Economy with a specific goal of achieving a substantial improvement in the outlook for the labor market in a context of price stability. Stocks didnt react much to his comments. Trading in a narrow range. But this is probably exactly what the chairman had been hoping for. He stressed volatility has come down in the markets as heny th the markets have gotten a better understanding of what it needs to do. The futures at this point are indicated up for the dow futures and s p futures. Dow futures up by 33 points. S p futures up by 1. 25 points. Nasdaq futures indicated down by half a point. Beyond bernanke, few other events of note. Weekly jobless claims, the philly fed survey and leading economic indicators. And we have Quarterly Results from Morgan Stanley, United Health, verizon and black rock among many others before the bell. It will be keeping us busy this morning. Beyond bernanke. In earnings news beyond bernanke. Were beyond the birthday. Yes, we are. I would have gone with 21, by the way. I want to get back to because i read bernanke, i want to get to how my mind works, not that youre interested, but in a second. Y United Health beating expectations. I read it how he he said, you know, were not locked into an Unemployment Rate of and i thought he was saying, look, if things start going better and we can tell, you know that the economy is going better and at 7 it looks like we need to start pulling back, thats not what he meant. He meant we can get down below 6. 5 and it doesnt mean were going to stop. My understanding was i thought no, no, no. Trying to raise rates. No, hes saying even if we get down to those targets, it still doesnt mean were stopping. He said about 7. About 7 was the phrase. About 7. That he starts stopping or wouldnt mean he would stop . Ill read it again. Ill read it again. Little bit more news and well come back in a second. Everyone still buzzing this morning about cnbcs delivering alpha conference. Number of market moving headlines coming out of the event. I love seeing carl icahn yesterday. Here it is. Mr. Bernanke suggesting the fed might keep Interest Rates near zero long after the jobless rate falls below 6. 5 . Thats not a quote. Thats somebody describing what he said. Im suggesting thwait you were quoting mr. Bernanke himself, the bearded one. I figured that hes, you know, saying what bernanke said. Theyre right, though, he was worried about the Participation Rate. If it falls because of the Participation Rate is where does it say hell stop at 7 . Not in this piece . Ill get you the transcript and then have a debate about it. How about that . This is even worse. It is not what bernanke said. Thats my interpretation. Youve been like wrong on every single thing youve interpreted for the last all the way back when europe didnt matter that monty would do that and the whole country flourished. Well interpret other news. Please dont. Among the headlines yesterday at the delivering alpha conference, nelson peltz raised the pressure on pepsi, arguing the company should buy mondelez for more than 62 billion. And spin off the soft drink business. He wants them to pay between 35 and 38 a share. Pepsi right now doesnt love the deal, okay. And im asking all the shareholders of pepsi and mondelez get your cards and letters out and send them to the board of pepsi and mondelez to back this transaction because, andrew, if the transaction is structured the way we suggest, pepsi, by 2015, our estimates say this stock is 175. It is 80 something today. Pelgts joined a chorus of people who mocked the name mondelez. My fault with irene is two fold. The name mondelez i hate. I think that hurts us in two multiples of pe, okay. And then really . Yeah, oh, it sounds like a disease. Suffering from mondelez. But youre right, her margins are way, way lower than what they should be. And when i irene and i meet again in the very near future thats what well talk about. An interesting meeting. Theyre going to be meeting he said multiple meetings with who does not want to proceed with the deal. Mondelez said they were open to hearing from investors and, of course, they have a meeting set up. He already said what hes going to be telling irene rosenfeld, which probably tells you about how that relationship his not on his favorite list. Though he likes her because she was the one who decided to split kraft the first time around and that was at his behest too. So interestingly, that transaction hasnt really worked. Oddly the kraft business, the slow growing business, thats actually doing terrifically and mondelez, theingi business is not. In other news, dupont rose after i reported that peltz had taken a big stake in the company. Here is what he had to say about that. I learned literally in the past two hours that you have just amassed and are continuing to amass a very big stake in dupont. Can you comment on that . You asked me in the green room about ten minutes ago if you say dupont, what comes to mind. Do you remember what i told you . I said paint. And thats about all we got out of him on that one. The stock did go up about 5 . A yeomans ev fffoeffort. Sometimes in not answering you get an answer. Big volumes. What does big mean . Big, i am told ultimately the position could be a nine figure. That would be ten figure. Big enough to where he has to say yes, i believe he will. I believe were a couple of weeks away from that. I believe one reason he was not in a position or didnt feel comfortable saying anything beyond sort of playing with me there was that they want to disclose the position but they havent built the full position yet. That must make people pleased with you. I give him a lot of credit. He was forth right about the pepsi stuff and got into details on things you didnt necessarily have to. I thought it was fun. And how was your conversation . It was great. Kate and i were talking this morning about our different panels. I led a panel on garrote rreat , if well see the move out of bonds and into stock, which started last month. Thats a big we. Is this the beginning of something or some disagreement on the panel. Greg flemings was saying he thinks people have been caught by surprise by the backup in rates and the swiftness of it. In a month, you had a huge move. He thinks that potentially could continue and the outlook on stocks is being tapered. The idea that somehow did you get the secret hidden meaning that i got on that one . I thought it was ten based on the comments yesterday, then i saw subsequent stories suggesting it was six. And then carl with john paulson. It was a great day. Really. Very good. What do you have to say about dell . Dell shareholders will vote today. Are you sure . There is some question. What i read here i cant believe michael dells 24. 4 billion it could be ajournd quickly without a formal vote to give the board more time to round up support. Investor carl icahn put forward a rival plan and he was there yesterday too. At delivering alpha conference. Things can be done. I mean, this is worse than, you know, where we had these dictatorships. I mean, you look at dell, it reminds you of a dictatorship. They absolutely go scare you. They say things wrong about the company, they got all the lawyers protecting them, and nobody would have got away with it, risk of being modest, would have gotten away with it if i didnt have a spare 3. 5 billion around. Peltz, icahn. Peltz for two or three years. But the lloyd beard is since january. When did that was unveiled at davos, right . Icahn i havent seen with that. I tweeted out, how new is this and priya dos said a few weeks. No, he had he was everybody is wrong today. Youre wrong. Youre wrong. Andrew you should take it from here. He was on the cover of forbes or fortune. We had the writer on the program and he had the beard. When was that . Six months ago, longer . I dont know. I cant remember. Icahn shared his opinions on other investors including jim chanos, who didnt have a beard, and big ackman who cant grow a beard. I like chanos. I think hes a smart guy. I think there is a lot of things he hasnt gotten. Look at some of the stocks he shorted that went way up. I like anybody. Im not going to im not going to criticize chanos. You just did. But he well, with all modesty, i think i have a much better record than he has. You know something, i want to tell you now, youre not going to get me to say bad things about ackman. I like ackman. Ill tell you why. I turned my thinking about him. Anybody like with Reed Hastings and anybody that makes me a quarter of a billion, i like. Peltz and icahn were two of the many newsmakers at yesterdays delivering alpha news conference. Kate kelly joins me with some other highlights. It was almost hard to sort of cherry pick some key points to talk about here, but it was a good lineup and i felt as though there was a range of things from policy issues and legal stuff that was interesting to some investment picks. Some grand prognostications about the stocks and markets discussed too. A number of people, lee cooperman, i was thinking he was on your panel, but he was on davids, but you called him out of the audience. They have essentially tapered their ebullience on equity saying the market could go sideways before regaining steam. Others also predicted a continued and continued backup in rates. Greg fleming saying rates could go up to 4 on the ten year later this year and the market has been really sort of unprepared for the move we have seen already. There was also some talk about asset bubbles and places to short or just to avoid. One notion that hit home with me was Richard Perrys comparison of the japanese credit market it subprime in the u. S. Pre2008, a lemming like bullishness. My words, not his. Based mostly on ratings and little research. Naturally he short the bonds and he thinks theyre likely to crash down to earth. The most famous, john paulson, was there, unveiling a new housing long of all things. He thinks it still has plenty of room to run. Housing starts were up 50 from the trough. Thats what is creating a lot of excitement. However, the peak was 1. 8 million. We estimate you need about 1. 2 million new Single Family homes a year to meet population growth and replacement demand in the u. S. While were up 50 for the lows, were still only half what we believe is the longterm trend. There was plenty of talk on good oldfashioned stocks. Some names that came up yesterday included express scripts, qualcomm, thermofisher scientific, call corp. , sandridge, which he thought had tremendous risk and reward. He could see it doubling within the next 12 months or so or going bankrupt. Discussing his philosophy on what to buy, he said in many ways his approach is an oldfashioned one. In the early 7 0s, the environment was dominated by jpmorgan u. S. Trust, their fo philosophy was they didnt care what they paid in earnings. Brazilian economy is going through difficult and u. S. Difficult is going through difficulty. Things normalize, you make a lot of money being patient. David faber asked him of all your ten picks, what is the greatest risk reward. He said it could double or go to zero if there say problem in commodities. Greg fleming rates prognostication was a longer time frame than i remember. People look at the move when it went up to 2. 75 and that was a bit of a shock. If youre talking about even more drastic shocks, we may not have seen the last of the shocks. That was his point. He wasnt necessarily saying were going to four but he thinks it could create further sort of surprise and that people arent prepared for it. It is funny, so many things there you reminded me of a few things i forgot about too. There were hidden gems. I thought the Richard Perry stuff was interesting. A couple of people tried to get folks going, jacob lew who has been sued by perry over fannie and freddie tried to get the two sides to engage on that. What they said was limited. But perry said i love the commentary about the respect for due process and obeying the law and said i just wish he would read what hes doing. Exactly. Kate, thank you very much. Kate. Kate kelly. When we come back, bbt ceo will talk to us about his banks Quarterly Results and the outlook. Then the newsmakers will keep coming. 6 50, ceo mike jackson. In the next hour, House Majority leader eric cantor. And at 8 00, randy kroszner. Welcome back. U. S. Equity futures indicated higher today. That would be pretty good. Only 18 points yesterday after all was said and done. Shares of nokia trading lower this morning. They have come back a bit. The cell phone makers revenue fell short of expect takings. An anchor is going to tell you about the weather. Becky. Yes, i will. Lets get the National Weather forecast from the weather channels reynolds wolf. Reynolds, good morning. Hey, good morning. Really hot times for you in parts of the northeast. I would expect that trend to last the next couple of days. Better conditions by the time we get to monday. Thats then. This is now. Scatter storms in the rainy and cooley in florida. Warm for you in seattle. Pretty nice there. Go figure. And in terms of your flight delays, well have those for you too. Atlanta could see more today, mainly to the afternoon. Memphis might have backups. New york, for the time being, things look good, just incredibly warm. Okay. Lets go back to you in new york. Okay. Thank you for that. Bbt reporting Quarterly Results earlier this morning. 77 cents per share. Three cents above estimates with revenue above consensus. Joining us now to go through those numbers, kelly king, chairman and ceo of bb t. Good morning to you. Good morning. How are you . Im good, thank you for joining us. We have been talking about bernanke. The steeper yield curve, what is that doing to your business right now . Well, in the very short run it is not having a material impact, just because of the, you know, the short end is still very low. It is impacting the Mortgage Business obviously because refinances are going down because of Mortgage Rates going up. But as the rate yield curve steeps on a permanent, were asset sensitive which means we have more assets to price up than liabilities. So right now it is somewhat muted except with regard to mortgage and longterm it will be positive. When you think about underwriting now, some people say it is a good thing, given that it means there will be more credit available, but put it in context for us, where are we if we put a 1 to 10 scale on things. So going into the great recession, underwriting had gotten to be considerably too liberal. And then obviously everything tightened up pretty dramatically. I would say were probably about halfway back to where we were, which to be honest with you is pretty surprising to me. Ive been doing this for 41 years now and, you know, usually we go in about a tenyear cycle of banker memories from the bad times to the forget all the bad loans and this is coming back fast, to be honest. And im a little concerned that underwriting is loosening up too fast. Give us a sense of regional borrowing. For so long, the flip side was that nobody was borrowing because nobody, you know, the business was so bad. Is business a lot better . I would not say it has gotten a lot better. I think you have to look at a bifur cated market now. The larger businesses are doing well on the bottom line, mostly because they are controlling expenses pretty substantially, and or they have substantial international operations, and so they have diverse fide revenue mix and doing well. If you get to medium and smaller businesses, theyre still struggling. You talk to them, theyre very concerned about the uncertainty coming out of washington, their business, while certainly better, lets be fair, certainly better than two or three years ago, but not robust at all. So not nearly as good in the small end as in the large end. Help us with the fed stress test, bb t failed the test back in march. Where do things stand. When do you talk to them again . Well, so lets be clear for the audience, you know this, but on the actual stress test, we passed with flying colors. We actually had top quarter performance. So we did extremely well on the quantitative side. The fed objected to our capital request based on what they call qualitative issues. Which we are not allowed to discuss. But so were in the process, we made our resubmission, they have 75 days to respond, that means well probably hear system in the first half of august. And then the other thing i want to ask, basel iii, to most, it sounds look a plan, but in terms of what the capital ratios are going to ultimately do to your business and to the regionals at large. Well, the most recent numbers that we got, which i think are relatively final, are actually pretty positive for us. And i think generally for most regionals. So, for example, our basel three adjusted ratio is 9 , which is very, very strong. Versus the kind of minimum of 7 . So we have 2 over, you know what even as is phased in, the expected level would be. So were in a very Strong Capital position. I think most of the regionals will be most of the basel 3 impact son the largest wall street institutions who in many cases had lower capital existing standards, and ill have them to raised to meet the new standards. Kelly king, thank you for joining us, hope to see you in person on set. Thanks, got to say happy birthday to becky. Happy birthday, becky. Thank you very much, kelly. Every guest has to make sure they sign off. Someone said it is your anniversary too. I think it was earlier. A month or two ago, well take what we can get. Now youre trying to deflect. What sign are you . Cancer. Im a crab. Youre a feces, right . Im a pisces. A pisces, not a feces. And im on the cusp. Tech joints reporting results after the bell. As we head to break, some highlights from yesterdays delivering alpha conference. Make no mistake, we will not let the pursuit of International Consistency force us to lower our standards. The United States has demonstrated important Global Leadership in putting in place tough new reforms. The clarity and liability of our laws do not just provide a bull work against danger, they serve as an impetus to a race to the top rather than a race to the bottom. I dont think anyone is too big to indict, too big to jail. There is a moral hazard in the industry if you give people a blank check and tell them they have a get out of jail card because of their size or interconnectedness to the economy, thats a dangerous thing. We should never do it and we dont do it. And to keep our commitments. And weve made a big commitment to americ