Like well get a positive open, but things reversed yesterday. Financials in particular. Europe you ask, jim, you didnt, but ill show it to you. All five of the big markets. You can see spain is the only loser thus far this morning. Continued strength in the euro markets. Eurozone look i think that draghi im not kidding, no conspiracy theory, keeping the euro lower. Theyre not happy with our president. A lot of unhappiness in a lot of places. Our road map starts with President Trump, as he is expected to withdraw from the paris agreement. The major names opposing the decisions and what elon musk said hell do if the president does withdraw. One of the companies by the way hewlettpackard coming up. Well have ceo meg whitman. Shell join us in an exclusive interview. The earnings which were reported after the bell yesterday. Opaque somewhat given a lot of a good word for it. I said difficult. You have to understand opaque is even more by the way its auto sales day. Out this hour, ford and gm. Well get ethe numbers as both well get the numbers as both cross. It will tell us about the health of the auto industry. Phil lebeau will help out with that. President trump plans to announce a decision on the Paris Climate Accord this afternoon. It will take place in the rose garden. It is scheduled for 3 00 p. M. Eastern time. Withdrawing from the accord had been one of his Campaign Promises but a number of leaders including tim cook from apple, elon musk from tesla are urging the president to stick with the agreement. Yesterday, jim, multiple news outlets are reporting that the decision had been made. Although with this president , one never knows. But the corporate world has been somewhat united certainly larger companies. Right. Even those in the fossil fuel business such as exxon mobil, but much of hightech is represented, saying dont do it. Do not do it. I had coned on last night, theyre not a producer, that i got out in 1991. More than 15 years out of that business of production, but they said, look, this is kind of like the norm. Is to be with the paris accords. Can i just for one minute explain why you might not want to be in the paris accords . Okay. Go ahead. If you ran on the idea that the American Worker has been sacrificed on by other countries that do not that produce far more pollution than us even if they subscribe to the paris accords then you have to reject the paris accords, because you said well bring back coal because the miners lost their job and its duplicitous to be in favor of the paris accords and think that coal is a fuel that should have a renaissance. Right. You dont believe that coal should have a renaissance answer the marketplace more importan y importantly if the marketplace runs its course at this point, coal wont have a renaissance either. China scrapped the plans to build a hundred coal plants. Almost everyone has plans to phase it out. So the utilities, i interviewed almost all of the uhuh tillty guys. Theres a surfeit of natural gas, the price of which is not expected to go up any time soon and it will remain a cleaner and cheaper option conceivably than coal. We didnt even talk about three mile island. Natural gas is so cheap they want to decommission the Nuclear Plants that actually work. Larger pictuk larger picture here, facebook, gap, google gap . Gap . Im looking at the list here. Levi strauss, morgan stanley, pg e. Does this in if we do withdraw retard the progress that this countrys making and the jobs that have been created in renewables or does that move along regardless . No. Look coneds ceo mcavoy said that the way that the price of renewables is coming down it will be cheaper than coal. So the idea a lot of this is just economics. I mean, if solar is cheaper than nuclear or coal, nuclear being very inexpensive, but difficult to build as we saw from toshiba, we havent covered that lately. We have to stop subsidizing solar. We dont. I mean, theres a large the largest Solar Project in the Brooklyn Navy yard. Its inexpensive power now. You cannot fight history because the price of solar is coming down so great. Where does solar not work . Antarctica, a terrible place for solar. Yeah. Its dark a lot. We would only join syria or nicaragua as i listened to sylph this morning or swilf. Nicaragua is great. My fatherinlaw was stationed there in the snans sandinista period, and he had a brush with them. I was surprised that nicaragua made a strong stand in favor of pollution. Theyre starting to emphasize tourism as well. Starting to hear about nicaragua as a tourist destination. Maybe they say, come, welcome. Were fine on pollution. Maybe thats more of a draw than you and i realize. To me, i would rather go to the country that didnt subscribe to pollution, but nicaragua is taking a strong stand. Thats become a destination for people who dont mind perhaps getting respiratory illness. All right. Lets get i cant think of the other come to nicaragua and get respiratory illness. I dont know. What is the is there some sort of other thing that you maybe. I mean, theyre very im going to check it out. I want to go before it gets too polluted. Lets get some highlights from the code conference before we talk about those things. Join karl out in southern california. Of course a lot of highlights you have to share with us, i know, carl. Yeah, david, paris has been one of the dynamics running through the conference. You see what elon musk said about potentially leaving that white house council. You have tim cook, mark benny hoff talking about it. If the opening day was about robotics and andreessen, then this was a deep dive. And Shari Redstone who made more news, going into more detail about why cbs and viacom did not happen. There was more value to viacoms brands than she thought. Take a listen. Content is being valued more highly than it was ever before. My dad once said content is king. I think what youre seeing now is Technology Companies realizing they need that content. They need that original content in order to succeed and have the relationship they want with the consumer. She did say i have a great relationship with les and i think we would have worked really well together on a combined company. That whole dynamic, guys, about Tech Companies going after content and companies with great content trying to get data is really an interesting thing. Look, the at t deal was largely about us getting data even as the youtubes and amazon of the world are trying that get their own game of thrones. You need data, and were increasingly competing with west Coast Companies that want to be in the video business. They want to be in subscription and advertising and theyre using data and direct connections to people the viewers in order to do that. And we need to be able to compete with that. All right. So speaking of data well hear from Brian Krzanich as day two of the code kicks off. On our air well see dick costolo. Steve case of course whos made enormous efforts to bring the power of Venture Capital into areas of the economy and into areas of the country who have not benefited so far. And brad guester in will talk about the Airline Business and this whole idea, jim of ambient computing. Computers talking to each other. Its a huge investing dynamic out here and well talk about that in the year to come. Well, i do hope, carl, that someone addresses the idea if you have robots building robots the robots can program the robots that are not necessarily pro humanity. People arent talking about that enough. I hope someone addresses its. By the way, jim, Shari Redstone made some comments about football. I think were within a hundred days of the season. And we talk you and i and david have talked all season long last time about the dilution of the brand. The ways in which the consumer was confused by the way the sport was being delivered. Take a listen to shari talking nfl. I think that it got very confusing for the consumer for the nfl last year. They were on too many networks, they started to commoditize the experience and not keep it as something really special on sundays, on thursdays. You didnt know what network it was found on. I think they had a lot of social issues they were dealing with, whether it was the concussion issue or domestic violence. It occurred to me, jim, you could have written that answer for her. Yeah. That is i mean, i went too much about tired night football all last year. The thursday night, the coaches and the players hate it. And they matter. Thats what people realized last year. I hope that her words have gravitas with the networks and the nfl. The Networks Want it no matter what because when you wake up youre watching their shows. All right. We will be checking in with carl of course throughout the morning. Some big interviews coming up. I want to make it clear, nicaragua, im being facetious. Theyre about the rich countries paying more. Thats why theyre fighting it. Syria, no. But nicaragua is being viewed as an outcast, but thats because they think we are polluting too much. Theyre taking the strongest stance possible. I dont want to make fun of nicaragua that says theyre against the accords but theyre against it because of us. Well, up next, well have is a live and exclusive interview with hewlettpackard enterprises ceo, meg whitman. Think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov steve, other than making me move stuff, im here at the Td Ameritrade trader offices. 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. See options data like never before. With thinkorswim only at Td Ameritrade. We are told the pyramids werewhat was that . Ombs. Nick [ gun shot ] but the truth is. Theyre prisons. Do you have any idea what you have unearthed . [ suspenseful music ] who are you . Shes unlike anything weve ever faced. The mummy. Rated pg13. Experience it in imax. Shares of hewlettpackard slipping more than 2 this morning. This after the Company ReportedSecond Quarter numbers yesterday after the bell. Earnings per share in line with expectations. Revenue was a bit above what many analysts who follow the company had estimated. In april, hp completed the spin merge with csc. That did have a complicating impact on results this quarter along with a number of other things. Well get to all of it with meg whitman, ceo of hewlettpackard enterprise who joins us from california. Meg, always nice to see you. Even this early in the morning which we always appreciate. It was a somewhat opaque quarter is the word jim and i referenced earlier. But lets come back to margins because a lot of the analysts who follow the company and investors are focused on that. Margins were down. Youre saying perhaps they bottomed. Is that the case, are we going to start to see margins in the Key Enterprise group which is essentially the company at this point start to rebound . Well, you will start to see them rebound. But let me give you a little context. We are almost all the way through probably one of the largest transformations in American Business history. And by the time were down, we will have created four Industry Leading Companies that i think are much better equipped to win in their markets. And you know as i think about the shareholder value that we have created through this transformation, its really quite remarkable. So if you think now about the go forward hewlettpackard enterprise which is largely what we used to call eg, the margins were under pressure this quarter. But largely from some one time events whether that was the hc 3 transaction. We sold 51 of the China Business to shingwy university. We dont account for that. It comes through oie and we had stranded costs from the spin. That used to be allocated to es and now theyre allocated to eg. Those will be worked off by the end of the year and then we made six acquisitions in the last six months. There are some dilution associated with those acquisitions. On an ongoing basis we face Commodity Prices and a competitive pricing environment. But because of the first two elements we think the worst is over and by the end of this year should return to last years level which we think is great. If you think of the revenue, we saw some real bright spots in our pivot to higher margin, higher growth businesses. Lets go there then. Because like a lot of Technology Companies that are more mature, if i can use that word, you know, you have High Performance computing, all putting up decent Growth Numbers but the question is can you outrun the legacy declines . Yeah. So when will that actually take place if it takes place, meg . Well, one bright spot this quarter was our core server business excludeing the tier one server business it stabilized this quarter. It is down 1 which is a Strong Performance given the market. But youre right. Our higher margin faster growing parts of the business have to continue to perform as they did this quarter. We got a lot of confidence that that can happen and we have to continue to stabilize the server growth. One why do you have confidence why do you have meg, yeah, why do you have confidence that will continue . Why . Well, i can see it in the numbers. I see it in our ability to execute. Im out with customers now every single day. Im spending probably 60 to 70 of my time with customers. They really understand the strategy. They like our innovation agenda, they like the acquisitions that we have made. Theyre super excited about synergy which is a whole new category of servers that we call composable infrastructure. And so i can see it in the marketplace. I can see it in our execution. To your point the Commodity Prices and the competitive pricing environment is still a challenge for us. Thats the nature of this business. Theres always something this this business. But i feel great about our portfolio and our ability to execute. Yeah, youre an incredibly competitive business. I dont need to tell you that. All of your equipment businesses are challenged to a certain extent in terms of competition, not to mention as you pointed out Commodity Prices. D ram prices which dont seem to be coming down any time soon. How do you change the way this Company Operates from the way it operated previously to meet those challenges of not just higher Commodity Prices, meg, but incredibly your words, a challenging environment . Yeah. What we said in the call yesterday is because of the continued commodity price pressure well take another 2 to 300 million of cost out of the business in the second half. Thats another reason that we anticipate margins will return to levels last year. But its also a down payment on we now have to reengineer the go forward hewlettpackard enterprise. Its a Smaller Company now. 28 billion. And we now have to rethink our supply chain processes, our you know, how we organize ourselves. Spans and layers and whats really fun about it is i can see it very clearly now because were a much smaller, much more focused company. Were still carrying a lot of the overhead from a company that had six major lines of business in 170 countries selling to the 250,000 of ours. Were a much more focused company with a much more focused strategy. And i think were going to be able to take a lot of cost out of the company by reengineering how we do things. Thats the exciting next chapter of the company. Right. Some people hear that. They think, okay, more job cuts perhaps beyond what youve indicated in the past. When you took over this company, of course it was enormous. It had over 300,000 employees. I dont know what the numbers were. Yeah, 325,000 employees and 80,000 contractors. Now youre down to about 55,000 after the software spin tykes place in the takes place the fall. Are there more job cuts to come, listening to you talk about as much as 300 million in cost cutting and rationalizing, certainly sounds that may be the case. The kind of thing we have to do, david, think about our server business. We do a tremendous amount of custom server work and we have got to simplify that product line, rationalize the stock keeping in its so that we can keep manufacture the servers in a much more efficient and effective way. That doesnt involve job cuts but a policy decision about how we want to run that business. And it also creates complexity when you have that many skews, complexity drives costs. It drives node costs and all kinds of things. We have to reengineer the processes. I said there may be some incremental job cuts but what im really hoping is that as opposed to now hiring from the outside, well promote our people from within. Well give some of the next Generation Leaders a real chance to shine in a smaller, more focused company. So were excited about that. And i think, you know, people are feeling pretty good about the future of this very focused, highly strategic now company to our customers. Meg, jim cramer, good to see you, thank you for coming on. I need to understand last time we spoke, i got actually quite bullish. What you said was there was execution issues, there were different reshuffling, but when thats clear you will see a much more profitable hewlettpackard enterprises. Now, thats happened but were not seeing that much more profitable. I also im not quite sure about what happened between microsoft and you. Because they essentially pu