Work today after last nights win. The road map goes like this, earnings beat for citi top and bottom line. Stocks up sharply as the Bank Announces its settlement with the government, 7 billion for, quote, egregious mismanagement. Far from the only deal news, well have more on mylan, for example, in a moment. Markets in the green on this monday. Goldman raising forecast for the s p, as we gear up for that busy week of Economic Data. Apple, barclays back on board ahead of iphone launch. Sees a weaker samsung and a stronger tim cook. First up, citi group, reporting Second Quarter operating profit, 1. 24. Revenues above consensus. Citi taking the charge of 3. 8 billion in q2 in connection with the companys 7 billion settlement with the doj regarding Mortgage Securities sold ahead of the 2008 financial crisis. Trading revenue down 15. Not as bad, jim, david, as some expected. No. This was in contrast to wells fargo, expectations were so high going into the quarter, there really was a lot of Great Expectations here. I like citi holdings, which had been kind of like leftover positions, went to a profit this quarter, i thought that was extraordinary. The Justice Department settlement, included cdos, how important is that . Certainly no overhang. All the big liabilities now behind them. The tangible book 56. 89, scrubbed through. Interest marjtgin better than expected. I liked the quarter. People readjusted based on expectation fixed income weak. Right. Revenue number, when you strip out dva, accounting, is down yearoveryear. Right. One of the things, look at all of banks and say, what were people looking for . Citis supposed to be eh. And its just turned out genuine excitement to the quarter. You know what . How about the cap, 3 been in capital with the settlement, they raises 10 billion, increase in cap, all i can tell you, citi shouldnt have been where it was going into the quarter and ma maybe wells shouldnt have been going into the quarter. Trading down 15. Fixed income down 12. Equity down 26. So is that what you want to hear going into a week like this. Interest margin up yearoveryear, people want to hear that. Something wells didnt deliver. Citis a consumer, worldwide Consumer Bank, 50 of consumer business overseas. Only thing i didnt i wanted to hear mexicos behind them and i dbts gidnt get that. Thats the only thing i didnt hear that i would have liked to. Current investigations of fraud in terms of some transactions that occurred there and the company that turned out to not be what they assumed it was. Right. I mean, overall, they still get a discount to tangible book, right . Substantial. The stock trading 47. Now it will be up today, as you see, perhaps 48. 70. The government doesnt let you take your cap, doesnt let you buy up to tangible book yield. Old days, its the government still got its head in these things, yeah, its great to see the Justice Department get out of the picture. A lot of fascinating articles in the New York Times and wall street journal how this deal done. Tick tocks fascinating. Congratulations to both brad carp and ted wells from paul weiss, involved in a bunch of other settlements. This one i thought particularly well handled. The complexity of citis business, i argue, still something that investors are going to keep thinking about. Investment bank not great but you pointed out, worldwide consumer franchise, that seems to be the advantage they need to push if they can. Right. What i wish they would do, really, i still like stop criticizing me it did a lot of the subsidiary floatings. Yes, yes. I would love to have a piece of citis Consumer Bank over seas separate from the rest of citi because that would be a kind of American Express that is an emerging market play. Theyre not going to listen to me. I know Michael Corbat watches the show. But when you come back and watch the dvr show which i know you, hes a dvr guy do flotation to get the stock to 56. Jpmorgan tuesday, bank of america wednesday, Morgan Stanley thursday, step in front of any of those . I like the fact that my indication, all indications of jpmorgan, that jamie dimon will be on the call. I didnt know that. Stepping in front of these banks is so unpredictable. Here you are, you step in front of wells fargo, you would have backed up ahead of citi. I dont mind in punting here, literally what im going to do, im going to overtime, maybe 118 minutes, and then i will predict what will happen. Not before then. Might just be it might be a shootout. Too hard to call. Super jim, right . Instead of super mario. So many deals to go through. Well try 0 ur best our best, s its willing to recommend abbvies latest takeover bid to shareholders. Now thats an improved bid. Its their fifth and its worth 53 billion. 2440 in cash, thats pounds and. 8960 shares of new abbvie for shire. Thats a tax inversion. You still got due diligence. Shares of abbvie, down a bit. You have due diligence, youve got people squaring their positions, youve got there it is. The overall value is not going up that much because of the decline in abbvie shares. But again, it has been recommended, this is going to avoid potentially what would have been a hostile fight under uk takeover law and theyre getting closer. So many other deals to cover this morning as well. Right. I dont know where we want to start. I want to get toy mylan, another tax inversion, in this case, abbott, mylan issuing 5. 3 billion in stock to abbott to buy the nonu. S. Developed market specialty in brand of generics business. What is that . Thats 1. 9 billion of revenue, 75 of its in europe against developed markets, the rest in japan and the like. Talking about 60 million in ebida. End up in the netherlands but choose tax jurisdiction, look for that to be the uk or ireland. All right. Weve got the whiting deal where its a takeunder right now. Takeunder but it becomes the king of the bakken, people like that. Paulsons the big holder in kodiak at 10 . It doesnt appear that hes voting in favor. There is some question here, jim, to whether theyre able to get the shareholder vote at kodiak. Some analysts weighing in and saying they are buying at least you know, this was a 5 premium to their 60day volume weighted price average. A discount to where the stock just changed hands. Will whiting have to increase the acquisition offer, at least a question mark in terms of looking where previous deals have been done. It does look favorable for them. This week last year, kodiak was between 8 and 9. Why was it between 8 and 9 . It put itself up for sale. There were no buyers. David, this one reminds me a little bit of hill shire pinnacle. Why . I was looking for whiting to be acquired. Now, whiting management, i like very much. Its a terrific company. Terrific. Should we rule that out or is that a possibility . Paulson the biggest holder in both. Really . I think so. Interesting. I think so. I thought that stat oil, which was like that play, it came on mad money they liked the deal, which is also bakken, stat oil, the gigantic Norwegian Company had seen a tremendous decline in the north sea production. I thought that it was a natural fit to buy whiting. I think whiting understands what a lot of people particularly howard hamm understood from continental before. Bakken could pass texas. Remember, they passed california. Three years ago i remember going out to north dakota and they were saying, listen, we can be bigger than california, alaska. Guys are like, are you kidding . Theyre bigger than california, bigger than alaska. To be king of the bakken, to have more oil, more Barrels Per Day than continental, i like the deal. If people are being greedy if they say no. One more to keep an eye on this morning. This was announced yesterday at aecom when it was announced during the game. During the game. Nice. What kind what are they trying to hide . I dont know. Urs, by the way, i mean, this is multibillion dollar, 33 in cash,. 734. Aecom shares talking about it worth 56 bucks, 56. 31 for urs. Urs, started back in february, reached an agreement, added four new directors in march, modified change in control for some management members in june. And they moved into auction mode not long ago it would appear. Here we end up with a deal for urs this morning. The analysts did not like urs going into the deal. We had a guy put out a note recently saying, listen, its unlikely that a deals going to happen. That guys wrong. Im being a nice guy not talking about the persons name, because i happen to be like jefferson and gaun dhani when im on the outright sale, unlikely scenario in our view. This is geez, sorry. Its it just happens to be a note from bank of america, merrill lynch, underperform. Unfortunate. Right. What i like about the deal, the antitrust people may not like about it, companies that do federal government government work. Yeah. Urs a tremendous underperformer over the years. Jana understood than congratulations to more than 25 cash good deal for aecom. Did 50 million of cost synergies nearly all of which going to be achieved by fiscal year 2016. Allergan, questioning valeant again, another day, another question for allergan, valeants model on m a. Tobac tobacco, most likely tomorrow, not today. You know, Russell Stover. Forgot about that. Private deal. Third Biggest Candy maker behind hershey and mars. I was shocked, i thought Russell Stover an old brand, make it more exciting. David pyatt, ceo of allergan, thinking that allergan could come down a lot if valeant were to walk away. I no longer feel that way. Theres a lot of things that allergan can do. I also think, though, acquisition is one you dont want to rule out. You cant. He made it he wanted to put it front and center in investors minds that we could do this. Yeah. Vie no idea what it is, i havent heard talks of anybody, but something to keep in mind. Something he brought up, he said, yes, we want to do a major acquisition, shareholders want us to do it. As long as its a foreign company, right . Wouldnt be bad if they could figure out a way to invert allergan. Theyre not buying kodiak. No, shires out. No talks. When we come back, apple getting an upgrade from barclays, months after he moved off of the outperform for the first time in ten years. C. Eo, vivek ranadive. Talking about the note at goldman, upping the target for the s p. Premarket, good action. More squawk on the street from post nine at the nyc in a minute. [ male announcer ] if you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. But hurry, offers end july 31st. Share your summer moments in your mercedesbenz with us. Offers end july 31st. M a news helping to lift future following worst week for stocks in months. David costin lifting his target from 2050 to 1900 and 12month to 2075. The u. S. Equity market appear attractively valued in relation to bond yields, thats the key. Talks about going into a tightening cycle, multiples contract, returns get more modest, yearend this year, would be 25050. 2100, 2200. A flattening out. What like about david, his timing. Last week was a socalled bad week. Its not like hes riding the wave of bullishness and cheerleading the dip that we had if we continue to dip, you want to get in. David represents the levelheaded guy who moves his price targets and i applaud his work. Its really clearheaded and not cheerleading. Talks about valuations. In his words, only time the s p has traded at a higher multiple than now during the tech bubble of 97 to 2000, when multiples were 25 lower than they are now. We need to see earnings expansion, right on the cusp of. I was thinking, the dows not the important index to watch. But imagine if alcoa and citi hadnt been kicked out, you wouldnt be seeing the dow with two juggernauts flying higher and wed be saying, alcoas made its turn and citi, maybe its time. Proved to be a decent strategy, right . Buying the ones honeywell got the boot. What a great one that was. Aig, delivered consistent results. With yellen hitting the hill, shes tuesday and wednesday. Tuesday and wednesday. Also profile in the new yorker with nick lemon. Nick . All right. Got to get that. Expect more talk of inflation, more acknowledgement perhaps of that, and a little more hawkish tone and are people going to get scared . Have insight, better than anyone else, anyone in the world, wake up with al, al roker, what matters the breadbasket of america. Anyone ever to the valley in california knows that really is where food comes from. And this drought is just killing this country. Its causing noisy inflation that janet yellen talk bpd gasolines coming down. First drop in ten weeks. Yes. Wheat, greens coming down. But the problem is, the breadbasket of the country is burning up, were short water. We dont know how to move water around in the country. Water credits being traded youve got to watch the weather in california because that if we get rain, it is going to be noisy inflation. But, boy, do we need. Its something, look, the Global Warming people are tom stire, who obviously the head of Global Warming coalition in our country. Right, in other words, favor of acknowledging Climate Change and doing something about it. Right. Those involved with that would say, listen, this is not idle. Were having this burn up because of coal and natural, you know could use a polar vortex in other parts of the country. They need the storm we had last night at 11 15 that woke me up from my slumber. Sorry. My vicodin slumber. Asking 3 00 a. M. , is it time to go to work . I did. 11 15 key rem time. When we come back, cramers mad dash countdown of the opening bell. One last look at premarket. More squawk on the street in two minutes. Kid hey dad, who was that man . Dad hes our broker. He helps looks after all our money. Kid do you pay him . Dad of course. Kid how much . Dad i dont know exactly. Kid what if youre not happy . Does he have to pay you back . Dad nope. Kid why not . Dad it doesnt work that way. Kid why not . Vo are you asking enough questions about the way your wealth is managed . 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Theres a note this morning out saying that the advertisers are loving facebook and u. S. Minutes are increasing 42 . When i speak with ceos who are trying to reach younger people, they throw money at facebook and say the same thing, return on investment is fabulous. They love it, profitable company. Now at the same time we had wonderlick saying look out, engagement Monthly Average user for twitter disappointment. Twitter trades Monthly Average users. When i speak with ceos about advertising on twitter, took a lot of heat this weekend, they say, you dont have to pay twitter, you get a lot of free exposure. The return on investment is good. That is interesting because it means theyre not investing twitter theyre getting eyeballs some the two are very, very different. The people who use twitter love the fact its their news source. A lot of heat, twitter showed you world cup numbers, very good at promoting themselves. But are they very good at generating earnings per share . I want to know what anthony noto things, Monthly Average users feels very much like eyeballs in 2000 where you and i were saying, wait a second, we cant measure by eyeballs, measure by earnings per share. We were wrong for a while, and then very right. People believe perhaps, you said this, power of the platform will win out over time, theyll figure it out. They have to figure it out. For now we keep coming back to this metric of, is user growth growing in a significant way and that seemed to hurt the stock last week. Yes, it did. What youre talking about. Look, people, the ceos i speak to are mad money people and people who place ads, particularly restaurants, i do a lot of that, retailers. They say, how great twitter is, we dont have to give them money and we get a good return. Thats not what you want to hear if youre twitter. Its what you want to hear if youre an advertiser. Facebook, they pay and just think, terrific, and they love the custom ads this is the dichotomy of facebook making money and twitter making eyeballs. Im not an ophthalmologist, im an earnings per share aficionado. Opening bell a few minutes away. Stay with us. Squawk on the street coming right back. [ male announcer ] if you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. But hurry, offers end july 31st. Share your summer moments in your mercedesbenz with us. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. 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