Retailer tesco to announce it overstated profits by over 400 million. The g20 finance ministers are wrapping up meetings in australia saying they are close to adding an extra 2 trillion to the economy, but the group is warning that europes slowdown remains a major stumbling block. And it is playing out if we take at what is happening with the u. S. Equity futures. Right now the dow futures are down by 28 points below fair value. The s p futures are up by 7 points. Although, andrew, this is an improvement from earlier this morning. Yes, it is. Thank you for that. As joe was telling us, it is a merger monday. Its already shaping up to be a busy monday for deals. Just crossing the tape this morning, germanys merck buying sigmaaldrich. That company is valued at 17 billion. Thats a huge deal. We have both executives from both companies to join us first right here on cnbc and well have that interview at 6 40 a. M. Eastern time. Also, it is official, siemens is buying u. S. Oil field maker dresserrand with shares up 30 over the last three months on takeover speculation. Siemens beat their rival from the swiss pump maker sulzer. Ge was also circling with interest. Joe, you have a little more speculation about a deal in the tech world. Well, you can see both of those Companies Worth more to foreign entities. Aldrich is a crown jewel in u. S. Companies. They made over 200,000 different products. And the things they would make, when you do something called a restriction enzyme to clean the acids at the same place, totally different, hundreds of different places to do it and it will leave sticky things to clone she chemical weaponses, and sigmaaldrich you could count on. Its a Great Company that is going to merck. Not the merck here but the one in germany. And it has to deal with world war i or world war ii where they were founded over there and then they were in germany and then youre talking about different names. The same company but merck they are not a separate drug compa company, but there was a u. S. Unit formed after we got angry at the germans. It was after world war i. After world war i. We were talking about in makeup, i said these companies, i dont think the Obama Administration really understands that youre not going to be able to stop this, but this is a type of inversion. They have to understand because its becoming more and more clear they dont lose any money on that. But we are losing they dont lose, they pay the same amount of money on the sales in the u. S. They still cant take their taxes overseas. They wouldnt come back anyway, but they wont have to do this ridiculous system we have. But the other thing, they will stay with it and build plants away from the hightech environment we have here. So the jobs will continue to be lost. But the guys in washington can only see their hand in front of their face with the actual amount of revenue. The question well ask the executives when we get to 6 40 is when you think about who else is at the table and who else was able to pay more or less or what the issue was. Was it actually the fact that they were foreign allowed them to pay more because of the tax issue or Something Else. Well, merck has a lot of reasons to buy sigmaaldrich. Merck is a Great Company, but we buy Foreign Companies all the time. We do. I just want to separate the issue. I dont believe inversion and this issue are the same issue. You are saying you dont believe that our companies are looking better than others around the table . Im not saying thats the only reason the tax inversion issue is about companies in the u. S. Pretending to live somewhere else. It all relates back to the problem we have with Corporate Tax code. But they are both seeing symptoms of the tax rates being inequitable with the rest of the world. It is capital flowing out. What we have been saying is it is not just the up versions where you care about the unpatriotic businesses that go to change their name. This is more capital leaving the United States because its treated better elsewhere. Its as simple as that. Other places are able to make more money. Theres no disputing it. It doesnt matter where you agree with me or not. Let me make the argument put your nose in front of your face, you think they are going to do this just for tax . The only reason he said im going with pfizer he did. No, there are other reasons. Do the math. Figure it out. Its simple to see why you would even resist the notion thats what is happening when it is so clear. I think its a partial reason. And just like you said, maybe its not the only reason. Its not the only reason but the end result is the same. I think we need to fix the tax plan. The capital is still leaving the country, which is a negative for us as we lose two more companies today because of it. And the longer they drag their feet and pretend they can somehow just put a bandaid on it, im not sure it is good for all of us. Im not sure either of these transactions would happen anywhere. Let me just say, i dont care whether you are not sure, this is whats happening. Thank you for the dogma. Emc is holding talks with dell and hewlettpackard. The data storage maker is exploring options including a sale. The wall street journal reports talks with hp broke down weeks ago. Meantime, dell could explore buying assets rather than all the relative sizes of the two companies. Well look at the markets, we have seen they are indicated lower this morning but nothing that is substantial given the weakness abroad. Futures are now down 32 points. On the dow down 7. On the s p, as far as the walmart facility, we are down to 91. 95. The tenyear note was above 2. 56 now. It backed off in terms of the yield. Well check out the euro versus the dollar, and a pound didnt a little better leading up to the vote and it fell off again. 125 is the stuff. 12. 50 is where we saw this back earlier this year, which would be significant. And global news this morning, microsoft is delaying the launch of the xbox one console in china set for release tomorrow. The company isnt giving a reason but media reports note that china is under investigation by the Chinese Government for suspected antitrust relations related to the windows on raying system. And microsoft office. China lifted a ban on gaming consoles earlier this year. Now to the worlds biggest ipo of all time. There was overwhelming demand for alibabas offering which initially raised nearly 22 billion. Shares surging near 40 in the stocks debut on friday. As a result, the underwriters are joining us from beijing. Eunice yoon . Reporter the market feels like a massive hangover after a party. Some are very proud about the company, but a lot of the market chatter is, okay, now you have the largest ipo, what are you going to do next. And the focus has been about the questions on companies futures. Questions on how to deal with increased competition in the slowdown. A lot of people are saying, now we have seen the Company Issue additional shares. And i spoke to a couple traders who said, thats great but what do they know that we dont know. And its really feeding into those doubts a questions. And today we saw that plant in some of the alibaba stunts acting as a profile. That could be because of a runup in the stock ahead of the ipo, but at the same time its feeding into all the questions about the evaluation of this stock. Eunice yoon, thank you. Alibaba soaring on the first day of trading hitting the intraday high of nearly 100 and closing out the day at 93 per share. Take a look at the stock this morning. Up right now looking at 94. 55. What does the future hold for alibaba . Lets talk to squawk on the street. Reporter we hope in the next 10 to 15 years the world changes because of that. We want to be bigger than walmart. It is not the device. We hope 15 years later this is a company like microsoft, like ibm and walmart that changeshaped the world. At one point we mentioned on friday the alibaba Market Capital was bigger than walmart and ge. Joining me is ronald who was with us on friday to preview the alibaba ipo. The big question is, what did you think of first day trading and more importantly was it a successful ipo or a failed ipo . And you can look at it in both ways given how it ended. Sure. I would say first and foremost it was pretty successful given where it was originally priced and how the day went on. I hear you in terms of where it closely traded up to, close to 100. Buy and large, this is one of the Largest Technology companies out there with the Market Capital 200,000. Its a big ceo that is very successful with a lot of opportunity ahead. But not this price . Well, he clearly could have priced it higher giving the demand. You cover yahoo shares if you want the alibaba ipo, you can buy the company directly and dont need to buy it through yahoo . The benefit of yahoo is they still own 16 of the company. So there will be more sales here Going Forward. Lockup over here. But weve always said that with the ipo, theres a bigger focus on overall operation and theres a lot of things that need to go through to take the next leg up. If you want to play alibaba, would you gubuy . Theres no indication that alibaba is a juggernaut of where they stand in the tech world and the internet world and china, specifically. If we had a choice, because we do now that its a public company, we are talking about a company like facebook. With any new ipo, theres risks up and down but bottom line is hes a phenomenal company and you heard what the founder is talking about, as you read to the next perspective, theres probably minute mall risk. You just said if you had the option you wouldnt play yahoo or alibaba and buy facebook. Why is that . Well, just from what were seeing here with the growth continuing, theres a lot of opportunity with the current businesses as they are within global installs and suggest ed panels. I think the growth here can continue. As a result, when you look at evaluation perspective, facebook is trading near 14 times 2016. A discount to alibaba, not to mention, we are a year and a half to two years since going public. I think i know how to talk to the street and theres not a lot of talk about walmart. They dont do a lot of business in the United States right now and set up an office in Silicon Valley to buy up smaller companies, but theres no infrastructure here. Is there any risk, if you will, to the u. S. Businesses . And what should they be doing if they do have a risk . Well, theres always risks but it is also called competition. Im sure amazon would welcome it. Walmart is trying to get into the ecommerce base for a number of years now. A Larger Company is shown to me in terms of niv. The best thing to come over here, they have launched 11 games for the beginning of whats happened. Quite frankly, im sure those in seattle would welcome more competition to keep everyone on their toes. Thank you, justice. A big debut weekend for apple 2 with the lines out of control here in new york. Close to 5,000 people. Tim cook showed up to greet buyers and the poor staff out there. And then theres this, the new wall street journal report says the launch of the iphone 6 could boost retail sales for this month by as much as a half percent. John fork is joining us now with more, we worry about a lot of the weakness we have seen in retail sales in the past, this absence of people buying things over the phone. I dont know if thats true or not, but thats good or bad for retail sales, does it go up or get redirected . The weather is good and people are coming out in line buying coffee and other stuff after their post iphone glow. So i dont see how it can be such a bad thing, but 10 million is the unit number to watch. Normally at 8 30 eastern after an iphone launch, apple will put out a press release to say how the iphone did over the weekend. Last year the number was 9 million, but they didnt to preorders. So theres kind of this calculus going on, no preorders, 9 million. How long was the line outside the new york store at lunch last year . It was around 1500 deep. This time it was close to 1900 deep. And i kept seeing reports on twitter monitoring this over the weekend, watching the analyst reports. There continued to be lines saturday and sunday. Also, the scalpers were out in force. Many seem to be from china. A few documented cases of people saying they were in line getting these phones for family and friends and then dropping them off with people no doubt funneling these phones to other countries. So i think theres really interesting reason to believe this could be an absolutely huge launch. Maybe over 12 million units. Well know in a couple hours because carriers have the new upgrade plans to latch onto even though they are paying more per month to get the new technology. Theres that. Theres also a growth in largescreen phones where a lot of the growth is. Having played in that market, pent up demand. A lot of people who couldnt get the size of iphone they wanted may have gone to samsung. Now they have an option. The lines show they are getting it. You still have the old iphone, what are you doing . I brought two of the units i have, but im an obsessive smartphone user. I type scripts, elements, email. You have scripts on there . I do. The iphone 6 is too big for me to reach my thumb to the screen. Im the same way. Once you are used to typing one way, its hard to switch. They have a way to make it smaller, right . They do. But when you are on saysi obses you dont like change either. I love change and am into the gadgets. But this time its taking me longer to decide if im going to migrate to the iphone 6. I like the new one. I like the bigger screen because theres so much i use it for. How about the big big . Thats too big, but i like this one. I have the apple 6. People are driving. And thats why they are doing they shouldnt be doing that anyway. What is so important that youre doing this that you have to do everything onehanded . Like driving. I dont when are you doing it with where you need to do it with one hand, what are you doing . Other things going . You just said its hard to get your thumb into its just a habit. All one handed . Yeah, maybe i got the mouse going on the computer with the internet, multiple screens. A lot to work on. Do you try to dictate it . It is better when dictating into the phone. You can see the words appear as youre speaking them whereas before you had to wait and then figure out yeah, it usually gets its own that you have to laugh. I feel like they are getting it better and tweaking it. I like it a lot. Sometimes it seems pretty obvious and they come up with names, proper, and thats what you got . Did you upgrade to ios 8 . No. You probably need to upgrade. I need to do that, too. Thank you, john. Come on down with the devices as quickly as possible. We played with them on friday. They are cool. Much more on this megadeal of the morning. Merck is scoring on a deal with the players coming up next hour. And becky is on the blue carpet kicking off with a big Award Ceremony with the stars out. Becky caught up with a few of them including one bigtime producer. Thats after the break. Welcome back. The tenth annual Clinton Global Initiative opened last night. Becky was there walking the blue carpet along with Madeline Albright and donna karen, lee you dicaprio and seth myers were there among others. Well be live at the Clinton Global Initiative today, but there were a lot there last night. There is a theory out there that americans, in particular, think big business is corrupt. Now, i got the chance to talk to grazer and asked whether his industry, hollywood, is playing some sort of a role in that to make corporations out to be the bad guys. Well, they are an easy choice for conflict. I mean, so you dont want to make the whole corporation bad, but usually in movies or Television Shows you find a way to sing alreadyulasingularize t. According to the study we just rolled out that well have more information on next hour, a third of americans think corporations are evil. This has to have come from the financial crisis and the fallout from that or a surprise meeting as a result of the survey, but well talk more about that. Joe, you made a point in the past, if you look at cartoons out there, they tend to villainize corporations. But they are more likely to be a ceo or a drug member. More likely . Are you going to argue with me, andrew . Yes. Are there more shows that have a villain . Yes, i can show you statistics. Did you see, what was this business, lego and both cars movies . Its not fun the fugitive of the pharmaceutical company. Think about just any villain. You need a villain. But i think the bigger issue is that people can say greed and profit incentive but they are two different things. Two people are free to make their own decision in a transaction. They base things on whether its going to be profitable and that allocates andcapital in a more efficient way. I was surprised because i know americans have a bad taste in their mouth from the financial crisis and blame wall street and blame the big banks. I was surprised to see that so Many Americans still blame big corporations overall. And with to this day i see the media has a, for some reason, parental action to show that side of things. I would go back to the housing crisis as a societything. I see something totally different. People who feel powerless always hate people with power. Whether its a company or anything, thats what creates the drama. So youre talking about ceos or something . Yeah. Im saying, employees often feel powerless. So they hate the government, too . Sure. So they hate the government and corporate. I think youll be surprised that the attitudes between developed nations and developing nations, were going to talk a lot more about this coming up next hour. People that start businesses and employ a lot of people are the object of derision and Something Else. In fact, i think it was one of the guys on youtube that said over in ireland when you see a guy up on a house in a big hill, you say i want to get that guy. Whereas when you come to the United States, you look at that house and say, i want to be that guy. Unfortunately sadly, its changing and shouldnt. Nobody talks about prosperity. What politician uses prosperity in a campaign speech. Romney uses it constantly. And it didnt work. Well talk about this. Next hour well talk about the poll results. Tomorrow, squawk b