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00:00ROMAINE: INFLATION IS BACK. STOCKS DRIFTING LOWER AND INFLATION EXPECTATIONS DRIFTING HIGHER. THE MAIN BOSTICK ALONGSIDE SCARLET FU. -- ROMAINE BOSTICK ALONGSIDE SCARLET FU. SCARLET: THIS IS THE FED SPEAKERS ARE REMARKABLY CONSISTENT ABOUT THEIR MESSAGE. INFLATION IS AN ISSUE AND THE PATH OF RATES IS HIGHER, NOT FLAT, NOT LOWER. ROMAINE: YOU CAN LOOK AT THE CONSISTENCY OUT OF THEM BUT NOT SEEING THAT IN THE MARKET. A LOT OF DIVERGING OPINIONS ABOUT WHERE WE GO NEXT. WE ARE DOWN 0.9% ON THE S & P 500. THAT IS THE COURSE OVER THE LANDSCAPE. YIELDS ARE LOWER. WE SAW A RECORD FOR FOREIGN BUYERS GOING BACK 20 YEARS. BUT YOU HAVE TO START WITH THE STORY THAT CAUGHT MY ATTENTION. USED CAR PRICES. THIS WAS THE MONTHLY INDEX AND IT WAS USED CAR PRICES THAT WERE THAT CANARY IN THE COAL MINE IN 2020. THAT WAS THE BIG SPIKE AND IT WAS ALSO THE CANARY WHEN PRICES STARTED TO COME DOWN. AND NOW THEY ARE DRIFTING BACK UP. SCARLET: IT INVITES A LOT OF QUESTIONS, ONE OF WHICH IS, IS THERE GOING TO BE A SECOND WAVE OF INFLATION? WE KEEP THINKING IT IS GOING TO HEAD DOWN BUT WHAT IF IT MOVES THE OTHER DIRECTION? ROMAINE: THAT IS A BIG QUESTION AND GET BAXTER FRIDAY'S JOBS REPORT -- AND IT GETS BACK TO FRIDAY'S JOB REPORT. WHAT ELSE ARE WE TALKING ABOUT? SCARLET: WE ARE GOING TO BE TALKING ABOUT BONUSES AT CREDIT SUISSE. ROMAINE: ARE WE GETTING BONUSES? SCARLET: I THINK WE ALREADY DID. HOW WAS YOURS? ROMAINE: I HAVE NOT LOOKED YET. SCARLET: ON WALL STREET IT IS ABOUT WHETHER YOU WILL STICK AROUND. ROMAINE: AND WE ARE GOING TO GET TO THE BIG NEWS OF THE DAY. AFTER THE BELL WE GET EARNINGS INCLUDING FROM DISNEY. THE NUMBERS GOING TO BE IN FOCUS BUT MORE IMPORTANTLY PEOPLE FOCUSED ON THE FIGHT OVER THE FUTURE OF THIS COMPANY. SCARLET: IT IS ABOUT STRATEGY AND HOW BOB IGER LAYS THINGS OUT AS NELSON PELTZ IS PUSHING FOR ALL KINDS OF THINGS. DISNEY'S TAKE IS, WE ARE GOOD. WE DO NOT NEED YOU. ROMAINE: BIG EARNINGS DAY AND WE WERE TALKING EARLIER ABOUT UBER. WE HAVE GOTTEN A REAL SENSE WITH HALF OF THE S & P 500 REPORTING. A LOT OF PEOPLE WERE EXPECTING RECESSION AND EARNINGS RECESSION. BUT BASED ON THE LATEST DATA AND THAT BLOOMBERG HAS CRUNCHED THINGS ARE NOT AS BAD AS FOLKS EXPECTED. PEOPLE WERE EXPECTING A DEEP EPS DECLINE. SO FAR, WE ARE UNDER T 3%. ROSS MAYFIELD IS JOINING US. IT IS HARD TO DEFINE BUT THERE WAS A BROAD THEME COMING INTO THIS YEAR. THE IDEA WE WOULD SEE ROCKING THIS IN THE FIRST OR SECOND QUARTER BUT THERE WAS GOING TO BE MORE SUNSHINE AND THE SECOND HALF OF THE YEAR. WHAT WE'VE SEEN SO FAR WITH THE ECONOMIC DATA AND EARNINGS DO YOU THINK THAT WILL HOLD? ROSS: I THINK THE STRENGTH AND ECONOMIC DATA TO START THE YEAR MIGHT SUGGEST WE PUSH TO SLOW DOWN A LITTLE BIT. IF YOU ARE ADDING 500,000 PLUS JOBS IN THE UNEMPLOYMENT RATE IS AT 3.4%, AND WAGE GROWTH IS HEALTHY, IT IS HARD TO SEE THAT KIND OF ROCKING US IN THE FIRST QUARTER -- ROCKINESS IN THE FIRST QUARTER. WE ARE PUSHING THE SLOWDOWN OUT TO 2023 BACK HALF OR 2024 STORY. ROMAINE: THAT BECOMES THE NARRATIVE. WHEN YOU ADD THIS ALTOGETHER, IS THERE BALANCE THAT YOU ARE SEEING? ARE YOU SEEING MORE BALANCE BASED ON WHAT WE SAW SIX MONTHS AGO? ROSS: I THINK SO AND THE MARKET REFLECTED THAT. WE HAD A SELLOFF INTO THE END OF THE YEAR. EVEN IF EARNINGS CONTRACT A LITTLE BIT HERE, WE ARE NOT LOOKING AT AN EARNINGS CONTRACTION TYPICAL OF A MAJOR RECESSION. WHAT YOU ARE SEEING FROM COMPANIES OR HEARING THEM SAY IS THINGS ARE NOT GREAT BUT THEY ARE NOT THAT BAD EITHER. IT IS A MUDDLE THROUGH ECONOMY. I THINK THAT IS NOT A BAD OUTCOME. IT IS NOT THE PERFECT SOFT LANDING BUT VERSUS THE HARD LANDING THAT SEEMED POSSIBLE SIX OR NINE MONTHS AGO, I THINK WE ARE FINDING THAT BALANCE AND SETTING UP FOR A SMOOTHER PATH INTO 2024. SCARLET: IF IT IS A MUDDLE THROUGH ECONOMY, ARE THE GAINS WE HAVE SEEN ACCURATE? ROSS: IT FEELS LIKE THE MARKET IS PROBABLY OFFSIDES NEAR TERM. THAT IS A REALLY STRONG RALLY. VALUATIONS ARE EXPANDING, EARNINGS ARE FLAT TO DOWN. THIS IS VALUATION LED AND IN A WORLD WHERE RATES ARE 4.5% TO 5% AND GOING HIGHER, IT IS HARD FOR ME TO TOTALLY GET BEHIND EXPANDING VALUATIONS. I THINK WE ARE OFFSIDES. SENTIMENT HAS SWUNG FROM BEARISH TO A LITTLE BIT MORE BULLISH. BUT I THINK THE MARKET IS PRICING IN MORE OF THAT SOFT LANDING SCENARIO. TO THE EXTENT THE ECONOMIC PICTURE HAS IMPROVED, I THINK THE RALLY CAN BE JUSTIFIED. I JUST DO NOT KNOW WHETHER WE HOLD IT INDEFINITELY. SCARLET: WHICH IS A KIND OF A WAITING GAME. DO YOU PUT YOUR MONEY IN PLACES LIKE EUROPE, WHICH HAS SEEN A PRETTY POWERFUL ADVANCE? OR EMERGING MARKETS LIKE CHINA AND INDIA? ROSS: I THINK 2023 COULD BE THE YEAR OF INTERNATIONAL DIVERSIFICATION. IT HAS BEEN SOMETHING U.S. INVESTORS COULD LARGELY IGNORE THE BETTER PART OF A DECADE. I THINK THE SECTOR IN EUROPE HAVE AVOIDED THE ENERGY CRISIS AND THE STOCKS ARE RESPONDING STRONGLY. THEY HAVE A VALUE TILL NATURALLY -- TILT NATURALLY. ALL OF THESE PLACES, INCLUDING THE U.S., HAVE THEIR IDIOSYNCRATIC PROBLEMS BUT IT WILL BE A YEAR OF LOOKING AT YOUR ALLOCATION, SAYING ARE YOU OFFSIDES WITH THE U.S. ALLOCATION? SHOULD WE REALLOCATE? I THINK THAT IS LIKELY. ROMAINE: AS WE WORK OUR WAY THROUGH THIS CYCLE, ARE YOU ANTICIPATING THAT WE ARE GOING TO SEE MORE MEANINGFUL STRUCTURAL SHIFTS WITH REGARDS TO MARKET PARTICIPATION? ROSS: I THINK WE WILL. IT IS A TOTALLY DIFFERENT ENVIRONMENT FROM 0% INTEREST RATE TO A WORLD WHERE INTEREST RATES ARE 4%, 5%. THE FED WANTS TO HOLD THEM THERE. MAYBE INFLATION PROVES STICKY AROUND 4%. WE HAVE A PRETTY SIGNIFICANT SHORTAGE OF WORKERS. I THINK THERE IS A PRETTY DRAMATIC REGIME SHIFT. OFTEN WHEN YOU ARE EMERGING IN SOMETHING LIKE THAT LEADERSHIP CHANGES. THE POST DOT-COM BUBBLE, TECH WAS IN LEADERSHIP FIVE OR 10 YEARS DOWN THE ROAD AND IT WAS INTERNATIONAL AND VALUE THAT LED THE WAY. I DO NOT WANT TO WRITE OFF TECH GROWTH ENTIRELY BUT YOU WILL SEE MUCH MORE EVEN RETURNS THAT WILL FAVOR VALUE FOR SOME TIME. ROMAINE: ALWAYS WONDERFUL TO CATCH UP WITH YOU. ROSS MAYFIELD, INVESTMENT STRATEGIST AT BAIRD & CO. NEXT, THE PRESIDENT MAKING HIS PITCH TO CONGRESS. NOW HE HAS TO SELL THESE PROPOSALS THAT INCLUDE HIGHER TAXES. THE POTENTIAL ECONOMIC AND IMPACT. UBER HAS BEEN HAVING A GOOD QUARTER. EARNINGS DEFINE THE INFLATIONARY TRENDS. ANGELO ZINO IS GOING TO BE STOPPING BY TO GIVE HIS TAKE AND A BIG NIGHT LAST NIGHT. 38,390. I DO NOT KNOW WHERE YOU WERE IN 1984 BUT I KNOW WHERE WE WERE IN 2023. WE ARE GOING TO TALK SPORTS WITH GEORGE PYNE. SCARLET: HE IS ALSO A BILLIONAIRE. ROMAINE: I PLAN TO TALK ONLY ABOUT THE SCORING. [LAUGHTER] ALL OF THAT AND MORE, COMING UP. THIS IS BLOOMBERG. PRES. BIDEN: THOSE ARE THE FACTS. CHECK IT OUT. HOW DID CONGRESS RESPOND TO THAT DAY? THEY DID THE RIGHT THING, THEY LIFTED THE DEBT CEILING THREE TIMES. THEY PAID AMERICAN BILLS TO PREVENT AN ECONOMIC DISASTER IN THE COUNTRY. BUT TONIGHT I AM ASKING CONGRESS TO FOLLOW SUIT. SCARLET: PRESIDENT BIDEN SPEAKING DURING HIS STATE OF THE UNION LAST NIGHT. HIS COMMENTS LEANED HEAVILY TO THE ECONOMIC THEMES. HE VOWED NOT TO ALLOW THE U.S. TO DEFAULT AND CALL FOR HIGHER TAXES ON BILLIONAIRES AND STOCK BUYBACKS. JOINING US WITH MORE IS JOE MATHIEU, THE HOST OF "SOUND ON." OF THOSE THREE THINGS I MENTIONED THE ONLY THING THAT IS GOING TO GET RESOLVED OR BE ADDRESSED REALLY IS THE DEBT CEILING BECAUSE WE HAVE TO, OTHERWISE WE FACE DEFAULT. WHAT IS THE LATEST? JOE: THAT IS WHAT THE WHITE HOUSE WOULD SAY AND FRANKLY, THAT IS WHAT SPEAKER MCCARTHY SAYS. THE WHITE HOUSE WANTS TO RAISE THE DEBT LIMIT TO PAY FOR MONEY THAT IS ALREADY BEEN SPENT ON AMERICA'S CREDIT CARD. SPEAKER MCCARTHY HAS MADE AWARE HE IS COMMITTED TO AVOIDING DEFAULT. THE QUESTION IS HOW TO GET THERE AND THAT POINT WE HEARD IN THE ADDRESS LAST NIGHT YOU COULD ARGUE WAS THE TURNING POINT. THAT IS WHEN THE MOOD IN THE ROOM SHIFTED AS REPUBLICANS STARTED TO FEEL LIKE THEY WERE ON THEIR HEELS, BEING ACCUSED BY PRESIDENT BIDEN AND GOING BACK TO THE TRUMP ADMINISTRATION. THERE IS NOT A LOT LEFT TO NEGOTIATE. IF SOCIAL SECURITY AND MEDICARE ARE OFF THE TABLE AS BOTH SIDES SAID, WE ARE EITHER LOWERING DEFENSE SPENDING OR GOING AFTER DISCRETIONARY AND THERE IS NO CONSENSUS ON EITHER. ROMAINE: THE PRESIDENT SAID THEY HAD UNANIMITY. I THINK I SAW MARJORIE TAYLOR GREENE STAND UP AND AGREE UNLESS I AM MISTAKEN, WHICH IS POSSIBLE. I WANT TO TALK ABOUT THE TAX PROPOSALS. I AM CURIOUS OF YOUR INTERPRETATION AS TO WHY THOSE PROPOSALS? THERE IS A LOT OF SPECULATION THIS IS A TRAP FOR REPUBLICANS WITH REGARDS TO THE BILLIONAIRE TAX AND THE CAPITAL GAINS SURCHARGE. THIS IDEA -- BUYBACKS SURCHARGE, EXCUSE ME. THE IDEA THAT THESE ARE TWO NEGOTIATING POINTS THAT, IF REPUBLICANS PUSHBACK, IT COULD MAKE THEM LOOK BAD. JOE: THE BILLIONAIRE'S TAX IS ALSO -- YOU SAW ELIZABETH WARREN CLAPPING ON THAT ONE. THE EXPANDED TAX WOULD QUADRUPLE THE MONTH OLD TAX ON STOCK BUYBACKS IS INTERESTING. THE ADMINISTRATION IS LOOKING AT THIS CURRENT 1% TAX AND IT IS NOT MAKING A DIFFERENCE. THINK OF HOW MANY MASSIVE BUYBACKS YOU REPORTED ON RECENTLY FROM CHEVRON TO EXXON TO META AND THERE ARE MORE WHERE THOSE CAME FROM. THEY MIGHT HAVE AN OPPORTUNITY TO MAKE THIS A DETERRENT. COMPANIES SEE 1% QUADRUPLE AND YOU COULD IMPACT CORPORATE BEHAVIOR. BUT YOU WILL NOT SEE A REPUBLICAN MAJORITY GOING ALONG WITH THAT. ROMAINE: WE WILL SEE WHETHER ANYTHING GETS DONE. IT WILL BE INTERESTING TO SEE WHETHER MCCARTHY CAN GET HIS PARTY IN LINE WITH WHATEVER HE WANTS TO DO. JOE MATHIEU, CATCH HIM EVERY DAY AS THE HOST OF "SOUND ON" AT 5:00 P.M. WASHINGTON TIME. INFLATION WAS ALSO A BIG TOPIC LAST NIGHT. THE INFLATION REDUCTION ACT AND THE FIGHT THAT JEROME POWELL AND THE FED HAVE BEEN MAKING TO BRING THAT INFLATION RATE DOWN. THE TIGHT LABOR MARKET CONTRIBUTING TO THOSE HIGHER PRICES AND INTERESTING DEFENSE BY THE WHITE HOUSE. PUTTING OUT A STATEMENT REGARDING THE NON-HOUSING SERVICES DATA, DATA THAT JAY POWELL HAS SAID PUBLICLY. PCE IS COMING DOWN, CPI IS COMING TO, AND TOTALLY DIFFERENT METRICS. DANA PETERSON JOINING IS NOW, CHIEF ECONOMIST AT THE CONFERENCE BOARD. I DON'T WANT TO GET INTO SEMANTICS. I UNDERSTAND WHY THE WHITE HOUSE WOULD COME OUT WITH THIS STUDY AND SOME OF IT IS OVER MY HEAD, BUT THE GENERAL TREND IS YOU HAVE INFLATIONARY PRESSURES THAT ARE CLEARLY EASING IN POCKETS OF THIS ECONOMY. BUT THEN YOU GET A LABOR MARKET REPORT LIKE WE DID ON FRIDAY, USED CAR PRICES LIKE TODAY AND THERE IS EVIDENCE THE FED'S FIGHT IS FAR FROM OVER. DANA: I AGREE. I THINK THE FED IS STILL VERY CHALLENGED BY ELEVATED INFLATION. WHEN YOU LOOK AT THAT SUPER CORE MEASURE, THE CORE SERVICES LESS HOUSING, IT IS NOT COOLING OFF QUICKLY. EVEN WHEN WE LOOK AT HOUSING, WHICH INCLUDES THE RENTS, THE FED IS SAYING IT IS IN THE PIPELINE BUT WE ARE GOING TO HAVE SEVERAL MORE MONTHS OF INCREASES IN THE RENT COMPONENT OF THE CPI AND PCE DEFLATOR. GIVEN THAT BACKDROP AND THE FACT YOU STILL HAVE A VERY STRONG LABOR MARKET AND YOU ARE SEEING GAINS EVEN IN SECTORS YOU WOULD EXPECT WEAKNESS, IT SUGGESTS THE FED HAS MORE WORK TO DO. WE THINK THEY ARE IN LINE FOR TWO MORE 25 BASIS POINT RATE HIKES AND THEN THEY WILL KEEP RATES FLAT WHERE THEY ARE FOR THE BALANCE OF THIS YEAR. ROMAINE: I AM CURIOUS TO HAVE YOU EXPAND ABOUT WHAT HAS GONE ON IN THE HOUSING SECTOR. THERE SEEMS TO BE CONCERN THAT THERE DOES NOT SEEM TO BE HISTORICAL PRECEDENT FOR THE IDEA HOUSING PRICES AS WELL AS RENT WOULD COME DOWN MEANINGFULLY UNDER ANY SCENARIO. THE IDEA IS THAT IS STICKY. ONCE YOU GET THOSE INCREASES THEY PRETTY MUCH STAY. YOU MAY GET INCREMENTAL MOVES LOWER BUT YOU WILL NOT GET THAT WHOLESALE DROP YOU WOULD SEE IN A CONSUMER GOOD OR DURABLE GOOD. DANA: RENTS REFLECT WHAT IS HAPPENING IN THE HOUSING MARKET. LAGS FROM A YEAR TO A YEAR AND A HALF AND WE ARE SEEING WITH NEW RENTAL AGREEMENTS PRICES COMING OFF. ALL RENTS DO NOT GET REPRICED AT THE SAME TIME. I THINK THERE IS HOPE AND IF YOU MATCH THOSE SERIES UP, YOU DO SEE CORRELATION. BUT IT IS GOING TO TAKE TIME FOR RENTS TO REALLY COME OFF CONSISTENT WITH SLOWING HOME PRICE VALUATIONS. SCARLET: FOR THE FOLKS WORRIED ABOUT INFLATION, ONE THING THEY HAVE BEEN POINTING TO HIS USED CAR PRICES WHICH IS ONE OF THE BIGGER COMPONENTS OF THE CPI. APPARENTLY, EVERY PERCENTAGE POINT INCREASE IN THE RISE FROM PREOWNED CARS TRANSLATES INTO A FIVE BASIS POINT RISE IN THE OVERALL INFLATION RATE. WHY ARE USED CAR PRICES SUCH A CANARY IN THE COAL MINE FOR OVERALL INFLATION? DANA: I THINK, YOU KNOW, NOT ALL THE INCREASES IN INTEREST RATES HAVE BEEN PASSED ONTO THE CONSUMER. WE ARE SEEING MORTGAGE RATES ACTUALLY COMING OFF AND GOING THE OPPOSITE DIRECTION. IT COULD BE THE CASE THAT THERE IS MORE DEMAND FOR USED CARS AS PRICES HAVE COME OFF AND NOW WE ARE SEEING THE REVERSAL. BUSINESSES ARE SAYING, OH LOOK, DEMAND IS BACK. MAYBE WE CAN RAMP UP PRICES. BUT ALL IN ALL, I THINK GOODS PRICES AND CARS IN PARTICULAR ARE PROBABLY ON THE DOWNTREND. WHAT WE SAW IN TODAY'S DATA MAY BE JUST A ONE-MONTH FLIP. WE NEED MORE INFORMATION. SCARLET: GOT IT. WHAT IS YOUR CONFIDENCE THAT WE WILL NOT GET A SECOND WAVE OF INFLATION? THAT INFLATION WILL MOVE ONE DIRECTION, WHICH IS DOWN OR FLAT, AS OPPOSED TO UP? DANA: I THINK THE INGREDIENTS ARE THERE FOR INFLATION TO SLOW. WHEN YOU LOOK AT THE THINGS THAT ARE STICKY, LIKE FOOD PRICES, THE FED CANNOT DO MUCH. BUT WE DO EXPECT RENTS ARE GOING TO COME OFF, GOODS PRICES HAVE COME OFF, AND IT IS REALLY THE SERVICES ASPECT. THOSE IN PERSON EXPERIENTIAL SERVICES. IF PEOPLE START BECOMING CONCERNED ABOUT THEIR JOBS, WHICH IT SEEMS LIKE THEY ARE NOT TERRIBLY CONCERNED, BUT IF THEY DO, THEY WILL RAMP DOWN ON THE SPENDING ON SERVICES AND THAT WILL HELP INFLATION. I THINK IF YOU HAVE TO ASSIGN PROBABILITY, THERE IS GREATER WEIGHT ON PRICES CONTINUING TO SLOW. ROMAINE: I WANT TO GET YOUR PERSPECTIVE ABOUT SOME OF THE SURVEYS YOU ARE DOING AT THE CONFERENCE BOARD. LAST MONTH YOU PUT OUT THE BIG CEO SURVEY. I THOUGHT IT WAS PRETTY DOUR. MORE THAN HALF OF THE CEO'S SAID THEY WERE NOT EXPECTING A STRONG ECONOMY THIS YEAR. I THINK EVEN THE WORD YOU USED WAS "TEPID." I KNOW WE ARE ONLY A MONTH REMOVED FROM THAT SURVEY BUT HAS ANYTHING MATERIALLY CHANGED WHERE YOU THINK THE NEXT SURVEY WILL SHOW MORE OPTIMISM? DANA: WE ACTUALLY HAVE OUR CEO CONFERENCE SURVEY COMING OUT TOMORROW MORNING. KEEP YOUR EYE OUT FOR THAT ONE. THAT SHOULD HAVE AN UPDATE. ROMAINE: YOU DO NOT WANT TO LET US KNOW THE NUMBERS NOW? DANA: I CANNOT DO THAT. [LAUGHTER] THAT WOULD GET ME IN TROUBLE. SCARLET: TRYING TO GET DANA TO SPELL. DANA: BUT ON THE ONE HAND IN THE C-SUITE OUTLOOK SURVEY, WHICH IS WHAT ROMAINE IS REFERRING TO, YES, THE NUMBER ONE THING MOST CEO'S ARE CONCERNED ABOUT WAS RECESSION OR SLOW DOWN. BUT THEY ARE ALSO CONCERNED ABOUT LABOR AND ATTRACTING AND RETAINING TALENT. EVEN THOUGH YOU SEE THE GDP DATA PULLING BACK ON INVESTMENTS IN CAPITAL EQUIPMENT THEY ARE HOLDING ONTO THEIR WORKERS. THERE IS THIS COGNITIVE DISSONANCE, IF YOU WILL, BUT THE BIG ISSUE IS LABOR SHORTAGES, SOMETHING WE NEVER HAD TO THIS DEGREE. ROMAINE: WE ARE GOOD HAVE TO LEAVE IT THERE. ALWAYS WONDERFUL TO TALK TO YOU. DANA PETERSON, ONE OF THE BEST IN THE BUSINESS AT THE CONFERENCE BOARD. A LOOK ON THE ECONOMIC TEA LEAVES. THE BIG FOCUS ON INFLATION BUT I THINK IT IS INTERESTING IN LIGHT OF THE BIG STATE OF THE UNION ADDRESS THERE WAS A GALLUP POLL COMING OUT -- AND THAT IS THE BIG CLICHE QUESTION YOU ALWAYS ASK, ARE YOU BETTER OFF NOW THAN WHERE YOU WERE FOUR YEARS AGO -- BUT THE GALLUP POLL SHOWS ABOUT HALF OF AMERICANS SAY THEY ARE FINANCIALLY WORSE NOW THAN WHERE THEY WERE A YEAR AGO. SCARLET: THAT GOES BACK TO INFLATION AND WHETHER WAGES ARE KEEPING PACE WITH INFLATION. WAGES ARE GROWING BUT NOT AT THE SAME RATE INFLATION IS. THAT IS A BIG QUESTION EVERYONE IS ASKING. WHEN YOU HAVE INFLATION GOING UP 9% YOU ARE WONDERING, HOW WAS THAT SHOWING UP IN MY PAYCHECK? ROMAINE: I ONLY GET PAID IN SNACKS. [LAUGHTER] BUT THE IDEA THAT WE -- WE SPOKE ABOUT THE WAGE GAINS THAT MIDDLE AMERICA MADE AN LOWER INCOME AMERICANS MADE. THIS IDEA THAT DURING CERTAIN AREAS THAT INFLATION WAS STILL OUTPACING THAT. EVEN IF YOU WERE SEEING YOUR BOSS COME TO YOU AND SAY, YOU ARE GETTING THIS PERCENTAGE, YOUR TAKE-HOME PAY AT THE END OF THE DAY WAS GOING TO BE AFFECTED TO SOME DEGREE BY WHAT YOU ARE PAYING AT THE STORE. SCARLET: ABSOLUTELY. THE EXTRA MONEY IS BEING SPENT ON FOOD AND GAS. YOU ARE NOT SAVING ANY OF IT. ROMAINE: AND I SAID THIS FOR YEARS. THE ECONOMY, AT LEAST FOR REAL AMERICANS, NOT THE WONKY PEOPLE HERE, IT IS ABOUT HOW YOU FEEL. SCARLET: YES. ROMAINE: MOST PEOPLE ARE NOT LOOKING AT THE JOBS REPORT. THEY KNOW WHEN THEY GO TO THE GROCERY STORE AND WHAT THEY PAY. THAT IS WHAT FRAMES THEIR PERSPECTIVE. SCARLET: THAT GALLUP POLL, I THINK ANY ELECTED OFFICIAL WOULD BE THINKING, GIVE ME ANOTHER YEAR AND MAYBE THINGS WILL CHANGE. AT LEAST I AM NOT FACING REELECTION NEXT YEAR. ROMAINE: IF YOU ARE IN THE MARKET RIGHT NOW FOR A SOUPED UP 1994 HONDA ACCORD, YOU WILL PAY THROUGH THE NOSE FOR THAT. THE NASDAQ DOWN 1.5% ON THE DAY. FROM NEW YORK, THIS IS BLOOMBERG. ♪ ROMAINE: THE PRESSURE BUILDS AND WE ARE TALKING ABOUT INFLATIONARY PRESSURES GIVING A PAUSE TO THAT RALLY WE HAD TO START THE YEAR. WHETHER THAT WAS THE JANUARY EFFECT OR THE START OF SOMETHING NEW REMAINS TO BE SEEN. INTERESTING DATA POINTS AND EARNINGS AS WELL GIVING FOLKS PAUSE. 120 SOMETHING STOCKS ARE HIGHER ON THE DAY BUT IT DOES INVOLVE THE TESLAS AND MICROSOFTS OF THE WORLD. BUT THEN YOU HAVE META-PLATFORMS DOWN 3%, AMAZON DOWN TO PRESENT, AND TO COMPLETE -- AMAZON DOWN 2%. EVERYONE NOW PARSING THE TEA LEAVES AS WE HEAD DEEPER INTO EARNINGS SEASON. EARNINGS COMING AFTER THE BELL INCLUDING A FIRM, DISNEY, AND MATTEL. GOING TO GET MORE OF A READ ON WHETHER THAT IS TRULY AN EARNINGS RECESSION OR MAYBE IF WE DODGED A BULLET. JOHN: KEEPING YOU UP-TO-DATE WITH NEWS FROM AROUND THE WORLD, HERE IS THE FIRST WORD. I AM JOHN HYLAND. PRESIDENT BIDEN IS ON THE ROAD TODAY IN WISCONSIN. IT IS ONE OF TWO STOPS HE HAS PLANNED AS PART OF A TRADITIONAL POST STATE OF THE UNION ADDRESS. HE IS GOING TO PROMOTE HIS POLICIES AND THEMES FROM THE SPEECH. UKRAINE, PRESIDENT ZELENSKY HAS MADE A SURPRISE VISIT TO THE U.K., ONLY HIS SECOND VISIT OUTSIDE THE COUNTRY SINCE THE WAR BEGAN. HE SPOKE TO PARLIAMENT AND MET WITH RISHI SUNAK FOR NEW FIGHTER JETS. > > LONDON HAS STOOD WITH KYIV SINCE DAY ONE. FROM THE FIRST SECONDS AND MINUTES OF THE FULL-SCALE WAR GREAT BRITAIN, YOU EXTENDED YOUR HELPING HAND WHEN THE WORLD HAD NOT YET COME TO UNDERSTAND HOW TO REACT. JOHN: HE HEADS NEXT TO PARIS TO MEET WITH LEADERS OF FRANCE AND GERMANY. TURKEY'S PRESIDENT IS VOWING TO REBUILD THE REGION HIT BY MASSIVE EARTHQUAKES. HE MADE HIS FIRST VISIT TO THE DISASTER ZONE TODAY. THE DEATH TOLL HAS NOW RISEN ABOVE 11,000. THOUSANDS MORE ARE TRAPPED INSIDE BUILDINGS THAT COLLAPSED. CHINA WANTS THE U.S. TO RETURN THE DEBRIS FROM THE BALLOON IT SHOT DOWN. CHINA'S ABBASID ARE TO FRANCE SAID IT BELONGS TO CHINA. BEIJING CLAIMS THE AIRCRAFT WAS A CLIMATE VEHICLE ALTHOUGH THE U.S. SAYS IT WAS FOR SURVEILLANCE. NAVY DIVERS ARE TRYING TO RETRIEVE THE PARTS. THREE TOKYO OLYMPICS EXECUTIVES WERE ARRESTED, ACCUSED OF VIOLATING ANTIMONOPOLY LAWS. THOSE OFFICIALS SECRETLY AGREED ON THE BIDS IN 2018. THE TOKYO GAMES WERE POSTPONED FOR A YEAR AND HELD IN 2021 BECAUSE OF THE PANDEMIC. GLOBAL NEWS POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN OVER 120 COUNTRIES. I AM JOHN HYLAND AND THIS IS BLOOMBERG. ROMAINE: THIS IS "BLOOMBERG: THE CLOSE." A LITTLE AFTER 2:30 IN NEW YORK. LETS YOU CAUGHT UP ON THE COMMODITY SPACE. CRUDE FUTURES COMING OFF THE BIG EIA REPORT. OIL DEMAND IS DOWN. INVENTORY HAS BEEN BUILDING AND YOU THINK PRICES WOULD BE DOWN. UP 1.7% ON THE DAY. THIRD STRAIGHT DAY OF GAINS. THIS HAS BECOME MUCH MORE OF A MACRO DRIVEN STORY. A LOT OF OUR EYES ON WHAT WE HEARD OUT OF JAY POWELL YESTERDAY AND THE OTHER FED MEMBERS ABOUT STAYING THE COURSE. DRAWING YOUR EYES TO THE LAST TWO LINES. ALUMINUM FUTURES DOWN ON THE DAY. A LOT OF THIS HAS TO DO WITH THE STOCKPILES WE CONTINUE TO SEE BUILDING UP AT THOSE SOUTH KOREAN PORTS. UNCONFIRMED SPECULATION A LOT OF THAT IS RUSSIAN ALUMINUM BEING DUMPED ON THE MARKET. THAT HAS BEEN THE BIG DAMPER OVER THE LAST FEW DAYS. ESPECIALLY WITH NEW U.S. TARIFFS LOOMING. SCARLET: THE REALITY AFTER A LOT OF DAYS OF OPTIMISM OVER THE REOPENING OF CHINA AND WHAT THAT MEANS FOR DEMAND AND COMMODITIES. LET'S LOOK AT THE BIGGER PICTURE. NO CONSUMER LIKES INFLATION. THEY WANT PRICES TO STOP RISING AND THE RAPID INFLATION HAS PUSHED THE FED TO EMBARK ON ITS MOST AGGRESSIVE RATE HIKE IN DECADES. HERE'S HOW IT SHOWING UP FOR CONSUMERS. HIGHER INTEREST RATES ON THEIR CONSUMERS FROM 12% IN 2017 TO 15% IN 2019. IN 2022, A STRAIGHT SHOT UP. THE ACTUAL RATE YOU MAY BE CHARGED THE PENS ON THE CREDIT CARD COMPANY, YOUR CREDIT SCORE AND YOUR OVERALL FINANCIAL HEALTH. NEVERTHELESS, WHEN YOU LOOK AT THE PREDICTIONS OUT THERE, BANKRATE SAYS CREDIT CARD RATES WILL HIT A 40 YEAR HIGH BY THE END OF THE YEAR. LOOK FOR THAT TO CONTINUE HEADING NORTH. ROMAINE: HAVING AN IMPACT ALREADY. SOMETHING ON THE RADAR OF THE PRESIDENT, MENTIONING THE CREDIT CARD FEES, WHAT HE IS CALLING JUNK FEES. A LONG TIME EFFORT TO POTENTIALLY CUT THAT. YOU RECENTLY WROTE A COLUMN ABOUT THIS. I AM CURIOUS ABOUT THE FEE STRUCTURE AND SPECIFICALLY THE ONE DIVIDED DEMONSTRATION -- AND I THINK THIS KIND OF PREDATES HIM -- WHAT ARE THEY FOCUSING ON? WHAT IS THE POTENTIAL IMPACT THAT COULD HAVE? > > WE HEARD FROM THE PRESIDENT LAST NIGHT DURING THE STATE OF THE UNION THAT HE WANTS TO CUT LATE FEES 75%. IF YOU ARE A REPEAT OFFENDER, YOU CAN SEE A FEE OF $41. ROMAINE: JUST FOR MISSING A PAYMENT. ALEXIS: AND HE WANTS TO CUT THAT DOWN TO EIGHT DOLLARS. ROMAINE: WHY? I DO NOT MEAN TO SPLIT HAIRS BUT IF YOU ARE LATE ON YOUR PAYMENT, SHOULD YOU NOT PAY A FEE? ALEXIS: IT IS A FAIR POINT BUT WITH THE PROTECTION BUREAU THINKING THIS IS NOT FAIR AND THE COSTS INCURRED BY THE LENDER ARE NOT COMMENSURATE WITH THE PENALTY. YOU SHOULD HAVE TO PAY A LATE FEE BUT $35 IS THE AVERAGE AND THAT IS WHAT IS OUT OF WHACK. SCARLET: IT IS UNNECESSARILY ONEROUS. ALEXIS: CORRECT. SCARLET: IF ANYTHING GETS PUSHED THROUGH, AND THE CORRECT THING TO ASK IS, IS THE REGULATION ON CREDIT CARD COMPANIES? ALEXIS: THERE IS REGULATION OF CREDIT CARD COMPANIES BUT THERE IS NO REGULATION WHEN IT COMES TO INTEREST RATES. IF THE PRESIDENT IS SUCCESSFUL, WHICH IS A BIG IF, THE BANKS ARE GOING TO LOOK TO RECOUP REVENUE. ONE OF THE PLACES THEY MAY LOOK IS TO RAISE INTEREST RATES. RIGHT NOW, THERE IS NO FEDERAL LAW CAPPING INTEREST RATES. ROMAINE: THEY CAN GO AS HIGH AS THEY WANT BUT THEY ARE ALREADY HIGH. I FORGOT WITH THE AVERAGE IS THAT WE ARE IN THE 20% RANGE. ALEXIS: THE AVERAGE IS 20% AND FOR A NEW CARD 23.39%. WE ARE EVEN SEEING STORE CREDIT CARDS THAT HAVE HIGHER RATES IN EXCESS OF 30%. THESE ARE MIND-BOGGLING NUMBERS. ROMAINE: DO YOU HAVE ANY PERSPECTIVE OF WHAT THE CHANGE HAS BEEN? HOW HIGH HAS IT GONE? ALEXIS: IT IS FAIR TO SAY THAT CREDIT CARD COMPANIES ARE RAISING RATES FASTER AND FARTHER THAN THE FED IS HIKING. THE FED IS HIKING SO IT IS NATURAL FOR INTEREST RATES TO GO UP BUT IT FEELS LIKE THE LEVEL AT WHICH THEY ARE GOING IS BEYOND THAT. ROMAINE: IT IS A GOOD THING OUR SAVINGS RATES ARE GOING UP. [LAUGHTER] SCARLET: PEOPLE ARE DRAWING DOWN OTHER SAVINGS AND SPENDING OTHER CREDIT CARDS. THAT IS NOT A GREAT SIGN EITHER. YOU MENTIONED HOW THESE CREDIT CARDS ISSUED BY STORES HAVE HIGHER RATES. WHY IS THAT? ALEXIS: THEY TEND TO COME WITH HIGHER RATES BECAUSE THEY ARE OFFERED ALMOST TO ANYONE. WHEN YOU ARE AT THE CHECKOUT THEY ARE NOT LOOKING FOR CREDIT SCORE THEY ARE JUST ASKING, WOULD YOU LIKE TO SAVE ON YOUR PURCHASE? SCARLET: EVERYONE IS A SUBPRIME BORROWER. ALEXIS: CORRECT. THEY ARE TAKING ON MORE RISK SO THEY COME WITH HIGHER RATES. SCARLET: THAT IS WHAT YOU GET FOR AN IMPULSE CREDIT CARD. ROMAINE: IF YOU LOOK AT YOUR CREDIT CARD AND YOU SEE THAT RATE GOING UP, DO YOU HAVE AN OPTION TO MOVE TO A LOWER RATE? ALEXIS: YOU COULD TRY. YOU COULD TRY TO DO A BALANCE TRANSFER AND TRANSFER TO A CARD WITH A LOWER RATE. THERE ARE OPTIONS BUT THE HIGHER YOUR CREDIT SCORE THE MORE OPTIONS YOU HAVE. SCARLET: FANTASTIC. ALEXIS LEONDIS RATES PERSONAL FINANCE COLUMN FOR US AT BLOOMBERG. I REALLY RECOMMEND YOU LOOK AT HER COLUMNS. STILL AHEAD, UBER REPORTING ITS STRONGEST QUARTER EVER SUGGESTING RISING INFLATION NOT ENOUGH TO STOP CONSUMERS FROM HAILING RIDES AND ORDERING TAKEOUT. WE WILL HEAR FROM THE CEO OF UBER, NEXT. THIS IS BLOOMBERG. ROMAINE: LET'S GET TO THE TOP CALLS. WE START WITH DISCOVER. GETTING CUT TO EQUAL WEIGHT AT MORGAN STANLEY. FAVORING AMERICAN EXPRESS SAYING DISCOVER HAS GREATER RISK OF CREDIT LOSSES THAT COULD WEIGH ON EPS GROWTH. SHARES DOWN 1.5%. AMERICAN AIRLINES GETTING THE BOOST AT RED BURN. MORE BULLISH ON AIRLINES OVERALL, PARTICULARLY THOSE WITH A LARGE INTERNATIONAL ROUTE STRUCTURE. AMERICAN IS THAT THE RIGHT END OF THE CYCLE. SHARES UP FRACTIONALLY ON THE DAY. TRIP ADVISOR, A DOUBLE UPGRADE TO UNDERPERFORM AT BANK OF AMERICA THE ANALYSTS POSITIVE ON THE BOOKING PLATFORM'S SERVICES. IT SEES STRONG DEMAND AND GROWTH IN THE GOOGLE USA. UP 4% AND THOSE ARE OUR TOP CALLS. SCARLET: SPEAKING OF, UBER'S EARNINGS CAME AS A SURPRISE AS THEY BEAT ESTIMATES. THESE RESULTS COME AS TECH COMPANIES OVERALL ARE CUTTING COSTS AND OF WORKERS. BLOOMBERG SPOKE TO THE UBER CEO ON HOW HE IS MANAGING TALENT. DARA: I THINK THIS NEW ENVIRONMENT WHERE THERE IS MORE DISCIPLINED IN HIRING ACROSS THE TECH SECTOR IS A HEALTHY REFRAMING IN TERMS OF COMPENSATION. AND WE WILL BE MANAGING OUR STOCK-BASED COMPENSATION AND WE WILL LEVERAGE STOCK-BASED COMPENSATION QUITE AGGRESSIVELY. SCARLET: JOINING US NOW IS ANGELO ZINO, CFRA'S SENIOR INDUSTRY ANALYST DISCUSSED HOW UBER MANAGED TO EXCEED EXPECTATIONS. LET'S FRAME UBER AND LYFT. IT IS CLASSIFIED AS AN INTERNET MEDIA SERVICE. IN WHAT WAYS IS UBER NOT REALLY A TECH COMPANY? ANGELO: I THINK AS FAR AS UBER IS CONCERNED, I THINK YOU LOOK AT IT THE FACT THAT THEY ARE SUPPLY AND DEMAND DRIVEN. THEY ARE RELIANT ON THE ACTUAL USAGE OF HUMANS TO SUPPLY THAT NETWORK. THAT IS NOT SOMETHING YOU NECESSARILY GET FROM A LOT OF THESE PURE TECH ORIENTED COMPANIES. I THINK THAT IS WHAT MAKES THEM A LITTLE DIFFERENT FROM THESE OTHER HIGHER GROWTH TECH COMPANIES. ROMAINE: TALK TO US ABOUT THE PRICING POWER THEY HAVE. THIS IDEA THAT AS THEIR COSTS HAVE RISEN, THEY SEEM TO HAVE HAD SOME DEGREE OF SUCCESS BEING OUT IN FRONT OF THAT TO A CERTAIN DEGREE. ANGELO: I THINK AS FAR AS THE PRICING PRESSURE SIDE OF THINGS, THEY HAVE BEEN EXTREMELY SUCCESSFUL INCREASING PRICES THROUGH MOST OF THE INFLATIONARY ENVIRONMENT, ESPECIALLY 2021. AS WE PROGRESSED THROUGH 2022, I THINK THE ENVIRONMENT HAS STABILIZED. THE FOCUS FOR UBER SHOULD REALLY BE FOCUSING ON INCREASING THE VOLUME OF TRIPS WHILE OVERALL GIVING A BETTER EXPERIENCE FOR CONSUMERS, DECREASING WAIT TIMES AND WHAT HAVE YOU. THEY CONTINUE TO SEE THE SCALABILITY GOING INTO 2023 AND THE ACTUAL DRIVER SUPPLY IS INCREASING, UP ABOUT 35%. BUT THEY ARE ABLE TO SUSTAIN THAT. THEY ARE CAPITALIZING FROM THAT SCALABILITY. SCARLET: LYFT WILL BE REPORTING EARNINGS LATER ON. TALK ABOUT HOW MUCH WE CAN EXTRAPOLATE FROM UBER'S RESULTS? I FOUND LYFT IS CONSISTENTLY CHEAPER THAN UBER AND IT HAS BECOME PART OF ITS IDENTITY AND BRAND. ANGELO: I DON'T KNOW HOW MUCH IT WOULD TAKE AWAY FROM UBER -- YOU THINK ABOUT LYFT. THEY DO NOT HAVE THE DELIVERY BUSINESS UBER DOES SO THEY ARE MORE OF THAT PURE PLAY. WE THINK THEY WILL BENEFIT FROM THAT SCALABILITY, THE STABLE PRICING ENVIRONMENT AND IMPROVING SUPPLY SITUATION. WE EXPECT THEM TO ROUGHLY COMING TO MIND AND HAVE GOOD GUIDANCE FOR Q1. OVERALL, WE LIKE THE SENTIMENT FOR LYFT. CLEARLY HAVING A MASSIVE RUN SO INVESTORS NEED TO BE AWARE. ROMAINE: ALWAYS GREAT TO CATCH UP WITH YOU. ANGELO ZINO, SENIOR INDUSTRY ANALYST AT CFRA. A LOOK AT THOSE UBER EARNINGS WE GOT EARLIER TODAY. A LOT OF MOMENTUM ON THE AVERAGE DELIVERY BUSINESS. LYFT EARNINGS ARE AFTER TOMORROW'S BELL. SUPER BOWL SUNDAY IS THIS SUNDAY. IT IS ALWAYS ON A SUNDAY. SCARLET: YES. ROMAINE: FANS ARE GEARING UP AND SO ARE THE ADVERTISERS. ALL EYES ARE ON THE GAME, THE COMMERCIALS AND EVERYTHING IN BETWEEN. GEORGE PYNE IS GOING TO STOP BY TO TALK ABOUT THE BUSINESS OF SPORTS AND HOW BIG A BUSINESS SUPER BOWL SUNDAY REALLY IS. THAT IS COMING UP NEXT. THIS IS BLOOMBERG. ♪ ROMAINE: A BIG WEEKEND UP AHEAD FOR SPORTS FANS. SUPER BOWL SUNDAY, THE CHIEFS OF KANSAS CITY AND THE EAGLES OF PHILADELPHIA. WHO WINS? WHO CARES? THE ADVERTISERS ALWAYS WIN. THEY ARE SELLING WELL. ON AVERAGE GETTING ALMOST $7 MILLION FOR A 30 SECOND SPOT. A LITTLE HIGHER THAN LAST YEAR. YOU PUT IT ALTOGETHER AND THIS WAS ONE OF THOSE DAYS WHERE WHETHER YOU ARE A SPORTS FAN OR NOT YOU ARE GOING TO TUNE IN AND IT IS A BIG PART OF THE REASON ADVERTISERS HAVE TO BE THERE. SCARLET: THEY PAY UP AND HAVE NO CHOICE. JOINING US WITH HIS INSIGHT IS GEORGE PYNE, FOUNDER OF BRUIN CAPITAL. WE KNOW THE BIG GAME HAS BECOME MORE MUST-SEE IN THIS FRAGMENTED TV MARKET OVER THE LAST TWO OR THREE DECADES. DOES FOX MAINLY PROFIT OFF BROADCASTING THE SHOW BY SELLING 30 SECOND ADS? GEORGE: IF YOU WANT THE SUPER BOWL, YOU'RE GOING TO HAVE TO MAKE OTHER BUYS. IT IS PACKAGED WITH OTHER SPORTS PROGRAM AND PROGRAMMING IN GENERAL. IT IS 110 MILLION, 115 MILLION PEOPLE TUNING IN IN THE U.S. ALONE. THERE IS NOTHING LIKE IT ON TELEVISION. SCARLET: AT SOME POINT, ADVERTISERS MIGHT BALK AT HOW MUCH THESE ARE GOING TO COST IF THEY CONTINUE TO GROW AT THIS RATE. DO WE HAVE ANY SENSE OF WHAT IS TOO MUCH? GEORGE: I DON'T THINK SO. THERE IS NO OTHER VALUE CLOSE TO THAT OF THE SUPER BOWL. REMEMBER, 30 SECONDS MIGHT BE $6 MILLION OR $7 MILLION AND YOU MIGHT BE PAYING ANOTHER $1 MILLION IN PRODUCTION. IT IS A WAY TO BREAK OUT AND MAKE A STATEMENT ABOUT YOUR BRAND. I DO NOT THINK THAT IS GOING TO CHANGE. IT HAS BEEN A GOOD FORMULA FOR 30 YEARS AND I DO NOT SEE THAT CHANGING. IF ANYTHING, BECAUSE OF THE FRAGMENTATION, I WOULD SAY IT IS MORE VALUABLE. ROMAINE: FAIRPOINT. TALK ABOUT WHAT HAS CHANGED PARTICULARLY WHEN IT COMES TO FAN PARTICIPATION. NOT ONLY WATCHING THE GAME BUT THE SLOW EMBRACE WE HAVE SEEN OF GAMBLING AS WELL AS OTHER METHODS NOT ONLY OF THE NFL BUT OTHER LEAGUES TO KEEP FANS ENGAGED. NOT ONLY WHEN THE PLAYERS ARE ON THE FIELD BUT EVEN IN THE OFF-SEASON. GEORGE: HUNDRED PERCENT. ONE OF THE INTERESTING STATS I SAW WAS THEY THINK 20% OF AMERICANS WILL WAGER $61 BILLION ON THIS GAME. THERE WILL BE ALL KINDS OF BEDDING DURING THE GAME, BETTING IN GENERAL. THIS GAME IS ACTIVATED ALL AROUND THE COUNTRY. THEY HAVE EVENTS, FANTASY FOOTBALL, IT IS A CONGREGATING WAY TO BRING PEOPLE TOGETHER AND THAT IS WHAT MAKES SPORTS VALUABLE. THERE ARE VERY FEW THINGS, LIKE SPORTS, THAT BRING PEOPLE TOGETHER, HAVE A GOOD FEELING AND ENGAGE SOMETHING IMPORTANT TO THEM. ROMAINE: WE WENT THROUGH A PERIOD WHERE VIEWERSHIP WAS DECLINING FOR CERTAIN SPORTS. THE IDEA DURING WHEN THE PANDEMIC HIT YOU CANNOT HAVE LIVE SPORTS. THAT PUT A DENT INTO THINGS. WHEN YOU LOOK AT THE LONGER-TERM TRAJECTORY FOR THE NFL AND THE BIG ONES IN THE U.S., MAJOR LEAGUE BASEBALL, DO YOU SEE A CONTINUED TO DIRECTORY HIGHER IN TERMS OF VIEWERSHIP AND ENGAGEMENT? GEORGE: YOU ARE SEEING A HIGH VIEWERSHIP SO FAR. THE TOP 100 MOST VIEWED TV PROGRAMS ARE NFL AND THE REST ARE SPORTS. SPORTS CERTAINLY HOLDS A BIG AUDIENCE. I DO NOT SEE THAT CHANGING AND THEREFORE, BECAUSE IT IS HARDER AND HARDER TO GRAB BIG AUDIENCES, I SEE SPORTS BECOMING ONLY MORE VALUABLE. OF COURSE, SPORTS ARE BEING CONSUMED MANY DIFFERENT WAYS AND DIFFERENT DEVICES AND THAT IS GOING TO HAVE AN IMPACT. RIGHT NOW, ALL THE EVIDENCE SUGGESTS SPORTS IS VALUABLE AND IF YOU LOOK AT THE RIGHTS DEALS THAT HAVE BEEN DONE RECENTLY, ALL INCREASES IN THIS FRAGMENTED WORLD -- AND I EXPECT THE NBA WHOSE RIGHTS ARE COMING UP TO DO WELL ALSO. THERE IS NO SIGN SPORTS HAS BECOME LESS VALUABLE. IF ANYTHING, MORE VALUABLE. SCARLET: BUT IS THERE ANYTHING THAT MIGHT ACT AS A NATURAL CEILING? THE NETWORKS SHELL OUT BILLIONS OF DOLLARS FOR THE RIGHT TO BROADCAST THOSE GAMES BUT VIEWERS DO NOT CARE WHETHER IT IS CBS OR NBC OR FOX. THEY JUST WANT TO TUNE IN. GEORGE: I THINK THE FIRST PLACE YOU MIGHT SEE A CRACK IS WITH REGIONAL SPORTS NETWORKS BECAUSE THAT IS AN INEFFICIENT DISTRIBUTION CHANNEL. IT BENEFITS THE SPORTS LEAGUES. BUT SO FAR, EVEN THERE WE HAVE NOT SEEN USED DISLOCATION. BUT I THINK THAT IS THE FIRST PLACE YOU WILL SEE DISLOCATION. THE LAST PLACE YOU ARE GOING TO SEE IT IS WITH THE SUPER BOWL AND THE NFL. THE NFL HAS HAD A GREAT YEAR. THE CHAMPIONSHIP GAMES ARE STRONG, THEIR BIG EVENTS WERE STRONG. EVEN THE NATIONAL CHAMPIONSHIP OF FOOTBALL WAS STRONG EVEN THOUGH THE GAME IS NOT GOOD. WE DO NOT SEE THE WEAKNESS YET. BUT AS YOU POINT OUT IT IS GOING TO BE CONSUMED DIFFERENTLY AND IS CONTENTS IS CONSUMED DIFFERENTLY, THAT ECONOMIC MODEL WILL CHANGE. WHICH WILL CHANGE TO WHAT I CALL THE LIFETIME VALUE OF THE CONSUMER WHICH IS UNTAPPED TODAY IN SPORTS. SCARLET: I HAVE GOT TO ASK ABOUT LEBRON JAMES BECAUSE HE IS NOW THE TOP SCORER IN THE NBA WHILE BUILDING A BUSINESS EMPIRE THAT HAS INCREASED HIS NET WORTH MORE THAN $1 BILLION. HOW HAS HE REWRITTEN THE PLAYBOOK FOR HOW PROFESSIONAL ATHLETES BUILD THEIR WEALTH? ONCE UPON A TIME THEY GOT PAID A SALARY AND SEND ENDORSEMENT DEALS AND THAT WAS IT. NOW IT IS ABOUT BUILDING EQUITY. GEORGE: GLAD YOU ASKED. WE HAVE TO STEP BACK. WHAT LEBRON JAMES HAS DONE IS INSPIRING. HERE IS A YOUNG MAN THAT HAD THE SPOTLIGHT ON HIM AT 15-YEARS-OLD AND HERE HE IS AT 38-YEARS-OLD AND HAS COMPORTED HIMSELF IN A GOOD WAY. HE HAS HELD HIMSELF TO A HIGH STANDARD ON AND OFF THE COURT. I THINK WE SHOULD CELEBRATE A GUIDE THAT IS A CLASS ACT AND A WINNER AND A CHAMPION AND MAY BE THE BEST OF ALL TIME DOING IT THE RIGHT WEIGHT SECOND, WHAT HE HAS DONE OFF THE COURT IS IMPRESSIVE. HE IS TAKING HIS BRAND, HE UNDERSTANDS THE VALUE, AND HE HAS A GROUP OF PEOPLE AROUND HIM THAT HAVE DONE A GOOD JOB IN EXPANDING HIS BUSINESS INTERESTS THE ON THE COURT. I THINK HE IS A MODEL OF ON THE COURT, OFF THE COURT AND KEEPING IT TOGETHER AT A HIGH LEVEL FOR 25 YEARS. ROMAINE: WELL SAID. ALWAYS GREAT TO CATCH UP WITH YOU. GEORGE PYNE OF BRIDGE CAPITAL EVEN US A PREVIEW OF THE BIG BUSINESS -- BRUIN CAPITAL GIVING US A PREVIEW OF THE BIG BUSINESS. LEBRON JAMES FINALLY PASSING KAREEM ABDUL-JABBAR. THE MARKETS ARE DOWN. A BIT OF A RESET AS EVERYONE TRYING TO FIGURE OUT WHAT THE FED IS GOING TO DO AND CAN YOU BELIEVE THEY ARE GOING TO STAY THE COURSE? DOWN ON THE NASDAQ, DOWN ALMOST 2% ON THE DAY. NOT MUCH GOING ON IN THE TREASURY SPACE. BIG EARNINGS ON TAP AFTER THE BELL. SCARLET: DISNEY WILL BE REPORTING BUT DO YOU BELIEVE THE FED WILL STAY THE COURSE? IT DEPENDS ON THE DAY AND THE DATA POINT. ROMAINE: I THINK WEDNESDAY MIGHT BE DIFFERENT THAN THURSDAY, THURSDAY MIGHT BE DIFFERENT THAN FRIDAY. WE ARE GETTING READY TO RESET FOR THE FINAL HOUR OF TRADING. WE ARE COUNTING YOU DOWN TO THE CLOSE. THIS IS BLOOMBERG. > > COUNTDOWN TO THE CLOSE, BLOOMBERG'S COMPREHENSIVE CROSS-PLATFORM COVERAGE AHEAD OF THE U.S. MARKET CLOSE, STARTS RIGHT NOW. ROMAINE: THIS IS THE COUNTDOWN TO THE CLOSE. ROMAINE BOSTICK AND SCARLET FU JOINING US -- AND JOINING CAROL MASSAR AND MIKE REAGAN. CAROL, THIS IS A DAY WERE A LOT OF US ARE PAYING ATTENTION OR PAYING NEW ATTENTION TO INFLATION AND THE IDEA THAT THE INFLATION FIGHT HAS MORE OF A WAYS TO GO AFTER WE SAW THE BIG INFLATION REPORT. AND THE USE CARD -- USED CAR PRICES TAKING BACKUP --TICKING BACK UP. CAROL: IT FEELS LIKE EVERYONE IS GETTING A FED MEMO THAT WE WILL SEE HIGHER RATES AND ONE GROUP THAT IS FUND THE CENTER IS THE PAYMENT COMPANIES AND IT STARTED IN EUROPE WHEN THE DUTCH PAYMENT COMPANY CAME OUT IN THE STOCK WAS PLUNGING IN THE SECOND HALF EARNINGS AND MARGIN MISSED WAY DOWN. IF PROCESSES TRANSACTIONS FOR UBER AND H & M. IT IS -- AFFIRM REPORTS AFTER THE CLOSING BELL AND DOWN 5.5% EMAAR KATA --AND MARQETA IS DOWN ONE POINT -- ALMOST 2%. KAILEY: LOOKING --MIKE: LOOKING AT THINGS, WE HAVE SEEN A BIG PRICE RALLY. SOMETHING TO KEEP AN EYE ON AS FAR AS THE INFLATION NARRATIVE IN CASE WE DO GET ANOTHER RIPROARING OIL MARKET. ROMAINE: THE MOVES OVER THE LAST FEW DAYS ARE PERPLEXING. SOME PEOPLE WILL LOOK AT THE BROADER EQUITY MARKET AND SAY IT IS PERPLEXING AND YOU REMEMBER THE RALLY BUMPED US AGAINST THE KEY CAP -- HE TECHNICAL LEVELS WITH THE NASDAQ GETTING INTO OVERS -- OVERBOUGHT CONDITIONS LAST WEEK. BEST BE DOWN TO PRESENT NASDAQ DOWN 1.5% AND ASSEMBLERS -- A SIMILAR STORY FOR THE RUSSELL AND DOW JONES. SCARLET: BUT THE INDUSTRY GROUPS, IT IS DOWN ACROSS THE BOARD AND HEALTH AND WILLIS -- WILL ESTATE INVESTMENT TRUSTS DOING BETTER. COMMUNICATION SERVICES, THAT IS A DROP IN ACTIVISION AND ALPHABET AND WARNER BROS. DISCOVERY DRIVING DOWN THE ENTIRE SECTOR. ROMAINE: WE CAME IN TODAY WITH A BIG LOOK AT BIG TECH. MICROSOFT HAD A DECENT RALLY AND IT IS PUTTING INTO THE $2 TRILLION DRUG BUT THAT HAS FADED AND IT IS DOWN 2/10 OF A PERCENT BUT THAT REFLECTS THE SENTIMENT SHIFTS. ALPHABET IS DOWN A PERCENT IN THIS HAS TO DO WITH CHATGPT. WE HAD A BOSS WHO USED TO SAY, YOU CAN BE -- FIRST BUT IF YOU ARE NOT RIGHT, IT IS A MATTER. -- IT DOES NOT MATTER. SCARLET: I WOULD NOT WANT TO BE THE HEAD OF BAR RIGHT NOW. ROMAINE: GOING BACK TO THE INFLATION STORY, WE HAVE INFLATION REPORTS OUT OF ARAMARK AND JIM ROWLEY --CHIPOTLE. THEY'RE DEALING WITH HIGHER COSTS AND THEY EXPECT THE COST TO PROCESS AND THE QUESTION IS HOW MUCH OF THAT WILL THEY CONTINUE TO PASS ON TO THE CONSUMER? AN INTERESTING COMMENTARY FROM BOTH EXECUTIVES FROM THOSE COMPANIES AND THEY SEE SOME CONFIDENCE IN THAT BUT BASED ON THE SHARES, MAYBE INVESTORS AREN'T QUITE SOLD AND THAT SHOWS YOU -- GOES TO THE CHART WE SHOWED YOU. EVERYONE IS PAYING ATTENTION TO THIS AT THE START OF THE PANDEMIC WHEN USED CAR PRICES WENT UP AND THEY HAVE MODERATED. THEY STARTED TO CREEP BACK UP AND PEOPLE ARE WONDERING, IS THIS A ONE OFF DEAL OR A COUPLE MONTHS OR MAYBE THIS MEANS, WE ARE HEADED BACK FOR A RESURGENCE? CAROL: THAT HAS ME SCRATCHING MY HEAD AND ARE -- CONSUMERS THINKING WE ARE COMING TO AN END. THE FED SPEECH CONTINUES AND JOHN WILLIAMS -- ROMAINE: THEY ARE EQUAL. CAROL: [LAUGHTER] I WILL GET A CALL SOON. JOHN WILLIAMS MADE SOME COMMENT SAYING THAT FORECAST OFFICIALS SUMMIT IN DECEMBER STILL A GOOD GUIDE. AS OF THE NEXT MOVE, COME MARKS -- MARCH, HERE'S WHAT HE HAD TO SAY. > > THESE BASIS POINT ALLOW US TO ADJUST POLICY BASED ON THE NEW INFORMATION AND GET US TO OUR GOAL. OBVIOUSLY, IF THE SITUATION CHANGED SIGNIFICANTLY, WE WILL HAVE THE ABILITY TO MOVE QUICKER THAN THAT BUT RIGHT NOW, THE 25 BASIS POINT INCREASE, WE PUT IN PLACE, IT SEEMS LIKE THE RIGHT SIZE TO ADJUST POLICY. CAROL: THAT IS JOHN WILLIAMS, THE PRESIDENT OF THE NEW YORK FED THERE. ROMAINE: YOUR FAVORITE FED MEMBER. JUST SO WE KNOW -- CAROL: JAY POWELL IS MY FAVORITE. SCARLET: GOOD ANSWER. ROMAINE: I DON'T BELIEVE THAT BUT IN ALL SERIOUSNESS, THIS IS INTERESTING BECAUSE WHEN YOU SEE WHAT IS BEING PRICED INTO THE MARKET, THERE'S TALK ABOUT THE MEGA TRADE ON TUESDAY AFTERNOON BETTING ON THE IDEA THAT THE TERMINAL RATE MIGHT BE CLOSER TO 6% THAN 25% --TO 5%. A LOT OF PEOPLE WEREN'T BUYING IT ON THE DOWNSIDE AND NOW PEOPLE ARE SAYING IT IS TOO LARGE. MIKE: IF YOU LOOK AT THE IMPLIED RATES GOING OUT TO THE BEGINNING OF 2024, THEY HAVE INCHED UP BUT WHAT IS INTERESTING, THOUGH REGULAR BOND MARKET, YIELDS ARE DOWN ACROSS THE BOARD. SOMETHING THAT WAS ON PEOPLE'S MINDS WAS WHEN THE TRADITIONAL NEGATIVE CORRELATION BETWEEN TREASURY AND STOXX WOULD RETURN, GOT BLOWN UP LAST YEAR AND WE ARE SEEING AT RETURN A LITTLE TODAY. TREASURIES ARE UP AND STOCKS ARE DOWN. TOO MUCH TO MAKE MUCH OUT OF IT FROM ONE DAY BUT SOMETHING I THINK, I THINK THAT IS WORTH WATCHING AS WE GO FORWARD, IF THIS NARRATIVE IS A FOCUS ON GROWTH RATHER THAN INFLATION. SCARLET: WHEN IT COMES TO INFLATION, THEY ARE EXPENDED -- UNEXPECTED THINGS THAT PEOPLE ARE PRICING IN INCLUDING CHINA'S REOPENING STOP WILL IT FOLLOW THE SAME PATTERN AS THE U.S. AND EUROPE AND IF IT DOES NOT, HOW IS IT ACCOUNTED FOR? THIS IS SOMETHING WE ARE GRAPPLING WITH GIVEN THAT A LOT OF PEOPLE DID NOT EXPECT THE U.S. REOPENING TO PLAY OUT THE WAY IT HAS. ROMAINE: NEVER REALLY CLOSED -- WE NEVER REALLY CLOSED, DID WE? CAROL: I AM DATA-DEPENDENT JUST LIKE JAY POWELL. I AM THINKING ABOUT THE VALENTINE'S DAY CPI REPORT. ROMAINE: IF YOU SEE LEVINE -- DID YOU SEE LEBRON LAST NIGHT? I WILL DATE MYSELF BUT I REMEMBER WHEN KAREEM ABDUL-JABBAR WAS PLAYING. CAROL: HOLD ARE YOU? -- HOW OLD ARE YOU? ROMAINE: 33. CAROL: WE WILL HAVE A LOT OF EARNINGS INCLUDING DISNEY AFTER THE CLOSING BELL. IT WILL BE ON TV AND BLOOMBERG AND YOUTUBE AND BLOOMBERG ORIGINALS. ROMAINE: WE CONTINUE OUR MARKET COVERAGE ON BLOOMBERG TELEVISION COUNTY DOWN TO THE CLOSING BELL. WORTHEN 50 MINUTES TO GO -- MORE THAN 50 MINUTES AGO. IT DOES APPEAR TO BE A SHIFT AND FROM THEN WE ON THE DAY-TO-DAY BASIS THAT WE OBSESS OVER BUT OVERALL, IT'S EARLY, DO YOU THINK THAT THE MARKET -- MATERIALLY, DO YOU THINK THE MARKET HAS ANY DIFFERENT EXPERT TATIAN FOR 2023 -- DIFFERENT EXPECTATION FOR 2023 THAN THEY DID A COUPLE MONTHS AGO. ERIN: FOR A WHILE, EQUITY MARKETS DIDN'T BELIEVE -- AND THERE WAS A DISCONNECT BETWEEN EQUITY MARKET AND THE FED AND WHAT FIXED INCOME MARKETS WERE DOING AND I THINK EQUITY MARKETS HAVE BEEN RELYING THEMSELVES -- REALIGNING THEMSELVES WITH THE REST OF THE WORLD BUT WHAT IS INTERESTING IS THAT WE HAVEN'T SEEN A LOT OF FEAR OR RISK AND DICTATORS -- RISK INDICATORS GO HIGH. WE HAVEN'T SEEN THE VIX, AND THAT STAYED BELOW 20 WHICH IS A COMMON AREA AND EVEN THOUGH THERE IS COMING TO TURN, IT IS NOT SPIKING FEAR AND EVEN THOUGH WE HAD A FEW DAYS OF WOBBLING PERFORMANCE, -- TOM: -- SCARLET: WHERE IS THE FEAR SHOWING UP? ERIN: IT REALLY IS DISCONTENT. WE HAVE SEEN GREATER STOP DISPERSION COME UP, PARTICULARLY ACROSS -- GENERATE WAS THE HIGHEST YEAR AND THAT IS SHAPING UP EVEN FURTHER AS WE SEE A DISAPPOINTING Q4 EARNINGS SEASON. THE BEAT RATE IS ONLY ABOUT 68%, WHICH IS ONE OF THE LOWEST BEAT RATES THAT WE HAVEN'T SEEN SINCE THE FIRST QUARTER OF THE PANDEMIC. GENERALLY, BEAT RATE IS MORE LIKE 80%. THAT IS SIGNIFICANT AND WE ARE SEEING A REALLY HIGH MISS RATE OF ABOUT 30% OF COMPANIES REPORTING. IT IS REALLY ABOUT COMPANIES THAT HAVE MANAGED EXPECTATIONS THAT ARE STILL ABLE TO MANAGE WHETHER WE ARE FACING RECESSIONARY FAIRS OR INFLATIONARY FEARS. WE ARE SEEING A SIGNIFICANT DROP IN GROWTH AND PROFIT ESTIMATES FOR 2003. THEY WERE ALREADY PRETTY LOW AND THEY ARE DOWN TO ABOUT 1%. ROMAINE: IT IS INTERESTING TO SEE HOW IT FINISHES OUT AND WE'D GET EARNINGS OUT OF THE EUROPEAN COMPANIES AND THERE WAS AROUND TO START THE YEAR AND PUSHES THE FTSE TO A RECORD HIGH. WHAT IS IN THE WATER OVER THERE THAT YOU THINK IS DRAWING MORE INVESTOR INTENTION RELATIVE TO THE UNITED STATES? ERIN: RELATIVE TO UNITED STATES, EVERYTHING IS LOOKING BETTER IN EUROPE. YOU ARE SEEING REVISIONS THAT ARE GOING UP AND WE ARE NOW LOOKING AT AND SET OF CONTRACTION FOR MOST OF THE S & P EUROPE, WE ARE LOOKING AT FLAT AND IT HAS A LOT TO DO WITH BETTER-THAN-EXPECTED, WINTER AND ENERGY PRICES. A LOT ABOUT THE REOPENING AND ANYTHING TO DO WITH REOPENING AND TOURISM, THAT HAS BEEN DOING EXCEPTIONALLY WELL AND WE ARE SEEING, IT IS NOT THAT NECESSARILY EUROPE WILL END UP HAVING A HIGHER GROWTH THAN THE U.S. AT THE END OF THE YEAR. IT IS A 50-50 SPLIT BUT IT IS ABOUT THE PERCEPTION AND THE PERCEPTION IS IMPROVING WHEN IT COMES TO EUROPE VERSUS THE U.S. SCARLET: THE REOPENING OF CHINA MEANS A LOT MORE TOURISTS VISITING EUROPE. GROWTH, YOU HAVE NOTED, HAS BEEN WORKING IN MARKETS OUTSIDE THE U.S. LIKE EUROPE BUT WHEN YOU THINK ABOUT GROW, THEY TEND TO BE TECH NAMES. WHAT PAUL FINDS IS GROWTH IN EUROPE? -- WHAT QUALIFIES AS GROWTH IN EUROPE? ERIN: -- CAN BENEFIT FROM CHINA REOPENING AND TOURISM IN GENERAL. ANOTHER ONE IS LVMH AND LUXURY GOODS AND THEY ARE ONE OF THE COMPANIES THAT HAVE BEEN FOCUSED WITH TOURISM. THEY ALSO ALL BENEFIT FROM THE PRE--- THE DEPRECIATING DOLLAR VERSUS THE EURO. THAT IS A TAILWIND WHEN YOU ARE INVESTING OUTSIDE THE U.S. THIS YEAR THAT HAS BEEN PROFITABLE. ROMAINE: I DON'T WANT TO GET INTO THE WEEDS ABOUT RETAIL AND LUXURY GOODS BUT WHEN YOU LOOK AT SOME OF THE EARNINGS OUT OF THE U.S. LUXURY MAKERS LIKE CAPRI HOLDINGS, THEY SEEM TO BE RUNNING INTO ISSUES WITH PRICING POWER. RD LVMH --ARE THE LDMH'S OF THE WORLD IN A DIFFERENT CLASS? ERIN: YES AND THAT IS A GREAT POINT WHEN WE TALK -- AND WHEN WE TALK ABOUT LUXURY FRANCE, LUXURY BRANDS ARE DIFFERENT CLASS AND PERFORM DIFFERENTLY THAN NIKE OR GAP. LDMH AS A GREAT PORTFOLIO. AS A DO WITH TIMING -- IT HAS TO DO WITH TIMING AND THE GLOBAL OUTLOOK. ROMAINE: WONDERFUL TO TALK TO YOU. ERIN GIBBS, CIO AT MAINSTREAM ASSET MANAGEMENT AND WE WILL COUNTY DOWN TO THE CLOSING BELL AND WE WILL GET INSIGHT GOING FORWARD. NANCY TENGLER, CEO AND CIO AT LAFFER TENGLER INVESTMENTS. OVER AND WE WILL TALK ABOUT A MEANS -- WE WILL TALK ABOUT A MEME STOCK. A LITTLE LESS FOCUS ON THE STOCKS AND MORE WHAT IS GOING ON WITH THE OPTIONS MARKET AND WE WILL GET A READ MAYBE FROM ROBINHOOD. DISNEY REPORTING ITS FIRST QUARTERLY RESULTS SINCE JPEG -- BOB CHAPEK LEFT AND BOB IGER CAME BACK. WE HAVE SEVERAL PEOPLE JOINING US STOP -- AND STOPPING BY TO BREAK DOWN THE NUMBERS AND WE HAVE THE FULLEST COVERAGE YOU WILL FIND. IF YOU ARE NOT WATCHING US FOR DISNEY AFTER THE BELL, YOU ROMAINE: ABOUT 42 MINUTES LEFT HERE IN THE TRADING DAY AND KEEPING AN EYE ON THE WALL. THESE ARE THE MAIN MARKET DRIVERS FOR THE S & P 500. CVS AND TESLA DOING THEIR BEST TO KEEP AFLOAT AND THEY'RE LOSING THE BATTLE. META PLATFORMS AND AMAZON AND APPLE DOWN. PUSHING STOCKS TOWARDS A LOW ON THE DAY AS WE MOVE CLOSER. 1.5 -- 1.94% HERE. TEMPERING JUST A LITTLE BIT HERE BUT ELEVATED. 4.45 ON THE TWO-YEAR YIELD AND NOT A LOT GOING ON IN REGARDS TO THE FX SPACE AND A LOT -- A MODERATE DOLLAR WEAKNESS ON THE DAY AND THIS IS A TO INDIVIDUAL STORIES, UBER IS GOOD AND ALUMINA BAD. SOFTWARE, NEW RELIC, IS DOING GOOD. DO YOU CREATE A THESIS AND THERE TO HEAR THAT THERE IS AN IMPETUS TO MOVE THE MARKET HIGHER? THERE HAS BEEN VOLATILITY AND ABIGAIL DOOLITTLE JOINING US FOR OUR OPTIONS INSIGHT SEGMENT AND I KNOW YOU HAVE BEEN LOOKING AT THIS ROLLER COASTER OF VOLATILITY WE HAVE BEEN ON. ABIGAIL: IT IS USUAL -- UNUSUAL. THIS WEEK, WE HAVE SEEN IT ALL, ESPECIALLY YESTERDAY, UP 1.2% AND DOWN 1.5% AND UP NEARLY 2% ON THE DAY. NET-NET CLOSING WITH AGAIN BUT WE ARE ON THE CUSP OF GIVING THE GAIN UP. ALL OF THIS AS INVESTORS CONSIDER WHAT JAY POWELL SAID AND CHRIS MURPHY OF SUSQUEHANNA, YOU TALKED ABOUT THE ZERO DAYS OPTION -- EXPIRATION OPTIONS AND I WOULD IMAGINE ON A WILD DAY LIKE YESTERDAY, YOU PROBABLY SAW THAT ACTIVITY. CHRIS: THEY ARE HUGE FOCUS AND THE ONE NICE THING ABOUT THEM THAT YOU CAN FOCUS ON, SPECIFIC METRIC -- PREVENTS LIKE JAY POWELL'S TALK. ISOLATE THOSE EVENTS WITH THE SHORT-TERM OPTIONS AND THE THING ABOUT THE SHORT-TERM OPTIONS IS YOU HAVE TO GET OUT OF THEM OVER THE COURSE OF THINK IT -- THE DAY. THERE WAS A SITUATION WITH FOOT PROTECTION AND JAY POWELL WAS NOT AS HAWKISH AS PUT BUYERS WERE THINKING. YOU HAVE THE UPWARD SWING AND THOSE THAT WERE BULLISH POSITION NOW SAID THERE WERE -- IT WAS A GOOD TIME TO CLOSE SOME OF THE LUNGS. THE ZERO DAY EXPIRATION -- TRADING OPTIONS LEADS TO INTRADAY VOLATILITY. ABIGAIL: IS THAT TRADING ON THOSE INTRADAY OPTIONS, IS THAT MORE FOR THE INSTITUTIONAL SIDE? WE WERE TALKING ABOUT THAT PUTS BEING SOLD. ARE WE SEEING SOME SHORT OF A SQUIRT -- SHORT SQUEEZE THROUGH OPTIONS RELATIVE TO THE RALLY ON THE? --THEY HEAR? --THE YEAR? CHRIS: BE SHORT SQUEEZE STARTED TO CHASE THE MARKETS A LITTLE BIT AND WHEN YOU START TO SEE THAT UPSIZE -- MOMENTUM, THAT IS WHEN THE CALL VOLUME FALLS IT AND IT IS MORE EXACERBATING THE MOVES AND BEING THE CATALYST BUT IT HAS AN IMPACT. AS YOU START TO SEE MOMENTUM IN ONE DIRECTION, YOU SEE OPTIONS FOLLOW AND EXACERBATE THE MOVES. ABIGAIL: THAT 10-YEAR YIELD NOT DOING WELL WELL -- NOT DOING VERY WELL. WE HAVE A BACKUP OF MORE THAN 20 BASIS POINTS. WHAT ARE YOU SEEING RELATIVE TO TLC AND WHAT DOES THAT TELL YOU ABOUT THE DIRECTIONS OF RATES GOING FORWARD, AT LEAST WHAT OPTIONS -- OPTION RATER'S THANKS -- THINK? CHRIS: THE TLT, WE LIKE TO LOOK AT OPTION TRADES AND A BUYER OF 10,000 OF THE FEBRUARY 101.5 PUT. WHAT COULD THEY BE PLAYING? LOWER TLT AND HIGHER YIELDS. CPI IS LOOMING AND THAT'S PROBABLY THE FOCUS THERE AND THAT TRADE -- THE TLT IS UP 21ST YEAR BLENDED TREASURY AT 3.8 IMPLIED AND THIS TRAINING -- TRADING IS LOOKING AT 4%. ABIGAIL: THAT CPI PRINT WILL BE IMPORTANT BECAUSE IT FEELS LIKE EVERY MARKETS ARE TREADING WATER. IT IS INTERESTING THAT THE MOVE INDEX IS TRENDING TO THE UPSIDE FROM LAST YEAR'S PEAK. THANK YOU FOR JOINING US FOR UPSIDE OPTIONS TODAY AND FROM NEW YORK, THIS IS BLOOMBERG. SCARLET: IT IS BONUS SEASON AND OVER AT CREDIT SUISSE, THIS WAS LENDER IS PLANNING TO GRANT ITS TOP EXECUTIVES, THE TOP 1% OF STAFF, $500 MILLION -- $380 MILLION WORTH OF BONUSES. THEY CLAIM -- 12 AN SENATE SIDE -- THEY WANT TO INCENTIVIZE THE TOP STAFF WITH THAT AWARD. THEY CUT THE OVERALL BONUS POOL BY UP TO HALF. ROMAINE: THIS IS A LONG-TERM SET UP TO KEEP PEOPLE THERE. IF THEY HAD THESE TARGETS, YOU GET THIS PAYOUT. IT IS $350 -- 350 MILLION FRANCS. A LOT OF THIS HINGES ON THE TURNAROUND. HOW I PUT THIS DIPLOMATICALLY? THERE ARE DOUBTS ABOUT THE TURNAROUND. SCARLET: IT IS FOCUSING ON BOTH MANAGEMENT AND SWISS BANKING RATHER THAN TRYING TO COMPETE WITH THE LARGER BANKS ON INVESTMENT BANKING. ROMAINE: THE ONLY WAY YOU DO THIS TURNAROUND IS IF YOU KEEP YOUR TALENT. SCARLET: YOU NEED MORE THAN THE TOP 1%. YOU NEED THE LITTLE GUYS. MAYBE SHOULD INCENTIVIZE THOSE. ROMAINE: DO THEY PUT STATEMENTS ABOUT THOSE PEOPLE? SCARLET: NO, JUST THE TOP 1%. ROMAINE: IT IS BONUS SEASON AND IT IS INTERESTING TO SEE THE NEW PEOPLE TAKING ON NEW JOBS NOW THAT BONUS SEASON IS HERE. ROMAINE: THIS IS THE COUNTDOWN TO THE CLOSE AND ABOUT 30 MINUTES LEFT TO GO HERE ON THIS WEDNESDAY AFTERNOON. SCARLET: LAST YEARS PESSIMISM HAS GIVEN AWAY TO OPTIMISM THAT THE FED WOULD DOUBLE -- STOP DOUBLING RATE HIKES AND GO BACK TO THE NORMAL COURSE OF ACTION. TODAY IS NOT LOOKING SO GOOD IN TERMS OF INFLATION AND THE OUTLOOK OF WHAT THE FED DOES NOT. ALL 11 SECTORS ARE IN THE RED AND THERE ARE A COUPLE OF STRAY AUTOMAKERS. GENERAL MOTORS AND TESLA BUT BY AND LARGE, SEA OF RED AS PEOPLE AWAIT THE NEXT BIG DATA POINT WHICH IS INFLATION. ROMAINE: IF YOU ARE LOOKING FOR BRIGHT SPOT, WITH CVS HEALTH, THIS IS A DRUGSTORE COMPANY THAT BECAME A DIRECT PROVIDER OF PATIENT CARE AND MOVING DEEPER INTO THAT, THE DEAL TO BUY SIGNIFY IS EXPECTED TO CLOSE TO -- SOON AND THEY ARE EXPECTED TO BUY OAK STREET HELP -- HEALTH. IT IS SOLIDIFYING THE NEWS STRATEGY FOR CVS HEALTH. YOU GO TO OTHER STORIES AND THE RESULTS WE GOT OUT OF CAPRI HOLDINGS ALL SEEM TO HAVE TO DO WITH THE DALE -- THE SALES THE KIND THAT THE CEO ITSELF SAID HAS TO DO WITH THE PRICE INCREASES AND PEOPLE WEREN'T WILLING TO TAKE THEM AND THEY SAID THEY WILL PUT THE PRICE HIKES ON PAUSE. BIG EARNINGS AFTER THE BELL AND GIVEN A EYE ON DISTALLY -- ON DISNEY. WE WANT TO THE BIG RALLY AT THE YEAR START. I WANT YOU TO PAY ATTENTION TO THE BLUE LINE AT THE BOTTOM WHICH IS NOT ON BALANCE VOLUME, NOT COMPLICATED BUT THE BIG THING HERE IS THE TREND. YOU GO BACK TO THE RALLY WE HAD, THE JUNE AND JULY AND THAT BLUE LINE WITH TRENDING DOWN AND YOU GO BACK TO THE BIG RALLY WE HAD IN OCTOBER AND NOVEMBER? THAT BLUE LINE WITH TRENDING DOWN. THAT GIVES YOU A SENSE HERE THAT VOLUME WASN'T SUPPORTING THE RALLY AND MAYBE THAT IS A REASON WHY IT HAS BEEN SPUTTERING A BIT. SCARLET: AS EARNINGS SEASON CONTINUES, INVESTORS MAY NOT NEED TO WORRY ABOUT THE PROFITS BECAUSE THEY MAY BE PRICED IN ALREADY. JOINING US IS BAILEY LIPSHULTZ. WE DON'T KNOW WHAT IS TO COME. NO ONE HAS ANY REAL READ ON WHAT THE REST OF THIS YEAR WILL LOOK LIKE, PARTICULARLY THE SECOND HALF. > > IF YOU LOOK AT WHAT IS HAPPENED -- HAS HAPPENED, INVESTORS ARE SEEING A DEEPER BUT NOT LONGER ISSUE IN TERMS OF CONTRACTIONS. IF YOU'RE LOOKING 12 MONTHS OUT, STRATEGIST -- STRATEGISTS THOUGHT WE WOULD SEE A 15 MONTH DROP AND IF YOU ARE LOOKING AT THE FOURTH QUARTER RESULTS BUT EVEN WHEN IT COMES TO OUTLOOKS, IT HAS REALLY DAMAGED IF YOU'RE LOOKING AT WHAT HAS HAPPENING AS FAR AS THE BEATS, THE MISSES ARE NOT GETTING PUNISHED QUITE AS MUCH AS THEY HAD IN THE PRIOR QUARTER SO IT DOESN'T SEEM LIKE WE WILL SEE AN EXTENSION AS FAR AS THE PAIN BUT IT SEEMS LIKE IT COULD BE DEEPER IF YOU ARE LOOKING AT THE SECOND QUARTER AND THE THIRD QUARTER. ROMAINE: THAT IS THE FUNDAMENTAL BACKDROP AND YOU COVER A LOT OF PEOPLE WHO HAVE TWO THINGS ABOUT FUNDAMENTALS BUT IN ALL FAIRNESS TO THEM, THIS HAS BEEN FOR THE LAST YEAR TREACHEROUS MARKET. YOU CAN TRADE OUT THE VOLATILITY IN ARE PEOPLE STILL DOING THAT? BAILEY: WE ARE SEEING A LOT OF FLOCKING TO THOSE THINGS LIKE SHORT DATED CALL OPTIONS. IT HAS BEEN VERY PROFITABLE FOR THE LIKES OF CHARGE -- CHARLES SCHWAB AND ROBIN HOOD TO PLAY THE MARKET EVEN WHEN YOU TALK TO HEDGE FUND MANAGERS. AN EASY WAY TO GENERATE ALPHA IS TO PLAY OPTIONS OR PLAY A STOCK LIKE A GAMESTOP, STOCKS IN THE ART ETS. IT IS BETTER TO MAKE MONEY THERE AS OPPOSED TO INVESTING IN BIG STOCKS. ROMAINE: ARE WE SEEING SOME VOLUME BEING STOLEN FROM EQUITY TRADING? IS THAT ACTUALLY MOVED TO THE OPTIONS MARKET? IS ONE TAKEN FROM THE OTHER? BAILEY: AS IT RELATES TO RETAIL TRADERS, ABSOLUTELY. IT IS A WAY TO GET EXPOSURE AND GET RETURNS. SCARLET: AND YOU DON'T HAVE TO PUT OUT AS MUCH MONEY. OPTIONS ARE CHEAPER THAN BUYING THE UNDERLYING STOCK. BAILEY: EXACTLY AND THAT IS WHAT WE HAVE BEEN TRACKING LAST YEAR. JON: YOU GET THAT EXPOSURE -- JON: YOU GET THAT -- ROMAINE: ALIX: YOU GET THAT -- ROMAINE: YOU GET THAT EXPOSURE AND IT IS EASY WAY. IF YOU ARE MORE OF A LONG-TERM INVESTOR, YOU PLAN TO HOLD THIS, EVEN FOR A FEW QUARTERS, THE FUNDAMENTALS HAVE TO CATCH UP, RIGHT? JESS: IF YOU LOOK AT THE BEAT RATES, THE S & P 500 ARE OUTPERFORMING THE BROADER BENCHMARK BY 1.5% AND IT IS BEATING A SIX YEAR AVERAGE IN LEAVING SOME PEOPLE SCRATCHING THEIR HEAD THAT IS -- BUT IT IS MOVING FORWARD BUT IT IS A MARGIN QUESTION AND COULD WE SEE TROUGH AND THAT? -- IN THAT? IT HAS CONTINUED TO GET PUSH OUT SO THAT WILL BE THE BIG QUESTION ESPECIALLY AHEAD OF NEXT WEEK AND WE WILL HAVE CPI AND WE HAVE PPI COMING OUT AND THAT'S A BIG THING WITH THE SPREADS BETWEEN THE TWO BECAUSE HAD ASKED TURN POSITIVE FOR THE FIRST TIME IN TWO YEARS. SCARLET: WE TALK ABOUT THE SPLIT BETWEEN FUNDAMENTALS AND THE TECHNICALS AND THAT IS ENCAPSULATED BY BED, BATH & BEYOND WHO STOCK HAS GONE ALL OVER THE PLACE. IT GOT TO SIX DOLLARS EARLIER THIS WEEK AND NOW IT IS AT 2.61. IT IS TRYING TO RAISE MONEY BY SELLING SHARES AND ROMAINE GAVE US THE HEADLINE, IT WAS HEADS PRESSURE. -- IT WAS A HEAD SCRATCHER. WHO IS BUYING THOSE SHARES? BAILEY: WHEN YOU LOOK AT THE DEALS, IT HAS BEEN ANCHORED BY HUDSON BAY CAPITAL. THE MAIN CAVEAT IS THAT THEY ARE ABLE TO SELL THE STOCK IF THEY WANT TO AT A DISCOUNT OR ABLE TO BUY AT A DISCOUNT TO LOCK IN IMMEDIATE GAINS AND THAT WE -- AND WE HAVE SEEN THAT WITH MEME STOCKS. IF YOU LOOK AT BED, BATH & BEYOND, YOU ARE ABLE TO RAISE CASH TO KEEP THE BALLOON OFF THE GROUND BUT YOU ARE NOT REALLY CHANGING THE FUNDAMENTALS. SCARLET: THE BALLOON CAN'T LIFT. ROMAINE: WHEN I FIRST SAW IT, THE FIRST THING TO COME IN MIND IS HURTS --HERTZ. THEY DID GET PAID BUT THERE ARE A LOT OF OTHER COMPANIES OUT THERE. JESS: BLOOMBERG INTELLIGENCE HAS A MEME FACTOR. IN OUTPERFORMED ITS COUNTERPARTS LAST MONTH BY 16% BUT HE DOESN'T THINK IT IS SOMETHING THAT IS SUSTAINABLE. THOSE TYPES OF NAMES, IF YOU THINK ABOUT BED, BATH & BEYOND AND AMC AND THE GAMESTOP'S, THAT WILL BE KEY TO SEE. ROMAINE: WHAT IS TIME TO BE ALIVE. NOW WE HAVE A MEME FACTOR. CAN WE TRIPLE LEVERAGE THAT? AND YOU MENTIONED AMC BECAUSE THEY HAVE A DEAL AND A BIG PREFERRED ISSUE THAT THEY HAVE TO FIGURE OUT. I GUESS THEY KNOW WHAT THEY WOULD DO IT -- WHAT THEY WOULD DO. BAILEY: THAT WILL MERGER -- MERGER SHARES BUT THERE IS A LARGE SPREAD BETWEEN THE TWO WITH A HOMERUN TRADING WITH ARBITRAGE SHARES. YOU CAN BUY EIGHT AND AS LONG AS THAT GETS APPROVED -- ROMAINE: WHY HASN'T THAT GAP BEEN CLOSED AND IT -- WHEN YOU HAVE THE ARBITRAGE CLOSES, -- HOLDS, THEY CLOSE FAST. BAILEY: YOU RUN INTO THE FACT THAT AMC CAN RIP BECAUSE OF RETAIL TRADERS OR HEADPHONES AND THE OTHER ARGUMENT IS THAT THERE IS UNCERTAINTY AROUND THE DEAL GETTING APPROVAL. SCARLET: THERE IS MONEY TO BE MADE AS ALWAYS. THANK YOU FOR JOINING US. LET'S GET TO NEWS FROM AROUND THE WORLD AND GET YOU UPDATE -- UP-TO-DATE WITH HEADLINES. > > TURKEY'S PRESIDENT IS VYING TO REBUILD THE REGION HIT BY TWO MASSIVE EARTHQUAKES. A MAYOR WENT TO THE DISASTER ZONE. THE DEATH TOLL HAS RISEN ABOVE 11,600 AND THOUSANDS MORE ARE TRAPPED. VOLODYMYR ZELENSKYY MADE A SURPRISE VISIT TO THE U.K., ONLY HIS SECOND CONFIRMED TRIP OUTSIDE THE COUNTRY SINCE THE WAR BEGAN AND HE SPOKE TO PARLIAMENT AND MET WITH RICHIE SUNAK WHO SPOKE ABOUT TRAINING TROOPS. SOLESKY THANKS RISHI SUNAK FOR HIS SUPPORT. > > YOU HAVE STOOD WITH UKRAINE SINCE THEY WANT AND FROM THE FIRST SECONDS AND MINUTES OF THE FULL-SCALE WAR -- SINCE DAY ONE AND FROM THE FIRST ACADEMICS OF THE FULL SCALE WAR, YOU EXTENDED YOUR HELPING HAND WHEN THE WORLD AND UNDERSTAND HOW TO REACT. > > HE'S -- HE WILL GO NEXT TO PARENTS -- PARIS. CHINA'S AMBASSADOR OF FRANCE TOLD A FRENCH NEWS CHANNEL IT BELONGS TO CHINA. THE USS IT WAS WORTH SURVEILLANCE AND NAVY DIVERS ARE TRYING TO RETRIEVE ITS PART. THE U.S. SAYS IT WAS FOR SURVEILLANCE AND NAVY PILOTS ARE TRYING -- DRIVERS ARE TRYING TO RETRIEVE ITS PARTS. ROMAINE: LESSON TOURNAMENT TO GO UNTIL WE GET TO THE CLOSING BELL -- LESS THAN 20 MINUTES AGO UNTIL WE GET TO THE CLOSING BELL AND NANCY -- NANCY TENGLER JOINS US. LET'S START WITH THE RALLY IN JANUARY. THERE SEEM TO BE SOME LEGITIMACY TO IT AND I'M WONDERING IF YOU FELT THAT WAY AND IF YOU THINK WE CAN SEE A RE-ACCELERATION? NANCY: I THINK IT WAS A LEGITIMATE AND WE KNEW THAT IMPATIENT -- INFLATION PETE AND THE FED WAS CLOSER TO THE END OF THE RATE HIKE -- RISING CYCLE AND I THINK THE MARKET BREATHED A SIGH OF RELIEF AND WE BEGAN TO LOOK LIKE, IF THE FUNDAMENTALS WERE THAT BAD AND THIS CYCLE HASN'T BEEN AS BAD AS EXPECTED. ROMAINE: WE WERE TALKING ABOUT THE EARNINGS SEASON -- SCARLET: WHAT IS SLICING -- DRIVING THE MARKET? IS IT THE FED OR IS IT BONDS VERSUS EQUITIES OR SOMETHING ELSE? NANCY: IT IS THE DATA. WHAT WE SAW IS THAT THE ECONOMY WAS ROLLING OVER SO WE WERE APTLY GOING INTO A SLOW DOWN, IF NOT A MILD RECESSION. THE MARKET WAS PAYING ATTENTION TO THE DATA POINTS AND WHAT WAS THE FED GOING TO DO WITH THAT AND THEY KNEW THE CHAIRMAN CAME OUT AND SOUNDED BENIGN IN A PAIR -- IN HIS COMMENTS AND THAT GAVE THE MARKETS ARE RUSH AND WE HAVE TO JOBS MARKER -- THE JOBS NUMBER. EARNINGS MATTER BUT WE ARE NOT GETTING MUCH PUNISHMENT WITH COMPANIES MISS ON EARNINGS AND WE ARE SEEING FORGIVENESS FROM THE STOCK MARKET AND THE BOND MARKET HAS BEEN MORE BULLISH. WE ARE ADDING TO NAMES AND I HAVE BEEN TALKING ABOUT WITH YOU GUYS THAT WE HAVE BEEN ADDING RISKS BACK TO THE PORTFOLIO IN THE THIRD AND FOURTH QUARTER AND THAT FEELS LIKE IT WAS RIGHT DECISION. WE HAVE ANOTHER CHANCE TO ADD MORE AND IF WE DO, WE WILL BUT WE ARE HAPPY WITH WHERE WE ANSWERED MANY NAMES IN OUR PORTFOLIOS. NANCY: WE HAVE -- ROMAINE: WE HAVEN'T SEEN MANY NAMES IN THE BLOOMBERG TERMINAL. NANCY TENGLER IS STICKING WITH US AS WE COUNT DOWN TO THE CLOSING BELL AND JUST ABOUT 15 MINUTES AGO THERE WAS STOCKS OFF THE LOWS OF THE DAY -- WITH STOCKS OFF THE LOWS OF THE DAY AND RED ACROSS THE SCREEN WITH -- IN ALL 11 SECTORS. HUMAN I ON DISNEY AND -- KEEP AN EYE ON DISNEY AND BIG ROMAINE: THIS IS THE COUNTDOWN TO THE CLOSE AND I AM ROMAINE BOSTICK. WE ARE 10 MINUTES AWAY FROM THE END OF THE TRADING DAY AND STOCKS OFF THE LOWS OF THE DATA GOING TO BE RED ACROSS THE SCREEN AND A LOT OF WEAKNESS RIGHT NOW IN THAT TELECOM SECTOR. LOOMING TECHNOLOGY IS DOWN AND A LOT OF WEAKNESS IN THE SOCIAL MEDIA SPACE AND IN THE CHIPPER SOFTWARE SPACE. A LOT OF EARNINGS ON TAP. MATTEL, ROBINHOOD AND WALT DISNEY AND ITS NEW CEO, THE OLD CEO, BOB IGER. SCARLET: THE SEQUEL AND THAT IS COMING ABOUT 4:00 P.M. AND IN THE MEANTIME, AS WE GET CLOSER TO THE CLOSE, WE HAVE NANCY TENGLER. NANCY, ONE THING YOUR FIRM DOES THAT IS SUPER TIMELY IS OFFER A DYNAMIC INFLATION STRATEGY WHICH ALLOCATES TWO DIFFERENT INVESTMENTS AS INFLATION PICKS UP AND SLOWS DOWN AND MODERATES. WHAT IS OUTLOOK LIKE RIGHT NOW WHEN -- WHAT DOES THAT LOOK LIKE RIGHT NOW WHEN THE CONSENSUS IS INFLATION AS -- HAS PETE AND WE DON'T KNOW WHERE IT WILL GO TO. NANCY: MY PARTNER HAS MADE CHANGES AND MOVED IT OUT -- BACK TO A MORE SENSITIVE INFLATION -- INFLATION SECTION -- SENSITIVE PORTFOLIO. HE HAS TRIMMED BACK AND GONE LONG CURRENCY, ALONG THE YEN AND THE EURO AGAINST THE U.S. DOLLAR. WE HAVE BEEN EXPORTING TO INFLATION WITH THE STRONG DOLLAR AND WE WILL BE IMPORTING IT SO HE IS TAKING A BET ON OTHER CURRENCIES. IT IS MORE FLOATERS AND LESS OF THE EQUITY SENSITIVE NAMES BECAUSE WE THINK IT IS -- HAS PEAKED AND WE KNOW INFLATION IS MOSTLY SYMMETRICAL ON THE WAY UP AND THE WAY DOWN. NOT NECESSARILY LINEAR. WE ARE NOW NINE MONTHS INTO THE DECLINE. THAT IS WHERE HE IS FOCUSED. ROMAINE: THERE IS A LACK OF EFFECT OF INFLATION, NOT JUST IN TERMS OF THE DIRECT IMPACT BUT ON CONSUMER PSYCHOLOGY AND WE HAVE SEEN REPORTS WERE COMPANIES ARE SAYING THEY'RE PRICING POWER IS WAITING AND WE HAVE -- HEARD THAT FROM CONSUMER STAPLES COMPANIES AND CAPRI. AND THERE IS TO PULL IT --CHI POTLE. HE DID SAY THERE IS A LITTLE BIT OF A PUSHBACK FROM CONSUMERS IN THE RECENT QUARTER. NANCY: THAT IS TO BE EXPECTED AND I HOPE THE PRICING POWER IS WAITING AND THAT IS PUTTING PRESSURE ON THE LOWER INCOME CORE HELP -- COHORT. I THINK ONE OF THE THINGS YOU CAN EXPECT FROM CHIPOTLE IS THAT THEY WILL USE THEIR DISSERTATION -- THERE IS A TO -- DIGITIZATION TO INCREASE PROFITS. ROMAINE: THERE WERE EARLY ON DIGITIZATION. IT HAS TURNED OUT TO BE THE SECRET SAUCE. NANCY: IT HAS AN 37%, ACQUIRING THEIR FOOD. IN THE FREQUENT BUYER -- AND THE FREQUENT BUYER PROGRAM IS COMPELLING SO THEY WILL BE FINED AND THIS MAY BE A GOOD PLACE TO STEPHANIE. ROMAINE: WE ARE IN CONVERSATION WITH NANCY TENGLER. SHE IS STICKING WITH US AND THE COMPOSITION CONTINUES BUT WE WE WANT TO -- BUT WE WANT TO GO TO OUR REPORTER AT THE BOARD. JESS: THIS IS KEY BECAUSE THIS IS THE FIRST REPORT WITH BOB IGER BACK AT THE HELM AND INVESTORS ARE TAKING A CLOSE EYE WITH WHAT IS HAPPENING WITH THE STREAMING SERVICE AND THE PROXY FIGHT GOING ON WITH NESSON -- NELSON PELTZ. IT IS A LITTLE BIT FLAT FOR THE DAY AS FAR AS WHAT YOU ARE LOOKING OUT WITH THE BROADER MARKET FOR THIS YEAR. THE STOCK IS ALMOST UP 30% BUT IF YOU LOOK AT THE TECHNICAL LEVEL, WHAT IS HAPPENING WITH THE S & P 500 DAY, IT IS TRADING ABOVE THE 4100 LEVEL. IT IS KEY ESPECIALLY WHEN YOU LOOK AT THE INDEX, IT HAS COME A LITTLE BIT DOWN FROM THAT BUT I WANT TO TURN IT BACK TO NANCY BECAUSE I KNOW THAT NANCY -- DISNEY IS ONE OF YOUR HOLDINGS. HOW ARE YOU POSITIONING FOR THIS WHEN YOU HEAR THE RESULTS AND WHAT YOU WANT TO HEAR FROM THE COMPANY? NANCY: IT IS A GREAT COMPANY AND A BAD STOCK. WE HAVE BEEN RELUCTANT SHAREHOLDERS BECAUSE WE GET THE BRAND STORY AND THE PARTS AND STREAMING BUT IT HAS BEEN A DIFFICULT STOCK TO OWN. BREAKING BACK BOB IGER, WHILE IT MAY BE GOOD NEWS FOR MANY INVESTORS, SHOWS A PROFOUND LACK OF SUCCESSION PLANNING AT THE COMPANY. WHAT WE WANT TO HEAR IS WHAT WILL YOU DO WITH STREAMING? THE COST GOT UNDER CONTROL -- OUT OF CONTROL UNDER BOB CHAPEK. WHAT ARE THE EXPENSE REDUCTION PLAN FOR THE COMPANIES AND THERE ARE MANY PEOPLE WHO SAY BOB IGER IS NOT INTERESTED IN CUTTING EXPANSIONS BUT THAT HAS TO COME THROUGH BECAUSE THIS TOP -- STOCK HAS NOT BEEN TENABLE HOLDING FOR A LONG PERIOD OF TIME. SCARLET: I WANT TO GET YOUR TAKE ON THIS EXCITEMENT ON PEOPLE HAVE OVER AI. IT IS SOMETHING THAT ALPHABET IS JUMPING OVER AFTER MICROSOFT BOOSTED ITS INVESTMENT IN THE OWNER OF CHATGPT. IS THIS SOMETHING FOR YOU TO START INVESTING AROUND? NANCY: YEAH, WE HAVE AN I LOVE -- AND I LOVE THE SILICON VALLEY RIVALRIES. YOU SEE IT WITH LARRY ELLISON AND BILL GATES YEARS AGO. IT IS SUPER IMPORTANT AND THAT IS OBVIOUS. WE HAVE BEEN EXPRESSING OUR HOPE IN THAT BY BUYING IN OUR INFLATION STRATEGY, ROBOTIC ETF AND IN OUR ACTIVE EQUITY PORTFOLIOS BY OWNING THE SURPRISE SO MICROSOFT IS ONE OF OUR FAVORITE NAMES AND WE HAVE BEEN ADDING THAT -- TO THAT. IF YOU LOOK AT RUNNING STOCKS, -- EARNING STOCKS, IT IS RUNNING WELL. THEY HAVE A PSYCHOLOGICAL ADVANTAGE BUT THE EXPERTS TELL YOU COOL WILL BE FINE. THEY ARE PROBABLY THE MORE CERTIFICATED IN TERMS OF AI. SCARLET: THERE IS NO FIRST MOVER ADVANTAGE? NANCY: I DON'T THINK SO. I THINK THE INTERVIEWS THAT SATYA NADELLA GAVE WERE EXCELLENT BUT WE DON'T KNOW HOW THEY WILL MONETIZE IT AND GOOGLE IS IN A STRONGER POSITION. THIS IS AN INTERESTING TIME TO ADD TO YOUR HOLDINGS BECAUSE A PERCENT DECLINE, IT FEELS LIKE TOO MUCH WHERE AS TO FULLY GOT A PASS TODAY -- WHEREAS CHIPOTLE GOT A PASS. ROMAINE: GOOD TO SEE YOU IN THE FLESH. NANCY TENGLER, CEO AND CIO OF LAFFER TENGLER INVESTMENTS. SOME BREAKING NEWS CROSS THE RIDER -- CROSSED THE WIRE. RACKING, ONE OF THE WORLD'S LARGEST CRYPTOCURRENCY EXCHANGES, WE ARE LEARNING IT IS UNDER INVESTIGATION BY THE TOP U.S. INVESTIGATOR WHETHER IT BROKE U.S. SECURITY RULES. THIS IS AN SEC INVESTIGATION. WE WILL DIG DEEPER INTO THAT BUT YOU WANT TO SIT HERE BECAUSE TOTAL COVERAGE IS COMING UP ON THE DISNEY EARNINGS WHERE WE SEE THE BROADER MARKET TAKING UP. SCARLET: THE BIG QUESTION WHEN IT COMES TO DIZZY -- DISNEY, WINICK -- WHAT IT DOES TO COSTS AND HE HAS TO ADDRESS THAT OVER ITS NEW OTO BOB IGER AND WHAT IT MEANS WHEN IT COMES TO GROWTH. ROMAINE: FULL MARKET COVERED -- COVERAGE. WE WILL TAKE INTO THE BELL AND BEYOND. > > BEYOND THE BELL, BLOOMBERG'S COMPREHENSIVE CROSS PLATFORM COVERAGE OF THE U.S. MARKET CLOSE STARTS RIGHT NOW. ROMAINE: AND RIGHT NOW WE ARE TWO MINUTES AWAY FROM THE END OF THE TRADING DAY AND ROMAN RUSTIC AND SCARLET FEW -- ROMAINE BOSTICK A SCARLET FU ARE COMING YOU DOWN TO THE BELL. WE ARE JOINED BY CAROL MASSAR AND REGAN, FILLING IN -- AND MIKE REGAN, FILLING IN FOR TIM STENOVEC. A LOOK AHEAD HERE TO THE BIG EARNINGS OUT OF DISNEY. CAROL: WE STILL HAVE TO HOLD ONTO, IT IS WHAT WE GET FROM THE CEOS AND DISNEY IS A BIG ONE AND BOB IGER IS BACK AND IT IS HIS FIRST REPORT BACK AS CEO. SOMEBODY WHO KNOWS IT BUT HE HAS BEEN FLOATING NEW IDEAS IN TERMS OF HOW THEY GET SOME REVENUE STREAMS AFTER THE CONTENT -- THEIR CONTENT. MIKE: I WILL PUT SOMETHING OUT SOMETHING WALKING BUT MY COLLEAGUESIF YOU LOOK AT THE SP Y, THE S & P 500 MOST OF THE GAINS IN EXISTENCE HAVE COME AFTER HOURS BETWEEN THE CLOSE AND THE NEXT DAY. IT IS RARE FOR IT TO GAIN DURING THE DAY. 12 OF THE PREVIOUS 13 SESSIONS, TODAY WILL REMAIN THE OPPOSITE. IT GIVES YOU A HINT THAT THERE IS SOMETHING UNUSUAL GOING ON IN THE COMPLEXION OF THE TRADING THAT CAUSED WHAT WE SAW AND THIS IS A SIGN IT'S GOING AWAY. CERTAINLY A LOT OF DISTORTIONS WHETHER YOU TRUST THE NUMBERS OR NOT. THIS IS A DAY WHERE YOU HAVE THE S & P LOWER, THE A FEW OF THE BIG NAMES, IF YOU WILL, BEING THE ALPHABET. YOU CAN'T HAVE THE ALPHABET DON'T 8% AND HAVE THE MARKET IN THE GREEN. TESLA IS HIGHER ON THE DATE BUT IT ALL TOGETHER HERE IS WHAT WE GOT. S & P 500 CLOSING BY ABOUT 1%. TAKES A WHILE FOR THE NUMBERS TO SELL BUT YOU GET THE GIST. THE NASDAQ DOWN ABOUT 1.7%, CAROL. CAROL: AS YOU SAID A LOT OF NAMES DOWN IN TODAY'S SESSION. LOWER IN TODAY'S SESSION, ABOUT 206 HIGHER. SCARLET: YOU LOOK AT THE INDUSTRY GROUPS, THE 200 INDUSTRY GROUPS AND YOU CAN SEE THE LOSSES HERE CONCENTRATED LIKE MEDIA ENTERTAINMENT, ALPHABET ONE OF THE BIG LOSERS ALONG WITH ACTIVISION YOU HAVE GM FORD AND TESLA OF DOING THE AUTO COMPANIES. EQUIPMENT MAKERS HOLDING ONTO MODEST GAINS THERE. LET'S GET TO SOME OF THE SPECIFIC WINNERS. CBS GAINING TO -- HOLDING ONTO AGAIN. CAROL: ANNOUNCING THE $10.6 BILLION DEAL. ALSO POSTED EARNINGS RESULTS SO THAT PLAYING OUT THERE. NEW YORK TIMES ALSO A HUGE GAIN OR IN TODAY'S SESSION. REPORTED FOURTH QUARTER SALES THAT BEAT EXPECTATIONS, ACCELERATED GROWTH BY DIGITAL SUBSCRIPTIONS AND BUNDLE OFFERINGS AND FORWARD, TOP OF -- FORT NET TOP OF THE S & P 500. THAT COMPANY GIVING A STRONG SALES FORECAST FOR 2023. MIKE: IF WERE GOING TO TALK ABOUT THE DECLINERS WERE GOING TO HAVE TO START WITH ALPHABET. ALMOST 8%, THAT IS THE MOST IN MORE THAN THREE MONTHS AND IF YOU LOOK AT BOTH SHARE CLASSES OF ALPHABET IN THE S & P 500 AND ADDED UP, THOSE SHARE CLASSES TAKE ABOUT 10 POINTS OFF OF THE S & P 500. IT IS OBVIOUSLY BECAUSE OF THE DEMONSTRATION OF THE NEW AI SYSTEM DIDN'T GO SO WELL. IT REALLY GETS YOU THINKING ABOUT ALL THESE PLANS BITE TO COMPANIES. DEFINITELY SOME BANANA PEELS AHEAD FOR SOME OF THEM. LUMEN TECHNOLOGY, THAT IS DOWN 21%. THAT IS THE MOST SINCE 2020. STOP CLOSING THE LOWEST SINCE 1997. THIS IS AFTER THE FULL-YEAR EARNINGS ESTIMATE, I ALSO RECORDED 2.7 BILLION DOLLARS. FINALLY WANT TO TALK ABOUT JACK HENRY AND ASSOCIATES. ANYONE EVER HEARD OF THEM? NO ONE? THEY ARE IN S & P 500 COMPANY. ONE OF THE BIGGEST LOSERS TODAY. IT'S A COMPANY THAT PROVIDES COMPUTER SYSTEMS FOR BANKS AND OTHER FINANCIAL INSTITUTIONS. I CAN, IT'S A STORY ABOUT A FORECAST JUST COMING IN LOWER THAN ESTIMATED. ROMAINE: WE ARE STILL WAITING ON DISNEY EARNINGS AND OTHER CLOSINGS COMING ACROSS THE WIRE AFTER THE BELL. A QUICK LOOK AT THE YIELD SPACE AND WHAT WE SAW HERE ON THE DAY. SOME MODEST MOVES DOWN ABOUT 3.5 BASIS POINTS RIGHT NOW ON THE TWO YEAR YIELD. 30 YEAR YIELD DOUBT ABOUT THE SAME HERE. SCARLET: WE DO HAVE A EARNINGS OUT OF WIND RESORTS. ADJUSTED COST PER SHARE IS $1.23. THE LAS VEGAS OPERATIONS CAME IN BETTER THAN EXPECTED 585 .5 DOLLARS. THAT SHORTFALL REALLY COMING FROM THE ASIA SIDE AND WE KNEW THAT MACAU MAKES UP A GOOD PORTION OF THE REVENUE. THEY CAN SEE A SENSE OF HOW PAINFUL THE CHINA LOCKDOWN WAS FOR A COMPANY LIKE WYNN. CAROL: THE SPECIFIC NAMES THAT HAVE SO MUCH EXPOSURE AND AS YOU CAN SEEK CONTINUING TO TREAT UP ABOUT 2%. GAMING REVENUE JUMPING AFTER CHINA'S REOPENING. WE SAW THAT LATE JANUARY SO WE KNOW THERE IS MORE MOMENTUM IN SOME OF THESE NAMES. MIKE: KIND OF A GOOD START FOR THE YEAR UP MORE THAN ANY 5%. ROMAINE: WHAT DO YOU MAKE OF THE SEASON SO FAR? I THINK WE'VE GOTTEN A PRETTY GOOD READ ACROSS A VARIETY OF INDUSTRIES. IS THERE ANY KIND OF CONSTANT THAT TIES IT ALL TOGETHER? MIKE: I KEEP LOOKING AT THE OUTLOOKS, SEEING SOME OF THE BIG DECLINERS TODAY. IT'S ABOUT WHO IS CUTTING THEIR ESTIMATES FOR 2023. EVERYONE EXPECTED FOR THAT TO HAPPEN. WE ARE LOOKING AT, IF YOU GO BOTTOMS UP, EXPECTATIONS FOR NEGATIVE EARNINGS GROWTH IT'S REALLY HARD TO JUSTIFY THE STRONG START TO THE YEAR IF THAT OUTLOOK IS DETERIORATING THE WAY IT HAS. ROMAINE: SCARLET, THE THINGS YOU ARE LOOKING AT, HOW MUCH DOES THE MACRO REALLY OVERLAP WITH THE MICRO RIGHT NOW? SCARLET: DISNEY JUST REPORTED SO I DON'T HAVE TO ANSWER THAT QUESTION. ROMAINE: HERE ARE THE NUMBERS COMING ACROSS THE WIRE, 90 9/10 A SHARE, UP 70 PERSONS ON AVERAGE. DISNEY PLUS SUBSCRIBERS, NUMBER A LOT OF FOLKS ARE PAYING ATTENTION TO 161.8 MILLION THAT IS THE ESTIMATED AVERAGE OF 164. WRITE DOWN SOME OF THE OTHER NUMBERS YOU ARE TALKING ABOUT A LOSS OF MEDIAN. YOU ARE TALKING ABOUT EXPERIENCES, IT ACTUALLY SAW A PE PRETTY DECENT BUMP. IT WAS LOOKING ON AVERAGE FOR ABOUT 8.1. LOOKING AT SOME OF THE TOPLINE LINE NUMBERS HERE AS ACROSS THE WIRE, GUYS, WE SEE A BEAT PRETTY MUCH ACROSS THE BOARD ON A LOT OF THE KEY METRICS. SOME OF THE WEAKNESS WE ARE SEEING IN THE HULU SUBSCRIBE IS, IT APPEARS TO BE ABOVE OUR EXPECTATIONS. CAROL: BOB IGER BACK AS CEO, WENT AWAY, NOW HE IS BACK. WHAT HE SAYS IN THE PRESS RELEASE WE BELIEVE THE WORK WE ARE DOING AROUND CREATIVITY WILL REDUCING EXPENSES WILL LEAD TO BETTER GROWTH, BETTER POSITION AS TO WHETHER FUTURE DISRUPTION AND GLOBAL ECONOMIC CHALLENGES AND DELIVER VALUE FOR OUR SHAREHOLDERS. SO A LITTLE BIT OF AN IDEA OF HOW HE SEES THE OUTLOOK YOUR. ROMAINE: I WANT TO JUMP IN WITH ROBIN HAD EARNINGS. SCARLET: MISSING ANALYSTS ESTIMATES $380 MILLION. THE CRYPTO REVENUE ALSO TRAILING THE CONSENSUS ESTIMATE. 39 MILLION VERSUS 39.8 MILLION. YOU ARE SEEING AGAIN THAT MAY BE TIED TO SOME COST-CUTTING MEASURES BECAUSE ROBINHOOD COFOUNDERS ARE CANCELING ABOUT HALF A BILLION DOLLARS OF THEIR SHARE-BASED COMPENSATION. IT'S ADJUSTING FOR THE FOURTH QUARTER. THE CONSENSUS ESTIMATE WAS FOR ABOUT $50 MILLION. ROBINHOOD DID BETTER THAN EXPECTED AND AGAIN THE STOCK IS HIGHER BY 1.25%. MIKE: THAT GIVES T OTHER BIG THEME OF THIS EARNINGS SEASON. THESE TECH COMPANIES ARE CUTTING COSTS WHETHER IT MEANS LAYOFFS, CANCELING COMPENSATION LIKE THAT THEY ARE TRYING TO PROTECT THE MARGINS. YOU HAVE TO WONDER IF IT WILL WORK, IF THE STOCK MARKET IS GOING TO SAY OK, THE EXCESSES FROM THE PANDEMIC ARE OVER AND THOSE MARGINS ARE SAFE. ROMAINE: SHARES ARE STARTING TO MOVE HERE AFTER HOURS. MATTEL DOWN ABOUT 9%. THOSE RESULTS JUST CROSSING THE WIRE HERE. THE FOURTH QUARTER NUMBERS COMING IN WELL BELOW WHAT THE FED WAS LOOKING FOR. LOOKING ON AVERAGE FOR $.29 PER SHARE HERE THAT SALES ALSO MISSING 1.4 BILLION OFF THE ESTIMATE. HERE IS THE GUIDANCE, GUYS. ADJUSTED EPS, 110-120. BIG PART OF THE REASON YOU SEE THE WEAKNESS IN THE SHARES RIGHT NOW, 11 PERCENT LOWER. CAROL: WE ARE SEEING SOME MOVEMENT HERE. THE OUTLOOK FOR THE FIRST QUARTER HERE THEY ARE TALKING ABOUT ADJUSTED EPS $.99 A SHARE. $.74 WAS THE ESTIMATE. FIRST QUARTER SUBSCRIBERS ALSO A BIG NUMBER. THIS IS THE CURRENT QUARTER OR PAST QUARTER. 161.8 MILLION AND THE ESTIMATE WAS 164. THEY ARE MAKING SO MUCH ON STREAMING. WHAT I WILL SAY ABOUT BOB IGER IS HE UNDERSTANDS THE DIFFERENT PARTS OF THE BUSINESS. IT WILL BE INTERESTING TO SEE WHAT HE SAYS AND HOW HE BUILDS THEM OUT EVEN MORE. ESPECIALLY BECAUSE HE IS SUCH A MEISTER ON THE CONFERENCE CALL. HE IS ABLE TO GIVE GOOD NEWS ALONGSIDE WHATEVER DISAPPOINTING NUMBERS MAY HAVE BEEN ENCAPSULATED AND GIVING INVESTORS SOMETHING TO LOOK FORWARD TO. PAY ATTENTION TO WHATEVER STRATEGY HE ANNOUNCES IN THE MEDIA SEGMENT AND THIS IDEA OF WHETHER THEY WILL CHINA MAKE MONEY BY LICENSING SOME OF THEIR CONTENT. ALL OF THE DIFFERENT CONTENT OWNERS HAVE BEEN SPENDING LESS TO MAKE SURE THE CONTENT IS BACK HOME SO THEY OWN EVERYTHING BUT NOW THERE IS AN OPPORTUNITY PERHAPS TO MONETIZE THAT ONCE AGAIN. MIKE: WHAT DOES NELSON PELTZ INC. ABOUT THE EARNINGS? DISNEY DEALING WITH THE ACTIVIST FOR A SEAT ON THE BOARD. PERHAPS, ROMAINE, THIS TAKES A LITTLE BIT OF THE HEAT OFF OF HIM. ROMAINE: WHEN YOU LOOK AT THE NUMBERS OVERALL, THEY ARE GOOD. THEY ARE IN LINE WITH WALL STREET EXPECTATIONS. WHAT I REALLY WANT TO HEAR, IS REALLY ABOUT THE STRATEGY. EVERYONE IS PATTING HIM ON THE BACK. LET'S NOT FORGET THE STRATEGY THAT HE WAS TRYING TO IMPLEMENT WAS A STRATEGY THAT WAS A DIRECT OUTGROWTH OF THE PREVIOUS IGER ADMINISTRATION. WHY AM I TO BELIEVE THAT IGER NOW COMING BACK IS GOING TO DO IT? ROMAINE: HE WAS CEO FOR A LONG TIME AND PULLED IN SOME NEW BUSINESSES. HE THOUGHT ABOUT BRINGING NEW CONTENT AND HOW DO YOU KIND OF SPREAD IT AMONG THE OTHER DIFFERENT PLATFORMS? THIS IS SOMEBODY WHO TRULY UNDERSTANDS THIS COMPANY AND WAS HEAD OF IT FOR A LONG TIME. I THINK THAT WAS THE ADVANTAGE POTENTIALLY OVER HIS PREDECESSOR. SCARLET: AND HE HAD THE BUY-IN FROM HIS EMPLOYEES. THEY WOULD FOLLOW HIM IN EVERY DIRECTION, WHATEVER DIRECTION HE CHOSE. WITH BOB I CHECKED THERE WAS RESISTANCE. HE GOT INTO A COUPLE OF PR MESSES WITH THE GOVERNOR OF FLORIDA THAT DID NOT GO WELL WITHOUT -- WITH HOW THE COMPANY WAS RECEIVED. ROMAINE: THAT IS A WRAP. WE CALL IT BE ON THE BILL. WE WILL SEE YOU AGAIN SAME TIME SAME PLACE, TOMORROW. ROMAINE: AND WE CONTINUE OUR COVERAGE HERE ON BLOOMBERG TELEVISION. PEOPLE PAY ATTENTION TO WHETHER IT'S REVENUE, WHETHER IT'S STREAMING REVENUE, OR IF IT'S EPS ALL COMING IN LINE. GIVE ASSISTANCE HERE RIGHT NOW OF WHAT JUMPED OUT AT YOU MOST. WERE YOU SURPRISED BY ANYTHING IN HERE? > > THE NUMBERS THAT JUMPED OUT AT ME, I WAS LOOKING AT STREAMING LOSSES. THIS IS WHY THEY GOT SO MUCH FLAK LAST QUARTER WHEN THEY REPORTED 1.5 BILLION IN STREAMING LOSSES. WE WERE EXPECTING 1.2 5 BILLION THEY CAME IN JUST OVER ONE BILLION SO A BEAT THERE IN MY VIEW. THEN YOU LOOK AT THE PARKS NUMBERS ABSOLUTELY A RESOUNDING SUCCESS THERE WE WERE EXPECTING 2.5, 2.6 AND THEY CAME IN WELL OVER 3 BILLION. ALMOST 35%. IS THE BUZZ WORD ON WALL STREET OF ABILITY I CAN TELL YOU BOB IGER IS PART OF IT. ROMAINE: HOW MUCH CAN BE CREDITED TO BOB IGER? HE CAME BACK BUT SOME OF THE CHANGES HAD ALREADY BEEN IN PLACE. > > ABSOLUTELY. WHILE THIS REPORT OBVIOUSLY IS ABOUT NUMBERS I THINK A LOT OF IT IS GOING TO BE STRATEGIC DIRECTION. PENN SETTING THE TONE AND RESETTING SOME OF THE SUBSCRIBER TARGETS OUT THERE. WE ALREADY SAW THAT. IF YOU LOOK AT THE SUBSCRIBER NUMBERS, THIS IS A COMPANY THAT HAS POSTED GAINS EVERY QUARTER THIS QUARTER, THEY ACTUALLY LOST SUBSCRIBERS AND, AGAIN, INVESTORS NOT REALLY CARING ABOUT THAT AT ALL BECAUSE AT THE END OF THE DAY IT'S ALL ABOUT THE BOTTOM LINE. AS LONG AS HE CAN ARTICULATE A STRATEGY FOR THIS COMPANY WERE YOU HAVE PROFITABILITY AND YOU HAVE SUSTAINED EARNINGS GROWTH, I THINK INVESTORS ARE GOING TO CHEER THAT. ROMAINE: I REALLY WANT TO HEAR HIM ARTICULATE THAT. BASED ON YOUR OWN RESEARCH AND YOUR OWN INSIGHTS HERE, HOW MUCH OF A SHIFT, IF AT ALL, DO YOU EXPECT OUT OF THIS? IS THIS GOING TO BE STAYING THE COURSE AND MAKING IMPROVEMENTS AROUND THE EDGES OR DO YOU EXPECT TO SEE IMMATERIAL SHIFT? > > I THINK WE ARE EXPECTING A LOT MORE AUSTERITY. THERE ARE QUITE A LOT OF CONTENT , IF YOU ARE LOOKING AT THE MEDIA BUSINESS ITS CONTENT AND NON-CONTENTS COST. IF THEY ARE GOING TO STAY IN THAT 30 BILLION'S. THEY ARE GOING TO CUT COSTS AS MUCH IS POSSIBLE. A LOT OF THESE ARE ALREADY SPOKEN FOR. NOW, THE BIG AREA WE ARE LOOKING AT IS NON-CONTENT COST. THAT IS ALMOST 30% OF REVENUE. THAT IS WAY ABOVE SOME OF THEIR PEERS. NETFLIX IS ONLY 20% OF THEIR REVENUE. THEY ALREADY HAVE A LOT OF ROOM TO CUT COSTS. THAT IS FOR BOB IGER TO COME IN THERE AND PROVIDE GOOD STRATEGIC DIRECTION. SCARLET: IT IS A CATALYST BUT BIBLE -- BOB IGER ISN'T FOR TRANSFORMING DISNEY. THINKING BIG IN TERMS OF WHAT THE COMPANY CAN ACHIEVE. WHAT IS THE GROWTH THAT HE CAN PULL? > > THERE ARE SO MANY, I GUESS, LOOSE ENDS AND A LOT OF IT HAS TO DO WITH THE ASSETS I THINK THE TWO BIG QUESTIONS ON EVERYBODY'S MIND IS WHAT HAPPENS WITH ESPN? ARE THEY LOOKING TO KIND OF SPIN OFF ESPN? THE WRITING IS ON THE WALL WHEN IT COMES TO THE FUTURE OF TV NETWORKS. WE KNOW ESPN IS GOING TO BE LOSING OR THERE IS GOING TO BE A DECLINE EVEN AS EXPORT COSTS GO UP. WHAT IS THE STRATEGY THERE? ARE THEY GOING TO RUN THE COURSE? THEY GOING TO MAKE A BIGGER PUSH INTO STREAMING WITH ESPN AND AGAIN WHAT IS THE DIRECTION WITH HULU? WE KNOW THEY HAVE TO BUY OUT COMCAST WHICH IS ABOUT 33% ARE THEY GOING TO EXPEDITE THAT? AGAIN, THOSE TWO ARE, I THINK THE TOP MOST QUESTIONS RIGHT NOW. WILL THEY ACTUALLY WALKED BACK THERE SUBSCRIBER TARGETS IF THE FOCUS RIGHT NOW IS PROFITABILITY, IT'S NOT A SUBSCRIBER ACQUISITION RIGHT NOW. THEY ALREADY SEEM TO HAVE A REALLY GOOD PLAN IN PLACE AND IT MAKES SENSE AT THIS POINT TO WALK BACK THE TARGETS AND ARTICULATE A QUICKER PATH TO PROFITABILITY. ROMAINE: ALWAYS SO GREAT TO HAVE YOU JUMPING ON A BUSY DAY. U.S. MEDIA ANALYST FOR BLOOMBERG. WE WILL CONTINUE OUR COVERAGE BUT WE WANT TO GET TO BREAKING NEWS. RESULTS FROM A FIRM. IT IS ANNOUNCING RESTRUCTURING PLANS THE SHARE IS ABOUT 18% DOWN. IT APPEARS TO BE RELATIVELY SMALL, 35 MILLION-AS WITH THE COMPANY IS SAYING IT DOES PLAN TO REDUCE THE WORKFORCE BY ABOUT 500 EMPLOYEES THAT REPRESENTS ABOUT 19% OF ALL THE COMPANY'S EMPLOYEES HERE IT ALSO SAYS IT'S REEVALUATING ITS NEED FOR LEASED OFFICE SPACE AND HAS DECIDED TO VACATE THE PORTION OF ITS SIN FRANCISCO OFFICE. WE POINT OUT THAT WE HAVEN'T SEEN THE NUMBERS FOR THE QUARTER YET IT APPEARS THEY MIGHT HAVE MISSED THOSE. INVESTORS HERE SEEING SOME THINGS THAT THEY DON'T LIKE. ROMAINE: WE DON'T HAVE THE NUMBERS HERE WE DO KNOW THERE IS A HEADLINE SAYING QUARTERLY REVENUE SO IN ADDITION TO THOSE COSTS BECAUSE YOU WERE JUST TELLING US ABOUT ON THE TOP LINE FOR MISSING THE CONSENSUS HERE. ROMAINE: GOING TO GET BACK TO DISNEY HERE WE NEED TO TAKE A QUICK. THE SHARES ARE HIGHER HERE IN AFTER HOURS TRADING. STICK WITH US, THIS IS BLOOMBERG. ♪ SCARLET: WE ARE FOCUSED ON DISNEY WHICH REPORTED EARNINGS, SHARES RIGHT NOW ARE TRADING HIGHER IN AFTER HOURS TRADE AFTER IT CAME OUT WITH NUMBERS THAT BEAT THE FIRST QUARTER ADJUSTED EPS. HOWEVER, DISNEY PLUS SUBSCRIBERS DID MISS THE MARK. IT'S LESS ABOUT THE GROWTH AND MORE ABOUT MONETIZING THE SUBSCRIBER BASE AND MAKING SURE THEY HAVE A STRATEGY GOING FORWARD. FOR SOME MORE INSIGHT, LET'S CHECK IN WITH MARK DOUGLAS, FOUNDER AND CEO OF MOUNTAIN. A COMPANY THAT BUILDS ADVERTISING SOFTWARE TO DRIVE MEASURABLE CONVERSIONS. AND MORE ALL THROUGH THE MEDIUM OF TELEVISION. THANK YOU SO MUCH FOR JOINING US. YOU HAD A CHANCE TO LOOK AT DISNEY'S NUMBERS OR AT LEAST LISTEN TO US GO OVER THEM, WHAT STRUCK OUT TO YOU? > > IT'S GENERALLY GOING TO BE A FRIENDLY QUARTER TO DISNEY GIVEN THE FAMILY THEME OF THE ENTIRE COMPANY SO IT'S NOT A SURPRISE THAT Q4 WAS REALLY STRONG. THEY DID LOSE SOME SUBSCRIBERS IN TERMS OF DISNEY PLUS AND I THINK THAT ACTUALLY LEADS TO THE BIGGEST CHALLENGE THEY HAVE, WHICH IS EVERYTHING THE CELL THEIR CUSTOMERS THINK IT'S EXPENSIVE. THAT IS THE REAL FUNDAMENTAL ISSUE THEY HAD IN 2023 IS HOW A DEAL WITH THE CUSTOMERS THINKING PROFITS ARE SO EXPENSIVE TO BUY. ROMAINE: HAS IN IT ALWAYS BEEN THAT WAY? AT LEAST THE LAST COUPLE OF DECADES. I THINK ABOUT THIS IDEA HERE JUST HOW STICKY THE BRAND IS. IT'S OBVIOUSLY ONE OF THE MOST ICONIC AND THEY FOUND A WAY TO LEVERAGE THAT AND KEEP PEOPLE IN THE FOLD DESPITE THE FACT THAT YEAH YOU'RE GOING TO SPEND 10 GRAND TO TAKE YOUR FAMILY TO DISNEY WORLD. > > IT FEELS LIKE A SMALL FORTUNE TO GO TO DISNEYLAND. DISNEY PLUS FEELS LIKE IT'S GETTING MORE EXPENSIVE AND YOU ARE RIGHT THIS TO SLEEP. IT HAS DEVELOPED OVER TIME. BOB IGER KIND OF LET IT, THEY KEPT ADDING MORE LAYERS OF VALUE SO BOB IGER IS A STRATEGY IN THE PAST AND I'M A BIG FAN OF BOB IS HE WOULD DO STRATEGIC ACQUISITIONS. THEY BOUGHT STAR WARS, THEY BOUGHT PIXAR, THEY ADDED RIDES AT DISNEY AND THOSE THINGS ARE VERY EXPENSIVE. THE STRATEGY THERE IS GOING TO BE THERE'S PROBABLY A LOT OF AMA AT DISNEY. THEY HAVE TO ADD VALUE FOR THESE PRICE LEVELS. ROMAINE: WHAT'S OUT THERE, THOUGH? WHAT DO YOU THINK THEY WOULD BE INTERESTED IN? > > THAT'S THE CHALLENGE. THEY ARE WILLING TO PAY, THE PRICE FOR PIXAR, PEOPLE WERE ASTOUNDED. IT WAS WELL INTO MANY BILLIONS OF DOLLARS. THEY ARE GOING TO HAVE PREMIUM CONTENT, THEY ARE WILLING TO OWN IT, ADDED TO THINGS LIKE DISNEY PLUS AND THEN TICKETS TO THEME PARKS, THEY ARE LOOKING FOR FRANCHISES THAT CAN GO ACROSS ALL OF THEIR PROPERTIES AND INCREASE THE VALUE OF ALL OF THEIR PRODUCTS IN ONE ACQUISITION. THERE IS NOT A LONG LIST OF CANDIDATES. IF YOU ARE IN HOLLYWOOD YOU ARE BASICALLY EXCITED. SCARLET: WHAT YOU ARE MAKING THE ARGUMENT FOR AS THE COMPANY HAS GONE FROM ASPIRATIONAL TO PREMIUM/LUXURY AT A POINT WHERE THE CONSUMER HAS LESS TO SPEND ON THESE ITEMS. IF THAT'S THE CASE WHAT IS YOUR READ ON HOW DISNEY CAN HOLD ON TO THE MASS AUDIENCE BASE? > > THEY ARE INITIALLY CUTTING COSTS. PARTIALLY PROBABLY TO MAKE ROOM FOR ACQUISITIONS. ACQUISITIONS, YOU KNOW, THEY DON'T IMMEDIATELY CONTRIBUTE SAVINGS. FOR A PERIOD OF TIME THERE ARE THINGS LIKE COSTS. RIGHT NOW I THINK THEY ARE RELYING ON LET'S HIT THE NUMBERS, BUT CUT COST TO SATISFY BASICALLY RUN THE BUSINESS AND ALSO TO MAKE -- SATISFY WALL STREET. I THINK THAT WILL TAKE THEM A FEW, YOU KNOW, MANY QUARTERS BUT BOB IGER IS A STRATEGIST. THEY HAVE TO LOOK TO THE FUTURE. OR THEY'RE JUST GOING TO LOSE A WHOLE SEGMENT OF THE AMERICAN CONSUMERS THAT SIMPLY ARE TAPPED OUT ON DISNEY PRODUCTS. I DON'T THINK THEY'RE GOING TO LET THAT HAPPEN. ROMAINE: FOR ALL THE EXCITEMENT AROUND HIS RETURN AND THE CONFIDENCE PEOPLE HAVE INCLUDING YOURSELF, IF YOU BELIEVE HE IS ONLY GOING TO BE THERE A COUPLE OF YEARS. THE IDEA IS HE IS GOING TO HAVE TO PASS THE BATON. IF THEY STICK TO THE TWO-YEAR TIMEFRAME, DO YOU THINK YOU CAN GET DONE WHAT NEEDS TO BE DONE IN SUCH A SHORT AMOUNT OF TIME? > > I THINK YOU CAN GET IT DONE. IN TERMS OF WHO SUCCEEDS HIM I WOULD NORMALLY THINK, ONE PROPERTY WE HAVEN'T ENGINE TO HULU. I THINK HULU IS KIND OF, IT HASN'T REACHED ITS FULL POTENTIAL AS PART OF DISNEY YET. TV LOOKS LIKE IT'S GOING TO RE-CONSOLIDATE AWAY FROM CABLE BUT TOWARDS PROPERTIES LIKE HULU, YOUTUBE TV, THOSE KINDS OF THINGS. DISNEY OWNS ONE OF THE PREMIER ASSETS, IF NOT THE PREMIER ASSET AND IT KIND OF CONSOLIDATED STREAMING OFFERING. I WOULD NORMALLY SAY WHEN THEY FIND, HOWEVER IS A STRONG LEADER AT HULU IN THE FUTURE IT MAY BE A GOOD CANDIDATE TO BE A STRONG LEADER FOR ALL OF DISNEY. SCARLET: SO RIGHT NOW DISNEY IS FOCUSED ON LOOKING AT COSTS AND MAKING SURE THE COSTS ARE MANAGED AND TO THE SATISFACTION OF INVESTORS. WHAT IS THE READTHROUGH HERE TO COMPANIES LIKE WARNER BROS. DISCOVERY AND PARAMOUNT WHICH ARE EMBARKING ARE THEIR OWN HARD LOOK AT COSTS AS WELL. > > WARNER AND DISCOVERY, THE WAY IT WAS ARTICULATED IT WAS VERY AMBITIOUS. IN OTHER REALLY STRONG LEADER AND SO FORTH. I THINK THE VISION OF THE COMBINED COMPANIES HASN'T BEEN REALLY FULLY ARTICULATED AND AS A RESULT, YOU CAN'T RELY SOMETHING THAT PEOPLE DON'T UNDERSTAND WITH THE VISION IS. I THINK FOR THEM, THEY HAVE TO BASICALLY GET BETTER AT ARTICULATING WHO THEY ARE WHY THEY EXIST, WHAT THEY ARE FOR THE -- WHAT THEY OFFER THE CONSUMER. THAT IS WHAT IN Q1 THEY SHOULD BE TALKING ABOUT. I THINK THE MARKET IS RECEPTIVE TO IT. EVERYONE JUST NEEDS TO HEAR IT. ROMAINE: REALLY APPRECIATE YOU JUMPING ON. PART, FOUNDER AND CEO OF MOUNTAIN. I LOOK AT DISNEY EARNINGS. GOING TO CONTINUE COVERAGE OF THAT HERE ON BLOOMBERG BUT WE DO WANT TO GET TO SOME OTHER EARNINGS ACROSS THE WIRE. AFFIRM REPORTING AND THOSE SHARES DOWN ABOUT 18-19%. THE BIG NEWS HERE IT IS GROSS MERCHANDISE VALUE. THE GUIDANCE GIVEN ALSO COMING IN BELOW WITH THEY WERE LOOKING FOR. IT'S GOING TO INCLUDE ABOUT A 19% CUT. SCARLET: WHAT HAS BECOME THE MANTRA OF ALL THESE TECH COMPANIES, THEY ARE LOOKING AT EVERY KOSTKA POSSIBILITY INCLUDING THE NEED FOR LEASED OFFICE SPACE. THIS IS WHAT 2023 LOOKS LIKE FOR TECHNOLOGY. ROMAINE: MATTEL SHOWS ALSO DOWN ALMOST 10%. THEY DID MISS ON SOME OF THE KEY METRICS BUT PAY ATTENTION TO THE GROSS MARGINS. THAT SEEMS TO BE WHAT INVESTORS ARE REACTING TO SO WE ARE GETTING A FEEL FOR A LOT OF THESE DIFFERENT COMPANIES. SOME OF THESE OTHER COMPANIES CLEARLY HAVING STRUGGLES OF THEIR OWN. SCARLET: AND THEY ARE ALL CONSUMER FACING TUBING, WE SHOULD REMIND EVERYONE. ROMAINE: JOHN GARNER, THE MANAGING DIRECTOR OF BUSINESS ADVISORS WE WILL TALK ABOUT THE PARKS BUSINESS BECAUSE LET'S FACE IT THEY CHARGE MORE BUT PEOPLE KEEP COMING. SCARLET: I'M SCARLET FU LET'S TAKE A LOOK AT HOW THE MARKETS PERFORMED. YOU CAN SEE THE RED FOR THE NASDAQ, THE DOW AND THE S & P 500. FED SPEAK WAS FRONT AND CENTER AND THE MESSAGE THERE FROM ALL THESE DIFFERENT BANK OFFICIALS IS INTEREST RATES WILL NEED TO RISE TO KEEP FIGHTING INFLATION. WE SEE THE DOLLAR MOVING UP SLIGHTLY BY 1/10 OF 1%. ROMAINE: BACK TO THOSE DISNEY EARNINGS. PRETTY INTERESTING BEAT ON THE KEY METRICS HERE. THERE IS A LOT MORE FOCUS AND LESS ON THE NUMBERS. MORE IMPORTANTLY ON THE STRATEGY THAT BOB IGER IS GOING TO HAVE TO ARTICULATE GOING FORWARD THROUGH HIS TWO-YEAR TENURE. CAROLINE HYDE JOINING US RIGHT NOW. HE MAY BE THERE FOR 10 YEARS I SAY TWO YEARS BUT THIS IS BOB IGER WE ARE TALKING ABOUT. CAROLINE: NOT SURE THE INVESTORS WANT TO TALK ABOUT THAT. ROMAINE: MOST OF THE INVESTORS SEEM CONFIDENT WITH HIS RETURN. AT LEAST THAT HE'S GOING TO DO BETTER. CAROLINE: WE ARE EMBARKING ON A SIGNIFICANT TRANSFORMATION. HE SAID THE PLAN IS TO RESHAPE THE COMPANY, REDUCE EXPENSES. IT'S TOUGH TO TALK TO THE INVESTORS WHERE ARE WE GOING TO SEE THE COST STRUCTURE? WE HAD ANALYSTS BRACING THEMSELVES. AND HOW WE SEE A RESTRUCTURING OF THE MEDIA PART OF THE BUSINESS HE HATED THAT WHEN IT WAS DONE BACK IN 2020. ROMAINE: BUT WHY? CAROLINE: THE LACK OF CREATIVITY. OF COURSE ANOINTED BY BOB IGER TOOK THE STEPS TO RESHUFFLE AND RE-CHANGE THE WAY IN WHICH THE BUSINESS OF MEDIA WAS RUN. IT TOOK THE CONTROL OUT OF CREATORS THOSE ACTUALLY MAKING THE CONTENT. AND PUT IT MORE IN CHARGE UNDER THE HANDS OF BOB PAYCHECK AND THE PEOPLE HE WANTED ROMAINE:. IS THAT WHY SOME OF THE STAR WARS EPISODES ARE SO THAT? SCARLET: WE -- REMOVING SOME OF THE MAGIC THAT MAKES DISNEY DISTINCT. I GUESS THE QUESTION IS FOR THE CONFERENCE CALL TO MANY BOB'S. WHAT DOES BOB NEED TO SAY TO GET INVESTORS FURTHER EXCITED? CAROLINE: I THINK A REAL CLEAR NARRATIVE ON HOW MUCH THEY'RE GOING TO PAY FOR CONTENT. HOW IMPORTANT IS THAT? WHERE IS THE CONTENT GOING TO BE DELIVERED? HOW ARE THEY GOING TO FOCUS ON ESPN? THINK OF WHAT THEY SAW ALREADY WE SAW SUBSCRIBER LOSSES FOR PERHAPS THE FIRST TIME PRODUCING PLUS. THEY LOST THE RIGHTS TO THE CRICKET. WHAT IS THAT MEAN FOR ESPN? HOW HARD ARE THEY GOING TO FIGHT THE LIKES OF GOOGLE AND AMAZON WHO ARE WANTING TO GET IN ON THE SPORTS RATES AS WELL AND HOW ARE THEY GOING TO WRITE CONTENT FOR PLUS GOING FORWARD? ROMAINE: EVERY TIME I HEAR OF COST CUTS THINK IS THAT POSSIBLE? I FEEL LIKE WE WENT THROUGH THIS WITH NETFLIX THEY WOULD SLOW DOWN AND THEN YOU WOULD SEE THE SUBSCRIBER GROWTH TROLL OFF BECAUSE THERE WAS NOTHING TO WATCH OR AT LEAST PEOPLE DIDN'T THINK THERE WAS ANYTHING TO WATCH. HOW DO YOU BALANCE THAT? CAROLINE: I SUPPOSE ULTIMATELY IT'S RESTRUCTURING A BUSINESS TO BECOME MORE PROFITABLE. AND GETTING THE RIGHTS TO THE CONTENT IN FRONT OF OUR EYES. THEY ARE NOT ACTING IN A VACUUM HERE. SCARLET: THE DIFFERENCE WITH DISNEY IS IT HAS THIS HUGE LIBRARY. IT HAS EXISTING IP TO PLAY OFF OF. THEY CAN REMAKE EVERY SINGLE IP THEY HAVE UNTIL THE COWS COME HOME FOR AS OTHER PEOPLE HAVE TO GO OUT AND BUY IT. ROMAINE: CAROLYN HAD ASKED OF THE PERSON COMING UP AFTER THE SHOW. WE ARE GOING TO HAVE A LOT MORE COVERAGE OF WHAT IS GOING ON BUT WE CONTINUE OUR COVERAGE OF THIS EARNINGS LET'S BRING JASON BASSINET HE IS HEAD OF GLOBAL MEDIA ENTERTAINMENT. WE WERE JUST TALKING WITH OUR COLLEAGUE ABOUT THIS IDEA OF COST CONTROLS AND I GUESS WHERE DO YOU MAKE THOSE COST CUTS WITHOUT SACRIFICING, I GUESS THEY NEED TO PRODUCE MORE CONTENT. HOW DO YOU DO THAT? > > LET ME JUST POINT OUT THAT THE MAJOR DIFFERENCE BETWEEN THE PROFITABILITY OF NETFLIX AND DISNEY REALLY HAS NOTHING TO DO WITH COSTS. NETFLIX MAKES ABOUT 6 BILLION AND DISNEY LOST 4 BILLION SO THERE IS A $10 BILLION DIFFERENCE THERE. 10% OF IT HAS TO DO A COST 80% OF IT HAS TO DO WITH ART. RIGHT NOW, EVERYONE IS FOCUSED ON THE COST FITTED -- BECAUSE IT IS SOMETHING MR. IGER CAN DO. SO I CAN PICK THAT IF YOU WANT. SCARLET: OK SO IT'S ABOUT MONETIZING THEIR EXISTING USER BASE AND MAKING SURE THEY DON'T LOSE ANY MORE OF THAT. WHAT IS THE BEST WAY OF DOING THAT WITHOUT RAISING PRICES? AS WE HEARD FROM OUR PREVIOUS GUEST OVER AT MOUNTAIN DISNEY HAS BECOME EXTREMELY EXPENSIVE TO WHERE IT'S MAY LUXURY PREMIUM AND NOT JUST A BRAND AVAILABLE TO EVERYONE. > > WHAT THEY ESSENTIALLY HAVE TO DO IS GET THE FLYWHEEL GOING. THE FIRST THING THEY NEED TO DO IS COMBINE THE DISNEY PLUS AND HULU UNDER A UNIFIED APP THAT WILL GIVE CONSUMERS EASIER ACCESS AND CREATE MORE DISCOVERY. IT WILL DRIVE ENGAGEMENT HOURS UP AND LOWER THE COST PER ENGAGEMENT HOUR FOR CONSUMERS. ONCE THEY SEE REALLY GOOD VALUE IT GIVES THE LUXURY OF HAVING HER CASH FLOW TO PLOW BACK INTO CONTENT. SECOND THING -- DIVINE ROMAINE: I'M SORRY GO AHEAD. > > IF YOU LOOK AT THE LOWEST WAY TO GET NETFLIX A LOOK AT THE REPORT THAT IS A THREE OR FOUR DOLLAR GAP AND THE REASON IS THEY OFFER SEVERAL FLAVORS OF NETFLIX PREMIUM, STANDARD, BASIC. DISNEY OF MONEY ON THE TABLE BY NOT LETTING THE CONSUMER SELF SELECT. ARE THEY JUST LOOKING FOR AN INEXPENSIVE WEIGHT TO COME IN WITH ONE STREAM. THERE ARE THINGS THEY CAN DO AND ONE LAST THING, IT'S REALLY IMPORTANT, THE THING THAT IS SO METHODICAL, WHAT CONSUMERS ARE LOOKING FOR IS A PAID TV SUBSTITUTE WHICH REALLY MEANS YOU DO NOT NEED TO HAVE ICONIC CONTENT. IF YOU LOOK AT NETFLIX, SOMETHING LIKE IF YOU LOOK AT THE TOP 10 SHOWS 80% OF ALL THINGS NETFLIX PUTS OUT THERE SHOW UP ON THEIR TOP 10 LIST. WITH THAT TOSI IS CONSUMERS ARE HUNGRY FOR JUST ANY PIECE OF CONTENT. NETFLIX DOESN'T KNOW WHAT'S GOING TO WORK. DISNEY DOESN'T KNOW WHAT'S GOING TO WORK BUT YOU NEED TO THROW MORE AGAINST THE WALL AND STEP AWAY FROM ICONIC IP THAT GOT DISNEY TO THE GREAT POSITION IT'S IN NOW. ROMAINE: THERE'S A COUPLE OF ISSUES, JASON. THERE'S A POT OF ANECDOTAL ISSUES RAISED. THE IDEA THAT DISNEY'S CONTENT WASN'T AS BROAD AS WHAT YOU GET WITH NETFLIX. IT MAY HAVE BEEN BETTER BUT YOU HAD A MUCH NARROWER SELECTION. IS THERE SOME SENSE HERE THAT WE ACTUALLY SEE BOB IGER RETURN TO THAT SORT OF INQUISITIVE NATURE HE WAS KNOWN FOR? > > I DON'T THINK SO. THIS IS ABOUT EXECUTION NOW. I DON'T THINK THEY NEED TO DO ANYTHING FROM THE ACQUISITION STANDPOINT. ROMAINE: I'M JUST GOING TO INTERRUPT YOU FOR ONE SECOND HERE. SOME HEADLINES CROSSING THE WIRE ON DISNEY RIGHT NOW BOB IGER SPEAKING ON A CONFERENCE CALL SAYING THE COMPANY WILL RATIONALIZE STREAMING BUSINESS AND CUT COSTS. THAT IS THE ONLY HEADLINE WE HAVE SO FAR SO I'M NOT EXACTLY SURE THE DETAILS BUT THIS GETS TO THE BROADER THEY THAT JASON WAS SPEAKING TO. SCARLET: AND WE WILL LOOK FOR MORE DETAILS AS THEY COME OUT FOR JASON YOU MENTION SOMETHING ABOUT HOW CONSUMERS ARE PUSHING FOR A PAID TV SUBSTITUTE. THAT MEANS DISNEY NEEDS TO HOLD ONTO ESPN, RIGHT? THEY NEED SPORTS. THAT IS THE ONE THING THAT KEEPS PEOPLE COMING BACK TO TELEVISION. > > THAT'S TRUE. THERE IS A STRATEGIC QUESTION. THAT IS DO YOU KEEP SPORTS AS A SEPARATE TIER OR DO YOU FEATHER IT IN TO THE EXISTING MORE GENERAL ENTERTAINMENT? THERE ARE PROS AND CONS TO EACH APPROACH. THAT IS A DECISION THEY'RE GOING TO NEED TO MAKE. THE OTHER POINT IS YOU HAVE SOME INVESTORS SHOULD THEY GET RID OF ESPN THAT WOULD BE THE DUMBEST THING IN THE WORLD FOR A COUPLE OF REASONS. ONE MOST OF THE CASH FLOW COMES FROM A LINEAR. THE SECOND THING IS IF YOU THINK ABOUT ESPN IT IS A DOMESTIC BUSINESS. THE REASON IT'S A DOMESTIC BUSINESS FOR DISNEY IS THE UNITED STATES IS THE ONLY COUNTRY IN THE WORLD WHERE YOU HAVE A MIDDLE LAYER BETWEEN SPORTS RATES, SPORTS CHANNELS, AND THE DISTRIBUTORS, THE CABLE COMPANIES. OUTSIDE THE UNITED STATES IT'S THE DISTRIBUTION PLATFORMS. WHAT'S REALLY INTERESTING IS NOW THAT DISNEY HAS A DIRECT RELATIONSHIP WITH THE CONSUMER THEY CAN TAKE ESPN AND GO GLOBAL FOR THE FIRST TIME. THEY ARE A VIDEO THIS TRIBUTE HER. ROMAINE: GREAT STUFF. REALLY APPRECIATE YOU JUMPING ON WE NEED TO CATCH UP WITH YOU SOON PARTICULARLY AFTER WE GET MORE DETAILS AS TO WHAT'S GOING ON. JASON BAZINET OVER THERE AT CITY RESEARCH. $5.5 BILLION WE ARE LEARNING THAT IS WHAT BIBLE IGER IS SEEKING HERE WE ARE ALSO LEARNING THIS WILL INCLUDE A NEW STRUCTURE FOR DISNEY WHICH WILL INCLUDE THREE CORE BUSINESS UNITS. ENTERTAINMENT, PARKS, AND I THINK THIS IS INTERESTING, ESPN. SCARLET: IT STANDS ON ITS ON. ROMAINE: A LOT OF PEOPLE FEEL IT SHOULDN'T BE ON ITS ON BUT BOB IGER HAS ME CLEAR THAT HE THINKS THIS IS A VITAL PART OF THE OVERALL STRATEGY FOR DISNEY AND HE NEEDS TO BE A PART OF IT. I THINK WE HAVE CAROLINE HARD -- CAROLINE HYDE STILL WITH US. SHE SITTING RIGHT NEXT TO ME. SHE IS READY TO SPEAK ABOUT THIS. I WANT TO GET YOUR TAKE. WE ARE TALKING FIVE POINT $5 BILLION IN COST SAVINGS. 7000 JOBS TO BE CUT IN THIS RESTRUCTURING AND A REFOCUSING OF THE BUSINESS UNITS. SEEMS LOGICAL, RIGHT? BUT THE IDEA THAT ESPN IS ITS OWN THING. CAROLINE: THE PREVIOUS THE SPLITTING OFF OF ESPN. MANY WOULD SAY THIS IS A CASH COW IT HAS SO MUCH REVENUE THAT YOU DO NOT WANT TO SPIN OFF. WHERE THE MARKET IS TRADING DESPITE THE RALLY WE HAVE SEEN. THEY ARE HAVING 7000 JOBS CUT. THIS IS A COMPANY THAT HAS 220,000 EMPLOYEES IT IS 7% OF ITS EMPLOYEE BASE BUT IT IS SHOWING THE STEADFASTNESS UNDER THE DURESS OF ACTIVIST INVESTORS THAT THEY HAVE TO CUT COSTS. 5.5 BILLION IS INTERESTING THAT A LOT OF THAT IS GOING TO COME FROM CONTENT. 2.5 BILLION OVER ALL BUT I DO THINK IT'S INTERESTING THEY ARE TRYING, AS WE UNDERSTOOD, STREAMLINE ENTERTAINMENT. WE EXPECTED THAT. AND THEN CRUISE LINES, CONSUMER PRODUCTS ALL BEING BROUGHT UNDER. ROMAINE: WHAT IS THIS COMPANY NOW? SOME PEOPLE WILL SAY IT'S A CONSUMER PRODUCTS COMPANIES SOME PEOPLE WILL SAY IT'S A TECH COMPANY. > > IT FEELS TO ME THAT THIS IS A COMPANY JUST TRYING TO FIND ITS WAY IN THIS NEW WORLD IN WHICH WE PAY FOR THINGS. A THIRD MAJOR TRANSFORMATION FROM BOB IGER. ROMAINE: JUST A COUPLE OF OTHER HEADLINES, DISNEY IS NO LONGER GOING TO PROVIDE LONG-TERM SUBSCRIBER FORECAST WHEN IT COMES TO THE STREAMING SERVICE. THAT FOCUS ON PROFITABILITY DISNEY IS REITERATING THE TARGET OF ACHIEVING PROFITS BY 2024. 2024, SCARLET. SCARLET: BUT IT IS REITERATING HIS TARGET, IT'S NOT CHANGING IT. ROMAINE: THAT'S GOOD. A LOT OF PEOPLE THOUGHT THEY WOULD HAVE TO WALK THAT BACK. SCARLET: IT'S PART OF THE AGGRESSIVE COST-CUTTING STRATEGY TO GET TO THAT POINT. THEY'RE GOING TO PLACE AND SET OF THEIR CONTENT. HOW CRITICAL WAS THIS, CAROLINE, TO HOLD STEADY TO ITS STREAMING PROFIT? CAROLINE: A THING TO KNOW, THIS IS BOB IGER WHO REALLY HELPED MANAGE THE PIVOT TO A DISNEY PLUS. STICKING BY IT AND HAVING TO VINDICATE WHY THEY ARE GOING TO CONTINUE TO REALLY FOCUS AND DOUBLE DONE ON DISNEY PLUS WITH THAT THEY ARE GOING TO CONTINUE TO SEE THEMSELVES AS A CONTENT CREATION. PEOPLE REALLY THOUGHT THEY WOULD WALK THAT BACK. THEY'RE GOING TO WANT TO UNDERSTAND HOW THEY GET THERE, WHERE DO THEY PULL BACK ON THE LEVERS AND I THINK THIS IS WHAT NELSON PELTZ AND SOME OF THE ACTIVISTS ARE GOING TO WANT TO SEE. THIS IS WHY IT IS TAKING BACK OVER THE BUSINESS. ALREADY WE ARE GETTING THE CHANGE BECAUSE ALREADY WE ARE GOING TO SEE A PUSH FOR DIFFERENT ORG TO COME APRIL 3. SCARLET: CAROLINE HYDE, THANK YOU, CAROLINE. THE LATEST HEADLINES COMING OUT OF DISNEY AND BE SURE TO CATCH HER EVERY DAY ON BLOOMBERG TECHNOLOGY. WE WILL GIVE YOU ALL KINDS OF HEADLINES. WE NEED TO REITERATE THE PARKS BUSINESS WHICH HAS DONE BETTER THAN EXPECTED FOR THE FOURTH QUARTER. TO HONE IN ON THAT PART OF THE BUSINESS THIS JOB. JOHN, WE HAD JUST RECAPPED THE HEADLINES HERE ABOUT HOW DISNEY IS GOING TO FOCUS ON THREE BUSINESSES. IT'S GOOD TO BE ENTERTAINMENT, PARKS, AND ESPN. LET'S TALK ABOUT THE PARKS IN THE FOURTH QUARTER IT HAD AN IF IT PUTS IT IN GOOD STANDING WITH 2023. > > I THINK THE RESULTS TODAY ARE BETTER THAN EXPECTED. EXPECTATIONS WERE FOR INCREASES FOR BOTH REVENUES AND OPERATING INCOME AND PARKS DIVISION INCLUDING RESORTS CAME THROUGH WITH EVEN HIGHER THAN EXPECTED REVENUES AND OPERATING INCOME. NOT ONLY HIGHER THAN EXPECTATION BUT ALSO HIGHER THAN WHAT THE COMPANY ACHIEVED BEFORE THE PANDEMIC FOR BOTH THE FIRST QUARTER OF 2019 AND 2020. SO THIS DIVISION TRULY HAS GONE PAST THE PANDEMIC SITUATION EVEN THOUGH CHINA STILL IS HAVING SOME OF THE LINGERING EFFECTS OF THAT AS FAR AS AFFECTING ATTENDANCE AT THE DISNEY PARKS THERE. OVERALL, WITH THE STRENGTH AND THE U.S. PARKS AND EUROPE, IT HAS GONE BEYOND WHAT IT DID BEFORE THE PANDEMIC. ROMAINE: TALK TO US A LITTLE BIT ABOUT THE PRICING POWER. WE KNOW AS A BRAND AND PROPERTY THERE IS A DRAW THERE THAT WILL PROBABLY, TO A CERTAIN EXTENT, BE ETERNAL. IT'S ALSO A MATTER OF THE BALANCE. THERE WERE CRITICISMS HERE ABOUT HOW EXPENSIVE CERTAIN FEATURES HAD GOTTEN, PARTICULARLY AT DISNEY WORLD IN FLORIDA. AS WELL AS SOME OF THE CHANGES MADE TO THE WAY PEOPLE CAN GET PASSES AND OTHER THINGS. WHAT IS THE BALANCE THAT YOU THINK YOU WANT TO SEE OUT OF DISNEY? > > I THINK YOU HIT ON IT WHEN YOU SAID BALANCE. ULTIMATELY, WHAT IS CONSIDERED THE BEST PRICE IS WHAT A VISITOR WOULD TYPICALLY EXPECT TO BE A FAIR PRICE. THAT IS DEPENDING ON WHAT THEY ARE RECEIVING IN RETURN. OVER TIME, DISNEY HAS FOUND OUT THAT THEY COULD INCREASE THE PRICE ON MANY OF THE PARKS AND PRODUCTS AND SERVICES THAT THEY PROVIDE WITHOUT SIGNIFICANT PRICE RESISTANCE. BUT, I THINK THIS PROCESS WHICH BEGAN DECADES AGO UNDER MICHAEL EISNER OF THE 1980'S PROBABLY REACHED ITS ULTIMATE LEVEL. THERE IS A STARTING TO BE PRICE RESISTANCE AS FAR AS PARK ADMISSIONS, SOME OF THE OTHER ADD-ONS AS WELL AS SOME OF THE RESORTS PARTICULARLY THE NEW STAR WARS RESORT WITH THE HIGH PREMIUM EXPERIENCE. I THINK THIS RESISTANCE SHOULD GIVE DISNEY A LESSON THAT WE NEED TO REFOCUS ON AFFORDABILITY AND BEING PRICED FAIR. ROMAINE: I JUST WANT TO POINT OUT, SCARLET, UP 8% THAT HOLDS OVER INTO THE CASH SESSION. ONE THING THAT IS INTERESTING, THIS IS A BIGGER RALLY THAN THE DAY AFTER IKER WAS RETURNING. I REMEMBER THAT RALLY. INTERESTING MOVE HERE. SCARLET: IT'S STILL EARLY. I WANT TO GO BACK TO WHAT YOU WERE SAYING, JOHN, ABOUT THE PRICE OF ADMISSION TO GO TO A DISNEY PARK. CLEARLY, PEOPLE WANT SOME MAGIC WHEN THEY GO THERE AND NICKEL AND DIMING CUSTOMERS JUST LEAVES PEOPLE FEELING LIKE THEY ARE BEING TAKEN ADVANTAGE OF. IT IS DISNEY IN THE POSITION TO LOWER TICKET PRICES ARE AT LEAST OFFER SOMETHING DIFFERENT SO IT REINTRODUCES THE IDEA THAT IT IS A VALUE FOR PEOPLE SHELLING OUT A LOT OF DOLLARS. > > IT IS NOT AN ABSOLUTE AMOUNT. IT IS WITH THE VISITOR FEELS IS A FAIR PRICE FOR WHAT THEY ARE RECEIVING. SO IF THEY ARE RECEIVING A BETTER PRODUCT, A MORE ENHANCED EXPERIENCE AND THIS IS THE KEY THING, WHAT DISNEY IS SELLING IN THE PARKS IS AN EXPERIENCE. THESE ARE NOT PRODUCTS AND THAT EXPERIENCE IS AFFECTED BY MANY FACTORS. INCLUDING WHETHER THE VISITOR FEELS THAT WHAT THEY ARE RECEIVING IS FAIR COMPARED TO WHAT THEY ARE PAYING, WHETHER ARE NOT THEY ARE BEING INCONVENIENCED, IRRITATED BY OTHER ASPECTS OF THEIR VISIT AT THE PARK, WHETHER OR NOT EMPLOYEE MORALE COMES INTO THIS AS WELL. THERE ARE SO MANY FACTORS BUT AT THE END OF THE DAY IT IS THE VISITOR EXPERIENCE THAT IS WHAT DISNEY IS SELLING THESE CONSUMERS AND THAT IS WHAT THEY NEED TO HAVE MORE ATTENTION TO. ROMAINE: IN CONVERSATION WITH JOHN GERNER THIS INVOLVES THE REINSTATEMENT OF THE DIVIDEND. THE COMPANY SAYS IT PLANS TO DO THAT BY THE END OF THE FISCAL YEAR 2023. DISNEY SAYS THE ADDITIONAL DIVIDEND WILL BE MODEST. I HAVE A COUPLE QUESTIONS FOR YOU AND IT HAS MORE TO DO WITH SOME OF THE FALLOUT WE SAW AT THE TAIL END SURROUNDING THE PARKS, OF COURSE THE BIG FIGHT IN FLORIDA. SOME OF THE POLITICAL OVERHANG, IF YOU WILL. I'M CURIOUS IF YOU THINK THAT ENDS UP BEING MATERIAL IF AT ALL OVER THE LONGER TERM AS PRICES GET THE PARKS BUSINESS BACK TO WHERE HE WANTS IT TO BE. > > AS FAR AS WHAT HAPPENED IN FLORIDA, AND I TALKED ABOUT THIS THE LAST TIME, WHAT I SAID THEN, I STILL STAND BY IT RIGHT NOW. THE SITUATION THAT DISNEY HAS AS FAR AS ADMINISTRATION OF ITS IS DISTRICT OR WALT DISNEY WORLD IS LOCATED, THAT DOES NOT, THAT WAS SOMETHING CREATED TO PROVIDE DISNEY FLEXIBILITY. IT WAS NOT CREATED TO PROVIDE A FINANCIAL INCENTIVE. IF YOU LOOK AT IT FROM AN OBJECTIVE VIEWPOINT, DISNEY IS NOT GOING TO BE FINANCIALLY BENEFITING FROM THAT DISTRICT. CHANGING THAT, IT CAN BE DONE FOR POLITICAL REASONS OR OTHER REASONS. IT SHOULDN'T BE DONE FOR FINANCIAL REASONS. SCARLET: RIGHT, I THINK IS INTERESTING THAT THE EARNINGS CALL THAT BOB IGER IS SPEAKING ON BEGIN AT 4 P.M. AND WE ARE GETTING HEADLINES HE IS EVER THE SHOWMAN. ROMAINE: I LIKE THIS. THERE'S GOING TO BE IN AVATAR EXPERIENCE AT DISNEYLAND. SCARLET: IS THAT THE LATEST HEADLINE? ROMAINE: I DON'T KNOW IF IT'S GOING TO BE LIKE THE STAR WARS THING BUT THEY FINALLY GOT PEOPLE TO EMBRACE THAT TO A CERTAIN EXTENT. JOHN, I AM CURIOUS ABOUT COMPETITION OR REALLY THE RELATIVE LACK OF COMPETITION. WHEN I THINK OF THEMEPARK, YET, THERE IS UNIVERSAL. DISNEY STILL SEEMS TO BE THE DOMINANT PLAYER AT LEAST IN TERMS OF THIS BROAD THIS IS A MUST GO DESTINATION EXPERIENCE. PEOPLE TRAVEL FROM ALL OVER THE WORLD TO GO TO DISNEY WORLD. SCARLET: PEOPLE PULL THEIR CHILDREN OUT OF SCHOOL TO GO TO DISNEY. > > YOU ARE ABSOLUTELY RIGHT. DISNEY HAS COMPETITION BUT WITHIN THE INDUSTRY WE HAVE CONSIDERED DISNEY THE GOLD STANDARD. IT'S BEEN AROUND THE LONGEST AS FAR AS THE MODERN THEMEPARK THE WAY WE KNOW IT. IT SET THE STANDARD, PARTICULARLY FOR VISITOR SERVICES AND FOR QUALITY OF CUSTOMER SERVICE. I HAVE GIVEN WORKSHOPS TO FOREIGN OPERATORS OF ATTRACTIONS ON HOW DISNEY OPERATES ITS ATTRACTIONS. WHAT IS THE DISSING APPROACH TO GUEST SERVICE? AND WITH THAT GOLD STANDARD AND THAT LEVEL OF ACCOMPLISHMENT ARE A HEIGHTENED EXPECTATION. THAT'S COMING BACK TO WHAT I SAID EARLIER, WHAT I FEEL THAT DISNEY NEEDS TO RECONNECT TO THE VISITOR EXPERIENCE AND TO ACHIEVING THE LEVEL OF QUALITY SERVICE. ESPECIALLY NOW WITH THE PRICING. SCARLET: YES. THAT IS ONE OF ITS CHALLENGES. WHAT ABOUT THE EMPLOYEE RELATIONS? THAT WAS AN ISSUE WHEN BOB CHAPEK WAS THERE. HAS HE, HAS THE REST OF THE ISSUES BEEN PUT TO REST OR DOES HE NEED TO DO A LOT ARE WORKING? > > AGAIN, I THINK A LOT OF THIS COMES TO SHOWING THERE IS ATTENTION AND FOCUS. THOSE OF US THAT FOLLOW THE THEMEPARK SIDE OF DISNEY, WE UNDERSTAND A LOT OF ATTENTION COMPANY IS GIVEN TO STREAMING AND TO CHALLENGES THERE. I THINK THERE IS SOME CONCERN THAT THE THEMEPARK DIVISION AND THE OTHER PARTS OF THE DIVISION ARE BEING TAKEN FOR GRANTED. IT IS DOING ITS PART AND I THINK ALL IT REALLY NEEDS IS A FIRM RECOMMITMENT THAT DISNEY KNOWS IT WILL CONTINUE TO PROVIDE THE QUALITY OF SERVICE EXPECTED AND IT WILL GO FURTHER IN ENHANCING THAT EXPERIENCE. ROMAINE: WE HAVE TO LEAVE IT THERE, WE APPRECIATE YOU TAKING TIME. MANAGING DIRECTOR JOHN GERNER. A LOOK AT THE MOVE IN SHARES AND THE PARKS BUSINESS. HOW DOES NELSON PELTZ FEEL ABOUT THIS? ED, IS THIS GOING TO PLACATE HIM? > > HE WANTS TO BE CLEAR ABOUT THAT. THE ONLY EXPECTATION, PELTZ IS NOT HERE ABOUT THE EARNINGS ISSUE. POOR CORPORATE GOVERNANCE, UNINFORMED PEERS, HE SAYS PUTTING HIM ON THE BOARD IS THE ONLY WAY TO GET IT BACK UP TO WHERE IT SHOULD BE IN HIS ONWARDS TO RESTORE THE MAGIC. I DON'T THINK THIS WILL MAKE HIM GO AWAY OR PLACATE HIM. I THINK IT MIGHT MAKE HIM CONSIDER SOFTENING HIS TONE SOMEWHAT. HE SHOULD BE HAPPY SHARES ARE UP , NO, I THINK PEOPLE STILL BE HERE AND HE WILL BE BELLIGERENT. SCARLET: HE WILL STILL BE THERE AND BELLIGERENT WHAT CAN HE GET DONE WITHOUT GETTING A BOARD SEAT? DISNEY IS RESISTANT TO THAT IDEA. > > HE CAN GET A LOT DONE WITHOUT A BOARD SEAT. HE PUT A LOT OF PRESSURE ON DISNEY ALREADY PUBLICLY. IS HE PUT OUT A LOT OF MATERIAL IN RESPONSE TO HIS CLAIMS. MOREOVER, HE IS ABLE TO COME OUT AND SORT OF SPECIFICALLY CRITICIZE THE COMPANY IN CERTAIN WAYS. THE COMPANY IS LIKELY TO RESPOND TO IT BECAUSE IT DOESN'T WANT TO BE EMBARRASSED, IT DOESN'T WANT THE BAD PUBLICITY AROUND MANAGEMENT. I THINK THE SUCCESSION HAS SEEN AN ISSUE TO GET RID OF JPEG AND BRING BACK IGER. ROMAINE: PELTZ ISN'T THE ONLY ACTIVIST AND VECTOR -- INVESTOR. WHEN YOU LISTEN TO WHAT THESE PEOPLE ARE DOING AND WHAT THEY ARE ASKING FOR IT ISN'T REALLY JUST ABOUT NELSON HIMSELF. > > I THINK THERE WAS A SPECIFIC ASK AROUND SPINNING OFF ESPN. PELTZ HASN'T ASKED FOR ANY MATERIAL CHANGES. THERE IS AN ARGUMENT, IS THIS JUST ABOUT HIM BEING ON THE DISNEY BOARD? YES AND NO. HE SAID PUTTING HIM ON THE BOARD WOULD ALLOW THE COMPANY TO REALIZE HIS POTENTIAL. OR CLOSE THE GAP ON UNDERPERFORMANCE. YOU CAN SAY IT IS EGOTISTICAL BUT HE HAS SOME TRACK RECORD TO BACK IT UP. ROMAINE: ALL RIGHT, GOING TO HAVE TO LEAVE IT THERE. ED HAMMOND JOINING US. ACROSS THE BOARD ON DISNEY SHARES, HIGHER BY 8%. A LOT OF THE KEY METRICS, REALLY I THINK IT'S GOING TOWARDS RESTRUCTURING OF THE COMPANY. A REIMAGINING AGAIN. SCARLET: AND ON HIS OWN TERMS. ROMAINE: SCARLET AND I ARE DONE FOR THE DAY BUT A LOT MORE COVERAGE IS COMING UP ARE ON BLOOMBERG TELEVISION. BLOOMBERG TECHNOLOGY COMING UP IMMEDIATELY AFTER THE COMMERCIAL BREAK. STICK WITH US.

"Bloomberg Markets: The Close" (02/08/2023)

Romaine Bostick & Scarlet Fu bring you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street and tackles the State of the Union, sports investing and Disney's results Guests Today: Ross Mayfield of Baird Private Wealth Management, Dana Peterson of the Conference Board, Angelo Zino of CFRA, George Pyne of Bruin Capital, Erin Gibbs of Main Street Asset Management, Nancy Tengler of Laffer Tengler Investments, Jason Bazinet of Citi, John Gerner of Leisure Business Advisors (Source: Bloomberg)

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