Pounds under pressure although german Business Sentiment did hit a tenyear high. The samsung saga getting worse. Galaxy note 7 smartphones permanently discontinued. How are the other players like apple being impacted . Well have the latest from twitter. Well give you the latest on the continued talks with salesforce. Alcoa shares falling this morning. Coming up we dig into that report and talk to Klaus Kleinfeld in a cnbc exclusive. First up, samsung has permanently halted production of its troubled galaxy note 7 smartphone. The recall could cost as much as 17 billion. Apple is poised to open at its highest level since december of last year. The stock is up 21 in the past three months. Were now on to a cycle where the replacement phones are catching fire. The company says if you have them, turn them off and were simply not going to make them anymore. I believe the company told people in china that it was the batteries that were the issue. They tried to make a little difference about the idea that the two batteries were very close to each other, it was a wiring problem. You cant fix it. Thats the way it is. Dont forget, this is a company that had 22 share. Much bigger share than apple. And i dont know whats going to happen, but i will give you a little watch word. When you fly, as i did, gentlemen. Yes, sir. If you see something, say something. In other words, if the passenger next to me pulls out one of these phones, say something. If the tsa lets these go through, its a travesty. Theres only two and a half million out there. Thats a number they came up with. Tsa, please, stop it. Stop this phone from coming on our damn planes this is all we looked at. Everybody looked at everybody elses phone. I looked at the person next to me, looked at the person next to me. See something, say something. Try to get them to not put their phone on. Try. This is like a shoe bomber. Enough i assume youre suggesting this now opens them up to all kinds of i think it opens you up to being afraid to fly. I mean ive got to tell you, everybody looked at everybody else. When you heard how many times did they tell you, please, do not put this thing on and that you looked. You just looked. You wanted to see who had what. Ive got to tell you how many times did they . Youve flown across the country. Three times. Three times i heard the stewardess say yesterday. The samsung phone. Yes. And the pilot warned us before we took off. I want to make sure that everybody has it off. How can it get through the tsa . If its a galaxy and not the actual its a samsung they took away my water bottle. Well, theres no more galaxy note 7s, theyre recalling all of them, jim. How do we know . People cant live without their phones. Well, we heard from ralph della vega saying i cant remember anything like this in my career. Take a listen to what the head of verizon said. This is by far the biggest concern ive seen in cell phones during my tenure. And i think theyre a little surprised that the fix didnt fix things. So its a major black eye for them, but at the end of the day, them recov theyll recover. Yeah. They didnt want to talk up apple. Go behind the scene on them. Before this theyre saying were equal opportunity, but thats because they dont want the apple to have the edge. Theyre not the First Company to have a significant recall. Its going to cost them a great deal of money. The stock price is down 8 . Elliott chose a bad time to get in and start being an activist at samsung potentially. But these things do pass, to mr. Mcadams point. Over time they cost a good amount of money and then you move on. I think thats right, but i think in the interim i was surprised and fearful by how often they mention it on every plane. They put the fear of god in you. I mean i checked everybody next to me. I looked at the guy next to me, i thanked g eed god it was an a. I flew six planes. And you just felt, oh, my god, please, i hope dthey dont have the galaxy. Remember, you plug in phones. They scared me. Look, i came in does it change the way you think about apple or Android Google . The fact is, is that their share is remarkable how big samsung is. But not in china. Theyre number five and falling fast. Jack moore, who works with me, chief investment strategist at the street put out a memo how samsung rushed ever developer, to try ten days ahead of apple. I just think that the tsa is being very irresponsible. You cannot have this be a voluntary thing where they check you off where you come in, they say it when you come on, they say it when youre in line, the pilot says it. It is ridiculous that its a voluntary thing. When so many people warn you. You pray for apple. Fly safe, jim. You just want apple. Youre pack now, its okay. I have an apple, youre okay. Youre safe at the desk. The guy next to me had a lenovo and he had an apple. I also had like a surgical mask just i carried a surgical mask. No, you didnt. Oh, please. Why do you not believe me . What is going on with you . Because i dont take any chances. Really . No you have more chance of walking out on broadway and getting hit by a bus. Youre a dreeamer. Ive got my surgical mask. I play for keeps. I also had gloves in case. Hes got actual gloves. Look at this. All right. You better trust me. This is true. What in the world do you use these for . Okay. Lets move on to twitter. I have it this morning, if we can. Of course jim was out at dreamforce last week with salesforce. Lets go back, it was september 23rd, we reported twitter talking to both salesforce and google. The stock ran up to the mid20s eventually. It also then entertained at least in conversations with disney and microsoft. I can confirm as well. And then google stepped aside. Disney didnt really engage too much and neither did microsoft. But the talks with salesforce continue. And people close to the situation indicate, yeah, salesforce is still engaging, talking to twitter about a potential deal. The question is will they get it done given all the heat they got from their own shareholders, but twitters stock price has adjusted dramatically over the last few days on all the reports of all the companies theyre no longer talking to. And so, jim, the question becomes what would a price be that salesforce feels like it could get a good deal and twitters board feels like it would be doing the right thing. The board im told is somewhat split on those. Some believe a sale is the right thing right now, given the pressures that the company in general on its top line, the morale, a lot of different things. And so it is interesting here because you spent a lot of time out there, which i know with salesforce management, shareholders probably as well, you know, whats the right price they could pay without completely ticking off their shareholder base, at the same time what is a price twitters board feels like it could accept . One would expect theyd issue 19. 9 or less of their overall stock. That would still equate to about 10 billion of the consideration were they do go 22 or 22. 50. Total guess, total guess on my part. What do you think . They will not pay 29, which was the price tag. Thats why google dropped out. I dont think thats the price tag anymore, though. No. I think that its not so much the price tag as a partner. They need to find a deeppocketed partner in order to please t. Row and fidelity. They will sell the stock aggressively unless they have a deeppocketed partner and theres a big discount to 29. Whats that mean . Someone that can come in and offset the cost of this thing. Like a 3g situation. Okay. Where they have other people involved. They need someone else to be involved to be able to prove that theyre not willing that they dont want to shoulder all the losses, twoyear comeback. Right. Everybody goes. Management, you mean. Everybody gets why just management . Everybody. What happened to the argument that only a founder can come in and change . Remember that whole thing. You know, this is because salesforce does not want this to be a trashtalking place. I cannot tell you, not that anybody believes the trash talkers on twitter, they are very concerned that greshams law takes over. Theres only been 9 Million People added during 150 Million People added during the time dorsey took charge. They find that irresponsible because they fired so many developers. They have cut back. The two terms you hear are yahoo and myspace. Again, no one believes that. I dont care anymore whether people believe it. I dont care because i know you think its not ridiculous . I would never compare the two. To that point they will at this point theyre either going to try to get something done with salesforce in the very near term right. Or this thing is finally over and well see what the october 27th is when we get earnings from twitter. Deutsche bank said they might have a good quarter. Again, myspace, disastrous Business Model. Yahoo no developers. Versus what could be the finest place to mine data using Artificial Intelligence thats left after facebook, totally defensive. Its a way to be able to offer a onestop shop to a customer who wants to try to figure out what people want because its natural and raw. They feel possibly you could triple the number of people on it by changing the interface and making it so there would be a service so people who want to be in there are not trashed consistently so that they want to continue to do it. They mention that over and over and over again. Civility, civility. They want facebooklike civility. If what youre saying is all true, jim, why is the market not allocating capital efficiently here . If its so valuable . Because okay, thats a great question. And the answer is, is that salesforce had a ramp to go from 10 billion to 20 billion. And there is no doubt without a deeppocketed partner that ramp is derailed for two years. So you have two years. It will be two years to fix. Two years to fix twitter . Twitter, yes. It would derail. Its about the projection. Salesforce doesnt want to do anything to hurt its stock. I know people feel it doesnt sound likely to me they get to a deal unless twitter is willing to accept a big, big reduction in what twitter wants. Deep pocketed partner. Go to fidelity, go to t. Row, say we hear you, we are not going to lose two years of our plan and it gets done. Short of those factors and you have to get rid of the trash they want civility. Salesforce wants civility. Twitter doesnt care and they refuse to develop anything that keeps things going. Dont believe me, i dont really care. I believe you. I dont really care. Ive been listening to you from the very first time you mentioned data and Customer Service to me. And i have been 100 right. You have been. But you know what, dont believe me. I dont care. I do not play for dinner, okay . I dont play for dinner. By the way, i have that surgical mask people are asking why we didnt help you find it. Ill have it after the break. But i tell you if i hear one more person that works at an airline say please, please turn off your samsung, please. Okay, i took my shoes off, i removed my belt, i was stopped because i have cuff links, but no, no, youre allowed to have that all you want . Please dont turn it on. Please oh, nice, please dont turn it up. Alcoa out with its final earnings before splitting into two pieces. Klaus kleinfeld, well talk to him. Later on, barry diller with his take on an everchanging media landscape. Another look at the premarket on this tuesday. Well get to oil and the tenyear. What powers the Digital World . Communication. Like centurylinks Broadband Network that gives 35,000 fans a cutting edge game experience. Or the network that keeps a leading hotel chains guests connected at work, and at play. Or the it platform that powers millions of ecards every day for one of the largest greeting card companies. Businesses count on communication, and communication counts on centurylink. We started the morning with a discussion about the Samsung Galaxy note 7. Jim believes its a liability on airplanes. Tsa. You were not joking about the mask. If the guy had one next to me, who knows what kind of plastic what is in that. That is not just a regular fire. I mean, you know, plastic when it burns is not is a little more toxic. Hey, thats not like its not kingsfords. I wouldnt put this on if it was a kingsford. Jim, lets get to alcoa this morning, down in the premarket. Results did miss forecasts. The company citing the impact of curtailed and closed operations as well as pricing pressures. Split into two, scheduled to become effective before the market opened on november 1st. Stay tuned for an interview with Klaus Kleinfeld later on this hour. I wish the company wouldnt come out and say, listen, better than expected. Theres a lot line items that are not better than expected. I do see, for instance, aerospace down 4 , commercial transportation down 2 , industrial pilots down 7 , packaging down 3 . This is a subsequent shal change. Primary metals up 3 . Thats not bad. But this is a transition quarter. We have to find out how much of the costs are really up how much of the revenue shortfall is because of shutting of plants. How much of the cost is because of the split. Aerospace is a problem, but we heard that from honeywell and from United Technologies. So aerospace is weakness. But you know what, the company is kind of theres some headwinds. Its somewhat consistent with the downbeat nature of the company in the last quarter. Interesting. You mentioned honeywell, utx up, and yet caterpillar upgraded today at goldman. So industrials, is there a split personality within the group . I think caterpillar has fundamentally changed its Business Model over the last year. I think they have gotten control or figured out the supply chain and Dealer Network, which had been very renegade. I also feel like theres mining orders that are finally coming through. That china has bottomed. The production per machine, the cost per machine is radically changed and the company, therefore, can make a lot more money with less. The upgrade seems a little late to me. You need to see the baltic freight go over 1,000, its in the 900s. I think china has turned industrial questions last week with honeywell and ppg. Ppg was paint, honeywell was aero. Its the same story with alcoa. United technologies really screwed things up with the lateness of their product. You know, with the gear turbo fan, which was so important to their profitability. Greg hayes made that really clear. It hurt everybody else and hurt alcoa, but i think that we can find some good things in alcoa. I was disappointed. A small position, hope it gets bigger. Three for one split so it stays in the s p. I thought the commodity side wasnt as bad. I like the cat coal because i do think its the cost savings. Doug has done a good job. Well talk to klaus in a few moments. Well get cramers mad dash, fake another look at the premarket. More squawk on the street from nyc is straight ahead. From long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov sprint . Im hearing good things about the network. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save money on your phone bill, invest it in your small business. Wouldnt you love more customers . I would definitely love some new customers. Sprint will help you add customers and cut your costs. Switch your business to sprint and save 50 on most current verizon, at t and tmobile rates. Dont let a 1 difference cost you twice as much. Whoooo for people with hearing loss, visit sprintrelay. Com. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley lets get to a mad dash this morning. Weve got about seven minutes before the opening bell. We want to talk about st. Jude here. Abbott in a deal to acquire st. Jude in cash and stock. This morning or late yesterday, st. Jude issuing an alert, jim, saying premature battery depletion has been seen in a small number or percentage at least of implantable cardio verter defibrillators and now analysts are starting to weigh in. The market is concerned. The spread of what the deal is worth has opened up a great deal. Two deaths, 47 dizziness, possibly 350,000 people. Obviously thats the universe. I think its going to be far less than that. Thei issue here is they have to replace it. If its implantable, obviously thats not something that you expected. Now, this is a very responsible company and they immediately as soon as theres a death because of this, they have to put out this alert. So my question to you, david, is why wouldnt you readjust price . Well, you know, you have to wait and see what the impact is. Youve got a lot of analysts starting to weigh in. For example, im reading a report here that says they had a chance to speak to a number of electrophysiologists regarding the issue. Both physicians felt it would have a modest negative impact on the market share because some physicians will be hesitant to implant these devices and be upset about disruption. That becomes the question. How much. And then if youre in a position if youre abbott, do you really want to fight that battle. Youre also fighting on another front with alear trying to get out of that deal. The spread is opening up on this deal this morning, but the early reports are most likely not going to be something that changes the terms. But these things are fluid. It was bad. What they did was definitely not a good situation with the batteries. Different from samsung, which was a wiring issue. This is actual battery issue. But the one thing i would tell you, david, is that this company is already subjected remember there was a short report on them saying that it could be hacked. So i mean if they didnt and that didnt break the deal, although i think that frankly there was some of that. But this is something that i think abbott will have to take a hard look because of the share that you just mentioned because this is a very competitive battle. Who knows whether people will say i dont know whether i have a good st. Jude or dont have a good st. Jude and thats part of the issue. Well be watching the shares of st. Jude and a lot of the others when we get the opening bell in a few minutes from now. Stay with us on