Squawk Pod: Disney CFO Hugh Johnston & Former SEC Chair Jay Clayton

Date: February 2, 2026
Hosts: Joe Kernen, Becky Quick, Andrew Ross Sorkin
Guests: Disney CFO Hugh Johnston, U.S. Attorney and former SEC Chair Jay Clayton

Episode Overview

This Squawk Pod episode dissects several headline topics: Disney's promising quarterly earnings and succession chatter with CFO Hugh Johnston; behind-the-scenes analysis on Warner Bros. and the broader streaming industry; the OpenAI–Nvidia partnership; and a wide-ranging discussion with former SEC Chair Jay Clayton on the tumultuous regulatory climate, including the Fed Chair confirmation process, Trump family business entanglements, free speech, and fallout from the Jeffrey Epstein files.

Key Segments & Insights

1. Market and Economic Backdrop

[01:04–08:13]

• Markets at a Glance:

  • The Dow posted a nine-month win streak through January, though gold and silver saw their worst day since 1980.
  • Bitcoin hovered around $77,577.
  • Energy markets remain volatile, with natural gas down 17.5% after a weather-driven spike.
  • Discussion connected asset price swings to anticipation of Fed policy under Trump's Fed Chair pick, Kevin Warsh, known for hawkish views:
  • "He's never been somebody who's liked a runaway currency... he likes a smaller balance sheet." – Joe Kernen [04:13]
  • "It's ultimately hawkish... even if he reduces the interest rate on the front end." – Becky Quick [04:32]

• Groundhog Day Banter:

  • Lighthearted exchange over Punxsutawney Phil predicting six more weeks of winter, segueing to weather impacts on the market and travel.

2. Government Shutdown & Political Maneuvering

[09:16–10:11]

• Partial Government Shutdown:
  • House Speaker Mike Johnson believes he has the votes to end the ongoing partial shutdown, working on a short-term funding bill that splits off the Department of Homeland Security for separate negotiation.
  • "Our intention is... to fund all agencies... except for that one. And then we'll have two weeks of good faith negotiations..." – Mike Santoli [10:00]

3. Streaming, Media, and Disney’s Next Moves

[10:16–24:41, 25:25–30:50]

Disney Earnings and Parks

• Strong Financials:

  • Disney beats earnings expectations with park and streaming businesses both performing well:
  • "The company really has a lot of momentum right now... streaming and experiences both growing profit strongly and well ahead of consensus." – Hugh Johnston [19:02]

• Parks Performance:

  • Domestic and international parks posted similar revenue growth, but domestic operating income was “choppier” due to investments like a new ship launch.
  • "We're opening up Disneyland Paris, the world of Frozen and a lot of other attractions... the back half is going to be stronger for sure." – Hugh Johnston [19:58]

Streaming vs. Linear

• Integration Perspective:
  • Disney views streaming and linear as simply two distribution channels:
  • "Consumers are going to shift as they choose to shift... we'll be there to catch them." – Hugh Johnston [20:49]
  • Disney feels ahead of industry curve post-Fox, Pixar, and Lucas acquisitions.

Warner Bros. Speculation

• Potential Acquirers:
  • No strong preference for a Warner Bros. buyer (e.g., Netflix vs. Paramount), but notes antitrust scrutiny.
  • "Netflix would be an awfully big company at that point... they're trying to do again what we already did, they have the distribution, they're trying to add more IP..." – Hugh Johnston [22:32]

Content Spending and Sports Rights

• Expect slow escalation in spending; confident U.S. slate is robust, with more international streaming investment planned.
  • "I think you'll see us internationally continue to invest a little bit more... I think we're in a good spot." – Hugh Johnston [23:02]

Succession Planning at Disney

• On CEO Transition:
  • Johnston tight-lipped about Iger’s plans and potential successors, defers to the board’s process.
  • "Whomever the new CEO is, they're getting a business that has a lot of momentum..." – Hugh Johnston [24:00, 24:41]
• Skillsets for CEO:
  • "When you have a new CEO, they rarely have all of it anyway... we've got a couple of really terrific candidates." – Hugh Johnston [25:24]

Theme Parks, Competition, & Consumer

• Competition from Universal’s new park expected and planned for; U.S. park attendance strong among higher-income consumers.
  • "The upper six deciles... most relevant to coming to Disney parks, are still doing quite well." – Hugh Johnston [26:38]

Macroeconomy, AI, and the Future

• On Employment & AI:
  • Disney’s hiring unaffected by AI so far; sees AI as a productivity/creativity enhancer rather than job killer:
  • "The way we think about AI is basically making our people more productive and actually more creative..." – Hugh Johnston [29:14]
• AI Partnerships:
  • Disney using OpenAI for over 200 characters but maintains flexibility and will likely use multiple AI models.
  • "We need to let the models play out... I wouldn't be surprised if there were multiple models rather than a single model going forward." – Hugh Johnston [30:31]

4. Trump Family, UAE, and Political-Private Sector Entanglements

[15:28–18:16, 38:46–41:44]

• Crypto Deal Probe:

  • UAE sovereign fund bought a $500M stake in Trump’s family’s crypto business; months later, administration approved AI chip sales to UAE.
  • "There's the appearance of impropriety and that's been the problem with all of these things..." – Joe Kernen [18:10]
  • Debate on need for transparency, distinction between appearance and evidence of quid pro quo:
  • "Yes." – Jay Clayton, when pressed if quid pro quo requires proof [38:45]

• Transparency and Media:

  • Becky Quick highlights essential role of journalism in surfacing these conflicts:
  • "We have transparency because the Wall Street Journal reported this news... another great credit not just to the Journal, but to the First Amendment..." [39:45]

• Ethics Policy:

  • Clayton advocates for clear lines: family members can do business but with potential transparency obligations, pushing back on the idea of blanket prohibitions. [39:06]

5. Fed Chair Confirmation and Central Bank Policy

[31:09–37:38]

• Trump’s Pick: Kevin Warsh
  • Jay Clayton calls Warsh "a known quantity" and believes he's "got to do a good job":
  • "He knows that the balance sheet, the rates, reserves, they're all related... I think he'll be a very good communicator." – Jay Clayton [37:16]
  • Panel discusses the challenge of building consensus at a Fed divided by criticism and personality.
  • Jason Furman cited as supportive of Warsh but warning the task will be tough.

6. Media, Free Speech, and Government Power

[41:44–45:29]

• First Amendment Issues:
  • Discussion on the scope of the First Amendment, particularly as it touches on broadcast sanctions (e.g., Jimmy Kimmel incident) and freedom to criticize government.
  • "The First Amendment has its limits..." – Jay Clayton [41:28]
• Journalism and Protest:
  • Jay Clayton distinguishes between journalists "embedded" with a protest and those who may cross into active participation, referencing Don Lemon’s arrest:
  • "You can't be part of what would be illegal activity. Throw a journalist coat on and say, okay, now I've switched to being a journalist, and then take it off." – Jay Clayton [44:46]

7. Epstein Files & Justice Department Transparency

[46:02–51:47]

• On Releasing Epstein Materials:
  • Jay Clayton emphasizes paramount importance of victim protection; cautions the raw, unvetted nature of criminal complaints.
  • "You are seeing the reason that we don't release this material on a rail." – Jay Clayton [49:07]
• Prosecution Questions:
  • Encourages public and Congressional review of unredacted internal DOJ documents regarding charging decisions; DOJ open to new evidence from victims/counsel:
  • “There is a great deal of process... and one thing that I applaud... is [officials] said to Congress... a member... can come to the Justice Department with appropriate confidentiality arrangements and look at those documents.” – Jay Clayton [50:31]

Notable Quotes & Memorable Moments

• On Disney’s Position:
  • "Whomever the new CEO is, they're getting a business that has a lot of momentum..."
    — Hugh Johnston [24:00]
• On Netflix-Warner Integration:
  • "Netflix would be an awfully big, big company at that point if the two came together... they're trying to do again what we already did..."
    — Hugh Johnston [22:32]
• On Trump Family Business Dealings:
  • "There's the appearance of impropriety and that's been the problem with all of these things..."
    — Joe Kernen [18:10]
• On Government-Private Sector Ethics:
  • "We can't tell people that if you go into elected office, you and all your relations have to give up their business..."
    — Jay Clayton [39:06]
• On the Difficulties of Releasing Raw Criminal Files:
  • "You are seeing the reason that we don't release this material on a rail."
    — Jay Clayton [49:07]
• On AI’s Role at Disney:
  • "AI... making our people more productive and actually more creative and building more, more and better products. Not really about employment at this point."
    — Hugh Johnston [29:14]

Timestamps for Key Segments

• [01:04] Market recap, gold/silver crash, Fed speculation
• [09:16] Government shutdown update
• [10:16] Disney succession chatter, Warner Bros./Netflix speculation
• [18:35] Disney CFO Hugh Johnston joins for earnings & strategy deep dive
• [24:41] Succession, theme parks, AI, and consumer macro
• [31:09] Jay Clayton on the Warsh nomination and Fed policy
• [39:45] Trump/UAE/crypto, transparency, and government ethics
• [41:44] Media freedom, First Amendment, government threats
• [46:02] Epstein documents and DOJ transparency

Conclusion — Episode Takeaway

This episode offers uniquely candid and timely insight into Disney’s post-Iger future, the high-stakes maneuvering in media and streaming, macroeconomic policy debates, and the messiness of balancing transparency with responsibility in both government and business. The tone is lively, often skeptical, and peppered with insider banter, yet anchored by rigorous questioning—making it a must-listen for business, policy, and media watchers.