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tv   Wall Street Week  FOX Business  November 24, 2017 2:00pm-2:30pm EST

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business. and, of course, every night don't forget to watch my show making money, because that's what i want to do. every night 6:00 p.m. eastern time. now wall street week begins. we'll see you. >> from fox business headquarters in new york city, the new wall street week. >> welcome to wall street week. the program that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. i hope you had a great thanksgiving, a very happy thanksgiving. we have a big show for you today. coming up in just a few moments, martha stuart my special guest. we will talk with her about business today. plus, the ceo of hearst steve schwartz is coming up as well later on in the program. but first, connell mcshane standing by with some of the big headlines impacting everything from wall street to main street this week. >> hey, there, maria, it has been a short but busy newsweek. the department of justice is suing to block at&t from acquiring time warner. that's one of the big stories
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we've been following alleging that the $85 billion acquisition would substantially lesson competition and also result in higher prices for consumers. in some other media merger news out there, the coke brothers are acquiring time, inc., two titans that have been struggling. to inject some $500 million of equity into meredith if the deal ends up going through. ride sharing company uber announcing that hackers stole the personal data of 57 million people of both drivers and customers. they were able to obtain e-mails and addresses but not credit card info or social security numbers. now, uber kept the data breach a secret for more than a year and paid $100,000 ransom to the hackers to delete the data and keep that breach quiet. taking a look now at the markets for you. the dow, s&p 500, and nasdaq all hitting records this week. shares of the retailer amazon
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hitting all-time high. all major markets closing in the green this week. maria, back over to you. >> the media has seen drastic changes over the last year. martha stuart has successfully navigated from print to broadcast to online. her empire is wide and deep. the founder of martha stuart living omnimedia joins me right now. martha stuart, great to see you. >> great to see you. >> give me a sense of the structure of the company. you're the chief creative officer, member of the board of the consequential brand. >> consequential is a licensing company. and we are -- we own a lot of different lifestyle brands and other kinds of brands. so we have brands that sell to walmart. we have brands that sell to the mass market. we have brands that sell to upscale. so we have very good brands and martha is one of the biggest brands, and we just
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continue to develop our products. it's the distinguishing feature of our kind of branding company versus, say, an iconic. we design in house. >> we were talking all week the at&t deal with time warner, you have meredith possibly doing a deal with the magazine. >> well, our precious magazine martha stuart living and wedding to meredith. and meredith is a very aggressive sell of very fine lifestyle magazines. they have better homes and gardens, they have martha stuart living, they have a lot of other kinds of magazines that really do -- they reach 100 million people. >> they really resonate. >> yeah. so meredith wanting
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to buy time, inc., magazines is a very -- that's a very smart move. now they've gotten a huge infusion of cash from the coke brothers who probably want to get into media also in a way. they manufacture products that touch everybody's lives in america, the coke brothers. and that's a privately identify owned company. you know them very well. >> absolutely. >> and i think it's one of the biggest privately-owned companies in the united states. >> and it will be the first into media. supposed to be the next couple of days. so it's really interesting. >> it's very exciting, and i can see exactly why they're doing it. coke brothers makes all the liners for every pampers sold and those are the women who buy the lifestyle magazine, of course. they're the homemakers, the housewives, the mothers. so why not reach them in another way via media?
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>> yeah. so how have you changed the brand as everything has shifted? you have amazon eating people's lunch on so many levels, truly. >> well, we're going to do a big job with amazon. i've known amazon ever since they started at perkins, and i really admire what jeff bezos has done with his tenacity and brilliance. >> and he's a media mogul. he owns the washington post. >> he bought the biggest house in washington recently. he wants to really be in every single aspect of our lives. and he's doing it brilliant. >> so your deal will include -- i mean, delivering? >> just selling. we already sell our meals through amazon. but we're working on -- i'm doing pets and garden through amazon. not only amazon. it's just another vertical, another way to sell beautiful
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products. i mean, everybody is selling on amazon and to say, oh, i'll never put my products on amazon is crazy. maria: why would you do that? >> because they're selling. maria: exactly. and i don't know black friday is as important as it once was. when you have venues that you can buy anything any time. >> well, it's only about the price. black friday pricing. it's the pricing. it's the sales price that people are going after. and it's an excitement. it's really trying to get people out shop. they're not going to buy just the things that are on sale. they're going to buy other things too. that's what the merchants need. we need to get people into stores again. stores are really suffering because of online sales. but i think it's 59% of americans want to shop online. maria: yeah. >> either by their phone or sitting at their desk at home. maria: so what does it look like today to you in terms of the outlook out there? the consumer shopping. and we debate how strong the economy really is. things are getting better. >> well, the stock market's at a new high. i don't know thanks to who. but i think business is doing
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well. and i think that -- i think that we are recapturing some of the manufacturing that we lost. i think we're doing a rather good job in the united states of making great product again. and putting it in the customer's hands in various ways. i mean, you do have the qvc. you do have the amazons. you do have walmart and jet. all of these companies are doing a variety of ways to get product into the customers' hands. maria: but look what happened to the mall business. look what happened to the brick and mortar right now. >> well, overexpansion in certain areas and not paying enough attention to an amazon, for example. that was crazy. some stores didn't pay any attention to amazon. maria: yeah. >> i remember talking to a spanish retailer, the biggest retailer in spain. they said, oh, we're not afraid of amazon. maria: oh, really? look what happened to grocery stores when they announced the whole food deal. >> yeah. and already whole foods has turned around. that's what i read, anyway. i'm not sure. but i read that whole foods is
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maria: i'm reading an article here. martha stuart and snoop dogg, tv's oddest couple. it seems like an odd couple. >> we are an odd couple. maria: but it seems like you have commonalities. >> well, we were on the justin bieber roast, and we sat next to each other, and he had been on my show a couple of times. he's fun to hang with, as they say. and remember, i'm not a rapper. i'm not black. i am, you know, i'm sort of
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like a teacher. and snoop loves to learn. so we get to talking and some brilliant agent or somebody brilliant at vh1 decided that they were going to approach us about doing a cooking show. they wanted a contest. snoop and i really decided we wanted to do a dinner party where we would invite all kinds of people, and we have great guests. this year, oh, my god. from jamie foxx to puff daddy to i'm trying to get eminem, and i want beyoncé, of course. maria: she's now the highest-paid singer. >> her album just got number one. this week. so exciting. maria: so it's a cooking show. but it's celebrity talk show. >> it's cooking, it's talking, it's very comedianic because snoop has a great sense of comedy and i'm developing it. and we have a lot of fun. it's really fun.
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maria: are you attracting a younger audience? is that what this is about? >> oh, yes. but not only are we attracting the young, the usual vh1, vh1 is now experiencing a whole new shift in demographic because my fans are watching, and it's bringing in a whole new audience, so we're -- it's -- i call it a culture medaling. maria: when you see things like netflix, hulu, all of the streaming going on, does it give you, you know, a lightbulb in saying. okay. this is how i need to shift my business because that's the whole thing. i mean, you see amazon paying all of this money for original content. content is king, and you've got it. you're creating it. >> yes. well, we have a huge library of content that is being -- we can divvy it up. we can cut and splice and paste, and we have a lot of valuable content that i think is being used well now. and it will be used even better in the future. i think content -- edited
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content is the way of the future. there's been too much, oh, everybody can do everything, and we have to find out the best ways to do things. maria: right? >> and that's what's happening now. finally, the internet, that vast, vast internet offering billions of pieces of information has to be cure rated and edited, and i think we're working on that. maria: let me ask you if you're expecting a big change from tax reform. we're talking about all of these new policies coming out of the white house. do you see a new tax package impacting the business in a positive way? >> well, you know, i keep thinking, you know, thinking about tax reform. what i've heard -- and i'm not an expert at all. i am not in the accounting business, and i'm pretty terrible about that. no, but i'm thinking i'm probably going to benefit from it. maria: right? >> but is my neighbor going to benefit from it? is somebody i know, my housekeeper who makes so much less than i make, is she going to benefit from it? i don't think it's equitable.
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rushing, rushing, rushing through a new way to cut taxes for the wealthy -- as they say, it will probably help me. but i'm not thinking about just me. maria: well, i'm talking about small business, really. 25% pass rate and a 20% corporate rate. that has got to be a positive. >> well, i don't know for about small business. you read so many different things. no one has come out with a very clear synopsis of what this tax reform bill is really about. you should do that. you should make it. maria: i'm doing it. every day, that's what i'm doing. i'm definitely doing it. thank you so much for that. martha, great to have you on the show today. >> thank you. maria: thank you so much. martha stuart. stay right there. more wall street week after this. >> coming up from at&t and time warner and the coke brothers in time, inc. hearst ceo steve schwartz talks about that and more when wall street week returns. liberty mutual stood with me
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maria: welcome back. no sector has seen more change recently than the media industry. i spoke with the ceo of hearst, steve schwartz about his company taking on the challenges of the changing media landscape and what is ahead. >> it's affecting all sectors. our biggest sector of media is actually television. but, look, there is more great media than consumers have time to consume, and there are more places to put advertising than there really is advertising. so it has put more pressure on all the consumer media businesses. no question. maria: when you see somebody like a disney saying, look, we're not going to be selling our shows, giving content away anymore. we're going to do our own streaming service. is that where this is going? i mean, you've got very important stations across the
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country. what do you do when people's choices or thoughts are changing in terms of how they want that delivered? >> well, disney is our great partner. we own 20% of espn. we jointly own the history channels. and i think what bob iger is doing with this new streaming initiative is absolutely the right thing to do. maria: will you be doing something like that? >> well, you know, espn, of course, will certainly be doing. and, yes, i think everybody is looking at how can they have a deeper relationship with the consumer? and, of course, a deeper digital relationship with the consumer's very important. maria: yeah, that's a good point. it's that customer that you have, you just have to figure out how you can go deeper with me. let me ask you about espn. look, we know that ratings are down, obviously. this has been an issue for disney. what's been the impact on hearst? >> well, first of all, i think espn is still the best brand in media. and the sector has gotten
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harder but you're talking about a very unique asset. no question. both the advertising landscape and the subscription landscape has gotten harder for all tv brands. maria: absolutely. >> but if there's a brand you're going to bet on, i would say it's espn. maria: do you think the ratings have been impacted by this whole kneeling controversy? or is this something else? >> i just think it's the general that technology allows for so many more options, so i think all shows, whether they're entertainment or sports or what have you, are, you know, more competitive environment for audience. maria: let me ask you about what's going on in your business in terms of consolidation. we see the reports in disney, talking to fox acquiring discovery, networks doubling down on content. is content king to the extent that you want to even add more of it? how will your business change, given all the deal flow going on around you? >> i think you have to look at consolidation on a case by
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case basis. we recently announced that we are acquiring the fabulous magazine brands. men's wealth, women's health prevention. we have been selectively buying newspapers adjacent to areas where we already own newspapers. we bought a couple television stations over the past years. we just look at it on a case by case basis. maria: okay. so do you think that the deal flow picks up? as we speak, at&t is trying to finish its deal with time warner. we don't know where that stands yet, and we've got all of the players trying to figure out how am i going to scale up in terms of growth? >> i think it will -- i don't think there will be a huge wave, but i think, clearly, classic business case is in a more difficult market. you often see consolidation for the very -- at least to take some -- get some costing
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efficiencies in the business. >> how will the at&t time warner deal impact your business, for example? >> well, it remains to be seen. at&t, obviously, a very powerful company adding these very powerful brands. i think it will all depend on what they agree with the government in terms of how they are going to operate going forward. maria: do you think they should sell either cnn or directv? >> i'm not involved enough to know what the regulators would do. i do think in general in this country, we have many fabulous companies that in their sector go beyond media or even beyond telecom. in their sector have become very powerful, and it is something that regulators and policy makers have to look at on a regular basis because when companies become too big and powerful, it can choke off new business development and job creation and what have you. maria: so you recently added to some of your print portfolio, whether it's the
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men's health and those magazines or newspapers. do you think we're going to physically be looking at a newspaper to get our news in ten years? >> ten years is a long time. hard to say. >> five years. >> absolutely. >> yes? >> absolutely five years, and i hope longer. i still prefer print if i can get it. our newspaper group is looking like they will deliver their sixth straight year of profit growth. so i am still bullish on newspapers and magazines. but, look, clearly, it's a tougher environment and digital is on the rise and print is clearly not rising. maria: let me ask you about the policy in washington. does it impact your business? >> i think that for business in general, the corporate tax cut is very important, and i give credit to the business roundtable jamie diamond and josh bolton got in the business community together to say that this is our highest
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priority. corporate tax cut, the ability to repatriate earnings overseas and going to a territorial system is very, very important. and i think there's actually bipartisan support for that. it gets more complicated when you get onto the individual side. and, clearly, more work to be done there. we're a new york company. the talk about eliminating the state and local tax deduction is very painful for new york, and we're hopeful that something can be done there. maria: my thanks to steve schwartz joining us there. don't go anywhere. more wall street week right after this
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maria: all right. let's take a look at some of the big market events coming up in the week ahead that will impact your money, and it is a big week for economic data. earlier in the week, we will get updates on market movers like new and pending home sales, consumer confidence typically moves markets. the case schiller index, the gdp is out.
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remember, we had two straight quarters of 3% gdp growth. we'll see what the gdp number shows this week as well as the beige book. later on in the week, we will get the latest on personal income. the chicago's personal manager's index. auto sales and spending on construction on friday. a huge day for the manufacturing sector as the ism and index embassies both report their findings, and they typically will give us a good window into what's going on. a light week for quarterly earnings, but we do hear from brand names like american eagle, lazy boy, tiffany, kroger, big lots, and tv bank, along with barnes & noble also reporting. on the political front next week, the senate is expected to debate and possibly vote on their version of the gop tax reform bill. and since we've been talking about media, we could see a deal between meredith and team as soon as monday next week. coming up next next week right here on wall street week, i hope you'll join me. ubs is my next guest. former president of germany bank, he will be here with me. and i'll see you on sunday morning on the fox news
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channel this weekend. sunday morning futures. join us for a special program as we sort out the tax plan. that is coming up at 10:00 a.m. eastern over at fox news. that will do it for us right here on wall street week. thanks for being with me. i'll see you again next time for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate crisis. but it wasn't just vegas that was hit hard. lives were destroyed from coast to coast as the economy tanked. now it's a different story. the american dream is back. and nowhere is that more clear than the grand canyon state of arizona. so we headed from the strip to the desert to show you how to explore the new landscape and live the american dream. i'm gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live, and take you behind the gates of properties you have to see to believe. at the end of the show, i'


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