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tv   Fast Money  CNBC  October 3, 2017 5:00pm-6:00pm EDT

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and you're controlle cv -- vcs on the board coming up, a star-studded "fast money" tonight, disney's ceo bob hieiger. that does it for us. over to "fast. i'm melissa lee. tonight on "fast," the stars are aligning for special special night. disney's ceo will be here. plus mark cuban will be here plus jpmorgan's marko kolanovic
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is here. first we start off with the car race heating up as september auto sales come on strong let's get to phil lebeau in chicago. hi, phil >> reporter: melissa, right now jim hackett is laying out his plan for transforming the ford motor company for analysts on wall street. here is hackett talking to analysts >> the mandate here is that ford must compete companies never choose to die and yet many, by not evolving, are enabling that kind of fate >> reporter: so what's the transformation plan? it really comes down to three things first of all, lean heavily on trucks and suvs, their most profitable vehicles. steer away from cars as much as possible, they're not going to dump them altogether but won't be emphasizing them as much. meanwhile ford will invest more
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in electric vehicles and less gas powered vehicles, that means less capital expenditures into things like internal combustion engines. finally, cut costs substantially. ford says it will be cutting its material costs over the next four years by $10 billion and cutting its engineering expenses by $4 billion. how much will this improve things at ford they certainly can't go anywhere but higher this is a stock that's been mired in that 11.50 to 12.50 range for some time although it has been moving higher with the rest of the auto stocks last month. speaking of them, what a strong month of september it was. we knew they would have strong sales coming after the hurricanes but this was much better than expected toyota, gm, ford, all 4 to 5% greater than what analysts had predicted. the monthly sales right coming in at 18.57 million vehicles most were expecting the sales rate to be closer to 17.3, 17.4
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million vehicles finally, take a look at shares of general motors. this is a company that's finally been discovered by a lot of analysts over the last week, with upgrades and higher priced targets from a number of firms today, the head of its autonomous vehicle program, cruise automation, basically came out and said, you know what, we do a better job than waymo in testing vehicles. we test them in san francisco, waymo tests them in the suburbs of phoenix they said we'll be ready and we'll be ready quickly >> the willingness of ford and gm to invest in evs is staggering because they're trying to turn around the market
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and/ orient itself in a very different way. >> reporter: what's the number one market for vehicles? china. china may ultimately decide to ban the sale of new gasoline powered vehicles you may want to be positioned in electric vehicles. that's why all the investments are going there. >> thank you, phil lebeau in chicago. where th general motors is up 16% tesla and ferrari are down, 4 and 2% respectively. are the old school autos doubling down on electronic and autonomous vehicles worth more than you think who will win the car wars, tim >> the oems, detroit, absolutely have a seat at the table we talked about the stock performance. since june, which i would call peak tesla, and we've got gm outperforming tesla by 42% people forget, gm's pickup
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business, their exposure to robotaxis, their ability to invest in autonomous people have been ignoring. markets are obsessed with valuations gm gets to a place where it's silly cheap, especially for a company that's given us many data points in the last six months that have reaffirmed or compet exceeded guidance. that's the story here. to think these guys are dead in the water is crazy i've always thought so >> i agree with tim. this is not your father's gm anymore. today was great, there were a lot of interesting things about it the mix was good the one fly in the ointment, i guess incentives, if you have to pick one, but inventory down all of that is really, really good i don't know what the number will be post hurricane, but it doesn't really matter. this was a giant pot of value just sitting there for so long it's moved a lot but if you look at the valuation, i mean, it's still ridiculously cheap i think we have a chart of the
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pe of gm versus the stock price. we don't have a chart. it's a fascinating chart there it is. so you can see that the pe is still ridiculously cheap, i think. you still have a nice yield. and it's actually even more pronounced because there's cash that's been building up all along the while we see that price chart. so the valuation has moved but i think it's still very attractive here. the thing that turned it was finally peak auto sales, once get it over that hump and say see, gm can still make money >> kudos to the both of you, you called this, great call on both your parts i do think you need value to continue to outperform to tim's point, if you're looking at the ev side, can they make a car that people actually want to buy? tesla's done that. i don't know if gm really has
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the ability to make a car, especially with tesla's model 3, i think that will win out in the end. but this value versus growth, i think that gm is in a sweet spot right now, off its recent lows >> totally agree, tesla's car, anyone who reviews it, loves it. but to say that gm can't produce a car as exciting and fun, by the very nature of the ev approach, you're going to feel the same acceleration and exhilaration in driving that car. >> it just hasn't happened, you have to agree tesla has been around for a while gm has had those initiatives in place with their chevy volt. it just has not happened yet where they've created busy the way tesla have >> when the model 3 actually goes on sale, what gm and ford have done, they often give incentives on cars tesla is not known for giving any incentive. >> the government. >> but that's a level playing field, that's being given for all cars if you don't have an incentive on top of that offered by the manufacturer, will that be an
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advantage in a market like a china or an india? >> you sounded like an auto ad exhilaration that is such a great -- >> and by the way, just so you know, i felt it myself, as i was saying >> i'm saying, it was well done. put that in the can and save it for the gm execs, because that was genius karen, did you a fast pitch for gm a couple of things about gm. if you believe everything that tim is saying, which very well may be true, that it's dirt cheap at 7 1/2 times forward earnings, karen is right, it's not your father's gm because this is the second iteration of gm this is the same level we topped out at in 2013 now gm continues to prove itself ford is in a four-year down trend going back to 2013 or so that probably has to close above 13 one name we mentioned on august 29th, you were sitting right
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there, and you knew the answer, i said, do you know what auto nation did today you said, yes, they announced a stock buyback. where did that come from that stock is 48 1/2 now if you want to go downstream, i think auto nation is breaking out to the upside. >> a quickie would you rather, very straightforward general motors or tesla? >> at this point, i think with the latest price performance, i would go back to tesla >> i know both of you will say gm >> yes i'll say it emphatically it's exhilerating, it's emphatic the bottom line is you need catalysts to get moving. jim needed a catalyst, whether it was the hurricane or news coming out on the ev side. you stay in this trade >> the double tops in tesla scared me, but the potential for a double top in gm equally scarce me. i'm not playing your game, obviously. >> even though it was a quickie game >> so you say neither?
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>> can di do that? is that allowed? >> you can say auto nation >> you just did it >> i quit. >> you can't quit. customers are flocking to amazon and whole foods as the grocery wars heat up plugs the stas the stars arg on "fast money," bob iger will be here. and billionaire investor mark cuban, there he is with our own andrew ross sorkin we'll join them right after this u n't this is a jam-packed show yowowant to miss much more "fast money" after this but some people still like cable. just like some people like banging their head on a low ceiling. drinking spoiled milk. camping in poison ivy. getting a papercut. and having their arm trapped in a vending machine. but for everyone else, there's directv.
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for #1 rated customer satisfaction over cable switch to directv. call 1-800-directv. [] hi, it's anne from edward jones. i'm glad i caught you. well i'm just leaving the office so for once i've got plenty of time. what's going on? so those financial regulations being talked about? they could affect your accounts, so let's get together and talk, and make sure everything's clear. thanks. yeah. that would be great. we've grown to over $900 billion in assets under care...
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by being proactive, not reactive. it's how edward jones makes sense of investing.
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welcome back to "fast money. we're headed now to beverly hills. andrew ross sorkin is onsite at vanity fair's summit where the biggest names in tech have gathered he's sitting down with billionaire investor mark cuban. andrew, take it away >> reporter: thank you for that, we are here with mark cuban. lots to talk about in politics, sports, and business there were some headlines today, you were on a podcast released today saying that you are actively considering running for president.
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>> actively considering is an appropriate way to describe it i'm looking at it. i would say the odds are strongly against it because my wife would divorce me. it's more a family issue than any other issue. >> reporter: put some chances on it percentages. >> 90% it doesn't happen because family first >> reporter: when you say you're thinking about it, what does that mean? >> based on what's happening in the white house, what's happening in the country and the world, i think we need better leadership and i think i could do a better job. but there's a lot more to it than thinking you could do a better job i'm a ready to make the commitment >> reporter: what would be the tipping point? if your wife came to you and said -- >> it's okay yes, that would be a tipping point. who knows what happens in the next three years if there's a better candidate and i believe somebody else can be a better job? then i'm happy it's not my dream to be president of the united states >> reporter: do your kids want
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you to do it >> my son, definitely. my daughter only cares about boys >> reporter: let's talk about the prospect of tax reform you've seen the plan your take? >> we haven't seen details but look, it's structured based off a theory if i listen to larry kudlow,'s all theory, theory, theory we need to eliminate the theory. we live in an active age if you want to help working class workers or families, you reduce payroll taxes payroll taxes is a tax on every hour that we work. it still has to support medicare and social security. you have to find it by eliminating deductions in some other way from the general fund. if the goal is to increase wages which haven't increased in 20 years, that's the way to do it if part of the goal is to get not just money repatriated but also to get companies to move here or stay here, instead of just saying we're cutting our corporate tax rate to 20%, why not go to the fortune 500, the ceos, why not go to the most
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profitable 5,000 companies in this interactive day and age, say put it in your spreadsheet if i get you this tax rate, 20%, i want a commitment that, a, you're going to increase wages by x% for your hourly employees, or b, you're going to commit to whatever it is we think is going to improve the economy the most. there's no reason to base it off of theory anymore. in the '60s, we could do that. >> reporter: you know you're not going to get a commitment from any companies. >> then what's the point of doing it >> reporter: ostensibly, it will circulate through the conomy >> there's so enouno such things ostensibly we saw a trump bump because ostensibly someone ran the map, and the map is the map if a company is going to have a true effective rate of 20% and they were at 25%, what are they
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going to do with the delta how are they going to invest it? if the goal is to increase wages and to increase investment, then get the commitment if not, why give it? >> reporter: what do you think the corporate rate should be >> i haven't done all the math i don't know i really don't i mean, it truly is an algorithmic problem. i think you could run the math and figure it out. >> reporter: individual rate >> i don't think we need to raise or change the top rate i wouldn't mind if it was raised depending on the deductions. i would like to see it simplified i am a supporter of simplifying taxes because it shouldn't cost more money to do your taxes than what you pay in taxes. >> reporter: should estate taxes exist? you have a big estate. >> it should exist if we're able to compensate for it, that's a different issue but again, there's a big pie and we can't just depend on theory to grow that pie. we have to go and get commitments. everybody who watches this show, they know how to use a spreadsheet, right
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tell us what you're going to do with the money >> reporter: i want to turn to sports, we don't have so much time with you. you saw what lebron said, you saw what the president said, you saw what steph said. you've seen what happened at the nhl. should the players stand >> in the nba? >> reporter: in the nba. in your league, should they stand? >> i'll tell you what i told the players. they should stand with their hand on their heart. when you have a silent protest like that, you leave the narrative to everybody else. rather than doing that, i'll put you in front of a camera, say what's on your mind, what is the message you would like to convey we'll show it to the fans, we'll give it to the media, let them show it to the viewers and listeners. and we have foundations, and we get involved in all these causes let's talk about that and what we do. the nfl is in a different spot, right? if the los angeles chargers or the raiders, okay, if the raiders walk by, you wouldn't
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recognize anybody that maybe marshawn lynch and derrick carr. when the president says something and lebron calls him a bum, lebron had more followers than the president does. nfl players, their only platform is when they're on the field, the cameras are on, and together they can convey a message. it's completely different. >> if lebron would take a knee, would you fine him >> yes, because those are the rules. again, it's not like the nfl the nfl player has no choice lebron would be like, where are my guys? you have all these platforms, all these different ways to convey what it is that you have an issue with. say what's on your mind. because the good thing about the nba, we'll let you say what's on your mind. >> reporter: melissa >> mark, if i told you tomorrow that the corporate tax rate was going to go down to a 20% effective rate, what do you think stocks will do >> they would go up. >> isn't that pay good thing >> and they -- well, look, melissa, it depends on what the
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goal is. if the goal is to expand the economy, if the goal is to put more money in the pockets of hard working americans who haven't seen wage increases, then just look backwards since 2009, what has the stock market done? people like me have seen my net worth go way up, all the heads of corporations have seen their way net worth go way up, their stock value go up. why hasn't the economy been growing faster why isn't it working and why hasn't it worked >> reporter: final question from -- >> i'm waiting for melissa to answer >> i'm sorry why didn't it work >> yeah. we've only seen for the most part, under than 2% growth yet we've seen the stock market more than double >> we're also coming out of extraordinary circumstances, the greatest financial crisis we've ever faced so getting back to 2% growth isn't so bad
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>> but it hasn't changed the investing habits of ceos or wealthy americans. changing the corporate tax rate isn't going to change any of my investments. changing the personal tax rate won't change my behavior whatsoever it depends on what the goal is what i said earlier was that, look, we can't leave it just a theory when larry kudlow says, theory, theory, those days are gone. we live in an interactive world where you can go out and ask the ceo of a company, if i reduce your corporate tax rate, actual rate, to 20%, what are you going to do with the money if we repatriate millions, billions of dollars, what are you going to do with the money ask for a commitment we have a salesperson in the white house. nobody should be better than calling up bob iger, every major ceo, not to pick on bob, the top 5,000 companies, and say, what are you going to do with the money? if i can get you to commit to increasing the wages of your hourly workers, increasing the
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wages of your lowest paid salary workers, investing in factories, then you know what, not only will republicans support that effort and that lower tax, so will democrats but just leaving it to theory, that's why we fall apart >> it doesn't seem enforceable over time. >> that's all i have to say about that what's that? >> it doesn't seem enforceable over time if you're calling up the ceos to set a policy that will exist for the next ten years. >> it doesn't have to be enforceable, melissa in this day and age of media, if i'm working day to day and i'm a telemarketer in a company making $12 an hour, and my ceo makes a commitment to increase my wages because he's going to get a corporate tax cut and then he doesn't do it, that ceo has got problems >> reporter: final question from me, talking about ceos, if i put you on the board of uber today, what would you do about the situation with travis kalanick >> i funded his previous
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company. my biggest financimistake so fas not investing in uber. travis is going to one through walls, he's competitive and combative at times i think the new ceo is right, he's apologizing for london. >> reporter: do you reduce his voting power >> i don't know. i don't know enough about it >> reporter: mark cuban, always great to see you, we appreciate it >> great interview, mark cuban and andrew ross sorkin >> incredibly outspoken, great ideas. the question was about the market the market will go up. but then it really is because of tax reform or tax cuts and i actually think, look, from talking to a bunch of ceos over the last five to ten years, all we ever heard was i need a different structure in washington and i'm not doing anything until then. i actually believe a change in the corporate tax rate will change corporate behavior. but i think what he said, get a commitment from ceos, i think
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that's fantastic >> let them spend the money. whether you get them to commit to higher wages, but when you look at it as a whole, there's a going to be reinvestment,' defined risk, a capex spend. that's enough for the marketplace. >> i think the immediate deductibility of capex would spur but i wouldn't be surprised if it gets negotiated away. still ahead, grocery wars are heating up as walmart and amazon go head to head pulling out all the stops. one trader thinks there's a clear winner he'll explain why, next. i'm melissa lee. you're watching "fast money" on nbc, first in business worldwide. here's what's coming up on "fast. the man somesay could predict the future and call this year's rally says there's one area of the market that's a screaming by jpmorgan's marko kolanovic will be here to explain plus the man the myth the legend
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disney's ceo bob iger in an interview that wilhal ve everyone talking and that's when "fast money" returns. rodney and his new business.
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know where you stand instantly. visit welcome back to "fast money. check out the airlines topping the tape today the xal airline index soaring 4%, delta, united, seeing huge moves on positive industry numbers. tim? >> ultimately the impact from irma, better than expected they provided 15 1/2 to 16 1/2 on margins they started 18 to 20. that's in the price. it gets to a place where it gets to cheap again, a catalyst today, getting fresh information, the whole sector loves that. i stay in these trades >> i'm hoping that it's similar
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to gm, people were thinking, they have to be cheap multiples because they've peaked and lost their responsibility of trying to be disciplined. but now we see those delta numbers were actually pretty good so i think these three are also cheap. >> if this whole space continues to pop often the lows, then you buy spirit airlines, which has been a laggard it went from the best looking stock to the worst, down 37% year to date if you think it has longevity, move spirit. >> i agree with that in terms of potentially being spring loaded, that's it another one i think has performed rather well, alaska air, alk >> why wouldn't you go for the bracket here who have been beaten up as proxy plays for the sector >> didn't i say -- >> those are expensive names, guys, even right now >> but i think spirit is so exposed to the hurricane issues
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that you had just stated coming in i think it starts to recover they will bounce they'll be the beta play in the whole industry ahead, disney ceo bob iger will join us live in just a few minutes to talk trump, espn, and cord cutting this is an interview you will not want to miss later, the man who moves markets. the very mysterious but always accurate marko kolanovic of jpmorgan is here he'll tell us where he see e in stocks at record highs. much more "fast money" after this well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool
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from td ameritrade.
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welcome back to "fast money. the oracle of omaha sat down with our betsy quick >> you lay out money for an asset in relation to what you're going to get back. the number one yardstick is u.s. governments. and when you get 230 on the ten-year, i think stocks will do considerably better than that. if i have a choice of the two, i'm going to take stocks at that point. on the other hand, if interest rates were on the ten-year were five or six, you would have a
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whole different valuation standard for stocks. >> the markets are record highs. are stocks still cheap >> one of the arguments tim made a year ago, although i thought stocks were expensive on valuation, given the interest rate environment we still find ourselves in, stocks might not be expensive as it appears tim said that, and that's pretty much what warren buffett has said and said today. i understand that. my concern has been and continues to be, you know, it's very hard given what our federal reserve and other central banks have done to have real price discovery. i get rates are low, i get stocks are fair. but, you know, it's really difficult to make that ascertation wh ascertation. i think stocks go higher from here >> i agree with the premise, stocks can go higher warren buffett, i respect him, he's obviously a legend. but i don't think he's really
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said stocks are expensive that often, at least in my knowledge. while i agree with him, i think he left himself a really wide berth to a ten-year with residen resistance at five or six. >> look at what's working. you're seeing it in financials, you're seeing in the airlines, airlines are up 10%. i think you're at a place where if you look around the world, yields are starting to go higher this is another one of these moments. it's been a lumpy data point we're back to may 2004 numbers if you have that kind of industrial story in the united states along with what's going on around the world, we're not standing at 235 that much longer it doesn't mean we're going to 335 overnight. but the minutes we go 60 base points higher -- >> excuse my coughing,
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everybody. i had to address that, it was too obvious. our next guest is taking umbrage with warren buffett, let's say the man who some say moves the markets, marko kolanovic from jpmorgan, always great to get your analysis on the markets where do you stand on this >> on the valuation side so i think the markets valuations are relatively high in the context of low yields, they're okay when we look at earnings this year, when we look at where a ten-year yield is. obviously if the yields go higher, we'll say markets are expensive. caveat is also tax reform. if we can have tax reform, markets will look cheaper. >> the other side, though, to tax reform, is that it causes some inflation and it causes the fed to raise rates quicker and therefore valuations might seem higher how do you sort of weigh that? >> correct it could be basically cycle that we have a tax reform, maybe some
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infrastructure, inflation picks up, stocks go a little bit more higher central blanks globally, not just in u.s., are more important here, start normalizing. and rates start going higher actually rates don't even have to go higher, because the impact of the outflows or reduced inflows into the balance sheet may hit the equity multiple. you can have a situation where rates don't go as much higher but equity multiple will get hit at the back of basically central bank accommodations. >> expectations. >> yes >> marko, when every selloff seems shorter in duration and a little more shallow, is it passive investing? what's our take on that? how much is trading on fundamentals and how much is trading on systemic reaction from quant funds and the like? >> we think 25% are systematic
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in quant actually a majority of assets are not single lane fundamentals in terms of volumes, it seems to be actually more pronounced, where we think the fundamentals are 10%. nonfundamentals roles should be everything from systematic, to passive, but also trading, future etf you're not going to do necessarily individual stocks but microdevelopments. if you see last month what's happening, big rotation between value and growth and in sector terms, sort of financials, energy, materials, industrials, small caps, or realn one side, n other side, technologies, these are not necessarily fundamentals >> maybe we're starting to see a
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real breakout in emerging markets and japan. do you think about readjusting your global allocation away from the u.s. towards some of those names? >> i think certainly u.s. more pronounced rotation between sectors with probably some upside pressure if there is tax reform and stuff you know, i like emerging markets. i think europe's valuation side also looks more interesting, personally, this is not necessarily my view in jam, i have some reservation, i'm not sure i can do that accurately. i do look at the emerging market in europe directionally and u.s. rotational angle in valuation and growth we did see this year was a sort of one of the fastest decline in u.s. dollars since 1985. that is a little bit of a cooldown situation for europe, the euro rallying. something to monitor in general, in u.s. i like this
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rotation that may sort of continue and then japan, i'm not a huge fa fan, >> thank you, marko kolanovic, jpmorgan >> emerging markets, 1700 basis points since the beginning of the year i think this will continue i think ultimately, what you have is a dynamic where valuations are still in emerging markets, this is what we're talking about, valuation i think this rotation makes sense. the dollar is somewhat sideways in the short run if the dollar breaks 97, em gets hit in the short run, we're fine >> what did you do today, car en >> not a lot today i bought some gem cable, which is in the copper space it's a takeover, they announced they're up for sale, there's interest out there i've looked at it versus copper. i think there's some room to the upside >> beating a dead horse, but defense stocks, lockheed, all-time high, raytheon,
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all-time high. the valuation continues to work. >> my winners, square, monsanto, carr, avis, pulte homes, let 'em all run. ahead, disney's ceo bob iger he confirmed he's considered at cng twitter whhaed his mind? we'll find out after this.
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♪ it's a small world after all ♪ >> do you believe that bob iger is coming up on this show? f all the guests i would like to have, he's the guy
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welcome back to "fast money. our star-studded lineup continues with disney ceo bob iger, julia boorstin sits down with the media mogul julia, take it away. >> reporter: thank you so much, and bob iger, thank you so much for joining us today three of your employees were shot sunday night at the terrible tragic shooting in las vegas, my condolences. you obviously have hundreds of thousands of visitors go through your parks every single year how do you deal with a shooting like this? >> well, in this particular case, obviously it did not happen on our property, that's quite different. and we dealt with this primarily by trying to determine how many employees we had there it turns out there were dozens and then try to determine whether they were okay, and then discovering much to our horror and sadness that not only were three shot but one of them was
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killed we also found out that a number of other employees and former employees were affected in many other ways, actually a former employee was also killed so we're dealing with it mostly by doing whatever we can to support the families of the victims and to support the victims themselves in one case, one shot very badly and still in the hospital in las vegas. and also doing what we can to support the people who work with them closely it's a very difficult thing for people to accept it. someone working next to them one day is gone a day later. and so senselessly, so tragically, in a way that is almost unfathomable, hard to comprehend >> reporter: obviously you have the hotel rooms, so many hotel rooms, so many visitors. you've never had an incident like this. when you think about the security at your parks, how do you revisit and think about making sure that your employees and your visitors are safe >> it's a constant process for
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us we invest a lot of time, a lot of money, and we have very talented people and technology to do everything we possibly can. that includes, by the way, working with law enforcement authorities, to keep our employees safe and the people who visit us safe. when something like this happens, it obviously causes us to, you know, revisit some things is there more that we can do, you obviously ask yourself the what if. it's a horrible thing. what are our policies, if it had been us, that sort of thing. it's a terrible thing to describe but it's part of who we are as a company it's unfortunately the way the world is today, any business that is so consumer-facing, that is so present in the world, has to deal with these things. in the united states, it is an american tragedy we're experiencing >> reporter: you made an interesting point that your
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housekeeping staff is an integral part of making sure you don't have an incident >> all of our staff is vigilant, including our housekeeping staff. you would hope, as someone who visited disney, that that would be the case, they're part of the process of keeping people safe and securing our businesses. >> reporter: switching topics, espn has a service launching next year. the description of the service has changed a little bit, you're going from a one-size-fits-all stream to something that would be more a la carte what's the latest you can tell us about the service and pricing and everything >> it will be an add-on service to the espn linear services. we're not going out of the business of either producing linear channels or distributing them in the traditional fashion. the traditional fashion includes
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traditional distributors and new entrants in the marketplace, that will continue and it will be available on mobile apps or on apps that you can access through what's called authenticati authentication we're basically authenticating that you're a subscriber to multichannelright in managing en
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through the controversy of one of our employees tweeting something out about the president. and we're not revisiting it, to answer this question, and we're certainly not going to engage, we don't feel it would be useful, with the president or the white house in a debate about this, he's entitled to his opinion, and i don't want to comment about it and i don't
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have a need to what we ended up doing, and it's complicated these days, because we have employees that feel a need to speak out, particularly black employees who are angered about what they see societally, i think we have to take that into account we have to be empathetic, we have to understand that with that anger comes a need to speak out. although we would prefer that our on-air talent in particular not speak out on controversial issues except maybe as they relate specifically to sports, in this case that was not adhered to, but we took context into account and decided not to take action on it. >> reporter: it's become surprisingly political in the last couple of weeks with the president's comments on the nfl. are you surprised, do you think this is going to impact ratings
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or advertisers >> i'm a patriot i stand for the national anthem. i think it's a symbol of respect to the country that has been good to many people. i would hope everybody else did. i also, as i just described, i understand how much anger there is out there it's hard to understand it fully. i have not been subject to racism or prejudice, not to my knowledge. so it's hard to put ourselves in other people's shoes but there are people that are angry and concerned about an erosion of rights or growth of racism in our country and they want to speak out about it one way they're doing it in protests, not standing for the national anthem. i know it's tied to the black lives matter movement and also has ties to police treatment of particularly minorities or black people i think, again, we have to understand what's going on in america today and how some people feel. we also have to appreciate constitutional rights and the
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right for people to do what they're doing. and i don't really think it has a long term negative impact on the sport. i understand why people are angry about it, why people, you know, are angry when someone refuses to stand for the national anthem. but i think i would advise everyone to put themselves in those people's shoes and try to understand what might be going on in their lives and their minds. >> reporter: the way you're talking right now, you sound like you're a leader not just of a company but perhaps interested in leading the country in other ways do you ever think -- i know there are a lot of people in hollywood who would like you to run for president. is that still on the table >> i'm running the walt disney company for the next year and a half or so, that's a full-time job and then some. that's my priority i'm also a parent and a husband and a grandfather, and i've got a lot going on i have not made any decisions about what i'm doing after my disney life. there are a number of opportunities that may be available to me. i've got time to think about
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them honestly, again, my energy is in one primary direction. >> reporter: and you certainly have your hands full, one of the things you were just busy with was a renegotiation with altise. ultimately you resolved the negotiations without a blackout. the fact that these negotiations became so contentious and drew out for so long, what does that say about the state of the traditional tv business and what's going to come with the next round of negotiations >> to clarify, we haven't announced officially a deal. what we've said is there is a handshake agreement, it was confirmed there is a handshake agreement. the agreement that we shook hands over reflects the value of the great channels that we own, including the disney channel and abc and of course espn and i think it's good for both sides, because the deal, again, reflects value we'll get paid for that value.
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and altise not only gets to continue to distribute those great channels to their customers but can do so without interruption a lot of the dialogue and debate and rhetoric is due to the fact that business is feeling the pressure of disruption there's a lot of change and uncertainty and tension that exists between the traditional players in the business or among the traditional players as consumers have more choice, as new distributors come into the market, as new producers come into the market. and i think that's what's going on i feel great about where we have ended up in this i think it reflects or it's a harbinger of things to come. we were confident going into this that the outcome would be fine for us. and i'm pleased to say so far, so good. >> the division i haven't gotten to ask you about is your movie division have you seen the upcoming "star wars," the final version, how is it >> yes
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i've seen the next three pictures we've got, commercial announcement, sorry. "thor 3," "cocoa," and "star wars: the last jedi," which comes out in december. it's another great "star wars" film that i think is an homage to the past and shows all the respect to the past, but it's also a big step into the future. >> reporter: i for one am very excited to see it. bob iger, thank you for joining us >> julia boorstin, thank you, and thank you as well to bob iger, ceo of disney. >> i've been looking for "cocoa," so i'm glad it's out there. >> it was fascinating, it seemed like he left the door open to a run. >> he sure did >> and his answer was rather presidential >> it was. >> about the issue and how he addressed it
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i thought that was interesting anyone who has had kids and been to a disney land knows, they run a tight ship it is phenomenal, and i think, you know, now this issue with las vegas, like you said, they'll have to visit. but anybody cif anybody can do job of it, disney said >> parks and resorts, $17 billion. people overlook that it's interesting, when you look at media companies, comcast, disney, 5% off the recent bots people are taking a second look at media companies >> they've made waiting on line for 90 minutes to see a hippopotamus an art form >> it sounds like you've done that >> i have. >> i think disney is best the bunch and it gets back to that multiple they make 650 next year, is it a 15, 16, or 18? that tells you whether it's 100 bucks or $120. it's difficult to call a cycle
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with these guys. i'm not ready to say the pressure is off. >> you give disney a second look or do you just wait for the next nfl design >> i still submit, listen, i think the rest of the space is too cheap. but on valuation, disney deserves a premium multiple, but not the premium they're enjoying the lucas films thing is not working out as well as they had hoped. they still clearly have pressure in their media space i think the right multiple is more like 13 1/2, 14, rather than the one they're enjoying now. >> final trade time. it's that time tim. >> it's about finding stocks where you think you've found some inflection point. airlines have that here, they certainly have the catalyst. ual. >> first, happy birthday to my husband, my best long term trade ever >> nice. >> i'm in that one for the long haul, i think. >> i think >> we'll see how it goes i'm with tim, american airlines is a good value. >> square, tough one here, it's
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up 120%. i've been long for a while i'm staying long i do believe it goes higher from here square >> alk will get you done, sister >> i'm melissa lee thanks for watching. see you back at 5:00 don't go anywhere, "mad money" with jim cramer starts right now. my mission is simple to make you money. i'm here to level the playing field for all investors. mr. also a market somewhere i promise to help you find it. "mad money" starts now >> hey i'm cramer. welcome to "mad money," welcome to cram america. i'm trying to make you money my job not just to entertain but educate and attach you call me 1-80


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