You will, for the markets. Tenyear note yield, as we often do at this time, below 2. 6. I like to compare, france 1. 71. Italy 2. 749. Oil prices of course have become a key. Wti and brent, you can see it, down on wti. Brent is higher. By a nice 48 cents. Lets get to our road map this morning. Starts with m a. Shares of covidien up around 30 , irish drugmaker agreed to be acquired by what was or will no longer be u. S. Based medtronic. Price tag 43 billion. Markets under pressure and as you saw oil is remaining volatile as violence and tensions in iraq continue to escalate. Were going to go live on the ground and get the latest from the region. Target confirming it experienced problems with computerized checkout systems but breathe easy, the issues not security related. Lets start off with m a. Weve got plenty of. The biggest of the deals is involve two medical devicemakers, medtronic agreeing to acquire irelandbased covidien for 43 billion. Values covidien 93. 20 a share. There was no word of this out there. So you have an unadjusted stock price of whatever it was friday. The newly combined company will base itself in ireland, of course, it is yet another tax inversion following names that ive been talking about for quite some time, namely, a lot of the m a coming. This is one of many today. And inversions continue. In this case, as in so many, jim, tax inversions, changing their tax jurisdiction, done as importantly, if not more so in this case, for the ability to repatriate the cash thats a crewing over seas and will back to the u. S. Without suffering significant tax penalties or any in that way. Talking about investing, reinvesting here as much as, what 10 billion over 10 years in r d at medtronic. But its a tax inversion, make no mistake. Yes, theres a lot of strategic parts of this deal that seem be embraced by the market, theyre having a Conference Call talking about that. But its still about taxes. Well, david, im not sure if youre familiar with 20 lower hatch street in dublin, but that turns out to be where covidien is located. See, i thought it was located in mansfield, massachusetts, had the ceo on mad money it seemed like a massachusetts company. But i think that it turns out that its on lower hatch street. Active street. Yeah. Yeah. Not far from there youll find any number of other our major pharmaceutical companies. With with the cleveland indians, the cavaliers and the browns, eaton located at phitz william place. Its another company in dublin. They had their annual meet agent four seasons hotel. I stayed there while visiting the guinness factory. These are new things to me. Theres a medical device tax from obama, healthcare. Looks like being on 20 lower hatch treat street you may not have to pay that. Is that true . What people are buzzing about. If we were to go, ive got several fabulous places we could visit, we could visit trinitying look at the book of kels. We could do a lot. I would love to go to ireland with you. Many major american companies. And stop in on many of the managements, because i know theyll all be there. They have to be. They have annual meeting theres. About the only time theyre there. I wish it were facetious, but mansfield is where covidien is located. But its actually located on 20 lower hatch street. Listen, you we can discuss this to were blue in the face in terms whether companies should be allowed to do this. Of course they are. Right. Their responsibility is to their employees, and their shareholders and customers. Right. Theyre not necessarily responsible to be patriotic citizens of the United States. No. And have to pay taxes. If they can find a tax regime, because ours is not competitive as the rest of the world, why wouldnt they . That will continue to happen until we change rule or come up with comprehensive tax reform that makes it, us, more competitive, particularly as it relates to profits earned outside the u. S. The irs has a set of rules that you study i did a lot of Corporate Tax work in school and then after. The irs actually encourages you to do everything you can legally to v avoid tax, not evade tax. But you have every right to avoid tax. These companies are doing exactly what the irs says. Listen, minimize tax, you should absolutely do it. So thats what theyre doing. Its funny, because i had liked covidien, they bought theyve got great devices that have u. S. Surgical, of course everybody once a part of tyco, added a lot to it. Then that tyco bermuda base went from bermuda to im, in terms of jurisdiction and covidien. When you look at breakup of tyco, tyco, had a division called amp, a division in pennsylvania. I thought amp was located in pennsylvania. Thats wrong. Its switzerland. A town that apparently we bombed by mistake in world war ii. But i dont know, you see, im not sure exactly maybe that was a safe zone. I, again, this is an amazing thing. If youre in washington and watching the show, youd be saying, what . Weve got to stop this immediately. The irs is saying its fine. But in the end, this was not somewhat driven by the idea that covidien has a terrific hospital business, you get a hold of hospitals. Under aca, this is going to been more important, have a broader array and suite of products, so the devicemaker with all of the things that covidien makes, Surgical Supplies and like. Thats why striker has to buy. Youve explained this, as long as new companies, acquiring company, 20 . Of the overall. That will be the case. Covidien shareholders loan 23 . Johnson johnson can they do something . 30 . They may be too big to buy smith and nephew, if you structure a deal, you can get around tax avoidance, perfectly legal. This is happening and its going to cost the treasury a huge amount of money versus repatriation. Ive got a list of Fine Companies that i thought were american companies. But for instance, david, Chicago Bridge and iron, they dont make bridges, they dont make iron, theyre not located in chicago. The old punch line was they were in houston. No theyre in the hague. How great for floor, floors watching and saying we ought to go buy cbi, they just missed the quart. A famous city that has 36,000 people, minneapolis, minnesotabased pent air. And the list goes on and on. Jim, it will continue to grow because the idea of the window closing is motivating more companies to try to do it and its a competitive advantage for competitors if they have it and others dont. Right. I want to get talking about oil. Heres stock futures falling, oil prices up a bit, you saw brent up, of course, escalating violence in iraq the key reason. Cnbcs chief International Correspondent, Michelle Carusocabrera in Northern Iraq and brings us the latest this morning. Michelle . David, yeah, just about 100 miles west of here, another city, tally far taken by sunni insurgent rebels. Another town that has fallen even as the Iraqi Government starts to fight back. The other headline is that the u. S. And iran in vienna, supposed to be on opposite sides of the table when it comes to nuclear talks, now going to be discussing what should be done relative to the sunni insurgents because they both consider the sunnis and whats happening here a problem and the rebels are their common enemy. Strange combination of bedfellows occurring because of the situation in iraq. A lot of people are asking whether or not we are facing the impending destruction of iraq, as we know it. The disintegration, so to speak. I want to show you i kurdish newspaper, running this map which shows exactly that. They have broken up iraq into three different pieces. Not coincidentally they have shown kurdistan to be bigger than what it is now. Theyve added two or three provinces from what i can tell. A lot of belief theres so much frustration with baghdad, that could be what happens as a result. Other story out today, the insurgents, isis, islamic from syria and iraq, turns out, according to the guardian of the united kingdom, they are extremely wealthy, worth 1. 5 billion. The guardian quotes, intelligence sources which say they have found early last week more than 100 zip drives from an insurgents home which shows financial status. So not only did they steal half a billion from the central bank of mosul last week, but apparently theyve also been selling oil from syria. Sometimes back to the Syrian Government because the Syrian Government doesnt control that part of syria anymore. Theyve been selling oil at a discount, but certainly its been bringing in a lot of money. A very, very wealthy terrorist organization is what the central Iraqi Government is up against along with United States as well. Back to you. Thank you. David. Whats the approach here . Michelle carusocabrera, reporting from Northern Iraq. Heres the next thing. Youre going to start hearing that schlumberger, bakerhughes, weatherford, another company that is located in texas, tends to be located overseas, youre going to hear number cuts, i believe, because of iraq. Bp, royal dutch, exxon, spent a lot of money in iraq, i expect a number of cuts in that company. If insurgents continue, what will happen is people from the workers will leave the infrastructure, it will be too dangerous, these are be targeted. Be aware those companies could get hit, though theyre booming in other parts of the world. Schlumberger, baker hughes, weather ford, bp, exxon, question marks now that they invest sod much in iraq. The last key economic report from the opening bell. James woolsey with his take on the crisis in iraq. A lot more squawk on the street. Were just gets started at post 9. I bought a car, over and tells you, and youre like. A good deal or not. Thats what led up to us looking at truecar. Com. And with truecar. Com, theres no buyers remorse. Save time, save money, and never overpay. Visit truecar. Com first day of my life by bright eyes youre not just looking for a house. Youre looking for a place for your life to happen. They challenge us. They take us to worlds full of heroes and titans. For respawn, building the best Interactive Entertainment begins with the cloud. This is titanfall. The first multiplayer game for xbox one built and run on microsoft azure. Letting gamers around the world interact in ways they never thought possible. This cloud turns data into excitement. This is the microsoft cloud. Welcome back to squawk b box. May industrial hitting wires up. 6 on industrial production. That is much better than the better revised, down. 3 originally released as down. 6. Utilization rates moved up to 79. 1 from 78. 9. We continue to see rather strong moves on the utilization side. Of course, thats may data. June empire came in over 19, that was a fouryear best. And if you looked at the always two months in arrears april tick data, it was a little negative when you had shortterm securities. But when you looked at entire picture, it did improve to some extent. David faber, back to you. Thank you, rick santelli. Its a merger monday, no doubt. Maybe a merger tuesday or wednesday. Were going to get more deals. Lets try to get to all of them. We spent a good deal of time talking about tax inversions. An issue far beyond that of merger and acquisitions relating to medtronic and covidien but they done want to make it that story, theyre talking about strategy. Time warner telecom, bought by level 3. Ten bucks a share in cash, about worth 40. 86 a share. There you can see, Time Warner Telecom shares moving up, as is the stock of the inquirer. Not a big move. No. More typical than not of what weve seen in the market when it comes to announcement of deals talking about net present value, 2. 2 billion. 240 million of total run rate synergies, so thats what gets people excited. Right. Level 3 had been left for dead company. Jim crow built the company, got overvalued. On the verge of bankruptcy. Fiber we know there are other companies. It was 360. So many. The company fell on hard times but never lost its edge as being a company a backbone for the internet. And it had been considered a backup for content delivery systems. The Companies Made a comeback. Brilliant move by lvl3, theyve expanded their ability, maybe able to go to netflix and say we can handle a lot of your traffic because were fiber. A great investment level 3. Theyre only paying 12. 8 times 2014 ebida versus what tyson paid for hillshire. Totally different businesses, i make that point to show how incredibly high that multiple was. They say its 9. 5, if you estimate run rate synergies. So we take that out, were only paying 9. 5 years. Level 3 has to be bought. Its become a core holding for people who want to be able to play the increasing need to be able to have video on your video on your pc. Right. Terrific. Good day for core x management, significant owners of both. I didnt know that. Which one do you want to talk about. Williams department aek ses mid stream neithers. Telling you that they had the absolute best. Chesapeake, by the way, spinoff. Mike came on mad money and said weird the Fastest Growing pipeline company. Williams is buying rest of access mid stream partners. Williams will go up because you can accelerate the earnings of williams and access mid stream. An amazing stock. Really has. Had a chart for that, the companys the best performer, ive been recommending it consistently, the Fastest Growing mlp. Now mike has completed the mission of trying to bring out a lot of value. The ceo the best in the pipeline business. Congratulations. This is a great deal. 6 billion in character will qu qu williams owns 100 of the partner. Fabulous. A big deal. We know how cheap debt is. Companies are using it, not to take it on Balance Sheet and increase leverage, to buy back stock, but buy other asset wlz it be medtronic, level 3 or in this case williams. The sanodisk deal is interesting. They bought fio, it was at 32 in 2012. They had an emc killer. Turns out it wasnt killing anybody. A popular with our viewers, a popular situation, futsionio, the stock was at nine, now an 11. 25 deal. I think theyve given up. You know, those who played in this game thought fusionio was the next emc, it turned out to be the next nothing. Sandisk is on fire. Theyve done a lot of things right and its another very good deal by sandisk. Does m a do all the deals have the power to turn this market, or still going to be more about geopolitical fears. If 3. 6 million gets cut down to 2. 6 million and chaos worldwide spreads well be looking at earnings versus that. Heres a funny one, take a look at the absolute the intersection of all of this. Whetherfords business 33, comes from iraq. At the same time weatherford, its a texasbased Company Located at 2000 st. James place in houston. No, its in geneva. So weatherford on the weakness, it will be weak, might be scooped up pay company that wanted to be located in geneva. Thats one to watch. There you go. If that gets a takeover bid. United all of the themes. Global tension and a swiss address might produce 28 bid for weatherford. More from jim, including mad dash for month as we count down thwarts the opening bell. A look at futures. More squawk on the street. 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And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards, even cash back. And my rewards points wont expire. So you can make owning a business even more rewarding. Ink from chase. So you can. Six minutes before the opening bell. Yahoo is going to be downen time for mad dash, alibaba new filing of course as ipo draws closer. We get the full fiscal year, the march quarter, weve been working off the last filing yearend as yearend 2013. There seems to be Growth Numbers giving investors pause which is hurting yahoo 23 , you have been very smart, always talking about the taxes and how much value is going to come out. Now, i think when you look at alibaba slowing, first it might have impact on jd, because alibaba was the lipitor, but this cuts to how much mass Marissa Mayer done . People say, yahoo is a shell except for alibaba. This is a measurement and if it goes lower, of what myers accomplished. I always hoped that yahoo would get the alibaba money and then go by a series of Companies Making it more relevant. If there isnt as much money, yahoo may be less relevant. Alibaba, dont be confused, it was sequential growth rate off the last quarter, singles day, that was expected to put in perspective. Full year fiscal Revenue Growth 52 . Net income groat 305 . Revenue growth did decelerate from q4 to q1 of the year, the actual year. But you know, thats because they suck a lot of the marketing spent into that period of the year. So it isnt as much there for the march quarter. Jerry yang will be on. 47 of gmp, revenues up 691 . Maybe those people who felt alibaba was going to be worth 250 billion theyve been the leader in trying to figure out how much say alibaba comes in 200 billion, youd still buy yahoo on weakness. So many other names this morning. Right back with the opening bell on squawk on the street. 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