President obamas new round of sanctions, warning that measures would back fire and bring u. S. Russian relation toes a dead end, causing serious damage. As for the russian market reactions, take a look. Stocks in moscow were down sharply in early trading. You can see theyre down by 4. 3 . Later in the show, senator bob corker will be joining us. He is a member of the Foreign Relations committee. Hes been calling for tougher sanctions on russia. Well have more of that coming up. Right now, lets get over to andrew with more of todays corporate stories. Good morning, becky. Ge, former parent of this network, reportedly seeking buyers for appliance unit. It tried to do this back in 2008. It scrapped those plans, though, given the financial environment at the time. Ges Ceo Jeff Immelt promised investors to divert interests that arent seen as core. The company is set to post quart ily results before the bell toll. Well bring thou to you. If you have a dishwasher or a washing machine or you know . Its theyre not going to do that any more . Theyve been trying to get out of this for a while. I know. I know. Its not profitable. Its low margin. Its an old american iconic brand. Like westing hois. Ge isnt in lighting any more. Remember ge, we bring good things to i know. Its just that they people know they want to get out and so i dont think theyve ever gotten they never feel like they can get the right prior to price. Someone could do something. Weve seen it, whirlpool and those manufacturers. Someone could its a global im sorry. You could sell it anywhere and its a pretty good business. Is it haier . Yonl. I winner wish we could put something together and, you know, rationalize the operations, stream line some things and do some advertising marketing. I bet you we could make a go of it, ge appliances. You know, its hard service. Service is hard. Service is really hard, warranties and getting people there. The may tag man, he didnt really exist. I dont think there was ever a ghie waiting for you to call. But what if it goes with the taxes . Is that going to be a problem, if they sell it to their foreign buyers . One of our viewers wrote in saying he was disappointed in andrew saying basically youre calling 47 of the country that doesnt pay taxes they cant be patriotic. So half the country is unpatriotic. Thats sad. Isnt there some other way they can be patriotic . Isnt there can they salute the flag . Can they sing the starspangled banner . Is there any way you can be patriotic without paying taxes . I thought it was very clever. Someone wrote it is very it is very clever. That andrew has put 47 in the country in the unpatriotic thank you. Lets talk about ge. Doing a reset there and microsoft now set to announce 6,000 job cuts today. The companys new ceo nardella outlined plans for a leaner business in a public memo last week. Many of the cuts are expected to come from the newly acquired media business. Liberty says it doesnt intend to make an offer for the rest of it, air to commercial broadcaster, itv best known for broadcasting britain has talent and joes favorite, downton abby. Shares rising this morning. And then, k, there is Rupert Murdoch. We broke the story here first on squawk box. Time warner has rebuffed its 80 billion takeover bid. There are no talks under way, but murdoch is unlikely to walk away anytime soon. I dont know if you saw it, jeff put out a video prompt to the proposal. So, you know, they actually videotaped jeff yesterday, i believe at Time Warner Center saying we dont want to do this, weve decided against it. But most importantly, he said we believe our empty growth plan is better than anything that fox would ever basically be in a position to offer. Theres not enough money in the world for you to buy us. Theres the makeup girl and then theres the guy going, take three, jeff. And time warner, but its a media company. So its like they so the response that they actually gave to fox was a couple of tersly written ride. But the shareholders actually, i believe the video was made for internal purposes. That makes sense. If its for employees, you get that. Now theyre going to run it on cnn as a reality show. That would be good, couldnt it . They are not sure what to do, so murdoch puts time warner on wish list by Andrew Ross Sorkin. Can you summarize i dont feel like reading this. You wrote it. Can you tell me, is there anything in here that you dont know that i havent tell us. I would as you would love to know, we broke all of this news on squawk box. No, its every single you should not go there. You called it exclusive. Anyway, im already upset about that. We wait all this time for you to timely break a big one and then we dont get credit. Page b8, what do i need to know about this . Im just trying to no longer. Blooper, i would like to see that. God, would i love that. But so we need to say a couple of things. Tell me whats in here. The two big issues, the nonvoting stock seems to be something that most of the shareholders do seem to care about, which i was surprised by given that 70 already own it. Because of the you think if i like rupert stock, why do i care . Thats is a big issue. And theyre saying its a big issue. Why wouldnt you accept the if you chose to put that am of money, and you also say to yourself, Rupert Murdoch may not be around forever and what does that Company Look Like after and, therefore, the controlling shareholder. Is that a negotiable point . I dont believe it is. I dont believe it is. And i can for better or worse, price will win out on anything. So the bigger issue is can they get to 100 . Most of the investors i get to yesterday said give me 100. Ill give you a deal. What if they dont care about the voting any more . A little less interesting. I think the price is going to be more interesting. Most important is watching the stock with 21st century fox. That went down yesterday. And so the extent that that stock can hold up or goes higher, that makes others a lot easier. For them, for this to actual happen, fox has to come to the table. And the question is what they have to offer just to get to the table to at least negotiate. In part because while they threw out that number of 1 billion, they believe theres a lot more if they can see whats going on. Of course with due diligence, you mean . If youre time warner, you dont want to let them david makes a very interesting point. We talked about this with jerry on yesterday. Jerry levin. Former ceo of the company and he talked about this as being a backwards deal. David said how technology is impacting all of this and where google is. By the way, if youre jeff beszos and you want to be in the content game, do you want to buy this . Say fox really needs time warner and them it doesnt. The media has no idea. They just write every possible angle and story and conclusion on both sides. Weve covered it all by now. We dont know whats happening and what is the end result. What is the bottom line . Does fox needs to do this and does rupert always get his man . I say rupert always gets his man. I suspect something happened. Billions of dollars. Billions in synergies, right . Probably. And if you decide youre shutting down down, one thing that is so interesting, she at least comes to the additional differently, to the point all the different creative pieces. If you do saturday go r gettel those things. This has caused a val owation for cnbc. I saw six to ten. After or before . Did you add that to the 80 or is it included in the 80 . Its included in the 80. And hbo is worth 20 billion. 25 billion if you consider the future revenue of billions. Yeah. That sort of pressured the deal to compete with that. Showtime with Andrew Ross Sorkin and the executive producer, everything has to compete. United health is a dow component. Nike, Goldman Sachs what else . Visa. Is kraft dow or kraft youve got to quit changing these things so much. Is westinghouse out . Okay. Chef ron . Mobile . Anyway, outlook quarterly results, at least google and apple are in there. Earnings of 1. 40 a share. Obviously you put them in. Beating the streets estimate of 1. 26, revenue topping consensus and the company is raising its full Year Revenue Guidance above the street. And lots of big moments during yesterdays delivering alpha conference, thinking any miss reguests. Then he brought out bill ackman. Timeless moments. The two had, as you know, a very public war over herbalife. I started to say it correctly and i had to quickly say it incorrectly. For the last 18 months, its been 18 months that youve seen it basically every day. At least we talked about it at one point. They hugged it out on stage acting like old friends. And ta was interesting. To me, it looks like icahn thought ackman had a mouth and it looks like ackman thought or looked like he had head lies. Although they said a lot of nice things about each other. Oh, look, i dont want to touch your lip. Bill went for the hug. I think carl was a little more reluctant. I think seriously . Sometimes thats awkward. Wow, two guys like that in a situation like that . Now theyve made up. Ill tell you, ackman is a good looking dude. Especially with the what is it . Stuff in the eyelashes . I love his eyelashes. Its natural. Hes even luckier. His eyebrows, your eyebrows are to his eyelashes as those are the i mean your hair . To my hair. Meanwhile, i sat down with stan druckenmiller. He warned the audience that said policy should have us worried. To face fed policy since not only unnecessary, but fraught with unappreciated risk, when ben bernanke and his colleagues instituted qe1 in 20309, financial conditions and the real economy were in a dysfunctional meltdown. The policy was brilliantly perceived and a nobrainer from rafk reward perspective. But the current policy make no sense from a risk reward perspective. Five years into an economic and Balance Sheet recovery, extraordinary money measures are likely running into sharply diminishing returns. Now lets get to kate kelly with some of the other big highlights from delivering alpha. And the first thing stan said when he took the stage was how great the conference has become. I know. I was amazed at his stature. He made some similar comments before the financial crisis, a couple of years before. About the fed, not about cnbc. We have a clip, for sure. Big time. There are clips everywhere. So that was nice. Yeah, no, it was a great clip. And on the record saying but you know, he warned not to get too excited because its not systemic. But its registered at this point back in 2008, what caused all the problems systemwide. At this point, its not systemic. And you know what i thought was interesting about what he said was the longer we go on with quantitative easing, even if were tapering, the greater the Downside Risk is. What it is or how advanced it is. Right. And it was galvanizing. I think all the debate about the lower Interest Rate regime and what it might mean in the future, that was one of the most interesting story lines yesterday. And my question was the demand whole from this once in a lifetime or once in a century financial well, not one in the century, but this huge collapse warned that even to this point right. The fed maintains it. And he thinks its past the point of futility. But at a point where the downside is obviously some day may come back to haunt us. Yeah, no, absolutely. Can i talk about a couple of other key moments. Let me be the judge of that. Ken griffin on 2008 and youre not doing the hug again, are you . Cooperman and christie. Lee was amazing. She didnt see Chris Christie. You missed one of my favorite moments of the day. Multiple moments, really. But john was tough. John can be very tough. Sometimes not quite as john harwood, right . I dont think hes quite as tough when the president copped a fly and he went oh, mied go, youre wonderful. He kept the equal lyilibrium. He said you were obnoxious enough to ask me again. But it was a very good matchup. Anyway, one of my favorite moments of the day was ken griffin talking about how citadel came back from the brink. In 2008, they lost millions of dollars in a matter of weeks. And they managed, interestingly enough, not only to sole advantage the business in general, but to make back their High Water Mark and their hedge funds four years later. Here is his recollection of what happened at that time. That was a very dark moment for us. As a firm, we had gone through almost 20 years of never experiencing a loss and as youre well aware, in 2008, we lost about half our Equity Capital in 16 weeks. Cnbc had the van parked outside of building trying to get the bankruptcy footage if we had failed in 2008. What a dark moment, you know, overall. And just the cnbc van being a galvanizing symbol, im sure. But that was interesting, i thought. And he sort of talked about taking stock of what needed to be fixed in the business. One thing they did was they slipped it into level one assets. They got out of level two and three assets, things that were too ill liquid and too complex in their view to have on their Balance Sheet. I also enjoyed hearing from lee cooperman, who is sort of an eternal optimist. And faber called him on that and said when was the last time that you were bearish on the markets . He did acknowledge that we were going through a series of cycles. Here is where he thinks we might stand today. Bull markets are born in pessimism, they grow in skepticism, and they mature in optimism and in euphoria. So weve passed pessimism, weve the past skepticism. I think were in the stage of optimism, but i dont think were in euphoria. So, interesting what he says there, right . Because janet yellen, obviously, the other day talked about overly high valuations in biotech or tech echoing what some Hedge Fund Managers have said, as well. David einhorn, david loeb. He was asked about that yedz and he said what does the fed know . I just heard from different people that her staff argued to put that in there and that she wasnt so sure about it. I guess they thought if these things pull back. I said at what time is the buy, sell or hold segment that yellen is conducting. I have a couple of stocks that i was to ask about. That is thats a to me, its a rookie mistake. And dont ever do that again. Even greenspan came under pressure talking about the whole marketist. But to talk about individual sectors of the market . Are you kidding me . Nobody cares what she thinks. We care what shes going to do. She thinks. Spooking of valuations, i thought if thats what she thinks, is this an argument to be pulling back . Right. That was enough, you know . Okay. Dont you think . So its an indication shes going to raise rates more quickly than we thought . You dont think it was an indication of that . I do, yeah. I think it was cover. I think it was cover if something blows up. I thought one moment was druckenmiller. He said its sort of get to go be nerveracking in some of those markets. We see high pollutant valuations. There are about eight charts and every one of them, charts go from low on the left to and every one of them was way up here. Hes like, were at zero and everything is up here. Right. Right. Exactly. Every ounce of his intuition tells him yeah, that was a good quote, too. Kate, thank you. It was great. Thanks to you guys for bringing great coverage. When we return, the shock wave in the media industry. Will Rupert Murdoch up the antifor time warper . Can a mega risk like this get done in todays environment. On this day in 1955, the expansion of magical empire. Disney land opens to the public for the first time and the rest, these, is history. Squawk box returns in just a moment. Time warner is the latest in an industry that has seen its share of consolidation. We have george, International Business editor at the hollywood reporter. Hey, guys, thank you for joining us. The big question, is the antitrust component, some folks ive talked to on the time warner side, people close to the matter trying to suggest that theyre going to be making a big issue of that. Do you think it is a real issue, george . Well, i think, you know, there are no official rules in terms of Box Office Market share, things like that. But combining two big studio versions alone, thats faced some concerns with a time of industry people. And i think youll hear those concerns echoing in washington, as well. The same is probably true on the tv network side. Some people will say and producers have a tough end in the future, selling the program to a bigger type. So we do expect quite a few people to make a big market move. Andre, you can be the judge. I think thats right. I think theres a number of issued raised by the transaction. The antitrust agencies will be concern, the fcc will be concerned. And the way the antitrust agencies work is they identify relevant lines of commerce where the two Companies Compete and you have the issue of cnn and fox news, you have the issue of cnn and fox, take them out of it. I think youre right, thats a hot button and i think fox has decided lets not even go this. But to the extent studios are an issue, do you think there is that much overlap . There is. There is overlap and theres going to be concern. With movie studios, were talking about i guess theres six major movie studios and acts of acquisition to be reduced down to five media studios. So its a concern. Under the antitrust laws, one aspect of it is theres a couple of anticompetitive theories that are used in the antitrust. And one is the latest in conclusion or coordination. So something less than outrate colusion. But potential for coordination going on in the future. I understand when youre going from four to three, six to five, is that a bit of a stretch . That is correct. 4 3, a big problem. 6 5, normally not as big of a problem. But under the antitrust law, its still an issue and a concern that the agencies will i think the same thing goes with tv networks, as well, because the most five major tv networks, competition would be reduced there, as well. Andre, what does this mean for all the other consolidation thats taking place in the market . Comcast, the parent of this network is obviously trying to do the deal with Time Warner Cable. Thats an issue about type, directv has its own transaction with at t. Thats on the table. The scc is going to have to look at those and justice is going to have to look at those deals. Now you add this to the pile if, in fact, there would be some form of an agreed deal. Does that s