Watch the tenyear, near 2. 3 now. Fedex does miss expectations, cuts guidance. Shares are down sharply in the premarket. Well have a cnbc exclusive with hewlettpackards meg whitman. And the stage is set for what could end in the merger of the worlds two biggest beermakers. First up, so much going on one day after that rally on wall street. The fed kicking off that twoday meeting today with a decision on rates due tomorrow. Possibly the first rate hike in about nine years. One barometer of the economy, fedex missing with Quarterly Earnings and cutting its full year guidance. Sabmiller receiving a takeover approach from Anheuser Busch inbev. You have been busy. This is not something we have been unaware of. Many of us have been chasing it so a certain extent. Well get into more detail later, that Anheuser Busch, they did not want this to leak out the way it did. The time clock has started under uk takeover law. They have 28 days to make an offer. There is financing, the family which owns 28 . The offer has not yet been made. Again, well go through a lot of the other names here, carl. Theres a lot moving. Anheuser busch is moving. S sab, altria moving. A lot of moving parts. Its not a done deal by any means, but one of the largest of all time. You will talk with Chris Albrecht of starz later today. Jim what are your thoughts out west . These are deals so positive it makes me want to say, okay f the fed does something you dont want that hurts the market, circle back to molson coors. Why . Molson coors will be the new con te constellation. The Justice Department would demand that of the that tap gets the miller take. S cerona merging . This was a threeway olygopoly. You get this deal going, another place go is shine. The one not involved is the winner. Fascinating. In terms of well knock around the fed this morning and later on tomorrow morning while we await the decision. Theres a growing sense, jim, that the market is prepared for what theyre calling a dovish hike. Fed rate hike not likely to spook the economy. I doubt thats a headline would have written. Absolutely not. Im listening to Steve Liesman this morning. When you see 50 50 about what people think they will do, it means someone who borrowed a lot of money is about to be on the wrong side of the trade. We lived through the idea that its not the fed that matters, its your fellow shareholders or renters on the wrong side of the trade. The treasuries, thats china continuing to sell in order to prop that market up in the last hour, a shameful act. But, you know what . Theyll have to keep doing some propping if the fed raises. Jim, well get to hewlettpackard and comb back to the news this morning. Jim joining us from San Francisco where, by my count, its 6 04 in the morning. I guess it is for meg whitman as well. Hewlettpackard making news at the Analyst Meeting yesterday saying it would slash up to 30,000 more jobs as the Company Seeks to cut 2. 7 billion in costs. That Work Force Reduction is in addition to previously announced job cuts that amounted to about 55,000 over the last few years. Here to give us more details on how the Company Plans to restructure and what to expect in the future, following the split thats less than two months away is chairman and ceo meg whitman. Always a pleasure to have you. Early in the morning. I would love to start with the job cuts, of course which are getting significant headlines across the country. Why the need to cut another 30,000 jobs from Hp Enterprises . Yesterday we got a chance to lay out for the first time the strategy of the two new companies. Hewlettpackard enterprise and hp inc. I think people generally peeking were pleased with the strategy and the overall story for the two companies. Youre right, on hewlettpackard enterprise we have one more restructuring, thats because the market is changing so fast in technology. Its remarkable whats happening as new technologies come in, we have to restructure the labor fo force to lowcost locations and much more automation. And a Strong Enterprises services is important to hewlettpackard enterprise strategy because we are pivoting to more solutionsled selling around the needs that our customers have most, in terms of transformation to a hybrid infrastructure or cloud environment. These cuts are never easy but its the right thing to do because we have to get to the next phase of the hp journey. If you think of the cuts the last four years they were mostly to help us get a cost structure in line with the revenue trajectory. Were saying revenues will grow next year. So this now can be about margin expansion. Thats got to be part of the story. Right. I heard you say it, the next phase of the hp journey. Usually we start off many interviews with this question. Will that actually involve growth yes. If the economy stays where it is now. For hewlettpackard we said there will be growth next year in Constant Currency. We feel confident about that because we have an incredible innovation pipeline in Enterprise Group, Enterprise Services we said would be down negative 2 to flat in Constant Currency. By the way, Enterprise Group has staged a remarkable turnaround in the last three years. They grew 9 in Constant Currency in the third quarter, probably the fastest growth rate in the last four, five years. Were optimistic about the growth. You know, to be fair, meg, i think weve done interview now for the last four years. I think at the outset you anticipated that there would be growth prior to this. I dont want to take away from the accomplishments the company has seen the last few years, but you never quite got there in growth what gives you the confidence youll be right this time . First of all, i think separating these two companies is the exactly the right thing to do. One of the things that came through, i think yesterday, was that, you know, its amazing these are two entirely different businesses. Hewlettpackard enterprise is solutions led, enterprise selling. Hp inc is a fantastic volume business. One printer a second. Theyre entirely different businesses. As you know, the pc business and the printing business has been very volatile over the last four years. The focus, the competitive sharpness, the ability to have the right capital structure for these two companies will help quite a bit. Listen, technology has been our industry goes through these big tectonic plate shifts every 10, 15 years. The last 5 years has been no exception. Its hard to forecast in markets that are as changing and as fast as ours. I think we have a good handle on this. You never say never. The economy can fall out of bed. Anything could happen. He would feel good about our product lineup, our services lineup, our go to market strengths which i think will stand us in good stead for fy16. Thats funny. We have you here. The Global Economy certainly a concern to many investors, whether it be china or europe. 65 of your sales are outside the u. S. What are you seeing now when it comes to china, meg, and then europe . China is a its a slowing economy from what we can tell. What i will say is were doing quite well in china now. You recall we announced a joint venture for our Enterprise Business with xinhua in china our server business is doing well there. Our networking business is in a resurgence. But the economy is tough there now. The other hot spot is russia. Hp has an exposure to russia. We have a big russia business between hp inc and what will become hewlettpackard enterprises. Europe is up and down. Some quarters you feel quite bullish, then you take a step back. I will say i think the strongest economy in europe from our perspective is the uk. The austerity work, now coming out of that, i think David Cameron and his government have done a remarkable job on setting that economy on the right foot. Jim has a question. Jim cramer here. Hey. When i looked at the analysts, i said enterprises seems okay, kind of the same as when we talked to you last. I was surprised that hp looks like it will be valued at level thats so dramatically lower than any other Hardware Company that im attracted to, particularly with what youre giving is a good balance sheet. Can you speak to the idea that maybe hp is not as bad as we thought it was about a year ago . Well, listen, i think one of the underlying thesis of this split was well be more focused on the businesses, but each company ought to trade at a slightly higher multiple at least over time when we continue to execute. The competitors for hewlettpackard enterprise trades the conglomerate discount is significant. When you take hp inc, the printing company, when you look at lexmark, they trade at higher multiples. So this may be correct at the time of the split or a few months after that. But we have to execute. The markets have to cooperate. We have to do our jobs. I think were excited about the possibility and the potential for Value Creation for shareholders. Meg fortune asked you what your point of pride was so far. And their quote was we have not done anything stupid in the last four years. Is that the standard by which you think you should be judged . That was a misquote. The question that was asked to me was are you going to make a large high multiple acquisition. And i said, listen, we have not done anything stupid in the last four years, i doubt well do something stupid in that realm in the next four years. That was specifically about big acquisitions. No. The thing im proudest about is reigniting the innovation engine at hp. Thats who we are as a company. Thats the legacy of the company. You look at our innovation pipeline and Enterprise Group, strategic Enterprise Services, were the second largest Security Company in the world. Very few people know that we have 5,000 Security Professionals that step into very difficult situations every day. On the hp inc side, we have sprout, our immersive computing offering, great laptops and the future on 3d print which we werent doing much on four years ago. So im much proudest about the innovation engine we reignited here and the fact that we reestablished trust with partners and customers. Meg, your Free Cash Flow is bounditiful, maybe less than what some analysts were expecting. I need to hear something about dividends. I totally understand the growth strategies, but are these something that a Retail Investor might want . While youre waiting for the companies to grow, youll give them good dividends. Yes what we said when we announced the split is the dividends of the two companies would be equal to or greater than the dividend of the company as a whole today. The higher Dividend Yield Company will be hp inc. They announced yesterday they would return cash to Share Holders between 50 to 70 of Free Cash Flow. A very healthy dividend. Hewlettpacka hewlettpackard enterprise will have about 400 million in dividends. Both of these companies will return cash to shareholders in the form of dividends and share repurchase. Meg, one of your frequent critics has been jim chanos, the noted short seller, he was guest last week on squawk box. He rebuts some of the assertions youre making. Listen to what he had to say last week, and then respond. Okay. Hewlettpackards basically a backwards looking company. Even with the new breakoffs . The breakoff is financial engineering. Its more of the same. Its more of the same nonsense. Tell me new product that hewlett has got that people are excited about. Cybersecurity . No. 3d printing . No. All these things that keep getting launched up in silicon valley, hewlettpackard misses. Meg . So, i just think hes wrong on that dimension. This split is not financial engineering. There may be value to shareholders embedded on that, but this is about defining the future and focus. We have announced a 3d Printing Technology thats ten times faster, higher quality, better cost. And that product comes out in 16. On the enterprise side, were leading in all flash away we have our next generation of servers. Got aruba, our Wireless Networking product. So i actually disagree with him. I think weve done a remarkable job of reigniting this innovation engine and bringing things to market that customers want. You can see the evidence in our results. The while revenue is still shrinking slightly, this is a big change from four years ago where it was close to high single digits. If we did not have the foreign currency impact we would be doing better. These big turnarounds take time. My view is that separate in these two companies will be the right thing for shareholders and the right thing for customers. And, you know, i think High Pressure in many respects is back and back in a healthy and good way for silicon valley. Finally, meg, in retrospect, you had nothing to do with this decision, its an issue in the president ial campaign. Was the compaq merger a mistake . Listen, what the compaq merger did was give us a bigger position in pcs and a bigger position in servers. It was very controversial at the time. Im not intimately familiar with what happened there, but im pleased by our position in servers. We have a great franchise in pcs. You never know about these things. My view is someone said earlier on your program that acquisitions have been a failure at hp and there certainly have been some problematic ones, but theres been some good ones 3com, aruba i think will be a big success. Its a mixed bag, but its not quite fair to say every acquisition has been a problem because theres been some very good ones. Thats true. That was a companydefining deal that was not a smaller one or a tuck in. That defined the future of the company. Absolutely. Ending november 1st when the split will take place. Meg will join us right here on november 2nd. I will. When the opening bell rings. Well see you then, meg. Thank you very much for joining us this morning. Appreciate it. All right. Thank you very much. Meg whitman, chairman and ceo of hewlettpackard, still one company right now. Busy morning. When we come back a closer look at the megamerger of the home of budweiser and imbev. Shares of ua outperforming nike. The feed meeting gets underway. C debate tonight. 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And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Just about seven minutes to the opening bell. Lets get cramers mad dash coast to coast here. I know you want to talk fedex. The guidance, the miss, some of fred smiths comments. Fred smith is an economist who runs a transport economy. Ive been watching the transport index thinking it was bottoming. Yesterday u. P. S. Was strong. The comments out of fedex, the core business is not that good. If you were the fed and watched what fred smith had to say, you have to say, geez, how much do we have to cut to make the core business better. I find it interesting to listen to this stuff about the fed. All i hear about is listen, we have to get started somewhere. Maybe you believe that. You know what . If you have to get started somewhere, you dont want to own a stock like fedex or maybe you dont want to own a lot of stocks. The fundamentals that are declining are indicative that theres slowing throughout the chain. A lot of stocks are cheap, but dont con fees things. Those who say we can have a fed hike, are they listening to people like fred smith . They dont bother to watch what companies are saying. This fedex is bad news. All of those who look at the gainers since the august lows, transports at the top of the list, gas prices down 4 in cpi, thats not enough . Look, the valuations are really amazing. Forever instance, the railroads. Union pacific, my favorite rail that trades at the lowest it has traded at in years. I totally get what youre saying which is the transports have been great on the rebound because oil has collapsed again. All im saying is when i read the part of the weakness that is fedex, i think the broader economy cant be that great. The fact is that if we just buy things on valuations, the transports remain the cheapest. Thats not the way people go. People want netflix. They wanted to own amazon. No one seems to want to buy value. I think a fed rate hike will not make people want to buy value any more than it is now. Well find out more tomorrow. We will get the opening bell in just about four and a half minutes. Dont go away. Here at td ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential pric