Bri a little bit too much of a literary analogy there. Good morning. Its a huge week as becky said, especially for the summer. Well look at the markets. The s p, dow and nasdaq indicating a slight drop, but folks, its early. The beginning of a big week. Well check oil. Oil prices this morning not doing a whole lot as well. We are seeing wti crude come down to 57 cents to 101. 52. All the hard commodities, brent, crude, heating all, they are all slightly lower this morning. The tenyear treasury yield is favorable if you are a borrower. If youre looking to buy a house, the tenyear yield is down but the tenyear note is down 2. 5 . The Mortgage Rates should remain low. Were seeing a slight move higher in euro dollar, 1. 3435. And we are seeing the price of and ounce of gold up 1 to 1304 this week. It will be a big month in geopolitical. I think it stands to note that you guys know with all the stuff going on geo politically, its a good time for companies to come out with something you dont want to see. Just slip it under the cover of night. The United States and United Nations calling for a ceasefire in gaza today. The Israeli Army Says it will only fire in response to attacks. Martin fetcher is joining us this morning with the latest. Martin, good morning. Reporter hi, good morning, guys. So far it looks good here. The ceasefire of a kind is holding. Nobody said this is a ceasefire, but after a sharp phone call yesterday between the american president obama and the israeli Prime MinisterBenjamin Netanyahu calling for a humanitarian ceasefire, since then israel said we will not fire at hamas and gaza. There was one rocket from gaza today to hit israel. Otherwise this is what they call quiet for quiet. Israel says we wont fire if they dont, and hamas said the same thing. But neither has come out to say we accept the longterm ceasefire. It is better that shooting and for the time being this is holding. Although theres been a lot of bad press, very negative reaction to john kerrys trip among the israeli pundits and advisers and some officials high up in in political service, nevertheless, hes back in washington. That cool from president obama and a dress from the Security Council as we wait to see if the markets resume, but the hope is high that this is the end of the fighting and the beginning of serious negotiating. Although theres a ceasefire, the gap between israel and hamas still remains. Its very deep, its very wide. And its very important to both sides. Israel insists that gaza become the demilitarized area, which is very hard for us to see how hamas would ever agree. And whhamas is not going to pul out of israel as well. Thank you for that report, martin. We appreciate it. We have breaking Business News back here at the table. Merger monday starting already. Dollar tree to buy Family Dollar. This has been something that has been in the works for some time as people talk if it comes with a bit or not. The stock is at 74. 50 per share. The 28 premium over Family Dollars Closing Price as of july 25th. That was friday, i believe. That was friday or thursday. In total were talking about consideration or rather and yule sales exceeding 18 billion in total. We have a conversation if you remember this. Karl icahn is in the midst of all of this pushing for Something Like this. The companys ceo is calling this a transformational retail general ray or the. He on the board of Family Dollar or dollar tree . I believe hes on the board of Family Dollar. There were some investors suggesting that maybe walmart should look at a Family Dollar. If they are interested in pushing into Smaller Stores popping up, but again, its been a very difficult area over the last several years because the consumers go to walmart are being pip ched out of the recession. Walmart just said last month even though the jobs picture is turning around, improvement in the jobs market hasnt helped shoppers. I just pulled up on capital iq as you talked about the big owners. This is a big win for karl icahn owning 9. 4 of the shares. So you have triumph management opening 7. 3 . And john paulson and company 5. 7 onnership steak in Family Doctor as well. So the van guard there obviously doesnt have their funds here. John paulson looks to be whipping big. Dollar general is twice the size of Family Dollar. The market cap is 12 billion. Family dollars cap is 6 billion. Dollar tree is twice as big obviously using Family Dollar as 11 decline over the past few years. So. Management is saying, from dollar tree, that this acquisition will extend their reach to lower income customers. And they say strengthen and diversify the store up front. You know who this puts pressure on as well. Walmart is trying to expand into Smaller Stores, not the super sized stores, and with the head of walmarts u. S. Stores just stepping down last week, theres been a lot of questions about the strategy or if shell continue to be smaller with these stores. Jim tweeted out both compa companies here, now youve got this National Footprint. Family dollar is a North Carolina based company, so they have a slight geographic difference. Now you truly have a National Deep discount retailer. The question is whether you think the Family Dollar can find the clip or well talk about it later in the program. He said he was happy with where his son was. Just a quick note, i said earlier each are a stock portion. We can go through the map, but if youre playing at home, ill show you where to go figure that out. Its like you said. Its going to be that would not be a merger story. Cap the price. Both are on the east coast but the dollar Tree Footprint goes a little more let me give you the big holders on dollar tree store, if we can. You talk and ill look this up. We can talk. You want to talk . How are you doing . More about this, good. Why dont we take a look at the things happening. Well continue to watch the shares. Again, this is just being announced. Well keep an eye on it with other news coming up. The middle east is not the only geographical hot spot. Eastern ukraine between this and malaysian airliner. Keir is joining us live from there. Keir . Reporter we just traveled with officials trying to get to the crash site. Prorussian separatists and the Ukrainian Military are fighting now on a road between where they are based and the crash site where we are itself. As we travel up the road, the whole convoy, a large convoy including dutch and israeli investigators, were pulled over with a tense standoff negotiated to try to come up with a ceasefire. We did see mortars come into an agreement in the direction of the crash site. So im not sure where they reached it. So just make sure nothing is lying around. And it is getting more and more difficult, not easier, for the independent investigators to get together and do a thorough job. Garrett, thank you very much. Thats keir simmons joining us from nbc news in ukraine. In the meantime, we are feeling a pressure on the markets. Kathy lee is a managing director there over the weekend when we hear them say, the world is a mess. I am surprised by this. What do you make of it . In terms of the geopolitical risks, russia, ukraine and israel, these are not expected to cause volatility. Most of the impact on oil applies to a global risk attitu attitude. We do have a lot of the risks including the gdp and nsp,uh the same story holds which is we dont really have much in the way of u. S. Policy or u. S. Data drama that is expected. For the most part, that is keeping volatility lower than you would expect in this type of market environment. I think if you look back to history to take a look at what causes these historically small increases of volatility. And they are big events such as fed tasting or Global Financial crisis. And it is not the situation where we are in right now. So while we have a busy week ahead of us, the relative stability we are seeing in markets today indicate that is investors dont expect entirely invisible funds. I just wonder if theres a Tipping Point there, if there is a moment gets up and says, hang on, things are getting more cay yacht snick. I think this is an extremely valid point. In general in terms of the chaos as well as the general complacency in the marketers thats really on the radar and should be for us as well. But i think it will be a couple more weeks of lower volatility. And thats important to remember because we are moving in to the month of august that tronds be quieter for the financial markets. So for the most part, the relative value, earn and carry, waiting for the breakouts to occur in the Fourth Quarter or trading major surgeries to get the best bet. Im almost 50 and half of the s p 500 companies are yielding the porch gees portuguese. Thats a challenge for a lot of money managers. So i think aside from this, theres a lot of gapes we have seen in equities, but take a look at the emerging markets. Also staying with short volatility as well as just looking at various carry bott bottles. Theres general consensus that low volatility will be sustained for a couple more weeks, maybe a couple more months. So theres an opportunity there. All right, kathy, thank you for joining us today. I just added it up. 17 of the s p 500 trade over 4 . There are two that yield over 5 . Hdp and century link, 5. 5 one of the highest in the summer. In other news, an Arbitration Panel in the hague is ordering russia to pay more than 50 billion in damage to the now defunct giant in ukos. You remember the founder, just went to jail. I think he just got out of eight years in prison. And leading up to the financial crisis, goldman mortgage cut a deal with the federal agency that could reach 1. 25 billion. We should also tell you about the latest in the fox news quest for time warner. A number of reports over the weekend saying part of foxs offer, they are ready to offer time warner board representation as part of its bid. Time warner rejected foxs 80 billion cash and stock offer earlier this month. 20th century fox privately, and i heard this, too, but 21st century fox is willing to offer time warner four one guy . No. He offered this in that there are two classes of shares. Right. So you can offer them the entire board, frankly, and it doesnt matter because if he doesnt like what the board is doing, she can say, thank you so much, good luck to you. Its always been there. Listen, the snarks out there argue that every board no, no. This board, in particular. Any company dare i say with this ford. Absolutely. Look, our Parent Company is comcast. You know, i always say my other parent at the New York Times, all of those boards by default, berkshire and hathaway are run by whatever family controls the stock. You have the people with the most integrity in the entire world on a board, but ultimately the final decision is down to the people who own the shares. Thats the way it is. My only point in this is a georgia is in the cop text of 21st century fox, tell time warner well put you on the board. They did that in the cop tentex dow jones. Then they kicked some of them out later. Jim stewart wrote about it, too, in terms of the antitrust implications. I like my papers pink. Got you. Just like your nevermind. Coming up, i dont know where that was going, but an update on the mcdonalds in china after yanking more items off the men you. And the New York Times says to light it up. The paper weighing into the National Debate over legalizes miles per hour. This is up fathinfuriating. And Family Dollar and dollar tree. We have a lot more to talk about coming up on squawk box. Welcome back to squawk box. We have a deal of the morning, dollar tree and Family Dollar, the stocks on the move. And youre looking at the stocks moving. By the way, the total consideration for Family Dollar which is the stock being acquired in this case, youre looking at the stock up 21 in the premarket. The total consideration, 74. 50 in cash and stock. That represents a little over 22 premium as of friday, and we should tell you that trion partners has taken a board seat back in 2011, just putting out a statement right now coming from the companys spokesman to say they have been working to create a value for shareholders and they strongly believe the combination with dollar tree is the best forward and a great outcome for all Company Shareholders by joining Family Dollar, it will become a Stronger Organization to drive significant value for shareholders. Both companies trying to fully support this combination and has entered into voting agreements in support of the merger. Just in our conference a few weeks ago dismayed management and how successful the company had been, but clearly this takeover bid, he was open to it and they have gone with it. Becky found that walmart has, what, 11 just over 11,000. We are the premier leading discount retailer. They are pointing out they have 13,000 stores under this combination. Thats more stores than walmart that has just over 11,000 stores, but if you look at annual sales for this combined new company between dollar tree and fdo would be 18 billion in sales versus 476 billion last rear for walmart. Yes, the Walmart Store is those are massive footprints. Still, have more stores than walmart. And because if you look at what terry my wife works in retail. You look what Terry Lundren has done with retailers. They bullied the retailers. As macys has gotten bigger and t then i hear this from my wife in her work that macys has now the ability to really negotiate pricing on a scale that they never had before. This is the only Department Store left. Jcpenney and the others who have gone along, they have fallen by the waistside. Macys controls the other Department Stores. This one has more stores, and i get it, a lot less in terms of stormg footage basis, but Family Dollar, you know what . You can make the jokes about the Dollar Stores and low margins, but this has been a huge moneymaker for investors. This was a 4 stock in 1995. This deal is being done, 74. 50. If you just bought Family Dollar 20 years ago and put it away, all it has done is bank coin. I have to say one other thing, and jim cramer made this appointment on his program two to three weeks ago, the piggyback trade is one of the best in all time. If you buy in the day after he announces hes in, you dont win the game. Virtually every time something has happened with a nelson peltz project, if you will. So youre saying piggybacking on peltz is not a bad strategy. Its been a success. Jim cramer did the map on his show prior to this transaction and shows that he went to arbys. I dont know how that worked out. Maybe arbys is a great win. But the roast beef sandwiches are something else. Speaking of fast food, the golden arch, mcdonalds, is struggling to get food out in beijing. Eunice yoon has the latest for us. Reporter the u. S. Meat supplier osi is still having problems. In fact, its top brass has arrived in shanghai where they announced the initial findings of the internal ongoing investigation. They said they did in fact find their china operations were subpar. They are going to be making sweeping changes at the operation addinging ins to increase oversight and will put in place a Food Safety Education Program that will cost the company 1. 6 million ch and finally, they are putting in a full review of all their factories in china. This situation in uncertainty created lot of problems for the suppliers customers including mcdonald and young brands that owns kfc, burger king as well as tar bucks. All the companies have either a distance from themselves, severed ties completely or just a suspended meat of osi at their restaurant here in china. Mcdonalds, in particular, said that this meat su jegs created problem for them with the shortage of meat. If you go to mcdonalds today, you would be able to order a filet of fish, french fries, a mcflurry or a coke. But you could not get a big mac or chicken nugget. If you dont like fish, youre out of luck. And the company will continue like this for the next week into early august. Guys . I know here in the United States, the big sellers are the big mac and chicken nuggets. Is that the same normally in a regular period that is the same sort of eating and habits there that come in to look for meat or no . No, people do look for me but generally look for chicken. Almost the entire menu is chicken. People normally would be going into mcdonalds for meat. Not necessarily the filet of fish. So thats going to potentially be a problem for them if they don dont. And tomorrow, earnings report, a fed meeting, new gdp figures and the job report marked into one week. Well see what it means for the bulls. Zblen last weeks winners and losers. Collection is here. 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