this also confirms something that bill ackman said.gust, there was a hint that they took i not 800 -- they took million stake in some company. downplaying the fact that all of the competition is happening in china doesn't hold any flame to what china can do their because a lot of the other ones are lower cost chains. they have about 500 stores -- starbucks is where it's at. looking at the share price quickly, in terms of where we are coming you can see that come on the inter-day chart, it has almost hit $60. it closed up by about 2%. ackman says that their shares, right now, over the next three years could be a double. inry: when i was living tokyo, i had a game with friends, when you are walking, how many starbucks you would find. talking about bill ackman, his performance in the past hasn't been great. we were talking about valeant just now. it is better now. been doing better this year. up until spring or summer of this year, it actually has been in the ire of a lot of investors. fund wasing square down through late march. through t

newave bill ackman's position. disclosed a low holding back in may. it is starbucks. let's get to remain boss a coup has details. >> it looks like bill lachman's next target is starbucks, seeing shares rise 4% as he was presenting this grand idea conference, disclosing he has a stake in starbucks. it does not say what percentage that they give but of course, he has been on a great run all year. 13 percent-14% over the first quarter of the year. that comes after two annual declines in 2017 and 2016. he has had success this year. and even united technologies and he has his eye set on starbucks. vonnie: exactly. how was that trick for he can move markets and it turns out that is about a 10% stake in terms of funds, it is $900 stake in starbucks. we'll continue to bring news and any thing -- anything else emerges from their conference in new york city. $900, 10% of his funds. coming up, indicate we look at the applications of nikki haley's resignation as the u.s. ambassador. this is bloomberg. ♪ vonnie: i am finally quinn. nikki haley making a surprise announcement. the u.

eastern time sflfrmts for more on bill ackman's bet on starbucks. in the meantime, here is what else is coming up on fast. >> announcer: the rising rates are supposed to help financials. but the banks have still gotten crushed. we'll tell what you it could mean for the market. plus, pete's bringing the heat pitching a tech tighten down 12% but you won't believe how he sees it going. the name when "fast money" returns. rp. >> announcer: "options action" sponsored by think or swim by td ameritrade i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. >>> welcome back to "fast money. it's a bank purgatory. despite what should feel like nirvana for financials they seem stuck in willy-nilly o how far away is bank heaven .devil in the details let's get to dom. >> melissa, the easiest way to sa

haidi: bill ackman's track record has been a bit patchy of late.starting to see a turnaround? ramy: we are. through the third quarter this year, pershing square has returned under 16% to its shareholders. compare that to what has been happening on the s&p, which is just under 8%, you can see where the money gains are clearly happening. let me walk you through the biggest changes in position for pershing square. you can see the ones over this year. united technologies. bill ackman wants to break up the company, a huge advocate for that. he has a new position lowes as he tries to improve the company's performance. also they are taking money off the table, a soul position with nike. about $100vocacy, million. there is a sale for part of a stake in chipotle. 7.4% is the stake they now have. looking ahead, it seems bill ackman is on track to make his investors quite happy. haidi: let's take a look at some of the stories trending across the bloomberg universe. goldman lost another senior executive. terminal subscribers are reading all about the departure

that is one of the questions were about during the presentation with bill ackman.e will keep an eye on that. bites? jon: they are the real deal. vonnie: coming up, diverse stock is lower today after third corner earnings will come in significantly below estimates. we go to detroit for the details. this is bloomberg. ♪ jon: i'm jon erlichman in toronto. this is bloomberg markets. vonnie: i'm vonnie quinn in new york. mercedes-benz issued its second profit warning in four months. shares of daimler fell to a five-month low in german trading. the company blamed expenses blamed on the diesel emissions cheating as a reason for the warning. let's bring in david welsh our bureau chief. a lot of these companies are facing some of the fuel emission standards that will be more stringent in the near future. >> that's right here in european carmakers like daimler rely a lot on diesel vehicles to meet some of the requirements they have in europe. ever since the volkswagen diesel scandal, european governments have been looking more closely at diesel emissions, requiring more hard

a lot of cash from that nestle's big infusion. >> not every stake that ackman takes is an active stake if you could say hey, billere's a lot of wood you could chop at this company, instead of starbucks, what do you think that would be? >> i have a novel approach to this how about if ackman comes in and says, listen, i want all the trappings of howard removed because howard's not involved, you know what? there's -- it's not like steve jobs and apple, but you could argue that there are ways that i'm getting to the roastery here that maybe ackman thinks that the roastery doesn't give you an instant rate of return i'm with howard. i think it's a fabulous investment, particularly because i think boutique coffee is where the holy grail is. the milan opening at the beginning of september went incredibly well. they've been budweiser to craft beers, right and i don't know what more you can change i think kevin is doing a remarkable job he's doing many things right can they lower price i guess you could always. >> let's talk about trion and what they may be doing. >> i don't know. you come in and people are saying it ties

how about bill ackman with starbucks. i think he has anything to offer. u.s. should be getting better. i have been saying thstarbucks s turning. ackman has done well with the restaurant chain, but here is the thing, starbucks is good management, ceo kevin johnson is righting the ship. long-term, i like starbucks. how about ppg, frankly i don't know what to say about this one. had been a great performer under former ceo earlier this year, the company lost a key outlet, lowe's stopped carrying it. from the old heinz board of directors, i bet he wishes chuck was back running things. i don't know you can own ppg after a dramatic shortfall all in all, ppg and starbucks will succeed and fail. long-term, i like starbucks. campbell's soup, a different story. lobe wins, you make money. these big money managers won't save you from a hideous market keep that in mind the next time you see stocks surging on a bad day because we heard about an engaged or active invest or getting involved getting involved stick with cramer. i think we should do that meeting tomorrow. wel

tracee: that's right, bill ackman revealed funds have increased stake in starbucks to nearly a billionkman told the crowd in 2018 conference in new york that his fund has 15 at any time 2 million shares of starbucks which is about $900 million, ackman says he likes starbucks because they care for its partners and aren't threatened by increases of minimum wage. lauren: looking to change anything at starbucks? tracee: i'm not sure if he is. lauren: what made shares jump in a big way? tracee: activist manager has accumulated $690,000,000.2.9% stake in ppg industries, that's one of the world's largest manufacturers and distributors of coding and special team materials with the market cap about $26 billion, shares of ppg industries jumped more than 5% in after hours trading on tuesday. lauren: all right, tracee, thank you very much. cheryl: we have got a lot more coming up for you this morning. another award show in hollywood goes political. >> you know what else is voted on by the people, midterm elections on november 6, get on and vote. cheryl: yeah yes, that was taylor swift, we will hav

p >>> big moves by big activists we'll tell you about new plays by bill ackman, nelson peltz and dand president trump doubling down on his criticism of the fed, at this point it may be tripling or quadrupling down it's wednesday, october 10, 2018 "squawk box" begins right now. ♪ >>> live from new york where business never sleeps, this is "squawk box. ♪ >>> good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm melissa lee along with becky quick and a low wilfred frost. >> i came in this morning he was sitting like this. >> i was prepping. the screens are so low underneath the table i get for tv i have to go back up for the viewers, you made me stay like this >> there you go. >> i'm not going right to the top. >> the angel music >> i will go back down there we go. >> you are still too short >> yeah. >> you need a couple inches. ther

one more thing it doesn't show up in the power rankings ald at all, but we find out that bill ackmans taking a big position at starbucks i think it would be a mistake to chase -- after the announcement, but they're a well-run company i think it will have a good fourth quarter but that means you have to look through the uneven third quarter the bottom line -- if you want exposure to the consumer discretionary space going into the end of the year, this is if you're bullish on the economy, my favorites are amazon, which works well in the slowdown tjd and kohl's, vf and then nike in that order. let's go to brandon in pennsylvania brandon. >> caller: booyah from philadelphia, jim. >> good to see you, man. we'll be down there again. we keep going to philadelphia, i love that. how can i help >> caller: i wanted to diversify my meteorologist -- portfolio and i lack any consumer discretionary. as a 22-year-old college student many of my friends are going to casinos now and i figured instead of blowing my money at a casino on roulette or craps that i could invest in casinos instead. so i wante

bill ackman of per shallin squaul capital revealed a 900 million position in the coffee chain. sayi stock could double over the next three years. and he added the reiler is one of the best positioned if minimum wages rise. starbucks ss it looks forward to a productive dialogue with mr. ackman. starbucks show to 57.7137 and tank other talk is heating up at papa joans. they are there are reports the fund management is considering a bid for the pizzae chain but ts no guarantee that a deal according to the "wall street journal." papa johns has been exploring a sale whie it tries to recover h the messy battle w founder and former kmarm and ceo. john schnatter. shares of papa johns jumped nearly9% to 54 pft.990. american airlis says fuel costs are rising and that it lofts $55re million inue last month due to hurricane florence. the fuel costs concerned investors who sent the shares down more than 6% to 33 process.55. >> exxonmobil is committing $1 million over the next two years to promote a tax c onbon emissions by corporations. according to the "wall street journal, this type of do

their do wells like eddie lampert simply stripping out and pocketing lots of money even though his bill ackman as a businessman is provably quite poor in fact wall street goes into basically how he got around the look back clauses that could deal with fraudulent conveyance so why why obviously sirius has been a dead man walking for years so why did he wait all these years to finally declare bankruptcy right now they're going to go through basically keep in operation through christmas this is goodwill as opposed to achieve because they're going to keep these jobs through christmas we're going to care about the american population so they're they now have a debtor in possession loan of three hundred million dollars mostly coming from eddie lampert but one of the ways for lampard to get the real estate is to pledge it as collateral for a loan and then have the company default on the loan another way is this serious holding already sold two hundred thirty five of its best stores for two point seven billion dollars in sweetheart deals to ceratin age growth properties when it was still a sears and t

the recent jump is with that perspective as well. >>> bill ackman's appetite for restaurant names is g. leslie picker has the details on his starbucks order. >> reporter: you can eat all day from ackman's portfolio, you have starbucks from breakfast, burger king for lunch, oreos for dessert. food brands have been paying off for pershing square. after three consecutive years of losses the activist fund is up 16% this year. his disclosed investments of 2018, nike, united technologies, lowe's and starbucks have been followed by little sabre rattling by the billionaire investor yesterday's presentation on starbucks was complimentary towards management and their strategy saying they're taking the right steps to boost same-store company sales it doesn't appear that will be much fighting between starbucks and pershing in the near-term. starbucks says they look forward to maintaining a productive dialogue with mr. ackman as they do with all of their shareholders a source says this will not be the end of activism at pershing square ackman will do more in the future >> big stake, significant po

. >> bill ackman has revealed a $900 million position in starbucks.of saw a spike off the news but about some of the gains. ed: piece mostly very nice about starbucks, says it is a great company with great products. he's also complementary of the new management. he says they are new in the seat but they're doing a good job and he's pleased with the initiative. one interesting thing is that chairman of starbucks was the chairman of jcpenney when ackman jumped in there. that was probably his most acrimonious fight. he got rid of him and brought someone in who subsequently destroyed much of that company. so, from just talking to people before i came on air, mike allman doesn't have much in the way of love for that man. he hates his guts. it will be interesting to see how they gel with that nice guy activist. >> "the wall street journal" says softbank is in talks to take a majority stake in we work, with an investment between $15 billion to $20 billion. yvonne: the japanese conglomerate has already invested around $5 billion in the company since last year

while speaking at grants fall 2018 conference in new york, big conference lot of people go to, bill ackman revealed he's taken a long position, unlike the short position he had on herbalife, long position in the coffee giant, amassing a stake of 15 million shares. what's the value of that right now? at $57.83, $900 million. near $1 billion worth. pershing square says there's potential for starbucks shares to more than double in value over the next three years. right now they're not doubling in value but certainly getting a nice pop to the upside at 2.25%. we will be watching starbucks. >>> let me get to the international monetary fund. it is pointing a sharp finger at one culprit as the biggest reason for its downgrade of global economic growth. less than three months ago, i want to put this into perspective for you, the imf run by christine lagarde said the global economy would grow at 3.9% this year but now, citing the trade war between the u.s. and china, they have been forced to downgrade that to 3.7%. not the worst thing in the world but an even bigger slice has been cut from u.s. gro

and bill ackman is betting big on the stock is a big are rally brewing moments ago president trump withjerome powell, slow it down tp can could a war be brewing with the federal reserve? we start with the material warning. sound the alarm. >> warning. >> the sector far in awa

. >> so you've worked with bill ackman as an activist in chipotle you took a stake in starbucks, anotherany advice on working with mr. ackman >> my experience with bill has been a positive relationship he's hugely passionate about chipotle and we tend to talk about the food and what we like about the business hopefully the same can be said for all those other portfolio companies. >> it should be able to grow to the sky. it should. i could eat mexican food three times a day. i could really >> that'd be good. >> you got to work with me though >> we're coming your way the nachos will make its way there. >> maybe the bulls of some so-- some sort. you've got good burrito bowls. >> when we open, we'll get you -- >> do you have a card? >> i can get you a card. maybe even a gift card >> what's your e-mail? >> joe brings up a great point though the old management team seemed a little elitist and snobbish, if you will and you needed sort of a breath of fresh air >> just a little bit >> is that where you're going? >> look, one of the things we're doing with the brabd nd is makig it more visible and

charles: let's talk about hedge fund manager bill act match. he's re-- ackman.ares of starbucks doubling in three years. is it possible? >> i think it's possible, but i don't think it's because of what starbucks on its own has, i think it's possible because the market is going to go up that much in three or four years, for sure. but on its own, it's not a compelling play to me. i don't quite understand the metrics. their same-store sales are down, growth is down, they're expected to expand in china, that's not turned. the last quarter was, i think same-store sales were down 2%. they've talked down their global growth strategy, so it's not a compelling investment to me. he's in at 51, good for him, he's already got a profit. elizabeth: by the way, he's taken a big stake in tim horton's, chipotle. he has said earlier this year that china could grow nearly twice as fast as starbucks' overall profits, earnings from china. he's going to make a big push into china. watch for that. charles: we've seen other restaurant companies like mcdonald's, darden group, a new ceo

activist investor bill action man reveal -- ackman revealed he invested $900 million in starbucks. he called it a good bet and says starbucks has room to add stores in the u.s. and says china is a huge to opportunity for growth. >>> sears is doing everything it can to avoid bankruptcy. the struggling retailer hired alan carr, ceo of the advisory firm, adding him to the board. they have a debt due monday and dwindling cash horde to pay it back. sears has prepared a filing for bankruptcy. sears stock down 83% this year to below $1 a share. an american icon there. >>> amazon getting rid of a secret a.i. recruiting tool. artificial intelligence recruiting tool. why? reuters admits amazon is using artificial intelligence to refer candidates, but it's preferred male to female. in other words it learned gender bias. it vetted applicants by observing patterns in resumes, and most came from men. it began ranking men higher than women. even artificial intelligence we have gender bias. good god. >>> our breaking news coverage of hurricane michael continues right now on "early start." >>> good