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 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

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

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

let's show you viacom and discovery. they had been halted for a volatility very briefly and there was some volatility, ladies and gentlemen you can see right down there down 31% today alone for viacom and 31% for discovery. viacom is 45 a share right now those stocks back open again after being closed for volatility the oil market closing for the day. let's go back do dom chu at the cnbc commodity desk. is there anything you don't do >> trying to wear hats today but going from talking about the big move in media stocks to oil and gas stocks right now, how long could the disruptions in the middle east last traders trying to grapple with that right now and seeing the prices bid up, u.s. bench mark prices and it's been what's kind of driving the volatility in oil markets with the key canal blocked with the massive cargo ship with tankers stuck waiting. that along with fears over how lockdowns and restrictions in europe to translate have had oil on a ride this week. also earlier this afternoon oil services firm brent crude s

that but let's begin with david katz who's been an owner of viacom. we focus there for now you had been selling it before all of this kerfuffle broke out. why were you selling it? >> so we had been an owner of viacom and love the business and think they have a very good product in terms of streaming and thought the business worth from 70 to 90. as it ran up this year we were scaling back the position and completed the sale probably two weeks ago in the mid-90s. again we sold it and said we don't understand why the stock is up at this price. it's a very good business but if it ever came back we'd look at it again when the stock fell in and a half we initiated the positions and if you have a 6 to 9-month time horizon they have a very good management team the secondary at 85 made sense we think it will be back when the dust settles so if you have that time horizon we would take advantage of this panic selloff. >> i'll turn to dan in a moment but, david, you have no trouble with the business. this selloff in this stock so far as you can tell is traceable

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

viacom is up nearly 17%. this after news last week that cbs and warner media are exploring a sale of their stake in the cw, that's coowned by those two companies. source tell me meaia companies are looking to sell the assets that don't support their streaming initiatives. and the left jersey pieces and any independent players such as amc, they could be acquired by tech giants or bundle together now, in addition to the cw and amc networks, there's starzz, exploring its optioning, though it was prettied day that they will not just the starzz division also a & e coowned disney and hearst tech giants such as amazon and apple, or platforms like roku. this morning saying of all these companies it's the most digestible scaled content there. there's so much speculation what could happen in this case. >>> deutsche bank research analyst brian kraft, it's great to have you with us. talk through the cadence how do you think it's likely to play out this year >> sure. hi, kelly. we we think the company has a number of thin

sher shari redstone is the ceo of viacom and redstone. it shows so many mergers in the past two, three, four years now, and cbs and viacom are two companies, each less than $20 billion market cap, that need to get bigger to compete with the netflix and amazons and the other legacy companies that have already gotten bigger. this is a step forward, and it probably won't be the last acquisition from this company that is going to be called viac viacomcbs, all one word. >> let's get back to our guests and talk more with david and noah noah,if you had a sector that you would lean toward in the current market, what would it be >> look, i think that there are numerous secular growth trends that are continuing, whether it's in health care, and you're looking at combination therapy, whether that's in cancer treatment or new medical devices. whether it's 5g is finally coming and it's going to have profound impact, especially on industrial applications. or you're looking at the continued digital transformation of enterprises these are secular themes,

viacom ceo was removed from the trust that will control both ceo both cbccbcs and viacom. julia is covering this hollywood soap opera for us. >> viacom ceo was sumner redstone's right hand for three decades. he was his health care proxy. but today doman sued to challenge his and fellow board member george abrams removal from redstone's trust which controlled 80% of cbs and viacom voegt shares. also the removal as directors of feeder and holding company national amusements. he is challenging redstone's meantal capacity saying in the suit that redstone is afflicted with a neurological disorder that can be characterized by dementia, impaired cognition, a slowness of meantal processing, a loss of memory, apathy and depression. redstone in the last hour filing a petition asking the court to confirm the validity of his actions for moving doman and abrams as trustees. redstone's attorney saying it is telling that doman is raising the question of mental capacity for the first time since he's been removed when just months ago in court documents he pronounced mr. redstone engaged, a

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

has been a strong performer for viacom which our next guest can tell us about. philippe dauman the ceo of viacom joining us live from the ubs media conference with david faber. hi, david. >> hey, tyler. thanks for that. appreciate it. as you said, philippe dauman joins us now. they were talking about pair a mount but it's the cable networks that power viacom. i would love to start there if i can. you were talking in your presentation which i was able to attend a lot about apps. one doesn't necessarily associate apps with a company like viacom but these seems to be proliferating. what is the strategy with introducing various apps for your various networks? >> well david, we want to reach our consumers wherever they are. we want to be a part of their life, be as immersive as possible. nickelodeon launched an app very successfully and quickly got over 5 million downloads of the app and allows us to do is to have our viewers view the content, view the video content, even more content if it's part of an authenticated experience with the cable distributor, and also ha

written consents to viacom that amended viacom's corporate bylaws effective immediately, that was june 6th when we first reported it. there has been no challenge, a lot of challenges on various things but none to this as of yet from vie extra com's board of directors which stands in opposition to the controlling shareholder for whom they serve. >> a company will ultimately have underlying value but you wonder as a shareholder why would you bother when you have this situation so problematic. who is running the company? is he really clear in the mind? i'm not sure. i'm not convinced. >> no and obviously mr. dauman to your point and mr. abrams in their submission to a massachusetts court even spoke about dr. spar, saying it's materially contradicted by the stipulations made by defense counsel in a separate action in which they said he was a victim of impairment, mr. redstone and dementia was susceptible to undue influence. >> what if it is your baby? nobody lives forever. it must live beyond. >> the only word that comes to mind in this whole thing for me is internecy. you'll stab me, davi

viacom shareholders. the stock's gone from $88 to $48 in just two years. james dix, media analyst at wedbush security joining us onset. james, finish this sentence. the single biggest problem with viacom right now is, what? >> the ratings and the brands of the core media networks. >> because if you look at their lineup, is there any channel that you believe is a must-have on a so-called skinny bundle? if people cut the cord and go to a la carte, is there anything you would say that's a must-have? >> if you have kids, nickelodeon might be on that list. >> is that going to save viacom? >> they need more than nickelodeon. >> what should -- and i totally agree with you. i don't think there's anything in that group. i think you nailed it there. other than nickelodeon, if you have kids, and there are alternatives to that suite of offerings. how about paramount, what should they do? >> it wouldn't shock me if they at some point in the near future went ahead with some type of strategic, you know, venture, sold a

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 says it's an impasse. directv says it has accepted the material terms of the 17 channels pulled from air. in the meantime, both companies are suffering. in the week of the blackout, viacom's ratings plummeted. while disney channel made some gains. meanwhile, directv admits it's had quote some subscriber losses. this comes as the two companies lob public attacks at each other. viacom saying to direct providers while directv urges customers to be patient. directv insists that the sticking point is the insistence of viacom for epix channel. so tyler, we are sure to hear more he said/she said until they come to a deal but i have to tell you everyone's asking me when the kids can watch nikolodeon again. >> exactly. >>> cable stocks in play today as bc partners and the canadian pension plan investment board say they're buying sudden link of $2.5 billion. here's how the cable operators that do trade are faring right now. time warner cable up at 39, up 30 crepts. chartered -- i don't think that's right. i think th

youtube also claims that viacom hired no fewer than 18 marketing agencies to upload viacom content to youtube and that there was no way for youtube to know which clips were authorized to be there, that viacom had created fake user accounts to hide who was really uploading the content and that viacom itself didn't know which clips it had authorized and which it hadn't, even having youtube restore clip that is viacom posted but demanded be taken down later. viacom has a decidedly different take. in an e-mail between youtube founders wrote that youtube was, quote, aiming high. that in terms of the number of users and popularity, he wanted youtube to rank among napster, kazaa and others. other e-mails between top execs at youtube are about copyrighted material. and from south park could be unauthorized. a way to avoid the copy wrigrig might be to remove the "no copyrighted -- another e-mail shows youtube aware of copyrighted material that needed to be taken down but the founders question say leave these in a bit longer? there's plenty more. i'll be putting all this material on the blog. t

and cbs are higher following a new twist in the viacom saga. let's bring in david faber. >> this is a real twist. later today, perhaps, as soon as later today we may see national amusements, controlling shareholder of both cbs and viacom present a letter publicly and to both companies, requesting they engage in talks designed to bring them back together. they were separated not that many years ago by sumner redsto redstone. that letter, drafts of which have been seen already, it appears according to sources, is expected again to be delivered. if not later today, perhaps tomorrow or the next day and then it will set off potentially a series of negotiations between the with companies designed to see whether in fact they can actually craft a deal underwhich not just their majority or controlling shareholder national amusements but all of the shareholders would benefit. that would be a key here. special committees of viacom's board, already being set up and going out and finding advisers, and cbs, which has yet to actually set up a special committe

viacom their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. >>> here is viacom up 12% but if you take it further down 66% over five years as they struggle to deal with streaming giants like netflix julia. >> melissa, thanks so much i am joined now by bob bakish, ceo of viacom. before we get into what is going on at ces, i have to get into cbs. will the two companies merge >> the more things change, and we are certainly seeing a lot of change here, the more they stay the same what i mean by that is the narrative that something is going to happen. the third time through the narrative. who knows. we are focused on continuing to run our company and execute. we just closed a quarter which we can't talk about. you look at the fourth fiscal quarter of 18. we returned the company to earnings growth. you look at revenue growth 19, we will continue it on a full earnings basis. revenue growth that is all about executing against the assets we already have >

viacom is facing unique issues, both secular and cyclical. i think the company is much more vulnerable than other large media companies in this rapidly shifting landscape. >> why? >> because younger consumer are, you know, basically driving the shifts in the media landscape in terms of the consumption of video. i think viacom has not been responsive as it might have been. and now it is trying to play catch up where as some other companies, actually, i think, you know, got out in front and just kind of tried to take the digital initiative, which viacom just started to do. >> so you're basically saying that it is -- the channels that it has, that cater to children, like nickelodeon, have suffered but disney has been able to hold on to them. >> yes. >> disney has a different business. >> that's right. the portfolio, asset mix of the two companies are radically different. i also have to say that disney has been cut up in this -- what i might call the overall recalibration of expectations across the industry. obviously subscriber issues have becom

up on a hill and chasing down the leaders of directv and viacom. earlier this morning, we heard from someone who said he won't negotiate in public. they had no problems seven years ago but at midnight 17 channels reaching 20 million viewers went dark on directv and that is because they could not strike a renewed deal here. now, we're going to be speaking to directv ceo mike white here shortly at the conference and bring it to you shortly but the big question is, what does it mean to directv's bottom line? the deal proposing is an adding 30% or a billion dollars in extra costs to directv. but is it worth it to pay that much to get the relative earnings? taking a look at the analysts saying, they said viacom is better leveraged. eight channels in the top ten and not worried about the short-term impact. that's not what evercore thinks. they think this could take up to a year to resolve and if it's not reconciled in that time v viacom could see a $300 million hit to 2013 earnings and saying that viacom represents roughly 20% of dtv's viewership and not

viacom creatable >> i think, you know, the problem with viacom. viacom trades half the valuation. other companies twice that but the real issue i had last night is the ceo mentioned the rebirth, you're laughing because it is ridiculous mtv. >> he wants to revive the flagship mtv brand >> it hasn't been relevant long time ago. don't make the face, brian you know what i'm talking about. >> when i was in high school, you were 40? >> ish >> our former producer here, al, is now the newer producer of mtv. >> al. so, al, if you're out there watching, good luck, man >> and viacom, everything hinges upon al. >> this is our -- >> the point being, the point being, if mtv is the hope and salvation of viacom, maybe that salvation ain't coming >> i think you summarized it pretty well. >> isn't coming. it's albert. >> brian >> all right, still no verdict in the martin shkreli trial. the jury has been deliberating for five days. some weird things have been happening. meg is following it all in brooklyn you have been very patient >> thank you, brian. well, talk about weird talk about a coincidence

they are down a half percent. $25.46 down 14 cents on viacom. today there's a way to save more for retirement, with annuities from fidelity. turn your savings into income -- guaranteed, and get a retirement "paycheck" for life -- guaranteed. call... to get started, and learn how to secure retirement income that won't go down -- guaranteed. call fidelity at... for details about guaranteed income for life, and change the way you think about your retirement savings. the bill too reign in pay incentives to lead executives to take excessive risks. barney frank on street signs on r at 2:00 p.m. eastern. >> viacom's earnings reveal how much it is suffering for example the economic downturn, but what's driving down the results? julia joins us live with details on what they are struggling with. julia? >> hi, sue. lower video game sales and weaker advertising took their toll on viacom. that reported second quarter profits that excluded items up 23% and a decline in revenue to $3.3 billion. viacom stocks traded up slightee on improvement at the cable netwo

leading the carnage viacom shares off nearly 14%. this morning the company reported a accelerating decline. fox shares also plummeting after reporting declining revenue and earnings. the stock is now down over 7%. it was down more than 9% earlier after lowering its profit expectation for the coming year. a $5 billion buyback failing to calm investors. threats the tv business were front and center on conference calls. fox and viacom ceos both saying the companies are well positioned to withstand tv subscriber declines. disney, time warner and cbs shares are also down today, though not quite as far. disney has the advantage of being diversified and having powerful brand and time warner and fox's ceos talk of their direct to consumer offerings. cable companies are also suffering on these concerns about subscriber declines. all of those guys charter cablevision, time warner cable down between 3% and 5%. >>> in sharp contrast netflix shares are soaring, still trading around an all-time high. >>> dominic chu has a "market flash." >> still

the pad, shares of viacom down 8% at this point. sherry redstone withdrawing her support of a merger with viacom and cbs. it is an absolutely ugly day for shares of ophthotech. its eye drug failed a study, more on that and the impact on shares of regener ron in the next hour. >>> "power lunch" from the nation's capital. we're just getting started. what do you have coming up? >> thank you very much. okay, two huge issues for investors, and the incoming administration. infrastructure and reform or privatization of fannie mae and freddie mac. coming up after the break, we'll speak with somebody deeply involved in both issues, congressman john delaney will join us live from the senate rotunda on "power lunch" right after this. i we worked with pg&eof to save energy because wenie. wanted to help the school. they would put these signs on the door to let the teacher know you didn't cut off the light. the teachers, they would call us the energy patrol. so they would be like, here they come, turn off your lights! those three young ladies wer

only viacom reacted. is there any doubt this deal will actually happen or it will be a benefit to whoever becomes the minority shareholder? >> i think viacom has been such a different situation than the other media companies. viacom has so much exposure to what's going on in the cable bundle. and exposure to the younger viewers, the cord nerves and the cord schaeffers because of mtv and comedy central and all of those cable networks. what the ceo was saying on this call right now at the jeffries conference was that he thinks that pairmount is really undervalued. last year pairmount didn't have a great year. not one movie in the top ten. ranked fifth or sixth in terms of market share for all the studios but dauman thinks it is undervalues because it has franchise films coming. i think it is likely to happen in part because investors really think it needs to. >> i was going to ask, my recollection was that paramount didn't have a good year, a dry spell. but as you said they may have some things in the pipel

. >> long viacom. >> that does it for us. don't forget to catch more fast at 5:00. "power" starts now. >> halftime is over. the second half of your trading day begins now. >> someone will love that call. welcome, everybody. it is the revenge of the shareholders. in ontario, executives at research in motion facing the fire today. a live report 30 seconds away. see this face? probably haven't seen him before. a lot of people think he is the man who could reinvigorate parts of the silicon valley. you will meet him today. >>> europe is a mess. what do they need? those countries can't seem to get on the same page. do they need a king? >> mandy drury, innominate you. >> i accept. i'll be king. hi, research in motion executives opening themselves up to the wrath of angry shareholders in waterloo, oregon. shares down 75% and their problems and what shareholders are saying. what is the main take away for us? >> the main take away, though the board was re-elected at rim, it was sort of done grudgingly. i'm taking look at numbers here. t torston hines, ceo, 13.8% of shares wil

. >> and moving on to cbs viacom, who is it? julia, you andry going to get in the streaming wars it has announced a new deal, new service, bundling all of cbs all access, paramount moves. i could watch i carly until the cow u comes home what's going on? >> there are a slew of players cbs and viacom just complete d their merger we'll more about this when they have their first earnings call next week. my colleague first broke the story. what i've confirm ed with source close to the situation is they're going to combine cbs all access, which was an early player in the streaming wars with all the assets from viacom. that means paramount movies. they could bring in the assets of pluto, an ad supported streaming service. some speculation this would be more similar to what peacock is doing. but going to take advantage of the fact they have both cbs and viacom assets combined now >> hard b to believe it's been 25 years since the launch of friends and there are now r reports that a long awaited friends reunion might become a reality on h

to viacom in 2000. i understand you haven't necessarily been involved with it, but one of the criticisms of viacom is they had these marquee brands and i'm sure b.e.t. was one of them, a stable of premiere brands, premiere networks, and they got run to the ground. i'm wondering what your opinion is, especially as you look back and look on where b.e.t. is today versus where it was when you sold it to them. >> well, i think when you look at an iconic business like viacom with all of its premiere assets, the brands, b.e.t., mtv, vh1, paramount, all of those things and you start asking in a growing media world where content as sumner is famous for saying, content is king. and they had content. and something goes wrong, to me my description is there's pilot error. you know, in the process at viacom. you know, it's somewhere in the leadership things broke apart. and there's enough blame to go around for why viacom is dealing with the problems it's confronting. but there's nothing wrong with the creative peopl

i understand they have a dividend offer in lee 3% but just like the viacom conversation, it has done nothing in five years. there are better place force your money than gap. i am not a buyer but if i am an owner i will wait for a move higher in the event in the wake of the kanye kpimt it has the ability to move up to $24. >> jeff, hold on one second as i throw a question back at courtney thank you for educating me that kanye is now ye. news of the day for me i am sure nobody is surprised i didn't know that ate letta, in my little town, the gap store magically became annate letta store how well does it compete with hulu lemon is it competing on price because the lines look relatively similar >> yeah. exactly. ate letta is smaller than lululemon and we didn't know, really, the financial details of a athleta. we don't have a full history to really compare to it lululemon but it is gaining traction when it comes to the price point, i would still call it pretty elevated. it's relatively premium priced sort of yoga and athletic wear. >> right. >> but perhaps a bit lower than lululemon. it

>> for viacom, that could be a good limbo. the viacom stock has done horribly. 35% decline. but even this past week alone it's up 13.5%. there must be thinking that this would shake up at least at the very least yield better management of the better company. >> absolutely. i think that is the key reason it's been up. the people i speak to do not expect in any way that shari redstone and/or mr. redstone would seek to sell the company. it is on the idea that new management will be installed. but for now, it has the infect of parldzing everything at the company. and so there is frankly a hope on all sides on even on the sides of the directors i believe that something get clarified quickly. i should point out if this does occur as i reported earlier, they will immediately file suit in delaware to have it stayed under something called statute 225 for those of you who care about corporate governance and delaware law. >> they being dauman? >> yesterday, led by the lead director actually, tyler. >> well, is there a way -- we talked about this yesterday off the air. when you look at

you remerge viacom and cnbc cbs, or cbs buying viacom. >> that's the most interesting one. given cbs' leadership, les moonves, everybody thinks he's the guy to turn both companies around, if you have to pick one guy, that's the guy to pick. >> les is more. >> les is more. >> interesting that paramount was at the center. >> and the guy who took over was martin davis. >> you're right, i did remember. i was -- what were you trying to say there, sonnenfeld? ed, jeff, thank you very much. stick around, folks. we have a big money trifecta coming your way. your best bets in bonds, stocks, and commodity looking at brexit. "power lunch" is back in two. the call just came in. she's about to arrive. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t. >>> it's time for the "your business" entrepreneurs of the week. omar and camille bro

so does viacom. in the uk and germany and italy, with sky you have got content -- look, the world cup is going on today. that's the biggest eyeball gatherer that we can think about. it makes super bowl look tiny. and so the notion of content of both sports, news, and entertainment globally, and leave events and particularly going after millennials and particularly going after the mobile is an important element who else is out there? first of all, my clients are the happiest if there is a continue use of 41, 42 cash coming back by comcast and fox will decide whether they have to up the bid or change the terms. this was not only a higher terms, but it was the terms of trade that changed, part cash, part stock by disney and look this makes sense for everyone then what else is out there. >> zaz love has a wonderful business in europe at discovery. clearly, some people may want to have wireless. but you will have to aggregate a lot of content producers i think viacom has a very good non-u.s. asset base. i

remember, viacom also was in there to buy scripps and lost out to discovery in the end but certainly had worked hard to potentially secure that asset as well >> everybody stay where you are. we will have much more on this developing story as we leave you for break, 21st century fox shares are trading pretty much at session highs on this report that disney has held talks to buy most of 21st century fox, according to sources being told to david faber. we have an analyst to analyze this situation, this potential deal, on the other side of this break. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. . >>> breaking news moments ago. 24th century folks had been holding talks to sell much of the company to disney. turning to us now is laura martin listen, three years ago, disney was a $99 stock a

and uni vision has melt with viacom and time warner among others. the viacom supertoday because it's controlled by redstone unlikely to break up or sell. the unanswered -- >> we need to go to governor christie who is speaking right now. >> we opened that issue again? >> i'll campaign for terry branston who is running for o r governor. we'll be sleeping in new jersey tomorrow night. >> i know you haven't decided and if you have i wouldn't expect you to announce it here. >> that's good. [ laughter ] >> knowing what you know right now are you leaning towards it? are you thinking it's likely to happen? >> this is another way of asking the question, isn't it? [ laughter ] >> yes. >> are you leaning? >> yeah. it's another way to ask the question. no i'm not leaning. i'm not leaning in any way. i'm not giving it a lot of thought. i'm chairman of the republican governor's association. my job is to elect as many republican governors as i can. i don't have a 527 or a super p.a.c. or a c 4. >> we're in the second half of 2014. if you're going to do it -- >> i'

more on viacom coming up. the oil market is closing today so we have to head over to jackie at the commodity desk. >> it was a volatile day back and forth we ended a hair higher, $47.44. oil for the week was up more than 3%, for the month it was down roughly 10%. all eyes on the big opec meeting, that's thursday the 25th of tomato see whether they're going to ek tine these cuts, go deeper or back off of them, they haven't had the effect othey wanted to keep that price over 50. back over to you guys. >> thank you very much jackie. big jump today for wynn resorts it's up three% or so. i spoke with steve wynn yesterday on fast money he says la las vegas is enjoying robust -- >> that sense of optimism among people, not done just businessmen but my customers who are people who are able to afford the better thing in life, much more positive. >> right. >> and we felt it was -- it happened right away in november. >>> all right well you're next guest may have the single best pulse of the consumer of any company in amer

viacom's paramount. that's the controlling shareholder of viacom, of course owns paramount, sumner redstone doesn't see the logic. do you think there will be some consolidation -- >> i see very little. you know, maybe metro -- which appears, unfortunately, to -- >> almost in bankruptcy. >> sumner may acquire that. as far as a major companies, it could happen. i see no consolidation among the major companies. >> among the studios, should there be? >> no. let them each be on their own. do their best to create good product. >> as for his relationship with one of hollywood's biggest stars, redstone is happy to be back in business with tom cruise. >> tom and i are very good friends now. >> what happened there? you were on the outs for a while. >> look, i always thought tom was charming. i thought he was a great actor. behaved a certain period, you know what it was. it was really unacceptable. i thought that it cost us even though his pishg tourding well 100 million bucks. also, just to have him on the lawn at

>> you know, i love this stock back when it was viacom after the hong kong whale. remember how it got crushed because that guy was overleveraged and committing fraud? i was buying it in the high 30s -- >> this is warner brothers, not viacom. >> so when you're looking at streaming, okay, what we have to remember is you're dealing with a battle between owning hbo max and discovery a la carte and having it be separate from everything else. i don't think i want to own hbo max just alone i want to have discovery they're talking about making a profit next year they're talking about -- in 2024, maybe making a billion dollars. i don't know if that's going to happen i can tell you if a company just wants to work on making money and they just want to work on raising the price, that's a better deal than viacom. i think it's a better deal than netflix and i think it's a better deal than the other streamings out there that's why i might wanti to take a chance on it but we're going to have four more messy quarters and this is the one for value players that want to make some cash

viacom shares are about 4% higher on this news. les moonves was asked about leaving a company amid a wave of me too allegations back on november 29th. take a listen. >> it's a watershed moment, i know that's become a cliche and a lot of people have spoken about it over the last short period of time you know, it's important that companies educate, have an ability to have a dialogue to know what's going on i think we've been surprised by things that we've seen, but i think it's important that a company's culture will not allow for this. >> we're still awaiting that article from the "new yorker." guys, back over to you. >>> joining us now on the cnbc news line is larry haverty what's your take on the shocking news >> well, you have to take a deep breath and analyze what you know "the new yorker" is a very credible media source. it's like "vanity fair." it occasionally breaks big stories. we'll have to see the story and wait for the individual board investigation. but i think, and i've said it on the network, that les moonves is replac

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a merger that its special committee of investors were against that being a purchase of cbs of viac viacom they said they intended to issue a dividend that was allowed under the charter at the time of the company that would significantly dilute the vote of said controlling shareholder national amusements. and wanted a tro, temporary restraining order from a judge in delaware, to prevent national amusements from doing anything to interfere with its plan to have a meeting today you follow me so far if you've lost me already, i'm sorry. the judge in this case down in the delaware courts said no, not going to give you that temporary restraining order. cbs, you don't get it. you can't interfere with the rights of the controlling holder did say a number of other things as well. would they get the tro they didn't. yesterday, national amusements moved to change the charter and the bylaws of cbs so that you would not be able to issue said dividend without 90% of the board of directors of the company agreeing a super majority it would take 20 days before that takes effect. all of which leaves us whe

what do you think of viacom? >> viacom is a buy here. the main reason is the paramount and distribution -- the money they can collect from that content. so as so many people are struggling for content, they have a huge content library with paramount. the oscar bounce should help. i saw "hugo." it was a little scary. they also have nick elodeon. we keep it up. >> we do too. have a great weekend. >> you too. >> i can't believe you put on any weight, tyler, over the last 13 years. anyway, straight ahead, a big boom for big blue. the shares are up almost 130% in three years. sneaking up now on $200 a share. what is behind the surge? and can it continue? stick around to find out. power's back in two.  oh! [ baby crying ] ♪ what started as a whisper ♪ every day, millions of people choose to do the right thing. ♪ slowly turned to a scream ♪ there's an insurance company that does that, too. liberty mutual insurance. responsibility. what's your policy? ♪ amen, omen tdd# 1-800-345-2550 so, i want to trade at a place that real

viacom's daily show and colbert report saying goob to hulu. disney threatened to pull the plug on abc shows after they threatened to pull the plug on the oscars. we're not going anywhere. the second hour of "power lunch" starts right now. >> it does. welcome to the second you're of power lunch. i'm tyler mathis son. breaking in the past half hour, bob lutz, a design maestro, will retire from gm on may 1st. >> i'm sue herrera. rising dollar, dollar weekening. crude now above $80 a barrel. >> i'm michelle caruso-cabrera. we'll carry obama for you live. but first john harwood in washington has a preview what to expect. >> you should look at this event this afternoon as a continuation of what happened at that bipartisan health care summit last week and like that summit, it's not really about reaching out to republicans or getting republican support. it's more about firming up support among democrats. yed the president sent a letter to congressional leaders outlining some steps he said were concessions to republicans. here are those concessions. on

more changes at viacom, reuters reporting that long time viacom executive doug herzog who overseas comedy central and mtv, he is going to be leaving the company. that's according to sources, reuters reporting. we reached out to viacom. they have not yet given us a comment. but this would be not unexpected in the wake of bob bakhash, who was interim ceo, being named permanent ceo and the decision that viacom and cbs are no longer going to be exploring a recombination, something that the national amusements sumner red stone's company had been pursuing. it appears there are changes in the works overseeing viacom's key cable networks, mtv, vh1, logo tv, comedy central, all under doug herzog, who is reportedly going to be leaving the company. back over to you. >> julia boorstin, thank you. >>> and look who has joined the "power lunch" team today. hi, how are you? >> nice to be back with you. >> great to see you. >> a little late because my son got kneed in the head in gym class, right over the ear there. i think it is a little bit of a badge of honor, now he thinks he's in the nfl concussion p

the ceo of the new viacom cbs. mcdonald's going through major ive ges a t the boardroom and drthrough. we'll explain. power lunch will be right back everyone uses their phone differently. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. all with millions of secure wifi hotspots and the best lte everywhere else. it's a different kind of wireless network, designed to save you money. switch and save up to $400 a year on your wireless bill. and save even more when you say "bring my own phone" into your voice remote. that's simple, easy, awesome. click, call or visit a store today. >>> disney dominating the box office as they have while netflix dominates the award shows or one of them let's tackle all three with ed lee, new york times media reporter and cnbc contributor. we'll begin with viacom ceo. he told about the company's streaming plans. listen in. >> what we're in the middle of now just like ever

what will it mean for viacom shoulders? we'll bring you the latest on this juicy story. "power lunch" is back in two. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. >> sumner redstone is under fire how much you can earn and this savings applies to every vehicle on your policy. call to learn more. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. >>> it is the case that is captivating hollywood. viacom and cbs chairman sumner redstone is being sued by an ex-girlfriend on the grounds that he, quote, lacks mental capacity to remove her as a representative. if the suit is found to h