tv Bloomberg Markets Americas Bloomberg October 16, 2017 12:00pm-1:00pm EDT
shery: here are the top stories. are following as markets continued their march into record territory. we will speak with j.p. morgan investment management about the current trading environment. and mitchtrump mcconnell will meet for a luncheon a few minutes as the gop enters a critical week in its quest to enact tax reform. we are live at the white house. company making headlines with a $10 a month service that let's the subscriber attend one film a day at a look theater as a plunge in share prices. we speak with movie pass ceo about his company's way forward. all in the next 60 minutes.
julie hyman is with us. >> we keep hitting record after this fight obstacles in the minds of strategist. that each has touched an intraday record and is on track for a closing record in today's session. the s&p 500 is above the average above strategist we surveyed for their year end forecast, 2500. typical we see stocks rallying about that forecast. we tend to see bullishness on the average on forecasters, so in today's session the individual stocks contributing index pointan basis, apple, j.p. morgan, bank
of america. we are seeing rates rise in the wake of his reach by janet yellen over the week that seemed to indicate some hawkishness on her part. 1.5%,shares up participating in a bounce back that stock recently. also on the downside, some analysts calls dragging down stocks.al j behind downgraded today. hunt being dragged down today. finally, adobe systems as well, deutsche bank in a note today saying it faces lengthening sales cycles in its club marketing segment and is
trimming its five-year growth estimate. utilitiesg any come generally weak today. pg&e, there is an investigation in california, a maintenance issue, or downed power line. so the stock is down sharply. it is time for today's deals report. we speak with a heavyweight in the u.k. on m&a. >> we have charles jacobs, --ior partner and chairman thank you for joining us. let's start with one of the big stories this week, the china national congress. there is some concern maybe the government will not turn back on led to 2016 being
a record year, and were seeing chinese corporate debt at a high level. how do you see m&a inside and outside of china? has slowed down after the crackdown on reforms, but the congress will be an important chance for the president to show china is open for business and will welcome expansion. if you look at the one belt, one road initiative, it will continue the expansion. we think they will be 1.5 trillion out bound m&a investment over the next decade, so still a massive power in world m&a. it has quieted down for certain companies, but for the good chinese companies looking to do outbound m&a, i don't think there will be many headwinds. >> one of the big stories about whether chinese companies will be buying into aramco amid talks of whether they do an
international ipo, private placement. you being in london have seen investors unhappy with the rules being changed for the london stock exchange. how do you see that playing out? will the world's biggest ipo end of being a private placement? >> you have an amazing company in saudi aramco. london would love to have it. to regulators need to listen the funds whose they don't drop the standards and make exceptions. we want to keep the government standards high, so hopefully a middle ground can be reached with practical people. i don't know whether a private placement will happen or will not happen, but it might be a taking ao-step process large company like that state owned, bring outside investors in, to a local listing, then in due course do a large
international listing. i think they could do either, but it would not surprise me. volumes globally are down 5% this year. not as many big deals. what are you seeing in terms of confidence to finance these deals? >> when you look at the geopolitical headwinds out there, companies are saying it has to be business as usual. we will look at sensible m&a opportunities, consolidation, but if you are saying is that the time to do a better transaction, something really might say welot will sit on our hands and see how these geopolitical things play out. i'm not surprised the top end is quieter, the private equity is very active. the continent and cross-border is active.
little bitlone a down, the u.s. a little down, but overall if you as people a year ago m&a 5% down, most would have taken that. >> i feel volumes are up 30%. confident to do them in a rallying equity market? >> there is a is good to see is that continental europe is strong and good companies ipo-ing. built, goodentum ipos, now a good pipeline in london, and there is always end up demand. ent up demand. there are companies as well that look for a liquidity event, so both drive the ipo market. >> any big predictions in the next 18 months in terms of m&a? >> our job is to help clients
get ready for what they want to do. vonnie: we're going to go to the president at a cabinet meeting. >> there is tremendous optimism having to do with his this in our country. gdp growth has reach more than and other than the hurricanes would have done phenomenally, but something will have to be taken off because of problems of the massive hurricanes we've had to endure, and now i guess you can add the wildfires in california. not take offan like it has the potential to do unless we reduce the tax burden on families, businesses, workers of our country, and we will be able to do that. we are getting receptivity from congress. we are getting tremendous accolades for what we are doing having to do with reform and the
massive tax cuts. tax cutse the largest in the history of our country. we are one of the highest taxed nations in the world right now. it is time to restore america's competitive edge and pass historic tax cuts for the american people. one point in gdp would be $2.5 trillion, revenues. to four.from three when i began we were in the ones, now we are going up higher. if we went as an example from four, three, or three to so we are talking about trains of dollars and millions of jobs. we want to reduce excessive government spending, and that is what we are working on at our cabinet meeting today. i have asked director mulvaney to find various savings in all
of the departments that are gathered around the table, which is everybody. i need my cabinet to work with the director mulvaney to fight for these spending cuts and make sure they happen. we want to make the departments as lean and efficient as also go. we want departments with lots of heart, lots of heart. one thing we are looking at strongly is welfare reform. that is becoming a big subject and people are taking advantage of the system and other people are not receiving what they really need to live, and we think it is unfair to them, but some people are really taking advantage of our system from that standpoint and we will be looking very, very strongly at welfare reform. underl be a big topic this administration, and it has started already and we have a lot of recommendations we will be making and you will be hearing about them very shortly.
the other thing we are doing that relates to people's lives is the prescription drug prices are out of control. the drug prices have gone through the roof. if you look at the savings by the same exact company made in the same exact box and sold someplace else, sometimes it is a fraction of what we pay in this country, meaning the world is taking advantage of the united states. they are setting prices in other countries and we are not. the drug companies are frankly getting away with murder and we want to bring our prices down to what other countries are paying and let the countries pay more because they are setting such low prices that we are subsidizing other countries, and that is not going to happen anymore. ,t has been going on for years and i don't mean to percent more, double, triple, quadruple, so much more that it is unfair
to the united states as usual. sent a letter to congress outlining my administration's top priorities for immigration reform. this was a bottom of effort driven by dedicated law enforcement professionals and they took a big oath to protect our nation, the justice department is doing a fantastic job on the border and with regard to immigration, more than anyone has ever seen before. thank you very much, jeff. it has really had an impact and the positive impact and now we will take it five steps further. my proposal closes dangerous enable it illegal immigration, asylum, fraud, and visa overstays. , nobody knowstays what the numbers are they are so out of control, and we will take care of that.
when you look at what is going on in mexico, mexico is having a tough time in terms of crime. more than ever we need the wall. we have drugs pouring through on the southern border. we have to have the wall. we will have the wall. if you look at what is happening on the other side of the border with tremendous crime and tremendous problems going on, we have a good relationship with but there are a lot of problems. we don't want the drugs and we don't want the crime. we need the wall. we have asked congress to ensure any proposed immigration reform ends. one person comes in and brings everyone in his family with him or her. chain migration critical for creating a system that puts american workers and the american taxpayer first. i probably nominated the
for the department of homeland security. i also as for my other nominees. we have half the number of nominees confirmed by the senate because frankly the democrats have terrible policy, terrible, and they are very good at obstruction. they doe one thing well. their policy is no good and they don't seem to be doing too well as politicians because of their policy, but they are great at obstruction. we have half the nominees that president obama had at this time. it is very unfair. in many cases confirming them with tremendous majorities, but they are bringing them right down to the line. we have people who are totally qualified and will pass, but
they have to wait a long time because of total obstruction. i can say the same thing with judicial nominees, our judges. mostve some of the qualified people. the wall street journal wrote a story about it the other day that these are some of the most qualified people ever and they are waiting forever online, and it should not happen that way. it is not right and it is not fair. thank elaine duke for her leadership in responding to the catastrophic storms that have struck a nation and territories. we also issued a disaster declaration in california in response to the devastating wildfires like we have never seen, and we mourn the terrible loss of lies we have. fema and first responders are there. we have our military helping. it is sad to watch how fast and rapidly they move and people are caught in their houses. it is an incredible thing, caught in their houses, so we
have a lot of people helping government in california and made a lot of progress in the last couple of days, but we are subject to wind and what happens been, itre, but it has is a very sad thing to watch. we also continue to pray for the victims of the mass shooting in las vegas. we cannot erase the pain of those who lost their loved ones, but pledged to never leave their side. we are working with them very much so with the fbi and law enforcement and department of justice. i guess a lot of people think they understand what happened, but he was a demented, sick individual, some wires were crossed pretty badly in his brain, extremely badly in his brain, and it is a very sad event. these tragedies we have witnessed tremendous
strength and heroism of our people. each one of these tragedies we have had, we have witnessed such strength and heroism. unified, nons are destructive force on earth can come close to breaking us apart. we have a lot of work to do on behalf of our magnificent country and our extraordinary great trust has been placed upon each member of our cabinet. we have a cabinet, there are those who are saying it is the finest group of people ever assembled as a cabinet, and i happen to agree with that. of course i should agree with it, but i think we have an extraordinary group of people around this table. tremendous amount of talent, and i would not say i was necessary looking to be politically correct, although i end up being politically correct because that was the right thing to do in every sense of the word juster we have gotten
really, really great people. i am proud of them. we will work on those things i just outlined, and many more. that isthe iran deal right now being studied and a lot of people agreed with what i did. i feel strongly about what i did. i'm tired of being taken advantage of as a nation. the nation has been taken advantage of for many years, for many decades frankly, and i am tired of watching it, but the iran deal was something i felt had to be done and we will see phase two. it might be positive, totally negative, maybe a final termination. some people say that is a greater possibility, but it could turn out to be positive. we will see what happens. i thought the tone of the iranian leaders was modified, and i was happy to see that, but i don't know if that means anything. they are great negotiators.
for negotiated a great deal themselves, but horrible for the united states. we will see what happens. the health care is moving along, knocked down csr's. that was a gift that was frankly what they gave to the insurance companies. take a look at their stocks. take a look at where their stocks were when obamacare was approved and where they are today. if you invested in the stocks, you would be extremely happy. they have given them a total gift. they have given them, you could almost call it a payoff, and it is a disgrace, but that money goes to the insurance companies. we want to take care of poor people, people who need help with health care, and that is what i am here to do, and i am never going to get campaign contributions i guarantee that from the insurance companies, but a lot of people got them.
take a look at the democrats, how much money has been spent by the democrats and health companies on politicians generally, but take a look at the coffers of the democrats. payments have brought republicans and democrats together because we got emergency calls from the democrats and i think probably the republicans were also calling them, saying let's come up with at least a short-term fix of health care in this country. the gravy train ended the day i knocked out to the insurance companies money, which was last week. hundreds of millions of dollars a month handed to the insurance companies for very little reason, believe me. i want the money to go to the people. i want the money to go to poor people that needed. peoplethe money to go to who need proper health care, not to insurance companies, which it
was going as of last week. i ended that. we have lots of interesting things to do. i am meeting with mitch mcconnell for lunch. i think we will have words on the steps after that. and pretty much that is it. enjoy yourself folks. i will see her out there with mitch mcconnell. thank you very much. steve is very committed. he is a friend of mine to getting things past. d. passe i have great relationships with many senators, but in particular with most republican senators, but we are not getting the job done. they are not getting the job done. you had health care approved, then a surprise vote by john mccain. we have had other things happen and they are not getting the job done, and i can understand where
steve is coming from and i can understand to be honest with you where a lot of people are coming from. i am not happy about it, and a lot of people are not happy about it. we need tax cuts and we need health care. we are going to get health care done. meet, republicans are meeting with democrats because of what i did with the csr, because i cut off the gravy train. they are right now having emergency meetings to get a short-term fix of health care where premiums don't have to double and triple every year like they have been doing under obamacare because obamacare is finished. it is dead. it is gone. you should not even mention it. there is no such thing as obama care anymore. i said this years ago. it is a concept that could not have worked. but we are working on some kind of short-term fix prior to the
republicans getting together, maybe with some democrats. butn it is obstruction, maybe with some democrats to fix health care permanently, so i think we will have a short-term fix with republicans and democrats getting together, and after that we will have a successful vote because as you know we were one vote short and i think we have the votes right now whether through block grant or something else, block granting the money back to the states, which does seem to make sense where the states run it because it is a small form of government and they can be individually sensitive, so that will happen fairly shortly as soon as we have the next reconciliation i think we will get the vote for health care. i feel very confident about that. the democrats can't join us on that, which will be a long-term fix, but i believe we will have a short-term fix because i think the democrats will be blamed for the mess. this is an obamacare mess. when the premiums go up, that
has nothing to do with anything other than the fact that we have poor health care delivered poorly them a written poorly, approved by the democrats. it was called obamacare, but i think we will have a short-term ,ix, then a long-term fix probably in march or april. we will have a solid vote. he will probably be 100% republican, no democrats, but most people know that will be a good form of health care. that will be it, ok? any other questions. no. i will see you in a little while. , depends one feels who you are talking about. there are some republicans that should be ashamed of themselves, but most of them, i take you what, i know the republican senators, most of them are really, really great people that want to work hard and do great things for the american public, but you have a few people that disappointed us. they really disappointed us them
a so i can understand how steve bannon feels ok? as you very much. -- thank you very much. listening to the united states president answering a question. he was talking about health care, how there will be a short-term fix, then a long-term fix which will be around march or april he said. blockd he feels like ranting is probably the best way to go. previous to that in his prepared talked aboutlso things like prescription drugs and how their prices were too high. benie: he said they would focusing on domestic issues in this cabinet meeting. he said visa overstays were out of control and the border wall was needed, so he touched on a lot of subjects you'd let's ring in kevin cirilli at the white house. he said obamacare is finished, it's dead. are we really looking at another
ramp up for health care? >> the took drastic steps to undercut the affordable care act or obamacare and the coupling of executive orders, one of which allows associations to get access to health care in the private sector, then of course not funding key portions of obamacare. the president is doing that i'm told by sources close to the white house in order to spare another attempt hong kong versus b have to accomplish reforming the health care industry. he is about to walk into a meeting with mitch mcconnell, and answering questions, i was surprised about steve bannon, the former chief strategist who has since gone outside the white house and said he will wage political war against mitch mcconnell and will only be backing republicans in 2018 who
guaranteed to vote against the majority leader, so the president weighing in on that moments before he goes to that meeting with mitch mcconnell. vonnie: that was very interesting saying i can understand where steve shannon is coming from. how important is a truce between the president and mitch mcconnell right now as we are heading for that senate budget vote? so important for lawmakers to get one step closer to a calm she reform by the end of the year. it is unknown whether they have the votes. it's anticipated the majority leader would not bring the vote unless they have the votes. susan collins saying she is likely to vote for it. sources i'm talking with taking that as a signal that the budget is nearing consensus in order to pass, but the relationship the tween the majority leader has been controversial to say the least. also needsy leader
the president, and with steve bannon working outside the white house, it has created a political dynamic where the grassroots is fired up and ready to go in terms of going against the majority leader. vonnie: you mentioned that conversation later on, availability with the senate majority leader. needs to getleader into the inner circle again, doesn't he? said -- andnd paul aide to senator rand paul so they had a good meeting. these think tanks are the driving force so to speak the policy. the president will speak tomorrow night at a form by the conservative heritage foundation.
behind the scenes, they're trying to tweak tax reform to get cohesive support on it. one of the top critics so far has been senator rand paul. one of the controversial elements is the state and local deduction tax. get aesident is trying to legislative accomplishment by the end of the year ahead of the midterm election cycle. julie: we heard president trump saying a bipartisan short-term fix was coming. was he referencing a bill there? mentioning also be the bipartisan push for those who have pushed to be fixes in the health care industry has it is impacting rural communities. i interviewed several democratic senators in the last couple of , and there is a narrow
path forward in terms of getting some democrats on board, especially when you talk about the rural communities and their impact on the health care industry. outside have an bipartisan group of governors who have been pushing for changes. it is difficult to do that. the second you bring on democrats, you lose the far right. 7 kevin -- vonnie: kevin cirilli, thank you. here's mark crumpton. mark: thousands of california residents have been given the all clear to return home as firefighters gain ground. although the danger from an of the most destructive blazes in california history is far from over. them to makeelping some progress. at least 40 people died and dozens of others remain missing. president trump will be asking
allies to pressure north korea on its nuclear program when he travels to the asia-pacific region next month. he will visit japan, south korea, china, vietnam, and the philippines. mr. trump will be meeting with president moon jae-in and call on the international community to join together in maximizing pressure on north korea. it's the single deadliest terror attack ever. it's risen to more than 300 from a truck bombing in the country's capital. amalia is claiming links to al-shabab. hittinge ophelia, ireland, some of the worst weather to the country in half a century. to be glad been killed. the irish weather service extended its most severe warning nationwide for the first time ever. a dangerous storm surge and flooding are expected. local news, 24 hours a day,
powered by more than 2700 journalists and analysts in 120 countries. i'm mark crumpton, this is bloomberg. vonnie? vonnie: thank you, mark. movie pass has been making headlines with a $10 per month service that allows system -- subscribers to go to as many movies as they want for $10 a day. part of an august deal was acquiring the majority stake. but the warning was the possibility that movie pass might not make it. joining us now to talk about more, the movie pass ceo, mitch ofe, a cofounding executive netflix. a renowned figure in the industry. moviermed the unlimited watching industry, to an extent.
how viable is this particular business, though? mitch: very viable. people want to go more often to the movies, but especially like thels don't transactional model. they grew up with netflix, with amazon prime, and they love this notept of trying movies but committing. a subscription allows you -- it's kind of like movie insurance. now i can go see lots of movies and not have to stress whether it's great or not. it's still $30e: a month, but at the same time as watching as many as you want if you watch more than three, you would be making a loss. how viable is profitability in the long term? mitch: it's a better price than that. it's only $10 a month. the subscribers that we acquire are those that previously only went to three to five movies per year. after they start with movie pass, they go twice as often, roughly 10 times per year for
slightly less than one a month. the reason they love it is because now they don't have to stress over that decision. vonnie: how are you financing it, though? will you need more money by the end of the year question are you need to entice these customers away from loyalty programs. there are lots of ways to grab customers. thate: that is -- mitch: is why we priced it at $10 a month. vonnie: i mean, how much more outside money will you need by the end of the year? mitch: when you try to differentiate yourself in this world, there are so many other things you could do with your entertainment dollar, we need to fund growth. the first people to join a program like this are in high-cost markets, like new york and l.a., because they see what an amazing deal it is. or people who already go a lot. it will take a few years to get to positive cash flow. into ads,e you going
popcorn, anything on the sides? mitch: we get our customers to go twice as often. they purchase 123% more of those high-margin concessions. we also get them to go to the .earby restaurants, use uber not only that, the movie distribution system is broken. millionare spending $50 to 150 million dollars marketing a film where they should know exactly who wants to see the film. we can do that better than any other market. we will collect replicas and many other different areas. legal: in terms of the remedy to block the service, have you reached any deals? we have with many of the independents, they see it as a great competitive edge. we haven't yet proven to the big
guys that we are a valuable part of the ecosystem. in the same way as the early days of netflix, we had to prove to the studios that revenue share was the right model and we had to put our money where our mouth is. that's what we are doing with movie pass, investing the money for the next six months to show them that we can improve their business. julie: the argument from amc is that this will not provide sufficient funds for quality theaters. what do you say to that? mitch: that's what blockbuster told us when we started netflix and red box. we were renting movies at red box at 1/5 of what blockbuster was renting them for and they said -- how can you possibly do that, you will fail. it's all about putting technology and data behind your retail business. julie: how much time do you need for that? probably six. we are already talking to a number of studios to show them
how we can ensure more people in the seats. we have already talked theaters, we have some deals with theaters to collect a portion of their concession. i can see it being a genius idea, the only thing is you need the underlying business to survive and in the case of netflix, the question is, can it before the content it needs? in your case it's, will the theaters themselves survive? even talking about chains. mitch: it's funny, just a couple of weeks ago i was on the phone of netflix.mer cfo he reminded me that for the first two years we were negative gross margins dramatically and still today, netflix borrows huge amounts of money, billions of dollars every year. a companybnormal for to build great value with consumers, reenergizing a business in the need to fund that and we are prepared to do it. of moviell right, ceo
environment with respect to the macro environment, it's not a bad thing. tepid inflation, a cautious fed and in the background, global growth picking up. janet yellen said that her best guess is that we would see something soon? samantha: she has in saying that for a while, but one more hike this year, that's still by historical standards a slow, cautious pace of tightening and it doesn't have to upset the equity market. why you are is overweight equities against fixed income, but when we see you rising rates do you go with credit or duration risk? from aa: we are biased capital position. there's still a need for a good high-quality fixed income portfolio and as long as they don't go up dramatically or with
, qualityvolatility fixed income will hold up. we have been seeing this decline because i think everyone is worried about duration risk and yes, everyone has to be concerned about it, that you still need fixed income as a ballast in the folio area vonnie: what's good quality? samantha: the duration on the barclays egg on the thermometer is close to six, well above four and a half, which is normally where it stands. we are saying to take an active approach. something that can maneuver around the rates going up. something that isn't just a passive fixed income fund. vonnie: give us an example. tips, what do you mean? >> it will mean better quality corporate. a balance sheet component to any fixed income that you want. that's going to be the base. if you need yield, which everyone does, we like local currency emerging-market debt,
for example, but that would be a sector where you would be going active and very specific. when it comes to emerging-market debt, where you find favorable conditions? if you are worried about currency risk, you have to tread lightly. we think the majority of the currency strength in the u.s. and currency weakness in emerging markets is over. it's sort of study, from that perspective. if you had the view that it would start to behave like a wild thing again, you would have to be careful. >> the you mean china, latin america, eastern europe? >> we look at it from manufacturing versus commodity. you could have a piece of all three of those markets but it's going to be a manufacturing tilts to that fixed income versus commodities. we don't see too much more upside when it comes to
commodity prices. equitiesen it comes to in global stocks, take a look at the japanese, you see them continuing to rally. same thing for south korea, despite geopolitical tensions. would it be a responsible for people not to buy into this? samantha: if the earnings recovery and the growth recovery is there, that should be more than enough. politics in the u.s. or anywhere around the globe, the way we look at it is that it shrinks andibility of the base case increases your tail for something good or bad happening. come back to fundamentals. you obviously can't ignore the politics but that's more of a rapper the tells you about the different scenarios and how they play out at the base case is earnings recovery's around the world. to us that is the most important point. thise: even in environment. all right, samantha azzarello. thank you.
for our stock of the hour. apple, pumping how are -- higher, on pace for its best day of october at least. here to tell us why is abigail doolittle. abigail: if the bullish action continues it could support our last guest as record highs continue, but this is the biggest waiting to the nasdaq and s&p 500. the reason it is up so much today, upgrading over keybank, the analyst there has an interesting call, saying that apple is in the early stages of what he calls a more aggressive market segmentation, a fancy way of saying they would focus more on that expensive iphone x that everyone is looking forward to and as a result it should help the gross profit per user in this matters if we hopped into the bloomberg and take a look at the financial analysis function. this is the essay from the bloomberg that shows us that we have revenue that is for 2017
and the fourth quarter will be reported on november 3, so here's 2018 and this analyst is saying that these gross margins have been flat for the last two years and into this year it's expected to pop higher this year and he's expecting it could go up even higher. mattering not be on just the bottom line, but let's say the iphone x is in great, it raises his bottom line number 211 16, well above consensus. he's putting his numbers where his mouth is. an interesting call, helping the shares today. onnie: so we get a report we do.r 2? abigail: apple will be out on november 3 and investors will really be looking at clues as to what's next for the apple iphone 10, whether or not it is going to get the numbers. with forecasts into march and this is the first
column the current estimate for that quarter there, 47 million into the december quarter of $82 million, the big one every year for the holiday and into the march quarter for next year, 64 million, all or above the prior year. there is speculation amongst analysts as to whether or not they will hit that number, because there is the delay on the iphone. you could have some bumps in the road. shawn harrison at longbow research, i spoke to him this morning and his interesting point was that 2018 is all about the growth here. going past this quarterly report the challenge is whether or not their production costs are in early november or december and if they happen at the same time it means they will be cutting production, heading than they normally would to production cuts closer to the end of the year or even early next year. time will tell, but right now one bullish analyst will stay bullish on this of course,
coming down to the mix of units and when they sell. thank you so much. time for look at the bloomberg is this flash. starting next month, new tesla models of cars sold in china will have charging ports the comply with local standards according to a company spokeswoman, who says the ampany will also begin retrofitting of supercharger stations across the country and the changeover is expected to be completed by next spring and elon musk is trying to boost sales in the biggest electric vehicles market in the world. a british court says that the uber appeal of its london ban will be heard december 11 and the transport for london said that they would have to revoke safety concerns over there's .ttempts to avoid regulations bp is looking to raise nearly $900 million through a public listing of some of its u.s. pipeline assets. indicatesding today
that its master limited partnership is marketing 42.5 million shares in the 19 to $21 range. prices are forcing majors to divest nonstrategic assets on the pipeline offering more steady revenue because shipping rates don't fluctuate with oil prices. that is your business flash up eight. the weinstein up, company is on the lookout for a buyer. who's interested in the embattled company? that's next. this is bloomberg. ♪
the board member said that they believe that their investment and sponsorship will help to stabilize the company's current operations. joining us from los angeles to discuss this is our bloomberg entertainment reporter, lucas shaw. give us some details or any specifics we might know about this potential deal. lucas: stabilize is the keyword. this is obviously a company in disarray because it's co-founder , leader has been expelled, caught himself up in one of the biggest scandals in recent memory. it's not exactly an attractive asset for outside people to invest in. it would just kind of seem like money and to put in claim to be supporting this company. but they are clearly looking for options. just on friday issued a statement saying that they weren't looking to sell all or part company and denied reports that set as much but now have acknowledged that they are, but this month -- money from colony
capital, which had previously acquired miramax, a company that the weinstein brothers previously founded, in 2010, now bailing them out again, giving them enough money to try to ride this out while they figure out what they want to do with what remains, which is mostly a library of film and television. vonnie: that's the thing, it would take a longer conversation to tease out how tainted the actual library is. did people stop admiring hitchcock movies after all of the allegations against him came out? at away this is purchasing something at a discounted price for something where we don't know what the impact will be on the actual product. kevin: you are -- lucas: i think you are right, the underlying asset is still pretty strong and maybe if he rides it out it could become valuable and be flipped for a nice profit. but some of what we don't know is how much the assets are really worth. how much leverage have a taken on, how much debt was there?
there were reports that the value of the weinstein company had plummeted, but tom barrett is a smart guy and probably sees an opportunity. as sayingis quoted that they will help to return the company to its rightful iconic position in the independent film and television industry. what will it take to get there, though? lucas: that's a good question. they don't know what the future of this company is. whether it will continue its operation or not. the most likely scenario seems to be that they just try to flip the assets and monetize them. they do have a lot of projects ongoing. bob weinstein, harvey's brother, has said that he will try to continue to release the movies that his dimension label has going. they have tv projects that could continue. --zon distance themselves excuse me, cancel themselves from one end in the other case
they took the weinstein company out of the project. what they have to do moving forward is still an open weston. -- question. vonnie: we were just talking about this with eo of movie pass. are we likely to hear anything about new seasons of old therites today? lucas: focus on netflix earnings is always on subscriber numbers and they are projecting editions of 4 million in the fourth quarter, choose me, third quarter, the best on record. they released "ozark" and "friends from college" in the last quarter, all of which were pretty popular. they tend to short sell what they are going to do and then overdeliver. my guess is that we will just hear more from the leadership about spending the money they are making on original programming. the big question will be -- how are they doing in europe and asia?
the two areas of growth they would like going forward. shery: right. lucas, thank you for joining us. still ahead, with nafta negotiations reeling, we will talk with michael froman, former u.s. trade representative under president obama about what we can expect from these critical talks. vonnie: a quick reminder, you can always check -- catch all of our interviews on the bloomberg. you will see charts, personalities, old interviews, and you can even ask a question. you can send a message here and we will pass it along. stay tuned. michael froman, next. this is bloomberg.
david: top stories is this hour, it's critical weekend president trump us tax reform -- plan. what could give trump a much-needed legislative win? and nafta negotiations reeling after a list of aggressive u.s. proposals. we will speak to the former expert,ministration michael froman. thethen we will speak to chairman of the president's council of economic advisers, kevin hassett. ♪ susan collins says she's leaning towards supporting a senate budget resolution that is key to the republican effort to pass a major tax overhaul without the need for democratic votes. she spoke on "this week" yesterday.