A lot to focus on from those new treasury rules to disney to fed speak. Europe in the red after unimpressive pmi numbers for march. Well get ism services in an hour and oil not bouncing after kuwait says they still predict a Production Cut in doha. We begin with the new tax inversion rules threatening the pfizer and allergan deal. Disneys heir apparent, the companys operating chief stepping down. Who is next to lead . Minneapolis president going after the big banks saying its time to end too big to fail once and for all. But that wildcat victory, theyre calling it maybe the best final ever. First for the wildcats since 85. Chriskris jenkins, how do you not celebrate that shot. This is a moment you look at jay wrights team, theyre a bunch of kids who go to college and also play basketball. Thats important. You dont go to villanova to play for the heat after a couple years of not taking classes. You go to nova, get a degree. Some of the parents of the guys on the team, they went to school. And they also participate in the ncaa. Thats whats exciting. Jay wright visited our set. His face. His ice cold reaction there after jenkins sinks the threepoint eer is unbelievable. He has built a team based on guys that jay likes who he thinks he can coach. Not on guys who he thinks can play pro. Even though unc was a great opponent, theres still a sense when you look i dont know if you watch the neutral or the pro nc you know, there were a bunch of broadcasts. I saw that. The neutral was pro unc because unc has filled the stands with guys who play pro. Nova really doesnt have anybody. You end up with this david versus goliath. Jay has built a team in the way you want a company built. Jays a good ceo. You could watch that shot forever. But we have other business to tend to. Theres a deal between pfizer and allergan i thought we were espn, sorry. That may be in significant danger. At 5 00 yesterday can we call it dead right now . I will if you will. I think it is i dont want to say that. Why . Because ive i years have taught me not to go to that final conclusion. Dnr . Very close. Do not resuscitate . Very close to dead with why . Because of regulations announced by treasury at 5 00 yesterday that seem specifically designed to target this deal. Im not talking about the other things that kacame out, im speaking specifically about the lookback provision that treasury augmented having do with inversions that says you go back now three years, any deal you did in those three years leading up to the deal that youre going to be allowing pfizer to invert with, that being buying allergan dont count towards your size. Suddenly you are reduced from being 44 of the Overall Company that will be combined, created, to less than 20 , hence youre a u. S. Taxpayer and its no longer an inversion. This is likely to doom this deal. A decision has yet to be made by either side. They are both, of course, examining it with teams of lawyers. They employ virtually every bank on wall street as well. Many of them will have fees that theyll have to say goodbye to should the deal die. We could expect to see something or hear something perhaps as soon as the next day or two. Maybe it takes them longer to get there, reach a conclusion. A couple key thoughts. One is many people told me in the last since this came out, this is an overreach by treasury. There is little you can do about it. In order to sue you need to have standing. In order to have standing you have to close the deal. You cant close this deal if youre pfizer. Allergan shareholders need to vote on it. Theres no way theyll give you a yes vote on a deal where youre undertaking four to five years of litigation uncertainty while youre fighting the u. S. Government. Not going to happen. So youre then left with pfizer may still want to buy allergan, because its not just about taxes, its about other benefits they see from the combination. But if that was the case, they would want to pay less because they no longer would be able to get the tax benefits of an inversion, namely access to the overseas cash and the ability to bring it back to the u. S. Without paying additional taxes on it. That would no longer be the case. You would want a renegotiation. What am i hearing from people familiar with the situation . Thats not going to happen. Allergan not interested in renegotiation. So youre left with this. Which is this very much targeted regulation that seems designed to kill this deal and the fact that both side al sides will co that realization. Lets find out what youre going to do if youre allergan. Huge hedge fund holding. Allergan trade the at 299 on average basis. 299 basis. Ive been after Brent Saunders to break this deal, i felt the company had ebita growth of 12 to 13 . Theyll get 40 billion from teva. That deal closes. Not impacted. Neither is allergan as an inversion, we should make sure people understand that is an inverted company that remains a nonu. S. Taxpayer. Thats not in question. If you look at the j j multiple, mercks multiple, you get the 280. If you throw in bristolmyers, you have a price of about 350 this company was doing incredibly well, where there were aspirational numbers for Brent Saunders. Brent wanted to run the combined company clearly. I was desperate to get him to break the deal. I felt it capped him. At the same time you will never have a takeover premium in shares of allergan again. Thats gone. Allergan will be a buyer of companies. They have no debt. Theyll pay cash. Thats what brent will do. We can talk about valeant and how good valeant is doing, trying to buy it, cant, frozen, because of the teva deal. A lot of people feel the treasury is looking back and trying to destroy the structure of allergan, not true. But the deal but they were trying to destroy this deal in particular. That raises a broader question in terms of what treasury is doing and whether that will undermine treasury in the future. By seemingly overstepping the boundaries of what people expected. Which makes people wonder if thats one reason why were weaker today. I think oil. This. I think theres i have to tell you, the disney news. Entertainment has been rallying. I find allergan and pfizer thought they were playing by the rules. I hear them move the goalpost, but you really hear this is another deal that the hedge funds were in. Allergan was worth so much. It was look. It had 10 revenue growth. Thats hard to find, right . Thats revenue growth. Im not talking about inversion tax growth. So, it was one of the cheapest stocks. Yep. Last time saunders was on i said why you are giving up . He said its two plus two equals five. The spread had been widening and widening. While this comes as a big shock to many hedge funds who will be suffering losses who were playing the deal, there was something the market knew something. Even though many people never expected treasury go here. It had been a rumor. I discussed companies trying to build up in preparation for what they said was to be sold to a company that wanted to invert. Nobody expected they would go there. He original thinking is they would go after serial inverters, those who were repeat offenders. But this idea of bulking yourself up to be the right size, carl, for a huge inversion. That was them. Most people said how could they possibly do that . Thats outside their ability to regulate. Jack lew said repeatedly, now, congress, you have to act. He said over and over you couldnt do it. Its a temporary regulation also. It starts immediately, but it only lasts for three years. I think its unbelievable. When it came out, eamon javers had it, i said this is the stop pfizer allergan regulation. This is what that was. I want to come back to the fact that the teva deal will be on. Theyll get the 40 billion. One thing you have not talked about is pfizer what about that name . What happens there . There was a plan to break apart. Do you move that up . If you value it like merck, its going to be at 30. Thats where it is. Well 31. We have valeant news it la completed its review of its relationship with Specialty Pharmacy philidor. It has not found additional items that they say will require restatement and still intends to file that annual by april 29th. Once again, i know the stock will be up. Having followed these kinds of investigations, when a Company Declares itself clean, that means nothing. Okay . Nothing. Its the s. E. C. That declares youre clean. They could say we looked at it up and down. Were good. Do you think the s. E. C. Cares at all . Oh, so you guys sat around and you talked among yourselves, you got ackman there. You got some really good guys. You blessed it . Okay, well leave it. Thats the opposite of what happens. Its the opposite. The government does not care at all what your Audit Committee says. Get a lawyer. Fair point. Get a lawyer on the committee. The key for valiant is to get the audited financials done, this maybe allows them to get it done, and get in the 10k out. If they dont get that done soon, theyre getting in deeper trouble with their lenders. Right. Then you have the prospect of things people dont want to hear about. Right. I dont want people at home to think the way it works is selfregulation. Were not a selfregulation country. But theyve been working on this for quite some time. The special committee of the board. We were waiting to hear it. Its not unimportant, is it . You think its completely not important at all . Im just saying that the reaction of, listen, were all clear is different from a reaction which says, listen, we didnt find the need to restate beyond this. So you can go buy the stock, the s. E. C. Doesnt take a companys word. They just dont. They call you. You see what outside counsel says. They try to come up with a release. This is the beginning of the process. Thats what im saying. Beginning, not the end. The government is like the government is not sitting around saying, hey, valeant says were cool. I guess theyre cool. It doesnt work like that. Stock back to 30. Well, valeant says theyre cool. When we come back, more on the management intrigue at disney. Igers number two leaving the company what do they do now . Also Silicon Valley pioneer, Evan Williams, former ceo of twitter, a live and exclusive. Well talk about twitter getting the nfl streaming rights. Another look at the premarket. Dow hasnt had a triple digit loss since march 8th but were in line for one at the open. More squawk on the street in a minute. Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card. Some management intrigue at disney. The Company Announcing that longtime executive, lewis staggs, likely the favorite to succeed bob iger is leaving the company. He was elevated to coo last year. He has been with the company 26 years. 55 years old. Comes not too long before shanghai opens which is another interesting wrinkle. I think people reach a conclusion that maybe something again is wrong at espn. A lot of times people want to know the answer. Do i have the job or not . If the answer is maybe, thats not good enough. Right. Hes 55 years old. You could hang in there and fight. He clearly decided not to do that. I dont know specifically what the board told him. I do know, this was in the New York Times today as well. I can tell you also, the guy who used to run the guy who sold marvel. Maybe one of the toughest people in america. Hes not a fan of mr. Staggs. Hes not commenting publicly. I heard that. Other reporters have heard that. I think hes the largest shareholder maybe after jobs. Very successful businessman. Tough guy. Tends to get his way. Apparently hes being listened to. Again, i we dont know what specifically were the reservations on the part of either the board or a large shareholder. We dont know whether they wanted someone who is younger by the time he gets the job. Now the speculation has started. Cheryl sandberg is on that board. Along with jack dorsey, john chen, mark parker. Its a beautiful looking board. People are pointing to sheryl. The question is do they need a Creative Content person or a Media Technology person. Just that chatter will send facebook down. Shes extraordinary. You listened to conference calls, you know shes a multi talented individual viewed as great. Ambitious, young would have to be considered in the small group of people fsh, if shes interested in it who has some experience. Have you noticed where time warner is . Back to 72 . I have. That is the expansion on the earnings. Yes. People at time warner jeff bui bukas is a great men, when the stock was at 60, he said it will get to 72. The Entertainment Group has come back. Barrons over the weekend say it could go up 25 in a year based on the batman superman franchise. That seemed a little much. Yeah. I dont know. I still think in the coming world the question as to whether you need to watch last night maybe you did need to watch tnt or tbs. Villanova was on channel i had it on 3. But do you need them in a slimmer bundle . Will they always be a part of it . Jeff bukas, Great American he is will say, of course, theyre must haves. Others will not. As long as you keep running shawshank and others, it will stop. They put it on right noushw,e three of us would stop doing the show and watch. Absolutely. I dont care, remember . Richard disney says they will evaluate a robust slate of candidates. Theres always the chance that iger could stick around longer. Stick around until he redstones it . Could be like sumner redstone. I dont think so. Into his 90s . I dont think so. That board of directors might do something. Really . Maybe into his 70s. 70 is the new 50. If iger were to take the a. C. T. , he would get a 35, right . Is that what the perfect score is . 36 . I only took the s. A. T. Everybody takes the a. C. T. Now. I know. Is that easier . Moving into that world soon. Are you . Get a tutor. I got a tutor for you. All right. Its like an arms race. You have to start in seventh grade. Is your kid in seventh grade. Oh, my god, you dont have a tutor yet . You start tutoring them when youre im a purist. Its only 500 bucks an hour in new york, right . Paul weiss is 2,000. Get paul weiss as your tutor. Especially if theyre paying that new m a guy. When we come back, cramers mad dash, a countdown to the opening bell. Well walk you through some of the reasons we have not gotten to as to why were seeing weakness. Six and a half minutes until the opening bell on a tuesday. You want to talk tesla. The shorts want tesla down. When tesla says it can make 1,180 fewer cars than the company expected, the shorts come in. Be careful if youre shorting this stock. In the end, this is one of those animal spirited stocks that is based on the deposits and the interest in the cheaper car. So, this is a little bit of a well, wait a second, if they cant make this car, how will they produce all the cars that you need to be able to meet demand. All i can tell you is musk is mr. Rabbit out of a hat. And, yes, the stock is impossible to value. Amazon was impossible, tesla was impossible. I dont know how to value it. Its a conumdrum. Its wrapped in a riddle. Youre right. Its wrapped in fury signifying nothing. It doesnt matter. People say, listen, they cant make this. How can they meet the answer is it doesnt matter. The buyers want the car. They want the stock. As long as people keep lining up to put deposits down, the stock doesnt have that much downside . I think that the stock is buoyed by the number of people who love the car, like people who love netflix and love amazon prime. These when you deal with lets say youre ford. Ford puts out something saying listen, we have demand for 200,000 lincolns, we can only make 50,000. People say what a bunch of losers. Tesla says they have demand for x, they can only makes one x, winners. This is like a mark fields day. We have to get this show on the road a bit. Maybe we can do it from the giga factory . No, do it from the six building in brooklyn. You and i will go. Theyre not making anything there. Thats just a showroom. I want to go where theyre making these batteries. Thats got to be incredible. Thats on mars, isnt it . No. People didnt like i said that elon musk thinks people are simulations. All night my wife kept saying david is clearly a simulation. Im a simulation . Yeah. Youre a simulation, in my mind. Ow, elon musk believes people are simulations. 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Td ameritrade. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Youre watching squawk on the street. The opening bell in 60 seconds. A lot going on in today. We have leggard saying the risk of low growth continues. Here is lagarde. Were not in a crisis, the not so good news is the recovery remains too slow, too fragile and risks to its durability are increasing. She said dont raise. I think the numbers were not all that bad out of