1 00:00:03,240 --> 00:00:06,640 Speaker 1: Global business news twenty four hours a day. If Bloomberg 2 00:00:06,680 --> 00:00:09,760 Speaker 1: dot Com the radio plus Globo lapt and on your radio. 3 00:00:10,039 --> 00:00:14,360 Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Handquarters. 4 00:00:14,400 --> 00:00:17,000 Speaker 1: I'm Charlie Pellet. The Dow, the SMP, and NEZ stack 5 00:00:17,079 --> 00:00:19,960 Speaker 1: are all declining right now, with the SMP five hundred 6 00:00:19,960 --> 00:00:23,919 Speaker 1: index slumping four points to eight one. That is a 7 00:00:24,000 --> 00:00:27,280 Speaker 1: drop of two tens of one percent down, Industrials down 8 00:00:27,280 --> 00:00:29,720 Speaker 1: forty four points, also a drop of two tens of 9 00:00:29,800 --> 00:00:33,519 Speaker 1: one percent, and nastank is down five tents of one percent. 10 00:00:33,600 --> 00:00:36,560 Speaker 1: The tenure down twenty thirty seconds, the old one point 11 00:00:36,640 --> 00:00:39,680 Speaker 1: six one percent, Gold down eight dollars the ounce to 12 00:00:39,920 --> 00:00:42,360 Speaker 1: thirteen thirty seven, a drop there of six tents of 13 00:00:42,440 --> 00:00:46,600 Speaker 1: one percent, and crude oil West Texas Intermediate rallying four 14 00:00:46,680 --> 00:00:50,120 Speaker 1: point six percent up too oh eight of barrel now 15 00:00:50,440 --> 00:00:54,319 Speaker 1: forty seven fifty seven after this morning's inventories report. I'm 16 00:00:54,400 --> 00:00:59,400 Speaker 1: Charlie Pellet, and that's a Bloomberg Business flash. You're listening 17 00:00:59,400 --> 00:01:04,040 Speaker 1: to Taking Dock with Kathleen Box on Bloomberg Radio. To 18 00:01:04,160 --> 00:01:08,720 Speaker 1: the names Colin Chapman, Michael Schumacher or Jackie Stewart mean 19 00:01:08,800 --> 00:01:11,600 Speaker 1: anything to you. Well, they do to our next guest, 20 00:01:11,720 --> 00:01:15,000 Speaker 1: Paul Sweeney. He is US director of Research and senior 21 00:01:15,160 --> 00:01:19,479 Speaker 1: media and Internet analysts for Bloomberg Intelligence. Of course, Bloomberg 22 00:01:19,520 --> 00:01:22,880 Speaker 1: Intelligence providing unique in real time research and context for 23 00:01:22,920 --> 00:01:26,319 Speaker 1: a variety of industries as well as markets and government 24 00:01:26,360 --> 00:01:30,160 Speaker 1: factors that affect business. Our terminal customers can access this 25 00:01:30,280 --> 00:01:34,600 Speaker 1: function just by typing b I go on the Bloomberg 26 00:01:34,959 --> 00:01:38,039 Speaker 1: Paul Sweeney, go ahead. I didn't want to give it away. 27 00:01:38,160 --> 00:01:41,000 Speaker 1: What do all those names have in common? Formula one 28 00:01:41,080 --> 00:01:43,360 Speaker 1: race car drivers? Yes, and you're here to tell us 29 00:01:43,400 --> 00:01:46,880 Speaker 1: about the new owner of Formula one, right, it's and 30 00:01:47,080 --> 00:01:50,280 Speaker 1: I think a kind of surprising transaction. Yesterday, John Malone's 31 00:01:50,320 --> 00:01:53,360 Speaker 1: Liberty Media Companies, one of his many UH liberty media 32 00:01:53,400 --> 00:01:57,520 Speaker 1: companies tracking stocks UH announced that it's purchasing Formula one 33 00:01:57,920 --> 00:02:01,240 Speaker 1: parent company UH for about four point four billion dollars 34 00:02:01,720 --> 00:02:05,280 Speaker 1: um and really making a big, big play on a 35 00:02:05,400 --> 00:02:08,320 Speaker 1: sport that is not well known here in the US, 36 00:02:08,440 --> 00:02:12,000 Speaker 1: but it's got a major global footprint. Well, I'm so 37 00:02:12,040 --> 00:02:14,880 Speaker 1: glad to say here you say it was a surprise, 38 00:02:15,040 --> 00:02:17,919 Speaker 1: because I'm going really when I when I saw this, right, 39 00:02:17,919 --> 00:02:22,359 Speaker 1: But of course, UM liberal Media CEO Greg Maffei calling 40 00:02:22,639 --> 00:02:26,919 Speaker 1: it's a formula ones digital operations. That part of it underdeveloped. 41 00:02:26,919 --> 00:02:29,440 Speaker 1: And you know, we have seen like the tennis channel 42 00:02:29,480 --> 00:02:32,240 Speaker 1: is doing quite well. The Sinclair Broadcasting just got them there. 43 00:02:32,320 --> 00:02:34,680 Speaker 1: They want to get to what sixties seventy million households 44 00:02:34,720 --> 00:02:38,280 Speaker 1: from forty seven million. Not the tennis is a niche sport. However, 45 00:02:38,360 --> 00:02:40,000 Speaker 1: it seems that a lot of people are betting on 46 00:02:40,080 --> 00:02:43,799 Speaker 1: taking an audience that is is as my face has underdeveloped, 47 00:02:43,919 --> 00:02:46,120 Speaker 1: and you know, not trying to be broad but really 48 00:02:46,160 --> 00:02:48,880 Speaker 1: trying to make that niche be something strong and powerful 49 00:02:49,000 --> 00:02:51,320 Speaker 1: and possible. Yes, it's it's interesting. It's a it's a 50 00:02:51,440 --> 00:02:55,120 Speaker 1: really is a global uh sporting franchise, much like soccer 51 00:02:55,240 --> 00:02:57,160 Speaker 1: is on on a global basis. It really is a 52 00:02:57,160 --> 00:03:00,000 Speaker 1: global basis. And the issuing interesting thing there is they 53 00:03:00,080 --> 00:03:01,880 Speaker 1: have a you know, they have a television audience of 54 00:03:02,000 --> 00:03:04,400 Speaker 1: over four million. That's a big number globally, but it's 55 00:03:04,440 --> 00:03:07,360 Speaker 1: down from six million about uh ten, ten years ago, 56 00:03:07,800 --> 00:03:09,600 Speaker 1: so they have a big over there audience. They have 57 00:03:09,600 --> 00:03:12,120 Speaker 1: a pay TV audience, but there's a lot of markets 58 00:03:12,160 --> 00:03:14,960 Speaker 1: where they're really underpenetrated from a television perspective. The United 59 00:03:14,960 --> 00:03:17,400 Speaker 1: States market in North America being the biggest, but there 60 00:03:17,400 --> 00:03:19,079 Speaker 1: are also a lot of Asian markets where they feel 61 00:03:19,080 --> 00:03:22,480 Speaker 1: like they're underpenetrated from a television audience perspective. So I know, 62 00:03:22,840 --> 00:03:25,240 Speaker 1: listening to the Liberty folks yesterday, they think that's an 63 00:03:25,280 --> 00:03:27,600 Speaker 1: area of growth. But as you mentioned that, they highlighted 64 00:03:27,639 --> 00:03:31,320 Speaker 1: some of the digital opportunities UM, where really that they 65 00:03:31,400 --> 00:03:34,079 Speaker 1: believe that the long term growth is for this business, 66 00:03:34,120 --> 00:03:37,760 Speaker 1: i e. Let's create a digital distribution platforms, whether it's 67 00:03:37,840 --> 00:03:41,440 Speaker 1: direct Internet access UH, to allow more fans to get 68 00:03:41,480 --> 00:03:44,480 Speaker 1: access to this racing UH and to dry to monetize 69 00:03:44,480 --> 00:03:46,360 Speaker 1: those digital rights in the future, which is something that 70 00:03:46,400 --> 00:03:49,120 Speaker 1: really Formula One, by its own emission, really has not done. 71 00:03:49,600 --> 00:03:53,480 Speaker 1: What happens to Bernie Ecclestone, Well, I think there's the 72 00:03:53,520 --> 00:03:58,320 Speaker 1: current chief executive, Bernie, Yeah, Bert Bernie ecclestone really founded 73 00:03:58,320 --> 00:04:01,720 Speaker 1: Formula one Racing UM as a global business, you know, 74 00:04:01,800 --> 00:04:05,400 Speaker 1: twenty five, third third thirty years ago. But again I 75 00:04:05,400 --> 00:04:07,440 Speaker 1: think UM, I think certainly in the near term he's 76 00:04:07,440 --> 00:04:09,920 Speaker 1: gonna stay there. We'll have to see what happens of UH. 77 00:04:10,040 --> 00:04:12,800 Speaker 1: Liberty Media did bring in Chase Carry. He used to 78 00:04:12,840 --> 00:04:14,760 Speaker 1: be a senior executive at Rupert Murdoch and is an 79 00:04:14,800 --> 00:04:19,640 Speaker 1: extremely um well thought of executive, certainly in the media 80 00:04:19,640 --> 00:04:22,360 Speaker 1: and telecommunications space. So he's gonna be the chairman of 81 00:04:22,360 --> 00:04:24,440 Speaker 1: of this new company, and Bernie's gonna stay as the CEO. 82 00:04:24,560 --> 00:04:26,400 Speaker 1: But the long term, you know, there may be some 83 00:04:26,480 --> 00:04:29,799 Speaker 1: changes there. But because but clearly, I think Liberty Media 84 00:04:30,000 --> 00:04:31,920 Speaker 1: is making a big bet here. I think they really 85 00:04:32,000 --> 00:04:34,600 Speaker 1: view this as a content play. I don't think they're 86 00:04:34,640 --> 00:04:36,920 Speaker 1: necessarily big sports fans, but they necessarily I think they 87 00:04:36,960 --> 00:04:40,800 Speaker 1: recognize it as an undervalued content asset um that they 88 00:04:40,880 --> 00:04:42,640 Speaker 1: believe over the next five to ten years they can 89 00:04:42,640 --> 00:04:45,640 Speaker 1: grow the audience and then they can grow the advertising 90 00:04:45,680 --> 00:04:48,640 Speaker 1: and sponsorship revenue opportunities, because that's really what you're talking 91 00:04:48,640 --> 00:04:50,520 Speaker 1: about when you think about the business of Formula One. 92 00:04:50,560 --> 00:04:55,040 Speaker 1: It's it's global TV advertising and global sponsorship um support 93 00:04:55,080 --> 00:04:58,000 Speaker 1: around the world, and they think they can develop that. So, Dan, 94 00:04:58,160 --> 00:04:59,479 Speaker 1: are you do you think this is a sort of 95 00:04:59,640 --> 00:05:02,640 Speaker 1: a one time sort of deal for them or do 96 00:05:02,680 --> 00:05:05,799 Speaker 1: you think they could look at other franchises, other sports 97 00:05:05,880 --> 00:05:07,719 Speaker 1: that have these parts of the world that just aren't 98 00:05:07,720 --> 00:05:11,000 Speaker 1: watching that much and find a way to leverage that. Yeah, 99 00:05:11,000 --> 00:05:13,440 Speaker 1: I think typically for a John Malone type of transaction. 100 00:05:13,480 --> 00:05:15,159 Speaker 1: The first thing I saw I thought of when I 101 00:05:15,160 --> 00:05:17,040 Speaker 1: saw this cross the tape is he is going to 102 00:05:17,240 --> 00:05:21,559 Speaker 1: use this asset as a wedge to get into other 103 00:05:21,880 --> 00:05:25,719 Speaker 1: global media companies. Um if somebody wants to do uh 104 00:05:26,120 --> 00:05:28,960 Speaker 1: really partnered with Formula one, UM, I think John Malone 105 00:05:28,960 --> 00:05:30,479 Speaker 1: will be willing to give up some equity and a 106 00:05:30,560 --> 00:05:32,880 Speaker 1: Formula one business and exchange for equity in a larger 107 00:05:33,040 --> 00:05:35,280 Speaker 1: global media company. That's kind of been his m O 108 00:05:35,440 --> 00:05:37,880 Speaker 1: to use an asset as a wedge or a way 109 00:05:37,920 --> 00:05:41,919 Speaker 1: to get into an equity ownership position in another company. 110 00:05:42,000 --> 00:05:44,400 Speaker 1: So you know, whether that's a talent company like Media 111 00:05:44,440 --> 00:05:47,240 Speaker 1: Set or you know, something along those lines, one of 112 00:05:47,240 --> 00:05:50,280 Speaker 1: the sky companies potentially, UM, I could see this is 113 00:05:50,440 --> 00:05:53,640 Speaker 1: as a way for him to kind of broaden his 114 00:05:53,680 --> 00:05:57,200 Speaker 1: global distribution platform. Paul Sweeney, thanks so much for joining us. 115 00:05:57,200 --> 00:05:59,880 Speaker 1: He's director of North American Research and Media Analysts for 116 00:06:00,000 --> 00:06:04,480 Speaker 1: Bloomberg Intelligence. Well, going up from forlo and racing to 117 00:06:04,600 --> 00:06:07,400 Speaker 1: a different kind of race now. Back to back appearances 118 00:06:07,400 --> 00:06:09,599 Speaker 1: by Hillary Clinton and Donald Trump at a forum on 119 00:06:09,600 --> 00:06:13,080 Speaker 1: the military Wednesday night, exposed and during weaknesses that both 120 00:06:13,120 --> 00:06:16,760 Speaker 1: candidates had yet to overcome two months before the presidential election, 121 00:06:17,160 --> 00:06:20,040 Speaker 1: joining US now Mark mcquette, government porter for Bloomberg News, 122 00:06:20,080 --> 00:06:23,480 Speaker 1: joining us from Columbus, Ohio. So Mark, they didn't exactly 123 00:06:23,560 --> 00:06:26,000 Speaker 1: face off. They weren't debating directly at each other, but 124 00:06:26,080 --> 00:06:30,360 Speaker 1: they were debating each other from from Afar in a way, right, right, 125 00:06:30,400 --> 00:06:32,919 Speaker 1: I mean they were in appearances, Um, they were the 126 00:06:32,960 --> 00:06:35,160 Speaker 1: same venue, but didn't appear on the stage at the 127 00:06:35,200 --> 00:06:37,880 Speaker 1: same time. One went first and the other followed, UM, 128 00:06:37,960 --> 00:06:40,039 Speaker 1: and they were clearly talking about a lot of the 129 00:06:40,080 --> 00:06:44,400 Speaker 1: same issues. Donald Trump was bringing up Um. Hillary Clinton's 130 00:06:44,440 --> 00:06:47,120 Speaker 1: judgment UM she had to defend her use of a 131 00:06:47,160 --> 00:06:50,520 Speaker 1: private email server when she was Secretary of State, and 132 00:06:50,880 --> 00:06:55,320 Speaker 1: she was calling out his temperament for being commander in chief, 133 00:06:55,320 --> 00:06:58,640 Speaker 1: which was the purpose of the forum by um pointing 134 00:06:58,640 --> 00:07:01,279 Speaker 1: out that he has not had had um much to 135 00:07:01,360 --> 00:07:04,080 Speaker 1: say about what he would do with the Islamic State 136 00:07:04,560 --> 00:07:07,039 Speaker 1: or other specific plans, and that was sort of exposed 137 00:07:07,080 --> 00:07:10,040 Speaker 1: in the questioning in this forum. Hey, Mark, I just 138 00:07:10,040 --> 00:07:12,160 Speaker 1: wondered if he could speak a little bit about the 139 00:07:12,200 --> 00:07:16,840 Speaker 1: actual forum that took place and the interviewer, Matt Lauer, 140 00:07:16,960 --> 00:07:19,560 Speaker 1: because that drew a lot of criticism on the internet. 141 00:07:19,920 --> 00:07:22,400 Speaker 1: It did. This was again it was they were not together. 142 00:07:22,600 --> 00:07:26,160 Speaker 1: Was Matt Lower interviewing each candidate uh individually? And you 143 00:07:26,240 --> 00:07:29,520 Speaker 1: had questions from veterans in the audience as well, UH 144 00:07:29,520 --> 00:07:31,760 Speaker 1: and the Lauer, the host of the Today's Show and 145 00:07:31,880 --> 00:07:35,560 Speaker 1: NBC got some criticism that he wasn't treating the candidates fairly, 146 00:07:35,680 --> 00:07:38,360 Speaker 1: that he was a little more hard on Clinton with 147 00:07:38,400 --> 00:07:41,920 Speaker 1: his questioning, particularly about the emails her email problem, UM, 148 00:07:42,000 --> 00:07:47,160 Speaker 1: and also that he didn't challenge Donald Trump when he said, UH, 149 00:07:47,200 --> 00:07:51,120 Speaker 1: he was opposed to the Iraq war all along, when 150 00:07:51,160 --> 00:07:53,760 Speaker 1: in fact there's evidence that he said he was supportive 151 00:07:53,760 --> 00:07:55,840 Speaker 1: of the war. So he wasn't sort of fact checking 152 00:07:56,280 --> 00:08:00,800 Speaker 1: UH in challenging false statements when he was interviewing Ump. So, 153 00:08:01,160 --> 00:08:04,000 Speaker 1: I mean, but it also sort of underscores the difficulty 154 00:08:04,120 --> 00:08:06,120 Speaker 1: this kind of setting has, and as we look forward 155 00:08:06,160 --> 00:08:08,840 Speaker 1: to the next debate coming out the first debate actually 156 00:08:09,480 --> 00:08:12,119 Speaker 1: later this month, sort of underscores the problem of trying 157 00:08:12,160 --> 00:08:15,040 Speaker 1: to deal in particular with Trump, who you know, makes 158 00:08:15,080 --> 00:08:17,320 Speaker 1: a lot of broad statements. You know, it's sometimes hard 159 00:08:17,320 --> 00:08:19,560 Speaker 1: to pin him down on specifics of what he means. 160 00:08:19,840 --> 00:08:22,520 Speaker 1: And also, you know, this this question of being able 161 00:08:22,520 --> 00:08:24,560 Speaker 1: to challenge something that he says that might not be 162 00:08:24,640 --> 00:08:26,720 Speaker 1: accurate at the time, he says it of so much 163 00:08:26,760 --> 00:08:29,720 Speaker 1: criticism of the media being too liberal, maybe that's what 164 00:08:29,880 --> 00:08:32,199 Speaker 1: he was trying to overcompensate for. I guess we won't 165 00:08:32,200 --> 00:08:33,800 Speaker 1: know unless we get hit him on the show. But 166 00:08:33,880 --> 00:08:37,280 Speaker 1: mark the latest polls. Let's talk about those because they 167 00:08:38,280 --> 00:08:43,000 Speaker 1: they seem to show some very stark differences between Clinton 168 00:08:43,040 --> 00:08:47,080 Speaker 1: supporters and Donald Trump supporters that have been more and 169 00:08:47,080 --> 00:08:50,480 Speaker 1: more persistent throughout these campaigns. Right, we have a poll 170 00:08:50,559 --> 00:08:53,640 Speaker 1: up on our website now that it's called the Purple 171 00:08:53,720 --> 00:08:56,839 Speaker 1: Slice Online poll that's done for Boomberg Politics, and we 172 00:08:56,960 --> 00:09:00,719 Speaker 1: specifically looked at UM voters who do not have a 173 00:09:00,760 --> 00:09:02,840 Speaker 1: high school more than a high school education. These will 174 00:09:02,840 --> 00:09:05,120 Speaker 1: be sort of uneducated voters or at least voters who 175 00:09:05,120 --> 00:09:07,360 Speaker 1: don't have a college degree UM. And we looked at 176 00:09:07,400 --> 00:09:11,600 Speaker 1: that because you know, Donald Trump has made pretty strong 177 00:09:11,640 --> 00:09:16,080 Speaker 1: outreach to sort of working class voters voters in this demographic, 178 00:09:16,559 --> 00:09:20,000 Speaker 1: and the poll showed that he does have very strong 179 00:09:20,040 --> 00:09:22,719 Speaker 1: appeal among whites who have no more than a high 180 00:09:22,720 --> 00:09:27,200 Speaker 1: school degree. He's leading Clinton by like to tht in 181 00:09:27,240 --> 00:09:30,040 Speaker 1: that group. But when you look at the total group 182 00:09:30,200 --> 00:09:34,000 Speaker 1: of UH folks who just have a high school degree, 183 00:09:34,360 --> 00:09:36,360 Speaker 1: Quintin is still ahead just because she has such an 184 00:09:36,440 --> 00:09:40,319 Speaker 1: overwhelming lead among minority voters who don't have a high 185 00:09:40,360 --> 00:09:43,600 Speaker 1: school degree. It's like to ten percent. So when you 186 00:09:43,800 --> 00:09:46,720 Speaker 1: put all those groups together, Clinton still has a lead, 187 00:09:46,800 --> 00:09:49,880 Speaker 1: but it shows sort of her weakness UH in that area, 188 00:09:49,920 --> 00:09:53,880 Speaker 1: particularly white working class voters. And the poll suggests that 189 00:09:53,920 --> 00:09:55,560 Speaker 1: a lot of this could come down to turn out. 190 00:09:55,559 --> 00:09:58,720 Speaker 1: You know, whose voters get to the polls, particularly in 191 00:09:58,720 --> 00:10:01,679 Speaker 1: these key swing states like a Ohio and Pennsylvania. Are 192 00:10:01,720 --> 00:10:04,480 Speaker 1: they minority borders who are more likely support Hillary Clinton 193 00:10:04,760 --> 00:10:06,760 Speaker 1: or sort of the white working class folks who might 194 00:10:06,800 --> 00:10:10,720 Speaker 1: be more enamored of Donald Trump. What about other Republican 195 00:10:11,080 --> 00:10:15,280 Speaker 1: candidates and Hillary Clinton's call for them to disassociate themselves 196 00:10:15,400 --> 00:10:20,200 Speaker 1: from Donald Trump's comments regarding Russian President Vladimir Putin? Right, 197 00:10:20,240 --> 00:10:22,200 Speaker 1: it's kind of follow up from the forum last night 198 00:10:22,280 --> 00:10:25,200 Speaker 1: in New York. Hillary Clinton had sort of impromptu press 199 00:10:25,240 --> 00:10:28,680 Speaker 1: conference on the tarmac before she flew out to a 200 00:10:28,800 --> 00:10:31,480 Speaker 1: rally she was having in North Carolina today, where she 201 00:10:31,640 --> 00:10:36,160 Speaker 1: linked specifically comments that Donald Trump had made about general's 202 00:10:36,640 --> 00:10:39,000 Speaker 1: u S generals. He suggested they've been reduced to a 203 00:10:39,000 --> 00:10:41,640 Speaker 1: pile of rubble, or weren't effective in the Obama administration. 204 00:10:42,120 --> 00:10:45,040 Speaker 1: And praise he had for Vladimir Putin, the Russian uh 205 00:10:45,440 --> 00:10:49,000 Speaker 1: UM leader. Essentially, you know, Putin has said favorable things 206 00:10:49,000 --> 00:10:51,320 Speaker 1: about Trump, and Trump said he was glad, and Clinton 207 00:10:51,360 --> 00:10:54,360 Speaker 1: was trying to suggest that this is somehow unpatriotic to 208 00:10:54,440 --> 00:10:57,319 Speaker 1: both criticize U S generals and praise, in this case, 209 00:10:57,600 --> 00:11:02,000 Speaker 1: an adversary in Russia. Thanks very much. Mark Niquette is 210 00:11:02,080 --> 00:11:05,760 Speaker 1: a government reporter for Bloomberg News, joining us from the 211 00:11:05,800 --> 00:11:10,800 Speaker 1: battleground state of Columbus, Ohio. Thank you very much. You're 212 00:11:10,800 --> 00:11:14,640 Speaker 1: listening to taking Stock. I'm Pim Fox. This is Bloomberg