♪
[LAUGHTER]
STUART: CAUGHT ME.
[LAUGHTER]
TALKING OFF CAMERA WITH MY GOOD
FRIEND, STEVE FORBES,
EDITOR-IN-CHIEF OF "FORBES"
MEDIA.
I WANT TO TALK ABOUT THIS TAX
THAT YOU SO DESPERATELY WANTED,
BUT DO YOU LIKE WHAT YOU'RE
SEEING COMING DOWN THE PIKE?
>> IT'S GOING TO DO MORE GOOD
THAN HARM --
>> NO, IT ISN'T.
ON THE PASS-THROUGHS SO YOU
REALLY ARE GOING TO GET A LOWER
TAX THING NO MATTER WHAT YOUR
INCOME ON THAT, THATS' A GOOD
THING.
AND IF THEY FOLLOW THROUGH ON
THE TAX BRACKETS, THE SENATE
EVEN THOUGH THEY HAD SEVEN
INSTEAD OF FOUR IN THE HOUSE,
THEY WERE BETTER IN THE SENSE
THAT'S STIMULATIVE.
THEY HAD FORGOTTEN THAT THE REAL
KEY THING IS THE RATE YOU PAY ON
YOUR NEXT DOLLAR OF INCOME.
THE SENATE DID A BETTER JOB IF
THEY KEEP THOSE KIND OF RATES IN
NEXT YEAR?
IF WE GET THIS PLAN IN PLACE, DO
WE GET 4% GROWTH NEXT YEAR?
>> WE CAN GET CLOSE TO IT
BECAUSE THIS YEAR WE GOT
THREE-QUARTERS OF 3% GROWTH JUST
BY DEREGULATION, JUST BY NOT
HAMMERING THE ECONOMY, JUST
LEAVING THE THING ALONE.
IT STARTED TO PROSPER, STARTED
TO BLOSSOM, AND SO NEXT YEAR
WHEN YOU HAVE THESE LOWER RATES
COMING IN -- AND WHAT THE
CUTS TO COME IF WE RETAIN
CONGRESS, WE'RE GOING TO DO MORE
IN 2019.
GIVE SOMETHING OUT THERE.
GET PEOPLE ANTICIPATING EVEN
HOLD ON, STEVE.
I WANT TO TALK MORE ABOUT BIG
TECHNOLOGY STOCKS, ACTUALLY.
BECAUSE THIS NEW TAX PLAN
INCLUDES -- IT'S KIND OF A
REPATRIATION TAX.
IT'S ABOUT A 10% TAX AT A VERY
LOW LEVEL OF TAXATION, REALLY
FORCING BIG COMPANIES TO BRING
THE MONEY BACK FROM OVERSEAS AND
BRING IT BACK TO AMERICA.
JOINING US NOW, JOHN LAYFIELD,
CEO OF THE LAYFIELD REPORT.
JOHN, I THINK THAT PARTICULAR
PROVISION OF THE TAX PLAN, BRING
THAT MONEY BACK FROM OVERSEAS,
AM I ON THE RIGHT TRACK?
>> I THINK YOU'RE SPOT ON.
IT'S GOING TO BE A HUGE HELP TO
THE TAX CUTS.
ONE OF THE THINGS THEY'VE DONE,
YOU'RE GOING TO PAY IT ANYWAY.
I DON'T THINK YOU'RE GOING TO
SEE A LOT OF EXTRA CAP-EX
SPENDING BECAUSE THE MORGAN
STANLEY SPENDING HAS THE -- WHAT
YOU'RE GOING TO SEE IS THESE
TECH COMPANIES ARE GOING TO
BECOME MUCH BETTER COMPANIES.
LOOK AT APPLE, FOR EXAMPLE, $252
BILLION OF THE $270 BILLION IS
WITH 3% INTEREST THAN IT IS TO
REPATRIATE AT 35% INTEREST.
YOU'RE GOING TO SEE THESE
BALANCE SHEETS BECOME MUCH
BETTER AND THESE GREAT GLOBAL
COMPANIES GROW IN THE UNITED
STATES, WHICH IS VERY IMPORTANT.
STUART: WHEN WE OPENED UP THE
MARKET THIS MORNING, JOHN, THE
DOW WAS UP ABOUT 80 POINTS, WELL
ON THE WAY TO 25,000.
WE'RE NOW UP ONLY, WHAT, 14
POINTS, THAT'S IT.
BUT THE QUESTION IS TO YOU,
JOHN, ARE WE GOING TO SEE 25,000
ON THE DOW IN THE VERY NEAR
FUTURE?
LIKE BEFORE CHRISTMAS?
WHAT DO YOU SAY?
>> I THINK IT'D BE A WONDERFUL
CHRISTMAS GIFT.
WE'VE ALREADY HAD A GREAT RALLY
THIS YEAR, BUT IT'S ONLY ONLY
ABOUT 2%.
WHEN THIS TAX PACKAGE GOES
THROUGH, HOW ARE PEOPLE --
THEY'RE GOING TO HAVE TO SELL
STOCKS FOR CERTAIN TAX REASONS.
ALSO ARE PEOPLE LOCKING IN
PROFITS RIGHT NOW.
YOU'RE GOING TO SEE A DOWNTURN.
I DON'T THINK YOU WILL.
I THINK THE PROJECTION --
BECAUSE THIS LAST JOBS NUMBER
WAS THE FIRST ONE WITHOUT A
DISRUPTION FROM THE HURRICANE.
AND WHAT WE SAW WAS THAT THE
FUNDAMENTALS OF THIS ECONOMY ARE
INCREDIBLY STRONG WHICH I THINK
THIS MARKET WILL BE TRADING ON.
STUART: OKAY, JOHN, YOU'RE STILL
ON DECK WITH THIS ONE FROM BANK
OF AMERICA.
THEY'RE LOOKING TO THE FUTURE,
AND THEY'RE SAYING THE NASDAQ,
LET'S TALK ABOUT THE NASDAQ,
THEY SAY IT COULD HIT 8,000 BY
NEXT SUMMER.
THAT WOULD BE A 16% GAIN FROM
WHERE IT IS NOW.
FIRST TO YOU, JOHN.
ARE WE GOING TO GET THAT KIND OF
GAIN FOR THE NASDAQ?
>> I HOPE WE DO.
IT'S ABOUT A 20% GROWTH FROM
RIGHT NOW AT ABOUT 6900, SO I
THINK IT'S VERY POSSIBLE.
ON FOX BUSINESS WITH MARIA, HE
TALKED ABOUT THE THREAT OF
COMPETING TELEVISION PROGRAMS.
I THINK WHEN YOU START TO SEE
THAT GROWTH WHICH IS NOT
NECESSARILY FACTORED IN WITH
STUART: ALL RIGHT, JOHN.
STEVE FORBES, A 16% RALLY IN THE
NASDAQ BY THE SUMMER OF NEXT
YEAR.
WHAT DO YOU THINK?
[LAUGHTER]
>> OH, I HOPE SO.
[LAUGHTER]
STUART: YEAH, BUT ARE WE -- WE
ALL HOPE SO, ARE WE GOING TO
MAKE IT?
>> THE ANSWER IS, YES, WITH THE
USUAL CAVEATS, THE USUAL
CAVEATS; WE DON'T GET A TRADE
WAR, WE DON'T HAVE NORTH KOREA
AND THAT KIND OF THING.
BUT THE KEY THING TOO, STUART,
IN TERMS OF GETTING THE 25,000
PROVISIONS THEY PUT IN THIS BILL
TO MAKE SURE PEOPLE DON'T GAME
THE SYSTEM WITH EARNINGS
OVERSEAS.
ALL THESE LITTLE THINGS.
IF THEY CLEAN THAT UP, AND IT
LOOKS LIKE THEY ARE, YOU'RE
GOING TO GET THAT 25,000.
SO IT'S THOSE LITTLE DETAILS
WE'VE GOT TO SEE NOW.
STUART: OKAY, GOT IT.
WE WOULD BE REMISS IF WE DIDN'T
TALK ABOUT BITCOIN.
I THINK THE PRICE HAS STABILIZED
A LITTLE BIT.
WE'RE AT 16,000 NOW.
FED CHAIR JANET YELLEN, SHE'S
NOT REALLY BUYING INTO ALL THE
HYPE ABOUT BITCOIN.
SHE WARNED YESTERDAY THAT IT'S A
SAID SOMETHING THAT'S FRUITFUL
AND USEFUL.
THE THING ABOUT CRYPTO CURRENCY,
IT'S GOT TO HAVE A STABLE VALUE.
BITCOIN IS USELESS IN TERMS OF
USING IT FOR MONEY BECAUSE ONE
WEEK YOU HAVE STEAK, THE NEXT
WEEK DOG FOOD.
THAT'S NOT MONEY.
STUART: ACTUALLY, THAT'S WHAT
JANET YELLEN SAID YESTERDAY,
IT'S NOT A MEDIUM OF EXCHANGE.
>> YEAH, JUST BECAUSE IT SAYS
COIN DOESN'T MEAN IT'S CURRENCY.
STUART: THAT'S RIGHT.
>> I THINK MR. FORBES IS RIGHT.
HE'S ALSO RIGHT ABOUT THE TAX
CUT.
I THINK BITCOIN IS THE BIGGEST
FUTURE, I'M NOT SURE BITCOIN IS,
BUT I'M VERY POSITIVE THAT THIS
IS A BUBBLE.
>> GUESS WHO'S TALKING ABOUT
DOING A CRYPTO-CURRENCY?
STUART: WHO?
>> THE FEDERAL RESERVE.
THE FED COULD STEP IN AND HAVE A
CURRENCY FOR THE UNBANKED.
STUART: MY HEAD IS SPINNING.
YOU MANAGED TO GET FED AND
BITCOIN IN THE SAME SENTENCE, NO
BUZZER.
WELL DONE.
[LAUGHTER]
BIG BUSINESS STORY, DISNEY IS
BUYING SOME OF THE ASSETS OF
21ST CENTURY FOX, AND THEY'RE
GOING TO PAY $52.4 BILLION.
NOW TOGETHER, DISNEY IS GOING TO
GET FOX'S TV AND FILM STUDIOS,
COMBINE WITH ESPN, WHICH IS VERY
STRONG.
THAT WILL BE A REGIONAL SPORTS
POWERHOUSE.
DON'T KNOW.
THEY ALSO GET 30% INTEREST IN
ALSO SKY IN THE U.K., DISNEY
WILL EITHER GET PART OR ALL OF
IT DEPENDING WHETHER FOX CAN
MOVE THROUGH WITH GETTING ALL OF
SKY.
ALSO GETS TV SATELLITE BUSINESS
OUT OF ASIA, STAR INDIA.
ALL OF THIS PUT TOGETHER IS ALL
ABOUT GETTING ALL THE CONTENT
AND THE DISTRIBUTION TO GET THAT
CONTENT OUT.
DISNEY HAS BEEN HURTING WITH THE
CORD CUTTING THAT'S BEEN GOING
ON.
THEY'RE GOING TO LAUNCH THIS BIG
STREAMING SERVICE PLATFORM AT
THE END OF NEXT YEAR, THEY'RE
GOING TO START WITH ESPN
SERVICE, THEN AT THE END OF NEXT
YEAR, THEY'RE GOING TO HAVE ALL
OF THIS CONTENT TO PUT ON THERE,
BRINGING BACK THEIR CONTENT FROM
OTHER PLATFORMS AND DOING IT
THEMSELVES.
STUART: JOHN, IS DISNEY GOING TO
BE A BIG PLAYER IN STREAMING THE
WAY THEY WOULD LIKE TO BE?
>> I'M NOT SURE AS FAR AS THEIR
OWN INDIVIDUAL STREAMING.
YOU ALREADY HAVE NETFLIX, AND
HULU DOES A WONDERFUL JOB OUT
THE DEAL IS A GREAT VERTICAL
INTEGRATION.
YOU HAVE TO BE VERTICALLY
STUART: WHAT DO YOU SAY, STEVE
FORBES?
>> I THINK THIS IS RUPERT
MURDOCH'S LIBERATION.
IN EFFECT, HE'S TELLING THE
EUROPEANS I'M NOT HOLDING BACK,
I'M GOING AHEAD WITH THE STUFF I
LIKE.
THIS IS GOOD NEWS FOR FOX
BUSINESS AND FOX NEWS.
>> IT'S ABOUT DEFEATING NETFLIX
AND AMAZON.
>> THAT'S EXACTLY RIGHT.
>> COULD DISNEY BUY NETFLIX DOWN
THE ROAD, RIGHT?
STUART: YEAH, I GUESS.
WHO'S MICROSOFT GOING TO BUY?
THEY DON'T HAVE --
>> AND THE APPLES OF THE WORLD
HAVE ALL THIS CASH THEY CAN
NETFLIX IS GOING TO SPEND $8
BILLION NEXT YEAR JUST ON
CONTENT.
IT'S INSANE.
WHOLE LANDSCAPE'S CHANGING.
STUART: OH, RAPIDLY.