General Family Dollar tieup goes through, the combined company would have 20,000 stores in 46 states, a total of about 28 billion in revenue. Now, heres the important part the synergies on this transaction, which contrast to the other one and i know were talking about dollar tree and Dollar General and Family Dollar, its confusing. Dollar, dollar, dollar. Dollar, dollar, dollar. Heres whats happening. On the Dollar GeneralDollar General tree. On the Dollar General proposal, they would have 550 million to 600 million in synergies annually. That would happen three years after the close. That is in contrast to what was 300 million in synergies on the other dollar tree deal. Now, the dollar tree is a much Smaller Company than Dollar General, and thats one of the reasons theyre not able to have the type of synergies. A lot of analysts had wanted Dollar General to come forward with this deal. Were surprised that they havent. Apparently, if you look through some of the filings on the original transaction with dollar tree and i apologize, the dollar tree, Dollar General thing can confuse the heck out of you, wha happened is Family Dollar went to Dollar General and said lets have a deal. They said no repeatedly, according to filings, and now have emerged with something here. Two other quick points to make. Rick dreeling, who is the ceo of Dollar General, joe, announced he was going to retire. This fellow here. Richard dreiling said he would retire and as part of the transaction would stay on through 2016. That is actually something, one of the reasons people thought maybe he wasnt going to make an offer. Then one last piece, because its always a social issue. Howard levine runs Family Dollar. He was going to take a role in the transaction with dollar tree, and i know its hard to remember all of the names here. People had thought, well, that explains a little bit of it. If the Dollar General is not necessarily, at least in this proposal, offering him a role. So, theres always these issues, the social issues. Does the ceo, the old ceo get a new job in this . Are they going to close headquarters . Are they going to close stores . In this particular transaction, a lot more stores could be closed because theres a lot more overlap and who knows what would happen to Howard Levine. Anyway, that is the transaction thats on the table that sources are telling us has been made and we do expect that that will cross the tape a little later and well have more details for you as they come. Joseph, have i confused you to no end . No, i had already studied up on the whole deal, because didnt you break it first in the New York Times . No, it was right here. No right here on cnbc. But it will still be i imagine theyll be citing cnbc in just a minute. These guys go to graduate school, they get an mba from harvard, these investment bankers. Right. So, some guy thought, dollar tree. He looked around for another dollar he brought this to management and they said, you know, we hadnt thats a pretty good how do you think they figured this one out . How did they come up with this . Doesnt this seem kind of theyre all named dollar, right . Theres a lot of bankers in here. Im sure. Citigroup. But its so you know, did someone really have to think about this and come up with this . Werent you thinking maybe they would happen, that the other dollar store would come in here and people thought they might, but actually, the expectation was they wouldnt. Nelson peltz is the one who actually bought into Family Dollar. He was the smart guy. Wheres icahn . Hes somewhere Family Dollar as well. That levine guys been on, because when i saw him, i remembered him because of the head. Yes. There he is. No, thats not him. Im sorry. Theres nelson peltz. But you said did anyone else think of this. It actually started to some degree with john paulsens firm, actually had gone to Family Dollar and said you need to sell yourself and they hired some bankers and there you have it. We will see where this goes. When you were by the way, i dont think well leave from vacation. I totally agree. I hadnt shaved, i was great. You hadnt shaved. Actually, my wife whether i could come back with the sort of pseudo scruffy beard, but we thought that would be three hours youre going to need that beard for when billions gets closer to premiering. You will feel very hollywood. I mean, youre going to need the coolness of the will i wear my tie like that . A little open . Also, when you get seniority like that . See, when i got back, you werent here. Right. Because i couldnt come back after two weeks vacation and get right into the redistribution, the buzz saw that we go through every day. You dont have the seniority to ask for me not in fact, beckys gone today. But its just the two of us. I mean, thats like, talk about back into the frying pan, into the fire. Are we going to be were going to have to hug it out. Youre right. Two weeks without becky, i think. Yeah, yeah. All right. There you go. So, its just two of us. Weve got to play that song at some point. Just the two of us. I missed you. I did. I really did. After a week . I did. I was telling my wife this on wednesday. See, after two weeks, i think you initially miss someone, then you dont miss them. No, its good to see you. Im kidding. Were going to have you know, its august. Thats the only thing. Its tough in august. Yep. You know, not a whole lot of people around good stuff in the papers. I love the junk bond story, because once again, i feel bad for retail investors. Theyre selling the junk bonds just as all the smart money is in there grabbing the yield again. So i dont know. Did you see the 10year when you were gone . Did you see this 10year . Ive seen where the 10year its like 2. 30 or something. And then the german 10year is under 1 right now. Were the same as these horrific european country theyre never going to pay their money back. Were the same as they are. Youre complaining . No. I saw mark grant had something out today. Marks been saying its going to go under 2 . He says heres why treasury yields will keep on falling. Dont bet against the u. S. Bond market rally. Conflicts in the ukraine and middle east, recordlow bonds in europe have unleashed the stampede into treasuries. We dont even have to have him on. I can just read this. Knocking benchmark yields to 2. 40 . They ended at 2. 34 on friday. This ukraine stuff, we talked about it a lot last week and you missed some of my literary jokes. You know that convoy they were sending in, all just aid . I said and they had this beautiful, big sculpture of a horse that they also had given. Putin had it made and given to the ukraine to put in like the square in one of the main cities, just as a gift of theres nothing in it or anything. Just a beautiful but then, lo and behold yeah. You know, treasury and yield, its totally different. Meanwhile, they destroyed the entire convoy were up 80 points on friday or something. Next thing you know, we hear from ukraine that they any idea that maybe ukraine still had harbored some feelings for russia that maybe we do want to go back . I mean, i dont think ukraine likes russia at all. To destroy a convoy . People were driving the convoy. I mean, there were casualties and everything, right . I mean, this is a bad situation, getting worse. Thats probably right. The other ones theres a lot of other flash points, things going on in this country. What do you make of this ferguson situation . I dont even know what to make of it. I think we need theres been a push for cameras on, like mounted somewhere on like policemen or something. That way, policemen are on their best behavior, other people that are there see the camera, theyre on their best behavior. We know exactly what happened. So. I think wed be in much better shape. We might be. But i read a reason not to do that. I cant remember police dont want all i know is, you know, the president s handicap has been i mean, hes getting it i think it went from a 14 down to an 11 or so. Short game getting going back to work for a couple days, right . A low blow. Im sorry. Its okay. President s need vacations, especially in a world like this. Anyway, this retail deal is any indication there will be no shortage of market excitement this week. U. S. Equity futures. This to me looks like, you know, a snapback from what we saw on friday where we were up nicely, 50 or 60 points. Next i know, i look, we were down 180. It wasnt on the wires right away what had happened. The dows coming off its best weekly gain in more than a month. Investors are likely set to focus on the fed in the coming days because the annual gathering of Central Bank Leaders in jackson hole, wyoming. And jackson hole in august, you wouldnt have to offer too many invitations to too many people to get out there. Have you been there in the summer . I have been there in the summer. Its fantastic. Its spectacular, right . And its no humidity. Although, how great what a week for weather. I know, weather was great. You know, this whole Global Warming world. It was like 50 in the morning, wasnt it . And it got up to like 75 was the max . What happened to the 80s and 90s and i dont know. Theyre on hold . Im happy. You know why its been so cool . Global warming. Anyway, both fed chair janet yellen and ecb president mario draghi are going to speak there, and yellen is expected to focus on unemployment and wage growth. Draghis address is likely to be interesting in the wake of last weeks poor european data. Weve been discussing, geopolitics is very important to the markets right now and ukraine, kiev says its Army Advanced into an eastern city yesterday that had been controlled by rebel forces. Meantime, a russian aid convoy bound for Eastern Europe continues to be held with that big horse at the border awaiting clearance. Its a sculpture. Its a gift. Well have a live report from ukraine in just a couple minutes. And in iraq, trying to take back that big dam. Did you see that theyre worried . Did you see your people, the left, theyre worried about were going to go beyond just helping, humanitarian things, and that its going to be, i dont know, involve ourselves in iraq again . But we can say that getting this dam back in friendly hands is important. Yeah. If they blew up this dam, it would, like, there would be 8 feet of water in mosul, and it would reach baghdad. So, its seen as it could be used as a weapon of mass destruction just by blowing up the dam. So, thats the way were getting around. In iraq, more than a dozen u. S. Air strikes carried out in the last 24 hours. Whats happening in europe with this friendly action were seeing today, i figure its pretty good, and it is. Wow thats a pretty big move in germany. Well take a 1. 4 , over 4 in france, where theyre down to 22 right now. If you want an espresso, its going to be a 40 bill. We should go over there. Well, its a little cheaper. You saw that the euro 1. 33 , better than 1. 39 . Then theres the asian markets. Not much happening at this point. Youre doing this again . Youre not doing this again. Oh, we have corporate news, but we should tell you, we give you the news first and then the news crosses the wire. Cnbc, squawk box breaks news and then let me see. We give you the news so you know what that is. Dollar general with that proposal to buy Family Dollar, the transaction, the proposal worth at least 78. 50 per share. Thats 99. 7 billion in total, as we discussed just in the past couple months. Lets get you through some corporate news. Credit suisse reportedly played a role in the Espirito Santo collapse. The wall street journal reports they helped put together billions in securities issued by offshore Investment Vehicles of banco espirito. They were then sold to the portuguese banks retail customers. Also, u. S. Banks are reportedly thinking about moving some operations to ireland. Did you see this story . If the uk exits the eu. The ft says bank of america, citigroup and Morgan Stanley all are preparing preliminary plans. Ireland said to be an attractive location for some european businesses because the banks can move out of the uk because the tax issues, also some other things. So, there you have it. By the way, did you see, this is actually the story i wanted to talk about. Did you see this . Fed blow to global banks over living wills . I remember about a week and a half ago, all the banks found out that their living wills were not good enough, and one of the reasons was because all of them expected to be able to get to whats called the discount window, which we know so well in the last financial crisis was so important. Now the fed is saying no discount window, you cant touch it, and a lot of people suggesting that is an unrealistic thing in the context of a financial crisis. What normally happens, you go to the discount window. My eyes are glazing over i can see that. Its a little like clockwork orange i was watching tennis im starved for content but it was in cincinnati. The sponsor of the tournament is a mutual i think its a mutual but theyve got cris collinsworth, our great nbc announcer on sunday night football. So, there are people talking, like, about something you were just saying, and he walks in and says, listen, this financial gobbledygook, i can explain what hes saying. Come into my office. And theres an office set up behind and he explains it simply. I want you know, hes an nbc guy. I want him maybe next time you do another discount window living will discount window, Family Dollar, dollar tree, Dollar General you said you think its discussing that corporations are seen as people with that Horrible Supreme Court decision that you what is that, Citizens United that you have written about and tried to so, but living wills, corporations have living wills like people . In the post financial crisis world, they now have living wills. Do you think its okay if these corporations are seen as people, they can contribute to financial campaigns and everything . You want to go back on vacation . Not yet. Not yet. Its only 15 minutes in. Lets talk here. Heightened tension oh, you know whos coming up . Half of the pair of boris and natasha. Just boris. Heightened tension in ukraine and iraq pressuring the dollar, sending investors to other safe haven currencies. Like the swiss, the franc and the yen. Boris is managing director. Hes been back ten minutes. Youre torturing him already. Because i have so much trouble saying boris. It sounds like i introduced you with more importance. I cant say boris schlasberg very well. Youve had a lot of practice. I just think because, i just think your first name, boris, gives you credibility on all these russian and ukrainian issues, boris. Do you understand whats going on . I mean, i think putin at this point sort of is afraid to go too far. Its very strange, this up three, back two, up three. Is eventually he just moving in . I mean, is that what we should be afraid of . Actually, i think you have it dead right. He is afraid to just kind of go all in at this point. Hed love to be able to move in, but he knows that the economic repercussions are kind of very severe, and theyre already teetering on the edge of recession here and i think hes getting a lot of pressure from the oligarchs to really not accelerate extensions between ukraine and russia. Youre right, i think ultimately hed love to be able to have full geopolitical control over ukraine, but he cant do it with full military force at this point, because obviously, the recoil is going to be horrible. Meantime, all of this i think is creating a pretty negative over the european economy, especially with the germans who are just have had a lot of Economic Activity frozen with russia as a result of this, and thats going to be a big problem for the second half of the year. Yeah, i keep seeing this brought up, that even with our consumers here, that theres just a general unease, a feeling of uneasiness given mostly about russia in the ukraine. I mean, i guess thats i mean, we are talking about for the last, if youre looking for one other superpower, its called russia, right . I guess china, too, but it gets dangerous. We get in dangerous ground here, and its important, because it eventually will affect our economy here. If europe slows and if, you know, emerging markets and everything else. So, its something that weve been a little bit complacent about as the market has continued to trade higher with the troops amassing right on, you know, right on the border. And some people think that his longterm goal is mother russia growing and getting bolder on the world stage. Right . Thats down the road, right . If you just think of him as a czar, youll get a very good idea of where i think he wants to go. He clearly wants to build an empire. And yes, long term, i think those are all big issues. But in the short term, youre right, the markets are basically assuming that reason will prevail, that economic interest is going to trump Political Considerations for the time being and that theyre somehow going to have a cold peace going into the wintertime and that will keep everything afloat for the time being. Yeah, it is just its like a scab, you know, on the Global Economic scene and we keep pulling it all the time, but so far, it hasnt turned into a major wound. You probably didnt watch that much i dont watch that much when im out either, but do you know how tall putin is, andrew and boris . Hes a tall man. Hes 57. Yeah, hes short. I always thought he was taller. Like tom cruise . Did you see my tweets where i treated shirtless shots of me i did see that. Not where its safe, either. Is that what you said . No, last week we were showing sidebysides you and putin. Me and putin. Wow. Because i say that hes people that do that are compensating for something. Hes compensating for his height. How do your abs compare . I photoshopped those a little bit. You can do no, hes much