bill ackman on the defense.nvestor explaining his money losing bet on valeant after the company announced it is terminating that controversial relationship with specialty pharmacy philidor. and hedging your bets. investors may be having second thoughts about these kinds of hedge funds. the big names with big losses. we go through them later in the program. and in technology, lift off for linkedin. siteob networking searching after a better-than-expected forecast. there 90 minutes into trading session so far on this friday. let's head to the markets desk where bloomberg's matt miller has the latest. are staying your little bit in this rally. matt: a little bit. as you said, it is friday, the last day of the week, the last eight of the month. the index is moving around a little bit. it doesn't make much difference when you pull back and look at the mug career. in my terminal, i pulled up seag. it gives you a seasonal look at the indexes. i put a heat map in here. the average gain for october is a .1 percent. we ar

bill ackman. i didn't see pershing square on the list you showed us.ested. >> between 21,000,000-22,000,000 shares. scarlet: when did he first build a stake in valiant? was it when he was trying to get involved in the whole allegan acquisition? >> i believe that was when he tried to take his position -- if i am not mistaken, it was largely an options based position. he disclosed today and average of 100 $86 for his entire $186 for his entire his initial stake was acquired at an average price of $194. so he has done more than 50% on downcounts and approximately 50%. alix: what kind of herd mentality is there? paulson soldd that a bunch, does that snowball into other people saying we've got to get out of here. carlet: if you're in -- >> if your investors are skittish and 10 to react if your fund performs poorly, those investors -- tend to react if your fund performs poorly, those investors might've been getting out. if they hold the positions, they run the risk of losing a lot of money. bill ackman has a very dedicated investors who have written it out i

bill ackman will talk about it. crushed again come already down by 50% year-to-date. julie hyman is on that conference call. she is here with an update. julie: i'm out in the newsroom, listening to the call. it has not actually begun yet. indeed, bill ackman has been focused on it because valea nt is one of his top holdings. all these questions about philid or have surfaced. philidor is closing as a result. this raises questions about their relationship with it. philidor's only customer. sequoia fund just fired two of its managers. 5.7%.wn about ackman has since bought more shares in the company. erik: i will pick it up from here. i know we will be coming back to you later. more headlines from the call that bill ackman is holding on valeant. --re are some headlines mcgraw-hill will explore options for its jd power unit. it estimates annual revenue for jd power and about $350 million for 2016. you might get a sense for how much money jd power is worth. move just breaking -- ohio's second-largest bank has agreed to bu

. >> let's talk about hedge fund activist investor bill ackman. he's building up his stake in valeant pharmaceuticals with an additional 2 million shares and his hedge fund is already one of the largest holders in valeant. his move comes as more than 39% on a negative research report from citron accusing valeant of fraud and channel stuffing. they called the report erroneous saying it contains misleading statements. ackman still believes in the company despite these claims. this report looks back to a specialty pharmacy and basically they're saying that valeant has an option to buy up more of this specialist pharmacy. i'm going to try to pronounce it. hopefully i get it right. but it's filadore i think is the name of the company. ackman himself had a long standing relationship with valeant. part of that attempt to buy up allergan with that takeover offer rejected in the end. >> they lost 9.4% so far this year. ackman lost $500 million in yesterday's sell off in the stock and so far this year he is down, i believe, $1.4 billion in terms of his bet

bill ackman purchase reportedly lost nearly $3 billion given bill's largests holding, but he is doublinging up 2 million shares after yesterday's selloff. there is true armstrong who covers pharma and health cars -- true -- true armstrong who covers pharma and health care. i sat down with him and asking -- asked him his position. making ispoint i was that it is a platform company. different than berkshire hathaway but a business where valeant has a competitive advantage in running one of the most effective pharma companies in the sector. mike is shareholder friendly. very focused on cost control and very disciplined about investment capital. that gives him a competitive advantage, he is the high bidder for many companies and products because when he layers the product onto his business, his operating model, he can more efficiently extract profit from that product. that leads to more profits for entrepreneurs and more returns for investors. that leads to more innovation. for me to far be it disagree with bill ackman but when i look at jpmorgan's report, they say that mike does not communi

it was also looking at where this situates valeant in bill ackman's holdings. e sorted by market value. multiplied by the current share price. largest publicly disclosed holding of ackman's. followed by air products, his other investments that have been a bit more successful as of late. , overmentioned earlier the long-term, this stock has been an incredible performer. i went back five years, up 300%. -- the folks who upheld that for a long time, they've been pretty well. we've seen this big deterioration lately. the valeant soap opera playing out all afternoon. joe biden will not be our president. he will not be seeking the democratic nomination. hillary clinton just released a statement that reads "joe biden is a good man and a great vice president. serving alongside him in the senate, i saw his action -- passion for our country and our people." her statement should have been boiled down to one word. whew. out, heeports came would make an announcement in 48 hours -- we got 10 minutes notice. to talk aboute the reporting of my colleagues. people knew a decision

including bill ackman, coming up at 4 p.m. eastern, a look at activist investing. tomorrow from 6 a.m. to 7 a.m. eastern surveillance has an all-star lineup coming from citigroup. tom keene will be joined by chief u.s. equities strategist and ed morrish, will talk about oil and crude oil prices. also in speaking with the economist, dylan buiter. that is all coming up on bloomberg television and on bloomberg.com. coming up onbloomber nark -- day," microsoft unveils its first-ever laptop. ♪ ♪ live from bloomberg's world headquarters in midtown manhattan, we are watching -- you are watching "the blue board -- bloomberg market day fair go we have a check on the companies making moves just 30 minutes to the close. >> we werewere -- talking about biotech and energy with coal catching ri. look at the incredible games we are seeing in peabody, participating not quite as dramatically in that rally. we had a note out today from bb&t saying that the pain will ease in 2016 as the switch to natural gas slows down. many power companies have switched over to natural gas, but the

there is no going up against bill ackman. investment on valeant has anything to do with bill ackman whatsoever. you're saying is very dangerous. i don't think any investor should ever buy a stock because of bill ackman or even for that matter warren buffett owns a stock. do your own research and your own due diligence. similarly, you should never short a stock because i come out and say short a stock. the look of the messenger. look at the message. we know mr. ackman is very successful. he owns a beautiful apartment. he is a billionaire all those great things. who cares? at the end of the day, look at what valiant is doing. what are the risks currently facing the company and what is the sustainability of their business model? that is what you have to ask yourself. >> one other question about the industry, there was a lot of noise yesterday are there other pharmaceutical companies that might be doing the same thing. do you have any reason to believe some of the other entities out there that have made comments saying it is not

heavy weight bill ackman is going after and going against the grain raising a stake in the pharma stock. will it inject new life into his portfolio? also creeping up on congress. want to find out how carl icahn is setting his sights on capitol hill with backing from none other than himself. and from rags to riches. this tech ceo made six figure sums for hundreds of his users via t-shirts. that comes your way later on in the program. [female announcer] if the most challenging part of your day is the staying awake part, sleep train has your ticket to a better night's sleep. because when brands compete, you save during mattress price wars. save up to $400 on beautyrest and posturepedic. get interest-free financing until 2018 on tempur-pedic. plus, helpful advice from the sleep experts. don't miss mattress price wars at sleep train. ♪ sleep train ♪ your ticket to a better night's sleep ♪ >>> shares are trading lower. the company posted a third quarter operating profit. 2 billion norwegian crowns in line with analyst expectations. norwegian announced it is finalizing a deal and has finalized

can i shift to bill ackman? our favorite billionaire to watch and discuss because he's always giving us some very interesting perspectives and news. what is it today? >> not a market perspective today. bill ackman in a conference in new york city. the mfa, managed funds association conference this morning, he point-blank said he believes mike bloomberg will run for president in 2017. this is his prediction. he thinks that bloomberg will run as an independent. he believes he's going to make this announcement sometime in the first quarter of 2017. so sometime next year -- liz: you're talking 16, 2016. >> 16, right, right, right. liz: there ain't no presidential election in 17. >> where is my head these days? liz: it's okay, i've got your back. >> thank you, he's going to announce it sometime next year in the first quarter, and by the way, the banner is right so i don't have to go nuts when i leave the set. liz: charlie, thank you. >> he didn't say how he knows this. and make two points here. bloomberg has no comme

tell us. >> it's been bill ackman's special today. another four hour discussion that just ended a moment ago this time of the investigation of the valeant. ackman has reason to care. his 21 million share position which is his fund's second largest, has lost him an estimated $1.7 billion on paper so far. and he has every interested in defending the company. taking stock of the issues facing valeant. ackman says he has faith it will prevail despite risks and historic underinvestment in public relations and lobbying. near term he said valeant will prioritize replacing its lost 6% of the revenue lost with that piece of it. and finally we'll continue to run a business that performs really well. ackman expressed faith in mike pearson, whom he described as exceptionally focused but gruff at times. and --. for instance, he was aware of the specialty pharma business when it invested in valiant originally. wasn't aware of valeant's $100 million option to buy philidor until just last week when the revs of of us learned about it. >> you said he lo

scarlet: bill ackman is joining us. he just sat down for a rare conversation with stephanie role. >> you have all kinds of that requiretegies delta hedging, adjustments funded, dealers base it on -- based on movement and stock prices. there's no place you can look it up that does seem to make an -- a big impact. stocks get pushed a direction on the basis of a news story and the movements seem to be exaggerated. the question is almost a policy question whether these are good for capital markets are not. you have the compounding effect of fear. the stock goes down, it goes down more, and allows you the opportunity to sell and people do and very often they sell the opposite of when they should. >> fear is not a word we ever associated with you on your style of investing. when you go through a market like this, does it make you think you want to hedge? >> we hedge in different kinds of ways. hedgege -- we try to intrinsic factors we can control, sort of like swan type of events. swan type ofack events. >> for you, copper, o

i am not bill ackman. i like his hair and bank account. obviously thinking that he knows better than the market. there is a truth in there. is this an enron? that is what citron called it. i am not sure it is. the end of the day, there is still a $50 value on it. to worry about is, how does this in the long run, impact the business model? there are two pressures. in these cases, not in large pharma. will these prices impact the ability to do acquisitions. much forank you so putting that in context for us. a little bit later today we will be speaking to the founder of citron research who accused ealeant of an enron-lik strategy. you do not want to miss that. that is 5:15 this afternoon u.k. time. valeant has denied the allegations, as sam made clear. he said they are false, is leading, and an attempt to driv e down the stock. that is all the context you need in that conversation. next on "the pulse," we will talk banks and regulation. here. up, right ♪ manus: welcome back to "the pulse." let's get a little bit of an angle on the market. we

interview, ifhone there is one person i don't feel bad for, it is bill ackman.i could switch bank accounts and hair with him, i would close out tomorrow. it gets more and more interesting. what did you make of the events yesterday? you would make that trade to? i don't blame you. >> these guys have made some allegations. they have done some good and in-depth work. one of the points they made was, they found the phone number for many of the pharmacies you had to phone through, was the same. it does not add up. he said, it would be the same because there is a place people need to go to to get answers for the questions regarding payment. and then there is the question of whether they qs these t revenu -- whether they use these channe ls to put revenue through. jonathan: i guess the question here, are we going to another saga? they need to come out and say, everything is fine. bill ackman put his money where his mouth is. is in the stock. he better be right. you do need that. somebody also needs to look at the legality of what the company has then doing, with regard

and i was talking to somebody that was involved in -- worked for herbal life and the fact that bill ackmanat the top of the world, magazine covers, touting his investment success, and as you remember he has a short against herbal life saying it's a pyramid scheme and it was bearing some fruit. he was the king of the wall street hedge fund investing of investment business. so -- and a year later, look at him now. he's down as of the last numbers and the last numbers don't take into account what's going on with valiant today, one of his biggest positions. holds very concentrated positions, down more than 15%, remember up nearly 40% last year. he's probably going to be down more and i tell you. cheryl: it's not funny. actually i kind of laughed, and i shouldn't have. that's a pretty big hit. >> well, yeah. cheryl: that affects a lot of other people, not just your. >> truly he has investors and it is a nervous laugh because i can understand where you're coming from because, you know, when you're up that high, and you do a 180 and to go this low, it just shows you how thick this business is. ch

bill ackman was defending valley and pharmaceuticals. he acknowledges the company has problems, but says it is nothing that cannot be fixed. julie hyman was on the conference call this morning along with a few thousand other people. what did he say, material quest -- materially? julie: he set a very ambitious , saying thetarget stock could reach $448 in three years. tradingsee the stock is lower over the past year by about 26%. his comments are not helping. if you look at how the stock is trading today, over the course of his commentary, we saw it bounce around a little bit, but it is now down by about 12%. ackman did acknowledge that there are issues for the company. now that the pharmacy that has come under such scrutiny is , he says that is behind them, but there is an investigation that could last 2-4 years that could come back to plague of valiant. overall, he said they can move forward and people should focus on the tour business. that is not what people appear on the core business. that is not what people appear -- focus on the co

meg terrell has the latest for us. >> in a four-hour long call bill ackman spelled out the history of their investment in valeant saying he he believes in the company and ceo mike pearson but there are a couple of things he takes issue with. valeant could improve on their investor relations, public and government relations, trying to beef those up. also saying they should have disclose this had relationship with philidor saying they only learned about it with everybody else and then he did compare this instance of what they are going through with philidor and the lack of confidence so something that happened in the 1960s to a.m. meck, comparing the situation of warren buftd getting into that stock at that time. ackman thinking about himself as warren buffett and having the same return as buffet has seen with amex. worst case scenario valeanter sells itself, however, he thinks the company does better as a stand-alone. there are several things challenging the company, it is dealing with several government inquiries into its drug pricing an patient access programs, but this morning as yo

i think investors are happy to wait and see even if bill ackman is still on board. down sohey are shutting what happens to all of those drugs they were selling, do they spread them out to other pharmacies, what exactly happens here weston mark >> they can go through the specialty pharmacy network or find other channels. they can distribute the drug through traditional challenges -- challengchannels. they can go back into the traditional channels and there will be a trick -- a bit more transparency about how sales are going and what they're up against. people are waiting to see, with a able to get the numbers and reimbursements from insurers to deliver on earnings. put?: is he staying confident with mike pearson and seemed to think the strategy should incorporate m&a and that was an interesting piece of the story. he was not necessarily set on the idea that they should buy back stock. he thinks they can execute on strategy. question is whether or not anyone else believes it. is w weighing on the shares is uncertainty. hat is he has something and investors are waiting

on the call now, bill ackman defending their investment in valea valeant. for a while drawing comparisons with the rest of the industry saying this is highly regulated and a lot of fines are paid. calling out novartis and saying essentially companies move on from this. we should look at rest of valeant's business. i'm sure kate kelly and i will bring you updates. very interesting situation this morning. >> it is. this relationship has been a competitive advantage for them that they saw when they did the medisys deal. they used this channel themselves. to your point, it's not necessarily the 7% of revenues, it's how much of the growth was a result of those revenues as well and how quickly were they growing and thenning the company put better numbers up year over year. >> it's a question about this model of using specialty pharmacies. clearly the way that valeant worked with philidor raised questions. ackman saying on the call that they didn't know about the option to buy this that valeant acquired last year. you have to wonder will this stretch into the rest

last i checked it was still going. >> still going on. >> bill ackman style. >> it's been another long. three plus hours at this hour. many people that ackman had a lot to explain. overall, he gave a lengthy defense of the pershing square investment and 21 million shares is one of the hedge fund's largest. based on another negative stock performance so far today, the firm has now lost, we calculated arks an estimated 1.7 billion dollars on paper. ackman said while he thinks valeant has under -- and even took a swipe at their p.r. firm, that it was a good business model with the superlative management team. they should have an investment grade status within five years. he argued, among other things, and was working to replace its specialty pharma business given the severed ties with -- here's what else he predicted near term. number one, more negative press. two, additional scrutiny for regulators and politicians followed by some sort of fine. a fast track ad hoc committee report. the up shot? while this has been a damaging reputational moment for the company, this is arkman in his own

seen stocks go higher, just as valeant went higher, as well, and the latest is that bill ackman has confirmed that he has added 2 million shares of valeant shares, buying those shares as we saw them tumble, with him saying in an e-mail he has not sold one share of this company, and by the way, his top holding, 2 million share addition, would make him the second largest shareholder. as david just mentioned, the shares are tumbling after a report from citron compare the company to enron, saying they were essentially looking sales to an affiliate of themselves as says revenue, and valeant they are not booking those sales as final revenue, but coming back, earlier they were down as much as 40%, now down only on a relative basis 18%, it's still a very substantial decline. we just wanted to point out that the shares were halted in for the company came out and made their own statement, and we kman headline.ac if you take a look, even though valeant is a specialty pharmaceutical company, we saw the i/o tech index climbing, and not only that, the s&p 500 going higher as we learned that ackman was buyi

this is bill ackman. those in the know, let me say in the financial media may get a little bit of a kick out of this. i certainly do. carl icahn is thoroughly backing donald trump. if you suddenly through mike bloomberg into the race, how would it change the dynamic, richard? >> race for what? for the democratic nomination? no. trish: that is a good question. we don't know exactly. you don't know if he will run as democrat, a republican or as an independent. >> first of all i think there is no chance of him running for anything but here's why. here i disagree with lisa, the public looks at trump. no, republican base voters look at trump with all the positive qualities. his national numbers he is way underwater in terms of favorability. way underwater against every other single candidate. democrats are looking for people, sanders, 40 years of experience. biden has been in the senate since '2. hillary is newbie. they're not looking for somebody with no experience. >> he is also a big socialist. sanders ask

it is bill ackman. he is saying it. he runs in the same circles.you're a new york city mayor i guess you think you can be president. rudy giuliani did. for the record mr. bloomberg's spokesman declined to comment and so did mr. ackman's. would be great he got in just for ratings value. david: two billionaires running for president. whoever thought. charlie gasparino, thank you very much. very interesting. melissa? melissa: presidential hopefuls may enter uncharted territory in 2016. fir time the millenial electorate in the u.s. expected to pass boomers this year, leaving candidates to find the way to appeal to seeming opposites. which candidates will keep with the times without losing their boomer support? here to weigh in is catherine kemp, "national review" reporter and fox news contributor, james freeman of "wall street journal." guy benson, townhall.com political editor and fox news contributor. thanks to all three of you for joining us. what do you think, catherine? who do you think millenials will like this race race? >> i there is common thi

how does bill ackman know this? based on my sources, i wasn't there.tting this from multiple people. he didn't really say but we should point out that bill ackman is fairly large invest tore, someone who rubs shoulders with someone like michael bloomberg. charles: our audience knows. i call these guys one of pharaohs wall street. >> managed funds association. charles: managed funds association. here's the thing, when michael bloomberg initially announced first run for mayor of new york, i didn't think he had a shot. he stayed to so long, breaking constitutional rules, what kind of impact would it have? >> i think it is huge, charles. if it happens it exciting to me. i'm registered independent. if he runs as independent, largest growing part of the electorate. >> who does it hurt? >> oh, it hurts hillary, big time. it hurts hillary, tell you why. many on the left, really can't even consider the gop candidate will vote for her by default if she is nominee as it currently stands especially with biden up in the air if bloomberg comes in, he becomes clinton

only not selling stock but today who knows if it was at the absolute low of the day or what, but bill ackman additional 2 million shares of valeant to that portfolio. >> yeah, and that is resis tating the stock just a little bit. great job getting that news from ackman breaking the news about 2 million shares being bought. stock is down but well off the lows. we hit the other side of it. i guess if you want to take the bullish side of the case, if you look at the bonds, and i actually brought up some valeant bonds on my screen. the bonds aren't moving a whole lot. so the credit markets aren't killing valeant. it's more an equity issue. >> and this is a stock, brian, as you guys know, we've talked about so often as being a so-called hedge fund hotel. many big investors have been in this name, something like 20% of the outstanding is owned by big investors, some of the biggest hunds. th hedge funds. it's been a name that's been around and believed in by big investors who at least ackman himself isn't wavering. i can't speak to the other institutions or hedge fund guys who may be in here but it

. -- andres will be joined -- andwill be joined morse bill ackman sits down with stephanie ruhle at 4tern. thank you for much. we will have more in just a moment. -- thank you very much. we will have more in just a moment. ♪ >> it is 3 p.m. in new york, 3:00 a.m. in hong kong. welcome to "the bloomberg market day." ♪ good afternoon, i'm pimm fox. here's what we are watching at this hour. selling and biotech and health-care stocks leading the nasdaq lower. , we will find out why the bears are in charge. commodity prices surged today. crude oil gaining more than 4%. companies like freeport macro ran surging ahead out there, we have got details. microsoft releases three new smartphones and tablets. microsoft, can he make a dent in an already saturated mobile phone market? this is

i sat down with bill ackman. build it was a big surprise., the big cough or 2016 was to see mike bloomberg running for president. what i found interesting was donald trump's popularity. it is one of the things that drives him. so muchwhat people like about donald trump, the idea of who he is, he said donald is not actually that here and mike is. bill's words, not mine. >> later, emily chang will sit at the vanity fair and san francisco. right here on bloomberg television. best we will look at the of the day. that will be coming up on "bloomberg ." ♪ stephanie: welcome back. we have had big and special names with us today. let's take a look. >> i think the risks are the downside. the industrialized -- industrialized world are ok. now we have emerging markets submerging p are not have been very clear there is no reason to raise rates until you see the whites of inflation's eyes. i have respect for janet yellen and a job she is doing. it is not yet over. kevin plank. >> one thing to know, it is not the finish line. so many entrepreneurs get

a four-hour presentation by hedge fund titan bill ackman one of its largest shareholders, failed to sethe stock slide. he came out in defense of the company saying he still believes innant and ceo mike pearson saying he still takes issue with a few things. first he said it needs to improve its customer relthss, investor relations and government relations. he also said valeant should have disclosed more about its relationship with with the philidor pharmacy and he expected communications and disclosures be more robust going forward. ackman compared the situation with the that of american express in the 1960s when a young investor named warren buffett bought the stock at a discount after a scandal drove its shares down. ackman last week increased his stake in valeant. the drugmaker, however, still has several things on its plate. multiple government inquiries into its drug pricing and patient assistance programs plus the threat of another report from short zoeller citron research. that's the firm that sparked the controversy. citron coming out on twitter said saying it's got a new report

iz and we have lots of interviews today, including bill ackman at 4:00 p.m. eastern. stephanie ruhle will be interviewing bill ackman. we are really looking forward to that. in the meantime, we want to check in with mark crumpton. he has our headlines. much.thank you so a former united nations president is accused of taking more than a half-million dollars in bribes. federal prosecutors say john ash was paid off for steering lucrative investments in government contracts. he was the u.n. president in 2013. a wealthy macau developer and four others are facing charges. the national transportation safety board has opened an investigation into the sinking of a cargo ship near the bahamas. all searches have found is one body, a life riserva, and a heavily damaged life vote. the ship sank last week. 33 people were aboard, 28 of them were americans. south carolina gets a break today -- the rain has finally tapered off. floodwaters will keep rising in parts of the state. off likes are cut islands after the record rain storm washed out roads. at least 14 people have been killed

of ahead, outspoken hedge fund manager bill ackman turning his attention to a new industry.at he says about the high cost of drugs. we will hear from former treasury secretary larry summers if he thinks the fed should raise rates this year or not. and he will look at samsung's new strategy. and 80% jump in quarterly profits. ♪ ♪ betty: welcome back to "bloomberg market day." time for our business flash. type is running out for fiat chrysler. they will go on strike tonight if they do not have a new contract. they projected -- rejected a proposed the deal. the uaw are present about 40 thousand employees. volkswagen says in january it will start recalling the cars involved in the emissions scandal. up to 11 million cars have software used -- to cheat emissions tests. highropped from a session that we thought about 45 minutes ago after the latest inventory report came out. stockpiles of by 3 million barrels. expectation was for a decline. it was headed for its longest rally in six months before that report. you can get more business news at bloomberg.com. just a click away. head

tophanie will be talking bill ackman, the ceo and founder of pershing square.s known be the world activist. i think he's fighting for that role with carl icahn. they fight about other things, i should add. and it's not all just in new york. to emphasize the global nature of finance and the interconnectedness of finance and markets, which is the business we are in. we are holding concurrent events in hong kong and london. to my knowledge, the first appearance in a public setting like this since he departed deutsche bank -- that will be amazing. the private equity tighten behind terra firma will be in that event. class andmaster custom presentation to our audience only. it is going to be pretty extraordinary. david: are there other themes you expect to unfold? --erik: i'm going to be talking about where barry diller is going. that is the business everyone is in. the transformative, disruptive role of technology will be a recurring theme, as is this idea of interconnectedness. and the role technology is playing in increasing the degree to which the world of financ

we got an announcement from valeant pharmaceuticals as a response. .e also heard from bill ackman >>e hasn't sold of any of his holdings. there's a lot of pain and for him another had fun -- hedge fund managers. close, $462 million in losses. there's a fascinating debate on how valeant will look at sales. send it to the specialty pharmacy? >> a lot of questions. $900 million is a question. >> american express results crossing the wire. of $8.2arter revenue billion, $1.24 earnings per share, missing estimates. for $8.31ere looking billion. the story has to be how does it get itself back to position. it suffered the loss of its partnership with cosco. as a great story and bloomberg businessweek detailing how that deal fell apart. there was a relationship that paid off. alix: what you do now? everyone's flocking to other credit cards that offer just as many points. things over to joe in london. my: i want to dive into terminal to look a story at europe that's not getting attention and may not be a huge deal, but kind of interesting. portuguesen the ten-year bonds. the spanish ten-year b

bill ackman spent four hours defending valeant from sickles. -- pharmaceuticals. 19%,s were down as much lowest since july 2013. >> profit fell at chevron. the company is cutting thousands of jobs. net income just over $2 billion, 4 billion less than a year ago. chevron will cut as many as 7000 jobs. vw willing to make a deal with employees that have knowledge of the emissions of scandal. they would be off the hook for any possible claims. that is according to a daily newspaper in munich, helping to advance an internal probe. many suspects are refusing to cooperate. >> dupont is opening the world's largest ethanol plant. the $225 million refinery plans to make 30 million gallons of ethanol each year. the industry is battling controlling companies over how much ethanol the government will require for the nation's gas supplies. >> that is your bloomberg business/. it is investment banks are telling investors that it will take years for overhauls to come through. what does that mean for european banking? your best known for correctly predicting the financial crisis, so give us your best for

i sat down with bill ackman last night. we will be sharing that interview with you.ion for 2016 was not about the fed about herbalife, about biotech. it was about mike bloomberg. if you are looking for "bloomberg

bill ackman lost 700 $80 million just today.e to help us sort out the details is elizabeth joining us from san francisco. what was the main point that citroen research was making in the report? reportth: we got the saying that valiant has been working with pharmacies related to fill a door essentially taking some of their products in inventory, stuffing them into the channels of fill a door and counting them as a sale. this is the first we've heard of philadore. they have said they have been working with the specialty pharma and they have the option to buy them and they have been consolidating revenues. this is a brand-new entity we are hearing about. this is not confirmed. this is from the cintron report is morning. alix: they are short seller so they are happy when the stock is going to fall. when i look at valeant sales, they were up 60% in the third 36% in the third quarter. they alluded to this in their third quarter call on monday. suggested 10% to 20% of u.s. revenue could be related to the specialty channel. that would e

of course bill ackman doubled down on that stock. >> i don't know if he doubled down but he put some additional. >> it's now his biggest stake. >> i thought it was his second biggest. >> i thought it was now his biggest. >> it's big either way. >> he told scott he bought 2 million shares on wednesday. yesterday the stock got whacked again. two quick things here guys. number one, the what they call the insurance to ensure the debt, the credit default swaps on valeant are bad. whereon the exact price but they continue to rise. the bottom line with that means the market is betting the odds of valeant defaulting on debt continue to grow. and number two, the news of this conference call broke during power lunch, the 2:00 show. my initial reaction was why wait until monday. >> that was my reaction. >> viewers wrote in and said they have to legal up and make sure that everything is right. here's the reality, you can do a conference call monday but what you need to do is come out, come on cnbc and say listen we don't need complex slides to justify our business model because if you're that su

we're just few minutes away from that conference call that bill ackman is holding on valeant.n the wall street journal today and it looks like a lot of things are under pressure. that stock looks like it will open down by $7 or something. what do you think and what do you expect to hear from ackman today? >> there's a cash flow story here. the cash flow is good. i've been adamant there are two stocks in the segment that often get confused, ailllergen and valeant. what you hope valeant would do it hope that they talk about the underlyings, underpinnings of the core business and how that business is doing well. not necessarily reason to own it but at least not to short it at 88, 89. >> we've also got some earnings out this morning from exxon and chevron. while the profits are down significantly, you are looking at companies that are beating expectations. some of it for exxon was the downstream operations what does that tell us? >> it's important to recognize that marathon cut its dividend yesterday. why? because marathon split into the production and split into the refining and

there's some major long holders in the name, including bill ackman. and others.he view is there may be an issue in the specialty pharma business here. the business of there have been lawsuits filed. and a letter from the general council of valeant asking for unpaid money of what seems to be a shell company. but by no means did they think it justify the 30% drop. so a lot of them are buying. >> exactly. as we heard from them again today. thank you very much. valeant down about 20% on the close today. the story is not over yet. >> we're just a week away from the big gop debate on cnbc. which candidates made the cut and which will have to duke it out on the undercard, we will get you those details when we come back. 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. it's gotten squarer. over the years. brighter. bigger. it's gotten thinner. even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfini

. >> reporter: well, i think one guy on wall street, his name is bill ackman saying it, and he said itin today. listen, i know bill a long time. i'm sure mr. ackman, a billionaire hedge fund investor runs in some of the same circles as mike bloomberg, former mayor, billionaire, runs a major data company, they run in the same circles. mr. ackman spoke at a conference in manhattan, the mfa conference, managed funds conference, he believes strongly that bloomberg is going to run as president, run as an independent, and he believes he's going to announce this in the first quarter of next year. here's what he didn't say. how he knows this. i spoke to several people at conference that heard him speak. you didn't get the details like a main detail would be i spoke to mr. bloomberg himself and he told me, he didn't say. that take it for what it's worth, it's mr. ackman's surmise or maybe know when people are close to mr. bloomberg are one step removed, but he did not say how he knows it, interesting scenario. he's a competent guy, whether a guy wanted to ban soda can resonate in the heartland

marketing companies, herbalife one of them, that is the company that has been regularly targeted by bill ackmanays new information about the company -- he won't tell us what it is, but he has no information. from a personal beauty company. is that it was affected by currency and weaker demand in china. that seems to be the theme of the day, so between the ackerman commentary and new skin earnings, we are seeing both of those stocks tick ahead. betty: we were talking about earlier, jim bianco, earnings overall are not expected to be good at all this quarter. in fact, we have seen earnings estimates basically decimated. where is the driver for the markets here? you are not seeing any good indications right now. julie: there's two ways to look at diminished earnings estimates. on the one hand, it's a sign of pessimism, sentiment in the market. on the other hand, if you're diminished, does that leave more room for companies to beat the estimates? a lower bar to beat. ofwe know also, 2/3 companies tend to beat earnings-per-share estimates. the gap tends to be pretty wide, it's just a question of how

bill ackman, coming out saying he would support him for sure. could it happen? is it being seriously looked at, and if so, would this siphon off votes from any democratic nominee? reporter: it could. that is important point. michael bloomberg talked about this before so you have to take it with a grain of salt. he is serious person? absolutely. are people around him serious about considering this? i think they are. his advisors are asking. here is bottom line, if bloomberg gets in, webb runs independent. donald trump runs as independent, republicans lose. jim webb runs as independent i could take votes away from democratic nominee in key states like virginia. trish: we might hear a lot about climate change. ed, thank you very much. out with the old and in with liberals in canada. decade of conservative leadership ended with a surprise landslide victory with justin trudeau. here he is at a victory party in ottawa. he is the son of pierre trudeau who ran canada in '70s and '80s, super left-leaning prime minister. did no favors at all economically speaking to the c

their bill ackman was the number one performer and hedge funds last year.eholders. before with less them down the toilet, let's just take a beat. >> bill ackman does his work. he really does. but there are times with the company's stuff is going on, and to the not surface senior management, and if it does sometimes it does not get out there as quickly as it should. i don't know what else to say. [laughter] thank you for taking time off from your reporting date you share with us some observations on the call in london. next up we will bring you highlights from today show. it is called as heard on go. ♪ >> welcome back. let's take a look at some highlights from today's show. booming,dustry is power has shifted much more to the creative and strategic agencies than the traditional powerhouses. ends of the day, and if it is not our ally, it is just are. aboutt important thing turning around a company is to understand how complex the processes inside the company are. somebody once said transformation in a company is like sending her hair on fire and you get out w

bill ackman doubling down on the holdings of valeant.t's the largest holding in the portfolio. >>> u.s. headlines are pushing lower as china stimulus fades. and a 7.7 magnitude earthquake has hit northern pakistan with tremors felt as far as afghanistan in india. [ male announcer ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ our passion to make it real. sometimes they just drop in. always obvious. 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. >>> welcome back. let's have a look in on european markets. as you can see, mixed trade but leaning towards the negative side of things. it does, of course, follow two very strong

all this is happening after bill ackman plans to hold a conference call tomorrow.s going on? >> i think i need stock therapy after what's going on. ackman's call is 9:00 a.m. from my conversations with people, they aren't expecting any good smoking gun here, in ig to really take from the tables as to what we heard about valeant so far. they expect a detailed presentation to go into why this isn't a fraudulent company. the language everybody is using about what's going on at valeant, what it's not technically illegal. so that's raising concerns about even if it's not technically illegal, is it still kind of on the borderline? that's making people feel uncomfortable. valeant's largest shareholder put out a letter today explaining its investment in valeant saying maybe they shouldn't do everything in legal limits to maximize profit. that's not good for the reputation of the company. this news coming out today that valeant stock down that these pharmacy benefits managers are saying they are not going to work with philidor because it violated the terms of their agreemen

bill ackman and that will be fun. and will be joining us for the entire hour.ie: sab miller turns down a takeover offer from anheuser house. david: well congress approve the pacific trade deal? stephanie: scandal hits one of america's favorite past times, fantasy football. ♪ david: welcome to the second power of "bloomberg ." i am dated weston. stephanie: i am stephanie role. the founder of oaktree was with us and he is still here. guess who else? brendan greeley. brendan: we try to high-five. stephanie: i am a horrible high-fiber. brendan: that was impressive. stephanie: billion there and willthe past tom stier join us but let's get you bloomberg's first word. vonnie: thank you. the two biggest names in fear making one not be getting together. sab miller rejected an informal takeover offer from anheuser-busch inbev. some shareholders or looking for an opera and the $110 billion range and no word if ab inbev will come back with another offer. a senate committee wants to know president obama is pulling too many american troops out of afghanistan. all makers

bill ackman pershing square down 12%. david einhorn green light down by 17%. dan loeb's 30-pound, 4% for the year so far. what are the take-aways gary in your view? >> i call it the word liquidity. on the way down there was hardly any liquidity. that is why you had such vicious drops to the downside. interestingly it feels no liquidity as we rally up. i think market is trading thin and that's what these people were caught in. most are very invested and not diversified and they were caught up but if the market continues to rally they will make a bunch back. deirdre: brad, your longer term strategies. they're meant not to be even quarter to quarter. they're meant to be year holds. >> i think it says a couple of things. first of all, many of these investors are invested in some of the same opportunities. so, it argues to me, perhaps they're running out after large number of opportunities. if they're focusing on a couple of different plays, maybe there is not a ton of opportunities out there. second of all, they don't want volatility like this. they're willing to

. >> irene, i haven't spoken to you since activist investor bill ackman came into the stock in a big way, $5.5 billion investment. have you had any discussions with him? what does he want? >> well, we've had some discussions, just as i do with all of our shareholders, and we've exchanged views on the business. i remain quite confident in our long-term strategy sxsz targets. i think we will continue to manage our playbook. it would be inappropriate to speculate on the long-term goals, but i think in the near term we've delivered very sizable returns to shareholders, and i think we're well positioned to continue to do so. >> is it a friendly conversation, or is there something that he is asking for that doesn't fit into your playbook? >> well, i wouldn't -- it would be inappropriate to talk about conversation with him and other shareholders. i'm quite comfortable that our relationship with all of our key investors is very strong. we continue to have ongoing dialogue. as i said, we've been performing quite well. we've delivered solid shareholder returns. our dividends -- we took a divid

bill ackman, paulson -- they are all getting smoked.r anyone marc:. -- anyone. marc: a lot of that, if you look around the world, people have gotten caught flat-footed. on the equity side, everyone is buying the same names. when you want to get out of the name, getting out of the name brings prices down 5%, 10%, 50%. for someone like bill ackman, you have to buy such a large block. now you are in, you can not change your mind and you cannot get out. in the market, now, there is so much more volatility and everyone knows who owns what, because it is all public. everyone else knows you will have to sell sooner or later. i will start shorting that. stephanie: has. frank and the volcker rule aggravated this pressure, even though you are talking equities, even though you're talking the names -- no longer can investment banks cushion the blow. it.: that is the biggest issue out there is the lack of liquidity. everybody, sort of, does not want to focus on it, but whether it is on the equity side, the realsaid he, when you have sellers, prices