Of february of 2009. Art cashin joins us as well. What is drooeg all this today . Emerging market currencies, and right. So far the s p stopped at about 2020, which is where it held wack on november 16th before it started a pretty significant rally. So well watch that. If we weaken again, if they violate that area, we could be in a little bit of trouble. Were looking at technicals here, but the markets are very nervous. The buyers are if not on strike, certainly on the sidelines. You had drawn 2040 earlier in the week as a line to be watched. This is decisively on the up side. Yep. We went right through it, and youre building a series of lower highs and lower lows, so the technical aspect of the market is not very good at all. Anything the fed is going to do thats going to surprise the market at this point aside from, i guess, not raising. The question traders have been asking all week is if the markets keep acting like this going in, what is the fed going to do . Theyre in a quiet period. They cant communicate with anybody. The fed is going to have an awful decision on its hands. It relates to high yield. Were starting to get a picture of what third avenue, what this particular fund owned. People wonder about pockets of excess risk, right . Excessive risk. Do you believe it will be limited to pockets . Hopefully its an isolated case, but everybody remembers that, and the pain returns when they remember it. So Holiday Season seems to be going fine. We have earnings from adobe last night. They were very positive. Adobe, of course, tracks ecommerce spending and seemed bullish on that. The fed presses the button. What happens around the world to all the Global Markets . Finally, well get many china data tonight, which will set the tone, im sure, for the weekend and honest morning. Monday morning could be very interesting. Art, thanks. Art cashin. As we said wrerl, dow dupont, the other big story today. The Companies Joining in that merger of equals. Worth about 130 billion. David faber talked to the ceos of both of those companies. The markets not cooperating perhaps, but the unveiling of this deal, carl, you know, we first reported on it on tuesday night, wednesday morning. Wednesday a very good day for both stocks, adding as much as 14 billion in combined market value. Not the case today as you see there. Perhaps a bit of disappointnt amongst some of the shareholders in terms of rather than wroe. 1. 282. Also, obviously, a broader down day overall. Dow shareholders i have spoken to have also asked the question that 9 billion of the 15 billion in ebida that this company will generate as dow dupont is coming from dow, so why didnt they, that being dow, get a bigger slice of the overall pie . I asked dow ceo andrew liveris. I think they got a terrific deal based on what i said. The market speaks based on equity value. Its not just ebida. Its quality of ebida and predictability of ebida. As we talk about the three business that is will be created, the Specialty Products group will have a higher multiple. The ag business will have a higher multiple. Our multiple is lower as a dow company, and as a group well have an uplift in multiple, but its the multiple verse the ebida and the quality and the predictability of ebida. Im not telling investors anything they dont know, but when you look at ebida, you have to look at what constitutes the ebida. Why not just saechl help . Why not split down the way you are now in the future . It would have been a lot quicker and conceivably you could have gotten it done in a more expeditious fashion. Why was that not preferred . This deal, you have to understand is the most taxefficient way to put the pieces together properly in no tax. We now create a Specialty Company thats going to have a nice multiple trading against it. Dow puts the right pieces from dupont in to where they belong, and we had the same issue with dupont. A lot of confusion about how do you value all these different pieces. We fix three strategy pieces all at once. Then we have the synergy on top of it. Then we have our growth plans on top of that. All taxefficiently, and that would thats not ease where i to normally could. Finally, this idea of who is going to be running these individual units . I mean, you mentioned youre not necessarily going to be out bound. Do you know what you like your role to be once, lets acall it, once this closes and the 18 to 24 months is taking place. Are you done . No. The executive chairman role suspect very clearly spelled out. Ive got direction to set up materials. The peace of that, we hope to get it done as fast as possible. Look, i have had a tremendous opportunity to be ceo of the dow company. The vision to get us here has been a boarddriven vision, and im happy that once we close it deal, execute and put the plan in place to get the deal launched, then well make the right decision and theres no need for me to be that person. Andrew veris will be executive chairman of the combined dow dupont. Ed green, as ceo, he referred to there, mr. Liveris has been the driving force behind trying to get this deal done. Its not something he really was able to get much traction on when Ellen Coleman was the ceo of dupont, but with the assention of mr. Green taking over for her once she left that office not long ago, it seems that was the first call coming in. Lets see if we can put this together. Mr. Green, of course, as you heard there, much more interested. In fact, he referred earlier in the interview to being interested in the combination when he was a board member and took over as a board member in february of this year. Simply some interesting background there. Overall, of course, as they recovery to an Agriculture Company koreaed here with 19 billion in revenues. Material sciences company, largely dow businesses. 51 billion in revenues, and Specialty Products, another 13 billion in revenues, all of which become their own companies after this deal closes and then another 18 to 24 months pass so they can get those out into the public market. Regulatorywise, it doesnt appear that this is going to be particularly focused on, although you never know. One never knows. We certainly cant say. They dont seem to have enough market power perhaps that the antitrust regulators will really come down hard on them, carl. The market today, though, saying, well, all right. Well see. Lets see if they can prove it and bring those 3 billion or more in synergy and cost synergy numbers and growth synergy numbers to the fore. Back to you. Certainly a little selling on the news as well in there. David, thanks so much. David faber. When we come back, jack ma following in the footsteps of jeff bazos. What his big move means for alibaba, and a big executive leaving yahoo. Kara swisher will tell us whats going on, and well continue to watch this decline in the markets. S p down to 2,026, and the dow still down 200 points. Were back in just a minute. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Get up to 48 monthsw interestfree financing on tempurpedic, save 300 on beautyrest and posturepedic, or choose 300 in free gifts with stearns foster. The triple choice sale ends soon at sleep train. The marketed is in in trouble, but we have tech news to get to as well. Swrak ma is one of the big stories. Alibaba buying the south China Morning post. The New York Times today says trying to polish chinas image for a western audience. What do you make of this . Well, i think they think the coverage of china has been kind of simplistic from the west, and this is a newspaper in somewhat distress, like most of them. The only reason you buy a newspaper is to have influence and impact, and thats what theyre going for here. They didnt pay very much money for it, so i think they just want to have an outlet to give better coverage of china. Thats the news version. Not so nice version is they want impact and influence and want to influence the discussion there. This is a hong kong paper that was already raising eyebrows because its coverage of china. Some critics say had softened. Jack ma essenticertainly has a interest in not ticking off authorities. Is this going to have a broader cultural bakt when it comes to freedom of speech and expression about the chinese government, you think . Im not sure the newspaper is covering itself with glory recently, so its been an important paper for many, many years, but not for many, many years. I think, you know, the survival of paper is a good thing. Obviously its going to be probably, you know, writing about china ink and the interest for alibaba is the china looks great, and well see how they cover it. I dont suspect theyll be doing investigation intuz fraud on alibaba and things like that. At the same time, you know, look, a lot of Big Companies own big newspapers, and, you know, you could question their motive too. Does it move the needle incrementally as to what alibaba may be interested even not just directed toward a western audience, but in a western audience . We shoulding they operate in on the new york stock exchange, and every time theres a small thing that happens in china, say, you know, theres a counterfeiting thing, are they is the western press covering it correctly is probably a concern of theirs because their stock gets affeed every time something gets covered, so i assume they want a smarter press or a more a press that knows the market better to explain things. Sometimes thats a good thing, and sometimes thats going to be a bad thing. I dont think its for entertainment. I dont think theyre trying to become a Media Company in that regard. Theyre doing that in video. Theyre doing that in video for sure. Meantime, on a more serious note, in the wake of the attacks in paris and in california, the fbi director is now calling on Tech Companies to stop by default end to end encryption. Thats a sentiment echoed by president ial candidate Lindsey Graham this morning on squawk box. Take a listen. Heres my advice to our friends at silicon valley. If you cant find an agreement with the fbi director soon as to how we, the government, with a court order can find out whats going on with terrorist communications, congress will do this for you. Kara, were back to the encryption debate. Has it moved although . Yeah. No. The companies Lindsey Graham doesnt know how to turn on a couter, so he doesnt understand the complexity of this issue. I think theres definitely major issues at stake here. I think there is its a little bit more complex than it is to just shut off a back door. It affects consumers. It also affects privacy around consumers, and the Tech Companies have good reason for resisting this on privacy concerns around consumers and protections, and at the same time there are very serious issues. You know, i think that focussing on the tools rather than the terrorists and i get that there is a focus on the tools, but they could use theres so many other ways to communicate and stuff, so its much more complex issues than president ial candidates popping off. I see why the fbi director is doing it to create pressure, but this is a long and complex discussion, and that has to happen with the government and Tech Companies and youre not going to see apple or google comment on this at all. Well, a, why not, and, b, are they going to have some sort of an effort third party effort to influence the conversation about this . Theyve been very, very quiet. Havent even really heard their proxies putting together a coordinated response to why breaking encryption basically its not true. Its not true . Tell me what it is then. I havent heard the coordinated response. Thats not true. There was a Software Group last week or two weeks ago. I was looking into this a couple of weeks ago. They did come out with a response talking about these complicated issues around privacy and Consumer Protection at the same time. You know, tim cook what did had he say . Just that its complicated . Thats not a response. No, that this is this impacts if you remove the ability to encrypt things, you open the door to hackers and all kinds of other things. Yeah, sorry. That doesnt count. We all know that already. Were hearing were hearing yes, it is a very important concern if you are a tech company. Thats not a response. Weve heard it already. Were hearing this constant drumbeat from the other side. I know you wan a response, but theyre not going to respond because to do this in public is really its such a complex topic, and i think tim cook, for example, has been incredibly articulate on this subject, whether you agree with him or t is a different issue. He has been out front of this thing talking about not doing it, very firm about it. The government, for their part, is going to be very firm saying this is, you know that terrorists are using imessage or other ways to get through, and i just think this is a longterm and important debate that literally Lindsey Graham has he can say what he wants, but i think its just to score points and scare people. Its not going to its a complicated issue that has lots of parts, and you cant simply just do, like, turn off, close the back door. Its just not correct from a technological point of view. It creates all kinds of issues if you do it. Yeah. Meanwhile, reuters has a story that turkey has fined twitter relatively small fine, but for what theyre saying the platform failing to reduce terrorist communications on the platform. I just wonder if you think that pressure is going to bleed across the atlantic . I think its going to go all over the place. I mean, its easy its mraming the tools is a good way to do it, and there are some tools being used. I think there have been tons of tools these terrorists have been using for a long, long time, and theres lots of ways to go if they dont if areas are closed off. This is a really difficult and important issue, and to, you know turkey is they can cut that off, and they should respond. These companies should respond. I dont know. Its a getting people to stop using twitter, where do you do it . How do you find them . Im just saying its much more complex than just a two second debate. Finally, kara, as you reported, another yahoo executive, this time its the svp of Advertising Products leaving the company. Marissa mayer talked to us about attracting and keeping talent earlier in the week. Lets listen to that. The separation of the alibaba stake is actually incredibly important in temz of attracting talent. One of the things thats happening right now is because so of our value is driven by alibaba, its hard to correlate some of our Business Results and business successes to our valuation, and that really does matter to key talent, and so we actually think that well be able to get more clarity into the value of our operating business as well as attract better talent because their efforts will be better correlated to our share price. A really Top Executive there, and theres all kinds of issues why he was leaving, but people like this is, you know, not a great not a great sign for yahoo. I dont know if its of course, every now and then quality people leave everywhere, but is there any kind of balancing idea that marissa is doing or even her deputies doing a really good job recruiting at the same time . No. No. I dont think so. I think i get that people leave and go, but i was on a radio show with miguel who had a great piec for forbes a couple of weeks ago. I think he had counted 24 major executives leaving. Thats a lot. You know, talent is at a premium here in silicon valley. Attracting people in, its harder when theres a massive exodus going on, and for most of the stories i hear inside yahoo right now is relative chaos in the management ranks, and so the question is can she get it together and for top managers, but if the top managers are leaving, what top managers do you rely on, and this was this was not a departure, i suspect, that they wanted to have happen . Finally, kara, she did say she would not consider leaving. Do you take her at her word on that . Yeah, i do. Shes a very strongminded person. I think shes got a plan that she has told people about, and i talked to lots of her mentors and friends. Glad to put this one to bed. It never will end, i think. Its a fascinating company on any measure. Kara swiber joining us from out west. Kara, thanks. Up next, the privacy versus security debate may hav hit a turning point. The latest on what may be changing minds and watching the selloff in the markets right now. The dow down just even at 200 points. Ticking a little lower. S p 500 down 1. 2 . Also, well bring you europes close and what it means for the u. S. In just a moment. Steve liesman is back at headquarters. Thanks very much. Our r nbc all america economics survey asking about the issue of terrorism encryption and government monitoring of terrorists is a very interesting result. I want to show you this first graphic here and explain a little bit. We went into the field just before the San Bernardino tragedy. We went back into the field. Originally we asked 800 americans. We went back and we reinterviewed 347 to get very different results. Flying, more concern there. More concern about visiting big cities. Then we asked these two right here about attending big events like concerts, and also going to the shopping mall. Not huge and overwhelming, but some increase in concern. What should the government do about it . When it comes to the issue of are you afraid the government wont go far enough or will go too far in monitoring terrorism, take a look right here. This is july 2013. The height of the revelations from eric snowden. You can see more americans were afraid of the government going too far. More concerned about privacy he here. We were the fist to ask about this issue of should Tech Companies offer or sell thats encrypted devices that the government even cant decode. Take a look here. Yes, the company should sell it. 53 of americans know it goes too far in protecting criminals and terrorists. Just 36 . Guys, we dont know how these results would have changed after San Be