Road map begins with a meg amerger in the works, qualcomm considering but re, a deal with broadcom, plus softbank in the failed talks to get together with tmobile, betting the Wireless Network will prove critical to support future growth and ill have more on their future plans. 11 royals arrested as the crown prince moves to consolidate power. The news of the morning that was broadcom confirming the unsolicited byover bid for qualcomm they acknowledge receiving the offer and david has been all over it all morning long. The question now will be when not if they reject the bid because they rereject. The only question is how long they take. They need to review it and need to be fair they have not spoken to broadcom, as i reported last night, there had been an attempt made by broadcom when it began some months ago to engage in talks with qualcomm. That was quickly rejected. There was never a formal proposal made, they were given the heisman so early at broadcom they wshts going to get anywhere and attempted to have a similar conversation about a potential deal before the nxpi deal was nixed. The thought was we have no interest this morning we get this enormous unsolicited bid at 70 bucks a share. Its going to be financed by consortium of banks who issued a highly confident letter. Key questions will be when they do reject will be antitrust review they are going to say it will be lengthy and frougt youll hear a different story from broadcom and price, 70 a share they are saying undervalues dramatically often times when these kinds of things start, you know the initial bidder has got more room to go up the question is how much more room and whether thats going to get them in any way shape or form to get broadcom to engage jim, id love to get your thoughts on the price itself at this point we know it is an open tunistiis time saying in a key line he sent me, we would not be making this offer if we were not confident that our common Global Customers would embrace the proposed combination. Now, david, you know that this is a war between apple and qualcomm i know the war will be settled instantly the moment hawk tan ran both companies it ticked at 70 a couple times before they decideded to go scorched earth against the biggest customer david, jana put on independent directors and david these people are not to be trifled with mr. Henderson, how about Mark Mclaughlin of palo alto, he isnt saying we cant talk to them, i think hell say lets see what we can get for this company. You raise a great point theyll be relied on by broadcom, a hope to introduce that talk in the Board Meeting where they discuss this, but i fully expect that the initial response will be a rejection, jim, of course based at least on reporting ive been able to do thus far the question will be what does broadcom do . Do they go all out hostile here . Do they undertake a proxy fight to try to place members on qualcomms board and need to decide that within the next month. The deadline for nominating Board Members will come up very soon typically qualcomm has the meeting in march and that will put shareholders in a difficult position because youll be needing to make a decision on Board Members without really knowing the decision on antitrust alternatively broadcom could wait a year and a half before they get the antitrust approval to go after the board if they want to go that route. Go ahead, jim haq tan takes a long term view he crafted a company with unbelievable intellectual property i think in the end there is not a waste of time. Look at the acquisitions hes had and amazing combination hes created and the man is loved by his customers. David, i ask you, is mr. Mollin kof loved by his customer snz zblo no hes not deal after deal a lot of companies we have talked very positively about, mike pearson was a hero o and the deals go on and on and then they stop and then what happened are we disputing that mr. Tan doesnt have the largest intellectual property in the new apple devices . Are we disputing the fact that the broadcom wasnt a Great Company when he bought it. The evers charge is a little hard for me. You knew evers, i know hawk. I dont mean to imply that, for the record, worldcom used a lot of stock in all of this deal. How about we use brett. I do mean to make the kmar son to an acquisition machine that needs to do deals to keep moving forward just like a shark needs to keep moving forward to stay alive. 25 a change. Can we use Brent Saunders instead of evers this is bothering me. Probably a good idea. All right, fine. So you like tan, youre a big fan. It reminds me theres so much going on. Broadcom. What are you doing out there . Because i dont think we could stay i would be punching you intel and amd teaming up to take on nvidia, another story today and a reminder of how busy things are on your beat, aetna, cvs and time warner and at t and sprint tmobile. Well come back to nxp and the importance of that overall and thats a 38 billion deal that could be in question. These guys dont want it but willing to let them pay 110 but no more. Qualcomm needs it. Qualcomm needs it and by the way it would be more highly valued with it and yet the price wont change if they get it at 110, which is kind of odd. I know. What do you think qualcomm is worth . 85, 90. Okay. This company has got unbelievable intellectual property it deserves im looking at 70 as the base price over the couple of years. Yes they killed themselves and moved it down. But they are incredibly valuable if you can solve these lawsuits, they would be everywhere it is such an important deal will hack tan pay 85 maybe they dont need it did you see how little stock jacobs owned how little he owns, yes earn mollenkof doesnt own a lot but they are big talkers. At the same time, if antitrust is an issue, hell or high water well go to the mat, theres a lot to come here its been a long time though ever going to happen . Really . Youre going with greg hayes earlier you went with bernie evers. Theres come hell or high water and hayes never going to happen they can use antitrust effectively the same way that United Technologies did in defending honeywell. Well see. I would disagree because qualcomm combined with broadcom gives those companies a little leverage versus apple and samsung even as hawk tan has great relationship with both. I would hope tan would have joined us. He is im his person fiction i know. Were going to do it later. Frankly, its everything weve reported about it. Youre there, isnt john ledger there where i usually sit . No, hes not. Hes spinning, hes doing some spinning and then hell be there. Still to come this morning, we have to touch on saudi prince alwaleed among those arrested in a corruption crackdown. Well get a live report from riyadh theres reports they started to freeze accounts of those arrested take a look at the premarket coming off eight weeks of gains, havent done that since 2013 back in a me mont ron somethings going on at schwab. Oh really . Mont thank you clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to wealth management. Its what saudi arabia is calling a corruption crackdown prince alwaleed arrested along with others. Lets go to riyadh this morning. Good morning, hadley. Reporter good morning, carl, this is the clearest sign yet from the crown prince of saudi arabia, that no one is above the law. It targeted big Business Leader and Foreign Government ministers and members of the saudi royal family the big question is who did what and when there are possible charges of corruption, Money Laundering and even of course abuse of power and were waiting to hear more on this. What weve seen so far in the local press reports that the saudi government has already started cracking down on some of those involved including the freezing of some accounts, as well as potentially arrests even more so than weve heard so far in terms of naming for these folks involved in this crackdown. One of them of which is saudi prince alwaleed, Kingdom Holdings has investments in apple, citigroup and lyft and twitter. What i can tell you is the interesting part of this Kingdom Holdings shares down for a second day even as the Company Released a statement where the ceo said they have the support of the saudi government. A lot of conflicting narratives here one of the things that is really important to point out, in terms of the power struggle and power shift between the crown prince and potentially other members of the royal family, this is seen as a move by the crown prince not just to make a statement in terms that he is in charge of this country and in charge of the economic agenda but major statement in terms of where this country goes next. We saw this Major Investment Forum one week ago lots of people coming in all around the world and trying to prove to them this is a country hadley gamble, we appreciate that before we lost the signal the implications here are multilayered whether its oil prices or the foot youuture of ipo and Kingdom Holdings and stocks they own. Im wondering how much the war with yemen is playing a role here and how much the possibility that theres just that prince alwaleed was much more lets say on his own running his own thiefdom that said, i thought he was pretty synonymous. This is rather incredible. Obviously hes such a westerner in that environment that if the regime really wants to be western, you would elevate this man not put him in the ritzcarlton somehow being a jail i dont know, we dont use we like the tombs or lirikers but hes in the ritz. They dont have the rule of law there in the sense that we have it. Sort of can make it up as they go along is my understanding. Well talk to Andrew Sorkin who was there two weeks ago spent a lot of time with prince alwaleed. Where the tone for 2030 was different than what were hearing this morning well look at the premarket. Knock Stock Exchange will hold a moment of silence in a few moments for the shooting in texas. Were back after a short break of out performance. 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Busy week shaping up today, we have and the president remains in tokyo before he leaves for south korea tomorrow. Mentioned the saudi political turmoil and venezuelan turmoil which will cost goldman to the tune of multimillion dollars. And were still watching the Movement Towards tax reform in washington dont want to take our eyes off that the progress or lack there of made. The new york Stock Exchange and nasdaq are about to observe a moment of silence for the shooting in the sutherland, texas, two of the five deadliest shootings in this countrys modern his electric hatory have the past 30 days, ages 5 to 72 heres that moment of silence. Question. What is an answer and how can you measure the value of one . Today trusted answers from trusted sources are rare and precious commodities. And when industries are undergoing massive transformation, opportunities are only opportunities if you can find an answer that separates fact from near fact. 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Andy drove is rolling over in his grave right now because intel is teaming up with amd, processor and graphics chips in order to take on nvidia. David, intel and amd have hated each other since their formation. This is amazing. Brian krzanickrzanich, not as aggressive as hock tan, soft spoken, he is determined to take them on. And the graphics chips are second rate versus nvidia but thats okay. Just like intel, seeding no ground, whether for autonomous driving or gaming, this is incredible, david. And right before nvidia reports this week. Gutsy. And so does it represent a real threat for nvidia, jim or should nvidia is much better. Or sign of approval, how strong it is i would use the word desperation but i like Brian Krzanich much too many i do think amd is not as good at gaming chips than nvidia but intel has a lot to game. They should have been in gaming chips for years. I remember during the andy grove era there was talk they had to be in gaming, nvidia meanwhile went into gaming whole hog the nvidia chip in the Nintendo Switch is the best chip. Amd is in xbox i do like what krzanich is doing. Intel moved up great quarter, processors are back for pcs and mobile eye will be a winner. Krzanich wants to take no prisoners but hard to get nvidia do feed it i think theyll have a huge quarter. You think intel maybe overstayed or relied on pcs for too long yeah, i think so but krzanich is moving so rapidly to change it and kri szanich is a leading intellectu intellectual he understands what intel has to do amd and intel, there was a period i felt intel kept amd alive to get the Justice Department off their backs this is amazing. Its almost as amazing as david saying that hock tan is bernie evers. I did not say that. You are going to get me in big trouble. Lets not replay that moment. Hey, aint going to happen. Aint going to happen, david meanwhile, the new york fed confirming a report from steve looes man that bill dudley will retire and early retirement meant to ensure his successor in place before his term end. His run the new york fed since 09 hes going to be 65 next year and the number of potential openings on the seven member board, jim, could be as many as four depending on how others come along. This is rather remarkable i knew mr. Dudley at Goldman Sachs. He is just the most sound level headed guy but you know what, i think jay powell is sounds and level headed the appointment of jay powell means dont expect to see wholesale change at the fed any time soon. I did like dudley very much. I think this quarrels appointment was much more radical but dudley was someone who might say reason, not a dove or hawk, just reasoned jim, it does bring us to what the 10year is doing this morning, 2. 32. I mean, what does that suppression mean is it a reflection of some of these increased political uncertainties that weve seen crop up around the globe could be. I mean i just wish theres not enough loan demand to move the 30year. Jamie dimon will say thats because we dont lend enough with this new fed i think there be more lending. Theres a lot of belief among the big bankers i talk to, you get a loan if youre rich enough that you dont need a loan and i think thats the narrative that they are trying to undo right now but do think a flat yield curve initially will not be bad for the stock market. Usually the first few months work higher for the stock market as were seeing with what you were saying, eight straight weeks, its a monumental rally still unheralded and not liked. I think the headline in the times qult, a bull market should make investors happy. This one isnt despite all of the confidence numbers and sentiment numbers, still so much except skepticism after quadrupling 09. We all struggle as anchors with the notion theres more wealth created than weve ever seen in the fang stocks but also in far broader than fang but nobody really cares. I was at the eagles game yesterday and usually you know, when someone would have mentioned stocks no one, mostly focused on an 81 team no one asked whether you should own apple or trade it . There was a time i would go to an eagle game and yo, what do you think about qualcomm do i buy Phillip Morris here now they yet, what do you think of wentz lets get the open being bell s p at the bottom of the screen as jim said coming off eight weeks of gains, s p is up four straight days. By the way, 51 record closes this year. The record is 77 at the big board today, celebrating the loss, Franklin Liberty shares and distributor of industrial and Construction Supplies celebrating its 50th anniversary