Good call, jamie. Barry diller had stuff words for espn this morning on squawk box saying the Cable Network channel exists in a tools economy. We will talk about what he means and whether they can withstand Cable Network and bundling. And a takeover in the beer space. This deal surpassing 100 billion. But well tell you why the deal could face a few hurdles before it can be completed. And Vladimir Putin speaking out on the crisis in syria. We will take you live to moscow for the very latest. But first lets start with the jpmorgan earnings, the big Bank Reporting after the bell tonight. We will have those numbers for you. The wall street journal reported this morning that the bank is already taking cost cutting measures including eliminating support for employees blackberrys. Frankly, its about time. You knew this was going to happen. What is that about . Are things that bad . Well, thats the question. Right now joining us to break it all down bill sneed. Jpmorgan and his funds top ten holdings. What did you think when you saw them saying no more support for blackberrys . Cutting a little too close to the bone for your liking . No, we think its inevitable that there are going to be fewer human beings needed to provide the products and services in the banking business, especially as millennials become bigger and bigger players in the economy. So thats not a shock. How deep you cut and where you go with that i will leave that up to much brighter people than myself like jamie diamond. Are these kinds of cuts meaningful enough to the bottom line or is this just something on the margins while they wait for the fed to raise rates so their interest margins go up . How much more cost cutting are they going to need to do down the road . Well, its symptomatic of the era that were in. For example, theyve done studies on people between 25 and 35 and right now theyre behaving more like prior generations did at 58 when they were getting ready to retire. So its not just jpmorgan thats doing this, its everyone and really what it gets at and really where the bright longterm future for jpmorgan is for the economy to hit escape velocity. In other words, for people to form households, buy houses, buy cars the Retail Banking piece its not the whole story for jpmorgan, were talking equity underwriting, trading, there is a lot of other levers to look at. Why is it just the behavior of the millennial class that has you so concerned about thp particular bank . Think of a bank like a restaurant rather than a bank. So a restaurant sells its tables over and over again. What the bank needs is for money to get turned over and over again, thats the velocity of money. If you get an economy growing at 4 , the velocity of money soars and the banks get little tiny knicks out of each transaction, credit cards, you mentioned Investment Banking, et cetera, et cetera. Atms. Exactly. You have two things going on, analysts want to see Interest Rates go up because thats one way they can get more profitable, the second way they can get more profitable is the velocity of money and that is really the key. Now, warren buffet was at a conference and he said that their Furniture Stores have furniture flying off the shelves and their car pet company is super busy. So those are the kind of things that jpmorgan needs is velocity of money, Economic Activity and that will be driven by the emergence of this large group. I dont understand what youre saying. If this is about the velocity of money that is a macro issue totally separate from the behavior ever technology and the millennials. Yeah, except for you have to understand that mortgage borrowing is the largest source of demand for money in our society by a long stretch and when that accelerates it has a Multiplier Effect that is hard to imagine. The typical Economic Growth period including 1. 5 to 2 of the growth being from housing and housing related and we havent even seen we are not even into the positive territory yet. We are so early in this economic recovery and i think thats the thing that baffles most investors and even professionals. I dont know, it just seems to be nitpicking to be cutting back on paying for an employees mobile device. We made jokes about blackberry, but cutting back on Something Like that they got rid of voicemail. Nobody is using voicemail. Everybody is using mobile devices so put back on paying for an employees mobile device, do you that when you are in recession or when you are, you know, seeing a huge decline in business. This is jpmorgan for pete sake. What are they doing here . Well, yes, but how about this, will the human beings involved be more productive if they werent looking at their business emails in off hours . I guess. I dont know. I dont get t but im not jamie diamond and he is. Bill smead, thank you for joining us. We will hear from the company in about an hours time. Lets talk about this day and where were going from here in our closing bell exchange. We have jim lowell, michael farr and New York Stock Exchange trader peter costa. Michael, do you know what i mean . The cut back on mobile device, paying for mobile devices by a Major Company like jpmorgan . What is that about . Bill, it seems awfully picky and tinning strikes most people that way, particularly for a company the size of jpmorgan. I think it sends a fairly loud message, though, that the margins are getting tight. Its not easy to make money as a bank right now. They had a fairly easy period where they could draw down on reserves, where they could add those to earnings. Were kind of through a rate rates have been low for a long time so they really dont have that kind of loan portfolio, theyve drawn down from those reserves, they cant add to those earnings and i think they are not seeing a lot of growth, they havent seen growth in certainly the spread that they were hoping for if the fed had raised rates. Theyre really kind of tight, i think we are going to see more stock buy backs, but basically its tough to make money as a bank. You know, on that pint, peter, though, expectations really have come down for the financials here. What kind of bar do we need jpmorgan and some of the others who are going to follow in the next several days to clear for this market . One of the things that we should be looking at is their forward guidance. Jpmorgan is usually very good about their guidance Going Forward, they are usually very rarely do you see them cut that guidance or increase that guidance. So we will see what they say about that. I think bank of america and wells fargo do the same thing. Theyre usually pretty good about it and i think thats going to be a pretty good sign for the next two quarters or at least the next quarter. Jim lowell, there are those who feel that the expectations for the banks especially have been lowered so much that they will be able to just walk over these numbers pretty easily. Are you among those or i mean, obviously the banks are a critical sector to keep an eye on to tell us about the health of this economy. What are your expectations . Short term im focused on exactly whats going on inside jpmorgan, whether or not its all about bottom line cost cutting to compensate for what is the lack of Top Line Sales or growth expectations. Forecasts are going to play a key role in our assumptions Going Forward into the end of the Fourth Quarter. Thats not just on the Financial Services sector, thats really across every industry. Were very focused on what the forecast in some are predicting in terms of either slightly moderately better growth or some sort ever retrenchment we know that the financials on a valuation basis like the healthcare stocks thanks to the Third Quarter swoon look fundamentally more attractive in a very near term view, but longer term weve got to see more sustained signs of broader scaled growth to get very optimistic about financials or other sectors. Go ahead, michael. Bill, i think the question was an important one. I dont think that we have set the bar so low that you can stroll across t that was a good question. I think the markets continue to be nervous, there is squirrely with what the fed didnt do, theyre squirrely with what might go on in congress that will keep the fed longer on the sidelines. This is a tough time. I think investors will scrutinize these earnings closely. Michael, i was going to ask that b. That. It does put the fed squarely in the name gaim or out of the game. The San Francisco fed had study based on different impressions about inflation and so forth, we might not see a fed moving if you take the politics out of it until 2020. If Something Like that started to get rid clee price nood bank stocks would that have much further to fall or do you think that a lot of pessimism is priced in. They are down 3 , we saw them down 6 from the highs earlier this year, they are off about 3 from where they were. I think there is more room to the down side. Certainly the banks if conditions continue to disappoint or deteriorate. When the fed came out and said that their inflation target of 2 is not likely to be hit until 2018, wow. I mean, thats stunning. That tells us i mean, you are not going to have 2 inflation for over two years. Thats got to bring your expectations a bit lower. Peter, there is a line thats used in virtually every john wayne western and it goes like this, there are two cowboys sitting around the campfire late at night and one says, sure is quiet and the other says, yeah, too quiet. This market the last couple of days has within questionnairely traded on quiet volume. I know it was a holiday yesterday but stood its not. Are they waiting for earnings . The way i see it and i think that a lot of my clients feel the same way, theyre waiting for a full week of earnings, i think once you get through the financials which is this week and early next week, i think theres going to be a little bit better direction but i think this whole earnings season is going to be very choppy, but i dont think its going to be choppy like a month ago when we were up 200, down 200. We are almost starting to go back into that narrow trading band and to me thats just boring. Before we go, jim, just a quick question. It was having to read when j and j kicked off earnings this morning doing a 10 building debt fueled buy back apparently its one of three aaa continues left by the s p in terms of like the major the large caps that we have. Are you getting concerned about corporate Balance Sheets as we have meantime whats going to be a huge debt fueled deal in the beer space as well. We are not getting overly concerned about corporate debt just yet, but its obviously on everyones radar screen for a reason. Its never been as big as it is. We think some Companies Know how to manage that debt better than others. This will be an interesting time to be a stellar junk bond manager, you will be able to buy into some very interesting cycles. Thanks, guys. Thanks, guys. See you later. Sure is quiet. 45 minutes a little more than that. The dow is down 12 points, the s p is down about 7, small caps down about 10, the nasdaq giving up almost half a percent today. Up next, Vladimir Putin sounds off on president obamas strategy in syria. Our Geoff Cutmore has the latest from the Russia Calling Investment Forum in moscow. We have an interview with Vladimir Putin coming up here. Plus we will preview intels results and break them down right after they hit the tape with cfo stacey smith. That he is also to come right after the closing bell. Stay tuned. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. Im a gas service rep for pg e in san jose. As a gas service rep we are basically the ambassador of the company. We make the most contact with the customers on a daily basis. I work handinhand with crews to make sure our gas pipes are safe. My wife and i are both from san jose. My kids and their friends live in this community. Every time i go to a customers house, their children could be friends with my children so its important to me. One of the most rewarding parts of this job is after you help a customer, seeing a smile on their face. Together, were building a better california. Welcome back. We have been showing you the three major averages and how they have been doing today. Not a lot of volatility, down just 29 points on the industrial average, but take a look at the dow transports. They are down sharply today, lagging the major averages, down almost 2 here. Jetblue is down 7. 5 after jpmorgan downgraded the carrier from neutral to overweight. That firm deciding pressure on jetblue because of increased labor expenses. There are some sectors on the move. Russian president Vladimir Putin defending his countrys intervention in syria. Our Geoff Cutmore is there and putting tough questions to the russian leader. He joins us now. Reporter this was mainly an Investment Conference hosted by vtb, which is a stateowned bank, but when i had the opportunity to put a question to mr. Putin, it was on the issue of syria, but i wanted to get some answers. Lets listen in. Mr. President , over the weekend u. S. President obama called into question your leadership over syria, he said that you are propping up an ally rather than going after isis. He also said youre running down the economy here. Can i ask you how do you respond to president obamas comments . And what would you say to International Investors who are dissuaded from putting money into the russian economy because of such remarks . Thank you. Translator as we say, youve mixed apples and oranges together. At the military level we asked them to give us the information regarding the targets they believe are 100 belonging to terrorists and what we received as an answer was that they want to do that. Then the second question was asked please tell us which target should not be attacked by us. No answer received. What should we do then . Reporter so the russian president making the case that he feels he has not been given clear direction from washington over which are the right targets to attack and thereby the russians have pursued their own policy. He also went on to say that he felt the giving of weaponry to the Free Syrian Army have been a mistake and some of that weaponry may have found its way into isis hands. Back to you guys. Geoff cutmore in moscow. Wow. What a crazy cat and mouse game going on between russia and the u. S. Anheuserbusch has agreed to buy sab mill for create the Worlds Largest brewer. Dominic chu joins us with details on what a huge deal this is. Not just because of all the beer fans. This bud is for you if you want to look at it that way in a way. Its an agreement in principle, guys. Its a tentative agreement for anheuserbusch to buy sab miller. The deal is around 105 billion and would if the deal gets done create an absolute giant in terms of beer brewing. You have bands like bud and miller, but it also brings together International Brands like stella artoire, corona, peroni beer. Here are some of the details. First there are likely to be regulatory hurdles, some estimates are that a combined company would control nearly a third of the world beer market. Will asset sales be enough to satisfy Global Regulators and cross all jurisdictions . Second the deal would be for cash with an alternative choose to allow big share olders like altria and the santo do minute goe family to take it in cash and stock for tax returns. Third ab inbev is looking to life up 70 billion in debt to finance the process. If the deal fell apart they would pay a 3 billion break up fee. Fifth a deal would need to be finalized by tomorrow now sab miller has asked for an extension to put the full deal together and that deadline will be at least in their request october 28th. So there it is for now, a tentative deal to create the worlds biggest brewer by far. More details, kelly, bill, smurl to follow, all the logistics and what promises to be possibly a long battle to get this deal done for both shareholders and regulators. And you mentioned those logistics. Obviously people are look to go what assets may be in play including the joint u. S. What is it called joint venture the jv together. Theres a son of other plands that have all these different potential ownerships that have to be sorted out, dont they . There to be a lot of upheaval in terms of ownership for a lot of different well known beers in the next several months if this prog guesss not just here in the u. S. You talk about this idea that you have this molson tap venture for those brands in the u. S. Those assets some analysts are looking at are already on the block as possible sale proceeds to apiece regulators, but then if you talk about european regulators, talk about the chinese thats coming newspaper a lot of conversations because sab miller is one of the people behind snow beer one of the most popular beers in china, also ab inbev as well. China could be a big market. A lot of these regulators will come down to whether or not their particular markets will be impacted by this. Youre talking about putting together a laundry list of asset sales possibly with multiple jurisdictiones in play just to get this done on multiple fronts with multiple regulatory bodies all over the world, guys. I just still want to know what you are going to call a company that combined ab inbev with sab miller. Just call it bud. I like it. Thank you very much, dom. 40 minutes to go into the close. I was surprised to read snow is the number o