In just a moment. The premarket settling into some positions. More news on cable vision today. Japanese export data today, monday markets will be key. It starts to come in better than expected and the claims were down as well. In our road map today, u. S. Based cable vision in a deal. And more from the conference and a interview with the verizon ceo. And what ciscos chuck robins told jim last night. The day is finally here after fed policy makers wrap up their twoday meeting, well find out whether or not they hike rates for the first time in nine years. The special coverage at 1 00 p. M. Eastern time, a press conference at 2 30. The reuters pole, 35 a hold and 35 expect a hike. I wish it was a little more consensus. That means a lot of people will be wrong. I surge people trying to figure out this market, there is no hurry, you can make a determination if you want to. When you see that kind of split, you know some big bets will turn out to be not so hot. For a fed, jim, that prided itself on transparency and more communication in the past six years, what does it tell you that were going into this meeting and announcement with expectations to mutt muddled . I think the bernanke fed we would have known for a long time what would happen. The yellin fed is just a bunch of people, and maybe she reaches some sort of conclusion. I think a black box fed, as we have been talking about, is really bad for Corporate America and for financial stocks and that is what is so worrisome. I dont like that i have to care and know what will happen. When we talk to a lot of people out there, man and woman on the street, theyre concerned. I have not seen anything like this in ages. Were going to hear what benny told you last night in that amazing mad money. J. P. Morgan is taking note of the tone out of the conferences, youre not hearing management saying truly awful things about q 3 whether or not it is chip companies, luxury makers, Companies Like ge said steady things about guidance. Is the quarter coming in better than we thought given the volatility . I take my queue from wells fargo. I dont think you can disagree with what fedex says. I didnt really care for the housing start number this morning. I think the economy is kind of in a bit of a plateau, were going to hear from dafd david that things are plateauing. When numbers are cut, stocks go down . Yes, we do. Jim, lets get to one of the deals this morning. M a has been crazy in the last couple days. We dont have a deal in beer, but we have it in cable. For a long time the family that has been the owner of cablevision has never actually pulled the trigger until now selling out to altice, a French Company rapidly expanding in our country and other parts of the world. Buy buy buy all the while it says it can increase margins of the properties by doing it the so called altice way. It is an all cash transaction. Interesting when you look at it from a tax perspective. Im sure they have many tax lawyer thats can advise them. There was an expectation perhaps, but it is a big deal. And there is no doubt that it is a rich multiple at almost ten times 2016 estimated from a company that is largely fully penetrated in its area and is competing every day with the likes of verizons fios. So there is no shortage of competition. But carl and jim, none the less, a somewhat stunning deal only because it finally got done. Those following it for years, it could have been Time Warner Cable in 92. So many different things, it will be very interesting to see what altice choses to do having paid that enormous multiple suddenly. Well see what theyre capable of doing in the u. S. And whether they can follow that same play book here that they have to success in france that is a very different market. A lot of people in long island starting to learn french today. A lot of talk about the quadruple play. It will be the fourth larger cable operator in the u. S. , and i think the biggest acquisition by a foreign buyer in history. And there is not expected today be a Big National Security review or any real problem on that front, but for altice, what would be their strategy, it was not going to be this one property in the midwest. We had an expectation they would try to make a move on cable vision. James dolan basically put his company up for sale, but seeing it in print is very different than speculating about the fate of cable vision. Now we will see what he is capable. A great back story there. A very aggressive gentleman. He is presenting at goldmans media conference. But he beats he goes to the beat of his own drummer and apparently he doesnt want to talk to the u. S. , at least not yet, and explain what he is going to do. Jim, people are asking today where consolidation happens faster, beer or cable . One of the things that shocks me is that anyone that thinks they can come in and just make much more money per customer, and i think unlike beer where it is really just a case of cutting out a lot of competition if we all merge, david you have to help me here. When you pay that multiple arent you saying that cablevision is poorly run and were going to fix it with t mobile . As i have reported, we had conversations here when they did the suddenlink advantage. They borrow enormously, following a playbook perhaps that he saw from john malone. They have to come in and increase margins to make it seem like it is a deal worth doing. Im not sure what synergys i will be curious to see, i think many people will, to improve service at a lower cost for them and therefore increasing margins. They are dealing with what is the highest average revenue per person in the industry, but there are no questions about if this is a company that can be built on cheap debt or if it is about the way they operate. I will be watching closely. One thing is certain, as opposed to what bob, the ceo of disney, the below back from the last quarter, they must believe that you know what, not only are people not cutting the cord, but question grow a business that people think is in secular decline. I dont get this deal. The businevideo business is secular decline. Its just a matter of sf it this or this. But broadband is the key product and the key part of what theyre going to be providing and that is the strategy that available vision has been providing for a number of years now. It will be interesting to watch. They still control amc that may be in the talks with starz, and also about mad son square garden. People have given him a hard time about the knicks, but they have given us some value. I think he just wants a grammy, and then a stanley cup. The mets came back, why are you writing off the knicks . Im already worried, okay . Were up 9. 5, now 7. 5, im getting concerned, jim. That is a great segway, jim, but the dream force conference continues after a day of heavy hitters. Last night on mad money, i told jim he is optimistic. If you want to connect with customers in a new way you come to salesforce. We have climbed through hundreds of thousands of Software Companies from 16 years ago to become what will be fourth largest in the world and were still growing at an incredible rate. Like you say, jim, beware of missing a dip that will look like nothing for a few years ago. When we first had oracle on, it was at 5. He saw that people are beginning to hire sales people again. Maybe the fed does have to tighten. Theyre hiring sales people like mad worldwide. But i thought what was most interesting about what mark was talking about is he is not talking cloud. He is not. He is talking software. He got away from what i regard as this limitation of the cloud. She going social, mobile, artificial intelligence, and big data. And he is distinguishing himself from oracle. Larry ellison and everyone that can get in the way of building a good company. He is challenging all of these companies except perhaps for microsoft. Oracle will open up lower as you know, jim. But the revenue, it was not at the upper end of the guidance. And then are there are concerns about license revenue. Do you feel the same about oracle . That longer term all of these things will come together . I dont get oracle. I was on that conference call. Theyre so excited about possibly negative revenues. Its like next year, i have to tell you, we could be in the playoffs. I Want Companies in the playoffs now. A lot of baseball metaphors. 1964, phillys were six games up with nine games to play and my father never got to that world series with me and its not because we didnt try, they didnt. That is a tough lesson. As we said a few minutes ago, well have lowe will, coming up. Its intelligent enough to warn of danger from virtually anywhere. Its been smashed, dropped and driven. Its perceptive enough to detect other vehicles on the road. Its been shaken, rattled and pummeled. Its innovative enough to brake by itself, park itself and help you steer. Its been in the rain. The cold. And dragged through the mud. Introducing the allnew mercedesbenz gle. Its where brains meet brawn. Welcome back, i spoke earlier this morning with lowell mcamend mcadam. About 15 or 20 minutes ago they told the audience at the con friend they expect their 2016 numbers to be plateaued with 2015. Perhaps not that large of a surprise. Many of them have estimates that have 2015 at or below 2016. A lot of this has to do with the changing way that customers are buying their phones. Here is mr. Mcadam on that change. In the past we would get 200 for a phone and that was it. We would make it up for the Service Pricing. Now you get the full price of the phone over a 24 month period and Service Pricing is coming down. If you look at overall revenue, its relatively flat. The customer still brings roughly the same value to the bottom line of the company. It does change the way your earnings look. Equipment incentive plans are now the way things are going in the wireless world. At t repriced much of its base, but verizon is not nearly as far along. Its not clear this will have a big impact. There was a couple other reasons mr. Mcadams sicited as well including the recent acquisition of a. O. L. Maybe we dont have it. Im hearing either way either. This is interesting. Were going into the Digital Space with a. O. L. And with our overthe top video play, instead of lynn yard tv. And so as you readjust the model, there will be earnings and comp comparables. We talked about a lot of other initiatives happening at verizon, the new streaming offering of course, which got a lot of play in the last couple weeks for mobile at this point. Not to mention the skinny bundys they offer fios customers and amazing take rates for those bundles at this point. Well have a lot more of that interview with mr. Mcadam later in the program. Still close to five, not quite as high as it was at the depth of the august lows. Of course, if the fed starts raising rates, those stocks may come under pressure. It doesnt appear to have a significant exact on the stock today. Jim, your thoughts on what david got isnt the. First of all, that is an incredible insight. What happens is that i immediately waech the conclusion. Im not going to see a really big increase in that dive dent that i need given the fact that the fed could increase rates. You can get it for 50. It is very compelling us specially if youre thinking of cutting the cord. More importantly, why would i want to own it other than the dividend . If i can get no growth from a company, why do i want to own shares in that company . That is certainly a valid question, jim. I think the dividend is significant. At this point you probably have time to buy this thing and see how the initiatives work out. Theyre doing a lot of things at verizon. So many of the thing s in video. It will also be interesting if they are in the market with cable vision. They have overbuilt. Mr. Mcadam for his part thinks it presents an opportunity. You do typically get disruption. Theyre setting the bar fairly low for 16, but they are still 110 million wireless subscribers in this country, thats a big number. Very, very big, but i need to see bigger. It has to be bigger to keep people in that stock. While we have been talking, you may have seen the reports that gm is on the cusp of the switch probe. This is separate from the settlement of the criminal investigation with the department of justice that we will learn more about at noon when a press conference is held in new york. Separate from that, General Motors announced they entered into an agreement to settle certain civil cases. We will not get into too many details. It gets into cases where people sued General Motors. They were not part of the compensation fund. What matters is that they are announcing they will take a 575 million charge in the future. And that is separate from the settlement with the d. O. J. That will be announced later today, and we expect that part of the settlement to be about 900 million. Well get cramers mad dash as we count down to the opening pell. I take prilosec otc each morning for my frequent heartburn. Because it gives me. Zero heartburn prilosec otc. The number 1 doctorrecommended frequent heartburn medicine for 9 straight years. One pill each morning. 24 hours. Zero heartburn. Hey hi our cloud its a platform based on awesomeization really . Can it keep our data where it needs to be no matter what country were in . Integrate with our systems to help keep transactions secure . Combine Customer Data with likes, tweets, the weather, to predict trends . That would be awesome. Tote . Now theres a cloud that understands business. Now theres the ibm cloud. Just about five minutes before the bell, lets get cramers mad dash. Youre thinking of the season and youre looking at hasbro. This is amazing, here is the kind of research that i do love. 46 move, we know star wars toys are coming. But maybe its anytime to go neutral. Mattel has a big yield. I dont know if it is safe or not, but maybe it is time to go out of hasbro into mattel. They made you a fortune and they dont want to give it back. Does that mean youre more skeptical on disney, for instance, going into Something Like that . I do believe when i listen to the cable vision, i think about broad band, i do say that disney is a stock you want to buy, not sell. If we get a fed rate hike, there will be people saying when is the next fed rate hike. Im busy trying to help people make money in companies. Were going to get to that later on in the show. Well see you at the opening bell. At ally bank no branches equals great rates. Its a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. Lease the 2015 rc 350 for 429 a month for 36 months. See your lexus dealer. You are watching squawk on the street. The opening bell set to ring in about 30 seconds. Finally after all of the debail and worrying about what the fed will do, we will finally get an answer today of some kind of course the trick just digesting the decision. The intercontinental Board Exchange of directors. And a biotech company. There are a few movers here as we mark time ahead of the front. Riteaid, two cents, miss the four cent estimate. They trim some guidance. They did make an acquisition this quarter . Am i thrilled . Not when you have cvs, and walgreens as competitors, but i like the new pharmacy stock. People are going from bad to pretty good, but i understand. When you see samestore sales, people just sell. I think you to think longer term. Cablevision our biggest gainer. A muted but positive effect. It is one of the alltime highs almost ten times the 2016 estimates earnings. You charter up a bit. Comcast also up a bit, but cablevision the biggest beneficiary. 88yearold chuck dolan is finally a seller after all of these years and getting nobody would argue, carl, i think a very good price. Yes, good times at the dolan house. Stanley black and decker is up, and rbc, a price target 132. They say theyre most exposed to all of the foreign buyers and the things you talk about all of the time. Im so glad you mentioned Stanley Works black and decker was on cnbc reminding us theyre doing much more business over e overseas and europe is coming up. Talking about raytheon. If you need to know what to buy, think about defense, think about worldwide, think about what is going on. Remember that they are the answer if you think youre going to have incoming misses. A lot of countries think that will happen. That comes on the heels of the four billion dollar buy back. I love that group, karl. I know you do, jim. And you have for awhile. Unfortunately i like them. Verizon, didnt look like it would be down much in the premarket, but right now, at least, there is it is down over 2. 5 . Verizon shares down 2. 6 . They say 16 earning wills be a plateau with 15. Lowell mcadam said it has to do with the way people buy their phones. There are also other issues. And i did ask a lot of other questions about pricing as you might imagine. He really pushed back and said were seeing some pressure from the likes of t mobile and more competition there, but we will still get a 15 to 20 premium because we have the best network. That is what they have relied on for years is the quality of their network. Again, a lot more from that interview forth coming. The ledger sheet should come in three, two, one i asked him about that. I keep going there myself. Someone wake him up, i dont know how he does that. John, this is your day. Not just fed day, its tmobile day, where are you . And if i want yield, ill go to at t. Maybe the yield is better with directv. Jim, were going into a political season, the xm banks getting talked about seemingly more often. Today g. E. Aviation will create their own turbo prop design center. They say well have to start moving the pieces as we see fit. I thought this was a shot across the bow, and i think that europe wants more political. Ge has to be somewhat political. The key to this market, ge is doing everything right. This is the stock to put on your screen if you want to see fed reaction. It has not mattered at all when it comes to the stock price, jim, as you and i pointed out many times. Down over a percent tool. A rally recently from lets call it 24. 5. But i dont know, jim, at what point do people say this stock is never going up . All i can tell you is if you do everything right and your stock doesnt go up, you say you know what . Well buy in at 25 . Well do something that says we trust it. You may not, but we trust it. Not unlike what cisco has done. They bought so much stock. That is a buy back that has worked. Although some havent. I always come back, when i think about buy backs, i come back to viacom. That stock is down this morning. All of the rest of the media is middling. But talk about buying back stock at higher prices, jim, and maybe questioning whether the money would have within better spent elsewhere . Yeah, thats true. I mean bob eigart apple must be saying thank goodness for the fed were not under all of the scrutiny. Bob laughs all of the way to the bank. That stock is up 10 where from where i think he might have bought a lot of stock. Tesla is up after the 2020 numbers here, but the price target goes to 365 on the notion that battery production is going to get less expensive. We always hear about hindsight being 20 20. My 2032 numbers are through the roof. In the post jim cramer era of 2060, im using a low number. Ill be talking to joe papa. I any you nay have a question for him as well, they emphatically tell their shareholders not to tender in the offer for the company, citing any number of reasons, 34 pages why they will be better as an independent company. Well have an opportunity to talk directly to him just moments from now. As i said many times, they can say all they want, but it is up to shareholders. This is irish takeover law. In ireland, it is simply up to the shareholders to decide and if 51 of them tender in, he will not be the chairman and ceo any more of that company. He has done roadway markble job, but i guess it doesnt matt matter. Theyre in philadelphia and manufacture in michigan, theyre a geography lesson in themselves. And interesting they have about 13 of their Shareholder Base still in israel. You may think some of those shareholders are not particularly happy. What a coalition. Think about that coalition this one company represents. The luck of the irish, the jews, the eagles i dont know this is hard for know get my arms around. Verizon the weakest performing. This is one of those day thats stocks are not so important as is how everybody feels about the fed. Look at the sectors right now. It is positive or negative. None of this is particularly statically important right now. Modesty on the upside, financials on the downside, energy slightly worse and technology slightly worse. The volume is very much on the light side. This goes with the general idea of what i want to talk about which is how do you win against the fed. What strategy do you use to to win the game. Active traders, the s p is up. Theyre selling yesterday or they will be quietly selling today going into the fed meeting. I dont know what i will happen, but i made money. I will step aside and see happens. Another way is the to invest in the one and done philosophy. The press conference, emphasis on improving economy, emphasize long glide path to raising rates when and the dots lower. You do the implementation note, it was buried in june. They said they might have an implementation note upon a rate hike. It would go along with the commentary. It would explain the path of rate hikes in the hope obviously that this would help dampen market volatility. I know its risky. The whole thing could fall apart. But i think it is probably less risky than holding the market for another five, six, or seven months. Here is the Market Trends right now. This is what is going on recently. Stocks up, gold and commodities up, dollar down, banks mixed, and volatilely is a down trend. That means Market Participants do not think there will be a fed rate hike. So there is mixed messages overall. Right now the dow is down 37 points. All right, bob, we will soon see. Good morning, rick. Good morning, karl. Any idea whats in this box . I dont know either, okay . The fed was called a black box, my box is not black but i give great expect to that comment. In a very simple form it draws us into the issues that the market is trying to deal with. Not rules based, black box. The president thinks the economy is doing pretty well. Many of the pundants that dont want to see tightening which is it. Timing is bad, what will we do, jump from keeping it zero to we get a recession . Then we go back to qe . I dont see where there are many choices here. Lets look at the markets. Two year, lets go all the way back to april of 2011. Thats where were sticking. This is a great yield curve. If you look at it starting in august. We flattened and we held on to it. Is that a call . Im not sure. Flattening associated with fed tightening. If you look at what is going on with the rest of the curve, look at a twoday of each. Its key. You want to watch yesterdays high, watch that yield on tens and 30s. Lately when you take out previous extremes, market grabs some momentum. Most of it has been on the up side, the yield downside in price. The last two have been fascinating. Like that yield curve, it is going nowhere. And the trade that is much more appropriate when economies are under the microscope for growth, the trade weighted sdldollar is doing better. Thank you Rick Santelli. Up next, an exclusive interview with the ceo and chairman of perrigo, joe papa as they reject a take overbid. I was out for a bike ride. I didnt think id have a heart attack. But i did. Im mike, and im very much alive. Now my doctor recommends a bayer aspirin regimen to help prevent another heart attack. Be sure to talk to your doctor before you begin an aspirin regimen. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. Good. Very good. You see something moving off the shelves and your first thought is to investigate the company. You are type e. Yes, Investment Opportunities can be anywhere. Or not. But you know the difference. E trades bar code scanner. Shorten the distance between intuition and action. E trade opportunity is everywhere. Perrigo announcing that they have officially rejected mylans offer. Here to give us the details is joe papa, the chairman and ceo. Thank you for coming in. Some will say you can say all you want, but its up to your sha shareholders. Where do you still think you a chance of winning . We have a very smart share of share olders. It is a very weak premium. Number two, it is a deal that will dilute our growth rate. It will dilute our multiple. For all of the financial metrics it doesnt work. We think this is a bad deal for our share olders and we think it will be smart and rational. Mylan would say were paying 19 or 20 times, a high multiple in your industry for a company with a 6 organic growth rate. I would differ with that comment. First i would say that we certained this multiple. We have had a growth rate of about 15 of the revenue side and nearly twice that on the bottom line. I think the growth rate we have shown from organic is a important part to the company. I think theyre point would be it is only 6 or beganically. But i do think that what we have been able to do now especially is build on and bring in additional business into our company. So for example, on march 30th we closed the omega company. Ork omega is very important for us. We think is a very important. So we have had the opportunity to speak off camera a bit. Math says there are enough shareholders in your company or long onlys that have pe are, rigo, doesnt simple math say youre not in a good position here to win . Dilutive transaction on the growth rate. For those reasons we think our shareholders will make a very rational decision, and if they hold on for a short time well deliver results even superior to this without the risk. Why . Because of our track record of what we have accomplished as a company. One of the important things in a mylan has not said is they hav to take a lot of cost out of that system. The other thing is that we have a billion dollars in revenue that is subject to change of control provisions. It would kick in and that could cause up to a billion dollars of potential risk that that have not yet identified. We think that is important to our shareholders and employees. So you cant do something that so called frustrates the offer like going out and buying someone else, but you can sell yourself to the highest bidder. There are things that we will continue to look at. I would say pryer to their arrival, in the nine years, we have done about 23 transactions since mylan announced this offer on april the 8th. We have done four additional tra transactions. We have done them before, during, and we will do them after this goes away so we can continue to believe that a year from now, we would be a bigger, better company. Driving shareholder value. A big supporter of your company is jim jkramger who hasa fe for you. They it literally put a lit on the stock and that is exactly what happened. Do you think theyre putting a lid on perrigo that had a pretty good quarter . Mylan has problems that they and we have identified as we talked to shareholders. They have a large product concentration risk. There is a concentration risk they have announced that they will get approval for a generic alternative. The products have been declined 9. 4 a year. So they have significant revenue short falls that we think are holding down the value creation, so we absolutely agree with your statement, jim. Early november, and it looks like you will lose this thing, is there a rip cord you can pull . We feel strong about our stand alone case, but we have done 27 different transactions in the nine years. We will continue to look at it. We believe this is a bad deal. And the shareholder wills decide. We appreciate you coming to visit with us today. Joe papa, chairman and ceo of perrigo. Well talk trading with jim in just a moment. The internet of things. What were recommending as your consultants. The new consultants are here. Its not just big data, its bigger data. Were beta testing the new wearable interface. Xerox believes finding the right solution shouldnt be so much work. By engineering a better way for people, process and technology to work together. Work can work better. With xerox. All right, yesterday was a pivot day for fitbit. It is a viewer favorite. A 340,000 target person deal. It is still a technology company, but into the health and wellness company. They addressed apple directly. This company, fit bit, will lower your insurance bill. It is a buy and that is why i cannot wait to speak to james park, the ceo, later tonight. And john stumpf talking about burying the lead there as well. Theyre talking about a weakening commercial realize. I guess that is really the time to tighten. Because brazil is falling apart. I cant think of a better time. We mentioned legere saying omg what a glorious day. I have stage at gs conference tomorrow. Seems like verizon has a stomach ache. Verizon is down 4 , but it gives you a 5 a yield. Johns stock is up 45 . Well see you tonight, jim, at 6 30 eastern time. Lexus gs. E 306 horsepor experience the next level of performance, and theres no going back. Lease the 2015 gs 350 with complimentary Navigation System for these terms. See your lexus dealer. Awe believe active management can protect capital long term. Active management can tap global insights. Active management can take calculated risks. Active management can seek to outperform. 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Thankfully, mary miller banks with chase for business. And with greater financial clarity and a relationship built for the unexpected, she could control her cash flow, and keep the ranch running. Chase for business. So you can own it. Good thursday morning and welcome back to squawk on the street. Four hours away from the fed decision and you can see the investor Patrick Swayze starting to square positions. The dow just about 17 points to the down slide. Oil having a relatively good day. Hey, rick. If you look at the headline number, we ended up exactly as expected except for one thing, a minus sign. Were minus six and were looking for positive six. It is the lowest number since february of last year. I take that back, its the first negative number since february of 2014. The lowest since were over minus seven in february 2013. Employment, 10. 2, doubles from our last look. That is good nice and the new orders is pretty good nice as well. 9. 4 versus 5. 8. So the headline might reflect the weaknesses. Well have to synthesize it. The real question is the Federal Reserve bank of philly on the phone with janet yellin right now . Im not sure, back to you. Good question, Rick Santelli. Thank you for breaking data. It is fed day and not just any fed day, one of the most widely anticipated days. It is coming at 2 00 p. M. Today. Steve leishman is live with us. Not sure the recent data makes it to the halls of 20th an constitution for the discussion. I want to echo what rick was saying. Im looking at the internals here and the ones that im seeing, not all of them, but some of them are strong. Capital expenditures up pretty strongly. Employment up, new orders up, conditions in six months, up. Im not sure how they arrived at this negative number. Ill have to look at it further to understand it, but i think the fed will take this with a grain of salt. They could hike rates for the first time in nine years. I want to look at what are the two most important comments made in the lead up to this event. On august 26th, after the tremendous market volatility we had, he said the decision to begin the normalization process seems less compelling. He did say hey, by the time the meeting rolls around it could be more come belling. Along came stan fisher, and he said that when the case is overwhelming, if you wait that long, you will be waiting too long. You can always make a decision in the face of uncertainty. Lets take a bigger look at the current make up of the Voting Committee and see if yellin has the votes to hike if she wanted to. It may be a lit more incollided to hold the line at zero than to hike. There are also board politics at play, powell, fischer, r less liken to oppose the chair. Then you San Francisco fed president John Williams who was the head of research at the San Francisco bank when yellin had the president s job. And that will be especially true if there is no hike, but there is a hawkish comment in the statement about coming rate hikes. Then you have jeff lacker to the right. The most likely no vote if the fed doesnt hike today. Recently gave a speech on the case against delaying hikes. He would not decent if there was a clear message of a coming hike. A dovish governor could decent for charlie evans, most likely candidate for a decent. You cant rule out braynard. It is really the chairs committee. It is by virtue of tradition and the committee. Well see what happens in a few hours, steve, thank you very much. Steve leishman, are investors reluctant to take positions ahead of the fed decision in probably. Lets bring in our next two guests, good morning to you both. Good morning. Good to see you again, bob. It looks like youre thinking we all are overthinking this a bit and because of that it would be good to get it out of the way, is that fair . The markets have been obsessing over this for a long time, and we have had an emergency Monetary Policy for a long long time and there is no emergency any more. We just need to get it over with. I agree its not an ideal time, but i agree that you cant wait for an ideal time. I think it is time to put this in our Rearview Mirror and people will learn that a quarter of a point on the fed funds rate in an economy that was last growing at a 3. 7 rate. I dont want to make too much of a Regional Manufacturing index, but it speaks to the start and stop of the recovery and whether the fed could do anything about it and if Interest Rates will help correct that. What do you think . I would not read too much into that one number either. What i would say is that what the fed has put into place has been an extraordinary apparatus of communication. So over the years they evolved their communication strategy to be one that was very opaque and is now very transparent and they laid out the road map. And with the Unemployment Rate at 5. 1 and moving lower rapidly, if the fed does not move they could find themselves in a situation where they would be forced to have to move faster than what market would expect and you could end up with a more painful reaction by markets if they delay too long. I agree completely with bob that it is time to move this rate higher. Kevin, i really have to push back on the idea that this is a transparent fed. The market is so divided. You can look at the balance of probabilities and say that there will not probably be a rate rise today. If they do and they left that as the market signal for now a considerable amount of time, people say why didnt you correct us or lead us. Arent Central Banks supposed to instill confidence, not create a lack of confidence, which is arguably what we have here day by day by day. I was referring to if you go back to a decade or two ago, Monetary Policy was seen as only effective if it was done with almost no foreshadowing given to the market. What im referring to is that there has been a big change. The whole idea that they provide this kind of detail and forecast on the board is a marked change from where it was years and years ago. Maybe its not as transparent as some would like it to be. But bob simon, may i comment on that . There was always going to be a huge a symmetry here. You want to say guys, the good times will last nor a considerable amount of time. You to pull back when youre going in the other direction otherwise you scare people. That was the fault. Simon . Yes . You are assuming these people knew for the last couple weeks what they would do. Im assuming they went into the meeting waiting to see how everybody feels about it. I saw a chart today, people compiling the number of references to china in the beige book. That is as money at the prior eight combined, i think. How much of that will weigh at the table this morning and afternoon. If it is as it was when i was there, they usually just take the foreign things into account to the extent they expect it to affect the u. S. Economy. I doubt doubt it will be a major topic, but china is extremely important. It is a second largest economy, the fastest growing. They had a very sensible exchange. I think what they did was sensible and modest. 1. 9 and at the end of the week 4. 4. I think they have been very responsible. I think what they had been doing with the stock market cost them so much credibility that the world overreacted to the Exchange Rate change. Are we enjoying king dollar . You called it a long time ago. Thanks, guys. Make sure you tune in this afternoon for a cnbc special report covering the fed decision and the news conference. A large deal in the cable business that has been in the works for a long time. All in cash, interesting to note because you imagine the Capital Gains for the family. It would be rather large. But im sure they have plenty of money to pay tax advisors to figure out how to avoid paying those taxes if they are. They represent almost ten times, ten years worth of the companys expected to generate next year. That marks a fairly high point for cable valuations. That is one reason were seeing, at this point, comcast up 1. 5 , charter up 2. 5 . Dish is up as well. It is not a cable company. The question is will it be worth it. They can expand and found itself with only one property, that being sudden link for which it paid a very hefty multiple, a small or medium sized operator in the middle of the country. Expectations had been if they want to develop a u. S. Centric strategy they need to make an acquisition. The fact is there is not much there. I reported on their interest in Time Warner Cable and their inabout to finally follow through with that in the face of charter being a heated having to pay more because of their interest. Cox is not for sale. James dolan put himself up for sale saying were interesting in doing something and altice was listening. The family overall will still have control of amc and msg, the knicks and rangers, but no longer control of cablevision. It will be a french property. Will altice be able to extract the market improvements that they say they can . Its a key question. It is unknown to me what they are, but they have been an aggressive operator to france and the world. They have also upped their Balance Sheets significantly, getting to todays rate move taking advantage of extraordinarily low debt, low cost of debt to buy all sorts of Properties Around the world. So a fascinating transaction for many reasons, not the least of which is after all of these years of speculation, the dolans finally sell out. I wonder if it is a coincidence, the timing, we didnt talk about the megabeer deal brewing. There is a thought, but for the beer deal you need to borrow normally. Altice will not have any trouble circulating the money one would expect. But it is a great investment. The equity deal 40 . The thought is that they would want a large portion of stock, but at this point it is very unclear what the competitikp competitikp competitikp composition is. Ther day at norfk southern. Expedia announced this morning they took over orbitz and their stock. They say they will not ultimately challenge that acquisition. Joining us now from chicago, the home of orbitz, darah. So you get to add orbitz and cheap tickets to your brand. Expedia had 28 brands before the deal, and i think were adding eight or nine, so were very, very happy to bring these assets together. You will be aware that a lot of people are surprised the deal went through. It was suggested if the deal went through you would have 75 of the Online TravelAgency Market in this country. Is that what you have at the moment . I think the distinction that we would make is that the Online Travel agency is a category and it doesnt make up a market. If you look at consumers now, theyre so much more fluid as far as moving across different devices from their pc, to tab ltablet to phone. They will go on trip advisor, google, sometimes they go to trivago and they come book on expedia and they think they have booked on trivago. So while Online Travel agents are one type of connectivity, they dont make a market. They mentioned specifically the competition from google. They also mention the growing competition from trip advisor and from the instant trip service. It is a Small Business that is growing rapidly because theyre offering cheaper prices than you and the other big rival priceline, did they save the deal for you . I cant get into their the d. O. J. s mind. I think it was overall environment. It is the size of the brand relative to the expedia brand, and the cost of distribution right now for hotels and airlines in general is coming down. More volume is going online so were making it up with volume and scale. But the unit cost of distribution for the travel industry is coming down and thats a good thing for the travel industry. The fear was and you have been cutting prices to dane market share, that it would go in the other direction that people would be charged more. Again, the d. O. J. Says it is only a small source of booking for these companies. Many independent hotel operates do not contract through orbits. It was done not arguably from a position of strength, but maybe one of weakness. There was a long term question if orbitz could survive, fair comment . I think it is a fair comment that they were challenged farce their deal went. They bunched above their weight as far as innovation went. You look at some of the work done with their analytical capabilities. The product was excellent. The company suffered from scale. When you see the innovation and the talent in chicago, i think you can create a pretty compelling opportunity and that is what makes me really excited about being here in chicago to talk with with them here. Have you spoken to them yet . Not yet, im going to go over there after this interview. In the meantime, what does it mean for the overall business . You have raised your price target to 140. I think you were talking about 17 million in cost synergys. Can you update us on the job figures and how many people should be worried about their jobs today . There is an element of efficiency. There is also an element of orbitz having access to the global independent access we have. Now, that independent hotelier will show up. There is combination here of cost synergy, and we will be able to grow the brands like we did with travelocity. We have been operating separate, but we did a good job turning around travelocity and growing it and i think we will do a good job with orbitz. Does the former co stay with you . Hopefully, barney was a former expedia guy. I dont have fond memories of him as a competitor, so well see what his role is. He was a co of a pop up company and i will do my best to make an interesting pitch to him. It was good to see you. The ceo of expedia. Coming up, he was called out by donald trump last night. Jeffrey sonnenfield will join us coming up. Romantic moments can happen spontaneously, so why pause to take a pill . And why stop what youre doing to find a bathroom . With cialis for daily use, you dont have to plan around either. 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And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. The verizon chairman Lowell Mcadam coming up. Awe believe active management can protect capital long term. Active management can tap global insights. Active management can take calculated risks. Active management can seek to outperform. Because active Investment Management isnt reactive. Its active. Thats the power of active management. Your loving touch stimulates his senses and nurtures his mind. The johnsons scent, lather, and bubbles help enhance the experience. So why just clean your baby, when you can give him so much more . I was going to the library to do my homework. It was a little bit of a walk to get to the bus stop. I had to wait in line to use the computer. Took a lot of juggling to keep it all together. Whats possible when you have highspeed internet at home . The Library Never closes. It makes it so much better to do homework when youre at home. Internet essentials from comcast. Helping to bridge the digital divide. Welcome back, the weekly Natural Gas Storage report is out. An injection of 374 million cubic feet. It is slightly lower than the five year average. Trading at 267 before the report came out. Slightly lower on this news. A couple things to think about here. When it comes to the weather, temperatures are dropping. Youre not going to be using heat or airconditioning. Demand will drop off a little bit. 267 is the low end of the range we have been trading in. We got back up to that 3 during the summer but not area to hold. 17 higher stocks are than they were at this time last year. Youre see willing the efficiency of getting it out of the ground and where it needs to go is really working at this point unless yes get forecast for a cold fall and winter. Prices now moving slightly to the upside. Sue herera, over to you. Thank you, here is what is happening at this hour, General Motors agreed to pay 900 million and entered a deferred prosecution agreement to end a from investigation into their handling of defective ignition switches. G. M. Will take a 575 million charge in q 3 to settle selfindications. Authorities in chile say an 8. 3 earthquake hit the coast last night has left eight dead. Doctors say that hungaryian police used gas and Water Cannons to keep migrants from entering the country. And the massive butte fire burning in california appears to have started when a power line hit a tree. 5,000 firefighters are battling the flame thats are now 45 contained. That is the cnbc news update this morning, and simon the Drought Conditions out there really made it so difficult for firefighters. Yes, it is an interesting country to live in, sue. Meanwhile, five weeks since the last debate, the republican candidates had another debate last night. John howard is live with the details. Where do you want to start . It was a long and sometimes chaotic debate like the first debate on fox, it revolved around donald trump, the unexpected front runner in the polls right now. This time there was a new participant and that was Carly Fiorina. Watch how jeb bush tries to take on donald trump, accusing him or distorting jebs words on women. Trump responds and it became the launch pad for Carly Fiorina to deliver this very effective put down of trump. On this he is wrong because im the most pro life governor on this stage. I was watching, and he said the statement and i said wow, i cant believe it. I will take care of women, i respect women. Last week, donald trump said look at that face, would anyone vote for that, would you vote for that face as president . He says he was talking about your persona. He said he heard mr. Bush very clearly and what he said. I think women around the nation very clearly heard what mr. Trump said. Watch this exchange with marco rubio who was a smooth communicator as well as he was in the fox debate last month. When donald trump said assimilation requires people who come to the United States to speak english. We have a country where to assimilate you have to speak english. I think that where he was and the way it came out didnt sound right to me. My grandfather instilled in me the belief i was blessed to live in a society where the son of a bartender and maid could have anything that i was aspired to be, but he taught me that in spanish. Donald trump also provided a moment for Chris Christie to pivot. He is one of the lagging candidates in the polls. He tried to play off of the exchanges over the Business Record. Fiorina talking about trumps bankruptcies, and fiorina being viciously fired. While im as entertained by anyone as this personal back and forth about the history of donald and carlis career, for the 55yearold construction work ner that audience tonight that doesnt have a job and cant fund his childs education, he could careless about your careers. He cares about his. Were going to watch to see what effect these debates have had on peoples standings. The predictions for the first debate turned out to be wrong, so we will see. It certainly was entertaining. Another big moment from that debate, donald trump and Carly Fiorina had an argument. I led Hewlett Packard through a very difficult time. The nasdaq stock index tell fell 80 . The head of the yale business school, Jeffrey Sonnenfield wrote a paper recently that ranked one of the top 20 in the history of business, the company that continues to be a disaster. Jeffrey sonnen nooeld is a well known clintonite and had it out from me since the minute i got to Hewlett Packard. They both got it wrong. Youre not a clintonite or the head of the business school. My boss and i were equally alarmed by that. Last week on face the nation mr. Trump referred to me as the head of the law school. If we could come up with the medical school, my mom would have been really pleased. We have not hit that one yet. And i think the rest of the actual clintonites will be very imm amused. I have not been a clinton advisor. This whole i think johns summary was superb. Some people really got their voice back. I think Chris Christie got his voice back and he stole what trump wanted. Trump has a very good tax package to address the issue. He hardly got to it on substance, being distracted by style issues. Carly was the voice of the common person. But carly, what she does so artfully is to divert. We have other guests that i will not name that when i wind up in tussles with them, they go for the personal invective. They come back for a misguided, malicious, false distraction. She did slice her share of the wealth in more than half, and you know, the s p was only down 7 then. She says technology was off, apple was up threefold them, dell was soaring. Goaling and facebook launched. Xerox was up 75 . Hp was in great shape when she got there and she left it in tatters. Everything she bought was shuttered so, jeff, youre sticking to your original claim, and that is the one that donald trump invoked, but just for the record and back to the question of the debate, which prompted this whole discussion about you and their records, who do you think would be in a more effective job creator for this country based on your study of Corporate Management . I think taking a look at people who solve problems, im not here to endorse anybody. Somebody that gets outshouts is john kcasic. Trump should make his set backs a badge of courage and enthusiasm. Let me pick that up. Theyre talking about it because youre calling out names of people you think are really, really bad at their job. And im not sure how constructive that is unless were able to learn lessons from it, unless thats what youre in it for, that we learn the lessons, and say Carly Fiorina learned lessons and im interested on the more positive note what the lessons are from this. That is absolutely right. Im a big believer in Second Chances and that people if youre not a mass murderer, through exoneration you should not have to be apologetic for it. She straddles, she says she does nothing wrong, but that her performance was terrible. What did she learn . She has never gotten a ceo job after ten years. She was on a board and they threw her off. Im anxious to find some positivity here. What do we learn from her experience at hp . We learn that she did not learn from her set backs. A lot of people do learn from failures and set backs. Steve jobs was a different leader when he came back. There is many people, bernie mark who built home depot was fired and started again. Martha stewart, howard schultz, the revival of dell. Comebacks are the american dream, but it cant be from failure to the american presidency as the commander after chief of the free word when she has not proven herself. She should get another chance, in ten years no one has given her a chance. Trump as come back from setbacks. Let me ask you a final question, Hewlett Packard announces another 30,000 job cuts. The company is going to split in about six months, are any of those the fault of Carly Fiorina. She talks about patents, it was dusty old heavy metal that was not her strategic direction. It was obsolete. And what did they get rid of . They got rid of the devices business they doubled down into. Ibm wanted to buy Price Waterhouse coopers consulting for 24 million and she couldnt. Ibm bought them months later. She bought compact and thats what theyre getting rid of. It took them in the wrong direction. Jeff, we have to leave it there, thank you for weighing in on the debate own the Business Record for donald trump and Carly Fiorina. Up next, an interview with Lowell Mcadam, the ceo of v verizon. The fed is the story today. The announcement, the decision, 2 00 eastern time, more squawk on the street coming up next. Crouched at the flatline while but wait for the feds. Have a look at the utility sector. One of the better performers. You till tills standing out again as one of the stop ahead of the big rate announcements. If you look at American Electric power, all up by a percent or more. David, it is so interesting only because we know if there is a threat of higher Interest Rates, these stocks tend to go lower, although we have seen that trade reverse in the last few days. Back over to you. Indeed. Getting closer and closer to that announcement. Earlier today, i spoke with verizon chairman and ceo Lowell Mcadam. Stock down because they are going towards plateaued earnings. They have a new mobile Video Streaming Service called go 90. As we look at the customer segment we want to go after, the millennia millennials, which Everyone Wants to go after, theyre not buying linear tv. 40 say i dont have it, ive never had it, and 20 say i got it, but im probably going to disconnect it because i dont use it. Theyre just fundamentally opposed to these 300 channel bundles they have been getting. What they want is that snackable content. Its more Huffington Post, its the awesomeness tv. I missed that one. I had not heard of it either, but it is a popular channel out there. The volume you see out there is port. So that product is not taking the big four, and 300 channels, and putting it on mobile. Its a digital experience that the millennials with a capability that i think is critical which is the clip and share. It combines social media with video. If i see something i like, i can clip it and send it to you and it becomes viral at that point. So our anchor is going to be the sports. We have the nfl, we announced several college there is more to come as we get to the commercial launch. It will be things like the Huffington Post and you are a phone guy. Here are you talking about awesomeness tv. Do you have the technical expertise, so to speak, and the team necessary to navigate this new world . Thats part of the reason why we did the aol deal. I am very happy with the competence that we have within our business, but we didnt feel we could scale it quick enough, david. Thats why we went in and did that. You talk about a joint venture, i believe, and i was always cure where yous as to why it didnt end up there, and some people still trying to understand fully the rationale for your full purchase of the company. No question. It has to do with accounting changes, but some will also say, hey, its a more competitive environment out there, not the least of which, of course, you will hear from the likes of john ledger. I did ask mr. Mcadam if ledgers constant nudging against to him. We get a lot of kick out of john ledger coming on, of course, and the man who runs t mobile who has done a good job in social media in terms of using their brand, but when he comes on and calls you im not sure if you are dumb or dumber, does that tick you off or is it all sort of part of fun and games . To be honest i dont pay any attention to it. I think its worked for him. Thats part of the persona of the company. Have i a lot more from mr. Mcadam in the next hour. Actually, kwaul alley coming up. Meantime, lets go to Rick SantelliExchange Live from chicago. Big day with the fed pending. Rick. Thanks, simon. I like to welcome my special guest. Mark, its always a pleasure on fed day to have you as a guest. Thank you. Thank you, rick. Thank you for inviting me. Listen, you know, there are pundits that get paid to talk about markets. I personally am just passionate about markets. Since 1979 i totally am preoccupied with every facet of free markets. Obviously your history dictates youre an expert. I tried to look towards somebody maybe a little more removed who is intelligent, and what i found was today a veteran by dan henninger, a Deputy Editor of the wall street journal, not really a business guy, but generally a smart guy, and he wrote something that he called the joy of man and said i want to read you a couple of sentences, sir. Mark, comment on that. You think he is on base, off base, on point from just a general population observation . Is he wrong or right . The best thing he has said is that janet yell sin a nice person. He got that absolutely correct. She truly is. Janet yellin and others would tell you that theres only so much that the fed can do. I think that the fed is aware, even in a time like this that they can control the money supply and in doing so they control the rate of inflation and they do that by adjusting their Interest Rate targets. Thats its really truly not a black box, but there are a lot of moving parts to it. You know, if i give somebody who has a terminal illness a boatload of grain crackers for seven years and they improve, i think it would be a pretty big stretch for me to say that the grain crackers had anything to do with it. Isnt there a significant aspect to that in fed policy, even if their heart is in the right place, and it isnt doing any damage thats because we cant handicap the future cost of zerp or quantity takive easing residual presence on the Balance Sheet, but isnt that sort of true . Isnt this a grain cracker scenario we have here . Only if you think of three and a half trillion grain crackers because thats the amount of stimulus that has been put into the system since 2007. 3. 5 trillion. Remember what the fed has been talking about for the last several weeks is normalization, getting the Balance Sheet back down to a normal size. It has to be something close to a consensus, and in this year 2015 all of the votes have been unanimous. If you were on the committee, would you vote for some form of a rate hike . I would. I would. Its time to get on its time to get on with it. I think that there would be a growing sentiment to do that, but i would also be very conscious of the fact that you do not want to have a mixed message coming out with the split vote. There is an element of strategy that i think theyre thinking about. Would you tweak the Interest Rate paid on reserves . Not at the moment. I would tweak the target, but not the Interest Rate paid on reserves. Remember, there are several new moving parts. The thing that we need to do is get back to the point where we can allow some of the runoff on the Balance Sheet and in order for that to happen, we have to get to liftoff. Listen, mark, we have to call it there, but thank you again. Im going to be looking at 2 00 eastern to see what is going on, and, of course, hopefully well email back and forth. Sarah, its all yours. We will see you again later in the day. Rick santelli. Coming up on squawk alley the netflix for podcasts. Thats after the break. It took Joel Silverman years to become a master dog trainer. But only a few commands to master depositing checks at chase atms. Technology designed for you. So you can easily master the way you bank. Pubut to get from theand yoold way to the new,d. Youll need the right it infrastructure. From a partner who knows how to make your enterprise more agile, borderless and secure. Hp helps business move on all the possibilities of today. And stay ready for everything that is still to come. Good morning. 8 00 a. M. At the reagan president ial library in simi valley, california. Squawk alley is live