i think carl icahn hit the nail on the head. here's the problem it's not so much that retail investors are buying these complex computer generated derivative type products and/or leverage products. the problem is that they exist you and i as individual investors are in the market. even though we don't own those products we suffer as a result of what happens with those products monday was a perfect example that was all led by that big short volatility trade the big trade that all these big hedge funds get into they pile billions of dollars into the trade when the trade blows up, the market comes under pressure. who suffers? surely they suffer but we also suffer people sit there and skracratch their head and say how could that possibly happen carl icahn is right. i agree. the s.e.c. and the industry has allowed some of these products to exist why? why do they have to be two and three times levered? why do we put all this money to work and potentially cause the breakdown? monday is only a preview of what we could possibly see. carl

i agree with carl icahn. we're in a secular bull market and you'll have a chance to buy stocks again. >> that is the way the playbook should go, jeff. i wonder if you actually think there's any relevance to the overnight low in the futures we've been so all over the map in terms of the way that things have been whipped around is that something we'll have to keep an eye on in terms of deciding when we've -- when we tested it? >> the overnight trading is thinner than during the session trading, so the e-mini s&p 500 futures were down over 12 handles overnight last night that's what gave you to woosh to the downside this morning. it looks like a picture perfect recovery so far, but i don't think it sticks. i think it comes back down we get a double bottom and then you're off to the races again. >> what do you think about interest rates higher rates better for the rally, lower interest rates? what's going on there? >> i just spoke at a lunch at rivera country club here in miami. the ex-head of the federal reserve

carl icahn was on "halftime report", and what did he have to say? >> we always try to catch up with big market participants like the rest of us, carl icahn was watching yesterday's volatility and today's volatility in awe, and perhaps fear, stocks moving so much so fast, and trying to make sense of it all. >> i don't remember seeing a market with this kind of volatility in two weeks so i do think that this is just telling you something. it's a warning >> yeah, a warning that given some of the derivative products out there, that today's correction could one day, icahn said, become an earthquake >> today you have to look at the leveraged etfs that are crazy. i have these index funds with leveraged etfs i don't see any difference between that and '29 i think this market will bounce back probably. you get thrill think panic thing, but one day this thing is just going to implode. >> icahn was on with us, what, in mid november, and said that the market had reached, in his words, a euphoric state, that it had, quote, run away and a big correction was likel

. >> ahead, carl icahn on whether he thinks this is your best chance to buy the dip. if not now, then when? plus, a man in the middle of the action and penn versus yale legendary jeremy siegel goes up against caution robert schiller. that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts to about 10 pounds of carbon dioxide every week. (malo hutson) growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. then that data runs across our network, and we use it to optimize the timing of lights, so that travel times are shorter. who knew asphalt could help save the environment? ♪ >>> welcome back to halftime report a quick note here. you'll recall on janu

we've had carl icahn talking to us and to our viewers about what they're seeing, lee cooperman yesterday. implement i want to bring in the other one, vinnie viola, his company, virtu, his stock is going up thank you for joining us >> thank you, scott, always nice to speak to you. >> do you think volatility is why your stock is having a tremendous day today >> obviously volumes and volatility dictate conditions under which a market maker has to provide price and function. i think it's a tad more, doug and the management have done a beyond, beyond superlative job. it's a real hard, rigorous execution around the integratin of two trading modalities met with great market conditions, volume and volatility. >> sure. and conditions, vinnie, i might add, you know, the typical investor watching our program right now is probably concerned about the level of volatility that we've been witnessing >> right >> what are your overall thoughts about what's taking place in the markets >> from a structural standpoint, from the market structural ecosystem, it could not have performed better the absorption o

billionaire investors, carl icahn, criticizing the deal to them buying fuji with xerox.investors argued that the deal dramatically undervalues the company. carl icahn is xerox's second-largest shareholder, with a 9.2% stake according to bloomberg data. xerox to both pushed historic options. americans are expecting their biggest pay raise in several years, according to the federal reserve. a 2.73%s anticipate increase this year, the most since the bank began to connect the data in 2013. they also found that 39% found they are in better shape than they were a year ago. 46% are expected to be in better shape one year from now. the san francisco-based solar giant fun run sword after the recommendation to buy the shares tripled the closing price on friday. credit suisse says it puts it and on track with tesla that they will continue to gain market shares, boosted by access to financing and a focus on value creation. coming up, bitcoin, bouncing back. regulatory fears subsiding for the moment, boosting other cryptocurrencies. will that optimism last? from new york, this is blo

i think a great guest would be carl icahn. he have a pretty famous debate he was criticizing him on his activist investors. he did not quite say it. but forcing companies to do big stock buybacks. and that helps him but doesn't help the company you have created the monster of all stability in the markets the exchange traded funds. when they do get redemption and then they have to be getting some redemptions. and there's not a lot of buyers. one of the things in the problem but this market up side from the fundamental issues whether you believe we will have an elation or higher deficit. the fact that so much money is in the etf's and they have to sell into this relatively illiquid market you have an issue. they have to redeem when there's not a lot of buyers because they are redeeming in mass. they put so much money in these extreme trade funds. $1.3trillion. going into individual equities. in one of your predictions involved i believe you said we are waiting on bob a doll. what charlie just said about exchange traded funds. is

they obviously have real profits, they've attracted outside in investors like carl icahn who has a major stake in the company and today they announced a buyback and bill has completely thrown in the towel. over the past few years he has been hedging his investment and stating that he still is going down to zero. he increasingly talks about the hedge. today he's thrown the towel and. the question is does he still mount the campaign against it even without being in it. he is basically took us on as a crusade. he kind of hurt his reputation because it didn't work out so well. it's not just bill ackman. there are a whole host of stock traders, i guess their daytraders, better in the stock piggybacking off these calls. i didn't know this and so i started looking at the stock in fannie mae that these people are piggybacking off a cold. the attack reporters who do i have no horse in this race. i just didn't think they were going to zero because they have real customers. this is something average investors should worry about. >> charlie we are down 200 but i just want to point out if, dick's spo

with carl icahn, he knew exactly what his portfolio did on any given day. you know that is up or down, so whether it's mom and pop are going to go out because the market did well where billionaire investor like karo, people care whether they are up or down. when you say okay it's going to be five years, how to stack it received? >> we do too. i know exactly how much portfolio every day. in the long term it's made up a successful terms. if there is a piece of short-term debt say a program, a mistake on a program and that indicates the management team is more likely to screw up next program, that will impact my program. if they decide in any given quarter to make a thoughtful investment that will drive revenue growth in the future, that's an opportunity. that's an opportunity for the long-term investor and that is where we try to differentiate ourselves. but that is different from not knowing how much portfolio. >> it is hard to because they think a lot of managers, they want to beat the s&p and people that look at their 401(k) daily or weekly or quarterly. t

beneficial for another billionaire investor who took the opposite side of bill ackman's trade that's carl icahn. we have reached out, but have not heard back >> i'd be interested to hear what carl has to say about that. i didn't have time to make any phone calls as this was happening, but it was described to me by bill as it's a nominal position now for all intents and purposes, he's out >> if he mentioned unwound, he probably unwound the whole thing. the one smart thing for bill is the fact he got out of the stock itself and used the leverage of options, each one being 100 shares e ququivalent and used te options for vir vully if he did the same amount in terms of share count, then the options, he lost far less money on this move to the upside in the last six, eight, nine months still lost a lot of money. but not nearly the kind of money he would have lost had he been short a stock. >> i'd be surprised if he had tag position at this point, he's trying not only to retain assets, but to get assets the first question that would be asked of him, what the hell are you still doik in herbalife? why y

liz: am i wrong, didn't carl icahn smack him around to wrestle money out of the fists of apple to maket dividend happen? >> you are talking about economy that's going to generate 200 billion over the next two years. the man who's been repatriated do, they do m&a? we know buybacks? do they buy companies, if you look at content in the living room, that's what investors are focused on. liz: you like it. >> 180 to $200 stock, the near-term turbulence is buying opportunity 12 times, and these are the times right now that you own a name like apple. liz: stock is 164, decent amount of upside you are calling for. good to see you, dan. >> great to be here. dow up 37. we've lost steam here. what could happen? anything in a couple of minutes of a commercial break. stay with me. we're at 24,653 on the dow. this new day. looks nothing like yesterday. roads nowhere to be found. and it's exactly what you're looking for. . liz: wall street and corporate america zeroing in on the at&t-time warner merger, even if they're not in the industry to see what it means for future deal making in this administrat

if carl icahn buys 5% in apple, he has to disclose it.rt a certain amounts, you don't have to disclose it. none of that. liz: buffett going long has to report that, any hedge fund manager, if you're trying to kill a company by shorting it, you don't have to report that. >> now in ackman's defense, and by the way on capitol hill, the people dealing with herbalife are calling this the ackman bill because herbalife has been pushing this so much behind the scenes along with the new york stock exchange and nasdaq. liz: and they survived ftc investigation. >> in ackman's defense, he went public with the short position, but it was interesting, he got public after he placed it. now how this would impact a guy like ackman who goes public. i don't know, what you're looking at is part of a company, exchanges which essentially lift companies that are shorted is some way to curtail the power of the short seller to drive down stocks. okay a lot of short sellers say that's curtailing our power. liz: or free markets, curtailing a free market. >> we at le

. >>> we'll have an interview with carl icahn as the market is hit with massive volatility.out what he sees going forward. plus, two of country's top market watchers square on on whether it is time to buy stocks jeremy siegel and robert shiller are with us and they're on opposite sides of that coin. >>> and one of the men caught in the middle of the storm of volatility, doug sifu is with us as well. it's a big hour of big names and we'll see you in about 15 minutes, jon >> sounds great. looking forward it to. thanks, scott. i want to hear more about the kissing cousins liquidity and volatility let's get to rick santelli >> back in '87, i guess my biggest memories are very appropriate today. now granted you didn't have some of the fancier contracts but in the end, the first recognizable issue, the first thing you notice is the fragility of the bid offer spread you saw it yesterday after we really started to escalate down in the down side of the dow jones industrial average, saw that instead of having 10, 15 point bid offer spreads which is in itself a little bit wide, all of

markets is troublesome to me and i believe the regulators have to get on this case it's not just carl icahn, but other people steve schwartzman. a number of start people i think the sec should get op the case to at a minimum, raise margin requirements that reduce the leverage in the system that would be my view. >> so i want to get the folks around the table in front of me in a minute, lee but so you said you were buying stocks what were you buying can you give us some ideas >> yeah. i'm willing to buy them at this second reason whether i bly fully invested my mashlgt outlook doesn't allow for that but take for example, i had the ceo, coo of united airlines in my office two weeks ago. he says when he left american, he came to united. he wanted to come with his entire pay package based upon stock. the board didn't do that paid him cash in stock the companies bought back 35% of his equity in the last three or four year at a price i think average as slightly above where it is presently r or slightly below. they have an authorization placed to buy another $3 billion, which is 12% of the company

carl icahn may or may not be in and around this.osition in the company that has been badly managed but is a quality business. drama invites more drama. no surprise he might be looking at it. julia: eyeing it potentially. we are around 30 minutes from the close of the equity trading session here three taking a look at the session chart, we are .ack in green closely watching the energy sector here. when we tilted down the energy sector was down 2%. now down by one and a half percent. very much following the energy sector as we head to the close. we have 40 minutes until the equity markets continue on what feels like an enormously long week. thelet: regardless called worst weekly decline since 2008. julia: from new york, this is bloomberg. ♪ >> thank you. joining us, in km holdings. it does not seem like it was the same week. we talked to you about the volatility. volatility has not gone away. are you surprised we are continuing to see an unwind? >> know. and investors should not be. magnitudesimilar shock in 1997. it peaked in the hig

some real pressure in 2001 and gave up a billion dollars of what had been 50% of stake and jv jim, carl icahnesterday and along with deason, these claims are important potentially because if you do get a judge to agree with you and by the way we need to listen to the defense of xerox. if you do get a judge to agree with you, it opens up a slate o responsibility basically, we tried to sell this company, there were no other buyers and fuji was the best that we could come up with and we believe obviously for many reasons, it adds values given the deal that they already announced. >> i don't understand. if they tried to solve but the crown jewels are already contracted >> their point is, you signed up a deal that you gave fuji veto right. nobody is going to come into buy the entire company because fuji has the right to maintain jv >> you would not want to be in it fuji is the only one that had the right. they say that was not made apparent and in fact, it was hidden from shareholders and should have been and therefore, they claimed that it is fraudulent >> well, it is hard to disagree with -- wel

to do wonk on tear road thing, every single selloff has been punctuated by -- >> remember what carl icahn said two years ago. the etfs sell into illiquidity. there is not a lot of buyers. by the way even if you put your money in a spdr etf that buys the -- neil: dow or s&p or whatever. >> looks what happens. you get redemptions. they don't sell one stock. they sell baskets of stocks. >> that's right. >> then there is somebody that buys it. it comes back up. neil: these products are now part of a mix and weird and wacky algorithms that get crazy. >> that too. remember people did not buy a lot of individual stocks. they bought mostly basket of stocks. neil: algorithms are set off bit baskets and set off, very unemotional. >> the baskets are timed to algorithms to peg off certain economic news. neil: this is what i feared. this is what i feared. >> bottom line is if you're borrowing money to get into some of these instruments you're really risking the home for that sort of thing. if you're doing that to get to the instruments charlie is talking about, forget about it. neil: but it compounds

. >>> headline just crossing the wire, xerox responding to a critical letter from investor carl icahn own about 15% of xerox the two of them opposed xerox's deal with japan's fuji film which would combine xerox. however, they say the deal followed a year long comprehensive review to enhance shareholder value and this transaction would deliver significantly more value than having xerox remain on its own xerox also agrees with icahn and deason's contention. lots to watch on that one. also still ahead when we come back, budget backlash in washington we're going to talk to the new house budget chair, congressman steve womack right after the break. stay tuned you're watching cnbc each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. (sighs) i hate

look at xerox, carl icahn, an investor in xerox. company's plan to sell itself to fuji film. he says the deal dramatically undervalues xerox and disproportionately favors fuji. nonetheless the stock is holding at $29 a share. >>> a deal on immigration hopefully? the president tweeting this. i identified three priorities for creating a safe, model and lawful immigration system. fully securing the border, ending chain migration, and canceling the visa lottery. economies must secure the immigration system and protect americans. dan whoings from heritage. i believe that heritage is the top lobbying group in america. a little compliment for you. give me the bullet points, how you see the perfect immigration plan for america? >> i think what the president is outlining is a really good start. the problem we have with the immigration debates it focuses amnesty first you instead of getting legal immigration right. we should be prioritizing people with skills and merit to come to the country, make the country better as a whole, as opposed to