Can you imagine if we failed that many banks. When we think about the stress test they were an important milestone for our Capital Markets coming back to life. Belittled by most commentators, 1930slike structure by tim geithner. Probably one of the better treasury secretaries. Key moment. For ecb stress test, well get to that and the markets. Of course, oil falling below 80. Again, Goldman Sachs with a view 75 bucks next year. For our road map, it does start with the markets shaping up for what could be another volatile week april slew of big earnings coming in. As i said Oil Price Forecast slashed. Valeant tells allergan its prepared to raise its offer to 200 a share. More details ahead of allergans ceo appearing on mad money. Two of the largest drugstore chains disable apple pay. Good luck. Why, what it could mean for applesests as well. Stocks losing a fourweek streak. Jumping 4 for its best week since january 2013, that was last week, of course, this morning we have merck kicking off another busy earnings week with Third Quarter profits that did exceed street forecasts but revenue was light. In other words, wasnt up to what the consensus was. Goldman sachs cut its Oil Price Forecast for 2015. The firm expects wti crude to fall to 75 a barrel. Brent to 85 a barrel. Each down 15 from the previous forecast. I mean, look, first, ill dispute this call because brent i think is trading with west texas, thats whats going on. So i thought this call i was kind of surprised about this. Surprised being code for like what are you talk about . There is a series of downgrades. Boxen one at risk, using rail because they havent built a pipe, so the price differential is not much differents. The parts of the call, they are questioning continental. I question the downgrade of anadarko because anadarkos got Great International resources. Anadarko eventually, if theres consolidation, will be takeover. It is a takeover candidate that would get taken about theres a wave of consolidation that hit as among the majors. Youll see exxon report on friday, show no growth. People will fawn all over it, except me, because they have no growth. Chevron will have some growth. Both Companies Need to do acquisitions as total but we dont know what the new ceo is thinking. It needs growth. Im not going to overrule the fact you oversell, quarters wont be great but look back and say wow. What about broader issue of oil prices which have mirrored our own fall in the Broader Market as they started to come down . That is linkage still there . Look, one of the reasons why i think this calls a joyous call, so to speak, the American Consumers going to havenhave a rnds the world im was shocked to see airlines have no ebola follow through because they gave you a look at october. We could talk about ebola every day and i think that what would happen is we would be stoking a fear that seems incorrect to me. Only thing that the tension with ebola, weve got two governors who went ahead of the federal government. And followed to a certain extent your advice from last week. You joked in part but serious in terms of at least suggesting this idea, hey, we should quarantine people. Cuomo says you can stay in your home and christie, in new jersey, its a different matter. I have a feel whether that stops, helps professionals from wanting to go over and help fight in west africa, where really it needs to be fought, is a key concern. Why wouldnt you want to be monitored for 21days. The civil rights for a worker versus the rest of the 317 million i dont know. Cuomo, talking about two governors from two Different Party as degreeing with something. Cuomo, rigorous thinkinger. Christie, obviously, i think he is a rigorous thinker. I understand. Perhaps one of the billionaires, whether zuckerberg or paul allen who both come out and donate a lot of money, maybe donate money to any help worker comes over, comes back, quarantine at the waldorf. You know what i mean. They make it nice for you to actually do something that needs to happen. The nation states that our billionaires are helping more than other countries. Cuba, nation state billionaires, they are showing themselves as being terrific. Billionaires, people who made a lot of money during the market. China, the freest rider in the world, again, free rider, you dont call out the chinese. You want to sell a lot of shampoo and cars. Why is right wing people attack yellen . Why dont they attack the chinese . The chinese are dumping everything everywhere, getting away with everything. These ngos flying chinese flags because there are people who want to attack china, because china gives out money privately. Theyre the disgrace. Got to sell a lot prell. Wanted to build their own chip making business. No luck whatsoever. But stealing secrets with espionage and making tough on the likes qualcomm, trying to extract concessions and or get other companies to partner. When you partner in china, it can be dangerous. Right. My sources in the Capital Equipment industry saying, absolutely not, were not going to play ball with chinese because its stealing secrets from powerful company. Never mentioned on air, outrageous. The Broader Market before we get to allergan. Oil, as we said, below 80, you heard about that from Goldman Sachs as well. Ecb stress tests are now passed. And the new president , the old president in brazil. And we seem to be in a market that inflicts the most pain on the greatest amount of people, hence a lot of people short right now. So it will probably go up. I think you see the market down 10 and say to yourself, these stocks are down hideously. Petra bra, you cant take over pet pet p petbros. So you continue to short stocks. I go back to an interview that we did if you remember, for delivering alpha untimely called by brazil. Brazil is going to be down huge. They have the olympics. Its obviously agovernment that is prosocialist. Venezuela not able to sell citgo. South america is horrendous in terms of government but people want that market so they dont go away. How Many Companies have lost money in venezuela over and over because they think one day something goods going to happen. Steve te nechnnebau saying we cant find our health care czar. Hes somewhere. But theyve got a czar in venezuela. When you talk to the consumer package good guys they could not believe someone worse than chavez. And they did. Yeah. Its like when michael realizes hes going to lose all of the casinos in godfather ii you do not want to buy venezuela bonds. Excuse me. Move on to valeant. Valeant pharmaceutical says its prepared to raise its a cash and stock offer to allergan to at least 200 a share. The ceo pierson said allergan shares wouldnt be trading at current multiples. Allergan raising full year guidance, posted getter than exed. Q3 earnings. We got a preview of the earnings a few weeks back. David pyott one of jims guests on mad money 6 00 p. M. Eastern. Ive been following this closely. Also joined later by Robert Kindler from Morgan Stanley, the banker representing valeant in this offense what a great interview. Ill be listening to everything you say. One of the precepts in the valeant deal, listen mr. Allergan, david pie out, your stock would not nowhere if we frankly werent around. They want to say, we apply 15 multiple to your stock, wed get into allergan. Its probably worth more than 15 multiple, allergan, given numbers putting up. They asked this growing large pharma theyll say 140, 150, its still not they believe that valeant should be priced higher, obviously they believe that. Right. But the key this week will be the litigation in california, Insider Trading charges against bill ackman, trying to not allow him to vote his 9. 7 stake in allergan in a special meeting december 18th. Explain why gravitas. You can leave the enforcement and go with the higher gun. Were a great country. You can play for anybody. Im being facetious, great country means this guy should be out. He should not be the lawyer. But thats okay because we are such revolving door society, no one thinks. But why does that lawsuit have any chance of winning . It has some chance but not a large one. Okay. You dont know. It would precedent it seem likes a tough argument and the judge has given some sense it will be for them to make that being aller gan here. Those are not invalidated, my question becomes, does allergan say, okay, writings on the wall, figure out what were going to do, break the glass, call activists . Do we break the glass, what is that . Like the break the glass scenario. Like a wedding . Not like a wedding, not stepping on the glass. Break this glass, get out the envelope and say, who are we selling the company to . Ive got to tell you its not j. J. Their ceo said theyre potentially not interested. Is activists interested . Do they believe, curious to hear his answers, they can simply put the stiff arm up, heisman valeant. It would seem unlikely if they lose the lawsuit. We have merck reporting today. It used to be called st. Merck, that was during the days when vag vagi vagilis was the chairman. Well look at merck and say merck is good. Allergan is so much better. Growing so much faster. But valeant decided allergan was vulnerable. I think its a shame, david pyott had the best growth. And put up numbers. Way back when this started we questioned valeants Business Model over and over. Theyve had strong numbers as well. Roll up with low tax rate, eviscerating r d. First letter written by pierson as opposed to ackman who continued to have the barrage. Are they at odds, buddies . Theyre not buddies. Ackman saying weve got to do this, bid more, higher. Not going to break the glass either. Theyre not clinking glasses. They say valeants letter a tactic to distract investors from allergans outstanding Third Quarter results. It does not disclose a mix of conversation. It goes to great less to defend its stock price. There you have it, the latest back and forth. Listen to kindler, pyott. Its funny that best performing the best of the fastest growth of the major pharmas was allergan and thats being picked on not pfizer, where they know how to buy back stock. Whats pfizers real strength . Knowing how to buy back stock. Merck . Whats lili . Nothing. I saw no growth. Bristolmyers, a little bit better growth, allergan hitting on all cylinders, botox, a wonder drug, but amazing eye care franchise, and thats the one they went after. Yep. No good deed goes unpunished. Coming up, looks as if theres bad news for apple pay, courtesy of two national retailers. Well fill you in. Also ahead, a live interview with consumer advocate ralph nader, who has a bone to pick with apple and its ceo tim cook. Tim cook. Another look at futures. Set up for a lower open again, Lower Oil Prices, brazils election. A lot to digest. More squawk on the street after this. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Welcome back. A look at crude oil. If you want a sense for where the market may be headed in the early going, thats your key. Yeah. You even tweeted, market cant sustain itself. Oil in charge the whole way. Its been in charge the whole way. Watch oil. Algorithms set for when oil drops below 80, machines sell. That sounds counterintuitive. We dont talk enough about it, the funds that are what we call quantz run on algorithms and one of the inputs is oil and changes their approach conceivably, and they sell the market. Now people or do other things. Goes to 250, theres a gigantic factor, the machines dont factor that in. They say, listen, oil down, bad for s p, sell. Thats what the opportunity comes in, because if you sell all of the restaurants and the retailers on this, because theyre part of the s p that means youre playing some machine game. Thats where you circle back and buy and thats where the opportunity for individual investors comes in. Pick your best individual retailer restaurant, go against the machines. Not talking about terminator ii rise of the machine talking about individual being able to profit from the stoupidity of te machines because theyre underperforming. The theyll say, new york machine say theyve been getting hurt, meant oftentimes part of the hedge fund strategy, paid 2 and 20 or. Think about hedge fund are underperforming significantly. So many different strategies. We say that but but the strategy says oil under 80 sell, s p why the futures dropped dramatically. You can say, thats stupid. Machines are on a short term more powerful than individual investors. Apple pay, a setback, cvs and rite aid disabled apples new Payment Service over the weekend. The chains didnt give a reason for blocking apple pay but they are part of a consortium called Merchants Customer Exchange developing a competing payment system. Importantly, jim, walmart is also not adopted apple pay, the largest retailer in the country, publicly public retail represents 20 of all sales from public retailers. They want the data. I think this goes back often times to being able to actually know the customer and capture data, which is extraordinarily valuable and use apple pay, apple, that data goes to them or nobody. Walmart, rite aid, these all remind me of the Record Companies that fought steve jobs. Youre fighting visa and mastercard here. Fighting the major banks. So in the end, cvs, you know, i absolutely love, great company, rite aid, making a comeback, i dont know if theyll have the wherewithal to defeat apple pay. If the consumer votes with their feet or makes it clear that they want this as an option, one expect they perhaps have to adopt it. Right now, and not that apple hasnt seen this in the past, it may be slow going as they try create this echo system if theyre successful could conceivably be worth a great deal to them. How about if walgreens says usele apple pay, well give you 10 discount. What does that do . Cvs riding high, they took tobacco out. Walgreens suffering from a lot of bad news, not dug oing inversion, cfo leaves. David wassen greg wassen listen, this is your chance. Watch the show. You offer discount, make a deal with apple, you go in and you should be making that call now to chicago, its probably too early but when you make the call, come on my show tonight, well talk about it. Okay. We will watch apple pay, of course, as it tries to gain traction with retailers. So far, not so much. True. Cramers mad dash as we count toward the opening bell. We talked about the impact of Lower Oil Prices on the market. Poised for a lower open but that doesnt mean we dont have a lot more. Squawk on the street right ahead. You can bring back a lot of things from a trip around the world. But you cant always bring back customer data. Because many customers dont like it when their data moves around. Can i go now . If youre going to do business globally, you need a cloud that can keep your data where it needs to be. 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A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com all right. Six minutes or so before the opening bell on this monday. A little mad dashing. Start with alibaba. Jeffries rolls out a buy. Weve had rolling buy recommendations. They arent using street high for 2016. Under 3. I regard alibaba as amazon but also has earnings. Amazon with earning. And i different Business Model, no inventory, no warehouses, no delivery trucks. Amazon likes to spend, spend, spend. How about 100 million on movie. Alibaba, this is a piece called connecting half of china. Thats because half of chinas already connected. The chinese are spending like mad. David, singles day is a day you and i have to celebrate though were not. Right. November 11th i believe when singles day you want to get ahead of that. The largest single day of commerce on the planet. Last year they did 5. 3 billion, some huge number. Assuming theyll do bigger. Of course, going into it, jim, they find that buying slows as people wait for singles day, so they always say dont take a look at our quarterly numbers prior to that which they will be reporting. Right. Sometimes thats a lull before the big Fourth Quarter number which includes singles day. Is this christmas, hanukkah, valentines day together. Rolled into one. Wow. A holiday created by them. When le we we adopt singles. I hope never. Good. Second, wayfair, piper jaffray, wells, all recommend it today. It should be up a litt. This is joss and main. Ive used it for tables and chairs. In the restaurant or home . In home. Okay. I think the companys over the fact that everyone starts with a buy is a little daunting but understand, this is regarded as being the second william and sonoma, cheap. I like the pricing. I like kings lane more than joss and main. Im a big kings lane user. But for a beach house, its ideal, thats wayfair. The catalog. Lost on me. Its made in china, right, the furniture . I hope so. Weve got the opening bell in four minutes. We have got a lot more to talk about. Sh