shares of valeant cleansing today. it is a real cease all right for valeant. ride for valeant.cutors are investigating whether they product insurance by hiding ties to a mail-order pharmacy, according to "the wall street journal." we are joined by cynthia with the latest. didn't we just hear from valeant saying it would be fine? cynthia: with the purpose of how restructure the process, he did give enough be called earlier this week. that was largely because he reiterated earnings guidance and there has been a lot of expectation that the company would not actually make their earnings guidance. what was positive was not negative, if that makes any sense. they basically converted more bad news earlier this week that there was a little relief in shares earlier this week and now ongoing investigations, which we knew were around, but the magnitude and how they could impact valeant is haunting them. criminal probehe that is the official and so forth, but are shares dropping on that or more on the conversations that valeant is trying to have with bondholders? if you look at my bloomber

valeant in another investigation. lawsuit filed by t.e and investor accusing the valeant of fraud. >> let me clear about the story. i'm not saying bill ackman did anything illegal. liz: absolutely not. he is an investor and has to deal with it. >> he is on the board now. what we said we quoted stanley arkin, noted white-collar criminal attorney, given the fraud investigation the doj is doing it is not, it is more than a theoretical possibility that people associated with what went on at valeant, the relationship with philidor and pricing of drugs seem over the top, the fact they can't do that now, investors holding stock that continues to get crushed -- liz: spiking price of drugs. >> he can't do that anymore. so the stock price is getting crushed, in that whole thing, in that whole maelstrom there could be people facing severe legal liabilities including jail. not saying bill could. i'm te arkin said. why do we put bill ackman's name on there? he is the big share hold. this is where it gets interesting. i believe he is on the board now.

how much the valeant nightmare could cost the billionaire activist and other valeant executives. why scale time could be involved for some involved. charlie is about to break that. you have to hear it next. ♪ approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor

valeant reaffirmed guidance.of death. how dramatic is that. acid pool of debt. >> that is contradiction. liz: not funny. this company lost the 0% of the its value. looks great today? it was $235 over the past year. $235 a share. right now, 28. you could argue a good day finally for baby buffett, maybe. bill ackman nowhere to be seen throughout his key investment skyrocketing. man at head of the story from the beginning, sitting ahead of me. charlie gasparino. your take. >> we said at beginning everything was on the table. liz: including selling assets. >> including their crown jewel, bausch & lomb. when lehman brothers was going down i was first to report, neuberger and berman, asset their crown jewel was on table. everybody denied it. it was obviously. this is too. finally we have reaffirmation of our story that was denied by cnbc. this shows you how you can not trust cnbc. scott wapner gave the microphone to bill ackman, where he was basically urinating on our story, which turns out to be 100% right right now.

valeant retain guidance? it looks like they have real confidence that they will be able to improve their pace going into the second half of the year. if you look at the first half of the year, they are going to have to improve on every single metric, including sales and their adjusted ebitda. they are optimistic that they can turn the struggling company around, despite missing on earnings revenues alix: for the quarter. sales numbers are pretty ugly, down 14% -- revenues for the quarter. alix: yeah, sales numbers are pretty ugly, down 14%. how many asset sales do we need to see to make up for the lack of sales? doni: i think they're going to have to be doing asset sales primarily to pay off their more than $30 billion in debt that they have, and over the course of the year, they are looking to sell off non-core assets. there will be more information about what they are looking to do there. at the base, what they need to be doing is taking up declining sales. 11% sales and client from the same quarter last yea

valeant pharmaceuticals says it is cooperating with authorities in new york after the wall street journal reported that the company is under investigation. it said federal prosecutors are examining whether valeant and a mail-order pharmacy hid their relationship. the founder of alpha at's venture capital is to leave the company on friday. he built a silicon valley powerhouse, having created google ventures in 2009. david crane, a veteran of google, will exceed maris. a man who wanted a private audience with donald trump spent three hours scaling the glass facade of trump tower using suction cups. he climbed as high as the 21st floor before officers grabbed him through an open window. police say the climber posted a video on youtube entitled " message to mr. trump," in which he said he had an important issue to discuss. global news 24 hours a day powered by 2600 journalists in 120 countries. i'm nejra cehic. francine: thank you. we are here with gilles moec. first, brexit. it has hit the u.k. property market. sales dropped the most since 2008. earlier, the chief economist told us about the

scarlet: shares of valeant pharmaceutical is climbing today.econd sales that -- second quarter sales that failed but fulfilled on their full yard gardens. -- full-year guidance. >> i am looking forward to spending more time talking about our products, improving patient lies, our growth trajectory and type line unless a better bank debt. scarlet: cynthia kunz was on the valeant call and she joins us now. the number one question for valeant -- the stock is rising because people were surprised by maintaining their full-year forecast but how realistic is that? they are baking into growth in the second half and they will have to do a lot to turn the numbers around. they have to stumble losses and keep things where they are at and improve in other segments and that's why they say they can do that in the second half. they say there are some seasonality to their business and they typically have more sales in the second half. that's not typically the case with farm at they have some lines like in acne where there may be more sales in the fall because ki

we have had many positive earnings calls from valeant.kes you think they can turn things around in the second half? >> they have a lot to do. they have to really drive earnings growth and a half to drive earnings growth out of businesses that are declining in the past. they have a really big task ahead. they're mistaking to this idea that there is a seasonality and natural pick up in the second half able to benefit from. fundings of valeant today. dashers a valiant plunging today. they are the target of a criminal probe. investigatingare if -- didn't we hear from valeant saying everything was going to be fine? he did give what would have been -- what was positive essentially not negative. they basically averted more bad news earlier this week, but there was a little bit of a relief rally. these ongoing investigations, which we always knew where around, but the magnitude of them in the amount they could impact valeant are coming back to hot them. -- haunt them. >> delta woke up this morning and still had some of the headache after cancelin

'now to valeants surprised -- not to valeant's surprise.hares are climbing as the company holds firm on their for your guidance. the ceo gizmo clarity on a new strategic direction. i am looking forward to spending more time talking about a our products, improving patients lives, and less about her bank debt. vonnie: bloomberg reporter listens into valeant's call and it was papa's second earnings call. did he do better? restored a lot to confidence in the approach and tone he took today. there is a lot going on. we are processing it all as it comes. one of the most interesting things is they will renegotiate with an lenders to get more comfortable with their debt. i think the market reacts sensibly to the fact that. rated earnings guidance and that was the expectation, that they might not be able to make it. if they could not make their earnings guidance, does that mean they will run into trouble with their debt? they preempt that with making changes to their debt and that will start the process today. vonnie: sticking to modified covenant w

the news just use piling up for valeant right now. shares of the drugmaker are down once again by about 4%. this time because it is being sued for fraud by t rowe price. neeson,us is mike colonists who covers pharma. and sylvia, health reporter for bloomberg news. let's start with you. this new twist that t. rowe price is now suing could create an effect that other companies, could join other funds will join? ylvia: it underscores -- su there is a lot of legal activity in recent weeks and become part of the story again. we don't know yet. they are coming and they are here and they are there and there are 70 cases going on. and another one shows how vulnerable valeant is when they should turn their core operations around. lisa: they are one of the bigger debtholders. why are they coming out now? sylvia: they were. they are not one of the biggest shareholders anymore. extently i think to some they have gotten her hands on it on the investigative work. they have the documents that show what they want to prove, which is they are arguing t

valeant, with its drugs, raise the prices $11 million.e have to begin to look at this in a very major way and understand what is appropriate, in terms of drug pricing increases. we are getting more and more great drugs. vonnie: he us a roadmap. who you think is the better candidate? dr. cosgrove: i think it will depend on congress. i don't the we can predict. david: in the insurance space, we of the department of justice filing suit against the merger ur major insurance shops. do you worry about consolidation of what that could mean for health care? he was inve: consolidation across manufacturing, insurance, and hospitals, physicians groups. it's going on all way across health care because of the financial pressures that coming from the outside. it's going to be an issue. don't think that is decided yet. vonnie: you are global in ovid on the other places. you are opening a hospital in london. what do you think about when you look at the british health care system versus the u.s.? they couldn't be more polar opposite. do the brits do it be

valeant under fire, too. the latest legal drama surrounding this controversial pharmaceutical stock. those stories, plus breaking details on ryan lochte and what actually went down at the olympics with those swimmers in rio. "power lunch" starts right now. >> welcome to "power lunch." we've got the s&p and the nasdaq just above the flat line here in the green. the dow is down by .1 of a percent. brent crude back above 50 bucks a barrel. wti crude up close to 11% over the past week. both are in bull market territory right now. take a look at oil stock, a fresh 2016 high. >> here's what else is happening at this hour. twitter suspending 235,000 terror-linked accounts since february. twitter says daily suspensions are up 80% since last year. shares are down over 4% right now. wal-mart beating expectations last quarter, thanks in part to groceries. wal-mart shares also higher at this hour. team usa continues to lead the medal count to the rio games. 94 in total. and 31 of those gold. >> welcome, everybody. there'

got to focus on valeant.idor. is it actually defrauding insurers by hiding its ties to philidor. and that defrauded insurers? that is what is under question right now. there is some potential damage of this probe at $1 billion. on the upside we have retail and naff get. it's going to give up its holdings in the barnett shale to get out of $2 billion worth of pipeline contracts. no payments for the barnett. barnett shale is really u.s. shield revolution started. found itse chesapeake home and expanded into the biggest natural gas producer in the u.s. a huge transformation for this company. we were just talking about the extraordinary quarter for kohl's and macy's. kohl's blowing away estimates. margins were better. that is the good point. the negative was it cut its 2017 forecast. comp sales were lower than estimates. in terms of getting macy's, earnings above estimates but it's about managing their store inventory. closing 14% of its stores and planning to shrink further it store portfolio. looking at joint v

today's pop in valeant does help mr.ut he is still as underwater as a slip wrehip wre right, kate? >> that's one way to put it, tyler. every day depending on the position. today, ackman's had a nice run. he's made about $100 million on paper today on his valeant stake, which is a little shy of 22 million shares. that's just the common stock i looked at. however, bigger picture and you were just talking about this, year-to-date if you look at his position, he has lost about $1.6 billion. now i should say i made these calculations with the assumption valeant was trading about $27. it's actually even gone up a hair since i made that calculus about an hour ago. it's really ticked up steadily today, which is interesting, meg, isn't it? the market seems to like this news. almost like it's sinking in and buying more and more throughout the day. >> actually, meg has departed, but it is an interesting thing as the stock is moving sglup unless you think there's more and more short covering throughout the day. >> well, that certain

valeant is down 90% from the peak. we didn't own it then. but we own it now. maria: you are not worried about a criminal investigation? >> i'm always worried about a criminal investigation. but companies have been investigated criminally for a long time. it looks like if there was any issue there, it was more on the philador side than the valeant side. if they could figure out the relationship between valiant and philador, so cot insurance companies. but the stock is too cheap in the low to mid-20s. we think both of those could double in the next two to three years. the second largest holding we have is atr earks xon which is a leader in synthetic biology at the cusp of revolutionizing the entire globe. so what synthetic biology is, we discovered the ability to rewrite and edit dna. dna is in essence to living things what software is to computers. so theoretically by editing dna you could cure any disease. it's all about the instruction set and what happens. and trexon operates across a wide variety of different industries so they have the only approved geneti

>> what we saw with valeant their stock went down, so it could be a vulnerability. what are senators going to do? are they going to talk the talk? or are they going to actually do something this time? >> what about the fda? they've had a generic that's out there, but they have failed to move on it. might this nudge them, do you think? >> we don't have any transparency on that. the fda should come clean on what's been holding up a generic. the product doesn't have a patent, so testifia farm suit occasion that filed for the generic, they have been turned down a couple times, so what's the delay? >> so does milen set the retail price of this medication? in other words what i would pay at a cvs or walgreen's? and what percentage of the mime who need it like sue pay that full retail price? >> we don't have data on that, but based on their disclosures, the profitability of the product has gone up in the last couple years. they might say they're investing a lot, but based on the disclosures it looks like they're making more money, about 60 cents of every dollar worth of sa

valeant is tumbling following its the report of a criminal by federal prosecutors. we will talk about the troubled company and its past history. focus onfirst we will the markets. let's go over to julie hyman. julie: records again for another day. will see if they hold onto them by the close of trading. streak this continuing of less than 1% moves in the s&p 500. at the moment, all three major averages are at highs if i'm not mistaken. it looks like some of them are at intraday highs. we are trying to figure out when the last time all of them hit the levels at the same time. theg back to the last time dow set a record on july 20 of backyear, you can also go to july 20 last year and again we have seen, it took longer to -- for the nasdaq to hit those levels. in terms of what stocks are contributing to the gains in the dow today, we got nike, chevron, and ibm. ae only one that has more of catalyst would be chevron which is rising along with oil prices. is helping with the updraft ghosting in stocks over all this is something that matt miller picked it out earlier is t

vonnie: shares of valeant plunging today. this follows the fourth.he drugmaker is the target of a criminal probe. federal prosecutors are investigating whether they hit their ties to a mail-order pharmacy, according to "the wall street journal." did we just hear that everything was going to be fine? cynthia: for the purposes of how to run thents business, he did give a positive and upbeat call earlier this week. what was positive was essentially not negative, if that makes sense. they averted more bad news earlier this week, but there was a relief rally in the shares early this week and now the ongoing investigations, which we knew were around, but the magnitude of them and the amount that they could impact rally and are coming back to haunt them. delta woke up this morning and still had the headache from yesterday after counseling 1000 flights yesterday and they say now that more than 304 not take off today. all because the computer failure in atlanta. what do we know at this point? delta know about what caused this? you think an airline of this siz

appreciate it. >> we're going to talk a little valeant.eant pharmaceuticals just out with earnings. missing estimates on both the top and bottom lines. other good news imbedded in there. >> did miss expectations. analysts have been looking for 148. they came in 1.40. versus $2.6 billion, but the headline really is reaffirming 2016 buy the dense which many analyst expected them to lower again. so reaffirming that is ahead of analyst expectations. ceo also saying in the press release they're announcing a new strategic direction for valeant today. not getting a lot of detail. they say that involves reorganizing the company and reporting segments. we saw a few knew executive appointments yesterday. we expect to hear more of that on the 8:00 a.m. conference call. >> some criticism of who they brought in at least to run strategic communications. not someone who has done a lot of communications work before. background in finance, i believe. also people are going to be looking for a lot of information how they're going to handle the $32 billion wo

he's been obliterated in valeant. he can blame valeant all he wants. but it's like if you bought exxon the day before the bottom dropped out of oil, that's what you do as an investor, your entire job is supposed to be smarter than the market. in your long illustrious history, have you ever seen an investor hang onto a position like this? >> yes. he did with nbia. >> yes. i have to tell you we get so used to this short term of focus that there are investor who is have very long term views. and there are investors who maybe -- i was having lunch with a very good hedge fund manager the other day who was in san diego, and we were talking about this. and he has sticky money. and he can take very long term views of things. and if you have a very long term view, you can take whatever view, you can trade around it. but there are -- let me tell you something, on some of these situations the shorts get into are troubled companies, broken business models, other types offiof i issues, sometimes it takes years to play out. but what are you supposed to do -- >> i ca

didn't we hear from valeant saying everything was going to be fine?id give what would've been a positive and upbeat call. what was positive essentially not negative. they basically averted more bad news earlier this week, but there was a little bit of a relief rally. these ongoing investigations, which we always knew where around, but the magnitude of them and the amount they could are coming back to haunt them. >> delta woke up this morning and still had some of the headache it developed yesterday. after canceling 1000 lights yesterday, more than 300 won't take off today because of a computer failure monday morning down in atlanta. what do we know at this point? what does delta know about what caused this? we heard something about a power failure in atlanta. you would think with an airline of this size, they would have backup system after backup system after backup system? >> they do have backup systems. the big question is why those backup systems did not work. delta says they had a power outage in their facility. georgia power says the power was ge

valeant shareholders should cheer it. >> yeah. i'm trying to think of a corollary. like someone leaving x for y. >> if you saw someone like mcer inry ineny from 3m to bogey -- mcinnerry to boeing, ed breen who moved over to do great things at dupont, typically a cfo is not as important, but here it is. $30 billion in debt. i think this is an exciting move. again, i'm not a big fan of valeant but get rid of debt and there is a guy who can do a lot of financial good. zoe tis since pfizer spun it off has been on fire. i like this move. great cfos are hard to come by. [ inaudible ]. >> as the cfo. >> we know you and carol. we'll talk about the other management moves today and of course get the opening bell with kobe bryant when "squawk on the street" continues in a moment. get funky with your chicken. on average, one in 6 americans will get a foodborne illness this year. so, learn the right temperature to cook each type of meat. keep your family safe at foodsafety.gov. >>> you're watching cnbc's "squawk on the street" live from the financial capital of the world. the op

valeant's second-quarter earnings cut drug prices.ldwide --er rounds that will pay above monsters monday. monster went public when it was an advertising agency known as tmp worldwide. lines on lowere demand for vacations from the u.s. to europe. norwegian also cited the weaker british pound. there is also concern of the zika virus spreading in latin america and the caribbean. flash.t is your business nejra: still ahead, the european close. how markets are trading. let's take a look at stocks. up 1%,ot the stoxx 600 the dax heading for a bull market. let's switch up the board because big story in bond markets today. the 10 year and 30 year yields have hit fresh record lows. at can see the 10 year gilts 1%. this is bloomberg. ♪ ?c+sv vonnie: live from london and new york, you are watching the bloomberg -- -- the european close. let's take you through all of the market action and boy has it been a day. every industry group in the green. we were seeing a majority of them in the green, but all in the green at the close. carmakers leading t

. >>> another day, another valeant story. "the wall street journal" reporting the u.s.ng into the possibility of insurance fraud involving fila dor which was not technically a unit of valeant but gets ply cated. >> it could be an issue. the last big fraud we had in u.s. attorney investigation was in july of 2002, a situation for bristol-myers. stock had fallen from 50, when they realize told you there was channel stuff not unlike valeant saying in the hundreds to 21 bristol-myers. that's where you found out about the federal investigation. the stock went to 30. in other words, when you find out about the federal investigation, it tends to be at the end, not at the beginning. if you want to sell val nts, sell valeant off the balance sheet and the possibility that the expectations are too high set by jo papa. i would not sell it off of this investigation which i'm surprised hasn't happened already. it was somewhat unbelievable that you could have all that, all the stuff that citron pointed out and to have no investigation before, the man who ultimately what happened to br

it was tarred by the brush of valeant. it is not valeant.eparate and different company than valeant. they have an excellent ceo and i worked with him. tomade a fortune once he got be ceo. i look him as a great com knows what he's doing. allergan and we made a great deal of money with it. we finally got that done. i have sold it and it went higher. i thought if it ever comes down, i would buy it. it is notwn and valeant therefore, i bought the stock. i think it has a good pipeline but i will not go on tv to tell people should buy or sell. think brent is an excellent ceo and we have gotten along great. into,companies we get they listen to the ideas we have. we have been around a long time. we get friendly with them so it's not like warfare all the time. there is war and peace. i'm just telling you there is more and there is peace. -- there is war and there is peace. these are good people. i think the epa could be fine. i think they should look at this thing and become rational. that's all i ask. you don't think there's any chance the epa, as i

valeant shares are rising today.said they're delivering on what they said they were going to do in the first quarter, stabilizing the company. he did say that in every single meeting he's ever taken with investors, the question that comes up is about the company's able to meet the debt obligations. they did say today they're going to seek amendments on those agreements. he hopes that will make investors more comfortable investing in the stock so they can start talking about the pipeline and product and other things more key to the business. asset sales are a big issue for valent right now. valeant right now. he said no, this is not going to be a fire sale. back to you. >> all right. all important points. thank you, meg tirrell. >>> up next uber's big plans for latin america. uber's head of brazil joins us from rio. wayfair tumbling after it missed estimates. the kreismt will join us live. don't go away. >>> welcome back to "squawk alley," live from rio. getting around the olympic games has been a major focus. congest

before the bell, coach, valeant, two of the big firms set to release. after the bell, disney is going to be the big one to watch. and just to factoid as we look through the economic data, some of the smaller data points on the agenda today and this week, especially after the last jobs report, but david rosen burg writing that the last time the federal reserve waited this long, six months after a hike, the next move was a cut. >> that is interesting. >> which some people are thinking could happen. if you're looking at the labor market versus the gdp. >> it's not going to be a six month weight or seven or eight or nine. it's going to be 12 months. i wonder if there's data going back if you wait even longer. >> i don't know. >> we'll have to wait and see. >> david, write back. >> the big one, wall street analyst looking for disney to earn. among the big areas to watch, theme park attendance, the performance of the cable networks and the studio business. shares of disney year to date down about 9%. the fact in the premarket today. >> in corporate news this

prosecutors have opened an investigation into valeant. whether it hid the relationship with a pharmacy that helped increase sales from insurers. previously disclosed in investigation by attorneys in new york and continues to cooperate. >>> shake shack under pressure after same store sales at the burger chain grew less than what wall street had expected. earnings and revenue did top estimates. it's down 10%. shares of am rin getting slammed. >>> coming up, shares of alibaba. will it follow amazon's lead and reveal a blowout quarter and what does it tell us about the strength of the chinese consumer, but first facebook and twitter question today, it's hillary clinton's turn to outline the position on the economy today. we asked, who has more contribute on the issue? donald trump or hillary clinton? send us your results and we'll bring them to you later in the show. amazing is moving like one. real is making new friends. amazing is getting this close. real is an animal rescue. amazing is over twenty-seven thousand of them. there's only one p

we made one very big mistake, taking a passive position in valeant.price for the assets of the company and betting on management's ability to create value by buying other assets going forward. and that was -- we can spend an hour or two talking about the mistakes we made there. what's interesting is today, valeant, we stepped in and joined the board is now a more traditional pershing square investment. we normally invest when the shareholders have lost confidence in management. and that's what happened here. but it wasn't just management. the financial statements were delayed, there was a potential fault. it was very similar to when i joined the board of general grove when they filed for chapter 11. i didn't think valeant would have to file for chapter 11, but it was the same experience. if you look at what happened, steve and i joined the board, we brought if joe papa, the board recruited joe papa. we have an almost entirely new board. last week, joe brought in john harradean, they commitmented to delever the business, identified assets they're revie

valeant, the soap opera continues. they reaffirm forward.luted to say the least. 1.40 off 1.47 this morning. equities, bonds, currencies, commodities -- we have adam parker on. we will get to him in a moment. flat, flat. vixvix, we have a great chart. sterling is weaker in the last hour. that is important. the low yields, francine, in the united kingdom -- stunning. francine: you have stolen my charts. the pound dropping at the bank of england. it has fallen for a fifth day let me point you to commodities. bonds overall are climbing. you can see oil at $43. tom: we are going to talk to adam parker a lot about the markets and their linkage into bonds, currencies, and commodities. trade-weighted u.k. back to john major, over 1992 in the left corner. -- in the left corner. strongerring in, sterling. lehman lows, we curve over, and the red circle is where we are now. we are back to john major. the blue circles are a quick interpolation of where the u.s. dollarrade weighted would be. the massive gap between a strong u.s. dollar and a crushed poun

and one focused entirely on valeant. >> nobody is going to come out for mylan. in this political environment, there's not going to be somebody stands and says i think there's a good argument for them keeping the price. even if you truly believed in the free markets in that way, they have got to come out with some kind of negotiated solution right away. >> craig, would you buy mylan? is this opportunistic? >> too many cost currents, too many headwinds especially with the election coming up. there's a lot of rhetoric. i would wait. but at some point -- >> margie, you talked about sectors, biotech sector under a lot of heat. do you like that sector? >> i think the issue isn't just a price like epipen, i think throughout the products, all the drug companies and biotechs have been having really big price increases the last few years really contributed to earnings. so i've been cautious on the sector for a couple years feeling that this was really going to depress earnings because they're going to have to put a lid on prices or reduce prices. even on drugs that haven'

new trouble for valeant, making a criminal investigation., dow expected to open up 30 points and this morning, it's more about the retail sector than others and it's better than expected news, largely. in news, strength in france, cac quarante up, and dax in germany off of the highs, but none of the less higher by a third of a percent. and in asia, not major moves by any means. unone market under pressure. the international energy agency loge the demand for oil last year as saudi oil production hits a new record. tim tebow looking to maybe the jump from the gridiron to the diamond. do major league teams want to put him on the roster? turning back for the race to the white house. donald trump on the attack and slamming hillary clinton's economic record. as she's set to unveil his tax plan in warren, michigan today. >> that's why i rolled out specific plans about how to create more jobs, to get incomes rising, in the first 100 days of my administration, we will make the biggest investment in new jobs, good paying jobs since world war ii. >> sh

reporter: valeant pharmaceuticals sticking by its financial outlook. that was huge relief for the investors. it has had a rocky last year. gaining nearly six bucks a share. we have other stocks with interesting stories today, norwegian cruise lines, shares down about 11, almost 12% on the session, cutting its financial guidance because of weakening u.s. demand. norwegian cruise lines fewer americans are booking trips to europe. you can figure out why. concern for terrorism overseas and around the world for that matter. shares of gap, down today as well. comparable store sales down more than expected, 4% in july, and the gap is blaming banana republic stores, throwing banana republic under the bus for the disappointing report. shares as a result down 6.25%. back over to you. david: lori, thank you very much. phil, i have to talk about oil, it was winning along with the market the first half of the day but it turned around. why? >> it turned down because the u.s. shale producers are hanging in better than we had anticipated. the energy information agency

valeant, the skir rely guy, that guy is crooked. all because the government creates a monopoly with patents on drugs and device patents. if there was no government which everyone seems to think we want. >> i don't. >> because it wouldn't work. i love huge government. >> there was no patent protection you wouldn't spend any money to make a drug because everyone would make it for a dollar after you make it. you need the government protected patent and government regulation. so many areas, yes. the fda is slow-mo with the competitors but also medicare can't negotiate the price of these things for some crazy reason. they should be able to negotiate if it's a monopoly situation. they should be able to call the price on 800 milligrams of i beau pro fan which is $3. >> john, final word to you. price controls from the government are going to be less innovation and less life saving cures, period. >> no one is offering a solution to fix exorbitant prices like this or price gouging. demagoguery at its finest. mostly politicians are incompetent

there are valeant rescue efforts under way coordinated by a number of sheriff's departments where the civilian rescue force are bringing boats out and helping to get people up. >> we can take another look at the live radar down there. it looks like this storm system is just circling right over new orleans and then farther west to b baton rouge and dumping more rain. any idea how long this will last after the rain stops? are you getting a sense this will dry out or talking about weeks maybe through the end of summer? >> if everything stays according to current trajectories, it looks like the next few days, probably the next three days we'll probably see water bodies crest. weep in mind forecasts show we'll continue to see additional rain water. >> congressman, stand by. we have sound into our newsroom from governor john bell edwards who spoke a couple of minutes ago. >> we have record levels of flooding along rivers and creeks. we don't know how wide the water is going to get in those areas. we don't -- this is unprecedented so we don't have records that we can go back and see who all

valeant says it is cooperating. -- its ties to online suppliers. relied on its: brandon new stores to post scored but the company and analysts say the sector may be headed the recession. brexit has hit the british health market good they have had the fastest to clients in 2008 and british home prices continued to rise in july at the slowest patient years. a little bit of a touch on brexit. a productivity report was absolutely stunning. is with us from citigroup as we look at the american economy. can brexit make it across the atlantic? >> it's already here because we see it in politics. have visit people have rising incomes. the parsimony issue is the main issue in the world that is keeping real income low francine: isn't the brexit impact the same fear that we have with the donald trump candidacy? means that markets need this can happen? right, where it starts to manifest and break up the political unity and breakup political cohesion to get fiscal policy going, that is dangerous. tom: i want to link this angst and uncertainty with over the market

officials are investigating valeant again. according to the "wall street journal" the justice departmen is looking into whether the pharmaceutical company defrauded insurers by hiding its relationship with a pharmacy company filador and this could result in criminal charges against management. shares fell 10%. >>> alibaba reported higher profits. alibaba's executive vice chairman says sales were strong. . >> for the quarter that we just, we generated $4.8 billion of revenue, that's 59% growth. it's the highest growth rate we've ever had since our time of the ipo. >> shares up 5% today to 91.77. brinker international saw its profit and revenue rise as the restaurant company benefitted from an addition of more than 100 new store locations. the results topped strexpect expectation. the owner. restaurant chain chili's also gave upbeat guidance for the year. shares bopped 12% to 52.72. >>> well with stocks at record highs a new report shows that investors have actually been funneling more of their cash into bond mutual funds, less

we should point out valeant a pharmaceutical company and mylan a generic company.harma has been getting hit in part because of the sentiment around this. i want to get to the mylan news as well. they did introduce, we should say, of course, that first generic to its -- to several weeks from now they're going to launch at around $300. this generic epipen priced at about 50% below the branded epipen. mylan taking actions to reduce out-of-pocket costs last week after all of this pressure. jim, to the broader thesis. >> right. >> investors and pharma believe what? this pressure is going to continue, that -- >> you don't -- >> a clinton presidency which appears more likely based on the polls at this point, that congressional action is going to continue to hold pressure to the pharmaceutical companies and their ability to raise prices. >> because of the house and senate, drug companies -- the house is still a long shot for the democrats. >> it is. you see those articles about how -- >> you do. >> but i think that it's all the piece. utilities went down, real estate inves