Disney Jumps on Earnings; Border Deal Dies in Senate

Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Garen Moscow. Here are the 0:00:05.960 --> 0:00:07.440 stories we're following today. 0:00:08.240 --> 0:00:11.760 Shares of Disney are jumping this morning, up more than 0:00:11.880 --> 0:00:15.440 six percent. That follows the company's latest earnings report, and 0:00:15.560 --> 0:00:18.680 we get the latest with Bloomberg's John Tucker, John. 0:00:18.520 --> 0:00:22.200 And Nathan Disney reporting better than expended earnings and issuing 0:00:22.200 --> 0:00:25.400 an upbeat profit outlook thanks to cost cutting and the 0:00:25.400 --> 0:00:28.360 theme parks. Profit this year will Brian's at least twenty percent. 0:00:28.640 --> 0:00:31.480 Now the revenue did fall short of estimates, they said 0:00:31.480 --> 0:00:34.080 the streaming business should still turn a profit in the 0:00:34.080 --> 0:00:37.440 fourth quarter. What shareholders really like is a fifty percent 0:00:37.479 --> 0:00:41.120 boost to the dividend plus a stock buyback. And there's more. 0:00:41.320 --> 0:00:44.199 CEO Bob Biker announcing they're acquiring a one and a 0:00:44.240 --> 0:00:48.199 half billion dollar equity stake in Fortnite maker Epic Games. 0:00:48.640 --> 0:00:51.879 Our new relationship with Epic Games will create a transformational 0:00:52.000 --> 0:00:55.760 games and the entertainment universe that integrates Disney's world class 0:00:55.800 --> 0:00:59.360 storytelling into epics cultural phenomenon. 0:00:58.880 --> 0:01:01.920 Fortnite with the a Little Launch shop and play with 0:01:01.960 --> 0:01:06.080 Disney characters within the Fortnight game. The deal also involves 0:01:06.120 --> 0:01:09.120 new titles in a collaboration with the company's theme parks. 0:01:09.440 --> 0:01:11.200 John Tucker Bloomberg Radio. 0:01:11.400 --> 0:01:12.360 Very, John, thanks well. 0:01:12.480 --> 0:01:15.800 Shares in shipping Giant mayre scare the worst performer on 0:01:15.840 --> 0:01:18.800 the Eurostark six hundred. On a busy morning for earnings 0:01:18.800 --> 0:01:20.440 in Europe, and we go to London and get the 0:01:20.520 --> 0:01:25.040 latest from Bloomberg at daybreak, Europe anchor Caroline Hemgar, Caroline. 0:01:24.640 --> 0:01:28.880 Karen Nathan, Good morning. Mrsk's CEO, Vincent Clerk tells Bloomberg 0:01:28.880 --> 0:01:32.240 that the threat to red sea shipping hasn't peaked yet, 0:01:32.480 --> 0:01:35.560 but the Danish shipping Giant expects higher freight rates to 0:01:35.720 --> 0:01:39.240 disappear later this year and renewed gloom for the industry, 0:01:39.480 --> 0:01:42.920 hence the stock drop. A better story for payment processor 0:01:43.000 --> 0:01:46.280 Adjin shares surging thanks to higher revenue and, according to 0:01:46.319 --> 0:01:50.080 the co CEO, more US customers trusting it. Somewhere in 0:01:50.120 --> 0:01:54.600 the middle frostwa Henri Pinots Curring, owner of Gucci. Pino 0:01:54.720 --> 0:01:58.000 calls twenty twenty three a trying year, but investors conclude 0:01:58.120 --> 0:02:02.160 Gucci's results were better and fared in London. Caroline Hepgar 0:02:02.240 --> 0:02:03.320 Bloomberg Radio. 0:02:03.400 --> 0:02:05.760 Right, Caroline, thank you. We stay in London now for 0:02:05.840 --> 0:02:10.040 a Bloomberg News exclusive. Former Barclay's CEO Jess Staley has 0:02:10.080 --> 0:02:13.120 long maintained he cut off his friendship with Jeffrey Epstein 0:02:13.440 --> 0:02:16.360 once he became boss of the UK bank, but legal 0:02:16.400 --> 0:02:20.280 documents seen by Bloomberg claimed Staley had indirect contact with 0:02:20.320 --> 0:02:23.919 the late pedophile financier for years after that. We get 0:02:23.960 --> 0:02:26.080 the details from Bloomberg's Chris Pitt. 0:02:26.440 --> 0:02:29.679 According to documents that formed part of a now settled 0:02:29.840 --> 0:02:34.680 US virgin Isle's lawsuit against Jess Staley's former employer, JP Morgan, 0:02:35.320 --> 0:02:38.400 and intermediary was used by the two men to stay 0:02:38.440 --> 0:02:42.520 in touch. The filings contradict what Staley told the Barclays 0:02:42.560 --> 0:02:47.680 board about his relationship with Epstein. It also contradicts a 0:02:47.840 --> 0:02:52.519 UK regulatory probe that found no evidence of contact between 0:02:52.560 --> 0:02:57.960 the two men. After October of twenty fifteen, representatives for 0:02:58.080 --> 0:03:01.800 Jess Staley and JP Morgan didn't respond to requests for 0:03:01.919 --> 0:03:06.360 comment on the claims. Spokespeople for Barclays and the FCA 0:03:06.400 --> 0:03:11.120 also declined to comment. In London, Chris Pitt Bloomberg Radio. 0:03:11.200 --> 0:03:13.840 All right, Chris, thanks now, turning to politics back home, 0:03:14.000 --> 0:03:17.360 Senate Republicans delivered a death blow to efforts to secure 0:03:17.400 --> 0:03:20.760 the border, with Mexico blocking it by Purtison compromise. After 0:03:20.800 --> 0:03:24.320 Donald Trump announced the deal, Bloomberg's Amy Morris has more 0:03:24.360 --> 0:03:25.119 from Washington. 0:03:25.600 --> 0:03:29.040 The forty nine to fifty Senate vote virtually guarantees Congress 0:03:29.080 --> 0:03:32.800 will not pass any broad immigration nor border legislation before 0:03:32.840 --> 0:03:36.000 the November presidential election. It leaves no clear path for 0:03:36.080 --> 0:03:40.240 new US military assistance to Ukraine, Israel, and Taiwan. Republican 0:03:40.280 --> 0:03:43.040 Senator James Langford helped negotiate the deal and said his 0:03:43.120 --> 0:03:44.920 political career was threatened. 0:03:45.240 --> 0:03:47.960 That told me flat out, if you try to move 0:03:48.080 --> 0:03:52.120 a bill that solves the border crisis during this presidential year, 0:03:52.600 --> 0:03:55.800 I will do whatever I can to destroy you, because 0:03:55.800 --> 0:03:58.400 I do not want you to solve this during the 0:03:58.400 --> 0:03:59.200 presidential election. 0:03:59.360 --> 0:04:01.320 The Senate will try again today to move the bill 0:04:01.360 --> 0:04:05.520 forward without border provisions. In Washington, Amy Morris Bloomberg Radio. 0:04:05.440 --> 0:04:06.320 Look, Amy, thank you. 0:04:06.360 --> 0:04:08.040 Now, let's get to the latest from the Middle East. 0:04:08.080 --> 0:04:10.000 The US says it has taken out the leader of 0:04:10.000 --> 0:04:13.280 the Iron backed militia that killed three American soldiers last week. 0:04:13.320 --> 0:04:16.120 The Pentagon says the commander of the group, katab Has Belah, 0:04:16.520 --> 0:04:19.520 was killed in a drone strike in Baghdad. Meanwhile, Secretary 0:04:19.560 --> 0:04:21.479 of State Anthony Blinken is trying to brok or a 0:04:21.520 --> 0:04:24.560 cease fire deal between Israel and Hamas, but Israel's position 0:04:24.680 --> 0:04:27.679 is hardening. Bloomberg's Ed Baxter has the latest. 0:04:28.040 --> 0:04:31.680 This comes as Prime Minister Benjaminett Yahoo has summarily rejected 0:04:31.680 --> 0:04:35.680 the Hamas proposal. Blencoln says the Hamas response does have 0:04:35.720 --> 0:04:39.000 some non starters, but he will continue working on a plan, 0:04:39.080 --> 0:04:40.760 he says, and won't give up. 0:04:40.839 --> 0:04:43.120 Our focus today is on all of the diplomacy needed 0:04:43.120 --> 0:04:48.560 to bring it about, including again getting ideas, getting proposals 0:04:49.000 --> 0:04:54.000 from all concerned, and putting those together in a credible 0:04:55.080 --> 0:04:56.040 and clear plan. 0:04:56.440 --> 0:04:58.880 B Lincoln says getting the hostages out as a very 0:04:59.160 --> 0:05:02.719 very high priority. Ad Baxter Bloomberg. 0:05:02.320 --> 0:05:04.919 Radio, all right, Ed, thanks well. Turning to the economy, 0:05:04.960 --> 0:05:07.039 now more clues the Fed is in no rush to 0:05:07.040 --> 0:05:10.880 cut interest rates. Richmond Fed President Thomas Barkin says, it 0:05:10.960 --> 0:05:12.239 makes sense to be patient. 0:05:12.520 --> 0:05:16.000 I'm very supportive of being patient, you know, to get 0:05:16.040 --> 0:05:18.040 to where we need to get. I see at this 0:05:18.080 --> 0:05:20.599 point the trade off, which is you know, coming into 0:05:20.600 --> 0:05:24.360 better balance, is still being in favor of continuing to 0:05:24.400 --> 0:05:25.600 work on inflation. 0:05:25.600 --> 0:05:28.640 And Richmond FED President Thomas Barkin and central bankers have 0:05:28.720 --> 0:05:30.960 left interest rates unchanged since July. 0:05:31.400 --> 0:05:34.599 And in Asia, Karen, China's consumer prices fell last month 0:05:34.600 --> 0:05:37.520 at their fastest paced since the global financial crisis. The 0:05:37.560 --> 0:05:40.280 consumer price index for China dropped eight tenths of one 0:05:40.320 --> 0:05:43.040 percent in January from a year ago. That's the weakest 0:05:43.080 --> 0:05:45.960 since September of two thousand and nine and worse than 0:05:46.000 --> 0:05:51.160 economists expectations for a half percent decline. 0:05:52.440 --> 0:05:53.680 And it's time now for a look at some of 0:05:53.720 --> 0:05:55.839 the other stories making news around the world. For that, 0:05:55.880 --> 0:05:59.480 we're joined by Bloomberg's Amy Morris Amy, good morning, Good. 0:05:59.240 --> 0:05:59.839 Morning, Karen. 0:05:59.839 --> 0:06:02.640 The Supreme Court will be hearing a challenge this morning 0:06:02.720 --> 0:06:05.560 that could determine if Donald Trump will be removed from 0:06:05.600 --> 0:06:09.560 the presidential ballot in some states. Bloomberg's Nancy Lyons. 0:06:09.279 --> 0:06:14.320 Reports Colorado says the Fourteenth Amendment's insurrectionist clause renders former 0:06:14.360 --> 0:06:17.240 President Trump ineligible to run for president due to his 0:06:17.279 --> 0:06:20.520 connections to the January sixth assault in the Capitol. Courts 0:06:20.560 --> 0:06:22.760 in ten other states have ruled the clause does not 0:06:22.800 --> 0:06:25.839 apply to Trump. The Supreme Court will need to determine 0:06:25.880 --> 0:06:28.400 if the clause can be invoked in the absence of 0:06:28.440 --> 0:06:31.960 a court conviction or congressional action. It will also consider 0:06:32.040 --> 0:06:35.240 whether the clause applies to the presidency and whether January 0:06:35.279 --> 0:06:38.640 sixth was an insurrection in which Trump participated. Ahead of 0:06:38.640 --> 0:06:41.360 the arguments, the chair of the Senate Judiciary Committee, Senator 0:06:41.400 --> 0:06:44.839 Dick Durbin, has asked Justice Clarence Thomas to recuse himself. 0:06:45.040 --> 0:06:47.240 In Washington, Nancy lyons Bloomberg Gradient. 0:06:47.360 --> 0:06:50.520 The search continues for five missing Marines in San Diego 0:06:50.560 --> 0:06:54.480 County after a helicopter crash Tuesday night. Crews have found 0:06:54.480 --> 0:06:57.760 the helicopter wreckage, but no sign of the marines. CalFire 0:06:57.839 --> 0:07:00.000 Captain Mike Cornett a remote. 0:06:59.760 --> 0:07:02.880 Area the Cleveland National Forest. There's rugged terrain out here. 0:07:02.920 --> 0:07:06.000 There's lots of rocks, there's truck trails that go through 0:07:06.040 --> 0:07:09.040 the area, but the mud and the snow, it can 0:07:09.120 --> 0:07:10.480 become treacherous to travel. 0:07:10.560 --> 0:07:13.480 The Superstallion helicopter was part of the third Marine Aircraft 0:07:13.560 --> 0:07:15.720 Wing and was going from Creech Air Force Base near 0:07:15.800 --> 0:07:19.240 Vegas to Marine Corps Air Station Miramar in San Diego. 0:07:19.760 --> 0:07:22.880 The Biden Administration is working with the top US artificial 0:07:22.880 --> 0:07:27.320 intelligence companies to craft federal standards on artificial intelligence to 0:07:27.440 --> 0:07:31.760 ensure its use safely and responsibly. Commerce Secretary Gina Raimondo 0:07:31.840 --> 0:07:36.280 says Apple, Amazon, OpenAI, Microsoft Meta and others will be 0:07:36.320 --> 0:07:39.720 working with the National Institute of Standards and Technology, along 0:07:39.760 --> 0:07:42.800 with civil society groups, academics, and state and local government 0:07:42.800 --> 0:07:48.040 officials to establish AI safety standards. Scientists at Stanford University 0:07:48.080 --> 0:07:50.600 are working on a blood test to potentially save millions 0:07:50.640 --> 0:07:54.640 of lives by detecting cancer much earlier than before. They 0:07:54.680 --> 0:07:57.520 say the samples are far larger than what Theeronos was 0:07:57.560 --> 0:08:00.720 doing before the company tanked, and insist they are able 0:08:00.760 --> 0:08:03.840 to show results. The CDC is warning about the rise 0:08:03.920 --> 0:08:06.640 in measles infections in the US. There have been twenty 0:08:06.640 --> 0:08:09.560 three reported cases since December, mostly in children who have 0:08:09.640 --> 0:08:12.520 not been vaccinated. Global News twenty four hours a day 0:08:12.520 --> 0:08:14.160 and whenever you want it with Bloomberg News. 0:08:14.240 --> 0:08:14.480 Now. 0:08:14.760 --> 0:08:16.920 I'm Amy Morris than This is Bloomberg Karen. 0:08:16.960 --> 0:08:19.000 All right, Amy, thanks. We do bring you news throughout 0:08:19.040 --> 0:08:21.960 the day right here on Bloomberg Radio. But now, as 0:08:22.000 --> 0:08:24.400 Amy said, you can get the latest news on demand, 0:08:24.520 --> 0:08:27.920 and that means whenever you want it. Just subscribe to 0:08:27.960 --> 0:08:30.640 Bloomberg and News Now. You can get the latest headlines 0:08:30.680 --> 0:08:33.120 right at the click of a button. Get informed on 0:08:33.320 --> 0:08:36.720 your schedule. You can listen and subscribe to Bloomberg News 0:08:36.760 --> 0:08:41.280 Now on the Bloomberg Business app, Bloomberg dot Com plus apples, Spotify, 0:08:41.400 --> 0:08:48.319 and anywhere else you get your podcasts. Time now for 0:08:48.360 --> 0:08:52.200 the Bloomberg Sports Update. Here's John stash Hour John Karen. 0:08:52.200 --> 0:08:54.559 The hottest team with the NBA the Cleveland Cabelaers. They 0:08:54.600 --> 0:08:57.880 lost on New Year's Days. Since then, they're fifteen and one. 0:08:57.920 --> 0:09:00.240 They got forty points of Donovan Mitchell and one one 0:09:00.280 --> 0:09:03.200 fourteen to one oh six at Washington. The Cavs have 0:09:03.320 --> 0:09:05.480 moved into second place in the East. Then there are 0:09:05.520 --> 0:09:07.960 the Philadelphia seventy six Ers, who are going in the 0:09:08.000 --> 0:09:11.920 opposite direction, struggling without their star center Joe Elmbed, who 0:09:11.960 --> 0:09:13.960 could be out another month with the knee injury. Six 0:09:14.000 --> 0:09:16.120 Ers have lost seven to last eight. They lost at 0:09:16.160 --> 0:09:18.280 home to Golden State one twenty seven to one oh 0:09:18.320 --> 0:09:21.160 four Celtics thirty ninth winn of the season. They're twenty 0:09:21.160 --> 0:09:23.360 four and three at home thirty one points for Christaps 0:09:23.400 --> 0:09:27.320 Porzingis celtsbyt Atlanta one twenty five to one seventeen. They 0:09:27.360 --> 0:09:31.360 also acquired a player, getting big man Xavier Tillman from Memphis. 0:09:31.440 --> 0:09:34.920 The NBA trade deadline three Eastern today. Big names not 0:09:35.000 --> 0:09:39.040 expected to be moved, but there certainly will be some movement. 0:09:39.120 --> 0:09:42.800 College hoops Duke by eighteen over Notre Dame, Auburn by 0:09:42.840 --> 0:09:47.079 eighteen over Alabama. Tennessee bleue out LSU by twenty one upset. 0:09:47.400 --> 0:09:51.760 Wisconsin lost at Michigan seventy two to sixty eight. Nick Saban, 0:09:51.920 --> 0:09:55.840 retired as Alabama football coach, will work for ESPN. He'll 0:09:55.840 --> 0:09:58.120 be part of the College Game Day show. He'll also 0:09:58.160 --> 0:10:01.120 work on the NFL Draft. Else Cowboys looking for a 0:10:01.200 --> 0:10:05.560 defensive cordator. They've already interviewed Ron Rivera, just fired as 0:10:05.600 --> 0:10:08.000 the head coach in Washington. Also Mike Zimmer, the former 0:10:08.040 --> 0:10:10.440 head coach in Minnesota. The latest interview for the job 0:10:10.800 --> 0:10:13.880 Rex Ryan, who hasn't had an NFL coaching job since 0:10:13.880 --> 0:10:17.360 twenty sixteen, when he's the head coach in Buffalo. Before that, 0:10:17.440 --> 0:10:18.600 the head coach of the Jets. 0:10:18.760 --> 0:10:20.080 He's been working for ESPN. 0:10:20.480 --> 0:10:22.400 Johns Dashawer Bloomberg Sports. 0:10:24.400 --> 0:10:27.359 From coast to coast from New York to San Francisco, 0:10:27.720 --> 0:10:32.800 Boston to Washington, DC nationwide on SIRISXAM, the Bloomberg Business 0:10:32.800 --> 0:10:36.600 app in Bloomberg dot Com. This is Bloomberg Daybreak. 0:10:37.720 --> 0:10:38.199 Good morning. 0:10:38.240 --> 0:10:40.839 I'm Nathan Hager here now with a closer look at 0:10:40.880 --> 0:10:43.480 the biggest earning story of the morning. We continue to 0:10:43.480 --> 0:10:47.120 watch shares of the Walt Disney Company. The entertainment giant 0:10:47.160 --> 0:10:50.040 reported better than expected results and an upbeat out look 0:10:50.040 --> 0:10:53.439 for the full year. Cost cuts and booming business at 0:10:53.440 --> 0:10:56.040 Disney theme parks are getting a lot of the credit 0:10:56.080 --> 0:10:58.120 for this, but for more on These results were joined 0:10:58.120 --> 0:10:59.880 by Bloomberg's critty goop. 0:11:00.080 --> 0:11:02.520 Yeah, pretty would you call this a blowout quarter? 0:11:02.720 --> 0:11:03.960 Is it a turnaround quarter? 0:11:04.080 --> 0:11:05.160 What do you make of these numbers? 0:11:05.760 --> 0:11:08.520 It's definitely a turnour around quarter. It's a pivot, if 0:11:08.559 --> 0:11:10.320 you will. For the Disney story. Look, let me think 0:11:10.320 --> 0:11:12.480 about Disney. We think about it from a kind of 0:11:12.559 --> 0:11:15.880 tech perspective, a streaming perspective that doesn't start contrast to 0:11:15.960 --> 0:11:19.319 what Disney's core business actually has been historically, which is 0:11:19.320 --> 0:11:22.240 its international parks business. This is where their profit get 0:11:22.280 --> 0:11:27.040 this rows by four times, sales increasing thirty five percent 0:11:27.160 --> 0:11:28.680 year over years. So it looks like a lot of 0:11:28.679 --> 0:11:31.760 more visitors and attendance when it comes to some of 0:11:31.760 --> 0:11:35.000 their Disney parks, which again is not really the strategy 0:11:35.000 --> 0:11:37.040 that they've been leaning into. They've really been leaning into 0:11:37.040 --> 0:11:40.040 the media business, the Disney streaming business as well. When 0:11:40.040 --> 0:11:42.880 you look at the subscriber count, that streaming service fell 0:11:42.920 --> 0:11:45.360 to about one hundred and forty nine point six million 0:11:45.400 --> 0:11:48.080 subscribers in the quarter of the projections for about one 0:11:48.120 --> 0:11:50.000 hundred and fifty one point two million, So you can 0:11:50.040 --> 0:11:52.840 see that those numbers coming in just a little bit softer. 0:11:52.960 --> 0:11:55.920 But the forecast here is what really matters. That's what 0:11:56.000 --> 0:11:58.960 investors are responding to Disney saying their profit it's going 0:11:59.000 --> 0:12:02.720 to rise twenty percent, bringing up to about four dollars 0:12:02.760 --> 0:12:05.199 and sixty cents to share. The estimate was four dollars 0:12:05.200 --> 0:12:07.360 and twenty seven cents. If that wasn't enough to sweeten 0:12:07.400 --> 0:12:10.160 the pot, they're also raising their dividend by fifty percent 0:12:10.200 --> 0:12:13.520 and approving a three billion dollar stock buy back program. 0:12:13.760 --> 0:12:15.840 All of this on the back of some pretty other 0:12:15.880 --> 0:12:18.360 hefty deals that they've made. They've talked about this partnership 0:12:18.400 --> 0:12:21.319 that was announced a couple of days ago, bundling ESPN 0:12:21.400 --> 0:12:25.720 content with programming from Fox and Warner Brothers Discovery creating 0:12:25.760 --> 0:12:28.559 an all new sports streaming service. So again, this is 0:12:28.600 --> 0:12:30.920 something that Bob Eiger had warned about several quarters ago, 0:12:31.000 --> 0:12:33.320 really watching for what they could do with their Hulu 0:12:33.360 --> 0:12:35.760 business and their ESPN business, and it looks like we've 0:12:35.800 --> 0:12:36.640 gotten those answers. 0:12:36.880 --> 0:12:39.920 And with all those answers, Kritty, that raises the question 0:12:40.000 --> 0:12:42.120 of whether all this is going to be enough to 0:12:42.520 --> 0:12:44.800 fend off a lot of the pressure we've seen going 0:12:44.880 --> 0:12:47.640 into these earnings from activist investors. 0:12:48.720 --> 0:12:51.600 Yeah, and Nelson Pelts has not made Bob Aiger's life 0:12:51.679 --> 0:12:53.840 any easier at all when it comes to them the 0:12:53.960 --> 0:12:56.040 activist pressures. But again, this it all comes with the 0:12:56.160 --> 0:13:00.280 territory of kind of trying out these new businesses. Now, 0:13:00.320 --> 0:13:02.120 it looks like with some of the board seats here 0:13:02.480 --> 0:13:05.040 for now and for the temp for the foreseeable future, 0:13:05.120 --> 0:13:06.960 perhaps they can fend it off. But they really have 0:13:07.040 --> 0:13:09.400 to deliver on some of these new strategies. The fact 0:13:09.400 --> 0:13:11.840 that they are again doubling down on their streaming business, 0:13:11.880 --> 0:13:14.480 a sports streaming business, at a time when their Disney 0:13:14.480 --> 0:13:17.440 Plus streaming service is already coming in soft is a 0:13:17.440 --> 0:13:20.719 pretty big deal. But their forecasts are so rosy now 0:13:20.760 --> 0:13:22.520 they just have to execute on it. And remember this 0:13:22.600 --> 0:13:25.320 is also coming with a pretty big steak that Disney 0:13:25.360 --> 0:13:29.040 is taking now in gaming one point five billion dollars 0:13:29.080 --> 0:13:31.760 to use me in Fortnite maker Epic Games. This is 0:13:31.760 --> 0:13:33.840 a company that Disney had had to kind of go 0:13:33.840 --> 0:13:35.800 to court, Apple had had to go to court for 0:13:35.920 --> 0:13:37.600 as well. The fact that Disney is now taking a 0:13:37.679 --> 0:13:39.480 steak in it is a pretty big deal. 0:13:39.600 --> 0:13:42.920 Yeah, really interesting to hear that, coming, particularly after that 0:13:43.000 --> 0:13:46.240 announcement on the sports streaming service, This one and a 0:13:46.280 --> 0:13:48.960 half billion dollar steak in Epic Games. I'm sure that 0:13:49.000 --> 0:13:52.080 peaked a lot of your interests given your background in 0:13:52.600 --> 0:13:55.240 video game coverage in the past. What do you make 0:13:55.360 --> 0:13:59.079 of this strategy of, you know, trying to lean even 0:13:59.160 --> 0:14:02.640 more in tech when they've had so many struggles, at 0:14:02.679 --> 0:14:05.000 least in the last couple of quarters on their more 0:14:05.280 --> 0:14:06.559 traditional media business. 0:14:06.760 --> 0:14:08.360 Well, I mean it speaks to them branching out for 0:14:08.440 --> 0:14:11.480 our international audience that's listening to this. Nathan is referring 0:14:11.480 --> 0:14:14.160 to the fact that I used to cover video games 0:14:14.320 --> 0:14:16.199 as my very first speed at Bloomberg. The stocks of 0:14:16.240 --> 0:14:18.280 it at least and what I learned from that is 0:14:18.280 --> 0:14:21.520 that this is a growing business that has recently taken 0:14:21.520 --> 0:14:23.360 on a lot of regulatory pressure, but it's one that 0:14:23.440 --> 0:14:26.160 is a crowded space when you talk about some big games. 0:14:26.240 --> 0:14:28.760 So when you see a game like Fortnite, for example, 0:14:28.800 --> 0:14:32.280 really excelling, it makes it a very attractive acquisition target. 0:14:32.280 --> 0:14:34.640 And that's exactly where Disney comes in here with that 0:14:34.680 --> 0:14:37.600 one point five billion dollar steak. Because Fortnite has turned 0:14:37.600 --> 0:14:40.520 out to be such a money maker for epic games, 0:14:40.560 --> 0:14:42.760 Disney wants in on it. In terms of its broader strategy, 0:14:42.800 --> 0:14:46.080 it's quite clear that Disney is doing what Disney hasn't 0:14:46.120 --> 0:14:50.120 done historically, which is really diversify. They're talking about sports streaming, 0:14:50.160 --> 0:14:52.920 they're talking about their Disney Services streaming, They're actually making 0:14:52.960 --> 0:14:55.240 more money on their parks business, and now they're looking 0:14:55.280 --> 0:14:57.760 at gaming as well. Not to mention Nathan, I can't 0:14:57.760 --> 0:15:00.760 believe gone this far and not discussed Taylor's With's movie, 0:15:00.800 --> 0:15:04.520 concert movie or whatever is hitting Disney Services. Mowana sequel 0:15:04.600 --> 0:15:07.160 is coming out this year. The Taylor Swift story in 0:15:07.240 --> 0:15:10.440 itself adds a lot of value to Disney. 0:15:10.440 --> 0:15:14.080 Interesting. So what do you make of the track that 0:15:14.200 --> 0:15:17.960 bob Iger is painting here the path ahead for the 0:15:18.000 --> 0:15:19.200 rest of this year and beyond. 0:15:19.560 --> 0:15:22.720 Well, look, he has just recently been reinstated. The history, 0:15:22.880 --> 0:15:26.360 the management history matters here because Bob Iger had an 0:15:26.360 --> 0:15:29.520 initial stint at the company and then was had I 0:15:29.600 --> 0:15:32.760 left the company, and then is now coming back. Because 0:15:33.200 --> 0:15:34.880 you start to see this pressure that he needs to 0:15:35.200 --> 0:15:37.800 put Disney's balance sheet back on track. It kind of 0:15:37.840 --> 0:15:41.239 seems like he's doing this, But Bob Iger's reputation historically 0:15:41.600 --> 0:15:44.880 has been one of big moves, one where he takes 0:15:44.880 --> 0:15:47.480 these kind of shots in the dark and says, guys 0:15:47.680 --> 0:15:49.520 have a little bit of faith in me, and this 0:15:49.600 --> 0:15:51.920 is what he does. So it's not surprising at all 0:15:51.960 --> 0:15:54.360 that he's making these pretty big bets in both sports 0:15:54.360 --> 0:15:55.760 streaming and gaming. 0:15:57.760 --> 0:16:00.800 This is Bloomberg day Break Today morning brief on the 0:16:00.840 --> 0:16:04.280 stories making news from Wall Street to Washington and beyond. 0:16:04.560 --> 0:16:07.320 Look for us on your podcast feed at six am 0:16:07.400 --> 0:16:11.040 Eastern each morning on Apple, Spotify, and anywhere else you 0:16:11.120 --> 0:16:12.240 get your podcasts. 0:16:12.400 --> 0:16:15.120 You can also listen live each morning starting at five 0:16:15.160 --> 0:16:17.720 am Wall Street time on Bloomberg eleven three to zero 0:16:17.800 --> 0:16:20.680 in New York, Bloomberg ninety nine to one in Washington, 0:16:20.760 --> 0:16:23.640 Bloomberg one oh six to one in Boston, and Bloomberg 0:16:23.680 --> 0:16:25.359 ninety sixty in San Francisco. 0:16:25.760 --> 0:16:28.920 Our flagship New York station is also available on your 0:16:28.960 --> 0:16:34.400 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus. 0:16:34.440 --> 0:16:37.880 Listen coast to coast on the Bloomberg Business app, SERIUSXM, 0:16:37.960 --> 0:16:42.240 the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager. 0:16:42.000 --> 0:16:43.160 And I'm Karen Moscow. 0:16:43.360 --> 0:16:46.120 Join us again tomorrow morning for all the news you 0:16:46.240 --> 0:17:04.960 need to start your day right here on Bloomberg Daybreak 0:17:02.600 --> 0:17:03.200 and then