peltz has taken on other consumer companies like heinz, pepsi and food maker mondalese. leslie picker reports. >> a big investor called trian is pushing for one board seat at procter & gamble but the hedge fund needs to convince a majority of shareholders to give it a seat. it's the largest company to face such a fight against an investor. trian ceo nelgsson peltz saying the company could use fresh blood. >> you have people at p&g, for the most part, no, not for the most part, 9 the 99% that never had another job but p&g. you should have a soft target that at least 25 of them come from other companies because these guys only know one playbook at p&g. okay? when they get together to solve a problem, you know what they're doing? they're talking to themselves. >> reporter: p&g responded to trian in a statement saying, "t rirks rian has not provided new or actionable ideas to drive additional value for p&g shareholders beyond the successful execution of the strategic plan that is in place." in a filing this morning trian said pelz could help p&g's cost and bureaucracy. peltz

"there is noggin kremental that peltz has offered.ant to prevent anything from derailing the work we're doing the fact he has good advice doesn't mean we just add him to the board. for more, let's bring in senior vice president at sanfor bernstien. do you support knell nelson pel do you agree with the board? >> i think the stock action today says it all. it's a very minor move in the stock. minor improvement based on the quarterly results to be fair one quarter certainly doesn't make a turn around i think to be fair, dave taylor tried to push the envelope forward. does he say and he said in the earnings call that he needs outside points of view i think peltz's history has shown outside points of view and i think that might be something that p & g needs on the board. >> so this argument that he's not bringing any new remarkable ideas, we've got a rigorous board process and, therefore, you can't just come on when you have advice, not to mention the fact that taylor told me peltz tends to bring a bunch of people and they don't want a who

>> a lot of peopleare talking about that we're going to discuss nelson peltz. it's kind of a wells fargo board feel, if you know what i mean. >> uh-huh. >> the places that you want to be this week, so microsoft gets called out positively. morgan stanley raises the price target. >> apple >> brings it all back to big tech we started with microsoft and now apple and some others. >> yes and technology has been strong it continues to be strong. and anybody who has any part of the cloud -- >> it is cloud cloud is adoption and it used to be thin and now it's retail. health care is adopted and these are really big secular trends i come back to j & j the stock got slammed. look at what it does by the way, that's the best for the dollar. >> but the banks are important this week. >> true. >> especially since they started off not so great i think the quarter was fine there were puts and takes but we really need to see bank of america do well. i think morgan stanley will do fine morgan sacks is the wildcard everybody knows that it wasn't great but it wasn't as bad as we exp

peltz wanted one seat on the board.wasn't looking to replace the current directors, fire the ce o. his firm said his addition would help boost shareholder returns and market share and drive down costs and bureaucracy. peltz spoke can "squawk on the street" earlier today and expressed the need for fresh blood at p&g. >> you have people at p&g for the most part, no, not for the most part, 99% who have never had another job but p&g. you should have a soft target that at least 25 of them come from other companies because these guys only know one playbook at p&g. okay >> nelson -- >> get together to solve a problem, you know what they're doing? they're talking to themselves. >> p&g fired back saying "trian has not provided new or actionable ideas to drive additional value for p&g shareholders beyond the continued successful execution of the strategic plan that is in place. analyst at morningstar echoed the company writing in a note today, "we failed to see a major impetus behind peltz's approach and little to suggest his ove

it's the largest company ever nelson peltz joins us on the phone. great to have you anyway you come to us including on the phone. >> good morning. great to be with you guys. >> and carl too. >> and carl. >> nelson, are you -- well let me get to it you haven't been a shareholder long enough. five months. they don't feel like you really have the aging, so to speak in your shareholder position that they'd like to see they claim that you wanted them to promise an eps target and they feel like you would change the dynamic on a board that's operating well what do you say to them? >> first of all i want to tell you david that p&g meets all the criteria that we at trian look for. a great company with phenomenal leader but one that hasn't lived up to that potential for quite some period of time. if you look over the last ten years it is low if you look at market share it's for a ten year, five year, four year, whatever period of time you want to look at it is losing market share. but it's the only company out there that has over 20 billion plus dollar brands

nelson peltz is angling for a seat in the busy jumpstart. all of that is coming in the next two hours. we are 30 minutes into the trading day of the u.s., and we are not moving very far. is moving enough, catching up to the closing indices that set the records on friday. any gains for the s&p 500 or for may make a record close for today's session. we are in the summer to older us. -- the summer doldrums. if you are looking at global risk, we are seeing it fall to the lowest we have seen for some time. global riskp aversion macro index -- the red line here is the average we have seen over the last decade. so now we have seen this index fall so much that it has met the average from the prior decade. that risk aversion is at relatively low levels. but again, there are pockets of activities where we are seeing risk aversion today, to continuing risk aversion in financials. after the numbers that we got friday and citigroup and wells fargo that sent those stocks lower, they are continuing to trend lower today at the numbers later this week and th

happily, peltz is not pushing for that even. only you and that analyst this morning. >> jeff, you say all these good things about the management. the stock though still underperforms. >> amazing thing about the magic of markets unless you're elon musk and jeff bez bezos, it doesn't happen in seconds. i'm not sure a honeymoon period ought to be but it ought to be longer he's doing everything right, as even peltz says he is. if peltz said that the ceo is doing everything right, let's take him at his word they have reduced from 16 product categories down to ten bringing in more focus that the higher shareholder performers in this space have had more focus and they're getting back to that focus and they've got the right guy to do it. >> how do you think nelson peltz ultimately makes money is he along for the ride he's got a new ceo they're on the right track any move a little faster maybe the stock price might move higher faster? a guy like nelson peltz doesn't tie up a few billion bucks in a $224 billion market cap company for no r

we'll hear from nelson peltz when he appears on "squawk on the street" at 9:45 a.m.e bank of mark mel lon has a new executive chief officer. charles shark who was formerly the ceo at visa. he replaces the ceo who will remain as chairman through the end of the year. and watch for the latest numbers from netflix, after the closing bell, and now happening this afternoon. analysts predict netflix will report quarterly engs of 16 cents a share on revenue of nearly $2.8 billion. they'll also be keeping a close watch as they always do on subscriber growth. >>> a new report on the economy this morning suggesting some good news for workers. steve liesman joins us with the details. is this wage inflation finally starting to -- >> i don't call it wage inflation. i call it wage growth. we can talk about the difference a little bit later but that check with your raise might finally be in the mail a new survey from the national association for business economics suggests that wages are already on the rise. 47% of the 101 businesses surveyed said they're hiking wages up 8 points fr

walk us through, who nelson peltz is and why, when you're proctor & gamble and you hear that he wants're taking that phone call? >> listen, he is the kind of guy who gets in and has had trian funds a very long time. he has been involved in other proxy fights and he really has a positive attitude on this one. he worked for dupont for a while. the idea he wants to come on board and make changes. he does not want to replace the ceo. he does not want to rye move somebody from the board. in fact he wants to add one more seat. he wants to put his voice in this. he has 37 million shares, 1.5% of the company. and he wants to to be a participating shareholder, not a big bossy activist investor. trish: let's talk about-off all market. anthony making a point this company is trading at 24 times earnings. s&p trading what? >> 17 forward earnings. trish: 18 times earnings, so this is a good sign. what it tells you potentially, is that there is more room in this overall market? in other words all these companies have the opportunity to become more profitable perhaps if there is right policies in pla

first though, more from our exclusive with nelson peltz.e'll take you inside the proxy fight that is taking place at procter & gamble again, it is still the narrowest range for the dow in a few years, less than 30 points we're back in a minute you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. >>> nelson peltz joined us on "squawk on the street" this morning in an interstrew talk about the proxy fight with probl procter & gamble back to recap what a 20 minute interview that was >> yeah. a lot to go over there of course, something unexpected here is the presence of a proxy fight at all mshgs would have thought after the ownership for quite a few months and their desire for a bo

. >> procter & gamble taking on activist investor nelson peltz and why the consumer products company is fighting back and whether it can be successful we'll get into that coming up. >> and why the health care bill remains uncertain. new reports say that tax reform will actually move much quicker. we have details on that coming up let's start though with the big week for earnings. we have black rock shares under pressure at this hour after that disappointing earnings report this morning leslie picker steps in with details on that. leslie. >> reporter: hey, bill, that's right. blackrock raked in $104 billion during the quarter to put that into perspective, its qt funds were stand alone they would be the 26th largest in the u.s however, 80% of that comes from money going into blackrock's ishares etfs and index funds the firm has been lowering fees on etfs to capture more share as well that's a big part of the story behind blackrock's financials during the quarter revenue and net income both increased, but they missed analyst estimates. blackrock reported earnings per share of $5.24 on a

they suggested at that meeting that nelson peltz get a seat at the board and the company's directors that was not the avenue they wanted to go because they already had a plan in place for righting the ship. david: is this a restructuring situation? often, activists say, let's break it up. scott: it is not a breakup and not a ceo change. it is very much acceleration of the plan. peltz does not believe that will have any impact whatsoever unless they have somebody there guiding it and pushing it through. >> a country moving to reduce financial risks and stimulate growth, some banks have lowered the rates they offered on wealth management products. >> the wealth management product part of this particular push is important because they are essential cog in the china banking industry. on the one hand, they are quite popular for retail space, looking for higher yield. they have been averaging 4.6% in recent months. that is much higher than you can get in other products. retail is happy to funnel their money. the banks like that because they are an alternative source of funding, they are ch

peltz says that had no effect.3 billion in savings, and peltz does not believe that is going to have any impact whatsoever unless somebody is guiding it and pushing it through. david: what has the stock price ?one under the new ceo >> if you look at the last 10 years, try and's argument is that it is not what its peers are. david: if $13 billion is not >> it is an chance of seller a -- accelerating change. what about cutting costs? >> cutting costs is honestly part of it. implementation less the acceleration. alix: and p&g is no stranger to changes. what is the tractor -- the track record for activism when you have a huge company like png and you are such a small shareholder. it is such a huge ship of all these different components. >> we are starting to see this now. --se top-tier activists because these companies are so big, they come in with ideas that are so constructive, and david: what ist the balance sheet look like? >> procter & gamble is one of these conglomerates. it has lots of money, lots of things goin

interestingly peltz does not advocate for changing management he's backing taylor.kup as well, just wants the company to move faster with some of the changes like cost cuts and making the companies within the company operate faster and leaner and more efficiently. >> all the big executives, the ones with the big paychecks lived out near you in amberly village, right >> no, they lived out in indian hill >> i'm talking east side of town, not from i'm -- i always say that i had to walk to school uphill. >> do you have graders on the west side of town? >> we have graders but also sailor park and pete rose and things like that anyway, thank you, sara. >>> waste management meanwhile is out with earnings the houston-based trash hauler beat on the top and bottom line. the company says results are driven in part by higher recycling commodity prices and volumes. joining us now, jim fish, waste management president and ceo it's good to see you. >> yeah, good morning, joe >> where's steiner >> i talked to him via text the other day. >> playing golf all the time. >> playing golf

get auggested that peltz seat at the board and the company's directors decided that was not the avenuewanted to go because we already have a get a seat at the board and the plan in place for writing the ship. >> is this a restructuring situation? >> it is not a breakup and not a ceo change. it is very much acceleration of the plan. peltz does not believe that will have any impact whatsoever unless they have somebody there guiding it and pushing it through. to reducery moving financial risk and stimulate growth, some bankers have lowered the rates they offered on wealth management products. >> the wealth management product part is important because they are essential cog in the china banking industry. on the one hand, they are popular for retail space, looking for higher yield. they have been averaging 4.6% in recent months. retail is happy to funnel their money. the banks like that because they are an alternative source of funding but cheaper. the reason regulators are worried, they are saying if you are paying yields that high, there is a risk you might pass it onto your customers and

incremental peltz has offered. want to prevent anything from derailing the work we're doing the fact he has good advice doesn't mean we can add him to the board. when i pressed taylor on why not pay or wi taylor said peltz brings a group with him and to bring a shadow management team "isn't what we need" so both sides making the case to investors today and likely will continue to do so until the company's annual shareholder meeting this fall around october, tyler. >> all right, thank you very much, sara >>> shares of ethan allen getting a nice bounce but they're double digit down this year the home furnisher betting on a partnership with amazon to expand its reach wi ipay llt off? we'll talk with the company's ceo next >>> time for your business of the week water bottles are getting a luxe upgrade. sara launched s' well. she wanted a water bottle as stylish as the rest of her life. now water bottles have become the must have fashion item at fidelity, trades are now just $4.95. we cut the price of trades to give inv

what are you hearing from investors when it comes to peltz and whether he should be on the board? >> you know, frofbl our perspective, you know, we see little to suggest that he is going to accelerate the change obviously as we've talked, you know, p & g is attacking the challenges that are facing the business from a number of different angles and so we think that they're doing the right things for the long-term health of the business and don't necessarily foresee his position on the board as accelerating and driving further change or more meaningful change over the near term >> but why do you think the company has been and the board specifically has been so opposed to adding him? they only have 11 members, and zpl and have their strategic road map play out, which arguably it hasn't had time to do given they just closed the book. nas not a significant amount of time to realize the transaction and drive the monumental change that they've been working towards over the last few years. >> finally, shares are only up about a third of a percent they were up a few percentage points on th

peltz, to the p&g board.ng to replace the director, not the c.e.o. at should go, and it's not advocating a breakup of the company. is saying is that it is a situation where we've got and a urns deteriorating market share. and as a result of which, hanges must be made. remember, we've got a similar split. there are parallels with what's nestle right now as well on the shores of lake geneva. bring it back around to brexit. we're getting more discussion at the moment in london. theresa may's spokesman being asked about what is happening. apparently they're going to be reminded of their collective responsibility. that's politics in london, ferocious at the moment. the negotiations continue in brussels. hey started earlier this morning. these two gentlemen shaking very firm handshake there. maybe less than the one we saw president french and the u.s. president. et's go to brussels. we've got four days of negotiations. what progress can we expect? you get the sense, there you go, that actually david davis to escape

it was wishful and i did not think when nelson peltz who by the way he welcomed and praised some peopleere saying he never praised what peltz was saying and have to imagine that nelson is very disappointed this morning and i imagine there will be some changes. >> what is fair here and when i see something like the power division be bad i say to myself let's just bring those people in and say is this the way that we should have a conglomerant because if you can't deliver i don't want you in our bench. ge is very odd they don't like to be criticized the great once they accept it. i remember when i sat down and i said dave i don't get this i don't get this do you know what he said i don't either that's my kind of guy. not like jim, how could you criticize us. >> let's do honeywell. beats by a couple of cents they raise 17 but estimated 709. >> i look at what he is doing and, you know, i just think that once again he is put, you know, he got dealt a really good hand. so let's give him that too and i think he wouldn't mind saying that which is that yes guilty or innocent a good hand but he's

> in corporate news, a fight for a board seat at proctor and gamble "the wall street journal" says peltzll try to jump start lackluster sales growth make them the largest to face a proxy fight. they rejected request to name him to the board it is one of the biggest stakeholders, holding $3.3 billion of stock. you can see p and g shares slightly to the down side. >>> turning to the wall street agenda, getting results from nine dow components and more than 60 companies. netflix out after close. later, goldman, sachs, j and j, ibm, american express, visa, general electric empire manufacturing survey out today. tomorrow, import prices, home builder survey >>> turning back to the markets, telecom is an underperformer this year. some are questioning if the sector should ever exist landon dowdy joins us with more. that's a big question. >> it is a big question. good morning the telecom sector is dying, made up of four components verizon, at&t, century link, level 3 communications, its very existence is being questioned. but could the companies be resurrected? senior analyst at standard and poor

. >> key things to watch >> i will watch procter & gamble they have a fight with nelson peltz who wantst on the 11-member board. they're fighting it. >> you have ivan menezes of diageo coming up as well earnings aoss crthe board today. "squawk box" coming up next. or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. >>> stocks again, new highs as wall street's fear index, the vix, sets an all-time low following the fed decision >>> and it is actually the busiest day of earnings season we'll bring you results from comcast, verizon, procter&gamble and twitter. >>> and a second healthcare vote failed in the senate this is an actual repeal the ones that they voted on many times. this time seven senators did not -- republican senators didn't go along with it they're turning to plan "c." the so-called skinny repeal. we'll get a live report from washington it's thursday ju

. >> proctor sb ger & gamble, dayo with that fight for a board seat undertake undertaken by nelson peltz0% of shares are held by retail that's tough if you're fighting a proxy fight and you want to reach them that could be hard you and i were talking before the show what is a top board at procter & gamble, why the company felt the need to hire four investment banks is beyond me, to advise them on one board seat fight that money might be better spent elsewhere. >> i love mcdirney. >> former ceo of boeing and 3m and ge top ravenked guy he has been around. >> easier to put him on, get him in the tent. but he is a total heavyweight. he's great this is not a board where you look at it and say, hey, come on they really need help. i do think that an outside guy, making some good sense can really help them. >> did you notice they moved up the timings of their earnings call citing efficiency improvements in accounting and our review processes. >> that's good. >> an early attempt to push back >> that's a good one i keep hoping that the dollar -- they did a great discourse on the dollar and missed

reporter: peltz himself had some success. looking for things a little different.o we really know exactly what he's looking for here? we know what the public statement is. sometimes is the actual goal not the public statement in these types of cases? >> as a general matter, it's certainly the case that, with any activist, you have to make sure that you're thinking about what the possible motivations are behind the public statements. it's not always right on the surface. reporter: i want to speak to activism more in general here. two charts. it's a bit interesting. i think what we're seeing here. maybe you can explain. if you look at the largest activist funds, the trend line actually is somewhat flat. if not a little bit down from what we've seen yesterday in terms of total campaign. but you if you look at activism in general, the trepped line is clearly up. why are we seeing this? why are the bigger funds maybe pulling back a little bit while funds in general, the just go time? >> sure. there's a couple of different things involved there. certainly some of the big

i agree with peltz when he says ge and proctor can accelerate cost cuts. let's say what's said about honey well, the call will be led by the new ceo who stepped in after a long time chief executive, a wall of famer for mad money retired. he was met with an immediate call to spin off the company's air row space business everything is on the table although we probably dent get to hear anything until the fall nevertheless, when i speak about the quarter being in the balance, honey well has divisions that play a huge role in construction, autos, climate controls and oil and gas i think they'll tell us a clinical fashion how all these key areas of the economy are doing and we'll take our cue from his thinking. here's the bottom line this is the defining week. i think every sector we need to care about will be covered and we'll be able to gain the rest of earningsing based on what we hear over the next four days so pay attention and stay focussed and be ready. bill in connecticut, bill? >> hey, jim. >> what's up, bill >> caller: i'm wondering why vmw is selling

"the wall street journal" reported nelson peltz will seek a seat on the board. company has seen private growth. the stock of about 3% this year. a report that amazon is working to create a messaging platform that would compete with facebook and what sapp, amazon. the apple be called any time. no word when it will officially be announced or why they are doing this. amazon stock up more than 33% so far this year. something else amazon is getting into. train to anything and everything. >> coming up, a bride's worst nightmare. retailer alfred angelo leaving many scrambling for just this. war for planet of the apes within the box office weekend. other films topped the chart strata had. -- straightahead. the ♪ i needed something more to help control my type 2 diabetes. my a1c wasn't were it needed to be. so i liked when my doctor told me that i may reach my blood sugar and a1c goals by activating what's within me with once-weekly trulicity. trulicity is not insulin. it helps activate my body to do what it's suppose to do, release its own insulin. i take it once a week

peltz very well and how much patience he has.i think that will be limited we'll see how long he's willing to wait before he sees this stock start to move to theupside based upon some of the changes, maybe, we would lake to see. >> good stuff, pete. this time it's for real. we'll see you later. have a good weekend. >> have a great weekend, man >> wehle s'll see you back heren >> we're talking tech and financials with mike wilson and that's coming up next. i think we should do that meeting tomorrow. well wait. what did you think about her? it's definitely a new idea, but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies lead with digital. if

. >> now you sound like peltz talking about p&g brands this is is an amazon problem because you can get all this stuff in your pantry do you know millennials don't have pantries? that's because they don't even have closets. >> this will encourage other companies considering, including unilever considering selling any of their non-core assets because of food quickly. >> this is antidisruptive. >> this number gets everybody's attention if you're even thinking about selling something. >> i don't know because i don't go to the supermarket. >> we'll countdown to the opening bell in just a moment. we'll talk about this new show from nbc news going on to snap and millennials are dominating the first half. >> it's all about mienalllnis. more squawk on the street continues in just a moment to keep our community safe. before you do any project big or small, pg&e will come out and mark your gas and electric lines so you don't hit them when you dig. call 811 before you dig, and make sure that you and your neighbors are safe. 811 is available to any business our or homeownerfe. to make sure that you

now, peltz is known as an activist investor. the stock to levels higher than where it is right now.y brands that aren't central to their business, but p & g still has big brands like tide detergent, pampers deepers and gillette razors. we're watching that. on the bigger picture front, have you china reporting second quarter gross domestic product that beat expectations. growth did come in at 6.9% over the same time last year. many investors care about this because it's all in the context of that once in every five years of the communist party that happens ron this fall. a lot of comments happening about jf morgan and its ceo jamie diment after comments he made back on friday with regard to what it's like being an american abroad. let's take a look at what he said with analysts on a call. >> this administration made break tloois in regular dahtory reform and taxes, and we have become one of the most bureaucratic, litigous societies on the plan et. it's almost embarrassing listening to the stupid [ bleep ] we have to deal with in this country. at one point we all have to get our act t