Estate loans. Should the government pay more attention to art lending . I love this story. A new report says sothebys and its lending arm could be creating a shadow banking system. To hide laundered money. Crazy. Robert frank will be along to talk about that in a little bit here. A settlement for Gretchen Carlson, the fox news anchor claiming she was a victim of Sexual Harassment. More on what it means for twenty First Century fox. There was plenty of deal making. We have the stories. Dom, you first. Kick things off here at the board. Bill, merger monday. No more. Labor day holiday. Takeover tuesdays today. Well talk about the first big one. The german pharmaceutical looking to buy monosanto. Thats up 2 from the 125 bid they had before and up from the 122 bid before that. When we combine them in a hypothetical deal, the biggest Crop Sciences seed manufacturer in the world and brings together monsanto. They own roundup and then bayer as we know it in america and dr. Scholls foot care company. And coppertoen sunscreen. 4 billion in terms of total enterprise value. Equity plus debt and its going to buy banaher near the lows of the session down by 2. 5 . This company does medical technology, science technology. Devices and diagnostic equipment. Cepheid with blood tests. That deal 53 bucks a share and finance it through existing cash and debt, guys. See what happens there. Two big deals to talk about there. Im confused. I thought danahern made yogurt. How do you pronounce fage . I think thats it. Thats one. Thank you, dom. Now the buyout in the Energy Pipeline space. Jackie . Good afternoon to you, kelly. Truly a mega merger in the space as you mentioned. Enbridge, canada, buying speck that energy in a 28 billion deal and could potentially create the largest north American EnergyInfrastructure Company out there. It speaks volumes to the consolidation we are seeing within the industry and could continue to see from here on out. Companies looking to reduce costs, to diversify assets and streamline their businesses. Obviously, pipelines get oil from point a to point b but what people dont realize is how important it is here in the United States to build out that domestic infrastructure because its not just about getting product out of the ground. You have to move it around efficiently. If you dont, that is the reason that we continue to see imports into the country from foreign sources. Even with the fracking boom, again, if we cant be more efficient moving the oil, well need to import. So not only did we see enbridge and spectra move on the news. Theyre getting a boost today. But other names popping, as well. Potentially because theres speculation in the field to be tar gets, as well. Kinder morgan, jp energy and williams companies, as well. Keep an eye on the pipeline space and definitely one ripe for more consolidation and more movement, guys. Back to you. All right. Jackie, thank you very much. Well see you later. Lets get to the Closing Bell Exchange for a tuesday. We have peter anderson, the impossibly tan Kenny Polcari fresh from cape cod and Rick Santelli from chicagoland. K k kenny p. , there is a perception september is not great for the stock market and now were not far from the unchanged level here. No. Why . Todays weaker Economic Data points to the issue that the economy is not necessarily where everyones telling us where it is and the rate rise conversation pushed out to december and the markets struggli struggling. Not taking off and not completely sure yet but one way or the other i think the data pointing that way as a sense to test 2,200 on the s p and i think it fails and then it starts to move lower because the reality of the fact that the fed is stuck now, they cant raise rates just speaks to the condition of the economy and so thats a broader topic and investors start to price that in. Rick, exactly to kennys point, that Services Data was pretty bad. And the manufacturing, one people to say its a small part of the economy, the services maybe you say at least it didnt contract. But it was a pretty bad read. Well, it was. Theres no way to split hairs. The worst since february of 2010 and last time under 50 happened to have been the month before that, january of 2010. But as you take a step back, theres a couple of things that need to be aired. First of all, anybody who shocked that we are getting long in the tooth on this Business Expansion just hasnt been around. We know that. We know at some point is recession is going to happen and theres no central bank on the planet to prevent it. Look at what they have done trying to prevent things like that in the past. They bottle it up. To your point and kennys spot, theyre in a tight spot. But i continue to say you cant let every data point move your strategy when youre the Worlds Largest central bank. How it turns out, a precursor to presession . I cant tell you. What i can tell you is even if were recession bound, there is no way to logistically quantify the notion of where rates are given the economy. Now, unfortunately, over time, theyre going to get more harmonized should we go into recession and underscores no tricks left in the bag other than buying things maybe other than securities and negative rates. And therein is why so many including myself unhappy that over several year it is fmoc committee didnt take advantage of many opportunities to normalize rates. Right. And, peter, you know, in this very low rate environment theres a feeling that the high yield market is a crowded trade. You dont think it is yet, right . No not at all. I think its a reflection on the Strong Economy that high yield is a very attractive asset class right now. Im sorry. You think we have a Strong Economy . I do. Based on the consumer and the fact that, you know, unemployment certainly is stable. But certainly would like to see some stronger growth. But from the corporate perspective, things are not looking bad at all. Although you have some default rates peaking up, in high yield on the energy space, every other place looks very good. Balance sheets are better. Jcpenney, for instance, coming out of the doldrums so i think high yield is a very attractive place but you have to be careful what youre interevesting in. Avoid energy and Consumer Discretionary and u. S. High yield especially is very attractive now and gives you nice income. Yeah. Kenny, this whole discussion reminds me of hot and cold by katy perry. One data says its hot and then cold and who can tell whats really going on . Thats exactly the point. Stanley fischer said last week the problem is theres so many numbers you have to sift through it and figure out whats happening. To ricks point earlier, the fed is absolutely missed numerous opportunities to have raised rates and started on normalization. They talk about it now when the data is weaker and the problem which is why i think theyre stuck into the corner and why i dont think you see it happening at all in september and to peters point, im not really sure im not in a high yield space and i dont understand where hes seeing the economy so, so strong when youre getting the weak data. Peter . Well, good point. And ill tell you this. I think the fed, why the fed isnt raising rates isnt necessarily just because of the u. S. Economy. I think theyre looking at a global perspective and theres so many moving points like brexit not played out yet. I think that the fed dare not do anything at this point until we see how the Global Economy plays out. To that end, though, domestically we look very, very attractive compared to any other place on the planet. Wouldnt you agree . I absolutely agree i think were the prettiest girl on the street but when the fed gets up there and talks about raising rates, it is the u. S. Economy, i agree with you. It is a much bigger issue, global issue. Yet, they dont say that. Right . All they continue to talk about is how strong the u. S. Economy is and on the edge and ready and never do it. All right. I would love to see the fed raise a bit just to show us that inflation creeping in and once again if inflation does creep in, thats great for high yield because that means you have Pricing Power and you can pass on that Pricing Power to your customers which in turn builds up your balance sheet. We have to go at this point, guys. Rick, thank you so much for your restraint on this last couple of minutes. I can see you straining there. Yeah, no. My lips are bleeding but im okay. Yes. Well see you later. We have about 50 minutes left in the session today. The dow hanging on to a gain of 25. The nasdaq with a gain of 19. The heat is on apple ceo tim cook to unveil the tech giants newest iphone tomorrow. Well take a look at what investors and consumers should expect after the break. Twitters Board Meeting later this week to discuss whether theyll go private. Well speak to a reporter behind the story coming up. Compx chnge. Peanwewer plts ant more thaa th othe ng t on ee emon re tyre reased into t aph exnmoblead inboboptur re tyam reffordablnto t aph make this techlo better, in duce emins arouhe w thats wwee work right n this is the new comfort food. And it starts with foster farms simply raised chicken. California grown with no antibiotics ever. Lets get comfortable with our food again. Welcome back. Roughly 45 minutes left in the trading session. Some movers on wall street today inclu include navidea pharmaceutical. Market cap of about 90 million and agreeing to sell the north american rights for the cancer diagnost diagnostic to cardinal health. Paying more based on annual sales and milestones of that product down the road. Meantime, centene among the worst performers. Im getting the difficult ones today. Leerink partners is downgrading the stock. Its a Health Care Company with services to underinsured and uninsured individuals in the United States. Kelly . Its all the people combine things and mc said they thought verizon, its verizon . Verizon . Anyway. We know call them and see how they answer the phone. Oldest trick in the book. How do you no. Speaking of which, tomorrow, the iphone, josh lipton is here with what we can expect. Josh . Well, kelly, investors are not expecting dramatic changes when ceo tim cook announces his new iphone tomorrow. Though apple bulls could argue the tempered expectations could work to advantage. Heres what we expect from that new iphone. So faster processor. Pressuresensitive home button. Improved Water Resistance and a new dual lens camera system. Whens generating most attention, that would be the expected removal of the phones headphone jack. That could mean that iphone could be slimmer but it also might frustrate consumers that paid good money for the wired headphones and dont want to ditch them. Apple stock up 10 over the past three months and down 13 from the 52week high and one concern is performance of that iphone franchise where we know sales declined for two straight quarters. Question is whether the iphone 7 could kick start that iphone business back to growth. Steve of ubs predicts it can estimating unite growth of 5 for 2017. He points out over 200 million iphone users have yet to upgrade to a larger screen. Well soon find out whether that is the right call. Guys, back to you. I guess i just wonder, josh, people who have to upgrade because the phones are hanging on for dear life but would the people with wriggle room say ill wait until next year with the big overall . I think thats a great question. The question on the street for the audience, traders, invest tors, can what we see tomorrow jump start the franchise back into the green . As you point out, people on older models but to some majority or minority of those on those elder models decide ill wait until that tenth anniversary edition. Or am i frustrated enough by the lack of that headphone jack not to make the move . Well sign find out. Josh, thanks very much. See you later. Are you bothered by the headphone jack ything . Yes. I dont know how they stay in the headphones if theyre wireless. Maybe dont get too far away. But then bluetooth runs down the battery. Ah. I dont know. Im usually adopter. Maybe in two weeks ill say its the best thing ever. A big week for twitter. A Board Meeting on thursday in San Francisco where there are many topics to be discussed including potentially going private. In his latest piece on the company, curt wagner looks at that option along with the possibility that the company being bought out by, oh, maybe google. Like we have heard from about forever. Curt wagner joins us now. Curt, welcome and thank you for joining us. I guess the question is, this rumor bantied about so many times. Is it looking like theres fire where theres smoke . You are right. These are the same kind of things to talk about for well over a year now with twitter and i think obviously the fact they have a Board Meeting coming up on thursday and the fact theyre going to be exploring all kinds of forwardlooking options i think thats why the rumors are resurfacing and i dont expect them to walk away from thursday with a set game plan and we know whos going to buy us or not buy us. But i think theyre exploring all these different options and i think they have a better idea of where theyre going to spend their time moving forward. Lets solve the problem for them talking here. Its clear they need to maybe follow a path of facebook or even google where they broaden their portfolio beyond the original business theyre in. Cant be a standalone business and do the tweeting business anymore, right . Whats ironic is i think theyre going the other way. So, one of the things im told theyre discussing at this Board Meeting is how to cut down on costs and a few different scenarios could be layoffs which is something they did last october. They could take some of the fringe businesses, things like fabric, a developer arm and trying to find a new home for that and focus and narrow the business so theres only about the twitter app, ad sales, they have and Live Streaming stuff they have recently started doing. They want to be as lean and focused as possible. Because that makes them more attractive to someone that may want to buy them. Lyft with reports of being up for sale or not, curt. With twitter it seems like it cant be a good sign that, you know, this is out there so much. I dont know their market cap. Throw on a premium for acquisition and maybe 15 billion, 20 billion for a company that should have meaningful Growth Prospects for that valuation and the reason the discussion is happening it seems is thats not what twitter has right now. How does that impact a potential suitor is willing to pay . I think that the cost is the biggest hurdle and everyone i have talked to for the last year, especially the last six months pointed to that valuation and said whos willing to open up the checkbook and say 18 billion, 20 billion for a company that is still losing money each quarter . Twitter is not making a profit. Thats where these costcutting initiatives that i mentioned earlier come in. Right . Okay. Can you kind of reduce head count . Can you eliminate the parts of the business not impacting the bottom line and the stock price and make it cheaper to someone else who might want to come in . I think the costs right now is the biggest hurdle. I dont think anyone argues that twitter is a valuable service. Is it worth 20 billion . I dont think so. What about the private equity option to take it private and turn things around in the messy way you dont have to do it in the public eye . Are there names that have been tossed about to be possible suitors . So, ton of names get thrown around and something substantial enough as you may have noticed in the story we didnt mention any specific firms for that reason because theres no one thats coming and being a frontrunner here and i think everyone is sniffing around and taking a look and the challenge with private equity is they want a moneymaking business and take it private and dont want to spend this amount of money to bring a company that, again, is till not making a profit and so that is once again the big hurdle and so then all of a sudden you look at, okay, could someone take a big chunk of the company, you know, an outside investor, could they throw their weight around to get things changed without necessarily, you know, buying the whole company . I think thats a possibility but there are so many different ways to play out. I am eager to hear how that Board Meeting goes. Arent we all . I think the board is, too. Thanks, kurt. Yeah. Kurt wagner. Thank you. We have less than 40 minutes left in the trading session here as we begin a new month labor days over. Summers over. Theoretically. Up 23 on the dow right now. Twenty First Century fox reaching a settlement with Gretchen Carlson after accusing roger ailes of Sexual Harassment. Another anchor departing, coming up. Robert frank with a special report, this is really interesting on Sothebys Financial Services and how the business of art lending may be creating a shadow banking system. Coming up. Ur igo . Like hg someme fi jt gh thk yora every seam of you ur igo . Like hg someme me,jt gh ilorfit and your dg. Yora withnie atke m ee rards ilorfit and your stized he otti dg. Yora extra at an affoleceigoe tea e wi aex aagent. soo bod hands. Mber herat as usgri o cusrs. Ea e m er herat as usgri o cusrs. Ea e on t, wa, heretina . M g ndng . On t, wa, heretina . M weren foers. Ly. It ght. Altohingwa, heretina . M amre i nri. Li one. Ght. G g tos vethousand of th. E. Ght. Ok srlrlanfrreal azie. Welcome back. 35 minutes left in the trading session. Shares of barnes noble climbing today after a positive article over the week. Barrons said its badly beaten by amazon. They all sell books. Dont they . Roots. Family ties. Several new businesses built on people intereste