He was he was krzyzewski before krzyzewski. Sir Alex Ferguson shares his secrets to successful leadership. Indeed. But we do begin with that biggest tech deal of all time with dell buying data storage and security giant emc for 67 billion. The ceos of both companies on cnbc speaking about what this merger means for them and for investors. But this mega deal also raises questions about who is going to be next. I hope youve been doing some digging and you have some answers for us josh lipton in san francisco. Well, mandy, lets walk through first just how this deal will actually work. So dell will pay 33. 15 a share for emc. Thats cash plus tracking stock linked to emcs interest in vmware. Michael dell will lead the combined company as chairman and chief executive. The deal, which needs approval from em c shareholders expected to close next year. The company will be a powerhouse in the data storage industry. Thats a 36 billion market according to idc. Brent braceland, an analyst at Pacific Crest, says this deal speaks to a bigger, broader trend that investors need to keep in mind. Consolidation is coming to the i. T. Hardware industry, he says, so Companies Selling servers, storage, networking equipment, many of these Companies Still do generate a lot of cash, but their stock prices are under pressure because of the threat from newer technologies like cloud computing. Braceland highlights two companies for us to watch. One is net app, dat that Storage Company could generate 1 billion in cash flow next year and be worth north of 35 bucks a share in a consolidation scenario he says. That stock down some 20 already this year. The other is tara data which braceland says could also be worth 35 a share. However despite even that possibility, he says hes remaining cautious for now given what he calls the soft fundamentals at work there. Neither net app nor tara data responded to requests from cnbc. Ab inbev raising its takeover offer now for the rivals ab miller. Shares of the two now basically flat right now. I getion people are waiting to see what happens, morgan brennan. Thats right. Well call this round four because ab inbev upped its offer for sab miller to 43. 3 Pounds Per Share in cash plus a partial share alternative for the largest stakeholder. It works out to a 103 billion making it one of the largest takeovers in history. This after rejected offers of 4215 a share and 40 and 38 pounds prior to that. Ab inbev noting the improved proposal hinges on the shop shareholder and bevco opting for the partial share option. The key will likely be bevco agreeing to this. We have no word yet from sab miller regarding this latest offer though the board is reportedly meeting in london to discuss this today. Were getting down to the wire here. The brewer, which owns budweiser and stella artois, has until noon eastern on wednesday to submit a final bid. Otherwise walk away for at least six months unless sab miller asks for an extension to continue negotiating. If a deal does emerge this week, the proposed powerhouse would claim nearly a third of the global beer market with total annual sales estimated at upwards of 70 billion. The deal is then likely to face intense regulatory scrutiny. And the Santa Domingo family known to be very, very tough negotiators in this. They are known to be tough negotiators and as we have heard from many analysts and david faber on our air, a lot of this hinges on them agreeing. Ewere not talking storage devices, were talking beer so this is very important. Its happy hour somewhere. Its happy hour all month, isnt it, with oktoberfest . Oil prices sliding this hour. Lets take a look. Wti is down by 3. 5 . Brent is down by the same amount at 50. 72 and opec is out with a new report on global oil demand. Lets break it down. Jackie deangelis is at the nymex with details. Good afternoon. This is very interesting action today, especially after we tried to break through that 50 level and hold last week. Obviously oil prices couldnt do it. Were sliding today. This is after a 10 run in a month. So certainly some profit taking here, and remember volumes are thin because of the columbus day holiday today. Some skepticism is definitely edging back into this market. So lets talk about that opec report because this is how traders are reading it. Theyre looking at it and theyre saying, okay, the cartel is basically telling us everything is fine. Were going to see a meaningful drop in u. S. Production next year, Global Demand is going to go up and we, opec, we dont have to do a thing. So a lot of traders thinking thats a little bit of a Wishful Thinking scenario. Not to say it couldnt happen, but they are skeptical. The secretarygeneral of opec saying that the market is going to be in reasonable shape by the end of this year and then you had the Kuwaiti Oil Minister saying there are no calls in opec to cut production. Theres an imbalance here. Not sure how the supply demand equation will work out if opec doesnt take some kind of action. Stocks are pretty steady this hour with the dow trying for its first sevenday winning streak of 2015 and the first since last december. Right now were a little mixed but flat. The dow is currently up by just 24 points. The s p is slightly down. The nasdaq up by just 0. 6 of a point. But nonetheless, theyre all out of correction territory by a considerable margin. Were watching the russell 2,000. It remains on the verge of exit. Lets get more with bob pisani joining us from the floor of the New York Stock Exchange. Welcome back, bob. Good to see you. Thank you, mandy. Volume is not bad considering its columbus day, but oil has been a problem. Energy stocks, remember, big rally in the last couple weeks. Take a look for example at chevron. As soon as oil started dropping and that was right after the open, the Energy Stocks went negative. Theres chevron, a drag on the dow, down 1. 75 . Exploration and production stocks have been hard hit today. No particular reason. I think the primary reason is they have had a great run up in the last week and a half as oil has rallied and i think today people dont have a lot of faith in the fundamentals and are simply taking profits because some serious money has been made in the last week and a half. Airlines doing very well today. Jetblue, alaska air, american airlines, delta all doing well. Railroads are on the downside and thats balancing things out. Were getting some heat in the ipo market. I was quis surpriquite surprise find out ferrari has started their road show. You know ferrari, high end sports cars. Theyre talking 17. 2 million shares at 48 to 52. This is about 10 of the company overall, and the important thing is theyre getting it done. This has been a rather poor ipo market so far in the fourth quarter. Well see what happens. The big story, of course, is the biggest ipo of the year is going to happen right this week. Scheduled to price in the middle of the week is first data. Big payment processor. This is a leveraged buyout company, 160 million shares, 18 to 20. At 19, thats about 3 billion. That would make it the biggest ipo of the year. On top of that, the same time, exactly the same time, what would be among the top ipos of the year also come. Albertsons, the big food and drug retailer, theyre the number three food and drug retailer in the United States after walmart. 65 million shares at 23 to 26. Thats about 1. 6 billion. Thats a pretty big deal as well. So a lot of stuff is being dumped on the market in the ipo market in the next week and a half. The reason, of course, is a lot of these deals need to get done. Some of them, like albertsons, like first data, a lot of debt associated with the deal. Some of the Interest Rates are rising. Some concerns out there. This is a good time to do that deal. But its been a tough ipo market. Look at pure storage. There were 11 ipos scheduled for last week. Only five made them out. Pure storage was the best one to price at 17. That was the midpoint. It was the only one to price anywhere near the expected range, 17, and you can see it was disappointing in the first few days and just now trading slightly above that 17 range. So you might ask yourself, mandy, tyler, why would ferrari make an announcement like this in a weak ipo market . Number one, they are profitable. Number two, this is a good time to go because the market has been in a slight upswing in the last two weeks. Its all about timing, and finally, theyre sexy. Its ferrari. They have a name brand associated, and its a sort of one off. Its a very, very unique product. I can kind of understand why they want to do to rigit right. When it doubt, fall back on the sexy. Profitable helps too. Lets head to the nasdaq and Bertha Coombs. Not a whole lot moving like a ferrari here at the nasdaq. Kind of flat ahead of big earnings this week from intel and netflix, but biotechs are finding some strength. They are off of their heiss at the moment. Up 0. 2 . Eli lillys failure on a cholesterol drug is seen as a positive for the socalled pcs k9 drug makers. Those include regeneron and amgen. Theyre the big players there with recently approved injectable drugs that lower the bad cholesterol in patients who dont respond to perian is deve form. In tech, its fairly flat, fairly mixed. Nxp higher. Activision ahead of the holidays and facebook with its new buy button that its going to have in its feed. Back to you. All right. Bertha, thank you very much. Americans are slowly starting to believe that lower gas prices are here to stay and thats one of the findings in cnbcs periodic all America Economic survey. Steve liesman here to break it down for us. I can see on the chart that youre going to tell us what people are doing or say they are doing say they are doing. Its all we can do right now. But weve continued to use the survey to get at this critical question for the u. S. Economy. Whats been happening to the savings from gasoline, and weve asked this several times. What we see here is a little loosening up. Not all the way, not what youd expect. Lets go over here to those who say theyre doing nothing. Thats come down just a bit. In other words, people are more aware of doing something with gasoline savings. What do they report . A very small decline, not really worth measuring here of those who are saying theyre reducing debt. Thats 18 , 19 . A little bit of an increase in those who say they are spending more. A bit of an increase in those who say theyre driving more. This is the first stage before you start to spend it is this increase of those who say, hey, i got this extra money, and im saving it. Lets look at the individual categories where we find people are doing these individual things. Those who are reducing debt, white collar workers. Not really all that surprising. Why . I have enough to spend for my income right now. If i have a little extra money, maybe ill improve my financial position. Who are the savers . This one im a little bit skeptical of. 18 to 34. I dont know about you with your 22yearold, i dont know if he told you he was saving a little extra money, if youd believe him. Thats what they tell us is the Biggest Group saving right now. The northeast is a place you have had high gasoline prices but theyve come down in the northeast because they dont have some of the blend issues they have in the west. Some in the northeast using that extra money to drive a little further. And this one, the most interesting of all. The spenders are those who are already optimistic about their wages, and tyler, why is that interesting to me . Because it tells me that it takes a little bit more than just lower gas prices for people to spend more. Confidence breeds confidence. But you need a couple extra things. If its just lower gas prices, well, i dont know, maybe i will save it, maybe ill pay down my debt. But if you tell me ive got good wages next year and im opt misstick about my wages and i have lower gas prices, lets have a good time at the mall. Steve, thank you very much. Steve liesman with the allamerican survey. I guess also the confidence theyre going to stay low, those gas prices and maybe even go lower. Thank you very much, steve. Airline stocks are rallying right now. The names that are flying high coming your way. Also a major Technical Glitch grounding hundreds of southwest planes. Well bring you the latest on that, plus the hacking economy. Weve all been hacked, right . The cost to protect yourself from a hack attack is on the rise as well. Cyber insurance premiums are going through the roof. Well talk about what is driving that. And also soccer legend sir Alex Ferguson is in the house. Hes going to be joining us and hes out with a new book on leadership. Youre watching cnbc, first in business worldwide. Some neighbors are Energy Saving superstars. How do you become a superstar . With pg es free Online Home Energy checkup. In just under 5 minutes you can see how you use energy and get quick and easy tips on how to keep your monthly bill down and your Energy Savings up. Dont let your neighbor enjoy all the savings. Take the Free Home Energy checkup. Honey, we need a new refrigerator. Visit pge. Com checkup and get started today. Welcome back to power lunch. Im mandy drury. Volkswagen getting its Credit Rating cut by s p. Meanwhile, the german automaker in danger of getting a 2 billion euro loan recalled by the European Investment bank. Pets marts talks to acquire petco have stalled. And reuters reporting that ge is near a deal to sell 30 billion in loans to wells fargo as the industrial giant moves closer to its core business. General electric a little changed in trade today though. Lets get over to seema mody with a market flash. Good afternoon. Railroad stocks taking a hit as jpmorgan cautioned not to chase the recent surge to the sector ahead of Third Quarter earnings. Norfolk southern kfalling the most down 3 . That stock standing out as a worst performer among dow transports. The analyst points out norfolk is the one to avoid. The stock had shot up 11 in the nine sessions through friday but still down 27 yeartodate. Ty . Thank you very much. Getting ready to pay more to protect yourself from getting hacked . Cyber insurance premiums are skyrocketing and Mary Thompson has been looking into it. They are skyrocketing for some but not all businesses. So thats the good news there. Of course, the cost of Cyber Insurance has been going up. Some of the Bigger Companies and the most vulnerable industries, they are the ones seeing the biggest increases. Other companies seeing more modest increases. Now, aig is one of the largest providers of Cyber Insurance. This year the average premium increase for aigs 20,000 Cyber Insurance clients is tracking at 7 . That according to the global head of professional liability. Big firms and highly targeted Industries Including health care and retail along with firms who have been breached will pay much higher premiums. Smaller and mediumsized businesses which make up half of aigs book are going to pay smaller increases and in some cases she said may actually see reductions in their premiums. Cyber insurance is still a fairly new industry though one the Insurance Institute sees growing to 6 billion by 2020 driving demand is more than 90 data breaches. If the numbers in the second half of this year match those of the first. Cyber attacks are a top five Business Risk with the average cost of a data breach for a u. S. Company coming in at 5. 9 billion last year. Now, those costs of Cyber Insurance cover business interruption, customer care, forensics on a system to make sure its cleared of mall ware and any kind of reputational protection for the company. As a developing market, the pricing and product structure, theyre still dynamic leaving some insurers to cap the amount of coverage and limit liabilities theyre willing to right for some of the biggest clients right now leaving them financially exposed to this. So would the insurance have covered a big hunk of targets liability, for example, or home depots liability to customers . Yes, it would have covered a good part of that. Specific parts of that, the business interruption, the credit protection that you have to provide for your customers after that. There are certain things written within the policy that it will cover and, of course, as you know as a homeowner every policy a little bit different. Oh, yes. There are some things they wont touch. Or medical insurance. There are certain things they deny. Wind damage or water damage. Mandy. Southwest Airlines Says it expects its Customer Service systems to operate normally today after major Technical Glitches delayed hundreds of its planes. Nbcs tom costello is in arlington, virginia, with the very latest. Good day from Reagan National airport in washington and it is a much better day for Southwest Airlines passengers than it was yesterday. Yesterday we saw 500 flights delayed, and that means thousands of people delayed, caught in these long lines that stretched for hours at some of the nations major airports including l. A. X. And las vegas and phoenix. Individuals who tried to come to the airport and then check their bags and check in were not able to do so. In many cases the agents tlsher the ticket acts were left writing out by hand Paper Airline tickets. If you printed off your boarding pass at home and even if you checked in at the kiosk at the airport you might have been able to get through much more easily and quickly than if