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

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

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

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

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, 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

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

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

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

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

viacom 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

. >> well, time warner will then have to come back and viacom. the stocks all vie for shareholders. when they buy back stock, there's a lot of just sultry buybacks. not less moonves. he's saying, hey, take it up to $64. >> at will. >> it's actually sumner. >> i used to do buybacks when i was at goldman. buy 50,000. i think that some of these media executives when the market's down, they are just standing there and buying. you seem to be mesmerized by captain america. >> camera's over this way. >> i'm not familiar with him and so i was taking a look. it's a movie star. he's bearded kind of like the washington nationals watching the mets lose yesterday, every one of those guys has a beard. >> only you could relate and work the mets in. >> it was painful. >> that was a great comeback, oh, wait for the nationals yesterday, yeah. yeah. that was a rough game. >> it was. i mean, yeah, you got to get -- these games, you know, i had the phillies day game and, you know, we were up by six after the first. of course, we were behind immediately. but we did win. did win. >> anyway, we'll see if p

because the stock market is proving to be pretty much of a winner great to see that even after the viacom fiasco, that the money came in, i was so fearful, and jay clayton talked about it, the former s.e.c. chairman was saying, people should have gotten in earlier and they want more education and they know that, and it was a clarion call, good message, and i'm glad that people didn't dessert the stock market, carl there's a lot of money being made >> yes, indeed, jim. the question is whether or not it continuesto revolve around rotation or whether or not we can ride the same kinds of trades that got us here in the last thousand points or whether it's a mix of the two. >> a little bit of a mix i still want to say the cyclicals will have the best numbers when we see them the spacs have hurt what i think is kind of the great growth cohort i noticed cathie wood getting a lot of money in. and if there's 500 million shares of amc and the stock is only down 50 cents, of course, not to do it all at once, carl, that is a pretty telling sign that the market's got resilience. >> yes great interview.

puts in perspective, we have a quick quote from younger when viacom responds to cbs and said it needs to be higher, normally we'd expect cbs to say no thanks good luck on your own. what the heck is going on there? >> absolutely nothing other than this opsoap opera. >> that's the key thing. it's the key thing it's the future. >> by the way, bernstein, thinks there's an 80% chance it happens. >> "black panther" no one talks about this they have cbs. no one talks about that. what they talk about is netflix and subscriber growth. i remember when netflix was 25 million, david and everybody laughed. not unlike the breakthrough scene with john travolta. >> "black panther" is the third highest grossing film. adjust for inflation 34 is a crazy number. >> hasbro didn't have enough black panther toys. >> this was bob iegers. >> add it to the franchise list. that list gets longer and longer. >> did someone stop subscribing to espn yesterday. it changes your narrative as a person who dropped it. >> yes there was one. it's all about that person today who dropped the subscription not the "black pant

they're supposed to counter viacom with a bid that is higher than .55, that's what it offered. but not much higher. and issue is the expected cost synergy both sides see as attainable people close to viacom's special committee tell me they believe there are cost synergies as much as a billion dollars in the presentation to cbs, they identified the high point of cost savings at $770 million now cbs, as i reported yesterday, is cost synergies closer to $500 million finally, to give you a sense of how far each side is on value, it's instructive to know that cbs' management team decided against presenting their views on synergies to viacom's special committee because their views were so far below that of viacom's management long-term plan, they thought it would be insulting and counter productive to getting any deal done to actually do that guys, i come back to this time and again. because it's already so unusual. it's going to go from unusual to extraordinary if redstone -- it appears given how likely it would be attractable moves to impose her will. >> but you're saying is just s

interesting "journal" story today on viacom and its former chairman, sumner redstone and his health. a long history of the relationship between philippe dauman and mr. redstone. indicating something we talked about here a number of times, which is the inability of mr. redstone to fully communicate. the story itself seeming to indicate whether he was in favor of against the recent efforts by the company to raise outside capital to put a valuation on paramount. those efforts are continuing. people familiar with the situation tell me they're looking for an investment that could top as much as $1 billions that would have the effect of giving paramount itself a value of roughly $5 billion, spending most of their time looking in china for that investment. the story itself, shining light yet again on the health of mr. redstone, his ability to communicate his desires or whether or not he's truly competent. on that note i should mention reuters -- i have no idea if this is accurate -- saying talks to settle a lawsuit regarding his competency that were brought by his ex-girlfriend have stalled

but the role of morgan stanley as both underwriter, lead underwriter of the deal at 85 for viacom, while they had this enormous position here that they were really beginning to unload, fascinating, not to mention all of the fees that prime brokers was taking in, guys, and that remains a key here as well as to why these companies wanted to do business with them, despite what was behavior that, well, we still can't understand it all. carl >> yeah, certainly will be a question for the earnings of goldman and morgan stanley coming up later in the week. not only do we have the ceos of microsoft and nuance on that huge deal this morning, not only do we have calls on the airlines and tesla and chipotle, but stay tuned today for a brand new show on cnbc. "tech check" premieres at 11:00 a.m. eastern time this morning our guests include uber's ceo, with some new data on mobility, intel's pat gelsinger obviously about the chip summit at the white house and linked in founder, "tech check" premieres today 11:00 a.m. eastern back in a minute this is how you become the best! [music: “you're the bestâ

. >> listen, for quite a while, it was really working for discover and viacom for archegos and the reason we're mentioning this again is because it does appear that they have finally, finally sold out of everything that was left in terms of liquidating from the swaps and the positions that went bad, credit suisse with a write-down, fired people. one would have thought they were already past it, but late yesterday, we reported, oh, no, 22 million discovery c's for sale, 19% of the a's, and they got done, jim, it got done but again, you had plenty of people in there shorting the stock which finally gave it up as it went up 100% and viacom went up well over 100% both have come down sharply. though discovery has held up better let me tell you where those got done i think they're written down somewhere. 323 3235 on the c's and 3840 on the a's. so you can see, we're already bouncing where they finally sold but to expect that yesterday, you would see even more, another billion and a half dollars worth of stock, jim, it's quite a story. >> well, i think that also, at this point, textbook, about h

underwriter of what may have caused in part of the entire implosion to begin with, that stock sale of viacom, at $85 a share, interesting of course, prime broker, getting ready at morgan stanley, to sell stuff out at the same time, they're selling stock, that they thought originally archegos might actually step up to buy a lot of, of course that ended up not being the case there is a fire wall there, although you have to believe that the senior levels of management, they certainly knew what was going on in capital markets, and in the prime brokerage, jim very interesting >> yes, look, this is, this is the disaster that keeps giving, david. >> yes. >> i was shocked at the 911 million. i had thought that morgan stanley acted with alacrity, but this thing was just a disease. it was a pandemic. remember, this was the guy who had the mental quarantine, david, and there are still people who want to give him money. julian robertson says he wants to give him money and he should give him money to repay morgan stanley. >> the loss, it's almost a billion, morgan stanley, 2 billion nomura, 4.7 billion c

you can look at viacom scripps, amc. i bring disney not because it will be marginalized, but espn is considered such a core for so many of these bundles, despite how much money they charge. what's interesting is the impact not as large on those that provide it. we are owned by comcast. we always need to point that out. it's not a particularly profitable service to bring content because they are paying all the content providers that bring it to you. margins however, marginal cost for a new broadband subscriber, that's zero. that's why that business is so much more important. that's perhaps why that part of the business is getting particular scrutiny from anti-trust regulators as they continue to look at comcast's plan to buy time warner cable where. we go from here the bundle itself can be economical for many consumers when you get to a certain price point. ott offerings starting to pro-life late. over the top offering. sling tv from dish is one of them. we'll see what apple tv comes with. that could be very important. ho

get international and you don't give us anything and you talk about how they can borrow cheaper than viacom, what i felt the way i would have done the call if i had to do it is say hbo has a huge number of subscribers and look out, we are catching up. that shows you how big the universe is. i know they said there's still a lot of time people can look at things and just scratch the surface, but they needed to say, look, bear with us. instead of saying we're doing great. a bear with us call would have made me smile, david. instead i'm frowning. >> does that mean that you would be and you should be a seller of the shares? >> no, no. >> rich greenfield is out this morning saying, look, before you sell the shares you got to, you know, think about things, legacy media is the one who should be afraid. >> david, i'm agreeing with greenfield, is that going to hurt my career? >> i don't know, you know, jim, greenfield bagged a bunch of people in this name. didn't he just operate last week? >> that's why i said i'm a little defensive here. but i do think, you know, the world is their oyster still. and

i have been reporting on cvs and viacom and whether they can reach a transaction. here's an area you have a lot of experience in. nfl rights, they are up in 22 for cbs. you have to start negotiating well ahead of time what's your sense there in terms of where they are going, how much people are going to pay, new competitors and the likes of whether it's amazon or others in the fray does it get tougher if you're cbs to keep a franchise like that >> cbs has long been a stall worth. they have paid up every single time to get as much access as they can i would get they will continue to do that it's really very expensive in terms of new people coming in, the nfl seems to be encouraging that they are doing it themselves they are taking on a lot of games themselves amazon may be a bidder for more than a small piece of it i think they will be open to lots of different bids it will all be expensive >> any calls, my predictions from you on at&t and time warner taking the stand today and depending on the decision you think we get how does that color the future of media >> i h

can you do without viacom? do you need mtv, nickalodeon, b.e.t. >> the argument is failure to reinvest in those franchises has caused long-term problems. kind of what they're saying about yahoo today. >> i got so much to say about yahoo. >> the section of the company's troubles on the front page of "the washington post" saying all that. >> we can talk hours about yahoo and we typically have. there are a couple things pat comes out with 40, 49, obviously there's bidding. i thought it was interesting these guys remember when she came back and talked about the boomeran boomerangs? a boomerang is a boomerang because the number of people that they're firing, i mean, they're very proud that they only -- well, they obviously feel badly for firing people, but down 22% in head count year over year, down 42% since 2012. you know, a lot of times -- they have this maifens mobile video native social that slowed dramatically. >> the growth in it slowed dramatically. 390 million versus 365 million. last time we had her on in

viacom and dish, viacom shares down sharply in part on concerns as of midnight last night, the viacom network, comedy central, nickelodeon, would no longer be on dish, they would be blacked out. yesterday a conference call on which the ceo of dish made comments that were more positive saying last week i would say my impression was i didn't see a path with viacom. i think the tone on both sides for viacom and dish has been more productive through the weekend and this week so there actually probably is a pathway to continue carriage. i can tell you this morning, they are very close to a deal. you may see that deal see the light of today by the end of he can retrade a deal 100 times in ten minutes iffy he wants to try but if viacom is successful, as does appear to be the case in signing up dish for another long-term agreement, it will have signed up over the last year at&t direct, charter, viacom, mediacom. it will have those networks on all the imagine platforms. now, whether or not they can get the ratings to justify the advertising, whether or not they'll have has many eyeballs watch

. >> carl, and then obviously, by the way, i don't know if you saw, discovery and viacom had good - >> i was going to say. >> i said that and then immediately on twitter people said are you kidding? no, no, no but the one thing that is certain is that there's always another part of this thing and i don't know whether we're done i don't know whether we're done. >> i mean i think we're there. >> with other firms. >> morgan stanley, goldman sachs, credit suisse, ubs, wells fargo, nomura and by the way, there are other firms and seven or eight relationship, and what he was doing, carl, was shocks, somewhat irrational and it seems to have worked for him in the past because he had an enormous family - >> did anyone have a vaccine against him -- >> jpmorgan? >> moderna. >> credit suisse, said just a few months ago played aggressive on brokerage and spacs and equities and brings to mind the goldman note this morning. it comes screeching to a halt. we will talk to southwest gary kelly about the company's results and he believes the worst is behind us regarding weakness in travel demand. >> fir

the viacoms of the world will say we're not going to be an issue. keep an eye on time warner and hbo, and the margins are better than netflix. you talk about how they could potentially raise it. >> who would notice? get as many subscribers as you can, but one has to wonder whether one operating with the business margin. >> they have leverage. i've been waiting for netflix to have leverage which is their costs coming down a little and their viewers are going up. >> carl, are you even sensitive to the price you pay with your netflix? >> with this new product offering of multiple streams for the family and you might crack down with those sharing a password with another account. if you want to watch four simultaneous streams and people getting a kick out of it. >> it's now worth $1.1 billion or more. >> isn't that fabulous? >> incredible. >> people saying at the time he bought he might not have been thinking he might have hung on this long as a pure play. is icahn a new value investor? that's the new running joke this morning. >> one of his great invest

. >> got viacom properties when dora migrated, little by little. bezos chipping away. >> true but didn't he say -- >> exactly. >> talked about that yesterday. >> virtual rain forest. >> echo system. >> you want amazon prime, us, you want a number of different offerings and then you can pull out your cable. >> don't you want cbs and abc? >> you can put up your rabbit ears given what the apparently how the supreme court -- >> wow. >> argument went yesterday. >> television. >> you want to put on your rabbit ears. >> justice scalia needs not to get out more but go home more. >> how about roberts is brilliant. i love the quote. your technological model based on circumventing legal prohibitions you don't want to comply with. my prediction here, roberts prevails. he's a really smart guy. >> he is writing the decision. >> great guy. >> arguments yesterday we will not get the decision from the supreme court until i believe it's june usually when -- >> i'm giving it to you now. >> let's move on -- >> can we get them like roccrow roku. >>. >> we're watching s

i know that there had been hope in some parts, certainly at viacom to get them done as quickly as possible, trying to put that question aside for them and say, hey, we got it done look at that >> david, you know how long it's been since you mentioned viacom? you put the kibosh on it at 30 that's not a 2 for 1 split, david. you back that -- by the way, that's in the oxford english dictionary, bakish >> is that >> yeah. there's a good chart like when you come off k2 the wrong way. >> it's bounced well off the bottom >> yeah. yeah super, dave. super. i daved you. i have not daved you in ages >> you have not daved me in a while. super dave, remember that guy? yeah >> super dave osborne, the best? are you kidding me that was great >> jim -- >> yeah. >> we have not touched on boeing bloomberg saying they're pacing for layoffs next week, cutting 787 production the "journal" today that the virus is delaying the approval process for the max. >> david port nnoy, noted analyt says he wants to punch boeing in the face david portnoy, you don't know him? >> punch boeing in the face? >> if it were a pers

-- i don't know viacom reported earnings this morning. remember they moved this up the earnings day people thought well because they're going to show that the turn around remains in place that's largely what you're seeing it was a perfectly good quarter. network revenue was up 1%. domestic advertising up 3% international seemed to be relatively solid though it did get a boost from foreign exchange film revenue, you know, paramount struggled. have you seen "the quiet place" it hasn't figured into these numbers. it is the first they've had since "the god father. >> swung paramount to the black for the quarter. >> wow. >> big move. >> wow. >> and those numbers reflect in the current quarter. but as we know, the story here, of course, is the continued conversations or negotiations between the special committees of viacom and cbs about a deal under which cbs would acquire viacom they continue to talk. they continue to go back and forth on economics it continues to be about something that has nothing to do with economics which is namely leslie

philippe dauman is president and ceo of viacom. by the way, viacom has earnings tomorrow and i know you'll be speaking to my colleague, julia boorstin, about that. >> i will. >> there is perhaps no better time for financial literacy. were you trying to teach something that will, i don't know, ostensibly change the financial literacy in this country, the understanding of banks and how they work, so we try to avoid a full-blown crisis in the future? >> we're really trying to improve the state of public education in america. we created this foundation, the get schooled foundation, with the bill and melinda gates foundation, and we're trying to shine a light on great teachers, great students, and ways that we can really bring up the level of financial literacy and literacy in general and really encourage kids to go to college, get through college and improve this country's competitive neness. >> you see people question authority. a lot of people now want to say borrowers took on more than they could afford, and maybe some did so purpos

you can't go to viacom. if you were a consume product companies have to go to facebook if they want to get the word out. don't forget, facebook's integrated ads are actually liked. we're going too do fast load. >> facebook is the dominant platform in this world. this idea it will be the first place a lot of people go to consume media is a key consideration. it's got to be for the likes of viacom and everybody else. we're still dealing with the question of the bundle falling apart, though they did that dish deal last week and viacom up dramatically when they announced that new deal with dish. >> there's a moment when you go through the facebook hall where they talk about facebook live and they say anchors on tv sometimes get more viewers than they do on tv, facebook live. if they can curate questions on facebook live, it would be interactive tv. that's what they want to do, interactive tv. >> and viacom is not interactive. >> and they don't even have to pay a lot for it. they're not paying much for the conten

but did the "jersey shore" crew help lose viacom's bottom line? the ceo is fresh off the company's conference call, joining "squawk on the street." >> maybe if they used aquanet for that hairspray, they helped save the bottom line. >> they don't use hairspray. >> she just had hairspray, snooki did. >> i'm sorry. the women use hairspray. the men use hair gel. >> go vote in the street poll, please. who do you trust less, wall street or congress? squawkonthestreet.cnbc.com. it's another big poll for us. thousands of you responding. please let us know your vote. we'll be back. national car rental knows i'm picky. so, at national, i go right past the counter... and you get to choose any car in the aisle. choose any car? you cannot be serious! okay. seriously, you choose. go national. go like a pro. >>> welcome back to "squawk on the street." i'm julia boorstin. shares of viacom shares trading higher after posting earnings that beat expectations, now up a little bit more than 2%. earnings rising 38% over last year, though revenue came in 4% less than a

. >> you know in my world the best performing stock in the first quarter was viacom. >> i know. by the way, good deal not to sell it to cbs which was unwilling to pay much of a premium at all. the stock was well beyond what cbs would have envisioned to pay -- >> that's your world, huh? >> the two companies get together. >> that's your world. mine is kirby's fourth world. >> if you had bought that stock when bob took over, you're very happy. >> viacom and cbs. remember, there's a scarceity value because of time warner buying back the stocks. >> i think a double grade. double grade. although time warner is trading well below the implied price of the deal. now that you mention that. >> by the way, guys, auto parts makers are leading the list of losers too. carmax, autozone. >> and there were positive notes and there were bad things said about the auto parts -- the auto parts stores. carmax, wow. being assassinated there. that's remember new and used. auto sales has a big buy back. i would not sell that down here. they come in at 10:00. they start buying you're going to look a littl

when we come back, david has new details on cbs' offer for viacom gains are eroding. facebook removed from the u.s. one list you know, i used to be good at this. then you turn 40 and everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade. >>> time for etf spotlight dom chu taking a look at some of the etf with the most exposure to amazon. >> many traders and investors are exposed to the effects of amazon stock simply because of the hefty weighting it has on the broader indices. if you hold more industry and sector-specific funds, the amazon influence could be a lot higher for example, the spydr discretionary index, amazon makes up about 20% of that fund alone, by far the biggest

a quarter of the s&p reporting earnings, the likes of gm, time warner, viacom, as well as a slew of data as well as big meetings. we're back in a moment. this is $100,000. we asked total strangers to watch it for us. thank you so much, i appreciate it, i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money ? if your bank takes more money than a stranger, you need an ally. ally bank. no nonsense. just people sense. >>> welcome back to "squawk on the street." i'm rick santelli on the floor of the krm meshgs group. as you look at the intraday and longer-term charts of our ten, concern about the issues of europe. our ten-year note yield hasn't pushed back much. but hovering close to 1.90. you've heard all the issues, spain being in recession a group of other countries. we'll have the chicago purchasing managers' survey. will it follow the same better-than-expected income number by a bit that we saw this morning? melissa lee, back to you. >> thank you, rick santelli. >>> microsoft's investing big money in barnes & noble's e-reader business. that

i guess we can start off with the viacom. don't forget they announced that re restructuring a couple weeks back. writing down a number of shows they had on there. networks, as well. cutting jobs. they reported what was in line in terms of cable network results. advertising declines. currency did impact them. overall you had that large restructure which did have that impact. they did seem to be ahead of some estimates. looking here. they do appear to have been ahead there. higher equity income. a number of other things. generally not a bad quarter at viacom. stock not doing much. sumner redstone was on the call in listening mode. they tell you he is listening. as for time warner cable, speaking of rob marcus about 40 minutes from now, the ceo -- >> how did you get in? >> i kind of didn't. that is a story for another day. we are happy to have him and he will be here at the new york stock exchange. they made a lot of progress in terms of at least getting their physical plant in order. when you are sort of off the radar because e

know that's why i say you can coordinate because the buybacks in the s&p are cbs, it's time warner, viacom. did you see that david letterman called -- >> leslie moonves. >> the owner. >> the man who owns. >> owns the network. >> leslie does own a lot of stock but that's not quite correct. in david's mind he probably is. >> but there -- yeah, master/slave there. how much did letterman make last year? there is tightness in the s&p because there's not a lot of supply because the insiders don't own like what these guys do over at nasdaq. >> right. >> hundreds of thousands of shares if you look into of the selling. if you hit up the news of one of these stocks, i won't be too much on my soapbox, but it's so much like 2000, scary. oh, 150,000 shares filed, do this, 2200. >> and we went with the biotechs it's not like 2000, the multiples aren't anywhere where they were near, jim. the companies are all profitable. >> no, they're not, david. >> the ratio that are not profitable is higher than in 2000. >> they are talking about -- >> not the facebooks of the world, then. when you say 2000 -- >> face

viacom's committee says are you kidding? no thanks. they did not know it was a real offer because it was not written down it was communicated orally during a meeting viacom by the way in looking at what it believes of the unadjusted stock prices of both companies based on all the news that was out available and where the ratio between the two traded, they think that's .62. they believe a market ratio if you want to call it that's .62 and they want more than that they have been asked by cbs to counter and i am told by people familiar with the situation at viacom will offer a counter offer to the .55 they received from cbs viacom also believes that there is as much as a billion dollars in cost synergies. so .55 they believe .62 is the market ratio. they want more than that they're going to counter we'll see where they end up. as i reported yesterday even if they were to agree somehow to a price, given they are fairly apart right now. there is another issue which comes to the floor and more significant impediment to a potential deal at le

. >> let's check out shares of viacom. an appeals court has reinstated a $1 billion lawsuit against google. the suit accuses google's youtube unit of video piracy. the original suit was dismissed a couple of years ago but the ruling says the lower court must determine if youtube was willfully blind to infringement so the story by viacom and google continues. meantime, cons selllation brands beating estimates in its fourth quarter this morning. shares of stz currently lower, one of the worst performers on the s&p 500, down a little more than 13%. 2141. time ramey is vice president and senior research analyst at difficult. a. davidson and rates constellation brands a buy with a $30 price target. good morning, tim. >> good morning, carl. >> what explains the weakness today? >> about an hour ago i was ready to throw up on the low guidance that they have put out, but i feel a whole lot bert after the conference call. this is really all about them deciding that it's time to term out a big slug of their debt. we don't know how mu

. >> on the letter real quickly this week, i've been covering a lot of cbs viacom the stock is down a little bit the counteroffer has yet to be made yet as we reported yesterday, viacom wants something in excess of .62 but the key continues to be this battle and that's what it really is becoming between sherry redstone and leslie, they don't want to paint it that way. special committee says it's supportive of leslie having joe, the number two and wants it that wei way. it's shari versus leslie, that's what it's going to be. >> one is an owner and one is an employee. >> i will give you that last word there on that it's a perfect place to end. >> i'm trying to recall when a employee was able to trump the owner. i mean, even though i always felt he's one of those guys for life, no chinese premiere, jamie dimon, les. anybody who first name -- they can do it for life. >> for life. >> first name analysis. >> we thought lloyd might be but he wasn't. >> boeing, jp are leading the dow up 133 let's get to bob pisani. >> nice open today and it's the old growth story back looks like early january

wang to have the mick performance of viacom stock. why, jim, anybody would want to own 30 or 40% of the market cap of this company, even from a risk management perspective, is still a key question we don't know the answer to it what we do know is that viacom has returned to levels that many would argue are more at least based on the underlying fundamentals of the company at this point as has discovery as well i mean jim, i think when the total return swap market, he was by far the largest single player without a doubt. >> well, i think people say firstly, when do you those kind of awkward transactions, the commissions are amazing, so in some ways do you want to look the other way. jpmorgan was not willing to look the other way, didn't want to deal with the business, and also found his character may be called into question, remember, what i found amazing is he used multiple prime brokers, so they really didn't know, none of these actually had a, from as far as i can tell, from these were all above board, was he a personal gamestop, did

archegos had so much viacom. and credit suisse must have known they had it. how could they not have finished their viacom were they hoping for a bounce? i think they were literally hoping for a bounce. which is just elemental that you don't do that. remember when tencent and goldman blew it out -- i i thought there was some rule that made it that there was some seller that was just orchestrated by the government no it was goldman saying look we don't care what price you get out. -- a joke. >> credit suisse owned, i think they were down 55 million. again this is archegos economic control but i think may may have blown -- maybe they did get out because we didn't see any big block trades of it yesterday but your point is well taken by the way credit suisse has been doing really well on investment banking. a leaders in spacss skpsmts advising a decent amount of deals in terms of m and a. this though has just come back to crush them. and of course they have dismissed a number of people associated with it but it never

viacom is the cheapest stock in the group. they have not done the cost-cutting, maybe, on the margin that a time warner has done in the business called rock band, which has lost a lot of money for them. >> right. >> they have not announced a buyback or dividend strategy. so, there's more good stuff to come, and i would basically agree with david. we've been saying to people over the last couple months, i think the stock has shown that, that as the group has been strong, the laggards have been of viacom the gap between that and the pure plays are so wide that targets see viacom not working given $3 or so of earnings next year. >> all right. i'll bring you both back in six months and see if you're right. michael nathanson, david bank, thanks to you both. >> thanks. >>> just ahead, recovery.gov -- that is the ultimate source, because that is the white house -- says 40% of the stimulus have been paid out. there's a little bit more signs now that the crocus or the green shoots are becoming real flowers. so, should we not spend the

cramer i'm going hit viacom. the shares, by the way, yesterday when the news came out after the bell viacom's taking a charge of $785 million and suspending its buyback, many might have thought the stock would be down sharply. it's not. down less than 1%. still the news is interesting to focus on in part because it may at least give a sense of larger trends though some say it's specific to viacom itself. the charge itself much of it $430 million of it is coming from writing down essentially what used to be the expected life of your produced series that go into syndication. in this case for example, csi, community, entourage, they don't have as long a life as they used to. why? netflix. they don't go into cindysyndication and produce the same profitability over a longer period of time. so the write-downs to a certain extent in programming of that the 785 million are related to that, and also related to competitive reality programming, which again they have to burn off after speaking to management over as little as

there were expected to be depositions of his daughter, sherry, and the ceo and chairman of viacom. those did not take place. and now we have the settlement with the los angeles superior court judge overseeing the case expected to review the settlement by the end of this week. simon? >> thank you very much. >>> jpmorgan's ceo jamie dimon out with his annual letter saying lower liquidity and higher volatility are here to stay. and separately, that he's not satisfied by jpmorgan's stock performance. he also defended the bank's balance sheet -- "jpmorgan chase alone has enough loss absorbing resources to bear all the losses assumed by the comprehensive capital analysis and review of the 31 largest banks in the united states." separately, of course, in the financial industry, brokers, mutual fund salesmen and insurers are coming to grips with tough, new rules that demand managers of retirement accounts put their customers' interests above their own. the white house seeking to drive what it believes are billions of dollars of hidden commissions out of the 401(k) and i.r.a. systems, incen

. >> well, how about - >> how about viacom. >> how about viacom? >> i was going there. >> how much more do you think they have -- >> i don't think, that's what i was going to say, i'm looking back, they did that 34 million shares at 41.25, jim an upgrade today, right, carl? a couple of positive notes discovery also by the way moving so maybe they bottomed we'll see. but 41.25, jim, seems to be where they managed to bottom. >> and i've heard, we've gone through, morgan stanley, goldman sachs, credit suisse, i've heard on sunday night, ubs was a seller of some viacom, and one other, and bsx, another one of those names, so this archegos situation, here we are, whatever it is, ten, 12 days later, still going on and we have only begun to understand it. >> what kind of fees were they paying i'm sure they were jammed with a lot of this stuff. jpmorgan didn't play >> no. they didn't. they didn't. they did not participate in that >> so what do you make of that >> they were not there well, it's good risk management on their part. >> that's what i think. >> t

and i would stick with my viacom just because i think the cash flows and everything's working. so, two different worlds. technology on both, one dealing with natural gas and the other one dealing with entertainment. >> thank you, mario, as always. >> carlos, michelle and andrew. >> make sure you join us tomorrow. "squawk on the street's" coming up next. >>> welcome to "squawk on the street." breaking news, from china to los angeles, from chicago to capitol hill. our live team coverage begins with mary thompson in washington, former treasury secretary bob rubin and former citigroup ceo chuck prince making their first comments on the financial crisis. good morning, mary. >> reporter: good morning to you, erin. both men testifying before the financial crisis inquiry commission today. the focus of today's hearing, subprime lending and securitization. both rubin and prince offering apologies of the sort in their prepared testimonies. prince, ceo from 2003 to 2007, says he's deeply sorry citi's management was not more prescient in seeing the growing threats to the system. he also tal

company would be coming from viacom. 49% of the cash flow would be coming from viacom but the market wants to put a lower multiple on that they feel it's less reliable cbs did a lot of due diligence didn't believe the projections they were hearing from viacom. by the way, also seems to be a big gap in terms of their view cost synergies people close to viacom believe there's as much as a billion dollars in cost signer gis not just revenue cost synergies they can deliver here cbs people close to them say it's way off that's what they told me way off. they don't see it anywhere near a billion dollars, as you might imagine. of course, that comes back to what they believe is a fair ratio in terms of what they should be paying, again, an the urging of their controlling shareholder to acquire viacom. much of this is going to come back what i reported a week ago, which is this almost -- almost attractable situation in which you have a controlling shareholder who wants bob backish as number two and the current ceo very successful ceo leslie moons have of cbs wants joe as number two. what you'

viacom warning that it's results would be impacted by that films underperformance which prompted analyst downgrades. this morning they reported arn 11% decline claiming it that sent shares plummeting. other disappointments have disney's alice through the looking glass and fox's ice age collision course had the worst opening weekend. and top two performing films were disney finding dory and captain america civil war. the bar is higher than ever and from netflix one movie that might have the draw this weekend isn't a sequel. warner brothers suicide squad. back to you. >> julia, thank you very much. i want to show you what's going on with the markets right now. we are looking at the dow pretty much flat. it's being weighed town by exxon and chevron and energy is the wrs performing group right now. the best performing is health care along with consumer d discretoinary and the s&p 500 fatti flattish to higher. we'll have more when we come right back. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at m

viacom down. the loss of market over yaall. led by disney. a bit of a rebound on friday for some names. a bit of a follow through right now. we'll be watching closely. time warner regaining its foothold in the 80s at $81.57. >> that bounced back harder than the others. >> fox down. we mentioned value, they own a lot of fox. >> the movie, was apparently not fantastic. >> it's been challenged in the -- >> you're such a diplomat. >> netflix is up. you mentioned the steeple call. i don't think that's a street high quite yet. >> this is in a new one for me. i've been watching companies based on a 2020 earnings. the analysts have been positive on the tesla 2020 forecast. this one today steve folds using a 202,480 million subs. you we're getting into it. >> 2024 is a ways away. >> in the -- >> did you see morgan stanley says in terms of u.s. ad revenue, facebook will outpace disney by 2016, youtube will take over viacom time warner by 2017. >> i was knocked off my chair last week when they said they've shifted 25% of their ad budget online. they dir