lower ad sales at cable tv networks, including its largest business, espn. but on the call, c.e.o. bob iger said espn is losing fewer subscribers. joining us now, walter tide, and from princeton, a bloomberg intelligence media analyst. walter, i start with you. programming costs are increasing, are you concerned about this particular business getting squeezed?
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walter: not really. the quarter that was reported was uninspiring, but bob iger got on the call and said relax. talked a lot about directed consumer -- direct-to-consumer. that's why the stock was down and turned around after he started talking on the call about that. emily: shares trading up 3% post-market. geetha, would you agree with that? geetha: i do agree. there was a lot of noise coming into this quarter because of comps from last year which had the benefit of an extra week. estimates were all over the place. there was some noise there. but yes, i think bob did a good job of allaying fears regarding the growth prospects for espn. emily: walter, let's talk about espn.
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neilsen last week reported espn losing over 600,000 subscribers between october and november. what's your take even if losses are slow, and what is your take on the future of the business? walter: i think espn remains one of the most valuable properties media, and i understand there have been subscriber losses. iger talked on the call about using this investment that they just made to go more direct to consumer. i think that's going to resonate with some younger subscribers that have gone off these multichannel cable packages and can use it direct to consumer. i think the value there, i'm not really that concerned about it. i also love the diversity that disney has. that's one of the beauties of the company, they do have these other businesses, while they have trouble at espn currently, they can offset that with the incredible studio slate coming up, as well as parks and resorts and shanghai, due to break even next year.
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emily: let's talk about shanghai disney. now that it's been open for a few months, the -- do we know how well it's doing? geetha: management has had great things to say about shanghai disney. as walter mentioned, it's going to break even next year. they gave attendance numbers, four million visitors in the first four months, which is very encouraging. of course, they're not going to give guidance for the future. but so far, i mean, it's been a textbook opening for disney, and it's resonating really well with the audiences there. i think the other one thing that bob iger mentioned was the fact that they have some pricing leverage. it will be interesting to see how shanghai becomes an important part of their park operations. emily: it will be interesting to see how they park does in the winter. winter in shanghai is brutal. let's talk about the movie slate. what are you excited about when it comes to upcoming releases?
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walter: the star wars franchise is front and center. they've got one coming out next month, in december, then episode viii coming out next year. one of the great things about the predictability of the movie stream, because it is planned out three to five years in advance. they've got a marvel movie next 3" coming out next year. movies.slate of emily: do you see any of these movies leading to greater merchandising opportunities and opportunities to expand into other businesses? geetha: that's something disney has done so beautifully well, taken all their characters and monetized them across the different segments of the business. they have a very, very strong
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slate in 2017, an even stronger slate in 2018 with four marvel movies and two star wars movies apart from three animation movies from pixar and the animation studio. firing on all cylinders when it comes to all different parts of their studio business. emily: bob iger on the call talking about the succession process, always a question that comes up. given the c.e.o. transition that will be happening in the near future, he said the succession process ongoing, robust, a new candidate will come on a timely basis. any concerns about the future of disney when the c.e.o. is not bob iger? walter: bob has been an incredible c.e.o. since the founding of the company, that transition will be concerning when it happens. i would love for you to ask bob if he would mind signing another five-year contract.
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that would be great. emily: he keeps extending, so it's happened before. thank you both. stay tuned, more disney analysis later this hour. we will be joined by ceo bob iger live from disney headquarters in burbank. coming up, cybersecurity continues to be questioned under the leadership of president-elect donald trump. can we expect to see a friendlier future with russia? we'll break it down next. this is bloomberg. ♪
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emily: in a rare public appearance, edward snowden weighed in on donald trump and the future of privacy. take a listen to what he had to say.
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>> i try not to look at this as an issue of a single selection of a single president, or even a single government, right. because we see these things, these threats coming across borders. we see the same thing in russia, they've got a new surveillance law, russians call it the big brother law. in china, on the day of the election, the news was talking about how the chinese had just passed a new mass surveillance law and got away with practically no criticism from the international community because they were clever enough to say they modeled it on the united states' own surveillance laws. emily: joining us now from washington, jamil, director of the homeland and national security law program at george mason university school of law. snowden expertly dodged comments specifically about trump, but what do you make, jamil, about the prospect of an n.s.a., a national security agency, that donald trump has the keys to,
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what does it mean for privacy, what does it mean for security? guest: i think that the n.s.a. is an important institution in our country. there are a lot of laws and processes around it. the president is limited in his ability to do things when it comes to the intelligence community. but at the end of the day, donald trump was a candidate for a while, now he's the president. i think it's a very different role, different responsibility. and you saw a change in his tone and approach, even in his speech right after he was elected. i think it's hard to make assumptions at this point, but i think the thing to focus on is that the u.s. government has tremendous capabilities, and they've always been directed at the right thing, collecting intelligence to protect our nation. that's what i think it will remain aimed. emily: what about the u.s. relationship with russia? do you see a friendlier relationship as a result of this? and what does that mean for american citizens? jamil: it's funny to hear all this concern about the friendly relations with russia.
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of course, it was the obama administration that sought a reset with russia and to create a friendly relationship. russia has gotten away with a lot recently in the last eight years. they've become more influential in the middle east, they've flown active operations against isis in support of assaad. you've seen them get involved in eastern europe in a very aggressive way. we have to figure out how to deal with russia and confront their activities, whether that's through a friendly relationship, through a carrot on one hand or a stick on the other, we have to figure out how to deal with russia. to be frank, the current administration has not done a good job and allowed russia to become more influential. emily: the russian presidential spokesperson said he expects there will still be disagreements between the united states and russia. you can't simply make those go away. take a listen to what he had to say. >> russia has never interfered in domestic politics in the united states. despite what was said about
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russia, despite what was said about putin. president putin has never interfered, never indicated his favorite candidate. emily: responding there to reports that russia was behind hacks of the u.s. election, also one of russia's top diplomats today suggested there were contacts between russia and trump's entourage, which the trump camp has vehemently denied. what do you make of this back and forth? jamil: you notice the russian individual statements were very careful. he said official russia was involved. we know in russia there's no difference between official russia and unofficial russia. russia oftentimes uses third party proxies to conduct their activities. if you look at the u.s. intelligence community's analysis, they are confident
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that the activities to disclose wikileaks and the like were by russian officials and their senior leaders. either you believe the russian officials or the u.s. intelligence community. either way, i wouldn't put so much stock about the candidate. like any country, want they're looking for is stability in leadership and looking for a leader they can predict the actions of. to be honest, donald trump has been fairly unpredictable, for good or bad, in this election cycle. i doubt russia was hugely supporting donald trump, because he's more unpredictable than hillary clinton or barack obama. emily: we spoke to an expert who suggested that now that the u.s. or some people behind the scenes have determined they believed russia was behind these hacks of the u.s. election, that there could be retaliation from the u.s. against russia.
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do you see the u.s. attacking russia now as a result of what happened over the last several months? jamil: i think there's no doubt there has to be a response. the question is, does the response take place in cyberspace or through some other methodology? and does it have to be overt, or could it be covert? i think there has to be a response, because this type of behavior, whether it is russia trying to get involved in u.s. elections or china building in the south china sea, or crisis -- isis being aggressive in the middle east, we have to respond. we've seen what eight years of no robust response has done, it's allowed these actors to get away with more. i think you'll see a more aggressive response and it has to be one. it's important that we have one, whether it's overt or covert and whether it uses cyberor not. emily: what about surveillance, trump didn't hold back criticizing apple when they said they would or would not unlock the phone of the san bernardino shooter terrorist.
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that said, you know, we have seen changes in u.s. surveillance programs as a result of snowden's revelations. do you see trump rolling back changes that have happened so far or changing the status quo when it comes to the existing surveillance in american systems? -- citizens? jamil: i don't know what they've planned. but there are things we've done voluntarily to weaken our , whichlance capabilities has provided american-like protections to foreigners located overseas. doesn't make a lot of sense in a world becoming increasingly dangerous. i think you'll see an effort by republicans in congress and the administration to consider how we ought to address those surveillance laws at a time of increasing national threat. part of that includes three authorizing 702 program, which both the obama and bush administrations said was one of our most effective surveillance methods. this notou will see
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because of donald trump, but because it's the right thing for national security. emily: jamil jaffers, thank you for helping us speculate, appreciate you joining us. coming up, alibaba singles they just got off to a hot start. sales went from zero to $1 billion in minutes. more later this hour. ♪
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emily: welcome back. earlier today i attended a tech convention in half-moon bay where bloomberg's david kirkpatrick has pulled together an all-star list of speakers including mark zuckerberg and james park. the conference's main theme is how the internet of things, i.o.t., will create a more efficient world. i sat down with the man leading verizon's efforts and asked how i.o.t. will impact the long-term vision for the wireless business. >> we may not see individual
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growth of smartphones, but we will continue to see the growth of consumption of more and more data. that's also an important part of our 5g investment, not only to improve service, but the able to move that data cost effectively and then also efficiently so we don't have those choke points. emily: how do these efforts hit the bottom line, and where does revenue and profit come from? >> revenue and profit comes from making our infrastructure more efficient. as you're consuming more and more data, we have a cost efficient infrastructure. that gives you the ability to maintain margins and then continue to invest back into the network infrastructure. emily: we're talk about sensors and chips everywhere. are networks resilient enough to support billions and billions of tiny devices? >> let's talk about the tiny devices. that's really where the growth is. we had been talking about smartphones, and over the years with the investments we've made,
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those investments have been around investing in devices and communications to move huge volumes of data in short periods of time. the typical broadband scenario. what you're mentioning is it's about moving small bits of data, probably from devices that have never been connected before, but supporting those devices over a very long period of time. so you're right. resilience is going to be a key issue. emily: can the networks handle it? >> the networks can handle it. we have to stay in front of that growth curve and continue to make investments. emily: mark bartolomeo of verizon speaking to us. still to come, bob iger joining us live from the burbank headquarters for more on the latest earnings report. that conversation is next. and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, or on its sirius xm.
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this is bloomberg. ♪
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♪ haidi: it is 1:30 in hong kong. emerging markets are falling on speculation that the fed will be more aggressive in boosting interest rates under a donald trump administration. declines.lso extended bank helda's central keep rates at a record low after and a shakeupion of the president.
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her approval rating has plunged over the arrest of a friend and aide. malaysia last quarter beat estim ates, helping to counter weak government spending. gdp expanded 1.5% from the previous three months. 2017ger told bloomberg will be a lower growth year after a fourth quarter miss. earnings were hurt by espn. inney shares extended gains the session. will returne espn to nice growth and continue to grow beyond that. our outlook is positive. news 24 hours a day powered by 2600 journalists in 120 countries -- this is
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bloomberg. let's look at how markets are shaping up in asia. let's get over to jules. a mixed picture across asia. you are seeing a lot of weakness in emerging markets, particularly with currencies hit speculation over the donald trump presidency will mean. we were talking about the rupiah falling significantly, down as much as it has been in five years. we are on the verge of bull market territory, close to 20% from lows we saw in january. australia has closed on the upside, up by .8%. a lot of good buys from material players today.
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the story of the day, a stronger nikkeimeans them -- the is higher. a mixed picture across asia on what has been an extraordinary week in the markets. ♪ emily: this is bloomberg technology. back to disney now. shares are higher after reporting fourth-quarter results . the company reporting fewer ad sales hurt its tv business, which makes up more than half the company profit. but it's losing fewer subscribers at espn. disney wrapping up its earnings call. david westin is standing by for more with disney c.e.o. and chairman bob iger. david: we're delighted to be joined by the chairman and c.e.o. of disney, bob iger. you have your full year earnings as well as the fourth quarter
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and have another up year in earnings per share and revenue. at the same time, you would agree you've got some head winds developed as the year developed. give us a sense of where you think you came out in 2016 and give us a peek into 2017. >> 2016 was a tremendous year for the company. 2014 and 2015 have been record years for us and did even better in we continue to grow at a 2016. robust clip. in addition, the two biggest things we had to accomplish in fiscal 2016 was one, bring "star wars" back. our first movie, "force awakens" came out in december, the first one since the acquisition of lucas, and it was just a gigantic success, over $2.1 billion in global box office, third highest grossing movie of all time. a critical success as well. the second thing we had to do
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was open up the biggest, most ambitious project we've ever embarked on, building disneyland in shanghai. we opened on june 16. i'm proud to say after four months of operation, four million people visited the park and they're loving what they have experienced. and the prospects for that park in the most populous country in the world i think are really bright. as we move to 2017, we feel great about what we accomplished in 2016. there is momentum in most of our businesses. we have a couple of head winds as it relates to comparability factors like the cost of the new nba contract for espn and the fact that we don't have a "star wars" saga film in 2017 but we think that the company is headed in the right direction. we talked about the fact that 2017 is an anomaly in that it's a lower growth year than we've experienced since 2013, for instance. particularly given the fact that we'll have absorbed the nba deal, we'll have a "star wars"
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film, shanghai will be well underway and startup cost will be behind us, and we have an incredible slate of other movies. david: you said one of the strengths of the company is you have a range of assets. if one starts to miss, another will hit. the media networks have gotten a lot of attention frankly in part because it's so successful and so large. but there are questions about the subscriber level for espn and some reduction in the subscribers. bring us up to speed on where that stands right now. at what rate are you losing subscribers and is that continuing? bob: we've been eyes wide open about what's going on in the television business overall. we've seen a lot of disruption. people are consuming tv on new platforms in very, very different ways and in new places as well. mobile has become really important, for instance. we were candid a year ago about what we had been seeing at the time regarding espn subs. we have been seeing losses.
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a lot of it came from the adoption of cable light bundles that didn't have espn in them. we decided to embark on a campaign, so to speak, to make sure espn was included in any new light bundles that launched and we've been successful in negotiating deals with distributors, particularly a lot of new distributors to make sure espn is included in new packages coming out. we are heartened by, one a slight abatement in the loss of subs due to light bundles. the launching of these new digital platforms which we think provide a great user interface and are very mobile friendly. we know espn has a great hand as it relates to programming. we know live sports is popular. so while there are some challenges that are due to some of the disruption that we've seen, we actually believe that there are some solutions, there's some answers to some of the questions that people have had about what's going on with
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espn, and we feel good about our prospects. david: as you look out in 2017, do you believe those new digital distribution alternatives can make up for the loss of subscribers in espn and resume the normal path of growth that espn has enjoyed? bob: espn, save for the anomaly that is 2017 because of the 600-something-odd-million dollars of incremental rights fees due to the nba deal, which we're not complaining about because we did a deal that takes takes us through the 2025 season, there's a lot of rights, games, programming. the nba are we what we consider to be an ascendant sport, it's growing in popularity. but there's an anomaly in 2017 because of that. in 2018 we believe espn will return to some nice growth again and will continue to grow beyond that. again, our outlook for espn is positive. we can't predict yet just, you
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know, what -- how big the impact will be from some of these new platforms that are launching because they're just launching. but we feel good about the user interface. we believe that their pricing is right in terms of increasing adoption of those platforms. we think it provides a great alternative to people who thought the expanded basics bundle was too expensive or young people who weren't interested in subscribing to what they considered to be cable television but they like new digital platforms. we think this is one of the best developments we've seen in the multichannel ecosystem in a long time. we also know everyone wants to launch with espn as part of their new package because of the popularity of sports and espn. david: on the subject of new digital platforms, with the at&t-time warner deal, the question of do you need to own the distribution platforms is brought back. to. does disney need to own the platforms or not?
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bob: i look at the at&t-time warner merger as a distribution company needing to own content, as opposed to a company needing to own distribution. i'm not going to comment whether those synergies work or not but to me it echoes what we've seen, you've seen, i've seen for many, many years, that is, content is king. if you're a distribution platform and don't have great content, figure that out because the consumer is interested far more in content than in how they get that content, although that's important too. for disney, what we'd like to accomplish and see as an opportunity is how do we get closer to our customer? there are tools that exist today that mine user data. they improve the user experience to more tailored and contextual
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andramming in advertising it gives the distributor of content an opportunity to monetize under more compelling circumstances. so one of the reasons why we made the investment that we did is we like the play of bamtech in the sense that it is one avenue that gets us closer to the customer and gives us the ability to mine that data, sell directly and grow our business. we're going to continue to look with an open mind expansively at those opportunities. do we have to own distribution? no, not as a company. we're doing quite well without it. would we like to have the kind of distribution that solves the problem or provides us with the opportunity that i just described? yes, we would. david: one of your strengths as a c.e.o. is you believe in going to scale. you don't like to do things small. is bamtech alone enough to take you to scale or do you need something more to really take you to scale in this new distribution area of digital?
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bob: very good question. don't know the answer to that. it is a start. it's a step in the direction of achieving scale. whether it gets us to the kind of scale we need or not, i think it's premature to answer that question since we haven't launched the espn branded product on it yet. but it's an important step. david: you mentioned shanghai. i can't let you go without talking about shanghai. that was a personal project of yours. it's a big project. bring us up to speed on where that is, what do we know about shanghai today we didn't know three months ago? bob: it opened june 16 to great fanfare. biggest investment we've made outside the united states. it shows, by the way, in the product. great product. high-quality, very original. first four months, four million visitors. that did include the peak summer months. we said on the call people could infer if you factor in peak months, that should result in
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about 10 million visitors for the first year. we'd be happy with that number , but we are not providing guidance there. what we can say is that about 50% of the people visiting come from outside of the shanghai region. that's a big surprise to us. we thought it was going to be well above 75% initially that came from shanghai, and the fact that it is so balanced leads us to believe that word of mouth on this and the intent to visit from well beyond shanghai is very, very high. so this has become suddenly not a local product but a national product in china. a national tourist destination, which is what shanghai is. that's really positive. we also know people are staying longer per visit, almost two hours longer, that's because there is a lot to do. we built, to your point earlier, we built to scale here. they love the experience. so they're staying longer. that's not a bad thing. you want people to want to spend more time consuming your
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product. so the combination of those and what we've seen from attendance and basically how the product is behaving in the marketplace all really positive. which is why our outlook for that business is positive. why we decided, by the way, to expand right away. we're building a new land, toy story land, and the opportunity for expansion beyond that is there. you will see more. david: you are expanding in shanghai itself. talk about growth. what have you learned from shanghai about further growth in your theme park business, in existing theme parks, or even, i don't mean to pressure on a new theme park already, but beyond shanghai? bob: i don't know if we learned much more from shanghai other than the fact the product works in china. it's premature to talk about that.
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it reaffirmed what we know. one, our intellectual property work great in theme parks. it's an an all-time high in terms of popularity. we see that in the brand research we do. the fact that we have 11 franchises that did over $1 billion in retail sales. we know technology when used in the parks to create better experience really works. if you try the new pirates of traction, you would see what i mean. you can take that technology and create an immersive experience unlike anything you get in the home or anywhere else. that's why we're continuing to invest not just in china but across the board in that regard in our theme parks because it grows our business. david: this has been a remarkable week, not only because of the company earnings, but we elected a new president. it surprised a lot of people. it is early going, but i know
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the way you plan ahead. what are the first thoughts about how a president trump could affect the walt disney company? bob: first of all, i think that so far, so good in terms of what i'll call transition even though it's very, very early. i think both the president-elect that -- i was going to say the candidate, but he is no longer the candidate. the president-elect and president obama have approached this really smartly. be cordial, be open, understand that the most important thing here is america, not one party or ideology or another. let's be gentlemen about it. that's great for the country. for the country to see that just instills confidence in our country and faith that the future is good. even if your ideology is not necessarily represented in the next president of the united states. so i like what i've seen so far. i think the country is reacting well to it. it's too early to predict what the policies of a new
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administration would mean for this company. believe me, i've gotten briefed on how they might affect us. but way too early to speculate publicly. what i can say, though, is that we've been talking a lot as a company and lobbying a lot about the need for new tax policy. the corporate tax rate in the united states is the highest in the world. it's not competitive. it needs to get fixed. it needs to get lowered and loopholes need to get closed and we definitely believe we would benefit from that happening and the sooner, the better. i think it's something that's going to be addressed. it's really too early to say. david: finally, you're a student of the media. you lived your entire professional career in the media. you know it and love it. it's not too soon to start asking about the role of the media in this election. it strikes me that this is different media than four years ago, certainly eight years ago. certainly donald trump took full
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advantage of that, both in terms of being able to get access, particularly on cable channels, but also on social media. is the media starting to think about its role in future elections and what role it should be playing as the fourth estate? bob: there's a lot of hand wringing about the media this week and its role in the election. and i think that that hand wringing is missing the point. and the point it's missing is that the media today doesn't look anything like the media of yesterday. we're living in a world where the sheer definition of media, and i'm talking about not the definition of what the industry creates but the definition that the people create, is extremely different than what it used to be. how we get our news. what we consider news, how information travels, how fast it travels. it's vastly different. i would argue that the media actually played a positive role in this campaign in the sense
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that it was ever present, which media is today. it was sort of eyes on, cameras on, voices about everything that went on. everything was exposed. everything was subject to scrutiny by the new media. that can't be a bad thing. did the media get it right in terms of predicting the outcome? no. i think that deserves some scrutiny by the media. how did they get it wrong? but i don't think the manner in which the campaign was covered is necessarily something that deserves criticism. you can always be reflective about it. that's fine. i think there's nothing harmful about that. but what is media today? it doesn't look anything like it did certainly five years ago, 10 years ago, when i started my career at abc, 42 years ago. it's just different. and i think it's time that those that follow the media from a critical perspective accept the fact that the media they are following today is vastly
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different than the media they used to follow, or maybe than they think they're following. david: bob, thank you so very much. the chairman and c.e.o. of the walt disney company joining us from burbank, california. now back to you. emily: david weston, with disney c.e.o. bob iger, thanks so much. tomorrow on bloomberg tv, don't miss more reaction to disney's latest result and the conversation we had with c.e.o. bob iger. media analyst rich greenfield joins daybreak america at 8:30 a.m. ♪
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emily: alibaba's singles day has kicked off. based in china, the shopping frenzy has served as a litmus test for a strength of the chinese economy. $14.3 billion in
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2015, four times more than cyber monday in the united states. joining us now to discuss, tom, at the heart of singles day festivities. alibaba has brought in celebrities from around the world, from scarlett johansson to david beckham. give us the lay of the land. tom: you know this event well, but they added up to the glitz and glamor again this year. as you said, the beckhams were here plugging some of their own products. there was kobe bryant as well, and scarlett johansson. one sour note, the no-show of katy perry, who cited family matters, though many were quick to point out she had been clearly devastated by the trump presidential win. so yes, there was lots of glitz and glamour on stage last night. jack ma came out and did a magic trick. it is all about hyping this up,
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getting as many viewers as possible, trying to get people engaging and trying to beat the records he pointed to. known to doma, magic and karaoke. alibaba did post $1 billion in sales in the first five minutes. if this is a litmus test for the strength of the chinese economy what's the verdict so far? tom: the verdict is pretty strong. in the first five minutes, $1 billion. the first two hours, $7.2 billion, more than the entire 24 hours of 2013. behind me on the screen, just a couple minutes ago, the number was showing at around $9 billion. it is 8:00 a.m. here in beijing. less than halfway through this. they are on course to beat their number quite confidently from last year. analysts say if we see an uptick of 45% from last year that will be seen as robust given the overall slowdown in the chinese
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economy. but the consumer has remained confident this year, and this is a litmus test and gauge of the all-important chinese consumer and their sentiment. emily: there's been a lot of talk about how a trump presidency will affect business, relations with china. alibaba is an international company, but donald trump talked about ending a number of trade agreements with countries around the world. any insight into how a president trump might impact alibaba? degree,has, to a overshadowed the event and we saying alibaba would be most exposed if trump follows through on those tariffs. if he did do that, it's likely china would respond. but there's a note of caution from people we spoke to on the
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ground saying we need to see what he does follow through with. we also heard from the executive vice chairman of alibaba who pointed out trade between the two nations was increasingly important for jobs and in terms of alibaba, they have an ali express site that sells into the u.s. from china, and may have sells high end products in the u.s. into china. analysts on the ground are playing a wait and see. they may start to focus on emerging markets if trump does follow through on these policies. emily: tom mackenzie on the ground in shenzen. we will be speaking with president mike evans tomorrow at 10:30 a.m. eastern, 7:30 a.m. pacific. we spent so much time with bob iger, you have to catch my interview with john chan of blackberry at bloomberg.com. we also talked about the impact
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of a trump presidency of u.s.-china relations. advised president george w. bush during his ministration. see you tomorrow. ♪
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>> the race to january. green, the dow rallied to record high on the hopes that a trump stimulus plan will boost the economy. alibaba is on track to smash it sales record. we are alive with the latest -- we are live with the latest.

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