what is her response to investors like peltz? isoyi will listening to their investors but she is shutting out all the noise and focusing on what pepsi does best, they continue to drive growth through leveraging their beverages and their snacks . she is facing a few headwinds, including a softening soft drink market. has also hit coca-cola. you have seen pepsi's stock up about 4%. dropped by about that much. this is where peltz comes in, over the long term since indra ceo, they have underperformed coca-cola. he says the company would do better if it could split and focus on each segment, either beverages or snacks. i asked indra nooyi this morning, i said why do beverages and snacks work so well together, this is what she said. >> the pairing of these two is like peanut butter and jelly. they go together. they naturally go together. if you are creating a food and beverage portfolio in the convenience space, you are creating pepsico. says there is lots of extra costs that could be cut he of the company, including has proposed conso

dealing with nelson peltz who wants to see pepsico spinoff the struggling beverage business.ty liu spoke with the pepsico chairman and ceo about dealing with activist investors, and she joins us now. still on set with me is jeff mccracken. --t does he say about how she say about bringing back the carbonated soft drinks could affect the business? >> both pepsico and pepsico -- coca-cola dealing with a deflated soft drink market. there is no secret to the trend. there is diy home improvement am a cars and now diy colas. that seems to be the next trend. she's wanting to see if this markets -- in the market will really grow, and if it is a misuse open to looking at technologies being developed, including the one game developed by soda stream. they are the target of a lot of acquisition talks. the things she said to me on that which i will play for you in a moment, pushed the soda stream stocks up to an intraday high. let me first play for you what she said. >> in-home soft drink manufacturers could be something that is a significant force into the future. when that is going to ha

peltz and what he's been arguing for.ating the supply chain reinvention program, what they're saying, all designed to take margins up of course. $3.5 billion what they're calling the program. $2.5 billion cash, expect to generate 1.5 in cost save business 2018. mun da lease now is more or less a snack company. 85% after the coffee divestiture is completed, 85% of revenues will come from snacks. and so you are seeing a very positive response in the market this morning, despite really what were less than -- which were under whelming numbers for the company for its quarterly report. >> i see peltz's fingerprints all over this in a positive way. >> this has been in the works for a year. management would have you believe, even though he's part of the team on the board, this is not something he was a part of. >> is this not right out of peltz's head. in conjunction shn with the proposed coffee transaction announced a plan to create a leaner, simpler, more focused organization reducing operating costs. that's him. by the way if

one very particular investor, nelson peltz who has been after pepsico to split the company.uhave done research and said, no, it is not a good idea. it will not increase your shareholder value. what gives you the resolve that you really stood up to him and said no way? >> i would not call it standing up to any shareholder. we listen to all of our shareholders. our goal is to create good shareholder value for all of our shareholders. we talked to all of our shareholders and listen to their point of view. at any time a shareholder gives us any sort of feedback, comments, input, we take it very, very seriously, because at the end of the day we are all shareholders of the company, too, and if anybody has an idea on how to create more value we have the first to take it to heart. i personally own 20 times of my salary in pepsico stock. in the case of all of the suggestions that we received, we actually studied it with great care. of one a strategic advantage? we always have known it is a strategic advantage. we went back and studied it. we are even more convinced now that pepsico i

peltz wants to break into a beverage company and snacks company.ething management's not willing to do. we know that simply having an activist in there is a thing that makes topnotch ceos up their game. and if pepsico stumbles, there's a real chance that he'll be able to push through his breakup plans and bail you out since when companies split themselves up, it's almost always a win for shareholders. pepsi does have a smaller yield than coke, 2.7%, but also cheaper, it has more potential upside. here's the bottom line. since the beginning of the year, dr. pepper/snapple, but that outperformance was driven by finite cost cutting and a flight to stocks that offered domestic security. going forward, i think dr. pepper may have run out of the major cost to cut, which means that coke and pepsi should be able to play catch-up. i like them both. but pepsico is my favorite. jeff in california, please, jeff? >> caller: boo-yah, jim. >> boo-yah, jeff. >> caller: jeff from sunny southern california. i want to shout out to my beautiful daughters. i'm calling a

is an analysterg at state full who recently met with nelson peltz, the activist investor who wants to >> snack and beverage? >> he says they are costing the company more than they should. just met with mark and he will give us his take on his position. >> indra nooyi has held firm to the idea that they belong together. "in the loop" starts at 8:00 a.m. and the special airs tonight. >> looking forward to that. do you drink pepsi or coke? >> i don't drink soda anymore. >> i don't either. richard haass, do you drink soda? >> too much -- pepsi, coke, diet dr. pepper. >> is it free at the cfr? >> no. tom's dues pay for it. is back from metamorphic ventures, the second ever employee for the new york office at google. and a lot of talk about jobless cars google is coming up with. take us inside google, you know what the zeitgeist is inside the place. is this a pipe dream? >> i have been out of the google for six plus years and i still say "we." there've been talking about the javelin scars and is beginning of time. the idea of -- they have been talking about driverless cars since the beginni

and nelson peltz at $375 million. number 21 is david einhorn. $350 million in earnings there. and then there is bill ackman comes in 28th, but still number 28 is worth $265 million. andrew, a nice list of folks making a heck of a lot of money. >> so come over to the table here. hang out with us just for a little bit. i want forget your views on some of this. editor of alpha magazine put the list together, okay, can we talk about steve cohen? $2.4 billion. what did he pay again, what was the settlement fee? >> $1.8 billion in total. civil and criminal fines. >> so less than a year's worth of business for him? >> yes, he could write a check for $1.8 billion. >> and dominic suggested he'll be off the list in the future. he'll be off a public list. but i assume on some private list somewhere he'd be on that. >> for our purposes, you need to be a hedge fund manager and actively managing outside money. >> does anybody do family offices yet, is it possible to monitor family offices? >> for goreorge soros, you coul. once he converted soros management for a family office, we took him o

noen i don't know if we have nelson peltz to thank for. d.e.ory, i had no idea who they were. do they eggberts, the dutch company, coffee branderson. >> that's why they've shortened it to d.e. >> his pronunciation is no better than mine. >> that is a mouthful. >> that's dutch. >> in a little while, janet yellin will testifying before congress. her testimony will likely set the tone for the trading session. it was a sea of red yesterday joining us is jeremy siegel professor at the university of p. and a "squawk" market master and guest host jay jordan who has taken the bearish side on post-things. jeremy, maybe you could convince the gentleman to my right, how are you feeling ab things right now, jeremy? >> well, i think two major things that have changed this year is the long-term interest rate picture. everyone expected the tenure to be 3.5 by now on the way to 4. it's closer to 2.5, i, myself, i to the interest rates keep going up. now i think we will have low interest rates on that long term for quite a while. no matter what town allen says