are you confident that herbalife has a plan? the primary reason for the slowing growth has been ,he distraction of bill ackman having these multilevel marketing companies, especially herbalife, i just have a classify distributors and users. i think that the implementation of a lot of the compliance rules has cost the level of sales. i believe that they will go back to their ultimate peak of sales, a few years ago at 5 billion dollars. i think they will continue to grow at 8% and can grow to a significant level from there. julia: what is your price target on this? ivan: we really do not have price targets in our analysis, that i think the company is significantly cheap to an intrinsic value measure, based on where they can grow their return on capital to somewhere around -- julia: do you think bill ackman been discredited on this now? ivan: you see, i think shorting is a good practice. however, trying to be the catalyst of the demise of a company is not a good practice, and i think he on some level has gone too far. obviously, he

this is versus herbalife's share price.n pretty steady over the last four years, holding his shares at 17 million. as the share price rebounded to where it was in 2014, he has increased his stake slowly but surely up to 22.8 million shares. this a few key takeaways that we learned from our call. it's perhaps may be a bullish sign that some of the bulls think the stock is undervalued. you had a private equity firm come into unlocks the value. side of that, that he from walked away and maybe they thought that value could not be unlocked mark:. . mark: you have a classic bull versus bear case. who loses out? taylor: you think it would be a negative for acumen as they continue to do that by back as shares continue to rise. bill ackman would be the loser here. vonnie: well, we shall see. i'm not sure he would agree with you just yet. taylor riggs, thank you for that wonderful report. a new player in energy battle between paul sayer and warren buffett. sempra energy is outbidding berkshire hathaway by offering to buy texas power

now the herbalife news.ably breathing a huge sigh of relief that they are not taking herbalife private which has happened once before. it made a ton of money and more than 10 years ago. they made a ton of money when they took it public again. it's not inconceivable wanting so much of the stock and it could go private. bad for billt that ackman with $600 million buyback. not a good day for bill ackman. the herbalife story has not worked out the way bill ackman dreamed. it is quite the opposite. a very tough day for him. >> it could've been tougher if this thing had gone private. a private equity firm has looked at this and said, you know what? looking at due diligence here, i don't like the idea of it. >> it could very well be. a bank is lining up. , you, with carl icahn with thee to buy in other shares. it is not the most expensive buyout ever. it is something he wants to avoid at all costs. this was not a great day for him, but it could've been worse. >> and let us know if you get a response to your text. c

herbalife is very hot in the news when it comes to day trading.y on that trade. adp.takes us to the board unanimously rejecting ackman's slate. he nominated himself and two other board members. the board says they offer no improvements from the current board. he owns an 8% stake in adp. almost 3% in free market. 18% growth in earnings for 2017. pricing power and international opportunity. not something you hear associated with leisure trends. jonathan: as the president heads back to d.c. investors are left guessing what the latest shakeup in the white house might mean for policy. the markets climbed on friday closed downver and on the session. what's behind the weakness. joining us now is chris harvey. great to have you on the program. let's begin with the weakness into the close on friday. many people have said that headline is going to drop. we didn't close higher on friday. why do you think that was? onthe market is a little bit edge. there is a lot of uncertainty coming about. we have jackson hole coming up. you are right in front of a weekend

billionaires carl icahn and bill ackman continued to battle over the future of herbalife. >> herbalifeay be the stock that high -- has the highest ratio of mentions to publicly traded cap in the last decade, and it is back in the news today in an announcement that it will buy back its stock in a reverse auction and that the major shareholder carl icahn has agreed to limit it his -- limit his holdings to 50%. is this a carl icahn victory? >> it is. despite his fight with bill ackman and the stocks, as you remember, bill ackman took a short position -- >> where was the stock trading? >> it was about 50% below where it is trading now. it is not the best return on a short position. >> what does all of this and-and-forth between icahn the company and the fact that this private equity deal did not happen -- what does that tell you about herbalife right now? >> the fact that there is some interest is positive, by a private equity firm, and i believe they will go back to their peak of sales at $5 billion. i think they will continue to grow at their historically rate of 8% and grow a significan

billionaires carl icahn and and bill ackman dowdell on the future of herbalife.herbalife, it may be the stock that has the highest ratio of mentions the market cap of any public traded company in the past few years and is back in the news today with an announcement it will i back a good portion of its stock in a reverse dutch auction and the major shareholder carl icahn has agreed to limit his holdings to know more than 50%, unless he wants to buy the whole company. is this carl icahn's victory? >> it is in his fight with bill ackman in the stocks. bill ackman took a short about one billion. david: where was the stock trading then? >> about 50% lower than now. not the best return on it short -- a short position. >> what does all of this back-and-forth between ichan and thisompany, and the fact private equity deal did not happen, what does this tell you about herbalife right now? >> the fact there is some interest is positive from an equity firm. i believe it might not be the right time. they might go back to their ultimate peak of sales was a few years ago at $5

carl icahn and bill ackman on herbalife. >> herbalife.y be the stock that has the highest ratio of mentions the market cap of any public traded company in the past few years. and is back in the news today with an announcement to do a buyback of a good portion of its stock in a reverse dutch auction , and that the major shareholder, carl icahn has , agreed to limit his holdings to know more than 50% unless he wants to buy the whole company. is this a carl icahn victory? >> certainly. in his fight with double bill ackman in the stocks. bill ackman took a short position in 2012. david where was the stock : trading then? >> about 50% lower than now. so, you know, not the best return on a short position. >> what does all of this back and forth between carl icahn of the company, and what does this tell you about herbalife right now? >> well, the fact that there is some interest is positive by a private equity firm. i think they will go back to the ultimate peak of sales, which was it. -- which was a few years ago at $5 billion and i think they

the rumors, if you will, or speculation about herbalife going private have been out there forever, it feels like, from the very first moments of the infamous brawl, with icon and ackman here on cnbc. >> that certainly would be herbalife's best defense against ackman, if they were to be taken private, at a premium, that would, of course, be the end of his -- as your reporting indicates and as the company said in a press release, they've gotten very close to some sort of private agreement and this is another way around it they've decided to buy back about $600 million worth of shares, tender those shares, and then offer a cvr to shareholders, an additional cash payment in the event that they're taken private in two years, as, i guess, a way to tell shareholders, you know, we intend to do this. >> it's like an insurance policy you know, in wall street parlance, at least in some corners, it's like schmuck insurance, they would say. because you don't want to go into a tender and then have the company do a -- go private, you know, i don't know, a few months, six months or a year afterward.

but if you sort of remove herbalife and removal i can't from the picture, the other stocks that he has in his book have helped him do well over the last 12 calendar months. >> that's exactly right. >> you know, there's like air products, there's so many of the other ones that people don't talk about they focus on the valiant and the herbalife. but if you look at the other stocks, again, he runs a very concentrated portfolio but the portfolio -- >> the canadian railroad was a home run general growth was a home run. >> i'm talking about a lot of the other ones, more recently. >> but unfortunately, it's -- but it's a portfolio, you know, if you're -- if you're a shareholder, you own the whole thing. you don't own the ones that worked, obviously. >> of course right, right i'm just trying to make the point that they are -- the haters who always focus on herbalife and valiant, and less so on some of the other positions in the book that have done well, i get your point. yeah, of course, he would like a big winner not just a winner, but a big winner >> and i think to your point, characteristic

herbalife down nearly 7%, new skin down 7 abo.5%.nclear what is driving this action to the down side in these names. we will bring you those headlines as we round them up, but again, herbalife, new skin and usana all trading lower. >>> a huge week for retail earnings and are these make or break results? plus an inside look at the financials of venezuela's main oil company and what it means for the chaos the.er "power lunch" will be right back because, when you really, really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital. . >>> i'm sue herera here is your cnbc news update. in a statement from the diplomatic reception room in the white house, president trump named and condemned hate groups as repugnant and declared racism is evil in a more forceful statement on the deadly clashes in charlottesville >> ra

herbalife entered an agreement with investor carl icahn. now increases stake about 50% unless he buys the company outright. and that is your latest bloomberg business flash update. sector, thedities opec technical meeting is happening today and total m is ersk oil business and goldman sachs is looking to revive its commodity unit i hiring high profile salesman and some traders in a bid to rebuild that unit. that is according to people familiar with the bank. joining us now is michael moore leads bloomberg u.s. finance team. unexpected.s is not it was more unexpected when we thought goldman sachs would stop trading and commodities. yes, they did a serious review of the business. concluded that they that they need to invest in his business. as you mentioned, a lot of the executives at goldman rose up n, oldh the j. aaro commodities business so there is emotional attachment but there is also the business case that they think if they stay in his business while the other banks pullback, that when the cycle turns, they will be able to benefit him

karo i can -- carl i can and bill ackman on herbalife.has be the stock the highest ratio of mentions the market cap of any public traded company in the past few years and is back in the news today with an announcement to do a buyback of a good portion of its stock in a reverse dutch auction and the major shareholder carl icahn has agreed to limit his holdings to know more than 50% unless he wants to buy the whole company. this is a victory certainly, in his fight with double ackman -- bill ackman in the stocks. bill ackman took a short incision in 2012. >> where was the stock trading then? >> about 50% lower than now. not the best return on it short position. >> what does all of this back-and-forth between i company, what does this tell you about herbalife right now? the fact there is some interest is positive from an equity firm. i think they will go back to their ultimate peak of sales was a few years ago at $5 billion and i think they will in you to grow at the historical rate of 8% and grow to a significant level from there. julie: a

of course, that herbalife surge is a blow to bill ackman. so has been the data processing adp.n talking about his case on the company. he is now accused of being insular and lacking perspective. of the boardominee of directors is not a push back. energy has beaten out warren buffett. they still have to get state approval from texas, maybe california but those shares are up 1%. total. looking at yo joe: looking at the government bond market. it was a very quiet day. very than a market moving news today. a 10 year yield down to 2.81%. >> currencies, let's catch you up. >the euro is gaining against the dollar. the british pound getting against the dollar. this is a story about the dollar weakening. in can see that back september and december, these are leveraged funds. that it has completely reversed and the consensus is go short the dollar. a question of whether this is a contrarian indicator or not. joe: in the world of commodities, let's look at oil down 2% after some production concerns. gold is a little higher but not much. there is also this rally in the industrial metals. n

would rise 20% or more citing increasing popularity on mobile and the pay features. >> shares of herbalife today after the company recently said it had talks to go private. the stock is up 10% despite their discussions ending without a deal this was one part, two parts of news at the very least they are doing a dutch tender. >> $600 million. >> doing a big buyback the go private thing was really interesting, and it's been rumored for so long that herbalife was going to try to eventually go private. real frethose very first moments that i was having the conversation right on this very set with with bill ackman himself and carl icahn and that famous exchange. >> is that because they feel the public markets sump police don't see the value. >> i think, well, the stocks have been incredibly well. >> i know. >> i think it's more of why do we need the spotlight and the scrutiny at this point of the public markets after dealing, you know, ackman and his, you know, stuff, and his crew side for as long as they have >> it's just harder for me to make the case for going private if you're trading at a

if you own herbalife well done. >> an 8% gain. >> it tried to go private. it was a weird release you don't have to tell us all of that but thank you for full disclosure on that. >> some noted the tone there speaking of ackman adp will not nominate three candidates for its board. none of the candidates bring any additional skills or experience to the board they have a significant stake in adp and called for its ceo to be replaced carlos rodriguez will be the guest tonight at 6:00 p.m. eastern time and he already called him the spoiled brat. >> i got the presentation this weekend and went over it page by page there's a lot of smart stuff about adp in there a lot of points about margins and the idea that they could have extended their franchise. a lot of points about technology more than 80 executives they interviewed. there's real issues and i think one of the reasons why the stock dropped is its like wow, maybe they're not as good as we thought. >> despite what that chart shows, despite the white glove treatment that you talked about. >> right, the total sha

. >>> news just in -- >> oh, from herbalife.nouncing a $600 debt auction to buy back its shares the company says this is the most appropriate way to return money to shareholders. herbalife was in discussion with an investor that could have resulted in a going private transaction but that those talks were not successful. >> that's a big deal, right? big storied stocks we talk about endlessly. talking about bill ackman in fact. >> and the fact they were talks to go private, there will be a lot of investigations to figure out who might have been the investor behind that. >> and where are they getting the money for this are they going to raise debt have they got cash >> i don't know. >> all right >>> a developing story overnight. ten sailors are missing, five were injured after a ship collided with an oil tanker east of the singapore the uss john mccain was heading to a port when this happened there have been four accidents in 2017 total. >>> in other global news, u.s. and south korean forces are beginning computer simulated militar

lynch is replacing interim ceo who will continue as cfo herbalife stock is cracking down on china theyounced they're launching a three month campaign against recruitment by pyramid sillers that stock is up slightly this morning, this after a decline in yesterday's session. turning now to today's wall street agenda. july retail sales and import prices are out at 8:30 a.m. eastern time then at 10:00 a.m., june business inventories and the monthly survey from the national association of home builders >> let's get you caught up on the markets at this hour joining us right now is brian leff its, senior investment strategist at oppenheimer funds, our guest host scott furman. good morning to both of you. >> good morning. >> you look at the earnings picture that we're living in right now against the backdrop of what's going on in north korea and everything else, and you think what about the markets? >> so what i think is that the markets are responding appropriately to a synchronized improvement in economic activity around the world now, i would like to say it was coordinated. it wasn't coordi

herbalife, helping sharply.s falling the headline just crossed on the bloomberg that it is on circulationchina probes. china looking into these companies according to this. you can see them all down sharply. there have been various investigations of these companies in the united states as well that haven't turned up anything, but stocks are reacting. scarlet: the average volume for in volumeows the pop and where it will be at the end of the da the yellow line is the average volumey. for the day. clearly were getting more action than we normally see. china has been caught up in the middle of a war of words between kim jong-un and president trump. china urging calm while backing military to warn off strikes. the author of "nuclear showdown" in the coming collapse of china spoke about china's key role. >> everyone is concerned about china's long-term enforcement of human resolutions. resolutions. china announced they would not by north korean coal, but the februaryought coal in after the announcement in april, may, june, and now they are fromg north korean coal third countries. in the past,

and while you think it would've been virtual reality is part of herbalife.s when friends meet one another and they cannot do away with their social embodied major. and that idea of virtual sex is not even mention the book. budget titus although shallow and stupid is still not the slightest is friends and he has little observations of violets presents for when they first meet all the way to the end he will bestir slouch for her softness of her arm. even hear those observations are mediated and the first is attracted to her. and notices her spine is fetching. but if he did suggest to the word is supple and shortly after that it sent him and advertisements for a card describing the supple upholstery. and we are left wondering was it edited instantaneously become is titus had sought out were door was that via -- very word that very thought itself a creation intended to direct or ned g. titus toward the act? i will return to that with civic and political life is made expect those with the widespread telepathic breed imprint's way to achieve a harmony with one ano

that was not a great thing herbalife was not -- he needs a vacation o he took one! >> another general growth or another vacation. >> i hope my wife's not watching she's probably thinking why did we wait six months for that honeymoon? but it was earnings season for heaven's sake. the day she wanted to go away. are you kidding me dow stock. caterpillar, 3m. can you imagine? speaking about how good the 3m quarter. it would have been -- >> why your whole life together. >> it would have been ill advised, yes it would have been ill advised but ackman is right, the timing for his -- maybe it was the vacation to end all vacations. i don't know we went to prague. >> cramer's mad dash got some green arrows this morning. ronoh really?g's going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-wi

. $4 billion in valiant and jc penney and herbalife he's got awhole pile of disasters. >> his track record is much more successes than failures and if we're to look at the activist track record and his returns versus the companies, i suppose mr. sonnenfelled thinks nelson peltz should get on the board of procter & gamble immediately and ge immediately. >> 100% of institutional investors have reported they are disappointed with their performance in the activist fund they have been dramatically underperming the s&p. >> you talk to different institutional investors. >> i'm just telling you what the data says. fortune did a study in the last eight years as activist funds have underperformed five of the last eight years. >> you read a fortune study and i've spoken to the investors in these funds. bill ackman raised the co-investment fund for this investment. >> spotlight fund surveyed them all and 100% of institutional investors said they are disappointed i don't know who you're talking to. >> i'm talking directly to them. >> kelly. >> where has been last year? >> for two guys who are dressed v

herbalife reported second quarter revenues that came up shy of estimates company is issuing a weakerutlook for the third quarter. >>> the trump administration considering aggressive trade actions against china. kayla tausche has more on that story. >> reporter: the expectation is those actions could come soon. the white house has been considering implementing new trade restrictions on china for some time following last month's economic meeting that yielded no new results after talks began between the two administrations in april actions are likely to include a crackdown on intellect cal property the worry according to official is that the world trade organization could dispute the u.s. action or china could choose to retaliate against the u.s., likely in the agricultural sector, which of which falls in states that trump won. the president frequently targeted china for taking u.s. manufacturing jobs and a large trade imbalance and suggested trade actions could affect diplomacy to get china to put more pressure on north korea rex tillerson yesterday appeared to break with the president