A long interview and covered a lot of topics. Mylan had the target on their company and heather had the target on her back as well. Not only because of the price increases but the jump in compensation for her and other executives. Bad combination about 90 days before one of the most contested president ial elections in American History and really the epipen price increase, not just this one but 17 over the past decade or so since they bought the drug from a German Company was squarely in focus and we talked about it. And in part she blamed the system. It seems everybody is taking a cut. I layed out there are four or five hands that the product touches and companies that it goes through before it ever gets to that patient at the counter. No one, everybody should be frustrated. Im hoping this is for this country. And see if she rolled back this price increase the others in the chain may not. Thats why she argued that the rebate they offered, the 300 would be a better deal for consumers than rolling back the price. A lot of people disagree with that, but thats what she is saying. Brian sullivan at hq, well be listening to that sound all morning long. Thank you very much and chuck will be on fouer lunch at 2 30 p. M. Eastern time today. Is that it . Is this a big game of pricing chicken . And rolling back would not have guaranteed anything . Its a great interview and second when brian pressed her about are there going to be future price increases she always defaulted to im running a business. Of course were going to take every penny of profit we can and as we talked about last year and u. S. Businesses have gone astray and its not about profit or serving customers or employees. Its 17 price increases over the last decade but the product hasnt changed. People are willing to pay for innovation but theres nothing about it that changed over that time and she tried to say we hid the needle. The delivery is a little bit more efficient but is that enough, do you think, for the company to kus identijustify it . Theyre doing what they can do. Lots of companies do this and the big scandal earlier this year is you do this, you buy the drug and start jacking up the prices. Valeant did this thing and when everybody figured it out they got angry justify bli so this someone of the issues with our system where were protecting with patents and time frames. In this case, especially with such a simple product you would think, you ought to be able to have five manufacturers and start competing on price rather than patent protection. John did you have one . Doesnt this feel like a defining moment . Not everybody uses an epipen but almost Everybody Knows somebody that needs this and in any other industry does this happen . If we saw iphone prices go up 17 times over the last five years under tim cooks tenure and his salary had and it seems to me like a defining moment where somebody is going to call this on the carpet. Its quite something isnt it . And its the protection we are giving them to deliver as much as they can to the bottom line. Consumers are focused on health care and hopefully it is another moment as we try to figure out why the Health Care System does not perform as well as so many other countries, including for epipens where we try to fix that as well. They tried to break down the different parts of the system. We just showed the graphic at headquaters. Is the ball in their court now to explain this . There is a system. Its very complicated. I understand how she was looking at it. Mylan does not have a right to continue to increase the profit every year doing it because it can and she has to answer for that and our Business Culture that is so focused on that has to answer for that but the system itself sure you could go after patent protection. Thats one avenue and the other is increased competition and the other is just have a massive system like medicare that has the leverage to go to others and say were motte paying you 300 youll get 50. Down 4 today. Then theres uber. Losses reportedly accelerating. A new report shows the company lost an estimated 3 quarters of a billion dollars according to a Conference Call with some investors its a spectacularly huge loss. This Company Raised 16 billion. Most of this loss is probably in china where they were getting their clocked clean going head to head with a chinese company. If we get a situation were in great shape forever. 85 of the u. S. Market so theyre going after that and that has been their objective from the beginning is we can spend now. Its cheaper now than to break in later. One of the lower parts of the original report says uber has 8 billion in the bank and has access to 3 billion more in credit. Thats a lot of money that the company gets to tap into. Its still a lot of money. You can see why they waved the white flag in china. Looks like 7. 25 is left. Thats not too much. You look at what happened over in china. Its in an alliance with rift and seems like they want left around and integrating their system so that customers will be able to get a lift very easily. Same if they two to Southeast Asia on grab. And system seems like the daytoday tactics are shifting and making things easier on drivers. Im being pushed to use uber pool as much as possible and go to spots that are convenient for the driver to get me. Is it having to shift its aggressiveness bumping up against realities here . Certainly theyre having to change the public tone and doing things that are less aggressively naked competition which was starting to irritate a lot of people. To kaylas point they have a lot of money in the bank. They have the ability in the markets in which they want to dominate to continue to put pressure on lift and others for awhile ultimately thats going to close down but uber has been staying it is profitable in the cities in which its been operating the longest. Finally an m a blood bath coming to the media landscape. Shane Smith Building a war chest to pie market share. He predicts next year will be a period of enormous consolidation in the Digital Media space. Youre going to see a mergers and acquisitions frenzy where the last two or three big boys buy the last scale place. No one ever accused shane of having timid aspirations. The elon musk of media. He says it and it somehow happens. Its amazing. How much credence do you put in this prediction . The whole Media Industry its been a blood bath for 20 years in newspapers and now the collision is happening with the tv industry which is far larger, you will see a couple of it. Its players he would want to partner with or buy. Hes talking about smelling blood in the water and all the things that vice can go out and buy. Its worth 4. 5 billion. Disney is worth 150 billion. Effectively starting with that. Now its worth 5 billion and theyre selling it and growing very rapidly and it didnt rule out the possibility. He did tell the journal he thinks theyll be worth 50 billion. Yes he did. The elon musk of the Media Industry. It also happened when buzz feed announced plans to do what is obvious and that is split int entertainment if news. And linked in and others and thats where the real innovation is now. And splitting news and entertainment is about money. Entertainment is a much safer environment for advertisers to be in and you can do things about Product Placement and theres much more concern about integrity. What buzz feed is trying to build is a modern day tv network where a tv network like nbc has a huge range of programming that they produce over 24 hours with some hard news involved. And theyre much more Product Placements and so far. Its working very well. Thats why were launching our own. Going to have a little Product Placement right here. Thank you so much. Always good to see you. Great to be here. Meanwhile markets have been lower for much of the morning. We just saw the dow and the s p go positive. The nasdaq as well. Nasdaq had seen green earlier in todays trade. Part is on the back of oil that he versed its own losses. We did get some positive data in the form of a respite for durable goods orders for the month of july. And moving higher this morning and the most recent quarter. And shares of netflix getting a boost. William blair upgrading the stock to out perform citing a strong risk reward ratio. New price target for netflix 145. Currently sitting at about 98. When we come back, why its bad news from broadcasters as the Trump Campaign continues to skimp on ad spending. Plus selfdriving Technology Investing millions in a company. Were going to talk to the ceo and then later on she is a former executive at yahoo pinterest and microsoft and shell join us at the bottom of the hour when squawk alley comes back. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. [chains dragging] [eerie music playing] [crickets chirping] [owl hoots] announcer if you dont fix them, sparks from dragging tow chains can cause a wildfire. And that could be scary. Bye, smokey only you can prevent wildfires. Your Business Needs better technologywho wants to buy that to drive better performance. So you need it to be reliable and fast. Really fast. Introducing the comcast business Summer Savings event. Fast Internet Speed to drive performance, plus cutting edge wifi for your employees and customers, and voice mobility so your calls find you wherever you are. Get some of our most advanced products at a great price with over 500 in savings. Call today and ask how to get these savings plus a 250 prepaid card. Comcast business. Built for business. Lets get to dominic and get a quick market flash here. Medical shares are down about 4 now. Down as much as 6 . This after a more negatively Oriented Research report questioning some of the products that saint jude medical put out there. Its because of this Research Report. Back to you guys. Donald trump may be all over tv but hes spending almost nothing on ads. Julia is in l. A. With that. Hey, julia. Hey, that is a potentially troubling stat for broadcasters. Donald trump spent over 4 million in tv ads spending another 14 million according to nbc news and advertising analytics. Thats a steep decline from 2012 when mitt romney spent 38 million by june and obama and romneys campaigns each spent more than 400 million by election day in 2012. Hillary clinton is far outspending trump but has a ways to go. Her campaign has spent 114 million. Now theyre looking for the ad dollars to come from other political races. 2thirds of the ads are built around spending in tight races for the u. S. Senate and house. The local referendum and spesz spending. Now the media giants said in recent earnings reports theyre cashing in on political ads regardless of the frugal spending. All citing strok political ad dollars. Cbs saying they will be particularly robust. Now its the smaller local players that are suffering. Blaming its disappointing q2 Earnings Results on a political short fall saying that it will come in below its projections for this year. Now it is worth noting that all of these players are benefitting from a crazy political season that has been driving ratings toward tv news about politics and if you can include the primary race those are up from 2012. Back to you. It will be interesting to see how the next months play out. Thats for sure. Still to come on squawk alley, google, uber and apple all racing toward a practical selfdriving car but what will it take to get one of those on the road . And then she held top jobs at microsoft, yahoo and pinterest and now she joins us on the online lending business coming up. E. 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Now thru september 11th, upgrade and save on select tempurpedic mattresses and adjustable bases during our labor day event. The copounder and ceo appearing on squawk box earlier. Take a listen. They put together great teams but i wouldnt trade my team for any of those. Were making great progress and the proof is in the pudding. Were confident enough in our software that were putting it on the road in front of the public today. Joining us now is mike, the president and chief operating officer whose Company Creates part of the technology that powers selfdriving cars. Mike, thanks for being with us this morning. Good morning. So, using Laser Technology to figure out where different objects are on the road. How big they are. There was this accident that got a lot of coverage several weeks ago and a lot of people said if the car had been using it theres a greater chance that it wouldnt have happened. Whats your take on the need for that kind of technology if were going to have cars having those kind of functions and that incident in particular. Sure. We think it could have helped and youre talking about tesla and what theyre doing in general. We think they made great progress and customers love their auto pilot functionality. We also talked to many people across industry and they do have shortcomings as well as radar and they fill in the gaps nicely. You have this 150 million from ford. And part of the stated purpose is to go up into producing hundreds of thousands of units in a given year. Where are they going to go at this point . Integrating it into cars is pretty expensive. Google talked about the thousands of dollars it costs to outfit these things. You have time to build them. Is there other types of products that youre looking at that you expect to be driving themselves around soon . We have applications across the board, however were really excited because were pulling in autonomous driving as well as advanced safety features for vehicles and well see thousands to tens of thousands of seekels across the next couple of years and moving to hundreds and thousands and millions in the next four or five years. Particularly when people take the software that they develop for a full autonomy and make those cars such safer. What is it that people dont understand about maybe that this technology is going to be bill into that its not built into today . As far as its not built in today, built into pedestrians sides cars. Other applications. So were in applications for robots for Material Handling and for security applications. Were in Drone Applications for surveying agriculture, utility infrastructure and 3d structures in general and then of course into Mapping Applications for drones. How hard is china pushing on this technology . From what i hear, actually china not as excited about it in some cases because they want people driving cars. It gives people work to do. We have a different opinion. David holland created this technology in 2005 and companies have picked up that technology and we heard of positive feedback from the Chinese Government where theyre allocating portions of cities for autonomous trials. Similar to what were hearing about in singapore and strong governmental support for this in china. Its one of their primary motivators on how they can cut that number sooner. Specifically if they could pull this in by a week or two weeks, it has a difference on human life. All right. Certainly technology a lot of people are watching. Thanks for joining us. Thank you. Carl. John, thank you. Were about to see europes close today. Europe and across the u. K. In 2. 5 minutes. Sarah is here. A lot of red on the screen today. European markets running out of steam as the world awaits the u. S. Fed chair speech tomorrow. Not helping the mood out there. An unexpected drop in german business sentiment. The Business Climate index falling to a 6 month low and the president of that group saying the German Economy has fallen into a summer slump. Some of the big losers in german trade include some of the auto makers volkswagen, and bmw. Also hard for them falling in with u. S. Drug makers yesterday. This all in reaction to Hillary Clintons comments about the drug Industry Price tag which she called exorbitant. Glencore continues to drag it today. Detailed a 400 million cole hedging loss. Theyre with drawing the offer to acquire entertainment one. Thats behind peppa pig. Both sides are at odds over the price and finally an interesting tidbit in the tiffanys Earnings Call this morning. Reporting weaker sales in europe with double digits but did say interestingly we saw an up trend in the u. K. Fails almost immediately following the brexit. We believe that the weakening of the pound made london a more attractive tourist shopping destination so a Silver Lining there on what was a weak quarter but also weak european sector and all of those scenarios predicted on retail sales werent too bad. Amazing to watch. Thanks so much. When we come back, an inside look at the online lending revolution. One company is disrupting the space and forbes out with the list of the most Innovative Companies and youll never guess which one made the cut when squawk alley continues. Heres your cnbc news update at this hour. Rescue teams continue to search for what they believe are three people missing in the earthquake tra struck central italy. Much of the hillside town is reduced to rubble. It will death toll rising to 241. And its important on the road to retaking mosul. Severe storms causing massive flooding in parts of iowa on wednesday. Rushing water swept away vehicles and an rv as the Upper Iowa River has overflowed its banks. And your dna could determine how much coffee you drink. Identified a jean that effects how the body tolerates caffeine. They found that people with a sayre kags of the gene. Lets get back to carl. And the senator has not come menned. He says i am aware of the questions my colleagues and parents are asking and i share their concerns about the skyrocketing prices of prescription durugs. Today i heard their response and im sure theyll have a response to the questions. I look forward to working with my colleagues to lower the price of prescription drugs and continue to improve our Health Care System. Mylan ceos father and were also just hearing from president ial candidate Hillary Clinton. A spokesperson for her calling the epipen discounts and additional patient assistant programs today unsufficient and Hillary Clinton saying the price should be lowered. Back over to you. Meanwhile online lenders are disrupting the way loans are allocated and financed but could it be facing a loan slow down. Funding over 9 billion and ou thanks for being with us. 11 billion. Keeps on ticking higher. Tell me about the state of this market. Theres been coverage about concerns certainly after lending club woes. If youre not finding enough quality loans to fund . Were very different than lending club. Our consumers are different. Our Business Model is different. And so we have had our best month ever. We had one of ours on yesterday. We do three things. Student Loan Refinancing because the American Dream is no longer that. Its to live debt free. Its no longer Home Improvement. Its career improvement. You spend more money on your education and you want it returned in your career so we focus on those things. And then we do mortgages 10 down all online and then a wealth product so we think about people through their life stages and that they really want to ultimately live debt free and we hope to get them there. Which of the segments is growing the most now . What is driving that in particular . Its people that want to consolidate their debt or do Home Improvement or i had a guy that called us the other day that needed a french drain in his house. Medical emergency. Lots of Different Things where people need money for a short period of time so that business is growing and if you qualify for our products youll get a great rate. 10 down as a possibility. What should give everyone confidence that youre able to execute that better than the industry at large. Is it the quality of the borrowers that you have with their Credit Scores being in the 7 30s. What is it . Well, for institutions, its the quality of our borrower base. For borrowers actually its the Great Customer service they get that they can do it all online. They can do it all on their mobile phone and get great service. Our mps is in the 70s on our personal loan product is in the 80s. Its some of the highest net promoter scores in any industry because we make it easy, convenient and quick. You find out in two minutes if you qualify. A lot of people dont qualify because we look at things like Free Cash Flow and theres a lot of that in the valley. We get back to you pretty quickly. People want these decisions and they want it made convenient for them to be able to do it. Its corporations so we have Student Loan Repayment and we pay 200 for every one of our employ wrees a month that has a student loan to help them pay off their student loan faster. We work with companies to help administer that program so one of the largest law firms is one of our partners in that we have 500 Corporate Partners that do those in their companies. Hi, its good to see you. Im curious about the relationship with wall street Going Forward because the big banks used to be needed by the alternative Financing Companies to underwrite some of these products and they like to learn from you guys about how to innovate and be smarter about data but now we have the likes of Goldman Sachs thats going to roll out a new consumer arm later this year thats going to be data driven and im wondering if you feel like theres a time when wall street starts to turn on your industry . Well, you know, i mean, theres the one thing about these markets is that theyre huge so student Loan Refinancing is 1. 3 trillion and we only touch a small portion of it. So theres plenty for everybody. We think about marketing execution and operational execution and Technology Innovation and everybody is welcome and we participate in an ecosystem that is made up of lots of Institutional Partners and theyre varied and global. An interesting arena right now for Consumer Loan innovations. Well see where it goesful thank you for joining us. Thank you very much. When we come back, forget apple. Forbes is out with the list of the most inknow he have a tif companies but first rick s santelli, what are you watching today . Well continue to talk about the u curve because its a poster child for what the market may or may not think about the fed and you think you have seen it all this election season, i guarentee you i can tell you something that you havent seen and youll scratch your head on this one. All after this break. Today on the Halftime Report do you know about the epi pen pricing will this change rules for increased competition. Could it help generics . Believe a shake up for hedge fund pricing may be coming soon and a lot of big name individual movers. There are trades to be made and worked at medtronic and more. Lets get to the cme group. Rick with the Santelli Exchange ahead of a big day tomorrow. Absolutely. A big day. Its more of a big day for those in jackson hole and they have a real skeptical global audience. Durable goods and we did reverse last month and came up with activity in the durable goods sector and rivals data going back to the beginning of the year. And second round around the block and stands at 1. 2. The Third Quarter look that they look at now moved from 3. 6 to 3. 4. So i always like to see it. 3. 4 holes. 1. 2 sticks. 8 was the First Quarter and if we look at last year and that comes out to under 1. 6. Nothing to be proud of but certainly not recessionary and there in lies the quandry that they have to deal with. Too slow isnt there. Too fast isnt there and current policy done seem to be helping anything other than mal investment. If we look at the better than expected data the one thing that happened quickly was that and i continue to talk about this. To me, even a neutral reading on whether you think the fed tightens or doesnt tighten neutral is going to get more flat. Were breaking out at the range and touching levels we havent closed at since brexit. If you look at 10s minus 2s you can draw your own conclusion. Now as i said in the tease, when it comes to comments, strategies, lack of strategies, this election cycle might be the king of the mountain. When it comes to negatives of both candidates its for sure king of the mountain which leads me to my final thought. I have been riding the same train line coming into the exchange for 37 or 38 years and you get to pick out along the way for years always have political signs in their yard. I see none of them. Ill a car guy. How many Bumper Stickers have you seen . I will tell you that i did see a few. The burn, young people may not own cars but they found somebodys car to put a Bumper Sticker on and they were bernies but i have not seen any others and i think its wild. Now i know this is anecdotal at best but do your own experiment. The American Public is so embarrassed they dont want to disfwras their vehicle with the name of either candidates. Back to you. Still to come on squawk alley, forbes has ranked the 100 most Innovative Companies in the world. Apple doesnt crack the top five. Up next. Beetle snow. Kubo no. Beetle snow covered trees. Monkey nothing to do with snow. Narrator head outside to discover incredible animals and beautiful plants that come together to create an unforgettable adventure. Kubo wow narrator so grab your loved ones monkey dont even. Narrator and explore a world of possibilities. Kubo come on, this way. Narrator visit discovertheforest. Org to find the closest forest or park to you. Im just a guy who wants to buy that truck. Our mission at clover is to highest Quality Dairy products. Clover has relationships with 27 different family farms. The environment is who clover is. Without it, were nothing. Pg es been a great partner. Theyre the energy experts, were the milk guys. Pg e worked with clover on a number of Energy Efficiency projects to save energy every month. If youre part of the fabric of the community, youve got to ensure that you do things right, environment included. Learn how you can save at pge. Com save together, were building a better california. Fork. Forbes release the best companies of the year. Joining us now is the reporter who shadowed him across the world and the writer of that story. Welcome. Thank you. The first thing that strikes me is most of the companies are more than 20 years old. Normally you would think of an innovatives companys last as being companies that just started yesterday. The list came out of Research Done by harvard and what were looking for is innovation premiums. So a stock that is trading at a high multiple because innovation is built into it. What about sales force pick yashly, a company which you know so well comes in at number two. Sales force was number one the first three years and then it was number two the next two years and then its not always a profitable company. Hes more interested how to get to 30 billion in rev new you. You talk about his challenge, innovating at scale now as the company gets larger and larger and larger. How does he do that. He says its like changing engines on a 747 mid flight. Its a large company. How mark does it is he really jumps into every unit of the business when he thinks he can add strategic value. He runs everything off his phone and he doesnt use a computer and he goes in and looks at where he can make an immediate difference and he goes deep one at a time. John . Its an interesting way to count innovation based on the ability to maintain a high valuation over seven years. Is that in effect saying that a company thats already been successful cant count as innovative the way that you measure it. Number one is tesla and a lot of people are excited what theyre going to do if they can bring their prices down and reach more america but some older companies have a lot of innovation left. Apple is not on our list. We think their best days are behind them. If you look at their sales force theyre with more potential than ibm. What lies in front of tesla in innovation because it seems like theyre trying to get the formula right. Tess la is about the future. If they can reach that mass scale for cars that are affordable for most americans their potential will be unlocked. Youre drawing a line between innovation. They do innovate consistently. This is pretty drama free stock. A year ago we were talking about the potential for a sales force to not be a stand alone company. How did they successfully make it so expensive for a competitor to buy them. The key has been enterprise sales. Theyve had record 10 million and up and 100 million and up deals. They see the president computing wi excuting to the Largest Companies in the world. If youre getting billion dollar contracts over the years investors like that. You mentioned apple saying their most innovative days may be behind them, by what metric are they falling short at to make that list. We look for these new innovations like the iphone. When we look at the watch we dont see the same home run potential that you would see with an iphone. So i think apple still has to prove to a lot of people that under tim cook it can lead to that innovation. I think tim cook is a great expecter but innovation in the job style is something investors want to see. Theres a question of how much advancement in technology general there is still to do because weve gotten so advanced everything appears incremental. If you look at these Cloud Companies they change how companies do business and focus on the customer. If he can help people sell more stuff, then they will buy his stuff. Its a great read. Our thanks for coming in today. Thank you. When we come back this morning amazon has expanded in the cloud and devices in original content and one sign the Auto Industry may be next after a break. Welcome back to squawk alley crai. Muddy waters issued a negative Research Report on the company that drove the shares lower. The company has issued a statement where the chief Technology Officer of st. Jude says the allegations are absolutely untrue. Also they go on to say that st. Jude connects security assessments on an ongoing basis and they work with external experts as well so those shares down by 6 on a very much heavy volume here, about 16. 8 million shares traded so far. In an average day the stock trades around 2 to 3 million shares. Back over to you guys. All right. Thank you. Is amazon getting ready to start selling cars . The company is launching amazon vehicles today, an Online Platform for users to Research Cars and accessories. Its gotten reviews like books and other items. Its going to be an extension of the automotive store. Shares of true car falling on the news currently down about 9 . Never let it be said that amazon doesnt continue to look ahead to future market opportunities. In the meantime im keeping my eye on netflix breaking out over this upgrade. The target 145, thats the base case. Bull case is 185 but largely on the notion they can hit these targets for u. S. Subscriptions and get people to pay for the subscription and roll out the original content. People are keeping their eye on the epipen price increases. The response from the company from the hill is full blown today. Theres no doubt about that. So well watch for that. Lets get over to headquarters, melissa lee and the half. Welcome to the Halftime Report. Top trade biotech and the epipen fallout and mylan saying it will offer more rebates to consumers. The stock is moving higher but way off the todays highs. Todays traders. We start off with brian who of course scored the interview of the day with