the white line, which is cbs' outperformed viacom on a normalized basis. investors have pushed cbs higher since the announcement of the potential merger. cbs is not just the most watched u.s. tv network t. leads the four major broadcasters in operating revenue as well. ad sales are crucial for cbs, since that makes up 85% of this revenue. in the second quarter, ad sales slipped almost 3%. however, bloomberg intelligence is looking for a pickup, estimating that tv station ads rose in the high single digit percentage in the third quarter, offsetting weakness. cbs says unlike others, it has not seen weak frns donald trump's lack of ad spending. of course, any slowdown in network ad growth should be partly balanced by strong retransmission gains, which follows a trend in the industry. this chart shows how fees, which are the big orange slices of the pie, certainly more recent, are becoming bigger and more important for the networks. cbs' second quarter revenue benefited from a 44% jump in those retransmission revenue. a potential weak spot is the nfl. falling

--ossible roger with viacom a possible merger with viacom. the broadcaster is an early stages of a deal. both companies are controlled by senator redstone and his daughter. that is your business flash update. u.s. days away from the presidential election. investors are increasing their hedges against donald trump and appending -- upending assumptions of a clinton win. a u.s. election guide to the markets with laura zalenko it we have been riveted watching the dollar-peso as a proxy throughout the election. what are the indicators you are paying attention to and investors are paying attention to? >> the anxiety and the market has really upended the conventional trends we have seen in the past. the ushe past 22 cycles, a be 500 has risen five days prior to the vote. the last eight days, we have been down. the volatility gige, the fear gauge in the market, has been up -- of the volatility gauge. you are seeing some concern in the market. trading firms are getting concerned, because you see them trying to prepare for the unexpected. about brexit

david: gabelli funds is still a large investor in viacom. explain why, provided the price was right, the merger would make sense. chris: it would be beneficial to their cable networks, getting some more international away from u.s. advertising compared to what they have been doing for the last 10 years. i think they are better together than apart. do you have any sense of timing about how long this will take? >> they're working. clearly there is a controlling shareholder. they will second largest amount of economic voting stock. we may have more of a voice than others. 21st century fox is another major mobile you company. not too long ago they tried to buy and then went off the rails with the other problems they had in england. if that deal made sense then, does it still make sense now, and should it go forward? chris: james murdoch was evasive . they have said before that it is not a natural state for them to own 40% of it. they will be a buyer or seller. my guess is that they are more likely a buyer than a seller. the question is, has enou

media conference last week and was very bullish on the company, so perhaps he wants a chance to turn viacom around. it is a big job there, down 60% from the record peak. speaking of turnarounds, chipotle mexican grill, shares are today higher on the news that the coke ceo is leading, putting the founder insult control. this stock is down about 50% from its record peak on the breakout of the e. coli issue and it appears he has a big job ahead of him. 2206,into the bloomberg, we are going to see in blue revenues absolutely just dropping. big decline in revenue growth. it looks like, julie, that the team is going to have to turn this one around by bringing revenue backup and perhaps the stock will follow. we will see if he can. julie coleman avenue a gale, thanks so much. i cachet of documents from deutsche bank include what some investors call a smoking gun, proving that other banks were involved in a price rigging scheme. a ubs trader wrote -- going lower -- the deutsche bank responder responded -- oh dear, my boss just purchased some. work that one.to told you i would bend it lower for you.

we will talk about the failed merger of viacom and cbs. this is bloomberg. ♪ julie: this is bloomberg markets. it david: the fire, cbs deal has relaxed -- collapsed. shares above companies fell as the plan dissolved. joining us is the m&a managing editor. how big of a surprise was this? >> it's a bit of a surprise. we picked up over the weekend that last was reluctant to do a deal. he wanted assurances that he was going to control or have control .f the sherry sumner redstone he wanted to know he could run these might companies which are big and would require a lot of work. our sense was she was reluctant for that. she and her lawyers at her side want to make it look like they were out front and they were the reason the deal fell apart. what she the one that made the call? jeff: it's not entirely clear. we were making calls yesterday. we understand he has these concerns. to that play into her coming out? he did not want to pay a premium. there were a lot of research analyst said this was going to be a very small premium. viacom has made

chile.s a 5% stake in some of the biggest investors on the video-on-demand platform include paramount, viacom, and one of brothers. u.k.,has extended to the germany, poland, and australia. that is your bloomberg business flash of it. oliver: china is pushing back -- flash update. oliver: china is pushing back on the assumption that it stole a naval thrown. donald trump tweeted "we should sell china that we do not want the drone that they stole back. let them keep it." china does not like the word "stole" to describe its actions. so last friday is where we left the story as it was breaking, and we were trying to assess whether or not this was sort of a reaction or response in any way to what trump has said about taiwan, china, and his comments. any truth to that, or is this something that came up at the time? : it is hard to imagine china not taking the totality of donald trump's approach to it in consideration, whether that is his call with the leader of taiwan, which is the first time the u.s. has on that since 1979, or whether it has been his very aggressive rhetoric toward china, accusing

ago, cvs and viacom but obviously she changed her mind. you have to wonder if there is a reason she did that, is there another company that could be interested in merging? for instance, espn could make a .ot of sense all of the media companies, there is so much movement that viacom may not be the best option any longer. maybe it is something else they can do. it is totally possible. david: he has run the company for a long time. was a darling for a long time and now is not. perhaps at the end of his career, he is laying off what he has created. >> right. craft beer is different now. from a merger standpoint, it makes a lot of sense in terms of .hat he is thinking of doing something like sam adams is very profitable. it just have better margins. something like sam adams could make a lot of sense for them. and maybe they are more of a friendly buyer. warren buffett always talked about in the context of deals here. his last one was a different road to go down. dealnow how crucial his will be. have a sense of maybe what he wants to buy, the fo

viacom andmily owned cbs. cbs has in play. we'll see. again, i think the pressures to over, some of of those hurdles. i'm sure viacom and cbs are feeling pressure as well. linear tv is under a lot of pressure as everyone come including me, begins at consume a lot of media on tablets and smartphones. they are moving over the top, as they say, and looking to the internet. scarlet: everyone is waiting to download and view their tv shows on their 4g lte streaming. numeral 5g is now on the horizon. >> it has been much-hyped, by the way. scarlet: are they ever, like -- i mean -- >> never. lightning fast, but the standards have to be set. and that's probably going to happen around 2020. in telecom, as people begin to build prestandard equipment for the carriers to go out and field try on, some of the carriers get verizon will pre-standards commercial services. so they will go out and offer higher-speed service with this sort of her prior terry 5g proprietary 5g-- equipment. it will have 4g and they will get a flavor for how to draw the network

but it's a great question, the same question that cbs will be thinking of, viacom, now that they are not doing the deal. do they want to sell two different parties, are they going to read big parties, foreign parties, will trump be open to that? it is possible we will see a lot of these big deals, but if this deal, at&t-time warner, gets next, no question that will have a chilling effect on the rest of the year. exclusive market moving beat, thank you. rudy giuliani and blackberry ceo john chen join us from ces to announce their newly formed venture. this is bloomberg. ♪ oliver: this is "bloomberg markets." i'm oliver renick. scarlet: i'm scarlet fu. hour.nes crossing this looks like prime minister theresa may is planning a visit to donald trump this spring. she is looking forward to it, says her office. earlier today we spoke with melissa kramer, the chief ratings officer for snp, who warned the u.k. could be headed for a hard brexit. >> the likelihood of a hard brexit has been increasing over the past couple of months. hard brexit meaning the u.k. with being the eu without sort o

if you look at some of the big earnings reports, you have viacom on the rise and whole foods on the rise, but coke and twitter utley low. -- oddly low. coca-cola coming out with numbers that disappointed. the company's earnings may declined as much as 4% in the coming year as it does a big overhaul. , interesting that the stock is on the rise because the company is forecasting same-store sales for this year that are not offering much hope of a recovery, but they are decreasing the number of stores. of course, twitter coming out with revenue that is rising at a lower rate and also forecasting not much growth in the current year, for profit. we will dig more into twitter, in a few moments. that is really taking center stage in terms of supporting the gains we are seeing. crude oil prices are on the rise, up 1.2%. goldman sachs says opec will succeed in eliminating the supply surplus and that will outweigh some of the supply gains we have seen in the u.s.. we have been watching bonds, which are reversing after four days of buying in the bond market that drove yields lower. we are seeing a l

but viacom and national resources did beat the bottom line. cliffs natural resources up, fromis on-demand steelmakers. whole foods market also trading higher, despite the fact that they put up a messy quarter. investors are excited for the new plan. and regeneron, bloomberg told ournce analysts team earlier that what investors might like here is the fact that management said there is likely with thes conservative new skin drug. so lots of green on this snowy day. vonnie: snowing and hailing, it is everything. president trump is promising the nation's airlines new infrastructure and less regulation. he met with industry executives today at the white house. them they aretold regulated as much as anybody and he said in the next 2-3 weeks, he will announce something phenomenal in terms of tax. jeff sessions is the new u.s. attorney general. the former senator was sworn in after being confirmed by the senate last night. trump used the occasion to sign executive actions on transnational crime and crime and public safety. the president's choice for t

if you remember viacom at one point was looking to sell part of paramount to potentially a chinese bidder. that didn't happen. there are various deals we have seen collapse a tv company which makes the golden globes tv show, that was worth $1 billion, that isn't going to happen. there were expectations m.g.m. was going to get taken over, that didn't happen. these deals really are being impacted by restrictions in china about outgoing investments. scarlett: absolutely. beijing looking carefully at all capital outflows. i wonder whether the dreadful box office performance of "the great wall" a joint venture between universal pictures and a chinese film group, may have played a role as well. it didn't do well. it's not likely going to pay off as a big bet on future ventures. >> i think that the global film market is going in one direction, that is china is going to be -- is a bigger part of it and it's on course to overtake the u.s. there isn't anything stopping that transition. so china will have to have a more important role in movie making and its films will have to get better. i think it

abigail: viacom, discovery, and amc are eyeing new bought -- new bundles without sports. lucas has the story from los angeles. i am not much of a sports fan, but it is hard for me to imagine having some sort of bundle without sports. is this viable? >> it is something that has been talked about quite a lot. you hear people asking to be able to pick your own channels. between companies that tell you cable or satellite or companies that provide the networks printed -- prohibit that from happening. you to see the trend in the industry toward the pay-tv providers, comcast, dish, directv and so on, trying to offer smaller packages to prevent people from canceling cable or satellite altogether. right now they are mostly doing it with packages that have broadcast that recs and the companies that -- broadcast networks and the companies that -- discovery that are being left out of some of those packages because they are not deemed quite as essential. they have a lot of networks people want to watch and a lot of people do not care much about sports. ofre is a second set conversatio

and viacom on the most expensive tier pricing, meaning perhaps a hit to viewership numbers. scarlet: can't forget those earnings. back to the top story of the day, the house passing the gop health care bill, successfully voting for the regular replacement of obamacare. the president will hold a news conference of 3:30 p.m. eastern time at the rose garden. we will bring you there when it begins to we want to bring in a team of reporters at the white house. margaret talev, senior white house correspondent. kapur, national political reporter. and jason gorman of bloomberg intelligence. the vote passed the house and it goes to the senate, where the republicans hold a slim majority. what needs to happen before the senate begins consideration of its own bill, whether it starts from scratch or takes of the house bill? sahil: a little bit of context -- the bill passed 270-213 votes. 2 fewer votes than a house and this would have gone down in defeat. paul ryan had a margin of 21 votes and he lost 20. mitch mcconnell has 2 votes you can lose. this will be an uphill slog to get this to

it has met separately with viacom along with discovery. they did meet with discovery in 2015. rejected a potential bid. paul sweeney told our team this that shares could be pretty attractive. very big gains for scripts of and discovery. let's have a look at where equities are right now. we are not seeing record highs in europe. we are seeing a rebound for the stoxx 600 after it dropped more than 1% in yesterday's session. up about .5%. tech stocks leading where they were lagging yesterday for a bit of a turnaround. you can see green across the screen in equities. ftse 100 higher as well. seeingfx space we were some broad-based dollar gains earlier in the session tracking the 10 year treasury yield higher. the yen actually strengthened against the dollar. still seeing weakness in sterling and the euro. the pound is weaker. the euro down by .2%. a 14 monthit hit high yesterday. in the fixed income space we are seeing yields in the core and periphery. above 49 dollars a barrel. we are seeing a little bit of weakness today. investors getting cold feet ahead of the ecb decision tom

if you look at viacom shares, this is one of the reasons why , we reporteddeal viacom and scripps have had talk. when you look at where viacom trades, it's about a $14 billion company. $10 billion about a company. for viacom to buy scripps, their share price does not lend them to doing it. julie: we will be right back. ♪ julie: live from bloomberg world headquarters in new york, i am julie hyman. this is "bloomberg markets." all three major averages are rising targets today, the dow raising the least. the s&p and the nasdaq gaining steam today. let's go to tailor for more. >> it could be another record for the nasdaq, so i will focus on tech stocks. the travel advisory online shops, trip advisor at the most, 2.6% today, after an analyst upgraded it to market perform from underperform. in february, they downgraded the .tock to $47 a share doing a price target here of around $40 a share. since that time, they have underperformed by 20% here at expedia and priceline have outperformed a 20% to 30%. a little bit of a pop on that of grain -- upgrade, but competition remains a significant r

we did not figure that viacom would also be interesting, but shows. has some great tv they are very popular among women, which is a sweet spot for advertisers because women tend to be the spenders of the household. it makes sense that right now, they would look for that leverage and scale. but they would be doing this defensively because of the changes that have taken over in the media world. in the skinny bundle world, which is where we are headed, is it better to offer more or fewer channels? has been argued that distributors do not want programmers that have too many networks, because they want to streamline what they offer to consumers. >> that is absolutely true. the thing with discovery is that they are having a problem with their contents, where it is not the must-have content for skinny bundles. they have been left out of youtube and sling tv's basic packages. they need to offset any sports programming filling up a lot of these packages. and these companies, discovery, viacom, are in talks with this tribute or's to create an entertainment only

so that may be another hurdle here if there is a major threat with viacom. it's possible discovery, even if discovery makes the most sense as the buyer for scripps, could back down. julia: not looking to overpay for this. great to get your insight, alex sherman in princeton. elon musk sends the technology and transportation world into a tizzy, he tweeted he received verbal government approval for the boeing company to produce a underground new york city to baltimore d.c. hyperloop, meaning you could get from new york city to washington dc in 29 minutes. he later said the record straight, saying there is a lot to be done to receive formal approval, but he is optimistic that will happen. >> thanks for having me. julia: i think these tweets say it all. a little bit of enthusiasm. >> this is the elon musk playbook. make a big, grandiose goal, and then start trying to bring people along, getting investors and the government on board. the white house did not totally bat this down. they said they have had discussions with elon musk over infrastructure projects, and

i think trumpers: loyalists across the country and in the administration are energized by viacom was miserably president within the first six months. stock market at a high, regulations coming off, the country becoming more secure, the border becoming more secure, immigration is down. i think we have a lot of things to celebrate, a lot of things to be excited about and i think our morale is pretty high. >> congratulations. secretary sanders: thank you. withu come into this role excitement, trepidation, apprehension? can you reflect on what you have learned about how it is to speak to the president? is it a tough job? it does not look easy. secretary sanders: certainly professionally it is one of the greatest honors any person could ever have to work with any capacity with anyone in this building and to do that appear in such a public way and speak on behalf of the president is absolutely an honor in something i will cherish and hope to do my very, very best every single day and be as open and honest and transparent with you all as humanly possible. and with the utmost integrity that

scrippsso why did choose discovery over viacom? end, viacom cannot get there on price. ancom had been offering all-cash deal, and there was some concern from the board that that may put viacom and a difficult place financially in order to get the financing and get the deal done, but even so, they offered more than discovery. this deal with discovery for a higher price is also a cash-stock deal. in other words, the scripps family will own a noncontrolling stake in this new company, but they will still be able to have an upside from a discovery-scripps company considering that the deal goes through, and the new company will be stronger, at least that is what many analysts are saying, then the old scripps just because discovery and scripps enter a world now where if you don't have high performing networks, you are in danger of getting those networks locked out by the cable providers that are increasingly offering skinnier and skinnier bundles. they put together two companies here with a couple of popular networks. ,iscovery owns animal planet hdtv, the crown jewel of scrip

viacom was the other potential bidder in this triangle. looks like it is the odd man out. charter communications is appear they are determined to get a hold of a u.s. cable u.s. cableer -- companies. he is the chairman over softbank and he proposed combining sprint with charter. people familiar with the plan says he plans to target charter now directly. so, a lot of interesting, ongoing m&a stories going on. mark: .28 is the magic number. that is what he needs to rise in percentage terms to avoid falling. if it falls, it would be the worst rest since october. it fell for a second week last week. best performers under the month -- best performers under -- over the month. we are up for the day. earnings season continues. hbc shares rising. beating estimates. outgoing executive boosting revenue. to $2t will spend up billion and buy back stock. profits at its biggest units. the buybacks will be completed by december. repurchases of helping shares rise by 50% in the last 12 months. hsbc shares are rising. inflation data out of the eurozone back in line with estimates at 1.3%. d

tim: they were in discussions with viacom, and scripss went with discovery. that is a network group with a lot of channels. many of them are not being watched anymore. i think better ratings data is demonstrating that. a few core networks that are popular. they are kind of left with a base of content that is seeing declining viewership. declining viewership means it is more difficult to get advertising dollars. they must find alternative ways to get distribution to monetize via advertising. vonnie: does this combined company get a little better? $90 takeout had a price. i guess you would call this neutral. vonnie: you won. tom nolan, ask for joining us today. here is mark crumpton. mark: after last week's failure to pass the republican health care bill, senator jeff flake of arizona spoke to bloomberg about the next step. >> what is over is an attempt to do it with just republican votes. we have reached the limit double the we can do with republican votes on health care now. mark: he acknowledged there are limitations to what can be done on a partisan basis.

i think next year, will it work, we don't know yet, but it is important -- it is a new viacom. it doesn't make sense for them to do a new deal right that -- if they're trying to figure out how to get to the turnaround. take you both so much. let's check your first word news with mark crumpton. mark: president trump says retired marine general john kelly will do a fantastic job as white house chief of staff. terry was sworn in this morning. kelly replaces the reince priebus -- they reportedly have one thing it is never did, the backing of the monica and her husband jared kushner. week's failure to pass the republican health care bill, senator gifts like arizona -- talked to bloomberg about the next step. is an attempt to do it -- just with republican votes, i think we have reached the end of what we can do with republican votes on health care. >> senator -- acknowledged there are limitations to what can be done on a partisan races, but stressed that health care is not going to end and still needs to be fixed. the u.s. military said today that carried out a weekend from strike in

other big cap media stocks like disney and viacom also taking a hit. julie: julie hyman, thank you for that. for more on the dow, topping 22000 and whether president donald trump can take some credit for that, i want to bring in bloomberg stocks reporter oliver renick. the president just now when he was unveiling the new immigration legislation along with a couple of senators abovened -- said it went 32,000 and it would go higher -- 2200 and would go higher. oliver: here's the thing that if i wish i were trump's advisor, i would advise him, timing your success of this document is a risky endeavor. if you play with fire, you might get burned by fire. there is so much that goes into what happens in the equity market and why. of journalists like myself to figure out every day and investors to figure out. i think the thing that trump runs into trouble with, with the stock market high is because it could flip on a dime. it could also go higher. vonnie: anything could happen, but some of the trade has been the hope of the fewer regulation, hope of tax reform

viacom is leading the lawsuits we are watching today. subscribers are going to drop by about 3% even though earnings and sales beat estimates. that is sending down shares by 11%. disney shares also falling. some of the other media companies are taking a hit. concerns about this bigger long-term change about how people consume content. engineering is following -- falling, as well. disappointing second-quarter results. the medical waste management company, that company cutting sales forecasts. it looks like there is questions --perkinelmer. earnings holding things back. mark: we are holding on to gains here. 0.75%, all 19 industry groups rising. equities will shrug off the stronger euro as they benefit from the region's brisk economic recovery while the single currency will not go much higher. word.s the some things to tell you about today, the earnings season continues. rbs earlier as much as 5%. bad loans shrank. executive making progress in turning around the thernment lender, though company is still dogged by legacy misconduct charges

media stocks are tumbling today led by viacom after that forecast disappointed investors. julie is on set with us here. >> especially considering how well the company did last quarter. in its fiscal third-quarter sales, profits beat estimates. hosting its first profit since the final quarter of judy 15 -- 2015. the revenue with a highest and almost two years, and the ceo has been trying to turn viacom around. it looked like last quarter there was progress made, but the forecast is causing concerns here. subscribers to the company's cable tv networks will fall about 3% this quarter, affiliates these -- are going to see these drops as well. that is the issue here. one of the interesting things is apparently the company purposefully cut down on domestic ads so that people would not change the channel. at least that was the goal of some of that reduction. an interesting strategy there. reinvention mode for sure. julie hyman, thank you so much. and the.other mover, their shares are sharing -- surging -- amc. hares surging after saying they were cutting back on investment plans

that applies to comedy central, to viacom. no company has been held to more by the changing media pace of consumers. viacom has all these networks that spoke to a young audience, now watching youtube and netflix. you still have these networks trying to lock in a talent for a long time to make sure they can't go somewhere else, like amazon or facebook. scarlet: good points. lucas shaw, joining us from los angeles. julia: still using primetime ratings. you wonder whether they use him to get their money's worth. scarlet: he didn't get signed up to host a specials as well. signed up to host specials as well. $.80 toe making over the dollar. is it progress? from new york, this is bloomberg. ♪ julia: this is "bloomberg markets." scarlet: women in the u.s. have taken a step closer to closing the wage gap, according to new figures out of the census bureau. women are finally earning over $.80 to the dollar their male peers make. our tax reporter joins us. this is part of bloomberg's ongoing conversation about gender -- gender equalit

you have charter and are talking about a negotiation between the two that may lead to a blackout of viacom programming. all of that not equally a good day for media or telecoms. elsewhere, we're taking a look at equifax because it has got more trouble potentially. the company said it pulled its website off-line following in -- following a report citing an independent security consultant that there was a siteity flaw in equifax's that was allowing malware is infiltrated potentially. price since equifax announced the big hack of its systems that happened in september. the stock is down about 24% since that time. we're looking at the bond market today, not because -- that is because we have the strongest in two years time. a $12 billion option. you can see when the results of that came out right around 1:00 p.m. and we started to see yields go further down. they are now down by three basis points. why are we seeing so much demand here given the fact that the fed is expecting to raise rates? you have to compare the u.s. to other nations. you have got to look at u.s. debt, the 30 year node. 2.4

the ripple effect, viacom, which is yet to report their shares. 21st century fox is higher a continued speculation about some kind of potential deal that company. the retailers as well, we continue to watch those. we're jcpenney up big time. nordstrom is down. both out with their numbers. you know, this illustrates the unevenness of the retail landscape and the department store landscape right now. liquid --id massive massive inventory liquidation. analysts say they do not have to do that kind of liquidation in the fourth quarter. at nordstrom, caught sales fell worth and analysts had estimated. and a quick look at how you that is gotten a lot of attention. proceedingselloff the stock selloff. etf that tracks a high-yield credit market. you can see it as had a decline over the past few days and is rebounding today. investors starting to pull their money out before the decline began. that is interesting. schilling jitters leading into the declines we have seen. we will be talking much more about high-yield etf's in just a little bit with our eric balchunas. nejra: thank you so much, jul

while this bid is helping other media stocks really trade nicely higher, viacom and discovery communications getting a bit. a very strongt up quarter, but overall, media stocks strong on the m&a tailwind. julie: we will find out what accommodations and that happening. thanks, abigail. shery: stitch fix enters into the public market and shares of the online personal styling service traded higher their market debut, opening at $15.90 apiece. above the ipo price of $15. three venture capital firms are poised to take on the huge payday from stitch fix's decision to go public, including benchmark capital, which owns 26% of the company. emily chang in san francisco is standing by with more. emily: thank you. bill gurley, general partner at benchmark capital joining us live from the nasdaq. thanks for joining us. you invested in stitch fix and a lot of investors didn't see didn' the potential. what do you see that other investors may not see? my career, early in i have the opportunity to get very close to the management team at dell, the computer company, when i worked on wall street as a sell side

then we have viacom and lions gate. lions gate, there could be speculation some of these smaller film deals could be in fox'sfter 21st century film studio going to disney. on the day, the company cutting 14,000 jobs, also suspending the dividend and turnaround, up 15%. they beat sales in a big way. the backlog is very impressive, then look at this, pier 1 imports down 30%, the worst day since a big earnings miss. big decline. bank it has been a central theft today, the bank of england, the swedish national bank, the ecb, and i will throw in turkey as well, down for a third day. let's talk about sterling. this is the intraday chart, midday was the central decision. it is just a bit lower, down 1% today -- 0.1% today. future rate increases will be gradual, that is why you see sterling, a bit, though pricing still signaling the next rate hike in november next year. the voting was unanimous. they have been talking about it since february this year. some significant events in the last month, both of which could be positive,

what do the likes of cbs do a viacom? aryeh: i do not want to talk about the individual motivations. vonnie: you can. aryeh: think there is the need for more scale with everyone we talked about. end?uestion is to what is scale and content enough? disney has been acting on the fact that scale is necessary for content companies to compete with netflix and amazon and have their own direct offerings to the consumer overtime and not just relying on platforms. a lot of platform companies are in the ocean now. they either do not have enough scale to compete for consumer offering and they do not want to be sold it. they have to resolve that. vonnie: what is better for the likes of commerce? to be bought out or to make more acquisitions and sales and do it themselves? ar i thinkyeh: -- aryeh: i think to be part of a broader platform, like approaching a disney-fox or time warner or have a platform orientation, where they have a big brother or sister to get to the consumer directly. i think everything is going to evolve. you will se

joe: what are people looking forward to with a viacom and cbs? people have talked by those companies getting back together for years ever since they split. is that still possible? the deal will trigger many different chess moves on the board. if i come and cbs are the first names that come up. those talks were in 2016 after the company decided they were not -- not proceed. highlights the need for smaller companies to get together and build scale and add to negotiating leverage with operators. i definitely think it will be back on the table in 2018. joe: in all the conversations, we are not talking much about acquisition of startups here years ago, there was a report that disney was going to buy buzzfeed and weiss austin gets names -- named. we had not heard about the idea lately. are they really just much more focused on consolidating legacy assets? >> it is a little both. we have seen comcast and disney .nd they all make investments they have all had one billion-dollar investments. and we saw disney make a sizable investment in a streaming platf

what can we expect from cbs and viacom. viacom still losing ratings. >> sheri redstone still issues of her father and -- fill the shoes of her father. she decided it was not the right decision to do that but now with disney buying significant assets from 20% free fox -- 20 century fox, the time warner deal a gently going through, and a lot of other companies -- it makes copies to make cbs and viacom stronger, whether it means putting that together or cbs getting bought, a lot of opportunities for them and she will not want to sit it out. shery: a jim and i -- pfizer and thes talk has been about taxes. they want to do a megadeal but when there is regulation on the tax front because they have overseas cash they could use for m&a. we are getting to the point with resolution on taxes, it is likely we will see pfizer step into the m&a rang. shery: this was a fun article. thank you tara lachapelle. q is the onlyf i show solely focused on etf. that is next. ♪ ♪ julie: julie hyman and for scarlet fu. this is "bloomberg etf iq."

there has been are new to talk about combining cbs and viacom. bristol-myers squibb after -- finallyafter merck -- mosaic falling after some on over commentary positive sentiment surrounding nitrogen. credit suisse making those comments. mosaic down 5%. let's get a check on the first word news. >> an extraordinary four-day sentencing hearing is underway in lansing, michigan. destroys former michigan sports dr. larry nassar who pleaded guilty to molesting young females at his michigan state university office and other locations is facing those he abused. many of the survivors were victimized when they were teenagers or preteens. >> some may he scared to share their experience. i was. i still am sometimes. there are some days that this horrifying experience fills my brain and i can't think about anything else. it left a mental scar that unfortunately will always be something that happened. believer am a strong that scars become stories that you share and heal from each day as time goes on. >> the michigan attorneys general -- attorney general's off

speculation about a cbs viacom deal has resurfaced. chief les moonves is considering a merger. withas also held talks verizon and lions gate films. the deal fell apart because of disagreements over price and control. trading hub -- the firm is a talk with german regulators about relocating 150 positions from london to frankfurt. but his departure from the union is set for 2019. american airlines is adding hourly flights between new york city and chicago. businessored by travelers. american says free beer and wine will be offered in the main cabin. 60 flights will run every weekday starting april 4. and that is your business flash update. vonnie: coming up, bank earnings. tax cuts help alleviate a rough quarter of trading. the details. this is bloomberg. ♪ "bloombergs is markets." query results this morning. morgan stanley had a strong be 17 and continues into the fourth 2017.r -- a strong our next guest says that overall fundamentals remain positive. exert a vice president and global director of research at kbw is with us from his offices in new york city. but you so much for

today.seeing coolness viacom comcast and discovery, all lower. a miss for verizon but the ceo intoay they are not what acquire a media company. there is speculation that could be the case but certainly cooling-off media companies on the day, finally, perhaps as a bright note, you have it rallying on the day both up about 2%. a asks as bitcoin is percent, perhaps important week, well above 10,000. a lot of volatility for bitcoin to swing below and but -- and above the $10,000 or bitcoin, quite a bit in recent days. bitcoin recently held onto the 100 day moving average. the recent volatility we have seen that range have started to break to the downside. we will see if it can infect hold these levels. it is an interesting one to watch. chatter around the crypto craze. theackground 10,000 is headline. abigail, thank you. let's check on the headlines. mark crumpton. mark: mick mulvaney is also the acting headlet's check on the h. , and says his decision not to seek funds from the federal reserve is an to cripple. to kevin cirilli. to cripple. to kevin

in and viacom was split 2006. a similar push was abandoned last year. subband has ended but he may have to prove to client he still has it. 30% a year between 1992 and 2013 but the firm pleaded guilty to insider trading. he made a player running .72, a family office overseeing $11 million. that is the business update. >> the digital consumer marketplace continues to grow outside of the united states. one of the biggest stories in withl, the ceo sat down the credit squeeze investor summit. >> brazil is not for beginners. vis -- a wise piece of advice. you need to talk about specific business models. you have a huge customer market. many people online, they like to make a lot of changes a year. they like to shop. but there are bottlenecks. there he complex tax systems, a very reliable infrastructure. then you have high competition as well. the best way to tackle that is through the omni channel approach. that, so the way we is playing the dish environment for 17 years now. theys focus in providing experience to the consumer. that is the only way to make m

says he believes the cbs ceo is reluctant to go ahead with some sort of combination between cbs and viacom, something that has been talked about recently. in other asset classes, we are anching race, and this is interesting phenomenon. here is the 10 year yield in blue, and we see that climbing to its highest since early 2014. the dollar continues to push lower and lower. it is relatively unusual to see this kind of a divergence for this long with correlation between the two. it has indeed been falling. one more area we are seeing this risk off sentiment being felt -- two more areas, i should say, is bitcoin, which has fallen 42% in the past month. we have seen the air coming out of that, and marijuana stocks, most of which are in canada, why it is a canadian index. that is down 30% over the past month. it has been soaring, so the more speculative assets are definitely seeing moves. julia: let's get up check on the first word news with mark crumpton. mark: julia, thank you. house republicans have released a memo that they say shows surveillance abuses in the early stages of the fbi's inves

viacom is still trying to figure out what to do. sherry redstone is putting those companies together. that would be the other asset of size out there. sony also has a big movie studio that might be of interest to a buyer, although sony says a are not looking to sell. this is certainly one if you want to make double down in content and go direct to consumers, you can never have too much content. the assets from 21st century fox are attractive. vonnie: this could get interesting. paul sweeney, thank you. nejra: it is time for the bloomberg business flash. glitch is halting delivery of the ap neil. indigo airlines says it suffered three engine shutdowns. whitney has replaced some of the engines. a private equity firm and a dutch pension fund are making a joint bid for a chemicals unit. that is according to the financial times. it is said that the fund would be a minority: investor. -investor. blackstone sold the waldorf. they may be able to own it again. blackstone has had talks about bidding for waldorf. it is being overseen by china'

support all that i've done, even oprah, they have been incredible partners for me, and now moving on to viacom and giving that has happened there. paramount pictures -- i am excited about the next chapter. david: you kept your feet firmly in atlanta, why is that? >> atlanta has always been home to me. this is the promised land and this is where i will build my dreams, and have the support of the governor and the georgia film commission, that is pretty and all this incredible film and cruise coming up in georgia, and so many people -- 9000 people go through the gates outside of our studio working, and has been phenomenal to see. david: the media industry is going through a huge transformation right now and we see it almost every day, particularly over the top with direct to subscriber and computer delivered and video driven on your mobile device actually. how is that affecting your business? how do you prepare for that? tyler: being a content provider has allowed a lot more avenues and revenues because people are consuming content and some of the different ways on some different levels. i'm exc

and we talking about a lowball offer for viacom. traditionally the premium will be 30%, i get the situation is unusual but this sounds like a no hoper. >> five, has done better than cbs -- both stocks are down, as you say. thathink in any situation a discount will seem unusual and something the board wants to kick out right away, but national amusement which controls both of these companies, sherry redstone at the head, she wants to see what happens. explore, although i don't know if she will go for a discounted offer. julia: disney offering to buy sky news to help fox along and comcast lingering around. all fuzzy and good feelings. this has now become all about disney and comcast and they both want those fox assets. comcast along the way, and they are try to deal with themselves by making an offer to sky. this shows how much disney wants those assets and it will go head-to-head with comcast. julia: and help u.k. regulators. julie: who be successful here, disney? >> comcast will not go away quietly. julie: we have options coming up

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

. >> and want to talk about the ongoing viacom situation. a stupidat may be question to both companies are controlled by the same people. >> it is not a stupid question. would seeke what you in real estate all the time. >> what is the problem? why can't they make it happen? >> i think they will but the problem now is she wants to see the merger done but not in a way where the current manager does not get a serious role. she wants him to have it take role in the combined company in the combined company and that seems to be the sticking point. she owns both assets so really, the price is not so relevant here. can force a situation where he gets the senior role and therefore get some management respoibilit i think it will be done. >> why wouldn't she be able to? it is special committee, not something they have agreed to. his current number two holding because sheve now, thinks it is a very different pool of assets and that it would make him perfect for the job. there are other investors in viacom the care about price. talk about that. if you to

cbs, viacom. things are heating up and we may get a resolution. not how it is being laid out now. -- overseer of the company it doesn't feel like it will go that way? >> we are not sure. redstone national amusements, 80% controlling, she is clearly pushing for a merger. i think we will get news about a deal sooner rather than later. clearly the question is, cbs is in the driver seat but they cannot afford to overplay their hand. what most investors would like to see is a combination of these companies without a major premium being paid so it is a credit to shareholders. they are assuming a lot of risk by buying the struggling viacom assets. it has to be a deal, most investors would like to see this company run, and who would succeed? vonnie: what is a solution? this seems to be the sticking point apart from price. yingdiviny dizzying up? >> what might happen, you can be ceo for two years and then bob is the designated ceo next in line. that would cut out joe, the current present coo of cbs. that might be a compromise. wants to run through the inte

up, the latest on cvs, viacom -- cbs viacom. vonnie: time for the bloomberg quick take. in south africa the new president has rekindled hopes in the country by cleaning house. foreign investors have piled into the country. whole show the fortunes are looking up ahead of the national elections. toer taking office he began crack down on corruption. it could take years to undo jacob zuma's legacy. unemployment will likely stay high. it leaves millions without marketable skills. they are also working to calm investors rattled by the decision to allow land grabs without compensation. majority in every election since the end of apartheid. his allies dominated the top leadership. support slip to an all-time low. voters ventured their anger on corruption and unemployment. pressured zuma to resign in february. there are some simple steps to shore up on economy that grew 1.3% last year. they are going to change rules that would make it easier to hire and fire. time for bloomberg business flash, taking a look at things in the news now. deal, science is not an obstacle for a light a

cbsom wants more money from to combine the media companies. .ccording to people familiar viacom wants to raise the bid by 20%. a challenge from sherry redstone whose family controls both companies. is -- the swiss drugmaker agreed to buy for a $.7 billion. theis is involved in treatment of studies for a narrowed degenerative disease caused by genetic defect. facebook data was shared by cambridge analytica, you may find out soon. a detailedll post message on the newsfeed of the 87 million people whose data was swept up in the scandal. plus all users will get a message on how to protect their privacy on the social network. that is your bloomberg business flash. vonnie: let's get a check on how the markets are faring on this monday. steam, thecking up dow and s&p 500 up more than 1%. kome of the movers include merc and applied materials. as well as western digital, they are up. we hasn't down stocks including under armour and so on. -- we have some down stocks including under armour and so on. versuslar strengthening an array of merging -- of emerging-market currencies. you can see the h

finally, a little bit of news on cbs regarding the continued quest for cbs and viacom to do a deal. there is a report this morning that sherry redstone might fire les moonves from cbs if there is no deal. you saw the stocks fall on that. it might just be part of the jockeying and pressure on moonves to get a deal done. down 1.4%. mark? mark: julie, serious concerns weighing on european equities. you can see all the indices are trading lower in the far left hand side. these other currencies that are rising. a couple falling against the dollar. bond yields are getting. commodities are rising as well. that gives you a field for the market on this side of the pond. tesco reporting an increase in profits. britain's biggest retailer mitigating the brexit fuel surge. adjusted operating profit rising 28% in the last year, narrowly beating expectations. a stable performance in the core domestic business will reach are investors that the governor is well set to focus on integrating. tesco shares are up 5.8% today. bucking the trend, every 50, 6 .5% lower. this is the swiss producer of chocola

cbs has done much better since the split dan viacom has -- than viacom has. different businesses. you don't know whether the combined company would have a better value or not. now the majority owner wants to get it to get together. i'm not sure cbs wanted to. viacom needs to do something because they continue to erode business from their media properties and we still have not seen shareholder value, at least much greeted their -- created there, whereas with cbs we have. who is going to run it, who will be the number two? sort of theme are we going to take in running the combined company? i'm not sure cbs needs it. both of these theoretically standalones are getting too small in the media space with the consolidation going on, and both could be bolt ons for somebody else. we are not necessarily sure whether a merger makes the most sense for our position either. we continue to look at it. vonnie: that is the word on the street, that cbs is perhaps not as interested as it may seem given they made a bid for viacom . why wouldn't it be a good idea? viacom has been involved in a rapid t

viacom among them. two and 3% respectively. this is bloomberg. ♪ mark: this is bloomberg markets. vonnie: from new york, i'm vonnie quinn. moment with taylor riggs focusing on municipal bonds. taylor. >> all eyes are on that 3% treasury yield. that is what we are focusing on. joining me to discuss, the senior portfolio manager. how much are the new yields being pressured from the 10 year treasury hitting 3%? the 10 year is stuck at 2:50 level. >> i like to remind people that although they sometimes have , all own vibe and diverge year long every major fix income is posting negative total returns. downhe bloomberg index is 140 basis points. they have posted negative returns but have outperformed a lot of taxable fixed income on the year. flows are getting somewhat better constructed. funds are still hitting inflows. perhaps investors are attracted by what they have received. >> high-yield seems to be holding up. where are you constructive on high-yield right now? >> within high-yield we have , it hasacco outperformed for some time. some stuff athas the area we have seen. universe h