bill ackman with us and also jim levanthal is joining us. you made your case directly to an adownshareholder today. which side are you voting on >> i vote the gold proxy contest. >> all things you've laid out are accurate when they take money now, say they go and say we want to grow margins, how much will in the short term impact their ability to grow the business because, as you know, their stock options are all dependant on the stock price so if there's more short-term thinking, do you think that affects what they are thinking now, or is this longer term >> the answer is -- i think cdk is a very easy story this is not about the stock takes a dive or three, four, five years from now the stock goes up. look at cdk, the basic blocking and tackling on how to make a business more efficient and effective and getting customers over the owe versions and being thoughtful about the real estate footprint. the cdx is kind of a microcosm of adp maybe they can put up a stock price chart of cdk. >> it was as great asset and just mismanaged. >> you're not

scott wapner, halftime report, bill ackman exclusively on cnbc ahead. >>> here is another story we'reely, hundreds dead, following yesterdayed powerful 7.1 magnitude quake in mexico. in mexico with the latest on the recovery efforts steve. >> reporter: it is a heartbreaking story because that death toll that we keep reporting on keeps rising. it is now 225 people that have died as a result of that 7.1 magnitude earthquake that wreaked havoc on this city, specifically mexico city that's where we are. we can show you back to some of the rescue efforts that are happening right now. take a look above. this was a six-story hiring agency a normal building and a normal day just before lunchtime. so you know it was packed with people so far we've heard of pockets of people that may be alive in there. that's the work done with the crews right now. they are digging through the wreckage, trying to find any sign of anybody who might be drawing breath and they are trying to rescue those people. that is hard work, arduous work specifically for a few reasons one, half the city is out of power, about

. >> you've got the other looming proxy fight with ackman and adp. i know we'll speak with bill tomorrow here. >> right. >> and get his first comments on what he thinks about where this whole thick has gone you've spoken obviously with the ceo of rodriguez and ackman, us a made the point earlier, he's only a 2% common holder of stocks, so it makes it for a potential difficult battle on his end, i believe you said earlier. >> i think so, scott i think that's going to be a tough one. he's going after three seats, as you know, and -- and some of his actions here have been somewhat curious. for example, the decision not to fully convert all of his derivative position into a common position prior to the record date passing so he cop spent by 4%. it's going to be a tough fight for him is the sense that i'm sort of getting. he believes they can massively improve their margins at the company. i'll be interested to hear thoughts tomorrow with you in terms of what he thinks we can do which is i would argue reversing the momentum here. >> we'll ask him about al

it's down 25% since ackman took a stake in it a year ago >> bill ackman has forgotten more about stocks than i'll ever know at 29 times former earnings, i don't know how you make a compelling environment that it's an incredibly cheap stock. it's cheaper than it was, maybe, but it's not an incredibly cheap stock. the reasons to buy it, maybe they turned things around. i don't think valuation is one of those reasons >> a lot of analysts were hanging their hat on a new product which you could use as a dip but it got widely panned they reengineered it, now it's all natural, but the stock is down on those twitter bashings >> queso was a reason to catch people's attention it wasn't a product that was going to change their business guy's point is really what it comes down to, you don't pay yesterday's multiple on the stock but you don't necessarily put this thing at a major discount we've dealt with the food crisis it's a generational thing. >> i don't think that this is something still hanging over them >> this is ripe for a guy on the street thing i think people still have that in their memo

hubbard recently rejected a request last month to add ackman and two mothers to that -- to others tod. brooklyn could be a big winner if new york city secures a bid for amazon's new headquarters. the corporate compound is expected to create 50,000 jobs over the next 15 plus years. the new york city brokerage says brooklyn's representation as a hub for many millennial's and it could give a leg up for those that have come short and companies.big-name that is your bloomberg business flash. shery: tackling tax reform. the senate finance committee held a hearing to discuss possible healthy prescriptions and we will talk with one ask expert who just wrapped up his testimony. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. shery: i am shery ahn. vonnie: republican bob corker says the decision on tax reform policy could come as early as today. one of washington's leading experts on tax policy is with us. of the taxesident foundation and just concluded his testimony before the senate finance committee. scott, what testimony did you present? we are not hearing very

. >>> an update now, ackman seeking three additional directors on adp's board when the annual meetingord date, though, for that annual meeting took place on the 8th of september. and importantly ackman was in a position to be able to convert to what would have been an 8.3% stake in the common. why is that important? well, you want to own as much common as you can, conceivably, because you can then vote in the annual meeting but what i can tell you is at this point, and in effect what will be the case is, ackman only converted enough to have a 2% or roughly 9 million share stake in adp's common, meaning those are the shares he will be able to vote, not a full 8.3% stake. he continues to hold the derivatives, which will give him an economic benefit should the stock move higher. it does appear, of course, part of this may have been as a result of the money he would have had to have parted with in order to have done a conversion to the full 8.3% common stake. some people telling me it could have been as much as a $2 billion number required of him to get to that stake instead he will be at

cater to those companies so it is one of the big success stories of the european union well paperless ackman more of that place max hoffman in italian thank you very much indeed. now if you're a german football fan well i think you might want to look away now sarah's goes. there is what i have actually found another nightmare for sides because all three german sides were defeated in the u. way for europa league check this out where to berlin were beaten one nailed by swedish minnows zones cologne who haven't won a single game this season and lost another this time at home to red star belgrade and hoffenheim blew a first half lead in bulgaria and fell two one to little goritz. and after the defeat of all three teams in the champions league that means that six german sides lost in europe this week the first time that that has happened since one thousand nine hundred one there's been an immediate fallout with byron munich sacking their coach carlo and to lottie after a three mail thrashing bipartisan the shock waves from the move by germany's biggest soccer club are still overbearing in the foo

context.ut this in bill ackman wants three board seats on adp. you go ahead in your response. want to make a disclosure, i do not own any shares in adp. i gave them to charity, we built a wing at a medical center last week. i should have given them cash and cap the stock because the stock tripled since i sold it. i am not debating the merits. what i am saying is, his approach is totally uncalled for and an appropriate. -- inappropriate. i was on the board for 15 or so years. this company is a fabulous success story. it went public in 1961. the market cap was maybe $10 million or $50 million. today, that is $60 billion. that is like a 70% compound rate of return for extremely long period. they have 40% return equity, more than twice the market. outperforms the competition. privately,ou meet explain your views, give them an opportunity to dialogue? even if you disagree with the way he handled it, you said there is some merit. leon: bill is a bright, capable guy. i do not know of any company in the world that could not do the stellar job they are doing. adp is an open company. th

ackman.in, no surprise that he would want to try and put the pressure on to a certain extent >> very different in terms of much more general sherman march to the sea, rather than peltz. even though the peltz procter has gotten to the point where it's, let's just say, not convivial. >> that's for sure >> let's get to bob pisani see what's moving on the floor >> another day, another new high the s&p did go negative. teches have come back. it's been a laggard, healthcare, energy is back, oil is over $50, banks are okay today also a leadership group. it pays to look at major indices. we have to remind ourselves we are remaining at new highs on the s&p 500. the mid cap and the russell 2000, they are just slightly below their recent highs a lot of people watching that russell micro cap, the smallest 1,000 companies in the russell 2000 plus. that's had a new high. that's also investable leadership groups are intact energy with oil at $50 another play for investor appetite retail has been better gap,

signal a rebranding later today on the half time report, live and exclusive, an interview with bill ackman that's at noon stay tuned to cnbc opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. their leadership is instinctive. they're experts in things you haven't heard of - researchers of technologies that one day, you will. some call them the best of the best. some call them veterans. we call them our team. >>> welcome back at this year's delivering alpha contest, blackstone's steve schwartzman explained why he thinks geopolitical events pose the biggest risk to stocks >> whether it's north korea, trade, there are a number of issues that people don't want to focus on because the outcome would be really bad and those are the things i think about. >>> if you want to hear more, the full interview was just posted today head over to deliveringalpha.com and all sorts of outstanding bits of content on

investor steve ackman says he will vote for pals to become a board member at next month's meeting.has not done enough to keep up with competitors. russia's central-bank joining the bitcoin skeptics, warning of a permits game. they're seeking greater regulation of the cryptocurrency. jamie dimon referred to the bitcoin bubble as "a fraud." china has announced it will halt trading on cryptocurrency platforms at months and. insight,oday's options we are trading a high-yield etf. this is bloomberg. ♪ scarlet: president trump speaking to reporters on air force one. he has returned from florida. in his comments, he said that he respects janet yellen, and the stock market is doing very well. the president says he has not yet made a decision on who the next fed chair would be. julia: speculation will continue . he also made a comment regarding gas, and the decisions over the last 24 hours the deal or no deal situation. he says he's not worried about republican' reactions ons daca. the headlines on the hill would be his base explodes as a result. we are just waiting for president donald tru

delivering alpha with a little bit of breaking news this morning in the ongoing saga between bill ackmanpicker is here with the detai details. >> adp is firing back out with a 69-page presentation, in response to pershing square's 167-page presentation last month. some key things to point out, pershing squares owns both options and shares to comprise its share stake, but ackman only has 2% that's confirming reporting by our david faber yesterday. the rest are in options with a much higher cost basis with about $116 per share, $8 higher than that of common stock. now, action dp says it's cost an about $2 billion to convert those options to shares. this whole situation is highly unusual and significant because the record date has passed, meaning that ackman can only vote 2% worth of his share ifs this gets to a proxy contest so this signals that he was aiming for a settlement here, but it appears he may not get that and adp exposed some details on pershing square's new compensation structure now his investors will pay 30% performance fees on returns greater than 5%. before, they charged 20

ameriprise >>> the big interviews just keep coming on cnbc bill ackman will talk about his battle withrow at noon, you will not want to miss that >>> time for the final trades. >> keep an eye on this name, i think it's going higher. >> avis budget up 9% off its recent low >> still a double? >> still a double. >> micron, i think you want to be out of it >> why is everyone talking so fast >> we said if it holds off the oracle news, you have to buy crm. >> thanks for watching see you again tomorrow at 5:00 stay tuned for "mad money" with the one and only jim cramer. test test. >>> my mission is simple, to make you money i'm here the level the playing field for all investors. there's always a market somewhere and i promise to help you find it. "mad money" starts now >> hey i'm cramer welcome to "mad money," cram america. i'm trying to make us money. my job is not just to entertain but to educate and teach call 180-0734 cnbc or tweet me @ji

. >> big ackman says he's put $30 million, his foundation has invested $30 million with you in terms of two charter school fund, a workforce housing had fund as well those are the kind of investors you're attracting. >> bill represents one kind of investor bill is an activist investor and i think bill should have used social activism as investing what we're trying to do is change the management. >> give me an example on health care because that's such a big part of our economy right now. how are you making an impact. >> health care represents 19% of our gtp. >> right. >> we have 4 about million americans over the hafnlg 65 that will grow to 74 million in the next 12 years and me being one of them. the disparity of access and quality of preventive health care in america is disheartening. we believe as the payment structure, the reimbursement goes from a fee-for-service to outcomes based we'll have to retool the infrastructure, get people out of hospitals where it's inefficient and cost are ineffective into preventive health care clinics into the same communities where we're building s

and chairsa director the board's's nominating committee p rejected a request last month to add bill ackmanto the board. israel passes chief of pharmaceuticals negotiated some breathing room. they were able to get looser terms of credit facilities. payments ine extra case of a credit rating down grade. see their investment in toys "r" us wiped out. the retailer they bought 12 years ago for $7.5 billion filed for bankruptcy protection late last night. the firm's amerco investors sank , filed thein equity rest in debt. at the fax learned -- about five , publiclyore the day knowledge, oakland two people familiar with the situation. they said this was not related to the release personal data of americans. say itn familiar involved the same hackers. that is your business flash update. >> that makes it complicated, especially with senior officials of the company selling their own stock the day after the announced hack in july. the company is responsible as they did not know about it at the time but you have got to wonder. >> if it is the same hackers as well, i has or ability from the company. ev

so, anyway, we can put that question to rest billing a m ing ackman had thee.s a big believer in the cheese right he is the stock see you on monday. have a good weekend. "power lunch" starts right now. >>> i'm brian sullivan, here's what's on your power friday menu iphone 8 hitting the stores today. why are apple shares the worst performers this month by far in the dow? >>> shock in london as uber is stripped of its license to operation amid allegations ranging from sexism all the way to bullying. uber accused of being irresponsible and infit to do business what dismeans for uber and other big startups ahead. >>> the retirement crisis that few others are talking about believe me, it will have an impact on you and your money "power lunch" begins on a friday right now.

big opportunities in the uk's tech sector >>> don't miss a live and exclusive interview with bill ackman he will be talking about the battle with adp for the very first time that's at noon eastern today >>> welcome back to "squawk box. in political news, senate t republicans reaching a budget deal that would allow tax cuts over the next decade sources say the senate budget committee could hold a vote on the measure as early as next week separately the white house says it will continue to pay obamacare subsidies for the month of september, this as senators failed to reach a bipartisan deal to repair obamaca obamacare. this is something you have to be watching closely >> the bipartisan agreement doesn't come together, but there's a republican plan that the white house supports the bipartisan plan seems to have died because paul ryan and the house said don't do this. >> the other thing is if there's a deal on healthcare t has to happen by september 30 sntth >> yeah. after that, you will need the support of a lot of democrats, and it doesn't look like they'll get that. >>> brexit will leakly

today on the halftime report an exclusive interview with bill ackman the first time he is speaking oute with adp. "squawk on the street" will be right back not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. >>> on trading nation what surprise country could he invest a wt t bt ample of a bubble right now? >>> let's get to the simi group in chicago >> hi, thank you, melissa. it's second day of two-day fed meeting. a big meeting, maybe historic meeting. we couldn't have a better guest for that particular point in time, former fed governor robert heller let's get right into it. i have four i want to go in to what do you think about the rate side of the fed and how things may shake out today and for the remaining meetings for o2017 >> i believe they should be increasing rates the sooner the better. they're way behind the curve on that score so, let's do it fast i doubt that they'll do it this time because of the othe

so, anyway, we can put that question to rest billing a m ing ackman had thee. he's a big believer in the cheese right he is the stock see you on monday. have a good weekend. "power lunch" starts right now. >>> i'm brian sullivan, here's what's on your power friday menu iphone 8 hitting the stores today. why are apple shares the worst performers this month by far in the dow? >>> shock in london as uber is stripped of its license to operation amid allegations ranging from sexism all the way to bullying. uber accused of being irresponsible and infit to do business what dismeans for uber and other big startups ahead. >>> the retirement crisis that few others are talking about believe me, it will have an impact on you and your money "power lunch" begins on a friday right now. ♪ >> and happy friday, welcome to "power lunch." aisle melissa three, three major averages all lower this hour the dow is on track for its second straight weekly gain. investors, again, somehow shrugging off fears about north korea. check out the movers we're watching for you, first solar soari

ackman and to a certain extent with adp, improve margins by cutting cost and the like but they make ae for far higher margins with all of these companies i just mentioned. whether or not they'll be successful, who knows in terms of their attempt to either get board seats or pressure management. >> what do you think about ge? ge flanry corporate jet, sells the division that i had always thought it was important, industrial solutions, not supposed to do anything until november. he's not waiting around. >> he's not waiting and he can't wait. >> no, no. ge can't wait. ge had a lot of others. i do think that this guy flanry, i mean, he may seem like a real nice guy but i'm getting the sense that he understands that these analysts -- he wants to make them look bad. i think he has the fire power to do it. >> he's moving on all fronts is what i hear as well. still the key question again back to try anne whether they'll get a board seat there. >> did you notice the calculation of the ingersol performance? >> no, i didn't. >> so what all's fair in love and mistakes. >> thankfully we only have c

. >> we don't typically see where bill ackman who talked about an 8.3 stake in adp, converted to establish% position in the common prior to the record date. prior to being able to vote the shares in the upcoming proxy vote that will take place a couple of months from now at the annual meeting that was surprising. i did speak to bill yesterday. he said, listen, 2.4 billion overall in terms of the 2%, the 9 million shares cost, not to mention my derivative position, one of the largest economic owners, 2% is a significant position he did indicate an unwillingness to extent beyond that in terms of the cost that it would borne to convert to get to the 8.3% of common it will be interesting to see what adp's response is we kind of know because they have a presentation today, an investor presentation today. that heats up to a certain extent he is seeking three board seats and talks about improvement of 1200 basis points and margin >> that would be incredible. there are people like work day that have come in by storm it's only niche. there's something larger at work we're talking about activists bu

you very much, sue herera >>> in the last hour, scott walker said down with hedge fund giant, bill ackmanly 10% stake in chipotle here is what he had to say about it >> have you tried the queso? i wanted to. >> it is getting crushed by twitter. >> i am beginning to believe that twitter is filled with a bunch of chipotle short sellers. i watched on tv yesterday. you had a little taste test. >> people like it in the office. it doesn't have the chemicals that the normal queso does it was quite an engineering exercise to get this done with natural ingredients. >> he is referring, of course, because of monday, the stock fell 3%. so many people were saying even as a cheese lover, i hate queso, the product, which we have had analysts on saying queso is going to be the second coming at chipotle they were saying it was so phenomenal it was better than avocados. >> this is a personal issue. queso, first off, is spanish for cheese it is cheese cheese. queso dip is basically just cheese and you can put some jalapenos there. there are 23 ingredients in chipotle's queso queso dip should be some cheese,

. >>> tomorrow, a live and exclusive interview with pershing square's bill ackman.lways informeative and entertaining he'll be talking about theadp f first time noon eastern time tomorrow on the halftime report. (baby crying) (slow jazz music) ♪ fly me to the moon ♪ and let me play (bell ring) they always refer to me as master sergeant. they really appreciate the military family, and it really shows. we've got auto insurance, homeowners insurance. had an accident with a vehicle, i actually called usaa before we called the police. usaa was there hands-on very quick very prompt. i feel like we're being handled as people that actually have a genuine need. we're the webber family and we are usaa members for life. usaa, get your insurance quote today. live-streat the airport.e sport binge dvr'd shows while painting your toes. on demand laughs during long bubble baths. tv on every screen is awesome. the xfinity stream app. all your tv at home. the most on demand your entire dvr. top networks. and live sports on the go. included with xfinity tv. xfinity, the future of awes

joining me are the senior director of the ackman real estate group and collingwood group managing directornnie mae executive tom booker. to begin with you as the cleanup begins, what are challenges for homeowners? >> challenges for homeowners are substantial. the largest city in the nation every homeowner has got to figure out a way to find a place to live, many of the folks in houston had to do that for over a week. when you look at trying to rebuild, look at the size of the market, houston is the second fastest growing market in the country, fourth-largest city, 25,000 housing starts. the numbers you just rattle off, 90,000 properties in the houston metro that are damaged. at full tilt that market typically can do 25,000 new homes so we are talking about four times the number of new homes that need to be built or addressed and it sounds like a backlog, i would say the first thing people have to deal with a little bit of patience. dagen: we reported before many small businesses go out of business, they can never recover. what are the challenges of those business owners? >> retail has been