Of china and Germany Europe is in the red tenyear yield near 1. 95 that moved 30 basis points since last weeks fed meeting. Our road map begins with disney and the streaming wars deals with amazon and apple and 52 surge in studio, shares up 5 ahead of the bell. Plus, billionaire battles Elizabeth Warren staying on the attack, saying theyre crying about her wealth tax this as billionaire Mike Bloomberg considers a run for president. As we said, closing out a big week for stocks, new records and reach as investors weigh more china tariff rollback talk first up, though, jim, a very special show coming up tonight. Yeah, look, were at the place, i think, epicenter of what i regard as being the new wing of our defense. That i say that because it was in 1959 they created this academy. It is a very special place and im glad i have that accompany music. We want to talk about not just what is going on here, but what goes on after service, why were bringing in Kevin Johnson from starbucks. Hes one of the most committed, along with jamie dimon, not just in saying, but actually doing, hiring people that graduate from military and looking for jobs. So im proud to be here. Im proud that theyre letting us be here we kind of invaded their turf and i cant wait to speak to them the campus, the air force academy. Many, many years ago. Just incredible. You grew up not that far my parents are maybe, i dont know, 20 minutes from there. Gorgeous country, jim. We cant wait, given your history of taking shows on the road, but especially this time it is going to be special to watch. Lets get to disney too kind, carl. You talked about it with joe a few moments ago. The story is well known, beating on the top and bottom lines. Boosted by studio entertainment revenue, Strong Box Office this year, the results come just days before disney plus goes live on the 12th Julia Boorstin talked to iger after the call, heres what he had to say we have distribution deals with a number of different entities, were pleased to announce today a deal with amazon we have deals with apple, we have deals with samsung, with microsoft, with lg, with google. Significant, significant progress in terms of distribution deals and amazon being the latest one. Jim, youre framing igers risk taking move here and some pretty historic terms. Well, look, this is the new generation, what has to happen think about all the different outlets. Thats where millennials are millennials, look, we work for comcast and comcast is doing a lot of things. It is like you get it and have to turn it off if you dont want it it will become a default channel. If we hadnt done this, there really couldnt be a way to survive. Thats my interpretation when he said, but, boy, he was calm, cool and collected when this man goes up against skeptical analysts, they just kind of melt like the wicked witch of the well, various west and east. Yeah, i think he has a lot of confidence in the strategy that he has embraced and been thinking about for a long time it was, what, that summer of 2015, i guess, when we first started to see the discussion of it in their call, jim, you remember the weakness of course at that time at espn we went on and on about it he started to wonder if we were too focused on it, if you recall the fact is he was focused on it as well. And that a lot of that thinking then led to, of course, the transaction to acquire all of those assets from fox, roughly two years ago. Battle with comcast that took place there. They ultimately did prevail, to where we are right now and bob iger does have a great deal of confidence in the rollout of this strategy i remember him talking to him on the day they introduced disney plus last spring, and him talking about the changing landscape and the significant way that the fact he needed to embrace it and be there to potentially position the company in the way that it currently is. The questions will remain in terms of the tape rate to your point. It will be available on all of the platforms. But still have to have people say they want to buy it, what is the interface in term of how the ease of use and other things, they have been working on that for some time. But there is no doubt this is going to be a very significant player in these streaming wars as we watch the continued erosion of the bundles, slow, but steady not even that slow, really, i should say, actually not from the direct broadcast satellite companies, though yesterday, we heard from dish, they reported 66,000 subdeclines which was not much at all. It is impressive, i guess, in retrospect the falloff in Linear Television watching, jim, it is happening and it is accelerating were losing more viewers off linear this year than we did the year before. It has been like that for a few years. No,it is extraordinary. Lets face it. When you listen to that call, there is probably maybe 45 seconds devoted to espn. It is like that we used to think about with abc i remember when abc started going down as an importance to the pastiche of disney and it was amazing to think, thats impossible, if that goes down, it will take the company down. We stopped talking about scattered pricing. Now, i kept waiting for someone to say, wait a second, bob, espn is falling apart, which by the way, it is not, he started talking about how espn pluses had chris berman he answered all the objections i remember when they first opened Walt Disney World and people said maybe theyre giving up on mickey mouse they seemed to always reinvent themselves these are very difficult reinventions it was very interesting, i think most shocking thing i just saw on the shot we had was david was not wearing a tie and iger wasnt and it threw me more than the fact that im at the air force academy. Im not wearing one because youre not next to me. I know that would be not something i would be allowed to do given youre 2,000, 3,000 miles away, maybe i can get away with it, jim. I think iger has given me clearance to do that too if he can do it, i can do it. I thought it was a great call the analysts are littlpuchins shouldnt be allowed to ask any questions. Thats ridiculous whats interesting is that hyperbole. I know. But they are moving beyond the near term pressures. Thats the beauty of what hes been able to accomplish so far, hes gotten investors focused on this product, on its success, on its importance to disney and, i mean, all right, we still will talk about theme parks, which werent bad. Hong kong was under pressure or china, well talk about the studio, but really and espn a little bit all we talk about at disney plus and thats what the stock price is moving on. Well, david, the greatest part of this story line last night was that they like it in the netherlands. It plays in the thats like peoria it plays with the dutch, so it has to work here and i found myself thinking, yeah, of course. And i said, like what does that have to do with anything iger has me thinking, if amsterdam if amsterdam likes it, new york will like it. And he can actually say stuff like that and we say, well, yeah, sure, netherlands, thats our target market. Hes magical magical kingdom of a conference call. There is the cover of business week, which we talked about yesterday. You mentioned parks, barclays to the degree people are looking to quibble, did have a piece earlier in the week about the star wars attraction at disney land, not seeing attendance pick up as much as prior rollouts like avatar. How much is that worth worrying about, if at all well, i think he did provide a couple of explanations about why there may not be as many people i felt good about it im not worried. I think he he likes to answer the objections and also really kind of see around the corner like you mentioned with hong kong im actually not worried about that at all. The only thing im worried abou is how good some of the things hes talking about with different divisions of fox, how good are they . And i was surprised that they only added 500,000 subs to hulu. I thought it was a juggernaut. I expected a million, a million and a half you have to bet, didnt you that hulu was a disappointment . Yeah, it was. It came in below similar to netflix and well raise questions about that in the marketplace. They are devoting fx programming to hulu. That will be showing up on the hulu platform. Perhaps that will help a bit but, yeah, that was below i think what people had been anticipating, carl. Yeah. Jim, well talk about disney, of course, all morning long. The other big story this morning is the battle against the billionaires is heating up president ial hopeful senator Elizabeth Warren taking another swipe last night at north carolinas a t university. You may have heard billionaires on tv recently crying about that two cent wealth tax aw aw but we ask the top 1 10 of 1 to pitch in two cents on their fortunes, we can invest in an entire generation. All that as reports that a billionaire is preparing to enter the president ial race. Former new york mayor Michael Bloomberg is expected to file paper work this week in at least one state with an early deadline, alabama, which the deadline is today. Though an adviser says bloomberg has not made a final decision to run. Got other states with deadlines next week, like new hampshire. So this picture will solidify here pretty quickly. Yeah. Now, there are other states where they dont have deadlines or where independents can republicans can vote but needed to get he needed to do this if he was going to be considering it carl, it is funny, you spend as much time as i do talking to people as often as you can or meeting with people at lunch or going to conferences, any number of them will talk about bloomberg over the last few weeks. Hes bored hes looking for something to do he knows he cant win. Hes not going to run. Thats what i kept hearing i was somewhat surprised to see this decision. Just because while many people believed he wanted to do it, he consistently, ive been told, by people who didnt think he could prevail in a democrat eke primary, perhaps in some fashion the calculus has changed recently because of the ascension of Elizabeth Warren. The line of biden is collapsing, maybe he does believe that bidens erosion in recent weeks clears a path i heard the chatter that this is something that mayor bloomberg wants to do. I want to hear him speak not that long ago and he was talking about very wistfully about how hes just too old. I wonder whether the age of the people hes running against made him feel like that it is not sunrise senior living. There is a lot of chance to be in the middle of how people the age group. I have to tell you, the senator warren stuff resonates there is not enough billionaires to go around and i wish it is funny, i mean, does she want the billionaires to lose all their money . Like maybe they go, maybe the billionaires should be investing, say, in party city. Gap. What does she want the billionaires to do theyre stuck being billionaires there is not much they can do there. They were very successful. Unless they lose right . Does she want them to just invest in really bad cannabis stocks so theyre theyre the men of the people . They have to generate a return to pay their tax bill every year by the way, i thought it was 2 after 50 million on whatever is additional above that. But i thought it was 6 at a billion now under the medicare proposal, carl maybe i got to go to robert frank who covers all of this i think it is more than two cents if youre a billionaire. Do you give if it is a 40 foot yacht, do you give, say, 10 other feet to the people meanwhile sell the yacht. Sell the just asking. That wont go over well. Ubs has this report out today, the number of billionaires, their wealth, fell laster where for the first time in three years and china, jim not in the just global and thatmints a new billionaire every two to two and a half days. Two to two and a half days, wow. Look, i got to tell you, i listen to that senator warren has to say, she has great stuf to say about how billionaires shouldnt have more votes than everybody else i think were not in a yonker state where a billionaire has more votes the thing shes missing out, these people are they have no choice theyre billionaires thats just kind of what happened i do get sick of the billionaires telling me thee grew up in a humble background it is america. Everybody was humble at one point. Im humble, youre humble, this guy is humble. They all have their mythology, i know, yeah. Listen, i get that part, right, jim. Right enough of that but i do think that senator warren, shes running against them and theyre taking the darn bait listen, americas billionaires, i know you watch, shut up shut up and give the money away. Stop talking stop crying. Stop giving her the grist. I would love i love billionaires to shut up and give some money to causes, hey, give some money to her, then shell really be confounded yeah, youre right. No response to that. Jim, when we come back, a special Rocky Mountain mad dash as we count down to the opening bell take another look at the premarket here we got to get to navarro making comments on trade today. Upgrades of mcdonalds, United Rentals and others when we come back vo the flock blindly flying south for the winter. They never stray from their predetermined path. But this season, a more thrilling journey is calling. Defy the laws of human nature. At the season of audi sales event. All right, we got 12 minutes before we get started with trading at the New York Stock Exchange jim, however, is not next to me as you can see hes at the air force academy in colorado doesnt stop us from doing a mad dash jim, art peck will be stepping down as the chief executive at the gap. Thoughts yeah, well, he fell into the gap. More likely to say pushed into the gap. This say man who has been there for a long time. Big data, by the way, what he wasnt interested in was finding things that people want to buy and make it so it is relevant. Gap has become irrelevant. And i dont know how anyone i dont think this is really a monumental task, david, to get this thing to turn around. Art was clearly not they were going to split the company in two. I think lusitania and titanic, both not great role models, and it didnt work they may still split it. Talking about that but art is gone. And the gap is fading away because it is not a place that people like it go. It turns out thats important. Right though they are going to still split into old navy and then the gap, banana and athleta. That is still happening and fisher comes in, hes already done it once before as interim ceo, but the numbers arent pointing in the right direction. No. I pick those two ship metaphors because the idea that old navy, the only thing left, it still draws a crowd. It doesnt matter if the dogs wont eat it, it doesnt matter what kind of dog food you say is new and improved and gap has not been able to be new and improved it has the same darn look. Except the gap in rome, they had really attractive things, it just seems like it is someone was mentioning this morning, 40 off, 40 off, 40 off you need to be every day low price or need to be online. And these guys are neither i feel bad for them, david but they are part of the mall infection. And they are irrelevant. There is no maybe they got to roll out the rome gap relevant coming up that rome gap is gorgeous. Maybe one day, you know, on our retail round about, well hit that too before that we go through the big movers of the morning. You see them right there disney one of the keys the other two also havent reported earnings. We have a lot more on tap for you, more on disney, activision, blizzard, and other things dont go anywhere. Val, vern. Im off to college and im not gonna be around. Im worried about my parents retirement. Oh, dont worry. Voya helps them to and through retirement. Dealing with todays expenses. Like college. While helping plan, invest and protect for the future. So theyll be okay. Without me . Um. And when we knock out this wall imagine the closet space . Yes oh hey, son. Yeah, i think theyll be fine. Voya. Helping you to and through retirement. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. 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The opening bell in 3 1 2 minutes. Busy friday. We talked some disney and some gap. Jim, the other big story is navarro, saying that there is no agreement to remove any of the existing tariffs as a condition of phase one but some reports today that he said maybe you postpone december 15 where are we on trade this morning . Look, when we hear navarro, what we need to be thinking is President Trump. So, i mean, the idea there is this guy out there, who is kind of off the reservation, who is a bomb thrower, well, i got to tell you, thats just through a wrong analysis i think secretary mnuchin and larry kudlow, i think they want a compromise but the thing that came down yesterday, they were discussing fentanyl and what did they say there is still no decline in the amount of fentanyl that comes in from to jfk airport when there is when theyre talking about fentanyl, theyre not talking about rolling back tariffs. Lets understand that there is a false news perspective to those who think that the president is in there, rolling up his sleeves and rolling back tariffs thats not the game plan if youre buying stocks because of that, you will lose money yeah. Apparently told npr this morning, want to save some ammo for phases two and three navarro. Yeah. Theyre not interested in phases that phase is we care about phases in this country less than the chinese. It is really interesting, the chinese have been vo