paul sweeney: they are.od pricing power and to drive or preserve good margins and if they build up their services business. when people looked at a quarter last night, a good quarter. the guidance they gave for the current quarter a little better than expected. to the extent there is a slow down and of the iphone eight, it does not seem to be material. francine: how many apple phones do i own? will there be a drop list car or something with my health? paul sweeney: we see apple and like google put a lot of money into new technology. apple talked about augmented reality. what we are seeing from the huge tech stocks and freeze cash flow stocks a huge cash flow is looking to diversified weather in the cloud or new businesses, services which have more marginal revenue stream. that is what we are seeing some of the big tech companies, apple, facebook redirecting free cash flow. francine: will they -- what do they deal with all of this cash they are sitting on? paul sweeney: i am sure they would love a reprint she

here with more analysis is paul sweeney -- paul sweeney.s disney still have to be worried about espn? paul: they still have to be worried. that continues to be a big issue for investors. that is because espn has historically been the dominant profit generator. a great growth story, but those days appear to be over. courtis concern that the cutting issue which is affecting all of pay television is having a negative impact on the espn because it is the most profitable cable network. about seven dollars per subscriber, perm month -- per month. it has the most to lose at a time when it's business model on the cost side is saddled with some long-term high price for its contract -- high price sports contracts. galaxy --dian guardians of the galaxy has been sort of a money producing machine. caribbean made money, but probably not as much as disney hoped. the other star wars and the other for film. -- the other thor film. they seem to be dialing it in. paul: i was talking about the film business at disney. the film business is a very unpredictable,

joining us with his thoughts on disney, paul sweeney.otok who us is david knows a lot about everything. what do you think about the effect on cable? bob said they are going to regard it as a threat. is this part of a slow demise of cable as a provider of content? companies,ook at the they have been losing video 5, 6,ibers for the last seven years. the cable companies continue to areery well because they gaining broadband subscribers. high-speed internet access. those subscribers are much more profitable for the cable companies in the video subscribers are. it is a change in business model for the cable companies. well becauseg very they are the best broadband pipe into the home and as long as people continue to consume content over the internet they need to come to the cable companies. espn is down 3% in subscribers. is this implicitly a recognition that they can't stay at this dance much longer? they've got to move on to the new world because the platform is essentially burning under them? >> absolutely. it's mostly viewed as a defensiv

emily: ross greenberg and paul sweeney. still with me, bob o'donnell.bout is the last time this happened two years ago, everyone was watching on periscope. that became the big controversy for the next 24 hours. back then, we did not even have facebook live. pay-tv operators and showtime will make hundreds of millions of dollars off of this. can they prevent people from streaming this on facebook? bob: that is a great question. i don't know if they can. clearly, you will have people watching and looking for that and trying to actively stop the streams. it is a real-time event. the whole world is now broadcast live. how they will stop that is beyond me. it does raise the question. pay-per-view in general, you have to wonder for live events how long that business model will work. long-term when everybody in the world literally is carrying a camera and they are at events and shooting video of it, there are going to be a lot of people say the quality is not great but it is cheaper than $100. emily: what is an alternative model? bob: you will see it get sent

joining us now for a preview is paul sweeney. unit encompasses a lot of things -- studios, cable networks, and espn. it is very dependent on espn. paul: espn is still the largest profit generator for the walt disney company. it has been a great growth story over the last 20 plus years. starting two years ago this month is when the first time that disney reported that espn's growth rate was slowing. investors really started to see the impacts of cord cutting and what the effect is having across all cable networks, including the mighty espn. expectations for growth have been coming down consistently since then. vonnie: there have been reports that disney has considered a twitter bid and a potential interest in netflix coul. this also the streaming unit. these are all grains of sand. espn is more than just a couple. paul: on the digital front, investors are waiting for disney to articulate an aggressive strategy to promote its products on digital platforms and their focusing on espn. is there a direct to consumer apple or platform th

joining us to break down the financial details is paul sweeney, director of north american research forntelligence and also special guest ralph greenberg, former president of hbo sports and now ahead of ross greenberg productions. ross has worked on many dozens of mega fights. is this the biggest you've seen in your career? ross: i think mayweather-pacquiao a couple years ago at that point became the biggest and now we'll see. i mean, tomorrow night this does five million buys and eclipses that fight, yes, it will be. vonnie: worth $100 on pay-per-view, it's a lot more than we've ever seen. >> ross was saying he's done a lot of big fights but this is a big price point at $100. the capable operators aral value vating to think of the pay-per-view -- salivating to think of the pay-per-view buys and it's huge for the promotors and everybody in vegas will be going to the fight so a lot of winners coming out of this fight. mark: if mcgregor wins maybe he leaves the ufc and goes to boxing. what's the best result from the ufc's perspective? >> that's a great question. i think if you ask dana wh

with jitters on the markets overall, uncertainty in d c, plus questions around valuation, paul sweeney says investors are taking profits. finally amazon, yesterday the federal trade commission did approve the acquisition of whole foods. we know amazon has been wildly successful as an internet e-commerce giant, but as a grocer, investors are a little less enthusiastic. the stock is down 4.5%. it will be interesting to see if amazon can change the perception of its fate as a grocery. in addition to everything else it does online. vonnie: thank you. let's check in on first word news. mark: residents along the gulf coast of texas are bracing for what could be catastrophic flooding. tropical storm harvey could drop as much as 20 inches of rain on the region. harvey is on track to strike texas late friday with hurricane force winds and light flooding from corpus christi to houston. donald trump says raising the debt ceiling could have been so easy but now it's a mess. in a tweet today, he said mitch and paul ryan should attach the measure to the recent veterans affairs bill. because they did

bloomberg intelligence director of north american research call sweeney-- research paul joins us.talk about this, it was quite interesting. $30 million per year for five years. 1.4 billion pounds, $1.8 billion. the price tag is testing the water. >> should the traditional pay-tv the answer is yes. they are dipping their toe in tennis and the u.k.. we saw yahoo! do an nfl bill. this is dipping the toe in the water of tech companies. >> if we see an increase in our return in investment works and then we will scale up. >> that is exactly the problem. it is happening with amazon as it is with netflix and hulu. a lot of these are ramping up their investment programming. amazon is the third largest buyer of programming in hollywood. they are going to spend $4 billion in programming for amazon prime. scripted programming as well as licensed programming, so they are already a major player. been,estion has always when are they going to go into sports? the reason they haven't gotten there yet, it is so expensive. and now we are starting to see them. >> the major networks and espn have locke

earlier, bloomberg markets spoke with paul sweeney and the former president of hbo who has worked onts. he started by asking if this is the biggest fight he has seen in his career. >> i think mayweather/pacquiao couple of years ago at that point became the biggest. now, we will see. if tomorrow night, this does 5 million buys and eclipses that fight, yes, it will be. >> it is a lot more than we have seen. >> it is a lot more. this could be the biggest one. it is a big price point at $100. cable operators are salivating to think about the pay-per-view buys. this is expected to be a huge winner for the cable companies, the boxers, the promoters, everybody in vegas. a lot of winners coming out of this fight. wins, maybe he leaves the ufc and goes to boxing. what is the best result from the ufc's perspective? >> that is a great question. if conor mcgregor makes over $100 million, he has a small problem because he has never made more than $14 million. the entire business model of the ufc is to keep the payments to the fighters low and make more of the money for the ufc as an organization.

6%. .pple down about 1% there doesn't appear to be new there, but this is a stock according to paul sweeney, reacts more so when there is a bearish or bullish case. the stock is down 1%. let's look at tech relative to the s&p 500 in the bloomberg. g #btv 114 people what we are looking at is an equal related this equal-weighted version -- 114. what we are looking at is equal weighted. technology is going toward multi-year lows. this may suggest that could be some sort of weakness ahead for technology above and beyond what we are seeing their. finally, let's rounded out with retail -- we have big retail movers. alibaba up 5%. the chinese online giant hitting a new record high after they put up a massive beat -- 27% on the bottom line. they put up in a dollars per share in earnings. walmart, not so much, down on disappointing guidance for the current quarter on online spending. down 7%.ds the quarter was decent. vonnie: the parent of victoria's secret. already, abigail doolittle, thank you. let's just make caps on headlines out of barcelona -- a man plowing into a crowd in the catalonia region

paul sweeney of bloomberg intelligence, thanks so much for joining us.ell snapdeal has rejected a $950 million acquisition from a rival flipkart. the two biggest local players in india's e-commerce discussed joining forces to compete against amazon. softbank owns a most a third of snapdeal. snapdeal opted to sell off some non-core assets. coming up, podcast efforts. what it means for the potential ipo. bloomberg tech is live streaming on twitter. check us out at @bloombergtechtv on weekdays. this is bloomberg. ♪ ♪ emily: a stock we are watching, pandora shares surging as much as 7% in after-hours trading. the company posted better-than-expected second-quarter revenue. they are up 10% year-over-year. this is pandora's first earnings report since they sold in 19% stake to sirius xm and dismissed their ceo. sticking with music streaming, the number one paid music streaming service, spotify, is expanding their business model again. this time, spotify is eyeing a growing demand for podcasts, a field currently dominated by apple. they plan to experiment with n

we have paul sweeney later.zer, we will talk to him from pivotal research and that on :00 hour on television and radio. he 9:00tal research at t hour on television and radio. ♪ tom: good morning, everyone. i am tom keene in new york and a forever young francine lacqua in london, looking exactly as she looked 10 years ago in august of 2007. there was a hiccup at bnp pari bas. then, there was a public later, a four standard deviation move. john normand spilled a cup of coffee that morning. he joins us. john, the one outcome of these 10 years has been the negative real yields. this chart comes from john at bank of america. this is the fed funds target rate with a moving average down below. john normand, the solution has been negative rates. we have the draghi induced negative yields in germany. our negative yields a solution to get us out of this, or are they the problem? >> they were a solution to get us out of the financial crisis and a recession, but you would think part of the consequence of that is financial r

joining us is paul sweeney, our legal expert from bloomberg intelligence. this unique to google? paul: across silicon valley, all the companies will tell you the same thing. one of the biggest problems they had is attracting engineering talent. they scour the globe looking for the right engineering talent and that drives these companies. by and large across the valley, they have embraced diversity for a variety of reasons, not the least of which is it is good business. david: but how can it be that having scoured the world, 80% of their talent are male and 20% -- in the world, the proportions don't break down that way. >> on the engineering side of the business, they tend to skew male and we have heard from the facebook's of the world and the googles and the microsoft's over the past 20 years, the challenge for them to find a more diverse engineering workforce, that has been a challenge. they put programs in place to bring in different types of engineers into the companies but it has remained a challenge across the industry. not just for google. on the one h

we have paul sweeney, director of north america research for bloomberg intelligence and david westin, cohost of bloomberg daybreak: americas. the number one question for bob iger when it comes to this new announcement on streaming? this a recognition that the business they been in for all these years is going away? not gone. it will take a while. is this really saying 5, 10 years down the road we are going to be accessing all the video content on our smart owns and smart tv's a not going through the traditional means. >> you look at netflix, it's the greatest disruption to the media business in my 30 years of covering the sector and it affected all parts of the media sector. we are starting to see big media companies thinking about how do i monetize my content in an over-the-top world. disney was arguably the most important -- valuable content in the world, that is espn conten., perhaps even more pointedly, is this the end of the bundle? his basic cable over? it rained supreme for so long, so many people have made some much money from it as a practical matter. does this mean we won't

sam sweeney is live with reaction this morning. not long ae house speaker paul ryan took the stage for a town hall in his native wisconsin. speaker ryan said he approved of the president's message and argued that it was time for a more comprehensive strategy for the war. speaker ryan also talked about representative steve scalise, who is still recovering from wounds he suffered during the ballpark ambush in del ray back in june. speaker ryan also discussed reform, and his plan to overhaul social programs that are "discouraging and disincentivizing work". new this morning - the taliban responding to president trump. in a statement - the terror group says the u-s should have thought about withdrawing it's troops from afghanistan instead of prolonging the war. the statement added that the taliban would keep fighting to free afghanistan of "american invaders" as a quote "religious and patriotic responsibility." president trump is holding a "make america great again" rally in phoenix, arizona this evening. officials are preparing for tens of thousands of supporters..

paul ticket just in case sometime this week. we'll be right back. >> ♪ every year south jersey sends more and more tax money to trenton, but gets less and less back thanks to steve sweeneyweeney-christie record eight years of underfunded schools. huge tax breaks for themselves and their rich friends while we pay more. and homestead rebate funding for seniors cut in half next year. don't believe the fake news from his wealthy donors. steve sweeney stands with chris christie, not with south jersey. >> a new hampshire hospital evacuated after a strange odor felt folks feeling nauseous and dizzy. the owed dar made its way through the or even sickening 17 staffers. you can see them being treated on the lawn outside the hospital. the hospital still trying to figure out where that owed dar came from. >>> day care employee accused of leaving a little three-year-old in a hot car for nearly 12 hours made her first court appearance. debra saint charles appeared to fight back tears as she faced the judge much she's charged with aggravated manslaughter in the death of little miles hill. police say on the monday morning that she had the children they were being dropped off but she fa