why the investor may be targeting mondelez.t story coming up next. >> and we'll leave you with a live shot from cleveland ohio. we, in fact won't do that but we will bring it to you after the break. worldwide exchange back in two. try the superior hold... ...of fixodent plus adhesives. they help your denture hold strong more like natural teeth. and you can eat even tough food. fixodent. strong more like natural teeth. fixodent and forget it. >> all eyes will be on current gop presidential front runner donald trump when he and the other top ten polling candidates take the stage for the first republican debate. what can you expect? tracy potts live in cleveland with the latest. >> good morning. so we're standing outside the q. this is where both debates will be happening. remember there are two. there's the big primetime debate with the top 10 that made that cut and then earlier, a few hours earlier the 7 who did not make the cut at the bottom of the polls will be debating separately and given the fact that social media will be a

now will there be mondelez as well. >> it would be nice if they retired that name, mondelez.nows where they got that name. >> nelson pletz himself said that it was the worst name ever. >> in the world. >> and don't forget tying it all together here, remember just last month ackman and peltz were on stage together with cramer at delivering alpha. >> we'll have much more straight ahead. >> i'm sure they never collude or anything. disney apple and tesla caught in the downdraft. is there more pain ahead with more companies set to report? that's coming up next on squawk box. nsh xçó0 . >>> welcome back to squawk box. nearing the end of another busy week on wall street for earnings. so far the growth rate coming in better than expected with health care, telecom financials leading the stock that have reported so far. 47% have gone down following their report. >> have we ever said something has not come in better than analysts expected? i'm ready to blame the analysts now. >> just now? >> you haven't been doing that for like 20 years? >> no but everybody it's always better. analysts,

mondelez has been pushing cost-cutting.t has raised its margins while a middle of the pack company. fair criticism towards mondelez is with strong brand names it has, oreo, cadbury, why isn't it doing better? these are beachfront property kind of rants -- brands and investors expect that her performance than in line. some of it could be given the environment of a consolidating activist oriented market, could be behind some of those gains. erik: what do you think the chances are that we see mondelez get back together with kraft? guest: it's a long shot. see the rationale for the separation. towardse allocation emerging markets, long-term opportunity these companies have. combining them together again, not so sure allocations will be quite as aggressive there. it's hard to say. i still think the rationale for the separation exists here in -- exists. erik: does it make sense that bill ackman is in this stock is large of a position that he has? nelson peltz and try and are already there. pushing for the same things that bill ac

lauren: who has enough money to buy mondelez.if you look at shares right now, there are 8% in premarket. >> has been questioned about snack company sent value going forward as the industry has gotten so help me. are they changing enough to adapt to trends? >> a lot simpler, more natural look ingredients. lauren: they are taking all the artificial stuff out of cereal. sandra: big names with earnings after the bell including tesla motors in the premarket trading session after the electronic carmaker will produce 12,000 vehicles in the quarter. alsos guidance with deliveries for the company reported a narrower than expected loss for the second quarter and better than expected adjusted revenue. fitbit tumbling 13% in after-hours trading after set margins fell in the second order due to higher spending on new products. the maker of wearable fitness tracking devices added that it does not ask its margins to improve for the rest of the year. that is overshadowing results in the first quarterly report of a public company. fitbit ceo will

of course, bill ackman and his 5.5 billion stake in mondelez.ed about this, doc, on "squawk box" this morning. and i promised that i was going to ask you if there was any unusual activity around this name in the last many days. >> yep, there was back in april, judge. and there was, as recently as last thursday, the average turnover of calls in mondelez is about 6,000 contracts. last thursday, it traded 47,000 call contracts. so in other words, people were betting big time. and that's not a hunch. now, some of that -- >> earnings were around there, right? >> there were. but would you see this kind of turnover around earnings in a stock that is somewhat sleepy, 6,000 contracts, it's not exactly apple or any of the big active traders. so in other words, the people, this wasn't bill ackman. this was the people that supplied him that liquidity. whether credit suisse, goldman sachs, i don't know who it was, but whoever it was, this is likely them hedging their exposure for providing him exactly what kate kelly described, forward contracts, as well as

snack maker mondelez. shares are up today 1.4%. speculation is that ackerman may push for the company to be sold. who may want to buy it? ken shea. now is a lot of talk about the elez willty that mond be recombined with kraft foods and heinz. there is a lot of talk about that but i'm not sure it makes strategic sense. in 2012, these companies were separated, in theory, because could allocate capital better in emerging markets. i don't think that has changed from a secular point of view. since that time, the markets have softened a bit and that is one of the biggest headwinds that condoleezza faces. --mondelez faces. are those jumping to this conclusion totally wrong, mistaken? >> no, i think they are short-term-minded. surely, you are not saying activists are short-term minded. >> [laughter] they do have a reputation for that. to their credit, they are cutting margins,. . s havef the fair critic said, why isn't it doing better? these are beachfront property brands and investors expect in-line,rformance than although in the past cou

as he watched the consolidation look at package is and was mondelez will have to deal with. look at the changing case of the consumer, where the consumer is in terms of spending money, what food they buy, but the millennial scare about. the venture is a fresher, more organic, not oreo and ritz crackers. just like how chipotle but donald scrapple with changes in the direct surf. >> what you have in health care you don't haven't products. a lot of drugs at the pipelines of driving growth. health care you get a lot. if you make one drug, -- exactl. maria: green mountain shares could use a caffeine jolt this morning. after the stock came crashing down, will tell you why traders are this morning. big headlines this morning are topping "the wall street journal." cord cutting ways with cable channels. taking a hit from losing subscribers at the hotel industry with sales of expedia with critics urging rejection of the online travel merger and days u.s. car recall is emerging. more than 34.5 million vehicles during the first seven months of the year. we will be right back. ♪ can a bu

you do not own mondelez. how come?bitda there's a lot of pressure for mondelez now to have something happen to get sold or to undertake a massive restructuring or accomplish their own significant m&a. we like the staple sector first of it all, because it is very defensive. all the things you've been talking about in the last few months really play to why the staples are popular today. these are national or oftentimes global companies that are all high-profit margins, high cash flows, balance sheets aren't levered. so to your viewers that might remember first data in 2008 and why kkr lbo'd first data eight years ago, very similar setups in a lot of staple stocks. for example, we own general mills, gis. this is a bore inginge inging yogurt and cereal company. seven years into the bull market staple stocks like this can guest astronomical valuations and they're doing all the right things they want to do general mills. they bought annie's, they're selling off -- >> let me get back to mondelez for a second. i know you can't

so ackman's mondelez investment, does that cover up the ugliness of the herbalife short?bill ackman that i know is that he craves attention. when you see a lot of these activist investors, a lot of them like staying in the background. dan loeb doesn't seek out fame and covers and fortune and "forbes" magazine. nelson peltz will do some tv, but marginal amounts. bill act han is half of a -- ackman is half of a showman, and half of his show is promoting himself. what we have here is a case in point where it looks like -- and these are just the optics. i haven't talked, spoken with him, and he doesn't return my calls because i've been very critical of him and the way he's played herbalife. but what it looks like is on a day he's basically getting trounced on herbalife, the stock was up 20%, it's up 18% now on a day when the dow is down fairly sharply today. so, remember, they beat expectations, they had a very good quarter. you know, most of the analyst community is now saying that it's unlikely that the feds will do anything close to what he says they should do which is lik

i searched for a month to figure this out and crossed out mondelez many times.rprise amongst many people this was the name. >> vinvestors trying to figure out what to do with it. >>> europe will close in five minutes. simon hobbs here to wrap that up. >> mixed session, as you can see in europe overall. the biggest news for people in this market is that the central bank most closely aligned to the fed is becoming more dovish. in the uk today, super thursday. that means the monetary policy committee of the bank of england comes through with the poll significance decision. they published minutes of the meeting. they have the news conference. a look at mark carney during that and at the same time publish the inflation report. what was interesting is that this time one of nine, only one of nine, was more hawkish, voting for a rate rise in the united kingdom. two hawks, usually one of those has turned more dovish overall. mark carney suggesting the pound will push the strength in the pound, as you've had strength in the dollar will push down inflation for some time to

they are doing everything right at mondelez.cus on a transition down the road. what is your take? >> this is a stock that is up already nearly 30% this year. i talked to the ceo, who has been pleased and very aggressive when it comes to cutting cost. many say she has been best in class at doing that. we already started to see the margin improvement. as far as mna, mondelez was always an attractive target. it has strong brands like oreos but it is very big and it is already up this year. as we both talked about, the math would be hard. a $77 billion market cap company. the other factor is that 3g and buffet are already in one of the early stages of one of the biggest typups biggest tie-ups combining heinz and kraft. they have to pull out that combination. however, as you know david, the overarching theme in this industry is that consumers are eating differently and spending differently. that's led to a wave of consolidation. general mills bought annies tyson food bought hillshire. this would be a very very big one and a very diff

mondelez shares are down.d out kraft times has its hands full dealing with they have already bit off. he thinks it will be a year or two before they make purchases. >> meantime, we will talk about travel, cruise lines, the big virtuoso. expanding to coin, india, australia and new zealand. andy stewart joins us the coo, andy, a name i like a lot. i want to start with cuba, though, the u.s. embassy if cuba opens later this weekend, a lot of buzz in the cruise industry about whether cuba will be cheap and whether you guys will be getting people there very soon? >> well, good morning. we are very excited about cuba. we think it's a big opportunity. a lot of the people in the u.s. are very excited to go to cuba. the caribbean is 40% of the market. so having a wonderful few destination in the middle of the caribbean is pretty exciting. >> it's complicated. when dunk that will happen in. >> we have applications in with the u.s. government and the officials in cuba. so we'll see the timing is uncertain at this point.

mondelez they have to create profits faster.ow oil prices are putting pressure on the country about 19% of saudi arabia's revenue comes from crude. rio tinto reported a drop in profit after iron ore prices collapsed we speak to the ceo for more on those earnings in just under 30 minutes. wrangled reported earnings trading higher. anna, brutally honest wasn't he? anna: the stocks are up, cost out -- cost per ounce is going down. the gold price is at a five-year low. back in july, the ceo of rangold said if we saw $50 come off the price that would mean the industry was toast. since then we have seen six the five dollars coming off the price. is the industry toast? >> i believe so. i believe it is toast. anna: technical definition? >> if you look at the data, it is unsustainable. the industry has continued to live and hope for a higher price to bail it out. rangold has set its long-term price at $1000, it is tough for us. those that have designed their business at the longer-term require some sort of real reengineering of our busin

listen to what he said about companies like mondelez. >> it would be hard for us to make a deal thatnse. yeah. but who knows what happens down the line. but if you look at -- whether you look at kellogg or campbell's soup or mondelez, they have -- their prices, to some extent, i think the market has put into those companies prices that reflect an expectation that kraft/heinz type margins are possible. and that may be the case but i haven't seen it elsewhere. >> let's bring from senior food analyst at i know you like the stock and you jai alaihig highlight a num positive things that are happening right now. the stock got a boost. but it doesn't sound like you think this is a fundamentally poorly run company as it is. >> i think for mondelez, there are opportunities here to really get the margins going. that was what nelson pelts was saying two, three years ago. he's now on the board. it is really right now that those margin improvements are starting to kick in. this is a fundamentals story. have you an opening new low across plants around the globe. have you them right-sizing the size

we also got the chance to ask him about mondelez. idea that they thought maybe kraft heinz would be interested in buying hond leez. buffett says they'll have their hands full with the kraft heinz business for a while. >> mondelez, i thought it was interesting. obviously this is going to take time to get the kraft deal and the heinz deal together. what's your thinking about buffett on food deals? there's some weak nness in campbell's soups and others when it comes to the transformation of food stocks. >> the first point on that, how involved is he? i think not at all. i think he knows what's happening but i don't think he's involved on a day today basis in terms of what's to come. he mentioned if you look at some of the food companies and he mentioned mondelez and campbell's soup. he pointed out they've been trading at higher levels. he thinks that's because investors are looking at it thinking they could eventually get the type of margins that they've accomplished at kraft heinz. he thinks it's a long shot. >> and kraft heinz will be

mondelez monfils -- diffused a fight with nelson peltz.ncorporatees to the medical company's imaging management platform with its watson data analytics tool. the all-cash deal is subject to regulatory review and approval from urges. -- merges. betty: the german automaker posted a 42% surge in july deliveries. sales rose to more than 29,000 vehicles. deliveries are up 15% from a year ago to nearly 150,000. elon musk says teslas facing onllenges of interior pieces the forthcoming model. deliveries are set to begin in late september. snags on tesla's first suv could slow output of the model s sedan. ceo says the company may deliver 50,000 to 55,000 of these companies this year. shares dropping on the news. they are still up about 21% so far this year. that is a look at the top stories at this hour. mark: coming up in the next half hour of the "bloomberg market to," why walmart's plan boost its minimum wage and boost morale may have backfired for many workers. betty: the chairman and ceo of a cit group tells us why he thinks a bird that -- pot

mondelez barely got a lift.es that tell us about how the market perceives out of this or ackman's prospects. >> i wonder if the market is factoring in nelson pelts and has been on the board and been active and quieter on the name. there might be that activist premium in there. other than that, it's hard to explain really. they've had a nice run up. maybe we're seeing some stabilization at this level. it's worth noting that when ackman himself said i have a new large position that i'm going to announce in the coming months, this was probably three months ago, it was a mystery position. at the time he said he was spending about 15% of his capitol, which was say $3 billion. now as you said it's worth almost 6. so we've seen a big move already. it could be just the market pausing for breath. >> quickly, what's he going to do? what does he want to do with mondelez? >> i think there's much more with the plan. i've talked to people who are aware of part of his investment thesis. they like the emerging market exposure.

something like a mondelez, that's a special situation where they have activism involved. they've been totally mismanaged for years on end and they're finally managing to rein in costs. i would find where there are restructuring stories until you can see that the emerging market picture is getting a little bit better. >> plus valiant could buy them. >> one of your favorites. >> they just did a deal yesterday. >> when you look to stef's point at some of the emerging markets and you look at some of the really big numbers, for instance, if you want to talk about india as an emerging economy here, i believe that this commodity swoon that we're seeing, is a huge benefit to these guys. and you're going to see demand pick up like crazy over there. because of it, because the more money that they're going to have to spend on some of these products, some of them will be oreos, a lot of it will be bigger-ticket items than oreos. >> don't you think you have to reset where the multiple should be? on some of these stocks as a result of the emerging markets? >> you're watching the proces

they also remind everyone that mondelez makes global snacks.erica cookie is the world's cookie. trump asked if he even eight oreos in the first place, he said, quote, more than i should. he is a fan. mondelez didn't deny they have moved some of the factory jobs tho mexico but are still investing in the u.s. >> for oreos? >> $2.5 billion. the number one cookie in america. it has been a tremendous consumer packaged brand and continues to grow in the face of what has been declines of packaged goods. >> deeply in the reds and slide slightly off the lows. more on the selloff when we come back. [ male announcer ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ >>> let's get over to the cme group in chicago. rick santelli with the santelli exchange. good morning. >> good m

taking $5.6 billion stake in mondelez. let's move on to number two. stephanie: the fertilizer industry this morning, the illinois based industries will require the european and north american nitrogen fertilizer assets, and $8 billion to create a global player rivaling the industry leader. the transaction is a fallback deal after discussions to merge with europe fell apart in october. we did not think we would see the deal and now it is back on the table. it is m&a 2015 across the board. it is not just take pharma health care industry. credit is cheap here those who think the window is closing are slipping through. erik: furthermore, there is an increasing appetite, strategic deals. it is not just purely opportunism. they now have, with the economy improving, a little more confidence in the corner office. more boldness on the part of those doing these deals. tophanie: is a great way distract people if you have a ton of money on the balance sheet. acquire some and people will not pay attention for a couple of years. julie hyman has number three. julie:

mondelez. they refused a shareholder fight last year by putting him on the board. pimm: coming up in the next hour of the bloomberg market day, tonight is the last episode of jon stewart's "daily show." theiror people who like news with humor. oil is falling in canada, australia, and mexico, hurting their currencies. what does this mean for oil ?ependent con -- economies we will have an interview with john fain, who talks about the transformation of wall street. are: millions of viewers expected to tune into the first republican debate tonight on fox news. 10 candidates will take the stage in cleveland at 9:00 p.m. eastern. pimm: the star will be donald trump. a bloomberg politics reporter will be there and he joins us now. if you are going to write the headline for tomorrow today, what would it be? reporter: it's hard to know. that is the million-dollar question. the two big things people are looking out for our first, what will donald trump do? the dilemma is does he bring the traditional bluster and bravado the debate or tone it down and try to look presidential

find out why bill ackman scooped up a 7.5% stake in mondelez. that story coming up.o away. >>> welcome everyone to the second hour of worldwide exchange. >> here are your headlines from around the world. >> let's start with m&a. big ackman takes a bigger bite out of modelez. reports surveillance quest the investor could be considering a take over of the snack maker or a merger. >> tesla shares in reverse after it's slashes it's guidance. wti still on the slide and brent falling below $50. u.s.

does this make mondelez a more attractive acquisition because you are saying, i have got to or doeser and better, it say -- bill, an empty seat and we'll is have one for you. number five, the company selling its data storage business, the price tag is a cool $8 billion. we will have more on that surprise move by china. i am moving on because the university of chicago economics fester, friend of bloomberg tv, and former chief white house joinsist austan goolsbee us. from a policymaking perspective, what is going on there? china? austan: they have been getting , having basically paid their currency to the dollar over the last several years. the dollar has gone up and up. relative to their age, they have been in a tough spot and they are trying to counter out -- counteract that, especially with the fed talking about raising rates in the near future. i do think it is a sign that china continues to slow down faster than what the government has been telling us, as fast as its the market feared in most pessimistic days. this is a sign that is the way it is going. they are trying to figure ou

bill ackman's pershing square is selling its $6.5 mondelez.ake in mondelez refused a shareholder fight with activist investor nelson peltz. and jon stewart is signing off tonight as host of the "daily show." to 2600 shows in 16 years, reaching audiences with news with a comedic state. the museum and washington, d.c. said it will preserve stewart's "daily show." tom: john stewart next to mark crumpton in a museum? scary thought. it is amazing. early monthsll the of the daily show, but one day it was iconic. brendan: i remember when it was craig kilborn. it was snarky, it was more about pop-culture. tom: what did mr. stewart do? brendan: he was the first anchor to look at what was happening in politics and find it absurd and admit that he founde it absurd. tom: watch his hands. when he is on air, what he does physically, like a comedian. brendan: the other thing he does let you talk about a lot as he purposely throws out a joke that he knows will not land so he can make the recovery funny. he is amazing. vonnie: he's on a whole franchise of comedians. brendan: absolutely. fascinating, jo

. >> activism continues to be, we saw mondelez. what was your reaction to that. $5.5 billion?een super smart, but i think it shows that the opportunities are getting more limited in activism. i think the sector has much too many assets in it. over 150 billion. if i could short that asset class, the activist asset class, i would short it in a second. >> why? >> too much money chasing too few opportunities? inefficient capital structure, fortune brand type companies where you can spin everything off, a lot of that has happened. i think it's less and less on the opportunity side, but we'll see. the other thing on activism is it's getting to the point where generally these things are being resolved pretty early on. we just brought this guy on, david rose water. he was one of the key guys who was advising activists over the years. he has a unique perspective. in a world where people are resolving these things earlier, a lot because the activists are putting up good directors, having that kind of perspective is helpful. >> as we move into the last four months of this year, possibly

mondelez shares, taking a 7.5% stake. shares are basically where they started the day yesterday.ot a huge reaction there to a decision to put 25% of a fund in one stock. the journal writing today and as i reported yesterday, that if there is an expectation some way down the line or if there is an expectation that 3g controls kraft heinz would come as a potential buyer, you're talking a ways away. that's what i was reporting at this time yesterday. they echoed that as well. sometimes you talk to the same people who tell you the same thing. >> and true car, the founder of true car, the chief executive stepped down last night because of the strange relationship that they've had with some of the dealerships. obviously, they prewarned that things were not as good as people thought. they managed to beat those lowered expectations but true car is down 6% at the open. i see a buy from j and p. they think you can add 60% from where we are now. some hanging in there on true car with the number of subscribers it has and the business it's generating if not the margins. >> let's get to the jo

mondelez. the list is so long and distinguished in the industry of the food business where he has been in the past. but there are a couple of issues specifically with sysco that make it perhaps that kind of target that an activist investor, the likes of mr. peltz, would focus. it's underperformed the s&p over the past five years. earnings are down. there was that most recent merger plan with u.s. foods which was terminated following word that regulators were not going to allow it anyway. all told, that probably cost the company around 1 billion mr. there was a $300 million break-up fee that sysco was forced to pay to u.s. foods. there was a couple of -- tens of millions of dollars elsewhere that had to be paid out as a result. you look at a guy who has focused on improving margins, improving cost cutting, returning cash to shareholders, and that's perhaps why this became the target that it has for nelson peltz, tyler. it's been an interesting year. there was the proxy fight and the loss with du

. >> mondelez sales are probably flat but the raw costs are lower if the commodity decline continues. >> merge if you continue to havs like this for any number of more di days, you don't know when it is, things will calm. the pipeline, it's true. it's been poised for a great deal of activity even before labor day. people were saying are you in? make sure you're in. >> is this preseason and after labor day the actual playing starts? i mean, a lot of people are off, obviously they're coming back to work today. >> you don't think that's a major part? >> no. i think you're scrambling to find senior people at martha's vineyard. i look at what david is saying about the decline in mergers. to me the decline is the 140 plus companies that were valued at a billion dollars in this market, this waiting in the cue to the ipo market. those i think are going to be revalued as much as the people who are involved in venture capital. they tend to try to be oh blif vous. they put up a good face. >> you have to go off public market values. this will be interesting to watch. >> if you're just joining us

stuart: i think ackman wants mondelez to be taken other, or he wants to split the company up and maken part than it is in whole. >> right. and if he puts it together with kraft, it has been with kraft prior. stuart: right. >> we'll see if it goes back. stuart: that would make one giant corporation if they did get together. that would be about $160 billion worth of conglomerate in food if they did that. don't forget, tune in every friday -- not every friday, every weekday, for heavens sake, 5:00 in the morning. lauren, sandra, nicole, five a.m., bright and early. aaa says gas under $2 by this winter. gas buddy on this program says under $2 gasp lean in eight states by the next month. dan, we've been leaving you out of the discussion of stocks, bring you into the discussion of gas prices. what do you say? is under $2 a gallon in eight states by the end of next month, and you say what? >> i think it's a real possibility. in my area you're finally seeing things go down, we're 35 cents away. one thing to keep in mind in major areas like new york and chicago, we have the ten cent premium bu