Transcripts For CNBC Fast Money 20171206 : vimarsana.com

Whole group. Well tell what you. First, the global selloff. Markets everywhere from europe to asia to south america all getting hit over the past month except for here in the u. S. , which despite the recent volatility is still up 1 in that time. We know its a small world after all. Is the u. S. The next market thats about to crack . Guy . The vix closed lower today, we mentioned that last night the warning signs are not there in the vix pete can speak to that the selloff in the hang seng index to me has been very interesting and something you have to continue to watch. I mentioned it because look at where we topped at the hang seng at the beginning of 2008, 30,000 look where weve traded up to and failed over the last couple of weeks the selloff has been pretty quick. Tenyear yields in china have gone up to 4 . Its clear the Chinese Government is tamping on the brakes you have to wonder is that causing some sort of cascade effect right now its manifesting itself in the hsi. You have to wonder if it makes its way to our shores. Are you worried you have to a little bit. Tencent in china is down 12 from recent highs. That said, it was up massively in the last couple of times. Samsung in seoul, you know, this thing is down about 15 over the last few weeks, also from an alltime high. I think thats pretty interesting. You almost want to take it back to europe a little bit were going to be focused a little bit on yields in the u. S. West a fed meeting next week you look at the german tenure, this is the largest economy in europe, theyve under their gdp forecast breaking news on taxes lets get straight to ylan mui in d. C reporter melissa, republicans are signaling openness to a 22 Corporate Tax rate i talked to two key republicans who said this is on the table. They described it as a dial that they can turn to pay for other priorities such as an expanded deduction for state and local taxes, for example this is something that President Trump had floated over the weekend. Republicans had initially expressed hesitation in going to 22 . But now it appears that they are more open to that number members of the House Conference Committee on tax reform will be meeting tonight at 7 00 p. M. This is expected to come up during that meeting. So well get more information after that back over to you staying in local Tax Deductions could survive if the rate goes to 22 does the amt on the corporate side and the modified individual in the senate plan, does it make it more likely that goes away . Reporter they would no longer need the money they would raise from the aft b amt. But all indications are that amt will not make it to the final versions of the legislation. Thank you, ylan mui in d. C. This could make it more easy for the conferees to come to an agreement on a plan. And for the high earning income tax states like california and new york, that could also be a good thing a little bit of a good thing. I think to the extent that 22 makes a deal more likely, thats good to the extent they had to go to 22 right now, already, its a little more contentious. I dont know i kind of think that the taxes are priced in more than the probability. I feel like theyre priced in a lot, and theres a little more room for trouble, meaning priced too close to being a done deal in terms of the coupleday pullback weve seen in the markets in terms of this sort of turn in the International Markets weve seen as well, is it a sell on the news sort of thing . This just shows us once again whether we like it, dont like it, whether youre political side is, negotiation is going to be the whole thing trump talked, well, 20, but maybe we could move to 22. It looks like its going to 22 it seems to me theres still plenty of room for negotiations to get this deal done. Do they . Im not 100 confident that they do but itfeels to me like everything is up for negotiation, this fifo thing eventually probably gets out the right hand will work with the left to get everything to work the way they want to. Theres no left and right here its just right. Theres no left, theyre not involved, pete its really their own party. The guys in their own party, the 41 against right now, youre going to get these guys to be on the same page. Can i tell you the real problem with this whole scenario is what you started out the conversation with, this budget talk on friday if they shut down the government, make no mistake, its the republicans, again, who will be shutting down the government, inability to negotiate with the other side to get the votes to extend the budget if they shut down the government, all this tax stuff gets pushed down, and the longer people get to see whats in it, the worse for them they wanted to jam this thing down thats why friday is an important day. This friday yes i dont actually think this friday this friday is like the phony end. I dont think we see a deal on friday, and thats okay for another several days at least. What weve been saying, the cracks in the Global Markets that we have been seeing, you highlighted hsi, we also saw, you know, msci, asia, japan at a twomonth low, copper not doing well what does this all mean in the prism of, hey, look, the tax deal might go through . I could makie an argument tht its bullish maybe theyre leading us i think the german dax led us for three to six months at the beginning of this year we followed. If europe and china have been leading, it stands to reason they could lead us down. But the vix closed down today, despite the fact that the market is lower the vix is telling a different story. I cant get that overly concerned. I know tony dwyer has been on here at least a half dozen times saying i shouldnt be worried about it but the speed at which the yield curve continues to flatten is somewhat alarming. 52, 53 basis points at levels we havent seen in a decade and a half im not an economist, im not funny enough and not humorless enough and smart to be an economist. That being said, it means something. That goes back to what youre saying about the bunds, essentially a weight on the tenyear yield i dont think that Global Equity markets down a couple of percent from alltime high suspect a troubling thing. What i would find troubling is if you had leadership like samsung, like tencent, alibaba, move its way to our shores, facebook down 8 from its highs, if that starts to steam roll, we dont know what thats like. Thats the beauty of what the United States offers thats why when people say whats the best place to be, i always say the United States when you really think about this, why are we a healthier market than everybody you just mentioned . Tencent, samsung, you go through the list, you talk about technology, in some cases youre talking about other areas in the marketplace that are not something that we really have been rotating. Weve rotated from financials to technology to industrials back to the financials back to technology back to financials. The healthy rotation we see in the u. S. , we dont have the same flexibility in the markets everywhere else in the world theyre usually dependent on the Technology World in some form, maybe its financial, but its always the support of one. And they dont have what we have right now. Mike wilson is chief u. S. Equity strategist at Morgan Stanley, mike, good to have you with us. Good to be here you have a bullish case for the s p 500 in terms of your target what does the 22 tax rate versus a 20 tax rate do to that target of 3,000 . The 22 number is not coincidental theres discussion of delaying the tax rate until 2019. The reason they put it to 2019 is to pay for the 1. 5 trillion deficit. The 2 is to make sure it gets done in 18. That signal is very positive, quite frankly. It means it probably will get done in 18. As far as our numbers, at 20 , there was a 7 benefit to s p. At 22, its a 6 benefit to s p earnings its bigger for small caps, more like 10 or 11. Youre thinking the lower Corporate Tax rate wouldnt go into effect until 19 im saying that was a risk. That risk is now off the table if theyre willing to go to 22, that means it could go forward in 18, thats a big deal weve had 2700 target for this year, weve almost reached that, it doesnt seem that exciting. First of all, we think earnings are going to top in terms of rate of change sometime next year in order to get to 3,000, you need to remain financial conditions need to remain stable we cant have rates spiking or credit spreads widening out. We have to finally see the individual investor come in. We havent seen the individual investor come in yet if you get that euphoria, i could see a 3,000 target as opposed to 2750. Lets say we do get the fed coming in maybe a little bit more aggressive, if inflation ticks up how sensitive is your model to a move higher . If the fed raises rates faster, the back rate goes down, not up it tightens financial conditions there you get credit spreads widening our model is sensitive to financial conditions tightening. Thats our call for 2018 we think 2750 is the right number because we think financial conditions are going to tighten and at some point later next year well see a contraction in multiples, which is a reversal of what weve been seeing i hate to tell you, 2750 off your base case seems bearish to me you think the risks are actually theyre not particularly priced in at this point, especially with guys 11 vix, that sort of thing. You say about retail, we havent seen them yet. Where do you think most of the investable assets are, do you think theyre in red states or blue states . I mean that seriously. Because the s. A. L. T. Thing is a huge people. If people in the blue states arent going to get that tax income, where is it going to come from . Theres a lot of retirement money in the south i dont think thats as big a deal the Retail Investor has been putting money into bond funds for eight years, this year alone, 41 billion in outflows from equities. Youre seeing little change there, a little change you can gin up a little bit of animal spirits and drive multiples higher from here you like financials, industrials, energy, and Technology Yes this is important, to petes point, cyclicals are still working. Until cyclicals stop working, im not worried about a market top. The rotations matter if we rotate out of tech, the whole index doesnt have to go down mike wilson, Morgan Stanley what did you do today, guy we did that power pitch a couple of weeks ago. Fast pitch, yes and in addition to the power pitch, we talked about dollar tree dollar gen reports on the 7th, that stock is in a whisper of an alltime high. There is a trade on the retail side thats still working. Im concerned about the concentration among the biggest stocks in the world in this market, five in the nasdaq that makes up 45 of the weight i put on the first trade in a long time, a bearish qqq trade over the next couple of weeks. I think this thing will start to steam roll, especially when you look out, the fed meeting next week, maybe a tax showdown, it would be sloppy over the past couple of weeks. You were hedged in the past, are you hedged now yes yesterday i sold some jpmorgan calls. It was nirvana im still very long banks. I would think about taking a little bit more money off the table there. And i should have put on more protection with the vix even lower than here, i didnt do that ill look at that again. Bought a little at t, some walgreens today, lululemon as well, just for earnings, not because i have a long term conviction, but just because i think the mens wear would be Something Big along with commerce youve been wearing a lot of it you fit into that stuff . Its very comfortable thats the part of the story. Thats part of the story. To karens point, weve seen a huge spike to the upside, a little pullback. Wells fargo and these names look strong i wear the boxer briefs, lululemons theyre fantastic. You would or you do absolutely. Theyre great. Youre making a face. Im wearing the mens wear. Pete had talked about exactly that, before thank you, mel. He goes commando. Moving on thats way over the line the fox hunt is on with disney and comcast, our Parent Company, in hot pursuit david faber will be here to discuss. Plus we touched on it earlier. President trump threatening a Government Shutdown this week and pointing his finger at the democrats. How likely is it and what should you buy if it happens . Were all over the after hours action lieu lieu let nfen clsn and broadcomm have coerceal well bring you the latest i put everything into my business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom doughnut cutters. Wow all with points. Thats how i created the ripple. The doughnut, in a doughnut, in a doughnut. Suddenly, its everywhere. I mean, it really took off. What will you create with your points . Chase for business. Make more of whats yours. Witness katy perry. Witness katy perry become a legal witness. Witness katy perry and left shark. Or a card shark. Grandma . Witness katy perry work. Witness katy perry firework. Witness katy perry swish. Witness katy perry. Aaaaaaw look at that dog katy perry with music videos and behind the scenes footage, xfinity lets you witness all things me. Welcome back to fast money. The fox hunt heating up as comcast and disney pursue its assets david faber is here with the latest reporter never a dull moment the latest news is the potential or likely extension of bob iger, chairman of disneys contract, if disney is successful in buying those fox assets. That does appear to be the most likely outcome as of now, as i reported yesterday, disney actually succeeding in buying those fox assets for a deal that would top some 60 plus billion worth of disney stock and the assumption of some fox debt associated with various assets taken on and you can imagine, given that, why fox shareholders, who would conceivably own as much as 30 of a combined company here, would be concerned, whether there would be continuity of management at disney as it currently stands, if the deal was announced next week, it would take a year or so to close it given the regulatory review, then mr. Iger would have only six months to oversee the integration of what by far is the largest deal that disney has ever done. Yes, he has done significant deals to acquire pixar and marvel and lucas, but all of those were relatively contained, nothing like this deal which would span the globe, involving of course foxs assets in india, in latin america, in europe, as well as those assets right here in the United States, including the studio and the nat geo and fx networks and the Regional Sports networks. Our Parent Company, comcast, continues to pursue those assets as well. That same group of assets. And frankly, the offers from both sides according to people familiar with the situation are very similar there does however seem to be a desire on the part of fox to prefer disneys ownership of them, perhaps because they prefer the currency that goes with them, perhaps now because theyll have more comfort about management staying in that job if in fact the deal does go through, and again, because of continued concern about an antitrust and regulatory review that some believe comcast would have a tough time passing. So well see where it all ends up, melissa. Of course we reported much of what i just said yesterday in terms of this deal get close for Disney Comcast continues to be in the hunt but less likely. And mr. Iger perhaps not going to run for president , something that he has been giving serious thought to, people who are familiar with his efforts tell me, but he would have to step aside if he were to stay on as chairman of disney at least not in the next round of elections reporter at least not for 2020, thats right in terms of comcast, our Parent Company very interested in broadening its International Distribution its the sky assets, its the star assets in india, its latin america, that they want. If im a shareholder, and we are shareholders of comcast, lets be clear about this, should we be concerned about our Parent Company perhaps overpaying, getting into a situation where it wants these assets so badly that it could come at a price . Reporter you know, i think that will be an issue on either side, should this deal get done, if it were a comcast deal or a disney deal, when youre talking about the sums we are and the exchange in the number of shares we are, i think its fair to say some people will question the valuation. As i pointed out many times, this will be a taxable transaction. They need a very high price, the murdochs, in order to say were willing to take an 8 or 10 billion tax hit for the overall company. But yeah, its a fair point. That said, the synergies on either side are fairly significant. You combine two studios, youre going to save a lot of money Regional Sports networks, there could be savings there the International Exposure is perhaps the most important of it it does represent as much as 70 of the overall ebitda of this company, or i should say not of the company, of the assets being purchased, potentially purchased. And it would, as you say, take what is almost an entirely Domestic Company into a different realm, in india, in europe and as you pointed out, in latin america, very importantly. Is there somewhat of a waiting game going on, david, at all, in terms of waiting to see what happens with at t time warner in order to decide who actually whichbid to actually consider . I understand that disney, as you report, is the frontrunner, but if at t time warner goes through, could comcast catch up there . Reporter theyre not going to wait that long. My understanding is that fox would like to make a decision on this sooner rather than later. And again, as i reported yesterday, perhaps as soon as later next week. So you may see some board meetings in the not too distant future that would not give comcast enough time to prove that case, so to speak, if time warner and at t were to succeed in going ahead with its deal and defeating the government you could make some arguments on antitrust on the disney side disney and fox together in future years could represent 50 of the Chinese Government<\/a> is tamping on the brakes you have to wonder is that causing some sort of cascade effect right now its manifesting itself in the hsi. You have to wonder if it makes its way to our shores. Are you worried you have to a little bit. Tencent in china is down 12 from recent highs. That said, it was up massively in the last couple of times. Samsung in seoul, you know, this thing is down about 15 over the last few weeks, also from an alltime high. I think thats pretty interesting. You almost want to take it back to europe a little bit were going to be focused a little bit on yields in the u. S. West a fed meeting next week you look at the german tenure, this is the largest economy in europe, theyve under their gdp forecast breaking news on taxes lets get straight to ylan mui in d. C reporter melissa, republicans are signaling openness to a 22 Corporate Tax<\/a> rate i talked to two key republicans who said this is on the table. They described it as a dial that they can turn to pay for other priorities such as an expanded deduction for state and local taxes, for example this is something that President Trump<\/a> had floated over the weekend. Republicans had initially expressed hesitation in going to 22 . But now it appears that they are more open to that number members of the House Conference Committee<\/a> on tax reform will be meeting tonight at 7 00 p. M. This is expected to come up during that meeting. So well get more information after that back over to you staying in local Tax Deductions<\/a> could survive if the rate goes to 22 does the amt on the corporate side and the modified individual in the senate plan, does it make it more likely that goes away . Reporter they would no longer need the money they would raise from the aft b amt. But all indications are that amt will not make it to the final versions of the legislation. Thank you, ylan mui in d. C. This could make it more easy for the conferees to come to an agreement on a plan. And for the high earning income tax states like california and new york, that could also be a good thing a little bit of a good thing. I think to the extent that 22 makes a deal more likely, thats good to the extent they had to go to 22 right now, already, its a little more contentious. I dont know i kind of think that the taxes are priced in more than the probability. I feel like theyre priced in a lot, and theres a little more room for trouble, meaning priced too close to being a done deal in terms of the coupleday pullback weve seen in the markets in terms of this sort of turn in the International Markets<\/a> weve seen as well, is it a sell on the news sort of thing . This just shows us once again whether we like it, dont like it, whether youre political side is, negotiation is going to be the whole thing trump talked, well, 20, but maybe we could move to 22. It looks like its going to 22 it seems to me theres still plenty of room for negotiations to get this deal done. Do they . Im not 100 confident that they do but itfeels to me like everything is up for negotiation, this fifo thing eventually probably gets out the right hand will work with the left to get everything to work the way they want to. Theres no left and right here its just right. Theres no left, theyre not involved, pete its really their own party. The guys in their own party, the 41 against right now, youre going to get these guys to be on the same page. Can i tell you the real problem with this whole scenario is what you started out the conversation with, this budget talk on friday if they shut down the government, make no mistake, its the republicans, again, who will be shutting down the government, inability to negotiate with the other side to get the votes to extend the budget if they shut down the government, all this tax stuff gets pushed down, and the longer people get to see whats in it, the worse for them they wanted to jam this thing down thats why friday is an important day. This friday yes i dont actually think this friday this friday is like the phony end. I dont think we see a deal on friday, and thats okay for another several days at least. What weve been saying, the cracks in the Global Markets<\/a> that we have been seeing, you highlighted hsi, we also saw, you know, msci, asia, japan at a twomonth low, copper not doing well what does this all mean in the prism of, hey, look, the tax deal might go through . I could makie an argument tht its bullish maybe theyre leading us i think the german dax led us for three to six months at the beginning of this year we followed. If europe and china have been leading, it stands to reason they could lead us down. But the vix closed down today, despite the fact that the market is lower the vix is telling a different story. I cant get that overly concerned. I know tony dwyer has been on here at least a half dozen times saying i shouldnt be worried about it but the speed at which the yield curve continues to flatten is somewhat alarming. 52, 53 basis points at levels we havent seen in a decade and a half im not an economist, im not funny enough and not humorless enough and smart to be an economist. That being said, it means something. That goes back to what youre saying about the bunds, essentially a weight on the tenyear yield i dont think that Global Equity<\/a> markets down a couple of percent from alltime high suspect a troubling thing. What i would find troubling is if you had leadership like samsung, like tencent, alibaba, move its way to our shores, facebook down 8 from its highs, if that starts to steam roll, we dont know what thats like. Thats the beauty of what the United States<\/a> offers thats why when people say whats the best place to be, i always say the United States<\/a> when you really think about this, why are we a healthier market than everybody you just mentioned . Tencent, samsung, you go through the list, you talk about technology, in some cases youre talking about other areas in the marketplace that are not something that we really have been rotating. Weve rotated from financials to technology to industrials back to the financials back to technology back to financials. The healthy rotation we see in the u. S. , we dont have the same flexibility in the markets everywhere else in the world theyre usually dependent on the Technology World<\/a> in some form, maybe its financial, but its always the support of one. And they dont have what we have right now. Mike wilson is chief u. S. Equity strategist at Morgan Stanley<\/a>, mike, good to have you with us. Good to be here you have a bullish case for the s p 500 in terms of your target what does the 22 tax rate versus a 20 tax rate do to that target of 3,000 . The 22 number is not coincidental theres discussion of delaying the tax rate until 2019. The reason they put it to 2019 is to pay for the 1. 5 trillion deficit. The 2 is to make sure it gets done in 18. That signal is very positive, quite frankly. It means it probably will get done in 18. As far as our numbers, at 20 , there was a 7 benefit to s p. At 22, its a 6 benefit to s p earnings its bigger for small caps, more like 10 or 11. Youre thinking the lower Corporate Tax<\/a> rate wouldnt go into effect until 19 im saying that was a risk. That risk is now off the table if theyre willing to go to 22, that means it could go forward in 18, thats a big deal weve had 2700 target for this year, weve almost reached that, it doesnt seem that exciting. First of all, we think earnings are going to top in terms of rate of change sometime next year in order to get to 3,000, you need to remain financial conditions need to remain stable we cant have rates spiking or credit spreads widening out. We have to finally see the individual investor come in. We havent seen the individual investor come in yet if you get that euphoria, i could see a 3,000 target as opposed to 2750. Lets say we do get the fed coming in maybe a little bit more aggressive, if inflation ticks up how sensitive is your model to a move higher . If the fed raises rates faster, the back rate goes down, not up it tightens financial conditions there you get credit spreads widening our model is sensitive to financial conditions tightening. Thats our call for 2018 we think 2750 is the right number because we think financial conditions are going to tighten and at some point later next year well see a contraction in multiples, which is a reversal of what weve been seeing i hate to tell you, 2750 off your base case seems bearish to me you think the risks are actually theyre not particularly priced in at this point, especially with guys 11 vix, that sort of thing. You say about retail, we havent seen them yet. Where do you think most of the investable assets are, do you think theyre in red states or blue states . I mean that seriously. Because the s. A. L. T. Thing is a huge people. If people in the blue states arent going to get that tax income, where is it going to come from . Theres a lot of retirement money in the south i dont think thats as big a deal the Retail Investor<\/a> has been putting money into bond funds for eight years, this year alone, 41 billion in outflows from equities. Youre seeing little change there, a little change you can gin up a little bit of animal spirits and drive multiples higher from here you like financials, industrials, energy, and Technology Yes<\/a> this is important, to petes point, cyclicals are still working. Until cyclicals stop working, im not worried about a market top. The rotations matter if we rotate out of tech, the whole index doesnt have to go down mike wilson, Morgan Stanley<\/a> what did you do today, guy we did that power pitch a couple of weeks ago. Fast pitch, yes and in addition to the power pitch, we talked about dollar tree dollar gen reports on the 7th, that stock is in a whisper of an alltime high. There is a trade on the retail side thats still working. Im concerned about the concentration among the biggest stocks in the world in this market, five in the nasdaq that makes up 45 of the weight i put on the first trade in a long time, a bearish qqq trade over the next couple of weeks. I think this thing will start to steam roll, especially when you look out, the fed meeting next week, maybe a tax showdown, it would be sloppy over the past couple of weeks. You were hedged in the past, are you hedged now yes yesterday i sold some jpmorgan calls. It was nirvana im still very long banks. I would think about taking a little bit more money off the table there. And i should have put on more protection with the vix even lower than here, i didnt do that ill look at that again. Bought a little at t, some walgreens today, lululemon as well, just for earnings, not because i have a long term conviction, but just because i think the mens wear would be Something Big<\/a> along with commerce youve been wearing a lot of it you fit into that stuff . Its very comfortable thats the part of the story. Thats part of the story. To karens point, weve seen a huge spike to the upside, a little pullback. Wells fargo and these names look strong i wear the boxer briefs, lululemons theyre fantastic. You would or you do absolutely. Theyre great. Youre making a face. Im wearing the mens wear. Pete had talked about exactly that, before thank you, mel. He goes commando. Moving on thats way over the line the fox hunt is on with disney and comcast, our Parent Company<\/a>, in hot pursuit david faber will be here to discuss. Plus we touched on it earlier. President trump threatening a Government Shutdown<\/a> this week and pointing his finger at the democrats. How likely is it and what should you buy if it happens . Were all over the after hours action lieu lieu let nfen clsn and broadcomm have coerceal well bring you the latest i put everything into my business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom doughnut cutters. Wow all with points. Thats how i created the ripple. The doughnut, in a doughnut, in a doughnut. Suddenly, its everywhere. I mean, it really took off. What will you create with your points . Chase for business. Make more of whats yours. Witness katy perry. Witness katy perry become a legal witness. Witness katy perry and left shark. Or a card shark. Grandma . Witness katy perry work. Witness katy perry firework. Witness katy perry swish. Witness katy perry. Aaaaaaw look at that dog katy perry with music videos and behind the scenes footage, xfinity lets you witness all things me. Welcome back to fast money. The fox hunt heating up as comcast and disney pursue its assets david faber is here with the latest reporter never a dull moment the latest news is the potential or likely extension of bob iger, chairman of disneys contract, if disney is successful in buying those fox assets. That does appear to be the most likely outcome as of now, as i reported yesterday, disney actually succeeding in buying those fox assets for a deal that would top some 60 plus billion worth of disney stock and the assumption of some fox debt associated with various assets taken on and you can imagine, given that, why fox shareholders, who would conceivably own as much as 30 of a combined company here, would be concerned, whether there would be continuity of management at disney as it currently stands, if the deal was announced next week, it would take a year or so to close it given the regulatory review, then mr. Iger would have only six months to oversee the integration of what by far is the largest deal that disney has ever done. Yes, he has done significant deals to acquire pixar and marvel and lucas, but all of those were relatively contained, nothing like this deal which would span the globe, involving of course foxs assets in india, in latin america, in europe, as well as those assets right here in the United States<\/a>, including the studio and the nat geo and fx networks and the Regional Sports<\/a> networks. Our Parent Company<\/a>, comcast, continues to pursue those assets as well. That same group of assets. And frankly, the offers from both sides according to people familiar with the situation are very similar there does however seem to be a desire on the part of fox to prefer disneys ownership of them, perhaps because they prefer the currency that goes with them, perhaps now because theyll have more comfort about management staying in that job if in fact the deal does go through, and again, because of continued concern about an antitrust and regulatory review that some believe comcast would have a tough time passing. So well see where it all ends up, melissa. Of course we reported much of what i just said yesterday in terms of this deal get close for Disney Comcast<\/a> continues to be in the hunt but less likely. And mr. Iger perhaps not going to run for president , something that he has been giving serious thought to, people who are familiar with his efforts tell me, but he would have to step aside if he were to stay on as chairman of disney at least not in the next round of elections reporter at least not for 2020, thats right in terms of comcast, our Parent Company<\/a> very interested in broadening its International Distribution<\/a> its the sky assets, its the star assets in india, its latin america, that they want. If im a shareholder, and we are shareholders of comcast, lets be clear about this, should we be concerned about our Parent Company<\/a> perhaps overpaying, getting into a situation where it wants these assets so badly that it could come at a price . Reporter you know, i think that will be an issue on either side, should this deal get done, if it were a comcast deal or a disney deal, when youre talking about the sums we are and the exchange in the number of shares we are, i think its fair to say some people will question the valuation. As i pointed out many times, this will be a taxable transaction. They need a very high price, the murdochs, in order to say were willing to take an 8 or 10 billion tax hit for the overall company. But yeah, its a fair point. That said, the synergies on either side are fairly significant. You combine two studios, youre going to save a lot of money Regional Sports<\/a> networks, there could be savings there the International Exposure<\/a> is perhaps the most important of it it does represent as much as 70 of the overall ebitda of this company, or i should say not of the company, of the assets being purchased, potentially purchased. And it would, as you say, take what is almost an entirely Domestic Company<\/a> into a different realm, in india, in europe and as you pointed out, in latin america, very importantly. Is there somewhat of a waiting game going on, david, at all, in terms of waiting to see what happens with at t time warner in order to decide who actually whichbid to actually consider . I understand that disney, as you report, is the frontrunner, but if at t time warner goes through, could comcast catch up there . Reporter theyre not going to wait that long. My understanding is that fox would like to make a decision on this sooner rather than later. And again, as i reported yesterday, perhaps as soon as later next week. So you may see some board meetings in the not too distant future that would not give comcast enough time to prove that case, so to speak, if time warner and at t were to succeed in going ahead with its deal and defeating the government you could make some arguments on antitrust on the disney side disney and fox together in future years could represent 50 of the Film Production<\/a> output. The Regional Sports<\/a> networks added to espn, could you make a case that maybe thats got some competitive issues theres no shortage of them to be had but it does appear at least the Comfort Level<\/a> is higher on the disney side. And that at t deal or court case would still be some time away before they make their decision at fox david, thank you. David faber joining us from the New York Stock Exchange<\/a> tonight. Are you in disney still . I am. They almost shook me out, though because i was disappointed in what bob iger had been doing over time. And now the fact that hes been kicking tires and been negotiating with fox actually kept me in the stock it saved me a couple of dollars anyway, i think it was 98, now its 105. I want to continue to hold even more now with the idea that if the fox assets come through, the international, the sports, the nat geo you like it even better if a deal happens i sure would. And even better if bob iger says i can extend this out a few more years. Because i do think hes the right man. Im lukewarm on disney. To the extent iger stays, thats good, his stewardship has been outstanding. We dont know what theyll pay, some price might be too expensive. I dont know how critical they see it, how much leverage they have to negotiate a good deal. On the other side, fox may not have so much leverage either i dont know, it doesnt make me want to jump out and buy disney. It sounds like comcast wants to do a deal of some sort. Comcast wants to expand itself probably internationally if this deal doesnt happen for them, where do they go i think this deal it doesnt have to happen for them. Im not trying to shirk your question, but let me say this. I cant believe im about to say this a lot of this has to do with trying to get ownership or majority Share Ownership<\/a> of hulu, believe it or not. You would have 60 if they were comcast, to then compete, ground war, against netflix i understand the Different Properties<\/a> i really think what this is all about is trying to beat netflix at their own game which frankly is a difficult task. If they lose i dont know what happens then they have to hold on to their hulu stake i dont know what happens from there. Coming up, the chips have been a wreck and there was a big trade in the Options Market<\/a> that suggests more pain to come. Well tell you the name they were betting against im melissa lee. Youre watching cnbc, first in business worldwide heres what else is coming up up on fast. The democrats want people flowing into our country the clock is ticking on another Government Shutdown<\/a>. Well tell what you to buy if it does plus america has gone crazy for crypto currency. All next week, fast money is taking you inside the world of bitcoin. How to buy it. How to sell it how to be a crypto bowler. The biggest namein ts he world of digital currency, on fast money, all next week. Treatments have gotten better, so. Im hoping for good years ahead. Thats thanks to Research Funded<\/a> by the American Cancer Society<\/a>. The same folks giving me free rides to treatments, insurance advice,and a place to stay during chemo. I need that stuff like you dont know. And now that you do, please give. Call 18004164357 today. Your contributions to the American Cancer Society<\/a> fund valuable research but thats just the beginning. A cancer diagnosis can kick off years of challenge. And thats where your donation truly shines. You help us fund free rides to treatment. A live 24 7 help line, free lodging near treatment centers, and even efforts to expand access to insurance. So, please donate today at cancer. Org and help attack cancer from every angle. Welcome back to fast money. Its down to two more Days Congress<\/a> has until midnight on friday to pass a spending bill to prevent a Government Shutdown<\/a> its get to eamon javers reporter democrats will be coming to the white house tomorrow after missing that meeting last week in a brouhaha that erupted over the president s tweet. Theyll be back at the deal table tomorrow here. But the president today saying that he thinks the democrats might want to shut down the government over immigration. Here is what he said earlier today. The democrats are really looking at something that is very dangerous for our country they are looking at shutting down, they want to have Illegal Immigrants<\/a>, in many cases people that we dont want in our country, they want to have Illegal Immigrants<\/a> pouring into our country, bringing with them crime, tremendous amounts of crime. We dont want to have that reporter House Democratic<\/a> leader nancy pelosi responded in a tweet saying, President Trump<\/a> is the only person talking about a Government Shutdown<\/a>. Democrats are hopeful the president license open to an agreement to address the urgent needs of the American People<\/a> and keep government open at this point, melissa, the expectation is they will be able to get a deal for a short term continuing resolution, keeping the government funded at current rates. That will put the deadline back until around christmas and then at that point, they will have to come up with a deal the trick here is that the white house needs some democrats to vote with them in the United States<\/a> senate in order to get a deal so theyll have to make some concession to democrats. The question is what concession do democrats want, and is the white house prepared to give that concession. Well wait and see how this meeting goes tomorrow. There should be some interesting body language around the table as they sit down to talk about all this, guys they need to do this in order for the senate and the house conferees to actually continue their work on tax . Reporter yeah. The tax thing operates on a separate track, right . The Government Shutdown<\/a> is a spending issue, the tax bill is a separate issue the conferees are working. The politics of it, though, get complicated, youve got these two massive deals happening right at the same time theres lot of horse trading behind the scenes as you can imagine on both of those the spending bill is a different thing, thats Government Spending<\/a> to keep the government open the tax bill, the tax cuts and tax structure going into next year thank you, eamon javers in washington for us. Dan, does that change your thoughts in terms of the influence of the shutdown measures i think what aim eamon said very important democrats will have to stand strong on the daca thing this was part of that original deal making with chuck and nancy a couple of months ago but again, this goes back to, that whole clip they just showed of trump, again, the world heavyweight champion of liars. Hes the only one talking about shutdown, talking crime and this and that and whatever. Hes talking about daca, its really horrible. Is there any kind of concessions they can do within the framework of what they got now so they can get any kind of a deal or no, in your mind of course there is. I think if they actually do a deal on daca and they go to actually, you know, kind of legalize these 800,000 people who were brought here against their own will, thats something, theyll get their budget i think the vix is telling, in my opinion, telling you that this is not a concern of the market whether it gets done this week or whether it gets done by christmas, i think something gets done. Will everybody like it, no but thats horse trading, thats what its all about. The bigger thing is will they ram this tax thing through before the end of the year i still think the answer is yes. The president has said a number of times, i want to give the american citizens a great big fat Christmas Present<\/a> in the form of this beautiful tax bill. And i think thats really what they have their eye on i think its going to get done i agree, its the most likely scenario, no matter how watered down, no matter how phased out it has to be, theyll get something done still ahead, another day, another my for bitcoin, the crypto currency topping 13,000 for the First Time Ever<\/a>. Could a crackdown in washington derail the rally well explain. Broadcomm and lululemon out with earnings after the bill, igr. E stocks are hhe much more fast money right after this a wealth of information. A wealth of perspective. A wealth of opportunities. Thats the clarity you get from fidelity wealth management. Straightforward advice, tailored recommendations, taxefficient investing strategies, and a dedicated advisor to help you grow and protect your wealth. Fidelity wealth management. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual<\/a> wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you\u2122 Liberty Mutual<\/a> insurance. We are the driven. The dedicated. The overachievers. We know our best investment is in ourselves. We dont take no for an answer. We fight for what we want. Even for the things that were once a given. Going to college. Buying a home. And not being in debt for it for the rest of our lives. But were only as strong as our community. Who inspires and pushes us to go further than we could ever go alone. Sofi. Get there sooner. Welcome back to fast money. Bitcoin topping 13,000 for the First Time Ever<\/a> today as cryptos continue to captivate america. It could be about to face major crackdown in d. C seema mody has more on that story. Reporter hey there reporters are paying closer attention to crypto currencies the sec is said to be devoting more resources towards its cyber unit that looks at misconduct involving distributed ledger technical and initial coin offerings. Just this week the sec froze assets of flex i coin which raised 50 million for promising a 13fold profit in less than a month to investors Catherine Huang<\/a> told cnbc shes anticipating large Enforcement Actions<\/a> in the coming year former sec commissioner paul atkins says investors need to do their homework before putting their money into bitcoin offerings. He says the sheer size of the crypto currency market makes it difficult to monitor and track down bad characters. Meantime startups in 2017 have so far raised over 3 billion in bitcoin offerings. The u. S. Treasury department is reviewing how the Financial Crimes Enforcement Network<\/a> is addressing the use of crypto currencies to fund illegal activities meantime President Trump<\/a> has not publicly addressed bitcoin and the recent surge but keep an eye on two individuals in his inner circle. One is Mick Mulvaney<\/a> who cofounded the congressional Blockchain Caucus<\/a> in 2017. Melissa . Seema, thank you, seema mody. And Mick Mulvaney<\/a> now also the head of the interim head of the cfpb which intersects with this whole space here is regulation the biggest wild card bk has talked about this a bunch. He welcomes it a lot of people you talk about want to see some of these bad actors taken out in Enforcement Actions<\/a>, they want to see regulation regulation means you have the authorities buying into the whole process. Theyre not going to be overseeing the process i think a very measured approach toward regulation and taking out bad actors would be a bullish thing for crypto currency. If i wanted to do an ico, i would do it now, i would do it fast speed, to get it out there. The most important thing is knowledge. That was one of the things you brought up as well, get up to speed, do the crash course you have to figure this whole thing out as fast as humanly possible sure, it looks great right now, and we all love what were seeing in terms of returns, today was unbelievable but the regulatory side of it will absolutely enforce some of that, that will be helpful as bitcoin continues to surge, it does seem like anything it touches turns to gold check out the bitcoin stocks, square, overstock, cboe, cme, all soaring this year. But the cme and cboe have surged to record highs recently as wall street awaits Bitcoin Futures<\/a> in the next two weeks meantime overstock and square have entered bear markets. Square did get a boost earlier today after Ceo Jack Dorsey<\/a> tweeted he was rolling out bitcoin to more users but the stock gave back all its gains, all begging the question, what is a bitcoin stock and what is not . Its a fun game yeah, it is is it a game . It can be as long as we answer the question, what is lets look at the exchanges, for instance, cme and cboe listen, i understand that the last little runup in the cme has been based in large part due to this bitcoin bonanza. Look at cme, when bitcoin wasnt even a word, and this company was doing extraordinarily well terry duffy is a great ceo with or without bitcoin the stock goes higher. So its not a stock i want to make sure people walk away with an answer so we can put the buzzer up there. Would you agree with him as a cboe guy, i look at the volumes this year, i look at novembers volumes, 22 million options trading per day, i mean, i think whether bitcoins there or not, the one thing is people are always looking for leverage in the markets and the one place that they can get that still is the derivatives markets. Can bitcoin help them . Sure but they dont need bitcoin. So you say not . Thank you. Lets move on. Square not a bitcoin stock she played the game perfectly. She could have read the phone book and you would have said shes played the game perfectly. The fundamental parts of their business are doing well. This bitcoin thing came about very recently. Thats the tail wagging the dog, to own square because of bitcoin. All great points, i agree with you, its not a bitcoin stock. The rule that i would use is if 98 of their sales next year are going to be exbitcoin, then its not a bitcoin stock apply your rule to overstock. Can i make one point . I downloaded the cash app from square, you know why, because i want to see about trading bitcoin on the cash app. Its in beta testing, can you do it yet . Yes, thats what the tweet was about from dorsey. Why cant this thing emerge as a competitors to coin base coin base charges anarm and a leg. I dont think its a bitcoin stock. But i would consider buying it for the potential in the future. So it is, or its not its not according to your current rule it could be nobody wants to play this game with me were having a nice discussion, though not so there is can you please answer my question about overstock, then overstock i think is the one, theyre creating a platform for people to trade icos this is a company it is right now. I dont know i never thought about overstock until bitcoin was attached to it listen, ill say quickly, because dan doesnt want to answer the question. He did, he did. It just took him a long, roundabout way it was a bitcoin stock to 60. So thats the answer to that question if you give me a half of an x. All i no he is brian kelly is just you want to see watch brian kelly, watch how excited he is, watch this footage coming up i know theyre going to run it because they just told me in my ear theyre going to run it. Audio only . What is this . What in the world nicely done cnbc just left me out to dry. Here he comes guy broke the show. This is for bitcoin week, all week next week top players in bitcoin, going to be on fast. Maybe they will play the game with me. Anyway still ahead, broadcomm higher in the afterhours session the Company Conference<\/a> call is under way. Well hear from the ceo about its potential deal with qualcomm plus Retail Stocks<\/a> surging 10 in the last month. Steve sadove will tell us what has m hiso bullish much more fast money still ahead. For every hour that youre idling in your car, youre sending about half a gallon of gasoline up in the air. That amounts, over the course of the week, to about 10 pounds of carbon dioxide. Growth is good, but when it starts impacting our quality of air and quality of life, thats a problem. So forwardthinking cities like sacramento are investing in streets that are smarter and greener. The solution was right under our feet. Asphalt. Or to be more precise, intelligent asphalt. By embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. That data runs across our network and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. Who knew asphalt could help save the environment . Welcome back to fast money. Chip giant broadcomm moving higher in the after hours session. Lets get to josh lipton for the latest on the conference call. Hi, josh reporter thats right, melissa, so of course a key question for broadcomm investors, that bid for qualcomm, qualcomm saying that bid undervalues the company in their opinion. We know broadcomm has gotten more aggressive, ready to nominate that slate of doctors for call comes board. Qualcomms annual Shareholder Meeting<\/a> next march the cfo addressed that, tom krause take a listen. Weve taken this step but it remains our strong preference to engage in a construction dialogue with qualcomm we firmly believe this combined company, the Global Communications<\/a> leader, enabling us to deliver more advanced solutions for our Global Customers<\/a> and drive enhanced shareholder value. Reporter if this merger took place, it would create a tech giant. Would that attract the attention of regulators . Thomas krause saying broadcomm is confident in its been that regulatory requirements would be met, in his words, in a timely manner the big segments, this quarter wired infrastructure revenues. Chips for networking infrastructure, 2. 2 billion, Wireless Communications<\/a> revenues so chips enabling wifi, bluetooth, gps, 1. 8 billion. Of course big customers there include apple. Melissa, back to you i thought mel said we had josh lipton breaking news on whatever they call it. Thats magnum p. I. We got going on there somebody out there should make joshs beard a twitter account hes all layered up thats a good looking man magnum p. I. Didnt have a beard, he had a mustache, dude liptons a great looking guy. He looks a little to mean sellecky, why not . Listen, i just want to thank you guys, ive been compared to a lot worse than tom selleck we all have usually, guy, i get more of a ben stiller thing. I appreciate that. All right josh, thank you. Josh lipton, bearded josh lipton one trader is betting that stocks are getting ready for more pain ahead. Put activity was seven times daily volume today the smh was down 8 from its recent alltime highs, still up 35 on the year. This bearish roll short dated today, when the etf was trading at 97 bucks. There was a seller to close of 6,000, 98 1 2 puts they put 7,000 of the 96 strike puts for a buck 20 or so, those break even down at 94. 80, kind of an important near terk technical level in the smh this tells me probably some protection over the near term bearish view quickly, pete, lets say smh goes down. Can broadcomm go higher on the back of a deal i think that they can just based upon their earnings. All of these stocks popped on their earnings and now theyve been selling it off. You talked about the smh being up 35 still thats an incredible run so far this year. For more options action, check out the full show, friday 5 30 p. M. Eastern time ahead, lulu has been on a hot streak well tell you whats behind the move much more fast money after this well, its earnings season once again. Yeah. Lot of Tech Companies<\/a> are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. At tmobile, when you holiday together, great things come in twos. Right now when you buy any of this seasons hot new Samsung Galaxy<\/a> phones, you get a second one free to gift. Thats one samsung for you. One to give. Tmobile. Holiday twogether. Check out lululemon, the stock has been on a tearup, 60 in the past month. Pete, you got in to buy options yesterday . Today there was late option activity in there, but the idea, where is the growth going to come from . Ecommerce was up 26 . Mens wear, they beat on the earnings, they beat on the revenue. They have a 200 million buyback. They are really clicking on all cylinders. When you look at the limited number of stores, ecommerce is where theyll have to grow even faster we all know the margins are unbelievable for more on retail, lets bring in former saks chairman and sea, steve sadove, good to see you, welcome back to the show good to see you weve seen a resurgence in retail of late in the past two weeks or so. Is this for real i think it is for real. If you look at the holiday sales, thanksgiving, we were up well more than 4 . The Holiday Season<\/a> forecast is 4 or more youre hitting it out of the park online. While they have some fundamental secular issues, theyre hitting it out of the park relative to expectations is it going to be the case that the winners keep winning and the losers will go away . No question, the winners will keep winning and the losers will lose how fast they go away is the interesting question the winners will be the ones to provide value, experience, and convenience. If you hit objectively three elemen elements, youll be a winner when the losers lose, a sears or a jcpenney, maybe they get to zero, how pervasive will be that be on pressure for pricing and how long will it take to work through that this is an industry thats been consolidating for years you have far too many stores in the United States<\/a>, three or four times per capita square feet than anywhere else in the world. Youll continue to see that going down its not just about the price question you already have the Price Transparency<\/a> because of the internet youll have margin squeezes. Youll have continued Capital Investments<\/a> that are required. But these companies are going to continue toconsolidate and youre going to see less stores, more online. It doesnt mean brick and mortar is going away, you still have 80 to 90 brick and mortar. Steve, you were on the morning show last month you. Made a nice call, you thought the stocks were too overdone, the sentiment was a little too bad. Was this more a matter of Investor Sentiment<\/a> and not a great improvement because we have easy compares was this a rally and it should be out in january . Clearly with some of the losers i do think it was an oversold situation where people had written the sector off and then they were surprised when they saw the very Strong Performance<\/a> during the thanksgiving period thats continuing on into the december its not doing badly and i think whats surprising is that the apparel manufacturers, im not talking about just the retailers, the g3s, pvhs, today you saw some good numbers coming out of lululemon that we just talked about the apparel makers are learning how to work with amazon, how to work with the internet players and play both the brick and mortar Traditional Stores<\/a> and adapt to the new world it seems that would be an advantage to the socalled distributors of those brands, like macys. Weve seen a 43 snapback higher in shares of macys. Is that a head fake . I dont know i dont think its a head fake macys has a lot of strengths but they have Strategic Issues<\/a> they have to deal with too the consumer is changing extremely fast theyre changing quickly but they have to move in even more quickly. I love that they brought in the president of ebay, thats shows theyre bringing culture change into the organization. Theyve got to have more exclusivity. Theyve got a big challenge. They have to look at their real estate again in terms of monetizing it. I think theyre making Real Progress<\/a> steve, good to see you, former chairman and ceo of saks. One of the early fast money guests, here from the beginning, i wanted to point that out some of these have been trades, dollar gen, nordstroms, for example. Others are investments that continue to work despite the selloff, i think home depot still goes higher, i think pete would agree. I like brands, you talk about Department Stores<\/a> being under pressure, theye d vhaa bounceback up next, final trades. Your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. The latest on bitcoin, crossing 14,000 to a fresh record high. Wow. 14,250 time for the final trade pete it is not the end of tech, i agree with mike wilson microsoft, big call buying in there. I think it goes higher its coming a little bit as markets come in, but i still like gm. Pete said he didnt get shaken out in disney i did a couple of months ago, im looking for a reentry. Great to have you back, mel dont think we havent noticed, we had sullivan, scott but youre back. If you like railroads, those choochoos, got to like the people who fix the railroads and service the industries that would be trn. Im melissa lee thanks for watching. Mad money with jim cramer starts right now. Watching see you back here tomorrow at 5 00 mad money with jim cramer starts right now my mission is simple, to make you money im here to level the Playing Field<\/a> for all investors. Theres always money somewhere, and im going to help you find it mad money starts now hello, im cramer. Welcome to mad money. Other people want to make friends, im just trying to make you some money call me at 1800743 or tweet me jim","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia600104.us.archive.org\/17\/items\/CNBC_20171206_220000_Fast_Money\/CNBC_20171206_220000_Fast_Money.thumbs\/CNBC_20171206_220000_Fast_Money_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240630T12:35:10+00:00"}