Recession. The euroat a nine month low, and the dax with a 10 correction. No deals, fox withdrawing the bid to acquire time warner, sprint abandoning the bid to acquire tmobile. Giving back mondays gains, shares of ralph lauren lower despite beating estimates. Well explain why. And disney beat despite lower profit at the Cable Networks. Two big deals fell apart. 20th century fox withdraws the bid for time warner saying they refused to engage the highly compelling offer and sprint abandons the bid to buy tmobile, and they plan to replace the ceo. I guess a name well have to get used to, a billionaire entrepreneur. Someone who i think you get along better with. Well, we have to get david the problem is that dan has independ, and dan, wish him the best of luck, turned that company around, he was not necessarily the right guy for soft bank. The right guy for the troops, left after a good quarter, but jars for those that know hes a guy who was the godfather of the industry in the phase, wish him well. You knew him well, very well. You know, dan, known outside the office, and he did a great job, in a challenging situation. He fixed the nextel, and interesting once the government knew the deal was not going to happen, it was time for dan to go. All right. Theres a look at what sprints doing in the premarket. David is on the phone this morning. David, hope you have a good time wherever you are. Walks through the two deals. What is more important, and what do they mean . Whats more important is hard to know, but, you know, i guess when you look at these two, sprint and tmobile, i would argue, sometime down the road still a deal that very well could happen. When i say sometime down the road probably quite some time down want record, and that means a great deal of possibility that it will never happen, but nonetheless something you could see. You can argue time warner and fox also, but that feels more final right now. I dont mean in any way to say the door is going to swing open for either one, for sprint and tmobile any time soon. Its not. This is about regulatory impediments here, particularly even after, you know, the offense that we want on for months and trying to reach a broad frame work of a deal, which they did, it was clear and what ive been told a number of times is made clear just about a week or so ago when the fcc put out rules about bidding, the upcoming aws auction, spectrum auctions, not allowing joint bidding. They had a bitco already put together that would jointly bid. That was not going to be allowed. That was the last straw when they said, i cant even consider moving ahead any longer. Its just clear well never get this past the regulators. Seeing that often, the feeling it was a great deal of risk for the breakup fee and taking on all of the execution risks as well for the combined company, so it doesnt mean it cant happen one day, but not in this Regulatory Environment right now. They went their separate ways at this point. Well, david, i have to tell you that periodically the Justice Department seems to get involved, and where do they get involved periodically . In telco. Why let the airlines merge, the rental Car Companies merge, and just hands off to a business that you and i both know has tons of competition in . Yeah, listen, you know, the argument being made all along and to a certain extent by tmo and john ledger was that youre going to need scale to compete with verizon and at t, its not a fair fight in any way, despite all the success that tmo, interesting, not unexpected, would be the run away, had over the last couple years, but youre right, jim, you know, they picked their spots, though. Youre talking an environment where comcast is eventually buying time warner cable, at t is buying directv. This deal would have come after they are conceivably approved, making it more likely in the view of sprint that it gets turned down, they could not keep approving all the deals where the consumer is such a focus. Hey, david, on the murdoch front, levin on squawk this morning said its not a diversion, but theres cost discipline here, this is not the journal, and you got to behave differently, but others think if you believe murdoch is truly done, you dont know murdoch. Whats your take . You know, my take is after speaking to a lot of the people close to the situation, carl, yesterday and this morning, that they are done. They are not coming back any time soon, and by that i mean conceivably years. I think it was a surprise to a lot of people. You know, i kept reporting on sitting next to you and jim about discipline, hearing this, the idea of a hundred being a bridge too far for fox, but there are few people who truly believed that, given as you said, Rupert Murdoch gets what he wants. When you pay for dow jones, youre not hurting the company. Yes, you overpaid, no doubt about it, but its in the nearly a great a penalty if you overpay by 10 on an 8 0 billion deal. That was the fear there. They stuck to their guns, very much surprised by complete lack of engagement. Coming out of the gate, they did not expect there would be no engagement whatsoever. Time warner turning up the heat with things like cancelling the ability to act to call a special meeting and things like that, sent a sign there was no hope. As i reported a number of times before it was resolution opposition to the price at 85, and the idea they have to go to a hundred, and perhaps, we hear that from shareholders as well, something they were not willing to do at this point. Jeff gets the opportunity at this point to run the company and deliver value they say is there for their own strategic plan, well see what happens, but you cant expect to revisit this any time soon. Viewers have to understand the day this broke was the day of delivering alpha. I said theres not any price he couldnt pay. He said thats not true. If theres too high, theres discipline. Congratulations. That was your reporting. I did not hear once time warner say this was an antitrust issue and theyd go to the government. Does that not meantime warner might buy someone . Cbs, viacom . What a combination. Theres an got to be anned why of those who form the programs, but when it comes to particular situations, cbs, theres a Controlling Shareholder and very much unclear to me what decisions, if any, will be made there in the near term. So, yeah, i guess i agree that there will likely be consolidation on the programming side. This was a deal many of the combined shareholders, and there was a Significant Shareholder base in time warner and fox believed would have. A good one. A lot of potential synergies. Could be other ones, but my guess, keeps it as is. Deals have not been kind to the company in the past, and so my guess is they keep it the way it is to create value from here starting with today, and reach advertising on turner, phone calls this morning were not what people were hoping for. We got Earnings Growth at hbo, at turner, warner brothers, but they did not guide higher. That surprised me. Remember, you are up against a difficult company which is disney. I know people tried to pick on disneys quarter, talking about espn. Give me a break. All i heard that was substantive was how is Harrison Ford . That was a question at the end. How is Harrison Ford . Bob told us personally, do not worry about the delay, ford will not delay us. Thats the biggest risk. Im a buyer of disney on weakness. Yeah, i know, jim. This morning, incredible. Sorry im not there in person, obviously. All these things not happening, talk about time warner and sprint and walgreens as well, jim, given the lousy quarter, lack of inversion, and stock down sharply. Yet, again, the third sort of thing not happening that is punishing shareholders who were hoping it wouldnt. Walgreens incredible. What is interesting is they are literally saying no to a couple activists that, david, you speak to a lot, really smart people, jana, really also clear, david, this was a company that if they wanted to invert at least in the terms of money and spent in the shareholder base, they could have. This was the bridge too far too meaning they are america. They might not tolerate this, right . You could expect competitors made a lot of it. You heard the economic patriotism line coming from the administration over the last few weeks, starting with the delivering alpha conference, and dont be mistaken, inversions are complicated, require a deal of Different Things to be able to work, and apparently, they didnt view it as a possibility to be able to work the way they wanted it to, in particular, the opposition ver bbally from othe that work against them. They dont make them, they just sell them. Right. Were seeing double, triple cap the of the deal. All right, david, enjoy the week, see you soon. You got it, guys, enjoy. David faber on the newsline this morning talking the slew of media deals not happening. Picked the wrong week to take a vacation. Its the best. Lets get to the markets. Indexes coming off the loss with futures pointing low, concerns about russia and ukraine continue, of course, all ten sectors led lower led by energy, but we have to get down to 1891 for a 5 correction. Do you think we can get there . Im adamant its russia. Seeing this this morning, the High Water Mark inversion, were not getting good numbers today, probably not able to get to that. No ones coming forward in europe suggesting, perhaps, a Demilitarized Zone in ukraine and georgia, the other side of the border, actually giving us some solution saying, listen, were not going to put ukraine in nato. No one is being creative. Putins obviously not playing by anybodys rules, but i come back and say if putin or merckle has a Demilitarized Zone, a frak work for diplomatic peace, what you see overseas could reverse, italy in recession, germany numbers not good, all the pieces with russia. Its russia, not inversion or break down of deals, but russia driving us lower. Can we go down 2 to 4 . Yes. I want to buy the percent. I do not believe we will, indeed, go to war over russia. Im waiting for merckle to say, lets carve out that area. How about that . When that happens, if youre short stocks, it comes down, youll get your head slammed. Maybe if he senses separatists are on verge of defeat, maybe hell agree. Has not backed down on sanctions, but i think there is a frame work thats out there. I just dont hear the frame work. Someone has to come forward and offer a solution that lets russia have face saving and not kill a lot of people. His solution seems to be not the kind of solution that the western powers are going to let happen. Or that the markets are going to like for that matter. No, no. Italy europe is slowing down quickly. When we return, Spencer Rascoff to the Quarter Results, and russian hacker stealing more than 1 billion emails and pass words. How do protect yourself in the digital age, well talk to fireeye in an exclusive. The fed approved the m as resubmitted capital plan. Not what i expected. Futures are negative know. Well get more from squawk on the street in a moment. Moment, the fed approved the capital plan to allow to return to share hollers, and youll recall they recalled the prior plan after the accounting error, but that fix with the fed. Disney beat estimates, revenue beating as well, and the ceo was on closing bell yesterday on what led to the profitability for the quarter. We had Great Results at parks and resorts, profitability at the interactive group, tremendous story of consumer products, and, of course, the studio with Great Results for movies like captain america, and, of course, the lingering effect of frozen, the highest grossing pi ining film of all t. More than in three quarters than any full fiscal year ever. More in three than normally done in four, but Cable Network operating down 7. You have to pay up for baseball and soccer. Right. What i loved about the quarter is he teased star wars, the footage seen so far is spectacular, worthy of the fan frenzy and excitement. Were so far from it, but its generating frenzy. The franchise is here, the second tier players this weekend, not real superheros, but, like, you not, not that bad heros, like pretty good heros, they generated good numbers, and can it continue . I mean, coming back says, look, this is what we are. This is what we produce. They are talking about the idea of the mega a few years ago, didnt have megamovies. You with make movies and franchises, but hes done more franchising and merchandising, nice numbers. More star wars in the parks still to come. As long as hes there, this is the stock to own and buy for your kids. If russia, italian gdp, if german car sales, this is the stock to go to, okay . This quarter was perfect. Asked on the call whether or not they were going shopping, like so many other Media Companies appear to be at least thinking about. Said, we got a good hand. Yeah. Does not seem to be interested in another any kind of deal so to speak. Well, how about this ae, how about the espns structure. I mean, you know what . This is aint broke dont fix winning hand lots of ws in playoffs, probably super bowl, why would you trade anybody . Yeah. Well watch disney for sure and talk more about it later on this morning. Yes. When we come back, cramers mad dash, opening bell, and a look at the premarket. 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Carl, i have not seen retail trade as gloomily as it has in a long time including target after the breach and challenging the consumer. This is the best retail idea. Selling at 12 times earnings. They have a strategy, and when you see amazons going to parachute stuff to you, i feel like amazons anticipating right now that i want that beach chair and itll be there. They probably are. Right. Look, cramer, beach chair, boom. I get home, click, its there. Macys has the omnichannel, a good call. Careful, retail is in a big function. Speaking of big funk, General Electric has been in a funk, the trust stock thats disappointing. Bernstein says its hated too much. Its hated. They are doing things they are not getting credit for. Enough is enough. Go to a buy. Its going to be industrial, not expensive, going to be able to change the capital structure, but what i find interesting about the call, carl, you dont get them often is, you know what . It just isnt as horrible as you think. The name of the report is youre not imagining it. Yes. This is not a joke. No, and they had 5 ogranic growth, better than almost every sing single industrial i follow. It was not falling to the bottom line. If they can, the stock goes to 30. This is 24 on the downside. 30 on the upside if they get it right. I think the reports worth reading. Youre critical of the stock. Bernsteins target is 33. Aggressive. Manageable, more industrial exposure than in a quarter century. Yeah, you know, my problem is, look, you know, sometimes you cant catch a break. Europe is bad again. That means if the people flee from the industrials. Ge is snake bit when they do something, Something Else goes away. I think that if you feel europes going to turn, feel that russias going to ask for the zone, if you think theres going to be big easing in europe, youll get to 29. 30, but its not this is glacial, okay . I saw them in alaska. Its going to go, like, what . I dont know if we have time. Do we have time before the break to show you anyway, you get the picture. A good read. Opening bell moments away, and squawk on the street continues in just a moment. Bulldog if youre like me, youve been working like a dog all year. But you dont need to camp out til labor day to reward yourself. Mattress discounters labor day sale is on now rest those tired bones on a queen size serta mattress and box spring set. Right now, theyre just 397. Get 48 months interestfree financing on the entire tempurpedic cloud collection. Not to labor the point, but this sale wont last long. Mattress discounters [ tires screech ] chewleys finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app from td ameritrade. Youre watching cnbcs squt squawk on the street, opening bell in a minute, busy day shaping up, futures in the red. A lot of things familiar with still going on, russia, the ewe crepe, we have a ceasefire in gaza, but the inversion at walgreens not happening, jim. No. A lot of m a pulled in the last 24 hours, but your point going in you have to watch what nato says about ukraine, what putin and