Gets 8. 3 billion buyout. Roach and intermun on the buyout . New alltime highs driven by the possibility of more stimulus in europe. Just a few points shy of s p 2000. First up, tax inversions in the spotlight, not talking about europe. Burger king in talks to buy canadian coffee and doughnut chain timms. Both Companies Say a combination would create the Third LargestQuick Service chain, a deal structured to shift burger kings base to canada, which has lower overall Corporate Tax than the United States but some thinking this morning is that taxes may not be the driving force on this one. Look, i think that theres always going to be anytime, its a hot button, especially walgreens not doing the alliance and president and treasure secretary saying weve got to stop these. This United States a deal that makes a lot of sense. Burger king challenged at breakfast, tim horton doing fath f fantastic. Burger kings last few numbers, doing okay, theyre not as bad as they used to but flattish comps. Tim horton had great numbers last time. They had 5 comp, people looking for 1. 4 comp. Put these two together it makes sense both stocks are going higher. They need each other. Too many players in the area. Coffee is a strong segment. Thats a good dovetail. Tim horton trying to do lunch, somewhat unsuccessfully. Stocks should go hire. Its not going to do anything to dissuade people burger king has been a Financial Engineering play, right . Going private in 2010, public in a complicated deal a couple years ago. Weve got 3g owning both. Tim horton is a company, people have never been to canada, dont understand why they have 3,600 stores successful. You feel, you have dunkin donuts. Were overstored in the couldnt trip this is an overstored merger. Take out some, put some together. Look at dunkin donuts, growth has slowed dramatically. Mcdonalds growth has slowed. The only sector in that segment is natural and organic of which chipotle was 17 , doesnt need to do any of the deals. Mick mcdonalds, looking at millennium, percentage of 19 to 21yearolds go to mcdonalds once a month is down 13 in three years. Amazing. People dont want to get sick. They dont want to get fat. They dont want to have diseases. What is with them . You know, theres a thing called the web. When you go on the web, its incredible. You see what that food can do for you which is plus you have like endless pseudosoft propaganda movies that come out from chipotle which say, do not trust the food chain. The food chain is mcdonalds, like it or not. Its mcdonalds. This is a rebellion against the food chain, not so much that the stuff doesnt taste good, boy, is it fabulous. Speculation that a deal, the times says a burger king deal will come this week and structured to appease any regulatory pressure that might come upon them. When you have a real ka hcann company merging, why not in canada . If i were the canadian government, the canadians, probusiness, if tim hortons were to become an American Company that would be a bigger deal than whatever the president might say about inversion. Tim horton is rock solid canada. I said, wow, this is good coffee its like people go across the border. They like tim hortons, doughnuts pressure. This is a company not as challenged. Its just a great darn cup of coffee. Absolutely. Not the only deal today. Roche has agreed to acquire u. S. Biotech firm, intermune, a 38 to the deal friday. Expanding treat of respiratory disorders. A live interview with ceos of roche and on squawk alley at 11 00 a. M. Youve got history with these guys. Yeah. We had them on, we called dan walsh to come on, what he said, may 22nd we said, we here your companys for sale. Three years ago you tried to sell. Theyve had billions of literally more than a billion in losses since 2005. Take a listen to what they told you back in may. Here is it. Reuters article that came out in march of this year which says that that your companys attracted takeover interest and thats not that odd because several years ago you three years ago you thought about selling yourself and decided not to. Is the latter story true . Well i wouldnt want to comment about that. We dont comment on speculation, jim. But what were focused on right now is getting our documentation together. Close to filing that documentation with the fda, getting it to them. Theyll have six months to review it, and hopefully get the drug approved. They were referring to pulmonary fibrosis. A portfolio in a product. A love these companies they have one drug. Allergen, botox, multiple uses. This drug is not just for this terrible disease that is five years progressive and people die from it. So this is one that the fda, whatever they see a fatal disease, theyre going to approve if it works. This will get approval, could be 1 billion a year drug, ancillary things. The roche coo came out and said took my breath away this is a fullon acquisition. When i heard that, it men 200 million. This is 8. 3 bolt on. This is where you have to be. Now, ironically, because i think Janet Yellens doing a very good job. Here it comes. They came out and said that its the this is where the this is where the overstretched valuations are, in the meantime if youre roach, youre sitting there with an oncology franchise, trying to expand. Here is intermune, a drug, could be life saving, 100,000 suffers in this country, another 100,000 overseas, buy for 8 been, a new product line, you have a sales force for pulmonarpulmonary. Look at all of the companies that are 1 billion that could be bolt on, a year and a half, two years from now. Lets not rule out pfizer coming back again. But i have to tell you, these Companies Need to do deals as stra accideas stra denny ka the roche deal makes sense. Not blinded by the wave of m a, right . No. Youre a drug company. You have to have growth. Look at gglaxo. Burger king teams up with tim horton, you take out competitors. This i dollar tree family dollar. Overstored, over retailed, overrestauranted, Big Pharma Companies dont have enough drugs. Gill add goes up every day, since the pill they reported that stocks gone from 89 to 104 quietly, probably right to 120, valued at the same price as merck. Drug companies that are challenged to grow. Restaurants challenged to grow. Retail challenged to grow. What do you do . Buy. You any burger kings down . Its up. A nogrowth company has great growth. Speaking of the challenges to growth, s p poised to open at new alltime highs marching closer to 2000 after gains. U. S. Futures taking cues from european markets on the rise on the hopes of more stimulus from the ecba the friday speech by drag draghi. You were making the point easy to focus on yellen. Yellens visible, fed chief, new. Draghi kind of basically said, were still not doing enough. Now theyve got this ukraine headwind, germany has been sticking by the notion of austerity. Why . Low unemployment, in great shape. I see rebellion among the ecb. I see the french we cant keep going with this. Germanys saying, look what spain did. Spain got they fired a lot of people, tightened their belt, now theyve got growth. But they dont have employment. French want employment. Its difficult for the germans to say were going to block the russians, even if it hurts our economy, when other countries really bad growth and theyve got to get the economy going. Thats were up, you woke up, you thought maybe ukraine, maybe its calmed down but the russians will send another convoy, thanks a lot, russia. Things are heated up. Parading prisoners, doesnt matter. France is saying this is bringing our economy down. Germany relent. A rebellion against girmermany l mean more qe2, thinking the fed will have low Interest Rates which means more burger kings, more tim hortons. Does s p 2000 bring in selling or buying . I think everything brings in selling. All we ever do is talk about its about to end. Yeah. Were always you know, the cheap thing to say, since november 20 1 correction ended, posted the downgrade of the s p groudowngraded the chic thio say delivering alpha, smart guys saying the feds going to pull it. Think back to who got it right, temper, said the downdraft because europe has not done enough, draghi goes, puts the pedal to the metal. Tempers not involved with the dichotomy were being do reckless, too tight. Hes involved with trying to make money. I use hims a paradigm. What hes saying, look, im not going to get focused on the debate about the fed. Im going to make you money. Great philosophy. Yeah, absolutely. Coming out of jackson hole, the likes of lockhart saying, were in a fierce debate about whether the risks of doing too much outweigh the risks of doing too little or vice verse sap youre saying theres a different play than the classic debate . Youre being paid to be any General Mills and clorox i like both ceos Interest Rates below 2. 4. Remember, the whole consensus, everywhere you go, rates about to go to 3 , that hasnt happened. Were in that debate. As long as the debate goes on, you have stocks that have good, steady yields with dividends going up, so much corporate cash, and then deals. And they are no longer needles in a hey stack. We cant say intermune and tim heart hortons theres a hey stack filled with deals. Ow, i thought there wasnt anything in there. Dont sit on the haystack. Any moment yellen can change their mind. Theyre think, weve got it sell more doughnuts, get out of my face. Not one for fed debates. Im tim horton coffee versus mcdonalds coffee and dunkin donuts. Staples cofounder and former ceo tom stemberg, backtoschool shopping season heads into the homestretch. Californias wine country suffering costly damage from the earthquake. Well get a live report from napa when squawk on the street continues. ,000 turbocharged reward card with a new volkswagen turbo. Why are we so obsessed with turbo . Because we like giving you power, but we also like giving you fuel efficiency. Like the sporty jetta. And the turbocharged passat tdi® clean diesel. Okay. And the iconic beetle. And the powerful tiguan. Okay you cant forget the cc. Guys, this is going to take a while. Get a 1,000 reward card on new 2014 turbo models or lease a 2014 jetta se for 169 a month after 1,000 bonus. Ends soon i research. I dig. And dig some trader more. Search. Because, for me, the challenge of the search. Is almost as exciting as the thrill of the find. announcer at scottrade, we share your passion for trading. Thats why we rebuilt scottrade elite from the ground up including a proprietary momentum indicator that makes researching sectors and Industries Even easier. Because at scottrade, our passion is to power yours. Californias wine country cleaning up after the largest earthquake to rock the bay area in 25 years struck yesterday morning. Josh lipton in napa valley with the latest. Good morning. Good morning. Yeah, you guys can take a look at this building behind me. This was actually the oldest commercial building in napa. It was a brewery, it was a saloon. Now its actually one of 33 buildings the city has red tagged as unsafe. Thats the biggest earthquake in 25 years hit this area. Now, as we go through here, what youll see is a few photoize want to show you, one from my producer got this one, moment time stopped here in napa. He caught this photo of a clock in a gallery window. Youll see 3 20 a. M. Thats when the quake hit and the earthquake started rolling. Just one of the many images were seeing in the 24 hours since the quake did hit. Feeling aftershocks here, last one i felt around 7 30 p. M. Last night. Despite that, though, city officials, they are out in force because they want people to know that napa is still very much open for business. Most of the valleys operating as normal. Ive been getting a lot of calls from people from outside the area planning on copping here that were worried about it for fear that this is some kind of a disaster area which means they cant come here and enjoy the valley. The damage is in isolated locations, the issues are significant. But were on it. Its getting better. I think its going the conditions will be vastly improved over the next few days. Reporter now, inspectors are going to be out again this morning doing damage assessments, looking at structural damage, what they need to do next. We also did see local kids, carl, making use in their own way of the damage. We saw young skaters actually using busted up road as a kind of skate ramp. Were going to be here all morning, all day bringing you news and headlines as they cross. Carl, back to you. Thanks for that. Well keep an eye on aftershocks, jim. The Wine Industry for napa county 13 billion in revenue. You see the label that come tumbling down. Theyre the ones youre paying 90, 100, 120, who knows . But, yeah, i mean this is a great destination. Anyone thats been on the trips know that this is a national treasure. I think that, wow, it seems like its only injuries. Thousands without power, though, as josh mentioned. People think about collectibles. Unbelievable. Wine . Unbelievable. Yeah. Its an asset, no doubt about that. When we come back, cramers mad dash, count down toward the opening bell and interviews with ceos of roche and intermune on the deal announced this weekend. Take a look at premarket. S p 2000 in our sights. More squawk on the street straight ahead. 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I think goldman will go back to its premium multiple over time. Thats what theyre going to give you. Last few quarters weak trading activity. Lets not make as many partners. Lets tell people, maybe you ought to go elsewhere. Remember a frustrated associate is a potential departure rather than a big payment. I think goldman in the end is starting to recognize the new world that people didnt think they could recognize and say, you know what . Theres a lot of money in m a, a lot of money in Corporate Finance and lets not do as poorly as we were doing in fixed income which was good. These are immensely profitable institutions then became more profitable. Goldman departure. I did work at goldman sachs. Also boeing. Boeing this is important, boeings been quiet since the Big Aerospace show where people say that airbus did better. Boeing never said, we didnt do that well, they dont put up the white flag. Boeing gets the aircraft order for the 50 of the most profitable planes, 737s. First, that company, boc bought airbus jets back in july. People felt, maybe thats a loss for boeing. No loss. Look whats happened. Right here, when the beav deal fell through. People started thinking the aerospace cycle was over because that company wasnt able to sell itself. That was a technical level, it held. This stock going back. People felt it was good. They thought it wasnt as good. Department like the defense problem. Mcnerney assured you over and over, do not have a loss of faith. Our company is back. Its going to be big. It was not the best stock on the dow. People got tired. Last quarter, they talked about the acceleration of the dreamliner production. Now ten a month . Yes. The profit is increased by 13 . Now, right here, people got faked out because they reported a quarter which was better than expected. I say go through the release, wait for the Conference Call. They did have a problem, sequestered, we thought that was behind them then had a problem in manufacturing and there was a sense, wheres the big cash flow . Well, mick nernnys going to show you cash flow galore after your people are no longer tired of owning boeing. Goldman, say goodbye to underperformance. Good analysis of two important dow stocks. Thank you. Opening bell in six minutes. Dont go away. [ dog barks ] [ male announcer ] imagine the cars we drive. Being able to see so clearly. To respond so intelligently and so quickly, they can help protect us from a world of unseen danger. Its the stuff of science fiction. Minus the fiction. And it is mercedesbenz. Today. See your authorized dealer for exceptional offers through mercedesbenz financial services. See your authorized dealer for exceptional offers where the reward was that what if tnew car smelledit card and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. 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Roche buying inm ing intermune. Nice shot of s p in august for the dow, the best month of the entire year. This is incredible. Its historically not been that great a month. Dont forget the beginning of 1987 rollover truly started this week in august of 1987. The market had gone up, up, up, suddenly profit takers came in.