a short call on valeant. what i find interesting is he never tells you what he does with his position. he puts a trade on and says it's a short and then he covers and then he buys some calls and then he goes on tv and it's a long which he did maybe a month or two ago and then i guess yesterday it's short again. i feel like you guys are doing a very good job helping him make money. i'm not sure it's good for investors. if his reason for going slorthos that the stock was sold to pay taxes those are not good reasons. the underlying franchises here are strong and there's been business disruption as a result of recent events but i think we have a strong ceo who can fix those problems and the company generates cash every day and that cash will be used to delever the business. the multiple at which the stock trades at doesn't change. just the deleveraging of the company you're going to make a lot of money at the current share price. it's not without risk but we think joe's doing a very good job and he'll have more t

we're talking about valeant right here. when it comes to valeant, was i correct on valeant? answer is yes, that's it. did i anything it was a trade back when the stock was 27 or 28, i thought possibly. i made it very clear. i bought some stock and i owned some out-of-the-money puts. when i saw sequoia get out of their position and saw the sales by paerson and the recent event of the company, i said, oh, my god, this thing is really going to zero and it seems everyone has an inkling it's going to zero except bill ackman. >> so what is your specific position right now, andrew, in terms of how you're shorting the stock and why is it going to zero? is there no value whatsoever in some of the assets? value, for instance, in the determine logical value? >> of course there's value. you're talking over $30 billion in debt. >> right. >> is there value to the equity? considering they overpay for most every acquisition they made, considering they won't be able to gain the system the way they have done it in the past. will there be any increased value to the debt, not in the long term,

we also moved on and talked about valeant. our scoop yesterday about that massive stock sale from the former ceo mike pearson generating a lot of headlines. five million shares, nearly $100 million worth of proceeds. bill ackman today calling that sad. the fact that mr. pearson was forced to sell those shares. he did say that he anticipates valeant selling non-core assets, some at least by the end of the year to pay down some of that big debt load, more than $30 billion. here's what bill ackman had to say about valeant. remember, he is on the board. >> the stock still suffers a lot from uncertainty. on. there's been a pretty big overhang. big shareholders have sold out. i think there's still a lot to be clarified about the story. so i think joe will be ready for that conference call. >> the headline on both fronts, standing firm on herbalife. thinks that it will work out in his favor. and on valeant, standing firm that he thinks joe- s joe papa right guy. they'll be able to sell some of these noncore assets. >> he may be stand

ackerman: people have r&dharacterized valeant's programs historically. it has one of the most productive r&d programs of any pharmaceutical company in the country. evidence of that is this week, where the company has two drugs up for approval, one of which was yesterday, and a third drug that was in front of fda advisory panel. obviously, ackman is taking some consolation in the fact that the r&d thought they were getting under speed -- getting some speed. this is an r&d program that has been starving for years. we have two or three drugs that have been approved, this is great, but valeant has somewhere between 20% and 25% of its even top that is up against generic elation. these drugs will have to run extremely fast to make of that offset. the pressure is no longer can this company operate as it did in the past, relying on acquisitions, because its balance sheet is already stretched. we have $200 million of cushion, essentially. $200 million to $300 million that cushions them against the government. they need to be careful going forward. increasing leve

at one time the largest shareholder in valeant, out completely.at is what the confluence of stories, if you will, look like in a stock price at 12:59:45. it's a loss of nearly 3%. shoutout to josh brown. just ranked as one of the 50,000 growing financial firms in the country. >> yeah. >> congrats to you. >> thank you. >> "power lunch" starts now. >>> all right. i've been waiting very patiently all morning. >> extremely. >> right here. i didn't just get here. i'm always ready to go. stick around, fans, scott, thank you very much. we've got a jam packed two hours of power coming your way. welcome everybody. i'm tyler mathisen, melissa is here, michelle is here, brian is here. when is the last time two days in a row we were all here? >> it's been a long time. >> leap year probably. >> i don't know when it was. but let's look at the stocks, shall we? the dow industrials adding to yesterday's record up five points now at 18,352 and change. i

there's valeant today about 2.3%. we had broken the news of that large stock sale by the former ceo. they are out with a statement that says, this is mr. pearson, i continue to believe in valeant. we will have much more at noon. >> for now "squawk on the street" is coming up. ♪ >>> biggest tech ipo of the year about to take place today. good morning, welcome to "squawk on the street," i'm carl kint in a with jim cramer and david faber. a fifth day of kwans is taking shape, futures much higher, looking past the bank of england aez surprise decision not to cut rates. german dax back above 10 k. bpi up .5, the highest since may of last year. our roadmap begins with the market set to open at those new highs, the bank of england keeping things unchanged. >> strong showing for jpmorgan, second quarter revenue beating estimates. >> and awaiting the biggest po of the year. first lads for line. stock set to open at record highs. the bank of england leaves rates unchanged but says stimulus is likely to come next month. black ro

and valeant has a very diversitidiversity portfolio of asset. are $10 billion worth of stuff most shareholders don't even know exist, that i would certainly define as non-core. and i think joe will provide more clarity, but, you know, the company kind of, i think, very comfortably sells billions of dollars of assets, without affecting any of the core franchises of the company. >> that's probably what a lot of the case comes down to at this point. how much can they sell, how much do they have to sell? it might have been andrew, someone who was reiterating his case. he thinks the stock is going to zero. it's trading around $23 today. >> $23. about a $7.5 billion market cap right now. $30 billion in debt. obviously, it's kind of trading as if the market is not so sure, the business model is there. by the way, the formal consensus earnings estimates for this year are $6.50 per share. it's trading under 12 times earnings, if you believed even remotely a fraction of the earnings power, you would buy this stock. >> and with joe papa coming in, even the

there's valeant today about 2.3%.oken the news of that large stock sale by the former ceo. they are out with a statement that says, this is mr. pearson, i continue to believe in valeant. we will have much more at noon. >> for now "squawk on the street" is coming up. ♪ >>> biggest tech ipo of the year about to take place today. good morning, welcome to "squawk on the street," i'm carl kint in a with jim cramer and david faber. a fifth day of kwans is taking shape, futures much higher, looking past the bank of england aez surprise decision not to cut rates. german dax back above 10 k. bpi up .5, the highest since may of last year. our roadmap begins with the market set to open at those new

can his forecast the as explosive as his on valeant? we

i'm thinking of things like valeant and touring, but also the cost of pepsi treatments and therapy -- treatments and therapy. what in your mind is the best way to control costs so these medicines and treatments are not just available for the rich and well insured? bill: i think the current system, despite some extreme cases that i think have properly been labeled as inappropriate, i think the current system is better than most other systems one can imagine. curing hepatitis c, this is a phenomenal ring. now you have multiple drug companies competing in terms of a quality and the price of that offering. the drug companies are turning out miracles, and we need their r&d budgets to stay strong. they need to see the opportunity. for things like alzheimer's, they can reduce medical costs so dramatically and improve the human condition. and the pharmaceutical companies have been great partners of our foundation. when we need help in doing science, they are unique in what they can do. also, they are very good about tiered pricing. if you take hep c as an example, and all the responsible comp

david: then a win for valeant, with the drugmaker winning approval for two drugs and bill ackman voicing, spotify has grown from swedish tech startup to giant, but could a possible ipo cause wall street to turn down the volume? one hour from the close of trading. let's head to the markets desk julie hyman has the latest. julie: we're on set for

i am of course thinking of things like valeant and turing, but also the price of hep c treatments andblood disease drugs. what, in your mind, is the best way to control costs, so these medicines and treatments are not just available for the rich and well insured? bill: i think the current system, despite some extreme cases that i think have properly been labeled as "inappropriate," i think the current system is better than most other systems one can imagine. i mean, curing hepatitis c, this is a phenomenal thing. now, you have multiple drug companies competing in terms of the quality and the price of that offering. the drug companies are turning out miracles, and we need their r&d budgets to stay strong. they need to see the opportunity. for things like alzheimer's, they can reduce medical costs so dramatically and improve the human condition. and the pharmaceutical companies have been great partners of our foundation. when we need help in doing science, they are unique in what they can do. also, they are very good about tiered pricing. if you take hep c as an example, i think that --

can his forecast the as explosive as his on valeant? we are one hour from the close of trading, let's go to the close of trading where julie hyman has more. people are awaiting central-bank action, or inaction, as the case may be this week. not much movement in stocks. on an intraday basis, we had a bigger pullback earlier this morning but then stocks have been bumping along in this range. if you feel that, look under the hood, you will see there is a lot of individual stock movement. it just has not been translating into much direction on the macro level. but of course it is earnings season. day in because earnings terms of total number of companies reporting. here are some of the winners we have seen. caterpillar turned around today, it had been lower, but the company is now saying the second quarter may have been the worst for mining operations. so they may have bottomed come in other words. texas instruments coming out with a positive forecast for the current quarter saying demand for the automotive sector and pictures around the ho

i am thinking of things like valeant and to rain. treatments and immunotherapies, blood disease, drugs. what in your mind is the best way to control costs so these medicines and treatments are not just available for the rich and the insured? system think the current , despite extreme cases that i think have popular -- probably been labeled as inappropriate, i isnk the current system better than one other that others can imagine. this is not a phenomenal thing. you have multiple drug companies competing in terms of equality and the price they are offering. companies are turning up your tools -- turning out miracles. they need to see the opportunity. things like alzheimer's, they can reduce medical costs so dramatically and improve the human condition, and the pharmaceutical companies have been a great partner to our foundation. science, they are unique in what they can do. also, they are good about tiered pricing. you take about hep c as an example, i think that, and all the responsible companies do the poor countries, hatteras sport

valeant getting the okay from fda. that is up 4%. and discover financial results helped the firm's numbers all be it the share is off 3%. >> other names to watch today, united continental reporting a decline. the company also adding a member to the board of directors and authorizing the repurchase of additional $2 billion of stocks. >>> unny lever. >> chesapeake energy are being sued. that i have say the company inspired to rig for drilling rights. >> earnings once again front and center today. before the bell we'll get word from abbott labs, hall burton, morgan stanley. and american express, ebay, intell, qualcomm and mattel. don't miss an exclusive interview with james gorman. that's on squawk on the street. >> one not to miss. as we mentioned intell is reporting it's second quarter reports. >> reporter: the sfreet is looking for intell to earn, but beyond the numbers. here are three things to watch. first, pc demand. most analyst expect outlook for the market will improve following better than expected shipments of notebooks in ju

. >> meanwhile valeant is down a gazillion percent.meantime i have to get pokemon goo off my hand. spending millions of bucks to prevent hackers from taking over your car while driving it. hackers did it last year. what chrysler fiat is doing to stop it. we have latest numbers from these must-win states. but looking to spoil both donald trump and hillary clinton's hopes for the white house is the libertarian ticket. former governors gary johnson and william weld, both joining me right here tomorrow in a "countdown" exclusive, right here. please do not miss this, william weld and gary johnson. coming back right now. dow up 26. i have asthma... ...one of many pieces in my life. so when my asthma symptoms kept coming back on my long-term control medicine. i talked to my doctor and found a missing piece in my asthma treatment with breo. once-daily breo prevents asthma symptoms. breo is for adults with asthma not well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. breo won't replace a rescue inhaler for s

the se quoia fund has completely exit stake in value leent valeant.urberry fell 3% in weakness in all of its regions, but results were better than forecast. british fashion house is offering a mixed outlook for the year. valero. have aler rojas bought at stake in pineline. handles 110 thousand barrels per day. abbott labs and saint jude has asked for more information about the merger. extend the waiting period before the deal can close by 30 days. tef have a pharmaceuticals raises outlook. teva. looks like investors like that news. over to you, wilfred. >> sara, thanks very much. we're still here in downing street. i'm joined now by sky news's editor at large, adam bolten. great to have you with us. >> great to be here. >> how crazy has the last couple of weeks of british politics been compared to what you've seen in your career. >> it is the shocking two weeks. in terms of self inflicted wound if you like. this is quite dramatic. what happened was the people voted to leave the european union. that was basically reversing 50 years of political history

long on valeant pharmaceutical company which has gotten slammed recently.n herbalife to the out of ftc probe. the stock is it approaching $70. lie on cooperman, a great guy. hasn't had a great year. david einhorn predicted the mortgage crisis and financial crisis in 2008, not doing very good. ray dalio, in the papers for a lot of reasons, including a lot of commentary on hyper secretive nature of bridgewater associates he runs, massive hedge fund, biggest, over 150 billion, he also has not done very well. you know who has done pretty well recently because he is not running outside money, steve cohen of formerly of sac capital, with point 72. may be match aring beating it. we have to check numbers members. if you want to invest with steve cohen he you can not he is under deal with the government on alleged insider trading with his firm. not him in particular. he can't raise outside money. that is essentially where we are right now. why pay the fee when you can do it for tree? liz: exactly. matching the market and that is considered good? buy the s&p. >> and

valeant, one of the worst bets ever and now this.s, i'll tell you, he put out a statement today still thinking it's a pyramid scheme. will go to zero. liz: he said, good for the federal trade commission. this is sort of a moral victory for him but moral doesn't pay the bills. >> by the way it was not that moral. if it was moral they would have came in said, you guys, do x, y, and z that would have squeezed business model and would have said you nice operated illegally. they haven't said such a thing. what they did is pretty much government agencies do what they spend a year, in this case four years investigating something, really not coming up with not much. they take a pound of flesh and say a few things. liz: let me clear on one thing. the ftc did say herbalife must now reward members for what they sell, versus how many people they recruit to sell. >> they do that anyway. and i'm just sayings there is very little injunctive relief here. liz: do people pull money out of pershing or bill ackman's fund or do they still believe because

they're lumped in with valeant doing arthritis. doing that type of stuff. very inexpensive. think they'll be able to do well long-term. >> thanks for being here. >> my pleasure. >> it was fun. >> always. >> craig hodges. >>> tesla ramping up its war of words with "fortune" calling a report calling its cars fundamentally incorrect. eric dezenhall joins us after the break. check the futures now. earlier suggested a positive open. futures right now are negative. "squawk" will be right back. every year, the amount of data your enterprise uses goes up. smart devices are up. cloud is up. analyticis up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different network that delive bandwidtyou need without the high cost. because you can't build the business of tomorrow on the network of yesterday. >>> welcome back. the recent failed tesla autopilot crash raises questions about the procedures particularly since elon musk and the company sold about $2 billion of stock before the crash was made public. >> some of it was his, wasn

. >>> stocks to watch this morning, valeant pharmaceuticals.ut the sequoia fund told clients it's completely liquidated its stake in valeant. teva pharmaceuticals increased its guidance leading to early gains in after-hours trading that are no longer there. the stocks reverse course after announcing an amendment in its agreement to buy allergan's generic drug business. it excludes several more products from that deal. >>> coming up, is this market in danger of joefr heating? andreessen horowitz scott kupor will join us to talk tech when "squawk box" comes back. ay, so r bank's app. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagine what the bank of the future can be. our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. we're creating new pl

can use his profits on valeant to cover the losses.it a minute. >> you can say whatever you want. >> that was a terrible call too, right? he's about -- is he batting 0.500 now, would you say? i mean, general growth is great. he had some -- >> canadian pacific was great. general growth, great. before that mbia, great. >> j krrcpenney bad, target not great. he has $4 billion and a penthouse -- he owns like a high-rise. so i'm not saying -- >> nor am i defending. >> really? >> what are you doing? >> well, i mean, thank god i didn't buy a bunch of puts on the hong kong dollar after delivering alpha. because i thought about it. he had 180 slides on why the dollar was going to be -- lose its -- >> here's a quote of what bill told me yesterday. he said, i think this is going to end up with the government suing herbalife for a scheme and herbalife capitulating to changes. it won't be $60 a share. it won't be trading at 14 times earnings. you're going to get obliterated. that's why i've been a patient investor here. i think this is the most att

the fund that was once the biggest investor in volume -- in valeant has gotten out. has gotten out.he bloomberg business flash. francine: the french economy minister is keeping france busy. fenbywith us is jonathan and roush ruchir sharma. share -- ruchir sharma. jonathan, if he were to run for president when he win? jonathan: he would have a chance if he can get into the second round of the presidential election. he does not have a machine or a party behind him. he comes from the socialist government but is -- his most fervent opponents are in the socialist party so he has a long way to go. france has a habit of finding providential nights in white horses who look good and then fizzle out because they have not got the basic backing. francine: it goes to the heart .f what europe well be there was always the triumvirate of the u.k., germany, and france. we see the u.k. pulling out and france being weak. allir: when i summarize it and apply the rules, you may germany still looks good and france looks ugly. s is -- that is the basic tension that will continue to play out in the europea

another little item of breaking news has to do with valeant.roen -- andrew of citroen says he is shorting the stock again. he said it's nothing substantial, a small position and he's held it for a few weeks. down once again today on his call. broadening out to the wider markets and taking a look at this one, we have a mixed picture. the dow trading in a record on the closing basis. the s&p slipping a bit. it looks like it's a mixed picture in terms of commodities. on the one hand, copper prices trading at the highest since april. chinese imports of 22% in the first half of the year. if you look at copper and the copper stocks, we are seeing gains there today. oil prices are trading lower today. we saw a drawdown in crude oil inventories. that puts a lot of pressure on these oil prices and it is pulling down energy stocks. >> still ahead, it started as the lowest expectations of the summer searching for yield. ♪ >> i'm shery ahn in new york. the rally that lifted u.s. stocks faltered as crude plunged. treasuries halted on a two-day slide and the

. >>> up next, valeant pharmaceuticals meeting with regulators on the key of an experimental drug. >> china's box office expecting to be the number one movie market in the world soon. maybe next year. hollywood is hoping to cash in. julia boorstin has the lowdown when we come back. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t. why don't you let me... and me... help you out? ♪ you're gonna hear what i say... ♪ i love taking stuff apart and building new things out of it. anne: pal's my most advanced annedroid. [gasps] this is awesome. ♪ oh anne: you haven't seen anything yet. announcer: give your cardboard box another life. >>> welcome back. look at the health insurers today, under pressure of reports gearing up to file lawsuits to b

you think about bill act man and valeant pharmaceuticals. i might say mark mcgwire was a protege of bill ackman at one point. this is obviously his latest move. >> all right, kate, thank you very much. let's move over to dominic chu for a quick market flash. >> both rising over the course of the mid afternoon here, as you can see. and this was on the heels of bloomberg headlines, saying a number of miller's larger shareholders were seen backing this particular deal. that's according to sources with familiar situations. yesterday we had the same discussion because there was skepticism because s.a.b. miller was said to have halted the immigration work they were doing to evaluate a new deal that was put forward. also want to point out, coors moving because they could be a beneficiary in case sab miller-ab inbev combined has to sell assets. >> thank you very much. >>> also in the news today, harley davidson. yeah, the stock mildly higher right now. but jane wells was on the conference call. the stock being up a bit today does not reflect at all

unless you have a company like a valeant trading millions of shares, be you just don't have the interestt's important to point out, even a stock like amazon, it's run on very little volume. i just want to point that out. if you get another shock, you'll find that these buyers disappear. they're only in there like every day and buy a little bit and then when -- they -- and they move stocks. >> you mentioned amazon which i was going to go to on the goldman report. start with ebay. there's amazon. do amazon first and then ebay. ebay is up a lot. amazon, a goldman report this morning that says we expect further revenue acceleration, margin expansion, we'll get the results on the 28th after the close by the way. they're looking for $29.4 billion. and, of course, we expect 58% year over year growth in amazon web services in the second quarter. compared to 64%. it's slowing. >> growth is slowing. there are some comps, some data the other day that showed that it was only about 11%. i think that -- i said last night on "mad money" listen, this is not necessarily the when you come in and buy amazo

staying with health care, we are watching valeant.rug to treat digestive problems for folks taking opioids related to chronic noncancer pain. begin sales of those tablets in the third quarter and though shares are bouncing by 4.5%. now let's go to the nasdaq. >> it's all about microsoft this morning. a great quarter beating top and bottom line estimates by 19%. it's huge driven by strength in the cloud. ce in the pcgen business. saw strong sequential growth there. it is providing a nice bullish tailwind. also intuitive surgical put up a great fiscal second quarter beating estimates as worldwide growth was up 15% year-over-year. on companies raised guidance a stock that is already up 23% year to date making it one of the best stocks in the nasdaq. let's go over to london. the past few sessions, we have seen the stoxx 600 alternate between gains and losses and today, we are on gains. 1% goinglmost 7/10 of toward a four-week high on better-than-expected earnings announcements. it is technology and carmakers leading the rally. these share

after a horrible year of setbacks with valeant pharmaceuticals and a current performance of 19% year-to-date in pershing square, i want to say he just issued a statement within the last few minutes and essentially congratulates the ftc for enforcing the law. he's going to work with overseas regulators to help them to the extent they might be looking at herbalife. but he also says, while it appears that herbalife negotiated away the words pyramid scheme from the settlement agreement, the ftc's findings are clear. so that's kind of this nonspeak that i was referring to. >> tyler said something earlier that i thought was telling. >> nail in the head. >> just like comey the other day. these are all the bad things that hillary clinton did, but we're not going to indict her. >> and nobody should. >> these are all the things we think they did wrong, but we're not going to prosecute. >> do you think it's political, because i don't? >> no, i just think there's an irony in that. >> and a message. >> and a message. >> i think there's an irony, the reason i say it's not political, who knows, i'm specula

it's been trying to bring up the number walgreens talked about its partnership with valeant and set itere having questions it was satisfied with the dermatology business. the shares took a leg higher in the premarket but now they have reversed that and lowered once again. we are looking at greenbrier this morning, a brighter goodman, rail corridor rail industry. the company cutting from the higher upper and of its full-year forecast and also raised this dividends. estimatesso beating but falling by 14%. car deliveries were 4300 for the quarter. mostly doctors offices and the company says it is going to be offering more shares. about 9 million of them in order to fund in acquisition of another company. they had been private equity owned. that striving down shares by 1%. jon: you talk about financials. here in europe the financials down by over to full percentage points. a lot of people focusing on deutsche bank. down six full percentage points. in all time low on deutsche bank. the conversation throughout the session as we had throughout the close here in europe. the financials very muc

shares of valeant are rising in premarket trading. up 4%.y received fda approval for the tablet form of its re s relister drug which treats constipation. an injectable drug has been on the market for eight years. seems like a drastic step to take for constipation, doesn't it? an injectable form. i guess if it's really bad. anyway, s.a.p. saw profits jump 73% from a year ago in its second quarter. boosted in the cloud business. intuitive surgical earned $5.62 a share 65 cents above estimates. saw higher sales of the da vinci robotics systems. actually, i think andrew, that with the constipation that can occur following operations depending on what it is and just anesthesia or painkillers in general can be pretty scary. so, you know, to say that you wouldn't think of an injectable form i think is run of the mill. but i think it's a serious condition. i want to see how you respond to that. >> i'm not going to. >>> coming up, we've got much more from the republican national -- >> it's a medical -- be yourself. it's a medical issue. it's a medica