our group, i belong to a group called hp unit. we grew up in the various communities. we started an organization called hp unit. august the 14th we're having a dinner, free of charge. we're asking all of the communities, the young peoples, brothers against violence and guns to a free din tore sit down and try to discuss this and come up with solutions on how you know we can knock the guns out and people can get these jobs and opportunities that they have that you commissioners set up in other parts of the city to set up to make sure people in san francisco get these jobs. they're not getting them. the reason they're not getting them they're scared to go on jobs. they're scared to go to west point for example. people from western edition. even people from hunter's point won't go to west point who live on harbor road or oak dale. it's a shame. you talk about feeding your families. it's a shame they have this fear. >> you know they want to feed their families. they can't go to certain places. we need to do something about it. i think if we get these people coming home fro

our group, i belong to a group called hp unit. we grew up in the various communities. we started an organization called hp unit. august the 14th we're having a dinner, free of charge. we're asking all of the communities, the young peoples, brothers against violence and guns to a free din tore sit down and try to discuss this and come up with solutions on how you know we can knock the guns out and people can get these jobs and opportunities that they have that you commissioners set up in other parts of the city to set up to make sure people in san francisco get these jobs. they're not getting them. the reason they're not getting them they're scared to go on jobs. they're scared to go to west point for example. people from western edition. even people from hunter's point won't go to west point who live on harbor road or oak dale. it's a shame. you talk about feeding your families. it's a shame they have this fear. >> you know they want to feed their families. they can't go to certain places. we need to do something about it. i think if we get these people coming home fro

our group, i belong to a group called hp unit. we grew up in the various communities. we started an organization called hp unit. august the 14th we're having a dinner, free of charge. we're asking all of the communities, the young peoples, brothers against violence and guns to a free din tore sit down and try to discuss this and come up with solutions on how you know we can knock the guns out and people can get these jobs and opportunities that they have that you commissioners set up in other parts of the city to set up to make sure people in san francisco get these jobs. they're not getting them. the reason they're not getting them they're scared to go on jobs. they're scared to go to west point for example. people from western edition. even people from hunter's point won't go to west point who live on harbor road or oak dale. it's a shame. you talk about feeding your families. it's a shame they have this fear. >> you know they want to feed their families. they can't go to certain places. we need to do something about it. i think if we get these people coming home fro

looking at the results the headline grabbing everyone's attention is the ssc and the enterprise unit of hp, merging. basically a joint venture, in a way, as they will each own 50% of the new firm. this is helping the stock shoot in hbe for after-hours trading. there will be a cash dividend as well of $1.5 billion on this merger announcement. again, the stock is still up seven .5% right now in extended trading. we will monitor this one is. more details. alix: joining us now is the head of global economics. earlier this month he wrote a report saying that the fed would definitely overshoot that target. since then the odds of a rate hike have moved higher. do you still stand by that forecast? >> let's keep this in perspective. the fight going on between the verynd the markets is over tiny differences. the market wants the fed to wait until much later in the year. the fed saying we want an option to move in june if we would like to. i still think we are looking at a central bank that is incredibly cautious about what they are doing. every time we have a minor disruption to the markets and the

hp. they came in ahead of expectations in terms of earnings per share but the revenue was a little bit soft. really the units that crushed, i don't want to say crushed hp, hurt them was printing, don't forget, this is the company that handles the computers, the printers, hardware side of things. and the printing revenue was down a lot. a lot of that has to do with stronger yen because do a lot of the -- things in japan. you recall yesterday at this time, we were talking about hewlett-packard enterprise earnings and announcement that meg whitman oversees that unit which was spun off from hpq, so basically that spin-off hurt hpq. these are all people rang the closing bell, coming off the floor. send it back to you. hp is down 2%. latest reaction. back to you. david: another company struggling is tiffany. the luxury jeweler retailer is attributing steepest decline sales recession to the strong dollar and declining tourist demand. jason, i'm wondering if this is maybe a canary in the coal mine? >> i don't think it is. here is what i think about tiffany, david. i think this is a reflex of -- reflection much there

storied companies, these great american icons, what happens to hp in silicon valley, it matters to california. i would argue it matters to the unitedtates and to the world. so we have such a big footprint that we matter to communities around the world and i think that is a responsibility we have to take very seriously. emily: we talked about a billion dollars in restructuring costs, an additional $2 billion potentially in the services area. when does cost cutting end and restructuring end? this is a company that has been restructuring for many years, before you got here. meg: we have come a long way to getting the cost structure in line with our revenue trajectory, but nothing is worse for companies than having an uncompetitive cost structure because then you do not win deals. you are in a downward cycle. you have a cost structure that is too high, so you do not win deals and you have to keep shrinking. emily: do you think in 2018 it will end? meg: so, you know, it is hard for me to predict. i think we have got the next three years mapped out well but it is a dynamic industry. i think when industry is changing as fast as ours, it i

computer sciences, because their enterprise value is comprised of the units taken over when they bought eds at $8.5 billion, but importantly, hpid report earn in ings. we had an opportunity to talk to meg whitman about it, because it is left with $33 billion in e revenues, and led ti hardwaby t hardware group. i did ask ms. whitman if she sees the earnings at hpe ramping? >> i feel good about the return business, and we use a return based allocation strategy and we are looking at ways to deploy the capital, and we believe that the shares are a good buy, and we ought to continue to buy shares. >> she of course is making the point that she believes it is the best way to use the free cash flow that we have generated and in fact, they plan to use 100% of all cash flow to repurchase the shares, and of course, the approach of business in china which adds up to $4.8 billion in repurchases by the end of the year, and they did not buy back stock last quarter as they were ne gosh yating the deal with cse. -- csc. and now, for 1,000 employs now left in $33 billion in revenues and about 50,000 or so employees. she is talking about the foc

they announced they would spin off the enterprise unit and go ahead and merge with another company, cse, computer sciences corporation. hpnd computers sciences, csc, up about 20% at last check. hp will own about 50% of this new company. so there you go. back to you. david: good for hewlett-packard. congratulations. melissa? >> the ultimate clinton insider now under investigation by the fbi. virginia governor terry mcauliffe chaired hillary clinton's campaign in 2008 and bill clinton's re-election in '96. now he is the focus of a justice department investigation for questionable campaign donations. fox news's doug mckelway has the details. doug, you have been digging up great stuff on this all day. what do you have for us now? reporter: well, melissa, fox news learned that virginia democratic governor terry mcauliffe is target of justice department investigation into campaign contributions t centers around a chinese billionaire businessman, wen wang, who donated 120,000 to his 2014 gubernatorial campaign and two million dollars to the clinton foundation. mcauliffe, a long time clinton ally once sat on board of clinton glo

and hp enterprises after hour announcing it will spin all of its enterprise services unit and merge withputer science csc. the transaction is expected to be completed by the end of next march. now let's send it over to susanly for susan ly li for an earnings alert. >> that beatses the is the i mats calling for 321 and also for revenues. $2.3 billion versus estimates calling for 2.25. the stories and what we're looking at in the shares, it's surprising we're not seeing more positive reaction because they raised guidants when it comes to revenue and earnings. eps growth of 40% to 41% in 2016. back to you. >> susan, thank you. any idea why stock might be lagging here? it's been a tough environmental, right? >> yeah, but this stock has been such a great performer. ice outperforming any of the competition. it's not cheap. you have to cheat by a mile, raise by a mile. >> it's only down less than 2%. >>> now, speaking of taxes, the irs estimates the actual tax gap is about $460 billion but it seems irs has to take some of the blame for it. a report shows two-thirds of those aren't reporting and

she helped hp become the largest technology company in the world, achieve remarkable success. many jobs were transferred from one state to another within the unitedtates. when it comes to bringing jobs back to america, there could not be a clearer contrast between carly and me on the one hand and donald trump and hillary clinton on the other. donald trump and hillary clinton are flip sides of the same coin. they both have the same approach. take carrier. that's a good example. it is a travesty that they are pulling jobs out of indiana, moving them to mexico. the reason they are doing it is because of the obama administration's crushing taxes and crushing regulations. what is donald trump's response to that? he says he's going to punish carrier, use the power of the federal government to punish them. that's the same thing hillary clinton says, the same thing barack obama says. that's the response of big government liberals that we are going to enact policies to kill jobs and when businesses flee we'll use the power of government to punish them. my approach is different. i understand what both reagan and john f. kennedy understand. when you cut tax