Get an interview with siri, by the way. Tomorrow is day one of the fed meeting with most economists saying a rate hike is off the table. When will we see any movement on Monetary Policy . Well be joined live here at the new york stock exchange. And oil, the highest its been. Hes holding to that forecast. We begin with microsofts blockbuster acquisition of linkedin, announced just before the opening this morning. Jon fortt spoke with both ceos. Jon . Microsoft wants to get bigger, but to do that it needs online professional Services Running on the platform. Linkedin has got more than 430 million members, but only about a quarter of them sign in during any given month and to change that, its been promoting itself more than just the biggest place to find a job online. Its promoted it through news stories, training courses and more. Linkedin was approached when stock was lower. Take a listen. We were talk in february about whats the next phase . Can we complete it more tastefully and wbetter relevanc. If it was informed like what projects are you working on. I mean think about how you can bring it to improve the relevance of the feed. Thats what excited us. Microsofts ceo amy hood said shes going to measure this deal on top line revenue but how linkedin brings more revenue to microsoft. What remains to be seen is whether they can strike the right balance which is the key tenet of this deal and getting the engineers to work closely enough to improve the products on both sides, guys. Oh, the challenge for so many of these takeovers, thank you. Microsoft one of several tech giants. Dominic chu has other cash orders that could be looking to make an acquisition of their own. Dom . Tech companies are among the biggest hoarders of cash, and were talking about a ton of money. Lets take a look at our wall gear, our wall of knowledge, and take a look at the big cash shortterm and longterm investments. We talk about apple and its 233 billion cash hoard. When it comes to cash, microsoft has the most even if you include all of those things, its 117 billion for microsoft. Cisco systems, telecommunications giant, 65 billion in cash and oracle on the Computer Software side. Whats interesting about these companies, they all have one thing in common. Theyre all very, very credit worthy. According to s p, each one of these companies has a Credit Rating of at least aa minor or later. Theyre one of two to have that vaulted aaa rating. Johnson johnson is it. They said they were going to take a look at microsoft to see whether or not this acquisition could affect their longterm rating. For now, Microsoft One of two companies that has that s p triple Credit Rating. Back over to you. Something theyll be exploring later. Dom chu at the wall of knowledge. Thank you very much. Does this deal make sense for microsoft and will we see more dealing coming forward. Joining us now is mark hauten. Good to have you with us and what a rollercoast ride it has been. Lets just start with what it means for the future of linkedin. Well, hi, kelly. Thanks for having me. I think this is a tremendous extra teej strategic deal for both companies. The need to have it within the enterprise, theyre very much for them. They provide more products in the next generation Cloud Based Service services. Theyve had mixed degrees of success. I think this is a big acquisition. For linkedin, it givens them a chance to jump start. First quarter 2015 and 2016. We saw significant selldowns in the shares because they made these missteps. I think working within the within the Microsoft Organization will assist that enormously. You know, i find it interesting. You were in seattle recently and you were visiting with the microsoft people and you were asking them, why dont they buy linkedin, so clearly this was something that was on your mind as well. But drill this down to the personal the impact it will have on users out there. I mean Satya Nadella was trying to do that in his interview with jon fortt. What makes sense for the users of both microsoft and linkedin to have this deal make sense . I think the important thing is to understand this is not synergies in a more normal sense. You know, this is not really a costsaving game. This is about providing more products that enterprise users need in one place. Its a little bit like the sales force for a whole number of different klaus based products from one vendor. I think this is doing the same thing. They can now provide within their dynamics offering. They can now provide the social fabric, which i think is going to be so important for the Network Economy that we live in today. That does raise the question, mark. Since its been a rumor for some time, why wouldnt they a acquire a sales force . What happens in terms of the dominos and other combinations that are out there . I think that the sales forces now, you know, its pretty big. Its double the size of acquisition, probably slightly more than the premium youd pay for linkedin. There are also personality issues that would need to be handled. I think that, you know, this is a much safer stat, although, its been much talked about that they could buy the sales force. Other combinations, i think the most interesting area is in the analytics area. With the enormous amount of data thats being created at the moment, analyzing that data is important and theres two names that stand out there both in the 3 billion to 5 billion mark. By the way, before we let you go, i know you own both shares of companies but are you pleased with the price that microsoft paid for this company . Theyve been down sharply the last year or so and they had the huge decline in february. This price takes us back to that level where they began the year. Is that a good price for you . I mean obviously if you get any kind of premium on a oneday view, it looks great. But i have to say i think microsoft has got a great deal pricewise. Its not dissimilar to the play you pay for other network companies, visa, mat f mastercard, and adobe, for example. You actually get a much higher growth. So i think its great. Im kind of disappointed as a linkedin shareholder because im still sitting below the heise, 30 below where the shares were at their highs. Im sure youre not alone in that one. Mark, thanks for joining us, i appreciate it. Lets get to our closing bell change for this monday with the dow down almost 100 points. Were setting some lows. Jim lowell is back and ben willis with princeton securities and jack ber rue jan checks in. What do you expect the market to do with it . The stockmarket is still entirely driven by Central Banks. Todays coming in. The pressure came out of china, some of the Economic Data there that continued to question the pboc. But the brexit was probably the single most important coming in and the fact that the remaining poll exit dropped by 10 . Its still very much positive, if if you will, to remain, but that sort of weakening concerned the market coming in. So there were some stocks to trade with the microsoft linkedin deal, but the stockmarket itself does not have a real good feel to it. Keep an eye on 2081 for a support level on the s p. If we breach that, koit uld be another painful drop down here. Again, if youre a longterm investor, this is going to be a buying opportunity. Im still bullish. I dont think this is the final song by any means, but this is the tape right now because of lack of participation, lack of volume has a real nasty feel to it. We also seem to be tracking crude oil in here, jack. Do we continue to do so . If you look, its finally on the wayside. I dont have to worry about it right now. On the other hand, if we look at the slow side manifesting itself look for crowd to hit a little bit. This june exploration, which is this friday, i guess the question is the fed going to be playing havoc with that pricing and more importantly is brexit the black cloud on the horizon because nobody seems to have price thad in. Jim lowell, so all of these different fundamentals, the macrowith the fed meeting and the brexit and the price of oil and what its doing wrrks do you see opportunities . Nice tie, by the way. Where do you see opportunities . Thanks, bill. I think brexit will be an absolute leverage point if the vote to stay is what transpires, i think youll get a knockon rally thats significant in the european forces. If its to go, i think thats going to create some real near term havoc which means buying opportunities for the long term. We like jed weiss as a good active manager who will hopefully be able to sort that out for us. The feds, while they continue to favor no rate hike, if they stay with it, i think the fed likely raises rates based on fundamentals in their july meeting. So i dont think the feds going to go away, but the brexit issue will go away one way or the other creating good nearterm buying opportunities based on fear. Jacking we should mention whats happening in china and japan. Certainly overnight it seemed like the chinese currency was weakening, a lot of the data and the bank of japan with all the rate headaches has a meeting coming up. So whats the bigger risk, do you think, or opportunity . Right now, negative rates are a cancer. We have to understand that. Its not only asia. Its happening in europe. Ive dealt with them for years. I can tell you first hand, several bankers and bankers alike are staying up with this negative Interest Rate and wondering how long its going to take because quite frankly people are hoarding cash. Theyre looking for ways to be able to preserve capital. None of this is workingful were not seeing any of it come out. Were not seeing any inflation stoke up. Nothing that the Central Banks want is happening. Ben, as were standing here talk, the dow down 19, the s p 13, but the vix has hit 20 for the first time in a few months. Significant to you or what do you make of that . For those who want to play more belts and braces, the vix has been a good place to hedge your portfolio. If you bought it below 13, its obviously paid very well. Its hardly anything to worry about if you have a hedge on with the vix. So a good place, a question for anybody who does that trade now is when do you step out of that trade. Is it time to sell the vix and if you get out of 20, do you wait for 20 2 2 or 25. I think its probably wise. Id be looking to lighten up my vix position if i bought it for a hedge. All right. Very good. Thank you, gentlemen. Good to see you. Appreciate your thoughts today. Thank you all. About 45 minutes to go here. You just heard the dow is down 109 points. The s p down 14. The transports are getting hit, 76 points, and the nasdaq is about 39. We talked about fed, brexit, negative Interest Rate, Goldman Sachs jan hatzius talks to us about the biggest risks he sees with the u. S. Markets coming up. And best selling author Walter Isaacson joins us for the next hour of the show. Well get his take and to the latest announcement from the worldwide verps conference kicking off in San Francisco today. Youre watching cnbc, first in business worldwide. I was working in the yard, my chest started hurting and i thought, well, you need to go to the doctor. I was told that is was cancer, and i called Cancer Treatment centers of america. Dr. Nader explained that they can pinpoint the treatment. Once we identified that there was this genetic abnormality in her tumor, we were able to place her on very specific therapy. 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Its an amazing feeling turning those lights back on. Be informed about outages in your area. Sign up for outage alerts at pge. Com outagealerts. Together, were building a better california. Welcome back. We have a news alert. Earlier in the show we were talking about Credit Ratings. Right now s p, standard and poor is weighing in saying they will look at that. They go on analyst a number of reasons they talk about the idea that microsoft has maintained and is committed to maintaining high credit quality by sustaining its net cash. They also say the companys long history of making Investment Decisions in a fiscally prudent manner is a positive. So Interesting Development here, bill. Moodys, remember, earlier said they were contemplating a possible downgrade of this particular Credit Rating on their end because of this deal, but Standard Poor says it will maintain a aaa rating. Back over you do guys. Credit ratings are an art, not a science, i guess. It depends how you look at it. Its a good point why moodys did this, because they will be using debt to finance the deal, even though its a cash deal. It goes back to that byzantine structure were left with because of all the ways the companies are leaving it. We had a long discussion about this earlier today. Were reinacting it right now. Tomorrow kicks off a twoday meeting. Youll see it live here on cnbc. Then theres the bank of japan meeting next week. So is yellens testimony before congress, there are all kinds of dramatic things happening that could impact the u. S. Economy coming up here. Joining us with his thoughts on the days ahead, jan hatzius, chief economist at Goldman Sachs. Hello. How are you. What a difference one data point can make. Yeah, i mean if it hasnt been for the employment report, you know, it would look like there was at least a chance they might go this week, but clearly thats not happening. Now the question is really what do they signal about what happens after the june meeting, you know, july, september, what do we see and so forth. Do they wait do you think they could raise rates in july and will the brexit vote have an impact on it . I think so, yes. We have a 35 chance in july and the same on september. So i think theres a decent chance. The brexit vote, of course, is a factor, but i think the most important factor is whether the next employment report shows the last one to be basically an outlier on the low side. That would be my expectation. You know, well have to get more information on that. By the way, the whipsawing of the opinion about what the feds going to do because of the data has led to the critiques of the profession. Paul mcculley, by the way, whos an economist. You probably know him well. The egg belongs on the face of my profession, he says. Hes upset in particular about the entire approach the fed has taken here. He says, my profession refuses to acknowledge that the economys existential woe is a deficiency of aggregate spending, for which fiscal policy expansion. Meanwhile david zervok says, and the fed is behind to the cash you observer it would appear the market whats going on . Why has this been such a moment of self flagellation . I think theres a time where theres back and forth. For years we were in an environment where the debate was about whether the fed would be on hold for one year, two years, or three years, and now it is datadependent i think it is a normalization process, but its not something that you can you know, you can look at as a sort of calendar you know, every so and so many months they hike, but it does depend on the new information. I think well have plenty of these episodes over the next couple of years would be my expectation. I dont think that will settle into something much more placid. We talked about this the last time you were here. The fed is never going to have a Perfect Moment when they get everything they want. The last time you were here, the jobs market was stronger, but the Inflation Expectations were not there. Now its reversed it could be argued. Inflation is pretty much where they want it to be but now the jobs market is weakening. Are they ever going to have that moment in time when they will be screaming to them that, yes, its time to raise rates here . I think there will be a time when its clearer than at this point when youve just gotten a data point that at least on its own suggests we could be at a lower pay growth rate. If that hadnt been true and you only see the weaker expectation numbers in the markets and at least some of the surveys, then i think it probably would be time to at least think about going this week. So i think youre right. Nothing is ever all going to line up just because there are so many data points out there and theres quite a bit of noise in them, but you want the. Of the evidence to point toward it. It would seem that if the jobs need to start weakening, the case is made that its broadening. Weve had a number of people come on the show and saying this is a recession, production has been falling since 2014 and the filibuster sooitd of what has been a very healthy and robust labor market, there are other parts of the economy that look like they could almost classically be in recession. What do you make of these dramatically different signals and how likely is it that more broadly things could actually slow down . I think thats too negative. There are certainly some parts of the economy that have weakened and the industrial sector, i dont think its been in recession, but its stagnated for a quite a while. If you look outside the industrial sector, which is 90 of the economy, it still seems to be making progress at Something Like a 2 p