let's use the 1,200 basis points of margin. >> talking about adp. >> i went back to adp. i want to push back just as a devil's advocate let's say and i'm looking at the last year's report, june 30th, they earned $3.80 so let's say you get that 1,200 basis point pickup on margin and that goes to 550 or even 6 and i'm sorry i don't have the presentation, i'm sure you've laid out the numbers. my question to you, we're all in the markets, right, and we think about where should the stock trade. today it's at about 25 times of forward earnings multiple so maybe that comes down into the high teens my question to you, if you're my investor, if you're my adviser from had a high teens multiple after you've made your changes, do you real el think the stock price is going to appreciate from there. >> it's not a question of whether you're right. >> i understand. >> it's a question of how the market responds to it. >> so we think this business becomes a more valuable business and gets a higher multiple three years out and here's why growth is slowing right now. why is growth slowing? >

leon: i want to make a disclosure, i do not own any shares in adp. i gave them to charity, we built a wing at a medical center last week. i should have given them cash and cap the stock because the stock tripled since i sold it. i am not debating the merits. what i am saying is, his approach is totally uncalled for and an appropriate. -- inappropriate. i was on the board for 15 or so years. this company is a fabulous success story. it went public in 1961. the market cap was maybe $10 million or $50 million. today, that is $60 billion. that is like a 70% compound rate of return for extremely long period. they have 40% return equity, more than twice the market. outperforms the competition. privately,ou meet explain your views, give them an opportunity to dialogue? even if you disagree with the way he handled it, you said there is some merit. leon: bill is a bright, capable guy. i do not know of any company in the world that could not do the stellar job they are doing. adp is an open company. they welcome engagement with their shareholders. betty: why d

so he'll be on the set with me and we'll kick it around, find out what he thinks he can do at adp and be successful in the proxy fight. >> interesting seems to be really ramping up in terms of social media, in terms of what he can do on adp, launched a twitter handle adp rising, a video, interesting to see how he's playing it from all sides. >> he stepped it up today, released a two-minute video in which he speaks directly to the retail investor. he thinks that this proxy fight is going to come down to the retail vote. it's auto highly owned retail stock. he looks into the camera, speaks directly to the retail investor. he put out a letter as well with a number of charts that help him make his case. as you said, the new twitter handle so he's stepping it up >> all right, scott. we look forward to that interview. scott wapner, halftime report, bill ackman exclusively on cnbc ahead. >>> here is another story we're watching closely, hundreds dead, following yesterdayed powerful 7.1 magnitude quake in mexico. in mexico with the latest on the recovery efforts steve. >> reporter: it is a he

given the adp. but, at this point, the forecast is 179 209 was the big upside surprise that we saw from the july number two straight 200 plus. so we'll see whether that 179 is more accurate than the adp and of course the brad gilbert forecast 247 unemployment expected to hold. first a check on futures right now. some strong all morning long up 71 indicated on the dow. s&p indicated up just over 5 nasdaq up almost 17. 10-year, by the way, has been between 2.1 and 2.2. we've been talking about that, 2.13 is where it is today. >> among today's top stories the >> mary joe::er of dow chemical and dupont is a done deal. the newly combined company which is own as dow-dupont is going to begin trading on the new york stock exchange under the symbol dwdp shareholders got one share of the new company for every share they held. dupont shareholders got 1.3 shares in the new company for each share they health recovery is under way on the gulf coast the port of houston is is reopening to ships today officials say

. >> you've got the other looming proxy fight with ackman and adp. i know we'll speak with bill tomorrow here. >> right. >> and get his first comments on what he thinks about where this whole thick has gone you've spoken obviously with the ceo of rodriguez and ackman, us a made the point earlier, he's only a 2% common holder of stocks, so it makes it for a potential difficult battle on his end, i believe you said earlier. >> i think so, scott i think that's going to be a tough one. he's going after three seats, as you know, and -- and some of his actions here have been somewhat curious. for example, the decision not to fully convert all of his derivative position into a common position prior to the record date passing so he cop spent by 4%. it's going to be a tough fight for him is the sense that i'm sort of getting. he believes they can massively improve their margins at the company. i'll be interested to hear thoughts tomorrow with you in terms of what he thinks we can do which is i would argue reversing the momentum here. >> we'll ask him about al

adp responded that pershing square's approach spren hissings to risks to shareholders. >>> shares of akzo nobel are down the company says it will not achieve its operatingised was tr in july, akzo's ceo also quit due to health reasons. >>> second quarter results for c cloudera rose. it is raising its full-year outlook. up 44% this morning. >>> shares of american outdoor brands are sliding the gunmaker reported first quarter earnings and revenue that fell short of forecast. this quarter faced a challenging comparison to last year which was driven by demand for firearms on concerns about potential gun control legislation in the u.s >>> finisar is reporting first quarter earnings in line with estimates. the fiberoptics company gave a second quarter outlook that missed forecasts. >>> veriphone reporting a surprised third quarter loss due to restructuring charges related to china operations. they also gave a weak outlook for the current quarter redfin's second quarter earnings in line with expectations. the. >>> zumiez is reporting a narrower second quarter loss revenue slightly topping f

ands also a director at adp chairs the adp board's nominating committee. hubbard recently rejected a request last month to add ackman and two mothers to that -- to others to that board. brooklyn could be a big winner if new york city secures a bid for amazon's new headquarters. the corporate compound is expected to create 50,000 jobs over the next 15 plus years. the new york city brokerage says brooklyn's representation as a hub for many millennial's and it could give a leg up for those that have come short and companies.big-name that is your bloomberg business flash. shery: tackling tax reform. the senate finance committee held a hearing to discuss possible healthy prescriptions and we will talk with one ask expert who just wrapped up his testimony. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. shery: i am shery ahn. vonnie: republican bob corker says the decision on tax reform policy could come as early as today. one of washington's leading experts on tax policy is with us. of the taxesident foundation and just concluded

. >> adp. falf a lik lks e n.fuabc 7 news -- yeah, exactly. thanks for joining us. bye-bye. >> coming up on today's show, great contestants, great questions, and very possibly, a great big check. "whoantso be i millionaire." [dramatic music] ♪ hey, everybody. welcome to "millionaire." you guys ready to go today? [cheers and applause] well, so is our returning contestant, who is dedicating her game to her 94-year-old grandma. from diamond bar, california, andrea sutterfield. [cheers and applause] welcome back. >> thank you. >> i love it, so you and your grandmother watch "millionaire" all the time? >> oh, yeah, but i--almost raised by my grandma, as my mom worked a lot when i was growing up, and "millionaire" has always been one of our favorite shows. >> she's got a lot to be proud of. you're in the middle of a good game. you're at $7,000. eight away from the million.

leslie picker is here with the detai details. >> adp is firing back out with a 69-page presentation, in response to pershing square's 167-page presentation last month. some key things to point out, pershing squares owns both options and shares to comprise its share stake, but ackman only has 2% that's confirming reporting by our david faber yesterday. the rest are in options with a much higher cost basis with about $116 per share, $8 higher than that of common stock. now, action dp says it's cost an about $2 billion to convert those options to shares. this whole situation is highly unusual and significant because the record date has passed, meaning that ackman can only vote 2% worth of his share ifs this gets to a proxy contest so this signals that he was aiming for a settlement here, but it appears he may not get that and adp exposed some details on pershing square's new compensation structure now his investors will pay 30% performance fees on returns greater than 5%. before, they charged 20% on positive returns adp says this incentivizes a, quote, swing for the fences mentality, en

. >>> an update now, ackman seeking three additional directors on adp's board when the annual meeting is convened on the 7th of november the record date, though, for that annual meeting took place on the 8th of september. and importantly ackman was in a position to be able to convert to what would have been an 8.3% stake in the common. why is that important? well, you want to own as much common as you can, conceivably, because you can then vote in the annual meeting but what i can tell you is at this point, and in effect what will be the case is, ackman only converted enough to have a 2% or roughly 9 million share stake in adp's common, meaning those are the shares he will be able to vote, not a full 8.3% stake. he continues to hold the derivatives, which will give him an economic benefit should the stock move higher. it does appear, of course, part of this may have been as a result of the money he would have had to have parted with in order to have done a conversion to the full 8.3% common stake. some people telling me it could have been as much as a $2 billion number required of him

resources company adp recently about you put their execs through ibm's high tech boot camp. >> it's as important for me to understand how to respond to a crisis as it is for my team to be able to operate in a crisis. >> reporter: it can simulate cyber attacks and train executives on how to respond before customers' data is at risk. the boot camp also evolves to include new attacks as the threats change. for "nightly business report," i'm andrea day. >>> sprint and t-mobile are reportedly in merger talks again. that's where we begin tonight's market focus. av a potential tieup between the two telecoms was derailed by reporters in 2014, reports surfaced earlier this year that the companies were considering combining. now cnbc says sprint and t-mobile are in active discussions about a stock for stock merger where t-mobile's parent would become the majority owner. sprint's shares rose nearly 7% to $8.20. shares of t-mobile were higher by 5% to 65.42. >>> cereal giant post is adding more products to its portfolio with its $1.5 billion deal to buy bob evans farms. bob evans said it was the r

a couple guys -- >> we will get to them i want to hit a couple of other stocks one is adp i reported on the strange situation to a certain extent -- >> i like that word. >> we don't typically see where bill ackman who talked about an 8.3 stake in adp, converted to establish a 2% position in the common prior to the record date. prior to being able to vote the shares in the upcoming proxy vote that will take place a couple of months from now at the annual meeting that was surprising. i did speak to bill yesterday. he said, listen, 2.4 billion overall in terms of the 2%, the 9 million shares cost, not to mention my derivative position, one of the largest economic owners, 2% is a significant position he did indicate an unwillingness to extent beyond that in terms of the cost that it would borne to convert to get to the 8.3% of common it will be interesting to see what adp's response is we kind of know because they have a presentation today, an investor presentation today. that heats up to a certain extent he is seeking three board seats and talks about improvement of 1200 basis points an

back in 2010 a white house projected four percent adp growth. thinking they were on this coming out of the recession cycle and what we were trying to say was with these policies you can hit those numbers, without then you can't . >> you right at the unfortunate reality is that federal spending initiatives are intended to expand the power and influence of government rather than improve the economy and create jobs to. >> this is the progressive velocity, the progressive movement starting with wilson and probably the only president who was more progressive than barack obama but the idea has always been to expand government power, to the ability to control the economy in the hands of an elite group of people, political appointees, the bureaucracy and academics and time elected officials rather than having the direction of the economy driven by consumers and purchasing. so i think rahm emanuel said it back. if you don't want a crisis to go to waste so every time there's been a crisis whether it was the early 1900s or the great depression or the reces

first of all, the two key elements are adp and weekly, survey, we are forecasting 225k. dagen: that will be three months above 200,000. >> well above 180 but and there's an asterisk here. august payroll report is the corkiest of the year for a number of reasons, it historically misses on the flash by average of 45,000 jobs. we get all of that back in november after second revision but there could be a disappointment here just because of the statistic cork that shows up in august every year. dagen: one thing that we should point out to people that the impact of harvey will not show in job's report. the surveys are done around the 12th of the month and one reason i know that because i used to be part of the household survey mike, what are else are we looking for, wage growth are critical, if you average the prior three months, again, that's not fast enough for people to feel real prosperity. >> average hourly earnings, expectation is plus 2.6% year over year, steady progress higher, however, you think about classic macro economics, unemployment rate, this wage that way, th

you had adp coming up that was stronger. that could be a good thing. >> it absolutely could be a good thing. we think it will come above expectations, those are all good signs, there's no doubt that the backdrop, the economy, everything is looking very good from investment and economic perspective but that doesn't mean that there can't be some kind of spike in volatility or event that might cause a little bit of 5% correction that we haven't had. we hasn't had a 3% correction in a while. those are opportunities, really, that's what i would look for, fundamentally after that, those are just opportunities to get back in, maybe rebalance portfolio if it's gotten out of whack, that's a good time to do that. cheryl: we will be feeling the impact of this economically for probably months to come, what about energy companies, what about insurance companies, things like that? i mean, a lot of times, you know, folks tend to look at this as investment opportunity, have you looked at that as well this week? >> well, we have, energy comp

don't miss a live and exclusive interview with bill ackman he will be talking about the battle with adp for the very first time that's at noon eastern today >>> welcome back to "squawk box. in political news, senate t republicans reaching a budget deal that would allow tax cuts over the next decade sources say the senate budget committee could hold a vote on the measure as early as next week separately the white house says it will continue to pay obamacare subsidies for the month of september, this as senators failed to reach a bipartisan deal to repair obamaca obamacare. this is something you have to be watching closely >> the bipartisan agreement doesn't come together, but there's a republican plan that the white house supports the bipartisan plan seems to have died because paul ryan and the house said don't do this. >> the other thing is if there's a deal on healthcare t has to happen by september 30 sntth >> yeah. after that, you will need the support of a lot of democrats, and it doesn't look like they'll get that. >>> brexit will leakly p likely lot of opportunities for the uk tec

., surprisingly on the upside with the gdp and adp numbers. what does that mean for the trajectory of the u.s. economy do you think >> yeah. our expectation is of 2.2% growth in the u.s. that should remain unchanged next year, even though we expect more rate hikes by the federal reserve we expect two for the next three years. the labor market continues quite strong we have to take into account the change in the direction of the labor participation rate, which means the labor progress that we'll see this afternoon and in recent months is actually of higher quality than we've seen in recent years. >> we see continued dollar weakness i think six months in a row that the dollar closed lower against a trade weighted basket of other currencies what do you see as the trajectory given your above-market expectations for rate hikes for the u.s. dollar between now and the end of the year >> yeah. we think the big game changer or the needle in the wind is the european central bank. the market increased its expectation for the end of the asset purchase pro

ameriprise >>> the big interviews just keep coming on cnbc bill ackman will talk about his battle with adp tomorrow at noon, you will not want to miss that >>> time for the final trades. >> keep an eye on this name, i think it's going higher. >> avis budget up 9% off its recent low >> still a double? >> still a double. >> micron, i think you want to be out of it >> why is everyone talking so fast >> we said if it holds off the oracle news, you have to buy crm. >> thanks for watching see you again tomorrow at 5:00 stay tuned for "mad money" with the one and only jim cramer. test test. >>> my mission is simple, to make you money i'm here the level the playing field for all investors. there's always a market somewhere and i promise to help you find it. "mad money" starts now >> hey i'm cramer welcome to "mad money," cram america. i'm trying to make us money. my job is not just to entertain but to educate and teach call 180-0734 cnbc or tweet me @ji

we talked about adp and chipotle, he said he's a big believer that the stock is, in his words, extremely cheap i asked him if he tried the queso yet, he said he did not but planned to well, it appears he has because he just texted me and he says, he wanted me to share this -- >> let me guess, it's fantastic? >> "just had the queso, it is great, really. so, anyway, we can put that question to rest billing a m ing ackman had thee. he's a big believer in the cheese right he is the stock see you on monday. have a good weekend. "power lunch" starts right now. >>> i'm brian sullivan, here's what's on your power friday menu iphone 8 hitting the stores today. why are apple shares the worst performers this month by far in the dow? >>> shock in london as uber is stripped of its license to operation amid allegations ranging from sexism all the way to bullying. uber accused of being irresponsible and infit to do business what dismeans for uber and other big startups ahead. >>> the retirement crisis that few others are talking about believe me, it will have an impact on you and your money "power lunc

adp, which did a private est mat of jobs created last month, put out a stronger number. it's still kind of a goldilocks number in the sensitis strong enough to support labor market growth but not running so hot that the federal reserve is likely to respond to the number. >> we're not going to get a hike from january net yellin, but as far as the wage growth, that's what matters to that huge chunk of americans, those who say yes, i have a job but i can't make ends meet. when you look at this number, when you look at participation, what's going to move wages? >> i don't know at this point. i don't know if we'll see massive acceleration in wages. typically when the unemployment rate is this low, at least in certain periods of history, and companies begin to compete for labor, wages go up. now, having said that, we have a lot of automation, we have a lot of innovation that's allowing companies to replace some people with either robots or software so, that's putting downward pressure on wages. we have some competing things going on in the workplace today that weren't quite as

yesterday we had 237,000 new jobs in the private sector reported by adp. today a disappointing overall jobs number, disappointing to me at least. but 36,000 new manufacturing jobs last month, and that's a nice spike in well-paid jobs. anything to add? >> yeah, you know -- stuart: 22,000, there we go. 22,000 exactly on the dow, up 50 points. sorry, lizzie. >> 120 away from a record. this report is usually funky because you've got auto industry furloughs with plants, you've got students quitting their jobs to go back to school, teachers come anything and out of jobs. -- coming in and out of jobs. i would say take it with a grain of salt. there is that positive with manufacturing and construction jobs coming in strong. >> we have low unemployment, low inflation, perhaps the market doesn't fully appreciate how much upside potential there is for growth in the united states without having to pay the price of faster price inflation. stuart: all right. jeff sica has been known to issue a couple of bearish ideas in his lifetime. i mean, on occasion on this program

you guys are not involved in adp. i can ask you about it. is there more to be gleaned from png fight than simply the fight itself >> i think it is a good question to ask is how important is that board room chemistry. i think a well functioning board is critical to a company's performance. i think you have one board saying our company and board is functioning well. dupont had that argument. you had a large investor saying itted be helpful. not looking to replace anyone. i think it is a really good debate. i think it will be very close. and we'll see. i think it is very close. i think the shareholder perspective is a pretty good argument. >> there is some who thought it might fade. they have stayed relevant, current and active. >> they have a lot of money. you think about -- this is the new normal. >> and finally what would be a bad sign for you i would assume if the economy starts to tank. anything else unexpected that could dampen your forecast >> i think it is geopolitical. north korea would be a bad thing. anything in washington that gives

wapner has ackman they're out in force that will be a tough one for bill last thing we reported on adp, his decision not to convert his derivative position entirely to an 8.3 position in the common, still makes them a large holder, but only a 2% common holder. can only vote that 2%. he's got a tough battle ahead of him, mr. ackman. again, no surprise that he would want to try and put the pressure on to a certain extent >> very different in terms of much more general sherman march to the sea, rather than peltz. even though the peltz procter has gotten to the point where it's, let's just say, not convivial. >> that's for sure >> let's get to bob pisani see what's moving on the floor >> another day, another new high the s&p did go negative. teches have come back. it's been a laggard, healthcare, energy is back, oil is over $50, banks are okay today also a leadership group. it pays to look at major indices. we have to remind ourselves we are remaining at new highs on the s&p 500. the mid cap and the russell 2000, they are just slightly below their recent highs a lot of people watching that

ackman and to a certain extent with adp, improve margins by cutting cost and the like but they make a case for far higher margins with all of these companies i just mentioned. whether or not they'll be successful, who knows in terms of their attempt to either get board seats or pressure management. >> what do you think about ge? ge flanry corporate jet, sells the division that i had always thought it was important, industrial solutions, not supposed to do anything until november. he's not waiting around. >> he's not waiting and he can't wait. >> no, no. ge can't wait. ge had a lot of others. i do think that this guy flanry, i mean, he may seem like a real nice guy but i'm getting the sense that he understands that these analysts -- he wants to make them look bad. i think he has the fire power to do it. >> he's moving on all fronts is what i hear as well. still the key question again back to try anne whether they'll get a board seat there. >> did you notice the calculation of the ingersol performance? >> no, i didn't. >> so what all's fair in love and mistakes. >> thankfully we only ha

report an exclusive interview with bill ackman the first time he is speaking out about the battle with adp. "squawk on the street" will be right back not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. >>> on trading nation what surprise country could he invest a wt t bt ample of a bubble right now? >>> let's get to the simi group in chicago >> hi, thank you, melissa. it's second day of two-day fed meeting. a big meeting, maybe historic meeting. we couldn't have a better guest for that particular point in time, former fed governor robert heller let's get right into it. i have four i want to go in to what do you think about the rate side of the fed and how things may shake out today and for the remaining meetings for o2017 >> i believe they should be increasing rates the sooner the better. they're way behind the curve on that score so, let's do it fast i doubt that they'll do it this time because of the other issue, t

tax planet will do, we talk about creating economic growth over eight 10 year cycle. 1%, wecan grow adp by can pay down $3 trillion of the deficit. we are very excited about the tax plan. companiesack american to america, having them produce products in america and higher american workers are in. david: i know you are trying to grow the economy. company,have a startup you have to invest at the beginning. you go into the red for you know cash positive. when would this turn cash positive? gary: we understand the investment tackle. we are acute of that. when you look at some of the provisions we put into the tax code, we are encouraging front and investment. we have allowed companies to right off take 100% for any capital investment they make. that is what we want. we want people to invest capital of front so they can hire people, they can build plants and equipment. we get paid back over a long term. it's't sit here and say day 365 or your five. the quicker we get going, the quicker we get a surety of where we are in the economy. that and i know that. that's how companies look at this. da

the better report on adp wednesday is the blue line. are we at a risk for disappointment in the august consensus? michael: certainly the risk is there. the disappointment may be contained by the fact that so many other things are affecting the bond equity markets. even if we come in low, has low as it is not too school is starting back up again, j summer is ending, it has come in six years in a row under expectations. at some point, you think the numbers would account for that. there is a good chance we do see some disappointment. equities, bonds, currencies, commoditie the lastalix: mike, this is clean jobs report we get in a while, right? michael: yes, i am the last guy talking about harvey because it will not show up in the august data. it will show up in november. people who cannot get to work because they are still busy dealing with problems at home, so yes, we will see something in september. be spending day that will distorted, jobless claims data, so it is going to be hard for the fed to look through all of this. these aredo tha

firms accounted for only 0.4% of adp procurement in 2016. in contrast chinese firms accounted for over 22% procurement in the same year. mr. doud do you believe there should be efforts to increase participation by u.s. firms in the african gomt bank? if so how do you believe we can make it ease your for u.s. companies to compete? >> i would think this would be a good application for value for money bidding. that is to say it's not always the lowest bid that is the best bid. but the way things operate that way. the chinese that's their forte. low quality, cheap bidding. and so perhaps, i hope, we can impose value bidding. to help u.s. companies. in addition to helping -- >> that's the entire life cycle of the project, right? >> indeed. another element that you elude to there is perhaps even contingency payments for the longer term loans to make sure they're not wandering off into who knows where. so there be regular monitoring and accounting and auditing of ongoing project funding. as far as encouraging u.s. companies to invest in and operate

interview tonight at "mad money" at 6:00 the similarities between what's happening ear and the way adp is trying to fend it off. >> what's interesting is the market when it comes to p & g, that stock has outperformed colgate and clorox in ten percentage points, which is about when he disclosed. >> so how much is it up in the last couple months >> basic roye it's taken a vertical leg up. so it laskly shows that investors can either win whether peltz is on the board or -- >> does he need to do anything at all >> that's the question, right. which might be why an activist would go and you have a company like this. they know there's a way to help returns and they look for the pushes. >> one of the things he said was peltz has been on the board, now you're going to bring to the table, we're a huge company, this is going to cause disruption i'm also thinking, i think it was ppg that recently fended off a takeover only to have to do a massive restructuring itself i understand the companies don't want to shake things up, but sometimes you have to make the change now or -- >> one get is whether