talk more about coke and whether it needs to do something big is ally debage, senior analyst at sanford bernsteinwelcome. thanks for being with us. >> thanks for having me. >> talk to me about the future of coke. you know, ty's piece just left off with, you know, big deals maybe need to be done. is that the case for coke or no? >> i think there's certain things they can do structurally. i think one of the big things they are doing and they have to do is get out of the distribution system, right? they have to get rid of their bottlers. that's something they're starting to do slowly. we would like them to do a little bit more. but you know, they are a branding company. they should stick to branding. that's one of the major things they should focus on. >> what can get the stock going? is it the kind of stock that an activist might target, like dupont or like a ge? >> look, there are many things the company can do, and an activist could push for. i always wish the companies would move faster than they do move. that's my nature. so, i think there is a possibility that an activist gets involved. a big

you have sanford bernstein saying that credit agricole has the largest exposure of any bank to glencore41 million. these guys don't track each other at all. guess what happened recently? they started tracking each other. glencore has really recovered. this is where you can feel the contagion. bank of america thinks it could be as much as $100 billion that the financial system is exposed to when it comes to glencore. i love talking about that kind of thing. joe: i love that chart. i'm glad we finally got to show it. this is a chart -- the question is, is the manufacturing global industry about to pick up? the yellow line is a chart of the s&p industrials relative to s&p relative to stocks overall. as we zoom into the last two years, if i can -- there you go. industrials had been fading hard relative to stocks overall. but in recent months, industrials have been rallying relative to stocks overall. are industrials indicating that maybe manufacturing and global economic activity are going to pick up? and the reason why it might be a sign is -- compare this to the ism. tracking fairly well.

a new report by sanford bernstein says the business could be worth $10 billion.till with us. what are your thoughts of this glencore ride? for us, on the energy said, i find it fascinating. the biggest issue glencore has on the balance sheet. when you're a bank, you are in london -- you are lending money to an investment-grade company. as equity value cap going down, that is the reason everyone was worried about glencore. are the banks going to keep on lending to a libor plus one. they need to have the equity moving up, or they have to get more equity in there. the reason they are doing that is because banks are demanding it,? -- right? banks will want you to have more equity value. cap isi think the market $20 billion, so they are well done. this is my question -- is this a problem of strategy, execution, or bad luck? they came in with a new strategy -- a trading company on top of a mining company, right? it was supposed to be a bold, new, better mousetrap. from your point of view, what went wrong? marc: oil went from $100 -- david: as a trading company, they sh

joining us is sanford bernstein analyst. what does this mean?portive activism. he's not taking a board seat. he's putting a stake in the ground, i'm an investor. i'm happy about what they do. i'd like them to do more. >> it's interesting. if you look at trian's history, they had a major position in ingersol larand. they provided what i call adult supervision on the board there in toerms of helping those guys make the right decisions, do the right things along the way. the next thing we find out is that he is going to make, owns two companies, we didn't know which ones. he talked about that as recently as in may. pent air, he took a stake. i don't need a board seat. at ge we have the announcements most recently and he and ge -- >> very friendly. everybody's loving each other. >> we've heard this before. jeff has already talked about his relationship with nelson over time. we knew it was positive. we knew that jeff had sought out input from nelson -- >> right. >> -- in terms of am i doing the right things for this company. i think it's a statement

the investment research house sanford c bernstein has created its own index, and it looks at things likeline passengers, home prices, and car sales, and under those, china's third quarter growth is just 4.1 %. but bernstein does admit there are a mountain of assumptions. his own words. that makes an accurate estimate all by impossible. let's do another one. in 2014 china grew 7.3%. bernstein says 6.7%. another model shows it shrunk 1.3%. a recession in the in a vast country with so many moving parts, even beijing is unlikely to know exactly how fast its smi is growing. virtually every economist will tell you it is growing and still at a pace that is the envy of most developed countries. >> so it goes to show that there are many, many different ways of looking at this. the one thing that economists have told me in the 20 years we've been looking at the china economy from hong kong is that the trend is your friend. if you take a look at the gdp numbers in a photograph, it will show clearly a line which is heading down. and that is what economists say yes, the economy is weakening. the big