deal. here's tick by tick on dell this morning. down 3%. usually happens for the acquirer. perot systems obviously you would expect that to be up, up 65%. it should send up around 68%. it's also worth note that dell is up nearly 60% itself for the year. more than perot system, up 31%. michael ross perot jr., you're on "squawk box" this morning. >> the addition of the perot systems capabilities will broaden the, you know, ability for us to serve a much wider set of customers and certainly, you know, we'll take those capabilities to ju geographies. we think it's a very exciting opportunity. it's really all about growth. >> you know we have these huge opportunities in china and india, teaming up with dell will give us great scale in order to capture these opportunities.

>> let's see if there's wider reaction as we hit the markets. we're going to cover them here and around the world with our special program. let's start with mary thompson at the stock exchange. >> weaker picture for the futures as commodities and commodity stocks are under pressure today. this is the dollar is moving higher. investors risk adverse. seeking a safe haven in the u.s. currency today. that is helped to push the dollar very close to a two-week high. helped to push commodities like gold, gold now trading under $1,000 an ounce. plus side, it is going to be a busy week for ipos here in the u.s. eight ipos scheduled to list. busiest week since december 2007. this activity is not only here but abroad. metallergical company in china. they are awaiting the decision on fed on wednesday on whether or not the central bank is going to make any mention of any further easing on the stimulus measures. also word from the g-20. in particular, waiting to see if

there's going any coordinated effort on financial regulated reform on the g-20 nation. two stocks to watch today, potash is lower today. lowering the third quarter outlook. and lennar reported a wider third quarter loss because of charges. now let's get a read of what's hamming at the nasdaq. for that we go to brian shactman. >> thank you, mary. we're giving up a negative open here. dell is the story of the day. i won't redevil inlve into the details. interesting story in the l.a. times about google. they're going to have to do something in china, market themselves. obviously some challenges involved with that. also, reports out there the new ad exchange might be about 400 million added to top line revenue. of course, we're still sort of monitoring what's going on with their digital book deal. always seems to be something going on with the courts. yahoo! is all around me right now, basically barron's saying

over the weekend they're emerging as a value play. all the people who thought there was a deal in the 30s with the microsoft, they're gone. holders are in. ubs is saying ebay is using google and not yahoo! for the search ad. also want to say another lawsuit over skype with ebay. they continue to have problems over that. last thing, activision, a story in the new york post is maybe they're going to skim the console people and create games to play straight from the box on your tv. we'll see how that goes. down 1.2%. let's go to bertha at the nymex. >> we're seeing a sell-off here in energy and commodities overall with the dollar weaker against the euro and equities lower. ms global says this is a market in search of direction. it's not clear whether we're going to break lower on oil or move higher here. if we get some more momentum in stock. he says it's more bearish right now as far as gasoline and the product for fundamentals. taking a look at gold this northern i morning, we dipped below the $1,000 an ounce.

we are back above there. that's a number they're going to be watching today. >> thank you, bertha. trading in europe under way. asian markets looking ahead to f tomorrow. today is the day to go global. let's go to ross and mandy. ross is first. >> erin, thanks very much. you heard bertha there talking about the foreign commodity prices and one of the biggest sectors lose today, resource sector. banks are down. we have to put it in perspective. up over 6 1/2% in the ftse 100. strong gains. currently on call for a best ever quarterly performance, the ftse, since inception in 1984. rbs is under a little bit of pressure today. it's talking about a cash call around 5 billion pounds p to reduce the government's stake. it's owned by 22% by the government. m and a, had a deal announced this morning. ceo of kraft touched down in britain today.

trying to see whether they can get an agreement on the proposed measure. cadbury's very staunch in the defense. on the currency markets, the dollar today is up. it's a bounce off the year low against the your ree, which is where we closed on friday. got the sense that people have caution ahead of the fed meeting this week. sterling is lower against everybody. bank of england came out and said maybe you need to question the long-term sustainable exchange ratefo exchange rate for pound. amanda, i tip my hat off for you, it's a holiday and you're working there late in the office. >> i did get free pizza, though. it makes it wot it, ross. many markets including japan were closed today. markets open pulled further away from the 13-month highs. we do have theater prices raise. too far ahead of economic fundamental rentals. 80% surge since mid month. perhaps a pause is not out of line.

highlights the investor's skittishness, shanghai fell. the iron any here is it was actually despite the 28% surge from metallurgical corporate in china. this is a big theme. it's only going to get bigger. the recovery of asia's ipo markets just today, no fewer than 10 firms launched their ipos today in china. china's nasdaq market. and metallurgical corp., help building the olympic stadium, is going to start trading in hong kong on thursday. 28% was considered only modest. and one of the reasons here, lots and lots of ipos coming down the line which is going to put pressure on the overall market. erin, back over to you. >> special interviews coming up later. we had eight ipos all week. now ten in a day. now we're going start to feel all insecure here. when we come back, show time at the white house. the president all over the

airwaves yesterday. making a big sell for health care reform. of course, mr. letterman tonight, over exposure or the way to get his health care bill through? and then, you're due, you're getting a perot system. it doesn't sound the same when i say it. david has more on dell's $3.9 billion bill in this morning's " "faber report." bbbbbbbbbbbbbbbbb

a bit of news from legal world to bring you, could g-mail lead to jail? former bear stearns fund manager apparently deleted his entire g-mail account the day he received an s.e.c. subpoena calling for materials related to that e-mail account. the folks at google sent this information to prosecutors in the case who plan to use it in the trial against t tannin and his colleague ralph shoppy. obviously we all know who ralph was. the trial starts next month. the president is starring in an unprecedented five zn morning talk shows and followed by a stint on letterman this evening. it's part of the white house's wha wall-to-wall literally to push the health care reform to the people. john? >> erin, this is really crunch

time for the president. the senate finance committee is going to take up this bill later this week. mark it up and move it to the senate floor. the president is trying to provide air cover to the members of congress and democratic caucus and the small member of republicans he's courting. his message including "meet the press" was, now is the time that tus congress have to get something done. >> the bottom line is that the american people can't afford to stay on the current path. we know that. and that both sides are going to have to give some. everybody is going to have to give some in order to get something sglun what. >> what's going on the interesting is whether their strategy of blanketing the media, having both the high brow stuff on sunday morning and the david letterman crowd which doesn't tend to watch "meet the press" or "this week," we'll see whether he can pull that off and keep this momentum going.

right now the odds are looking good in his favor. >> thank you very much, john harwood. we'll watch letterman tonight. now over to cnbc and david faber, with "the faber report." you could do the dude a little bit better than i could. >> i could do the what? >> the dude in the dell, the dell guy. >> a little bit. a little bit. i was thinking of the big lebuwski when you said dude. hey, let's talk deals. you can't say merger monday, although i just said it, didn't i? that's the way we do those kinds of things. you can't really. we did get a deal, and a deal of some size and a very nice premi premium, of course, if you're a perot systems shareholder. dell's decision to spend $3.9 billion to buy perot systems at $30 a share. take a look. that's always nice to wake up to. about a 68% premium on the

friday close. ooh, yeah, that will do. $30 a share in cash. not subject to financing conditions. se expected to close in the november to january fiscal quarter. if you will, it is in many ways dell's answer to hp, right? hp bout eds. a lot of people were scratching their heads. not anymore. and now dell has followed suit in a deal of a similar, let's call it, nature. what is michael dell say is the reason behind it? growth. >> the addition of the perot systems capabilities will broaden the ability for us to serve much wider set of customers and certainly, you know, we'll take those capabilities to new geographies. so we think it's a very exciting opportunity. it's really all about growth. >> isn't it always. always about growth. well, that is obviously a good idea, or a good theme here in terms of m and a. let's look at dell's performance

over the last five years. it's been looking for some growth, hasn't it? a bit of a turn up this year but, as you see, it has been a very rough road for the company at his loss market share and in struggling in many ways to sort of redefine itself in a more competitive age. as for m and a overall, don't get too excited. we have seen sort of at least some deals here, certainly the kraft for cadbury, baker hughes, disney/marvel, a number of others and now this one. there are deals out there. speaking to bankers and to lawyers over the last weeks, nobody is anticipating a dell use r of m and a. more likely we will continue to see a pace of deals. and that's where it will end. many people tell me that they still got significant price discrepancies in terms of buyers and sellers. one lawyer saying you need a sell whole is a pessimist and a

buyer who is an optimist. that doesn't mean we won't see these deals at large premiums but it is a sign of what exactly sellers are looking for, even in this environment. 68%, for example, the premium on this morning's deal. erin, back to you. >> thank you, david. david is going to be back. and joe kernen is as well. he's in the run down. now breaking news on a new ponzi scheme. alert desk, what is it, scott? >> another day, another ponzi scheme. this one allegedly involving automatic teller machines, atm's two men, fans vance moore of north carolina and walter of texas indicted and expected to appear in court today in new york for an $80 million alleged scheme involving sales of atms. apparently, it was uncovered when one of the investors went into a hotel in florida or one of the atms he bought into was located, found that it wasn't there. called these guys and said, where's the atm. they said, well, it's been moved. apparently it was not moved according to authorities in new

york. the u.s. attorney's office saying the scheme itself was a cash machine for these two individuals who, again, will be in court today to answer to charges of fraud and conspiracy. >> thank you very much, scott cohn. word on the street here at the big board. and the g-20 and fed meeting this week. catapult stocks over that 10,000 level. we open this morning at 98.20. we have investment plays in the week ahead as we go global with mandy and ross westgate.

on the street" because we are anchoring live today from new york, sydney, and london. we have a lower open. and we're right near the lows of the session for futures. as the big question is, will we hit 10,000. art cashin is with me here on the floor. art, i have found a few good pieces of news. we have all the ipos. mandy was talking agent ten ipos today in hong kong. one thing stuck out at me is the comment of the largest buyer of walmart, in china saying the u.s. is going to lead the world out of recession. they had no idea that demand would be this strong. is there room for real fundamental optimism? >> there always is the potential for fundamental optimism. his statement about walmart and the exports don't seem to be borne out by things like the baltic dry index and shipping rates. so let's hope it's not his optimism. i hope his factories are moving and he's actually seeing it. so far we're not seeing it translated into regular data.

>> let's get to 10,000. obviously it is psychological and the kind of thing that would be a headline around the country. is it a technical importance, too? >> other than the fact that i have my old dow 10,000 waiting in the booth, right. no, i think right now, and today we see it again, this absolutely wacky situation which it's all about the dollar. the dollar has begun to firm, so we see oil down 2 1/2 dollars and gold get hit and futures are hit. dollar as a reserve currency is more of a dollar as a financing currency. >> art cashin, thank you very much. art cashin with his view on the market. obviously we're going to have a lot lower open. peter is here with was from the buzz beyond. peter, what's your take, in particular, the fong comment, largest supplier to walmart. obviously art raises concern on the baltic try free, but always that doesn't reflect what's going on at any given instant in

the market. >> i completely agree with -- the baltic dry index, though it's a phenomenal indicator of projected growth or trend in traffic -- global traffic, it's not always spot on on a very, very tight range basis, meaning on a day-by-day, week-by-moek, or month-by-month basis but overall it's a very good indicator of growth. we've had seven minor down days in the dry bulk index over the last week and a half or so. i understand we're going to see leveling off. some of the stocks that are died directly into that index, you are starting to see lift. very oftentimes you will see lift in those stocks before you will see a lift in the index. so to the extent that the person in china was talking about, the robust development of here in the u.s., there may be something to it. i'm skeptical but there may be something to that.

if you see fundamental strength in that, dow 10,000, it's coming. strength for it? there could very well be. >> how about some of the other potential good news out there? lennar says 20% increase in backlog which would be demand for new homes and eight ipos in the united states this week, which usually only happens when people are confident in the equity market. >> we're at one-year high in most of the major indexes. last week the major indexes packed on 2.2% and 2.5%, on top of the run we already had. we're running into what has historically been a very volatile time of the season, calendar year for equities. and yet stocks continue to go higher. today we'll see a down draft in the market and down tick in the market. the bottom line is, even if we come in 3% or 4% on the major indexes, i think most people will look at that as an opportunity to grab stocks that have the potential to finish the year strong.

i'm talking about large money fund managers. >> all right. thank you very much, peter kenny. appreciate it. see you this afternoon. >> thank you. >> we're getting ready for the market open here. of course, we'll be checking in with sydney and london. we have the bell at the big board in just a moment. have some fun with that truck.

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this is what i need. announcer: trade commission free for 30 days, plus get 100 dollars cash, when you open an account. you're watching cnbc's "squawk on the street" live from around the world this morning. bell is going to ring here at the big board in 90 seconds. but let's go around the world. first to sydney and mandy where, frankly, all the optimistic news is coming out of asia, mandy. >> yeah, lots and lots of optimism here in asia. today wasn't exactly the best example of that. in fact, i've been sitting here watching this trade in dollar to the nearly 1%. traders call it an excellent barometer of both risk appetite and today it's risk averge and commodities could also be down today. i also wanted to say we could be

soon expecting carmaker to announce an investor by goldman sack's equity fund. they are gearing up to buy volvo from ford. that was pretty big news out here today. so they that could be something you could watch over there as well. >> what about you, ross? we always do this, what's your one thing? what's your one thing today? >> i think it's the fact that currency traders here in london have closed up their shorts on the dollar, erin. they'rer in voice. that's the reason to steer it. and because the dollar has risen as a result, we see that correlation between the dollar and stocks and s&p 500, both are in lock step together. it's i think that. we just seen a close in up from the dollar and have an impact on how investors are viewing risks and stocks today. >> ross and mandy, speak with you in a few moments. i'm going to hold up this hat. this is art cashin's hat.

we're going to open down. but that's got to be, what, nine, ten years old? let's dee if he gets to wear it again. we're at the big board, secretary of state, hillary clinton. lots of dignitaries will be parading at the big board this week. at qula hoo, carol bartz is doing the honors. >> as expected, weaker open on wall street today. dow jones industrial average, 48 points or so. that was expected. the u.s. market following the lead of the global markets today. what we are seeing today is weakness inmoditiecommodities. they have key meetings, the strength in the dollar putting pressure on commodities. gold dropped below $1,000. now crude oil below $70 a barrel. investors are key in on two meetings today, g-20 at the end of this week. looking for any signs of coordinated regulatory reform,

financial markets, also the fed meeting, two-day meeting which concludes on wednesday. what will the central banks say about the stimulus measures it's taking. will it be dialing back on those? today investors are watching the lei, leading economic indicators, expecting to show an increase in the fifth straight month. stocks, potash, coming now and lowering the third quarter outlook saying the earnings will be at the low end of range because of weak demand. putting pressure on other fertilizer makers today. keeping watch on bank of america because reports say today the the company's board is going to look at options in the event ceo ken lewis is charged with fraud. this concerning a deal that bank of america struck with merrill last week. right now dow jones is down 65 points. let's get a read on the nasdaq. brian? >> thank you, mary. down half a percent at the open. good for under 13 points. dell, story of the day, applying for perot systems. $30 a sharl. under pressure, down 4.7%.

big cap, google down 0.6%. apple down half a percent. yahoo! which rang the opening bell with ceo carol bartz down. favorable results with m amgen. price ranges in terms of targets, 20 to 23. a lot of room to run there. applied materials, by the way, down 2%. taken off conviction by goldman but still a buy. let's go to bertha at the nymex. >> brian, we're watching energy prices go down right along with the equity markets this morning as the dollar a touch stronger against the euro this morning. also contributing to the downside pressures. we're also getting headlines about continued softness in demand. particularly out of china. china refiner says that's demand for industrial fuel.

plaxx out this morning saying demand fell over 5%. that's underpinning the concerns in this market. the options pit, they are paying the most ever for protection. the spread between the puts and the calls is now ten points. that's the widest they'ver seen over there. folks are nervous about the downside. we are seeing a bit of downside this morning as far as gold. and we are hovering around that 1,000 mark. but once again, below it, more that pushes lower the more that is going to prompt more likely more profit taking. erin, back to you. >> thanks very much, to you, bertha. we're here on the floor at the big board. we've actually got crowded and a lot of energy. vinnie is going to shoot off right behind me. in that crowd is where secretary of state where hillary clinton is walking through. you can see her actually probably through the corner right there in a blue suit. all right. scottie is going to go over there. she's walking through stocks. probably walk right through here.

she's here for the 64th general assembly of the united nations. this is one of those weeks where you see dignitary after dignitary come through here. and they -- sorry, i'm just bending over. you see them all coming through. you've got various heads of state that come through here and ring the bell. i'm sorry, as i bump the secret service. there you go. all right. where is our guest? somehow he got lost? >> here i am. >> they come through. secret service are very polite but they do pass. >> stay out of their way. >> it is fun on this week because we do get so many dignitaries coming through. there is a little bit of energy and enthusiasm down here. it's fun with these people. dan joins us from deegan financial advisers. michael, sorry you couldn't be a part of that, but we had fun. i got this hat here. art cashin hat, michael. down 10,000.

it's well worn in because it was a long time ago the first time we hit dow 10,000. are we going the hit it again very soon? >> i interviewed this morning with bob doll that i thought was interesting, talking about how risk assets are still in play. that's certainly the case if i think there is momentum build that the market is starting to recognize that the economy is at least -- at least stabilizing. we'll see what earnings look like next quarter. i think generally speaking, the trajectory is going to be flat to upward. we might have a bump down, but i think it's generally flat to upward. >> what do you say, dan? >> well, i think it's more of a traders market than an investors market. i'm seeing lot of significant play right now. for instance, one of the things we watch on the microside is the shipping industry. the fleets right now are 15% laid up. and most of those are laid up coal, meaning all of their services are cut off. >> 13% of the ships that can

ship are empty and cut off. >> laid up is the term. they lay huh hot or cold. hot means they still have services. cold means they don't, they're totally shut down. the majority of that 13% is totally shut down. that's an indicator to us that the demand just isn't there. >> what about this comment, i'll bring it up here. leanne fung, biggest supplier to walmart in china. the ceo this morning said that they have not -- hears what they said to bloomberg. we haven't seen this kind of action in two years. the u.s. will move the movement out of the recession. do you think they're being overly optimistic or a standard there? >> i think they're really hope that we will. i think it's more of a hope than a reality. the container ship are going to tell the story because the goods are shipped by transported by ship. they can't come by truck. it's too expensive to fly. they've got to bring them by ship. 13% of the container ships are already laid up. and that was an 8% increase in the last month. that's a huge indicator of the fact that the demand for the

goods just aren't there. >> go ahead. >> yeah, you know, erin, i think that also, it's not a black and white situation here. it's not like you're going to have 13% empty and all of a sudden they're going to be full. i think what you're starting to hear from china is you're starting to see a trend moving where there's movement. i'm sure you'll talk to mandy here shortly. she'll tell you, i'm sure, in singapore that there's tremendous amounts of ships as far as the eye can see. but i think there is starting to to be movement. i think that's what china is commenting on today. >> what about gold stocks? down about 4%. seeing a big sell-off there. how would you trade gold or gold stocks now, michael? >> i would be buying gold right now. i think i'm one of the folks who believe that there is going to be inflation. i think if there's not inflation there's going to be a fear trade. gold stocks are always a little bit dicey because they're not just about gold, they're about the margin and the company. it's not just about a gold stock per se if you buy it. it's more of a company

fundamental plus gold. if you're buying a gold stock company, understand those two variables, not just a proxy for gold. >> michael, dan, thank you. appreciate you taking time this morning. still to come, fec taking aim at specialization commodity market on gold and others. new index launches today. we're going to have the details. and with global stocks right near a one-year high, we're going to go to the other side of the earth. mandy has a special guest. mandy? >> yes, i do. his name is simeon warner, erin. he's head of macro market at a and p capital. the kind of situation with bonds, equities and commodities all rallying at the same time, it's been a great party but he says it is not a sustainable set of circumstances, at least in the near term. so we'll get what he has to say right after this blake.

and it is time for this. senate top legislator on financial oversight, banking committee chris dodd is planning to push for a merger, the fed, the office for supervision, the fdic and comptroller of the currency into one body. that's more aggressive. tim geithner is pushing for. the senator stopped short of who should be the boss. the irs is extending deadline for international tax dodgers who apply for amnesty giving a late rush of applicants more time to prepare for paperwork. more than 3,000 americans have applied for the program which promises to new orleans deal time and reduce penalties. the fec is set to compose new rules for the internet service proo individualers from interfering with a free flow of information. without so-called net neutrality, ifc is to block transmission of content. things like tv shows or story, whatever it is that they think competes with their own

offering. comes down to the big question is to pay for the internet or whether it should be free. mandy? thanks a lot for that, erin. let's bring in simeon warner sitting right next to me here in the sydney studio. great to have you with us today. we're in the theater today talking about how far we've come back from the lows in march. so okay, great. we've come a long way. how much has been priced in though as a bit of the v-shaped recovery? >> i think we've got a a decent amount priced in, is my view. when we got to the lows they were priced for a very bad economic situation. and so far it hasn't panned out as bad ily as we all feared. to my mind we are extrapolate that path of the data a little bit too much at the moment. there are high frequency signs that maybe the pace of the recovery is beginning to wane a little bit here in australia with the retail sales numbers, employment numbers.

the show has mentioned the baltic dry. indicators that maybe china is looking to ease off of the patent of the fiscal stimulus. reason for caution here. >> one of the aims of the show today is similarities in different regions around the world. what would you say makes the asian-pacific region stand out right now the terms of challenges or advantages against the other regions? >> well, i think so far this year, the story has been stimulus. stimulus where it's been put, the patent of it, the pace of it. australia is an n. an incredible position because we are a large domestic stimulus plan and huge plan from china which we directly benefited from through our exports. i think how that is unwound, how the pace of that stimulus is maybe moderated a little bit in the zeks six months or so is very important. the other additional important thing in asia is the degree of flexibility you make as going forward. where we're hitting fiscal constraints in the u.s., the uk,

in europe, we're not hitting constraints in asia. they can be deployed if necessary if the economy does double dip. >> potential by we could see decoupling suddenly became a dirty word? now it seems to be back on. even if there was a double dip recession, god forbid, in the u.s. or in europe, do you think we could be spares? >> i think that the amplitude needs to be lower in asia. i think there's a big structural cycle going on. we want to get away from a reliance on the g-3 consumer, debt fuel consumption in the anglo saxon economies. that's going to be a rocky road. we'll go through ups and downs. the savings and the balance sheet strength, the asian economies and asian governments have built up through the last ten years is in mark contrast to the debt build up in the anglo-saxon world. >> they might think, gee, asia or the emerging markets is place

to be for my investment money. on the other hand, we have see the emerging markets in asia pull forward so much further and faster. do you think we need a consolidation? >> i think we do. the cautionary things. look at the chinese stock market and we are all a big believer in the chinese structural story. asset prices can vary on the economy. doesn't necessarily need to stay long because you think there is a story. long way and, of course, china repiece out before the rest of the world last year in china and well off the recent peaks now. another reason to be cautious. >> is the chinese stock market a leading indicator? >> i do think so. i think there's another indications as well. the levels of commodity stocks in china got to an extremely high level in august. indications they're commodities have slowed down a little bit. indications that the domestic price of some of these commodities is coming off. domestic price has come off 20% in the last month or so. few indications that that it

needs to be extrapolating the trends. >> in light of that would you be taking profit in some of the commodity currencies like the trillion dollar and the canadian dollar? >> i think so. there's a big -- there's a great structural story there. we know the developing world is going to be a big demander of commodity. as i say, there's going to be fluctuations in that. our model on the near term with commodity prices and differential is saying it probably got a little bit further ahead of the fundamentals in the near term. >> now it's already down by 0.7% down today. thank you for joining us. simon warner joining us. i'm going to send it back over to you in new york, erin. >> thank you, mandy. still to come, the kahuna and the brain taking baby vegas, the brain is still money. he doesn't even know it. he is very cool in his own kay. vegas tables? i don't know. we'll see. plus, fdic crack down in

commodity etf. wall street is finding new ways to play the group. we have ne new details.

you can see gold, three of the largest down 3%. gold is down here at the big board. down about $10. that is keeping us right at the 1,000 level. well, we're down 60 point$60 po. $97.60. but everyone is talking about 10,000. let's check in with the kahuna and the brain. you guys see? >> you had michael dell. >> yes.

>> somewhat luquatious. this morning. and mr. perot, son of mr. perot. >> yes. >> is he staying with the company? >> he's chairman of perot, too. i think to some extent. but -- >> after the day to day. >> he got a great -- no, i'm saying, with the ross perot jr., is he going to stay at the combined dell? >> yeah. even as perot there's a ceo of perot. >> gotcha. $3.9 billion, $30 a share. >> i asked michael dell about that. he said we want to pay a full and fair price. and ross perot jr. said that michael's a great salesman. i guess there was some convincing to cash in the chips at this point for perot. i'm trying to understand, i asked michael dell, you know, the idea in college, let's, you know, build them to order so that component prices fall by the time you get to actually putting the component in. you're already undercutting everybody else.

but that's just his sale. that whole model is on. so i tried to ask him, what do you see? would you make a gadget like a handheld device? is this what you decided on after coming back and running dell, because it lost its mojo a little bit. >> wouldn't a doubt. that model changed. >> perot is big in health care, too. >> that certainly had something to do about thinking about that. >> i tried to get michael to comment on his -- he's got gray hair. he's no longer the person we used to envy on the old "squawk" because he was worth, i don't know, what was he worth? >> 12, 8, 10? >> he was 30 years old and worth $10 billion. so now, you were right, he was very cautious, wouldn't joke around. i also asked him, you know, it's not going to be gas fell 2012. what about nongas? they don't report any nongas at all. it's a vary company who doesn't somehow try to do a nongas. he goes, well look at it for

you, joe if you think we should. it will be interesting to see. >> it is somewhat typical of the m and a environment now where he's got a willingness on the part of buyers to consider stuff, but you've got sellers asking for 65%, 70% premiums. many times the buyers are not going to step up. >> no concern about all. >> they're talking about closing it within a few months. >> there aren't any. even with antitrust vichl with more teeth. >> we'll get a test of that antitrust division. this will not be the deal that does it. >> there have been -- been doing stuff. there have been a few things. >> not at deluge. but there has been a bic-up. >> this is a company not as effected of what happened as a lot of companies because tech didn't have as much debt. >> a lot of ipos coming this week, too. you've got talk about that, i'm sure. 3 $1/2 billion. i've talked about a lot of e-companyi inings trying to tak public. profits that will take a long time.

wynn, right, they're macaw and las vegas sands, a lot going on there. stock has come up a lot. >> we had also dan tishman on this morning. he built city center. for a while, what would have happened to that place if it would have -- >> gone bankrupt if they wouldn't have come to an agreement. >> ag roof on? >> i mean, would that have happened? would tishman have walked away from that deal? >> luckily, it didn't happen. >> the casinos have moved more than the financials. some of those stocks. i already gave up shaut out to ha haverity that one time. did we really think they weren't going live? >> right. >> because they go did go 5 to 20. >> a lot of them did have capital issues. they managed to -- managed through them so far. it doesn't mean it's all over. erin, we're out of time. >> i just want to say i'm wearing this dow 10,000 hat. it is not out of celebration. it is simply to point to the fact that this hat is old. the first time we crossed 10,000, may 29th, 1999.

>> yeah, we were -- >> we did a big 10,000 special. >> right. >> i mean, just, you know, just interesting. as we talk about, okay, it's great, you've got to start somewhere. it's been a lost decade. >> it's going to take ten years to -- >> there was a big party on the way. >> no, we don't wear the hats on the way down. >> no. we eat the hats. >> wear them backwards. all right. thanks, guys. >> thanks. >> coming up, starbucks, one of the most clicked on stocks on cnbc.com. up 150% since the march low. recently a one-year high. starbucks brew becoming a bit rich? and ross westgate with the top strategist, ross? >> yeah, erin. you know a lot of people are wondering where the pull back today is going to be the start of something more meaningful. next guest michael brown says, no, it's not. recovery in the market is going to see some things. there's nothing more that we've done wrong. the reason, he's talking about the multiplier effect.

find out why, as you see investment from michael's point of view when we come back here on "squawk on the street."

leading indicators for august. the conference board reports, the index rose 0.6% last month. that is slightly shy of expectations for an increase of 0.8% but it does follow a revision in july of 0.9%. now, perhaps equally as important is that this is now the 50th consecutive monthly increase of indicator which is widely seen as, well, a leading indicator of where other economic numbers are going. largest posive contributions to the index this time around came from stock prices, perhaps no surprise there. also supplier deliveries. part of that continuing story we're seeing of inventory rebuild. welcome back to the second hour of second edition of "squawk on the street" on monday. it's "squawk" around the world. this hour, we're looking at the unprecedented worldwide response. where we stand 12 months later.

what happens next. and which country will lead the global recovery. ross westgate is with us in london. you see him there. and amanda drury in sydney. right now, the market that are open. we are down nearly 90. mary first. >> hey, erin. dow jones industrial average dropping five points once those lei figures were released. as you said, the index is leading economic indicators coming in slightly below expectations. a positive with the fifth monthly increase. stocks today are lower on the back of a global sell-off that we have seen. keep in mind we have seen a very strong move to the upside. with the g-20 and the fed ahead for this week, investors have taken a little bit of money off the table. here at the big board, perot systems, m and a news. the company seen acquired by dell for $3.9 billion for $30 a share. so it's very active today. other than that, we're seeing weakness across the board. with the exception of drug stocks, it's a broad-based decline with commodity and fertilizer stocks trading lower

today. commodity stocks lower. as we have seen a pull back in gold and other metals because the dollar is actually moving higher as investors seek a flight to safety with the u.s. currency ahead of the meeting today. commodity stocks under pressure. and the stronger dollar is also put pressure on the energy or the oil as well. and that, in turn, has pressured energy stocks. let's take a look at fertilizer stock. the one reason is because they came out and said that his third quarter results will be at the low end of expectations of earnings of $80 to $120 a share. it lowered a outlook for the share. it's seen weak demand. financials is a mixed picture here. watching bank of america because companies ford is expected to meet today. reports say they could be looking for options to replace ceo ken lewis in the event he is charged with fraud in that merrill deal. let's go to brian shactman at the nasdaq. >> thank you, mary. listen, we are out performing the other two major indices. it's relative. we're down half a percent here.

look at the internals. better than 2-1 decline against advantage. quick look at dell. off the lows. down 5%. of course, acquiring perot systems. down 3.7%. the yahoo! getting hit hard. down 2.3%. applied materials taken off the convict to buy list at goldman sachs, it's down 2%. the ones out performing, google up slightly holding on to gains. cisco has been positive. turned negative. i want to point at the chip sector because there was some bullishness overnight. analysts saying in asia the recovery with the chips and semiconductors will be prolonged. they were positive to start. now turned negative accept for sandisk, up 5.3%. goldman sachs and what they can do to a stock. up 3.4%, added to the conviction buy list at goldman. and costco getting a bounce on upgrade from william blair to out perform. let's go over to bertha coombs who is at the nymex. >> thanks very much, brian. you know the energy markets have

really been taking their tone from stocks. and from the dollar. and today, both of those are negative as far as commodities are concerned. as far as the fundamentals are concerned, there continues to be a doubt. there really isn't any sense the demand is picking up. china, for example, continues to show some slight demand pick-up but not enough. in fact, china's biggest refiner says diesel demand is down. gasoline demand is better. diesel is the industrial fuel. maybe china's industrial pick-up is not as sustainable as some might have hoped. what we're seeing to profit taking here as far as the nymex futures. they expire tomorrow but their expiring upon when speculators have actually boosted their net long positions to the highest point we've seen in june. we're down for the third straight day. and we're seeing gold continue to trade here below that $1,000 mark, erin, which is more of a psychological mark, but folks watch it right mou.

>> thank you, bertha. with an hour left of trading in london, let's go back across the pond to ross. >> the big question here for investors after hitting '09 highs on friday and pullback today to investors stick with the rally that we've had or do they take the money off the table? next guest says you stick with it. in fact, it's going to get broader and deeper. joining us is hedge fund manager michael brown despite the european politician. call yourself a hedge fund micromanager. >> it's what we do. we didn't lose money last year. we're making money this year. >> why is this stock market rally going to get broader and deeper? >> well, people who took a swing, finally worked out as we going into a severe recession. remember, negative supplies moving through the economy. what they can't get their heads around now is that we have positive multipliers working through the economy. production will be about 15%, 18%, i think, between now and the end of the first quarter of next year, you will see seeing

it already taking people back on, hiring more people, maybe even paying them a little bit more. we've got our wage agreements going on. pessimism coming out of germany at this moment in time. the recovery is not in. i think it's extremely unfounded. >> what about the delevering still. unemployment is going to be lagging. what about the arguments? we're going to have sluggish economic growth. >> if i look at the corporate sector, the corporate sector has never had higher margins, better cash flow, and lower leverage ever at the front of a recession. this is an amazing time to invest in equities, looking at the cash flow that's coming through in the corporate sector at this particular point in time. and if you apply a little bit more volume, maybe a little bit more sales on top of an incredibly well-managed, you're going to literal stli see an explosion of profitability. >> right. number of stocks you've got in your portfolio, also lift, these are in the auto sector, right? interesting here in europe. >> we just had the frankfurt motor show. they came back and said it's not

quite as bad as we thought. remember, don't next year confuse production levels. don't confuse sales with value. next year the value to sales, down, because we had all the cash for clunkers going on, will be greater because it will be little cars being sold at small prices, larger, more value-added and more profitable vehicles many europe. the value next year. >> we might get an extension of cash for clunkers here in the europe. the french are doing it, the british government. i don't know how that will play in. even better. >> yes. >> financials, you're almost a year to the day since barclays bought up the u.s. operations. what do you see of financials? one of the big questions in the u.s. is it about to drop. i thought that that you had about to drop. you think the company is worth it in that sector. >> it's a look at the yields that you now get on commercial property. they are discounting another 10% to 15% fall in the value of that

property. in other words, we are down 20% 25rks%, certain areas more. 35% in certain values. yields now fully discount a further move. i think that's probably wrong. what i'm hearing is demand is picking up. i'm hearing that people are wanting to buy 8%, 9% yield property. and they can find that very cheap. so suddenly the market is just crawling very quietly. on the bottom? i think it is probably is. at that point then all those stocks associated with that, in particular, the banks find the flaw. and when investors find a flaw for stock, then they have certainly. you have a rerating. >> it's a certainty at the moment the fact that quality makers, told us two weeks ago, g-25, rates are staying, low central bank has said that we don't have to worry about the cost of money in the short term, and, go out and invest in growth, invest in reflation whatever you can find it? >> absolutely because you don't get anything for your cash. 8% and you can borrow at 4% or 5

f frs%, it's a deal of a century. five-year time, have a rent review, which you don't we return. you can in certain countries. it's fantastic. it's printing money. and that's where opportunity comes. and that's why you start to see the deals coming through. remember, also, the central banks, not only is it growth staying low for a long time but the asset repurchase schemes are going to be there for a very long time because they don't want us, the general public, to save 20% more in the next year. they want to just gently keep it ticking over and keep the cash in the banks coming from their rather than going to the consumer for deposits. that means more cash in the system, longer and central banks are going to have to stay. >> michael, thanks very much, michael browne joining us. there's a guy saying, look, commercial property has dropped and there are opportunity there's invest today. that's one slightly different story. back to you. >> thank you very much, ross. we'll be back with us in a couple moments. up next, though, starting today there is a new way to play

commodities. a good day to talk about it viv gwen what we're seeing in gold. we have the commodities corner trade coming your way. and then, because you clicked, starbucks, stuck on a caffeine hi. up 150% since the march low. what is behind p move and can it keep going? plus, is going green the new black for corporate america? black, by the way, was a fad. we'll find out which companies are leading the way when it comes to saving the planet. tdd#: 1-800-345-2550 if i'm breathing, i'm thinking about trading. tdd#: 1-800-345-2550 i always have my eye out for a stock on the move. tdd#: 1-800-345-2550 doesn't matter if a company sells computer chips tdd#: 1-800-345-2550 or, i don't know, fish and chips. tdd#: 1-800-345-2550 i'll look at all kinds of stocks before i settle on one. tdd#: 1-800-345-2550 if i think i'm onto something i'll check it out, tdd#: 1-800-345-2550 you know, see what other traders are up to. tdd#: 1-800-345-2550 when everything feels right though, tdd#: 1-800-345-2550 that's when i get serious. tdd#: 1-800-345-2550 and the minute i get into something, tdd#: 1-800-345-2550 i already know when i want to get out.

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wall street and mean streak getting a new way to play commodities today. thompson reuters and jeffries with the first commodity equity benchmark. this is come m.d.ities future trading commission. the futures trade ppg this is a way to playoff these futures market. they are here in person. all right. let's start with the big question right when they're about to say investing in commodities futures can be seen as speculation and a bad thing and they're going to have to start to curb it. you're coming out with a play to play the futures market. any concern of, oh, gosh, we timed this one wrong or does it work within the new system? >> it's right. look at this way. these are equities. the problem with investing in futures is three fold. the government doesn't do it if they want excess speculation in the net marketplace. there's not much liquidity. it's only $150 billion. it's less than the market cap at google. and the third thing is, you know, clearly, when you invest in futures, you have to roll that investment for regard every

month. it expires every 30%. that's 10% a year to roll forward to the next futures contract. >> so is this an index of not of the futures, you saying stocks that are in -- >> up 150 companies that actually produce, mind, or control the commodities. 150 companies around the globe. international, poe sure to the brick companies. exposure to every single part of the crb index, only in the form of the companies who actual li produce that. this index captures 70% of every commodity that is actually produced, manufactured, controlled, on the planet. and think about this. if you buy natural gas at 250 and it went to 5, that's all you're going to ever get. that stops, erin. if you had to express that over several months, that's cause you several basis points. you've. >> you've got to do the rollover. >> if you own the companies, they continue to profit. oh, by the way, this index pays 2.8% dividend. you continue to profit in natural gas going up and it

doesn't have to continue to go up. >> what is the correlation between the crb, which is the raw commodities themselves and the few dhurs and stock and index, i'm sure you run that historically. >> we have the it correlates on our squair to about 9.4 right now. >> push, right? >> exactly. i think we tested that going back ten years. the crb has been around since 1957. this is going to be the benchmark in come m.d. imoditi k equities. >> they want to buy the commodities to have a play. and when i buy a company i can get all kinds of noise, management issues, i really, you know, one commodity does well but another does poorly. >> that's why we fair this group of 150 companies have market caps above 800 million and we have also the fx problems to we los that in local currencies. >> so you're buying it in the local currencies. >> buying it in local currencies. it's so diverse.

>> and so the crb, as you noticed, as you noticed here, it's most people think of it as energy, but it's not. 39% energy but you've got agriculture in here as well as precious metals, gold. >> yes. energy is everybody's hot button topic right now. think about agriculture. for example, we're going to have another billion people on this planet before 2020. they all have to be fed. somebody has to produce that food. if you buy corn futures you're not helping the production. if you buy the company that produces the corn, produce more food. >> another billion? another billion in ten years? >> yes. and at a steady state of population growth that's where we're heading. a lot of energy to produce and a lot of food to produce. >> yes. so that will be the next debate off of this. >> art hogan joining us from jefferies. starbucks, one of the most searched stock on cnbc. it surged 150% since the march low. is that a one-year high. unlike many stocks in the market. does it have more room to run? joining us with insight

analysis. restaurant analyst with oppenheimer and company. let's get to it. 10% higher over the past month. starbucks is at a one-year high. would you buy it now? >> yes, we continue to have an out perform on it. i think certainly their trends now, top line trends which we've been waiting for them to turn around, show sign, commentary from the management the last couple of times they spoke and suggested monthly sequential improvement which is bucking the trend and what we're seeing from casual diners or 800 pound gorilla, mcdonald's, shown a weakening through the months. >> starbucks had gone through a very difficult time. with a combination of their coffees were expensive, new competitors like mcdonald's and, also, frankly, themselves, poor customer service. they lost their edge. have they fixed those problems? >> yes. they really identified the problems early. they closed down stores that were underperforming. nearly 1,000 stores. they've improved their value proposition. and they've done a good job as far as getting bounceback,

getting the core consumer to come back more often, increasing frequency. i do think they've addressed a lot of those issues. and hopefully we'll start seeing that reflect in positive comp sales. >> they identified food or better food as part of that, has that materialized? >> well, i think that's a little early to see as far as food being a real true vertical. i still think of them as true beverage company. and the price point and bridging down the price point for certain items was a key ingredient to that. the cards that they use, to, they do have a very strong captured crowd there. i think, though, when people want that initially thinking mcdonald's was a competitor and going to continue to inkroecroa that was over blown. >> do they need the economy to get better? do we need -- was a lot of companies in retail or even in the restaurant space, you look at unemployment, it's very important. is it for starbucks at this

point, the economy doesn't keep getting better, do starbucks shares stall? sglin deed, i think they need the economy to get better. i think the early indications are the way the stocks are running, people are assuming they will participate in a an improvement in the unemployment situation. certainly people drink kov fcof when you go to work. more workers and improvement in the numbers employed will be benefit to starbucks and so it should participate and have a greater delta as far as during the recovery. >> thank you very much. he still has a buy on starbucks. and next, corporate america really serious about tackling climate change? we're going to tell you the best and worst american companies when it comes to green. and later, the most pressing question facing the global economy today? which country will lead the world out of the abyss and which has the most promise? with your special hosts today, we tackle that. today on the closing bell, don't miss the president bill clinton. that's in the 4:00 hour. "squawk on the street" back in a moment.

we were down nearly 100 for the

dow on the back of a leading ibd caters. disappointing for august but if you combine july and august with the new number in the revision, net net you're only 1/10 of 1%. market now down 68 points. nasdaq and s&p lower as well. world and business leaders converging here in nork for the 64th meeting of the u.n. general assembly. one of the top issues on the agenda is how to tackle climate change. just how well are businesses plan for what may become a carbon constrained economy? here what the analysts of laggards, cnbc paul stinson, chief officer with the project. non-profit organization that collects climate change data from 1500 corporations around the world. good to have you with us. what do the data show? >> good morning. what we're seeing is that more and more corporations, particularly in the united states, are now embracing climate change. tim print in the global system for the last nine years are collecting information on what

climate change means for big corporations and how they are responding. and just this morning partners, bank of america/merrill lynch, released two reports also pricewaterhousecoopers. these reports show that now the majority of corporations in the united states understand climate change for the opportunity for business, restarting to measure and disclose the grown house gas emissions. i think most interestingly, more than 50% of responding companies have actually set targets to reduce greenhouse gas emissions. that's ahead of regulation we expect to see coming online in the next few years. >> do you think that they need the regulation? i mean, are they only coming up with this because they think it's coming or is this perhaps evidence that they would have a market-based solution themselves to cut emissions without regulation? >> i think that the kind of threat of the forthcoming regulation is inspiring actions. probably more excitingly, these company announcing that the opportunities to deliver products and services that will

create the low carbon economy, actually going to have the potential to make i'm pence profits. the world needs to see the transition in our energy systems and companies have the technology to do that. and the companies get that right will actually make a lot more money. there will be win ersz and losers at the corporate level from climate change and increasing number of companies are positioning themselves to be the winners. that's going to drive the change faster than the regulation. but we need the regulation to force all companies to come along and at least at a minimum standards. >> you say cisco and bowing are leading. on what measure? cisco with this huge data storage center. some people don't realize a huge consumer of energy. >> sure. i mean, they do consume a lot of energy but cisco is working on the technology used by businesses around the world and governments to avoid business travel. so you have to look at what's the opportunity for products to reduce greenhouse gas emissions.

>> paul, i'm going play devil's advocate here. i hear you on that videoconferencing they have. i know they wanted to grow and they want that to be a big part of their business. fair point. but it's still dwarfed by their servers, right, would store so much data and use so much energy. aren't we moving very glacially for toward here? >> we have been. we're moving much more a rapidly. actually, on the challenge of the service, we are seeing much more green service, greene data centers coming online now. much more efficient, reusing the heat. we've got to minimize the emissions and maximize the technology to reduce further emissions. >> all right. thank you very much, paul. by the way, a little trivia. did you know energy consumeded by the service around the world is bigger than the emissions from airliners? not kidding. we're crisscrossing the globe and the crisis of where we are now. where are we one year or the

melt down and what country will lead the recovery?

in the headlines. s&p down 1% right now but aig is the biggest winner. up about 11%. and we have three new, worldwide, net ap and novellis.

let's take a look the market internals here as we go back around the world. there's dow, nas, s&p all trading lower. off the lows, which will start right after 10:00. advancers/decliners, wow, okay. so there you see about 4 for 1 in the nyse. on the nasdaq, and actually slightly better. only 2-1. one year after the meltdown rattled the global, we are starting to see recovery. are the green shoots going to survive the winter frost? which economies are the best place to put your money? mandy man mandy drury is in sydney and ross westgate is in london. i'll start off with the first question. michael, today, largest supplier to walmart in china said the u.s. is going to lead us out of the recession.

everyone has been banking on china. do you think he's right? >> no. in fact, china's growth began to accelerate again early this year. we seem to now be picking up into recovery mode about six months after them. much of emerging asia began to snap back from this deep recession in the second quarter of this year already. and it appears that europe is on about the same schedule as we are with differences across individual countries. >> john, i mean, what's your view on europe? we've seen auto pick up in france and germany as well as others. are they going to continue to lead the recovery here? >> i think lead but not lead by very far. i think they're all moving as a pair. i certainly agree we get mild variations but within a month or two-month per you you will see whole of europe on the trend line. >> you work og emerging markets as well. we talking about china a lot.

india, how important is that story? >> my colleagues is optimistic about india, especially after the election. it's a long way to go in india, it's a huge economy and potentially very fast growing. >> michael, i'd like to pick up on what you were saying earlier. explore it further because it seems as if shanghai has been new rome, commodities, capital, leading down the road to shanghai and my previous guest on the show said that china is a global leading indicator. would you go as far as saying that? >> yes, i think the chinese economy is very important in that regard. now, the stock market is different from the economy. and the stock market in shanghai is extremely volatile. so one needs to be careful about putting too much emphasis on that particular indicator. but more broadly, the chinese economy drives a lot of commodity prices and other developments because there's

such a large user of those products. >> john, i'd like to just turn this to you because i believe you were once sitting on a panel that was trying to examine ways to help london retain the position of one of the leading financial centers of the world. do you feel as though threatened by the rise of areas such as hong kong and shanghai in the asian region as a financial center? >> well, i don't know about threatened, but certainly challenged. at the end of the day, london exists as financial center but the center of business and now the center of money aren't entirely in london anymore. so in order for us to retain a position as a global financial center, we are going to have to work twice as hard. we're going to have to attract the capital and the user to come to a third-party place to do their business. i think that's -- >> not particularly helpful when the head of the fsa in the uk get to report that the recession is the banks are financially useless.

that message goes out around the world. you're sitting in new york right now, sitting in mumbai or shanghai, say, don't go to london, they have clampened down. >> i think it's widely reported but nothing uniquely bad about london bankers. >> the attitude as a regulator. >> the attitude i think is quite dangerous. my personal view is we shouldn't judge what we think is socially responsible and irresponsible about it. it's perfectly good at decides what it wants to buy. the critical thing is to work out what it is that the customers really need. and the customer needs financial center, and that's what london has got to concentrate on doing. >> michael, besides competitive financial center, we're talking about protectionism. how fierce are you at looking at the tie of discussion between the u.s. and china as well? it doesn't really to be feared or not? >> well, i think that it's

useful to be a certain amount of fear about it so it doesn't get out of hand. in fact, as a matter of substance, moves toward protectionism has been very minor so farrell tive to the volume of world trade. the tires issue, it's the total of about a billion dollars of trade in the united states from china, which is a tiny fraction of the total. and there will be these minor irritations going forward. but i don't think we're tacki t about a massive wave of protectionism worldwide. >> michael, i think ross raise an excellent point, financial regulation around the globe needs to be in some way coordinated to not undermine certain markets competitiveness in the same regard. do you feel the so-called exit strategy from all the stimulation around the world also needs to be globally coordinated and synchronized? >> well, some degree of coordination is, i think, desirable.

and the importance of zink kro nizization varies. to extend and expand at the height of the crisis are not withdrawn or cut back in a more coordinated fashion since you couldn't induce then the flows of deposit money between countries that might be destabilizing. on other issues, i think that countries need to pursue the adjustments at the pace that it is relevant to their domestic economic development. and not everybody is recovering at the same pace. and that will, i think, continue to be the case going forward. >> john, who do you think around the world in terms of the world's major economies is going to head for the exits first? >> well, i don't think this will be the uk, that's for sure, because we've got an election that's not due until the middle of next year. but i do see that we will be a coordination and i would expect

that the americans would lead the europeans. that would be my personal -- my personal bet. >> all right. thanks so much, to both of you. we appreciate you taking the time from all three of us. and we're going to take a brief break here on "squawk on the street." still to come, the surprising generosity of americans even during tough economic times. stunning in terms of what we've seen with charitable donations. plus, why a five-month decline in video game sales is not stepping the sell of guitar hero from ramping up its offering. crush the competition before you give the key note address at the ad week conference. we'll be right back.

advertising executives at new york's annual advertising week,

dan rosensweig is sitting down right now with julia boorstin. take it away, julia. >> thanks, erin. i'm here at the sixth annual ad week and joined by dan rosensweig, ceo of "guitar hero." thank you for taking the time to meet with us. they have had a tough time but some measures this type of sales is down 46% this year. is there some concern that music video games have peaked. what's your strategy to keep it standing? >> well, it's been a difficult economic year for everybody. and video games are down. music video games in terms of overall, are down. but most people don't understand that the music video game category is actually the second largest game in category period. after "call of duty," which will be activision this year, the "guitar hero" franchise will be

number two. that's considered to be enviable position. what we are doing, however, is make sure the games they do stay fresh. we have "guitar hero 5" that just came out and in october we have a launch of a brand new ip, vijay her low. and we will have the category and turntable and 100 songs, 94 mash-ups that no one has heard. we have eminem and jay-z and "band hero," social games and music featuring taylor swift. if we continue to bring out great games, expand the category and hardware, we're excited. >> so that's four games in just a couple of months. many more than you've ever released in such a short time period. they also feel like they're more targeted in terms of the audience they're trying to reach. this is the strategy to just blanket the market with many more games? >> not really blanketing the market as much as just acknowledging size and opportunity in the music category. music is the most popular thing people do, it's global.

everybody loves their own music. by having "guitar hero," then "band hero," all the other instruments, more family, social, and singing. and veejay which is today's music, hip-hop, dancing. >> viacom "rock band" huge deals game, spending a lot more to market it than they usually spend in marketing. how is that changing the landscape and is it more competitive for "guitar hero" now? >> the category of people's entertainment dollars has always been competitive. the thing to do is to produce the best games. if you look at "guitar hero 5" reviews is best reviewed. out-reviewed every game in the category. they picked the most incredible music, variety, value. so i'm happy that more people are in the category and expanding the category because any time you have a chance for us to compete, we generally come out the winner. >> there's obviously the

question of how much sales have been hurt by the recession and s saturation. how big can this market be in a time when consumers are watching that wallets and it is an investment to buy a system, whether it's the turntable or, you know, the beatles rock band new package? how saturated is this market? >> we're focused on providing value to the consumer. i don't think it's saturated. if you look at the number of consoles out there, less than 20% actually have a music game. so there's a net 80% where there is the opportunity to go after. there's more consoles, consoles are getting more connected and we have the opportunity to sell more into that audience. so we're not particularly concerned about that. on the price issue, look, it's a difficult economic time. if you look at what we do with "guitar hero 5," 82 artists, 85 sounds, we're giving the audience unreleased "guitar hero van halen" and eddie van halen is a guitar legend and probably

the greatest in the world. it's cheaper than if you bought the music alone. >> all the games being released in the run-up to the holidays, will you have a strong holiday season this year? will holidays save the year in terms of sales? >> i can't speak for the overall economy. i think consumers will continue to watch their pocket books. our job is to actually just pick up market share. whatever the market holds, we just want to be the number one seller and pick up market share. that's what good businesses do. >> we'll be watching to see how "guitar hero" does this holiday season. thank you for joining us. erin, back over to you. >> thank you so julia. charitable, how one-month profit is keeping the donations flowing even in this tough economic environment. but first, all right, i know not here but let me try, trish. oh, trish. >> that was pretty good, erin. very, very nice. okay. we've got a lot coming up for you at the top of the hour. first of all, president obama is going to be delivering a major address on the economy in just about an hour from now.

so we will have that for you live just as soon as it happens. also, senator dodd, of course, proposing his regulation reform, calling for the super agency but not for the fed. we will debate whether or not something like this could work. how seasonable is this plan. and as gold hovers around $1,000 an ounce, we're going to debate whether it's come too far, too fast. it's all coming up only on "the call." would you like a pony ? yeah. would you like a pony ? yeah ! ( cluck, cluck, cluck ) oh, wowww ! that's fun ! you didn't say i could have a real one. well, you didn't ask. even kids know when it's wrong to hold out on somebody. why don't banks ? we're ally, a new bank that alerts you when your money could be working harder and earning more. it's just the right thing to do.

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tough economic conditions hurting many charities across the nation. our next guest organization is bucking the downward trend. the children ears miracle network is raising funds for 170 children's hospitals. this funding is up 5% this year compared to last year. and last year it was up from the year before. joining us now, chief operating network from the children's miracle network. you're saying you can break it down. this may surprise some people, companies which are getting

crushed on profitability. we all know we all know that, companies have not been cutting back at all? >> no. there's definitely been a shift in charitable giving over the last year. but what we're finding is that people still want to contribute and support those local causes that they care about. when there's a vehicle out there that allows them to support those causes the way they want to, they're able to keep up their charitable giving and contribute. really where we're seeing especially good returns is with our corporate partners, corporate fund raising programs. >> are you able to determine from your conversations with them if it's just you? are they cutting their overall charitable budget but keeping your part steady or cutting everywhere? >> i don't think i can speak for their overall charitable contributions. children's network, what we've done and been successful with over the years to create long-term partnerships with our

corporate partners. where we engage their associates and partners in the fund raising aspect. you end up with millions of people out there at walmarts and rite-aids and speedways and dairy queens and delta air lines all raising funds for their local children's miracle network hospital, a dollar at a time. every dollar adds up. when the economy is tough, when you can contribute a dollar at a time people are still able to contribute. >> it's amazing what so many people have gone through. it speaks a lot for people, how much they care. >> those large individuals, that's where the biggest drop is most people are seeing in major gifts. a typical category is people's portfolios are changing constantly over the last 12 months. we hope they'll come back as the economy begins to come back.

what we're finding and what children's miracle network's strength is is really in that high volume, low dollar donation. that's the programs we've been successful with for 25 years. >> with partners like walmart. if someone does that, where does the money go? you give it to a local walmart. it's for the local children's hospital? >> that's what's special about children's miracle network. every dollar raised in the local community stays in the local community. the most recognizable thing we do is this balloon. you can donate with these at walmart or rite-aid or dairy queen. thousands of locations across the country. >> thank you very much. we appreciate your taking the time how to explain. certainly a little bit of a surprise since we had overall seen these numbers drop a little bit, donations. up next, final check on the market and final thoughts from our -- we're very grateful to

them. it's very late for mandy. we'll go to mandy and sidney and ross in london for final thoughts. tomorrow morning on "squawk box," chief of staff rahm emanuel. [bell ringing] the way the stock market's been acting lately you may wonder if you've been doing the right thing. is the advice you've been getting helping or hurting? are the fees you're paying really worth it? td ameritrade's fees are fair and straight-forward. their research is independent and unbiased. their investment consultants are knowledgeable and there when you need them. so why not talk to one? announcer: call today to schedule a free investment check-up,

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some final thoughts from ross and amanda. ross, it seems so interesting listening to some of the questions you were asking in one of the segments today about how everyone's accepted that europe is going to lag. do you think there's any chance that people are really selling europe short right now? >> reporter: you know, i think, actually, what we have to remember is everything is pretty synchronized. you've got to do both the economy and the markets. what we've got right here, we've got a global reflation going on.

a lot of sin -- in those two weeks since they came out and said read our lips, policy is saying low interest rates are staying low, go and invest in growth. i don't think it's massive economically so much whether it's europe leading or the u.s. markets aren't going to necessarily distinguish between that. i think what they will distinguish between, who pulls that policy first and where you may see the duplication is what happens to the currency markets when the dollar's weaker because people think policy there is going to stay looser for some type. that may be where you see the duplication in. >> mandy, what about on your side? commodities a big part of the story today, big selloff especially in gold. you have real perspective with that, australia as a supplier and china as a buyer. what do you see?

>> reporter: absolutely. the australian dollar, i don't want to have a home bias here. with gold moving to the downside, you almost always see a very tight correlation with australian -- so it's sharply down by eight-tenths of a percent right now. with those numbers coming out about chinese demand for oil. might not be able to continue into the second half. that is going to be a dominant theme in the second half. we're certainly watching what happens with that and whether or not the heat that we're seeing in the commodity market so far this year can continue. we also late in the day saw chinese foreign exchange regulators say it's going to keep a very close watch for big inflows or out flows of capital. there aren't too many explanations what they mean by that. it seems as if they want to keep things from being a little bit volatile. of course the chinese stock

market, as you know, has been volatile of late. people are worried whether or not there could be any further and deeper corrections. just some things we're watching over here. >> of course we have a fed meeting coming here in the u.s. middle of the week. it's been fun to do this, guys. we really appreciate it. next time mr. -- thanks for watching our special edition. time for "the call." stocks starting off the week on a down note with the dow and the s&p 500 seeing their biggest drop since september 1st. the conference board reports a 0.6% increase. perot system shares up 65% this

morning. we're first in business worldwide. i'm courtney reagan. good morning, everyone. welcome to "the call." i'm trish regan live at the new york stock exchange. dow off 65 points right now. this is despite news of a big acquisition from dell. we're going to talk about where this market is heading. is dow 10,000 possible or, in fact, is there a bear market in store. >> i'm melissa francis. president obama to make a major speech on the economy within the hour. we will take it for you live when it happens. larry? >> i'm larry kudlow. senator chris dodd proposing his own bank regulation reform. it differs from the president's. we'll tell you all about it and discuss whether it's feasible or not. this is "the call." we are cnbc. all right. first up, another multibillion acquisition to report today. dell saying it will acquire computer services maker perot

systems for $3.9 billion. that comes to a cool $30 a share. perot systems soaring on the news. where is this thing? it's trading up -- yeah. trading up beautifully. up 11 points if i have that right. anyway, cnbc's silicon valley bureau chief has the ins and outs as always. >> a pleasant good monday morning to you. not as pleasant and good as it is for, say, perot shareholders. when dell released earnings last quarter just about all of us keyed in on the company's cash position, swelling to about $12 billion knowing full well dell was in an acquisition mood. this was not necessarily the deal on anybody's radar screen. acquiring perot systems for the 3$3.9 billion in cash. that's a 68% premium to perot's friday close. dell using a chunk of its own change to get the deal done despite a 60% pop in dell shares this year already. dell using the perot