Kingsview CIO Scott Martin discusses events in China and the effects of COVID there, plus their rules and regulations.
Program: Cavuto Coast to Coast
Station: Fox Business News
NEIL CAVUTO: One little unknown fact here. There was a scene in Spider-Man that featured Scott Martin, and the Chinese said, We don’t want it if Martin’s in that we got an X him out that Sony did agree to get it. Very good to see. You know it’s got a that’s.
SCOTT MATIN: That’s why I didnt get the check.
CAVUTO: I hear you. I hear. This is very unusual. No, I mean, Lydia was getting into it, and it did take my memory. I remember once upon a time, and it they have a steady policy of just not taking up from anyone, even back to the interview. Remember that on the North Korea, you know, dictator and all they risk a lot doing that, don’t they?
MARTIN: They do. And it’s just more oppression. It’s more filtering by the Chinese government that ultimately hurts their people. Now, the question on Sony’s behalf and some of the other companies, Neil, that I mean, look, you look across the S&P 500, half of the earnings of the S&P 500 these days come from overseas. And a large part of that overseas amount is China. So companies need China. I mean, China’s middle class is the size of our entire country’s population and it’s emerging and growing even bigger. So that’s a huge amount of people that companies like Sony want to have see their movies. But it is an interesting point to what Lydia raised about where’s the where’s the line as to where companies are going to say, no, we’re not going to change that. I mean, one of the things that that really hurt me back in the day that China did was they banned Justin Bieber in 2017 from playing over there because of his bad behavior. I mean, the guy is a saint, so they’re trying to really filter out and admonish a lot of the things that are coming from the United States just to have control over it.
CAVUTO: Well, I was for that particular action. But in all seriousness, I do find interesting that, you know, a lesson to be learned here, I mean, that at great
risk to their finances. Sony, you know, at least three or four times has said we will not have other countries dictating what we show eventually. And that could hurt the bottom line. Of course, no one’s crying for the money that, you know, Spider-Man and the entire series has made to say nothing of some of these other flicks. But maybe it will embolden others to think China, especially now, is in a position not to be calling the shots. What do you think?
MARTIN: Correct in China, if at all, in the last several years, Neal, I think as far as the government goes, the CCP is definitely on their heels to some degree. The economy stinks. They’ve they’ve re botched, if you will. The latest outbreak with respect to COVID people are obviously hurting over there and hopefully taking up some of their own will with respect to what they can do. But China still has the government still has a lot of control over their people there. And so I think when you look at Sony, look at the stake they’re putting in the ground here and maybe some of the other stakes in the ground that other companies will do going forward, is it going to move the government off the block to kind of relent or at least not be as controlling when it comes to what comes into the country? And based on history from President Xi and his cohorts, they don’t move off the block. I mean, they stay pretty staunch about how they they rule and regulate. And so it’s going to be a push, push and pull with respect to how things go. But it is a big give up from Sony and some of these other countries companies with respect to other countries and how they deliver their goods and revenues they receive for them.
CAVUTO: Well, but what a tangled web they leave. See what I did there? What a tangled. It’s basic cable.
MARTIN: I said it better myself.
CAVUTO: Yes, I kind of run with it, Scott, the best way I can. Good seeing you again, my friend, Scott Martin on all of those developments here following what’s happening at the corner of Wall and Broadway.