Us the upcoming meeting between qualcomm and broadcom and a lot more lets give you a quick look at the futures at this moment we are set up of a higher open, this is has not been a great tale for the rest of the day given the volatility that we saw last week. We did end the week on an up note have not put the two backtoback there is germany though and the rest of europe like we are really, really weak. Come on, everybody is down the same amount, it just does not make a lot of sense. Tlhere is a shared concern 2. 86 calmer than they were at 3 00 a. M thats important. We can see wti is having a little bounce as well. We start with the course markets that bounced back after the worst week of stocks ins southeaster since 2016 you know what jim says about the futures. Plus, the white house is rolling out its budget and a new 200 billion infrastructure. Key question, how are they going to pay all of that broadcom continuing acquiring qualcomm it would be the largest deal of technology of all time qualcomms ceo, hock tan, joins us live right here at post 9 well have a nice conversation with him about the prospect for that acquisition lets get straight to the markets. The futures point to a surge Kristine Lagarde commenting in dubai. To compare, it gives acid prices very high and of a view welcome correction we have observed despite the volatility the market channels and pipes and mechanisms have worked well. We also see the financing is still plenty and very much available for the financing of the economy. So corrections happen. They are due to happen and thats where we see it there is christina lagarde. Lets go to james mim cramer. We are in the mode where everyone tries to justify what happens. If the vix continues to spike, it is the end of the world i think we are having a serious correction do i regard a healthy correction it is a correction thats so r correlative. There are also individuals that were in this thing there is a fabulous article about someone who traded and lost why this is so important because thats a sales pitch when they come into sell the s p, it is nobody there. It is machine verses machine and individuals who are trying to gain machines. Theres no body thinking of what Christina Largarde says. No. Deficits, the percentage of gdp that we are going to generate in year and next year is 5 more by 2019 and inflation. On wednesday i guess this januarys cpi can become an important number yes the executive of clorox, he says look, transportation costs are up they think those are temporary everything is temporary. The problem with temporary is it proves not to be temporary and Interest Rates have to go higher by the way, david, it was not that long ago that we were hoping for three there better be forces that want to buy at 3 certain governments and china. China is not buying and saudi is not buying. Better somebody is stepping up, we got a lot to sell we need to see europe stepping up. I dont think 3 or 3 quarters are not stepping up. You dont see the 10yr yield goes into that i think it is going to stop s soon you do. Bridgewater, by the way, dahlio, he did comment about the market volatility. There had been a lot of complacency built up in markets over a long time. I am going to defer for ken fischer. We had them during this period and it is a good historical spectrum that puts it in it is not a bad market i follow ken for years and i read all of his books. I introduced one of his books. I feel kens column is saying why are we freaking out when this actually happened before. This is not a bad assault as we had. Historically, ken does better work than all the commentators, as it comes in, dont be afraid. The housing and the group and utilities. The investment trust, they are radio active here. Yeah. Yeah. But, retailers, domestics are doing quite well healthcare, if it is a company that we throw away is doing quite well need to see if industrial will pick up tech is okay simpleemis are the battlegro and you could not have a better battleground this morning. Hock tan represents hes joining us very soon we got to go to carl now so we can keep our time of where we need to be over with carl at the olympics in south korea, carl yeah, well keep it short i know you got to make time for tan. You dont get interceptions between the markets and whats happening at the Olympic Games some are looking at the kospi today. Who knows or whether or not kim jong jonguns sister invited president moon after the game. Maybe because of this interview that the the u. S. Post suggests the u. S. May be engaged on talks. The question this morning is how much did u. S. Foreign policy evolved over the weekend there were a lot of behind the scenes maneuvering going on as well as far as actual competition, north korean combined hockey of those women where we saw those cheerleaders did lose to switzerland, 80 netherlands 5 and germany and the u. S. Are tied for 4. It is going to be a busy week and an exciting week of competition. Coming up well talk to the 17yearold who won the u. S. s first gold, red gerard, you will hear why of all dream sponsorships he would like to have one with chipotle and Jaime Anderson and why she wants elon musk to call her that kid red, that was a great win and unexpected when you are not the favorite, you are loose and goes out there is and does it all so many were a great story and then those norwegians, those whole country is built for the Winter Olympics i dont know, they have the most of all time, dont they of medals true, they are good in certain sports others like the u. S. And south korea even are better at speed skating so thats where it is going to be other than other erc events start to meddling in. When you see knthe norwegians it is like it is having been there and trying to climb up the mountain, all the no norwegians are passing me. Thank you, carl when we come back, well have the exclusive interview with broadcoms ceo, hock tan thats how they roll. Well talk about qualcomm and business as well here is another look at futures as we get ready for trading in 20 minutes from now. We have a lot of squawk on the street from post 9 right after street from post 9 right after thiste missing out missing out after hours. Not anymore, Td Ameritrade lets you trade select securities 24 hours a day, five days a week. Thats amazing. Its a pretty big deal. So i can trade all night long . All night long. Is that Lionel Richie . Le the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with Td Ameritrade. In the 2018 lexus es and es hybrid. Lease the 2018 es 350 for 339 a month for 36 months. Experience amazing at your lexus dealer. Well, does it get bigger in my world, the tech world mma, same sector and raising its bits to 2 a share and two companies will be meeting this week i am so shrithrilled to have ho tan here let me ask you why i have been such a big supporter. This is one where qualcomm just does not want it and theyre willing to do anything it seems to stop you. At what point do you say it aint worth it one way driving down to is we believe and we have a compelling offer out there, extremely compelling we have gone out to shareholders and a lot of qualcomms significant shareholders and what they like to see is engage with us. Any responsible buy would make it a top priority to negotiate an agreement with us and preserve and protect that 82 a share that we have on the table. Any responsible words, that means you believe this board is irresponsible of the way it handles itself no. We have an encouraging meeting on wednesday you said overwhelming from their shareholder based. Very much unclear of where the index funds which owns so much with qualcomm and of the Large Company is coming down what i am hearing is continued concerns of antitrusts a and i p there is still value there lets start with antitrust, why not give more assurances and not just an 8 billion break up fee. Come hell or high water, well get this deal done thats what some of them tell me they would want. Why didnt you offer that . What we have in place is a serious offer. It is. Let me start out by putting it in perspective the other side, qualcomm have sent a lot of messaging from them the past two or three months, heavy on rhetoric and short on specifics we studied everything here at the feds the two business, the two companies are highly complementary. Our call businesses with each other do not compete there is a year path to regulatory aapproval we have the track record if you believe there is a clear path then why not take the Regulatory Risk in a significant way. Why not just take it all on . We are already taking most of the risks in certainty on regulatory we are we have identified as they have the two product lines that overlapped we have up front clearly indicated to all three regula a regulators the rest of the stuff was signed out their efforts to clear what is failing routine thats why i mentioned and it is a low regulator risk and on top of that we are putting our money where the mouth is 8 billion you know i am kind of a frugal guy, you think i would sign out to pay 8 billion if there is everyone a Second Thought that it would happen. I think it is great that you brought in the frugality the front page article today, they talked about qualcomm supporting robotics for School Children and raising money for local police and people there are according to times, having a hard time of a city without distincti distinction distinctions should they start imagining it the only real question that i would like to adhere that comes up here is simply this to paraphrase a famous president , our qualcomm shareholders are better off today than four years ago. The answer is no they are 11 poorer. Shareholders are 500 richer we are very good at creating building sustainable businesses and employment and innovation on businesses we acquire. Hock, one of the reasons i am a big fan of everything you have done but i am concerned here, when the rumors were first reported you are interested in buying qualcomm, your stock was 273 your stocks have plummeted and your stocks got hit again. We are talking about a 50point down in an attempt to buy qualcomm at what point do you feel your shareholders are getting hurt by this we believe i believe, we have a lot of support from broadcom shareholders for this reason we have a track record of creating and building sustainable business, we have the track record of the longterm creating this kind of a lot of values for both broadcom and qualcomm shareholders you aremeeting with them on wednesday with iss which is important in this kind of situation and Shareholder Services making republicing rec and funds so you go in there and say 82, best and final and theyll say 90 bucks will get it done, hock, do you go higher this is best and final. We have a compelling offer and we would encourage we would urge the board to take a hard look of the value we are creating here for shareholders 60 is 60 premium before. 60 per share is cost in this volatile market. We give certainty. We believe our offer is compe compelling i am wondering when you walk into that meeting on wednesday, what conceivably will you offer in terms of negotiating to try to change this dynamic it remains of our best and final offer. We would urge if they dont do then on month sixth, well, you got the referendum, we pointed out many times. March 6th is the annual meeting. Lets say you win a couple but not take the board do you hang around and does your offer hang around . Lets say you win two seats, what do you do . That is binary proposal if we do not at least the majority of our slate do not get in on march 6th, then i ask we get a message that this deal is not going to happen. Well walk you will walk well walk if we dont have a board thatll work the deal. Will you still see your directors or not of course, theyll see, by one message is if it will not work unless we get the majority of the board this week, i believe it is possible and it is pi, acquisition gets approved. We know of the Chinese New Year there is be there has been a lot of speculations right after that. If qualcomm pays 125, what does it do to your bid. We have made it very clear in our latest proposal. It goes down to nxpi will not solve qualcomms problem it is the broken Business Model. If qualcomm raises the price of nxpi we make it very clear, it is a clear value from qualcomm shareholders to nxpi so another walk away . Well preserve all of our options. We are confident that qualcomm bought any shareholders. Well consider it carefully. They have come out just as we have we agreed on a few things of 110 is a full price on nxpi i know you said nxpi wont help them. The reason why i like this deal of qualcomm too much is theyre too much cell phone. At a time when apple is no longer going to be able to rate the super cycles that did not exist. Why do i want my broadcom to double down on an area of technology that is weaker and getting weak even more weak when at least you got the autopart of nxpi why are you doubling down on cell phones . Our business motto and simply, why did we go out and try to buy qualcomm . They have very Good Technology thatll be sustainable we are looking at this great asset as a franchise and creating a lot of shareholder values for both qualcomm and qualcomms shareholders. Right now qualcomm says they can do 675 to 750, why dont we give qualcomm a chance the creditability on this numbers are extremely questionable they had a chance many years ago. Think about four or five years ago, 4g were just coming in, great opportunity. Now, we are on the verge of 5g, theyll fumble again it is not about creating value to shareholders which they have never shown the ability to do. When it comes to broadcom, there is a criticism out there and it is a minority, it goes to the idea that the company is built on acquisitions, we have seen many of them throughout the year roll up for the lack of a better term if you dont do this deal, your stock will be more how do you respond to those critics who lured you in and only to have their stocks plummeted . What we do is we acquire business product lines that are in proven markets and lead in technology which we build up on sustainability thats what all of our franchises are regardless whether you are acquiring qualcomm or not, you are comfortable of your strategy and you dont need to do with another large transaction. If we dont do it, well continue on our current strategy of continuing to acquire assets in the industry and build on those. The meetings coming up on wednesday and what we heard, it does not seem to me that you are making new offers for them you said best and final is 82 and you have taken hell or high water off the word as well what are you walking into the meeting on wednesday given that they already rejected this offer, what do you say trying to change their viewpoint on your offer . We want to be able to engage with them. Again, we want their boss to negotiate a merger agreement with us by march the 6th i know you do, theyre saying you guys have an option on the company and they dont like the merger agreement and they dont believe there is enough certainty in there over the last two months especially since we raised offer to 82 beginning of last week. My cfo and i have been on the road the entire time meeting virtually a lot of significant shareholders of qualcomm we follow it exceptionally and we have strong support and they are talking to their boss and we believe they want their boss to engage with us which is why we are saying we are asking their boss to put a price to negotiate an agreement with us by march the 6th. There are two large index funds that are 15 why do we think they wont say, we got to go to qualcomm, give them a chance. We dont want to go with broadcom what assurances do we have of index funds that theyll go with you . We have a compelling case on two fronts one is the biggest one is with the kind of financial returns that qualcomms boss has delivered over the last five or ten years, no index fund or anyone else, they would have to think hard about why could this be done better we are confident that may come into play. How many of the large shareholders that you talked to say, qualcomm and apple has a lot of contention, i want to work with you. No one has said that to us. It has to be worked out. It is not just one customer, tait is a broader perspective it is all customers. We have to deliver to all customers. What do you do of the license businesses you close it down . You cannot do it on day one but well transition and well reset the business motto so it is not a contentious issue hold on, hock, we do have the opening bell there you stay right there the nasdopening bell all right, hock, i come back with you what would you do with the licensing business it seems to believe that you would close it down on day one no, it is not true. Everything takes a transition to happen well reset the business motto overtime and make it sustainable. Over the last three years, we realize that qualcomm was hit with fines and more than what they made in profits over the last three thats not a sustainable model i want to say thank you, you came on tv and you gave your side of the story. It is a compelling story ceo of broadcom, thank you very much. Thank you gentlemen, i appreciate it and enjoyed it all right, lets get to the markets here it is interesting seeing mr. Tan speaking of the benefits of the model. Tell me your thoughts here we have a couple of green lights of qualcomm we have substantial bounce this is the last time that you can get in i also believe that oil being up is terrific because that was part of the components and vix, 27. 76 is not bad tvix is getting smashed today. There is a lot going right but it is very early what we have seen is when we have europes up and when europe is done, we are out on our own there are so many variables that i think this is not the market that you come up 250 on the dow. You do not do that you can say you missed it but to say to come in at these levels is dangerous thats because . Fridays quick sand tvx being one of the instruments that was not created it was not meant to be an asset class. If the tvix spiked, well be down today all right i wish it were not so simple. When do we finally escape this and so to get back to or do we not . Daus t does the prospect of higher rates mean volatility to stay. We just had hock tan is here. Whether you hate him or like him. Theyll not be a big benefactor. This qualcomm stock is at 11th times this is the kind of stock thats being pulled down bythe market we have these Consumer Product stocks just getting hammered i think that these all have stories to tell but theyre too expensive in the Consumer Products and too cheap in tech, theyll con