sleep. only at a sleep number store. good morning, everybody. welcome to "street signs." i'm louisa bojesen. >> and i'm nancy hungerford. these are your headlines. the anticipation. awaiting janet yellen and jackson hole. hillary clinton slams price gouging in the drug sector. it's a beat in aisle two. expectations on top and bottom line in the second quarter as the grocerier sales rise both in

home and u.s. market. back in black, best ever second quarter profit. and the death toll from the earthquake in italy rises to 247, according to the civil protection agency as rescue teams work overnight to search for survivors in some of the hardest hit towns. good morning, everybody. welcome to "street signs." >> hi, nancy. >> hello. >> good to be back with you. >> good to see you too. just hitting wires the. german ifo 1.12.

also a bit light. the consensus more than a bit light. consensus from reuters 8.5. expectation index. one a lot of people look at in terms of you can't help what already happened, but 101 in august. 102 .5 currently. >> the brexit effect. the fact the real event has time to come when you look at the distance we're waiting for article 50 to be triggered. overall the data has been decedent when you look at the gdp, pmi figures we've had. the data here. >> it has. nancy, you mentioned in the headlines, one of our big stories we've been following, the death toll from the major earth wake in italy has risen to 247 now.

rescue workers in the country they worked overnight to pull residents out of rubble in the worst hit towns, where entire buildings collapsed to the ground. bill neely of nbc news sends this report from the center of italy. >> reporter: it's the dead center of a broken town. bodies in the rubble, rescuers separate to save lives. was hit hardest by a quake that struck at the worst time of day, stopping its clock around 20 to four this morning as everyone slept. from this apartment they pulled body after body. survivors stunned and weeping. moments of hope too. this old man is on oxygen, but alive. three times reduced to rubble and dust by a quake felt 100 miles away. >> it's like a bomb fell down and there's nothing there anymore. >> reporter: just visible under concrete blocks, an 80-year-old

woman, her daughter killed, a rescue saying stay calm. another survivor is air lifted out. swaying above a down that's still shook. an eight-year-old girl was pulled out after rocking fragile building. the crowd applauding in relief. this was before and after. one of its elite jewels crushed. almost every building cracked or destroyed. >> what is the hope of survivors. >> the hope is there the life. >> reporter: the bodies lay outside a few families tenderly saying good-bye. it's a small town. everyone knows everyone. now amid broken buildings, broken people and a rising death toll. many survivors here are sleeps outside overnight. they don't dare go back into

buildings that could collapse like this one, and they have good reason. the last two big tremors in italy, the strongest earth wake in the sequence was not the worst one so this could get worse. >> it's heart breaking. whenever these things happen. we're going to be speaking to someone later on. in terms of what the red cross can do. it's often very difficult to get help quickly enough to these areas because of where they're located and the destruction. >> and we know that prime minster matteo renzi will be meeting with the cabinet today about what efforts should be put in place. a lot of discussions going forward how to secure it will buildings. bringing the focus back to the trading picture here in europe, just over an hour into the session. this is the picture across the stock europe 600. seeing quite a bit of red there. that is breaking a three-day

winning streak we saw in europe. again in u.s. session overnight particular weakness in bio care health stocks. regarding the epipen and price gouging warnings that really we'll get into that. overall the trading story here, we are off just habit 1%. some individual stock movers in focus, particularly when you look at glen core. is german market also lower by 1%. the french cac trading with a similar raeng and the swiss as well as in the red by 1%. investors have been counting down to janet yellen. you have to wonder what exactly she can say to move markets one direction or the other. there you have it, sectors: basic resources off. health care continuing a trend

with stocks off 2%. auto, insurance, and financial resources all off by more than 1% as well. >> it's interesting ethically whether or not drug companies should they be allowed to set the prices themselves. should they not? who decides what a reasonable price is and throw into that as well you have drugs they can be used for multiple things. i can't remember the name. i saw someone recently you have a drug and from the industry -- you have a drug that works for an ailment and works for another ailment, but the price difference is massive for some reasons, but doctors won't except using the less expensive version for this other ill sglns you can't paint the whole sector. it's down to r and d expenses. as hillary clinton came out and said there is no reason for this price jump in epipen,

specifically. >> you're mentioning janet yellen and the fed. >> we're element there. >> the fed speckation. >> just over the day to go before janet yellen delivered her highly await eed comments. our colleague. >> reporter: as the fed meets at the annual retreat from jackson hole to debate policy, a raging fire 30 miles away obscures the view of the mountain. it's ha metaphor for the meeting itself which is focus on finding a framework to decide on interest rates. the fed survey said 60% think the fed lacks a framework. 47% say current policy is made based more on the latest economic reports rather than changes in the medium term outlook. some say thele fed has been inconsistent because the data itself has been inconsistent.

the problem has been that as they've been looking at the data, no matter which model you use, they haven't had a consistent period during which they could actually act in a consistent way to raise rates. >> as it is, survey responders have pushed back expectations for the next rate hike from september to january 2017. while rates are forecast to stay low, stocks are seen rising just modestly and next for the s&p hitting 2275 in 2017. modest stock gains come with modest economic growth. the main concern the fallout from brexit and overseas growth. add to the uncertainty the presidential election. it's gotten so strange, for the first time this election, it shows the economy is best if a

democratic wins the election. from uncertainty to overseas growth and outcome of presidential election, the clouds are thick enough to hide a clear view of even the immediate horizontal. cnbc business news. >> chris jefferys is joining us in studio. good morning. >> good morning. >> will they? won't that? >> the way i think about the federal reserve is that it's a bit like animal farm. we've heard a lot of noises over the last couple of weeks. really it's janet yellen. we think am rate increase by the end of year. being very careful to keep the long end of the core down. >> even with the increasing

dubbish fed speak women had, indicating that it might be good to err on the side of caution. >> we have eight districts pushing for a hike. that's higher than this time last year. i remember this time last year, the markets were priersed for about a 50% chance of rate hike by year end and eventually they delivered. it feels like groundhog's day. in the same place. the markets are saying it's only 50/50. >> let's say the fed surprises. how do you position yourself here? we think one of the key is u.s. dollar. the dollar has been going through basically a flat patch for the last few months. ralt hikes in the u.s. has kind of shifted market pricing. there are several pockets of

vulnerability in emerging markets. so the emerging market depreciation versus the u.s. dollar trade. want me to think about it and the other way to think about it is the short end of the u.s. kbreeld curve. we saw very few rate hikes priced in. anything that disturbed for the market. kind of directly pay off right there. >> what do you make of the gold trade specifically. we did see a dip in the gold minors. final pull back in the gold price ahead of yellen's speech here. indication she may be more hawkish. is that your expectation. >> more hawkish message is coming. gold clearly has been kind of pushed backwards and forwards by expectations of fed policy. also, i think so we have to just be aware of what's going on elsewhere. if you think about the central banks, it's still the case they're going to be buying a number in the region of $2 trillion worth of global government bonds in the next 12 months thachlt is kind of

directly supporting real assets we think. we put things like infrastructure and real estate in that category. >> you're saying what's the play, right? and all going to be focused, et cetera. what's the catalyst for us to stop the drive we're seeing in -- well, not just equity markets, but debt markets. >> the driver of. >> we've seen this continued push regardless of the noise that's coming out. if we were to get 250 basis points, will it make a difference? people continue to be investing at this point. >> ti don't think the 25 basis point is what matters here. it's the next couple of years. see the feds play slowly. repeatedly pushing down what they call the terminal neutral rate. there's emphasis we see on the fed about what they call long

run equal librium interest rates. the rate you're applying the investments shouldn't really be driven up too much. >> speaking of looking ahead with a longer term horizontal will of course be the question of inflation. it's hard to believe at the moment because central bankers are looking for signs of inflammation. is there a case to be made. >> on hips, yes. the u.s. flauinflammation marke a long way. if we are going to see this kind of flaugs push through, the u.s. is the first in line. it's first in line because of the wage growth. for example, if you look at measures from the atlanta fed, for example, if wage tracker announcing the strongest wage growth for the last four or five years. we've got core inflation already running above 2%.

so makes a lot of sense in europe we're searching for signs of inflation pressure. >> chris, thank you very much for waking us up. chris jeffrey, from lgim. you can e-mail the show. we are streetsignseurope@cnbc.com. you can find us on twitter as well. you can find us directly. i'm @nancycnbc. >> and i'm @louisaboyson. still to come here on "street signs," it is the a beat in aisle two. beating expectations on top and bottom line. digest the food retailers

numbers after this short break. >> also speaking to the portuguese finance minister coming up at 10:30 cet. see you then.

good morning and welcome back to "street signs." china has issued new rules aimed at curbing lending. a sector considered increasingly dangerous to the country's financial stability. let's get out to shri who joins us in singapore. >> reporter: i think it's a very tough knot to crack this one. you can extend that to the entire leverage in the system and debt broadly in the sob as

we make the transition from old economy to more consumer led growth. here inlies the probl in lies t not just shuffle the bad stuff from one balance sheet to another. this is still very much a work in progress. all moving in the right direction. for the banking sector has been freaked out by this. a little bit of a wobble on the shanghai. similar story for the property sector as well. they laid low. no great shakes though. we are off .30%. the poll injected liquidity into the money markets second straight day trying to calm down the jittery bond markets elsewhere. not a great deal of conviction. why would that be? we're in the middle of the summer dull drum and we are waiting on the head mistress, janet yell, who is due this

week. perhaps we'll get some clarity on the path the fed may or may not take. that's where we stand ladieladi backs to you. >> here's the fantastic things, not because she's a woman, which tends to be my mind. i'm a woman, i'm allowed to change my mind. >> plenty of indecisive men out there. >> you're right. even if she sends a clear message, she's allowed to change her mind again in a few months. >> i think it should be encouraged people are kwix to say they are losing credibility. they're flip-flopping, but you want the flexibility. >> anyway. round of russian earnings to bring you up to speed on this morning. rusal reporting drop in second quarter earnings due to weak aluminum prices. the russian metals giant warned it would brace for a to remain

under pressure. rusal also predicted a 1 million on the aluminum deficit in 2016. >> sberbank. posting a 35% rise in revenues. almost 5% decline in nonperforming loans. >> over at russia vtb. seven month mark object to form 2016. that compares to a net loss of 15 billion just a year ago. that comes as growth in net interest outcome. vtb shares have slipped by over 15% so far this year. the u.s. pressurery h rtread a rare warning. finalizing investigation into apple's ireland tax deal.

focuses on the company's transfer pricing. the commission has accused irish authorities of reverse opinions to help apple minimize overall tax. orange denies reaching deep with vivendi. it rumors surrounding the deal has brewed for several months now. orange shares are down 12% so far this year. you can see in the session lower by about 25%. speaking of things that are french, the french government has hit back at claims that it reports into vehicle commissions containeds major oversaights. the french environment agency has formerly denied allegations.

certain vehicles are fitted with emissions falsifying devices. >> meanwhile, ahold has reported income ahead of inspectations. thanks to strong sales in netherlands and usa. five business segments going forward. food retail group added it's on track to meet target by mid 2019. joining us now for reaction to this one, vice president of senior credit officer over at moodies. ben, good morning. >> good morning. >> take a closer look at the results. i want to get your thoughts. over at moodies you had combined your outlook. >> we changed the outlook to positive a couple of weeks ago when the companies merged.

we leave in the long run, this is a very positive move of the two companies that create a stronger larger competitor playly in the u.s. and the synergy that the company targets are realistic. >> particularly in the u.s. a lot of analysts pointing out this is about the u.s. market despite being a european merger. you look at walmart, amazon in this war for e-commerce, how does this company come out in that space. >> it is clear the u.s. is the most parent market for this company. about 60% of their business. competitive landscape is tough in the u.s. we have not only walmart. we have the traditional players. we have aldis in the u.s. we don't have a situation that we have in some markets in europe, but there is a situation

where it is definitely an vangs if you are a stronger and larger player. if you have in particular synergies from if you apurchasi >> some food retailers make in the u.s., some don't. in the end, apple is an apple. more or less. you have companies not making it, they had to withdraw. why do we necessarily think this venture would work? why would it have a bigger chance? >> i think the situation is different. it is really about combining two pretty decent businesses already in the u.s. to make it an even more solid venture. it is definitely true that, you know, in the grocery market, the markets are very original and doesn't mean a successful company in country a has to be

successful in country b. good example of that. they left some countries in europe in order to be stronger where they really have a good position. >> ask about cash flow as well. they have a strong cash flow position currently. is that expected to continue? >> absolutely. that's a key positive from our point of view. both companies had very strong cash flow generation and we expect that to continue. >> when do the margin pressures tart to hit? listening to your talk about the u.s. landscape there. they have these brands, especially in the northeast united states, but still there's no doubt it's going to be increasing price pressure in the market. >> it is. our growth forecast doesn't mean we expect them to increase the margins. materially it is a defensive move really to remain competitive. when you look at the numbers from today, it goes to show that margins in america are pretty

decent for both companies post merger. and, you know, we talk about margin levels of 4%, which is pretty strong in the sector and the expectation is not really that it goes much higher. i think it would be from a credit perspective, at least, quite positive if you stay flat. >> thank you for that insight. >> we yulsed to pick all the old plums from the garden growing up and put them in the wheel barrel and sell them right next to the big grocery store. undercutting the super market. >> you get a lot of money from plums. >> meanwhile looking at the earnings picture, guess shares jumped after hours. this comes after second quarter earnings and same store sales beat expectations largely thanks to licensing revenue. the fashion brand sees revenue

growing between 5-8% in the third quarter. listen we're taking a shorts break. while we're on this break. we'll take a couple sips of you z coffee. check out our blog. has lots of good stuff. after the break have loads for more you on portugal. finance minister coming up.

good morning and welcome back to "street signs." i'm nancy hungerford. >> hi, everybody. i'm louisa bojesen. your headlines today. feds sending european shares lower as investors await janet yellen's speech at jackson hole. hillary clinton slams price gouging in the drug sector. it's a beat in aisle two, exceeding expectations on both the top and bottom score as the

grocer seals sales rise. falls sharply in august saying brexit had a strong effect on business moral. and the death toll from the earthquake in italy rises to 247, according to the civil protection agency, as rescue teams work overnight to search for survivors in some of the hardest hit towns. >> hi, everybody. welcome back. let's show you where our u.s. market indicators are at this very early hour if you're just waking up in the states or one of those insomniacs. you're looking at the u.s. markets being called a couple of points lower, five hours away from the hoopen. yesterday saw weakness.

people waiting for the jackson hole speech janet yellen is going to be giving. >> saw the vix pick up a bit. meanwhile taking a shot at the european equities, following the trend. you can see the dow lower. once again weakness in basic resources. we did see glen core fall to the bottom of the market for the second day in the a row after disappoints in yesterday's session. the dax off 1.2%. the cac following. and the swiss market off 1.2%. >> germany ifo fell sharply in august. survey data coming in weaker. the ifo economist out of germany saying brexit has had a stronger effect on business moral, particularly impacting the chemical and electric sectors.

euro falling slightly. >> german dax. profits lift by a fifth in the quarter as businesses weaken. this comes after recording profit of $18 billion. portugal's largest bank by asset is set to receive a cash injection of 2.7 billion euros from the state. this forms part of an attempt to clean up the troubled banking sector. also committed to selling 1 billion euros of subordinated debt. i'm very pleased to say joining us now for reaction to this decision is portugal's finance

minister, mario centeno. sir, pleasure to speak with you this morning. we had the pleasure of speaking in person in brussels earlier this summer. there was concern getting away from the restriction. i want to ask you now you can say the hard work begins when it comes to restructuring this bank, reducing the bad loans. what happens next? >> hello. good morning. and thank you for having me. it's a pleasure to be with you again. this is -- it's this is a very important milestone in the process and we are of course now looking for the business plan, which is a very series plan to be implemented. i think it will create the necessary turn around in the --

not only in geyser, but the portuguese financial system. it's something much needed in portugal at this stage. the financial system is key to economic development and we are looking forward to these to have a big impact in our economy overall. >> and a specific part of this plan, when you look at the 2.7 billion injection coming from the state here, tell us how you're going to pay for us. we understand you do not expect it to impact your deficit and this comes at a crucial time when you are trying to improve deficit targets at the request of brussels. yes, the notes they tay is play important. in order for it to be valuated in terms of the impact. we do understand we see a lot of other process is going to continue, but we are looking at

this process very confidently in in order for it to not have an impact on the deficit. of course we have to nns it we have been quite active until the management of our -- what are the goals of the investment and what are the positive impacts that we think it's going to make in the portuguese economy. so the financing of these operation needs to be seen pretty much as european commission now says this is a market based plan this is a plan

that private investor will be willing to do. these are the investment in the bank and this is precisely the way we look at this. >> mario, when we spoke in paris at the oecd meeting a couple of months back. , i asked you whether portugal was europe's next economic disaster with quite a bit a press floating around speculating around those lines. portuguese yields pushing up 3%. beings around 3% at the moment. they're telling a different story versus a story of a sustainability and calmness. >> yes, i think portugal is now also making a turn around in

terms of it's growth prospect. we do have somehow information from the scenarnar -- if you lo the labor market, you see unemployment rate now at value -- the lowest value since 2010. we have unemployment recipients at the lowest level since 2003. it's a big achievement. we have employment in social security records increasing at almost 3%. these are very good indicators. we think these will materialize into growth in the coming quarters. >> mario, what happens if you're downgraded by dbrs, this small agency in canada now rely on to

have for example etb quantitative easing mechanisms to apply to portuguese debt. >> three points on that, first it's very important that our relationship with european commission works and it is working very, very well as these decisions prove and the statement by the commissioner yesterday also show. we are looking at a very constructive relationship with brussels. this is very important for the stability of the portuguese economy and also of the portuguese ratings. the second note is on the purchase front. we are going to post today data through july in the purchase and we do see a very contained very, very contained public expenditure. big improvement in the deficit.

much stronger than the one forecasted in our budget so the process continues and the third note that i'd like to stress today is the political aspect of spo portugal. we do have a stable political scene in portugal. we are working together with all parties and also the role of the president of the repup lick is important. we have a very stable political scene in portugal. these are the three main ingredients adding to the information coming from the labor market or from investment that i would like to highlight to respond to -- to answer your question. of course we are working very hard for us not to be downgrading and we don't see this in the future as going to happen. >> all right. mario, thank you for joining us this morning. that is portugal finance

minister, mario centeno on the phone. meanwhile, south africa minister says he will not appear before the police despite being requested to do so. allegations regarding his earlier role of head of tax algt si are wholly unfounded. could face arrest. more than $160 billion has flowed into passive funds this year. according to morning star data. listing funds across all asset classes that account for .30 of the funds ran by the investment industry. at the same time, there have been 200 billion in out put flows. out next guest is worning there could be serious cost to the system. head of global quantitative strategy in european equity strategy. bernstein is with us this

morning. welcome and good morning. >> good morning. >> first of all, in your own words, characterize what you see happening in active versus passive fund management at the moment. >> we are seeing a big growth taking place. the flows into passive has been happening in a straight line through the last ten years of so. regardless whether or not people are buying equities are not. periods of equity inflows and outflows. because the cost of buying the index is falling in a straight line over the same time. that combined with the big folks on headline fees. >> and what's so bad about that? >> what's bad about passive management. >> i guess there's a distinction here for the individual investors. so for an individual investor, it could make sense to make passive allocations. the rise of passive is on a huge

job of brunging down cost. however in the research we're looking at now, we're asking what the question aboard the impact on the economy overall. because so far, we see the policymakers have got to ride the passage and good thing. keeps cost down essentially. they do care about the overall growth rate in the economy. in a system where a roll of capital allocation becomes clear by passive is by definition back ward looking and not being allocated towards growth opportunities. >> and that fear over the capital allocation has lead you to make a pretty bold statement when it comes to passive investing is worse than markism. i think that will catch many by surprise. the obvious challenge to that is wait a minute, what about individual investors making the decision that compose the market collectively.

isn't that more efficient is not a better allocation of capital. >> there are two different levels of passive and active allocation. even in an environment where people allocate towards embassies. clearly some of that can be done passively. we do the point i make in the report is if there's active allocation or if there's essentially planned economy as well, then someone is doing that capital allocation. i look passively in that direction of capital towards performing areas. >> certainly the active managers, that is not their objective. they're setting out to perform. when you look at the performance metrics, they are not getting what the passive investments are. >> yes. and that indicates the years

being heavily focused on the relative aggregate. we see the rise of passive makes it much easier to see which active managers are performing. which concerns are useful. that's going to change. that was a very good job of making it more obvious to asset owners. >> you think policymakers should get involved in this. is it the job of the policymaker to be taking a view on how investors choose to invest. >> no, clearly a policymaker shouldn't get down to the level. one thing i'm clear on here. we're no way anti-passive at all. equity just want to make it clear to policymakers so they have skin in the game too essentially. when they're framing future policy, they shouldn't do things debt ra mental to the social

function that active allocation performs. >> it does sound because of the share popularity. >> it's quite potentissibly and a sharp focus now. >> fascinating. thank you for joining us. head of global kwaquantitative strategy. coming up here on "street signs," not paying to play. taking a look at six digit donation frdoof what he calls the most corrupt political enterprise. we'll hear more about this.

hi, everybody.

welcome back to "street signs." the death toll in italy has risen to 247. rescue workers in the country worked overnight to try to get residents out of the worst hit towns where entire buildings were brought to the ground. nbc is there and joins us. bring us up-to-date with the latest and what you're seeing on the ground. >> reporter: good morning. it is a somber morning on what is day two of the search and rescue operations here in amatrice. rescue workers pull more bodies from the rubble. you can see behind me, one of the homes, one of the buildings once standing here completely reduced to a mound of bricks and dust. those are the conditions that rescue workers here have to deal

with. one firefighter telling us sit a dangerous operation. the ground is unsteady and the issue of aftershocks. more than 60 of them since the devastating quake of early morning hours on wednesday. is essentials is who is alive, who is dead, who is missing. one of the issues that's been a trouble here, it's been difficult to gauge the full extent of the lives lost and number of people injured largely because this region was full of tourists so it takes time to track down all of the nonresidents that have been roming around here. it's also august, the height of the summer vacation. a lot of families from rome and nearby cities have been vacationing in this area. a lot of children with them. one of the reasons so many of the victims were children, we're told. there also will be very difficult questions for italian officials eventually. this is a mountainous region.

it's a known fault line. a location where two tech tonic plates meet. the reason the earthquake was so powerful and devastating, we're dealing with old stone structures that have not been reenforced. they withstood the time of century, but not reenforced. asking whether the government, whether local officials should have done more to prevent the tragedy from being as extensive as it was. right now the focus is on search and rescue and pulling out people who may still be trapped in day two of search and rescue operation. >> thank you very much. now the columbian government has reached a historic deal e. lay down arms, reintegrate into civilian life and from 2018

participate in party politics. put to a public vote on the 2ened of october. more than 200,000 have been killed in the struggle between the colombian government. meanwhile, hillary clinton has called on pharmaceutical company mylan to drop the price of the treatment drug, epipen, which had increased more than 400% in price in the past decade. said repeatedly she plans to go after pharmaceutical companies to drive drug costs lower. the nasdaq fell sharply after clinton commented. we should point out too, mylan the company behind epipen fell about 5 .5%. shows you the power coming from hillary clinton when she said epipen can be the difference between life and death. no justification for price hike. very interesting to see the

dramatic fall. >> absolutely. the president as well, that will have a huge impact on pricing in the sector. >> and how donald trump responds. >> absolutely. speaking of trump, farage a leader of the uk brexit campaign has lent his support to mr. trump. speaking at a rally, he said he will not actually endorse trump. he didn't want to medal in american affairs. inside he highlighted the anti-establishment message that has united the leave and the trump campaign. >> if you want change in this country, you better get your walking boots on: you better get out there campaigning. and remember, and remember, anything is possible if enough decedent people are prepared to stand up against the

establishment. thank you very much indeed. >> mean while, donald trump's campaign manager said the candidate was not paying to play when he donated at least $100,000 to the clinton foundation. trump has recently attacked the clinton foundation, calling it the most corrupt enterprise in political history. let's get out to nbc tracie potts who joins us live from washington. tracey, we heard so much about this clinton foundation coming from the trump campaign in recent days. does this put the candidate in a sticky situation. >> well, it certainly puts him in a situation she has to start explaining the ties between the clinton foundation and the state department. what hillary clinton said is she did nothing wrong by meeting with people who were giving money to her family's foundation while she was secretary of state. these people were nobel prize winners. other people had dinner with its

appropriate for her. they have announced they're going to be changing things if she wins this election. their foreign interest, foreign donations. spinning that off. bill clinton will get off the board. they have never taken salary. they won't really have any oversight management. the foundation they bares their name if she wins try to devest themselves of that politically if she is in the oval office. raised a lot of questions about whether or not this pay for play and whether or not hillary clinton have flatly denied that. >> tracie, mr. farage speaking at the trump rally as well. how is that taken by americans. >> it's interesting. well, he says he was not wanting to get involved in the campaign and there he is at a campaign event with donald trump not with hillary clinton. would certainly and drawing some

parallels to president obama getting involved in the pre-brexit vote. and so clearly, even though he doesn't say i'm endorsing donald trump, it does seem to have some influence and for donald trump, this could be an advantage because hillary clinton after being secretary of state clearly has huge ties all over the world with leaders and donald trump does not. having some level of not endorsement, but support from outside the united states does seem to boost his foreign credentials to some degree. >> tracey, thank you very much. tracie potts via nbc news. with us as always. we've got a couple more weeks to go, don't we? >> anxious for that first debate. it will be interesting to see how that plays out. >> super interesting. >> do you think it will be the most watched debate ever? possibly.

the preseason debates during the primary. >> someone was making the point we can view material in a different way than we used to. you have to set the measure in a different way. >> it's not always the same if you get the replay. >> i know. our european equity markets mostly tradie ining lower. xetra dax, u.s. futures indicating a slightly lower open. still four and a half hours away from that happening. >> one day away from janet yellen's speech at jackson hole. >> that's it for today's show. thank you for watching. i'm louisa bojesen. >> i'm nancy hungerford. "world wide exchange" is next. ♪ you're gonna hear what i say... ♪ i love taking stuff apart and building new things out of it. anne: pal's my most advanced annedroid.

[gasps] this is awesome. ♪ oh anne: you haven't seen anything yet. announcer: give your cardboard box another life.

good morning. brexit the face of eu exit has advice for trump supporters. follow my lead. dancing with the swimmer. after a controversy. could ryan lochte win back his fans on the small screen. "world wide exchange" begins