Hour. At t buy iing direct tv 48 billion. It is about cost, scale and mobil video. But not all deals getting done today. Astra seneca that means something. Facebook firing back at sn snapchat. Youtube buying twitch for more than 1 billion. First up. At t acquire iing the provider 95 a share. The combined company would have combined providers in the us. 67 billion when you throw in de dead. We have been sitting here talking about this for a couple of weeks now. Talks took place years ago as well. This is not a foreign deal. Although many of us have been saying wouldnt this be a better alternative. I got a lot of push back from the Company Chairman and ceo. Remember the preferred alternative including the premier content relationships such as nfl sunday tickets. This deal was predicated on making sure that they renew it. Both sides tell us that they are going to get the nfl deal done. If it doesnt, at t can walk. You have no broad brand and a company that is willing to pay a 30 premium. So not too far from a comcast paying for time warner cable. But there it is this morning on that nfl sunday ticket deal, jim. Few people worried this morning. If you are google or dish, and you want to cause trouble you could make the nfl happy. When you talk to the networks you say they think google wants to do it on a payperview. The nfl says we all want payperview but we want the highest bidder. High contacts were with the nfl and the nfl is going to raise the rates on this package so great that i think only companies with 60 billion in cash can be able to bid on these things. You can ask and talk to the add viders over the last 20 minutes. The deal is going to get done. If they spoken to anybody . That road is paved with broken dreams. They are very powerful and the actual nfl corporation has got the International Rights coming up. Every week, that is coming and you have a group of people who frankly are so powerful and the only single sports event where the numbers are up year after year is espn. Does does any want to let this go . It is the greatest ithink on earth. When you talk about the customer base, of course larger picture here again what does it give them . Access to video content on this type. They are hoping to bring programming costs down because of the sdal thcale that they wi have. And of course bringing mobil video to you, jim, where ever you want it when ever you want it. You do that, to me, the Old Technology i dont want to do this deal. I think that all of the articles that i have read mike white smart guy, why sell . How about if it is pete . Is. In the conversation we had last night on the record. Broad band being a part of the strategy. There is no dual path. Broadband is the key product. Companies saying you know what that technology is routed in 9 1995. He has brought back a great amount of stock. Great Free Cash Flow generation. Used it to buy speck and he is taking 70 of the consideration of stock. I feel comfortable that the sinner gis are going to there. And i wouldnt be taking 70 if p th that wasnt the case. They seem to be confident that they can deliver on these things. Why the heck would you take that. The Old Fashioned technology you got to get on it. That is true. Nfl sunday ticket. I dont know anyone. What the heck. Unless you are in a area this thing. We get to sandy. And no nfl. Okay. You know what the considerative is like . Man, this thing is not working. This is the most Antiquated Technology if it were great apple and google and facebook would be in there saying we want to take this down. You put some video on dtv and you free up the ground band. You offer that more and more places. You can pfocus on offering broa band. It needs to compete against the likelihood of comcast and time warner. They will have 40 of the bro broadband home. I come back one more time to the pay out ratio at at t. They are close to the edge there. We have been saying, maybe they are doing this deal because it helps make sure they cover the dividends. You cut that to 25. So, he said to me, you think im going to do a 67 billion deal . How about no one is talking about latin america. How much do they choose path ps like that . T you build it in every single time. Argentina. I understand that they are cracking down and making them pay a tariff. Mike white is a seller and i dont want to buy from him. He paid no fee and there is a collar here and well watch the stocks. It has held up well since it first started. Look at the ten year. It is a great ten year piece of pain. Today it is breaking down a bit as you see there. And they are doing a lot of equity. I asked again why not use more cash because the cost of the debt is so low. You are issuing equity and the belief is the balances are you are going to spend 9 billion this year and that spectrum being freed up by the fr broadcasters and they are going to pay 21 billion a year. So, he is making sure that hes got in his words plenty of fire power that is the word he used for me. I saw numbers being bumped for 2016. Final pound here dish well keep an eye on here as well. It confused us all the time. Thats right. Probably shouldnt have done that. What will he choose to do . He has watched two of his partners get together. Directv was thought of as a possibility. Would he want to double down in a slowing business without broadband that is not clear. There is always a group. Americans who want the nfl football package that pay less. Where do they come up with these organizations . How outrageous is this . Who cares americans for a lower cable bill. Wow. You have price on the football, right . You would pay just about anything on it. Plus the sports bars in philly direct tv . You cannot live without that in the sports bar business. That is a true statement i would imagine. Lets think about that. Let move onto a 118 billion deal that is probably not going to happen. As ttra seneca after pfizer sweetened the bid 55 pounds per share. The company says that is inadequate. I havent seen a release on this, but the company said this morning it would have taken something around 58 or so. Best and final means something in the uk. Now the uk take over law is designed to help protect the company that is sought but none the less you have a six month period where you have to stick by your best and final bid. There is gray matter. But if that proves to be the case this case is done and over with. Does the company care about its shareholders . Where are you going to see that again . Never. They believe in their pipeline. You are right. They believe in their pipeline. Good that they believe in it. What is interesting here. Im told again by the advisors why they didnt get to the 55 or 58. And then comes out yesterday with 55 best and final. And today we hear if it had been 58 or more it would have done the deal. It sounds like amateur hour. It sounds like that. No, it is al len schwartz. Definitely no amateur. No. I dont know what to tell you here except that it is likely dead. But it is still a little bit alive. Mostly dead. It is like the princess bride. Mostly dead. There is a difference between mostly dead and all dead. In terms of the calendar, if nothing happens you would call it dead . They are not going to go hostile. They dont want to take this for the long run in terms of the timing risk for them. But there is a way where is the next tax break . Another inversion . Anybody . They want the tax break. There are a lot of companies they canp go after. Sap . It doesnt matter. Give me another company. You got 11 billion worth of stock coming at you. Where is credit sweep. Wow, you are in a fieisty mood here. Phillies won two giames in a ro. Jc penney. 35. You can get two pairs of slacks there no problem. Just 130 sports coat. They get it. Thank you. You guys, thank you. You get that. Their own lines there. So good the shirts. I will be wearing one tomorrow. I should iron it myself. Facebook takes aim at snap chat. Google appears to be screaming toward a new deal. I make a lot of purchases for my business. And i get a lot in return with ink plus from chase like 60,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards even cash back. And my rewards points wont expire. So you can make owning business even more rewarding. Ink from chase. So you can. Facebook taking aim at app sending short video messages. What has that done he is barely moving on . I continue to like it on facebook. It is a couple of months. But it is still off but i think that facebook is going to do the numbers. When i say that it could earn 2 in a short period of time, people dont believe it. But this thing is getting huge numbers of adds and it is working. The return on it, whether it becob becob becobe dominos pizza. It is working. It does well. Anything involved in the Internet Things with the exse exception of cisco. Have you heard of this, twitch . Every kid i know loves twitch. I dont know twitch from jack. The most popular site h for watching or broadcasting video game play. The unemployment and the people who are between the age of 20 and 35 they are playing at work. Because there is not enough time for playing at work. And there are channels who are watching people play. It is i dont know youtube they havent started to monetize that. I keep paying, watch out nfl. Youtube could take that path. Why doesnt google care . Google has so much money. Google figures into every conversation around media. Whether it be the one we were having around at t. People say that is being foolish to spend that kind of money they will never do a nationwide build out. And then of course we talk about content where they have it already, and would they step up. You know, they can pay the highest. They can write a check to the nfl. It is robert kraft. Google has that much money. They can play with real money because they have a real business and i look at cvs stock. Disney stock has peaked and it is more of a play here. Im saying that google, the guys that bad mouth google, do you think they are interested . You just told me that they werent. Google is now darth vader. That was never fair. John malone was never vader. I think al gore called him that. It made no sense. Although both tell you what they were going to do to you. The next generation of squalk will be born. That is 90 minutes away. Up next cramers mad dash. Busy week ahead. Six ipos pricing this week as well. Straight ahead. E a closer lo. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. Cozy or cool . Or woof . Everything exactly the way you want is. Until boom, its bedtime. Your mattress its a battleground of thwarted desire. Enter the sleep number bed, designed to let couples sleep together in individualized comfort. Hes the softy his sleep number setting is 35. Youre the rock at 60. And snoring . Sleep numbers even got an adjustment for that. You can only find sleep number at a sleep number store. Hurry in for memorial day weekend savings. All beds are on sale, starting at just 649. 99. Know better sleep with sleep number. In a we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. We have our mad dash and now we are going to soupland. Talk about it, campbells soup. The campbells pork and beans. This was a ternrible quarter. They do have some businesses that are doing okay. But this is part of the weakness that you are seeing at the super market. If it is canned not all natural or, organic, it just aint selling. That said here is what is important. 3 yield here that is where the declines in stock. You got the 3 good morning. Warren buffet. Why not roll it in. Young people dont want to buy cans they want natural. If you talk to irwin simon. They have a line of soups that are natural. That is what people want. They dont want stuff that can survive Thermo Nuclear war anymore. S campbell, hopefully it will never come to that. We have more a few minutes away. What does it mean to have an unlimited Mileage Warranty on a certified preowned mercedesbenz . What does it mean to drive as far as you want. For up to three years and be covered . It means your odometer. Is there to record the memories. During the mercedesbenz certified preowned sales event now through june 2nd, youll get complimentary prepaid maintenance and may qualify for a twomonth payment credit. Only at your authorized mercedesbenz dealer. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. [ tires screech ] chewleys finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app from td ameritrade. Challenge because of the actual flag shape. Pretty good. This is a hedge fund. These are all bet on big time. I think we already know, best buy a lot of main stream news. That is the opening bell. At the top of your screen, america and over at the nasdaq, has the most to lose as consumption of products. She is saying reynolds 80 p chance, not 79, not 81, but 80 p. Very aggressive and she is an influential analyst saying that. You know there was i think a lot of activity not that long ago in terms of at least dives ti tours that have to take place. But im not sure that there is a lot going on right now. Hes got me kind of going for the vapor now. Good gateway into getting into real cigarettes. Very relaxing. Also cool when im doing that. Hard to imagine bogart doing that. You light that up and you are going to say wow. Not what they want to hear. Biggest gainer. Cfr pharma they love it. They are not astra, seneca. Those shares are down. It is down 11 . Again, just to revisit. The pfizer offer is 55 pounds best and final. It is not like bell. The uk take over panel makes you stick to it. Unless astra seneca which has rejected this comes back before may 26 and says okay well take it, they are done. So. Everybody is buying it now figuring it has to come back. Most likely not. You could wait six months but most likely this is it. They chose to reject 55. There are questions as to whether the board was unanimous in its rejection. Did they talk to shareholders over the weekend . These are all good questions, they could change their mind. I think that is terrific. Yeah, i want to get spanked for 50 . Im not in it for the money. You walk away from a 45 p. If the pipeline hits, maybe it is a double. A lot more. Those are great. By the way, we have seen that a number of times. That war there with cs there have been a number of different times when the thought of the thought to acquire, it will take so long and open themselves up to losing that version. But where the acquired soft after process, they were right to say no thank you. Maybe they will pull a rabbit out of the hat. It is dead just not all dead. Jci spinning off the interiors business. This was a unit that was strougstroug ing this is a company i think it is doing everything right. I think it is a terrific deal. What can i tell you. The journal does a rac raiser on the meeting tomorrow. Lets stick our fingers in it. Maybe like they will take action. On the board members, i think he is one of my bankers 21. You do not want him to leave. Hes done fabulous things. After a tough series. Look at air bus. No one talks about how air bus cant make the darn plane. Right . Shares of at t are not done. Down about 1. 5 right now. The Conference Call has concluded. I was on it for a while. I did speak to somebody who said not that many big highlights for the call. They were discussed again. Dish spends on directv. That is where people want to focus. He said he is sitting next to him and bain doesnt know his name. We are going to call these th g things dish moments. No break ups here on this deal. Directed the sunday ticket. It has negative value right now. Directv shares are down. This deal leaked a while back. It does it is kcomprised 70 of stocks. Some people anticipated as well. They are also they are paying out. I like att stocks i care about latin america. I know that mike white is not that thrilled about going down to argentina. Not going the way of chile. Are they worried about chile . Not bad. Things are okay. Brazil. The problem. Oh. How about mexico . We didnt talk about the mexican aspect here. A star. This is a great country to do this here. Up by rbc. The notion here is that chips are becoming a cash flow business. Some of these guys. You notice how micron keeps getting upgraded. If you look at the stocks that have been great with technology. They have been short. Western digital and sandisk. It is like dont build more keep things tight. Like the health business. People are starwood they have that 5 yield. Dont forget that. Airli airlines, hotels, i think that american air is undervalued, delta doing quite well. Steve holmes has to step up and get more stock. Gets get to bob who is on the floor. Happy monday morning everybody. I want to point out what was going on monday night. The nikkei has fallen 6 p. The end strength here. That has been quite and issue. But you can see there. The nikkei moving down. The major sectors, most are to the downside. Only material is moving up here. None of this indicates risk on risk up. I want to put up mastercard up here. I dont have the headlines but im being told that they were saying that Consumer Spending was better than in the First Quarter. You can see that stock moving up. You were mentioning campbells earlier in the day. The issue is not just weak soup sales but they are having a tough time overall. Put up the board of forsales here. The soup and gravy division. The heart of the company was up and that was because of cost savings that they had. International meals and beverages was down. P pepperage farm, is not doing anything at all. Let me talk about ipos this week. There is going to be a huge one coming. This is a warm up. This is the forerunner. This is the Largest Online direct Sales Company in china. 1. 6 billion offering. 16 to 18 that will be on the nasd nasdaq. Market caps 23 billion. This will be the third biggest ipo of the year down here with allied financials. 2. 4 billion and 1. 8. If this came in, in the mid range at 1. 6. Third biggest ipo of the year. The big story over the week end. This story about mr. Bernankes conference that he had with private individuals in the last couple of weeks. 250,000 a pop. Somebody trying to imply that he might be saying Something Different that he had been tipping them off that the trade was not to sell treasury but to buy. There was a point karl where there was an unnamed source assaying that bernanke said funds would move back to the average in time. This is part of the train of people trying to figure out why did Interest Rates drop so much. It soupd sounds like a lot of ne to me. He is speaking today in dallas at a conference examining the ba banks impact. Back to you. Thank you. Rick santelli is at the cme in chicago. They are not making record attempts that rose but not bouncing. And that is the key. And it has been the key for most of 2014. If you look at the intraday at 5s it rallied up and came back off. Open it up and i understand. But we are in the zone and havent seen since july 22 of last year as this chart clearly shows. Lets stick with the theme of 5s and 10s. There has been a little bit of steepening you can see on the right side. We are in the flattest zone since the summer of 2012. Ended up closing above it. You can see we havent spent a lot of time under 14,000. This is a significant technical area. Lets look at the dollar now. It is hovering at a zone we havent seen since february of this year. We know how that trade correlates with the ten year action. It is still mostly slower rates. When we come back, hear what the chairman and ceo is saying when we take on the competition when we come back. Those Little Things still get you. Cialis tadalafil for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. I got lots of advice, but i needed information i could trust. Unitedhealthcares innovative, Simple Program helps moms stay on track with their doctors to get the right care and guidance. anncr vo thats health in numbers. Unitedhealthcare. Peace of mind is important when so we provide it services you bucan rely on. With centurylink as your trusted it partner, youll experience reliable uptime for the network and services you depend on. Multilayered Security Solutions keep your Information Safe, and secure. And responsive dedicated support meets your needs, and eases your mind. Centurylink. Your link to whats next. All right we are looking at a photo. Do you know about this . Now you get jims book before you go out on your big night. Come back to me. I love protectiety. We love that guy. And hes going to be rich and his date probably loved it. It was probably a good date. When they say i want 50,000 stride right take the top off. That was the old Goldman Trading place. Everything has cooled off at goldman. Im looking you werent just giving me a body slam. Thank you for my jc penney thing. You can get a lot of really high quality merchandise. You can get shirt and tie combo. You are a pr man for jc penney. The stores look great. Meanwhile apple is making a run here. It is the break out that ive been looking for. Some people thrilled that they are not in the directv line. This is going to take you back to awesome. You have to go back to october 2012 it looks like. I like throwback nfl jerseys and i Like Technology and apple and cisco. Direct tv is down. A year ago i reported the first talks between charter, liberty and time warner cable. If you had bought all the stocks. The consldation that had taken place is quite significant. Im waiting to sit next to you, and announce the google by t mobil sprint. I cant figure out who it is. Maybe he does i dont know what mafia son does. Consolidation is no stranger to the industry. At t is the old sbc. Cingular owns that. At t wireless belts out ameritech and those will all sbc which is at and t. Wasnt there one in the mountains . That was quest. Your friend nacho. Another friend that was not a friend. Do you have any friends at all . I was here to report on them. Next. Cars are driven by people. Theyre why we innovate. Theyre who we protect. Theyre why we make life less complicated. Its about people. We are volvo of sweden. Trwith secure wifie for your business. It also comes with public wifi for your customers. Not so with internet from the phone company. I would email the phone company to inquire as to why they have shortchanged these customers. But that would require wifi. Switch to comcast Business Internet and get two Wifi Networks included. Comcast business built for business. We are mipnutes away from a News Conference announcing the first effort criminal charges against Chinese Government officials will be charged with hacking into six u. S. Firms in the Nuclear Metals and solar industry. Among the names, westinghouse, u. S. Steel and alcoa. Which includioes others at the p of the hour more to come at the top of the hour. Thank you. Time for cramer and stock trading. Stock trading. You did. You made people money. I told people to buy it last week. I bought it. It is good. It is a good thing. I got it right. Thank you. Now another one i want people to way to go. Here it is. This is not that easy. Not that easy. No, this was the drug that i truly believe in. These guys have the real deal. You cant trade that. It goes higher. Zillow. This is one to watch. You have smart buyers all right . You have a break out. This is the only Technology Stock that has a chance. If this stock gets to 111 you are going to see a squeeze. We have crude up. It is unbelievable. One of my best sources. It is so much oil in it, there is a big discount from curb ish. They dont have enough people. It is who sont is who horizonta have been preaching that for a while. Jim cramer. When we come back. Ceo of pepsi and we are an hour away from the debut of squawk alley. Alley. To look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of Fidelity Investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Thats keeping you from the healthcare you deserve. At humana, we believe if healthcare changes, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. [ male announcer ] since we began, mercedesbenz has pioneered many breakthroughs. Breakthroughs in design. Breakthroughs in safety. In engineering. And technology. And now our latest creation breaks one more barrier. Presenting the cla. Starting at 29,900. Starting at 29,900. In a we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. What does directv tell us about the future of video, Television Content and the internet. Pfizer up to 120 billion. Interview with pepsi. Customization and the next great innovation. Scott just told us some of this going back a very long time. More now on that deal. Junior fellow for the hudson in stitude. Good to have you with us. Good morning. First off, your general impressions on what this does to the landscape. Well, i think iterati rationali the market a bit. It may not make a lot of sense. What doesnt make sense . Directv is a stand alone company. Its revenues, its basis, it is pretty much peaked and it is declining a bit. It needs to find a home. And it doesnt give it a lot of opportunity. Doe y you understand it in ts of why it would make sense for the company . Is. It gives it more ways of getting to consumers both in the home and office, it gives at t a bit more exibility in rolling out it serveses and reaching its customers in different ways. You are in washington, d. C. That is where comcast and time warners deal will be decided. Im curious of the two of them coming as they will in more of less similar timing. I think it will be in possible for them not to look at it. I think both of these deals probably get through. But it will take time. I wonder what this means for the other companies in the space. Well, im not sure i would call them massive conglomerates. But there is industrialization in the industry. It puts more pressure on dish. If the market view is stand alone company. Has a difficult time competing, then i think it puts more pressure on dish. Do you have a vision on where there is communication in the industry . What is the end game here for content . They look at very narrow markets. So they will look at a separate video distribution industry. They will look at a separate broadcast industry. It is changing right before our eyes. There is more mushiness or lack of disstink lines. Who owns the content in the future . I dont think that is going to be effected by either of these mergers. There is a clear content in the industry. Very important here. But the delivery of content to consumers through different channels is what both of these are about. Is there a more efficient way of distributing content. Given the targets that they are talking about and both of the gentlemen behind this deal, they think they are going to be able to bring their programming costs down. It is not clear to them that it is going to make a difference. Im curious where do you come down on that . The negotiations for content are intense. And when you go into those negotiations you want to have as many poker chips on the table as possible. You are seeing comcast and at t as Delivery Companies and more ways to deliver content. Finally, between the comcast deal, this deal, Net Neutrality does the fcc have the where with all to handle the issues . They stay within their authority. I think where the fcc gets into tou trouble is where they try to go off into new areas and we are seeing that with some of the network neutrality. We are going to see how that conversation develops. Thank you. See you next time. Yes. Coming up a new front in the soda wars. New equipment, new products and more. Coming up. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim from td ameritrade. This after reporting its first report in declines in after five years. Back over to you. Big day there. Thank you. The Soda Fountain wars now. Drink sales may be under pressure. But the giants are fighting back with new innovations and technology. Pepsi launched its new machine. I was there for it. It has a flat screen and you make your own. It is a big move to gain traction in the business. I started by asking ceo how long it took to make. We have gone through various knowcations of the product. We started with the next Generation Technology for the actual delivery of the beverage and flavor shots like some of our key competitors. But as we tried that we saw that it costs more than the other machines that are too high and operators need to be retained on a new system. We decided to make a machine that did not result in additional wait time and most importantly while retraining the workers on the new system. In the last 30 months. This machine has gone from concept to implementation. Im not saying they are bad machines. They are two Great Companies producing two great machines. The cost of the machine was too hi high. And our machine everybody said looks more contemporary and it is cooler. But i think our machine is a 21st century machine. So you you decide what you want. What do you see as a Market Opportunity one that they have dominated . In the last year or two we have been having huge wins in the food service business. It is growing for several reasons. One because we were not a major player and now we are becoming a major player. But our single biggest reference is the marriage of beverage and snacks. Today Restaurant Operators want options that are easy to put together and excite restaurant consumers and drive tickets. And we provide appetizers and snacks and together can bring excitement and drive tickets. There is diet a notice. Why arent people drinking diet anymore . It is a mystery. Three or four years ago we never thought the diet category would be out of it today. People are just concerned about going back to high fructose content. I dont think there is an issue. How do you see it as an engine of Profit Growth . It allows us to attract more food Service Customer and you are seeing levels going up. Have you assigned customers . We have the units in about 1,000 accounts. The demand is extraordinary. What we can do is drive more top line growth because we get more food service accounts. We can get more beverages. It is going to be a big win win. Do you think there is a possibility we will see more growth . We should talk about the north american beverage. We have a great portfolio h in every non car bownated beverage we have a leadership position. You want to drink lipton t eeea sobee we have it all. With the growth of soda stream would you credit partnering with a soda stream . It is not just a regular pepsi at home. It is creativity at home. Stay tuned. That might be our next innovation show with you down the road. Pepsico has gone to being a leading edge innovator. Sales have gone from 5 to 89 and headed north from there. Stay tuned. It began last year and it is going to take off. The chairman and ceo of pepsico. Unveiling their countertop. Their machine the coke machine is touch screen. It doesnt have the white as the old cocacola bottle. Maybe we have video after the show. Clearly this is the new battle front and pretty soon you are not going to recognize fountain machines anymore. The flavor that you can add to your pepsi product 100 or so options on their coke brand product. It is about getting consumers engaged. Coke has about 70 of the food service business. Burger king has the free style. The question is, will this excite other customers as well. She is under pressure from investors. Im curious did it come up at all in the conversation . Keeping the beverages and the snack portfolios together. They are proud of their results. Calling it a mystery. Right and i asked her actually if the next innovation was a spe sweetener. So that will be the new wave. The ceo of pepsi, isnt it her job to find out about those sales . She said that people were skeptical about the ingredients but that they shouldnt be. The switch to water and tea going back and high fructose corn syrup. I saw a base of sugar base soap. They are seeing growth in water and juices. That is what is cool about the machines. They are our non car bownated options. I have a great video for you. Where they demoed the product and made her famerity combo nation. The hint is, it is not car bownated. I made mine too. Plus, well see who we see it. I think you know the answer to that. Coming up, astra senecas chairman. Why pfizer is saying its last and final pitch we will be right back. Weekdays are for rising to the challenge. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. Life with Crohns Disease ois a daily game of what ifs. What if my abdominal pain and cramps come back . What if the plane gets delayed . What if i cant hide my symptoms . What if . But what if the most important question is the one youre not asking . What if the underlying cause of your symptoms is damaging inflammation . For help getting the answers you need, talk to your doctor and visit crohnsandcolitisinfo. Com to get your complimentary q a book, with information from experts on your condition. [ male announcer ] since we began, mercedesbenz has pioneered many breakthroughs. Breakthroughs in design. Breakthroughs in safety. In engineering. And technology. And now our latest creation breaks one more barrier. Presenting the cla. Starting at 29,900. Lets take a look. There we go. We are looking at health care. Abbott labs. As tra s astra seneca, the sector showing some signs of life. Good morning. Yeah, as we are seeing pfizer stock up a little this morning. Pfizer rejected what it said would be its pifinal offer. Saying it is still falls short independent science led company. The language has changed a bit here. So pfizer didnt quite get there with that offer today. It is trying to convince the board to start talking. I read he was the 6th most powerful person in sweden. We will bring you that interview as soon as possible guys. Back to you. Unbelievable. Meg terrel joining us talking to pfizer today. Blackrocks chief investment strategist coming up. Dont go away. Dewhos got twond rhooves and just got ae. Claim status update from geico . This guy, thats who. Sfx bing. And i just got a. Oh no, thats mom. Sorry. Claim status updates. Just a tap away on the geico app. Could mean less waiting for things like security backups and file downloads youd take that test, right . Well, what are you waiting for . You could literally be done with the test by now. Now you could have done it twice. This is awkward. Check your speed. See how fast your internet can be. Switch now and add voice and tv for 34. 90. Comcast business built for business. Ifrks good morning. I want to ask you about the front page of the journal today. It says that corporate earnings are not looking that good. Second Quarter Results will fall short of what wall street are expecting . Clearly the First Quarter wasnt that brilliant. It is not what will lead to a fair market. That is the fact that last year most of the gains particularly were built on multiple expansions. They rose by 22 last year. And markets are simply not cheap and that is one of the reasons we are seeing slow gains in 2014. One of the other mysteries we have is why the bond market is moving so strongly. He is thinking that Interest Rates are going to stay lower for longer than he would expect. I do think that rates are going to remain low relative to the post world war ii period. The fact that the ten year is at 2. 5 right now. One of the things that is under appreciated is that a lot of the buying over the last five months are from Pension Funds risking their plans. That has created rates heading back to 4 anytime soon. Is it a nervous time for you . They are not always the same thing. The stocks are a defensive sector. Liking up on small caps an the momentum names. In the United States and large and mega cap. Interesting. U. S. Equities are expensive and the u. S. Can trim their positions. Having a large overweight at these levels makes the most sense. Again, i think are the Larger Companies and not small caps and bei ining cautious on the defen. We get fed minutes this week from the last Federal Reserve meeting. It still feels like a market that is driven from the fed action. I dont expect her to drop policy hints. Where do you think that move is going to come from. The next move is going to have to move from the economy. It looks like the dolbdrums wer about the weather. If that translates into earnings growth. Well leave it there. Thank you very much. Thank you. 30 billion in funding for a big coin startup. In a moment. Ficult thing to do. But, manufacturing in the United States means advanced technology. We learned that Technology Allows us to be craft oriented. No ones losing their job. Theres no beer robot that has suddenly chased them out. The technology is actually creating new jobs. Siemens designed and built the right tools and resources to get the job done. Requires precision and anattention to detail. G it takes knowledge, hard work and a plan. At baird, we approach your Wealth Management strategy that same way. As an Employee Owned firm we have the freedom and resources to create customized financial plans built to last, from generation to generation. Well listen. Well talk. Well plan. Baird. Those little Cialis Tadalafil for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Check out what is happening with shares in a 52 week high. This drug can treat a fatal lung disorder in a late states trial. 48 to 50 a share for that target price. That is up 13 p karl back over to you. Scott cohen, more details coming out of justice. Karl, we are continuing to monitor this News Conference. First of their kind charges against five members of the Chinese Military who allegedly hacked into six u. S. Senators including the united Steel Workers union. This indictment makes clear that actors who engage in espionage will be exposed for their criminal conduct and sought for apprehension and prosecution in american law. How they will get them to the u. S. Or if they will ever be seen remains to be mean. Westinghouse, alcoa and u. S. Steel as well as the united Steel Workers alcoa saying to our knowledge no Material Information was compromised during the incident which happened years ago. We continue to protect our systems. The unit in the Chinese Military is known as unit 61398 first brought to light over a year ago. We want to let you know he will be our guest first on powerlunch 1 00 eastern time. Where he will be at the very least karl, be able to say i told you so. That is a significant tactic many would argue to steal corporate secrets. Hundreds of thousands of people may come to work every day with that stated purpose. Our ability to deter the chinese seems to occur when it comes to at least the contact between the two governments. It is interesting to note that we have gone this route. David, you know this well. You did a documentary on this a few years ago. Now we are talking about the Chinese Military hacking but there is a sense that the u. S. May have lost a bit of the high ground with the allegations if they are true that they are with the leaked documents of edward snow den. They are the first of their kind against any state actor against the chinese. It is a board issue now. Many of whom are in the fortune 500 which by the way is still happening. We dont know how much they are spending on this. The companies are spending more and more to try and deal with this. It is something that they are more open about. They were quiet about it because they didnt want to let on because they were lahacked. The supposed motive here is basically to steal trade secrets. What their cost structure is. This is the u. S. Systems life blood that the chinese are tapping into. Scott thank you very much for that report. In the meantime the federal Housing Finance agency is announced. Lets get to rick in chicago with more on that. Thanks karl. I would like to welcome our guest representative randy neunbauer. The drick ter irector of the not a cabinet position is it . It s. But it wasnt created to be a political arena. But nonetheless it seems as though mel watt is going with issues as karl pointed at the top in terms of fees or size reduction on a conventional mortgage or a principle reduction. Thinking about those terms something happened on thursday on the Senate Banking committee. Can you tell us what passed, sir . The Senate Passed a reduction on the footprint. But they replace it with another government or tax payor backed entity. This is their version of reform but im not sure that it goes in the right direction. This started out as a bill by kirker warner. But in essence even though there is a talk about 10 in the game. As you pointed out, it is taxpayer supported. My question to you is first, do you think there is a chance that this bill that the Senate Banking committee voteded on could make it through both houses and be signed into law . Mr. Fried wanted to have bipartisan support than he got for that. There was a problem with any bill and amendments. It doesnt seem like anything comes to the floor. We passed the path act in the house. It begins to eliminate fannie and freddie. I understand that. But let me stop you there. Lets have a hypothesis. That probably this big doesnt get signed into law. There is going to be a midterm election. How much power does mel watt have to lower the fees further for fee reduction. What does he have on the power of fhfa director . One of the things he could have done and something we would have supported would have been to lower the loan limits for the private sector. He has chosen not to do that. We have encouraged it so that the private market can do that. Over 90 of the mortgages in this country are under written by the taxpayers. If tomorrow morning mel watt decided that there will be principle reduction on mortgages and there isnt anything he can do no stop it . As conserve ter and regulator he has certain latitude. I do know he has the ability to do things with the gps and the loan limits and obviously i think the entities have been doing principle writedowns with the settlements. Lis ep, we are pretty much out of time. I want you to answer yes or no to the following questions. Is it now an entitlement owning a house predicated on political ties . We have nationalized the housing market. When you can control financing you control the flow of housing in this country. Thank you congressman for taking the time. Back to you. Thank you very much. A big coin startup what the smart money is telling us about the currency next. It is the knew squawk alley you dont want to miss it. Some come here to build something stronger. Others come to build something faster. Something safer. Something greener. Something the whole world can share. People come to boeing to do many different things. But its always about the very thing we do best. E but its always about the very thing we do best. Financial noise financial noise financial noise financial noise pcentury link provides reliable yit Services Like multilayered Security Solution to keep your Information Safe secure. Century link. Your link with whats next. That corporate trial by fire when every slacker gets his due. Century link. Your link with whats next. And yet, theres someone around the office who hasnt had a Performance Review in a while. Someone whose poor performance is slowing down the entire organization. Im looking at you phone company dsl. Check your speed. See how fast your internet can be. Switch now and add voice and tv for 34. 90. Comcast business built for business. It is looking likely like we are chairman and ceo will not lose their jobs. We talk a lot about big claim simon. A weave of investors are voting with their wallets. Just raised 30 million in new funding and that is the largest amount of fund iing that has ev been received. Tell us about your business. Are you trying to become the visa and mastercard of big coin . We are trying to be the leader in big coin solutions. And the future will branch out into other areas as well. Maybe the appropriate question then is growth. You are trying to displace the visa and mastercard of the world. 30 million in funding gets your attention. Tell us about it. Yeah, that is correct. You know, we have felt that bitpay should be a good home for venture capitalists that are seeking exposure over three years ago. Isnt it likely that you will get exposure from visa and mastercard . If they do that, a big move from them could be very dangerous from you. We looked at what it would take to solve the payment problem in the 1950s. You would end up reinvinting t bitcoin. Pa your website says you have about 30,000 merchants on board with you. When do you expect this to be more mainstream . We dont see it weve seen overtock. Com. Weve seen big players, the major retailer, major merchants, when do you think they will catch on . I think sooner than people imagine today. Many are looking at them already evaluating and projecting what the future 23 years out will look like. How quickly are you signing up merchants to your program . 500 to 1,000 new merchants a week. Do you vet them . The kern is people are using bitcoin in some instances for illegal activity . How will you stop that for fear of i dont know some point the doj getting involved . Certainly criminals using bitcoin does concern us. As a Bitcoin Company we feel responsibility to do everything we can to stop that, prevent that. When we onboard a merchant we put them through a series of background checks and give them a basic level of processing to start with. Once they want go to higher levels of processing, we require additional background checks. As you know, theres been some bad press around bitcoin. Mt. Box did not help with 450 million worth of bit coins. How do you get past these struggles you as a believer say this is going to be a Game Changing technology when people hear headlines like that . Its part of the early growing pains. A lot of people say well perhaps that creates an opportunity for a competitor to bitcoin to come along. I would argue if a new entrant into the currency space provided substantially the same benefits as bitcoin, you could see criminals use that system as well. We have to continue to shore up the system and make sure its not abused by criminals and then move forward. Your vision of bitcoin in this future, is it actually as an alternative currency say to the u. S. Dollar or more technology around payments . Its a technology, platform and protocol for payments on the internet. A lot of people dont realize it you can send dollars and euros over the bitcoin network. What do you have in the future as far as your relationship with richard branson. Virgin is a high profile customer and you can help send people to space using bitcoin. How else is he going to be involved in your business . I think richard is excited about any company doing really innovative things. Certainly we feel were doing that. We wondered whether we have to rebrand ourselves as Virgin Bitcoin but he didnt ask us to do that. What do you think bitcoin is worth . Went up to a thousand, now in the 400s, 500s, it is undervl , undervalued, overvalued . I think its undervalued. In the long run it will be a safe asset with modest price appreciation. Certainly, right now what youre saying is challenge growth circumstance. All right. We look forward to seeing you and seeing your company, just raised 30 million. Stephen pair, the cofounder ceo of bitpay. Thank you. Lets send it back inside where jon fortt has a look at whats coming up. The premiere is a big morning on cnbc. A little tease of whats coming up next. Do it twitter style. 140 characters or less. Here goes. A new google buy bigger than hulu or facebook. And paris on pushy bosseses at the times and thats 139 characters. Squawkally is next. Were moving our company to new york state. The numbers are impressive. Over 400,000 new private sector jobs. Making new york state number two in the nation in new private sector job creation. With 10 Regional Development strategies to fit your business needs. And now its even better because theyve introduced startup new york. With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. My golden years will not just be gold plated. Become the next business to discover the new new york. I had 3 different 401 k s. E trade offers rollover options and a Retirement Planning calculator. Now i know when im going to retire. Not if. Its called truecar. And truecar users. Save time and money. So when youre. Ready to buy a car, make sure you. Never overpay. Visit truecar. Com today. And i get a lot in return with ink plus from chase i make a lot of purchases for my business. Like 60,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards even cash back. And my rewards points wont expire. So you can make owning business even more rewarding. Ink from chase. So you can. Welcome back to squawk on the street. Check out whats happening with campbell soup. The company is in hot water with investors after posting weaker than Quarterly Sales as increased promotions fail to drive growth there. As a result, the company lowered its full year earnings guidance. It has come off its lows but still down 3 on the session. We have developments in astrazeneca, in that pfizer attempt to take them over, back at hq with more. Thats right. Ast astrazeneca rejecting that raised and final offer from pfizer today. Our colleagues in europe talked with the chairman, leaf johansson just now and had been talking to shareholders what they wanted pfizer put a number on the table about 1 113 begin. Shareholders made it loud and clear they wanted more than that. Listen to the clip right now. We had very strong feedback from our shareholders we not only could say no to increasing offers and establish what the gap was. We decided to tell pfizer at 53. 50 they needed to put 10 plus on the table to get recommendations discussions. Thats at the request of our shareholders and what we did. Pfizer not getting quite up to that 10 they offered on friday, about 124 to 125 billion. Today putting on the table, 117 billion. Pfizer is looking to that disappointment from shareholders with astrazeneca stock down 7 today to encourage astrazenecas board to come to the table. And now with the latest developments on astrazeneca and pfizer. Lets send it back. 11 00 a. M. In new york city. Squawk alley is live. Im carl quintilla, welcome to the next generation of stocks. It stands at the heart of Silicon Valley in wall street and big ideas that make them happen. Squawk valley is apple, google, netflix, alibaba, the top tcs and next generation, snap chats, ubers, pen trystinpinterest. We have been in beta. Welcome. Guy, good morning. You excited . Yeah. Im thrilled to be here. Yeah. Fun to do. First off this morning, another huge cable deal on the way. At t plans to buy directtv for the price of 48 billion. Directtv this is number one satellite tv provider in the u. S. , 20 million customers. The deal has huge implications for mobile video since directtv has an exclusive contract for the nfl ticket that we now know is key to making this stick. You cant do broadband over site. The only theory i can come up with is they will deliver tv over the