Rbs is spinning off its american unit, citizens financial first trade this morning. And in retail, bed, bath beyond sharing purchases. That stock surging in the premarket. And say hello to walmart checking. The big boxs largest foray into banking is here. But first, want to get to david with breaking news this morning. Thanks, carl. Were delving into the soap opera that is allergan. This morning we can tell you that salex pharmaceuticals, a company i previously reported on and told you allergan is in talks to acquire, has another potential suitor now in the name of actavis. In recent days, theyve reached out to salix, indicating its interest in acquiring the company. I want to stress these are early stage discussions between the two companies. They have not gotten far down the road there in contrast to it the Allergan Salix discussions, which have been going on for weeks. According to people who know whats going on, they tell me its slowed in recent days and sort of hit something of a roadblock. But again, actavis had been talking to pfizer, or at least gotten approached by pfizer about a deal. That died a long time ago. Theyre actively in pursuit, early stage, of salix and has discussions about a potential deal. The synergies there, many people say, far higher than those that allergan might be able to realize in a salix transaction. Remember, were allergan to buy salix, that would most likely deal a death blow to the pursuit of that company. However, if allergan were to emerge, that would change the entire complexion. Lets go back to allergan and valiant and the continued bat theyre going through. Valiant having sent a letter a few days ago extending an olive branch to the company and having that olive branch essentially snapped in its face by allergan. In a letter from its ceo, wrote, it may be too late but i think we have the opportunity to take the temperature down, come together, see if we can begin a conversation that could by the way, lead to even more value. He indicated he might be willing to go higher while still being the right transaction. I think your shareholders would prefer to see constructive discussion rather than mud slinging. Please consider the olive branch extended. Allergan ceo same day said no way, no thank you. We believe the application of valiants Business Model to allergan would erode and destroy considerable stockholder value. They point out a number of their stockholders who did consent to that special meeting, they say, actually, they told us they share allergans perspectives on valeant and have no intention of voting in favor of the proposal to remove allergans direct tors. Let me finish this off. Valeant says youre worried about our Business Model, heres a preview of our Third Quarter numbers. I got those too. Overall samestore organic growth expected to exceed 15 in the Third Quarter. Expected to beat consensus on revenue and better than guidance on cash eps. Expect continued strong doubledigit growth in the fourth quarter. But well get a lot more on the 20th. All right, jim. Im done. Im trying to process it. Okay. So in other words, salix, which we thought was going to be bought by allergan and might still be bought by allergan. Has a second suitor, who i had also thought was going to be sought after by pfizer. But thats not true now. You think thats done. That is done. Actavis is done. Thats about a month and a half ago. That is long done. In fact, its unclear given treasu treasurys actions yesterday. What is actaviss relationship with allergan . I dont know. I mean, to me, it would be crucial. I thought there was a possibility. That was reported by the wall street journal the other day. I dont know. Do you think theres a possibility the journal got it wrong and they were talking to salix . Im not sure. Salix combination with actavis. Im not sure. Actavis does have some g. I. Stuff. It would be an entire new product line for allergan. I like the tax implication. I like actavis as far as labs. I regard that as a great company. Valeant obviously doing very well. I always thought they worked well with the eye care franchise of allergan. This is all now jump ball. Its a soap opera. Well, a good soap opera. Its like trying to keep track of the seven families, if you know what i mean. Yes, yes. I like that. Salix, ill tell you right now, is the buy of all that. When i hear all that, what the heck would you not buy salix for . Why would you not buy allergan . These are the two. To me, valeant, theyre anxious to do a deal at any price. That makes me less like valeant. Salix is the winner for youre trying to figure out even on an earnings basis. Salix has a lot of good products. Really interesting gastro lineup. You buy salix. You buy allergan. You watch valeant. Actavis, holy cow. I dont know. Out of nowhere, i dont want to own actavis. Theyre an inverted company. Shows the benefit of being inverted and having that lower tax rate. So you can make a case in a horrible market, which lets not forget thats the start of it, that this is the one area you can make a case because the world is slowing. Actavis has a good business, getting better. The stock has been red hot. Salix, we know the approvals look really good. Allergan, using the 16 number. 10 number, we get a 16 multiple. We can justify that stock going even higher. Valeant better than expected. Rest of the market, awful. Its all about gaming this one situation out. Well, jim mentions the markets. Futures are on the rise, of course, looking to bounce back, shake off some of those jitters. S p is in the midst of the threesession losing streak. The dow coming off backtoback tripledigit losses. Jim, you said you cant blame anyone for wanting to take some money off the table. What is the stance . Stay the course . You have to stay the course because i think some of this im going to use a word that people who are geopolitical will not like. When you look at the manufactured nature of what ukraine is doing right now with germany, basically just a naked bid to get money using russia as the bad guy, i believe. But the slowing in europe is so accelerating that maybe the central bank cant do what it wants. At the same time, the new hedge fund wrapped that we hear all the time, that the fed is about to tighten. I totally disagree with that because that would be an inversion of tremendous proportions. I just think as long as russia puts up continues to do this and we get closer to the winter and gas shuts down, the european industry, which is based largely on natural gas, then youre going to see multiple estimate cuts to multiple international companies. Wow. Given that ukraine is basically vanished from the main headlines. Ukraine should be the frontpage story every single day. Because this is about a recession in europe. Youve got the ecb trying to fight a recession just like bernanke did here. The difference is that those countries are disparate, and theres great unemployment and not a lot of economic growth. Now you slap on russia. Some people are saying the russians need the raw cost. First of all, the ruble is up. Second, did anyone Pay Attention to the fact that the peoples republic of china wants as much of the natural gas as russia will produce . They could shut down europe in a second. Who is thinking they cant shut down europe . You talk to basf, theyre worried about being shut down. Yesterday for the first time i can recall in many, many years, somebody who i speak to, an outlier used the word recession to describe what might happen here in this country. I havent heard anybody i mean, were watching commodities come down. This is somebody whos focused, for example, on many of the media companies, which yesterday got schellacked because its worried about advertising. I have to say it took me back hearing that word. Come on, are you kidding me . I saw good numbers from paychecks today, which is a good sign because thats Small Business employment. If you get a second straight number of bad ung employmeemplo gasoline is saving some of retail, but carmax numbers were horrendo horrendous. The housing numbers were seeing, theyre just miserable. Where is the growth coming from . Oil and gas . Wait a second, the world is glutted. Youve got onethird of the production of oil that didnt exist five years ago. Were swimming with oil. Theres no way oil can hold these prices, even with geopolitical crises. Where is the growth going to come from . Federal reserve not going to provide anymore liquidity. Thats the rap. The recession case, which is insane it could be built so quickly. It seems insane. But david, how about this . Numbers have to come down. Do we have to care anything more than that . Numbers coming down. Whether its a time warner or viacom, fox. Speaking of numbers coming down, not a great time if youre a bank to go public like citizens will today. Biggest bank ipo in a decade. Yeah, now, citizens bank, people say, oh, they cut the range. Well, i was going through all the regional banks that i follow. This stock is no cheaper than most of the regionals. Theres no great urgency to do it. They didnt price it in the hole. This is the antialibaba deal. It comes and goes. I dont see any special reason to buy it other than the fact theres so many citizens financial people in this room that they might kill me for saying that. Its going to trade under ticker cfg. Its the u. S. Unit of the royal bank of scotland. I predict the same level of interest for citizens bank, which is where the phillies play. Same level of interest in the phillies as the deal. Theyre in last place, right . I just want to make sure. You gave me a hard time yesterday about the jets. Geno leads the league in pick sixes. Thats what i saw yesterday. Hes very good at that. Hes got a good eye. Always important to stand out in some category. When we come back that was cold. Walmart rolling out a Checking Account while shares of bed, bad, and beyond are on a roll this morning. Also, the president will address the u. N. General assembly this morning. His speech coming after the u. S. And arab allies launched those air strikes against isis. Well bring you live coverage of his remarks. A lot more squawk on the street is back in just a minute. Today could be the day. The day we give you hope. Relief. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. And were ready for you with a Second Opinion or a sameday appointment today today today and everyday. Call today, for an appointment today. Bed, bath, and beyond up sharply in the premarket, posting better than expected Second Quarter numbers. Comps up as promotional activity helped increase instore traffic. Also issuing up big guidance for the full year. I have here in my hand perhaps the worst piece of research in 2014. Ill spare the author of it, but this is the piece i pointed out the guy better know something. He did not. He had taken his comparable sales start number down to 1. 4 . Bed, bath did double. They also guided up to one of the best Comp Store Sales ive seen for fourth for the fourth quarter, talking about four, five. Beating back amazon. They have a very spartan Conference Call where they give you the ten points. The ten points were very bullish. I say if you think the stock is only going to be up three today, you got to be kidding. I was going through the research for the last year. Bed, bath, and beyond says be very, very careful. Deutsch bank, sales likely still on the softer side. The amount of research that said these guys were a bunch of doo us ifs is wrong. When you see an analyst willing to downgrade 12 hours before we get earnings from a company, you want to make an assumption that perhaps they feel emboldened because theyve done more work. I would think perhaps since they run the risk of being nationally ridiculed, better to keep your mouth shut. But sometimes that happens. Ive been ridiculed nationally. Not a lot of fun. Immediately i apologize and say, you know what, i just have to point it out that this piece, along with several other pieces is causing this stock to go higher. Plus, the fact that the camp store Sales Numbers are much better. And if you look at the buy back, have you looked at how many shares theyve retired . Thats why weve talked about it as a creeping lbo. They did a lot of debt. They accelerated buyback. For those of us who shop there, its no surprise. I really like carmen by the way. The coupon strategy is out of control. I just like the coupons. How about walmart trying to get Checking Accounts to its customers over the age of 18 . This is a new team effort with green dot. I like green dot very much. Weve been focusing on these Payment Processing companies. Some of them are on fire. Will this move the needle walmart . I dont know what moves the needle walmart, frankly. Alibaba buys walmart in a merger of equals. Alibaba is a bit less now. About 20 billion or so less. But i just think this is theres so much happening in Payment Processing right now. Just overlay the iphone 6, which we havent even mentioned once in the show, including that its bendable and too big to your face. You have to have a large face. Now were seeing research that argues holiday sales will be impacted because people will be spending their money on the iphone 6, not some place else. Not at lulu lemon. You dont have to, because in usa today, aggressive. Talking about putting the unlimited iphone 6. 50 for everything. You can spend another 20 and get upgraded every year for the rest of your life. Im predicting better than expected christmas sales because of this. When we come back, cramers mad dash. Well count down toward the opening bell, get you one last look at the premarket on this wednesday. Squawk on the street will be right back. Hello. You can go ahead and put your bag right here. Have a nice flight. Music plays music plays traveling can feel like one big mystery. Youre never quite sure what is coming your way. But when youve got an entire company who knows that the fewest cancellations and the most ontime flights are nothing if we cant get your things there, too. Its no wonder more People Choose delta than any other airline. vo solver of the slice. Pro. Teacher of the unteachable. You lower handicaps. And raise hopes. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. pro nice drive. vo well played, business pro. Well played. Go national. Go like a pro. We got about 7 1 2 minutes or so before the opening bell on our hump day. Now, i know that your son, but not you, focuses on fantasy football. Yes, he does. Carl and i focus on fantasy football. Who would you draft first at this stage . You draft selgy. This stock yesterday beat back the wave of selling. Thats because they have a plaque psoriasis drug that just got approved. They also have a pancreatic and Breast Cancer drug. Thats in switzerland. A lot of people are saying this is, like, so what . What else is new . What are you, out of your mind . You have a blood cancer franchise, a pancreatic cancer franchise, a Breast Cancer franchise, a psoriasis franchise that could turn into the holy grail of drugs, which is arthritis. One day celg and these are all for severe. But this is a remarkable breakthrough. Cell gene is not done, going higher. A genius ceo. They vls a Tremendous Investments all over the place. You have been a longterm, a long, longterm bull on this stock. Ever since celg let me use their driveway to run the summit soap box derby, theyve owned me. Its actually quite true. Its worked out well for them and well for you. Lets move on to the financials this morning. A downgrade. Now, this is the kind of thing you live for. Jpmorgan comes out and says, Morgan Stanley cant beat the 10 return on equity. Remember when we were happy thinking it was 6 . Theyre saying its expensive. They wanted to buy ubs. I think if you drop the u you can tell what i think about this piece of research. But the idea of getting to a 10 r. O. E. Has been a target. Well, theyve got a great business. If you look at the we that these have been trading, you want to be the premier retail bank. I think its being undersold by this research. I think theyre leading a renaissance at that firm. It may already be reflected in having a 35 stock price, no . Some stocks there are other stocks allowed to go up besides sales pharmaceutical actavis, valeant, and allergan. You do not have that segment all to yourself. Already im being cat called on the citizens financial. I like citizens financial. Its the same value as comerica. Theres nothing special. Morgan stanley, i think theres something special. I like their attitude. Theyre aggressive. All right. By the way, the aforementioned citizens trading under the symbol cfg will be ringing the opening bell shortly. Well have that and the first trade of the biggest financial ipo in a long time. Were back on squawk on the street. I love having a free checked bag. With my united mileageplus explorer card. I have saved 75 in checked bag fees. Priority boarding is really important to us. You can just get on the plane and relax. 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