Any index it is listed on. It is naturally a very heavy weight on the nasdaq. Swingingones backandforth between gains and losses. The same is true of the s p 500, down 3 10 of 1 . Taking a look at treasuries, we see some selling on the treasuries market, the 10year yield going up. The yield on the 30year going up slightly, 2. 88 . About oil. Alk this is fascinating. We finally see a green arrow here. Holding well under 50 actually, i am thinking of rent crude. 473ork crude is down at and rent it is just under 50 a barrel for brent crude. Mark time for our top stories. Shire is making an unsolicited to makensolicited offer a biotech company. Shire says it represents a. Remium of 35 but there is no deal on the horizon just now. Shire says becks also baxalta has declined to engage in substantive discussions over the new proposal. Matt and all cash deal to buy icc health care, representing a ipcs shareice of price yesterday. The man who has been overseeing George Soross fortune will leave to form his own and hedge fund. Bessent will have one of the ofgest Hedge Fund Start severed. He will continue to advise the soros family. The fortuneves, will be overseen by someone he put in place. A matt manufacturing held back by and i in the dollar dampened demand in exports and falling oil prices, which have cut into Energy Industry investment spending. Mark the stocks plunged in greece, but investors say it could have been worse. Athensdropped 45 on the stock exchange. The benchmark fell 16 on monday. Limits on on buying and selling limited the damage. Bank shares were pushed toward the downward trading limit yesterday, 30 . Chairman bill rhodes said the bailout will not work if greek banks knew not bounce back. They have to capitalize their major banks quickly and they have problems. They are nonperforming. Unless you get them up in lending, there is no plan for this to succeed. The Central Bank Says nearly 1. 3 billion dollars has flowed back into the countrys banks since they reopened two weeks ago. Cvs narrowed its fullyear forecast after retail sales slowed in the second quarter. This overshadowed a secondquarter profit report. And remember those tv ads for viagra . Health is dropping dysfunctionctile medication from his coverage. Patients can get coverage for eli lillys cialis instead if they have that issue. Competitor will cover vi correct and cialis in 2016. Mark coming up in the next half hour of the bloomberg market day, investment guru with bad predictions for millenials. What he thinks the generation has it tough. Ist and donald trump keeping a significant lead on his republican contenders, but how long can that lead hold up . Mark and then lobsters. Matt yes. Lobsters making a weekly flight from nova scotia to china. Coming atbig trip is a cost to u. S. Consumers. Mark all of that and much more on the bloomberg market day. Matt pressure mounting on puerto rico after one of its agencies defaulted for the first time. Years of borrowing means that the cash strapped ireland has been pushed to the brink. Mark officials are pushing for what may be the biggest restructuring ever in the municipal market. Joining us, a senior u. S. Analyst with eurasia group. He specializes in puerto rico. Welcome back to bloomberg tv. It is good to see you again. Glad to be here, mark. Mark my colleague betty liu and i were told about the politics in washington what i see happening on the republican side of the aisle is relet ends, relet reluctance, reluctance to move my bill because they want to see more discipline on puerto rico. Talk about this call for puerto rico to be able to file for chapter nine bankruptcy protection. Right,ight guest there is the question of the day, mark. There is a growing cognizance of the plight of puerto rico, but we are a long way from steps taken by lawmakers. There is still 80 sense of unease lingering on the hill by the actions taken by lawmakers in the face of the crisis in 2008 and 2009. Republicans are concerned that dictateate marketplace a solution. The final point, at the moment, creditors, be they hedge fund investors, longerterm mutual moreinvestors, they are organized than those seeking a solution to puerto rico at the moment. Matt a lot of creditors that we have talked to say they have tried to make deals that would work out fine. Epa does not agree to that for political reasons. Could that be the case that these leaders and puerto rico just want to push through this to get bigger cuts . Technically be first default, in terms of only a partial Coupon Payment made. We think they are trying to push through as far as they can, as hard as they can to make it incumbent on investors to come to the table. We have 17 different buckets of debt and different investors and groups of investors and each one. The idea there is one group speaking on behalf of the Investment Community just is not there. I think the puerto rican officials are playing a dangerous game right now. You say a dangerous game. I heard someone describe it if you look at the graphic on our screen, the gross public debt is an normas. At what point when the saidials, the governor has this is unsustainable. We just cannot pay this. Att is puerto ricos option this point if they cannot pay back this debt . Are likely to you see further default from some of the if you call them peripheral buckets of debt and a genuine effort by the government to keep making Coupon Payments on general Obligation Bonds. That will leave them enough money to maintain basic levels of services. You know, keeping the trash being picked up in hospitals open, etc. They get to a point where cannot make payments on the core debt, as it were and if we get to a point where Government Services are starting to break down, this becomes a lot more dire than it is right now. Averagepeak to the puerto rican, they do not seem that bothered about what is going on. You know, services are still running. This is seen as a problem of the government and not the average person living. Moreover, Puerto Ricans can come to the mainland whenever they want. I think puerto rico will have to make a meant on the debt, those that have Legal Protection surrounding them. Make payments on the debt, those that have Legal Protection surrounding them. Matt the island seems like it short, at least under the age of 65 and if you look at the population, it just continues to fall. This morning saying lawyers, architects, doctors have fled the island to the point where now you have mostly the elderly and poor living there. In fact more than 60 of the entire medication is on medicare and medicaid, so the government is very much responsible for the cost that most of these people bear. Right, and that is the conundrum we are facing. Because of the transfers, because of puerto rico being a commonwealth of the united states, they still get medicaid money and Social Security payments. The crisis that would be there otherwise is not. The way you make about the exit as to the mainland is interesting and pertinent. Remit from the island to the mainland is the lowest in the entire caribbean basis. I think that that is because entire families come here. That is exacerbating the problem. You are looking at a dyer Economic Outlook you are looking at a dire Economic Outlook. Mark there are so few funds for the island of puerto rico. They are now in a position to decide, i am going to pay this, but i am not going to pay that. How do you choose . I thinkthink corey they are paying the ones that do not have Legal Protections around them, limiting the ability of investors to sue. I think we will get to the point where they default on those and this becomes an ugly court case and puerto rico will be on the losing end. Boles, joining us from washington. Thanks so much. Matt twitter may be a takeover target. The stop at its lowest price since the ipo. Mark welcome back to the bloomberg market day. I am Mark Crumpton here with matt miller. Matt lets look at the top stories crossing the bloomberg terminal at this hour. Claiming mores than 460,000 square miles of sea 350f, extending more than not a miles from shore. Russia, canada, and mark, and norway are trying to assert jurisdiction over parts of the arctic. To a believed to hold up quarter of the planets undiscovered oil and gas. Matt firefighters in california stand their ground against a growing wildfire. The blaze has grown to 97 square miles. At least 30,000 people have been required or devise to evacuate. And at least two dozen homes have been destroyed. Coverage of the flight for the missing malaysia ticket370 is hurting sales. All of the passengers are presumed dead. Confirm expected to wednesday whether a wing part located last week is from the doomed flight. Its shares plunged last year after disasters with flight 370 and a flight that crashed in ukraine. Matt lets look at apple shares. Shares dropped to their lowest level since reaching an alltime high in february. Our joining us to discuss, senior markets correspondent julie hyman. Thanks so much. The richard reid yesterday apple went below the 200 day the retreat yesterday, apple went below the 200 Day Moving Average. Did. you this is the second straight day we have gone below it. The green racket a line we are showing is the correction the green bracketed line we are showing is the correction in apple shares. I was looking back at the last couple times we have seen apple fall. Below theime it went 200Day Moving Average was 471 timeago, which was the between the two governments and after that, it went down and snapped back. In 2012, we saw a more significant pullback in apple. Matt we have not yet i have on my terminal right now the chart as well. I have the 50 Day Moving Average and think, and green, we have the 200Day Moving Average. Maybe we can pull that up. We have not reached the point where the pink line crosses the green line. Julie what happens . Out if you cant figure it julie its bad news. Matt what are technical traders telling you about the stock now . Becausehere is concern it does not seem to be fundamental really, right . The last times we have seen apple sell off there have been more fundamental concerns about product. There are concerns about the apple watch. These are the same concerns about what is going to be the next big thing for apple. It seems for now the watch is not it. There is also concern about apples importance overall in the major averages. Harold from Standard Poors sent me some fun stuff earlier. He is going back to the record for apple in february, february 23, and since then, the s p i said february 21, it was actually february 23. That graphic is wrong. It is the 23rd. So, it it shows you the the i. T. E of apple in index. If you take it out, it is up. You were talking about an enormous weight. S p, four point 6 of the doubt. Almost everybody holds apple in their portfolio somewhere. Of the dow jones. Almost everybody holds apple in their portfolio somewhere. Mark speaking of Holding Apple itsim cook got 17. 5 of revenue china. Now we are seeing that drop in china. Julie exactly. It is weighing on it to some extent, although the apple bowls are shrugging off the china tech the apple bulls are shrugging off the china tech, saying it will not have that much impact on sales. If you are a regular person in China Holdings stock and the value is less, will that have an impact on your buying decisions . Matt let me take you to twitter for a moment. I know you were watching this very closely yesterday as it fell below the ipo price. There is a story on the terminal maybe it is a takeover target now. Julie alex sherman, who wrote the story, is very careful to point out there is no indication the company is shopping around. Is takingion anyone nibbles here, trying to figure out if twitter is for sale. When you think about the potential buyers of twitter, google, facebook, it would be an enormous acquisition. Not really. Gh, if you bought it all right. 19 billion, the same as whatsapp. That is the same that facebook paid for whatsapp. Julie they would be paying a premium. Matt a premium, right, but i would say it is probably worth more than whatsapp if you look at the earnings power well, who am i to know. Otherwise i would be on the good coast other than over here. Mark oh, wow. Julie our coast is ok. Matt its ok. Julie we dont need you. Go where you will. Matt keep it here. Mark crumpton and i will be back in two. Without julie. Donald trump continues to dominate the field of republican candidates for president. In the latest Bloomberg Politics national poll, trump was backed by 21 of registered voters who identify as republican, followed by former Florida Governor jeb bush at 10 and current Wisconsin Governor Scott Walker Arkansas Governor Mike Huckabee at 7 , and florida senator marco rubio at 6 . Allow onstages to the 10 candidates who fair the best in the national polls. Poll, theomberg undecided rand paul, ben carson, chris christie, ted cruz, and john kasich would make the cut alongside the new Yorker Donald trump. Think mr. Trump will be in the debate. I do not think he cares to matt will make the cut, we are saying. Mark i find this interesting. If you are in announced candidate for the presidency of the united states, i dont think it should matter if you get 1 of the vote. If you have campaign staff, people on the ground, you should in the debates. Why silence a vote because of a poll . Matt then we would have 17 people in the debate. Mark we have almost 70 now. Matt i feel like that is too much. Have we ever had a candidate like donald trump, an outsider with no real experience in come in andfice take a genuinely substantial share of the popular mark we were discussing this earlier during a commercial break and the only person i can think of right now is ben carson, because dr. Carson is obviously going to be taking part in these debates as well and he is a ne neurosurgeon. Matt that is now. The only one i can think of any history as ross perot who did not run as a democrat or republican. Mark yes, he did. Donald trump will beyond. I will be watching on Bloomberg Politics. I will see you tomorrow. Matt stay with us for more on the bloomberg market day. Corey matt welcome back to the bloomberg market day. I am matt miller. Stephen einhorn was not sorry to see David Einhorn was not sorry to see july and. The greenhorn capital fund dropped 9 . Here are he was on the Conference Call earlier today. The market has become truly unfavorable for our Overall Investment strategy. We do not expect to do well when investors shun value stocks for momentum stocks. We have experienced this a few times before and each time the results have been painful. We do expect the environment will improve and we will recover. It was the worst month for the companys portfolio since 2008. Coach said thirdquarter earnings beat analyst estimates. They are revealing products for notger consumers that do have to be discounted to sell. They are refreshing their stores and partnering with new designers to retake market share from competitors like kate spade. Add an extension in subscriber gains to the Third Quarter the total users for sprint at 50 million. Their closest competitor and has 58. 9 million. The numbersprint to four spot among wireless carriers. Disney is reporting earnings after the bell. Investors might want to know about the future online availability of espn, whether it will remain on Services Like tv. Tvs sling and also investors may be preparing for another expected blockbuster release in december. After neighboring accused the farm of substituting balls. Substituting bulbs. Those are just some of the top stories we are following for you at this hour. Coming up in the next half hour the bloomberg market day lobsters are being exported to china in droves and another Healthy Snack companies scheduled to go public tomorrow. The skinny on what to expect from this ipo. Plus, he helped smooth the way for uber to operate in new york and has his sights set on helping other startups navigate bernie regulations. All of that and much more coming up on bloomberg market day. Last week, with youth, health, and a dictation you would think that millenials have it made, but there is one thing they are never likely to have much off, and that is money. One person thinks that it may be time to pity them. He spoke with Erik Schatzker and Stephanie Ruhle this morning. Only 15 of the 18 to 34yearold bracket have gone to college. But you look at what they make and every succeeding generation has made more than the one before and am now. This group is making about 34,000, down from 37,000 people of a similar age made back in 2000. The, the numbers in terms of earnings beat for themselves, but thats only the beginning of their problems. Ago, iie two years spoke with Stan Druckenmiller talking about College Reform and they need to care about it and i do know what to say that it fell on deaf ears, but it definitely was not a priority. They just did not care. They will have to live with the burden of Social Security and medicaid. They will pay for my Social Security and medicare and not have the money to pay for the room. That is far out there. Its probably hard for them to completely process. Theres other stuff happening in the here and now. Student debt. College tuition has gone out to 234 ompared to gone up i want to pull this chart up. Millenials mired in debt. That is massive. It shows how much goes tuition has gone up, but you have the other chart, their debt levels, 71 of millenials graduate with debt, versus 46 20 years ago. Average debt is 35,000. How do we fix that . In order to fix it, you have to figure out who is to blame for the increased who is to blame, broadly speaking, is my generation. The baby boomers. We followed the greatest generation. I think we may be the most selfish generation in that we have not been willing to pay for anything. We have run up big budget deficits and that is part of why College Tuition has gone up, cannot why millenials buy houses. You have entitlements programs sitting out there. We have not funded entitlements for my generation. I think you can mostly blame the policymakers in charge for the last 20 years who have failed to policies that would solve this. Of course, we have a financial crisis, technological changes stephanie hold on. Is that because you say this is taking place of poor policies over the last 20 years, or is that because these millenials are two years old, nine years old, and they do not vote and their parents are not thinking about it . That is true, but every other generation is that, the kids are coming, we got to make sure we take care of them. We have to make sure we leave them fiscally sound policy, a strong economy, and that is not happening. We have left them a really weak situation. Steve, what you say to people who look at the data you throughand say 2009 2013 is the time after the worst economic crisis this country has 50 years, so income levels will be depressed and then they pull up a chart showing unemployment between 25 to 34yearolds, which some people might called millenials versus the national on appointment rate, and is pretty much the same. 30 basis points difference. Insure, but if you go back history i think youll see that millenials are still doing worse than others in the past. Remember, the employee cost 2. 4 the last quarter. Increasehe smallest in history. If you start off at a low income level, you never really catch up. You never make up all of your loss, so by the end of your career, you have had substantially lower earnings and people of your own age you started their careers 30 or 20 years earlier. Steve ratner talking with Erik Schatzker and Stephanie Ruhle. Coming up on the bloomberg market day, feeling the pinch. Why lobster prices are about to soar. Matt welcome back to the bloomberg market day. I am matt miller. Watch out
Consumer protection in financial peril that is an independent industry cannot be fired by the president it is not subject to the appropriations power as they are taking a number of actions that are outside of the public visibility for instance they are gathering financial records or creditcard records of hundreds of millions of americans with no discussion that than i could find and knows scrutiny or accountability for what these agencies are doing because you can see they are independent they are not part of the administration but on the other side you have the federal Communications Commission with neutrality it is widely reported in a cave out of the ftc and was directed by the president may be the president should direct the ftc but then there has to be some ownership of that. So there is a lot of examples of domestic overreach and not even owning that bennett hiding behind the various structures of bureaucratic independence which i think is quite troubling. I do think the problem is one for congress because that is the only place you could have the truly effective check. That is of great transition Congress People have promised they would keep president trumpery team didnt so what realistic can congress do . Who wants to take that . [laughter] walter. I think just on the notion of statutory claims it he says i will not comply with Congress Directs me to you do then that is at the heart of this. Congress can exercise the appropriation is authority if vice and Consumer Authority fighting whoever is the next president the senate should confirm all executive branch nominees for whatever party is. Because they agree with the president s policies i think congress has ample authority if they choose to exercise it trying to make mileage out of claims that a president when they have undertaken to enact legislation so were not in disagreement. I think it is under feet when people say dont worry about a candidate from because of the white House Counsel. [laughter] and i faked i would be more comfortable if i knew who the attorney general would be in making judgments. It is very hard for congress to have these significant power they have all the big powers but if the Congress Wants to Say Something about immigration they cannot place constraints or both houses of congress overruling the department of labour relationship and that is the prerogative but it is very hard to congress for congress to take back so the solution should not be running to court it has weakened the institution when they seek legal redress getting back to the question that we didnt have enough time to insert but yes, yes they might be able to do so but congress through the confirmation it has to wills said its to spousal they are soft waves of insolence better quite profound. Which is unjust the critics of the Obama Administration to do whatever they want it encourages bad to say that is right. So this idea that congress is dysfunctional and there is rhetoric from the things theyre actually doing the president do it didnt do anything for immigration they issued a directive because Copper Congress apprised him to do so not the president. Of course, he did it with the president s approval. There is nothing illegitimate about that but the rhetoric at the time is congress is an acting i have to take the law into my own hands and i understand why there is political pressure to do that but to take a paragraph out of the legal brief since congress will not legislate to exercise discretion discretion blob blob lot to provide or congress conferred upon and 86 to delay immigration. That is not what they do. The Public Discourse is not in terms of the boring Statutory Authority is. And i went cautioned the Democratic Administration to be a little more modest in the way they sell things and to explain they are not acting as the autocratic president. I will stay with you for the next question how do we think about the legal and moral defense ability of drone were fair with the enhanced interrogation techniques of president bush . We have an entire panel here devoted to that question and i think it is probably of mine. Online. This is live journalism. I dont have anything to add everyone in this audience is just as entitled as i am if they take it is immoral or not. So there are many legal questions a whole slew and drones in particular under statutory law isnt executive orders in terms of sovereignty in human rights the legal question does not reduce to a simple question i hope what has come now has been released demonstrate these are hard indelicate legal questions each of which insist upon its own assessment to the people will come to different views so that structural question may not be as important as the moral question but can you violate a statute . When you think it is in the best interest of the United States to do so . I think the answer really does matter is it the be all and end all just a question for the constitutional lawyers. I bet youre ghana say torture is still legal the matter what. And those who think that killing is the worst day and torture admits that. But one significant difference it is no exception whatsoever now there is more arguments under which some people force can be used and the forces the Obama Administration for starting in 2009 with the drone campaign, was contested to say it does matter if this is day then ship the part of what is remarkable is the rules have been contested but it is the conversation about the most elemental rules taking place among the elites with the places that our rich in the administrations were not claiming a basic authority. And the threat of a new normal to be put to an end there has been deep disappointment with respect to global wars but if you go to the legal arguments and even as the citizens are subjected to this claim to power the outcome is very much the same mib are left with this day Democratic Administration it is something quite extraordinary that is a bureaucratic infrastructure that has become entrenched that permits the use of lethal force based on internal interpretations of for based authority that could be cast aside with no review whatsoever. Jefferson powerball once you finish reading all of his books there is a new book out called targeting americans very subtle a nuanced thoughtful but the opening sentences on september 30th 2011 the executive period judge denies States Government deliberately killed citizens of the United States that sets it starkly but he is the first to say how difficult these questions are. One striking thing that i take issue with he is right to if we were to have a more robust public debate for the use of force the result may be more broad and aggressive and not only on the right to to say were wrong that the due process clause applies with the constitutional bill of rights does not apply a lot of people on the lefthand the right have said that i dont think it is right but similarly i feed it is a mistake to think the end of the Obama Administration is the same place at the end of the Bush Administration just like this strategy the he released as today or the day before it is back to the global war on terror and insist it is not only against al qaeda but all islamic terrorist of any kind but basically that we should use force the world over from developing the capabilities and there is a broad theory to keep them from the capabilities before a they struck there is a huge difference s. A. A practical matter from what the war powers thought to be in the authority said this may be the best youll ever get. But i am not saying thats paul reilly insisted is the same as the use of lethal force intervention but the legal interpretation and restrictions recognize there is so much that you could get to the same point when you think about transportation for those forces and i do think there is the real difference from what is authorized but in the terms of the policy debate to itt would have a more robust debate if there wasnt as much continue being secrecy. I think there is too much with those policy issues that may be helped by the release of the playbook i am somewhat skeptical but in our name under this policy people are killed and numbers rigidities have not been disclosed in domestically talking internationally, we dont have the results of investigations with respect to credible allegations the president had recognized and named the killing of a u. S. Citizens that they would receive the results of the investigation but have not done the same with the vast majority of people who were killed in these kinds of strikes and there is a real danger the public debate is not just skewed by i entirely inaccurate and that we as a public are deeply distanced from the realities on the ground from those are suggested to use policies. Next question. Near and dear to my heart, please comment on the increased use of president ial signing statements. [laughter] this goes to walter because he was head of the administration and then he approved of their use and of course, statement dash signing statements when he says the sections of this to statute the big controversy, the bush years until the second term rather Reagan Administration but it has picked up for those ideas they that they were not crazy. [laughter] all the a savage could take something as technical as a signing statement and turning into a journalistic issue. [laughter] first of all, the issue is it cannot be signing statements with the issue has to reread can the president declined to enforce an act of congress to be unconstitutional that he is signing into law. I understand that and i will come to that the when a president does that then he ought to tell people he is doing it and as soon as he signs the al lot. And now all i dont believe in the modern era that it is feasible to say the president s authority to apply with a constitution but his only choice was to veto the omnibus act with the kind of military pay because it and tell me he doesnt know or hast appointed special people larger small the president can say the supervision of this bill which could be construed common a few harvard directing the appropriations act you need to put the jerusalem a and israel on the passport. I have no trouble with that but i think this administration and any administration there is never one ever has or ever will step aside propositions with the authority to enforce laws and the Supreme Court has repeatedly authorize the presidency there for when he does it, the congress is acting whether theyre right to or wrong. But this. Respectful of your but that you should decline to enforce it. But i and directing were acknowledging the its three general and i do not believe that. Is best judgment. Couple but to have a single piece to say it is unconstitutional. There is always the provision with the omnibus bills would assure response . I think the modern practice where the president has a signing ceremony were people clapping he sues a statement to say by the way six of these is unconstitutional. Leased to veto the bill that they had no choice i understand their dilemma with the entire budget and on either hand if you are in congress there is very little downside weekend as you know, they will sign it anyway. With the dubious proposition proposition and from that static perspective to say if he doesnt sign the bill washington will come to its knees. But from a dynamic perspective there will be fewer bills of constitutional problems i will veto every bill. You do that once and then they get the message. Or he could call them into session. I agree. I dont believe he has to think they are unconstitutional but the issue is whether or not he could sign a bill. Were adding a time unfortunately. I am so sorry. And to now leading into the board of directors what do you think of the institution i believe the white House Counsel should be abolished. [laughter] you needed Ethics Officer is somebody to make contracts with the coast guard. And an interest to give the bill would vice it should come from the attorney general and they should get that for the office of Legal Counsel and the person whose advice he wanted those positions i will go up one more is somebody to help interpret these opinions. [laughter] basically we will hear someone who has served even know what should have been abolished. [laughter] [applause] mad as secretary we pledges 72 river delhi get to the next president of the devastates United States. [applause] the Inspector Generals report has alleged misconduct by a workers at the canaveral seashore. And that a House Oversight committee hearing. To our 20 minute hearing. [inaudible conversations] good morning the committee on oversight come together we can declare a recess said in the time for grieving hearing today about the oversight of the National Park service to represent the 100 years it was founded it should be a milestone but instead we find an agency increases. And the public is attending a in record demurs that we are still having problems and to provide recreational opportunities but the park system for the enjoyment education and inspiration for future generations that does not work with so many multiple cases of employee misconduct when it is distracted from its mission. No doubt those tens of thousands of people will have bad apples causing disruption in and heartachepropa of their not dealt with appropriately the problem becomes worse. The department of interiorghligt Inspector General highlights how the agency is failing and protect its employees in particular from Sexual Harassment. Ther warning sho is just another report or another part across the country Sexual Harassment of the river district was so bad that 13 victims directly with to the secretary of then interior but this is in going on for a decade forsu cowardice nonstop there. In the history of inappropriate behavior. And was also founder to make misleading statements that of a letter of reprimand was just days did enough methodeman of punishment. Then instead of firing is a repercussions the service was poorly managed and for over a decade they failed to meet the requirements claims could take years to process as they fail to maintain a program and then to finalize claims from whistleblowers to ziad this regard of the process to tolerate Sexual Harassment and then to hold management accountable for those transgressions and then to oversee the contract hopefully we will get into that as well. From the failures to maintain this ethical standards for overseeing the Ethics Program to its own ethical failures. A book don they failed to get the book deal and afterwards tried to cover his tracks when they follow the rules we cannot expect anybody at the agency turn a b something needs to change than it needs to change fast. We cannot turn a blind eye that the roads the faith in the government to destroyyhard w growl their hardworking and dedicated to working in a hostile environment manageresses they have their back and will take care of them is it creates a culture is cost dial in and should not be tolerated there are ethical problems and lack of plans to deal with the backlogs inconsistency of laws and rules are some of s the things that plague the park service and that is why we have the hearing today. I yield back the balance ofnd my time i recognize the balance of my time. Todays hearing involves a variety of allegations of the National Park service and unfortunately speeding several years plenty thank our witnesses for being here today the Deputy Inspector will be to issue many reports for example, the Inspector Generals office at the Denver Service center andat the improper use at yellowstone National Park. And as a result of the Inspector Generals work we also learned that he violated federal ethics it thro rules when he published a book about the departments Ethics Office even though he does not appear to have benefited financially he shows contempt for the ethics rules when he said hein would probably do the same thing again that is amazing. He would do it again. Because he always pushes the envelope. Said chairman talkedabout route and the confidence ofhing government and that kind of attitude is the very thingla that leads to low morale. And a lack of confidence. And as a result he has now been stripped of his authority at the National Park service and is undergoing mandatory ethics training himself right now. Most of the reports from the Inspector Generals office and this is very upsetting a long pattern of Sexual Harassment and paul style working violence at the grand canyon district the former superintendent received a report in 2013 documenting multipleine whetheru allegations but that report did not determine another investigation was warranted or should be pursued one year later 13 employs and allegations of their abusive behavior to the secretary of interior they refer these to the Inspector General and the office found 22 other individuals kodak reported experiencing a or witness a sexualharassment and hoss style Work Environment. They also found the previous reports of Sexual Harassments womack were not properly investigated orew reported in addition to the last few days the new report the pattern of Sexual Harassment against three female employees against anatioa supervisor at the canaveral seashell or. These rays very serious issues with the right to work kerry anywhere including the National Parks without fear that they may be harassed or to be retaliated against in the equal Opportunity Employment Program to handle complaints of retaliation leading some of the most basic they demonstrate how criticalich with the antidiscrimination act to pass by the vote and finally i want to highlightrial the funding for the rehabilitation for the Memorial Bridge. It was built across the Potomac River with the Lincoln Memorial and unfortunately the bridge had deteriorated. Ed. If a complete overhaul has i it to not begin it ise is slated to be shut down within five years. Cost estimat rehabilitating the bridge will cost 250 million while the National Park service tours rotation budget in 2016 is 208 million this is an issue we need to address and discuss as well. Voraciously look for to the testimony and i yield back. Spirit we will hold the of record five legislative days we will now recognize our witnesses starting with the director of National Park Service Department of interior the deputy Inspector General of the United States department of the interior all witnesses are to be sworn please rise and raise your right hand. Do you solemnly swear the testimony you give is the truth, the whole truth, nothing but the truth . Let the record reflect each answer to the affirmative. We have your written statements but to allow time to appreciate if you limit that testimony to five minutes to be part of the record. You are now recognized. The key chairmen and Ranking Member and members of the committee i am here to discuss the National Park service so i ask the complete statement be put to in the record. Historic rights and those after the American Public and we see record breaking in the haitian and the resulting economic cavity we are accomplishing all of that on a budget less size of houston and when we ask more of our employees more than ever before with although work you do there will manage to protected and maintains by a for freshener were forced. But they hold themselves to higher standards. But by our very picture we make mistakes and cannot stop improper situations and keeping it from half pain again. The vast majority but justp. The point in and then refine their ranks and sometimes those happen at the top. Last year irish men but my goal was to inspire in the gauge more americans and our National Parks. I wrote this book a minute capacity that the proceeds benefit to the nonprofit publisher in the congressionally established foundation provide
Hour and 20 minutes. [applause] thank you very much. Can you times you guys hear me . It is on. Good morning and thank you for joining us inside this airless windowless room on this beautiful saturday morning. We are here to talk about the presidency, scope and limits of executive power a hallmark recurring defining issue of the 21st century for two presidency so far. We are going to move along because we have an excellent panel and im sure all of you are deeply familiar with this topic already. The 10,000foot reminder is that president bush came into office with a very powerful Vice President whose experience as chief of times of staff in the four demonstrations after watergate and vietnam and during the Church Committee had marked him as a strong opponent of executive power and critic of congressional regulation and he used that position of influence in the crisis of the september 11 era to advance, establish precedence as commanderinchief in wartime cannot be bound by the International Law traders and other constraints leading to controversy in areas like torture and surveillance represenative obama the constitutional lawyer came in promising hope and change and it seemed like a corner was being turned but soon found himself also being criticized from both his left and is right for his own strong assertion in various ways of power. He is largely shied away from the commanderinchief override series that was the hallmark of the Bush Administration but in both accepting the war on terror was a real war and dancing use of targeting authorities that was thereby authorized which not everyone agrees with and International Affairs and based after the 2010 Tea Party Movement election that was not a helper of his agenda but rather obstructionist to that agenda and in some cases incapable of acting. He began becoming more and more assertive about executive action in Domestic Affairs ranging from refusing to defend the constitutionality of america to aggressively interpreting what he could do on obamacare to fix provisions and glitches and typos that congress was refusing to fix for him and was famously asserting that he could shield from times from deportation an entire category of millions of undocumented immigrants leading times living to dispute and criticisms from the right. As his presidency starts to wind down we look forward to the third, 21st century post9 11 presidency. An appropriate time to pause and reflect on experiences over the last 15 years and see where we might be going in terms of the future of americanstyle democracy. We have an excellent panel here, a Diverse Panel to help us think through these questions. Im going to introduce each of them before their first question rather than presenting you a bio , to suggest owens. Well go through a couple of rounds here and then we will go to questions from the audience. Im supposed to. A couple of things. Turn off your cell phones. If you want to write, if you want to ask questions raising your hand are going to your microphone the staff, raise your hand and times of a will given an index card and in some point the cards will be brought to me so i can filter out your speeches. If you want to twitter cover this the hashtag is aps 15 and the handle is at aps law. Remember you can get dealy credit for this. Right after this is probably the highlight of the morning the Current White House counsel will speak so we will get out of your promptly at 6 45 so you can see the main event. Okay so lets get going. We are going to start today with tina chomsky the director of the National Security project of the aclu which tries to ensure National Security practices and policies are consistent with the times the constitution Civil Liberties and human rights. She frequently mitigates cases regarding freedom of speech and association challenging targeted killing and torture and post9 11 discrimination against religious and racial minorities. Shes a graduate of Northwestern University school of law. She teaches at columbia law school. Tina why do you kick us off. We have seen through the obama air at arise of the antiobama last that critiques him for continuing and entrenching the war on terrorist bases it. What do you see as the power that the Obama Administration has claimed regarding Armed Conflict zones and with the policy consequences of his decision to do those things. C thank you charlie and good morning everyone. I want to begin by analogy in the last couple of days has sometimes been depressing in terms of conversations about a progressive vision of the constitution but more often really inspiring. I was thinking about that this morning when i was thinking about talking to you and the fact that not only is there not really a progressive vision with respect to a critically important area of four powers but i think the position the founders had with respect to structure in the constitution with respect to war powers times powers was on the verge of being roe can. War powers are critically important because once they are given the executive branch they leave Unchecked Authority for the present to president to wield the coercive power of the state to use lethal force and detained without traditional procedural protection. To ensure that those awesome powers are exercised with wisdom and restraint of course the constitution gives to Congress Perhaps the most fundamental and important obligation it has which is the responsibility to declare war by specifying enemies, by defining clear objectives and setting limits that keep these war powers within balance. I dont think its any secret to any of us that congress has failed to do that and it continues to fail to do that. In the absence of responsible congressional absence action we are fighting multiple wars in multiple countries on the basis of a 2001 aumf authorization for use of military force that was specific with respect to Authority Given 9 11 those responsible for it taliban and core al qaeda, wars in which we are engaged are against groups that have the most tenuous of any connection to core alqaeda and in some cases are to it. That is in the context of traditional Armed Conflict recognized Armed Conflict. Charlie your question and an important backdrop to that question but i think another significant concern is the claims of workbased authority to use lethal force to obtain outside Armed Conflict in countries with which and in which we are not at war. That theory continues to underlie targeting authority in the continues to underlie the claims of authority to keep people detained at one time the mouth without charge or trial. When thinking about how that authority has been yielded by the Obama Administration its important to think about some of the ways in which theres a difference in approach between the Obama Administration and the Bush Administration. One line of argument about the difference in approach that unlike the Bush Administration which claimed article ii commanderinchief authority to override obligations under International Treaties and domestic laws, the ban on torture and wireless surveillance the Obama Administration doesnt do that. It instead has recognized an internal process, careful consideration within the executive branch and president ial authorities through interpretations of international and domestic law as opposed to series that would flout it. There is a substantive problem with that. The process problem is that claims of workbased authority outside of areas in which we are not in Armed Conflict is recognized by most of the rest of the world and interpretations of International Law on the basis of that authority the executive branch claims and in the face of congressional inaction the executive branch claims that it can take action that has critical impact on Civil Liberties, the right to life, the right to liberty, without review by the Judicial Branch or with deference from the Judicial Branch. Im going to cut you off there so we can move along but we will come back. Now i want to move to Marty Lederman a professor at Georgetown Law School are in the bush years. He became famous as a blogging critic of the bush theory expansive theories of times of the commanderinchief over its power with his colleague David Barrett coauthored the seminole book study of that published in the harvard law review and when harvard law review and wen the Obama Administration came and he in he served as the number two official for the first two years word was his turn to grapple with an extremely difficult question raised by the rule of law in the threat posed by terrorism. As everyone knows most famously the wartime issue regarding whether he was it was lawful to target american citizens deemed to be a terrorist operation abroad for his capture was infeasible. He also was involved in reviewing all of the bush or a classified Legal Counsel opinions on issues like torture and pushing to make them public in 2009. He is a graduate of you law school and a former clerk judge of judge of the first circuit. Marty and was wondering if you could pick up on the scene that tina was starting to elucidate and help us think about what do we mean when we say imperial presidency . What are the different categories of things that might lead to a more vigorous framework of law . Thank you charlie and thanks to acs. Good morning its wonderful to be here with this wonderful paddle panel and i hope our discussion will tease out some of these questions and what do we mean and the rhetoric of imperial presidencies. I do want to take issue with the precipice of the panel. I dont think theres any thing resembling an imperial presidency and i dont think it was during the bush and certainly during the Obama Administration so for starters i would like to sort of frame how im thinking about these things in three ways. The first is the point that they truly imperial president would feel very much unbound to do whatever he or she feels is in the best interest of the nation and i think the book power constrained ackerley describes how even in the bush thats not remotely true. No president can an actor put into place 5 or 10 of what he or she would ideally do if there were no congress and there were no press and particularly if there was no oversight process between the executive branch and congress which does impose a much more powerful picture than the public understands. But also i think theres a big difference between the sense of authority that the Bush Administration exercised and what the Obama Administration is unwilling to do. Thats point number one in point number two that matters for purposes of what goes on in the executive branch. Whether you feel constrained by treaty or International Law and statute in constitutional constraints really plays it different the mattock role in how decisions are made. Your book charlie demonstrates that in better than any Single Source i can think of in the third on to make his these issues for the future depend somewhat not only in times in what these menstruations executive branches have done but perhaps more partly how they are perceived and described in the press. If everyone goes around claiming theres an imperial presidency and the bush and Obama Administration are set to the same and the president ultimately can do whatever he or she wants without constraint i think that is corrosive. I think it leads to executive branch thinking where many officials within the executive branch is thinking there is this kind of liberty and expansive authority where there truly is in. Give me three examples where obama would do something he would want to do by the law. No to times was a tiny one. The most there was a table in the front. Ask with how his life would have been different if there were no statutory constraints in place. In terms of negotiating detainees it would have been radically different if there were no congressional oversight in congressional strains and the like times like. Everyday executive branch officials. The guantanamo transfers. No goint, transferred you mention the prosecution. Serious and 2013 is among the most important examples i think. There was a lot of pressure on the president inside and outside the to use force unilaterally. Without Statutory Authority and in violation of u. N. Charter against assad for very good reasons. He was slaughtering civilians with chemical weapons so a sympathetic case and ultimately according to his interview with Jeff Goldberg he found himself, he surprised many in the executive branch by deciding not to do so. He found in separate cooling from the idea of an attack by International Law and congress. Thats a pretty big decision but let me. Times. Last. Are my five up . Just for framing purposes and we get to that things later if you think about this in terms of our wellknown youngstown framework whether the controversial things the Obama Administration is done either without Congressional Authority or in violation of statute in category 3 in the first category i would say the first few days in attacks in iraq and the initiation of the liberal libya operation. Those are search and the executive Authority Without authorizations that are more modest than the bush that last modest than what tina might propose. In terms of disregarding statutes to two big examples are the passport case where the court affirmed the presence powers to not put israel on the the in the bergdahl case which is a hard and difficult case. The statute required there be a 30day notification to congress before making the trade of the taliban to remove the taliban prisoners in exchange for bergdahl and they didnt abide by that. But with those exceptions the vast majority of the cases of claims of imperial presidency are statutory interpretation. Name e. Ray is a professor of george the incidence galea law school not the Antonin Scalia Antonin Scalia school of law. She teaches constitutional law legislation. She proves he served as an associate white House Counsel during the second term of the Bush Administration and she has written about the nature of a pity in constitutional law push testified as republican witness in the Supreme Court confirmation hearing for justice sotomayor. Choose a graduate of the university of Chicago Law School and a clerk for justice thomas. We have been talking about Foreign Policy, National Security abroad and we have been talking about commanderinchief override very but a lot of the controversies have been about domestic law and whether president obama is being too aggressive in interpreting the scope of power delegated to him by statute. Can you talk a little bit about immigration fights and the obamacare interpretation five and so forth, how legitimate are the interpretations put forward by the Obama Administration and have they gone too far in your view . I think following up on what marty said a lot of this is viewed in this administration turned on statutory questions especially in domestic context and i think theres an interesting aspect to this. Instead of taking broad claims of constitutional power things have been pushed into the realm of statutory interpretation. Once you are talking about interpreting statute, its much less interesting to the public. Theres a lot less Public Interest in statutory interpretation. Talk about getting to the nittygritty of a particular law and it seems like something for lawyers and not something for the public. The American Public i think still has strong views about what the constitution means and they believe once we talk about the statutes people lose interest. President obamas at has been smart in making the shift because to the extent that in some context they would like to ask with farreaching executive power in the domestic context much better to phrase it in statutory interpretation as opposed to constitutional interpretation because you simply get a lot more notice for those issues. One prominent example is the immigration context where the executive has a tremendous mass of delegated authority to act on matters of immigration and im not suggesting the president has necessarily exceeded his power but when you see what is so troubling so troubling in the way that so much authority has been delegated to the executive is hard to figure out what authority he might have under the statute pdf to go back and look at the very statutes relating to immigration to know whether he exceeded his authority. That is perhaps very troubling for individual liberty and when someone who is a lawyer or law professor would take a lot of time to figure out what the president has succeeded in his authority. Its also a problem with congress. Congress has given up this authority and perhaps its not surprising that the president has made such farreaching claims about the authority. That feeds into the fact that executive discretion is quite substantial. A president can have a lot of discretion to implement the law and so want to have a broad delegation from congress can bind with executive discretion is a round in times in which there is not a lot of flaws to hang onto. That can be very troubling for the expansion of government power i think as a whole. Even if you yourself are sympathetic to this white house and not stating which team you are on that can you help people articulate reflate what is the case if you personally are not sure that is the correct way. In the immigration context . The times effects of this are very wellknown that he has their number of serious supporters said that millions of people need not be deported and they are not subject to immigration laws. So there is really a fence that this is an overreach and im sympathetic to that view. Its not faithfully executing the law. Its hard win down what it is when you have such a large mass of statute of conferring authority. Maybe well that he is exceeded a lot but perhaps not. You have to look at the statutes and i think its interesting the Supreme Court has added a question to the case about the care cause, shifting it from the statutory question to a constitutional one which may well be its interesting because there are no cases where the Supreme Court has analyzed what the president rule is under the k. Claussen indicated they might be about to do so. Let me jump in here to keep things moving along. The four times fourth speaker is walter dillinger. Hes a partner to best known as a former acting solicitor general during the clinton administration. I was always much more excited about the fact that he was the head of Legal Counsel where he wrestled in particular with more power issues that arose in the 1990s. He wrote some seminole opinions about the bosnian interventions and that belief among other things he was the most important voice in articulating the notion that there are interventions the all short of war in a custom channel since in terms of the nation duration of scope and some wars do not need prior national. Vultures are graduates and former clerk to justice black and has talked taught at duke law school. Walter what do you think a president , im sorry what should the congress do when confronted, lets stipulate that the present is gone too far. We have seen increasing trend of that one chamber Congress Filing lawsuits against this president. We have seen states recently jump into the courts. What do you make of this and where are we going . First of all i think what congress and the state should not do is run to the Federal District court when they have a disagreement. This is particularly true congress. I think when you talk about statutory interpretation its important to realize that i think the reason for moving to the statutory claim is not because he gets less noticed but its a far less aggressive assertion of authority. The constitutional claim cannot he trump if the president had claimed a take care of authority to violate statute you would h
Wonderful equal day. Its also going to meet at now in texas is going to put some rain and wind usually charge of the snow. Right in the temperatures ranging anywhere from 31 here at fox 8 forecast the will talk more about the times and each individual thing is noted that coming up in just a few minutes. Nice start on our thursday morning. Theyre nice and drive unfortunately local clinics have snow for sew for everyones going to see the in about bridge the righthand side of your along well a quick four minutes 44 i 90 everything is running near or over the posted speed. Back to you. Now winter so that. Good at morning. You should offensive or tickets i thought some tickets and since an estimated new tickets are you can you have to go back and get more tickets for the drawing on saturday. The same day the cavaliers express consent of the johnny self. Stacy fry is life outside first to this fishers around it did say that hes in the third quarter. Johnny manziel he the Season Finale against the pittsburgh steelers. Hes weekend in vegas. Video of the alleged event. A deal with number mr. We all hope a Reporter Asks lebron if he uses and it everything is devices he says it is a goat are often he goes himself Johnny Manziel car pulled over for expired tags on his part. Facility no, for from the have officially retired from the passage the supports professional conduct to step down yesterday she also promises to never again to election. They have been finishes this piece in court staff. And defending john k shoots both. His the citys first africanamerican to be elected us that mayor shes also the first female mayor after more than two decades of macys at midway mall earlier it is closing 15 workers will be affected. Some of them offered other positions. Theses released a statement reading in part the family we maintain a fully of the great stores in the right places a the new caramel macchiato from dunkin donuts. Let handcrafted layers of espresso, milk, and a caramelflavored swirl uplift your mood. Indulge in a hot what it calls an unusual seismic event coming from north korea this morning. He says it doesnt seem to fit it might cause of involuntary there is a miniature either and look at action against him. This is over that it expensive is consumer his authority at home is seriously undermines international nonparty airports one more thing adventure is that facing they seem to say that his refutes seeming to be able to stand that very dangerous that us. They cause sniffer for that area of north korea to see if they can prevent any detections of nuclear residue and get some testing depth to see if it was indeed an age when nothing have in other news this morning for texas state trooper who pulled also that is not facing perjury the truth could face a year behind bars in the meantime the texas to put your safety now starting an effort to finance here lesser in july after trevor was caught onhim yelling at her she herself three days later she questions whether she has taken her life she is been seen on Surveillance Video was recently hitting a North Carolina store on monday she is to scoop up 581 30th and every 20 to 30 sure is working with the man during the highs they are considered armed and dangerous congress for is sending effort to president healthcare in different planned parenthood it was 24180 along party lines no democrats supported both republicans voted no hes those 2 feet the the house well short of the votes needed to override that the tofu after truck crushed they say the tractortrailer driver lost control is he was trying to press her car and went off the side of a french the driver was not seriously hurt. Your time not is 5 21 a. M. Weather and traffic is just ahead. Whats being done to locate a 3 start County School from a big dunk in the pic night from lebron james is the cavaliers february looking to avenge the good morning its almost 5 30 a. M. Temperature of 30 degrees each and every morning or the last of the overnight lows as much higher we have rain and transition back over the lake affect and the storms early next week to have a better chance of as the front goes nuclear after a purpose its late saturday into early on sunday heavy rainfall is from where its headed into the 30s this might with early tuesday the first with lake affect through into thursday june 5 defenses as the temperatures climb in the nosedive early next week is the overall forecast is going to be more winter like starting late sunday and continuing through that next weekend. Its going to be the coldest passes abruptly late february. The search is on this morning and canal fulton for a missing piece of history. They are former students who lives in Elementary School there in the 80s can help. Pulled in on Market Street is said to be demolished theres no one can find a time capsule that commemorate for within a new way in the back of the field. There back up as a room not put no one seems to know an exact location. The 30 yearold sure is a must. Sits there to find it we do have an interest in preserving our histories for taking the time incubated our resources in finding the time caps off i think its important to the children up from the ground. Have followed suit said so far nothing theres still time to dig fifth face the racking up until next month 56 00 a. M. Is your time. Weather and traffic just ahead. Its a giant jackpot and its still growing more than half Million Dollars powerful is there is thursday january 7th 5th circle 30 degrees outside. Look at your forecast from scott
The tenyear yield up to 2. 12. Well get ism services in an hour. This is very big day. Well start with disney. Disney shares are rising precip precipitously premarket. Higher revenues at its theme park. Joining us for an exclusive interview the chairman and ceo bob iger. Great to see you. Thanks jim. Good morning. I feel like i have to do a congratulations. I think you are going to hear a lot on your conference call. Marvel franchise, parks and resorts, which were the ones that drove the earnings . Parks and resorts and Consumer Products had great quarters. All our business did. There were numbers that werent comparable. The studio had a great quarter. Last year this quarter we had frozen particularly the video. Media network side we have extra costs on espn because of the college playoffs. All our businesses had a strong quarter. From a percentage increase parks and resorts and Consumer Products led the way. How much is the tech you added, new things you put in during the down turn and how much is gasoline . I think we have a great business in that we offer the consumer a grade product and experience. Its great service, great use of intellectual property and great pricetovalue relationships. I dont think you can look at gas prices or whats going on with the dollar, Currency Exchange issues. I think you just have to look at what is the product we are offering. What is the experience . How much in demand is it . I think clearly over these years, demand for our parks and resorts experience not just in the United States, but globally is increasing. Consumer products i dont think it started here. Ive got star wars coming in q4. What are the merchandise plans there . Can they eclipse the movie . We are not going to make predictions about merchandise. We certainly have grand plans for star wars merchandise. You are talking about the number one franchise in the world in terms of merchandise. There hasnt been a film release since 2005. Weve already seen interest in this film starting to generate increased interest in the merchandise for this film. The film p is seven months away. I think you can expect the number one franchise in the world is only going to strengthen in terms of value, particular lion the Consumer Products front. Right now, what we are mostly focused on is making a great film. I cant wait to show it to the world. Bob, its carl. You spent 15 billion on marvel pixar, lucas film. People snickered a long time ago. You said on our air recently you are fairly confident those were good deals for the company. Is your appetite sated for additional m a on the studio front . We have a great hand on the studio front. And as a company in terms of our intellectual property. Disney was strong and adding pixar added to the strength particularly on the animation front. They turned disney animation around. Marvel a phenomenal brand, a great franchise. The success of marvel in those films since we bought it has been well beyond our expectations when we purchased marvel in 2009. I talked about lucas and star wars. The best is yet to come. We have six star wars films in the works. There will be three released between now and may 2017. I think as a company, weve got a great hand. We dont really need more. We clearly demonstrated interest in intellectual property and ability to leverage it across our businesses over time. Over many territories around the world. I dont want to suggest whether we are sated or not. There are no holes to fill. Bob, its david. During this quarter, verizons fios came out with a new plan to tier various offerings for its video customers. Sports obviously always figures prominently in these bundles, but in this case it appears they may have run afoul in agreements and reports suggest you guys at espn may undertake legal action against them. Can we expect more of these type of different tier offerings when it comes to the bundle . Are you going to get or have to get more litigious when it comes to these companies violating your programming agreements . First of all with regard to verizon, its specific. We believe they violated our agreement, and therefore, we have taken legal action. We are certainly willing to work with various distributors to come up with packages that are of value to their consumers and also continue to provide value for us. I dont think this is the beginning of an era of litigation between the programmers and the distributors. I think theres a lot that needs to be said and considered as it relates to the bundle. I dont want to sound like polyanna but i dont believe the bondle asundle is dead. We believe the bundle basically provides great value to the consumer in terms of choice and price. We are in a new era of great Consumer Choice and Consumer Authority where there has been a shift. Consumers will demand more flexibility and customization. Weve been at the forefront offering that and being willing to offer more. Technology we believe is friend not foe, both to the programmer and to the consumer. I think the key in terms of bundles is how much value is the consumer getting . How much choice and at what price . Is the navigation good . Thats critical. User experience is going to get more important. The last thing i want to bring up because a lot has not been said or considered about skinny packages when you unbundle broadband, broadband costs are going to go up. A lot are buying the expanded basic bundle are getting broadband bundled with that at a bargain rate. When you go to a skinny package, you are going to have to pay for broadband separately. Thats going to be expensive. I havent seen a skinny package that in my opinion creates great value to the consumer yet. We are open to discussion about that. You raised the issue of cost of programming. I didnt. Obviously, this matters a lot for sports. Is there a cap . S is there some way you would be able to pit these leagues against each other . Be able to say we are not going to pay more for nfl . Well say to the bcs, this is all well do and find new sports people watch because we are not going to tolerate endless increases in the price of sports no matter what because we need Live Programming . We bought some things aggressively. The College Football championship is one more recent example of that. We also passed on some packages. We feel at espn weve got a great hand in terms of programming. We dont believe anybody comes close. Thats enabled us to drive ratings and advertising growth. Also to continue to drive sub fee growth which creates huge value and hits the bottom line in dramatic fashion. We did say, by the way, that the cost for espn programming would be higher this first half of the year because of a new nfl deal. The nfl wild card College Football playoffs. You are not going to see costs rise in the second half of the year for espn the way they did in the first. Espn has also extended multiple deals over the next decade. So the next balloon is going to be due to the new nba deal which kicks in in 2017 2018. Beyond that you are not going to see the dramatic Cost Increases weve seen the last few years. Espn costs are going to flatten out. We are not going to buy everything. We cant. Well buy what we believe the viewer wants and we believe will create value for the company. When i talked to investors who are almost uniformly happy if they owned your stock any level any period of time. They talk about disney becoming basically a Consumer Discretionary company a la procter and gamble and say it deserves a higher multiple given that. Do you agree with that . We are Story Tellers first. If you look at whether its espn and their coverage of sports you look at our movies television, we tell a lot of great stories. People like stories. They demand stories. They like to be entertained. They like to be informed. I dont think that we are similar to procter and gamble except in the collection of great Consumer Brands that we have. I think our product is consumed in vastly different ways than people will use tide or crest tooth paste, as a for instance. I think there is some similarities because of the brand value, but i think there are a lot of things that are not like the big Consumer Products companies. Last question. You talk about not necessarily willing to buy all sorts of programming. I saw you were in there buying a huge amount of your stock. Youre in there on the days the stock goes down arent you . We are going to get more specific about that on the call but weve been buyers of our stock over the last number of years. We actually looked at returning capital to shareholders in a variety of different ways. Clearly, we had a great run in terms of our stock price. Weve also managed to continue to increase the dividend over the years. Another big increase this past year. Weve been buying back our stock. On top of all that weve been investing in our businesses and acquiring companies. We think we managed to deliver a great blend in terms of how weve returned capital to investors. I dont know thats necessarily going to continue in the exact fashion that it has. We talked about acquisitions for instance. I think this companys Free Cash Flow is likely to continue to be robust. Decisions how we return capital will have to be made on an annual basis. I guess dividend increases and share buybacks are going to be part of that. Thank you so much. I know its a tough schedule today. Bob iger chairman and ceo of disney. Congratulations on a quarter that really pleases pretty much everybody. Good to see you, sir. Thank you. Iger was named ceo march 05. Stock is up 300 since then. Four times the s p. I like the viewer who wrote in and said bob iger can bench press you with one hand. Probably can. When bob comes on mad money, how many people do you think are in the greenroom when hes there . Nobody. Just sits there. Why . Because hes a humble man, despite the fact he doesnt have to be. Very little drama with him which i think we are accustomed to now you forget the eisner years. You dont forget them where there was a lot of drama. When you see this company, it makes me think, i know we are all supposed to index. No one is supposed to own individual stocks. I listen to the mumbo jumbo from people who say you should be a passive investor. First thing i ever saw was snow white. This is probably one of the most obvious stocks in the world to own as long as this man has franchise after franchise. Star wars comes up next. Shanghai the year after that. There is more marvel in the pipeline. The star wars merchandise, every one of these retailers is claimering to have the right merchandise in it. What can i say . This is why you own stocks. You own stocks because of disney. They have Something Like 80 incremental margins on Consumer Products they put out that come along with the things Like Star Wars or frozen. Its a heck of a business. Interesting i thought his willingness to engage on the bundle and talk about the potential value. That is something we mentioned a number of times as we try to navigate the changing landscape of viewership and are seismic changes going on. That idea that there is something economical about the bundle and if you start to tier thin packages you are going to have to pay more for your broadband. Your question, your follow up is the key one. What about sports . Its so expensive. How can it continue to get more expensive . Or does it start falling off these bundles . We didnt ask him if he expects to face google in a bidding war. We didnt get to a bunch of things. Not enough time. Stags will be on the call. Now hes coo so he will be on the call. Offline not from disney but other people in the sports exec world. I hear weve got to lock these up long term. Google might decide to have all the rights. There are rights issues left. The bcs i thought was brilliant. Move bcs to espn. Suddenly they have to take bcs. Can you really afford not to take espn in a bundle . In an unbundled situation, step back for a second. Darn that, was a great quarter. You are up against frozen dvd up against comparisons. The next one we have 180 million lease domestically against what was probably the most exciting sports weekend i can recall. Right. Well done. Second biggest weekend ever after the first one. When we come back this morning, a lot more to come. Cisco chairman John Chambers who is stepping down as ceo after two decades on the job. Amid signs of a turnaround at olive garden well talk about darden ceo eugene lee. And jeffrey smith. A little bit of weakness as we kick off this tuesday morning. More squawk on the street. Netflix receiving an upgrade to buy from underperform. Taking a positive view on their longtime subscribers citing its rapidly growing portfolio of original target. Doubling its price target to 7. 22. Jeffries initiating tesla with buy ratings saying concerns of china sales are overblown. Netflix stock is 568 today. They take their 2016 numbers from 196 to 432. If you want to eat crow you might as well eat just a whole crow of the tree of crows we saw in the movie the birds. This was an extraordinary reversal of how a guy feels about a stock. 722 target used to be 350 target. Underestimated the impact of original content. Content is king. Thank you very much. Wow. My favorite. 2016 estimate 1. 96 goes to 4. 32. Is that all . Thats all the increase is . Thats all. Saw something he likes apparently. I would have called this is wrong. I would have said wrong. Wrong. I dont think the words we were wrong is in the upgrade. Misjudgment . The tesla call, jeffries initiates with a buy. Theyve done prop surveys that show the company could sell 500,000 cars by 2020. Their upside case 4. 50 on the stock. Its all about the battery. Worries about china overblown. This is the kind of thing that shorts, there is a short story out here. We know this from tesla. This says you are going to hear a repetition of the previous quarter. There were people betting on elon musk. Demand concerns remain overdone. Lets say if they deliver this quarter, there will be a lot of people very surprised. Moving more aggressively toward selling used teslas as they need to as they come back from lease and things of that nature. Seemingly putting a positive spin on that as though that helps to broaden demand for the car. Perhaps that is the case. Average selling price going up. Also ties into the idea used cars are worth more than we thought. Elon musk the battery halo from last week, even though people were saying this is vapor ware analysts want to believe, they very much when you initiate a buy and talking about huge ebitda people dont regard it as an earnings story. Jeffries saying this is a big earnings story. Shorts out here will be saying jeffries, please give me a break. They are talking about model three launch before 2017 commercial fleet. Production ramp faster than expected. You hear wait a second. Ford makes more cars in the time that i said this than they will make all year. The fact is this is a loved stock by some people because the car is such a blast. Well get cramers mad dash and countdown to the opening bell. Stay tune forward our live and first on cnbc interview with ciscos chairman and outgoing ceo John Chambers. One more look at the premarket. More squawk on the street straight ahead. Here at the Td Ameritrade trader group, they work all the time. Sup jj . Working hard . Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. Little less than six minutes before the opening bell. Time for mad dash. Estee lauder. Strong dollar be damned here. It didnt matter. These guys have a product people want. U. S. Was strong uk was strong europe was strong. When you charge a lot of money for cosmetics and perfume and can get away with it this is what you get. This is a very well run company. Should be thought of as the king of consumer packaged goods, even though we dont talk about it enough. Macys Biggest Profit Center is perfume. Its a global franchise. Asia very important for this company which is run by an italian gentleman, i believe. Yes. When you looked at colgates quarter which is a Terrific Company and the stock goes down when they report when you look at clorox not as much international, cocacola does okay. These guys have all the same headwinds as everybody else. When you have a superior product you can get rich people to buy, it doesnt seem to matter after currency. It says something about what people really want. Dont forget ralph lauren did not deliver. That has historically been what we thought was the high end. This company is hitting on all cylinders. Its not talked about enough. It will be. Its going to be the blue chip for Portfolio Managers when it comes to consumer packaged goods. People were blown away this morning. Thought they might miss. Well keep an eye on estee lauder. First well speak with ciscos chairman and ceo John Chambers. He will be stepping down this summer. 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