managing the game plan into the green. the technical resistance level but we are on top a point now. fairly remarkable we scarlet: managed to rally into the close. to higher, less than one point higher, but extending the overall streak. joe: this is not a whole lot of action either way. the s&p ending unchanged. we have been talking about the weakness in that area. the only sector that moved meaningfully, health care down 1.2%. caroline: the numbers coming out on rite aid. let's delve deeper with our markets reporter. what are we watching? abigail: a chart we haven't taken a look at in a few weeks. the real fear index.

early last year, the investors asleep at the wheel during the complacency at all-time highs, and then kind of getting some protection into and ahead of the big selloff in the fourth quarter. right now, a huge divergence between this index and the s&p 500. fed pivot really helping out the s&p 500. season,, similar to what phil orlando was saying, not a quarter of results, but spec patience and guidance. otherwise, you may have more complacency that we have right now for both the true index and the vix. looking at one of the worst performers on the day, ebay, after a pretty stellar performance year-to-date. yesterday' iss of close it was up 34%.

the weakness appears to come from the markets business, showing a notable deceleration in the marketplace business in the first quarter. we will not get confirmation of that until we get earnings from ebay later in the month, but investors don't like how well the competition is doing. jeff bezos said in his investment letter today that third-party sales accounted for 68% of all company sales last year, a record for amazon and 2% higher than 2017. romaine: one of the hottest sectors we have seen recently, the payment sector. square shares up 1%, paypal shares down 1%, a lot of this predicated on a note by nomura, ising square's cash app widening the user gap with paypal's venmo. venmo, and the

gap has been widening. the companies are competing for a lot of the same customers. square is not only outperforming paypal, but has outperformed paypal year-to-date and over the last year. scarlet: thank you so much. still with us is phil orlando, of federated investors, and bloomberg's sarah ponczek. looking at the market now, people are calling it fully valued. where do you see evaluations? fine.valuations look going back to the fourth quarter, the 20% decline, we multiple at the top of the market to 14 on christmas eve. in our view, that was inappropriate, stocks were oversold and bonds and the vix were overbought. now we are getting balance, up

23% from christmas eve. to 16,tiple has expanded 16 .5. in our view, the 18 multiple at the top of the market was in exactly the right place, and we know that because of where inflation is. are pc at 1.8%, suggesting multiple of slightly over 18 times earnings is where we need to get to. over the course of the year, we think the market will grind higher with a little expansion. joe: you mentioned the significance of earnings season, and watching to see a second-half rebound. what sectors do you expect to see us lead, showing the most promise? phil: the areas where we see the best growth and still the best cyclical, industrials, areas. in the small caps space, generally we think that is very attractive. international emerging markets, the way we play that. caroline: sarah, from your

perspective. joe asked a great question yesterday that i want to re-as k to you. joe: thank you. [laughter] caroline: what is everyone going to talk about this earnings season? margins, trade -- what is going to be the general discussion point? sarah: a lot of the focus has been on margins and guidance. i know we say that heading into every earnings season, that guidance is important, pay attention to the guidance. but especially this time around, when you consider that full-year earnings growth is expected to be 5%, largely because of the first quarter and a fourth quarter rebound. so if for some reason we see guidance deteriorating a bit, to the point where that 8.5% isn't realistic, that could be a problem. phil: and we haven't had a

negative quarter in quite some time. we want to know exactly how bad this quarter is, and how sustainable is the downturn going to be. if we are going to pivot quickly back toa positive trajectory, the street needs to know that, and to some degree that's why we are sort of hanging out here. joe: part of the story from a company and macro perspective is weakness from abroad. imf forecasting the rest of the world looking pretty weak relative to the u.s. how do you think about exposure? when you look at sectors or companies, are you actively thinking -- scarlet: some breaking news on j. crew, another ipo potentially in the making. madewell, one of their key brands, discussing a potential ipo of that part of the business. a strategy update as well, looking at a new interim ceo, michael j. nicholson. more food for thought. scarlet: is this the ideal time to ipo? phil: from a company

perspective. we are up 23%. 1.5% off an all-time record high, so a company would say it is a great time. from the investor perspective, we can use the lyft example, sometimes companies get too greedy and price the shares too high. how much is lyft down over the last few weeks, 20% or so? sitting with your investment banking team, you need to price the deal correctly to leave something on the table so investors can benefit. bears get money, money, but pigs get slaughtered. [laughter] joe: the international exposure? phil: we are concerned about growth in japan and europe. for that reason, we are neutral, edging to underperform in japan. the reason we like emerging markets, we think that's the

area with the best growth and best valuation. but you look at japan. they had negative gdp in the third quarter last year. there's a lot of concern about on the nextwill add level of the consumption tax. last time they did that, the japanese economy went into recession. that's concerning to us. europe, negative gdp in the third quarter. italy in recession, france dealing with the yellow jacket situation, brexit overhang with the u.k. -- a lot of question marks in europe. from our perspective, you have to be cautious with your client's money unless you have clarity on what the pivot will be, what the catalyst will be to turn the economic sluggishness in those regions around. scarlet: seeking clarity. thank you so much, phil orlando of federated investors and our own sarah ponczek of bloomberg news. that does it for me, and the

closing bell. romaine bostick is next with what'd you miss?" where we will be looking for any news we can lyft tries tos recover from its selloff. this is bloomberg. ♪ uberine: the s-1 from

finally here. we will delve into the issues of what the take home is in terms of revenue and how much they .arned, and each key drop they filed for ipo seeking a uber.eading under this will be key for us, the metrics within the filing and what it means for lyft. romaine: one thing a lot of people talked about where the cash flow numbers. they were cash flow negative last year at $1.5 billion, and the expectation is that that could increase, with the ambitions they have, particularly with price pressure they have with regard to drivers and competition with lyft, so interesting to see how they address that. joe: absolutely. some of the key things we will look for as we dive into this, thebig story with lyft, idea they are trying to take more and more, and the tension that emerges between the company

and the drivers. romaine: can i point out, basically on the second or third page of this, they are already talking about how much they pay drivers, how much they change cities. you can see the narrative about the good that they do. caroline: ethics. romaine: that is where they are trying to divert attention. caroline: that is what lyft did. set themht that apart from uber. gross bookings from uber from ridesharing, $41.5 billion in 2018. size ande scale. pretty extraordinary. let's get more, welcoming president of the national venture capital association, bobby franklin joining us from washington. thank you very much. put this into context. the mother of all unicorns, the

one that people have been waiting forever. a category-breaker. vc significant is it for the and start up world that it is finally here? bobby: every venture-backed ipo is a significant for venture capital investors. this was going to be huge, just like the others in the pipeline we expect to come over the next few weeks or months. from a venture capital perspective, this is important. this is what you need to have, a healthy public market opportunity for startups, to have something to go to as opposed to a merger or acquisition. they need an opportunity to get capital, and frankly to be grown-ups, with the scrutiny of a public company and markets that allow them to grow. revenue: uber fro from ridesharing, $9.2 billion,

groking of $42 billion. ceo, total compensation of $47 million. what is staggering, some of the size and scale. they reached 10 billion trips in september 2018, up from 5 billion the year before, so they doubled the number of trips in one year alone. , thet to give you a sense president of the national venture capital association joining us at the moment, what is your take on how much oxygen suck up from money in other ipo's? could that be detrimental to slack, others, what is happening with lyft? bobby: certainly finding the right price, markets do that well. if you can show the value proposition. --can be messy have we have

as we have seen over the last two weeks. that's what we think about in terms of policy, regulation, what the markets do, what it takes to become a public company is very important. we want this pathway to be a smooth one. k at it a lot more than one company, and look at it as a whole, and how is the marketplace welcoming new companies, with new platforms, with new ways of thinking about products and services that are delivered today that were not delivered weeks or months or years ago? and that, to me, is the most important thing. we have to have a healthy ipo market. it has to be inviting. we have to make sure that when companies choose to go there, and by the way, we would like to see companies go there much sooner. this idea of company staying

private longer isn't necessarily healthy for the entire entrepreneurial ecosystem. romaine: let's talk about that issue, the idea of the companies coming public sooner. for a lot of investors on the secondary market, there's concern that a lot of the growth has already happened. instead of a company going public after 4-5 years private, if you have been around for a decade, has all the growth sort of been sucked out of it? bobby: weaken .2 ipo's in the int -- we can point to ipo's the past, like facebook, where they have had a lot of growth after coming to the market, even at valuations a lot people thought were crazy. i don't think just because it stays private longer that there not continual upside. talking about new platforms, new categories, new industries, there's a lot that can continue to happen. these companies are going to continue to transform, to innovate, and i think that's

exciting for public investors. joe: i want to talk a little bit about the numbers. uber technically did report a gap profit in 2018. $997 million. they had a major gain in investiture, and that was worth over $3.2 billion,, in one of the footnotes. still a massive money bleeder. as people are looking through this, they should note that while they are profitable on some basis, the fundamentals are still a massive mystery. caroline: we know they just exitingnto dubai, certain detente with countries. i want to bring in our m&a reporter. what are you making of these? >> investors have been waiting

for the minutia. one thing people will be looking for, how they measure their average monthly users, and what agnostics are, like if you are an uber eats customer versus a uber car customer. in terms of revenue growth, that has been flatlining in the last few quarters, and people have asked questions about that, as well as diversification. as joe said earlier, this is obviously the biggest one for the year, looking to raise around $10 billion. we think the valuation is somewhere in the 100 billion dollar range. how this goes matters to the market. romaine: we will probably pick apart these numbers to death, but at the end of the day, two people really care? this is really about a growth story, the narrative.

when you look through the filing, the first few pages are very flowery, about this promise they never quite define, but that's what a lot of investors are buying into. nabila: absolutely. one thing setting uber apart,, they have a ceo who is an experienced public company ceo, not a founder ceo, with great experience at expedia. that's a benefit other tech unicorns don't have. caroline: i want your take on what this might breed in terms of new millionaires, billionaires being coined at uber, people who will finally get some liquidity. they have worked on the business, and we will see some big money being made by those who have worked for the company and invested at the company. what does it mean for the channeling of more seed funding yet to come from new angels? bobby: i think you hit upon it.

as soon as a company like uber goes public and creates all these millionaires, many times we see those are the very people that are backing the next great ideas. when you think about the path of a company, first of all, think about when there was an entrepreneur who had the idea of uber, worked with angel investors and then venture capital investors. how important it is for our country to have those sorts of people willing to take risks and willing to provide capital to new ideas and get them off the ground. so the fact we will have a lot more angel investors, or even venture capitalists,, is a great thing for the next generation of entrepreneurs and groundbreaking companies. joe: one of the things it feels like,, and we saw this a lot in the last few years, a a lot of interest in private companies that have already shown significant traction. do you see a situation in which there is a lot of interest for more middle stage and late stage

companies, but people are more gun shy about the sort of pure angel or series-a investments? bobby: i don't see entrepreneurs shying away from capital to help them start companies. that's not something that shows up in our data. we have seen that there has been fewer investments, and we would like to see that grow. part of it is making sure you have the capital to support experience standing alongside entrepreneurs, creating new companies. romaine: looking at the letter dara put out, he says that some of the attributes that made uber a wildly successful start -- a fear sense of entrepreneurism, willingness to take risks and be famous uber hussle, as he calls as he calls it,

leading to missteps along the way. you mentioned he's not a founder, comes from a somewhat different background than travis kalanick. what does that bring to the table, guiding the company through a much more public process? nabila: strong corporate governance. we are in an environment where investors are digging deep into companies, looking at the corporate governance structure. a a lot of companies are under attack from activists. it's important to have that structure correct, and in a funny way, uber has travis kalanick to thank for that. he was so outrageous, that brought about the massive changes they have gone through, versus other tech companies. joe: your thoughts on the fact this is not a founder-led company and the significance of that? bobby: i think there's unfortunately a lot of times, founders do have to be shown the door, from the investors and positions,overnance

because sometimes what it takes to start a company is not what it takes to grow a company, not what it takes to have a mature company. it happens. not everybody is suited for the beginning and the growth period and even the mature part of a company's lifecycle, so it is what we have to come to expect. caroline: it is interesting that lyft is currently under pressure by 0.4%. the founder is still there, with a lot of control over the business as it has gone public. what are we expecting from uber in how much voting rights will be remaining within certain investment groups and ceo's leadership? these: traditionally companies maintain a dual class voting structure. details, look into the a lot of which will become clearer as we get into the next month, but i would expect something similar there, even though it's not a founder-led company.

one thing about the ipo market this year, obviously it is a huge year for ipo's, the year of the ipo's. butas quite quiet, interesting looking at the six biggest banks this year, on average revenues are down about 30% for equity capital. i want to bring in the ceo of franklin templeton multi-asset solutions from san mateo, california. your take on the company and how it fits into the broader traditional auto and transportation companies and whether it is a threat to them? >> that's an important angle to consider. and uber and lyft, potentially some other large tech unicorns we see going public over the year. going back to my manager.

although the ipo's may not be of specific interest, we have to think about it relative to the traditional sector, so what impact will it have on traditional players? d, both very relevant and you could argue adapting pretty aggressively, more so with gm, ford maybe catching up a little, but that's an interesting angle as the unicorns come to the public market for the first time in a different sequence. maybe not to the same extent companies have come for capital historically. they stayed private longer, which i know we already touched on in this conversation. me, it is the broader interplay between how they now position themselves in the market and what impact that will have on may be traditional investments that even yield-oriented investors may have come across in their portfolios. romaine: when clients come to you and are interested in uber,

any of the big unicorns coming public, how do you advise them? they are in effect buying into a growth story. uber talks a lot in filings about how they only represent about 1% or 2% of the market right now with regard to people using the service, and that is sort of the growth potential there, but there is a big risk there. what do you tell people, here is what you look for in terms of picking the right stock? ed: i think the key is the remaining growth that you see happening or available for the business. alreadyth rate's may be starting to slow relative to what was experienced historically, but by no means should that be taken that the growth has largely played itself out. past,seen ipo's in the going back to look at a high profile ipo like snap, which

performed well initially, but has subsequently struggled, to this day maybe 30% to 40% below ipo price. each case can be take separatelyn to understand the fundamentals. caroline: summer highlighting the admission that profitability will perhaps not come any time. we expectedhe s-1, operating expenses to increase significantly in the foreseeable future, and we may not achieve profitability. ed, your perspective on how long investors can wait to turn a profit? ed: that's a great question, and i think that's where investors will have to focus. as long as growth rates stay high enough, there is high tolerance for a lack of profitability out of the gate. but i think that down the line it becomes the ultimate question all these companies need to answer. if they continue to burn

investor cash, what is the pathway beyond that? the ultimate success of these ipo's will hinge on that specific question. joe: appreciate your perspective, ed perks. d, andwith us, nabila ahme bobby franklin, president of the venture capital association. in the past, you were supposed to get a discount for illiquid shares. now there is this perception that it is sexy to invest in these private companies, maybe even advantageous if you don't have to post daily numbers, so the appearance of less volatility. the fact lyft traded down since going public may suggest that perhaps private investors are the exuberant ones overpaying. do you buy that, that perhaps the traditional sort of valuation has flipped, and private prices might be overvalued? bobby: well, just like ed said,

it is important to look at each company on its own and what they priced their round at, what happens after that. i don't think there is a fundamental flaw between private markets and public markets. i do think they are different markets, and the price discovery in a private market can be messy. . we have seen the initial price discovery in the public markets to be messy. over time, those things kind of settled down. i don't see that as a huge issue. romaine: a big part of the price discovery will obviously be on the shoulders of banks that are helping to do this. there are quite a few banks on the deal. morgan stanley, goldman sachs and bank of america is leading, and then barclays and allen and co. advising. ipo, and led the lyft they will be very aware of that performance, shares down 15%

from ipo price. whether they take that into account in terms of pricing will be something to see. but i am sure that as with lyft -- joe: want to point out something interesting. part of the premise for all these companies, the ridesharing, but all these new businesses, scooters and bikes and all that stuff. as pointed out on the blog, uber eats net revenue actually declined at the end of last year. it is not clear that some of these businesses that might be the future are all that fantastic. caroline: and such disparity. two point $5 billion in adjusted net revenue in the fourth quarter, and 2.3 billion dollars of that was from ridesharing, just $165 million from food. basically, you said eventually uber and the likes will eat up these other food delivery

companies. why are they throwing so much at this? as aen you look at uber platform, ridesharing is just one aspect, probably the biggest they are targeting, but they could easily bundle food delivery, freight, any form of mobility services. at the end of the day, they have this platform with 100 million-plus users that use the app and you can keep adding services. romaine: talk to me a little about the idea of the drivers and the potential some people reducing cost over time as we move to autonomous? indeep: more than autonomous, think they will look at decreasing insurance cost. lyft, we saw that insurance cost is more than 50% of revenue, a big drag on gross margins. what they will probably do with ipo is get into the insurance

business themselves and self-insurer their cars to bring down costs. joe: do you think that could meaningfully change the numbers? mandeep: absolutely. i think it will help the gross margin, which is a big drag. the biggest sticking point is the insurance cost. if they can bring down insurance and payment costs, if i think they will get into payments as well as insurance. that will help with margins. caroline: i want to go back to bobby franklin, who i think is still with us. hearing that uber might get into insurance, payments. they are already in food, ridesharing. could there be any other perfect storm in terms of sheer volume of private capital to feed this beast so quickly at this scale, and can it be continued? well, i think it can be continued now that they are going onto the public markets, as long as investors believe

that there's an opportunity. i think that when we look at the types of innovative companies that are going public here, like uber or even the others planned to go public in the next few months, i really think that people have to think about these totally differently. the next generation of companies are really thinking about entire platforms, and you really have to divorce yourself from the way we have looked at industries and companies in the past, and think about relationships between a company and their customer, the direct relationship, and what else they can do for them. i think it is exciting. there's lots of opportunities for new products and services. i just hope these companies do so here in the u.s.. caroline: we thank you, bobby franklin, president of the national venture capital association. ngh, from uber ombergigence -- blo

intelligence. we go back to francine lacqua, standing by with a special guest. francine: we are here at the imf meetings. one interview i have been looking forward to all day, the president of the south african reserve bank. thank you so much, governor, for joining us today and giving us a little bit of your time,, because i know you have a very busy schedule. after your central bank kept rates unchanged, economists were asking, what does it take for your central bank to cut rates? do you need a recession to go lower on interest rates? >> we hope we will not see another recession. we were very clear about our policy. target.le inflation we have been worried for some inflation the fact

expectations were either at the top end of the target, or outside of the target. two years ago, we started communicating we would like to see inflation expectations come closer to the midpoint of our target rate. inflation outcomes have or justflation is at below the midpoint. what is more important is the expectationslation expectations, and

they are the lowest in a long time. have lower interest rates, you have to have lower inflation, on a forward-looking this, and that is what policy seeks. francine: a lot of banks have cut grow faster than income. retailers, construction companies are struggling. would they not benefit from a rate cut? myself, would they benefit from higher inflation? i say to you that they would not. but the monetary policy stance we have right now, we believe it is accommodative because it is is good. rate, which

tend tothing people eatsation fo into paychecks. this impacts more on growth, and there are a couple ways of thinking about it. themselvests which fact ourlection of the is affected by the which will lower presented to. output look forward, the

does close, and when it -- inflation cutsine: do you see rate as an option? if growth -- francine: not recessionary, but deteriorating. sayow we feel about it, we to ourselves, what is the expectation? it leads to a negative output gap, we watch that very closely.

we have been clear htat at every see inflationt coming from the demand side of the economy. as usual, we had some shocks see them asut we one-time shocks that we do not react to. francine: governor, what are you frustrated about in the south africa economy? one thing you could fix right now? >> there are a lot of things i would fix. frustration is not part of the toolbox of central banks. [laughter] the one thing i would actually like to see is a restoration of

with theess sector, government setting concrete steps on the policy front. the president has announced, and what we need to have, is the government to implement those, which leads to potentially higher gdp. you believe this central-bank is undermined by the fact the anc says it should be owned by the government? >> well, we are fortunate because our mandate is spelled out in the constitution of the republic of south africa. the extent there is

no interference with our mandate, that is ok, but talking about the central-bank, i look at europe, one of the most fiercely independent central is fully owned, by the government. and there's another with private shareholding that is not quite a paragon of independence. francine coburn have there been tensions between anc -- francine: have there been tensions between the anc and you? government, with and leave the political parties to themselves. when the legislation comes into the government process that proposes what to do with the ownership of the bank, that is the legislation we will engage with. francine: have you had talks with the anc about this? >> no. we will talk to the government.

we happen to have an anc government, and that is who we engage with as the central bank. we are the institution of government, not of political party. francine: thank you as always for joining us on bloomberg. back to you in new york. plenty more today and tomorrow from d.c. and the imf spring meeting. caroline: driving toward going public, ride-hailing giant uber finally declares ipo, under the name "uber" of course. all the details coming up. this is bloomberg. ♪

romaine: breaking earlier this hour, uber filing for ipo under the ticker " uber."

redstone joins us from san francisco with more. us big -- brad stone joins from san francisco with more. how big a deal is this, and what are the takeaways? brad: it feels like a moment we have been waiting for. uber was really the defining company of this wave of innovation and entrepreneurship and fundraising in silicon valley. the biggest ridesharing company, on-demand company. the moment is here, they filed. what are the surprises? one thing that jumped out was how much of a ridesharing business this still is, the vast majority of revenue coming from ridesharing. the business is concentrated in north america. uber dietz relatively small -- at $165atively small million in revenue. the other thing is how much they focused on ethics, trying to focus on how uber is

conscientious, a difference from the reputation under former ceo travis kalanick. romaine: do you think that will make a big difference when we get to the public market? we saw with lyft, their did not seem to be as much concerned with the share structure and the money losses, and i wonder if you think uber has a better story to tell here? brad: in some ways, it does. with a professional ceo with an dualendent chairman, no class stocks so shareholders have more of a say in company operations. i think there is some fatigue with the founder control and imperviousness to investor ill influence in silicon valley. by virtue of the tangled history of uber, this company is a little more democratic right now. caroline: interesting that many look at these big ipo's in

loss-making companies, and go back to the last company that went public without making profits for a while, of course amazon. of course they grew with great gusto. a company you know well, you have written a book about it and are writing another. are there? 's about its own focus going forward? bezos's annual shareholder letter came out today, and he talked about a metric called gmv, total volume of sales both from amazon and third-party sales. ourcolleague in -- colleague in bloomberg opinion noted, back away from the sales, and it shows that gmv is slowing, which is remarkable. this is a juggernaut that exceeded for many years, no flooding back to earth.

amazon will tell you it is not that important, and they want to look at things like aws, advertising sales in addition to goods sold on amazon. joe: there was a line in the letter where jeff bezos said they got a lot of ideas from "listening to customers," which i thought was funny in light of your scoop yesterday about alexa's 7000 workers listening to consumers. how big are concerns about that, the connected home and the gadgets people have? will that be an impediment, that people worry about in-home spying? or like these other things where people say they worry about things like privacy and spying, but in the end it doesn't change their behavior that much? brad: that's a good question. the funny thing, i feel like the fear that people are "listening to you" over the devices has been there already, and still

amazon has sold 100 million echo devices. reported, amazon has teams that spread around the world that listen to a selection of alexa recordings to try to make the service better, and sometimes those people, there's not a lot of privacy safeguards, hear things from the sanctity of people's homes. with it make a lot of difference? we see again and again with these privacy cases, people often seem to trade convenience despite the misgivings they might have. joe: great perspective, brad stone from san francisco. now, one of the most anticipated bond deals of the year. now saudi aramco bonds are sinking for the second day. joining us with the latest, bloomberg's sarah boston. weak performance for saudi aramco bonds. what does that tell us about the

significance of that extensively-massive order book? does that number not mean much in terms of real thirst for this? have: a lot of investors real questions about how real that order book was. if you are seeing the bonds sinking on the second day of trading, perhaps there wasn't $100 billion of orders for $12 billion of bonds, and it doesn't really bode well for the underwriters who put together the offering. romaine: we kind of had a sense that order book would be padded. you had to have known, these were not retail investors buying these, but people with a lot of experience. claire: these are highly sophisticated investors. there is talk about how this could be an ambitious cycle, fear of missing out on the bond deals, so maybe you put in for a little more than you get and maybe flip on the secondary market. romaine: but is it weird to see, put into perspective, a very high quality bond like this trading where it is right now two days later. claire: that's pretty unusual.

ideally if you are an underwriter, you want your bonded to be flat or a little up in a couple days after issuance. sometimes you might see these deals pop one or two points, but not down. romaine: thank you, claire. bloomberg's claire boston, thank you. coming up, competition between disney and netflix stirring up. how bob iger plans to win the hearts and minds of consumers, next. this is bloomberg. ♪

romaine: the news of the afternoon, uber making public the filing for an ipo. a little more detail into their earnings and revenue. what we have known for a while was confirmed,, that revenue growth has slowed. we also know they are losing money. they posted a profit on a gap basis, but backing out some of those things they are still hemorrhaging cash. joe: $3 billion in operating

losses. they have again on the disposal of chinese -- the gain on the disposal of chinese assets, but they are a money loser. it is one thing to lose money if you are growing the topline like crazy, but they are not. fast, but not like crazy. that's a subjective term, i guess. interesting to see reaction to this. turning to another huge story. after the disney channel debuted in 1983, success for the company didn't come until two years later. today, in effort to attract a wider audience, ceo bob iger plans to launch a new streaming service called disney plus, projected to have 75 million subscribers over the next five years. let's bring in our guest from los angeles. thank you very much for joining us. interesting analogies between the disney channel, launched a long time ago, and they knew streaming service -- the new streaming service. how crucial is getting this right?

>> vital, vital. since coming online at some point, we hope bob iger will tell us this afternoon, at a time when putting much every major media company will be bringing a streaming venture online, and not just even traditional media, but apple moving into the space as well, and already netflix, which started this whole shift. this afternoon, we hope for news around what is actually going to be on the platform. pretty much all we know is the main brands which will be on the channel, the film brands. marvel, the previously fox-owned national geographic. how much will it cost? when will it roll out? how will disney distribute content across the different platforms it has? that's a good point. when you think back when netflix

was becoming popular, there were not a bunch of other options for digital streaming as a customer, but you listed four or five services and a couple more out there already. how will disney position itself in that, where people will make a decision to buy disney plus versus, netflix, hulu? myyou just mentioned colleagues wrote a story, talking about all the content disney was positioning for, very child-focused, family-focused, and that's really where disney has a win, really what the brand is known for. where it can be a differentiator from, for example, youtube, and from the internet, where we have seen a lot of complaints about whether it is safe for young people. that's where it could be a winner. joe: what do we know about pricing? be, parents have to get

this for their kids but they won't get rid of netflix because they have shows they like, and some hbo, espn, and when it is all combined they pay the same amount they pay for cable now? >> this is the question everyone is wondering. we will see what they say today. the other thing, where is espn plus going to fit in? will there be bundling options? we were hoping as well, like a few weeks back when we had apple showing us its apple plus service, the plus controversy kind of dominating when that was out. but how much will this be? around the $10 mark? will it be more, less? we will see. joe: thank. coming up, don't miss our conversation later where we talk about disney plus with bob iger at 8:30 new york time on bloomberg daybreak: asia. i will be watching economic data tomorrow, preliminary u.s.

consumer sentiment out at 10:00. romaine: and j.p. morgan and wells fargo report first quarter earnings before the bell. that is all for "what'd you miss." "bloomberg technology" is up next in the u.s.. romaine: have a great evening. this is bloomberg. ♪

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