CHARLES:DOWN NOW TRIPLE DIGITS
AFTER SCOURING BIGGEST GAIN IN
SIX MONTHS YESTERDAY.
WE'RE ABOUT 200 POINTS OFF THE
SESSION LOWS.
OBVIOUSLY ANOTHER WILD SESSION.
ONE STOCK BUCKING THE TREND.
SHARES OF NETFLIX, THEY ARE
SOARING AFTER REPORTING SOLID
SUBSCRIBER GAINS THAT REALLY
BLEW AWAY ALL WALL STREET
ANALYSTS.
AND BY THE WAY, IN THE PROCESS
THEY GAVE THE OWNER OF OUR
COMPANY, RUPERT MURDOCH, A BIG
SHOUTOUT DURING THE COMPANY
EARNINGS.
TO TALK ABOUT ALL OF THIS, BRING
IN MITCH ROCHELLE FROM TWC, AND
FROM VISION FOUR FUNDS
DISTRIBUTORS, HEATHER ZUMARRIAGA
HEATHER., WHAT THEY ARE SAYING
RUPERT MURDOCH IS ONLY ONE GOT
IT RIGHT.
SOLD CONTENT FOR BIG PREMIUM.
SITTING ON CASH.
THE ONLY PEOPLE NETFLIX CANNOT
DOMINATE, SPORTS AND NEWS.
THOSE EVENTS PEOPLE WANT TO
WATCH LIVE.
OTHER THAN THAT, ESSENTIALLY
REED HASTINGS IS TELLING THE
WORLD WE'RE GOING TO DOMINATE.
>> THAT'S RIGHT.
REED HASTINGS GIVING FOX A BIG
SHOUTOUT, THE BUSINESS MODEL OF
LIVE NEWS AND LIVE SPORTS GOING
FORWARD IS HOW OTHER NETWORKS,
THEY MAY FOLLOW SUIT OR THEY MAY
BECOME A DYING BREED BECAUSE
THEY'RE LOSING OUT TO NETFLIX
AND OTHER ON-DEMAND STREAMING
SERVICES WHO HAVE PERHAPS BETTER
CONTENT ON DEMAND WHENEVER YOU
WANT IT AND CHEAPER.
SO NETFLIX IS GIVING A BLOWOUT
QUARTER RIGHT NOW WITH
SUBSCRIBER GROWTH ACROSS THE
WORLD.
MOST OF THAT COMING GLOBALLY.
I THINK MOST OF THEIR GROWTH
COULD COME FROM EUROPE ACTUALLY
OVER THE U.S. WE HAD ABOUT ONE
MILLION IN THE U.S. BUT THEY ARE
CHANGING THE WAY THAT WE'RE
WATCHING TV.
THAT WAS A BIG SHOUTOUT FOR FOX.
CHARLES: ASIA WILL BE HUGE FOR
THEM, PARTICULARLY INDIA IN THE
NEAR TERM.
THE BIG ISSUE, YOU CAN'T CHARGE
THE SAME AMOUNT YOU CHARGE IN
INDIA, OR MALAYSIA OR INDONESIA,
EVEN THOUGH THEY COULD DOMINATE
THE MARKETS THAW CHARGE IN
AMERICA.
>> FROM A LICENSING PERSPECTIVE
THEY MAY NOT HAVE IDENTICAL
CONTENT AROUND THE PLANET AS IT
RELATES TO PREVIOUS SHOWS.
CHARLES: WHEN YOU SPEND
$9 BILLION, YOU CAN GENERATE, I
SEE GREAT INDIAN CONTENT ON
NETFLIX.
I CATCH MYSELF WATCHES SHOWS.
I WATCH THEM ALL THE TIME.
YOU SHOULD SEE THE LUNCH BOX.
INSPIRED BY A INDIAN MOVIE.
>> A LOT OF BOLLYWOOD STUFF?
CONTENT IS KING.
NOT JUST NETFLIX.
LOOK AT ALL THE STREAMING
SERVICES AND REALITY THE CORD IS
BEING CUT.
THE THING TO KEEP AN EYE ON,
COST OF ORIGINAL CONTENT.
WE'RE TALKING ABOUT NUMBERS IN
THE BILLIONS AND COMPETITIVENESS
CREATING NEW, ORIGINAL CONTENT
AND DOING IT IN A PERIOD OF
RISING INTEREST RATES.
SO IT WILL BE INTERESTING TO SEE
HOW THAT GETS FINANCED BY THESE
COMPANIES.
CHARLES: TALK ABOUT THE BROAD
MARKET.
BROADEN THIS OUT A LITTLE BIT.
IT IS A VERY INTERESTING
SESSION.
FINANCIALS ARE LEADING THE WAY
NOW, MITCH.
THEY HAVE BEEN A BIG
DISAPPOINTMENT.
EVEN ON FRIDAY, JPMORGAN, IT WAS
THE WORST PERFORMER ON THE DOW.
THE MARKET WAS ABLE TO RALLY
DESPITE THAT ALTHOUGH FOLKS
YESTERDAY WERE PRETTY HAPPY WITH
MORGAN STANLEY AND
GOLDMAN SACHS.
THEY'RE NOT NECESSARILY LIVING
UP TO THE HYPE.
WHAT IS GOING ON THERE?
IF WE THINK INTEREST RATES GOING
HIGHER, MARKET REACTING TO THAT,
WHY AREN'T FINANCIALS DOING
BETTER?
>> SOME OF IT IS YIELD CURVE
RELATED.
THE YIELD CURVE HAS TO BE IN THE
RIGHT TRAJECTORY AND BORROWING
SHORT AND LENDING LONG, VICE
VERSA, MAKES SENSE FOR NET
INTEREST MARGIN.
THE OTHER THING THEY'RE LOOKING
AT, WHAT IS HAPPENING, LOAN
GROWTH, INVESTMENT TRADING,
COMPONENTS OF DIFFERENT
BUSINESSES TRYING TO FIGURE OUT
IN VOLATILE MARKET, POTENTIALLY
SLOWING ECONOMIC GROWTH, WHAT
DOES THAT MEAN FOR THE FUTURE?
CHARLES: HEATHER, HERE IS A
THOUGHT, WHY DON'T THEY START
LENDING MONEY?
WHEN THEIR TRADING DESK IS THE
MAJORITY OF THEIR INCOME AND
THEIR EARNINGS AND THEY LIVE OR
DIE EACH QUARTER, DEPENDING ON
TRADING VOLUME, VOLATILITY, THAT
IS NOT WHAT BANKS WERE DESIGNED
FOR.
>> WAIT A MINUTE.
YEAH, BY REGULATION TO CAUSE
THEM TO REIN IN SOME OF THAT
LENDING AFTER 2008.
I MEAN PRIOR TO 2018 THE BANKS
WERE LENDING TO ALMOST ANYONE
AND EVERYONE.
AND NOW, AFTER 2018 DODD-FRANK
AND OTHER REGULATIONS MADE IT
VERY DIFFICULT FOR CONSUMERS TO
GET LOANS, OR EVERYDAY AVERAGE
AMERICANS TO GET A MORTGAGE.
SO HOPEFULLY PRESIDENT TRUMP IS
ACTUALLY GOING TO CUT SOME OF
THAT REGULATION.
IF IT IS UNNECESSARY, AND ALLOW
THE BANKS TO LOOSEN THE REINS ON
MAKING SOME MORE LOANS.
CHARLES: TAKE ALL THE EXCUSES