Details, talk about what it means for the industry and business in europe. Shares of pepsico on the move after beating street expectation. Were going to talk to the companys cfo Hugh Johnston in a few moments. Expecting fireworks today on capitol hill. Fbi director james comey set to testify about the Hillary Clinton email scandal. We will bring it live in whitewave rising in the premarket. The organic foods makers agreeing to be acquired by danone for 10 billion in cash. The deal values whitewave known for brands like silk and horizon organic at 6 25 a share. Danone says the merger will double the size of the u. S. Business and we will talk to the ceos of both companies tomorrow here on squawk on the street. North america now will be about 22 of their portfolio from 12 about now. A big bet on america. An important deal for danone. Of course as you say, getting larger in the u. S. Whitewave has been no stranger to those who believed it would be part of food consolidation and as sara eisen told us a number of years ago. Wow. As one of the big growing Food Companies and you dont see a lot of growth in food these days, and so the multiple here, fairly high, some would say at as much as 21 times forward ebitda. Get a load of that. At the same time, i will tell you, there are some shareholders of whitewave who are hoping actually for an even higher price than the 56. 25 were talking about all in cash. The deal will be almost off the bat. Danone, will they borrow at negative rates to pay for this . If they arent theyre going to come awfully lost close. The cost to capital will be virtually nil that helps make any deal acreed different. Theyre citing 300 million in synergy which will have the effect of lowering at least the effect of multiple that theyre paying for that ebitda that were talking about. But again, it is growing. Sara, no shortage of potential suitors here at least some have thought about. Ive been trying to understand, though, whether there was a real process run. For those who might be looking for an opportunity to buy whitewave right now thinking maybe somebody will come over the top, its hard, i dont have a lot of great reporting to tell you about at this point, they did only sign on the danone side about a month ago. People close to the situation indicate theyve been talking seriously lets call it for two months. One would imagine you can talk for a few weeks and then you get really serious and start to look at information that is not made public by signing the mda. Its unclear whether or not they really entertained other potential buyers. Whether its General Mills. Kellogg. Kellogg or pepsi. But Goldman Sachs and their bankers are not exactly strangers to the idea to make sure to get a market check. We will have more on that. There is a hope amongst some of the large shareholders and is some have been active in the stock including the guys at Hudson Capital who think you know what, maybe we could have done even better although the premium is not bad given that this thing has always had a takeover premium in it to a certain extent once it got out of spin off jail. Really been one of the big winners among spinoffs from dean foods. The dwarfs what dean foods is now in size. The stock is trading as though theyre leaving open the possibility of another bid. Trading tight or above in the premarket what the bid value is. And i think maybe if you think its worth more its also because of scarety value. Not just about multiples of cash flow and earnings. There arent these many established healthier Food Companies. In a postbrexit era two of the largest deals have involved food in hershey and this. The fifth biggest ever by a European Company in the consumer staple space. Those looking for a sudden death in m a, been disappointed so far. Yeah. I mean i think a part of it, obviously Mondelez Hershey well see if anything does come to pass. It would seem theres a high hurdle to seeing a deal ever, but cheap borrowing has been one even cheaper has been one of effect of brexit and certainly the fact that danone can borrow such low rates has to help not that they wouldnt have done this and couldnt have potentially borrowed at fairly low rates. The helps the look of what youre paying. Something else going on here which is emblematic of whats happening in the food and Beverage Industry the giant Companies Just cannot find top line growth and they have not been able to innovate themselves enough to keep up with the consumer, where the consumer has gone, to plantbased dairy, what whitewave does, and some of the organic brands and that is why, thank you for the credit, i mean these brand have been scooped up. Annies got bought by General Mills, bolder brands got bought there arent that many left. A lot of the focus will turn to haynes celestial. And rumored lately as well as potentially wasnt seen as a pure play like whitewave which is so focused on dairy and thats why a lot of people, including barclays say that danone is such a good fit as opposed to a General Mills or kellogg, because it has the dairy pedigree, the Worlds Largest yogurt maker and a good fit and the International Scope and that was always a struggle for whitewave. It didnt have the scale to go internationally. Think about that dynamic is Like Pharmaceuticals biotech. The big european and American Pharmaceuticals companies have no growth and they have to buy the innovative fastgrowing brands which we saw yesterday with sanofi and medivation. As we watch the stock price indicated above where the deal is, keep in mind the break fee equals about 1. 75 a share. More or less typical about a 3 overall, 310 million the actual number. That gets added into anything that any potential acquirer here who would want to go over the top has to pay. Well see. You can see the positive reaction in danone shares. That becomes important. Even with that fairly high multiple that theyre paying, their shareholders at least rewarding them this morning. Overall, multiples we should point out are high in the group. General mills which is not growing fast at all to your point about top line growth or lack thereof, has an alltime high multiple high teens. They pay high dividends and in this yield starved world, Consumer Staples have been bid up. Which is why a lot of people say youre going to start to see the deals because they have the stock to be able to do that. Finally, greg engles will join the board of danone and big payday for him. 400 million. As he will join the board. We know who is smiling this morning, a guy who normally sits here calling for this for, i dont know how long. Right. Although a lot of people said its so expensive, whos going to buy it. Now we know. All right. Well see the gentleman here tomorrow. Ahead of tomorrows key employment report the Government Data which was out tomorrow morning, we did get the adp private sector reporting showing 172,000 jobs were added in june. That beat expectations, payroll gains for may were revised downward by 5,000 to 168,000. Meantime initial jobless claims that came in well below forecast, down last week by 16,000. To 254,000. So the expectation is well see a better jobs report, 170,000 is the consensus estimate, carl. Two days after recommending that Hillary Clinton should not be charged for her handling of classified email, james comey bracing for the capitol hill hot seat. In about an hour from now, the fbi director set to face a grilg from the House Oversight committee and Hampton Pearson is on capitol hill to help set that up. Good morning, hampton. Hi, carl. Right you are. The fbi director is expected to face tough questions from republicans on the House Oversight committee about his basic decision and recommendation not to recommend criminal charges against Hillary Clinton for her use of a private email server while secretary of state. Now, joining the director at the witness table will be the state Department Inspector general, steve linick, and also representing the Intelligence CommunityInspector General charles mccullough, the two government trouble shooters who basically began the clinton email probe. The fbi director will face questions from House Republicans about his calling mrs. Clintons actions, quote, extremely careless but not rising to the level of gross negligence as far as her handling of emails and classified materials. The oversight chairman Jason Chaffetz wants to ask the director about what looks like a double standard where Hillary Clinton is concerned. It does appear, based on the fact pattern laid out by the director, that if you had done those things, you would probably be in handcuffs. You would probably be going to jail. And probably should based on statutes. So we want to ask him about that. Now late yesterday the attorney general Loretta Lynch officially closed the investigation, accepting the recommendations of the fbi director that no charges be brought against any individuals. The committee in light of that, may ask for the release of more documents in what was a nearly yearlong probe. Carl . Hampton, we will talk to you soon. Thank you very much. And meanwhile, in washington, d. D. C. , presumptive nominee donald trump is meeting with congressional republicans. Larry kudlow is at that meeting and going to join us live from washington after it ends. Up next pepsico poised to open. Well talk to the cfo and vice chairman hue johnston in a live and exclusive interview. More squawk on the street coming from post nine on the New York Stock Exchange when we return. Ader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. But we mean so much more. We mean how can we help . We mean what can we do . We mean its our turn. To do our part. To serve you, for all youve done to serve us. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Mccullough. Pepsico kicking off earnings season out with secondquarter results that beat both on the top and bottom lines. The company also raised its profit forecast and the stock is higher in the premarket near an alltime high. Joining us now from purchase, new york, hue johnston the fco and vice chairman and also a member of the global council. Great to be with you this morning. Tell us how you manage to achieve 3. 3 organic Revenue Growth in what they called an incredibly volatile Macro Economic environment. I think thats right. Its a volatile environment and we assume thats going to be the case Going Forward. What you saw was solid Revenue Growth and very strong bottom line driven by two things. Number one, our Revenue Growth is really being fueled by innovation, which is a product of the investments weve made in r d and doubled r d over the last five years, and the investments weve made in commercializing new products. Our innovation right now couldnt be stronger and combine that with the ongoing terrific cost control youre getting consistent results that investors seem to be pleased with. North america continues to be strong and fritolay as well, but the Beverage Business continues to be a weak spot. Whats the plan for turning it around . Well, i think overall, in benchg beverages were doing pretty well. 2 volume growth around the world. North america with 1 revenue and 6 profit. Obviously the profit was pretty good. Revenue, we would obviously like that to be a little bit stronger, but frankly, with the late start to the summer this year, i think youre going to see better beverage results in the balance of the year. You know, even more importantly, is, again, ill take us back to all of the innovation that weve got coming out, whether its mountain dew black label, aquafina, naked cold press, propel fitness water, we have a stream of innovation that will continue to drive the top line because consumers are willing to pay. About what diet pepsi, taking out the aspertain and now going back in, when do the diet sales come back and explain the uturn on ingredients. Yeah. Were going to offer both. What weve done is listened to the consumer. Some consumers dont want aspartame and we have a product for them. Some say i love my old diet pepsi and we have a product for them as well. Were giving the Consumer Choice which what is pepsico has always been about. To tell you the truth the conversation i think is less about csds or die et sodas. Its about the broader beverage category and if you look at the broad selection of offerings we have, whether its gatorade or naked or trop can na, we have such a good variety of carbonated and noncarbonated products that enables us to be the leader in north america that wherever the consumer wants to go we have a category leading or a category number two Product Available for them and were innovating to meet their needs. Speaking of adding categories as you know whitewave was scooped up by danone. Did you look at this at all . Well, as you know, we never talk about any individual company. What i would tell you broadly is, and you made a comment earlier i think was particularly insightful, a lot of food and Beverage Companies are struggle fog are growth and trying to reshape their portfolios to hit their expectation. Over the last ten years weve reshaped our portfolio already to be consistent with expectation whether it was acquiring quaker or tropicana or gatorade or izzy or naked. So we actually are very happy with where the portfolio sits right now, and its capable of generating the growth that weve committed to externally. I think a lot of other companies are operating a bit more from a position of defense. Regarding m a more broadly, i think its fair to say we look at basically everything. We look at every opportunity thats out there and if we dont buy it, its because we didnt want it. I would say that across every Single Company thats out there. So i think were in a position right now where we have one criteria, create value for shareholders and well do a deal if its going to create value but right now, we think we have the portfolio right and we are operating from a position of strength and dont feel the need to do anything. Well, thats interesting. On that note was going to ask about hershey, which is in play right now with mondelez making a bid. Im wondering if you would be looking to add more to the snack side or to the beverage side at this point . Yeah. Again, we have a set of criteria strategically that take us to higher growth in more attractive areas. We have a set of criteria financially around getting good returns and getting acree shun off of deals we look to dealdo. We dont feel pressured to do anything. Weve told investors we expect to do tuckin acquisitions and thats a stranggy i think were going to continue with. Want to ask about the International Backdrop which has been tough. As you mentioned specifically russia where you have a good chunk of sales. The uk. Clearly the british pound plunging is going to impact results later on. And latin america which continues to be a headache. Yeah. As we look around the world, obviously the world is a volatile place right now, but with the geographic portfolio we have, you know, for brazil, faces challenges, mexico, russia which faces challenge, we have an india. We couldo have a nicely balanced portfolio. In terms of the uk and western europe its so early in terms of brexit. Its difficult to ascertain, what, if anything thats going to mean. From our perspective bus because we tend to produce locally farm to shelf changes in trade rules arent likely to have an impact on us. Because its a developed market i think consumers will pay for the innovation we offer as we bring them products and exciting new brand campaigns. Last time we talked to you just joined the twitter board, now that you have been on there and gone to a meeting what do you think of jack dorsey one year into his return as ceo . Well, im not really here to talk about twitter but i will tell you, i think its an absolutely dynamite platform and we have a great Leadership Team throughout led by jack. Im happier to have joined twitter than i was when i first joined. Fair enough. Thank you, hugh. Good to see you on the pepsi earnings. Hugh johnston cfo and vice chairman of pepsico. When we come back, the ekts strategist in how to play the region in light of the brexit fallout. Tight range. Still more squawk on the street from the nyse is straight ahead. Hello prashant bhuyan. Cofounder of the Fintech Services startup. Hello watson. Your analysis of social media and conversations on various trading floors, helps us uncover insights. Insights that h