sleep. only at a sleep number store. >> i do believe the case for

removing accommodation is strengthen. >> drug maker on the defense. speaking to cnbc, blames the u.s. health care system as she takes more political heat. >> this isn't an epipen issue. this isn't a mylan issue. this is a health care issue. the irony is the system insent vises higher prices are and it's the conversation no one has wanted to have. nothing is not possible. so says the secretary general. mixed messages everywhere as says will cooperate saudi arabia saying an intervention isn't necessary. media set sharing falling as speculation rises as the sale of the paid tv unit to vivendi is headed to scrapping. negotiations are ongoing. good morning and welcome to

"street signs" and a very happy friday. tgif here. >> i know. >> not just a happy friday. it's a happy jackson hole day, finally. >> i know. i think this is the day we've all been waiting for. >> yes, i hope we don't get disappointment. so much expectation going into the speech from janet yell. >> narrator: as we were saying yesterday, has anything really changed or is this going to be a speech along the lines of what we heard before. >> that is a question. meanwhile, let's put you up to speed where the european equities are trading just an hour into the session. guys yet session. we did see low volumes on wall street overnight. uk is getting ready for the weekend. expect another quiet summer day here. overall stock 600 holing in negative territory. wait and see mode for jackson hole. give you a picture of the markets. basically flat just hold lg barely a negative territory.

the main german market off a quarter of a percent. the french cac 40. and the swiss made market just off. we want to give you a check on how european pharma stocks are trading. once again mylan was a big story in the u.s. trading session. controversy of the epipen. we heard from the ceo her defense of the price increases speaking to cnbc. she said this is not about mylan. the entire sector face as problem. there are many players to blame in this situation. mylan did end slightly lower, but it's been a rough week for the stock. you can see there the european pharma stock in the red as well. >> we were talking about this yesterday. more to be said on that. just want to mention getting flashes through wrrd to carl icahn and how he recently discussed selling herbalife

stake. might be buying more of the nutritional products maker. he has done that in the past. there's been controversy with regards to this particular company. when it's going well, people are making a lot of money then you see massive drops as well, but it all started back in 2012. >> i've been watching this herbalife drama for quite some time. feels like the article mentions that jeffries has been seeking buyers for the stake. it's worth roughly around $1 billion. >> it would be a massive deal. >> huge deal. >> epipen and the interview yesterday. the cnbc interview. it was fascinating. the ceo blaming the broader health care system and saying look, it's a system. it's not just a system that's broken. it's in a bubble. she compared to the mortgage crisis, the actually industry from 2008. >> she said what bubble. what bubble are you talking about here. it is an extremely complicated

situation looking at all the players involved. the retailers. they're saying this is not down to us. so a lot of finger pointing going around, and, of course, the political implications we'll get to a bit more in the show. >> you've got to wonder, are there other companies that are doing the same thing? in the industry. there must be in health care. how do you price a drug? >> that was precisely the ceo's point. this isn't down to our company. this is down to the system. others are saying easy for her to say. her father is indeed a senator, democratic senator, so much pressure coming from capitol hill. >> get involved. by all means. let us know what you think about all of this. the epipen story. that we've been talking so much about. we're both on twitter. >> @nancycnbc. >> and finally we can say we're

here. the day has come where fed chair is due to speak at annual symposium in jackson hole. this comes after a number of policymakers speaking to cnbc have suggested that now is the time to move on rates. steve leaseman asked dallas fed president robert kaplan when the fed is gathering consensus for rate hike. >> this is a cost to fed fund rates at this level. it can create potentially a desire to take more risk. it can distort markets and hurts savers. to that extent, it's an element of what paul singer may be talking about. the prodominant driver is what's going on globally in the search for yield. labor slack is coming out of the labor market. maker accident frustrating slow progress, but some progress on inflation. and i think that gdp growth in the second half of the year will be strong. even the second quarter gdp

number that was did pointing was an inventory adjustment. the case is not going to specu which meeting. >> the kansas president offered a more hawkish tone. >> you've seen in terms of how i've expressed my views on the committee. i do think it is time to move that rate. that doesn't mean i favor high rates. it doesn't mean i think they needs to happen rapidly. i agree that a gradual move in these rates, but under conditions where we're seeing employment move in the direction it is. we're seeing low and stable inflation, i think it's fair to say we could remove some of that accommodation. >> well, joining us now for more animal sils ahead of janet yellen's speech is eric. manager after mng investments. >> good morning, eric. >> good morning to you. >> we're hearing from fed

members once again indicating the fed is getting closer to some of its targets. some questions over whether or not janet janet yellen will pic the baton. >> i suspect she won't intend to move markets, but she probably will. that's more to do with where markets are positioned. it's very interest fg you look at what happened to jgb a few weeks ago when the bank of japan made an announcement to review policies and we saw the yield curve. i think markets are currently particularly the rates market, very, very fragile in terms of how they're positioned, so whether she intends -- i suspect she's going to try and keep her cards pretty close to her chest and not give too much away. that doesn't mean she doesn't get a big market reaction from it. >> markets are fragile. you might also say they're

confused. that is down to the mixed messages from the fed. i'm reminded by a hedge fund manager over the weekend saying i've been taking a ride this entire year trying to predict where the fed is going. >> absolutely. people are confused with two issues. one is what do we do with interest rates the next 3-6 months. the data has been better. there's a separate issue which is what do we do in the medium term? related to that is what are our contingency plans. if there were to be a recession or if something happened, do we have any fire power. what's confusing people are the two debates happening similar tanhousely. market haves con affiliated and confused those two separate discussions. you can question how well the fed has communicated that. those are broadly two separate

issues. >> you mentioned the bond markets and p moves we saw. isn't it a different snar yoef in so far we're far from seeing a massive selloff in the bond markets given we haven't seen it yet. we've continued to see this one way momentum piling into bond markets that we never imaged. >> that's what makes it tricky here. you're u you've had a huge rally. you've had this kind overconsistently favorable news, post-brexit with more interest rate cuts. more qe. negative interest rates. it's very difficult from here to see how bond markets get good news. it's quite easy to see how they can get bad news. that potentially results in volatility. one has to be alert to how bond markets will react to any hints coming from the fed or yellen. >> stale with us, eric. we'll come back and chat in just a second. we need to be sure to tell everything that we have got this exclusive interview taking place

with the federal reserve vice chair stanley fisher in jackson hole. that takes place at 7:30 today. very important fed member. don't miss that one. fischer. he's been doing the line of delicate changes to come. >> he was the first to say we are getting close to the targets. people perceiving he's a bit more hawkish. don't want to miss that interview. let me also mention oil prices. dipping slightly after the saudi oil minister hinted to oil friez. he does not believe any, quote, significant intervention in the market is necessary. added crude prices are already moving in the right direction thanks to normal demand and supply forces. at the same time, willing to cooperate with opec members as long as the car tell respects

the right to regain lost share of the market. tehran is continuing to insist it's ready. >> of course that's focusing on the supply fundamentals there, but now we're getting lines from bank of america, merrill lynch their oil forecast. they're touching on the fact that the low interest rate environment should support oil demand and see the demand itself accident up and downing by 1.3 million barrels per day. that's in 2017. on the price forecast. bank of america merrill saying we continue to see brent averaging around $61 a barrel. next year you can see brent. touching about $70 a barrel by the end of the second quarter in 2017. all right, coming up right here on the show. turkey pulling itself deeper into the fight of syria.

talking about the changes under way with regards to the turkish strategy. we'll be right back. you're watching "street signs." we're on e-mail and twitter. see you in a second. narrnkey: so grayo lov s even. narrator: explore : rld it's auful. narr fd thcloses fostr rk to u. dierthefg

speaking to nbc news. officials say that after shocks continue to be registered around 57 alone since midnight. the vice govern of china central bank is saying that the pboc will continue to provide liquidity using both 7 and 14 day reverse repos. these comments come after the p, bc deployed 14 day repurchase agreements for the first time since february earlier this

week. vice governor is saying 14 day offerings flexibility, but market argues central bank is trying to wean markets off shorter duration lending. the nikkei trading lower on back of government data showing us japan's consumer prices posts biggest annual supply in july. out of singapore, so for a couple of months in a row now, five straight months, we've seen weakness in core consumer prices. >> yes. if you're familiar with your literature and it's like waiting. where is the 2% inflation. it's not there. it's proving increasingly elusive. what's the point of this target anyway. that's all economic. in japan and what's going to be interesting is whether the bank of japan are going to respond aggressively. recent history has told us and case in point was last meeting. the boj and mr. crow da seem to

pay b saying we've done or bit. it's up to you, mr. abe, to get cracking. squarely putting the ball in the court of mr. abe. that's an interesting dynamic. we're really broadly just spinning our wheels in the equity markets just ahead of january el yellen. no one one wants to make big beauties. the auto sector was a drag. justaround the century market. next week is going to be interesting. once we get clarity on yellen, i think the narrative will stay with the u.s. and it will look forward to the payrolls number, but it will also come back to the region because we got a plethora of pmi numbers coming out. we also got the latest read on india's economy. got gdp numbers coming out from india. that will be very important.

india, indonesia, and the philippines in terms of sovereign markets are the ones really punching above their weight right now and cracking on with structure reform and the markets like that and the markets are rewafrding them. >> thank you for that update and finally we can all rest easy after janet yellen's speech in jackson hole tonight. have a great weekend. bring you up to speed with corporate movers. vivendi signed with media set for premium pay tv unit could be void after september po. 30. vivendi says the two parties are unlikely to gain clearance for the deal before that time. currently suing vivendi to enforce the contract. reuters sources say talks between the companies are continuing behind the scene. >> meanwhile, vivendi ceo has denied reports that they are looking to do a deal are the

french company orange. stated that orange has reached a deal with vivendi to buy stakes in telecom italia. >> european news will be given a right to levy fews on the platform if search engines show snips of their stories. details copy right reforms being finalized by the european commission t. proposal is to be accomplished in september seek to curve the power of large online search giants such as google and puts further pressure on an already strained relationship between brussels and silicon valley. >> still with us around the desk is eric, macro fund manager at m mng investments. we were just talking about what to expect from janet yellen and you said you do think she could move the markets even if she's not trying to. are we talking about a move in the bond market specifically. >> rates are dominating most markets at the moment. even if you look within the

equity market, there's been huge die ver general si. interest ralt factor related stocks like the higher quality dividend payers. so and we're seeing it in currency markets so we're seeing the impact on rates of the dollar and also on the oil price thchlt is the kind of critical thing as people short run outlook for interest rates, but it does seem to me that, yes, i suspect if you're advising janet yellen, the wise thing to do here would not be to say anything too controversy. however, you just don't know how markets are going to react. very often it's how markets are positioned. what you've had a lot of bond friendly news in the last 3-6 months. and much of it doesn't necessarily appear warranted by the fact. so you've had a combination of a situation where bonds have rallied a a lot and u.s. data has strengthened. >> the other big mover in

yesterday's session was mylan and talk of the pressure that health care stocks are undergoing at the moment. do you think european pharmas should be concerned at all. >> no, not really. i think there's a lot of conflicted factors that are going on that are specific to the united states. so i think, yes, very little read across directly from the u.s. pharma sector to the european one. >> what's going on with the real economy and these lower for longer raft long er rates and how they're filtering through. >> out of america, they're a problem. what's critically important at the moment, and this is why i think the entirety of jackson hole is going to be interesting. what the boj does next month is going to be very interesting. a growing recognition that interest rates have gone as far as they need to go. from here it's not observe they give you much benefit.

if you look at bond deals causing problems for corporate pension funds. a lot of rate reductions aren't being passed through to consumers. as a game, the interest rate game is really hover. >> thank you for being with us. macro fund manager from mng investments. now, moving from business to politics, a car bomb at a police headquarters in the south eastern turkish town have killed 11 and wounded 78 according to broadcaster tv. local media blaming the attack on kurdish group. at the same time it will turkish army has fired. presidentered win ereere ereer as it's about eliminating isis military tants. the move puts further strain on turkey's relationship with u.s. following it's demand for

america to extradite fethullah gulen who the blamed for last month's failed coup attempt. let's talk more about turkey. skinner is the head of risk. welcome. >> so important to say that the u.s., they're backing the kurdish or they have been backing the kurdish fighters up until this point. so turkey now going into syria, what's that going to do to the delicate relationship. >> it is a delicate state of play. at the same time, the u.s. has shifted tack. joe biden state it must not cross -- it must retreat to the eempb side of the you frayties refer to give turkey the space to operate. this is a very important statement by the u.s. administration because it shows it is enabling turkey to realize its ambitions which is not only to push the islamic state from

the turkish border, but to ensure it's not occupying that territory. >> erdogan has indicated in the past he wants to cross the border and go into syria and also push back from the military. we had this coup attempt about a month ago where afterwards has taken out a whole bunch of people. removed them from the post in the military. has the military become stronger now in terms of erdogan's control of it? >> yes. it's clear that testimony purge has played into erdogan's hands. the individual who is are occupying senior levels. this has been a primary object ichiro of the ruling justice and development party. the same time the security apparatus has been weakened as a result of this purge. that the pkk, islamic state, and the dhc are looking to ekts ploit. >> the purge you speak of shows now sign of slowing down here.

that has weighed on u.s. relationship you just mentioned comments from vice president biden that yes support has limits. that would be perceived as good news for turkey, but what about the matter over fethullah gulen and his potential extradition. >> the extradition debate is a key sticking point in u.s. turkish relations. joe biden has done to ensure that the u.s. is doing everything it can to assess the evidence, but made it absolutely clear it's not the obama administration that's going to decide whether he's extradited or not. it's the u.s. courts. there's no avoiding this fact that the u.s. is not going to extradite fethullah gulen unless there is convincing evidence he has engaged in illegal activities turkey. it's up to the u.s. administration to try to manage these pressures and compensate to take the sting out of the pressure point. >> how concerned do you think

the u.s. is or should be about the normalization of the relationship with turkey and russia. >> i don't think the u.s. administration is overly concerned. turkey has in the past used the relationship with russia to try and put the u.s., the eu and nato under pressure just to show it has other options. of course syria is a point of friction between the turkish administration and the russian administration. still at odds of the ypg as well. russian is also a sponsor and turkey considers it to be an extension of the pkk. it's not the relations are rosy and move with a lot of momentum forward on that front. the u.s. understands that quite clearly. >> all right. anthony, thank you for bringing us that perspective this morning. good morning to all of you. david, peter, linda, anthony, the list continues. good to see all of you as well.

we're all wearing black today. friday, might go dancing afterwards? >> that's right. >> we need to take a short break. head out to our blog. it runs throughout the entire trading day. we'll be back with more. stay with us.

good morning and welcome back to "street signs." i'm nancy hungerford. >> hi, everybody. i'm louisa bojesen. your headlines today. european markets treading water after fed officials push for new heights from the peeks of jackson hole. it's tyke to hike rates while r robert kaplan is saying it's moving toward taking the step. >> all the longer term medium term drivers. one job report is not going to drive our thinking. i do believe the case for moving

accommodation is strengthening. drug maker on the defense. lowers the price of some pens, but blames the u.s. health care system as she takes on more political heat. >> this isn't an epipen issue. this isn't a mylan issue. this is a health care issue. pharmaceuticals, the irony is the system incentivizes higher prices. and it's the conversation that no one has wanted to have. nothing is not possible, so says opec secretary general when asked about an output freeze. mixed messages elsewhere. it will cooperate saudi arabia insisting that intervention isn't necessary. . >> we've got good news, i think.

>> uk growth rate boosted by strong household spending. it's the second reading on this. we're hearing so far there's no sign that uncertainty about the eu referendum significantly affected the uk investment or indeed gdp in the second quarter. that's according to the chief economist. june services output plus 2 .2%. look handgun at a 2.4 on year. household spending growth. >> strongest since the third quarter of 2014. so yet again, more evidence that some of those doom's day scenarios that we heard leading up to the brexit vote, aren't proving true. >> it is early. david owen is with us. chief economist from jeffries. how do you read this data. >> you have a new gdp. that was always in the details. you have to look at the numbers

and spend a few hours trolling through the detail. again, confirms that the uk had suddenly much more momentum. expected going into the june vote. remember this means the uk was going at twice the rate of the u.s. and economists in that q2 period. it's certainly good news. >> devil is in the detail. second quarter investment. versus the first quarter we saw a drop. reuters poll, have been looking for a drop of 0.8%. we're still seeing this willingness to investment from business perspective. >> the actual data is quite volatile. the move is something within the detail as well which may have led to the overall number increasing. the momentum is there. obviously we have the votes and then we had the policy response by the bank of england and also they didn't trigger article 50 immediately which would have been the absolutely the wrong thing to have done.

at the end of the day, the uk is doing reasonably well. we still warn it will slow and still a risk of technical recession going goo the turn of the year. >> when you see data as resilient as it it at the moment. sometimes suggested that carney moved too quickly with too much on the table. >> you have to get ahead of the data. all the measures of uncertainty did actually spike. the bank has the advantage of the agents going up and down the country talking to businesses. just that risk off the table. remember as well the uk is still coping with two very large deficits. the current account deficit. they did the correct thing in moving quickly. also let's not forget we have a fiscal response to look forward to. everyone is expecting something on the infrastructure side in particular to be announced by the new chancellor in that month. the bank is still out there possibly going to cut rates further in november as well.

>> they could cut rates further and we still haven't seen some of their measures kick in yet when we talk about the purchases of corporate bonds specifically. we've already seen great movement though in flows just on the sheer announcement. do you expect it to continue. >> absolutely. the interesting thing there is they view the credit purchases. they push the barrel. they're completely dem if ied by these purchases and identified they say 150 companies that can go out in the market to purchase. if the program works well, it will be extended out, but again, it's to ensure that companies can get financing. they were slugging up earlier this year. a reduction in the market. you'll see companies now, in sterling. from the bank of england point of view, i think they've done the right thing. it's a fission cal response. we would love to see the same thing in europe. the ecb is doing all the work. there's no fiscal response in countries like germany.

that's why the euro zone figure is still lacking. >> all right. so much to discuss. david, stay with us. we want to get your thoughts on the fed as well. before we do that, let's give you a look at where u.s. futures are pointing to ahead of the jackson hole speech from janet yellen. we did see a negative session overnight. dow had fourth negative session in five. nasdaq was the real focus. bio tech stocks under pressure. nasdaq has the first back to back. breaking that winning streak for the first time in 41 sessions. there you see a bit of a recovery called for the nasdaq, but so modest at this stage. higher by about 6.7 points. the dow jones call higher. and the s&p slightly higher as well. investors in wait and see mode for janet yellen otherwise quiet holiday especifically right here in the uk as we get into the long bank holiday weekend. perhaps you're getting an early start. the ftse 100 basically flat.

the xetra zach dax, french kax off. >> we were talking about turkey in the middle east and getting into the role and relationship with russia. writes a e-mail about how america should not be talking about talking with putin. it's a longer e-mail. i won't be able to read all of it out. it's always interesting to hear you take on the go politics we talk about in here and all the different viewpoints. the russian relationship is crucial. >> absolutely. >> could be a changing access in terms of who works together. >> watching them take on in syria too. >> got to wonder how things change after the u.s. presidential election as well. >> you know they are watching. >> you would think. loads of you writing in on twitter as well. keep your tweets coming through about markets. topics you're looking at.

have nonpayroll data out next week. >> can the fed take a chance? what if it's a bad payroll figure. >> the job's market is the bright spot. >> @nancycnbc. >> @louisa bojesen. you'll find us online. mylan has been at the center of intense price gouging in the pharma sector since hillary clinton lashed out against the soaring price of the epipen product on wednesday. cnbc has been following the story. >> reporter: battle drug company mylan responded thursday to the price of the allergy drug the epipen. the 400 prkt spike since mylan acquired the product almost a decade ago has attracted the attention of lawmakers, presidential candidates and white house. ceo heather bresch turned the

focus to the rest of the health care system saying it's the middle men that contribute to rising prices. >> the system incentivizes higher prices on the brand and if you don't play in the system, if you don't -- in the system that's broken today the products aren't going to get to patients because of the lives covered by all the middle men you talked about. >> mylan is simply the latest drug maker trying to reframe a pricing prom into a coverage problem. blaming payers is a red herring and doesn't pass the lab test with policymakers. nonetheless, focus on pbm as well as drug distributors took a toll on stocks thursday. all falling. >> congress leading the way on the epipen inquiries said the rest of the health care industry is due for more strutny as well. the main focus is still the epipen.

>> we need to look more pbms i'm not going to say i'm having any hearing at all. i'm going to gets the answer from mylan. if that answer isn't legitimate and the prices don't go down, we'll talk about having a hearing. we could get into that as well at the same time. i'm going to make that decision after september the 6th. >> all parties seem to agree that increased competition would help bring drug prices down. however, that's continued to be a hindrance here in the epipen case. nonetheless, the drug price battle appears only to be heating up. meg torl, cnbc business news. >> speaking to cnbc, heather bresch wants to fix what she says is a broken system. >> congress and the leaders of this country need to quit putting their toe in this topic and really fix the system. we have an outdated inefficient system. you know what's happening, the

patient is paying twice. they're paying full retail price at the counter and they're paying higher premiums on the insurance. it was never intended that the patients would be paying this price. never. the system wasn't built for that. >> joining us now is nbc news tracie potts standing by in washington. tracey great to see you. we just heard from the mylan ceo there really turning the finger pointing it back at the government. after hillary clinton pointed the finger at mylan just earlier this week. how does this continue to play out on the campaign trail? >> well, it will be interesting because, you know, this has been an issue, but not the biggest issue obviously on the campaign trail here. certainly for people who use those epipens, it's a big concern. and it speaks to how and how much the government gets involved in issues like this that involve the private sector. for hillary clinton right now in terms of pointing the finger, it's pointsing squarely at

donald trump. she now has a new message -- an adjusted message i should say about donald trump not only attracting, but empowering dangerous hate groups here in the united states. she says his message and some of the people that he's hired like conservative steve bannon are empowering hate groups here in the united states. white nationalists that have rebranded themselves from white su prem cysts. she says it's a dangerous part of donald trump's campaign. she says these are racists ideas. donald trump is response is saying that the democrats always cry foul and cry racism when their own plans aren't working. he called hillary clinton just about 48 hours ago a bigot and as a result he says that she is -- her policies are bigoted because democrats claim to do a lot to help people that are minorities when in fact they're not doing a lot to help them and

those policies just have not worked. >> tracey, the other big issue is a possible change in stance over the immigration issue. he said he's going to put outs a big speech on this. do we have any indication when that will take place and what to expect. >> reporter: his campaign has said more details in a couple of weeks. what we know from the public appearances and interviews is that he still says he wants to build the wall with mexico, but when it comes to dealing with the 11 million undocumented residents already in this country, instead of trying to send them all back home at once, what he's now saying is kind of what we heard president obama say that he wants to prioritize. deal with drug dealers and dangerous criminals first and possibly work with other law-abiding immigrants in th country even though they are undocumented. >> thank you for bringing us that update. that's tracie potts with nbc news. >> just to bring you up to speed on some news that came in the

wires. gfk extending their losses in trade today off some 4.5%. majority owner gfk is saying they're not considering the sale of shares in gfk. they're again extending losses off by some 4.5% on the back of this news. >> reverse what we saw yesterday. moving the stock higher. >> let's move on. and talk a little bit more about what's going on in the u.s. >> yes, without a doubt. big focus this week as a lot of people were watching donald trump wondering if the change in campaign staff would help in the polls after the comments he made earlier on in the month. let's bring in chris who is a democratic strategist and crow of park street strategies. thank you for joining us this morning. >> you were among those saying trump had been in a deep hole. do you think he's done enough to get out.

>> he's in as deep a hole i've ever seen a candidate in the presidential race. when you're down ten points in a poll that just came out, it's bad. when you have the demographic problems he had, it's even worse. you're behind in terms of hispanic levels in historic levels. he's around low 20s and that's being generous. he has to be around 40 to be competitive. his support amongst african-americans is statistically zero on most of these polls which is almost laughably impossible. not that any republican is going to get a significant percentage, but you need to have a certainly mix to be competitive and he's not doing it. he has to try to make a shift hence this positioning that he's trying to take now about imfrags reform or new position which still he's in a real box in. he changes too alienates supporters.

>> what do you make of the changes on the campaign team? we do sense more less -- more scripted you might say. less decisive in the last few weeks. does that continue to help him? >> the problem is the damage that's been done. even though it's 70 days, certain perceptions start getting cemented in. he's at a point where the debate has to be his one defining moment he changes things. that puts him in a difficult spot because hillary clinton is a good debater. she's not going to go in there and make any kind of significant mistake. >> you are coming -- we are discussing with you coming from a democratic angle. viewers watching out there who may be coming from the other side may say so what. you have a candidate who shakes things up. his message is clear. candidates can come back from seeing lower levels in the poll. we've seen that in the past. >> we have seen it in the past.

if you are looking at this objectively, the message that trump has in terms of big structural change, the argument that the system is rigged and we're just doing the story about mylan, that feeds into the notion that the american people have that corporate america just doesn't get it. the problem is he hasn't expl t exploited that structural advantage that exists within the electorate. is there time? sure. at this point in the a presidential race you have to do something dramatic to shake it up. hence he's going to go into debates with a strategy to try to rock her. somehow shake her. that's a tough place for a candidate to be in. >> chris, you just mentioned mylan yourself. i have to ask you because you formerly were the chief of staff for senator joe father of the current mylan. one, is he in a tricky situation here looking at the pressure coming from capitol hill and how has he handled the situation so

far. >> in full disclosure, i know heather because i was cleef of staff of senator mansion. it's a tough position to be in. when you're a company and you're trying to make the argument as heather was that somehow the rising prices was because of the health care crisis, it just doesn't really go far enough to explain the situation. so i think the senator is in a difficult spot because it's his daughter, but at the same time it's a serious issue where he's going to be used at a political punching bag, especially going into the next election. it's a tough spot for him to be in. i have to believe they're going to take a more aggressive role. no company wants to be a political issue. you don't want to be a political issue in this presidential election. >> and knowing her, how do you judge her response yesterday? speaking to cnbc she was expressing frustration saying

the system is broken yet look at her pay. >> as someone who advises companies and others in terms of how to deal with crisis, i would not give them a great grade in terms of the response. i will give free advice to every company out there. in a situation like this, you never somehow blame someone else. do you have to take some degree of responsibility. own the problem and make it clear what you're going to do to fix it. suggesting there is a health care crisis that is explaining or justifying this, doesn't pass the laugh test with most people. >> so what do you think happens? will they have to cut prices? go further than this discount they're offering on some epipens? >> you're talking about a product that -- regardless what education level, regardless whether they know anything about business. someone is in a moment of crisis, they need it to survive. when you're talking about that kind of product, raising prices

so a family can't afford them, some of the stories of the price going up to $1,500 to have a supply for their child. that's a dangerous place for a company to be. i can't imagine they're not going to drop the prices more. because this is going to grow. you're going to see this become a congressional issue. it's going to become a presidential issue. you don't want to be in that storm if you're a company. >> chris, where she to go. thank you very much. democratic strategist, former chief of staff for senator joe mansion as mentioned. ceo of park street strategies. we're going to put the fed to one side and focus on the diamond market after the break. what's driving the slower sales. that and we'll be talking graphite as well. all of that coming up on "street signs." nnouncnc: dolet e. coli moswith yr food. nnouncnc: dolet e. coli an estimat 3,000 amecans di

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>> you've seen in terms of how i expressed my views on the committee. i do think sit time to move that rate. that did you want mean i favor high rates. it doesn't mean i think that needs to happen rapidly. i agree that a gradual move in these rates, but under conditions where we're seeing employment move in the direction it is, where we're seeing low and stable inflation, i think it's fair to say we could remove some of that accommodation. >> still with us is david owen and chief european economist over at jeffries. we've been speculating all week what janet yellen will say. you say it's actually the comments coming from the ecb that may be more interesting. >> more interesting for me. of course for a fed watcher. janet yellen matters. will they go in september, december. whether it's normal for u.s. rates. in terms of what we're looking

at in terms of the ecb. you have the head of corporationings giving a keynote speech at jackson hole which will be their time in the morning, but our time going into after hours and obviously we got the september meeting. they're going to have to change there. running out of bonds to buy. how will they do it. >> where do you think we'll see the most reaction. >> the u.s. quite clearly and exchange rates. >> the interesting thing here as well you've got boj has credit speaking tomorrow. obviously on 21st you've got the fed and the boj. that's really interesting for th s. >> we have to go, thank you so much. david owen chief european economist from jeffries. don't miss the exclusive interview. so later on today. now, this week we've been spotlighting top commodities. chipping away at graphite today the global electric vehicle

revolution has driven to power lithium batteries in cars. with u tim armstrong. >> what are you seeing in terms of gaffe fite up tick and whether or not that trend is going to continue. >> we have seen a huge paradigm shift coming from the battery market. that's for electric cars, but also -- there's 7-10 times the amount of graphite that goes into batteries. a huge demand. we're seeing a lot of demand for it. >> where is the demand coming from in terms of geographically. it's tanzania. >> we have projects in tanzania. we have seen some high grade graphite in tanzania. a whog bunch coming from there. we're very comfortable doing business there and quite excited. >> interesting you just mentioned seven to ten more graphite than lithium in the

actual battery. we talk about elon musk and his big battery push with tesla. people generally think of lithium. that is not so much the story. this raises the question of electric vehicles specifically, how much is that driving demand. >> elon himself was saying the battery should be named gra file and nickel battery. i think the demand coming out of china and european countries is a huge consumer of this as well. we're seeing a big amount of demand and ready to capitalize on it. >> the reason he wants to stress the graphite is the concerns of lithium and the extraction of lithium. that brings up the cost. do you think we'll see the cost go down of the battery packs. >> i'm not sure. my role is to find undervalued projects and bring them to market t. graphite extraction itself is all from surface. it's quite easily open cut.

>> are companies able to keep on the demand, like the companies you're working with for example. the companies in tanzania. >> at this stage it is an early stage and the market is a bit opec at the moment. i think going forward in the next five to ten years, we're going to see a muj demand for this thing. >> tim, thank you for being with ut. consultant from arm dale capital. that leaves us with a glance at what's going on in the u.s. futures. have e-mails coming in as well. lots of twitter activity. happy friday. i keep forgetting. >> it's been a quiet august so far. >> it has. especially when you rook at trading volumes. no surprise. relatively low speaking. we are getting into a long holiday here in the uk. expect the afternoon to be quiet. >> carnival if you're in london this weekend. be ready. >> luisa is excited. >> all around where i live.

it's a particular twerking street where i live. >> you'll have to send us pictures. >> exactly. >> let's give you a shot of how u.s. markets are being called this morning. we've seen the slow and steady pace. people getting ready for the weekend. this is the view in the u.s. s&p called slightly higher. dow jones called higher 37 points skpchlt the nasdaq higher by 7 points. was a losing day for the nasdaq. in fact first two day losing streak in quite some time. >> thank you for being was. see your e-mails coming through on turk turkey. keep them coming in you want. for all of you out there have a fantastic weekend. more to come on cnbc.

good morning. fed in focus. wall street getting ready to par issue every single word out of janet yellen's mouth today. officials look for direction gathering in jackson hole. i spy ha headache. privilege and paranoia. hillary clinton delivers her most scathing critique of donald trump as the fight for the white house gets personal. it's friday, august 26, 2016 and "world wide exchange" begins right now.