[applause] vonnie: we are joined by paul sweeney. mcast is also making an expansion in terms of its theme parks at universal studios. is this a viable long-term counter strategy to losing pay-tv subscribers gekko paul: i think it is. disney over the last 10 or 15 years, their theme parks have received a tremendous amount of capital investment, so they have expanded their business, including their cruise ship business. they laid down a lot of bets around the world, the most notable coming in shanghai in the next year, and opening the park in shanghai. they continue to invest because they continue to generate steady profits for disney. brendan: i need you to confirm something for me. well i a -- will i be able to get into a millennium falcon? paul: i think you might. disney is going to want to put you where you want to be. vonnie: you can also go around the toy story garden, and get into the ironman stark industries. a lot of great experiences, but disney and comcast both are betting that the consumer will continue to want to spend on o

joining us now is paul sweeney, hey. the number one metric you are watching? t of the cable networks. espn has been a cash flow driver for this company for as long as people can remember. there is investor concern a little bit around cable networks. erosion aen audience little bit at espn. the question will be for a lot of investors, what can we count on for espn and the cable network segment? it will still be the major cash flow come -- contributor. is there any way to quantify the stock? importants the most part of the company parity thing about the film business. so much success with the marvel films and we have got star wars upcoming. these bigbusiness for entertainment stocks tends not to drive them very much. it does not matter if they have a big hit or a flop. ist really moves the stocks the cable network business. that is the biggest cash flow generator. also the theme parks business has been excellent business for them. theme parks and cruise ships, their opening shanghai disney in 2016. that area has been throwing up a lot of cash flow. it -- over the

erik: paul sweeney, thank you.e will be back in just a moment. ♪ erik: welcome back to the bloomberg market day. matt, harvard mba grads used to always brag about how hard they work. 21 hours a day, grinding it out on wall street. not just harvard, of course. still, here in new york city, on the streets you hear guys bragging about putting in 80 hour work weeks as a badge of honor. perhaps it is no surprise that fewer and fewer of these grads want to go to wall street for a job. in 2013, 13% of harvard mba graduates were to work in finance. last year, 5%. this year onlyts 4% will work for a bank. matt: it makes sense when you look at the alternatives. -- can go to silicon valley a notch or what the hours are -- day, surf for a few hours a day. that is the aim, you want to work 8, 10 hours max and then spend some time with your family, doing things outside of whatever you are doing. erik: it's also a different kind of job. you are working for a startup, you may get some equity. matt: sox are unnecessary. erik: appar

prospective from paul sweeney. much more is ahead.esbout for the future of the s&p. ♪ alix: we are moments away from the closing bell. i'm alix steel. joe: and i'm joe weisenthal. ♪ [closing bell -- [closing bell] alix: u.s. stocks had the biggest selloff in earnings. on tomorrow'sare jobs report as jobless claims coming at the lowest in four decades. alix: we will speak to the wall street veteran strategist on market momentum and what keeps this bowl of that night. -- bull up at night. and we have one chart that will make all of those apple bulls breathe a sigh of relief. alix: about 11 point away from that 200 day, the longer trend line, but the story today

joining us to discuss this and put it in perspective is paul sweeney. ng to be hurt by core cutting and netflix would benefit, but now netflix is joining. what does that tell you? paul: we are seeing a lot of names that are ordinarily great performers. i think netflix is simply getting caught up in this bad market. lastre right, just in the couple of weeks, media spots have sold off ready much of across the board. netflix was seen as the antidote -- pretty much across the board. netflix was seen as the antidote. growing subscribers and revenue. netflix was seen as the beneficiary. scarlet: if it's a zero sum game, netflix benefits at the expense of the traditional guys. having said all this, there is a bit of a re-rating going on in the media sector overall. paul: the media or, really since the financial crisis, has out -- media sector, really since the financial crisis, has outpouring -- outperformed the markets pretty consistently. the whole concept you mentioned about cord cutting and what that the cable television business and relying on affiliate gr

paul sweeney of bloomberg intelligence is here with us. sh and liberty global, which makes me wonder why is it better to own distribution, a channel, then it is to own the content right now? paul: yesterday with a media meltdown across the board. a couple of outliers yesterday dish.harlie ergen's he basically threw in the towel of the concept of building a new wireless service. he said i might just sell the lease off mice actor. that was a good thing. for liberty, they split up some decent numbers, and there are still some way to go on pay-tv and europe. that if the conference of all we heard over the last few days in the u.s., where it looked that mature business with some challenges. brendan: the idea for comcast, nbc, time warner was always that you can only wire, contents, and you could do something with that. has that idea died? died ise idea that has that consumers will pay more and more for a big bundle of pay-tv channels going forward. that model is really under question right now, particularly because people are cutting the cord. e

bloomberg intelligence paul sweeney on that date facebook story.market makers," cleveland fed president loretta live fromns us jackson hole. a huge lineup and you don't want to miss and of it. stay with us on bloomberg television ♪ -- television. ♪ matt: it is friday and we are playing the yearbook game. this woman works in the realm of economics. she graduated from fort hamilton high school in brooklyn, class 1963, straight out of her high school yearbook this picture. mattmiller1973, identified this woman and for bonus points, tell me what kind of car she drives. i would honestly like to know. i will turn back to our coverage with bloomberg's michael mckee and brendan greeley joined with another fed president. good news, the sun is rising and i saw the moose this morning, so i can top that off my list. we have with us loretta mester, the president of the cleveland federal reserve. this year is the topic at the conference of inflation. it used to be how to worry about inflation and now we are worried about getting inflation. you said you are confi

paul sweeney, as always, if you will untangle this for us.th this move signals to the street is number one a survey and larry and google continue to want to make big investments in companies that are not core to google, like google maps, health care initiatives. they are signaling that will continue and maybe even accelerate, but the quick dash quid pro quo for shareholders as we will give you better transparency as to where the money is going and how the numbers look him up i think that is the structure, this holding company structure that they are putting in place here. brendan: the company we used to refer to as googles wheelhouse out sales is now just called ,oogle, run by sundar pichai the guy who ran android for them, basically came up with the chrome program, so obviously very important within the company. who is this guy? will we get a better sense of who he is? paul: i think we will. this is a guy who has been receiving a lot more response ability around google over the last 18 months, so as someone whose profile within the company w

let's bring in paul sweeney. what do you make of this? paul: a media meltdown particularly yesterday. it started with disney. what investors are getting concerned about is the long-held barricades for media, always simmering under the surface, which was, this whole bundle of people paying 300 channels every single month, that bundle is at risk. ecosystem, pay tv are really at risk. also, content companies, which have been considered a safer place in the ecosystem, disney, viacom, time warner, that affects their affiliate revenue. we're starting to see that earnings results. erik: we know aside from viacom, it has been extraordinary. viacom, the s&p 500 is up. look at time warner and fox. stocks run for this long for everybody to come to the conclusion that you just shared with us, which we have been talking about for the past four or five quarters? , when bob talks about how they lost viewers and therefore they have to take down their income, that was a wake-up call for everybody. if the unbundling of media business could affect the domina

and pauls cory johnson sweeney who runs u.s. research for bloomberg intelligence. for being here. paul, before we get into what they were pledging to do, talk to me about the timing of this announcement. why yesterday? it's clearly response to concerns that have been raised over the last year or so by a lot of googles large investors. pressinghey have been for some transparency, particularly as it relates to the capital investments and operating expenses they see being allocated to some of the moon shots that larry page is talked about since the ipo. the reality is those deals, there's a lot of them and they are piling up. billions of dollars being allocated to some of those investments are starting to become real numbers for investors and they wanted to see some transparency. i think ruth was one of the catalysts for pushing this forward to bring it to the market place in response to investor concerns. cory johnson, will this be enough to give investors the transparency they have been clamoring for? cory: that's a great question. we don't know what they are going t

paul sweeney did, and he is here from bloomberg intelligence. i want to talk about espn. it truly in trouble? paul: i do not think it is truly in trouble, but it will not be the consistent growth driver for disney that it has been over the past five to 10 years. disney is still obviously a huge cash generator for disney. it is the dominate -- dominant network by far, but consumers are cutting the cord on the margin. even on the margin, it is affecting even the espn's of the world. brendan: is this just a secular trend in the way people are looking at television, or is espn doing something wrong on its own? paul: we're starting to see a lot of the broadcast networks experiment bypassing the pay-tv package, getting hbo, going to consumers directly. all this is a response to netflix. there are 40 million people subscribing to netflix getting content directly over the internet. tom: you are good at full in the experience that we have. my tv sits like a monument in my house, dark and black. i look at fox sports, the outperformance at disney. how will disney, as the true leader

to see you.ood paul sweeney, director from bloomberg intelligence.o come on "what'd you miss?." keep it here. ♪ are moments away from the closing bell. in joe weisenthal. inrlet: and i'm scarlet fu for alix steel. [bell ringing] scarlet: stocks retreat after china devalues the yuan. the restropping after rally since may. joe: but the question is "what'd you miss?" two leading experts go head to head on our set. scarlet: plus, who was getting a raise, who isn't. -- who isn't? joe: and the liquidity conundrum. is it overcoming prices, or is it just a myth? we begin, of course, with the financial markets. for the s&p 500, if you want to get really technical, the biggest drop in five weeks and the dow jones, the death cross.

i want to bring in paul sweeney who joins us from princeton. lineup with nbc and comcast's strategy overall? missed out on its big acquisition of time warner cable. they're looking to double down in the cable business. they have stepped back from the m&a environment but have recently reemerged a little bit, focusing on digital media. vox00 million investment in and now the investment in buzz feed is indicative of what they are tentative. they are trying to target the younger demographics who are getting more and more of their content online. is trying to get some greater exposure to digital advertising, the fastest-growing advertising stream out there. scarlet: in terms of digital media's profitability, how much money is nbc getting? paul: a lot of these companies are in a very early stage. vox has established themselves well, in the news business, very big audiences and the audiences are growing. they have put a lot of video on their sites. thene video advertising is fastest-growing form of advertising on the internet. if you are comcast, will

paul sweeney says there are possible concerns the company's second half may be too high. hbo and tnt cnn, said sales increased 8%, earnings of $1.25 a share, $.22 better than wall street estimates. results were supported by more revenue from video games and the introduction of the hbo now service. new parents offer on its payroll up to a year of paid leave. the policy covers all of its people at its internet streaming service. by comparison, facebook offers four months of paid leave at $4000 in what it calls baby cash. google workers receive up to 18 weeks. those are your top headlines. one year leave. i like it. a speech from president obama is scheduled for about 20 minutes from now. he's trying to dismiss doubts about the nuclear agreement. the ministration says it the best way to avoid war. president will make his pitch at american university in washington. you can watch it live here on bloomberg tv. in the meantime, i want to bring in our guests. i want to start with bill. takeexactly is going to place in congress over this pact? bill: they're going to look at the de

here with a preview was paul sweeney. he joins us on set. going to get espn over-the-top?her thansooner later. he is can realizes they have a huge cash cow for the disney company. the reality is consumers are consuming media differently. , gettingcutting or more and more content over the internet. i think even he has and cannot fight that. they are thinking about how much concept of a put direct to consumers online. i do not think you will see all of the high-priced sports content go direct to consumers, but you will see espn more direct line to consumers pretty soon. following hbo in cbs. i think that could be the new growth story. media companies are treading a very fine line trying to protect their core ecosystem today, the cable district leaders and satellite district leaders. that deliver so much value and cash. they recognize they have to evolve and go to where the viewers are going. viewers are leaving the bundle, shaving the court and going more toward the netflix of the world. they need to go there but need to make sure they get paid. erik: talk to us about the st

scarlet: david, i want to piggyback on what mark just said about paul sweeney of bloomberg intelligence because he has just put together a chart. if we can take this chart, gil -- what it shows is netflix versus traditional media companies like fox. 100% year to date versus a 7% drop for old-school tv guys. that this reflect the effect of cord cutting or the fear of cord cutting? david: i think it reflects the fear of cord cutting and we have seen a rotation on some level out of traditional media into atflix on a sentiment on perception issue. we have not seen a significant amount of cord cutting. we have not seen a material amount of, sort of, skinny bundle purchases, but there is a part of investor sentiment that at some point the world is going to change and they do not want to be caught behind the curve. that is what i think is happening. mark: also behind the curve -- we talk a lot about live sports programming on these networks. david: right. ofk: that means the espn's the world get to charge higher fees. so, what is the bottom line here? of thei think as the end day, the thing th

paul sweeney was telling us something. paul: i was talking to a client of mine.andles a hedge fund. he said to dump netflix. cory: that was the biggest the kleiner in the s&p. we have not had a lot of market breadth. a few stocks of made it look like everybody was doing fine. these five own stocks. olivia: netflix has doubled. paul: technology is one of the areas where you really could find organic topline growth. they were getting a lot of investor attention. namesr it's the internet or some the cool sexy names like netflix, yesterday they got caught up in it as well. olivia: it seems curious that these growth stocks got caught in the crosshairs of a selloff. this was triggered by concerns of a slowdown in china. be a catalystt for next flicks -- netflix westmark --? head held incks there. it is not just china. it's currencies and oil that came together yesterday. there was a very high-volume take yesterday. it held in their be well. they do have decent topline stories. when you think about the trends in the internet, those things would perform well, even in the

i want to bring in senior media analyst paul sweeney. espn, off its game? e become accustomed to this being a driver of growth. arguably, the sense of it being a big growth story for disney those days are over. it is still a cash cow, it is facing headwinds people are cutting cords. viewers aren't signing up for big packages. stephanie: is not a curse on their success? -- is that a curse on their success? paul: they have all of the best programming, they are i far, the most valuable cable network in the marketplace. they charge a multiple on a monthly basis, relative to anything else. the question is now, where did they get their growth? they are thinking about going direct to consumers, similar to what we have seen hbo do. all of the success we have seen with netflix, that has proven that consumers will pay for direct content over the internet. so espn is thinking about their model. erik: was distributing via dishes a mistake? paul: i don't think so. the skinny tv packages -- a threshold on subscribers. if they become too successful, espn can pull their con

paul sweeney joining us strangely here because i saw you friday in carmel at the car show. at car show. cory: the biggest luxury car sale in the world. olivia: i had no idea. cory: with carol massar, we were doing bloomberg radio from there. "star wars" i have young kids and we love disney world. this is a strong commitment. paul: it shows how much confidence they have in the franchise. they've not even launched the first movie. i think they know what they have even though there has not been a movie released for many years. it is one of the best known franchises. they are ready to make north of a billion dollar commitment property.based on the break: to get the tax disney had to say they would invest at least $1 billion. expanding theme parks is a key pillar of iger's tenure. paul: they have made a tremendous amount of investments. the biggest one will be shanghai disney that opens next year. it is the first one on mainland china. it will be a huge thing for disney. on par withis opening a disney world many years ago in orlando. across the border they make huge investments.

i was e-mailing with paul sweeney.though the company not for the quarter, it did raise its full-year forecast. raising concerns about the second half. lumber liquidators plunging, down 15% after the company's sales trail estimates. sales fell nearly 6%, a bigger drop than estimated. ongoing issues concerning chemicals used in flooring sparked by a "60 minutes" investigation. the company has gotten two subpoenas from the new york office of the sec. for the update. our senior markets corresponded. back to len of said street asset management. fifthback to len of street asset management. we did not touch on some things you are able to -- you are eager to discuss. including liquid alts. len: we manage middle-market loans and broadly syndicated loans. you find these in what we call liquid alt products. they are not necessarily liquid. stephanie: i love this. len: that is a real problem. i trade in this market. stephanie: who are they telling -- who is it specifically that, who are they telling this to? len: they call the pro

. >> in an auditorium and paul ryan was the vice presidential candidate so he had security and connor sweeneywho was on paul's staff, i had to give him the names in advance, i gave him the names and connor and steve spurrell called me and said bob, three of these people have criminal records. i said no, i thought all of them did. [ laughter ] what's the problem? he said i'll get back to you. so they went to paul ryan and paul said, bob trusts them, i trust them, and so we came in and we shared with paul, and pastor paul reddell said to me, we can lay our hands on paul and pray for him at the meeting. i said i'm not sure that works with catholics. but let's try it. so after that meeting was over, and you could see when they came in, seeing this guy with tags all on and something else, they got all uptight and i'm telling you, they were in taeears. >> they were. >> midway through and when paul got up and put his hands on him we gathered around paul and prayed. i looked at the secret service guys and they were just in tears and paul says it had a profound impact on his life so that's a good segu

paul sweeney is with us. he is the head of research at bloomberg intelligence. : the tape yesterday was disconcerting for a lot of people. what we have asked our analysts to do, is two things. look at valuation. where are sectors trading verses where they traded historically. diver two, take a deep into some of the growth drivers for some of the sectors and see where maybe the industry needs to recalibrate some of the growth. that dovetails into valuation. brendan: are we not immune from what's going on in the rest of the world? paul: we have seen this in certain pockets of the marketplace. the broader selloff that accompanied it really hit home for a lot of investors. this is not just a regional issue. this is spreading to the u.s. market. brendan: we have been talking about the fed. i want to talk more broadly. we have for the last two years had a several economies in europe, sweden, switzerland, denmark, that have been safe havens but they are now suffering. we see swatch earnings terrible. are there safe