on the viacom side, the redstone inily is clearly strong viacom and cbs controls both of those.ned their approach to viacom when they wanted viacom and cbs to merge and not trying to force it through. i think they are still very interested owners and i think this is maybe where the viacom-s cripps angle may be coming from. julie: tim nollen, thank you so much for coming in. nejra: time now for the bloomberg business flash, a look at some of the biggest business stories in the news right now. morgan stanley has become the latest global bank to choose frankfurt for its post-brexit european trading base according to people briefed on the decision. morgan stanley will move its european broker-dealer business to frankfurt from london. the asset management operations will move to dublin. written may now be able to -- britain may now be able to take back control of its favorite dish. we are talking about north sea cod, the staple in green -- ingredient in traditional fish and chips. stewardship council said cod can be sold with a sustainability certificate. ♪ i don't know how popular f

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

discovery and viacom saw a movement upward, and right now each of them is higher, viacom almost 1%.re today, we are watching steelmakers. this is after we heard from nucor and steel dynamics. ebitda missed estimates. as for nucor, that company missed estimates. steel dynamics and nucor talking on their conference calls about optimism surrounding potential action from the administration on the steel industry. steel dynamics saying president trump will take very prudent and strong approaches to his recommendation for section 232 regarding steel tariffs. alsosteel and ak steel lower. a different manufacturing business -- paint. we are also seeing declines here. sorry, i thought we were looking at the chart in a different place. within-williams and ppg earnings, both missing estimates, selling less house paint to consumers in the second quarter. talking about continuing. sluggishness, ppg, and mixed demand at u.s. chain stores. pulling down axalta as well. david: let's wrap up all the news coming out of washington today, the bloomberg scoop. investingller is possible ties between the do

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

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

take a look at ken lowe, of course, or viacom. you look at viacom and its current leverage of 3.75 you do start to wonder to what extent it would be willing to go in order to fund a large cash portion of any deal for scripps. they could do it but they would have to level the balance sheet quite a bit. you put them both together still you're talking leverages as high as 5.2 if you wanted to go 100% cash at 90 bucks you get the 5.5 times controlling shareholders at national amusements, upstream from viacom would be willing to do not clear at this point. viacom making a decision here to pursue scripps and discovery fully engage as well in that pursuit. its leverage is lower. it may represent an ability to use more stock if it wants to, given what appears to be the desire or at least more attractive currency than viacom. stock prices actually moved up that helps it. so, we'll see. but this could be getting close. >> we like to do that. what are you guys willing to do? it is discovery in viacom, jim aggressively at least, engaged, in t

they asked the viacom decided to go throw the cards cards andnd identify something. then he asked anything that reminded him. nothing again. being interviewed by a man about a sex life in a separate dissent. they find pictures and they liked or didn't like. the imprisoned men most reluctant to even touch the car. speaking of archives, i found the verbatim interview at the archives which goes to the question of how do you write history? there's a lot classified in maryland in the national archives of the record administration and private collections throughout the country. this is that the fighter implied according to the interview. i do not understand the picture so i do not know which ones i like and which ones i dislike. he spent seven weeks in vietnam during which time he corrected data before the vietnamese. a french educated writer and tho vietcong insurgent all for harbor deep anti-american feeling that found the viacom fighter particularly frustrating. even the antigovernment was morw cooperative. you know i've never seen one except on astonishment when asked

viacom and is discovery or viacom, the control of a combined company is somewhat tricky because all threenies here are owned by families, or controlled to some degree. scripps networks is owned by the scripps family. john malone own a lot of the entities. done with a cash and stock component as my associates are telling me, both sides will have to figure out exactly who controls the boats. those can present major complications to a deal being done and i am sure what the advisors of the companies are working on right now. ♪ vonnie: welcome back to bloomberg best. inventory sales further than expected this week. giving hope to producers and investors that stockpiles could shrink and prices rise in the second half of the year. it is still a complicated picture. 's neil atkinson discusses the outlook for oil. >> next week, opec will meet with russia. are they going to achieve more production plants? >> we don't know if that will happen or not. what we are sure about the moment is that although the opec agreements and not opec agreements has for the six-month in a whole as it has been operatin

discussions were separate, 15%pps surged as much as and viacom was unchanged. buying of food unit for 15% and viacom was $.2 billion. -- 6:32 and weon will consider the ecb. staff are working ahead of the government council decision expected in september. --us: european lawmakers are there's little chance the policy will change before the fall as councilmembers are in agreement that they need to move carefully. let's bring us nationalist on this. its focus on europe. first of all, let's talk about goldilocks. we have been talking about her all week. she left the building on monday, we found her guest today. why is goldilocks rooted in europe? what does that mean? holger: that means the european economy is in a long phase of good economic growth with very little inflation risk. it's the classic not too hot, not too cold. it's different from the u.k.. the risk that the euro zone economy may overheat and generate more inflation than we than like is much smaller what light happen in the u.s. where it is pretty unlikely as well. goldilocks will stay on the european

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

viacom, which has now broken down, when we worked out the sloppyness of the red stone deal, i like viacom and i like it here, but very disappointing to see this execution. paramount is the jewel within this company that's very undervalued. you have to believe you have to turn this around transformers not getting it done, be but i don't think this is about the box office. >> speaking of stories, there's a article in the journal about disney freeform it's not just espn in terms of the stocks being a conservative seller >> as a guy who owns disney and have for a while own it probably mid 90s and have been in there for a couple of years now, there's dividends along the way. that is concerning when you see the numbers, a huge demographic, 2 years up to 34 years old, people not watching, that's a real problem b. 30% revenue shot right there 30% their revenues comes from that so, as a disney shareholder, i'm a little bit concerned >> switching gears here literally. auto retarials are getting crushed today. o'reilly having its worst day ever since going public. after posting weaker than expected

discovery controlled by malone and viacom controlled by the redstone family.deal is done with a cash and stock component as my sources are telling me both , sides will have to figure out exactly who controls the votes. those can present major complications to a deal being is what i am sure that the advisors of these companies are working on right now. ♪ vonnie: welcome back to . vonnie: welcome back to "bloomberg best." i'm vonnie quinn. u.s. crude oil inventory sales further than expected this week. according to the international energy association. giving hope to producers and investors that global stockpiles could shrink and prices rise in the second half of the year. but it is still a complicated picture. iea's neil atkinson discusses the outlook for oil. >> next week, opec will meet with russia. are they going to achieve more production cuts? >> we don't know if that will happen or not. we have to wait and see. what we are sure about the moment is that although the opec cut agreements and not opec cut agreements has for the six-month in a whole as it has

>> it's interesting that viacom has been discussed.came to the deal table to get a deal done. i think that shows more confidence on the part of viacom. they may have turned things around in some of their existing businesses. that allows them to be more aggressive on the acquisition front. it wasn't that long ago that viacom was on death store. thank you for staying with us through the hour. those morganre of stanley results as bank earnings wrapup up on wall street. morgan stanley trading over two percentage points higher. we will be joined by brennan hawken with his outlook very shortly. this is bloomberg tv. ♪ jonathan: wrapping up the bank earnings on wall street for the second quarter in a row. morgan stanley fixed income trading out aces goldman sachs. the european central bank is said to be expanding options to wind down qe. it could be revealed in september. gridlock leads trump poised to end his first year without an accomplishment. from new york city, good morning. i'm jonathan ferro alongside david westin and alix steel. futu

both discovery and communications and viacom have been holding separate talks with the tennessee-based-- hgtv and the food network. is,ne of the main factors who will control this combined company? the control of a combined company is somewhat tricky because all three companies here are owned by families, or at least control to some degree. scripps network by the scripps family, discovery by john malone , and viacom controlled by the redstone family. is a deal is done with a cash and stock component as my sources are telling me, both sides will have to figure out exactly who controls the votes here. those can prevent major competitions to a deal getting done. i'm sure that's what the advisors of these companies are working on right now. ♪ ♪ vonnie: welcome back to "bloomberg best." u.s. crude oil inventories fell more than expected, giving hope to producers and investors that global stockpiles could shrink and prices rise in the second half of the year. it is still a complicated. -- complicated picture. 's had spoke -- head spoke with lumber -- with bloomberg. opec spoke with russia .

discovery which is going to use cash and if viacom had succeeded, leveraging up to 5.25 times. they were willing to do that perhaps didn't to want issue any stock any way, not that the scripps family wanted it, but didn't to want dilute down national amusements as well. but the question now, simply as they pay for over the deal and get other things done is how will the market react once we see it once we know exactly what that price is, but it'll create a far larger company for discovery, of course, all of those networks being combined, the ability to offer some sort of an over the top platform as i said very strong fan bases for each of them. the hope is that you create a much larger company. energies are said to be very large. i'll let others decide what that means. massive is the word that's been uses, 300 million, 400 million, could it be 500 million? that'll figure prominently as you watch that right now the other question though guys is will this set off more consolidation? is it sort of the match that lights a fire to a certain extent and i don't know, you know, when you

he told me yesterday about viacom possibly looking into scripts. is there an update for that?> yes, there is. they're running out of room for scripps interactive map. the only suitor in talks to purchase the cable tv programmer. yesterday we told you viacom is offering an all caps deal, but after a bit from the companies decided it will prefer to negotiate exclusively with discovery. discovery and scripps have discussed mergers before but i've never agreed on terms. both companies feel the pressure as more people cut the cable tv court and streaming services like netflix become more popular. cheryl: two words can a stranger things. we will move on. this is a very scary story coming out of mexico. there was one does. what's going on without? >> this is something you need to watch out for if you are traveling to mexico. the u.s. state department alerting travelers going to mexico about possible counterfeit alcohol that could cause sickness and blocking out. the department of digits information page specific to mexico under safety and security cautioning vacationers who choose to

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

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

viacom is competing for scripps and told reuters viacom is willing to pay cash for the network operator. owning the food network and could have a $24.9 billion cable network that brings together non-scripted and unscripted programming including children shows. networks have been looking for ways to stay competitive with seaweed services like netflix and amazon. cheryl: i won a sound technology. a lot of news breaking out of her. >> we've heard a lot of bad things in the past few months. goober could have a new ceo by early september to replace travis kalanick. the company is a short list of potential candidates according to many sources can make whitman, ceo of hewlett-packard enterprise. she previously is committed to hpe. it's unclear who else is on the shortlist. transfer interesting to find out to get the job. is this thing people use to clean the house called the roomba. there are concerns about privacy invasion would not be not your home. what's going on here? >> your roomba maps your home and plans to sell about now. colin angle, the ceo and crater formed by says there's an entir

viacom, as you may know, out of the running for scripps. we'll talk about that.ngs, earnings we have reaction to facebook, we have p&g we'll hear from the mother ship, comcast, twitter, waste management's ceo then all skinny, skinny. we might have a skinny marg read margarita by the time it's done. >> john manley back with us. you were talking about how tech is the standout. there's been a few old school economy standouts. boeing with the hit yesterday driving up the dow mcdonald's, caterpillar. this is not just the sexy f.a.n.g. stocks. jim cramer called it old dogs with new tricks. at&t in the group as well. what does that tell you? >> tells me the economy is getting better and that that will benefit earnings. the thing people got wrong the last couple of years, they felt the profitability was too high for earnings to go up even if the economy got better that's simply wrong. the economy getting better. >> you like tech what's the next top pick after that >> health care you have an aging population improving technology in healthcare and a representative democrac

, not saying disney is expensive, but viacom shouldn't be almost half the valuation. i think it goes higher >> tame for our special all-star edition of the fast pitch, each day this week, wup of our trader this is week will pitch a stock they think the is worth a buy. he sent me up to the plate >> here's what we're look iing t i've got the camera man leading me i liked to talk about management first. i'm going to start dissecting it when i look at what's going on here, steve win, unbelievable management skills. how about the commitment he has for his own company. he now owns 12 million shir shares hf ioof his own company about $35 up to about $63. maybe $65. two million share he is purchased in that time those have doubled for him when others don't, he takes advantage. mchaehl has been on fire in the last couple of quarters, it's been incredible he and sheldon adelsoned about how it looks like it was bottoming at the end of january. that's been coming back. a graut growth rate of about 20%. the overnights are starting to pick up. double digit growth there. so more rev

my five stocks are bank of america, johnson and johnson, viacom -- >> we don't see a lot of viacom.et's go there to start. entertainment company challenged by the cable we're okay carnival, wow, what a quarter. royal caribbean was up today carnival, six of one, half a dozen. i like carnival. verizon, one of the great quarters for johnson & johnson let's talk about the future being better bank of america, great quarter we've got a drug company, telco, travel and leisure and entertainment. and that is fine for me. wow. we had to do a lot of work guys, i know, i mean, with microsoft and faang, you want to have just tech, so do i. but then one day you come in, and you are eviscerated. stick with cramer. >>> earlier this week i did a piece about what's going to happen later in the week the two stocks i said you have to buy if they come down at all would be visa and microsoft. they just reported outstanding quarters microsoft's cloud business azure is doing so well stay long both of these. there's always a bull market somewhere. i promise to try to find it just for you here on "mad money.

viacom has been holding separate talks with the owner of hgtv and the food network.us a sense of what is to be negotiated? >> one of the main factors is who will control this combined company? whether it is discovery or viacom but ins up being the buyer the control of a combined , company is somewhat tricky because all three companies here are owned by families, or controlled to some degree. scripps network is controlled by the scripps family. johnvery is controlled by malone, who owns a lot of the entities. buy, owned by the redstone family. if a deal is done with a cash and stock component as my associates are telling me, both sides will have to figure out exactly who controls the votes. those can present major complications to a deal being done and i am sure what the advisors of the companies are working on right now. ♪ ♪ vonnie: welcome back to "bloomberg best." i'm vonnie quinn. u.s. crude oil inventory sales further than expected this week. according to the international energy association. giving hope to producers and investors that global stockpiles could shr

and madia isn't going back to jail but viacom has locked in the entertainer. entertainment company announcing a multiyear deal with tyler perry. an exclusive agreement for tv film and short form programming. and in the final hour of trade, viacom, the stock has struggled recently is one of the biggest winners on nasdaq. it's up 1.5%. jp morgan chief drops the s bomb while blaming washington gridlock for the slow growth of the nations and your pocketbook. but will the dc function always hear his theory? we'll tell you what he said on the floor show next on countdown liberty mutual stood with me when this guy got a flat tire in the middle of the night. hold on dad... liberty did what? yeah, liberty mutual 24-hour roadside assistance helped him to fix his flat so he could get home safely. my dad says our insurance doesn't have that. don't worry - i know what a lug wrench is, dad. is this a lug wrench? maybe? you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance. potsc(in unison) drive russ, leland, gary: yes.

viacom held separate discussions with scripps.is consolidation as the media landscape changes. been leftanies have out of some of those new packages. earnings, morgan stanley trading came out the best of the banks, a contrast to goldman sachs where trading was a disappointment. back they 4%, holding dow average. joe: we have a trading halt on t-mobile, news is pending on that stock. ons, theto government u.s. two-year and 10 year yields , not a lot going on there. 10-year yields 2.27%. scarlet: the dollar holding near recent lows. this is a bloomberg dollar index, a fresh 11 month low. part of that is because the euro has gained more than 9% before today to its highest level since may 2016. the euro now pulling back from gains before tomorrow's ecb decision. the boj also holding its meeting tonight, the only major central bank to show a clear commitment to maintaining stimulus. i am watching dollar candidate , the latestw 1.26 batch of canadian manufacturing data stronger than did, bolstering the case of another rate hike. joe: on

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

. >> viacom was mentioned in the article. >> viacom was mentioned.cable network company right now, they're trying to reformulate their content. in terms of how -- will it work online will it work on snapchat >> does scripps have any really, really hot content meaning i'm thinking if you're a verizon -- >> must have >> in other words like there's a fight for the skinny bundle. everything's going online. youtube has more -- >> yes, within the scripps universe what is must have what is the must have network? >> none of it is must have that's the problem it's great background tv that's what i call it. >> like food network >> something you turn on and you can watch, and like maybe get into it but you're not looking to watch it necessarily. there's always going to be a core audience for those types of -- >> but i'm being generous for a second the food network stuff translates in a big way online it does. >> and a lot of that kind of programming does translate on line in a very different way some of the home stuff >> so i think it's a good point. i think fo

then you have viacom i mean now time warner that don't particularly care about informing the public they care about yielding yielding profit for their shareholders and themselves so the profit motive that got invested into our news so you have someone like donald trump that comes along whether it's c.n.n. m.-s. n.b.c. they've been bleeding viewers for years especially younger viewers they need a sugar high to get their ratings up you have a circus animal like donald trump coming down the escalator you know mexicans are rapists this and that so who's what's going to make us more money and get ratings well showing bernie sanders talking about the fact that our our networks and our parent company is are part of the reason we have such income inequality or let's just show trump and make it a reality t.v. show so the profit motive that was allowed by clinton and others deregulation allowed someone like trump they trump tweeted something at seven am that was what they did all day on a loop on c.n.n. say that with the new york times washington post so blame blame not just. clinton blame the fac

the industry and i realize i haven't talked to you in so long that i haven't spoken to you since viacomnd cbs did not happen i'm curious, when you think about that combination, which for a while was, of course, discussed and even encouraged my your controlling shareholder, why was it something that you did not, at that time, want to pursue and looking back six months later, is it still something you feel as though it was a good decision not to pursue >> yeah, you know what we all decided together and ultimately, the controlling shareholder, the rodestones decided, the companies were better off operating individually viacom, obviously, appointed a new ceo and they're doing fine and it's been beneficial for us. obviously, as we g doo down the road and get re-transmission advisories, it is better for us to be independent and we're very happy that decision was made and i think viacom has, as well. i think it worked out well for everybody. it was something we looked at very carefully but as i said, the controlling shareholder ultimately decided that it would be better to be separate >> and l

oftory at the beginning april, you can see how disney, cbs, viacom, 21st century fox, have all laggeds was the best performer, still down 6%. netflix was up 10%.that doesn't include the post-market period, which will also increase after the nasdaq reacts properly. that is something to watch out for. haidi: that's right. i can't wait for that session to see how the stock reacts. it these questions, is sustainable, can they repeat this for another quarter? line is the company actually going to turn a profit? meantime, 30 minutes away from the opening in china and hong kong. in yesterday's session decoupling from the equity rally elsewhere. singapore, taiwan, and malaysia just coming online. sophie: taking a look at what's going on today on this trading session, we are seeing stock rally -- -- asia hitting a wall of asia stocks snapping a six-day third. we have aussie shares leading the data about 8/10 of a percent, falling for a second day. we have the nikkei 225 losing about half a percent after a three-day weekend. at 112.44.lar yen new zealand assets are looking under pressure, given

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

discovery outbide viacom for scripts. they're behind the hgtv network.covery tried to acquire scripts two times before. >> molly: a man hunt underway in alabama after 12 dangerous inmates escape. how many are still at large? and a massive lawsuit. how lawmakers fighting the opioid epidemic saying drug manufacturers misled the public. with glucerna... ...made with carbsteady... ...to help minimize blood sugar spikes... ...you can really feel it. now with 30% less carbs and sugars. glucerna. >> i'm harris faulkner. the pentagon is giving an update on the north korea missile launch saying it was the longest missile test in their history. so what could that mean? what will our president do next? also, new details about interesting real estate transactions by debby wasserman schultz's i.t. guy. she's the chair of the dnc. what is it about? florida declares a state of emergency as tropical storm emily makes a landful. we're live on the coast with an update coming up at the top of the hour. >> molly: right now, police in northern alabama still on the hunt for o

co-founder of the huffington poegs, whi post, the chairman of buzzfeed sits on the board of blade and viacomether they both work at leer hippo ventures they have invested in over 300 companies, including plated we'll talk about all those issues and we have david zasloff, chairman of discovery. we have media, venture capital earnings a busy three hours >> we look forward to it i'll join you for bank earnings, eight minutes to go until "squawk box. if you are just waking up. senate republicans pulled their healthcare bill after two more gop lawmakers came out against it a big move in the dollar on the back of that news, but not a move in fight chorutures which at this hour >>> let's dits cuscuss what thi means for the futures. the latest news overnight perhaps more pressing. big reaction in the dollar but not in the equity markets to this washington lawmaking news judge for us those two reactions from the various markets and if they're fair >> maybe we should be talking "game of thrones." this has been a challenging xwri issue for the house and senate equity markets are clearly focused on earn

. >>> in deal news, viacom has told scripps an all-cash bid it yesterday david faber reported that the skscripps family want cash deal. >>> and citi moving higher yesterday. they say restructuring is over and his new earnings targeted supported it, their first investor day in nine years in particular earnings targets in terms of planning to return over $20 billion in cash over the next three years to shareholders and 11% roe target and 20 efficiency target in the low 50%. which is well ahead of analyst forecasts. ceo even spoke of a $100 stock price target analysts say this is ambitious and speaks of the growing confidence that he has in the business i'd say in terms of valuation, citi of course have had astruci financial crisis and that's why valuation compared to jmpt p mopmorgan. so again you can see the potential for citi to play catch up taken very well by the market yesterday. up over 2% and on a programming note, don't miss jim cramer's exclusive with the citi ceo tonight at 6:00 p.m. we've been starved really of access to them in a media sense for quite some time. >> and you we

quickly consolidating and i think there's still other places you can look within the industry maybe viacomquired, maybe sony is an acquirer. there's interesting spaces to play in here >> coach jefferies downgraded it to hold from buy >> i think jefferies had a great call the o'stock upgrading it -- >> they say it's all in. >> all priced in i'd be curious if jimmy's channel checks this weekend in women's hand r handbags. we'll get to it next week. >> a little gratuitous a little forced. you did do channel checks before we'll be right back with final trades where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. (upbeat dance music) (bell ringing) what?pony neighing] hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you

and viacom looking to make a cash bid discovery also said to be bidding but not cash offer scripps family wants 50% of the deal in cash and the deal could come soon. >>> president trump says that apple ceo tim cook promised to build three big plants in the united states. trump made that comment in an interview with the "wall street journal. apple doesn't do much of its manufacturing, but one of its major suppliers fox con is expected to mike aun announcement about u.s. based manufacturing as soon as today in other news, president trump giving mixed signals on who he height pick to be the next fed chair. the president said he might renominate janet yellen to a second term, but is also considering gary cohn. trump said yellen has done a good job he also said he likes her because she's a low interest rate person. the president said he would likely announce his peck at the end of the year. >> if i remember correctly, he hated low interest rates for a very long time >> no, he just said that -- >> he used to say he liked it as a real he is say ty thestate guy >> and he was saying the narrative

both discovery corporation and viacom are vying to buy the company.with a big push into original content. we talked with the ceo about how the company is going directly up against amazon and netflix thanks to its latest success ,"th "the handmaid's tale which just received 13 emmy nominations. >> you know, we started original programming at hulu five years ago, and our most recent batch started a year-and-a-half ago. we have been in business with some of the best out there. but this one is really special. it has broken through in a way nothing ever has for us. so we are really excited about it. emily: how do you get people outside of los angeles and new york to watch it? >> they do. a large chunk of our viewership is in the middle of the country. we do a lot of marketing all over the country. it is a story that resonates not only in new york and los angeles, but all over the world. emily: what is a mix of originals versus licensed content? mike: from a number of titles standpoint, it is very small. we have 3500 series of tv across the whole platform a

>> about 120 companies in the s&p 500 reporting earnings, big names, pfizer, apple, aig, kellogg, viacomng news, facebook shares downgraded by pivotal research they're sticking with $140 price target they say the big run up for facebook, it is about 50% higher year to date those shares getting downgraded. facebook shares are fraction nally lower on light volume in premarket session. see if that picks up as premarket gets toward opening bell. >>> another stock is snap. it faced challenges since going public in march. in that time frame, the stock down about 18% today could be a test for the company. early investors and employees can sell their shares as the first lockout period expires paul meeks, chief investment manager, good morning to you what do you do with pending lock out expiration, do you buy, sell, or hold? >> what i would do, i would hold the stock. we're already several dollars below the ipo price and more than half below the top. not talking a long time ago the ipo as recently as march, but i will tell you this we have this lock up triggering some sales, particularly from the

. >>> viacom is looking to buy scripts network and they're willing to do it all on cash they own travel channel and hgtv and discovery channel is also looking to buy the network. a decision is going to be made in the next few days and it's possible a deal won't happen. >> lyft teaming up with taco bell to get you a fast food mixed taco theme car and the companies are testing service in california during the next two weekends. they hope to expand to other markets and role it out owe nationwide next year. >> that has kevin mccarthy and ratings company neal son bill track how many watch live and only if you watch a recorded show in three days. >> next time to head out to watch a movie that movie could be watching you. disney developed a facial recognition system to record laughs, spilz and other expressions and using the fed back to shape movies and theme parks. the system is tested 1250 times for movies like. >> how many store writes are we doing about things watching us. >> they already are. >> your phone is watching you. come on. >> listen time. >> right. >> and i will say -- >> sometim

i mean for the more traditional media companies like those you mentioned, discoveries and the viacomset cetera, it's rough because you got companies like netflix and like amazon that can bring billions of dollars to bear on acquiring content. and so when you can bring billions of dollars to bear on acquiring content, you know you don't have to be able to always pick winners you can just make a lot of picks and some of them are going to be winners. the more traditional companies that are operating within tighter constraints and tighter shareholder constraints, it's a lot harder for them to, you know, to do that so i think that you're going to see, you know, an acceleration and the quality of content that you're getting from the over the top providers which is only going to in turn accelerate the move away from traditional cable bun bundles to over the top suppliers. >> the big surprise for me in this environment is youtube. it seems like youtube should be killing it right now i mean they practically invented online streaming video that can you watch from the browser they got the huge n

. >> ken, viacom competed aggressively here. i'm saying that you don't have.o i'm curious whether you were making a decision about whom to sell the company to, was it only price? why not via come >> i'm not going to, as you said, i'm not going to speculate and speak on anything that may or may not happen in the past. only focusing on the future. the real reason we're here today talking about this merger is as i said at the top, it's great for our shareholders this was approved by the scripps family puts the scripps family now back in business with john malone who they own cable systems with years ago. with the newhouse family who they were partners in the newspaper industry and also at the end of the day the family like me believe this was the very best home for our employees. the opportunity for our employees and our brands to do things with them frankly that we would have clalchallenges based fact we don't have the international infrastructure it's the best deal and the best partnership. >> the thing that makes -- >> can i ask one more question though >> fin

is in talks to combine with scripps scripps has brands like hgtv, travel and the dui network and viacomalso working on a bid for scripps. another interesting turn in media, i wonder if the names do need to start to get together. >> if you look at netflix, they created juggernaut with disney selling a lot of assets. hbo allowing them to put on a bunch of different shows from the library. they are looking at going, we have just created an unstoppable monster here talking about netflix is i said this is a couple hundred million subs and got a laugh drop off twitter and now we have broken 100 if you look at it from a top-down analysis of $3 billion online on broadband, the other $1.5 billion don't go to bro broadba broadband. 10% to 20% people on broadband could be on netflix. if you look at them, 250 million subscribers is nott unreasonabl. >> exactly if you look at it now, they have hit the tipping point magical when the majority of the users and/or revenue starts to come international. this is going to be a google and facebook-like story where google and facebook could never operate and

passes. >> and barton, does this lead to other mergers in this category you know, there was talk that viacomalso interested in scripps. what are we going here do you think? >> well, look, i think it makes more sense for scripps and discovery to come together one of the reasons is that skrips is trying to expand internationally. that's one of discovery's strengths. to john's point, has spoken about combinations of free radicals so to think there could be some snowballing consolidation push through, you know, this entity to look at the others that he named, makes sense you know, i think generally, tv network companies need to look at a consolidation stage you know, i think this is a maturing industry with pressures, scale helps handle some of these pressures. i think generally, nma is one of the themes in the group. >> yeah burton, i just read that media mna, it's the lowest number in quite some time. what is it going to take just for more deal making and how much are you ultimately talking about? >> well look, i think that once you see people dance, you know, it will gets more people in the m

. >>> tyler perry signed a multi year partnership agreement with viacom.mpass television and short form videos. he'll produce roughly 90 episodes of original series content each year. perry says he'll also continue working with own and lion it's gate on project. >> the a traveling replica of the vietnam memorial is opening. it's on display at pendel memorial ball field through the weekend. 136 bucks county residents are memorialized on that wall. their names were read allowed today. crews brought the wall here in pieces from florida earlier this week. it will be returned on monday. >>> a slimy mess on an oregon highway is finally cleaned up tonight. a truck carrying 7500 pounds of fish was approaching construction and tried to stop. unfortunately a container of eels went flying off the truck and landed on another car and all over the road. when the become stressed they secrete a slime which you can actually see. >> ugh. >> that's right, monica. crews brought in bulldozers and hoses. they were eventually able to clear the roadway and reopen it. ready for di

. -- of viacom.re said to be advanced discussions, and a deal could take place as soon as this month, according to our reporting by alex sherman. sears getting a big lift today after forging a deal to offer appliances on amazon's website. it is good news for sears's shareholders. not great news for home depot and lowe's, which sells appliances. those stocks off by 4% or 5%. very quickly, we are looking ahead to microsoft, ebay, and visa results. the nasdaq is at yet another record high powered by big cap tech names. them.re a couple of a look atet's take government bonds around the world, kind of doing a full tour today of key ones. 10 year yield not moving much. german 10 year yield, same movement, but much more volatile intraday. there was the ecb press conference earlier in which draghi kind of tried to sound the dovish, but people were skeptical. not a huge move area a bit of a rally on ten-year yields in italy. south african rates also down nicely on a surprise rate cut from the sarb. people wer