mr. ackman, that the company's perspective is a bit different than mr. ackman's perspective it's still unclear when bill ackman started build his position in adp, but according to the company, he first reached out to them on tuesday, which was nine days before the decline to nominate new board members. he told the company, he beneficially owns 8%, largely through derivatives. i'm told by several sources that he was able to meet with the chairman and ceo yesterday he asked adp to extend the decline by 30 to 45 days that's according to the company, because he planned to nominate five directors, including himself, which would give him control of the board that is according to the statement put out this morning by adp >> so it was a -- kind of a smackdown, sort of press release, that they put out >> oh, yeah. >> right they mentioned sort of the company's performance versus the s&p 500. and they also bring up pershing square's performance as sort of a, look, thanks, but no thanks, we don't need your help. you normally don't get that kind of brushback, at least

mr. ackman has should be listened to.er know what kernel of good idea might come from whatever resources they have done to generate their investment pieces. so all of those conversations ought to be had by management and boards as we have done at one of the spin outs from adp, as we have done in another spin out from adp, but it doesn't have to be contentious or go to what this is which is a pointless proxy battle that serves no one's service in particular the shareholders that will bare the expense from the get go. >> the companies are telling me that he first contacted them on august 1 which means that, it's not that long ago. >> no. >> i would have thought it would have been a much longer tdialoge where they feel like they get frustrated and then come forward but mr. ackman is the dog ate my adp nominees but you know what, i'm a fellow like lincoln thank you for coming on. it's going to be with us for a long time. >> for quite sometime unfortunately for no good reason but i find another dog to go after. >> dow is down

mr. ackman wanted was a new ceo. something mr. our conversation this morning >> he was quite cordial and he thought that i needed to be replaced it was a surreal experience. i met him once 31 years ago back in college he's been saying that we are close friends or classmates and so forth, i am not his holiday greeting card list as far as i can tell the whole thing has been baffling and surreal experience for someone to say that needed to be replaced >> annual meeting is going to be held early to mid november, it would seem there is a lot of rhetoric between now and then. it is rare to see a ceo coming on mr. ackman, i bet you are going to see this chart a lot more the performance of adp stocks verses the performance of s & p and the purging head funds, i think we do have it for you. >> we are showing it of 117% in the last five years and there is the bar chart. >> 202 verses 128. we know it is not good performance at all from mr. ackman thank you, david >> from that war of words that david was talking about to the other one that's

mr. ackman, or i should say, join him on tv. >> for a debate? >> for a debate, if mr. so it's out there now. >> that's a dare challenge. >> not the first tv debate by a long shot. >>> when we come back, retail is getting hammered, watching blue apron as well, dn ow11%. "squawk on the street" continues in a moment. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. you give us comfort. and we give you bare feet, backsweat, and gordo's... everything. i love you, but sometimes you stink. soft surfaces trap odors. febreze fabric refresher cleans them away for good. because the things you love the most can stink. and plug in febreze to keep your whole room fresh for up to 45 days. breathe happy with febreze. >>> that's it for this hour of "squawk on the street. back to you guys. >>>

mr. ackman's fund which was down in success.s roughly flat. >> did adp shoot up to begin with and further on this. >> i am always curious as to why these stocks at this point shoot up and mr. ackman is noted as being interested in. why? his track record is very very mixed. as we said he was down sharply in 15. sharply in 16. this year as of july 31st up .9% but when you think about what he made for target many years ago. >> does this tell you something about adp in this case if the investors react by saying maybe this is something that is needed. >> that's a good question. he doesn't seem to be asking for a break up of the company or more significant capital returns. came after boarders and know what happened there. >> i don't know what people were thinking >> maybe activist pressure in general causes a company to up their game. >> let's get to the bond pitts now. rick. >> good morning, david obviously we had a big employment report this morning you want to stay on the side you have to have a group technical mentality. many woul

ackman's argument fallacious. surveillance anchor tom keene is here with me. mr.perman has a real knowledge about adp up to the modern adp and the key distinction that we found in a lengthy interview is he believes mr. ackman is conflating the paychecks model with the adp model. he is saying that is flat out wrong. bill ackman is wrong, there is not that much to fix in adp. we continue to circle back to their performance. he was really quite adamant. bill ackman has this one wrong. vonnie: down 7% over the last several sessions. year-over-year, it is up 25%. we are going to see in the coming days, what is his plan to take what everyone considers to be a good or even great performer and to make that difference that makes all of his efforts worthwhile. you saw that in really good total return. ackman took some very controversial positions, as well. let's have another listen to that cooperman interview. bill: i would say that i have cooperman: i look at activism as a individual situation, one at a time. i see very little signs of euphoria. the individuals not partici

mr. ackman in relation to valeant.ould mention him in relation to the news story at the moment, adp, automatic data processing in which he did file last night a 13d although his ownership, it's interesting, he's done it all through derivative transactions.. but he'll settle them. it's an enormous position. 8% of the company's stock. >> a huge company. >> after initially indicating an august position where he would propose five directors, including himself, and was taking aim at the ceo's job and was clear and made clear in conversations with carlos rodriguez that mr. ackman last thursday indicated no, he would not be going after a majority of the board and then last night went after only three directors, which was somewhat unexpected on the adp side, given they had been led to believe that he would be looking at least at four, but most likely five and now he came with three himself, mr. unrue, who is 68 years old, and a miss hagan who is 71 years old, both of whom have decent experience interestingly, jim, next the thu

mr. ackman outlined his transformation plan for the company.eo of adf called the activist hedge fund manager a, quote, spoiled brat. shares of adp dropped 102.89. >>> there are reports today the secret service is running out of money to pay its ajechbts. expenses are high. it's up to con additional funding. eamon javers has the details. >> reporter: secret service officials said today more than 1,100 secret service officers will work more overtime in 2017 than they are allotted under the . that means they're going to need a fix on capitol hill in order to change the law and pay overtime to the secret service officers. in statement today, the secret service initially said this, "the issue is not one that can be attributed to the current administration's protection requirements, but rather has been an ongoing issue for nearly a decade due to an overall increase in operational tempo." then they changed the statement adding one single word that seems to indicate the secret service believes that donald trump and his family require a whole lot of sec

. >>> the comments from the a adp ceo after ackman said why rodriguez so not be ceo. mr. rodriguez likened mr. ackman to a spoiled brat. >> the real question is i guess why does he need an extension, not how long is the extension and what did he really ask for or not ask for kind of reminds me of a spoiled brat in school asking the teacher for an extension one approach would have been to contact us and say i have some ideas i want to talk about, either i'm investing in your company or planning on investing in your company. instead of threatening us and sending us videos of himself and telling me that if i don't accede to his demands for extension that he will embarrass me and humiliate me because of his media following. >>> before we end this trading week, which was a turbulent one, u.s. futures are indicating a flat to slightly opener open to the markets. dow jones seen flat. the s&p 500 seen off by 5 points the dow heading for the worst week since march that's it for today's show "worldwide exchange" is up next. and hey, unmanaged depression, don't get too comfortable.

mr. ackman's plans there's a look at the stock, which is now negative $110 and i just hung up the phone, way, with bill ackman a few moments ago, who told me the following in an exclusive interview. i want to brin

mr. ackman initially wanted to extend the deadline to avoid the perception that he and the company were, quote, at war. the filing showed he was committed to a proxy fight and would not consider a settlement. the company's annual meeting is not for a few more months. we'll see if the two sides can have a meeting of the minds before then. >> we'll keep our eye there. >>> here's what else is coming up on "the halftime report." >> texas is about to get hit by heart ache this storm is expected to be a hurricane soon some are predicting a record breaking flood we'll hit the gulf coast and jim cantore. we'll talk about refiners, nat gas and more. >>> chipotle grill, the analyst behind it will make her seca for you to buy this stock at the big dip. "the halftime report" with scott wapner and the traders is back in two minutes ♪ track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome. >>> welcome

mr. ackman today robert chapman is his name he is the founder of chapman capital.s us on the phone robert, welcome back. >> thanks, scott >> you shorted adp >> i shorted over the two or three days came out of the leaks of his filing. >> what kind of price point are we talking about >> started around 115 and finished up in the low 120s. right around 119 1/2 on average. >> three hours, six months of work, 85 consultations, what's -- what has ackman got wrong? >> well, i have to say just the numbers you're putting out there shows i think a focus on quantity over quality of research, and i think there are two things that may be underestimated on the long side here number one is where are we in the employment cycle the payroll numbers have been expanding for seven, eight years. the unemployment rate's near a 16 year low around 4%. that's down a lot from 10% in 2009 that's an important year they made their move into adp and back then it was trading for around 1/3 of its current price. he paid 10, 11 times 29 earnings of 240 a share let's be clear that was at the deep, de

mr. ackman did just like gundlach does. so when they do that and when the vix drops down into those 11 ranges, which we damn near slammed down to that again yesterday, as we broke down. that's the opportunity, judge. >> we'll step away for two minutes. when we come back, footlocker sales tumbling this hour sales disappointing the street two downgrades for the retailer, as well. we'll debate it in our trade of the day. we created the ripple: the doughnut in a doughnut in a doughnut. right away, it was a success. i mean, it really took off. what people don't know is that it all started with points from my chase ink card. i bought the ingredients, utensils, even custom donut cutters. wow! all with 80,000 points. what will you create with your points? learn more about the ink business preferred card. >>> all right. we're back on the "halftime report." shares of footlocker plummeting as the athletic retailer falls short of street expectations the worst day for the stock since november of 2008 also gets three downgrades this hour

mr. ackman requested that adp extend an august 10th deadline to nominate directors by 30 to 45 days and saidhe plans to nominate five directors, including himself, to adp's ten member board, and also said that the company's ceo carlos rodriguez, should be replaced, which would put him in control of the company, with six of the ten directors. the company saying that it is, quote, open to constructive input from its shareholders, and it says that the board respects the right of shareholders to nominate directors however adp has clearlydefined board nomination board process and the deadline for director nominations has been public for nearly a year. then goes on to take a couple of shots at bill ackman it said carlos rodriguez became ceo six years ago and the total shareholder return for the company was 202% they say that is many multiples of perishing's total shareholder return of 29%. >> they are right. >> so the gloves have come off this morning and the company saying that they have a strong and independent board and they continue to believe that it has a balance of independence and leadersh

mr. ackman which portrays of a lack of understanding of adp business and strategies he presented nothings analyzed by the board and management clearly there is more fire works to come from the situation one of the most contentious, this year. >> lesley, i will pick it up >> coming up, we are, there is no are we here we are following this big market drop right now the dow is off 187 bigabendtshe detail hi i g in, next on "power lunch." >>> welcome back to "power lunch," i am sue herrera with an update the death toll confirmed it has risen. we have a confirmation of 13 deaths, more than 50 wounded that's a considerable increase in what we thought we were going to have earlier today. the minister did warn that death toll is expected to rise it has we have 13 deaths and 50 have been wounded an arrest have been made where he awaiting details on that we expect to have a press briefing shortly it is been delayed because they have getting the updated death toll and unfortunately continuing to change the vice president is going to make comments. he's going to be at the panama can canal. no word o

mr. ackman in today's demonstration which portrays a fundamental lack of understanding of adp's strategy and business ackman said the c suite may need some fresh blood. >> having seen the reaction we got from car hose, his response and the kind of rejection to the dna, i think it very likely in my view that this will require a change in the ceo of the company. this is notable because this fight started with the company disclosing ackman's demands, not ackman himself adp said two weeks ago ackman wanted rodriguez out, but ackman kind of backed away from that claim. today's comment, of course, changed that the market, however, didn't seem too keen on his plans. shares of adp slumping more than 5.5% ackman addressed this on the call saying it was due to his, quote, airing of dirty laundry. >> also a tough day in general leslie, thank you. leslie picker. 15 minutes to go, and here's how tough it is, the dow down 239 points, a better than 1% drop. the nasdaq and s&p all lower and the nasdaq i believe the worst performer in percentage terms. >> yields have been going down the low for the year i

mr. ackman with automatic data. i guess they care about ceos, but that's about it.y alpha generating in the markets. you have flat growth and rates that have not moved. m&a has picked up off-line. it has dropped. tom: on general electric, does anyone want to play that game was that boring? mark: they don't play the transition in the moment. us and weconnors with will continue really important conversation coming up on market drawdown and hurdle rates. somebody can is about market drawdown, leon cooperman. right or wrong, mr. cooperman will deliver an opinion. he will do that in the 7:00 hour today. this is bloomberg. ♪ francine: this is "bloomberg surveillance." this is aluminum climbing to the most on the chinese outlook. . this is from an analyst. and this is supporting the alumina market. it is keeping it at the mercy of the chinese government. we will show tomatoes tomorrow. i've never done this. this is regular aluminum after the stock exchange. bring it up right now. the single best chart is alumina aluminum and we bounced up above the 20 year average. i'm tal

ackman wraps up pressure on adp. we will bring you his last comments as he makes his case for changes at the company. this is bloomberg. ♪ ♪ vonnie: mrsrg markets." ackman, wrapping up his case for changes at the payroll and human resources outsourcer. shares could double in four years. pershing square has been looking for three nominations to the adp board. with more on that position in particular coming up later, once that is complete. still ahead, there is a new wrinkle in trade friction between the u.s. and china. the white house chief strategist, stephen bannon, could become a kidding relations . we will bring you that story, next. quick data check, we have equity indexes moving today, but not by all that much. we are down by half of 1%, giving off some of the gains previously in the week. the s&p 500 down's extensive 1%. the nasdaq down 1%. this is bloomberg. ♪ from lingered's world headquarters in new york in ,ndon, i'm nejra cehic along with vonnie quinn. that in ann saying interview to the american prospect, "to me the economic war with china is everything and we have to be maniacally focused on that. if we continue to lose i

mr. ackman >> i was sitting beside leon when that was going on i didn't agree with him at all i don't see why the new kid in town can't bring forth new ideas. to me, what's happening here is, i want to understand how he can increase margins 50% here's my speculation. he's going to come out and say we're going to automate adp. we're going to take these tech support people sitting on the other ends of phones when you call up with payroll questions we're going to automate it and fire thousand of people. you know what, i'm okay with that american express did it, they took heat for it and now the system gets better i own that stock, i've owned it for six years, start whacking, i'm okay with that i want to hear the ideas i don't think leon should be squashing it by the way, he didn't disagree he threw him under a bus yesterday. over and over again. i thought it was abusive >> so, you're still waiting to hear ackman's plan >> still waiting look, i'm not supporting him as an activist. i'm supporting him as an idea that owns derivatives and stock in the company let the merits of the idea be judged

served on adp's board of directors for nearly 20 years, and says the company doesn't need ackman's interference mris here with us live on set today. it's good to see you here. also with us, for the hour, josh brown, jim lebenthal, steve weis kevin o'leary is here, the chairman of oshare

served on adp's board of directors for nearly 20 years, and says the company doesn't need ackman's interference mr. cooperman is here with us live on set today. it's good to see you here. also with us, for the hour, josh brown, jim lebenthal, steve weis kevin o'leary is here, the chairman of oshares etf feflt investments, as well great to have you all here get to you in a second but i want to start with you, lee, if i could. why are you speaking out >> it's a good question. i don't have any dog in this fight. i retired from the board five years ago. i made a mistake i gave all my stock to charity i should have given cash, because the stock has almost tripled in the five years that i'm off the board. but i feel -- and i have, like i said, in dog in the fight. and i know and respect bill ackman so it's difficult for me but notwithstanding, i consider his behavior to be, in this instance, somewhere between foolish, inappropriate, and irresponsible. and i feel it's my job to speak out and speak my view. >> what was your reaction, though, when you sort of first found out that he was -- >> i was somewha