so will shareholders of procter & gamble choose to add trian's nelson peltz to the board? e come back, i'll have an update and remember this from peltz on "squawk on the street" last month? >> i don't even know how to spell lose, okay so i'm not going to discuss that what we're hearing from the shareholders is thank you for getting involved let's send it over to dominic chu with a quick market flash. >> we're watching the airline stocks leading the s&p 500, overall, united cont tental shares up the most after they reported better than expected travel metrics shares up more than 6%, on pace for their best day since august of last year american airlines higher after the company raised their revenue for the third quarter. those names along with delta, southwest, the majors out there, helping to lift the dow transportation index also watching the iyt, the big transportation etf that tracks it, also moving ahead in today's trade. back over to you guys. >> okay. dom, thank you so much let's send it to sue herera who has the news update for us >> from chu to sue here we go here's

or they could get even more. >>> the month-long proxy fight between procter & gamble and nelson peltzoming to a vote this morning share holders will decide whether to add peltz to the board of directors ge has roots in cincinnati immelt was from there. they did it. it was like, yeah, we'll do it we could use some help maybe you have some good ideas p&g, no way, right >> not so much no they are fighting this hard. and the city that you and i both love, not only taking sides in this fight, but aggressively rallying behind their hometown company. p&g. here's the cover of the cincinnati inquirer. p&g votes, stakes huge for cincinnati it does matter we've been talking about how 40% of the ownership of the stock is retail out of that, 25% is p&g alum because of stock compensation. you have seen it in the local news pulled out this ed over itor ci carto cartoon. it shows the activist investor barbarian storming the gate. i also asked the mayor of cincinnati about it on twitter he shot back instantly vote blue for p&g and the proxy fight. taylor already creating value, improving the company.

the timing is late and the substance is lacking >> if nelson peltz talked for 30 minutes on a morningsly -- i would have at least jingled around -- looking at it more seriously that's like disrespectful to -- peltz comes on and talks for a half hour about -- what do we get? they take a segment out of a letter they already -- we all of a sudden -- >> called crisis mlgt wlsh. >> that was before he was on the show that was some generic defense of the fact from before he was on they couldn't address one thing that he said live for 30 minutes here they got to send out boilerplate that they sent out earlier does that make you mad that they don't take it seriously? >> maybe peltz was on for -- >> i think he is one of the smartest people. isn't he just basically saying, look, you got a good company here you got a lot of products, but your rate of return on capital is lousy, and you are deploying your capital >> he actually wants to change the way that the company is structured the company is saying we're already in the middle of a transformation >> i am no expert on this stock or anything els

i'm not calling nelson peltz dangerous. respect nelson peltz he's a successful investor and he's a major shareholder there are ideas that he advocates that i do not think are in the best interest in the short, mid, and especially the long term of the company and i think it would be dangerous to disable our upstream r&d that looks at core technologies and sometimes innovations that take five, eight years to come to market, but could power many categories for many years. that innovation, if you take too short of a time frame, may not fund and one of the thing's p&g's always done, and we have today, innovating in the category they are in, but i think one of the things that's important is to keep some amount of resourcing to look at at ideas that cross categories, that could be transformational. i think his way is what he advocates is to really introduce that dramatically or eliminate it. i think that would be dangerous to the future of the company. it's ideas that i'm concerned about, nelson peltz and i will interact respectfu

we'll talk to the two men at center of the battle, ceo and chairman david taylor of p&g, nelson peltzimself of trian. it's all going in a few hours. >> all getting going, and just a huge vote with two massive interviews to follow look forward to that >> thank you >>> let's continue to discuss markets. joining us now is steven englander head of research and strategy at rafiki strategy. let's continue the discussion around activism. what are your thoughts on activists playing in today's market they had a larger role in 201 0 and 2016, what do you make of their presence in the equity market this year >> i think they're always going to be play an important role the u.s. market is probably not the market that needs them the most plenty of overseas markets could benefit from their presence. also right now the big debate in the u.s. market is not activist versus not activist, it's whether the economic recovery and the profits rally can continue that's driven by much bigger structural forces. they're there and they're important, but not a major factor >> steven, u.s. dollar has come back a li

nelson peltz says it's too close to call and he's contesting the results. this is a near 50/50 split. two out of three for index funds went for peltz. it was the retail mom and pop that turned out to be the swing potentially in p&g's favor. so i asked david taylor ceo and chairman of the board of p&g, since it was so close, would you still consider adding nelson peltz to the board even if it was a slight also. here's what he said. >> no. the shareholders will vote, we'll honor the shareholder's vote. he's a large shareholder. we will listen to him as a larger shareholder. >> what's that relationship going to be like this got a little messy at certain times. >> i think the media got it more messy than it did between the two us and throughout the process i've talked to him. i've met with him six times, i've talked with him many times and in all times i treated him with respect and he treated me with respect and we're going to keep it respectful. it ought to be about ideas and things that will make a difference for the company. and certainly it was a contested

i'm a fan of nelson peltz, the activist movement.es go where they need to go p&g needs rethinking or repurposing over there i would hope that they'd see this as a sign, not oh, we won, he's pushed off, we don't need to change anything they do need to change and i hope that will get them where they need to g. >> yeah, i think boards are on the chopping block right now everywhere for a lot of different reasons and most of all because they're the ones that investors have to look at when it comes to returns to their shareholders. >> right would you guys -- when you look at the consumer staples space or when we talk about those big companies, i mean, does that leave you invested or on the sidelines? >> to some extent it leafs us invested but in smaller companies that are in the space and i also think when i think consumer, i think women and i think that when you've got a consumer-driven company, you got to really be surrounded by a lot of female voices because that's who your customer is and i don't think that's the case here with p&g. >>

in the biggest proxy battle in history, pg&e shareholders voted to deny nelson peltz a seat on the board. leslie picker has more >> reporter: p&g declared a slate of 11 directors had been elected. those are preliminary results. peltz isn't exactly buying those results. he said he's waiting for the certified election results by independent inspector of election he spoke with our sara eisen in cincinnati and he said he's not throwing in the towel just yet >> our numbers say it is as close to a dead heat as possible i think our numbers show we were in the lead this morning we don't know what they came in, we don't know what they brought in if anything, it's plus or minus 1% we need to really count it andened it >> reporter: peltz said regardless of the outcome, p&g should put him on the board. the ceo said no, but he did acknowledge the vote in some ways is a reflection of shareholder impatience with their current strategy >> certainly there's a desire to see us move faster i take the feedback from all investors, however the final vote ends up i think, and frankly i know from many investors

i'm saying he has to be nicer. >> why is the conversation about nelson peltz's track record? >> yeah, unilever would have told it was -- >> i have the numbers from 13 d that i got today in anticipation of doing this segment. and as i said, the return in cisco corporation which is not an exit is 31% i thi in-ger sole and is 65% family dollar, lake mason, dr. pepper, wendy's, twice, tiffany, heinz. not saying these are barn burners. tiffany's down heinz is flat. but i gave you eight other ones. >> i think that long term that income hasn't been great at proctor. they could have picked any of those three men that i mentioned. instead they picked mcdonald he leaves, they should could have -- i don't know to me -- >> it adds confidence when you know that nelson peltz has stepped in there >> i wish he had gotten on the board of ge. if garden had been on the board -- they needed to accelerate whaefrt heck they were doing at ge >> is this a sea change, do you agree? >> no, not at all. i think ackman is asking for too much, but this is one of the largest countries in the world how is i

today in the culmination of a months-long and ugly proxy fight against one of its top investors, nelson peltz, to keep him off the board. peltz says the vote is too close to call. the margin, less than .4%. he's going to wait for a final tally before he concedes defeat. either way, though, he says the message was sent to big companies around the world loud and clear. >> there might be arrows in my back temporarily. but we're a pioneer. the fact is, there is no company today that can't be called to task. not one. and heretofore, all of these companies, you could buy something from them if you were a private equity. but you couldn't call them on the carpet. that's changed. and that's changed for us. >> reporter: ceo and chairman david taylor had a chance to respond in his message to fellow ceos when it comes to his playbook in defeating an activist investor. >> there's only one solution to this, to deliver better results. we've started this process several years ago, deliver better results. as i talk to other ceos, and i know they're concerned with this, is that the pace that you have to move i

would it have slowed things down if nelson peltz had won that seat on the board, do you think? know you know, the -- from the boardroom request for data, request for asking different questions, i don't know the degree to which that really slows things down or not, but p & g took a perspective of why not isn't good enough. i think rather than being backward looking though at this point, maybe it makes more sense to look forward, right i mean, it was a very, very close vote p & g can turn this into an opportunity, but they also have an obligation. you know, the opportunity is to say, you know, we had an externally created sense of urgency created for us let's use that let's use that to cat lies change and accelerate the pace of change. the obligation is that shareholders on both sides of this argument have had a lot to say. p & g has had incredible outreach they've had an incredible number of interactions with their shareholders over the last several weeks and months to shows that voted in favor of procter, it's to headache them feel in favor of their vote. where he heard and you

procter & gamble says nelson peltz was not elected to the board.who owns a substantial portion of the company shares here, has pushed for reorganization, for more innovation, and for its part, the company ceo has this assertive having aggressive pushing back, saying peltz's conception of p&g's outdated, and the company has made improvements he has targeted. this really was a last-minute call here, because there were various shareholder advocacy groups that had been pushing for peltz to get that seat on the board. this was really down to the wire here, but appears he was not successful. windentally, peltz did not a seat on ge's board yesterday. at this like he is 1-2 point. we will follow the story and see if there is any continue development on the vote, if it was close as it got down to the end. vonnie: julie hyman, thank you for keeping and i on that for us. for a of walmart up second straight day. abigail doolittle is here to tell us more. stock is popping higher, on pace for the best day of the year. they are holding their investor day today. b

that will come out in the forthcoming days >> interesting that we saw nelson peltz frame it as a victoryimself because he got so close, but not over the line is that a fair way of framing it it was certainly close >> it is interesting a lot of these activists especially with these fights, they are an uphill battle from the beginning. they look at this as a way to send a message to management so i think nelson peltz looked at the results yesterday as a reflection of the fact that there was large proportion of the shareholder base that wanted change, and the fact he had gotten that far was a victory. it was interesting because he spoke with sara yesterday, and he said they should give him a seat regardless on the board i don't think pga will do that they spent about $35 million to keep him off the board it's interesting how you frame these things >> exactly the p&g chairman and ceo rejected that in the following interview. both of these are examples where the activist investor has a sizable stake, it's not just percent or two. mr. ackman has a reasonable voice. >> an toactual share ownersh

he teed off the big p&g proxy fight with nelson peltz, how close it came and how the index funds wereg factors. great, index funs have power, but we need activist i vesters to ensure efficient markets. so who will do the work that theoretically creates efficient markets? this idea that the market prices things right because so many people are judging, factoring in the information. he said activist investing is one possible answer. that means using your voice and voting rights to maximize value for all shareholders in that light index funds should consider activist investors to be natural allies. pushing against the short-term thinking of activists, and says they're actually long-term >> there's a debate on whether index funds should be more active with regards to corporate governance you wonder whether that long standing spoken or unspoken rule about money managers siding with management unless there's a reason not to is a reason why some of these guys are coming up vocal. >> i think in that p&g fight, many activists were encouraged that two out of the three big index funds went to ne

. >>> and calstrs says they will support the nomination of nelson peltz to procter & gamble's board.alstrs has been an investor with peltz's firm since 2011 another cincinnati company >> a big boost for peltz's effort. >>> bayer halting a phase three trial drug of xarelto. it showed it was no more effective than low-dose aspirin in preventing strokes in patients it has been approved for preventing strokes due to an irregular heartbeat. >>> anyone anyonintendo is ramp duck shun of its switch game console due to strong demand it could ship up to 20 million units this year. >>> general leak electric looking to shave did billion in costs by next year the move following the elimination of the ge jet fleet last month. >>> we have a nobel peace prize winner the international campaign to abolish nuclear weapons winning the prize. that announcement just made in oslo. >>> president trump offering a cryptic message about the future during a photo-op with senior military leaders and spouses here's what the president said last night at the white house. >> you guys know what this represents >> tel

board who will flex if consumers we serve. >> going after the digital chops there indirectly of nelson peltza theme we heard echoed or saw echoed by the former ceo of png yesterday who david you covered published that note saying why he is voting against peltz for the board. meg whitman was on the web cast taking investor questions defendi defending p&g's e-commerce strategy he's on the board. this is the first time we really got any public comments from a board member although we understand that we've been working with institution members in private that try to sway thatter vote which comes on tuesday. >> nobody has embraced the idea of how quickly change is accelerating and many times i speak with her we have her on one of the key reasons why she has slimmed down the current hp inc. to its current state is to respond to these rapid fire changes in the marketplace given the size of what critics say is its decision making, it can't respond to those changes that need to be responded to in realtime in today's marketplace. >> but whitman and taylor and john muller, the cfo on the web cast made

. >>> proctor and gamble says it is the victor in its nasty proxy fight with nelson peltz. he says notpeltz sara eisen is in cincinnati. >> reporter: today he is refusing to concede defeat even of a tore proctor and gamble said their preliminary tally points to a victory that shareholders voted not add nelson peltz to that board by a margin 0.4%. actually a little bit less than that so very close to call. as for the larger question of why, which the company completely got, peltz, got, we got, why the board and management fought so hard to keep nelson petal who hoff petaf the board? >> you know why? three letter word. ego.board? >> you know why? three letter word. ego. i threatened the hallowed walls of that board room and how dare i do that and the fact is that the board needs refreshment. i didn't even call for that. the board needs to really look honestly and openly and say what is wrong with this picture >> right after that, we asked david taylor for his reaction. listen >> it's not ego, it's concern for the future of this company board of directors is extraordinarily co

. -- nelson peltz. yesterday, general electric allowed a representative on its board from try and -- trian. shares down 4.5%. procter & gamble says it shareholders voted to not allow nelson phelps on his board -- nelson peltz on their board but he says the votes are still being counted. as we watch these developments out of catalonia and spain, the spanish market is now closed, the european markets closed for the day. there are proxies by which we can watch reaction in the u.s. what -- one example is a spanish etf, shares bouncing around. now, down one third of 1%. that is one proxy and you can watch the spanish bond market and individual banks trading in the u.s. vonnie: thank you for that. let's check in on the first word news with mark crumpton. >> one of the nations leading gun-control manufacturers -- gun-control groups is suing makers and sellers of the so-called bump stocks, the devices used by the las vegas gunman, the brady campaign to prevent gun violence says it is filing a lawsuit on behalf o

nelson peltz has drummed up support from key institutional investors. teachers and asset management, just to name a few a majority of asset managers hedge funds and investors will likely support tryiien, but the represent the base equal proportion is retail investors. mom and pop shareholders who typically side with manage mth if they vote at all. looking side by side at their shareholder base, this is in many ways a deja vu. when peltz ran a proxy contest at dupont in 2015, he faced a similar breakdown. institutional investors were about 46%, though, and retail was 32%. he, of course, famously lost that fight with index funds being the pivotal vote in the case of p & g, index funds are expected to hold the power once again after speaking with sources on both sides, the index funds votes appear to be a bit of a wild card. they say they need essentially one to side with it to win the fight all together in the meantime, tryon seems to have learned they waged a large advertising campaign in cincinnati with ads in the local papers and on tv to appeal to the

if nelson peltz and trian had raised this hachallenge at any time from 2010 to 2015, i had no doubt he would have won handily. i even think the board may have welcomed him since dave taylor took over as ceo two years ago he's done a pretty good job of cutting costs and regaining the company's moment momentum the plan he put in place is already bearing some fruit, but it's not perfect peltz doesn't think taylor goes far enough as he sees it, prokt ser a top-heavy company where the executives don't have enough accountability whatever you think of the merits of the particular argument, there's no denying peltz is not just another money manager, he's a keen business person i've known him for a long time he knows what it takes to run a successful enterprise. he's been successful in food and any industry procter's management disagreed when david taylor came on the show not long ago. he was vehement that peltz would be dangerous he used the word twice, dangerous short-term and dangerous long-term. he also questioned the track record of peltz's hedge fund, trian. procter, the company, was more

. >> it is important, it is a theme you and i have there is nelson peltz on this morning.ill ackman, guys against -- he hasn't really talked much about herbal life lately he mentioned chipotle the other day. these are all -- these are all active hedge fund situations, i wonder where procter & gamble would be if nelson woreren't involved piper upgraded someone has to sell. takes two to tango we need some deals and it just can't be t-mobile, sprint. >> what does this tell you about what the market thinks p&g wise will happen next week? >> nelson peltz is going to win and shake it up and one board member, whatever jim i spoke to yesterday, he's talking about the idea, it is not necessarily the time, we have our own transformation going. but these big cap companies are so -- they have to come up with something very quickly because if rates go higher, we don't want any of them >> peltz was on squawk making his continuing to make his case. >> what did you think? >> alwayscompelling. i know i understand the other side. david taylor has been doing things the small brand philosophy

it was my stop off ahead of a holiday flight >> nelson peltz says being an activist investor can at timeset ugly here's what peltz told jim cramer last night. >> i think it got ugly one-sided. i don't think -- >> i agree with you. >> i think all we dealt with is facts. i believe there's a direct correlation between how poorly a pane is doing and how big a fight they put up. okay >> okay. >> it's really interesting if you look at the proxy fights we've had, heinz, dupont, now p&g, those are three truly underperforming companies when we got there and i think we helped them all >> shares of procter & gamble are down more than 6% this month. flat right now. >>> still ahead a major step forward. the house is expected to pass the federal budget moving the gop closer to achieving tax reform we're live in washington with the latest straight ahead. >>> first, as we head to break, here's today's national weather forecast from bill karins. >>> good thursday morning to you. rain continues in eastern new england. it's spared areas like new york city now the rain has returned to hartford it will be a r

>> we can only guess, we know that nelson peltz wants a seat on the board.to stay to the end of the year, he didn't obviously. he announced yesterday, surprise announcement, while just hours after or minutes after we were on the air, he announced. this we know that nelson wants the board seat probably to be filled by ed gardner. my guess is this is owned by trion which owns a chunk of ge, why do we write the stories or say these things? i just don't want to talk about general electric, it will move the stock probably announce a major restructuring if this happens. this is a pretty big story. i can't say it's definitely going to happen, i think it's going to happen. i know he wants it to happen, keep watching us for the next couple of days, this will generate an interesting move of the stock. liz: what's a guy, who is -- ed. >> ed gardner. liz: they showed moves they're taking out the nail, the scissors and the corporate weed whacker, that is tiny for a company with this amount of stock. >> they want a more radical downsizing of ge. they want to sell major pa

is this basically conceding to nelson peltz? >> yes.n, we are going to leave you alone. now i think they are forcing their hand. another board member was leaving so the timing worked. the stock has been terrible. ceod: since we had the new everyone is expecting that would really push it up. it is really not had great performance. >> it's down 15% since the little bounce we got when john flannery was announced. there was first euphoria. a change of guard. then they realized this is a $115 billion company. you can't turn it around like that. it's going to be multiple years to get this thing restructured and turn the cash flow around. david: what's the importance of actually getting a director in the board room? over the plan with jeff in mel. it's not like it's a secret. does it make a real difference does have -- to have somebody in the room and forcing it? >> it's one vote at the end of the day. big things do happen in that room. guys have, what you done hasn't really worked. i think there could be some force change. it out for us in te

lavalle weighs in with a letter aimed directly at activist shareholder nelson peltz leslie picker withlock ticks down to the october soth shareholder's meeting >> just about a week to go i spoke with lavalle earlier this morning and he had some choice words the legendary former two-time ceo of procter & gamble has officially thrown his hat in with management in the company's fight against nelson peltz cnbc exclusively obtained his letter titled "this is too important. i'm taking the gloves off. he says he's voted his $70 million worth of shares in favor of p & g's current board and is against adding peltz to it the board. lafley writes mr. peltz and mr. daley are clearly out for number one they certainly don't represent me, a long-term shareholder. he calls their reorganization plan a, quote, step backwards and says of their digital acumen that they would be the last two people in the world that anyone would call to get any insight on digital and e-commerce but phone lafley said peltz's fight is a few years too late. that perhaps bill ackman's timing was a bit better when he took on p

nelson peltz and so forth. look at the stock. it's down 50 cents today and instead of getting out, people are getting in what are they buying take a look at the calls aggressively bought over and over again today the 93.50 calls. that's what the stock, whatever, 92ish earlier today. big volume and 7,000 of those traded very quickly. they like it i'm in there as well i'll probably be in this one into the middle of next week second stock, because i'm going to give you a two-for just like pete >> go ahead. >> abbvie, look at the stock running $2.50 higher they came scrambling in here again today and look what they were buying. in abbvie they are calling big block purchases, blocks of calls, just out of the money from where the stock is now, and they are basically saying about 3,000 of those traded. i bought those as well just a quick highlight, judge, granger yesterday. we said really unusual call activity they started buying when the stock what is 188. by the time we came on the air it was 196 granger, take a look at that today. 20

nelson peltz who has donated big mostly to republican candidates, the fact that he is lending jets to trump administration official is raising eyebrows. it's also triggered a review by the inspector general. a separate inquiry into his boss, mnuchin, over seven flights he took on a military aircraft that cost $800,000 to taxpayers found that he broke no laws. now, there may be no breaking of laws, but whether it's elaine chao, zinke, mnuchin, rick perry, the fact that there are military flights, private flights, isn't this the opposite of what trump ran on? >> we have normalized the culture of graft. that's what's happening. that's what's happened here. and it's so -- given that the pledge was to drain the swamp and given his -- how fiscally conservative he has argued he wants to be, it is all the more remarkable to watch these officials -- >> but that's the perversion of it all. remember the $16 muffin, criticizing nancy pelosi. how come all of that is wiemd o -- wiped out? >> i wonder whether it is wiped out. i wonder whether president trump watches all of this in frustration and i

over that same amount of time i don't know if people will be really comparing the two >> when nelson peltz don't get this board seat, and he said that was a complicated question for him because he doesn't want to indicate to people that it doesn't matter if he gts a board seat in the past, though, it hasn't necessarily meant that he has gone away. >> exactly with dupont, for example, he lost that proxy battle that was the first proxy battle he ever lost as far as i know, it's the only one he has ever lost he has stuck around, and then all of the changes he was hoping to be implemented were actually impolicemened and, you know, at delivering alpha they had a great panel with the current ceo of dupont, ed green, where they talked about what it was like to work together. snoo let's talk about it let's bring in nick modi >> what are they so afraid of in terms of the one guy, and how is it different than general electric it's ins lar i'm from cincinnati. i know this country. very ins lar very old-fashioned that way. one guy in thesize of that board would make that big of difference what is p &

nelson peltz speaking out on more than just p&g we'll talk about that. we've got to get ford, buffalo wild, southwest, and explain what's going on with amgen and celgene this morning when we come back. the amazing new iphone 8 is at at&t... and we know you'll love it. because we know you want more. more great camera features and more power. and more than just unlimited data, we give you unlimited plans with hbo included for life. because you deserve more entertainment. and more spokespeople. talking like this, saying the word more. at&t. it's time for more. am i too close? i feel like i'm too close. get the iphone 8 and with all at&t unlimited plans, get hbo for life. only from at&t. well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big

faces pressure to increase sales following a bitter proxy fight with the billionaire investor nelson peltzs been an outspoken critic of the company's performance. shares fell more than 3% to $88.25. >>> hone raised its full-year revenue outlook after seeing strong performance in its aerospace division was the driver behind higher sales in the latest quarter. profit also rose, and the company reaffirmed its earnings guidance for the full year, and honeywell shares were up 1% to $145.35. >>> schlumberger warned analysts might have unrealistic expectations for the oil field services company's fourth-quarter earnings. the company said results would be impacted by a decline in producer spending in the u.s. in its latest quarter, schlumberger reported a rise in profits and revenue. shares fell 2% on the session to $63.15. >>> well, despite facing service disruptions due to hurricane harvey, regional railroad operator kansas city southern reported stronger-than-expected profits, but the company said it expects a decline in some shipments in the fourth quarter, cited the uncertainty over the futur

the company, which recently beat efforts by activist investor nelson peltz to win a seat on its boardterly net sales. also, watch out for third—quarter profit figures from the likes of ge honeywell and schlumberger. joining us is lucy macdonald, chief investment officer, global equities at allianz global investors. good morning. great to see you. thank you for coming in. as i was saying earlier, over in asia we saw this sharp rise again on the nikkei in tokyo. again, rising for a 14th straight day. it's best winning strea k straight day. it's best winning streak since 1961. what's behind this and is a correction due any time soon? it's playing catch up with other asian markets and other markets around the world and it has been a very strong year for all equity markets. so, what we're looking at to see how long can that continue. volatility is extremely low. valuations are quite high and we are going into the earning season 110w we are going into the earning season now which will be distorted by some of the hurricanes that we have seen. so, there is potentialfor a little bit more uncer

coming up, the battle between activist investor nelson peltz -- will nelson peltz get his one seat? with donald trump in washington to discuss international security insurance. scarlet: looking forward to the handshake. julia: nobel prize running economist paul krugman joins us at 3:30 p.m. eastern to get his insights from leadership at the fed and it going that bit going that b -- bitcoin. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> i'm in washington and you're watching "bloomberg technology." let's start with a check of your first word news. the white house is finalizing an executive order that would expand health plans offered by associations, to allow individuals to pool together and buy insu

actually i don't see how shareholders would have lost if nelson peltz had gotten a board seat, i wish he had. if your going to make a bullish play, buying a call here is the simplest and best way to do that by far i mean, there's very little to lose there's a lot to gain. and as you point out, you know, the ceo of this company is going to have to tell an exciting story at this point. and basically, you know, we won the proxy fight. that's basically the affirmation that we're on the right track strategically. >> the key level, it was christmas, it was the 24th of december 2014. we were literally right back to that level after basically three years of underperformance. here's the real thing. it's been a massive underperformer of the entire market you expect a defensive asset to yurn perform in a full phase, but this has been massive underperformance, underperformed its own sector and badly >> because you have these dynamics, using options makes the most sense really the issue is, is it going to be the catch-up trade, or is there really something fundamentally broken the fact that it's b

procter & gamble stock sinking after ending its contentious fight with nelson peltz.to the tune of about 3% as the dow looks for its sixth straight week in the green, interesting to have high profile misses and the market is thinking about other thinks. >> these big old sort of former bellwether companies struggling to find their way, when the rules of play seem like the have been set when it comes to the tax cut talk if you get incremental pros, okay, fine, we'll try to add value to the market like happened overnight, but nobody is getting, i think, too far ahead of themselves and think that's baked in for 2018, and then the offsets of earning season expectations are pretty high, and you have to be pretty good to have a pop in stock afterwards, otherwise it's a sell on news response which keeps the market stuck in place, i guess. >> the only stock performing worse on the dow right now than ge is procter & gamble this was a disappointing quarter for a lot of investors especially with the pressure on management after the super close proxy vote the preliminary result sh

. >>> now that procter & gamble claimed an oh, so narrow victim ray in proxy fight with nelson peltz,an't wait to see if they take some of his advice after spurning the guy why not expect some change nearly half agree with peltz that they're too insular and that's what he was pushing for given the millions proctor spent to battle this, resonates more as endorsement of his positions than repudiation aside from proctor, estee lauder -- and the stocks act terribly three winners have in common run by executives who used to work at procter & gamble, born elsewhere, tremendous command of multiple international markets the naples-born ceo of estee lauder started at proctor, had a career there in global stocks. ceo of estee lauder in 2009, remarkable job traveled from $16 to $109 chief stamp is innovation, develops new exciting cosmetics faster than any smaller competitor could. laboratory of innovation understand what's local people want, what sells and where the markets are going like no one else what was proctor thinking when they let him get away? or german-born ceo of clorox came out of

parker and gamble declaring victory in its battle to keep billionaire investor nelson peltz off of itsey say that based on preliminary results, all 11 of its directors were elected in the shareholders meeting. says thelson peltz fight is not over and is waiting for an independent inspector who will certify the results. prices -- reviewing options for its consumer health care business which could be worth $17 billion, the possibility is a spinoff, sale, or other transaction and the consumer health unit sells products like advil and the dietary supplement centrum. they said the unit brought in $3.4 billion. walmart forecasting online sales up 40% in the next fiscal year, they are expecting its investment in e-commerce to help it play catch-up with amazon. walmart plans to add 1000 online grocery locations, twice the current number of sites. ♪ take a look at where european markets are trading, heading to the close, four minutes away from the end of the tuesday session with stocks marginally higher for the stoxx 600, gains in london and declines in germany and in france. the closest 3.5 mi

>> yes >> do we know this number for p & g, nelson peltz?> 0.2%. >> if you were p & g, wouldn't that say to you that maybe shareholders think it would be okay if you did this wouldn't you think maybe -- why not just bring him on? >> would i have been -- i said that they lost -- >> he did say that >> pr-wise >> pr-wise and -- >> if you were p & g, and it was .2%. >> .2% is six million votes. >> i know. >> there's one issue, and i don't know the answer on this. you might actually know the answer on this it's outstanding shares. it's not necessarily shares voted. >> right it's shares outstanding. >> but they did talk about how many votes the -- >> nonetheless -- >> look, it's -- >> a powerful message has been delivered at minimum, and the idea is that, by the way, given that he may or may not get on this board or unlikely will, that he is probably going to be hanging around the hoop for the next year and really putting an enormous amount of pressure on them whe them either way, to some degree nelson peltz has won >> my whole malta ambassadorshi

that's why nelson peltz is trying in the management he is the partner that is actually on the board sooming to ge. i think it's likely to stay. i don't know. a lot of the old employees rely on that. don't trade this base in my opinion. i think the dividend story is way over played. what i do know is going on inside the company is flannery doing the top to bottom review. and here's where i think investors are missing the boat on this thing. he is looking at all scenarios including a major breakup of ge. you name it. a lot of businesses that are not continuous. they are not perfectly aligned. what i understand flannery is looking at one of the scenarios if he does go there this is the one think i think analysts will say he will boost the stock. it is not only as toxic as an overstatement. it's tough to hold a stock right now. even the people who had left the company they have a negative tinge to them also. they have just gone to the company are conic which had spun off from alcoa and he will be the new ceo. that stock is down. last leslie checked 9%. now it's down 10%. all because an ex

ge towardjoins the yesterday and nelson peltz has been pushing ge to get off it's up since acquiringmr. garten said he is disappointed about the recent performance that he believes it represents an attractive long-term investment opportunity. is this basically conceding? they havet, they said a good plan and we will lead you a lot. then the stock went down. now they are forcing their hand. also another board member was leaving. the timing worked. stocks are terrible. there was first euphoria, change of guard, then there was a billion dollar company. it will be multiple years to get this thing reached. it has been restructured, what to turn cash flow and other things around. uber'scontinuing saga of legal troubles, they are facing two additional criminal investigations. -- have bribery, fcpa >> fancy acronyms. >> the legal fight with alpha that, self-driving car's -- alphabet and self-driving car's. hell and acing and great ball are the remaining -- greyball are the two remaining competitions. aside from brexit, prime minister theresa may is grappling with fallout over trade disputes

the nelson peltz portfolio it's friday, october 20, 2017, "squawk box" begins right now. >>> live from new york where business never sleeps, in is "squawk box. sfloo good morni >>> good morning welcome to "squawk box." i'm becky quick along with joe kernen and andrew ross sorkin. you are look at strong gains for the futures. the dow indicated up by almost triple digits. looks like we'll open up 99 points if we open here s&p indicated up by six points after both the s&p and the dow set new records once again yesterday. we'll keep an eye on all of that on this last trading day of the week look at what happened overnight in asia. the nikkei eking out another gain a gain of 9 points, but that's the 14th day in a row that we've been looking at gains for the nikkei these are the highest levels we've seen in 21 years nikkei closing at 21,457 the hang seng with a gain of 1.17%. and the shanghai up by 0.28% the dax is up, the cac in france is up by 0.21% spain is up, but just barely look at crude oil snapped a four-day winning streak. it is still above $50s a b s a >>> on the wall street agenda

. >> much harder to get the points across different to the way it worked for nelson peltz and the other big clash. >> with p&g. >> mr. ackman struggling to get his way across, even if he has the right ammunition, he doengts have the same authority. >>> peter thiel and sean parker are financing a secretive cancer fighting startup a source tells cnbc the company called 3t bio sciences raised more than $12 million in a massive seed round the firm is looking at ways to use the body's own immune system to fight off company we don't know much about the company but it is being run by a group of academics from stanford. >>> google announcing a bunch of new products the company doubling down to its commitment to the hardware business as it competes with devices from amazon and apple. some of the devices were the google home mini and max a high-end pixel book laptop that runs the chrome operating software, two new phones the pixel 2 at at $600, and the pixel 2 xl that is 850 bucks and ear buds that can translate any language into english at the same time. >> the headphones sound cool >> how does

ed garden joins the ge toward yesterday and nelson peltz has been pushing ge to get off it's up since its stake in 2015. mr. garten said he is disappointed about the recent performance that he believes it represents an attractive long-term investment opportunity. is this basically conceding? >> at first, they said they have a good plan and we will lead you a lot. then the stock went down. now they are forcing their hand. also another board member was leaving. the timing worked. stocks are terrible. there was first euphoria, change of guard, then there was a billion dollar company. it will be multiple years to get this thing reached. it has been restructured, what to turn cash flow and other things around. >> the continuing saga of uber's legal troubles, they are facing two additional criminal atwo additional criminal investigations. there are five ongoing probes. have briberyly, we witches of c.p.a.. >> fancy acronyms. >> the one rooted in the legal fight with alphabets self driving car and how they obtained and whether they obtained trade secrets there. hell andave pricing criminal a

nelson peltz is still disputing the results, saying it is way too close to call.ctory and said he was not voted onto our board. just listen to peltz's response as we wait for this to play out. by the way, i can tell you, the final vote count is going to take weeksering not just days, according to a source. listen to peltz. >> it is as close to a dead heat as you can find. hopefully, the numbers when they're finally counted will come out in our favor. but if these guys really cared about shareholders, and they heard what was said inside that room, they would say, you know, enough fighting. come on the board. >> so i asked david taylor, p&g's ceo and chairman yesterday, would you would you invite nelson peltz onto the board because the vote was close, even if he loses by a small margin here was his response. >> no, the shareholders will vote we'll honor the shareholders' vote he's a large shareholder we'll listen to him as a large shareholder. i'm fought calling his narj. he's a successful investor and major shareholder. there are ideas he advocates that i do not th

ed garden joins the ge toward dashboard yesterday, nelson peltz has been pushing ge to get its profitsits stake in 2015. mr. garten said he is disappointed about the recent performance of ge stock, but believes it represents an attractive long-term investment opportunity to the upside. is this basically conceding? you were right all along? >> yes, at first, they said they have a good plan and we will lead you a lot. then the stock went down. maybe we won't leave you alone and now they are forcing their hand. also another board member was leaving. the timing worked. but the stock has been terrible. there was first euphoria, change realized,then they you can't turn it around like that. it will be multiple years to get this thing reached. it has been restructured, what -- but to turn cash flow and other things around. >> the continuing saga of uber's legal troubles, the company facing two additional criminal investigations. five ongoing probes of the world's most valuable start up. >> very quickly, we have we have bribery, fcpa -- fancy acronyms. >> the rest are not. the one rooted in the

procter & gamble declaring victory today after a months long and somewhat ugly proxy fight between nelson peltz of trian to keep him off the board. peltz said the vote was too close to call. the margin 0.4%. he will wait for a final tally before he concedes defeat. either way he says the message was sent to big companies around the world loud and clear >> there might be arrows in my back temporarily but we're a pioneer, the fact is there is no company today that can't be called to task. not one. and heretofore all of these companies -- you couldn't get near them. you could buy something from them if you were private equity but you couldn't call them on the carpet. that's changed. and that's changed forever. >> p&g's david taylor had a chance to respond in his message. >> there's only one solution to this, to deliver better results. we've started this process several years ago, deliver better results as i talk to other ceos, and i know they're concerned with this, is that the pace that you have to move in order to stay the lead in your industry gets increasingly difficult, which is why the chang

tomorrow we're live in cincinnati for p&g's shareholder vote, if nelson peltz will get a seat on therd. we'll speak kplexclusively with david taylor you won't want to miss it. listen up, heart disease. you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies, and data without insights. and fragmented care, stop getting in the way of patient recovery and pay attention. every single one of you is on our list. at optum, we're partnering across the health system to tackle its biggest challenges. concerns and reports that some iphone 8 batteries are swelling and causing phones to split. but the stock is still up 35% this year, despite a recent dip. joining us now with the insight andy cunningham, steve jobs' former publicist and helped launch the original macintosh and is out with a new book, "get to a-ha" which helps companies best position themselves great to have you. >> great to be here. >> branding, i don't know. i thought millenials don't care about brands is that not true >> i think millenials care about bra

the company is estimating it will spend $35 million and nelson peltz's firm said it would spend $25 millionkely to be the most costly proxy fight ever. and one reason why it's added you up so quickly on both sides is that p&g has a lot of individual shareholders. retail investors make up 40% of p&g's shareholder base that's about four times the proportion of an average company which has about 10% retail this is important because outreach to dentists and day traders is expensive, inefficient, old-fashioned both sides have paid people to work the phones, send letter which costs money to print and mail peltz has waged a large advertising campaign in cincinnati with ads in local paper, local tv to appeal to the retail investors in p&g's hometown peltz learned about this the hard way he learned about the importance not to discount retail dupont became the first and only fight he's ever lost 1/3 of due pobt's shareholder base was retail which sided with the company. when the index funds voted in favor of management dupont won that fight the question now, will we see a repeat of 2015 or will the v