To rescue americans being held by isis. Pentagon officials saying forces stormed a terrorist compound only to find the host aemgs werent there. Were going to have a live report from our nbc colleagues covering this in just a bit. Carl icahn is at it again. The activist investors revealing a nearly 89 stake in hertz, the rental car company. Icahn says he will pressure the company over pricing issues and operational failure and he may even seek a board seat. Shares of hertz plummeted over the last few days after the company withdrew its full year forecast. They are up slightly in after hours trading. As of yesterday, some hedge funds talked about potentially trying to replace current ceo mark viscora, as well. But this seems to be bit of a low hang fruit at this point. As of the last quarter. Late 2013 is when he originally took that stake. We know hertz and we like mark. But it is low hanging free fruit, i guess. The high on the tock is 31. 61, its alltime high. And its at 30. 33 and the low is 1973. So its action weird. But it sells 15 on the day. Im not saying it doesnt. Thats the first one i saw and i was like, it just doesnt look like its been at times that tough. Also in that time period, we completed the mergers and it was a long time coming. Hedge funds like that, but they couldnt really deliver on that merger. And we just saw what happened. Maybe it made some of the you know, came back. Its less than uber, though, if you can believe that. Amazing. Oh, yeah, as far as icahn goes, when he buys in, i think he has no idea about the mechanism of the biotech drugs. Inclone, did he know that was going to work . Motorola, did you know how to go . When do you think that i think he understands this. Dont you think . When is the last time hes been in a rental car . I even understand this. They get a discount, they rent it out. I have to say, ive rented many a rental hertz car this summer. I dont understand how the rental company cannot be sailing through the idance. The experience that i have. I go there, the car is there totally red, if youre a hertz one customer, my name is there. I get it. But when i turn it in no, i do not. Youre the one i own two cars. Lease. But then when i take it back, seriously, you pull in, theres a person there. They look at a couple of things and they hand you something and youre done. Theyve got it down. The stock doesnt look bad to me. It doesnt look that bad to me. Look at the longer term chart. But when you look at it this way lets see it. One week . Up over one week its 4. 5 . Im trying to see some trouble there. But ive got much bigger trouble with 17 billion here, a shakedown. Some of this is about getting money back to shareholders. The buyback. It will be interesting to see when icahn got in. You do see that it was at lower levels in the june july period and has bounced up from this. There is another icahn investment in the news this morning. Thats Dollar General. Dollar general has made its own buy. Saying during the june meeting, you never told Dollar General that there were discussions with another buyer. Levine, the ceo of the combine Family Dollar dollar tree. Can you blake the ceo for wanting to keep their jobs in this scenario . Psychologically, you cant blame them. But in in particular instance, if there was a better bid on the table, clearly he wanted the gig. Custodians of shareholder value. Thats the job. Optimistic for shareholders. But you would argue traditionally and even in his case, there were enough Campaign Things build in that he was going to get paid either way. When are we doing the junior banker thick. You have a guy thats been very concerned about wage growth. And, you know, youd like a minute monthly. Then i see these bankers. They can help the economy. But in my mind, i dont think you would think that this is a positive when junior bankers are making more money. Its not like mcdonalds workers making money. This is bad. That money that theyre getting couldve gone to the people that actually need it. If i have a thought on this, which i will tell you at 6 30. I cant wait for that. I saw the glum look on your face with these guys. Its basically move money around, theyre going to be keeping more. I have a view. It will surprise you. Ooh, thats a tease. Your view at 6 30. Hes a big tease, as you will see. Meanwhile, another corporate victim of a cyber attack. 51 of its stores have reached agreements. A ooups company says theyre not aware of any front. They say it happened in january and august. There are a lot of people who went through u. P. S. Store between january and august. Are you a fedex ex or u. P. S. Guy . Fedex. I like u. P. S. But if i had a choice, one way or the other is the guys are cuter at upstairs. I mean, theyve got brown and the purple and green. Not the guys at u. P. S. , but have you seen them . Yeah. We have a hotty that comes to my building. Ill just say that. He has since been reasunni se assigned. Are you going to tell fred smith that you have this recover. This should be on the men of u. P. S. After the men of squawk box. This mornings developing story, details of the record shattering 17 billion bank of america settlement, kate kelly has been following every twist and turn and shes here this morning to walk us through it. Good morning. Good morning, andrew. Bank of america expected to disclose a settlement with the department of justice of nearly 17 billion over charge eggs that have misled investors about the quality of levels and the issuing and pamging of mortgages to certain buyers. Within the last ten months, jpmorgan paid 13 billion and citigroup paid 7 billion. The same logic worked here, but not until after months of negotiations between tony west and lawyers for bofa. Late last jump, the attorney general eric holder called the banks brian moynihan. The eventual results, a cash penalty of some 9. 6 billion in cash and another 7 billion of so in consumer release office. Much of that will be forfeited ref knew rather than cash and may be tax deductible. But the 9. 6 billion will not be. Todays deal should bring bofa closer to its liabilities with the amount of this settlement roughly 80 billion in regular or regulatory payouts. Its a victory for the Justice Department, which many say has been too slow to punish arrant banks for the financial crisis among other things. Countrywide being a prime example here and where theyll ever consider such moves against when the liability has been clearly drawn. Two questions. One is what did bofa do wrong . Not in terms of the merits of what theyve been accused of in this case, but 234 terms of the negotiations for them to end up with a south side 17 billion fine relative to theyre not good big. So maybe the negotiation was at fault. I was told by if much more than 17, moynahan would need to worry about his job. But its still a heavy phrase. Is there any indication that these types of numbers, 17 billion, 13 billion, the 7 billion that citi played that it somehow play kays the American Consumer . Youre talking about the individual issue. Is there any sense that, you know, the moms and dads out there who are watching this with saying to themselves, oh, they got liz. Yeah, and theres a little by of i dont think they go how much money theyre having to pay as legal disputes is part of that as well as theyre having to address the wrongs in the mortgage market. Unemployment is only recently getting down to more healthy levels. It doesnt feel good. Tell us where the mozilo is going to go. That hasnt been heard yet. This sounds like it would be parallel to the s. E. C. Suit which was settled in 2010. How much did he pay he paid 67. 5 million. But remember, this is a man who earned 500 million. When you think about what bofa pasd for these companies, they paid 2. 5 billion for countrywide in to 308. 50 million for merrill does there ever need to be a big bank deal ever again after what weve seen . Well, i dont know. We were having this discussion with Steve Liesman out at jackson hole and said some of the folks are talking on the sidelines about this. Its a real concern. I dont know what this add men administration or the Justice Department is thinking that aspect of it through. Can we ever attempt another clandestine rescue in a foreign country at this point . Right. I dont think we can probably do that now that weve detailed exactly what we tried to do. They will probably have this right now. This is not thinking about a lot of things. Well, here is one point that optics at this point, either, right . Are we worried about optics . Well, thats yeah. I said this was my last collection. You had to like the speech, right . That was one of the most strident speeches hes made about overseas, right . You would know, but i wouldnt. Can i just make one point . At what the halloween, maybe. And youre in orange today. I think thats a good look at times. No . Can i make one more point about the financial crisis, though . It was six years ago. Okay. I just what can you possibly say now that hadnt been said . I think theres a distinction to be made between jp morgue yapss purchase of wamu and citiba citibanks purchase of worldwide versus bear stearns and was a true bailout. But it means both companies did their civic duty. They would be disinclined to help out the next time someone comes and asks me. Right. Im just saying all night in the bathroom, can you please bail me out here . I say no. Kelly, thank you for joining us. Talking techs this morning, there is a tale of two stocks. Lets start with hewlett packard, joe. Shares falling after hours despite revenues. Earnings were in line. Then we have to talk about apple. Apple shares broke 100 for the First Time Since that stock split and they also hit an alltime high. Good morning to you. Help in the whp piece. They cleared on the revenue side, but the prots, they cant get it together. I think the work at hp is continuing to be a work in progress. Personal Computer Systems are very strong. They have to get over to the areas that create the highest margin, which is Enterprise Growth and software and kind of get away from the desktop. And until they do that, youll see these benign top line and bottom line growth numbers, which is basically what we saw in this quarter. You say until they do that. Do you think theyre on course to do that . It doesnt sound like extra the teejicily thats the way theyre moving. They still have a long way to go to kind of get there, but if they want to do more than just be a Free Cash Flow generator, right, and a stock purchaser and a dividend distributor and grow, theyre going to have to get into expanding, for example, software more than 3 of revenue, which is what it is right now. You can buy a share of hp or share of apple right now, what would you do . Well, we own both stocks. We have two kind of strategies. One is kind of a growth strategy, a core strategy, and we have a dividend strategy. We typically divide the hp shares in a dividend strategy. We own both in both strategies. And where are you on apple now . Is 1100 too much, too little . We talked about there always is a run up in this stock ahead of big announcements. We imagine we will be getting bun of those in a couple of weeks in early september. What kind of product are we actually going to see . Well, we still like the stock in toerms of the new product that tim cook is saying hes got, a whole new product category. Everybody knows, is it the watch, is it the itv . Does that have to help in northwest. Obviously, theres a larger key size without having a whole new question category. The stocks are, what, 15 tins times earnings looking at maybe 111 trade growth. You dont have that much downside on your multiples. But to answer your question, were still buying the stock. Dan, were going to leave the conversation there. We should tell our viewers this morning that our own david faber is sitting down with meg whitman today. Squawk on the street and you do not want to miss that. She loves him. Did that wonderful documentary, one of the first documentaries done on this network. Walmart is the one. Add we head to break and then theres a walmart, too. Check out the shares of sears, clothing numbers coming in from that company, reported a much wider than expected loss. Revenue coming in below estimates. Ceo edly lampert saying Second Quarter performance was unacceptable. Still to come, chinas manufacturing versus, the story of the chinese economy is so big that weve asked our colleagues from squawk box asia for help. Wow. Wow. And i saw susan in makeup. The i get star struck whether i see people that i watch on tv. Yeah, squawk in asia. Susan lee will join us when we return. S. Dsl myth 1. It can help your business save money. False. The truth is when you compare our Fastest Internet to the fastest dsl from the phone company, comcast business gives you more for your money. Why pay more for less . Call today for a low price on speeds up to 150mbps. And find out more about our twoyear price guarantee. Comcast business. Built for business. Welcome back to squawk box. The firm saying a proposed rules for currency will have far flung consequences. The chinese bitcoin players arguing the u. S. Rules are too broad and should only apply to businesses with meaningful connection connections to the region. Who can claim the title of squawk box anchor and we are fortunate to be joined by one of those few. Shes the coanchor of squawk box asia and, susan, im sorry because i started right away by asking you about bernie lowe, what is he like in person, is he really as funny and as nice in person as he is on air. What can you tell me about him . We all sort of we know him. We love him. We love him. Hes fun to work with. Actually, they call him the joe kernen of asia. They do . Yeah. They call me the bernie lo of america. But his hair isnt at good. And i can vouch for that right now. But i can refer him to the right people. Never been on squawk box . This is my first time. Does it get any bigger . Now im switching to where this is the big no. Go ahead. Are you going to tell andrew about bitcoin or were just going to talk about whether china is going to zero growth at this point . Well, actually, china is back. Are you sure . Decree. We need china. You do need china. Its going to grow at 7. 5 this year. I think thats consensus. And you have so much firepower. Theyre spending it, but in targeted measures because they dont want to happen. Asset bubbles happen once again. We saw last year. It would be nice if they were continuing to like our debt at 2 . Is that they do. They own over, what, 2 trillion . They dont need to were about that . No. They need to stay diversified. And i think they like holding that carrot over at the u. S. So as weve been watching less than less growth than weve seen previously, has some of the dislocates and bubbles that weve been worried about, whether its been, you know is that being rated . The credit bubble was the big one that everyone was talking about, we saw lending contract. Thats right. It was at half the rate that the market had expected. So we let the air out a little bit . Yeah. We let the steam out a little bit. We saw that with the pmi numbers last night, we had a threemonth low with hsbc flash numbers. That was kind of expecting given the declining activity that you saw in the previous numbers and also is everybody really anxious we call the shadow banking giant in china . A little anxious. When i talked to some investors, they say take a look at what china is doing now compared to the u. S. In 2008. We dont have a credit event in china. What i worry most about the the thing that scares me most about china, and i hear two things, and that is that social media, 1. 2 billion people now know how the rest of the world operates in terms of private property and free press and the ability to demonstrate and push back against the government. They seem to understand that, you know, if there is total chaos, that wouldnt be good, either. So they sort of go along with the party. When did they actually say look, were not moving fast enough here. We need more of what everybody to deal with. They call this a capitalist economy. By i youve been in the finest hotels in all these places, too, right . Hes actually had a butler at most of these hotels. Not true. So you think that they the Consumer Society from the export society, thats going to be possible . Yeah. So when i ask people, what do you think about the communist party . Can they survive another 50 years . China historians, political watchers, they say the number one goal for the communist part right now is to stay in power. Whether its going after corrupt officials, to look better in the eyes of the 1. 3 billion population, theyre going to do everything they can to stay in control. The one economic event that im watching in this quarter is the alibaba ipo. Is there alibaba fever in china . Its expected theres going to be a lot of wealth coming into the economy because of that deal. Are investors rushing to get a piece of that . I think its going to be split across the region for the institutional investor. Theres as much stock as the american investors. Theres a lot of controversy there, thinking this is a chinese company, why cant we buy in as much as American Consumers . Yes, you know, there is a lot of talk about alibaba. They set up pick up locations in long song starting yesterday. You come and pick it up at these certain locations. Kind of like amazon lockers . Yes. Did you go to the New York Times . Right . We did a global conference in hong kong. And then i helped host thats what i was going to ask you. Bernie, did you irritate bernie as much as did you guys get into it that much . I did not. You ir stated him. No. He watches. So he didnt get no . Did you see the interaction of this . Unfortunately i missed it, but i can tell you that all my female friends in hong kong showed up for andrews book event. Wow. Yeah. Whoa, whoa, whoa. Shes laughing. Yeah, i get it. Thats funny. That is good. Susan, thank you for joining us this morning. Can i on a sign up note, can i just say to joe that he is welcome to come to hong kong any time and we are going to go clubbing. Whats what im talking about. Maybe we can do the same thing you guys did for andrew, which is play the highlight reel of him trying to pronounce all the name of the guests in asia. We could do that with the guests here in the United States or the guy coming up from cinevus. Thank you. Im coming. I will some day. Well see you there. Meanwhile, when we come back on squawk box, the bank is starting to hike salaries of junior employees by at least 20 . But first as we head to break, a look at yesterdays winners and losers at the market. A. Top the list, coal. Good morning and welcome back to squawk box. Bare naked ladies. I love that. Save that to