also the on the earnings picture it is positive for viacom. performers,orst carnival is having a halo effect on the cruise companies. guy: let's turn back to the brexit story and get insight on what is happening. we are joined from our offices in london by tina fordham, citi's chief global political analyst. we will get indicative votes tomorrow at the brexit process. mp's are taking control. what you think the outcome will be? tina: i'm not optimistic that a series of votes will bring any clarity to this brexit process. the prime minister canceled a so-called third meaningful vote after the dup made clear it will not support. the indicative votes are in effort to bring democracy into this process. i have said repeatedly there is no majority for any outcome so i do not see the indicative vote shedding any light or revealing a change in views from mp's. doesn't that depend on how the process is structured? if it is a whittling down of various options until we end up with one. wouldn't that provide clarity? isn't the process important? tina: abs

it will be called the viacom-cbs. the federal trade commission is looking into allegations of the e-commerce site punishing merchants with lower prices elsewhere. of atc stop short formal probe in amazon. says theyrican group will allow the better parts of the business to grow, and help bring down debt. we spoke to the companies chief executive. >> on a vertical integration restructuring and that model is not sustainable going forward. at the operational management should be underlying businesses and we must act as ap are shareholder. -- we must act as a peer shareholder. matt: president trump has delayed some of the new china tariffs he wanted to put on september. farm goods, clothes are on the list, but levies on big ticket items such as smart phones and children toys as well as bibles will not come until the end of the year in order to allow the christmas shopping season to remain under way. let's get to markets with jan-patrick barnert, equities reporter, bloomberg editorial -- with mark cranfield, mliv strategist

viacom down 5%, dragging on the s&p 500 has the potential for a blackout with us and -- with u.s. consumers. general mills is one of the better earnings stories, upgrading giants on its prime pet food sales forecast. guy: it is fed decision day. joining us to give us an idea of -- goodcan expect evening. let's talk about what is going on with the fed. the expectation is the fed will be dovish. my question to you is how dovish? >> the fed does not need to be that dovish. financial conditions in the u.s. have recovered. the data -- some of the data is weak, but over all the u.s. is still in an expansion. i do not think it needs to be -- the fed needs to be that much more dovish. guy: in terms of what the fed will signal, will it signal more hikes or will the job of the fed be to disabuse the idea that cuts are coming? i do not think it will be a good time to say no there will be a hike anytime soon. i think that will just maintain the current policy. they will stay patient until there is more data that can there is quality from the u.s. and dissipation in the global risk. i do not t

cbs has cemented its bid to acquire viacom, the owner of mtv and comedy central. that is according to their purple -- a person with knowledge. cbs is offering a below market value provide comes shares. -- for viacom's shares. swiss recess something is likely to change at stake in 10% or less as it seeks to gain a foothold in the reinsurance industry. this are based company says negotiations are ongoing and remain at an early stage. masayoshi son is reshaping the japanese mobile phone carrier into a technology investor through its fund and sees areas of potential cooperation with swiss re. that is your bloomberg business flash. guy: the u.s. has stepped up its rhetoric with china with its tariffs on high-tech items. china has condemned the move and said it will respond on equal scale. where waiting for a press conference -- we are waiting for press conference. let's bring in kathleen hunter. the political risks are substantial, critically with the midterms approaching. kathleen: we poke into looking to hang on to the house and senate. what they are going to be look

cbs and viacom are keeping investors waiting on murders sure news. that the current recession would value viacom at the current level -- investors may not get the premium they would have liked. the u.s. judge has reinforced in order for american airlines mechanics to end alleged slowdown. the carrier says it has a devastating effect and americans a suit of the union in may, arguing the labor group was doing it to pressure the airlines into a contract agreement. it is time to consider shorting u.s. tech stocks according to socgen which cites increasing regulatory scrutiny. last month u.s. justice department sent its strongest signal yet it is prepared to take on facebook and google. and that's your bloomberg business flash. >> thanks very much. olivia hows in london. minutes away from the open. up next, the stocks to watch, including the maker of the personal laundry detergent, cutting its 2019 guidance as quarterly profits missed estimates. this is bloomberg. ♪ ♪ welcome back. this is the european open. we are just about eight minutes away from t

dani: this very well could have been, viacom issuing a stock split and because of that, they saw the share price fall. it could be that. it could be one of the other shares. either way, some pretty major losses forced a margin call, forced this liquidation. what we are learning in the aftermath is sources tell us banks had a call saying let's not move on this right away, let's try to exit these positions in an orderly fashion because of what we have seen unfold. it looks like someone like goldman sachs did break rank. they have these big locks rates on friday during market hours. anyone who executes these kinds of lock trades, you don't want to do it during the market hours because it can have the effect of actually moving the underlying stock. for all the banks left that need to still get rid of these positions, there had a pretty sizable disadvantage. the market has already moved so that means losses they will face from this will be greater. it really is every bank for themselves at this point. mark: good morning. i guess the key question everyone is wondering is is there more sell

viacom, thelated, payment story, big story. let's face it. this is not a day we are focused on individual movers. the big picture dominates all of this week. the biggest loser down 2.4%. and a host of other assorted companies to the downside. the big picture in europe, we're up .75%. matt: asian stocks putting in a mixed performance with japan down, but china and everything else up. after a late rebound in u.s. equities yesterday, which us all the biggest upward reversal since 2010 and an 800 points trying on the desk point swing on the average. -- point swing on the average. let me ask what you make of the volatility, which from the standpoint of the last year or two, looks incredible. you'llyou're old enough, remember this volatility from the past decade. guest: and if we compare now to do the last decade, the debt crisis, this is far more manageable and more importantly, the markets should wake up to the fact that there are conference calls. the central banks know how to deal with liquidity conditions. we are facing some choppy waters. at

viacom down by 5%. it is a volatile stock. --entially, we have got this the auditors in singapore unable to conclude their audit. aviva holding an update for investors and the stock down by 3.4%. swat bank down by 2.9% -- edbank down by 2.9%. investigations are being held into wrongful behavior at the business in terms of breaking sanctions with russia. u.s. authorities running these investigations. the bank denies this. let's get an update on the bloomberg first word news. >> the u.s. senate has unanimously passed a bill in support of hong kong's protesters. it is warning beijing against violently suppressing the unrest. the legislation would require annual reviews of the city's favorable trade status. china has threatened to retaliate if the bill becomes law. westpac has been accused of breaching money laundering laws more than 23 million times. it is the biggest breach of the laws in australia history. it includes failing to detect payments that may have been used to facilitate child exploitation. the commonwealth bank of a

like viacom. energy mixed. softness on brent could push down some of those big oil companies. what are you seeing in individual movers this monday morning? matt: i'm seeing about 2:1 winners to losers. stocks areup, 185 down. in terms of who's winning or losing, take a look at the winners here. you've got some defensive stocks, british american tobacco is a winner this morning. you've got unilever as a winner. but also caring, some luxury stocks on the winning side. and then some banks. you was earnings season, bank earnings kicked off with j.p. morgan today. we get goldman sachs tomorrow. we get bank of america and, morgan stanley wednesday. lloyds is one of the gainers. ing is a gainer. unicredit, barclays adding to the stoxx 600. there's publicity's at the bottom. a lot of times after an acquisition, companies will fall. investors like this move to buy and focus on its online presence. look at the losers here. nestle one of the big losers, but that's not a defensive stock sold off out of market fears. that is ex dividend. that's the reason that stock is up there at the bott

he's the controlling shareholder of both cbs and viacom. as we reported last week, a former girlfriend has filed a lawsuit challenging his mental competence, saying the 92-year-old can no longer make decisions for himself. julia boorstin has more on what's at stake for the media companies redstone controls. >> reporter: ex-girlfriend alleges he's incompetent. that could open up viacom and cbs to lawsuits for failing to disclose material information. and with viacom shares down 34% in the past year it's under the microscope. >> anytime you're sitting with losses on a stock leek we've seen with viacom over the past year, there's a lot of room for people to be angry, for people to be litigious. >> reporter: herser alleges redstone is unable to speak other than brief grunts and responses and is fixated on having sex and eating steak despite doctors telling him not to. redstone's attorney rejects her claims as riddled with lies. submitting a response to the filing that quotes viacom ceo felline dolmon, calling redstone engaged and attentive. now

cbs and viacom. the rift started friday when redstone shocked his long-time friend, removing delmon, along with fellow board member george abrams, from redstone's trust which controls 80% of cbs and viacom voting shares, kicking them off the board of holding company national amusements. >> the interesting thing to me here is the checkmate move that sumner redstone played. earlier this year he kicks out his girlfriend, tes her off the will, out of the trust. delmon supports him in that. she's arguing mental incapacity. two months later he kicks him out. neutering his ability to apply the mental incapacity issues. >> reporter: but today kelmon and abrams sued to challenge their unexpected removal and they did indeed cite redstone's diminished mental capacity, saying he has a neurological condition that's characterized by dementia, impaired cognition, and slowness of mental processing. redstone responded to the suit by filing a petition asking the court to confirm the validity of his actions. removing d

>> well, you know, viacom trades at about eight times its e.p.s. that's below 12, 13, 14 for other major media companies. part of it is their performance over the past couple of years. but it's also sentiment. the sentiment on the stock is terrible. so i think that what you've seen over the past month or so, what you're going to continue to see, is sentiment improving on the stock. >> what do you think h? >> i think the next event is probably the -- this new board trying to oust felipe delmon as ceo of the company. it would appear that they have been talking to other new potential ceos. maybe they're farther along than we had expected. >> the story when it came out today was that those directors were out, including delmon, and they were going to delaware court to have that declared legal. you think maybe there's a second chapter to that? >> well, you know, the provision in the delaware court that is different from other courts, it allows the individuals here to seek validation from the court. so both the national amusements side and the viacom boar

as the barbs continue to sly it's clear the battle for viacom is far from over. for "nightly business report," m julia boorstin in los angeles. >> the owner of pittsburgh king and tim hortons reported an unexpected fall in revenue. restaurant brands international says unfavorable exchange rates along with slowing sales at existing locations weighed on its quarterly results, but those lower sales were offset by cost cuts, and that helped send shares of the parent company restaurant brands higher on the session, but it's been a tough second quarter for other restaurants and fast food chains as well. consumers have been going out to eat less in part because of cheaper grocery prices, and as susan lee reports, some say this is the new normal for that sector. >> reporter: whether it's burgers, burritos or friday chicken, americans are not eating out like they used to. lower prices at the pump, aggressive value deals and even new menu items are not enough to get more people into restaurants. this is what's being called the new normal in the meals business. the npd grou

trading in viacom today --rently halted, in just currently halted and is down 47% in just today's session -- trading in wirecard currently halted and is down 47% in just today's session. ♪ matt: welcome back to "bloomberg markets." this is the european open. we are 12 minutes into the trading session looking at losses of about 1% across the continental indexes, almost .9% in london. top corporate's stories from the bloomberg terminal. wirecard says it is missing 1.9 billion euros. probably does not exist. the payments firm is withdrawing its result for fiscal 2019 and the first quarter of 2020. the company says it is in constructive discussions with lenders about renegotiating terms of its debt. the scandal has already seen wirecard shares collapse and its chief executive depart after running it for almost two decades. lufthansa's ceo says it's bailout deal may not pass. the carrier's biggest shareholder is threatening to block the plan, which would dilute its holdings. it adds to doubt over the 5 million euro plan to rescue the airline in the first place. the sides are holding emergenc

we love companies like viacom, and madison square garden network. those stocks are still really cheap. financial service companies, some that you know well, like lazard or kkr. there are some sectors that seem to be totally neglected, even as the markets recovered. david: let's talk about the economy. the united states economy was in a recession that ended june of 2009. and so now, for about 10 years, we have been in a growth cycle. it is one of the longest in the our country's history. therefore, there have not been a lot of depressed stock prices for this period of time. so are you kind of hoping that at some point there is a recession, so we can get lower stock prices? you can buy more things at lower value prices? john: we like to buy bargains. we like seeing sectors that are cheap, but we don't want to see a recession. you know all of the turmoil that happens, the impact on our society and our citizens, you know recession is not great for america. david: so let's suppose i say i watched you, and you are a good value investor. i will give you so

viacom and cbs used to be part of one company until viacom's assets were spun off about a decade ago. viacom and cbs' shares rose in trading today. julia boorstin has more. >> reporte today there are proposals that the companies cbs and vieac re-merge to respond more aggressively to the changing enter landscape. whetr this dea happens is really up to cbs' les m. cbs would likely draw a big premium in the proposed all-stock tra to make that deal happen. analysts have raised concerns about viacom's cable network, struggling ratings and higher than average costs weighing on cbs' growth. but there would be cost savings, and greater scale could give cbs more power in negotiations for distributi and more content for its digital apps. for "nightly busine" i'm julia boorstin. >>> snacks and water help pepsi's earnings pop. the food and bench giant beat estimates thank to strength in north amera for its frito-lay noncarbonated drinks. that helped offset a continued decline in soda. revenue surged in key overseas markets. s take a look shares. they rose a fraction at 107.76. and sticking with s

viacom faces more competition. mtv and comedy central target questioning whether it's worth paying for the cable tv bundle. viewers have an explosion of digital options. viacom's restructuring comes as time warner launches a stand alone streaming app, hbo now. the company's first move outside the pay tv bundle. plus there's an infinite amount of niche content on youtube and not to mention original new shows on netflix, amazon and hulu. >> it's dictating even more of a focus on programming given the dollars on the screen. so you have to really gut the costs that are not essential you're not seeing on the screen. >> reporter: last fall doman increased the amount of revenue to other platforms not mentioned by nielson from 30% to 50%. now the company said they'll put savings from its restructuring into data analysis and tech development so it can compete better in this new digital content world. for "nightly business report," i'm julia boorstin in los angeles. >>> informatica in the biggest buyout of the year. we begin

. >> the investigation into les moonves comes as theny is in the midst with legal battle with viacom control shareholder and national amusements. after she advocated for mbination of the two companies, cbs led by moonves sued for a dividend to dramatically lower the stake to prevent merger. no right for national voting control. investigatiews o into moonves, which could threaten his leadership, viacom ares moved higher and cbs shares moved lower on the perception that cbs's boa investigation could threaten moonves's leadership of cbs making it morey l that a c merger betweenbs and viacom happened. moonves lauded for his leadership of cbs since it split fromiam back on january 1st, 2006. in that 12 1/2 years moonves bucked expectations cbs would be the slower growingf the companies, diversifying from advertising and growing feeds from cable providers and digital revenues. cbs shares have surged since in contrast viacom shares are in the red ovet t same period as networks struggled with eclining ratings and ad revenue. the studio suffered a number of years without massive breakout hits

w leader.ay that viacom's >> there's renewed speculation that the ceo would be a good fit d cvs and viacom could be recombinant expected to walk away with a $72 million severance package on top of the $491 million doman has brought home running viacom. >> some big nu the cost of the company. was shakedown to get payments for these people leaving after disasterous performance. >> former ceo tom preston saying to lon and will now make it much easier to draw top employees to the co >>> a market monitor tonight likes dividend paying stocks of the sort we were just discussing. shareholder first. last time he was on about two years aerks he recommen up 5% a shell, which with oil prices down, is 37% lower. he's at perks manager for franklin templeton fund u. why don't we begin with that stock, royal d shell which is down so much, but is still o. why are you doubling down on it? >> yeah, i tven at lower prices and certainly, a lot of that was r tha date, you mentioned september 2014. what we like about shell is that they have a opportuniti internally to reduce costs, to reduce capital investment,

that earnings beat gave a big boost to viacom's shares: up $1.08 or 3%. dendreon, one of the day's best gainers. the drug maker rose on word a medicare review of the company's provenge prostrate cancer treatment shows the drug can moderately improve outcomes. that could bode well for provenge becoming a medicare approved treatment. a course of the treatment costs $93,000. dendreon shares rising $1.39 or 4%. and finally, two surprises from disney late this afternoon. investors were expecting disney's latest earnings report after the bell, but the release actually came in the final half hour of the trading day. disney is trying to figure out what happened. the other surprise-- disney's numbers were lower than what analysts were forecasting. the entertainment giant earned 45 cents a share in its fiscal fourth quarter, a penny below estimates. revenues came in $200 lower than revenues came in $200 million lower than expected. disney clearly hurting with consumers watching their spending. shares were down slightly in after hours. during the regular trading, di

and mtv, allowing viacom to report better than expected profits. one of those cable companies, time warner cable saw its expenses go up in the fourth quarter. while it lost 129,000 cable t.v. subscribers, something the company called "disappointing."t still, earnings were stronger than anticipated thanks to broadband internet customers. porter bibb is the managing parter at media-tech capital partners. porter a lot going on in this industry. what do these two companies tell you about what is happening first of all with media content like the vie comes of the world? >> well, viacom really has a lock on content, and the big loss that you referred to that they suffered in the fourth quarter was a breakdown in nickelodeon versus the disney channel. they also don't have jersey shore any more but today they announced that they are setting up cc studios, a production unit to create new content like catfish, the on-line dataing show that they hope will be another jersey shore. content remains the king and as time warner found out they report time warner ca

viacom sued the cable company, accusing it of streaming viacom television channels on mobile devices such as apple's ipad running a cablevision application. both viacom and cablevision were down more than 1.5%. finally, watch radio shack tomorrow. it gets kicked out of the s&p 500. and that's tonight's "market focus." >> tom: while the federal reserve is trying to kick start the american economy, chinese financial authorities hope to cool theirs down. china isiest ling with an inflation problem. nationwide home property prices were up more than 4% in april, and its economy grew by almost 10% in the first quarter. a lot is riding on the chinese economy. it's the third biggest destination for american-made goods and services and europe's biggest trading partner. jing ulrich is the chairman of global markets for china with j.p. morgan. she joins us tonight from new york. jing, is the chinese economy with the higher inflation and these high property prices on an unstable path? >> i don't think it is on an unstable path. how much, we do have some imambulances in the economy. for example,

cbs and viacom split from each other about a decade ago. shares of viacom rose 3% to 36.56. cbs climbed 4% to 54.15. >>> it's the end of an era as blackberry wil making its the own devices, outsourcing producti to annin do neegs partner and focus on software developmen e annout was made along with its second quarter earnings which saw a net loss of nearly $400 million. but the street like the strategy, sending shares up nearly 6% to $8.33. >>> the propane retailer, ferrell s posted four-year results that missed analysts' expectat saying sales were hurt by warmer weather that cut demand for propane. the company said its ceo was stepping down to be replaced by the founder, james ferrell. ferrell gas fell 21% to $13 even. >>> the payroll paycheck said its quarterly earnings rose 4%, and revenue was up 9%. that sounds good, but the company trimm its full-year earnings forecast, citing tax items as a result paychecks fell more than 4.5% to close at > will robotses steal our jobs one day, we all think about it. and as companies invest more in technology we all worry about it. but

viacom claims it's owed money for youtube videos of viacom- owned material that aired on youtube between 2005 and 2008. an appeals court today reversed a lower court's decision to throw out viacom's claims. the lower court had ruled youtube was protected by the safe harbor act, which says if youtube takes down a video when they hear about it, they're off the hook. >> susie: it looks like facebook will "friend" the nasdaq instead of the big board. that's the word from insiders tonight. it marks another win for the nasdaq, known as the address for tech savvy companies. the big u.s. exchanges have been competing for listings because they make big bucks by charging companies and information- seeking investors with fees. facebook's offering is expected to be worth as much as $100 billion when it goes public in may. making it the biggest ipo ever. so tom, you can imagine allots of disappointment here at the nyse about losing facebook. but big win for the nasdaq. >> tom: way, pitch battle. there is a lot of financial consequences, but also just bragging rights when it comes to new york and the

. >>> viacom and sumner redstone are reportedly back in settlement talks. according to the "wall street journal, their litigation, change the board, and lead to the exit of current viacom ceo, phillippe domon. as part of the compromise, viacom's operating officer, tom dooley, would be promoted to ceo. one roadblock is the potential sale of paramount, which redstone and his daughter, shari, believe is core to viacom's future. a deal would end one of the most bitter boardroom legal battles in history. >>> target slashes its full-year outlook and that's where we begin tonight's market focus. citing a difficult retail environment, the retailer said both profit and revenue declined in the latest quarter. earnings did, however, manage to top expectations, while sales were roughly in line. the company lowered its earnings guidance and said same-store sales are expected to continue to decline for the rest of 2016. shares finished the day down 6% at $70.63. >>> lowe's also cut its guidance for the year, after hosting disappointing quarterlies. sales rise, but ent co