good morning, everybody. welcome. you're watching "worldwide exchange" been i'm louisa bojesen. the dollar is losing steam amid expectations that the fed has a dovish script. charles plosser telling cnbc that the central bank needs to move soon as easy money is increasing risk. >> i would prefer us to he begin raising rates sooner and raising

them more gradually. but the longer we wait, the more i see us as having to raise rates quickly in response to a stronger economy and perhaps more inflation. chuck hagel is saying the pentagon may be forced to review its budget to fight isis. on the move, russia is saying an aid convoy is making its way to the ukrainian city as angela merkel is preparing to meet with ukrainian president poroshenko. good morning, everybody. good morning. welcome. it's friday. we're almost done with the week, aren't we? but a lot still going on. very glad you're with us. we have two hours together and

it's all about janet yellen today. we have no large economic data that's due to hit our wires. we're very much in wait and see mode as janet yellen is prepared to address delegates at jackson hole today. the debate going on on the sidelines is that the market and the economy are both strong enough to warrant a rate hike. philadelphia fed president charles plosser thinks it's time to move. >> i would prefer us raising rates sooner and raising them more gradually. but the longer we wait, the more i see it as us having to raise them more quickly in response to a stoppinger economy and perhaps inflation. >> so we need to talk more about fed policy, we need to talk about the markets, we need to put it altogether and talk about it. les keiken is with us here for the top of the show. hi, les. >> good morning. >> how are you? >> pretty good. >> what are your anticipations

with regard to fed policy and what we hear from the fed today? >> i think our economists generally don't expect something too exciting out of the meeting. >> out of the symposium, we should say. >> out of the symposium. >> this time around, we have janet yellen presenting. she is at the dovish end of the spectrum in the fed. i think that's the tone we will get out of it. a slightly dovish message out of that from the yellen speech. >> what do you think the main issues are, though, that they're looking at? are they looking at the risk of inflation/deflation? are they looking at the risk of a stronger/weaker labor force? are they looking at how the general global environment is faring? what's the main thing that's really moving them at the moment? >> well, the topic is very much the labor market. they'll be talking about the slack in the u.s. labor market

as there are conflicting messages you can get from different data sets that janet yellen will look at. today, we wouldn't expect much. a viewer just mentioned that there's a slightly dovish tone, but neglect overexciting. you wouldn't expect a large qualitative reaction. at the risk of anything, probably a little bit more than something negative. so if she were to talk more aggressively, that's probably where we would get a larger reaction. but it's not something we necessarily expect approximately later on the me year, i think that's a larger danger. >> and you're a global equity strategist, as said. the markets right now, they seem so resilient to the faster data that's out. we've completely forgotten how to react to soft data by the looks of things. how do you trade at the moment?

what's your advice to people we've talked to? >> i think at the moment, and certainly for the mid cycle development, that does favor risky assets. that doesn't mean that you don't get setbacks. you get a 5% to 10% reaction on afghanistan two times per year. that could be triggered by the fed, at some point changing the messaging. we've seen in the uk, mark carney mentioned the speech, we're focusing attention towards the first rate hike and that's something ultimately that will have to happen with the u.s. in the fed, as well. when that happens, i think ek markets will be set back. if you look historically, equities have -- ahead of the first rate hike. that's something we'll be looking for at some point in the second half. >> is there a market now that you look at i wouldn't say using the favorite markets to buy?

>> eurozone is under performing a business. i can that's something to look at from an equity perspective. >> thank you very much. global equity analyst. coming up, we will be speaking first to cnbc to st. louis fed president james bullard taking place at 1400 cet. at mid time, 1800 cet, we'll be hearing from atlanta fed president dennis lockhart. we've got figures from the fed, the ecb, the bank of england, the boj, all speaking today from the jackson hole symposium. >> we need 20 check in on the european markets. we're flat as a danish pancake.

i call this a flat start to the session, as anticipated. as i said, we have no economic data out. we're digesting the data we saw in here yesterday, the weaker pmis, the weaker retail data, the chinese manufacturing data this week. what goes up must come down, as well. i would call these markets flattish. looking at the debt markets, what's going on in bonds, buying across the board, pushing yields a little bit south. things are below 1% now again in the ten-year bund. that might be something you want to take note of once again. currency markets with the euro/dollar, 1.3287. so pretty much the same story as what we were looking at. yesterday. what happened in asia and what's happening now? sri jegarajah is in singapore rapping everything up for us. hi, skree. >> hi, louisa.

we are wrapping up the trading day and the trading week here in this region. we did get some support from wall street, the s&p 500 and another record high as a close. also, some upbeat data that when you were talking about. that's backstopping a lot of these markets. they're in a consolidation or a wait and see mode. other side of the flat line, we haven't seen much moment above and beyond the 0.5%. i want to talk about one market. that's the jakarta composite. we're following the politics because we've got the green light for the president elect. this wasn't without some uncertainty, though. earlier today, the constitutional court as expected, they unanimously upheld last month presidential election results. and now rododo will start his new five-year term on october 30th. it's not going to be without challenges, though. indonesia is still a deficit country.

reform the subsidy profile in indonesia. that involves fuel price hikes. he has said that he hopes the fuel price rises and that is some sign that he is fighting the bullet here. elsewhere, the greater china markets recovered after a shaky day yesterday. we saw sizable declines in the shanghai composite. >> we was talking about that likelihood in research report earlier on today. so the markets are trying to front run that. as well, we are standing, louisa, just ahead of jackson hole. no one really wants to commit to any big positions just ahead of what janet yellen has to say. back to you now. >> which might be

understandable, sri. before we go, do you know jell-o? do you eat jell-o? how do you describe it? >> they call it jello-o in america. when i grew up in the uk, it was jelly. >> exactly. my mother used to make it, too. but apparently people aren't buying it any more, sri. thank you for that. later on today, jell-o shaeres are wiggling and wobbling. find out what americans are turning to. it is primarily found in the u.s., i would agree with that. it is back to school season. if you're in e-commerce, should you already been talking about targeting customers for christmas? also, it may have been a

record august at the u.s. box office. we take a look at the season's flops and hits, as well. coming up, emily tan, she's been finding out some home truths about the congress long property market. we'll be checking in on that, too. we'll see you in a second. >> these were recently put on the market. the property market is asking for $100 million u.s. this would be the world's most expensive home per square foot. most of us are not made of that type of money. when we come back, we take a look at what the u.s. dollar can buy you in this town.

welcome back, everybody. i'm louisa bojesen. good morning. united airlines is trying to win the hearts of business travelers through their stomachs. the airline is upgrading first class options and replacing small snacks can full meals. passengers will be getting meals like chicken and mozzarella on a sizer roll. the upgrade is expected to begin in february. shares yesterday closing off

by a bit. we want to hear from you. does better food make you go to a specific airline join the conversation hiesh on "worldwide exchange." worldwide@cnbc.com. find us on twitter, @cnbcwex. or directly to me, @louisabojesen. 12 peaks in hong kong being billed as the most expensive apartments in the world. this as prices in the city lead to record highs. >> investments back in 1997 for $346,000. after generating decent rental

income over the years, he thought the time was right to cash in. >> i think the market is really high. in case the markets need to be -- and then i will do it again the. she made a profit of $170,000 on her 17-year investment, but it wasn't always a winning bet. in 2003, she was in negative equity. and 11 years on, she believes the market has now topped. >> we're in the hong kong territory, a three bedroom, one bathroom apartment measuring 395 square feet. so for $517,000 u.s. small and medium sized apartments saw the biggest rise in prices over the past six months. according to the government, wading in valuation apartments. a survey has found the average hong kong household is currently unable to afford even if most modest of homes.

what can u.s. dollars buy you? >> it can buy you a -- transportation to city or buy the cost area. >> developers in this town seem to be ignoring the government's attempt to wane new property prices. these homes were recently put on the market with an asking price of more than $100 million, if sold, will become the world's most expensive homes in terms of price per square foot. >> a lot of analysts were expecting the market to be down 10%, 25% to 30% even. we're all revising up right now. >> some in the market are calling for further upside by around 10 is% by the end of the year. cnbc, hong kong. >> emily tan joins us live from

hong kong. as usual, it depends on how much you have to spend, what you want to buy, things like that. >> that's right, louisa. if you want to know what you can get for $100 million, it's a 4,600 square feet, a private pool, as well as a terrace. so it remain toes be seen whether or not it will be sold. data is showing hong kong property prices are at record highs. the latest figure puts it at a record high.. the official price index has gone up for three consecutive months. we're seeing the market continuing to heat up because of pent up demand as well as basically we got a number of issues affecting the hong kong market. like low interest rates. current stability as well as government regulations on development and a limited land

supply. we have the financial secretary here in hong kong worry background the perfect storm. we've got, of course, price inflation and potentially stagflation. so let's talk more about the hong kong market here. we're joined by david gi with night frank. david, thank you so much for joining us today. dwl thank you. >> i want to start by asking you about 12 peaks and that property. more than $100 million. is there a buyer out there that will spend that kind of money? >> there was a transaction recently on the most expensive one. so there's a neighboring house had been sold. so there is buyout coming out to looking out, you know, to the property the. >> so we're seeing hong kong property prices continue to sit at record levels. yes. >> how long is this trend going to last? well, the fundamental problem is apply -- with demand. the government has come down

very hard with several looking for a slap on the transactions. but that measure is only able to contain, making transactions fairley noble. the price is going to be high for a certain amount of time. then supply problems can be solved. >> now, you know, the government cramping measures has been in place for about two years now. and the property buyers. so are these measures even working? >> well, it will only work in the long run coupled with the supply so that, you know, measurements. but now we can see the government intervention in the market, it's not necessarily efficient. this has improved across markets. >> what is the biggest risk to the market now?

>> well, at the moment, people have money. the morning would be a problem. >> so we're going to be watching, of course, yellen and her meeting at jackson hole later today to see if she gives any indication. thank you so much, david. we're going to have to leave it there. david gi from night frank, louis louisa, back to you. >> thank you very much forever that. now, the u.s. dollar remains slightly lower ahead of janet yellen's speech today. many are protecting her to stick to her dovish sense. and rate strategy at citi.

>> so first of all with the dollar, we're seeing the recent dollar value losing steam ahead of the fed's speech. what do you anticipate coming out of jackson hole and use we see reaction in the dollar? >> the main theme in jackson hole is the labor market, a theme extremely dear. she's been extremely consistent in giving her view on job markets. why? i don't think she's going to change now. it's not going to be a -- for a massive shift of sa expense on the level we're seeing. so i think she's going to be consistent with the reviews. on the front of the u.s. curve and the dollar after the minutes, showing that the level might be a little bit higher than what we expected.

over the past three to four weeks, we had a nice surge in the dollar. so it's broad. it's not only a euro/dollar move. emerging markets, especially in the effects by that probably suggests that em currencies will continue to trade on the weaker side, not expecting a message with but we are probably heading towards a longer environment here of stronger dollar. >> are there any currencies that stand out, though? whatever emerging market currencies?

>> yeah. it's looking into different ends. we believe that, of course, we could all go back to the same environment as 2013 when we were looking into the fragile five, the vulnerable, the financing gap economies. but i do believe that this time around, as we come closer to the normalization, the big move might not be in the long end of u.s. curb, might be in the front end of u.s. curve and that hit right in the head of the low yielding currencies. they are somehow very correlated to the euro. >> are they correlated to what's taking place in the home market on politics or have we disengaged a bit from politics? >> absolutely not.

it's complexity here. and sometimes you can make the trading currency on that currency a lot more toxic. but one of the moves we have in turkey now, we believe that politics and -- probably agree with me now at this point, that the trading and assets, given the potential for some deterioration in political governments. >> one thing could lead to a lot more stability. i think it's well received. not a shocking appointment, at all. political migration is the cabinet.

and in terms of central bank leadership, that's what we should be focusing on now. >> i give you my pocket money for this week. where would you invest it? >> i'm buying dollars, hungarian -- dollars despite the high negative carry and the ruble is straightforward yet despite the mean stocks will take place next week. >> thank you for being here. still to come here on the show, fears that the fed could turn hawkish on rates sends investors flying out of gold. more on where the precious metal could be headed. more strategy and analysis. find us on twitter and join the conversation @louisabojesen.

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welcome back, everybody, investors sitting on the sidelines ahead of janet yellen's speech at jackson hole.

plus, philadelphia fed president charles plosser telling cnbc that the central bank needs to move soon as easy money is increasing risks. >> i would prefer us to begin raising rates sooner and raising them more gradually. but the longer we wait, the more risk i see it as us having to raise rates quickly in response to a stronger economy, perhaps more inflation. chuck hagel is saying that the pentagon may be forced to review its budget to fund the fight against isis, warning that the islamic state could be more dress than al qaeda. and on the move, russia is saying an aid convoy is making its way towards a ukrainian city as angela merkel is preparing to meet with victor poroshenko in a clear sign of support for kiev. >> welcome back, everybody. if you're just joining us, glad that you're with us.

it's friday, the end of the week. we have a lot going on in the sense of jackson hole. janet yellen speaking. other than that, not really a whole lot. the data out earlier this week, looking at the markets, we're called pretty flat and we're pretty flat right now. more negative here within the last half an hour. the govp ya the german ten-year is now sitting down 0.98%. so the other thing that's happening is investors have been moving out of gold as they're awaiting guidance from the fed chair at the jackson hole symposium. the pressure metal closing down for the fifth day in a row, making it the lowest price in two months yesterday. this as the debate continues on whether the market and the

economy both are strong enough to warrant a rate hike. san francisco fed president john williams is saying that he thinks the current consensus in a move in july of 2015 is about right. i think they're thinking around summer of 2015 for the first rate hike is a reasonable guess, given where we think the economy is going. and, you know, how much progress we're making towards our goals. but, again, it rm depends on the data. if the data gets stronger, then it could be earlier. if the data disappoints, it could be late. >> john is joining us. welcome. >> morning. >> we need to talk about gold. i look at the dollar and i look at the dollar heading north and i listen to people telling me that the dollar will tb to heads north. and i think, oh, that means the gold has to head south. >> it's really interesting. and yes, gold is heading south

for now. they've had a good year, to be honest. net purchases, indian investors are still buying gold. they fear inflation. china is upping its game. it's producing exports that will rival the u.s. industry probably more and more and the value added end of the chain. and i think yellen is right to be cautious about raising rates. yes, we expect it to be dovish. other members of the fomc are hawkish. they say rates might raise in 2015. i think they've got to be really careful on this one and same for the bank of england governor here. >> do you think there is inflation? do you think that maybe fed officials are masking over the

fact that there's more inflation than what we see? we keep being told there's no inflation or very little inflation compared to what there could be especially in the u.s. and if anything we're looking at wage deflation. >> inflations are fundamental. it's one snapshot of what's going on in the economy and it doesn't account for the liquidity. you might buy things a bit cheaper, but you might buy a lot more of them. the fed will say inflation is something we've got to watch out for, but we're more concerned about jobs. and i think theelg carry on driving that job creation scheme and keep the qe going for a while. they're trainering it out, we all know that. but i think they're going to be very careful about holding rates back and they've got other things they can do to continue to stimulate the economy. and somehow they've got to gain control of u.s. debt. i mean, these are crazy numbers.

>> they're crazy numbers and they have been in quite a long time, right? and what else is going on, we get side tracked, right? i used to always come back to gold. if you look at a chart over the last 12 months or so, we were around 140012 months ago, a little bit more than that, and we're now sitting somewhere around, what, 12 or 13 something, right? so that range, are we going to stay in that range? >> it has been range bound and i think it will continue to trade in a range. there are some very big macro hedge funds that have taken a bet against gold. interest rates go up, the dollar will go up and that will naturally push gold down. they're correct in that. and i think that's why we're seeing gold pullback at the moment. but i think there are a lot of people in the world that want to see gold remain over $1,200 an

ounce. a lot of central banks are still buying gold. >> do you think the russians are buying gold? >> they are buying gold. they bought 55 tons so far in the first half and i'm sure they're being more and more of it. the chinese, too. why would you want to -- would you want to put all your funds into u.s. dollars? americans have control over what you do with those dollars going forward. i think they'll be diversifying their portfolio. and the equity oil in government showing house easy it is to liquidate your gold. you go to goldman sachs and say we'll lend you the gold and they sell it immediately for you. >> john, good to see you. thank you very much for your time this morning. more dangerous than al qaeda, u.s. defense secretary chuck hagel has warned about the dapgers imposed by the u.s. state. hagel describes isis which occupies territories stretching

from syria to northern iraq as sophisticated and well funded. he said that the u.s. military, which has continued its bombing campaign against the militants is in the fight for the long haul. >>. >> the president and i are very clear about the challenges ahead. we are pursuing a long-term strategy against isis. we should expect them to regroup and stage new offenses and the u.s. military's involvement is not over. >> now, hagel added that the pentagon may have to review its 2015 budget plans as it ramps up the fight against the islamic states. now, our mid east correspondent hadley gamble joins us here in london to talk more about this. hi, hadley. both the actions and the rhetoric from both isis and the west have been ramped up here within the last week, i think

it's fair to say. >> absolutely. and one of the questions that people in the u.s. are asking is where is the president on this? we saw chuck hagel and martin dempsey coming out saying this is the biggest threat since al qaeda o just as big of a threat. and the president unfortunately we're seeing him on the links in martha answers vineyard. the problem with that is that doesn't send a clear signal to the region. our regional allies, saudi arabia or to the iraqi government itself that there is a strategy and a plan going forward. the pentagon is reallocating budgets, trying to figure out how they're going to pay for it. this could be a midterm election, as well. they're talking about giving more money to the pentagon. that's something they've been scaling back on over the last few years under the obama administration. this is a bidder strategy fop everyone involved. >> we're hearing that the germans and the french, they're

decidings to arm some of the kurds, correct? >> correct. i was speak to go a senior iraqi diplomate and he was telling me we look forward to seeing more involvement from the germans, from the french, as well, in items of arms sales. at some point, everyone is going to be looking at when this fight comes home, when this comes back to the west, what we're going to do. and we have been hearing from martin dempsey is that he understands this is something they can't tackle unless they go to syria and do it, as well. that opens up a whole new can of worms for everyone. >> it stands that we're seeing more dwopgz between the new iraqi leadership and the u.s. al maliki having stepped down, though. >> i think there's some of that. as you know, iraqi politics is quite convoluted and it's going to take months to form this government. things are going to continue to fall apart without the help of the u.s. fighters, these pilots. this is an issue where, you

know, we know there are hundreds of americans on the ground there, these strategies, these people that are supposedly supporting an effort by the iraqi government to go the country back under control. what i'm hearing from people on the ground is they're still looking for the u.s. to do more and a timeline. >> hadley gamble joining us with the latest on what's taking place in iraq, thank you. malaysia paid tribute to 20 of its citizens who died on malaysian airlines flight 17. the bodies were received with a military ceremony, as well as the king, the queen, the prime minister of malaysia was there, as well. 43 of the country's citizens were on the flight shot down over the ukraine last month. there's still 23 additional bodies set to arrive, only ten of which have been identified so

far. russia has warned kiev not to disrupt aid deliveries to the ukraine after moscow confirmed that an aid convoy is moving towards luhansk. all excuses have now been exhausted. angela merkel will reportedly be calling on ukrainian president poroshenko to reign in his campaign against russian rebels in order to avoid a backlash from the kremlin. angela merkel will travel to kiev tomorrow to talk with her ukrainian counterpart. meanwhile, poroshenko says he will call on president you putin to stop pro-russian rebels. germany is set to approve the sales of awe to a russian

investor, according to reuters. that's despite sanctions imposed on russia over its role in the ukrainian crisis. it would be looking at blocking the sale, expected to be worth more than 5 billion euros. and stocks have opened near a record high in india while the rupiah continues to strengthen on friday after the highest court gave the green light to the president elect. the court upheld last month's election results, rejecting attempts to force a rewrote. joining us on the lines is douglas ramash. good to have you with us. so this election victory has been upheld by the indonesian court. by the looks of things, the market is liking us. >> yes, that's right. and i think it's mainly because the ruling underscored that indonesia's democratic political system works. and that the election and the

subsequent complaints adjudication process was an issue that's previous and previously legitimate with voters. so this has been very well received, indeed, here. >> what do you think with all those main strategy is going to be now? what are you main points that he will be looking to push through? >> well, i think he comes at the presidency from a very different perspective. he's the first president in indonesia's history who doesn't come from an elite background. and he's the first businessman as president. i think that's going to shape some of his early policies. he's obsessed with reforming the bureaucracy, reducing the burden of licensing regulations on the business climate. so that's probably good news for the -- it's very good news for the investors and for the investment climate. >> and do you think we'll see foreign investment into indonesia as a result of this? >> well, that's a great

question. i don't think we will. not initially. because as president, he only had very limited appointment power. there's only about 100 slots that he can fill on his own. and he's got an equally unreformed bureaucracy that would be opposed to many of the reforms that he wants to put into place. so i think it's very -- he doesn't get that until october 20th. .after that, he faces what looks like a rooming fiscal and budget crisis that he'll have to deal with first. >> douglas, thank you very much for being with us, douglas ramage managing director at bower group. just to get you up to speed with flashes hitting our wires, with regard to russia, reuters witnesses are saying around 20 aid trucks have crossed the ukrainian border. they're saying the trucks have been accompanied by a small number of russian rebels, always well. we'll be keeping an eye out on

this story on whether the aid groups have been allowed to cross the border and apparently according to these witnesses they have. kiev has delayed the aid delivery, but they're continuing to ramp up the tax in eastern ukraine. still to come here on the show, snow isn't falling yet. could you be left out in the cold, though, if you're not targeting potential christmas customers now here in august? ebay uk is advertising that next. find us on e-mail, find us on twitter, we'll see you after the break.

hi, everybody. good morning. u.p.s. revealed it was hit by a data breach. u.p.s. says that the malware has been eliminated and that all branches are safe to use. earlier this week, community health care systems had a data breach that saw 4.5 million customers data stolen and the grocery store chain super value reported a criminal intrusion into its network a week earlier,

impacting 18 on stores. what do companies and consumers have to do to protect themselves from hackers? ollie is with me. good morning. >> good morning. >> how common is it to see cases like this where somebody hacks in and takes a whole bunch of information? >> ever present, unfortunately. we're seeing a transition where people would historically attack websites and then move to retail establishment establishments. the events have always happened and disclosure has been the issue. >> what could i as a business do to avoid this and what can i as a consumer do? >> definitely, what we see is

they have to take a more wholistic approach. security has been a problem and we very much see it's a human and an i.t. problem. training as much as technology and taking that encompassing view. as a consumer, you are at the beheft of the consumers and the organizations that you do transactions with. so i think we're going to look to see more of a regulatory impact to make the fundamental shift that we need. >> yeah. they're imposing the cyber security laws. does that make a difference? >> they will, but unfortunately we're at the stage at the moment where we work in a free market and people only understand the penalty of money. it's quite clear that businesses, when left to their own environment, will take a

little more risk than what they should do. stronger enforcement will help. >> how does it work briefly, that if i as a business, is it along my side? >> the law is on your side in terms of trying to catch the perpetrators, for sure. >> ollie, thank you very much for being with us. it may be back to school season, but if you're in the e-commerce industry, the holiday season apparently starts right now. my next guest is saying that you're missing out if you're not targeting your christmas customers from the 1st of august. john mullion.? is that how i say your name? >> close enough pp. >> is the director of advertising at ebay. welcome. so i have to get in on the christmas action now if i want to properly make the most of it. is that the idea? >> yes.

well, what we've seen, louisa, is that online shopping has become more and more convenient. as a company, we'll spend an unprecedented 45 billion pounds online this year. one of the resulting effects of this trend is that consumers are finding the comfort of starting their christmas gifting journeys earlier and earlier in the season. being at the heart of the uk for the last 15 years, what the analysis has seen that in the period of the 1st of august through to christmas day, we saw over 71 million searches for christmas related items. >> so how much of a difference, how much of a jump is there for people searching for the word christmas in july versus august? >> august is a key im infligz point. we saw last year a 153% month on month increase in july. what that tells us is despite the fact that there are still 124 days until christmas, there's a huge opportunity for retailers to tap into this early gifting mind-set or this segment that we're calling long listers

to influence their purchasing decisions early in the game through more targeted campaigns. >> i did the background research. i think you think it is more important to see what people search for and to kind of use that data versus what they actively like or what they -- you know, i guess -- you happen. so is that something that you use? >> yes, well, looking at people's shopping behavior, we describe it as being a deserved insight where rather than -- that someone likes something and maybe in the markets to purchase someone else, if someone is searching for a car, surely there is a licklyhood that markets are looking for a car. it's something to observe this commerce data to think about how you do a better job of target your promotions for christmas. >> it's hard to know how you best target an audience. i was looking at some of your comments and that you're finding an older audience is buying more

ski gear that a particular part of the younger aut audience. >> the take key away from that data point is that behavior difference by category, it differs by category. category like home and garden, diy, and toys and games. we saw the largest spikes in activity in august. we didn't see similar opportunities until december. consumers are different by category and actually for every long lister that we see, we are seeing very friend etic last-minute customers that grabs a gift very late in the game. >> i was surprised there because i would have assumed -- and i'm very, very sorry -- i would have assumed that it was the men who are the ones buying the last-minute presents, but actually you say it's the women. >> yes. we actually saw 32% more searches for christmas rated

items in the week proceeding christmas by women than we did seen by the men. so, again, some very interesting insights derived from looking at this observed commerce data to see what could be maybe a targeting campaign. >> the bigger news with ebay is that we're hearing reports that it might spend off pay pal. do you know anything about that? >> we're committed to the sustainable growth in both companies. we are committed to doing the right thing by our customers, our employees and our shareholders. >> i thought you might say something like that. i also noted that you're very popular on ebay selling rare rap albums, apparently. >> yes. it's one of the ways i got my start at the ebay through university. i was finding rare rap albums and buying them and selling them on ebay. >> we have to talk because i

love rap. >> director of advertising in the uk at ebay. we appreciate it. thank you. just getting some breaking news out that i want to get you updated on. russian investors group leder one says the german government has approved the rwe sale of oil and gas to letter 1. we were talking about that earlier. in other news, united airlines is trying to win the har of first class travelers with their stomachs. they're replacing small snacks with full meals. earlier we asked you if better food would book through a specific airline. they say don't drink too much when you're flying, right? join the conversation here on "worldwide exchange." you can find us directly on e-mail, worldwide@cnbc.com. find us on twitter, @cnbcwex or

directly to me, @louisabojesen. we've been talking about jell-o. not very good news for jell-o, because the jibbery dessert sales have slipped almost 25% from a year ago. it's falling by the wayside incidentally because greek yogurt surges in popularity. write in and let us know if you like jell-o. still to come on the show, when was the last time that you indulged in a snickers or a kit-kat? did you notice the smaller size of the candy bar? we'll hear from one guest would says shrink is the elephant in the room. more in the next hour.

hi, everybody. good morning. welcome to "worldwide exchange." i'm louisa bojesen. investors are sitting on the sidelines amid janet yellen's speech. home depot, cleaning house. and ebay shares rallying on speculation that the e-commerce giant is eyeing a spin-off of paypal with a deal expect as early as next year. and u.s. defense secretary

chuck hagel saying the u.s. may be forced to review its budget warning that a fight against isis could be more dangerous than against al qaeda. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. hey, everybody. welcome back. if you're just joining us, thank you very much for tuning in to the second hour of "worldwide exchange." we still have a lot on our plates today. we don't have any publications of european economic data, but we are squarely focused on the jackson hole symposium and especially what the fed chair janet yellen is going to be saying. in the meantime, though, glancing at the u.s. futures and the implied open, we're looking at a flat future. as we saw in europe this morning, the calls were for a flat market start and we've held on to a flattish scenario.

the ftse, 6773, the xetra dax, cac 40, and ftse mib, all down around 0.5%. ten-year in germany, below 1% once again. we went below 1% for the first time in a week, a week and a half ago. nevertheless, we're seeing that once again today. the buying across the ten-year paper, that's what we're seeing ahead of the fed's symposium or the fomc symposium. what have the markets in asia been doing? sri joins us out of singapore with the wrap-up of the latest. >> hi, louisa. we closed wall street overnight with the s&p 500 hitting a new record high. the data wasn't bad, either. that's a backstop along with these markets. that was a very locum vikz

trade. and no one quite frankly is committing to any major positions just ahead of yellen's speech at jackson hole. so it's much of a holding pattern and we're not seeing much in the way of movement above the flat line or below the flat line of 50 basis points. i want to talk about the china markets. after the pmi number, the flash estimate from hsbc manufacturing activity, at a three-month low. we saw a big sell-off of the hang seng. but the market has come back and the shanghai composite has recovered, as well. prebl investors are front running the idea of more front runners coming into the system. hsbc put out a note today saying in all likelihood, we could see some bolder action from the

pboc, a cut in the main policy rates or even a cut in the rrr are something that for the hsbc is looking at in items of policy measures. so all in all with all of these markets, louisa, just marking time really ahead of janet yellen which is the maybe event for this week, of course. back to you. >> sri, thank you. we were talking about jell-o last hour. >> jell-o? >> yeah. >> loads of people say trying mixing cherry, orange, raspberry jell-o with cranberry relish for an awesome side dish or dessert. use less water. whew! >> i'll stick to strawberry, louisa. it's a staple on our table at birthday parties. i remember it well when i was in short pants. >> i know. and no to the person asking whether i do jell-o shots. i never have, actually.

i never have. anyway, wibl, wobble. thank you, sri. do you want to tell us about your jell-o fantasies? feel free. the u.s. dollar remains slightly lower ahead of janet yellen's big speech with many expecting her dovish stance. boris lossberg join us us. boris, i have to ask you about jell-o. are you a jell-o fan? >> i was going to tell you that i think the only -- the only proper way to use jell-o is in a jell-o shot. i don't think anybody would ever actually eat jell-o any more. >> i don't know. >> you should try one. >> i'm not a big drinker. but anyway, boris -- >> neither am i. >> let's talk about the markets and janet yellen. >> gellen for yellen. >> exactly. do you think anything exciting is going to come out of this

symposium that we haven't heard before? >> the best line i just read about this whole thing was prepared for the unexpected, but expect the expected. which i think summarizes the situations relatively well. there is a small chance that she could sound more hawkish. the key is sound, not act. the employment situation is clearly sustainable and improving at this point, especially the single best by the way marker for the u.s. economic health has been the weekly jobless claim numbers and those have been consistently strong. they were below 200,000 yesterday. so i think a lot of those data points have been quite good for the fed. but having said all this, i think she still very much understands that until you get any kind of wage pressures in the system, its unlikely tough little wage inflgzary pressures. so she may just sort of give a nod to the idea that u.s. economy is doing better. but i don't think she's going to

signal any immediate move on a rate high expectation. that may be just enough to give a dollar a boost. >> so you think, boris, that we're not seeing inflation? >> oh, no, absolutely. and i think it's very, very funny because you had plosser on yesterday, and plosser has been an inflation hawk since is 2008. and i think the more interesting question is why have al of these people who have been screaming inflation and none of it has happened have been so wrong? and the reason i think is because the people who have anled this particular economic recovery right have used the japanese model, not the typical model of general recoveries. in other words, this is not 1970s u.s. economy with wage push inflation and high oil prices that are going to create all sorts of problems. this is much more like what the japanese had which is a deflationary situation where every kind of recovery does not

translate into massive uptick in inflation. and she wrb i think, is very much following that type of analysis. >> you how do i trade, boris? do i keep my money in the market? do i put more money in, take money out? i think from an equity point of view, it's still very, very conducive for a positive continuation in the markets. although, obviously, everybody is pointing out, and i think rightly so, that we are entering into a very ugly cyclical time, which is the september/october time when we tend to have lots of dips here. beyond that, november tends to be a great recovery time in the markets. i think for the u.s. side, the equities side appears to be relatively steady. from the dollar side, i think what's intpg here is you are starting to see a tectonic shift in the forex market. in other words, the dollar i think has bottomed out against the yen and is still continuing

to do relatively well against the euro. having said this, if we have a dovish statement from her, she does not acknowledge and she basically signals that there is really no -- even considerable change on the fed, in other words, not moving from dovish to neutral in any way, shape or form. there is a potential here for a short covering rally in the u.s. but the euro, in my opinion, remain aes sell to rally mode. the dollar looks to be the stronger currency into the end of the year and it looks like it's going to rally further, definitely. >> boris, thank you very much. people writing in, we were talking about airline food. united has upgraded their food on the airlines. would you choose flights based on what type of food they offer? >> here is the trick. you always ask for kosher or vegetarian. ask for anything that's out of ordinary and you'll generally get a better meal than you would regular airline food.

>> avenue, somebody that's thought about it. >> you see please including the story united as cut their meals on flights. there's been issues that have worried travelers from guam. but yeah, i mean -- i've been on long flights with like, you know, no more than an apple. it is tough. airlines have really cut back. think like a woman, always prepare for the unexpected. . boris, thank you very much. good morning to you. now that we're allowed to have fun, it's good to see that we're having fun. let's give you a look at what else is on the agenda in the u.s. today. slow summer friday is on tap as we hear earnings reports only

out from two retailers, footlocker and anne taylor. the action picking up next week because looking ahead to monday, a bunch of pmi services numbers, a read on new home sales and the latest from the dallas fed survey. looking at some of today's other top stories, ta shake-up at home depot, tapping craig menar as the new ceo come the first of the year. he's work in the retail industry for 34 years. that's a long time. the company's current ceo, frank blake, will be serving as chairman. the company closed a little higher than yesterday. >> between 2000 and 3011, the report shows most americans are

still worse off now compared to the previous recession years. part, old friends is never easy, but find out why investors are cheering ebay's potential pinoff of paypal. stay tuned for that. keep your e-mails and your tweets coming through.

hi, everybody. good morning. these are your headlines. another record setting day on wall street. investors countdown to janet yellen's speech at jackson hole. home depot is tapping a new chief to become ceo. and ebay shares rallying on speculation that the online auction site is looking seeking to spin off paypal. so u.s. defense secretary chuck hagel has warned of the imminent danger posed by the states as they look up to ramp against the group. he said the u.s. military, which has continued its bombing campaign against the militants is in the fight for the long haul. >> the president, the chairman

and i are all very clear eyed about the challenges ahead. we are pursuing a long-term strategy against isil because isil clearly poses a long-term threat. we should expect isil to regroup and stage new offenses and the u.s. military's involvement is not over. >> now, hailing added that the pentagon would have to review 2015 budget plans. hadley gamble joins us now here in london. hi again. it might be too good to recap some of them, some of the main issues taking place now. >> essentially what we had is the united states finally coming out and saying this is something that isn't going to be taken care of quickly. just a few air strikes here and there, 50 or so, that's not going to be enough to combat isis, isil, whatever they're calling themselves at the time. we're going to have to do more.

the french articulated that we need to have a meeting, an international meeting on the crisis, germany said they're going to continue to sell weapons. the united states, of course, and many dip low mats are articulating that they haven't heard a strategy from the u.s. yet. there's no name for the operation happening right now. they're doing everything they possibly can to be there and to be present and doing something about isis without actually calling what they're doing a present. so i think what you're going to continue to see from the region is a question about whether, you know, the united states is committed and how they're going to go forward. >> the u.s. wanted to come out of iraq. they have to get involved even

though they don't want to, right? >> yes. this is one of those rare instances where the white house has seen it quite wrong. you're seeing them saying we're in the for the long haul, talking about the isis problems and the president was on the links in martha's vineyard. there's a lot of questions coming from congress. i mean, the last thing that they want to do is to come out and say, you know, we are for or against doing something where, you know, americans could actually be targeted. and so, obviously, this is a problem for both sides of the aisle. >> hadley, thank you very much for joining us. hadley gamble there with the latest on what's going on in the middle east. still to come here on the show, guardians of the galaxy,

well, that's leading the u.s. box office to a record august. will it be enough to save a lackluster summer for the film industry? we'll take a look, coming up. having the cloud allows us to rapid prototype a lot of ideas.

being able to pay as we go was crucial for a start up. having to fork out a lot of money up front was risky. you can launch a feature really quick, and if the feature doesn't work, we haven't lost anything and we can have something up and running in days. and this would not be possible without the cloud. we are now supporting over 25 million users each month. ideas can be tried and tried again on the ibm cloud. the ibm cloud is the cloud for business.

hi, everybody. welcome back. very flat stateside on the right-hand side of your screen now. european markets are called flattish. a little down within the last hour, hour and a half or so. ebay closed yesterday's session up by almost 5% on reports it is considering a spin-off of its paypal unit. according to a neck news website, the potential paypal ceo candidates were told they were thinking about a spin-off that carl icahn has long called for. josh lipton has filed this report. we'll get you that report in a bit. but he did file a report. we'll find it for you. let's talk about something else, though, because the u.s.

box office, up by a record 18 pirs performance and "teenage mutant ninja turtles." however, the summer as a whole was not very strong. it hasn't faired as well. 2014 could be the beggest year on year decline in three seasons. welcome, george. >> good morning. >> why aren't people going to the movies this summer compared to last summer? >> we're talking about fatigue. expandables three, the latest transformers, etcetera, some people must be deciding we're busy with other things. maybe we stay home and sit this one out. you go a little of early ones these days.

>> let's talk about some of the top performers at the moment, then. the transformers, age of extincti extinction. >> it has done well this summer. a lot of times people think the certain movie, it seemed like it's done well for paramount. but it seems like it's playing well globally. so it's done very well internationally. if you compared it to last summer, they have meat about $400 million. we're a little bit in the hole this year compared to last summer. >> again, the second one on the

list there, "the avengers." >> that was two years ago. that did so well, that it made more than $620 million. and compare that to this year's show though. >> as you can tell, i haven't seen much. >> do you see many movies? >> the last time i was on a flight and, oh, yes, it watts a romantic comedy. >> a lot of friends, too much work, sdrangz, not enough time. >> that might be the case this summer, it has been a busy murm. harry potter, the harry potter and the deathly hallows part two performed very well over the last five years. this year you don't have a airy -- the one thing about the harry ptder froiz, i think what

he said was kind of an ancient people care more about new. guardians of the galaxy is doing really well. a lot of people have said this. oh, it's a new creation. i haven't really seen much. it's kind of original takes. >> i haven't really seen in between those two yet. the biggest opening weekend here in the uk this year. i'm looking forward to that. that's good. in the u.s., lots of people have seen that property. >> in between us, too? >> i think i actually saw an early screening. i'm an old fan. i think a lot of people my age, in their 40s, will take out their kids and go see that. >> i'm way too young. >> no, you wouldn't know about

this. >> no. thank you very much. beauty is only skin deep, so the saying goes. a super market campaign is promoting purchasing ugly fresh foods to cut down on waste. twisted lemons, you can see that picture on the screen, apples. get the full story on our website, cnbc.com. also still to come, we hear from one guest who says shrinkflation is a big elephant in the room at jxon hole.

hi, everybody. good morning. investors sitting on the side lines ahead of janet yellen's speech at jackson hole. home depot cleaning house, appointing retail chief greg meneer to take over at ceo. and ebay shares rallying as the e-commerce giant designs a spin off of pay pal with a deal expected as early as next year. chuck hagel is saying the pentagon may be forced to review

its budget to fund the fight against isis warning the islamic state could be more dress than al qaeda. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> hi, everybody. welcome back. if you're just tuning in stateside, welcome. glad that you're joining us. this is what we're seeing with regard to how the u.s. markets are set to open. we were looking at a positive start. then it flat lined a bit. we're still looking at a flat start to the markets. a flat to slightly higher start than earlier. looking at our european markets this morning, we were called flat, as well, on the open. we then saw a little bit of a rise and now we're seeing a little bit of a fall.

net-net, it's flat session that we're looking at. the slight drop on the ftse off nearly i0.5% or so. keeping in mind that we saw a positive close yesterday. what goes up must come down and we're very much in the wait and see mode ahead of janet yellen speaking. my colleague sleeve liesman has been following the issues. >> the question is whether the economy and that rate decision are strong enough to warrant earlier rate hikes. philadelphia fed president charles plosser thinks it's time for the fed to move. >> i think we're running a very risky policy, if you will, given where the stance of the economy is and seems to be going. i would prefer us to begin raising rates sooner and raising them more gradually. but the longer we wait, the more

i see it as us having to raise rates very quickly in response to a stronger inflation -- >> he says he could see rates rising sooner, but knowing what he knows now, he thinks the current consensus of july 2015 is about right. >> i think thinking around summer to 15 for the first rate hike is a roent guess given where we think the economy is going and how much progress we're making towards our goal. but again, it really depends on the data. if the data gets stronger, it could be earlier. if the data is disappointing, it could be later. other issues on the mind of policymakers include whether they should be raising rates to ward off risk taking in markets or one of zero interest rates. whether that should be done with regulation or by raising rates or whether the market is too complacent in thinking rate hikes are a year away. >> the economy is already

showing signs. as we look ahead, i think it signals a very important decision point for the committee to say we will have to move at some point. i don't want us to be behind the curve. >> it will be janet yellen's first address to the jackson hole group as the head of the u.s. central bank. it will be followed by european central bank president mario draghi who can provide some measures he might take to address the renewed economic weakness on the continent. in jackson hole, welcome, i'm steve liesman. >> pippa ps mongrain is with us for the next half an hour.

pippa, really good to see you. >> you, too. >> you're usually in wyoming, as well, as part of the meeting. >> yeah. i've been there for the last ten years. this is the first year that they did not invite any partner par participants. and i think it's a very, very decision. >> what is the chat going to be about? >> it's a big punch out between the fed and the emerging market banks. and the central argument is discretion and do we have inflation or don't we? and why does the data not reflect it? i think there are two days. one is this idea of shrinkflation. we're seeing the size go down. you are experiencing inflation, but it's hidden from the data point. by the way, a great story about beef filler, right?

we hit a record all-time high in the price of beef. there's something horrible called pink slime which is made from all the worst parts that have to be treated with ammonia. they're filler. because the price has gone up so much. so the next step after you shrink a product, the next step is an actual price hike. for example, you were talking about jell-o, right? jell-o, jam, schmuckers jam has just announced a 9% price hike. and this is the point when the price hikes come, they will not be small and in keeping with the inflation levels. they are a multiple. we're seeing that with things here in the uk. virtually it's a multiple. then the data points will catch up and it will be sudden. >> during the show the last couple of hours, do you think there is inflation? a lot of people say there isn't. and we're not in kind of an

inflationary environment as we saw in the 70s with higher oil prices and prices rocketing out of control in serp areas. but you're saying the fed is hiding -- >> i don't think it's a deliberate thing. the models can't move until the price hikes are announced. i'm saying you can see that building in the system by companies trained to pass by giving you less for the same old price. it's not that the models are wrong. it's that they can't move until the price itself moves. but we are starting to see this. by the way, look at this cup, the united kingdom. how interesting that the bank of england says there's no inflation whatsoever and yet the number one political issue going into the next election is the rising cost of living. so this is the same in the u.s. everybody on in long weekend is going to spend the whole time talking about the rising cost of living from tuition and health care costs. i just put up on twitter for

your audience a chart that david stockman put together of how much more it costs today than ten years ago to live. every price is up 50% to 100%. so everybody has been talking about the price hikes. the fed is saying there's nothing going on. janet yellen's speech, the most important thing to listen for, but i don't think she'll articulate it is that she isn't aiming at 2% inflation. she thinks we should go to 2.5%. she thinks we've been below average for so long, we should go above. basically she's going to hint that we shouldn't act for a long time. >> pippa, you are with us for half an hour. you're out with a new book which we'll talk about in our next chat, which is coming up. get your e-mails in. if you have any questions, worldwide@cnbc.com. @cnbcwex or direct to me,

@louisabojesen. pippa is on twitter. >> @dr.pippam. united airlines are trying to we know the hearts of business travelers through their stomachs. they're replacing small snacks with full meals. passengers on flights will be getting meals like chicken mozzarel mozzarella. the upgraded service is expected to begin in february. those of you writing in saying that you do appreciate good foods on flights. do you fly? >> i try not to. bad news for jell-o. apparently there's auto jijel called j-e-l-l-o is alive.

do you know the jingle? yes. >> it may be a jingle of the past. the delicacy is falling by the wayside. incidentally, as greek yogurt surges in popularity. all i can say is that you're in definitely a wobbly bunch. lotsdz loads of you have jell-o comments, as well. talking about inflation, we did get a kit-kat. >> very good. >> we were going to prove the point that things have been getting smaller, right? yeah. i think this is the same. you're making about three quarters of the height, three quarters of the width. the key thing is what is the deal there? >> you can see tuna and car dean

cans, there's less notice than before. we've seen this from companies like kimberly clark making consumer products all the way down the line. it's everywhere once you look for it. >> okay. we'll talk more in a second. in the meantime, gm recalls saga is deepening as reports emerge that prosecutors are now looking into misconduct by the company's lawyers. we'll give you the details on that. after the break, you're watching "worldwide exchange." good morning, everybody. see you in a second.

hi, everybody. welcome back. home depot is tapping its retail chief to become c he o, but will a dose of home improvement help sales? and ebay shares are rallying on hopes that the company is seeking a bidder for paypal. so, a bit of a shake-up at home depot by the looks of things. the home improvement store is tapping craig meneer come the 1st of november of this career. he was named president of the u.s. retailer in fed and he's worked in the retail industry

for a long time, for 34 years. the company's current ceo, frank blake, will be serving as chairman. the company pretty unmoved in yesterday's session. more bad news for general motors, the latest in a massive recall on ignition switches. we're joined on cnbc's headquarters with more on that. hi, bertha. >> hey, good morning, louisa. several investigators are now looking into whether general motors legal department concealed evidence from regulators about the that faulty ignition switch which led to a massive recall. according to the "wall street journal," that probe being led by the u.s. attorney's office in manhattan and the fbi, gm's faulty piece has been linked to 54 accidents and at least 13 deaths. this latest round of scrutiny to gm's legal department at the largest investigation into the misconduct of the american automaker. so far, the company has

dismissed 15 employees, fighting their failure to take action. the company tells the journal that they are cooperating with the probe. it is early on, it's not clear if it will result in any kind of charges in the end. gm shares right now are fractionally higher at this hour or closed yesterday, rather, fractionally higher. yesterday they it is a very difficult thing to go after attorneys because of the issue of attorney-climate privilege. how much information they will be able to get. very tricky prosecution. they are looking at a potential criminal probe here. >> bertha, thank you very much. i have to ask you, as well, are you a jell-o fan? we've been talking about jell-o and their sales not doing so well. >> you know, i saw that story. i don't think i've had jell-o in a million years. i like joe girt, sorbet, ice

cream. it was something to eat when i was sick, you know, when you were little. your mom would give you ginger ale and jell-o. >> mine didn't, but i think that's the issue in the u.s., people get sick and someone gets sent to deal with them. but thank you, bertha. i want to update you on some of the latest news coming through on russia. we're getting live pictures now of trucks in a russian aid convoy crossing the ukrainian border at a checkpoint in donetsk. around 70 trucks have passed through. earlier, moscow warned not to disrupt the deliveries, saying all excuses had been exhausted. angela merkel would reportedly call on ukrainian petro shenco in order to avoid a backlash from the german

kremlin. the german chancellor is kwernd this will -- to saver face. mean wile, petro poroshenko says he will call on vladimir putin to stop his support for the pro russian rebels. pippa is with us fort this full half hour. and a key -- of your new book which is out is the changing phrase of geopolitics because you suggest that we're seeing the fed's easing monetary policy, that it's driving emerging markets and there by creating what you call the peace dividend into conflict. explain a little bit how that works and how you see geopolitics entering into that. >> sure. from a chinese and a russian

point of view, the two biggest critters, their view is the stril admission -- >> that's true when rug to the grocery store. their view is this creates enormous pressure on their population. that makes them less competitive, pushes manufacturing offshore, back to the u.s., the u.s. this is now a mortal trend. this is not just a technical economic policy issue. they have to see those reaching for the right price. >> your book, which is called signals, to break down the social contract and the rise of geopolitics, has had phenomenal reviews so far. it's a launch, which is

happening right now, right? >> it just went live with preorders yesterday, so -- >> goatboorg, uk department president eu says there's a jest on ground breaking. was the gist of the book? >> number one, economic signals are everywhere, in magazine covers, in military events. it's not just about fj markets. i designed it to empower regular persons, to understand was going on in the world economy. that's the first poip. the second point is this is beginning to influence geopolitical responses. we've had russian fighter jets getting within 100 feet of a u.s. spy plane during obama's visits to japan. these near misses will be important. these can play out many ways. one of them is what we see in

ferguson, as well.. i have to say, i finished on a highly optimistic note, is innovation. and we're going to get tons of innovation in the coming year.

hi, everybody. welcome back. we're showing negative territory across the board, but we close on a higher note, as well. yesterday we were waiting for janet yellen's speech at the jackson hole symposium. tau wore widz joins us from

average joe option.com. how are we trading today? good morning. you've got janet yellen and mario draghi. i don't think we'll see a lot before they speak. the s&p has been up eight out of the last ten days. they're building out a lot of specation and what the fed has to say here today and the central banks around the world. they better come up with something really good because if there's a lot of expectation into these, what they're going to say today. >> do you think we should still be putting money into the markets at this stage, todd? >> no. i'm shocked that we can't identify what the fed and the central banks around the world are running a legalized ponzi scheme.

we see china coming back in. some of these are trying to race their currencies down to the bottom. they're making 23% less money than five years ago. yet they're paying 50% more for goods. very challenging market right now. >> at all, thank you very much for being with us. have a good day. i know it's early for you still, todd horwitz, author and founder of averagejoeoptions.com. pippa is still with us. a viewer write in and says from my perspective, inflation is still less. >> sure. today we were having protests over the rail goes up 3.5%. we were going to have to pay more for your ticket.

cadbury announced they took two squares of chocolate off the chocolate bar, but they sell it at the same price. i think once you as a result to look for it, you'll see it. >> can you have inflation and deflation at the same time? >> absolutely. my father was the economic adviser in the white house during that period of history when we last had it, which was the early 1970s. and it can last for a prolonged period. a tussle between the two forces. >> okay. and, again, the book is called signals. the breakdown of the social contract and the rise of geopolitics and it's out around -- >> it's on our website. so if you go to pippa signals.com, you'll see it right there. >> pippa, thank you so much for coming in. founder of drpm group. coming up, we'll be speaking first on cnbc to the st. louis fed president james bullard, 8:00 a.m. eastern, 1400 cet. also the atlanta fed president, dennis lockhart.

that's it for today's show. thank you for watching "worldwide exchange." i will see you later on for closing bell.

good morning. bird watching in jackson hole, fed chairman janet yellen set to make a major address in the mountains of wyoming today. could a more hawkish tone of the dove put the summer rally at risk. and a slam dunk in the sports apparel business, rival under armour and nike in a fierce fight for kevin durant. hundreds of millions of dollars at play. it's friday, august 22nd, 2014. and "squawk box" begins right now.

>> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen. andrew ross sorkin is off today. we have breaking news out at this hour. reuters is reporting about 70 trucks from a russian aid convoy have crossed the russia/ukraine border. the trucks were accompanied by a number of pro russian vehicles. the russian markets on this news, if you take a look, you see right now are down by about 1.5%. we've been keeping an eye on the u.s. equity b futures right here. you can see rite now, things look relatively flat. of course, we should point out that we have a lot of momentum this week. this as the s&p is coming off its record close since july earlier about a month ago.