There. The cac in france down by close to 1 . In italy the ftse was down by 2. 19 . The dax is off by just ov over. 60 . Also, well check out crude oil prices today. Crude oil after a big rebound you can see is down by 1. 25 . Wti for july, that is a new contract, is now trading at 47. 81. Okay. We have a big top story to talk about this morning. A potential deal, jer m bayer o a deal valued at 62 billion to buy monsanto. Lets talk to bayers ceo about th this, werner baumann, your decision came about how . Monsanto received a private offer from us. It was out in the open and we want to explain to the public and to shareholders what the content of the offer is and why it is so attractive to shareholders. Should we be taking your public stance as one where there are private negotiations are taking place, or should we take you going public to educate the public on what is going on and to put pressure on monsanto . Well, we are early days at this point in time. And we have submitted our offer. We are still waiting for an answer from monsantos board. Off directors, we think the offer is highly attractive and are really looking forward to a constructive discussion with monsantos board of directors going forward. But again, now we have to wait for monsantos board to come back to us and react to our very attractive offer. Can you walk us through how you think about some of the regulatory issues . And i raise this because clearly, for example, syngenta thought a transaction with monsanto would not pass regulatory scrutiny. Of course, they thought the price was too low at that time, too, but to the extent that you could explain why this transaction would go through and perhaps that one wouldnt. Or if you had been on pine on that one, i would love to hear your view. Yes. Thats actually an excellent question. The beauty of this combination is that both businesses are highly complimentary. It is very much a growth story that is behind the combination. The product portfolios compliment each other perfectly. The regional fit is really great. And while there will be at one point or another some discussions with regulators, we dont see this as a major issue based on the assessment we have on the table from our experts and also our advisers. While i cannot comment on how things went with syngenta at the time, we dont see this as a major impediment. At the same time, we also believe that as a company that has a 150 years heritage in the u. S. As a good and strong Corporate Citizen that has more employees in the u. S. Than monsanto, we are a very, very Strong Company to actually comply with monsanto and the great science and people they bring into this combination. Werner, when the street sees a deal they think will get through without questions from regulators or hurdles, you generally see the stock trading at the offer price. But youre offering 122 a share and this morning monsanto is trading at 111 a share. Obviously, traders are thinking there are risks to get this deal done . What do you think they are if its not regulatory risks . Well, we dont see any major risks, to be frank. Our offer is for already addressing the offer that is fully financed, and with it is an offer that does not have a lot of uncertainty. So they are wrong for not bidding it up to 122 . Well, i dont know if the street is wrong, but since this is breaking news, the street will also have to take some time to be educated and to maybe understand the offer. From our perspective, it is high certainty from the bayer shareholders andry are not going to let this how does your tax structure allow you to pay more for a u. S. Company, or does it . Well, to address this very much up front and straightforward, we are in the business of building businesses. We are not in the business of engineering texas. This is something that stands on its own rational so theres no Tech Engineering to help us pray for this transaction. It stands on the own strategic measur measures. Can i ask, what is your Corporate Tax rate and how would that impact the combined Corporate Tax rate . Well, our Corporate Tax rate is about 25 , give or take. The tax rate of monsanto is 26. 5 . So very much alike. And youll see with the small differential, other than thinking about very injeengeniu ideas. The u. S. In st. Louis think its a telling story on how we think about Corporate Citizenship and our ability to view fair taxpayers also to the u. S. And that is about all i can say about that. Thank you. We look forward to seeing how this plays out. We hope you come back as this does play out. So thank you. Many thanks for having me. Thank you. Thanks. Depending on the chinese to sell us bacon, hopefully well have a few seeds left to grow a few crowds if the germans like us. I hope we dont make them mad. Its a fairly busy week on the data front. Look for april, a new home sale is tomorrow. Well get pending home sales on friday. On friday its the second estimate of First Quarter gdp. And then later well get the first estimate on Second Quarter gdp. I i believe it is second on the first. The second must be coming up. As long as we did it this way this time. As for earnings, look for results this week from best game stop and chiccos. Despite the rejection, tribune will share information with gannett. And anthem and cigna have accused each other of regulatory submissions. It is much more difficult for companies not on the same page to get these passed. This is a fascinating story. I did read it. Particularly the area that anthem is suing express scripps. Cigna says dont do that. If you do that, express scripps will scream bloody murder at regulators and you will see this was seen over and over again in multiple transactions. You dont rile things ahead of there were debates on how to deal with netflix when they were trying to buy time warmer cable. Prior to a company they are pushing for you to agree to something now that you might not agree to later. It was a fascinating story to read. Its in the wall street journal. This is for joseph, you will like the way you look. Do we have pictures of the guy . George zimmerman, the founder of the mens wearhouse is plotting his return. He does look nice this morning. Two startups to compete with. A combination of what he has built the last couple of years. There were some people there not that friendly with him. This is george zimmer. Not george zimmerman. I wondered why we were doing that it was an unrelated story making its way in. If you are moving as we go to real news. Well check out the numbers one more time. I thought japan closed higher. On the way in, i thought the european markets were up. A little bit of weakness is working in. The dow is 25 points below s p value. The nasdaq down by 6. On friday all the major markets closed higher. But for the week you still saw the dow down for the week. The s p was slightly higher for the week. Take a look at the bond market because this is where the real action was last week. You saw the tenyear notarize by 14 basis points after the fed minutes were released on wednesday. From the beginning of the week to the end of the week, i went to 4. 8 . Check out what is happening with the dollar, it is down for 2016 against a basket of major currencies. Its up against the euro at 1. 12. The pound is trading at 144. 74. And gold prices are under pressure, 1251. 80 an ounce. Thats a big take in the journ journal. Wait until june, we could be back to 108 on the euro. Thats the big question. The currency issue, not the fed. The traders need to figure out up this, figure this out. The dow coming off the first losing streak since 2014. Joining me to talk about that and where the markets are headed from here, peter boomfar, chief market analyst and cnbc contributor. And peter, well start with you. The markets are ready for a fed rate hike. The skittishness in the markets that we topped out with a month ago is sending a signal maybe they are not. The markets wont be ready f for both bond and stock markets, we are seven year and is a bull market. Thats elevated by fed do you any the markets will decline . I dont think the market is expensive, low rates, low growth, if rates back this up, then the market will be exposed as being somewhat expensive. Im very skeptical that is going to happen. The. What kind of raan impact . When you look at equity evaluation, its really the longterm Interest Rate that sets the discount rate. What is happening at the short end of the curve is not as important as the long year. In the context of where we are, that is not and huge move. But if the tenyear went to 2. 5 to 3 , evaluation is testing the waters here to see if they can get away with a june hike. With 50 odds we are not quite there yet. Peter, you are still talking about the incredibly low historically based Interest Rates. Now, when you compare it to what is happening in europe right now or japan, rates look pretty high. I guess thats the big question, historically the rates have been very low, but relatively to the rest of the globe we look pretty expensive. That creates the other issue of the fed with the dollar rally. But i dont think the fed will get away with a multitude of rate hikes rather than just one more. Look at the context, the economy is growing less than 2 . Earnings are declining and Profit Margins are rolling over. And the markets are expensive. To raise rates in that context, i dont think they can do you think the markets can handle it . Look what happened the first time and we had a hissyfit. The markets have done nothing since. I think of that with children and the way to do that is not to cave. We know the fed has caved every single time so maybe this time they wont. Youll be telling people to get to work in the markets where their opportunity is, especially into the summer months when people tend to sale and go away. I think if the current impasse between the fed and the markets sets up another volatility event and we get another 5 to 10 decline, that would be an interesting time to look. But what about right now, though . The way i look at it the s s p was improving the lower dollar and financial conditions. The last 100 points we are kind of a sugar rally based on the fed keeping up the dubbish rhetoric. And now the fed is taking that back. So the last 100 points is in question and we have already given back 50, 60 points. Would i buy right this second . Probably not. But as we get closer to sort of a better risk reward area that i think we should take a look at that. But right now the market is testing the fed. Well see what happens. I think the emerging markets are more attractive than the u. S. Markets. Is that because i look at this, two, the commodities made bottom because the dollar bottomed for this go around. Well, i think its the dollar that tapped out and the response to the up theres been a recant in oil prices and commodities are trading better, i guess, compared to what they have been. And again, the dollar topping out. So emerging markets dependent on commodities to me are much more attractive than the u. S. Markets and outperform the markets over the next few years. Bill, thank you. The sugar rally was bad because of the sugar high. Now it can kill you and cause cancer. Diabetes. Im worried about this. This is the guy weve had on, anthony fouche, now saying im from the pregnant, but when in a pregnancy, do you get past the point that it doesnt matter . No, they used to think the first trimester but the brain is constantly developing as the baby put you in a bubble. I killed two mosquitoes in the makeup room here. Im a little on edge. And what this guy is saying today is that in the next month or so, he expects that people will be bitten with mosquitoes and will have zika transmissions in the United States. In the continental United States. Most likely in the south. What this article says is mosquitoes range as far north as San Francisco and new york city. And then there is another breed that goes all the way through new england. So, yes. Just in case, anybody else is as freaked out as i am. I wondered about you. I read it this morning with the same concern. Okay. Back to more mundane issues, st. Louis fed president den bullard is speaking this morning on strong jobs, actual inflation and waning global weakness. However, he points out two reasons against a hike. Weak gdp numbers and then inflation expectations. So he doesnt say which view is more correct. But i quickly deduce he gave three to do it and two not to do it. On a ben franklin close that would win. Theres no way these device are winners. You are baiting them, youre tempting them. The fact is they have feet of clay. They will never do it in june. I bet they do it in july. Thats what they are telling us. The markets are still only figuring in 30 chance in june. It is much more likely because of the brexit potential they will hold up until july. A dead heat between Hillary Clinton and trump with just five months to go before the general election. Well break it down when squawk box returns in just a moment. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. The latest nbc news wall street journal poll shows Hillary Clintons vantage over Hillary Clinton has narrowed to just three points within the margin of error. John harwood is joining us with more. John, for those out there who thought this could never be, it sounds like it could. Its pretty remarkable, andrew. Donald trump more rapidly than anyone expected has closed the gap with Hillary Clinton. Look at the numbers for the poll, we show 46 , 43 , in favor of Hillary Clinton. Its a 3 margin of error. The abc news wall street poll was an 11point spread favoring Hillary Clinton in april to just 3 points now. Look at the numbers within the two parties. Despite the stop Trump Movement with republicans, now 86 support among republicans. Hillary clinton is just at 83 support among democrats. That reflects her ongoing struggle with Bernie Sanders, which is getting more and more intense. Bernie sanders over the weekend saying hes supporting the primary opponent of Debbie Wasserman schultz. Donald trump, even though paul ryan and some other leaders have held back their support, donald trump is consolidating republicans and that structurally in our country means a close race, guys. But im trying to figure out, in your heart of hearts, what does Bernie Sanders want . Do you know . Is this like legacy related . Is that really what you think its all about . Because i dont know, at some point i would just think he would look at, okay, am i going to help trump or am i going to help hillary . And if he really is a democrat at all, which he never was before, i understand that, but even if he is one now, i would start to i sound like the clinton machine. I would take a look deep inside and say, what the hell am i doing . Democrats are counting on him eventually doing that. But i think what happens when you get in the campaign, joe, you come to believe your own press clippings and own message. And Bernie Sanders is convinced that this is his moment for sparking that political revolution. It doesnt appear that its going to happen but its very difficult to give that up once you are out and youre getting big crowds and youre getting a lot of people sending in money. His money is getting shorter. So there isnt going to be a whole lot of advertising in california on either side. Hillary clinton is hoping to have a narrow win in california and break the sanders momentum. But when youre in a race, it is very difficult to accept the idea youve lost and are not going to win. Bernie sanders is not going to be the democratic nominee but that hasnt quite soaked in yet. And he says hes going to go all the way through june 7. John, do you think theres a chance that it never soaks in and that things go very badly when they actually get to the Democratic Convention . I doubt it but you cant rule out that possibility. Bernie sanders, while revving up his supporters and going after clinton and complaining about the democratic rules, Bernie Sanders has always said i will work 24 7 in the fall to make sure that donald trump doesnt become president. And i think the baseline assumption of most in the democratic party, and even in the clinton campaign, is at the end of the day hes going to do that. But he cant you cant predict how politicians react under adversity. And i think everybodys going to have a little humility about their ability to predict what is going to happen. I wonder whether the big donors that are supposedly holding back you saw the trump piece yesterday or maybe it was saturday, but a lot of these guys, even some of the republican elites, you just mention the Supreme Court to them and they start thinking how important the election is to them, if you think three our forjustices will put on the court next term, why isnt that registering with these fat cat donors . Well, i think fat cat donors probably care somewhat less about the Supreme Court aspect of politics than social conservatives do. Maybe they want to have their chips in with whoever is president to get the crony capitalism. They care more act tax cuts that rulings on roe v. Wade or gay marriage. In fact, a significant number of donors who are closer to the democrats on that issue. Second amendment, stuff like that. Yeah, more about access. They are buying access. It doesnt matter which side it is. But the real donors to watch at this moment in the campaign are those small donors sending in 27 to Bernie Sanders and turning out for his rallies. Can Hillary Clinton consolidate those people and are they going to produce, reproduce that Obama Coalition so successful