but let's kick things off by welcoming bill ackman on set. thanks for being here. i would like to get right to valeant. you were at the berkshire annual meeting where charlie munger called valeant quote, a sewer. mr. buffett said the business model was enormously flawed. on cnbc this morning he said i don't think you would want your son to grow up and run a company in the manner that valeant was run. how do you respond? >> we made a lot of changes in the last few weeks. i have been on the board for about five weeks. we have a new ceo, joe papa, who is starting today. today is his first official day. appropriate i should be on your show. the company's made some mistakes but i think where charlie is wrong, he's wrong to indict an entire company on the basis of a few mistakes and a leader that is no longer with the business now. and the 22,000 people work for this company, i think this is a great company. when you look at the -- one of the things i was sort of thinking about to give you a sense of context, think about when berkshire invested in goldman sachs. goldman

at the annual meeting of berkshire hathaway over the weekend in which bill ackman did atte attend. charlie munger had some very harsh comments about valeant calling it a "sewer ". warren buffett said the business model is flawed. i asked mr. ackman to respond to that. >> company's made some mistakes. i think where munger is wrong, it's wrong to indict an entire company on the basis of a few mistakes and, you know, a leader that is no long we are the business now. >> today was the first day that new ceo was on the job. bill ackman having many poz things to say about where mr. papa can take the business from now. they've been the poster child on the issue of price hikes. lots of criticism bill ackman and the former ceo were on capitol hill answering questions about that very topic last week. in fact, i asked bl ackman if price rollbacks on some of those drugs was on the table and he said, yes, the board is considering that. here's what he said about asset sales which some have speculated could happen at valeant to deal with the $30 billion in debt. >> the company has no plans to sell

bill ackman. >> bill ackman really wanted you to speak to him because he said you're doing reputationalto a company you don't understand. he wanted to you change your mind. will you change your mind on valeant? >> i don't think so. there's a complaint about my saying valeant was a sewer, i thought my complaint would come from the sewers. [ laughter ] >> that is unbelievable. he said the suers should be complaining more. up another 9.5%. what the two investors said negatively about it has not hurt it really that much? >> well, yeah, a lot of the losses are built in and they have a lot of assets. you know, that was a fascinating interview. you interviewed both of them afterwards as well. you got great quotes. two interesting things they mentioned. buffett, don't they look alike? liz: you should see early picts. they look exactly alike and they're best friends. >> buffett believes that valeant could easily sell bausch & lomb, that is a big question, ackman, the baby buffett who is controlling the company in a lot of respects said it doesn't want to get rid of -- doesn't want to have valean

then bill ackman sits down with scott wapner on "the half." don't miss that. but stealing it only took a few days. female announcer: protect your money. find out if you're dealing with a registered investment professional at investor.gov. before you invest, investor.gov. (p...that, you haveit, wait! yoto rinse it first like... baked-on? it's never gonna work.alfredo. dish issues? cascade platinum... powers... through... your toughest stuck-on food. so let your dishwasher be the dishwasher. e? told you it would work. cascade. >>> here is your cnbc news update. the family of the late music icon prince headed to court northis morning. the singer died without leaving a will. his multi-billion dollar estate will be divided among his six siblings. his cause of death is still under investigation. it is feared prescription pain medication may have played a role. >>> the brussels airport departure hall reopened following the deadly extremist attack in march. new security measures are leading to long lines and long delays. the airport is now at about 80% capacity, servi

and yet we've got bill ackman saying it could be the buy of the century. we got to solve this. >> ackman will be on with scott at noon. >> yeah. i don't know, david, do you think it's a sewer? or more of like, you know, maybe a not great house. >> i think, listen, we've talked for a long time and actually we talk when the stock was far higher about the many challenges faced by a company whose strategy was based on what seemed to be a very low tax rate and an aggress i acquisition policy and with those acquired companies what we've learned, jim, is perhaps we didn't appreciate how much they raised drug prices. all that said mr. ackman will come on and i'm sure give very strong defense of his very large position there of his significant place on the board of directors for a company that has to be change board of directors up very much across the board and a new ceo taking a seat, i guess, any day now in mr. papa. and the stock is, what, low to mid 30s, right, jim? >> yes. >> drive given that debt load will they sell a significant asset? no shortage of questio

how did it go over with bill ackman, the baby buffett wannabe be? that is funny. audience. he was in the audience. he heard what was said. monger and, charlie monger and warren buffett, by the way great interview. i was glued to the tv before, when those guys talk you listen. they make a lot of sense in the investing world. these guys generally understand long-term value. they basically said, they basically put investors on notice this is a company that is extremely problematic. you put your money in there now. there is a battle going on wall street. liz, you and i were first to report this. this is company, people still long the stock even though it is going down amid all this congressional inquiries about them raising prices and all other stuff involving potential irregularities with dribs to, longs will say, listen this has a lot of assets, valeant. they own all those companies including bausch & lomb. they can sell the assets to pay down massive amount of debt and they can still be a profitable company. and shorts are saying, people not short but skeptical lik

if they're saying they're going to get out after two years of being blistered by bill ackman with $200 million fine and injunctive relief, it could hurt earnings. they may be forced to scale back and aggressive marketing to distributors. that's what they were criticized for by ackman. luring distributors thinking they could make money by selling the shakes when it's difficult to do so. maybe a bigger earnings hit to the bottom line. $is if they get out of this without being shut down with a $200 million fine and injunctive relief, stocks are going higher based on what we said. we knew this is likely what they were going to report. based on my reading of the 10 q, this is exactly why they're up. david: we'll be watching closely for this full our. thank you very much, melissa? melissa: gopro is out with first quarter results to. lori rothman on that one. >> the market liked what it heard on after-the-bell earnings. shares up 7% in the extended session. it is the second consecutive quarter for loss, the exact number is a decline of 63 cents per share. but the expected loss, which is actua

liz: and for a guy like bill ackman, the billionaire at pershing, took a short bet, he may lose out.ound something in this amount of time, what are the likelihood they're going to find something over two years, three years? >> you've been talking to me about dow 20,000. are you like high? [laughter] >> well, we're at 17,000 right now, charlie. >> explain why you think without heroin needles in your arms -- liz: guys, we gotta run. when we hit that, get close to it, joe, come back. jump on it charlie gasparino. as we have six minutes to go before the closing bell rings, we're looking at a big gain of 148 off the highs of the session, though. don't go away. . . . . . . liz: financials are driving what you see on the screen for the second day in a row. although you could argue this is a pretty broad based rally on relatively thin volume but my next guest is here to tell you there is one good way to get into big by buying small. you don't want to buy the big banks. that is what don scriber is saying. he is of course is with wbi. good to see you. >> thanks so much, liz. liz: you have a co

economy or just good for the people who run the funds. >> is there concern about the involvement of bill ackmanent in valeant which has been a target of congress s? >> ackman was a passive share holder in valeant until the end when it became a disaster when he stepped in to fix it. so i think his reputation as an activist still has to be judged. we still have to see what happens to judge him on valeant. i would say that is a less of a positive story for an investor which was in there through the entire thing through mike pierson's strategy of raising prices in order to reduce earnings. i think it's more of a negative for them than it is for ackman. on the flip side, j.c. penney a negative for bill ackman. microsoft a positive. you arean't take one activist investor and say good and take another and sad h. say bad. it's case by case. >> bethany, they are rich and they will find some lobbyists to take their money. somebody will take their money. but i'm going to ask you, if you were the lobbyist or the pr person for this group, you would work with them or do you think they have an impossible tass

for claire, the way she talked to bill ackman and the way she talked to pier son, all she had to do was walk across st. louis, nine miles away from her office, and she would find mallinckrodt and find the real offenders of the system. >> on what basis do you have to make the suggestion that the drug mallinckrodt uses, doesn't work? the fda approved it for 13 different uses. what studies have you looked at? >> scott, scott, how about this? i'll give you one better. what studies have i not looked at? every major clinical journal discussed that this has no proper clinical test. this was approved as an orphan drug 50 years ago where you did not have a prove that a drug worked. you had to prove that a drug was safe. those are two different things. it comes out weekly. as a matter of fact, three years ago, when the insurance policy companies had pushback on mallinckrodt, it was not because of the priesh, even though we talk about a drug that's $36,000 a vile. used to be under a thousand. it's $36,000. insurance policy companies said -- scott, very important, we should practice evidence based

bill ackman was on our show yesterday defending valeant and said the valuation is attractive at thisnt. have you ever owned it? did you look at it in this selloff of some 86% or whatever it's been from the high and say, you know what? this stock has actually gotten to the point where i think it's attractive enough to take whatever risk exists in that story. >> first, we do make public filings, and you'll see that we have owned it, and i'm not commenting now on whether we own it or don't own it. it's a tough stock to get right. you're not quite sure what earnings or in their case ebitda, call it, because they have a lot of debt to service, and i think they have -- i think they have some god brands. there's still a lot of uncertainty. i'll tell you. when bill ackman and charlie munger and warren buffett start duking it out in the ring, i don't want to be in the ring. i'll let them hit each other and i don't want to be collateral damage. >> we were happy to be in the ring. another story for another time. joe? >> my question related to that, but going back for one second on donald trump,

sound -- >> no, no, charlie and warren will very rarely say anything negative in particular about bill ackmansonally. in fact, becky tried i think to elicit an answer specifically about bill. warren said praised by name and category. >> so he could have said the category. it's clear what his intention was. if i were bill ackman i would have taken it personally. >> warren has made a living out of being the evunkular -- >> uncle -- >> i guarantee you over the years, he's taken advantage of pricing flexibility. >> that's what the business with a motive. >> and there were times not to raise insurance premiums and he was fine for that. which i'm not faulting him for that. not faulting, i don't want to be no sanctimonious about it. >> because it would be hypocritical? >> right. he has turned into -- people who have dealt with him over the last 40 years he was tough. >> he can get tough. >> he should raise the price of blizzards because they aren't healthy and people shouldn't be eating them. if he should help the american people he should raise the price of blizzards. >> and munger talking about mc

one has to do with herbalife, the long story there, the accusations from bill ackman that the company a pyramid scheme. it is being probed by the ftc. the new york post saying the ftc is scheduled to meet regarding a law enforcement matter. they do have a meeting scheduled for 1:00 p.m. tomorrow. .t is closed to the public shares are spiking. cfo sayinges -- the in a conference today that their strategic review to sell the core business that's he says it .s going very well we are watching alibaba in relation to yahoo! as well. this long-standing situation. david: thank you very much. still ahead, how one life coaching pioneer helped form an entire industry. ♪ david: this is "bloomberg market ." if you know anything about are coaching, chances you know martha -- with me is editor ellen pollock. she is very california. ellen: she is extremely well known, the life coach to the life coaches. she makes something like $3.5 million a year. has two full-time staffers. she has a column in the oprah magazine and has written a .est-selling book th she has made a second career training people to

happened in the senate may be month ago, when claire mccaskill treated bill ackman, it was terrible.e like criminals and in reality, the biggest offender of the health care system is nine miles away. they actually donate to her campaign. that has notunfair been in the dialogue when it comes to the overpriced pharmaceutical. valeant, this is a trading opportunity. where would you exit valeant then? >> i would need to see a lot more financials come out and see how the new pricing model fix in -- fits in and how their credit -- creditors are treating them. there are a lot of moving parts. understand a change of heart would also mean i would leave different than i believed initially. it is not true. i believe initially $200 per share, nothing at all is being priced in. many of the hedge funds have exited the position. sentiment, negative overly negative, i figured it was an opportunity and i own what was put against it for the black swan. right now, for me you have to look at the entire pharmaceutical industry. it is amazing -- how about this? valeant is not going lower without dragging

when bill ackman took a stake in leaves -- m-- mondo delez, there were discussions. about how the company has evolved since the merger. craig: they closed factories and cut jobs and improve the bottom line. they look at everything from top to bottom. they took out the mini fridges free jell-o more and string cheese. long-term can make they sell more macaroni and cheese and sup?h up -- and kat findinghad a hard time places to put cash. hard to say where they are looking next, but they have plenty of cash. the question is where it is going to go. david: julie hyman has a look at etf's.tech have you tried organic capri sun? julie: i've seen it. the xpi is higher. all three major averages are now lower on the session. ickedasdaq has now t into the red. this sector's performance is even more impressive. there are no headlines, but you tend to see momentum when you are talking about biotech stocks. ahead ofeing an uplift of the american -- the acquisition of celator may be giving lift to other stocks in the industry. biogen also on the rise. the european regulator released

company has come to a settlement over a probe as to whether or not is it is a pyramid scheme as bill ackmanleged, is citingyork post" an announcement between herbalife and the fcc today. the post said it cannot learn what financial penalty was involved, although it is said to be a sizable one. it is notwever that likely to change the fundamental business model of herbalife. shares are taking a leg up on this news. they have done well over the last year because the company has made indications that a settlement was at least approaching here. there seems to be some optimism that herbalife might be able to put this chapter behind it. that is one of the reasons we have seen the stock rally not just today but over the past six months or so as this has seemed to get closer. i'm sending it back to you, but i will see you in a few minutes because we are going head-to-head. mark: it is the battle of the charts. i face off with our very own julie hyman. do not move. ♪ shery: we are live in london and new york. it is time now for the bloomberg business flash, and look at some the biggest business stor

begano year-long probe after a shortselling campaign by activist investor bill ackman.hat is our bloomberg business flash. as record low interest rates and volatile markets -- for more how volatility is impacting the jobs market, let's bring in michael horn. let's start with goldman -- michael moore. let's start with goldman. they typically do a 5% cut every year. this year it is going to be a percent and they are bumping it up to 10%. this reflects the environment, the tough markets and perhaps the outlook for the rest of the year as you typically do not see the cost savings from these types of cuts for six to 12 months. this certainly does not bode well for the outlook. mark: banks are having to deal with all sorts of issues. this is the chart of the vix, the volatility gauge in the u.s. we have written a lovely story isthe bloomberg, not only there plenty of volatility but there is little volume. left.t the bravest have chief executive has called it paralyzing volatility that is scaring away clients and causing trade revenue to tumble to the lowest since 2009. clouds

at noon eastern don't miss bill ackman. stay tuned.siness worldwide. t to record that show. (woman) now we have to wait forever to see it. (jon bon jovi) with directv, you don't. ♪ you see, we've got the power to turn back time. ♪ ♪ that show you missed, let's just go back and find. ♪ ♪ and let's go back and choose spicy instead of mild. ♪ ♪ and maybe reconsider having that second child. ♪ ♪ see, that's the power to turn back time. ♪ (vo) watch shows you forgot to record. call 1-800-directv. >>> futures indicated higher this morning. up now 50. 25, 35, 45, now 50. almost 11 on the nasdaq and 7 open the s&p. our special hour with charlie munger, bill gates, and warren buffet will be right back. (announcer) need to hire fast? go to ziprecruiter.com and post your job to over 100 of the web's leading job boards with a single click, then simply select the best candidates from one easy-to-review list. and now you can use ziprecruiter for free. go to ziprecruiter.com/offer2 >>> welcome back to "squawk box," everyone. our special guest for the

. >> right now we have a departure from the hedge fund run by bill ackman here.am doyle who ma m say is a key figure in drag company valiant pharmaceuticals is leaving the hedge fund. this according a to a letter talking about what's happening with the investment funds overall in the letter. they also talked a little about the performance of the company and what not saying that the -- again, bill ackman saying there is much work to do at valeant including restoring the dermatology business to growth. also a lot elsewhere about what's happening elsewhere in the performance. they start talking about big contributors positively. a number of notable positions that have been detracting from the performance at pershing square. it's also worth pointing out that bill doyle, the person leading pershing square was on the board of zoetis. they maintain a near 5% stake in the company and have said they believe in the management and company's operations overall. a lot to sift through for now but those are some of the key headlines. we'll go through here and get you more. >> d

bill ackman gave scott wapner one of those cases. it seemed pretty compelling. it's been called a sewer by charlie monger the same day. the resurrection is duly noted. and the back from the dead jump today. maybe -- let's just call it extraordinary. maybe it is a new beginning. i'm open minded. i took a lot of trashing on social media, when i said the stock at chipotle wouldn't be destroyed. it's one of those moments i become so used to when i stick my neck out. i'm rated as a crown. call me crusty, see if i care. the stock is unchanged from the end of days quarter. i reiterate that, i believe the stock's going higher over the long term. last but not least, there's apple, stock had been down for eight straight days. last night tim cook came on mad money, and cook made a case that perhaps the service revenue stream isn't being valued correctly. it will keep going regardless if the unit slowed down this quarter or not. cook made a case for apple stock to be bought. bought right here because of that under evaluation. we know he's purchasing stock. i know many bears

. >>> keeping with the hedge fund here, bill ackman with pershing square, fund down $18.he big driver in april, the embattled pharmaceuticals climbs. listen. >> the market is discounting companies where prices is a meaning part of the driver. this stock is only going from $30 a share from 120 to 270, we're going to build a great company. and build a company that gross, large on volume, and not based on massive price increases. >> and that helped valeant's stock yesterday. >> indeed, it did. and steven cohen is seeing one of his worst fears coming through. telling the conference too many hedge funds placing the same types of bets contributed to sharp losses in february. he argues too many players are out there trying to do similar strategies. and if one big one goes down there's collateral damage. cohen says his worst fears were realized in february when his fund draw down eig8%. >>> ete reportedly going to negotiate its williams deal. energy transand williams are in talks to give themselves more time to negotiate the terms ahead of a june 28th deadline for the deal to clo

we'll be hearing from bill gates at 1400 cet, and we have bill ackman. plenty of guests.so do stay tuned on the channel. you're watching "street signs" this morn, we'll be right back. >>> all right, everything, ca a captain america is set to smash box office records. some analysts are predicting civil war could wrestle jurassic park off its spot as the second biggest u.s. film opening of all time. looking at also the movie reviews. getting quite good reviews, actually. did you watch, when you are in the mood to watch a movie, do you tend to watch anything that's on? if there's nothing on at the theaters do you go in anyway? or do you go back home? i tend to watch stuff even if it's not my top pick. so "captain america civil war." very busy and seemingly quite popular. maris maris sa meyer could get the severance package. $55 million. this includes a cash amount of $3 million over $26,000 in continuation of her health benefits, $15,000 for outplacement and almost $52 million in stock. >>> warren buffett has used his woodstock of capitalism to take aim at hedge funds. the s

bill ackman joins me in a rare and exclusive interview and said this. >> company's made some mistakes. i think where munger is wrong, it's wrong to indict an entire company on the basis of a few mistakes, and a leader that is no longer with the business now. >> so who is right on valeant and can that company turn itself around with a revamped business model that doesn't rely on increasing drug prices? that's the central question. not only the drug prices, but the rollup strategy that many people have criticized. >> it's clearly a huge question mark, can anyone do it. other businesses facing the same issue. aside from that, though, there is a tremendous amount of potential litigation here that we haven't even begun to see yet. we've had two more states piling on. so that's also big potential overhang in this country. that was a great interview, by the way. asking everything that one wonders. the part where he says, you know, to, you know, the ceo to put it on the ceo who's not there anymore, yes, but he did really craft the heart and soul of this company. 11 years? ten or something yea

over to bill ackman at pershing square, they made bigger bets by foods.perator of kfc and nomad foods. he did, however, loose his sweet tooth by reducing his stake in mondelez, the maker of cadbury. and now the filing confirms he cut his apple stake in the first quarter. >> i wonder how many people are following in their footsteps. >> yesterday, you can see the news in the stock price. >> yes, in the longer term. >> apple also got the biggest boost that shows an investment of more than $100 million. warren buffett's berkshire hathaway disclosed a deal. >> when it comes to the oracle of omaha, a lot place their stock bets. our own becky quick confirms it was one or both of his top stock picking lieutenants todd combs and/or tom wrestler that made the trade. both made it clear that portfolio managers have full discretion over the respective parts of the overall berkshire portfolio which mean they don't need buffett's permission to buy a stock. buffett himself has side away from making investment in technology companies. notable exception was that very massi

serious bids against bill ackman could be an adventure.ng fewer and fewer for avid equity to go after? devin: there is record dry powder in equity funds. they've agreed with partners to put that money to work in a record a lot of time and return value in profits to their partners. a populare has been area since the affordable care act came into effect. health care technology, drugmakers, the whole gamut. vonnie: any public response from high-profile shareholders? ask equitytrying to firms what their appetite for interest is. jon: coming up, oil production and whether high prices are here to stay. bti -- wti trading software in today's session. ♪ jon: check out the commodity market. oil trimming its third weekly advance. oil has surged 85% since february lows climbing above $50 a barrel yesterday. katie nixon is still with us. a quick question on what we are seeing. the debate being generated over the last week or so is whether the decline in inventories has made headway of the last couple of weeks. andrew: as far as the u.s. is concerned,

as you well know, scott, others like bill ackman are having a far harder time at the moment, too, raisingbout redemptions and pressure on that 2-20 model. >> karen finerman has a question for you, kate. >> given that steve cohen is running his own money, i would see the moves to february would allow someone like him who doesn't have to worry about month to month, that he would really benefit from that kind of movement. >> you might think so. in this case, they were just wrongly positioned. i know this from a couple of sources, too. he said on this panel last night, he said this 8% downdraft happened over four days. he was really worried about this grouping in the market and corollary effect it would have on him. and the other thing is, he makes money on more esoteric situations, which is how he put it. if you look at .72 holdings, they changed what they're holding every day, but they hold a lot of major names. a lot of highly liquid names. he means there's something in the financials that people haven't noticed or some sort of thesis at work that wouldn't be your longer term thesis. but s

you heard it yesterday, herbalife, from charlie gasparino, under attack from billionaire bill ackmantalks to settle the whether probe whether the company is pyramid scheme. the shares up 9.25%. donald trump continuing to make headlines over and over. might seek to reduce the $19 trillion national debt by persuading creditors to accept less in debt payments. would this essentially put the country into massive default? joining us now charlie gasparino. >> which do you want to do first? liz: quickly on herbalife then donald trump. >> don't get ahead of yourself on her a life. the stock loved our show. we previewedded. that is great to watch the closing bell with claman because when we come on we'll tell what you will happen, not what happened. liz: he always says something nice. >> all the time, shut up, big red. liz: i'm laughing. >> we teased what actually happened because i have sources in the government and among analysts basically said this what they're going to say. they said two things very key. advanced talks with the ftc. first time they ever addressed that, talks are in advant

the senate committee on ageing showed that none of these big hospitals were getting discounts, bill ackmanust joined the board promised he would do more to provide this discount. take a listen what he told congress. >> instead of individually negotiating these discounts, why not just make the 30% price decrease on them across the board? that was my suggestion. >> even if i use the drugs as an example instead of two wellson disease drugs, a 30% decrease -- >> i totally get it. >> okay. >> so we're going to come up with an appropriate price and based on an appropriate rational. >> we raised the price by 500%, cutting it by 30% isn't going to do it. valeant says it formed the committee and joe papa, the new ceo -- i love that you're still eating fries, guys. >> guy is going to need some of the heart drugs, soon. >> sorry. >> the company then putting out a statement today in response to the new york times article, the mayo clinic, cleveland clinics aren't getting discounts. this is not coming through and there may be gaps in the process and the patient access and pricing committee is working t

stock, we told you a week ago the embattled canadian pharmaceuticals favored billionaire investor bill ackman, she denied that and suddenly there is a report elsewhere, we remind you we told you that would happen weeks ago. the june rate hike is a game changer. lori rothman on the floor of the stock exchange, got their reaction, what are they saying here? >> reporter: traders on the phone, everyone making adjustments, whenever the fed speaks or facebook or any of this stuff it is a reason to make adjustments and people have incredibly strong opinions on these things. the message in the market is we will indeed get a june rate hike. you show fed fund future that 46% but look at other market indicators, treasuries are higher, the two are sensitive to fed moves at a two month high at the moment, 0.98% so that is significant. the benchmark, 1.78%, about three weeks high, the banks and financial the leading sector followed by technology, healthcare, or you losing big time, everyone rushed to their phone and that is what they do when they find something to talk about, the traders here, to get on th

so controversial because of this investigation, well known activist investor bill ackman been tearingwn for years. what we can come up here, $109 from reuters on 1.07 billion in revenue. the earnings per share $4.65. we'll watch news corp. and gopro for you, too. >> this is a fascinating company. stay tuned to "after the bell." they'll have the numbers. only a few seconds left before the trade ends and before tomorrow's jobs report, economists say the u.s. added 202,000 jobs in april. how can we expect markets to react if the number comes in unexpectedly higher? lower? let's bring in mark, he has 60 billion in assets for janney and scott. what are the numbers for tomorrow? >> maybe a little light against the consensus figure and the setup by way of the adp report that came out in the middle of this week that reported a number below expectations. seen a little creep in the initial jobless claims over four or five weeks and together suggests a little softening in the numbers but nonetheless, a number that's enough to hold unemployment steady but might be a goldilocks for the markets. li

. >> and let me ask you this, because some have criticized bill ackman, and he has acknowledged that he should have sold the stock when it was above $200, but the stock as you have been short publicly is down something like 75%. can you stay short too long or stay long too long? >> yes, of course. the difference being that he has taken on a lot of debt, and the company has take n on a lot of debt even though we were short the stock. so i would keep pointing out that the total enterprise value of the company is still $50 billion and so you are is to believe for the stock to be worth mid-30s that all of the businesses that pierson bought are worth 50% more than he paid for them. if they are only worth what he paid for them, the stock is worth zero. >> jim, can you think of any companies that have gotten into this position with over $30 billion in debt and less than half of it at one point in equity? how many come back are the that, and probably not many. >> not many. there have been a few, but not many, and the problem again here is that the business model. the whole idea was to the bu

commission to settle a probe into pyramid scheme allegations that you have heard on this program from bill ackman, and so it is best to treat the report with skepticism and care, and my source close to the company telling me that there is no imminent settlement, and while there is a deal in the future, dot no expect it today, and the ftc gave us no comment, and we have calls into herbalife, and persing square as well, and from are my source, they are in active and advanced conversations with the company and nothing in fact has changed is since the company in itself with the filing some two weeks ago said that it was in advanced life with the ftc and said that the remedy could be a number of things, including the settlement it put in the $200 million range, and if you will recall, but again, i am told with my source familiar with the situation that nothing is new. don't expect a settlement today. i am told that the talks are in the advanced talk stage and nothing new to report today. >> and here is something, judge, the options are derivative activity that we are talking about if it is a leading t

included larry think and bill ackman and it david einhorn. that is your business flash up date.lix: captain america and jungle book are big hits for disney. investors are concerned about espn. what will happen to the operating income? disney is the focus. the best, disney had quarterly profit in history. it was driven by the $1 billion income surge that you see right here. that is thanks to the success of star wars. -- movie made over $2 billion. that will show up in this scores reports. looks reallyndup good. they have another star wars movie still to come. disney may set box office history if they can generate $3 billion in 2016 in domestic sales. this is the problem. this is 13% of the operating income. cable networks made up 46%. that area is what's worrying analysts. espn is key to the cable business. generated revenue. 10% higherhave a field $7.31 this year. this could expose it to a high level of risk if the tv bundles lose favor. to dots a lot of money sports content. disney has $53 billion in sports commit. that's among the highest of its peers. we follow all of this. t

when you look at the managers who do it because they believe in it, i don't think you have seen bill ackman lead dog.proverbial i love apple. month, he doesn't care. he doesn't care what the press thinks or what the world thinks. he does what he does. alix: the problem is you look at something like the pershing square, staunch defenders of valiant. but there were other hedge funds in there as well. when the other hedge funds get redemption requests, they have to sell valiant. this 360 of pain. : that is exactly the thing. when you are leveraged at 20% decline in a stock in your $100 million fund, you have to hit the emergency escape button, even if you believe in the stock. and ideally, you want to do it before the next guy. scarlet: we look at the fees that these guys charge. the leveraged finance conference, there is a lot of concern that the fee model is broken. side of it, it is slowly trickling downwards. the 20% -- i'm going to say two things. you might get in little bit of shading on that, but people are trading on the performance bar and investors are more willing to concede on the

obviously the battered pharmaceutical company down 50% this week but bill ackman, on the board of pershingout its great prospects going forward. joseph pop taking over as role of chairman and chief executive. more cavuto -- neil: all right. they say timing is everything but reading this story in "barron's" over the weekend how isis is dying on the vine. then i get this report that isis apparently killed an american soldier, not just any american soldier, a navy seal. indicating even if you're advisor in that neck of the woods you are still a target and still subject to all rules of engagements of war. walid phares, donald trump's foreign policy advisor. walid, it begs the obvious question what would donald trump do to stop this sort of thing where advisors, they're still targets? >> absolutely. number one, you don't broadcast to hostile forces and enemy who you are sending and when are you sending them. number two, he would actually look at the whole picture, if those individual military we're sending to kurdistan in this case to help kurds push back against isis what is the strategy? many

bill ackman, who famously sold the shares short, has alleged the agency expects to pay about $200 million are up 11.5%. on the downside, update movers also. gopro is down more than 4.5%. they posted a wider lost and have been estimated and delay the introduction of the new car madrone to the holidays. finally, square shares down sharply. there are concerns about the financing for small business consumer loan programs. that is the service and have been do you potentially as a growth area. the company said it extended 160 day way in dollars in loans and advances, 4% higher than the previous quarter, but they face with credit market conditions. shares plunging 20%. scarlet: thank you. more bad news for workers over at goldman sachs. alix: sources say the bank is cutting more jobs and security units say it is roughly 10% of employees. the investment bank tries to whether trading and deal making. --'s ring in our reporter let's bring in our reporter. goldman sachs does tend to reduce some of the workers in the security division, 5% for new hires? this is different. >> or this is on top of that

it doesn't have such remedies or changes where you can say as bill ackman has made the case is at theery core of the business model is these practices that it believes it's not above board. >> i feel like we've been waiting for years for this. >> we literally have. >> to get this behind the company, that in and of itself is a positive. you can understand the reaction to the shares. but i believe it's primary. whatever the reaction is, you don't know. it's tough to chase here. >> again, you don't know the chase here of how they may have to change things. maybe it's not going to be as good of business even as it's been. >> that's a good point. it could be a relief rally. up 13% of the news. shares of square were initially higher. but they have ginn back the gains. it's down about 1%. ceo jack dorsey is scaling down to break down the quarter and discuss the increasingly competitive payment space. >>> now nobody likes to get older. will the company be able to deliver. that's later on the "closing bell." , the master of suspense and the macabre. i enjoy keeping people up at night. my analy

bill ackman's fund is down more th more than 18%.the combination of bad performance and overcrowded industry, you can see the rest of investors are going to start demanding better terms. >> isn't it interesting the dichoto dichotomy. when steven cohen says there's a lack of top talent at a time when we've had more hedge funds than ever before that i think he said during that panel discussion of all the resumes that come into point 72 a little bit smaller than s.a.c., 2% to 4% of them are actually what they're looking at. now, that's not unusual for any kind of institution that has a lot of applications to look through. he likes to see people who have a strategy, they really stick to it, and they do it for years and years. >> it's like charlie munger said. investing is really hard. anyone who tells you it's easy, it's stupid. it sounds like classic mungerism. it's really, really hard to beat the language. >> some of the hedge funds are interesting. david einhorn, for example, out with a quarterly letter. he says, look, you know. our t

alongside bill ackman.sting move here, like you said, guys, there's been some chatter, some movement around a possible settlement here. in this case, this consumer advocacy group, according to scott wapner, is asking for what it calls meaningful reforms in any kind of of a settlement there. so, just one more layer to add to this overall story. >> we don't know what those reforms would be at this point. >> right. >> thank you, dom. >>> acacia software debut. is the ipo market heating up again? bob, next week we're expecting u.s. foods? >> right. a week and a half from now. we've been waiting for the ipo market to open up a little bit. some signs it's happening. u.s. foods announced terms today, we've been waiting for a long time for that ipo to be auns noed. 44 million shares, 41 to 42. most ipo -- this has potential of $5 billion market capitalization. cisco is number one. they're set to begin trading on may 26th. remember, we've been looking for some big names to start coming out. they've been holding back

and then that was when bill ackman said they were going to take a look at this and it may be simplera 30% discount. some of the proumbly biggest customers using the drugs like the mayo clinic and cleveland clinic and they say we haven't gotten these discounts. so these are the questions being raised right now. we reached out to valeant. they said last week formed a new committee overseeing the prices of the medicines. they said the senate hearing two weeks ago revealed there may be gaps in that process of giving these discounts to these hospitals. any hospital available for the discounts receives them. so the question now is when will we hear from new ceo joe papa as to what solutions these r now back to you. >> all right. thank you so much valeant stock is down 75% just this year. a senior research anl wist piper jaffray has an underweighting on valeant and joins us to day. >> thank you. >> the reaction, when i first saw this report, i thought, you know what? valeant is now going to be much more of a target for congress. what is your interpretation? >> well, the report today didn't

in the crowd, lloyd blankfein, john sykes, larry robness, there you see, bill ackman, paul tutor jonesllion for charity. that has to be the most profitable fund-raiser in new york city every summer. >> by the way, how great is zac brown live? >> i haven't seen them there, were you? i've seen them in concert. >> who was the guy with the hair. >> jones. >> brans. >> my uva classmate. >> what happened to you, mathisen? >> wow. >> yeah. he's been extraordinary generous. >> excellent. >> hope to see you, paul, at the reu. reunion. our 40th, my friend. our 40th. >>> all right. 1,500 works of rare art going to the dwavl this week. including two master peels. a "power lunch" exclusive. standing next to one of those monets. nice to have you with us, brooke. we appreciate you being with us. >> thank you so much. thanks for having me. >> put this season's auction in context as against last season. we are hearing that maybe the prices may not go as high as they did? i'm thinking of one of the piece use have on sale. mow dill janne. last year it went for $180 million. this one this year is expected

bill ackman says it is shopping its block of the company.t month that it would not seek a new term for its representative on the board. they make this docudrama that steve loves to eat. lumber liquidators continues to feel the effects of the report of its tainted flooring story. itscompany has posted first quarter lost more than doubled the estimate. store's turnaround plan has not been paying off. fell short of the streets estimates. it is far worse than what we were looking for. first-quarter earnings may fall short of the $.44 target by as much as $.13. a huge gap there. the new ceo had predicted that signs of a turnaround would hit by the season, but that has not happened. old budget store chain, navy, is faring especially poorly. jonathan: just to be clear -- steve is matt miller dog. david: and whiskey is my son's dog. zoetis only makes drugs for animals. somehan: now time for stories and now here with us is charles. we are talking about credit suisse earnings. negative headlines and china's commodity bubble -- that is one fascinating

i know bill ackman follows us.he's got some statements. >> he definitely watches, we know that. >> see if scott wapner -- >> it's going to be a good one, man. >> is it? i'd better deliver. pressure. >>> when we come back, amc's entertainment chief adam aron on the busy summer season. dow's up 20 points. this clean was like, pow! it added this other level of clean to it. it just kinda like wiped everything clean. my teeth are glowing. they are so white. i actually really like the two steps. everytime i use this together it felt like leaving the dentist's office. crest hd, 6x cleaning, 6x whitening. i would switch to crest hd over what i was using before. >>> good monday morning. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen, simon hobbs, david faber at the new york stock exchange. market's up about 33 points, but commodities, and specifically oil, are acting as an anchor around their ankles. crude giving up gains from earlier this morning. >> a lot happening in the oil market. crude ne

have you met with bill ackman privately about the issue of fanny and freddie? calendar we're set up in a couple weeks, maybe two weeks from yesterday. we are going to sit down. obviously that's one of the things we discussed in the hearing. >> i was going to ask you if you know whether you're being vetted but we don't have time so you're going to dodge that one. >> i have no reason to believe i am being considered. thanks a lot. >> thank you, senator, we got that in. hope to see you again soon. >>> coming up, senator amy klobuchar, a democrat from minnesota, she has been mentioned as being on the possible list for possible running mates. actions speak louder. something we'll show you. through small things, big things, and spur of the moment things. big things, hey kevin. hey, fancy seeing you here. uh, i live right over there actually. you've been to my place. no, i wasn't...oh look, you dropped something. it's your resume with a 20 dollar bill taped to it. that's weird. you want to work for ge too. hahaha, what? well we're always looking for developers who are

. >>> bill ackman's pershing square reportedly selling 800 million shares of zoetis.t week, ackman told clients pershing's portfolio was rising. >> i don't think the bongo is used anymore. if your kids say they want to learn how to play the bongos, don't you try to say how about piano. >> or if you're a parent that -- >> did you hear now good the person -- is that one guy moving that quickly on this song? >> you don't think the whole thing is an electronic -- >> yeah, it sounds like something previously recorded on a deboard. >> i don't think this is like john williams. we've got to get you a theme song, over the next couple of days i'm going to be here. i'm going to try to come up with something. the theme from "s.w.a.t." maybe -- >> digressing a little bit -- paul quinn, remember him? >> i do. this morning, the futures -- ♪ mean one mr. grinch >> that's a good one. >> it's a little seasonal. >> cute. you can play darth vader. >> it's not even christmas and we're playing that. up 113. it started really in europe. much better tone in europe this morning. i notice that

and bill ackman increased its shares in valeant and mondelez. and cutting his its stake. and i don't know if that's because of what he was doing. >> i mean, you had to -- i mean -- in it's obvious for anyone who could see beyond the desk. >> i had people asking me -- >> she's putting food away. >> like jif fy pop. >> that's not exactly how it happened. >> we don't need details on how it happened. we have an idea. we have an idea. it was the first time in 15 years? >> oh, oh. >> yeah, it is. >> i'll prefer her to not you. >> it's okay. >> check on the markets this morning. home depot. up 32 now. it was up more. and then it was up when we first started, 11 or 12. now up 32 points. >> home depot. >> that's right. home depot. a ten-year, 1.76. take a look at the dollar. the euro down to 1.13. against the yen, the yen has been down, 1.06. that doesn't look like brexit to me. but who nose. the gold treading water, had a great beginning to the year, that's for sure. up for one of the best performing asset classes for the year. the question now, is it headed back up to 1500, 1600

that was touted by bill ackman who didn't present yesterday but attended. piled into it. it's been somewhat disastrous. here is sound from jim chanos who was short it. >> valeant was genius at gaming the system. that game is over. and so the ability to hike prices on drugs for toe fungus to $8500 from $800 or, you know, compounds like that is over. and that's what i think people are -- they're looking in the rearview mirror here not understanding that this was financial engineering. this was not pharmaceutical development. >> one hedge fund that's sort of an annual presenter at sohn that had a tough 2015 as well as a rough start to the year, larry robbins from glenview capital. larry is prone for being a particularly prescient health c care investor. his whole presentation was about i don't have any actionable ideas for you today but sometimes you have to hang in there. here is him elaborating on that. >> we tend to be a longer-term investor. there are periods and unfortunately we've sat through one between kind of august and the middle of february where be

bill doyle will part ways with ackman's hedge fund. played a key role in valeant pharmaceuticals investment which led to disappointing returns. the fund down 18%. >> and it aetna plans to continue its obamacare next year. it may actually expand. earlier this year reported operating losses about 3 to 4% last year and its rival united health t biggy has said it will exit most of obamacare exchanges in extrayenext year. >> andland dowdy joins us. >> the street is looking for earnings of five cents per share on refb of 52 million dollars. beyond the numbers. same shack sales. menu innovations went over well and are expected to give comps a nice boost. second, costs. commodity costs and rising labor costs are big proponents in the report and will likely put pressure on margins so listen for commentary on that and if shack is still on pace to hit expansion goals of opening 13 new restaurants in the u.s. in 2016 and the third thing to watch. is it stock. shares have had a tough year. down about 47%. in the past three years revenue increased a