Demand outlet. We begin with a bshb inbev agre to a deal. Johnson johnson has a mixed quarter. And twitter raising their guidance for the Third Quarter but making job cuts official as well. First up, anheuser busch, inbev and miller agreeing in personal on a deal in which ab would inquire sab for 104 million. That would have about onethird of the global beer market. Its the biggest deal ever in consumer staples. The fifth biggest mma transaction in history. Well see if if happt happens. It probably is going to happen at this point. A couple weeks we will have a definitive agreement what they call in the uk a rule 2. 7 filing. Simply giving us more details on the deal. For most peoples purposes, this deal is done. Lets consider is a done deal in terms of papering. Well see from here some of the more specifics. This then starts a process by which both companies certainly will need to go about divesting assets around the globe. One of the keys, as our viewers know, jim and i talked about it a number of times, is the joint venture that sab and tap have in molson coors. They own 58 of sab. Its been a Way Investors played the likelihood of this deal from the beginning and the belief that tap will step up, buy the 58 that sab owns, even if they pay a 12 multiple. Thats one play you can see. You can see what that stock is doing. Weve been saying thats the best way. As for the other way, sab is up, abi looks to be up. You are creating a behemoth. A 250 billion market value. One of the Global Consumer companies in the world along with unilever, nestle, Procter Gamble will be abi, inbev, even though they will be divesting, again, the asset here in the u. S. , miller coors and most likely china. Though we dont know yet. This is big. I want to point out when you see the symbol t. A. P. Is up big, molson, remember when Constellation Brands a couple years ago was able to get modello corona, the stock was at 31. Today its at 137. Mexican beer far faster growing, keep in mind that that move by molson coors, you might want to sell it. Thats a huge overnight gain. Thats why ive been pushing that thing endlessly. They will own together eight o. The top ten brands in the world. The only other beer distributors that have a close to the share is carlsburg or heineken or tsingtao in china. These sales have been on decline. They remind me of carbonated soda. Just so were clear on this, ipa beer is a factor. Ipa is a factor. You mean craft beer . Craft beers are a factor. They could make it so you could argue there is real competition is craft beers matter. Yeah. Its not as though theyre getting it on the cheap. There was a lot of back and forth here. The principles obviously hammered this thing out in a room. We talked about the importance of the Santo Domingo family, alejandro Santo Domingo, how they would be involved in getting this done. No doubt that was a part of the process here involving brito. 44 pounds, not a bad price. For his part the guy over at isi, says he expects 60 cents a share in eps secretion at abi assuming a 2 billion in synergies, and a 4 financing rate. A all of which you can say well see, but they did do it after they bought bud riser. Anything that eliminates some of the competition, makes it so the price cutting is not as aggressive in the industry. Its a huge win for everybody in the segment. Everybody. Also a lesson weve been thinking about just imbnbev, th degree to which they come at the target and continue to come no matter how much it takes. They have patience. They are not perturbed by anything that may go on. The reason for timing here, we waited for this deal perhaps for deal as a possibility. Certainly the financing markets play an Important Role. They have to be emboldened or happy by yesterdays announc announceme announcement. The fact that deal can come and borrow 45 billion, not all investment grade. These guys are investment grade. They wont have a problem with the financing, but higher rates have to figure into why they moved, when they did. Its important for their strategy. Theres no doubt. The synergies start to run out on these deals, you have to do another deal, the bud deal is a number of years back at this point. I emailed you last night, i said is there a really a chance this deal wont get done . My sources in the beer industry, and theyre decent, theyre saying this is a must it has to happen. Everybody sees the decline. Im sorry, i know how this sounds, but not as popular as it once was in this country. You see it firsthand. Except in my house . Yes. Theres j j reporting a better than operating profit for q3. Ref news were shy, sales hurt by the stronger dollar. Also a 10 billion Share Buyback which was announced about 45 minutes ahead, that made some people nervous about the number. The stock jumped to 97 ahead. You trade in four hours on this j j, its just an annuity to lose money. This has been the most twisted. You dont know the tax rate. You dont know the revenues. You dont know the growth of individual products, yet will you buy the stock . Its back. Its new. Got the black band. I like it much more. Ive been wearing it at night. The wife love it. Its been a while since we had that on camera 1. Look at that black, is that cool . It is nice. Still doing its usual, which is great. Helpful. A blank screen. You can press it. Didnt mean to interrupt you on Johnson Johnson. I had my rap on j j, you went to the watch. The black screen, the endless black hole on your wrist sunk me in. Can i go over the domestic semis or home runs. International sales, 2. 1. Heres the key number why the stock is down. Tax rate. 20 . I was looking for 24 . J j once again showing that youre not getting growth the way you used to. The quality of earnings is strained . Bingo. You couldnt be more wrigright. The journal with a negative piece on lilly saying this cardio trial they ended yesterday means their premium to merck and pfizer could come in a bit. That story was wrong. Why you own lilly is because they have the alzheimers drug. Theres not anyone in the profession who says it is for real. And they have the drug that helps your heart. This cardiovascular thing, analysts are making a lot of it. The government was happy with regenron and amgen doing their cholesterol thing. This alzheimers drug and the diabetes drug, they may be the two biggest blockbusters between now and 2020. The 10 billion buyback, it sounds like a big number. You have to put it in some perspective. Its a yawn. Its a yawn not only because i had to stay up to watch the mets win, but its another sign that we dont want we dont want tuna with good taste. We want good tasting tuna. Then theres twitter confirming plans on cutting up to 8 of its work force. The company says it expects Third Quarter results to come in at the high end above its pry forecast, both ebita on revenue. Jack dorsey with a letter to the staff saying we have made an extremely tough decision. We plan to part ways with up to 336 people across the company. This is not easy but its right. The world needs a strong twitter, this is another step to get there. I love this. I dont like job cuts, dont get me wrong. People lost their job today. I think twitter was bloated. I wanted revenues up, its been suffering, but i have to tell you this is the first sign that twitter recognizes that you cant just, you know, be part of some sort of club where it doesnt matter how you do. Look. They can grow. The new products i like very much. A lot of people were at that company who may not have been doing much or involved in different initiatives that didnt work. Bob peck has a nice chart out today. Revenue per employee, lower than google, lower than facebook, ebita, 83 versus google 436. I know peck must love the streamlining. Twitter is now showing that it was previously run haphazardly and now laser focused. I would not rule this company out. Stock was higher. Sounded more constructive on twitter than you have been in some time. Do you look at it. I look at it every day. Its better. Ive been periscoping. Im periscoping. Really. Ive been running silent and running deep. How is that working out . Not bad. No . A little pregame periscope. Ill do one today. I noticed you have a new hashtag. I do this thing for the street. Its so hard to ask individual stock questions and limit it. I answer them on video, im trying to do more of what my daughter want the me to do, the kinder, gentler jim. I put emojis, like sun glass faces, im periscoping today as i get spray painted, earl schibe like. Youre getting spray painted . You guys are made up. Im spray painted. Get the little blowtorch out. What happens with me, i have that krylon effect. Cramer. I should have my own brand. Cramer. Cramer. Will keep you looking like a lemon statue. A tough start for a pair of airlines. Later on, dell and emcs big tech deal and what it means for vmware. Look at the futures. We see some red arrows in the premarket. More squawk on the street from post nine. Hi watson. Annabelle, your birthday is tomorrow. Im turning seven. What did you ask for . A princess. And a pony. You like things that begin with p. I like pink frosting too. Will you have a cake . Yeah. I was too sick to have one last year. The data your doctor shared shows you are healthy. Are you a doctor . No. I help doctors identify cancer treatments. I want to be a doctor someday. I can help with that too. Watson, i like you. Yesterday at the big board here, squawk box rang the closing bell to celebrate the shows 20th anniversary. On thursday squawk will celebrate with a special show, including a Live Audience on the plaza outside the studio on 6th avenue and 51st street. Theyve been giving you details on how to get tickets for that. David, jim and i will join them for some part of the morning before we get here. I think you guys were on squawk box for a long time. Yeah, i do recollect about a decade of my life. Kind of did that. Look, really got everybody up there. They did. Except for some of us. Yes. Happy to have been part of the history. Absolutely. Very happy to be here every morning. Are you . Yes. Absolutely, right . Yes. Wrufrnlg were you happy to be in the stand last night . Yes. Were you saying something about chase utley last night. I would like to see the crowd more creative rather than utley uh giving fans the room to boo. I watched the tape 470 times to find a good excuse. He didnt turn the right way. See, utley did not mean to watch closely. Oh, thank you, guys, for that. Beautiful. Granderson. Put us ahead there, 43. Yeah. Tworun home run to left field. Do we have the cespedes shot . That was that was magic. This was magic. This is magic . This is magic. This is magic. That was crushed. Only question in my mind, sometimes you wonder is it going to leave the stadium . Is this actually going to leave the structure . The offense last night was crazy. First postseason win at citi field. The cubs could clinch for the first time at wrigley tonight. I love baseball this year. Really. Very excited. Very exciting. Congratulations to you not yet. Not yet. When you will you even say youre jinxed when you win the world series . The world series, were good. One more, than four more, than for more. We had a couple of airline downgrades. Jetblue cut from overweight to neutral because of weak industry pricing. American lowered from buy to hold due to fair competition with lowcost carriers. I think goldman a few days ago downgraded as well. I feel like we had that good number early this week from united, continental, delta coming up. We are the most overbought we have been all year. You get the s p oscillator plus 10. I cant recall when it was plus 10 and you wanted to buy stocks. You have to let things come in i dont think selling the airlines here makes sense. Im not going there. People wonder if october, as good as its been, has been led by the likes of a ge or if its all wynn, chesapeake and rig . Theres a sense that the commodity producers cut back with the exception of iron. We got the numbers out of china which shows a dramatic drop in imports. I will rock your world about china. Car sales were up 3 in china for year over year. There were some purchase tax cuts. But the china consumer, with that number, the export number and this number, you put that together, what starbucks is saying, nike is saying, apple, the consumer is bottoming in china. The car sales number is good. I remember when you said europe was bottoming, i looked at you like you were crazy. You laughed. You were right. You laughed at the apple watch. Doesnt mean you will be right this time but im listening closely. I think you should. I am. As long as you dont call me chase. Well get cramers mad dash. Look at the premarket on this tuesday. More squawk on the street back in a minute. Its more than the cloud. Its security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. Time for our mad dash for the morning on this tuesday. Always like to set the date and time. About seven minutes to the opening bell, where we headed . Last night sap reported a fabulous number. Cloud, unbelievably good. Just the regular just the regular business, consulting business fantastic. This is a major move. I hope Bill Mcdermott is feeling well. Sales force will be carried on by this, too. Dont chase any stock, but this was a good sign. Some people were thinking after oracle reported not that great a number, sap may not be doing well. Accentra doing well and cloud force. The stock a point from its high. What do you think . Impressive. I ha why have you not mentioned oracle one way or the other . Competition. Any time you say theyre losing business, they will document theyre not. I decided not to throw that in there so i dont get run over by a yacht in my whaler. The oils and industrials are behind this rally. Otis elevator, this is a smart call. United technologies has been going up in part because people are just loving ge. And, you know, not an expensive stock, but otis is something to worry about because china is not doing a lot of building. Its a consumer led recovery like the party wanted this. The party wanted this. The party gets it. Speaking of yachts, puts me in mind of utxs former ceo, how is the new guy doing . Hes not a yachter. Hes fabulous. The new guy is really a United Technologies guy. A tough, hard line manager who is really, i think, reinstilling the old disminute. Hes terrific. If this stock gets hit, youll want to get in it. We are not hes not boating. No. Hes not boating. He is making engines. Hes doing well with otis. I got to tell you, air conditioning good. Hvac, but he got dealt a hand of weak china. That matters. They have all the elevators in the world in china otis is a tough business. We dont build a lot of buildings that need huge elevators and its the maintenance that matters. The razor blade part of the business. Oh, my. Good business. Not so much for gillette anymore. Procter sneaked up from 70 to 75. Yeah. We have so many other stocks to even just talk about that we have not gotten to. Williams sonoma, restoration hardware, have you seen the video of the new chicago store . No. Best trailer ive seen. Opening bell after this. My name is peter tran. Im a gas service representative. Ive been with pg e nine years. As an employee of pg e you always put your best foot forward to provide reliable and safe service and be able to help the community. We always have the safety of our customers and the community in mind. My family is in oakland, my wifes family is in oakland so this is home to us. Being able to work in the community that i grew up in, customers feel like friends, neighbors and it makes it a little bit more special. Together, were building a better california. We heard you got a job as a developer its official, i work for ge what . Wow. Yeah okay. Guys, ill be writing a new language for machines so planes, trains, even hospitals can work better. Oh sorry, i was trying to put it away. Got it on the cake. So youre going to work on a train . Not on a train. On trains youre not gonna develop stuff anymore . No i am. Do you know what ge is . Youre watching cnbcs squawk on the street. The opening bell in just about 45 seconds. Premarket has been decidedly weak on some less than satisfying import export data out of china. Maybe the volkswagen is beginning to have an effect in germany. Its interesting. Ive been waiting for that. I think there are other Car Companies that are the beneficiaries. They had 11 million cars that sold. They wont sell as many. People have to understand the market has been up day after day after day. When it gets this frothy, you cant come in there and start buying. Its a real mistake. J j the big Earnings Release this morning but it will heat up tonight with jpmorgan, csx, intel and others. Theres the opening bell. A look at s p at the bottom of your screen. At the big screen, eros, holding its investor day. We will talk to the chairman on squawk alley. And del restaurants on the s p. A division that had been leading del frisco, the grill down 3. 5 . Fewer private dining events at the double eagle. You know, when i go to del frisco, it is always jammed, maybe when its jammed dont read through the national numbers. Theres a lot of talk about beef price coming way down. So the gross margin should improve. But capital grill put up fantastic numbers on the high end for darden. Be careful. I thought del frisco would have had a good market, they did not. Im seeing some green. We have not talked about oil and that big reversal yesterday. Is that an impact . Will that play out daytoday . If you chart oil and the chinese stock market, the shanghai, chart ge, the industrials, oil leads everything. So, if oil goes down, we go down. That seems ridiculous for those of us who recognize when oil goes down, people have more money. When oil goes down, forget about it, that day is down. The iea looking for more of a slowdown in global demand, even as we start using more of it in the u. S. , we start driving more miles. They do good work. But the work im doing showing a pretty dramatic slowing in the in places that were drilling that were marginal. Interesting how much they come down. The rig count coming down so fast. You saw some canadian shale numbers bad. We will be producing i believe 1 million fewer Barrels Per Day this time next year. Reuters has a piece saying a lot of players are locking in at 50 to produce more in 16 and 1 17, which means the rally is suspect. I think reuters is