today it's pepsico. and if you start with pepsico and look at it, you say, wow, this is a good quarter. p pmc-sierra, positive stuff about dupont. can we continue the round? i don't know. i think we're overdone. >> is this the chance to sell stuff you wish you could have sold at 1870? >> i think there's industrials that have gone up a great deal that went up in part because people said nelson peltz bought ge, we're fine. we have not heard negative news about china lately. china comes back october 8th, nelson peltz did not buy an etf for industrials. he didn't. >> what do you mean? >> ge is not a proxy for him taking a position in all the industrials that rallied. >> not at all. kind of the opposite. >> they made it clear, it's a mispriced security. we will see if that proves to be a correct statement over the next couple of years. i would expect them to own the stock for at least that long. i do wonder. september was just terrible. >> right. >> i got hedge funds, i haven't pursued some of them. closing d

pepsico just delivered spectacular numbers this morning. but kullman produced hideous results last night. the result? kullman is out. sure dupont is a chemical company and pepsico sells snacks and sodas but they have one big thing in common. the activist fund run by nelson peltz tried to effect things of both companies. he's the only one i can find where you can beat the averages by piggy backing off of his investments after he announces it and not before. but they responded in vastly different ways. rather than getting in a prolonged and distracting fight with peltz they showed him with the combination of snacks and beverages can be a winning one. he wanted to break up the company to have separate entities. in the meantime, it's allowed him to deliver results like this morning including double digit gains in gatorade by the way and fabulous pricing for snacks and improved quaker division and wildly expanding gross margins. a winner can keep any critic at bay and he's a winner. kullman, though, that whole battle was a needless waste of time

how about pepsico. beating wall street's estimates seven straight corners.hat includes the pepsico reported yesterday, 9 cent earnings off 1.26 basis. it kept posting strong numbers. the strong dollar cut into overseas products. the consumption of soda, diet and regular, is in secular decline. it doesn't matter. they still sport a 2.9% yield. the facts that they had a second day run, 1.45 yesterday shows this kicker is not a one-game wonder. how about another kicker. i like this guy justin tucker. he has only been in the nfl since 2012. he is one of the steadiyest kickers the past three seasons. tucker is perhaps the short--range kicker. never missed a field goal 20 to 29 yards. only one in 30 to 39 yards. what is the stock market equivalent? of course it's nike. the global footwear and sports apparel titan beat estimates for the last eight consecutive courses. better than expected sales in six of the eight despite facing what has to be one of the toughest macro environments ever. what did nike do? spectacular chinese numbers reported a couple weeks ago. air

story that pepsico they are telling?nd needs a story and the way she has crafted pepsico as an organization has to look at each of the brands she hasn't realized that some of them like mountain dew are going to be more on the indulgent side and other brands have more of a health and wellness story. i think she has nurtured those be notthat have that may so good for you perspective but have invested heavily in some of these new age brands or products like health and wellness. of innovation one and it goes to show how hard it is. done ond all of this the back of fighting with nelson tells as an activist investor. how did she fight that battle? activist by their nature feel like they know more about the business than the ceo and that is why they are best. i think that she had a strong vision of where she was taking the company. some compromises made. a lot of times, they get their way in terms of breaking up the company for value and did a good job of standing their ground. not, shehe one or still articulating her vision ri

pepsico fell 1% to 97.92. coca-cola off a fraction, it finished at 41.65. >>> fmc corporation saw shares fall after lowering its outlook and announcing layoffs. the chemical manufacturing company cited the devaluation of the brazilian real. shares tumbled to 36.35. sandisk saw shares pop right after the close on reports that that company is exploring a sale. according to bloomberg, can the computer memory firm is working with a banker on a possible deal and both micron and western digital expressed interest. shares rose initially after the close during the regular session, the stock off nearly 2% to 61.77. >>> fortress investment group plans to wind down dits flagship hedge fund returning capital to investors by the end of the year. the move comes after a challenging two-year stritch which resulted in losses and redemptions. michael know vo grats will leave at the end of the year. shares on that news moving higher by 7.5%. >> fortress is the latest example of hedge fund pain. according to data from hedge fund

pepsico with an troyed, smart phones and china. the pepsi t 1 is a budget price phone that will retail for $100. pepsico denied it will be getting into the phone manufacturing business. they are partnering up with an outside manufacturer from china. >> you have probably heard the phrase i only read playboy for the articles? that may soon be true. the men's magazine announced it is planning to drop fully nude female photographs from the pages. it will be relee signed next march. playboy chief executive says full nudity is pass say at this juncture. >>> how would you like your very own soft driving hybrid sportscar? . it will be unveiled at the electronic show in january as a concept car. it won't be manufactured but you may find yourself to traditional cars the drone that will deliver flowers for the driver ahead of his or her arrival. back to you. >>> nice. thank you, cheryl. >> 25 minutes after the top of the hour. a strong message, the sky high sign that veterans want the va to see. >> thousands march in columbus day parade but w

he argued pepsico should acquire mondelez. that didn't matter.ast year he was named to mondelez's board of directors. it is worth noting that the stock has given you a staggering 51% return. that's dramatically outperforming the s&p 500, just 30% during the same period. this is exactly the kind of thing i'm talking about. if you bought it after he announced he made so much money, and he got an enormous amount of influence with the company's management. before he joined the board he had been a critic of the company's subpar margins. since he got involved, though, mondelez has been aggressive about cutting costs, including a major restructuring program announced last year that should produce a billion dollars in savings by 2018. fast forward to next year and mondelez is toward the low but better than the likes of companies i really like, general mills and campbell's soup. you've heard me praise those. on top of that, the company has rationalized the supply chain and they're cutting overhead to the bone. they're modernizing so they'll be able to pro

pepsico. ooh, just reported a terrific quarter. kraft is run by smart guys.uffett involved, eli lilly, cholesterol drug knocked out of the box. what the heck. alzheimer's drug in the pipeline and a diabetes drug with less heart problems than any other treatment and decline, smart guy at the helm, a slowdown. these consumer staple companies have sky high dividends way much better yield than the bond market competition. voila. that's how you get the rally in the staples we saw today. can it really be that simple? notice i didn't say stupid. that's simple. absolutely. why doesn't everyone know think playbook? because who else would bother to pull back the curtain on the way big money is managed other than me? here's the bottom line. these are trade secrets. 2340 hedge fund or mutual fund wants the public to another their strategy. it will play into their profits. now you know and you can play the slowdown game. dino in michigan. how are you? >> caller: couldn't be butteett. how about you? >> pretty good. >> caller: you are a good instructor, investments from las

pepsico, i bring it up only because nelson peltz -- >> that's a peltz connection. >> pepsico year-to-date, up about a percent here. another one, older world company if you want to think about it this way besides pepsico is walt disney shares. his record highs not too long ago and media heltdomeltdown to down but still up 10%. and in terms of the larger cap stocks that have perhaps some promise, merck, drug giant here. down 10%. you can see so far. so let's take a look at what the analysts say what the potential upside could be. at current levels affording to fact set, pepsico could rally boo by 9%. >> this is an average call. >> correct. disney up by 15% and merck by 25%. so even within those realms of large mega, mega cap stocks there could still be value if, of course, you believe what the analysts say about what the potential for the stocks could be. >> dominick, thank you very much. mandy? >> so with the s&p 500 down more than 4% since july, is it time to add some big caps to your portfolio? let's bring in two money managers who are finding value there. ted morganlander and mark travi

you can't say why don't people want to do coca-cola at home and do pepsico at home? homemade, half the calories, naturally sweetened, no high fructose corn syrup. people with -- who want healthier pepsi can do it with soda stream. that is different than what coke did. -- rep located the same formula that you get in a can. who would do that? betty: some people might. daniel: let them come on. betty: what is the appeal of doing a different flavor or type of pepsi-cola? daniel: half the calories, and you can do it the way you want. more bubbles, less bubbles, more sweet, less sweet. it is naturally sweetened. pepsi has courageously taken the step to create a new extension ,o pepsi called pepsi homemade sierra mist homemade. they are really trying. replicating, throwing a logo on it, and thinking people will buy a. that is different. betty: looking at the second quarter, sales went down to $107 million in the second quarter. your sales are decline. what is going on there and how do you turn that around? daniel: our sales are not the kind. in the u.s., they are declining,

. >> staps landmark preservation committee held a meeting to decide whether the pepsico la sign should be a historic landmark. >>> traffic alert for those of you driving on the bay hill bridge. the bridge is scheduled to shut down again this weekend. workers are raising the roadway to allow larger ships to pass under it. it's expected to close at 9:00 friday night and open for rush hour on monday. facebook is testing out a new feature. recently facebook announced it was working on a dislike button. not everyone liked the idea so the website is testing a feature called reactions. it's an extension of the like button with sex reaction emojis. they are being tested in ireland and spain. >> what would the weather emoji look like. >> happy. thumbs up too. actually the first part of the day is not that bad. temperatures will be in the 70s again tomorrow. mid-to-upper 70s before the rain gets here. you know, we'll just have to keep a look out in the afternoon meantime not a bad day today either. still in the low 70s in the city. some areas were only in the 60s and where we are right now in mi

look for data today on the trade deficit and earnings from pepsico. the dow rising to 16776. the nasdaq up 73 to 4781. fedex is raising its fuel surcharge for the second time this year. the move effective november 2nd was quietly announced and comes as retailers and shippers are gearing up for the holiday shopping season. while gas and debt fuel prices have dropped in the past year, fedex says the increase is in response to heavier packages and a rise in residential deliveries which use more fuel. >>> microsoft is holding an event in new york city today to unveil new products. the company is expected to show off new smartphones that run windows 10. also expected to unveil a new surface pro tablet with a bigger screen. a wearable fitness device and more information on its virtual reality headset. developers will get their hands on next year. just in time for the holidays. guys, back over to you. >> we should call yours the holiday report. every day you're giving us great ideas. >> thanks, landon. >>> nurses planning to walk off the job this morning in contra costa county. the

. >>> pepsico reports better than expected results and that is where we begin tonight's market focus. the snacks and beverage giants quarterly boeflted by stronger sales here in north america. they explained the refreshing performance. >> the pepsi cole portfolio is working. previously europe and asia middle east africa were going more quickly as north america was a bit slower. now that north america has picked up quite a bit, you see all of the businesses and north america beverages frito-lay and even quaker are performing really well into shares rose more than 1% to 97.01. >> the bud/miller deal may be unraveling. anheuser-busch offered $100 billion to buy sab miller. according to bloomberg, sab rejected the bid today because it is seeking a higher offer. frothyer you might say. and highser shares fell 1% to 109.60 and sab miller trades over seas. >>> sky works solutions agreeing to buy pmc-sierra in a $2 billion deal. a chip supplier for apple and pmc is a software solution developer. sky works fell 1.5% to 80.71. pmc up 33% to $10.24. >>> fedex has joined u.p.s. in hiking its fuel

pepsico and yum brands will report earnings.hat is what to watch on tuesday. >>> planning a trip to disney? the cost could soon depend on when you go. the company considering surge pricing. you pay more an peak days like saturdays and holidays, less on other times. julia boorstin explains why. >> reporter: it could cost less to go to disneyland or disney world in the middle of the week or in the winter and more on the busiest days of the year. for the first time in the 60 years since disneyland launched, the magic kingdom is considering switching to demand-based pricing. >> the parks are doing so well and operating at such high capacity at this point that they're trying to improve the customer experience by probably redirecting some of the traffic, you know, more evenly throughout the year as opposed to having it concentrated in absolute peak season. this is the kind of thing they wouldn't be doing if things were going badly. this is the kind of thing i think you do when things are going really well. >> disney's been raising pri

replaced pepsi coke as the -- pepsico as the prime sponsor of india's cricket league.tails on how much is involved. japan's biggest ipos since 1987 will see pricing for its banking and insurance divisions of japan post today and is looking at shares to be offered for the top end of the range. there is huge demand from investors. it is a three-pronged ipo and it could raise $12 billion. angie: south korea has enjoyed its latest take away from america and expanded version of black friday has produced a jump in sales and big plans for a repeat next year. how did it go? morning.od i am standing in one of those key shopping districts, more than 34,000 stores/prices by as much as 80% this month trying to -- andshoppers to spend it worked. the finance ministry says sales of the largest 22 retailers rose during the black friday period. those department 24%es that's all sales rise -- that saw sales rise 24%. we are also talking about online malls. as well as convenience store sales rising 36%. the ministry expects this uptick 0.1% tol sales will add economic growth this year. t

off,e: they are shaking one of the biggest shakeups since pepsico 20 years ago.here was a food scandal in july triggering activist calls for a spin off, especially from carl meister,protege, keith who said the asian market could be better served with a focused business. the company announced yesterday that the ceo of the china business back in august will now lead the new china business. the company is committed to returning substantial capital. er said that the opportunities for risk are different than what you see in the u.s. because most of the stores in china are company- based, not franchise, which can be good in good times but can pose potential risk when times are tough. taking a look at the market is still number one in china but are losing a piece of the pie. 40% in 2011. now about 31% last year. mcdonald's saw shares fall of it. still number two, but we are seeing local names like ting hsin increasing competition. yum! still struggling to cater to a local tastes. angie: how will restructuring help? yvonne: it will speed up the recovery. they say it will

pepsico has better growth, but pepsico is because it's snacks.he snack business grows. >> and they say this is a quarter that was in line on strategy with their expectations. this is a transition year for them. a lot too look forward to in the next year which will put pressure on them to bring setter sales results. but perhaps volume has stabilized. >> i think that's a very fair depiction of what it was, a volume stabilization. if you want to compare it head to head against pepsico, it's apples versus orange unless you want to compare prop can that versus simple orange which he would like. do they buy monster? >> i don't know if they're any hurry to buy monster plus it's getting more expensive by the day with all the positive -- >> weaker quarter but i think the distribution system based on germany which is on sales force.com not s.a.p., but is strong. i like monster very much for a host of reasons. >> better than keurig which hasn't been as hot for pu. >> we'll see new 40 minutes, thank you. we'll get cramer's mad dash and count down to the open

pepsico could do it, bolster the frito-lay business. although that business is so strong. coca-cola could run that through their distribution. 52-week hyperenal, we know that mono lease would like to sell the company if that's off the table it makes sense to go into acquisition mode and snyder is target once this is put together. i was a big fan of diamond food where we found out it was being bought out by snyder's lance and after the deal closes the combined company will be a power house. it's absolutely worth owning. now where the heck are my nip cheese. larry in massachusetts. larry? >> caller: jim congrats on your precise focused questions on your debate. and uber congrats to your wife on her birthday this weekend. >> geez, how did you get all that. i forgot was her birthday. i got scrambling to do. year. do we buy more on bases when we are over 20% like i am with white where. >> did you see guy with couple calls it got the stocks going. i like the chart. we feel it is holding at 40 level. i believe november 5th might be put under natural organic. we got to wait two mo

this company was set up 18 split from pepsico. a lot of analysts say this does not fit for the 20th century. we need to do something to update the structure for the 21st century. i splitting off china is one thing talked about. the other is splitting off taco bell, one of the strongest brands in the u.s. an attempt to say here are these companies on one side, here is china on the other. betty: those who want to play china are, they would go directly into that part of the company. what about directly investing in taco bell and kfc? will that be just as attractive or more? craig: it is different. analysts also think china has a bunch of upside. yum continues to be the biggest restaurant company in china. kfc the biggest restaurant chain. there is more stability on the other side. they have done well with taco bell in the u.s., but there is still work to do with kfc and pizza hut. and c out of popeyes chick-fil-a. there is work to do. they have done well with taco bell. betty: but it is not enough. craig: they need the other two goin

pepsico, doesn't have that pressure. coca-cola. coca-cola has been doing quite well. dr.has been good. these are companies that have come on strong, whereas apparel and retail has been horrendous in the last two weeks. >> and health care, of course. which you mentioned at the top of the broadcast, rolling mark was the term you used. looking at it today, the hospital stocks last week which had such a difficult time when we heard from hca, community health. hca, the volumes weren't bad. the mixed commercial versus noncommercial was worse than expected. they did reduce guidance. cyh was the big ebita. >> why were the analysts so surprised? how did they not see this? >> no let up there. >> none. none of these stocks are showing traction yet. >> tenet -- >> we spoke broadly about health care. then you go to drug stocks which had been similarly hit, some of them. >> a lot of this was affordable care, looked to be great thing for the hospitals. some payments -- some bad dead again. i thought the hospitals were insulated. remember, this is going to shock people. what's bad for th

if it were about nutrition, how about pepsico keeps churning higher because of the strength of junk food? invite everyone over for the cowboys-giants game. i was happy someone lost. you think i had carrots and celery? i had some of those. look, i own a mexican restaurant, it's a pretty good darn salsa, people have been telling me for years the clock is ticking on frito lay. all i know, when i go shopping for the guy, i press them to bring oem anything else. here's another story people simply cannot put their arms around. they can't believe, the corn popularity of microsoft devices. i'm getting laughed at for suggesting microsoft might have right now, nobody wants it. nobody hates the surface. wait a second, last week it's been so popular. it is popular. why do i see people at the surface? it's not just the nfl, which is all surface all the time. listen to the ceo, by the way, all those ads on the football games, people and monsters blow each up endlessly, people refuse to link xbox to microsoft. even though they might make the darn. i know i've talked my head off. they have to break up s

pepsico reports earnings before the opening bell while yum brands, the parent of pizza hut, taco bell and kfc is out after the close. >> let's take a look at the asia pacific section. we're looking for reaction to the agreement of the transpacific partnership which is the largest global trade deal we've seen. we saw the nikkei bounce some 1% and this might be on the back of expectations of more stimulus coming from the boj, hely as we have a hold off on the fed tightening and that could push levels to 124 and 125. also this is a shot in the arm for abenomics as well. one of the pill lars of abenomics is about trade and managing to get ratified by all 12 member governments with the agreement seen as a major victory for u.s. president barrack obama and japanese prime minister shinzo abe and both expressing optimism that maybe china who is not included in the tpp could one day join the pact as well. >> this fundamentally strengthens rule of law in the economic area. it will deepen dependency with countries. if china participates in such a system in the future it will contribute greatly t

pepsico says while overall revenue dropped. sales at das station and convenience stores jumped 7 percent and some consumers are using the extra cash for snackance drinks. gas prices are down 30 finish a year ago. then most important meal of the day now available any time of the dy at mcdone ale. mcdone ails launching the much awaited all day break fast machine u on tuesday so dreams do come ru. >> that is business, aim neil cavuto. >> le well, air travel could get rather awkward if one german aircraft manufacturer gets its way. airbus has reportedly filed for paint here in the u.s. for new seat deg sign. it sacks passenger on top of each other. the seats with woo recline and have stairs or ladders leaving them up. the companysies the seating design would work best in business class cabin because they don't have overstorage come apartments. >> the logical ex tension how everything is going. >> all right getting a second shot. >> the return comes can as twitter is trying something new. here is jessica. reporter: twitter is under

mayor muriel bowser has now changed her tune about the proposed exelon pepsico merger. the deal calls for exelon to invest $78 million in the city up from a proposed $14 million. mayor bowser and some consumer advocates say it is a good deal for the city, but council woman mary cheh disagrees. they says it could mean higher rates for consumers. >>> next time you call for an ambulance in the district, could be a private company showing up at your door. the d.c. council unanimously passed emergency legislation authorizing the hiring after private company to respond to 911 calls. d.c. fire and ems would continue to respond to all emergencies. private blarnses would be used only -- ambulances would be used only to transport people who want to go to a hospital but don't require serious care. >>> an e-mail distributed to u.s. capitol police rank and file warns of potential violence during this weekend's rally commemorating the 20th anniversary of the million man march. >> this e-mail was critical of rally organizer louis farrakan. it's been criticized by the capital police un

first pepsico reports. this is a miraculous time for this company. even as its stock has done nothing. maybe that can change when we see how well the company doing in the amazingly low cost commodity environment. when you make all the right moves as they have under the ceo, it's been the best organic grower in the group. eventually something good will happen. maybe it will be tuesday. then we hear from yum! brands. here's another company that's doing well. but if stock has suffered from activist fatigue where the owners, bedraggled shareholders are worried about their franchises and keep selling for not anything to do with the company. just has to do with their own internal money management problems. yum! stock will be a bargain, why? as much as we denigrate china, the chinese consumer is still spending. we have heard from apple, nike, so isn't it time for kfc to get the mojo back? either way the stock is cheap. i would buy it if it gets hammered today, i would buy it for the earnings on tuesday. you know what might be the best thing that happens tue

federal reserve and job report in rear-view mirror, pepsico topped expectations.young grands, alcoa among others. joining us with what to expect senior director peterson. good morning, rich? >> good morning, marÍa. we have been having an erosion. the last time we had double-digit growth was in second quarter of 2014 when guying lower. 0.1%. >> no growth. >> expectations were negative 4%. expectations for the third quarter are negative 4.9%. way down as we are all well aware. 66% year over year. it's largely energy taken down. >> 3.1%. exrepublicans or democrats control congress. >> maria: no kidding, we can talk about that. that's what i'm always scratching my head about. almost 5% for the third quarter. you guys are talking about bond stocks. why would i buy in a situation where there's no growth? >> it's obvious as we point it out, but as we look forward, we think you are going to see third-quarter grow at 2% but improving in the fourth quarter and growing at a better rate next year. global growth will be at 3 and a half%. next year earnings growth 5-#%. as we l

look for trade deficit and earnings from pepsico. the dow rising to 1676 and the nasdaq up 3. scott, back over to you. >> landon, microsoft will announce all kind of new hardware. showing off some phones a couple years ago. we expect microsoft surface the surface 4 and new windows phones. window phones never really count on. they count for 3% of american sales. the funny thing about the surface. microsoft's copy of the ipad. the ipad these days looking a whole lot more like the surface. know, keyboard and pencil and all that. >> interesting. >> i feel like you see the surface everywhere now. even the nfl is using them on the sidelines. >> they pay for that and they go out of their way to make sure you see it. >> it's working. >> all right. expensive advertising, no doubt. scott mcgrew, thank you very much. >>> the forecast today and, you know what -- >> it is nice. at least for now especially if you like the cooler weather and thenning to the end of the week, it is going to feel more like summer outside as you head to the pumpkin patch. let's get a live look outside right now.

pepsico has been replaced as the title sponsor of the indian premier league cricket tournament.ve been revealed about how much they are paying. pepsi had committed about $62 million as the title sponsor for the tournament. those were the top corporate headlines at this hour. sony has been switching its focus from smart phones and television to gaming and streaming as they target the highest profit in nearly 20 years. the r&d unit may have innovative ways to boost the bottom line. -- number tech reporter was at the sony annual open house. i understand that you had an out of body experience thanks to technologies? what was that all about? was an interesting experience. i felt like my soul had somehow escaped from my body, watching myself from over the top. it was a very interesting experience. i could see myself from 300 and 60 degrees of different angles. it was very interesting to see how i move around the room. all of this was enabled by 3-d glasses. and motion sensors surrounding it. it was definitely one of the eyeball catching experiences at the open house. it is located on

were thinking when they left the rate unchanged, a decision they now say was vindicated by friday pepsicoonth into an yum! brands will be out with her latest numbers. in new york su keenan. indeed. busy week for more on the week ahead here in asia, let's bring in daniel martin. he is the economist at capital economics. central-bankmuch action it's the name of the game this week. we are waiting for the minutes from the fact is we heard from keenan. but tomorrow is the rba. do you think we will see comments from stevens as to how he thinks about china as it relates to possible future cuts? >> we will definitely be looking for that. i don't think we'll get a cut on the basis of it. i don't think stevens is going to be too radical -- to rattle. he said last week he is surprised the u.s. talked about china when it decided not to hike rates. i think he will kobe be looking at the term relevance as well. seeing that a lot of it is just in the stock market. economy,k at the real some of the activity actually hasn't been that bad. it tries to measure the base of the economy a lot of unusual measur

makerese mobile phone replacing pepsico as the premier sponsor of the cricket league.e no details over how much cash is involved in all of this. executives were expected to pay $62 million as title sponsor's from 4013 to 2017. the children -- a child's horror movie hit the top of the box office over the weekend. "goosebumps," taking in $23.5 million in the u.s. and canada. steven spielberg's first movie in years, "bridge of spies." netflix three at circle feature, "pieced of nolenation." bookebumps is based on the of the same name, having sold 400 million copies worldwide. star wars fans, prepare for the next chance to visit a galaxy far, far away. disney confirming tickets to go on sale around the world on tuesday. sales start after the studio released a new trailer for "the force awakens" on monday night. disney has also released the official poster for the film. the film does that even open until december. all right, coming up next, all the presidents men, britain rolling out the red carpet as xi jinping comes to town. we have got hong kong and shy and -- shanghai g

let's take a stroll down memory lane and talk about pepsico's original spin off of its restaurant chaine in 1987. what was the motivation? >> they are two totally different businesses. restaurants are more cyclical and prone to economic swings than making soda and chips which is pretty inelastic. >> it also speaks of their business model. young with aggressive, expanding overseas, especially in china. pepsi took a different approach. yum was on a first restaurant brands to really recognize the opportunity overseas, especially in china. pepsi does not have the infrastructure, the bottling facilities that it's larger counterpart, coca-cola has. its playing catch up there, trying to expand overseas. facing troubles in the u.s. here with people drinking less soda. >> that has been a big issue for pepsi and coca-cola. let's stick with yum. the company's reliance on china has been a hindrance of late. an investigation into its local suppliers hurting sales, hurting profitability. is the worst over? in terms of forecast, what you see? >> that's what we will find out tomorrow when the company r

it was the vestiges of pepsico wanting to get out of the restaurant business.here is no reason that this company is set up the way it was set up. and it's more successful in the u.s. i think it was an attempt by them to clean that up into marriage with these two companies that both will have some appeal to investors in different ways. y, do we know what else keith meister is interested in? remy: not yet. he first said that there is clear and an obvious way to get more value out of shareholders. so this has been on his mind for some time. scarlet: yum was one of the early pioneers with fast food restaurants in china. maybe that fatigue is playing a role. alix: thank you very much. ahead, shortl coverings leading october rally? and jpmorgan is saying think again. alix: blue my mind. scarlet: great note coming up. ♪ scarlet: welcome back to the bloomberg market day. we are in midtown manhattan, but that is a beautiful shot of san francisco. alix: is that the sunset coming up -- the sun coming up? scarlet: it is pretty picturesque. alix: there is a lot of skepticis

not buying pepsi, pepsico do in fabulous. >> the core product is -- is having significant declines yearver year. >> tom brady had some interesting comments about soda, calling it poison for children. >> he's going live forever, if you haven't heard. >> tom brady? >> live and play forever. >> is that true? >> it is. >> maybe i should pick him up. >> when he passes for 5,500 yards. >> fantasy is more important than reality for some people. >> it does seem to be that way. when i find my son rooting against the jets or giants, not really against but in a weird way, i find that disturbing. >> post getting married, i switched and said reality is more important than fantasy. that wedding thing changed my view. suddenly reality played a big role in my life. >>> we'll get stop trading with jim in a moment. "squawk on the street" will be right back. ♪ ♪ (charge music) you wouldn't hire an organist without hearing them first. charge! so why would you invest without checking brokercheck? check your broker with brokercheck. hello, ken jennings. i haven't seen you since that tv quiz show. hello, wats