Apple saying shares are massively undervalued. Recent history repeating futures pointing lower after a big recovery from a dramatic selloff tuesday. Alcoa and pepsi beating the street. Leadership, gap shares down. Murphy announcing he will be retiring. Carl icahn released an open letter to apple ceo tim cook saying the Company Shares are massively undervalued and should be trading at 203 a share now. Icahn expressed support for cooks leadership, urged him to accelerate the share buybacks. He would not tender a share if apple institutes a new Share Repurchase program. Calls cook the ideal ceo. Says this is not a criticism. A long letter about how the market is getting this wrong. I think you are right to say its about how Institutional Investors are underinvested in apple. He also says if you want to get those investors, you cant just keep doing what youre doing. Youve got to really create a short squeeze from the tender offer. Sell 25 million tvs. Its not scathing, but it says, all right, tim, ive been around forever. You are a newcomer. Do it my way or the highway. Whats the highway . I dont know. Hes going to, what, launch a tender offer himself . At 800 billion . The letter reads as if carl icahn owns the supershares and cook works for him. This is yonker state shareholder democracy. He has three votes versus one. If i were tim cook, i would say, will you please give me a break . I wonder whether you feel a need to respond if youre apple. We should point out, obviously, carl icahn is the biggest, baddest activist out there like leroy brown. Like superfly bad. Often when he is acting in a proxy or hostile manner, potentially to a company, hes already talked to or been talked to by many institutions. The activists are doing the dirty work of many the long onlies who wont speak up. In this case he owns less than 1 , granted, huge number, but you do wonder hoe is speaking for. Does he have the support of those long only who represent a lot more of these shares and doesnt need to generate a response from apple, which already brought back more stock in history. Its almost as if other companies should learn about how to do a buyback. Tim cook does the best buyback ive seen. When the stock comes down, hes there. Listen, you know what . Your top five nfl quarter, but youre not good enough. You need to be peyton manning. Youre drew brees . No. Youre Philip Rivers . Forget about it. You are not a playoff quarter. Its like, are you kidding me . What does it make the other guys . We are going to hear from icahn this afternoon at noon. The fast money halftime report. And from brett icahn and David Schechter. He goes out of his way to cite brett icahn and schechter on their fund surpassed carls own. Perhaps planting the seeds for his son to grow more. Will he reveal the 25 million tvs that are going to be sold by apple . Will he reveal prototype . No. And the bruising debate over ebay. Take a listen to this. Remember the star trek episode where they have the good and evil captain kirk . Its one of those things. Carl is evil. Hes got the cash and goatee. Carl is the opposite. He lies, he makes stuff up. His inner 6yearold comes out. He slanders, taps his inner 6yearold, evil captain kirk. That was a nasty fight, if you recall. Very personal icahn was raising to a certain extent and andresson had a lot of bubbles. Venture capitalists sitting on the public boards, whether they were taking the interest of the company to heart. That was nasty. Hes never gotten that nasty with cook. A company that expanded its capital return back in april to 130. Bought back 74 billion of the 130 billion as of the last time they told us about it when they reported earnings in july. Wait till he goes after the other 499 companies in the s p 500. They have a manifesto coming their way. Honestly, i read this and i just say, look, hes doing hes getting lets use star trek, hes giving it all hes got, carl. There were guesses ahead of the letter that his proposal would be more strategic. Take itunes and beats, buy contents, generating contents, making a challenge to netflix. Does this seymour pedestrian . Prosaic. There is an element of this which just says, you are underperforming what you can do. My problem with that is, again, on a relative basis, youve got an ebay which was underperforming what it could do. Youve got apple rolling out the most impressive line of new products ive ever seen from a company. It is not good enough. He wants apple to go into one of the worst businesses in the world, tv business, which would lower their margins and make it so they would be numbers cut. How do you generate that short squeeze with a tender offer. Is a tender offer right here something that would create a short, de facto short squeeze in this stock . I doubt it. There are so many darn shares. One of our smart viewers points out reduce the number of shares do you affect the waitings of index funds . He wanted them to do this the first time around. They didnt do it. They obviously did borrow an enormous amount of money, the lowest rates of all time. Lower than where we are on the ten year right now. 50 billion bond deal. It was enormous. Then began this huge buyback program. We have a response from apple right now. We always appreciate hearing from our shareholders. Since 2013, weve been aggressively executing the largest Capital Return Program in corporate history. We will review the program annually and take into account the input from all our shareholders. There we go. No shutdown. We said that here. Its important carl space out when he comes on. I think he should be on mad money to talk more about the tvs. Tomorrow should come on here about the tender offer. Go total theater. Why just one showing . We could have three showings. Ill do my show in imax. Ill do a 360 about the tv. We should do a steel cage match. Then the hug a year later . Well produce that, too. Its about time there was some fear, you know . Youve come back energized, i can tell. I am hollow. I took that island by mahalo. I was in hawaii. Yes. This is from earlier this morning. Former chairman ben bernanke arriving at the aig bailout trial. Geithner earlier in the week and one of the great quotes of the week when they asked geithner about what he thought of hank greenberg. I had a high regard for him, but a complicated regard. Very diplomatic. Maybe someone will give bernanke if he shows his stuff. Where exactly is his fico . I dont know. Its embarrassing. On the markets, what a difference a day makes. Stocks post their best session of the year recouping their losses from tuesdays big selloff. Dow gaining 275. After the minutes from the fed meeting indicated no urgency when it comes to hiking Interest Rates. Some have this notion that the feds mandate is Global Growth. Thats what they have their eye on. I dont think that the fed has ever said they are going to do anything crazy. Its only the hedge funds calling for 7 fed funds rate. They are not playing ball. The fed refuses to take the stock market down. Other than the bottom in the biotech stocks was that one call by janet yellen. Theyve been going up ever since. I look at what the fed did. They could have issued a blank piece of paper and we were ready for a rally. They said we are cognizant. We have eyes. They did say the dollar. Do you have any doubt where those things are on where currencies are going . You did not have a trade war going on with russia, the conversation would be different. The numbers out of germany are horrendous. Merkel continues that hooverlike philosophy. Austerity. People are talking about whether or not that is changing. Whether their philosophy is bending a little bit. I think it has to. There is minus 5 use of oil in europe. Year over year decline of 5 use of oil. Thats not just because of windmills. The numbers are extraordinary. The ford futures make it look like we are going to 83. West texas. We are pumping 1. 1 Million Barrels more than the previous year. Libya has come on strong. Iran, sanctions gone or lessened. Iran has come on strong. World awash with oil. Saudi not cutting output. Youll see oil go down to 83. We exported 450,000 barrels per day. We are big refiner of oil. We are driving the price down ourselves. Everyone else is going along with it. We have a bear market as of yesterday. Its not done. That said, europe, the future curve. Brent says it stops here. West texas going to keep coming down. We dont have a place to put the stuff. Maybe in those 25 million tvs. When we come back, assessing the global economy. Sarah eisen with Christine Lagarde and World Bank President jim yong kim. Gap ceo and president taking down. Downgrades today on gps. Well fill you in. One more look at the premarket. That ten year got down to 2. 27. E checked bag. With my united mileageplus explorer card. I have saved 75 in checked bag fees. Priority boarding is really important to us. You can just get on the plane and relax. I love to travel, no foreign transaction fees means real savings. We can go to any country and spend money the way we would in the us. When i spend money on this card i can see brazil in my future. I use the explorer card to earn miles in order to go visit my family which means a lot to me. Street with quarterly results. Pepsico earned 1. 06. Raising fullyear guidance. Alcoa 31 cents a share helped by what the Company Calls favorable metal pricing, Higher Energy sales. Here is what the ceo told cramer last night on mad money. We are firing on all cylinders. We have the best performance ever on down stream business. Absolute bases as well as margin basis. You saw increase of profitability year over year of 45 mid stream. The best quarter in the upstream business and commodity business since the start of the crisis, since the second half of 08 when it started to get weaker. Good interview, jim. Thank you. Higher prices, lower costs. This is closing the plants that cost too much, opening plants that cost less, light weighting paying off. This is on trucks. The take away from steel also and all other ceramics, composites in airlines, aircraft. Hes got a superior product with superior skills that is taking the place of steel in many different places. At the same time, he correctly predicted that the price of aluminum itself would go up and continue the amazing forecast for 7 growth. There was nothing, there was not a fly on this quarter. It was as good as you are going to get. Still a bellwether for earnings season or macroeconomy. Trucks in the United States up gigantically. Nonresidential construction up huge. Autos raises the forecast which is different from what you heard saying maybe from ford. Ford setting the trend for being not what we want. Packaging just okay. Carbonated soda. Although beer cited as being good. We have time quickly to hit pepsi . Those numbers 3. 1 organic top line growth. 1. 36 above estimates. Looks like a decent quarter. They raised 7 to 8 . Now taking growth 8 to 9 . Snacks are good. Snacks worldwide really good. Mountain dew good. Not a focus on carbonated soda. New alltime high this morning. Facing a proxy down the road. Unallocated costs are down. It is the best performer. Icahn goes after the best technology company. Near an alltime high. And pelts goes after the best consumer package story. This is a much better story than any other stock i want to follow. The one to own is pepsi. If you want to own technology, the one to own is apple. They are under fire. What does it say about the bad guys . Problem there if you lose, you lose money. Lets see dupont. Thats on the way as earnings season starts to kick up. Cramers mad dash as we count down to the opening bell. One more look at the premarket. Have prescriptions o fail to stay on them. Thats why we created programs which encourage people to take their medications regularly. So join us as we raise a glass to everyone who remembered today. Bottoms up, america. See you tomorrow. Same time. Another innovation from cvs health. Because health is everything. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov before the opening bell here on a thursday. We are back to do a mad dash because you are back. Somebody who will not be back at the gap is their ceo. Looks like its a murphys law situation. Glenn murphy is out. We dont know why. Glenn starts the conference call. If youre grooming a guy, the call doesnt start with here im doing a good job. Could this be a what have down for me lately situation . Inconsistently, the flagship business, inconsistent. There have been a lot of good things done by this man in seven years. 167 total return. Omni channel guy comes. In people like murphy. One thing murphy did was steady tilter. The stock has been stuck. I could understand why people are saying, come on. We see other retailers doing better. You should be doing better, too. Murphy out. Janney, stern and wells all wish murphy were still running the company. The stock is getting hammered. If hes not forced out. I dont know what the story is at all. Hes not an old guy. I dont know. Why is the stock down . Are people assuming theres bad numbers to come still . September not so great. I am going to be so bold to say you buy it. Look. Retailing has gotten great. Jc penney saying we are back to the old ways. The only company doing well is costco. Walmart stocks sneaking up. Why . The huge amount of revenues people feel sears will lose. They love costco. They are starting to warm up to walmart. Cant get away from sears fast enough. Gap joins the nere do well crowd. Well watch that and other retailers. The opening bell coming up less than six minutes from now. More squawk on the street after that big rally yesterday. Can the bulls keep it going . You know what my business philosophy is, reynolds . No. Not exactly. To attain success, one must project success. Thats why we use fedex one rate. Their flat rate shipping. Exactly. It makes us look topnotch but we know its affordable. [ garage door opening ] [ sighs ] honey, havent i asked you to please use the we dont have a reception entrance. [ male announcer ] ship a pak via Fedex Express saver® for as low as 7. 50. [ male announcer ] ship a pak via Fedex Express saver® where the reward was that what if tnew car smelledit card and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com the bank of england did hold stedy. 287,000 nonseasonably adjusted. The earnings trickling in. Weve gotten to alcoa, pepsi and more on the way. One thing klaus said, you are too gloomy in the United States. There is so much good happening here. Ken langone saying the same thing on squawk. Dont lose sight there is much good here. Thats what you are seeing. Josh brown this morning tweeted that the markets, the u. S. Market is like a guy trying to do a wave in a stadium, but nobody else is joining in. Thats the way our economy is acting, wouldnt you say . I like that imagery. Stick a gopro on that wave. Im now officially like, hey, youve made all the money you are going to make from gopro. Every inch of hawaii is gopro. Every inch. Of what . Of hawaii. The surfing there. Everybody is just filming themselves doing things. I watched a video of a go to the on a surfboard with a gopro. Okay. Done. A boar and goat. All right, enough. What are you going to do next . How can you top that . Cant top it. Keep your eye on a bunch of the momentum names today. Tesla is up 1 , as we are expecting this mysterious d to be revealed late tonight around 10 00 p. M. Twitter is causing huge havoc. There you go. Whatever. I still think yesterdays rally was, you can average the two days. Hedge funds having capitulated. Why . The fed is going to continue its policy. Over two days, the dow is up over four points. S p is down two points. The machine going back and forth. Judge, what does that mean for the rest of the week, anything . If tuesdays thursday, we go down, tomorrow pick it up. Well talk about retail later on. Limited brands out with some numbers. Get your take on what jcp said yesterday. I didnt think it was nearly as negative as people said. Going back to coupons. Big deal. L brands up 6 . Wow. Theres the opening bell. A look at the s p at the top of your screen. Down near the big board hubspot. Over at the nasdaq, rentrak. There is a nice piece in the Washington Post about cnbcs primetime slate. Worth a read. Have you seen it . I have not. I will read that after the show. Show it to icahn. Maybe he talks about it at halftime report. Shark tank. We mentioned the icahn letter to apple. Oppenheimer does take it to outperform. They believe the iphone sales are going to essentially blow away all expectations. They do add that the apple watch will, in their words, initially und und underwhelm. They are doing surveys if young people will buy the watch without looking at the watch. Maybe if we look at the watch we can make a better judgment. This game is more depressing to me than the icahn game. Guess the iphone. Its like name and number. Nail the number. Nail the number. What kind of analysis is that . Nail the number. At least icahn comes up with a whole new product line. He did. I dont know if hes making it up or what. Good theater. Is it possible that the entire sell side analyst complex, they crunched all the numbers they can, but one guy or three guys are actually right about the future of iphone sales, revenue . I read it and i was amazed. I said how the business has changed. You take a 1 position and you basically say management, heres the way it has to go. Theres not a lot of humility in the process. They dont know anything a lot of other people dont know. They are not getting a special call here. Theyre not. I do want to mention a deal, if i can. Auxilium getting bought by endo. They were in a deal to buy another company. That is now pushed aside. 33. 25 in cash and also some stock. Its a cash stock deal based on proration of 0. 488 endo shares per auxillim share. 55 premium on the Closing Price from 16. Its similar, remember tyson with hillshire. Its another deal to stop another deal. Its all about urology. Erectile dysfunction. Thats what its a play on. I actually just said that. Its true. We are now to the point in tv its not, i can say it on primetime even. Do you know how many ads for those drugs are on our air all the time. I dont have to watch them. Im not implying anything. Im just saying there are a lot of those ads so we can feel free to speak freely about it. It was a compelling presentation. I read the presentation this morning about endo. They are selling off endo. This is like allergan. Everybody feels theyve got to get bigger. Allergan goes up consistent. Endo has already inverted the deal with palladin. My favorite. One was a company in the u. S. , one in canada, they end up in ireland. Their tax breaks so many deals. Accretive. That helps when you have that low tax rate. When i read these deals, i kind of think these are companies that have been sitting there for ages. Suddenly Everyone Wants salix pharmaceutical. Suddenly they want them to run through the taxes. Salix is not inverting because they stopped the deal with cosmo. Its not clear anybody will buy salix. These companies are trading at very high levels. Salix has come down a lot. Jazz pharma. Have you seen them . I have not. Analysts play that role. When you read the analyst reports, in that segment of the market, they are talking about a Company Getting bought. Highly unusual for research to focus on who is going to buy this company as opposed to what the companys worth. Right. There are going to be more inversions. They may have higher percentages. There are some out there. They may not be big ones. I hear them from bankers who expect them to reach the finish line. These oils are getting crushed yet again. Just across the board. The list of losers all in the oil space. United up 6 . Delta again one of the best performers. Good quarter. United, a lot of people shorting united off ebola. United delivers a number that is good, not fabulous. Street raises numbers. People regarding it as a blow away. Big short squeeze there. Oil. Look. The hedge funds must have been swamped so much oil and oil stocks. Because why . They had such a miserable Third Quarter . Geopolitical tension. You figure things had to explode. There had to be a lot of middle east oil come offline. Its been the opposite. The amount of oil we are producing versus even six months ago in this country rather extraordinary. No place to put it. You are ending up with people thinking ive got to get ahead of the number cuts. Its overdone here. Oil has 4 down side. The big spread changed. Brent. Louisiana and brent are almost the same. This is fabulous for marathon peak, fabulous for phillips 66. Thats my play here . What do you need to be thinking about assuming Oil Prices May not go down that much more, but they arent going up . Youve got to focus on retail but be in the right retailers. Its walmarts time. Its targets time. Costcos time. Remember also sears. I dont know how much, im sorry if you did a lot on sears yesterday. We did some. A lot of sales up for grab. Its going to get taken. People presuming its going to walmart, target and costco. Who am i to disagree with that . Dow is down about 54 points. Lets check in with pisani on the floor. Its been a rough morning. Germany did not get good news. German exports dropped 5. 8 in august. Biggest decline in 5 1 2 years. Germany moved fractionally positive a short while ago. We were negative and trending downward throughout most of the morning. Id say europe is about split right now. Really was no follow through to yesterdays rally in germany or in the u. S. Because of the german numbers. You hit it right. Generally down side. Energy getting hit again today. West texas is 86 right now. Huge price destruction. Take a look at the Exploration Production stocks shale plays. Every day down 2 , 3 . All the shale plays are getting hit down 2 , 3 every single day now. A lot of price destruction going on weve got real pushback. Since alibaba, the ipo market has been weaker. You can see it today in several pricings we had. Here is mol global here. This is the largest epayment provider. Think ali pay. 13. 5 million shares at 12. 50. They were talking 19. 5 million shares a few days ago. 19 not 13. Master limited partnership, 19. 1 million at 17. This is a hot space with a hot yield. Thats noticeable. Weve got atento, the brazilian call center down. Travelport. Fairmount. We are getting pushback on prices since the alibaba deal. By and large, that is healthy for the market here. We have a winner today. Hub spot will be the clear winner. Talking 5 million shares at 21. 22 to 24 was the price target. This is a clear winner here. Talking about, carl used the phrase inbound marketing. I hate this phrase. The idea is only way of advertising is to advertise on a cable tv station. What they are doing is trying to figure out ways to drive people to their site using blogs and social media. We are waiting for it to open. 30 to 32 for hubspot, the one winner today. They are right behind us here. I had mark ketos on recently. Its very hard. The omni channel guys. Did want to do a quick faber report on allergan. We have news on it. The company releasing new guidance, increasing or providing an update on earnings per share expectations well ahead of what had been anticipated. It was the 20th we were supposed to hear from allergan, october 20th. There is no way we are going to sell the euro 1. 95. Multiples alone are going to get us well in excess of 200 a share or allow us to remain independent. As for those numbers, here is the update on guidance. 1. 44 to 1. 47. Now you see it over there on the left column. Significant for 14, significant for 15. 25 for 16. Amazing. They go on to say, todays announced expectations further demonstrate there is a vast value gap between valiants offer and Intrinsic Value of allergan. They continue to put pedal to the medal, as we say. Will it be enough to keep them out of the clutches of brx or to determine they need to return to sale mode and get vrx to a high price. They will increase their price. Maybe 15, maybe in ton the 20t before then. They will do so from a position of more strength given the acceleration of their business. Once again, the ceo totally delivering. Those are amazing numbers. Would they deliver anyway if they werent under such fire . Pepsico. Until you open the box, is he dead or alive . You would think pepsico, tim cook apple. David pyatte, allergan were all bad ceos. Best consumer products, best tech, highest growing, best quality of earnings. I dont know what the world is coming to. Its extraordinary. The ten year hit 2. 27. Rick santelli would know better than i. He joins us from chicago. Rick. Yesterday, 2 00 eastern, the market changed in a new york minute. Lets look at the charts. Lets start at the beginning of the curve. Lets look at at twoyear for a oneyear chart. Its at the lowest yield since mid august. You can see how its developing. The further down the curve you go, the more developed it gets. Look at a oneyear of fives and there is the lowest yield since about august, as well. You can see how thats moving lower. As a matter of fact, the fiveyear was the real big mover yesterday. The yield curve actually took a break from long term flattened rates and started to steepen. Now it gets interesting. Look at the ten year. Now back up at 2. 31. If you open that chart up, lets start the chart may 2013 to get some view. Hovering at the lowest yield since june. Theres a lot of room below us. We went through a lot of wood yesterday. Same could be said of the 30year bond as it hovers barely above 3 . Here is where it gets more fascinating. Lets look at whats going on with boons. Boons are under their old low of 88 basis points. They popped up to 90. Heres the reasons why. Twoday attack. The fed grabbed the leash and all the equity markets followed, but didnt follow very far. As everybody talked about, not great fundamentals coming out of germany. The dax twoday, barely above 9,000. That is a hugely significant level. Two day of the dollar index, was this the Main Objective . Yes. It isnt all that far away from its october 3rd highs, the highest since june 2010. Back to you. Thank you, rick santelli. Want to get to sarah issen today. Another solid quarter where they beat on the bottom line and on the top line. Just got off the phone with the kroef ceo. 45 basis point increase. I asked what drove that. He said two things, productivity savings, nearly 1 billion in cost cuts, and he talked about this pricing idea that pepsi is putting to work. Not pricing in the traditional sense where you see a higher price for a can of pepsi, but pepsi is getting smarter about right sizing, mini cans where they can get more money out of smaller packaging. Something they are doing in beverages and frito lay, the snacks division. I asked how much more Revenue Management can he do . He said a lot more in nearly all of our markets. He said we are in the very early stages here when it comes to this Revenue Management. This idea they can smartly decide what sort of packages upsizing to try to squeeze out more revenue. He was very proud of this quarter. We talked about international. He said that is going to hurt in the next quarter ahead. Pretty much in line with what managers were expecting and what he called a challenging macroenvironment. And challenging activist environment. Well come back to you soon. Sarahs first cnbc interview with president of the world bank is coming up next. A lot of squawk on the street continues. I love having a free checked bag. With my united mileageplus explorer card. I have saved 75 in checked bag fees. Priority boarding is really important to us. You can just get on the plane and relax. I love to travel, no foreign transaction fees means real savings. We can go to any country and spend money the way we would in the us. When i spend money on this card i can see brazil in my future. I use the explorer card to earn miles in order to go visit my family which means a lot to me. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Sara eisen is there with a special guest, the president of the world bank. D. Jim kim which people know him as president of the world bank, but he is also a physician specializing in Infectious Diseases. A unique perspective on the Current Crisis of whats going on good. To see you. The case of Thomas Duncan was a harsh reminder this is not just a story of africa. That this is an International Story and the United States is not immune. What is your take on where we are right now . Its a tragic case. If you think about the case from the perspective of a person in liberia who has a fever or in this case he was fine when he got on the plane, but if you are a person in liberia, right now where services, Health Care Services are not yet in place, it is not an irrational thing to try to get on a plane and go somewhere else. Unfortunately, we still have not put the Health Care Services in place in these countries in order to be able to keep people from wanting to leave. I want to ask about the cost. Your report is getting a lot of attention. What about this country the United States. How prepared or unprepared are we for it spreading here . I think we are prepared. Everyone admitted there were mistakes in the dallas case. I think what the impact will be is the heightened alert throughout the system will mean that the systems will be in place. We do universal precautions in every hospital in the United States. There is a wonderful infrastructure through the centers for disease control. I think the United States will be able to control cases coming in. The point is, and the cdc made it again and again, the only way to stop this is to stop it in those countries experiencing the epidemic. And that is not happening. Its happening much more than before, but we are late. Its 11 months into the epidemic. The right thing to do from a humanitarian perspective is a Public Health and economic perspective. Get services on the ground in these three countries. You are doing your part at the world bank. The cost is rising. You put out a startling figure of what this is going to cost african nations that are coming into Economic Growth periods. One of the Great Stories over the last five years has been the resilience of african Economic Growth. Over 5 during the time. In 2008, people thought how are we going to keep africa growing and they did. That is being lost. That is under threat, especially in those three countries. The estimate of 32. 6 billion is based on the notion we dont get these services in place. If we dont, cases will start to move to other countries. 80 or 90 is aversion behavior. Stop in productivity. There are no flights coming in. Trades slow down. Already in spain, two people who died plus maybe two nurses who were infected already were seeing the airlines, the stock of the airlines, the stock of Tour Companies is taking a hit. The fear factor is having an impact in spain. What if this gets more into a pronounced problem in the developed world . Then what happens to the cost . The answer is still the same. The cost is going to skyrocket, no question. The answer is still the same. Everybody has to focus on making sure we get fully functional responses in those three countries. We were in a meeting with Christine Lagarde talking about ebola. The head of the Uk Development group made it very dleclear. The time to invest is right now. Anyone who wants to help has to help now. Every day we wait the cost goes up. The United States is doing so much. Not enough . No. I think they are doing everything they can. I dont think liberia can absorb more. Its not just the United States government. We need Hospital Systems to step up. Ive been in conversations with the head of the greatest Hospital Systems in the youd. We need them to make a commitment to send Health Workers to stop this epidemic. You are focused on ebola and the Global Growth concern. I want to get a comment on a report out of the Financial Times talking about low morale in the world bank. You are restructuring this organization. A lot of employees are unhappy. We are undergoing the largest reorganization in 20 years but doing bake things. Any of your viewers from the Business World would know. We are doing an expenditure review we havent done for years. Thats asking a simple question, what are we spending and where are we spending it . Are we making the most use of our efficiencies . This is a hard thing for a Multilateral Organization to do. We are moving staff around. This is major. Im not surprised. When do you this, you always get this kind of thing. We are talking. We had a great conversation this week. Its almost over and well be more fit for purpose at the end. People will be happy to hear that. Good to talk to you. Dr. Jim yong kim, president of the world bank. Sara eisen. A lot more to dom in a little bit. This revolving door ceo, advanced micro. This is one of these companies that didnt deliver short term. The ceo we dont know. Its not a statement where they say the person is fired. Intel. Buy intel, dont buy amd. What is on mad money tonight. Magellan petroleum. One of these Companies Holding up in the onslaught against the oils and zoes kitchen. Can we take your temperature before you left us last week you were not excited about this market. Europes killing it. Last night they made it clear, the one end of the business weak is europe. Its not stopping. Youll see stocks go down because of europe. Dont forget, european consumption of oil is down so big. Its pretty amazing. Well see you tonight. Good to ive how back, jim cramer, 6 00 p. M. Eastern time. Sara is live and first on cnbc interview with Christine Lagarde. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. August wholesale inventories up 7 . On the sales side down 0. 7 , way below expectations. Little balancing act there. They zero each other out. What would you rather have . Higher inventories or higher sales . If i was looking for economic horsepower, i would rather see higher sales. Any revisions . Yes. July. On the inventory side we quadrupled up 0. 3 . On the sales side we took some away again. Originally released up 0. 7 . David faber, its all yours. Thank you very much. Carl icahns letter to apple is out. Shares are massively undervalued, in his opinion. Apple should accelerate share buybacks. He says they should do that through a tender offer. He would not tender his shares onto that offer. It would have the effect of reducing outstanding shares, increasing earnings per share. Apple responds already and says thanks for your advice. See you later. Yeah. This is a love letter in wall street terms. Its almost down right sappy how much he says he loves tim cook here. Im not sure its too apple as the rest of the investor base. It explains things to apple that apple surely already knows. Makes projections about products not yet released. Its certainly a bold case scenario. Assumes apple 2016 at a 1500 average selling price, for example. Assumes the apple watch does 20 Million Units in the first year, 45 million the year after that. 72. 5 million the year after that. It also assumes an average selling price of 450. If by year three the average selling price is 450, i will be surprised. I suspect they want to do kind of a mini nano strategy of being able to expand out to a younger market that doesnt buy watches for 450. Also in his conversation in this love letter, he doesnt talk about china and the potential troubles there given the fact that this is apples biggest growth market. Certainly a lot of people on twitter who are apple bulls say exactly, this is exactly the case. Part of what i would say is, this is the case somebody could have made two years ago before apple stock tanked. Those on the sidelines have to be careful exactly how they take this. We played some of the sound on our air yesterday which he called icahn an evil captain kirk. Taps his inner 6yearold. What does the Tech Community say when a letter from carl comes out like this one . I think there is a lot of eyerolling and also fear. Give carl icahn credit. Hes been right about a lot of things. The call he made on apple when apple was around 400. Netflix. Huge move there. Hes up almost 50 on his position. To be fair, he credits his son brett icahn and David Schechter on their fund. They are up huge on this position, which is over 5 billion in value. Still though less than 1 of the outstanding shares. Then there is ebay paypal, which name calling aside, now ebay is saying this is a great idea. Lets split them up. Carl icahns tactics, his showmanship, penchant for appearing on tv and the media with his calls notwithstanding, there is merit to his arguments. He puts his money where his mouth is. Well hear from them at 12 00 p. M. Eastern time. Volatility on wall street continues. We were down triple digits moments ago. Stocks in the red following yesterdays rally. Lets bring in jack vogle from vanguard. Can you hear me . Yes, i can. Sorry to interrupt. Is this carl . It is. You are on the air. Jack, im reading this piece from a conference you were at late in september in which you said, and i quote, now you can trade the s p 500 index all day long, to which i say what idiot would want to do that . I try to make my position clear, carl. What is this recent volatility tell you . Well, we are in a speculators market. The value of American Business doesnt change by Percentage Points day after day. The speculation is remarkably totally led by etfs. I took a look at the most actively traded stocks yesterday and the 12 of them traded 60 billion. 60 billion in a day. 50 billion of that was in etfs. So they served the speculator. Im not all sure they served the investor. What do you make of the more global macroconcerns about slowing growth in europe . Instability with geo politics . The potential Economic Impact of ebola. Has that got you worried . Sure it gets me worried. We live in a world where there is so much to worry about. Youre lucky if you can only worry about one thing at a time. Ive got the global economy, particularly europe slowing. Youve got the strange thing going on that ultimately hurt russia, all the bans and imports and exports, penalties people are paying there. China is slipping or seems to be slipping. So the Economic Outlook internationally is not at all clear. Probably high risk. And god knows the warlike, political, whatever you want to call it atmosphere has rarely been so difficult. Theres terrorism, horrible terrorism. There is this unknown force called isis trying to take over pretty much the middle east and making amazing progress at it. Then youve got ebola, like the bird flu of a couple of years back. When you get these global diseases, nobody knows really quite how to stop them. The market is very exuberant. I dont think overly so. Exuberant and confident. Risks are high. Investor ought to be very aware of those risks. I would say at these levels, dont do anything, just stand there. Ive got a lot of pensions that are obviously behind. They are not getting paid well in other asset classes. Do you think the risk is there for them to take too much risk on things like equities . I think investors should be very careful of attempting to get out of bonds into equities. I would not do long term bonds. Thats an investment judgment which i may not be qualified to make. Id stick to intermediate and short term bonds in my bond portfolio. The yield is maybe 2 . Its not great at all. You need dry powder, as ive often said. You need an anchor to windward. When the day comes we get 20 or 25 drop, they dont come along all the time. We dont know when they are coming, but be prepared for that. Dont jump around back and forth. Keep your Investment Program going. Have plenty of dry powder and enjoy the income you can get from common stocks. 2 is not much. Think about it as an incomeproducing vehicle rather than a growth producing vehicle. Do you blame the fed for whats happening to savers in this country . Has it been worth it, the feds action . We are probably very close to the best performing developed country in the world, we the u. S. We are coudoing much better in europe. Maybe switzerland is doing better. Give the fed credit for that. The hidden secret, the way you asked the question brings it to mind. What is great for borrowers is terrible for lenders. There is no way around that eternal tension. This is a terrible time for savers. Typical Money Market Fund yields 0. 0 and 0. 1 . They should be out as an investment alternative. Do short term bonds, instead. Good to talk to you again. We are dealing with strange dynamics and more chops in the market day to day. Come back soon. Yes, indeed. Always good to be with you. Good to see you, jack bogle. On the day after the death of the ebola patient in dallas, heightened fears in airports around the country. Meg terrell back at hq. Yesterday the u. S. Announced enhanced screening measures at five u. S. Airports that account for 94 of the incoming travelers from the three affected countries in west africa. New yorks jfk, washington dulles, newark, chicago ohare and atlanta. They are going to start increasing passport checks. If travelers have been in those countries, take them for enhanced screening, including taking their temperature and more questions. Also getting reports today some Airline Cabin cleaners are striking at laguardia over concerns of Infectious Disease protection, including ebola concerns. Of course concerns are increasing across the u. S. After Thomas Duncan being treated in dallas passed away yesterday. Questions about his care. Another patient has been admitted to the same hospital. Its not clear whether he has had any exposure to ebola. He was not one of the 48 cass of mr. Duncans who has been monitored. None of those people showed any symptoms 11 days after mr. Duncan was admitted to the hospital. Its important to note the world bank in a key meeting with stakeholders calling for a steppedup Global Response in west africa. Cdc director said the only way to make the risk zero in the u. S. Is to stop it at its source in those three countries in west africa. Thank you very much, meg terrell. Jpmorgan chases vice chairman jimmy lee will enjoy faber for an exclusive. The alibaba ipo. Dow down 90 points. We are back in a minute. trader vo i search. I research. I dig. And dig some more. Because, for me, the challenge of the search. Is almost as exciting as the thrill of the find. announcer at scottrade, we share your passion for trading. Thats why we rebuilt scottrade elite from the ground up including a proprietary momentum indicator that makes researching sectors and Industries Even easier. Because at scottrade, our passion is to power yours. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Its a fresh approach on education superintendent of public instruction Tom Torlaksons blueprint for great schools. Torlaksons blueprint outlines how investing in our schools will reduce class sizes, bring back music and art, and provide a wellrounded education. And torlaksons plan calls for more parental involvement. Spending decisions about our education dollars should be made by parents and teachers, not by politicians. Tell Tom Torlakson to keep fighting for a plan that invests in our public schools. Welcome back to squawk on the street. Check out centiva. Shareholders will get 14. 50 worth of cash. And a quarter share of kindred stock. Kindred said the deal would enhance its position as post accuse care and Rehab Service provider. Those shares up by about 7 on the day. Jimmy lee is catching the deal. Whether leading recordbreaking financing, providing on m a transaction. Jimmy lee always seems to be where the action is. Good morning, david. Great to be on cnbc. Great to be down at the exchange. One of my favorite places. A few weeks later. People look at that and say, man, that was incredible. Scovel. Did they price it too low . Did they leave money on the table . That is a good question. The thing about big ipos, pricing the ipo, the risk is really asymmetric. If you get it right, everyone is happy. Lots of smiles. The other thing about getting the price right is it gives the Company Optionality over picking which shareholders are. These guys are longterm thinkers. 1,700 different accounts. Did joe go through all of them . Joe went through every single account. He was a terrific steward of the deal. He handled it incredibly well. We went through every single name. Who had shown an interest in alibaba, why . Would they be there long term . You get the shareholders you deserve. Alibaba feels the same way. They wanted longterm shareholders. You indicated in the past. You to you toggled putting together may may transactions or making peace between carl icahn or john donahoe. You made the point in conversations we had, its similar to doing an m a transaction. Why is that . I do feel that way from the bankers perspective. You are dealing with the ceo in both cases. Dealing with typically complicated issues. Dealing with over a long period of time, and you know as well as anyone, stuff changes. Youve got to be nimble to be able to adjust to it. You still have to have this longterm goal of what do you actually want to achieve . Then when you get inside the 10 yard line, youve got to close. Youve got to put carl and john together to get a deal done or in the case of alibaba, find an issuer Investor Group happy with the outcome. Jack ma was our guest that day a few weeks ago. Are they happy with the outcome . They are extremely happy. You had jack on the set, massa on the set, congratulations. That was very interesting. He is happy. Jack ma had a huge impact on the actual ipo itself. Remember the company wasnt that well known in the United States. What jack brought and i went on the road with him, he brought this authenticity, genuine, truthtelling, open honesty, like a real valuesbased leadership model which flows all throughout the company. Hes got the customer first, employee second, shareholder third. I find that companies that have this real valuebased leadership philosophy, they tend to do really, really well. Especially in boston where boston investors can see authenticity a mile away, they loved him. He asked of his shareholder base, trust me. These were the tougher questions i know he got on the road which dealt with transparency, which dealt with some m a transactions. You spent a lot of time with him over that period of time. Should we just trust him . I certainly do. Youve got a 300 billion order book with 1,700 names. So theres a lot of trust being placed into this company. Remember, it was a global road show. It was a twoweek, twoteam global road show. Yes, there was a lot of jack, but you had two teams which is what we did in general motors. You needed deep, deep management bench to do a twoteam show like that. 1,700 investors, 300 billion book. Do you think they have the defense there . They did a great job. You have to make a conscious decision as an underwriter, can this Company Field two teams . Gm we felt they could. Alibaba, we felt they could. In both cases they did and did effectively. I mention m a. Lets talk about that. Particularly activism, icahn shows up this morning in apple. I talked about the long shadow of activism earlier this week even in hewlettpackard. How important is activism to m a right now . How important to board of directors . Its really important. It is a mega trend. You look at some of the numbers in funds closed. A couple of years ago there were 50 billion, now its 100 billion and going north quickly. Its a place where investors can find uncorelated alpha so returns can be very high. Highs tend to be super high and lows tend to be super low. The average is still quite high. Whether an activist is in your stock or might come in your stock, it is causing companies to act with increasing velocity. Ive seen these separations that have been are we going to see more . Is this here to stay . Is activism not going to be a passing fancy . I think that will be a function of the fundamentals. Will the cost of capital still stay really low . If you are a singlea right now, could you raise money at 3 . Single b will cost you 6 . Thats not exactly high yield. Cost of money is very low. As long as that stays in place, companies have tons of liquidity. Balance sheets are super strong. Buy side is supporting a lot of these moves. You reported on a lot of these deals. The acquirer stock goes up on the announcement. We dont normally see that. As long as all those things stay in place, i think well stay in this goldilocks era and activism will be present. How about m a . We started the Fourth Quarter of what has been a robust year for merger and acquisition activity. Do you see it continuing and increase in pace as we head towards the end of the user . As long as those fundamentals stay in place, absolutely. I think its going to continue to be a place where companies can achieve some growth objectives and so on and so forth. Heres the bottom line. If you are a ceo and youve been thinking about contemplating doing the deal over the last couple of years, i dont remember a better time to do a deal. Finally, i know jamie dimon. How is he doing . He is getting stronger every day. He is trying to balance wanting to be jamie dimon, but also listening to his doctors saying, okay, step by step. So he is trying to find that happy balance and doing a good job of it. Im proud of him how he is doing it. As he gets better and stronger and so on, there is a lot of smiles on the 48th floor and all around jpmorgan chase. We started talking almost 28 years ago. Youre still at it. Are you ever going to give this up . I know. You were bank lighter and i was at chemical bank. Those two old brands. I love what i do and where i do it and the people i work with. The alibaba team, the m a team is great. Youll keep at it. Yes. Pepsi earnings beat estimates. The company raising its outlook for the year. Shares close to alltime highs. Well talk to a top analyst who sees them going higher. Christine lagarde first on cnbc. 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Data can help show you how to win, no matter what business youre in. Today theres a new way to work. And its made with ibm. Lets get to Morgan Brennan in new york. We are standing outside ges conference where they delivered a keynote on industrial internet. The merging of software and Data Analytics with big machines. If you went to bed last night as an industrial company, you are going to wake up in the morning as a software and analytics company. This notion there is a huge separation between the industrial world and the world of software, those days are over. Immelt announcing its operating system is going to extend out to nonge products. 40 new applications on that system. Strategic partnerships with intel, cisco, at t and verizon, to name a few. 50 billion machines will be automated by 2020. Huge Growth Potential here. Back to you. Thank you, Morgan Brennan in new york. Pepsi stock up again. Close to an alltime high. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Whenwork with equity experts who work with regional experts who work with Portfolio Management experts thats when expertise happens. Mfs. Because there is no expertise without collaboration. I have a cold. I took nyquil but im still stuffed up. Nyquil cold and flu liquid gels dont unstuff your nose. Really . Alkaseltzer plus night rushes relief to eight symptoms of a full blown cold including your stuffy nose. breath of relief oh, what a relief it is. Thanks. Welcome back to squawk on the street. The department of energy just out with its report on weekly natural gas storage. We did get an injection of 105 billion cubic feet. A little less than the markets were expecting. We were trading at a technical bottom around 3. 82. We did see a bounce on this. Trading around 3. 87. A couple of things to keep in mind here. In terms of the temperatures outside, not hot enough to need air conditioning, not cool enough to need heat. Demand is dropping off. This is the second week of tripledigit builds we have seen. This will put us in good position for the winter and colder temperature. This number 105 is more than weve seen than this time last year. Traders are feeling good about this. They are buying here because we were at that technical bottom. Not too much movement. Trading 3. 88 right now. As long as we stay under 4, nat gas prices are in a good range. Nat gas is the one Energy Commodity that isnt impacted by the dollar or overall price of crude. Its more of a weather story, more of a supply story. Back to you. Thank you for that. Gap shares down over 10 on news that its ceo is retiring. Courtney reagan broke this news last night and back at hq with more. Its now negative for the year. Exactly. I spoke with glenn murphy and his successor. While its the first ordinarily ceo in 10 years, wall street was surprised. Gap shares gained 160 since murphy took over the helm in 2007. Compounded annual growth ratings of 17 . Retiring february 1st. Six analysts are low on price targets or downgrading shares on the news. While the board want had imto stay, murphy told them he wouldnt be able to make another longterm commitment, adding the leader strategy should be the one that architects it. After a global search, murphy says peck, the current president of growth innovation and digital was the best candidate. Hes been with the retailer in 2005. Tells me shareholders should expect consistency and continued focus. He was just told last week he got the top job even though this process has been going on for some time. His base salary will be 1. 3 billion. Bonus potential targeted at 175 . According to an s. E. C. Filing, glenn murphys average annual realized pay was 13. 8 million. Murphy will receive twoyear salary and bonuses, 10 million, unless hired by another retailer with 500 million or more in annual revenues. Murphy doesnt have any plans after january. If the right opportunity comes along, he would consider it. He also added, after all, im only 52. Thats older in the retail world. I dont know if thats true, but thats what he said. Its david. To the idea he is 52, do we know why he is stepping down . It does seem odd. I asked him over and over again. He said ive been here seven years. Im proud of what weve done. Im not sure i have another commitment like that in me. I dont know if he feels he did a good job, his work is done. We know there have been struggles. Murphy did expand all the gap brands from being in ten countries to being in 50. Stock price has gone up. He managed costs well when cotton prices were inflating. Hes done good things. It was a surprise certainly. Well see what happens. They are highly leveraged to cotton which is a nice tail wind. Theres pepsi. Nice pop after the Beverage Company got an earnings beat. Pepsi chief noted the Strong Quarter in the face of what she called a challenging macroeconomic environment. Company raised full year guidance. Lets bring in jpmorgan senior analyst. Everybody wants to know if currency will be the story. They are looking at minus 4 head wind. Is that what you expected . Yeah. What we are seeing is more of a negative impact in q4 as we cycle through declines in the euro and other currencies. They didnt talk about 2015. Thats going to be a head wind there, as well. The street seems to accurately reflect that with most of the recent negative earnings revisions. The underlying business actually came in better. Lets talk about that underlying business. We looked at 3. 1 organic top line. In north america, are we looking at anything reassembling a bottom in carbonated . I think we are seeing carbonated depends how you define a bottom. Things are less bad than before. Diets are down a ton. People dont want to drink artificial sweeteners. Trends are less negative than they were. They are never going to grow longer term. I think the market should be happy with less negative. They are talking about are you expecting mashlgin expansion . They are, too. Is that coming on the back of Lower Energy Prices . We talked about higher Aluminum Prices at alcoa. First off there is productivity. They put productivity programs in place. Theres pressure from activist shareholders to get more productivity out there. You have corn which has come down dramatically. Some of the resin costs should come down as energy costs come down. Aluminum is an offset but not enough to offset the fact that most of the commodities are flat to slightly lower right now. You mentioned activist investors. Trian is trying to get the company to spin out its snack division. Does a quarter like this take the pressure off pepsi if a proxy fight is to come some day . I think if the business is delivering versus expectations and the stock goes up, that helps. I still dont think pepsi is doing a great job in terms of explaining why these businesses have to be together. I dont think the street buys into the power of one. That said, if they show both businesses can deliver, if they get the stock price moving, most investors have less reason to be dissatisfied with management. Thats really what they are going for right now. I dont want to draw conclusions, but do you think they would create more value . I have a hard time getting more value from a sum of the parts standpoint. Begin the valuation on the shares. Also, there is a question of how does coke respond to that . One of the things i thought coke could do, when you get a favorable currency, does coke come in and go after the Beverage Business . There is an argument on a stand alone basis the Beverage Business is more vulnerable. Others say thats fine. Sink or swim on its own. My feeling is i think theyll stick with it because they can get further productivity from beverages. Why spin it out and bottom from that standpoint. Want to circle back on currencies. Everybody has been told stay domestic. Avoid companies where large portion of revenues come from overseas. Youve got coke and pepsis at an alltime high. Youve seen Growth Investors get more defensive. These are two single positions in the russell growth index. Maybe that is a piece of it. Both companies are talking, pepsi is delivering, coke talking about getting more productivity. These stocks have been big underperformers the last five years. Its a little bit of a catchup now. Good to see you, john. Thank you. John faucher. When we come back, the imf moved the markets cutting its Global Growth forecasts. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Where the reward was that what if tnew car smelledit card and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com welcome back to squawk on the street. Rebecca corbin, founder and of the of corbin perception group. An Investor Sentiment group. You monitor Institutional Investors. Thats correct. Four times a year we track heading into the earnings season. Earnings season officially kicked off yesterday. I cant believe i have a guest that would monitor sentiment. If you walk in a room that has natural gas, holy cow, lets call somebody. After a week, you dont notice it. Do the Institutional Investors you survey realize that the world isnt exact, they are on a 30,000 foot high flight the Federal Reserve is piloting. Are they concerned about the landing . What do you pick up from these investors regarding the fed and Interest Rates . Sure. Regarding Interest Rates, investors have basically priced in a low rate environment. We survey them in terms of when they expected the first rate hike. Our survey was open september 9th to the 30th. The vast majority we are expecting a rate hike the first half of 15. Well survey again to see if that news yesterday changed that. The news yesterday is perfect for having you on today. There is little chance anything on the fed side will have any dramatic changes this earnings season. Even if its head in the clouds, its important. If i have 100 to invest, what do your respondents say i do with that . They took advantage of the massive down side we saw prior to yesterday and they were in the market. These are longterm, fundamentally focused bottomup investors. When we ask where they are putting their money, its in industrials, health care, i. T. , financials. Those are the sectors. Where is the avoidance . Energy and utilities. I kind of understand considering the direction of energy. Is there anything in your survey that gives you an idea as to how these respondents feel about energy . Is it a demand issue . Absolutely supply and demand. Absolutely. Oil prices are they just america or north america . No. We survey globally. We look at north america, europe, asia, losin america. Lets look from the inside looking out. Sure. The respondents from this country, do they want to stay here or go abroad . I think its the tale two of cities right now. Investors are extremely positive and dare i say bullish about the u. S. When we asked what region are they most bullish about the next 12 months, 62 say u. S. Thats four times the number to the next region which is the euro zone. Latin america, they want onto vest in the u. S. European investors want to invest in the u. S. What conclusions can we draw from that . You know what i think is the most interesting finding . You cant look at the results in a vacuum. You have to look at the trends. I would say the thing that struck we most was potentially a disconnect. North american based investors were less concerned about europe than european based investors. The same held true with latin american investors. They are more concerned about their countries than north american investors are concerned. The u. S. Is the cleanest shirt in the hamper. Europe is the underdog. That makes it a leveraged trade. Rebecca, thank you for taking the time this thursday morning. Thank you for having me. Back to you. Thank you very much. Sara has a first on cnbc interview from washington. The Imf World Bank meeting for central bankers and financial heavyweights around the worldcom here to discuss. She is just talking in a press conference about ebola, everything from that to fed policy. Well ask about the clouds on the economic horizon when squawk on the street returns. Your customers, our financing. Your aspirations, our analytics. Your goals, our technology. Introducing synchrony financial, bringing new meaning to the word partnership. Banking. Loyalty. Analytics. Synchrony financial. Enagage with us. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. And often even more. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 89. 95 a month. Comcast business. Built for business. Comcast business. Yet another tripledigit move in the dow. That makes it 11 out of 15 or 16 sessions with the triple digit move coming after the best day for the s p of the year which was preceded by one of the worse days. Art cashin joins us. People are getting nausea. Vertigo or something. Yes. The odd thing is by wall street folklore today, before an option expiration week has a lot of volatility. I figured this morning we wouldnt see as much. I thought we dragged it ahead with ahead with the preceding two days but they have come in and given back some of yesterdays gains. It would be best if the s p stays above 1950. Below that and then it could get into some serious profit taking. We are a few moments from the marrow draghi speaking. Did he give away the story last time . Or are you expecting more today. No i think he may try to mollify people a little bit. You and i have discussed this has been his clara peler moment. Hes been unable to deliver. And i believe structurally he lv great difficulty trying to do an all out qe. He knows he did a little damage and i think if anybody he may try to mollify the markets here. How closely are you watching oil. Very closely. Im looking to see if brent breaks below 90. That could be critical. There is some feel that the saudis not only trying to maintain market share but may figure the best way to get back control is to take the price down perhaps below 80 and that would cut back the frackers and a variety of other people. Coincidentally or Collateral Damage would probably be russia and iran too. Right. You mentioned options expiration. Historically this year those are set the highs and then the dip comes following that. That dynamic not in place this time. No, not unless we have a spectacular week the beginning of next week. And well see how that takes off. But this is hyper volatility. And you cant chalk it up to the thinness and slight illiquidity of the marketplace. People are having bets called in. I dont want to say margin calls but, you know, having positioned wrenches down on them. And that is why we are getting these whip saw swings. Seasonality, october is the least profitable month for the markets but past ten years the s p has been down only five times in the quarter. Tends to make up for october. October is when the bottoms are put in historically. 29, 87, etc. Etc. So move into the next three months historically very good. You get a mild santa claus rally. The january effect. So starting in november things start to heat up usually for the market. Anything to dissuade you from that notion this year . Aside from the world falling apart . You know, obviously i have said for a couple weeks now i am very worried about isis. And i think if they take over that town, they may in fact make a run on baghdad. And that could be enormously disruptive in the middle east. And away from that, i think you have to watch the dollar. The dollars strength may in fact wind up hurting europe and other areas. Because they have used the relative level of the dollar to enhance the liquidity around the world and that is beginning to dry up a little bit. So that will put pressure on the fed now that qe has ended what will they do if the emerging markets start to shrink. So i think the dollars are key here. Art cashen here this morning. When we come back later this morning on squawk alley. Henry blojt is with us. And imf managing director and that interview in a moment. train horn vo wherever our trains go, the economy comes to life. Norfolk southern. One line, infinite possibilities. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Today could be the day. 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Of course on the inflationist, slash deflationist front and given the minutes yesterday you have to wonder what the impact of Lower Energy Prices across the board and what that means for the feds hand in terms of next year if there is going to be a rate rise and how they view it. Right. Speaking of which, a lot of the central bankers from around the glou globe in washington today. And our sarah eisen has a very important interview this morning. Im here with the host of the 3450 meeting. Christine lagarde. Good morning. Ebola is front and center. You just came out after meeting. We talked to dr. Kim of the world bank about what hes doing. What can the imf do to fight. We have mobilized immediately resources and at the end of august we sent 130 million to the three countries. Beauty of the imf is that we can mobilize quickly, disperse right away. Cash is in the bank. We did that because countries the facing the hardship of the paying people, and incentivize people to work there and we can do more and will do if its needed and this morning i said exceptionally the imf says for once that it is okay to increase the fiscal deficit if it is to help out the people. We would prefer it if a lot of grants were put on the table by the international community. That is what those countries need badly. What about the risk to Economic Growth. Can you see that coming from the spread of ebola as it becomes a global threat . It is very hypothetical because so much will depend on how the epidemic is contained, how quickly. Or whether lit spread out. If it is contained rapidly f all the measures are taken within a month as suggested by the president of liberia, then the effects will not be huge. Sure. It will cost a lot. It will require a lot of mobilization. It will require all partners to play their part but it will be contained. It will reduce growth, no question about it. Continue you wantry like sierra leone was growing at 11 . One of the highest growth in the world. It will be slashed to, you know, 3, 4 at the most but if it is contained damage will be limited. If it spreads out, then we are talking completely different story and it is difficult to put an all number on it. The forecast, the new mediocre risk. 3. 7 nrkt in january to 3. 3 now. And you see a lot clouds on the horizon. Would that go lower. We are probably sufficient advanced in 2014 to not make a huge mistake in the forecast. And i hope it doesnt go below that 3. 3 . Next near we we advised down as well to 3. 8 . It is mediocre. But it is recovery. Growth, you know, is. It is recovery. But we are still vulnerable, whether the weather or a natural disaster, gee polit tix, russia, the middle east. Why isnt this feeling sustainable at this point . Because it has the weight of the leg sis of the crisis. There areeg