Disney also in focus this ahead, of course, that will be an after the bell Earnings Report but the companys espn unit striking that deal with ten entertainment. We will keep an eye on eli lillys record run sparked by not just its diabetes drug but also that very encouraging study in terms of the broader impact of those weight loss reduction drugs. Also an upgrade this morning jeffries. Thank you start with disney and that espn Sports Betting deal sounds like this morning that you wonder why markets not making a bigger deal of it on the disney side. Yeah, because i think one aft things theres 55 Million People who play fantasy. What people usually do is they have their lineup, they put their team on the espn site, but then they go to draftkings to play daily fantasy and daily fantasy is huge in this country now, i think Jason Roberts has done a fantastic job at draftkings, and disney had a stake, but now i think youll stay on the disney espn site to do your gambling and that is very powerful. And i think its just money. Manna from heaven. Is it bad news, zero sum for caesars and draftkings . Kind of, yeah other deals probably get phased out you know, disneys probably going to sell its stake. Draftkings does have tremendous market share, and by the way, penn has Terrible Market share you have to have something proprietary. The only thing i see thats proprietary that disney has, frankly, is Adam Schefter from espn you know, my understanding is penn, as you might have expected, has talked to any number of potential partners on this, especially in light of the fact that dave has admitted, basically, an impediment to them getting licenses in certain places that partnership, so to speak, did not work for penn. No. They got some market share, but really, portnoi in particular seemed to be an impediment you know who it did work for . Portnoi you talk about getting pants he pants snowden. Who the ceo of penn oh. But he gets control of the company back entirely, and if he ever does sell it, which he says he never will, they get 50 of the proceeds meanwhile, penn is shelling out a good amount of money to partner with espn. Maybe disney can do that dividend after all 1. 5 billion over 10 years. At the very least, it will be marketing the espn brand unclear how theyre going to roll this out. Apparently, penn does have a new tech stack, im told you can see the stock is responding very positively they have no market share, and theres actually a nice chart today which just shows you you cant you need to have you need to have some sort of, i dont know, binoculars to see it its very small and obviously, this is seen as being something that will super charge their ability to actually really gain. Would you buy do you ever look at dfs, daily fantasy im not the goto guy for all that stuff i used to have a show with draftkings its very sticky right now, there are some good ads on the espn site but they dont charge a lot this will keep you watching the espn site as the games go on, and particularly one of the things a bob igers always focused on is the Fourth Quarter of the game is watched because of daily fantasy i think its a brilliant coup. A coup for who . For disney. They have done listen, again, this is, by the way, not a surprise. If you remember, theyve been talking about this for quite some time. They wanted a lot of money. In fact, bob chapek, the former ceo of the company who was the former ceo . Bob chapek. Spoke very specifically about, you know, wanting to have a frictionless Sports Betting potential with not having to have four screens in front of you, and how espn has the ability to do that wanting to have a partner because, of course, they woere never going to be a book thats never in the cards for the Walt Disney Company he did want it. Jimmy petero wanted to do something involving isos, isolated cameras on your skill players for fantasy. Bob iger understands fantasy better than any of the ceos i know, and i think that hes a green bay fan, by the way, so thats probably going to make it so he has nobody to draft this year i shouldnt say that because aaron jones did quite well i had a. J. Dylan he did nothing for me. I think potero understands the space, and i think we keep leavings out the fact that bob iger was on the vision pro intro. You think thats important, i know yes, i do david, whats coming together here is that you will be following your players, isolated, on vision pro, while you youre gambling on dfs, daily fantasy, and youre and youre putting your team, your club team, on espn site. Espn gets seamless soup to nuts. Right now, its been espn to draftkings one of the reasons why espn why disney has a stake with draftkings but now, youre going to stay right on their site. You mentioned vision pro and disneys longstanding relationship with apple. Remember the mickey mouse face was one of the original watch fashions the headline of the Hollywood Reporter this morning, kim masters, disneys sale to apple, dont count it out this time as were once again back to Laura Martins dream oh, yeah, i talked to lina khan yesterday she thinks its a great idea the ftc would block disney merging with illinois toolworks. Yeah. I just you know, this wont go away for any number of reasons. But you really imagine apple wanting to be in the theme parks business no. But i imagine apple wanting there are so many other avenues for them that i could imagine them going down before i would see them making by the way, would become, even though it still would be a small part of the overall, and even if you bought this thing for 220 bill, it would still be less than 10 of your market cap. True. You cant move the needle. The apple car, you got to imagine thats a way more compelling opportunity for example, you want to do something a little off the apple car, at least, you can imagine that theme parks and what i didnt say that why are you looking at me . Im focused on friday nights game between philadelphia and court for major league soccer. When we have vision pro, you can watch, like i did, the ball come right at you and you dodge it. You look like this because its coming right at you. Mls is real. Its real. Everyone says, well you talked to eddy cue about this, this summer. Yeah. People keep saying, it will never be global. I mean, its in the biggest cities in mexico mexicos not part of the United States there. Now, not everything can be man u. Did you see that game . I did not i didnt either guys, it was never mind. So sorry to disappoint you. I want to go to will frost in london for a second. Come in jim, as for the quarter tonight, people are working for weaker box office, higher tax rates, right down to the galactic star cruiser. Well, he did bob iger did say its going to be a bad quarter. He did. He told me that. I got it too. Well, he was somewhat expansive in terms of the challenges, i think, that we discussed back on the 13th of july it was but that said, its unclear jim, what i would ask you is, its far from clear that theyre not going to make the numbers, because the numbers have already adjusted to a large extent could you have lowered expectations in this quarter this is the ceo saying, were going to miss the estimates. The estimates are wrong. Were way low. That said, you could imagine a scenario under which now they perhaps have underpromised so much that they overdeliver they have a story to tell about fantasy. Ive been begging them since 2008 to do this. Yeah. The debate for years was whether or not gambling could fit into a familyfriendly disney framework that discussions clearly over yeah, geez, thats over dont forget, you know, by the way, fox closed its deal with flutter recently, and i dont mean they closed it like they made it happen i mean, they closed it like shut it down yeah. Draftkings market share is fantastic. Break out the microscope thats why theyre doing this thats why theyre willing to put up a lot of capital, 1. 5 billion, another 500 million over time, essentially. Didnt get any shoare from portnoy. Portnoy didnt work for them. Good for portnoy. Well see what we hear from mr. Iger it will be the first time we hear from him since he spoke to cnbc on july 13th. At that time, you may recall, there were a lot of Different Things that we discussed in terms of abc wideranging interview. Cable networks, espn, and his plans for that speaking of espn, take a listen to what he had to say at the time, given weve talked about it a lot this morning. If you look at todays media landscape, sports stands very, very tall in terms of its ability to convene millions and millions of people all at once theres almost a guarantee that that occurs. Its an advertisers dream its a great demographic there it lends itself to technology in many ways, both in terms of coverage, distribution, and consumption. And our position in that business is very unique. We have a great brand. We have had a great business and we want to stay in that business that said, were going to be openminded there too, not necessarily about spinning espn off but about looking for Strategic Partners that could either help us with distribution or content, but we want to stay in the sports business so, another thing that obviously people may want to follow up on with him. You know, we have heard there have been conversations with, perhaps, sports leagues. Youve discussed the possibility of a tie with apple. I think its big. And i think, again, weve talked endlessly about the decline of these Linear Networks and what that has looked like and what thats going to mean. I think that when we look at tonight, i think you correctly laid out the bear case, but how about if he does say, listen, were going to be all the games that we have are going to be on vision pro, starting 2024 . And that would be apple doesnt have to buy the idea of apple buying them, i mean, geez, why put that stuff out i dont know. Why would you do that its possible they beat the number tonight, you get some good commentary on the call, and you know, they and they keep get an announcement i dont know about that they keep nelson peltz at bay. Thats still out there too he may represent at the very least a distraction in terms of another possible fight for a board seat my understanding is hes continued to ask even fairly recently Ike Perlmutter is a huge shareholder, not doing that well no. So, peltz is out there well see what the quarter looks like very interesting. Meantime, there are some stories on the tape this morning about whether or not were in a peak travel period here, jim, after some of the metrics we got from airbnb and some of the airlines in europe the numbers from hertz indicate its not true the numbers are extraordinarily good for hertz and bookings. Com had extraordinary numbers. American express had very good numbers. So, i still dont get the im not going against my long on, you know, long on money, short on time. It just doesnt add up, but it is international were just not were done with going and seeing the grand canyon weve seen the grand canyon enough last visitor to the grand canyon enough with the redwood forests, gulf stream waters. Enough with all those beautiful, magnificent things. Yeah. Time to move on. Does lake powell have any water left water is an issue lake como yeah. Succession. Wrong network. Sorry. Take a look at the premarket this morning its a pretty busy wednesday got news on nvidia, rivian, carvana, wework. 4. Ithhiese today. 811s e ght of the year autonomous vacuums work continuously around the house, but when your team has to work seamlessly around the world. You need more than technology. You need cdw who can help transform your organization with built for performance lenovo thinkpads. Preconfigured for management flexibility and equipped with the intel evo platform. 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Consumer prices down 0. 3 in july from a year ago, the first such drop since 2021 this morning, jim, jpmorgan says, if you recall, our last cpi print, it was precluded by a miss in chinas cpi. Right and a miss on manheim well, its interesting. When you look at these sets of performances since july 12th cpi, energy up 6. 7, finance up 3. 2 , but the rest of them are down its meaningful. I also think theres an outfit, country garden, are you familiar with these guys . One of the largest real estate plays. Its bigger than the brighton that was so bad. And i think that what youre going to see is weve got some serious deflation. Country garden, thank you to bloomberg, reuters, and new york times, but they didnt pay 22. 5 million in interest due monday on debt securities. This outfit is just gigantic and its probably the largest developer. I was thinking about what to do with all theplaces they have, and i was thinking, david, i dont know pickleball . The largest pickleball courts in the world it does shed light on the significant decline in Property Values amazing potential default and for many chinese, their home is their piggy bank, so to speak, and with declining values, it makes them even more reluctant, perhaps, to spend hence, you deal with sort of this deflation that were talking about now as a real possibility extending beyond, obviously, a quarter, carl theres also some takes that this crackdown on business interest has eroded confidence i think so. Not just for consumers but for Business Leaders deflation is such a tough thing. People think, oh, deflation, that could be great, particularly when we were running high makes stuff cheaper but where was the worst deflation in the world japan no, 1931 to 1933. Germany thats what destroyed the economy. And i dont know i mean, look, i dont want to say what happened is necessarily cause and effect, but there was a party that gained tremendous traction because of deflation in germany. That said, citi this morning says, look, its one print were going to watch for policy delivery in the coming weeks, perhaps. Good luck i mean, they keep trying to prop up property debt look, they want service to be their goal was to get it to be 60 of the economy instead of 30 , and theyre failing miserably. Just failing miserably it could lead to a lot of other geopolitical kinds of things, if, in fact, the economy does go into a tail spin there what do you do, david how do you ignite an economy in deflation . Most countries have never been able to turn deflation japan has finally emerged how many years . 30 years. Yeah. Took 30 years. And nikkei today says chinas set to lift the ban on group travel to japan, maybe as early as tomorrow. That could help if i were the chinese, ever since the president for life, its just the wheels are coming off the bus to carls point, i think that crackdown on business, the impact it had on confidence, particularly so many of the Business Leaders, you know, we talked at the time about jack ma certainly disappearing from the public venue it was not insignificant no, its hard to come back from that i think people are totally underestimating an American Company that would open a factory there right now, i think, would be frowned upon, other than apple apples able to do it. And obviously, starbucks and nike and tesla but the government does not favor it anymore yeah. White house looking to detail some restrictions on investment there today. Cramers mad dash coming up after the break and of course the opening bell one last look at futures on this wednesday. The biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. 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Its the same graph of jensen, and the keynote was incredible because theyre talking about, you know, theres 50 trillion in manufacturing spend, and if you want to go make a factory, a really good factory, lets just say you want to make a mercedesbenz factory. You could go to this new, you know, you could speak to it, basically, and say, i want the finest mercedesbenz factory that could be made using all of the great things of every factory in the world it will then build you one using robots that learn how to be robots im not kidding. And theyll build it to you in scale, actually, in a digital twin and then you just go make the factory from that digital twin, and he outlined it yesterday. Its a new super chip, and i thought, i want people to go watch this video if they want to know why this stock has done this, because its about power where do i watch this video again . Siggraph 2023 where he talks about the ecosystem. Now, we know, david, from your unbelievably excellent interview with elon musk, that he praises nvidia as having the super brain. This is the super super brain. And does it mean that theres even more to go, jim yes in terms of the stock price i mean, even after this incredible move . Now a 1. 1 trillion market value . Larry williams, whose work i respect, whos a great market historian, does say that it has to fill in this gap and go down to here and that it should be sold well, we should be patient, bu