Control these assets. We will dig into the implications for netflix because they potentially stand to lose possibly the most if fox and disney pull together and emphasize hulu, their direct competitor to netflix. Alix Lisa Abramowicz is joining me, by the way. Fox. Y will be buying the deal looks to be about 52. 4 billion. Disney will assume 13. 7 a foxs debt. This also means that disney will by foxs 39 ownership of sky and bob iger will remain ceo through 2021. A look at whats happening to the stoxx premarket. Disney up 4 10 of 1 . The news was widely expected. Take a look at fox to see what shares are doing. By about a few percentage points. Fromt to get more reaction gita. What is your initial reaction to the deal . This has been in the works for about a month or so. All of these rumors and news reports. Disney instrumental for for its streaming strategy. Gives them a lot of heft in the marketplace. A lot of ammunition in terms of a deep library of content. Increases negotiating leverage with tv operators. Makes them a Formidable Force in a traditional media marketplace. Alix we are giving more details. 52. 4 billion for this acquisition. Can you give us a sense of what your take is on the valuation that we have . The numbers seem to suggest it would be about a 28 a 28 12 fore to disney and the assets that stay at fox. It is a substantial premium to what fox has been trading at. The majority of the valuation is for the Regional Sports networks. About 22 of them. This enables disney to become a dominant force in the sports programming field. Alix disney acquiring assets from fox for 52. 4 billion. Deal closing at the end of june 2018. Fox will seek to complete the plant purchase for the rest of sky. 13. 7 will assume about million billion dollars of debt. Lisa lets get more details on from thebeen disclosed deal. As go to bloombergs media reporter in london has been following the announcement. Joe, what are the details we know so far . U. K. ,nterest in the disney will acquire foxs 39 stake in sky. The detail that fox will continue with that transaction in the u. K. And disney would buy sky. Iger staying on until 2021. Questions about the future of James Murdoch, current ceo of fox, whether he will have a senior position at disney. More details expected soon. Alix before we move on to the Succession Plan, lisa what a culture clash. What we know disney will have and what we know fox will have at the end of this. Joe we know disney will acquire the movie and tv studios fox has. Assets like star. News, fox keep fox sports, and from the fox broadcast network. Disney would acquire foxs stake in hulu. Alix the question being that we wind up having James Murdoch moving over to the disney management and will he be a de facto successor to bob eiger . Blockbuster the potential for that. That is conceivable. Disney has a fantastic session plan this Succession Plan all along until internal candidates left. Now, with this transaction, it is conceivable that James Murdoch moves over to disney. Tremendous expertise in the International Areas in the Digital Space where it disney wants to beef up its presence. Its possible that after 2021, James Murdoch might emerge as the eventual successor. Alix what kind of culture clash does that bring . Particularly in the u. K. When it comes to roger ailes in the u. S. And also spying on some etc. Ers, hacking, is my daughter looking at daisy duck and saying i want to watch that movie. What do you do with the optics of that . Always hadey has this clean image and i think that is what is going to carry through. One of the reasons why fox preferred to go with disney, rather than comcast or some of the other Companies Interested in acquiring it. Apart from the regulatory angle. I think disney will prevail. Lisa lets get a sense of what were waiting for today. From bobe hearing eiger in the 9 00 a. M. Hour on bloomberg television. What are the questions we need addressed today . Joe weve also got a Conference Call coming. Much more comes out of that. I think investors would like to what kind of faces at thesney moment. How fox will help with streaming services looking to roll out more and more. The questions to be asked about company strategy. Where does James Murdoch fit in all of this . Alix checking in with you throughout the next couple of hours as we get more details. Headlines. Terate disney will be buying assets from fox for 52. 4 billion. If you take a look at some of the interesting parts around it, 21st century fox will spin off fox broadcasting. Disney expects fox to seek complete purchase of sky and the sky deal will close in the end of june 2018. Rob iger staying on until 2021. Lisa we should also note we are getting breaking news on teva. The fed going to cut about 14,000 jobs. 25 of their workforce. We will bring news on that as well. Alix in the next few hours we ,ill be talking with bob iger do not want to miss that. Disney stock up 3 10 of 1 . The other breaking news at the top of the hour came from the boe, nothing really happened. Sterling, pretty much flat on the day. They wound up keeping Asset Purchase Program at 435 billion pounds. Their Corporate Bond target at 10 billion pounds. Not a lot of information. So everyone zeros is on board withholding rate steady. Fromohnson joining us london. Help me understand what was the key in this meeting. Die the headlines probably dont tell you a lot about what is happening but i suspect behind the scenes there is a more serious debate happening about what direction policies going to go in. The bank pointing to a gradual appreciation in rates over the next three years. The market price in two hikes during that period and the bank to dissuade that idea. I talk a lot the debate behind the scenes. Inflation and the u. K. Running at 3. 1 . Hawks on the committee that argue as a result the policy should be tightened. There are dubs arguing there are doves arguing the opposite. In the brexit story the bank has highlighted the fact that the deal done, moving on to phase two, does provide an opportunity to push the crashing out scenario to the lefthand side of the distribution of outcomes. That probably is a factor that the bank is relieved about. Im not sure what we had from the bank of england really tells the full story about the debate thats happening behind the scenes. Dated pushinglong the curve flatter than recently. Something that the market is latching onto at this point. The inflation story and how quickly or slowly inflation rolls over at this point, probably the best clue as to which way the bank will ultimately go. A gradual story or more fierce story coming from hawks. Alix walk us through what happened with brexit conversations. Parliament tying theresa mays hands as she goes to brussels. Walk us through how that plays in. Four guy hours the parliament has exerted its sovereignty effectively forcing theresa may to ensure that the parliamentarians in the u. K. Have a vote on the final deal. That is a proper vote. That kind of means there is a checks and balances factor that comes in on the ultimate deal. Inres another big boat which theresa may hope to codify the data codify the date. Backsa may, having a push from within her own party. This is something coming from the tory party. The rebels coming through and voting with the labour party to make sure parliament has its say at the end of this process. That probably makes a harder brexit less likely. Alix definitely no one wants that job. Appreciate you breaking down the headlines, guy johnson. Interest Rate Decision at 5 10 of 1 . Modest tightening over the next three years. Ofthat buildup a buildup pressures and they know the progress and breads talks. A conversation around the scene is much more to more dramatic as they factor in whats happening with brexit. Sterling, flat on the news. Lisa im looking at teva. Breaking news that recently crossed. Tebow to cut about 14,000 jobs as well as suspend its dividend, about 25 of its workforce. To put into perspective what this company is, the Largest Pharmaceutical Company that supplies generics in the world. More than 30 billion of debt. Very closely watched company from the debt perspective. It has been trying to shore up its Balance Sheet after making a number of acquisitions it has failed to grow into. It has seen its leadership change. Taylor teva with job cuts planned, 25 of its workforce. Alix the other story with disney, drink by fox, assets for 52. 4 billion. Fox will keep its broadcasting as well as some of the real estate and you wind up having disney take on its stake in sky as well as hulu. Marvel, avengers, the movie studio and all the content as well. Both stocks higher in premarket. To closingl adding at the end of june of 2018. Bob eiger says he will stay on with disney until 2021 present ugly to smooth the transition of the acquisition. Where does James Murdoch know and where does fox go after this . Asking these questions to bob geiger, joining us in the 9 00 a. M. Hour. This is bloomberg. Emma this is bloomberg daybreak. Resident trump is promising the average american a giant tax cut and says it could be ready in time for christmas. The president made closing arguments for tax deal republican leader signed off on yesterday. Hes had a family of four earning 75,000 a year would see a tax cut of more than 2000. Theresa may has suffered a serious Brexit Defeat at the hands of her own party. Lawmakers voted to change brexit legislation to guarantee parliament votes on the final deal to leave the european union. That raises questions on whether making get enough support for her vision of brexit. May is headed to brussels for european summit. , the government has unveiled a 19 billion Stimulus Program to private sector groups. The money will be used to support Housing Construction and fee waivers for small businesses. The government hopes it will create jobs. That is your bloomberg first word news. Alix the First Central Bank or one of the bent one of the Central Bank News comes from the boe. Holding pattern is the theme for the bank of england and you can see that reflected in what happened with sterling. Flat on the day. The ftse down by 1 10 of 1 . The boe meeting rates of 5 10 of 1 . Modest tightening over the next two years. Buildup of domestic inflation pressures at how much can they say with the brexit question over their heads . Joining us for moore is the silly cerami the sea lisa rir vassili for investors you cannot separate the boe from brexit. I think there was hope that because of the progress they made, the doe might be more hawkish. They did mention in the statement but it really was not very strong. Hikes remain in place. We dont expect the next hike until 2018. Not much to get excited if you are here. Lisa lets talk about things that are pretty exciting in the central bank world. We talk about the bank of england, the ecb, we talk a lot about the fed yesterday but we got a lot of decisions from the switch National Bank the swiss National Bank. Surprising markets and saying they were going to possibly hiked rates sooner than expected before the end of next year. What is your take on this . A global synchronized tightening the people worried about. Vassili theres a huge difference from 2017. We came into this year thinking the fed is going to hike, Everything Else is a snoozer. 2018 will be the year when different Central Banks move at their own pace. I think you have to pick your winners and losers here. , centralperspective banks in scandinavia are underpriced in terms of how hawkish they can get. Lisa do you think that the chrome is going to gain more . Vassili we are bullish on the region and swedish currencies as well going into 2018 because an overlookeds part of European Growth story. The currencies that have their own Central Banks so they are not tied to the dovish ecb outlook. Lisa there was somewhat of a different take with the rate hike not doing enough and going far enough to stave off the inflation they have seen. The lira fell against the dollar. Do you think the pain that has been ongoing is going to continue . Vassili sometimes you hiked rates to keep the currency stable. I think turkey is not the currency we particularly favor into 2018. We got to see more hikes. Mexican central bank is probably going to hike rates. Is it just responding to the fed . What is the motivation . Think thereeral, i is safety. That year will be a whole new game with Central Banks having more reason to tighten policy. Who are you watching most closely at this point . Were getting a lot of decisions, a lot of noise. Whos going to be the bellwether for this . Vassili that is a great question. The ecb is one central bank that i think matters a lot. Obviously if we start getting any inflation surprises, you look at the way european rates , 70 basis points, you got to start thinking if theres any inflation surprises in europe european rates can move even until might not be hiking 2019. I think its not just about where you start, its about how far and how quickly you can go. The dollar is not benefiting it isrom the fed because largely priced in. The cycle is mature. Focusing on cycles that are still kind of nascent. Alix we wind up getting the ecb decision today. A survey of Bloomberg Survey of economists and says the ecb is going to taper bond buying to zero in the Fourth Quarter but they wont make that decision until midyear. Vassili we agreed there is no point precommitting now. Alix going to have to answer questions about tapering. Hes avoided it at every conference and mario draghi cannot a they have not talked about it again. Vassili hee has become pretty good at describing things differently. Is no point for no point in precommitting right now. Growth is good. 2020 inflation forecast will be 1. 8 which is somewhat optimistic. Quite positive for the euro. It is about growth for the moment. Alix what does that wind up doing to spreads . If you take a look at the twoyear spread, how much wider could Something Like that get . Vassili if you try to trade the facts on the basis of twoyear spread you wouldve lost or should probably. I think the fed is reaching a stage where unless the longterm set point starts going up there is a cap on how much u. S. Rates can move. A lot more potential for european rates. It is not just the short term rates its about the longerterm rates as well. The 10 year bond yield at 35 basis points, that has quite a bit of potential. Deep in moreurves than the u. S. Curves it will be positive for the euro. Lisa i have to bring up some euro area data we got overnight. Manufacturing prices increase at. He fastest pace on record the price that consumers pay, youre not seeing the actual Consumer Prices and the manufacturing. At some point, dont you have to the ecbcp is good is going to have to respond to this . Vassili its a global phenomenon. The response of inflation to growth has not been the same as its been in the past. Central banks are trying to figure out why. The flatter phillips curve, competition, technology, those questions have not been answered yet. Lisa we were speaking with one jpmorgan strategist who says he could foresee a scenario in which the ecb would lift deposit rates before the end of next year. That seems highly unlikely based on where markets are pricing things but do you think that is a possibility here . Vassili what the ecb has signaled so far is no rate hikes until the end of qe. We know that is not going to happen before the end qe. I would have to be some kind of large surprise in the first half of the year that would accelerate the qe tapering and that would enable them to hike. We have a hard time seeing that. If they are hiking in 2019, when you look at the twoyear rates or longer rates, they should start reflecting that this year because theyre capturing this period when the ecb will be hiking. Alix it we see them buying less sovereigns and more corporate debt . Vassili we think most of the cuts will be in the sovereigns. I think the parameters were largely outlined in october. I dont think there will be any surprises on that front. Alix great to have you to break it down. Serebriakov. The news of the morning. His knee buying assets from fox for 52. 4 billion. Some of the details we continue fox looking ate annual revenue of about 10 billion despite the fact that they are spinning off assets. Keeping some of the tv business. Bob iger staying on until 2020 the acquisition close. We will see about sky, how sky gets approval. Lisa also in the cards, James Murdoch, what is his role going to be . Alix we will ask. Bob iger will be joining us at 9 00 a. M. Eastern. Alix this is bloombergs a break. Two hours before the cash open in the u. S. European stocks flat. Awaiting the ecb Decision Just about 15 minutes time on the heels of the fed hike yesterday where you mount up seeing Short Covering in the treasury market. If you change up the board and take a look at the tenure market, yields moving higher about two basis points. The theme of selling continues in the bond market. Also taking a look at sterling after the boe did nothing. Currency does nothing. Yields moving lower by three basis points. Busy centralbank day. It lets get an update on whats making headlines outside in the business world. Flash,n the business about te liminate willva eliminate about 14,000 jobs. Suspending its dividends. The company is struggling with 35 billion in debt. A change at the top of ubs costs Wealth Management group. Unit cost chief is stepping down. Martin