. >>> you just heard comcast dropping its chase to focus on sky. europe is mixed 10-year near $2.88. china firing back at comments larry kudlow made at delivering alpha yesterday. steve bannon also not pulling any punches on trade we'll make sense of what all the comments told us yesterday >>> comcast officially drops its bid for fox saying it will instead focus on the acquisition of sky we'll tell you what that means for the players overall in the media industry >>> some big tech names on the move this morning. we'll break down what's driving all of the moves and there are a bunch of them. comcast kicks us off david has that to start us off >> not a surprise, guys. we've been talking about it here we spent a lot of time on it on monday when we reported it was highly unlikely comcast would follow through on any attempt to compete with disney in terms of a higher bid than the $38 deal that disney already has to acquire those fox assets making it official this morning, interesting -- i've tried to make the point -- that neither side of course can tal

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they are expecting comcast to come back, but i think they before fox came back in. it could be any day that they are expecting fox to come back -- comcast to come back. we know that brian roberts, the sky, andeo, is keen on with his broader battle, perhaps comcast does not need this and does not need fox as much as disney does. comcast may be willing to come all of the firepower for sky. the pawn in the contest is sky. in idaho, what is the best guess ge? was there any resolution coming out of that conference? rebecca: comcast has until friday to submit its bid for sky shareholders, so there is some time pressure there. if they need to come back and make a statement in the next couple of days. there is not a firm time limit when fox puts his offer to sky shareholders, there is 46 days to respond. murdoch has made a statement to brian roberts, and he will probably be bumping into him in the hallways of the conference that could make it a little bit awkward. isk: are you saying it feasible that comcast could win control of sky, but disney could win control of fox? min

and if disney gets fox, that would create an asset that would then be somewhat owned by comcast, if comcast actually won sky. jason: that was amazing. alix: did you follow that? jason: i was trying to draw it in my mind as you said that. alix: comcast stock is also up in free-market. there was a lot of conversation on this, that comcast did not have the balance sheet like disney did. and the other part of the story was comcast was ultimately trying to dig up the price, rays of the price to put the screws to bob iger a little bit. mike: this is obviously a distribution play, but also the content play. i think back to earlier in the week when we had results out of netflix, netflix plays into this, amazon plays into this. it is a new world of media companies, as well. it will be interesting to see, because we have the early market reaction, and it will be interesting to see how the commentary comes out. whether disney says anything on the record, or whether they talk to people behind the scenes. alix: to recap, brian roberts jumps out. comcast will not be pursuing for the purchase of fox asset

i think comcast is ready to move forward. whether they own 69% or the entirety of sky, they would like to own all of sky. the thing for comcast and sky, the reason that deal makes so much sense for them is access sky gives them to the international market comcast is a cable company the cable business is just here in the u.s. while the entertainment business, nbc universal is more global comcast really sees the advantage of diversifying cable assets overseas. we'll see what happens david makes a good point about potential for comcast and disney to swap a stake in hulu for remaining stake in sky, giving disney a chance to really develop hulu as a full owner or nearly full owner and giving comcast a chance to do more with the entirety of sky. the question is whether these companies, assuming everything goes forward as expected would like to remain in business as partners, whether they'll trade off assets so they don't have to deal with each other as partners as well as just competitors. >> morris, when we were in the throws of t

and comcast will come higher, but the question in comcast's mind will it come high enough that disney would say we're done that's unclear the timeline in the uk, comcast has to actually come with a live bid by friday given 28 days will pass since it got approval disney would have to do nothing. and it could not respond and this thing eventually will move to an auction process. but that could be a ways away. 46 days after both bids are live and so we're talking about sometime down. why am i saying this because still the belief, i think, in the comcast camp there's a possibility to resolve sky in a rapid manner in an inability, therefore, to also decide whether or not to make that bid counter bid for the fox assets what is the latest you can bid for the fox assets when you hav a july 27th shareholder meeting? probably the 20th of july. will it get done prior to that who knows. is there a scenario comcast will come with a number and disney and fox will say we're done and they will declare peace even thr though there's no collusion between them yeah and is it possible down the road that t

would like to buy sky comcast is probably going to get the sixty one percent that disney isn't going to get so they're going to have two companies that are going to have to work together or or here's a solution that's being bandied about hulu an o t t of course you know hulu that provides programming as well through streaming and. abs and internet etc this thing already owns thirty percent approximately comcast own thirty percent fox owns the rest so this is going to wind up owning over sixty percent of hulu so comcast will keep their thirty how about comcast gives their rest of hulu to disney disney owns all of hullo and the thirty nine percent of sky goes to contests comcast will own all of sky now that sounds complicated that is not there because it was much worse and more complicated before they did for comcast dropped out of fox yeah i know the hell are they are but you know you did a great job of untangling it for us and it to us you know when you talk about all these companies and you mention hulu you know how and when we look at satellite radio and streaming and and all the c

for comcast to win. it had to offer more to fox shareholders then disney would. so disney could win at a lower price. that wasn't because of the merits of antitrust. antitrustom an perspective, there was no difference between the comcast and sky bids. if the administration was intent on opposing comcast, it would take longer for them to win and they would have to fight it in court. that would have an impact on the value that fox shareholders would get. comcast are up almost 3%. jonathan chaplin, thank you. let's check in on first word news with kailey leinz. first time applications for unemployment benefits in the u.s. have not been this low 1969.joblessr claims unexpectedly fell last week by 200 7000, in sync with other reports showing employers are competing for limited pool qualified workers. the trump administration is reviewing a plan that allows drugmakers tell out rebates in exchange for keeping drug prices high, all to ensure pharmaceutical managers pass along those savings to patients. vladimir

this is in comcast's wheelhouse. comcast can create more value here and moreover, disney has really great outcome here from a financial point of view if it doesn't look to ainquire all of sky. it can basically now that the government required it to sell off the regional sports channels, and presuming it can sell the 39% of sky back to comcast, it could end up here with essentially no more leverage than it has today after completing the fox transaction and that's a great outcome for disney in terms of comcast, they need this asset more. it gets them out of the box of being a u.s.-only company. and it is an asset that they can do more with. >> but tom obviously comcast very much wanted the fox assets. they saw the value in being in india. you mentioned international presence they wanted something beyond the u.s. and the fox assets would have gotten them there. hulu was also valuable longer term, are we looking back and say comcast missed the opportunity to make a strategic pif oh on the it needed to make in order to be

fox is lining up financing to potentially top comcast bid for sky. emily: i do want to ask you about another story the "new york times" obtained a recording a town hall in which the new nth executive is speaking with hbo's and insisted that hbo needs to make more money and scale its la netflix, is that possible? >> they want hbo to make more content. really, if you think about it, hb omp is competing with netflix and you have to have enough content so people just don't watch "game of thronse" and when the season is over and then re-up again. you have to have a steady diet of good quality content to keep people on a streaming service different like a cable company if you want to cancel, it is a pain in a neck. that hbo t realizes does a lot of quantity but increase quality. emily: will they have the bottomless budget? >> at&t has not put a number on how much money they would like hbo to spend on original content. they said they would like to see them spend more but we haven't seen the details of how much they want to spend. netflix has very deep pocke

so you have the fox bid from comcast. in talking to the media moguls in sun valley, the folks here in sun valley say that that ruling definitively in favor of at&t's acquisition of time warner is really seen as an endorsement of the potential for deals to go forward. we heard that from david zaslav, and steve case who is the epic aol-time warner deal 20 years ago, and i think everyone here will be shocked by this decision to appeal especially now a month after judge leon's ruling. >> this has to be viewed as a setback to win over fox. with the shareholder vote, the disney-fox shareholder vote on the 27th, there's not that much time to figure this all out. >> well, i think you have to break apart what's going on in the fox, disney, comcast, sky sort of battle/triangle right now because it really doesn't impact sky it is a regulatory company it could make fox more interested in sky because it could indicate that there could be regulatory roadblocks for comcast in its pursuit of fox. of course, disney already has the doj app

it could be higher than the number that comcast offer or it could be between what comcast and fox offered yesterday. >> really complicated. >> reporter: all eyes are on sky. >> it's a weird formula. any way, thanks julia. >> reporter: yeah. >> it's dark out there. let's get to ed bastian in here. delta approved a 15% dividend hike and it expects its fuel bill to be $2 billion higher this year. stocks trading higher on this news. ed, i think one of the things that the street likes is that you're really not lowering guidance for the year, the guidance is looking for 5.74 and that's the upper end of the bracket that you gave for the year even with oil prices much higher than they were previously, so i think they're saying, delta's still going to get it done, is that your view >> thanks, joe. we had a really solid quarter. demand is very strong. $12 million in revenue. our highest revenue in our history. in the month of june we had six of the ten busiest days of delta's history. while fuel prices are up and it's causing short terms pressure on earnings, the long-term outlook is very strong an

and the thirty nine percent of sky goes to comcast comcast will own all of sky now that sounds complicated that ain't nothing because it was much worse and more complicated before they did for comcast right out of fox yeah hello they are but you know you did a great job of untangling it for us and it to us you know when you talk about all these companies and you mention hulu you know holland when we look at satellite radio and streaming and and all the consolidation taking place i mean are we simply is it inevitable we're going down this road to bigger is supposedly better have we lost local content forever holland well the timing couldn't have been worse for big corporate radio to dumb down the local programming it was the perfect storm i pod was the shiny object back then and now we have sirius x.m. what you mentioned pandora streaming downloads there was never a more important time for broadcasters to do something unique to be local for years we have seen warren buffett buying up small town newspapers a lot of that's driven by high school sports he has content you can't get anywhere els

the analysts are looking at models and saying comcast has enough leverage. enough debt power. they have to go higher they're not thinking like business people. they're thinking, you know, this has got to be a bidding war because it has to be that was dealing the idea you had two irrational players i worked for brian roberts but he's not an irrational man bob iger is not an irrational man. they want to do deals so they're more international in scope. there was no reason to think they were two gun slingers and everybody had to lose. >> meanwhile, david, thank you for that we'll continue to watch the story. you see the price action on the media names. we did get a picture as the one on one between the president and putin is over. they've been joined by their advisors the press availability not too far from now we get back to eamon >> reporter: that's right, carl. call it just about two hours and change for the two leaders to be behind closed doors. one on one remember the translators and the two world leaders in the room for the early session. the one on one bilateral they're cal

the president's just landed in the uk dealter, comcast, twitter, netflix all in the news today. 10-year around 2.86% futures point to a sharply higher open as china trade wars ease >>> the president, brexit and a british royal visit, president trump arriving in london moments ago to visit the uk for the first time since taking office >>> comcast raises its bid for sky as britain gives the green light for rival fox's bid in the battle for that major european tv prize >>> stocks are set to open sharply higher a day after that sell-off due to trade war fears ending a four-day win streak consumer prices up .1 in june, from year-ago levels, prices have increased at the fastest pace since 2012 and on core, since 2008 >> we tried to figure out at this juncture how many rate hikes we're going to get and a number like this is consistent that we'll get more rate hikes will it really help? i don't know you see underneath in the crawl airlines come by the airline numbers are all weaker that's directly related to demand cedar fare which i know may not be representative but that's a huge theme park o

obviously they would -- comcast would love to keep this just as a comcast transaction. how much more debt can they afford to take the balance sheet? how much get are there shareholders prepared for them to go into? that is the question i think. tom: matthew, big you so much. on the look with matthew latest media wars, and the delicacy of diplomacy in brussels. will continue that discussion with robin niblett. your nasal be shaking meeting with the director. graph gth the bloomberg tv . today, including a graph today, including a graph on rinaldo and juventus. yay! tv , or whatever. there is. stay with us on nato. this is bloomberg. ♪ ♪ "om: "bloomberg surveillance." from our studios in london. ofh us is robin niblett chatham house. ino with us is john fraher our london studios. i want to go to that stark headline of the chancellor speaking about how she is personally experienced. we forget she went to karl marx university and eastern germany -- and eastern germany. how has that been in her political life? >> i think what that gave her is a very deep and uniq

on comcast getting that 51% majority stake. was comfortable with disney were fox owning the 39% stake fox still owns in sky and holding onto that. realistically, it is probably unlikely to see disney hold on to that stake and comcast probably would want full control of this distribution business to do what it likes with european business. customersbillion around five countries and integrate that into comcast's broader media empire. guy: you wonder if a deal on hulu gets done in the u.s. as a result of some asset swap. interesting to see shares in sky going down one point 4% on the back of the news coming out that comcast was walking away. -- 1.4% on the back of the news coming out of comcast walking away. thank you, rebecca penty. a new round of trade tensions has sent the copper market in a downward spiral. it links back into the china narrative we have been watching. here are the details to discuss what is happening. annmarie hordern. anne-marie: still, a six-week of declines after president trump's dispute with china, the nu

they always know comcast has the best cash flow rerating of comcast as an international player in cable which is something people like a lot more than current. >> any chance disney comes back with a higher bid and we get into a bidding war with sky? or you really think a detent has been reached >> i think a lot of this has been signaling and i think it began with a ac that we reported on monday that we also reported it was highly unlikely comcast would come back for fox, but ak, the fox file to their proxy where they added this language about disney needed to get consent and it might not give that content to increase any download for any further increase in the bid for sky. they're at 14. comcast is at 1475 the quote from roberts congratulating disney is more signaling. i was able to actually call bob iger and read the statement to him this morning he didn't know about it. so he said, "thank you for the call you can report that you read me the statement and now he's telling me this is an exciting development. we will now focus on gaining regulatory approvals, closing the deal, and integ

it has been described as a battle or dial in the media industry but us media giant comcast has said it will no longer attempt to buy 21st century fox, and in the bidding war with rival disney. paul blake says comcast drop the bid for fox to focus on buying a large stake in the british broadcaster sky. two motivations to drop the deal, the first simple one to get your head around is disney, the rival in the battle, won conditional approval which comcast was yet to receive, so that greased the way for disney to go ahead and acquire 21st century fox. the second one gets more complicated, the various other mergers happening in america and how they are playing out in court. that they are playing out in court. that the case outside this deal, not related to this, was at&t and time water and comcast was watching that. at&t have the judge's approval to ta ke at&t have the judge's approval to take over time warner and that gave comcast confidence to bid for 21st century fox and now the government is appealing that case and that is what means comcast has given pause to and they have said this is

comcast business outmaneuver. . liz: if your wallet has been feeling a little lighter after stopping at the gas pump. this is not your imagination. hard fact here, nearly 30 states have seen a jump in gasoline prices. highest retail prices in years raising concerns about a potential threat to the u.s. economic -- how many times have we mentioned potential threats in this show. this one tends to actually take money out of your wallet for every penny that the price rises. price of regular unleaded gasper gallon seen a 35% increase since november of 2016. how worrisome is this to consumers, in the thick of, i guess, jeff flock, the summer travel season? reporter: i don't think they're worried so much. economists are worried this takes money out of the pockets if they continue to rise, and that takes the bloom off the economic rose. ironically of course today, we're talking about this on a day that oil has the biggest loss in 13 months, down about $3, i think it's 5% is the decline today in oil for other reasons. you lo

lisa: comcast gives up the fox chase, valley out of its bidding war with disney, allowing comcast to focus on the crown jewel, sky. is disney willing to let it go -- and mark our next guest says no. joining us is richard greenfield. .lso, ed hammond i want to start with this idea of are we going to see disney get what they want back to its purchase of fox, or are you went to see fox lose the bidding war with sky and disney ending up with a less attractive deal with fox? >> disney has already had to give up on the regional sports network. all 12 regional sports networks, they agreed with the u.s. government they are going to divest those assets. that is a significant chunk of the fox asset that they are not buying. going to go through with this transaction and allow , who hand over sky. which eiger called the crown jewel. that it is more important to go direct to consumer. the biggest threat to consumer asset is sky. to give up on sky seems hard to believe that is actually going to happen. disney has been 1400 four sky. comcast is the winning vendor -- bidder. fox and disney don't nee

>> comcast for now. some in the market are showing more sign of aggression and willingness to get sky asset. they haven't knocked fox out of the water. mark: it's not huge premium to fox. is there a knockout price? some investors are greedy and they want much higher. what's realistic? >> the shares are trading about 15 pounds. perhaps an offer in that region. the question is how much fire do disney and fox comcast have in this battle. we will have to say. what was the significance in the u.k. today approving the fox sky bid? does that have any bearing or not? >> the market had pretty much come to the conclusion that clearance was going to happen. the previous culture secretary said he was happy for the deal to go through. it has taken 19 months for rupert murdoch to get that clearance. he a very controversial figure. what would you expect the next move to be? from what i understand comcast does its bid won the backing of skies independent directors. it is lining up financing. do we know what sky's thinki

comcast business outmaneuver. liz: john mccain's vice presidential candidate sarah palin claims british comedian sasha cohen duped her into what she's calling an interview and she's saying that cohen was dressed up as an american war vet in a wheelchair and that he invited her to talk about american war veterans. she's now saying, "out of respect for what i was led to believe would be a thoughtful discussion with someone who served in uniform and sat through a long interview of hollywood disrespected sarcasm but finally had enough, literally, physically removed my mic and walked out. i join a long list of american public personalities who have fallen victim to the evil exploited sick humor of the british comedian enabled and sponsored by cbs showtime. " taking a look at the stock cbs ending the day in the green up 1 % let's bring in wounded warrior retired staff sargent joey jones. great to see you, sargent. this is for sacha barron's new show on cbs showtime, coming up in a week or so. what's your reaction to wha

woudisnd try to buy from comcast the 30% stake in hulu it owns. for now disney is focused on fox. bob iger saying our enthusiasm for the acquisition and the value it will create continued to grow as we continue to note 21st century fox's stellar array of talent and assets we are pleased with today's news and our focus now is completing the regulatory process and moving towards integrating our business next up, a week from friday disney and fox shareholders vote to approve that $73 billion deal julia boorstin, los angeles. >>> shares in comcast and disney ended the day higher after the announcement fox closed lower this morning sky shares here in the uk are also very slightly below the flat line. to talk in more detail about that decision, let's bring in zack fuller from midi research what is driving the sky bidding war between comcast and disney >> in either case, this is one day going to make a fantastic scripted drama in and of itself. we had this saga go on for the last few years i think it was 18 months ago when it was first launched it has al

comcast business outmaneuver. guy: a minute to go until the start of cash trading this wednesday morning. you need to know the overnight. asian markets have been smashed lower. taking a look at japanese equities. oil initially moving lower this morning. climbing back a little bit. oil is down. metals are sharply to the downside. keep more broadly an eye on what is happening with the commodity story. we softened a little bit over the last half hour when it comes to futures in europe. watching burberry this morning. keep an eye on what is happening sky's stock and airbus. let's look at the ftse 100. the market makers going to push us lower. ibex is going to deliver similar numbers. tory, the italian markets have been under pressure as of late. let's show you what is happening with the imap. the bloomberg 500 is representative here. these are individual sectors into the story is looking remarkably week -- weak. we don't have much in terms of morning.ut there this every sector is training low. basic resources down by

comcast increases its offer for sky for $34 billion. move is on murdoch and in.r ceo's settle first to our top story. china tones down its trade amid hints china and u.s. trade officials maybe talkg to figure out to again. additional tariffs could go into weeks.in a few is the biggest tech impact? >> it's semiconductors and telecom equipment. challenges for lot of tech companies, tech hardware is completely entwined with china. some of the subcomponents like metals, things that go into pieces way down the chain. so hard to extract that for all these companies. even though we haven't seen the tariffs on phones and typical products you be concerned with, those components are purchased by everybody. all hardware companies are taking a bit of a hit if these to kick in. >> we haven't fully figured out the impact of the trade tariff drama. we've been operating from an assembly standpoint in china for so long. been such an efficient gizmos. meet technology giz chip making industry expanded. made in the united states anymore. extricate yourself

comcast business outmaneuver. streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots. and it can be included with your internet. which could save you hundreds of dollars a year. plus, get $150 dollars when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. it's 2:00 p.m. in new york. i'm scarlet fu. lisa: i'm lisa abramowicz. welcome to "bloomberg markets." scarlet: we are live from bloomberg world headquarters in new york over the next hour. hero the top stories we are covering. market tension, from the commodity correction to the following yuan to trump's criticism of the fed, top strategists weigh in. commodities under pressure again in the face of lingering global of theisputes with some pain reflected in earnings from america's top aluminum maker, alcoa. tesla tumble

comcast will come. liz: oh, my. charlie: so doj anti-trust is not taking any chances, they believe there's a good likelihood that comcast is going to up its bid for all of fox's entertainment assets and we understand they are continuing to review the potential anti-trust implications of that purchase, if it does in fact happen. if it doesn't happen, it's a moot point they just move on but they are not taking any chances and from what i understand internally they are anticipating a higher bid. does that mean it's definitely going to happen? of course not. last minute brian roberts could walk away do something different but from what i understand they're looking at the anti-trust implications of comcast buying all of fox's assets that are in play the ones allegedly going to disney and possibly if comcast bids on the regional sports networks. it's interesting. there's been stories comcast is lying up buyers for the fox regional sports network in anticipation of buying all our assets and knowing they would

and does the and and try to untangle that weird web for us well comcast of course finally just recently dropped out of the bidding for fox disney will be buying the assets of fox

>> sky investors expect comcast to come back. , the market thinks this contest isn't over and comcast will come back and the price be pushed back higher. manus: comcast will have to want to take on debt if they want to counter this bid, don't they? >> exactly, and this is where the two battles come into play. the wider battle between comcast and disney for fox, which could be pushed ever higher. coulde other context imply bidding higher for skype. big decisions will have to be made in prioritization and targeting cash. guy: comcast has raised its takeover bid for sky to 26 billion pounds. -- 14.20ering 14.20% pounds per share. how deep are murdoch's pockets? >> it is more of a question of how deep are busy days -- disney's pockets? they have to get approval from disney every time they increase the offer. guy: how deep are disney's pockets? is a well-capitalized company. it definitely could go higher from here. >> twitters efforts to weed out fake accounts are taking a toll on shares. the stock, falling almost most by march after a "the washington post" report of account suspensions ha

comcast is dropping its bid for 21st century fox. comcast will try to buy sky tv in europe. the e.u. imposing a record $5 billion fine against google. google has 90 days to comply or face another fine. google has said it will appeal. maria, back to you. maria: as the market and investors continue to react to microsoft earnings. the company continues to make the cloud its number one priority. something satya nadella said he would do. microsoft has become a premiere player in cloud. and the stock price has nearly doubled under nadella. alphabet and apple are sitting on the doorstep. now microsoft is teaming up with walmart to take on amazon. satya nadella calls it a $4.5 trillion opportunity. >> we describe our mission as empowering every person and every organization on the planet to achieve more. our success, whatever we have of it, is dependent on our customers succeeding in an increasingly digital world. that's what you see with walmart and others. they are using digital telling as an ingredient as they transform retail or healthcare or industrial manufacturing. maria: thi

comcast came in and put the last bid in on sky. the question is, those disney come back with a higher bid? does fox do something to helps disney get in? do they have a secret handshake behind-the-scenes work comcast has the last bid on sky. it takes that, disney takes our astronautics assets, and the story moves to europe on sky. where there is a bidding war for sky. the other stuff, the other reporting is simply this. bankers knew the regulatory climate, and here are the things that these bankers told me and why they thought comcast was going to back away from the full enchilada and may be focused on a portion like sky. the justice department hates the comcast business model. that is why it is going after att time warner. they are not going to let comcast get dramatically bigger by by that. if you want to play a game of chicken with the government, he is going to have to bid so high, maybe $50 a share. remember that disney is $39, do i have that right? he will bid up to 50 just to compensate for century for the regulatory risk inv

and does the and and try to untangle that weird web for us well comcast of course finally just recently dropped out of the bidding

comcast, the largest u.s. cable company, is now offering shares , 5.4% above 14 pounds per share proposal from fox which already owns a stake in the european broadcaster. 18.9 billion dollars in cash, branching out into corporate software to diversify its business. the semiconductor maker whose acquisitions have reshaped the industries, will pay $44.50 per to thea 20% premium closing price yesterday. the deal will immediately add to broadcom's earnings once completed, which is expected in the fourth quarter. indonesia is expected to end a year of wrangling over a copper and gold mine. according to the indonesian on his ministers daily agenda, signing ceremony will be held in jakarta at 10:00 a.m. u.k. time. the ceo of report -- of freeport has told bloomberg he's keeping his options open. , and ween very clear may stay are we may go. as soon as their something tangible to the market. upiette: pandora is teaming in a bid to win over a new generation of listeners. they will be able to share content with friends

>> i think sky investors expect comcast to come back. the share price is traded around 14.18 pounds, the market thinks this contest isn't over and comcast will come back and the price be pushed back higher. manus: comcast will have to want to take on debt if they want to counter this bid, don't they? >> exactly, and this is where the two battles come into play. you have the wider battle between comcast and disney for fox, and that could be pushed ever higher. and the extent to which they did high in that contest could affect the other context could imply bidding higher for skype. the ceo has to make big decisions in what he will prioritize here and whether he wants to target cash. guy: comcast has raised its takeover bid for u.k. broadcaster sky to 26 billion pounds. america's largest cable company is offering 14.20 pounds per share. that is 5% above the proposal. how deep are murdoch's pockets? >> i think it is more of a question of how deep are disney's pockets? they have to get approval from disney every time they increase the offer.

comcast is focused on sky. fox going to walk away from sky, or are they going to come back and try to beat comcast? seems like there are many possible outcomes for sky. sights onve set their sky. what are the next steps? don't know what disney's intentions are. we don't know what rupert murdoch will be happy to go along with. there are lots of moving parts. >> that's right. when you see what happened yesterday, sky shares fell about 1.5%. the market expectation is that comcast's current offer is probably the highest one. there has been a ton of speculation that this is getting to be a very rich battle for disney and comcast. speculation they might come to an agreement. whether this move of comcast pulling out for fox, whether that could begin or not. from the beginning, comcast has had its sights set on sky. 2017 whenn december comcast was talking about going after fox, we knew that the ceo was very focused on owning this european distribution business. i seem to remember him discovering it or becoming more fam

two signals that comcast is trying to send. disney, here is the deal, we will bid for michal krupinski at --sky. maybe we'll discuss a stake in hule. a warning shot --hulu. a warning shot to say we have backed usfs but we have more firepower to go to a counter bid any increase you do in the sky bidy, so -- bid, so do not bother. let's agree to play nice. for sky, 14.75 offer does it not go any higher? >> this could be famous last words but the short answer is no. that is it for the bid. vonnie: comcast makes 9% of revenue outside of the u.s., it feels like that could be up to 25% of revenue. if it is not successful with sky , is there something else it could do to raise international revenue? >> a mixture of things they could always do. --ther option is look at comcast -- germany would be -- attractive market. prosieben.-- it could look at that and has experienced in the advertising space. particular emphasis on asia? what comcast has done, if you can get sky, the biggest pay-tv operator in the u k, ireland, germany, spain, swi

brian roberts, ceo of comcast, who wants to break up possibly that deal. we got bidding war for those assets, talking about, for sky, plc. fox to put in a bid to buy all of it. if it buys all of it, and disney deals goes through, it transfers to disney. here is the fly in the ointment, comcast a lot of people are talking about, my sources likely to up the bid, try to essentially outbid fox for sky as part of its sort of grand plan to rebuild and buildout comcast. now here is the interesting thing. everybody believed that this conference that the deal for comcast, buying our assets engaging in a bidding war, for the assets going to disney, would occur right here. so this sky news thrown kind of a monkey wrench into that thinking. you remember, trish, a couple days ago i said disney bankers, disney is the other side who wants to buy assets, those bankers were doubting brian roberts would make a full-fledged bid for all of our assets. they thought he would focus on sky or maybe parts of fox. our stock went down 2%. i'm sorry i sent down our stock 2%, but that

us cable network comcast trumps fox with a $64 billion bid for european broadcaster sky. we'll tell you why it's so valuable. and on the markets... in asia, they are shrugging off the losses on wall street the night before. for corporate earnings it will hopefully be good news. in the next few hours britain's government is due to formally lay out its post—brexit trade plans to parliament here in london. there's still plenty of disagreement within theresa may's governing conservative party over the proposals which will cover goods once the uk leaves the european union. but there is little detail about what the uk wants when it comes to the services sector. and that's hugely important because services make up almost 80% of the uk economy and will be crucial in determining how prosperous the country is after the uk leaves the eu in march. the latest figures show that in 2016 the biggest share of uk services exports — 36.8% — went to the rest of the european union. the united states bought the next biggest chunk at 21% and then it was japan at 3%. and services are also

comcast business outmaneuver. charles: breaking news from comcast. they raised their offer for sky after fox raised its own bid. will will apply the value of the fully diluted shares of sky, the fox offer was $32.5 billion. our very own deirdre bolton is at the conference in sun valley, idaho. it's all about russia which came up multiple times at the nato conference in brussels. he seemed to be referring directly to vladimir putin. but their summit in helsinki is drawing closer and closer. president trump came closest to critiquing putin when he signed a joint statement condemning the annexation of crimea in ukraine. gina loudon, political analyst and member of the donald j. trump for president advisory board. i think president trump turned the tables a little bit by blasting germany and the economic deal, this energy deal they have with russia. the idea that he's friendly and hasn't pushed back against russia despite arming folks in the ukraine and getting rid of a lot of diplomats. but also pointing the finger to europeans. you are giving vladimir

comcast is the most lucrative cable operator in the world with incredibly profitable growth if disney keeps releasing hit movie after hit movie we don't care we only focus on them when they put out a loser. that's only highlighted by espn who is losing subscribers. disney decided to bid for fox assets so big they could move the needle and offset whatever may be going wrong at espn comcast tried to snatch those out from under them forcing them to pay more and today, comcast dropped out of the bidding and gave them a boost and changed the stripes in a positive way. hated it, love it, comcast makes a bid for more money and ever since timewarner takeover was turned down they haven't been able to grow now, investors are getting their heads around the possibility comcast may be able to get to buy the majority, it isn't done yet, or perhaps all of sky, the biggest european broadcasting company with more than 22 million customers, sky gives comcast the growth it needs to win back the market's affection. i think these two stocks aren't up nearly enough with today's news and will be rewarded wi

>> this is great news for comcast. the biggest risk for comcast equity was some crazy bidding war that would have driven up the price to really unpalatable levels and if comcast won in that situation it would have been an awful outcome. the fact they're walking away in a disciplined fashion at this point is a great outcome for the equity >> what about sky, though? are they overpaying or overchasing on that as well? should they walk away, too >> in my view they're overpaying a bit. i think sky is worth 13 pounds with the synergies they're paying 14.75 at the moment the magnitude of overpayment is worth about a dollar of shares of comcast stock it's a really bit of lost value but it doesn't matter. even if they bid up to 16 pounds, which i think is the limit where they will go, it's very inconsequential in the grand scheme of things they've done that sooner than i would have expected at a lower price. i actually thought the fight could go higher for fox, so this is big relief, and it's why the stock is trading up today.