so -- emily: meg whitman, ceo of hp, thank you so much for joining us, it has been really great to havemeg: thank you for coming to "hp discover." emily: and good luck. meg: thank you. ♪ ♪ francine: welcome to leaders. santander is one of the oldest and biggest banks in the world. with a footprint in spain, the u.k., and the united states, it is a truly global bank with more than 100 million customers. recently, the spanish lender had undergone several big changes, most recently when emilio botin, the executive chairman, passed away in 2014. his daughter, ana botin, took

so -- emily: meg whitman, ceo of hp, thank you so much for joining us, it has been really great to havemeg: thank you for coming to "hp discover." emily: and good luck. meg: thank you. ♪ the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. ♪ francine: welcome to leaders. santander is one of the oldest and biggest banks in the world. with a footprint in spain, the u.k., and the united states, it is a truly global bank with more than 100 million customers. recently, the spanish lender had undergone several big changes, most recently when emilio botin, the executive chairman, passed away in 2014. his daughter took over from her father and quickly implemented a share sale of 75 bi

joining me today on "studio 1.0", hp ceo and chairman, meg whitman.o much for joining us. it is really an honor to be here with you. so thank you for doing this. meg: you are welcome. i am glad to be here.

emily: have you told meg whitman you do not like the direction they're going? what is the response?e: everyone has the run -- their own logic. she has her views. by the way, i call that the investment banking view. she is listening to investment bankers. of course, the way that things should go for investment bankers are higher fees and higher fees generated by breakups. emily: who will be competition for dell? george: amc. -- hp, and then ibm. those companies have the room -- their own problems. hp is breaking up. who did i forget? emily: cisco. george: cisco is in a position of new vision, new leader. if i had to rank them, this is not a formal analysis, but i would probably put dell at the top of the list. emily: interesting. you do not think anyone else is going to bid? george: the other potential bidder is oracle. remember, mark hurd, the ceo, co-ceo, is heading it a waiver away froming oracle the technology world. but we do not know how larry will react to this. larry and michael have a good relationship, so i do not see revenge or blocking going on here. oracle's biggest comp

meg whitman just put out a memo -- take this with a grain of salt because they were deep into discussions to do a deal themselves. but they said dell will need to pay off $2.5 billion every year. that's not going to go into r&d or getting into the cloud. she came out saying this is a real opportunity and they are going to have to radically reduce r&d and it will create disruption as they rationalize channel programs and leadership. when people are comparing this to hp and compaq, whenever a big tech deals like this happens, it does not go well. history would indicate that it's not going to go well. agent -- hp did the largest m&a and is now splitting itself off and now dow is taking the mantle. maybe in a few years, they will realize smarter is better and split themselves off. there are two things -- one is being a private company. the deal is with activists shareholders. is consolidation. you are looking at markets where you have four or five mega buyers. dell wants to get enough size and mass and technology providers to these customers. emily: it is interesting that you see them going a

that prompted meg whitman to criticize the mega deal.an interview with me earlier today, dell fired back. michael: hp spent more than $4.5 billion on dividend and interest expense. if hp were to go private, it would spend $2.5 billion -- i am talking about the whole hp as it exists today. before they split up. it would save $2 billion that it could reinvest in research and development. her argument is actually ridiculous. i think if one goes and does the math and compares what companies are spending today on share repurchase, interest, and dividends, i feel very comfortable with the decisions we have made an even more so on a tax-adjusted basis. emily: will we see dell making mobile phones? why not? michael: this has been a very difficult sector. one of our competitors got in that space and -- let's just say there is one company that does really well in mobile phones and a whole bunch of companies that don't. emily: you must be talking about apple. michael: we are not planning to get into the mobile phone business. no plans to do that. e

a -- meg whitman decides to split the company into. --ning me is chairman wake

meg whitman just put out a memo today, a sort of a memo to her own staff. take this with a grain of salt because hp and emc were deep in discussions to do a deal last year. but she turned around and said dell would need to pay off $2.5 billion each year and that would not go to research and development of getting into the cloud. that once they split the company and go forward. emily: she came out saying this is a real opportunity and they are going to have to radically reduce r&d and it will create disruption as they rationalize product for -- product portfolios, channel programs, and leadership. i feel like when people are comparing this to hp and compaq, whenever a big tech deals like this happens, it does not go well. can this possibly go well? jerry: history would indicate that it's not going to go well. have hp, which did the largest m&a and is now splitting itself off and now dow -- dell is taking the mantle. maybe in a few years, they will realize smaller is better and split themselves off. being a private company, to retool your business will be eas

meg whitman put out an internal memo and a public statement sort of trashing the deal, saying that dellill have to pay back billions of dollars in interest each year. &d,could put that money to r getting into the cloud, and new initiatives, which makes hp better positioned. another name that we should watch is cisco. they are big enough that they could potentially put together another bit. at this stage, we have no information that they are looking to do so. but it is one to watch. angie: $67 billion. it is not even dollars that dell even has. seems like a lot. bondholders be nervous here? alex: yes and no. it is a lot. bondholders were not thrilled with the idea of doing this because it is a little bit more risky for them. if you were listening to the conference call earlier today, michael dell and others sort of pressed back at the notion that bondholders should be too concerned. they said, look, when the credit ratings come out, you will see that our credit rating will not deteriorate. more or less what you say was expected to stay there. the company can afford to take on this kind o

hp enterprise ceo meg whitman all too happy to point out just how much money dell will be pay on thethey used to finance this pretty big purchase. definitely a wait-and-see but the whole strategy is going after businesses and putting more pcs and services where we all work, melissa. melissa: deirdre, thanks so much. see you at the top of the hour for "risk & reward." don't want too miss that one. >>> zip, zilch, nada, 60 million americans and others will receive from social security. that is what you can expect for your cost of living reduction. the culprit? blame low gas prices and low inflation. joining me, gerri willis and our panelists, judy miller and john. it cuts seniors twice. they're also not being rewarded for saving. not getting interest rate. >> if you're a senior in this country you have a target on your back. seems like the federal government is out to get you. this announcement there will be no increase in social security payments. last year, if you remember, it was 1.7%. worked out to like 20 bucks. what we've seen year after year because inflation is so low and gas p

hewlett-packard has had a very interesting move since we interviewed meg whitman.ellent note. i usually don't talk about these kind of notes but there was an excellent note out this morning about sky work solutions which made that interesting bid for pmc sierra. talking about this multiple shrinkage. >> skyworks solution has brought from 25 times earnings to 15 times earnings. let's overlay that with pure. there is a reversion to buying companies that have lower multiples. that may be confusing to people at home. we are saying, i'm not paying a lot for the earnings up ahead. takeovers, sandisk in the news about whether they are being stalked by a chinese government company, chinese controlled. sandisk sells at a very low multiple. think about it. my kro micron, sandisk. what's not working is all the high growth. we need to see that change to get leadership in the market. stay focused on that. >> i will make sure to stay focused on that. something people were very focused on yesterday was young. >> excellent piece on the conference call. if they want to understand w

stephanie: when i look at tech companies and what meg whitman gets paid, $23 million last year for ation and nobody blinks. jamie: i don't play golf. want to knowople what jamie dimon is doing with that money. why does there continue to be focused on you western mark --? that's the narrative. jamie: that's the narrative. we admit our mistakes and try to fix them. our clients are happy with this. cities, schools, hospitals. mayors, governors, prime minister's, they want more jpmorgan. say you been great for citizens and clients. that's the best i can do. we are not going to be up to rewrite the narrative in the short run. , it'sys in the press going to be rewritten by the press and not a bank ceo. stephanie: you have to tell you run. let's talk about clients you have read we are seeing macro funds really get hurt. positione not in a with all this regulation, would you be in the same place as the buy side western mark jamie: no. we have a different function. hedge funds are making money for their investors. we look at it like a business. we are one of the biggest market makers in the w

>> he's on the board of hp and person responsible for bringing meg whitman into the position. >> classicd in term the of the presidential election and how it's shaping up. you're a republican. what do you think of the field at this point? >> i think it's too big. too many players. most of which have no chance. i don't know whether we're going to see a repeat of what we've seen for the last couple of months of, you know, support for nonpeople with notary publngove experience. >> we have one coming on. >> yes, i know. >> ben carson. >> i don't know the answer to that. i generally believe that the american people would be pretty red sent to nomination and elect someone without experience. >> the last one was? >> obama. >> no. >> no, i mean -- >> he was a senator. dwight d. eisenhower was the total outsider, but he was a war hero. >> made only one vote in the entire senator career or something. so i don't think he was -- >> if that's the argument, americans want an outsider if that's the case you're making. >> the point, at the moment, that's what you are seeing because i think the american

i don't know if you saw meg whitman wrote a scathing memo.t was scathing about dell but a thing to suggest look at this deal. you're probably reading all of this. this is going to be terrible for them. they're going to have all of this debt. this is great for us: maybe that's what she has to do. >> do you know who could nail them every time? elmur fud. >> that's the way he already tal talks. he wouldn't have to think about it. barclays is reportedly getting ready -- do you know this guy? >> i do. >> former jp morgan banker. >> actually you know jes staley. he's been on the show. >> i remember how you started. you went to the new york times. they didn't have a big m&a business there in terms of reporting, you called all of those people and said just give me a chance once in awhile. >> this is true. >> that's how you did it. i know your past. i know your story. you worked your way up. clawing tooth and nail. is this one of the guys probably? >> i don't know, actually. >> why did they say yes in the first place? how did you get them -- >> he's p

meg women got paid -- whitman got paid $23 million last year for stock that went in one direction.ks. people are all up in your business if you play golf or by a new couch. jamie dimon: i don't play golf. stephanie: people want to know why bank c.e.o.'s get overpaid. jamie dimon: that is the narrative. the narrative was that all banks got bailed out. all i can do is tell the truth. we tell the truth every year. we admit our mistakes and try to fix the mistakes and serve our clients. our clients are quite happy with us including cities, states, hospitals. when i travel around the world, mayors, prime ministers, presidents, they want more j.p. morgan. they say you have been great to our clients. thank you for the things you are doing. that is the best i can do. we will not be able to rewrite the narrative in the short run. if itys in the press, will be rewritten, it will be rewritten by the press, not a bank c.e.o. betty: that was jamie dimon, chairman and c.e.o. of j.p. morgan. we will head to the markets desk. julie hyman has more on stocks. we are fluctuating? julie: stocks are mi