this is china. is this china exporting deflation? there are the bond markets for you and the same story in the u.s. we're seeing lower yields. >> we talked about it many times in the past. it is an acceleration of that. in a sense the domestic economy is growing far more slowly, but your exports have been rising reasonably comfortably against backdrop of subdued world trade and maybe reaching a saturation point in terms of the world trade and having to deflate that more. i think there is some lodge nick the way the markets are working. dropped from 50-plus to 40. it is right. maybe it is all this silly season trading as well. francine: i'm sure that is a technical term. china has your confidence at the moment. what do you think we'll see from policy makers next? >> i'm sorry. i departments hear the question. francine: so far you're confident that they are on the right path. what do you think we can expect from the chinese government or policy makers next? >> i think china just needs to focus more on creating more confidence in financ

francine: the great fall of china continues. the shanghai composite plunges 7%. $2.7 trillion are wiped off all equities yesterday, european markets go for a rebound. ceasene: bhp village and its full-year profit plunge 52% -- bhp billiton sees its full-year profit plunge 52%. welcome to "the pulse" live in london. i am francine lacqua. manus: breaking news on the eve of this -- , beatingclimate 108.3 estimates and expectations. and the estimate was for 102. francine: better than expected. if my calculations are right -- and they may be wrong -- part of the survey was done in the first couple days. the for the market rout -- bef ore the market rout. expecting to be lower than estimates because of the china factor. but confidence at 108.3. manus: chinese shares have plunged again. routteepest four-day since 1996. the markets europe, have rebounded. we have more on that with caroline hyde in a moment. we also have richard frost. he is in hong kong. what is behind today's rout? richard: yeah, hi. fairly astonishing day giving the h

exports to china are 1% of u.s. gdp. >> josh, people watching tonight want to know about their investments here in the u.s., if they are investing in china in one way or another, especially the multinationals who might derive a lot of revenue. apple, i can think of, or other companies like that. does this give you pause or do you buy bargains at this point, do you think? >> i think you've got to look at it on a company by company basis. but overall, there are some companies that are more exposed, to be sure. i think the overall impact of the u.s. economy and u.s. markets, once the dust settles on this, is not likely to have a round of competitive devaluation or trade wars that could upset markets more. i think we're going to fall way shy of that. i think chinese authorities are going to tread pretty carefully here. in the coming days, things will settle down and we'll focus back on the u.s. domestic fundamentals, which are not great, but they are improving. >> and paul, why don't you take the final word here. do you

alix: but not so much in china. so for more on china and the wild few weeks on global markets, author of "the coming collapse of china" is with us. thank you for joining us. guest: thank you so much. joe: you've been a china sort of doomsdayer for long time. is what we're seeing now the hard landing that you've called in the past? is this it? guest: this is a hard landing. china is not growing at the 7.1% that beijing claims. it's not even growing at the 2.2% that they're privately talking about in china. it could very well be even lower than that. if i'm wrong, and i could be because no one really knows where china is, it will be there in a couple months. because what we're seeing is a severe deterioration in the economy. there's the devaluation, there's the plunge in the stock market, but most important there's the money coming out of china. there are various estimates, somewhere between $520 billion to $800 billion in the last five quarters. that's a lot of money. that's the chinese people voting with their feet.

china. as an old reporter myself how frequently he embellish the narrative with references from what he learned from the internal memos and the chinese interlocutors. this book is brand new published two weeks ago i am delighted to showcase its airbus -- and the author thomas christensen. [applause] >> it is great to be here to have so many people eyelet on a lovely evening. my book addresses two major challenges with china's rise is very real with the economic sphere but i don't think that china will replace united states as a global superpower any time soon pretty common the espouse the united states trying to drive the amount. ottman the security front there is a challenge to settle the many differences with the use of coercion and force. even though which trails the united states across the board even during the same period of time already in east asia it can cost to allies that could destabilize the region for the rest of the world but so that china is not a competitor of the overall po

for the most part, if you are selling in china, you want to be building in china. toyota had that attack -- that tack. so any issue with production could be significant for the company. the chinese market has been pretty challenging for foreign makers. what impact could this loss production have for the company's sales from now on? craig: interestingly, toyota recently found its footing in china. there has been plenty of headlines for years about the japanese carmakers having trouble in that market. really since the issues you had with the geopolitical tensions between the countries riling up a couple of years ago. the companies here in japan ever rebounded from that in a significant way. companies like ford swooped in and grew aggressively in china. just in the last few months, you have seen toyota put out these really big numbers in terms of sales gains in china. so any loss of production for a sustained period would be a real challenge, just given the amount of resins i have in tianjin. and the company really can't afford that when it is really just finding its

rules, one dependent china, or to china's. but if taiwan take off these proposals, it's a difficult to achieve, kind of feasible solution. if china can pick up or to launch some new thinking beyond the current system, that will be an interesting development for the two sides to consider. but i'm not quite sure about taiwan, whether we can achieve any kind of domestic consensus, for any kind of commonwealth as you suggested. >> in light of what you just said, you mentioned china branch. what they think of -- [inaudible] going to shanghai and what he would say about one china, all those things, consensus? they think this provides the flexibility is more pragmatic way because china is giving him recession. so do you think this will work? is this a modality both sides can pursuit? >> -- [inaudible] not a warm welcome in china. meaning that could be applied to level, i think of some limitations but you can see that he is very clever in his languages. for instance, he said that the one china principle is not a problem but he didn't

going intoeven china. we are focused on the middle west asiafrica and and southeast asia and we will be in about 70 countries over the next few years, but we're not even looking at the u.s. or china at this point. ok, our bloomberg news reporters are sticking with me, and adam, we will be watching your reports for more tidbits. speaking of apple, ceo tim cook's goal for apple pay is to reach one .5 million u.s. -- 1.5 million u.s. locations by the end of the year. they teamed with pay anywhere to reach that goal. >> we are the only company in the united states that allows .uyers to pay with apple pay so as a business owner, if you want to accept apple pay on your iphone or ipad, your only choice is payanywhere. reader will be available exclusively in apple stores next week. the amazon fire phone never caught on with consumers. now the e-commerce giant is dismissing dozens of engineers who worked on the device according to "the wall street journal." the exact number of cuts is unknown. amazon is not comment

exports to china are 1% of u.s. gdp. >> josh, people watching tonight want to know about their investments here in the u.s., if they are investing in china in one way or another, especially the multinationals who might derive a lot of revenue. apple, i can think of, or other companies like that. does this give you pause or do you buy bargains at this point, do you think? >> i think you've got to look at it on a company by company basis. but overall, there are some companies that are more exposed, to be sure. i think the overall impact of the u.s. economy and u.s. markets, once the dust settles on this, is not likely to have a round of competitive devaluation or trade wars that could upset markets more. i think we're going to fall way shy of that. i think chinese authorities are going to tread pretty carefully here. in the coming days, things will settle down and we'll focus back on the u.s. domestic fundamentals, which are not great, but they are improving. >> and paul, why don't you take theinal word here. do you t

china scares me. you have to keep in mind or i keep in mind as we invest, these folks are communist, not capitalists. they could capitalize their markets, i don't think they will but they could at anytime. their markets don't have same kind of rules or history. that is risk i would steer clear. probably more risk than there is reward. deirdre: ty, you are not alone on that. gop presidential candidate donald trump told us this earlier. >> think you have to do something to rein in china. they continuously cut their currency. they devalue their currency, i've been saying it for years. they have been doing it for years. this isn't just starting. they make it impossible for our business or companies to compete. they think we are run by a bunch of idiots. what is going on in china is unbelievable. deirdre: ty, i heard you say you have no exposure to china, being invested there scares you, your words. what are you doing in the u.s.? are you becoming more defensive? are you buying more gold? are you buying mo

so i just got back from china late saturday night. i spent a lot of time in china. as you know, it's a passion of mine. >> rose: you speak the language, spent some time over there. >> i spent a decade in china. i think this is one of the most misunderstood geographies in the world. now and probably in the future because they're bad communicators, author tearian communities aren't generally good in public relations which we have seen with the stock market and most recently with the deliberallization. but what is really happening in china is it has had unimaginable progress. i mean 20 years ago it was a desperately poor emerging economy. even at the turn of the century a $1 trillion economy. today it is a $10 trillion economy. this year it will be an $11 trillion economy. it is a very powerful dynamic country. and i think what is happening is part of the misunderstanding about the economy is that china is gos through enormous change. the last decade, 15 years have really been about twin engines. the first of course is integration to the world trading system. so all of

dictate the agenda. >> i'm the one saying you better stop china because china has problems and they're bringing us down. >> i don't think anybody would make the case that our economies are coupled. i think what we would recognize is the 21st century world economy, conditions in the world see their economy as more intertwined. >> various data suggest the u.s. is more dependent on china's economy now than when barack obama became president. our trade deficit with beijing is on track to be more than did you believe than what it was in 2009. u.s. trade with china occupies a greater percentage of our total foreign trade than it did then. exports to china make up a greater percentage of our total exports than they did six years ago. chinese holds have almost doubled since 2009 and direct foreign investment by china in the u.s. has doubled under the back home biden watch. carly fiorina, the former hp ceo who has flynn gop polls in weeks told fox business that the wild swings of evaluation as much to do with wall street as global dynamics. >> actually i've been expecting a correction for some

china devalues yuan. will it turn around china slowing economy? google announces a sweeping reorganization right out of the war in buffett playbook. -- the warren buffett playbook. we detail alphabet. termsgreece reaches the of a new bailout deal. while the greek parliament follow-through with the package of economic reforms? ♪ betty: good afternoon. i am betty liu. mark: i am mark crumpton. betty: welcome back. mark: thank you. let's start with china. it was a little today and it is a way right now and it's going all over the markets. both the dow and

china. as an old reporter myself, i particularly took comfort many how frequently tom -- in how frequently tom embellished his narrative with references to insider things he learned from, quote, internal memos, unquote, and unnamed, quote, chinese interlocutors. the problem is an age-old one, but this book is brand new, having been published just two weeks ago. i'm delighted that ipi has such an early chance to showcase it and its distinguished author, thomas j. christensen. [applause] >> thank you very much, warren. it's very great, it's great to be here, it's great to see so many people out on a lovely evening, and i really appreciate you coming to hear me talk about my book. my book really addresses two major challenges that i see that are attendant to china's rise, and china's rise i see as very real and the economic fear, the military sphere, the diplomatic sphere. but i don't think that china is going to replace the united states as a leading global superpower anytime soon, and i don't

slowing china is another added end to it. i'm not that concerned about china. liz: isn't it weird, elliott, china was affecting the oil markets yesterday. a huge importer on oil. yesterday when their market fell so precipitously, we saw oil drop. right now oil recovered in the after-market about 53 cents per barrel. >> you know, liz, the oil news, the china news with oil was another drop in the bucket, so to speak. i really see nothing but bearish news for oil. i think we saw this correction today and it's up a buck or whatever. we're under $40. i think $33 is the target price, and i still see oil as the sale here. as for the stocks, my guys all had a great day, that did happen. but oil, i still think oil goes lower. 33 buck us and reassess. liz: how -- and let's go back to something dan said, what are the chances this is a one-day phenomenon, highly unlikely, when we see the sell-off it's over in a day, is that worrisome to you? would you expect to see a bit more of a sell-off in a herky-jerky behavior manner. >> i've been waiting three years to have a 10% cor

sandra: and make it a look at china's economy and the economic slowdown in china's largest e-commerce company reports quarterly results this morning. lauren: this wicked exceptional reasons for those reasons. expect it to decline 57%. first of all are they paying off? $4.5 billion in a physical electronics retailer. and then a billion dollars into the food delivery company. then the reagan military pressure. they been clamping down on internet finance. in general china's economy is slowing down. what are the implications for alibaba. they did hit an all-time low yesterday and since they peaked in november, more than $90 billion of market value, it has been wiped out of the company entirely. we will dig into these numbers at 920 eastern this morning. sandra: sales will be the lowest in 16 years. the profits don't look so worried at the moment appeared sandra: we will have the interview with jo ling kent today later on fox is number. here is asia, markets following to radically overnight as the chinese currency continued its decline, shanghai and nikkei down more than 1%. hong kong is t

china? the merging market issues? >> i think it is monetary policy and china. those are influences of different variables and then there is the currency. we see those other two things that we're spending the most time on. manus: your largest treasury holding is in u.s. treasuries. that has been a tough quarter. you have made some adjustments. are the bond markets really ready for the rer received liftoff in rates that we might get from the fed and dare i ask whether you're a september or december man. what do you think to have bond? >> is our wealth going to be our place -- on future development and monetary policy. my experience is yes, i think you can generalize and say that. manus: interesting. the world getting ready for liftoff from a zero point world. are we prepared for that? where will that volatility come from? in the equity space or the bond space or the h the currency? >> it is hard to say of course. the market is difficult to redict volatility. equity markets have been flying for the last two years. . w it seems like it is slow there is some uncerta

china. i mean cue homer simpson going doe. china? really? this whole discussion is about global growth slowing down because of china. but someone believes apple was a real bargain, and they bought it and they believe apple is going to be selling a lot of iphones in china. deirdre: yeah, he made that very clear statement, adam shapiro, thank you very much. >> sure. deirdre: joining us there on some of the stocks that felt the hardest. so just talking about that. carry it over, if you have not checked your 401(k) today, today probably not the day to do it. gerri willis with me now with some words of wisdom. gerri, what is the best decision for the average person? >> well, come on. i think you've got to look and then you don't do anything. you sit on your hands, you do not make changes right now. that's the word that's going out from financial advisors to individual investors all over the country. you don't want to try to catch a falling knife. let me tell you the actual advice coming out of va

china is 12% of their revenue. devaluation is going to reduce apple's revenue in dollar terms by $30. how does apple compensate? it has to raise the price, which is difficult to do because they were at the top of the market and they are facing competition, or the business becomes less profitable for them. the additional problem is the chinese economy is slowing. we are in a bad period for luxury consumers. selling between $900 and $1200. these are luxury products. penetrate more markets in china. they're going to have trouble selling those phones pretty have been selling well in beijing emily:. china accounts for a quarter of revenue as far as june goes. let's talk about what it could mean for longer-term demand. the iphone is $300 more expensive for consumers. you have the smartphone market saturating. could that kill demand? iphones inmand for china? guest: sure. it depends on how the chinese economy performs. there a big question marks there. the chinese equity market is manipulated to some degree. the second fa

>> i have three words, china, china, china, oh by the way, china. that is all the traders need to watch. spin it forward to tomorrow, can't. can't do anything until tonight when the chinese markets open 9:30 p.m. eastern time. japan opens a little bit earlier. please keep in mind anything can happen when it comes to the peoples bank of china. as we know overnight last night they cut rates and did couple other things that lessened pressures on financial institutions there. watch tonight. watch the wires. watch foxbusiness.com, china. connell: usually watching baseball game at 9:30@night. now i have to watch the chinese markets. >> don't go anywhere. our panel weighs in what they expect tomorrow. what you need to know is coming up next. ♪ did you hear that sound? of course you didn't. you're not using ge software like the rig on the right. it's listening and learning how to prevent equipment failures, predict maintenance needs, and avoid problems before they happen. you don't even need a cerebral cortex to understand which is better. now, two things

, china. i almost can hear him in my sleep saying the word china. china. of all the things we have to worry about, like a ridiculous tax code, corporate tax rates, you name it, entitlements, he's railing on china? >> but you know what, he's resonating with americans because they are worried about us running up our debt and getting in bed with a country with questionable practices. >> i'm not saying donald is a demagogue but demagogues do this all the time. >> talking to me or -- >> she just pointed. >> she was looking at me. asking a question. >> sorry. i wasn't looking at her looking at you. >> katie. >> yes. >> you get the last word. >> i think china can be a positive force and a negative force and i think it's a concern they hold so much of our debt and people are concerned about china because they're being blamed for market crash in the united states over the past week and people want answers on whether that's true or not. and we've discussed that here today. >> it's simply not true. the t

there is no mention of china in relation to the south china sea. rishaad: i was interested to see the other day that china said, because it's about land reclamation with a lot of these islands, but a lot of these islands are not really islands. >> china's point is that they are not the first to do it. the runway they are building in the reef will likely be something like 3000 meters long, capable of landing the entire military aircraft fleet. that gives them a lot of range. the other nations don't have that kind of infrastructure to be able to compete. vietnam,hilippines, they just don't have the muscle china has. they all have done some kind of land reclamation. there are a lot of competing claims. rishaad: every time they get together, they are trying to build this regional framework, this free market economy modeled on the early days of the eu. they can't get down and talk about that because of this. making say they are progress. it is supposed to be completed this year so we are running out of time. the focus has always been and always seems to

is ite just hearing really that people's bank of china china jet more market? just trying to inject more into the market? trying to kill two birds with one stone. it has been struggling. this has helped a really important sector of the economy. hand, it wants to join. it would be helped if it makes it more market based. it is certainly taking a step in that direction. how much are they willing to tolerate the market? guy: how far will they let this go on for us to happens tomorrow? they said there is no economic or financial basis for the currency to continuously decline. it seems there are a lot of underlying and the mental's that should support stability. at the same time, we are in if theed territory market really will be determining the yuan value. markets themselves are very .ervous potentially a vicious cycle. caroline: we will wait and see. think you very much indeed. the currency saying it will fall continuously. it is worth repeating. it is something to think about over the next few days. get chinese retail sales. all of those numbers are coming up. we

china is a very large country. from the big city shanghai and beijing they have to cover the problem there. theydown into the valleys, have to build infrastructure to cover all those people. yet, there has been a saying outside because more people have 4g sooving from 3g to people can demand higher prices. the fastero use services, and the mobile data is the key point. more data usage means better revenue for the top line. we are seeing that in the last quarter. mark: thanks a lot. mobile,about china let's continue the time the story. evaluationhe yuan's mean for the country's richest? robert joins us now. how are the country's wealthiest faring a months -- amongst the slumping money? robert: it really depends on the window, the year to date looks pretty good. they are up about 50%. there was 28 from mainland china on our daily index. they were -- they collectively had to enter 64 billion at the start of the year. it rose near the end of may -- mark: june 12 was the pick of the market. robert: now they have fallen.

the key thing that turns the news markets into one is china, china, china. in lineearnings get with estimates. the red flag is what happens in china. if they do get the downturn they may have to revise their full-year targets. 1.53 percent, a red flag for the commodities market. copper is flirting with a bear market. we are in the green one third of 1% but trading with a 2009 low. it goes higher this morning by 1.21%. the two dollars. it is still in a bear market. the damage is done. going upt that we were in april and may, then it rolled over. in the commodity market and china, when you tie that together what do you get? maybe australia. the rba leaves rates unchanged. .he aussie dollar is up 1.34% it is in the statement. they did not say we need more depreciation of the aussie dollar. when you take out the job on the currency surges, making big moves across europe. 5 thank you. minutes, we are joined from new york. a big part of the show will be focusing on commodities. china had a great day to check their shelling. we saw a bid and commodities. we will sy

demand ishat china's slowing, that could help germany. china is important less. when you look at the trade deficit this year it is twice what it was for the end of 2014. some mixed data, not quite sure how to price it. it looks like the sentiment is optimistic. brendan: nick wadhams is in beijing. hans nichols is in berlin during his first non-greece hit in months. jason trennert with us. let's look at these two engines of the global economy. days and longer drops if you look back a month. the u.s. engine, if that is only have rely on, is it running? jason: the u.s. has a current account deficit, it detracts from gdp. consumption at 68% of gdp. government spending 20%. good in actually looks comparison to the rest of the world, largely because it is self-propelled. the consumers, u.s. consumers, have a lot going for them. ,ages seemed to have bottomed housing is an engine, savings rate is high. americans are saving. oil priceave lower and lower commodity prices, which are going to lift real discretionary income. brendan: the consumer who wakes up and sees this, i

the slowdown in china. it made a statement saying the china, the uncertainty causes -- currency wars do not help the black or grace wants. important. it is it is more exposed. let's dig into china a little bit more. concerns there. overall, china is the world's second-largest advertising market. the dpp has the biggest exposure. -- wpp has the biggest exposure. nevertheless, they remain unabashed bowls of china. they talk about their geographical superiority in their position. concerned for the current time, but long-term all bets on china. interested in seeing what executives are saying about china right now. statementssome mixed coming from the mining ceos. two other stocks to watch, paddy power -- those companies are due to merge. these two businesses are not very dissimilar. >> it is interesting. deeply as we have heard talk that we could see a slowdown in mergers and acquisitions given these concerns over china with stock valuations plunging. paddy power and bet fair merged. this is a wave of consolida

rg is new in china. it has been going a little bit over a year in china and china mobile had to spend buckets of money to try and roll it out, not just in big cities like beijing and shanghai but out to the promises where fewer people are. they had to spend a lot of money on that. they are getting a bit of reward for that investment. more and more people are switching to 4g. that commands higher tariffs. that has been good for them. it also means that people are using more mobile data. that's good for telcos. the other thing that has helped them on the bottom line going through the numbers is the cost have fallen. in the last year, the government itself has indicated that all telcos has spent as much money on subsidies. the old model where a telco would go out and buy expensive andnes or samsung galaxies sell it to consumers cheaper, that is going out the window. so now they do not have to spend that money anymore. this is equal across all of the telcos. they can save that money on marketing and that has

china guiding its currency lower. the devaluation of the yuan to support the shaky economy roiling world markets. slamming currency and complicating plans to raise the interest rates in the u.s. china's devaluation spree may be coming to an end. let's bring in alison kosik. they hope this is over. >> they do. a different stock picture this morning than this time yesterday. stocks are actually higher. asian shares are up despite china devaluing the yuan. that is driving stocks up in europe and the stock futures here. it has no more plans to devalue the currency. china central bank is devaluing the form. that means a stronger dollar which hurts exports. >>> a lower than expected supply in the u.s. but still a huge supply glut of oil output from opec. the national average for a gallon of gas is $2.61. that is almost a dollar cheaper than this time last year. guess what? analysts are expecting we will see $2 on average by the end of the year. yay. >> i was hearing by halloween. >> i say december. >> let's shake on it. i b

liz: you're worried about china? >> china is the model. we use a lot of those same governmental strategies to stimulate our economy. if they don't work there, there is a good chance we'll have problems here. >> i don't know why we're set what they did. we did that in the past. we don't devalue our currency on that dratdramatic basis. we can't control them. what are you recommending right now? >> what i'm looking at right now, investors have to realize there is a case to be made for real assets and i know the stock market has done well and there's always an opportunity in the stock market if you're selective, real assets, real estate. i think opportunity is still there. liz: i'm sorry, can i buy a reit? i will not buy a piece of property. how will you do that as an investable suggestion? >> the reit market, real estate trust market is not part of the stock market. liz: interesting you say that. >> more to look more at private equity real estate funds, real estate funds that own hard assets rather than trade in exchange. liz: look at intrada

maybe now china's stepping in. guest: is this going to be the race to the bottom as china has joined in on this? look at some of the regional currencies and the reaction yesterday. the singapore dollar, the yuan was down 1.3%. singapore dollar down to a five-year low. the global financial crisis, it's down about 12% this year. would you think, of course, it could maybe help exports. but this is not really an export-driven economy. malaysia. so this is going to be a problem. we have one analyst who was quoted on bloomberg as saying, we have a full screen quote, it will start a vicious cycle by different countries trying to depreciate their currencies. a double whammy because we have expected tightening of the fed and now this currency war driving to the bottom in asia. guest: it's interesting because i think for the next few days, they're expecting that we might ctually see the -- see it fall further. angie: then that would not be a one-time fixing rate. questioner: what combsh guest: what they're say something beca

watch china. it continues to go down despite its government, china's government putting hundreds of billions of dollars of bonds to buy their own market. >> that is really -- i don't ascribe to mr. dent's everything about his doom and gloom but make asfa nominal point here. chinese government is engaging in intervention on -- >> unbelievable. >> this makes -- melissa: not even intervention. this is puppeteering. >> this is 2008 on massive amounts of steroids. i mean, stallone times 50,000. stallone, arnold, and you know, top mma fighter times 50,000 is, what china is doing. and it is very scary. and hire's the scary part. the market traded up today very strongly at the end because of what the speculation, and sentiment was that we wouldn't raise rates 25 basis points. this is a sick, sick market. can't tell you it is going down. i don't know. i just know it is perverted. >> this is what bill dudley says different from what the two of you were saying earlier, one of his quotes. he says what we're s

so it's china and the fed, china and the fed. now that we've gotten through china will the fed raise rates is the big thing that's on on people's minds. impressive finish to the day. >> after the huge downdraft. we are getting ready to hear the closing bell sound on wall street after what was another wild and volatile day. here we go, here's a look where we are ending the day as the bells ring on wall street. better than 300 points for a while in the 3:00 hour, looks like we weren't going to make it into positive territory. there we go. >> up to 369, almost 370 to the upside. the biggest two-day point gain in the history of the dow jones industrial average back to back after yesterday's gains as well. >> ending up 2.4%. the nasdaq up 2.4%. larry levin of trading advantage is standing by at cme watching oil futures. gerri willis has the biggest stock movers. ashley webster for more on today's last minute rally. >> interesting, we were up around 300 points much of the session and mid to late afternoon we lost a lot of steam all the

the slump in oil is getting china's refiners and exploiters -- is hitting china's refiners. let's start with sinopec. coaster rideoller for them in the first half. the company was hoping that a fall in crude prices would offset this by increasing their oilning of oil, but refining records -- accounts for about half the company's revenue. that strategy did not work out as well as planned. sinopec also posted a 22% incline in profit for the first half of the year -- decline in profits for the first half of the year, as net income dropped to $4 billion. you can see them this year this yearbrent falling 25%. sinopec actually lost money and refining because they had to use higher-priced inventories in the first quarter that they bought last year, and in the second quarter they actually gained some because of cheaper crude. they didn't see that profit. cinookhow about -- they had crossed -- cost cutting measures. how did that affect them? shery: very harshly. they are the biggest offshore gas exploiter -- gas explorer. that income dropped to $2.3 billion. a did go ahead with cost-

on the china point, china has been for years buying about 45% of the world's base metal. so we sometimes think the weakness in china already priced into these stocks but this is a dramatic shift in growth expectations given the slow down in that country. >> the world's largest metal consumer. they have a massive say with regards to what's taking place but we're still seeing buyers in the mining today. >> at least in today's trade. >> so everything thrown out yesterday and everything being brought back up today. indiscriminantly. >> yes. >> let's discuss more on china and it's fate with phillip shaw joining us here around the desk. good morning to you. were you able to watch the market moves we saw yesterday without freaking out? >> everyone had a sense of trepidation about it. some people saying they've never seen anything like it before. i'm not sure that's true. >> never seen a 1,000 plus drop in the dow. >> percentage-wise it wasn't that dissimilar. in 2008 the drops were taking place against a massive change which was the risk that the financial system was imploding.

-china relations. then, afghanistan operations commander about the training of afghan forces and other challenges in the region. later, a discussion on the future of mexico. : ur attention to u.s. china relations. we want to welcome robert daly, who served as a cultural exchange officer. he now serves as the director of the kissinger institute in china and the u.s. at the wilson center. a state visit, his first official visit to washington, d.c. what can we expect? play toirst, for him to the audience at home. this is important to americans. it means a great deal to the and the chinese communist party. it is the first featured item of the nightly news. if you want to broadcast to china a sense that he is welcome -- welcomed as a respected major leader, so the primary audience is at home. he would want to speak with president obama and audiences but primarily china. people in china almost demand state visits. very important to the rest of the world. america is an outlier. we do not wonder who is here. b

in china, we're seeing a simulation at the moment of china getting banks to lynn -- banks to lend. banks tory and get still be able to lend, even though they've got a lot of loan loss provision to make. caroline: speaking of qe, there's been lipservice paid to members of the -- do you think? gotthan: the program we've will probably not be enough. they need to keep going. the banks are still in poor shape in terms of provision. they are going to be giving -- they're going to begin longer to sort themselves out. caroline: you're staying with us. thank you very much indeed. has been a roller coaster ride for markets around the world this week. nowhere more so than in china. what economic impact? stay tuned, because we are back with the latest research. ♪ caroline: welcome back. it is 7:45 here in london. here are the stories you need to know. switzerland economy has avoided a recession in the second quarter. that is thanks to consumption and domestic spending. analysts have been expecting further negative numbers. swiss economy minister has to loosen the country's rigid labor laws.

>> china devalues. its currency dropped sharply. >> chinese stocks surge on the news of the greenbacks surge against the dollar. >> google transforms itself into as it searches for a new future. good morning, everyone. welcome. two massive stories this morning. you have got what is happening story.a and the google text a record move in terms of the yuan. the dollar peg has been there for some time. you can see that clearly in the chart. usingre going to start the market as a mechanism. it is going to be interesting because it will have a big affect. you mentioned the story against the dollar with the euro, with the yen. it is going to be interesting. how does the fed react to that? reservewill become a currency. >> google is front and center. becoming a holding company. >> only if you are a stockholder. this is still google. also in the car area and the future of heating. >> you made a good point. in some ways berkshire hathaway is becoming google. this chinaabout story a bit more. let's talk about what

is part of the overall in china. so this is the best play in china for e-commerce and you need to be in this. a little bit of momentum came off. there's a direction going on but that's fine. at the end of the day this is the best way to play the e-commerce. >> the biggest e-commerce player in china. will today's results for the company be an important read through for the country as a whole? >> yes. it will give us some indication of what the sentiment is and where the market is going but not overall. i think e-commerce has such has not been impacted overall and the foreign exchange is really -- and this is a company that has 90% of its sales in china. i don't think the exchange rate should impact them that much. maybe in alibaba.com where you have the international sales. but that should help when the currency is devalued. that should make it cheaper to sell more but overall, 90% of the sales come in china. it's a very china sen trick company. you will get some indication, i think more than the numbers i think the c

china will grow at a stronger pace in the second half. they see 7% growth for china this year. they say that china is not impossible to read. that is a funny comment. andrew mckenzie of bhp litan says it is possible. they are articulating their forward strategy well. let's have a dig into the future. they are remaining confident about their outlook about the emerging markets continuing to organize. focusing on cost cutting. they say they are pulling every lever. they are working every lever to survive the current oil price. they are also reducing their capital expenditures. they are squeezing the lemon is what the ceo says of bhp billiton. they are trying to cut down on costs while they are seeing the commodity route continue. they want to protect their dividends. this is driving the share price higher today. they stuck to their $.62 dividend. they are committed to a progressive dividend. a similar story. profits are down and sales are down. the dividend this time is not protected like at bhp billiton. it was slashed to the tune of 73%. talking about some recovery in the media

china economists say that this, china has to move to regain global credibility. guest: i think he is right on the mark and expecting further cots in rates. the point which i thought which was significant in what he said earlier in the morning, the fact that the banks are his to lend in china because they don't understand the credit standing of the companies. that is what we found in the united states after 3008 -- 2008. hashort, monetary policy its shortcomings and it cannot achieve what you need in terms of structure and changes in the chinese economy. that is what you need rather than monetary easing itself. it is not going to do the trick. scarlet: it is almost seen as a crutch since the financial crisis. central banks have come in and flooded the markets with liquidity and try to create some level of stability. china is trying to do that right now but do you think it is more about structural reform than monetary policy that needs to happen? much so.ry if you look of the countries that have done it, the united states, japan, the european central bank, all of t

mongolia makes up 20% and china, 70%. babar's plan cuts out the middleman and gives them a bigger part of the pie. a former i.t. analyst says that living with the shepherds is opened a new channel in his life -- chapter in his life. d opened a deal to sell in mumbai has bigger plans for the future. paris, the capital of fashion. shery ahn, bloomberg. angie: coming up, focusing on china's factory floor. why some are predicting manufacturing might slumped to a three-year low. stay with us. ♪ angie: checking other stories making headlines, president xi is said to be ready to announce the biggest overhaul of the chinese military in 30 years. sources say he wants to unify army, navy, and strategic missile force to one command. the current structure predates the founding of modern communist china. the president may announce plans after the military parade marking 70 years since the end of world war ii. ministryese defense has asked for the biggest ever budget, most $42 billion, amid concerns about china's growing military pow

heavily linked to china. in some ways they are a proxy to china. we already have an ecb rate decision. i cannot wait for what mario draghi has to say. then we get to the big one. we think at the moment the number is around 200,000, that is something we will watch carefully for. we have a g-20 meeting friday as well. guys like jack lew will be there, wolfgang schaeuble will be there as well. a little bit more clarity from the fiscal front versus the monetary front. a lot of central-bank chat throughout this week. eurozoneof today, inflation. mario draghi will pay attention to that one. gdp numbers as well. look at the long data at india's bond market. people are buying out of anticipation but maybe we will see the governor of the central bank in india following china. plenty still coming up the rest of the week. theng up on "countdown," chinese fallout is continuing. the data out of japan today are weaker than anticipated. we will go to tokyo next. see you in a moment. ♪ >> the distance that we have traveled, as well as the current outlook for the

. -- pile of it in ports in the china. output is exceeding demand. -- west texas below $40 a barrel. producers are raising supply. even the gold place -- the gold price remains weak. behind all this is china, the biggest consumer of grains. investors still continuing to sell the commodities. the bleak days for commodities are not behind us just yet even though we are getting a balance in australia this morning. angie: what kind of balance is the question. thank you very much for that. the people's bank of china stepped up to the plate this morning, injecting the most funds into the system since january of last year. repo again. is this good enough? d: adding into the financial system after they have been defending the yuan after the repainting a couple of weeks ago -- after the re-pegging. basically adding the most funds on the open market since january of 2014. u.s.int -- 24 billion dollars. nevermind. billionon top of a 120 that was maturing today in reverse repos. a net injection about 40 billion yuan. some told us that

justin: i spent a decade in china. i think this is one of the most in therstood your fees world, now and in the future because of bad communicators. governments are not very good with you medication. but what is really happening -- very good with communication. but what is really happening with china, 20 years ago, it was a desperately poor emerging economy. ,ven at the turn-of-the-century it was a $1 trillion economy. a $20de later, it was trillion economy. i think what is happening is part of the misunderstanding about the economy is that china is going through enormous change. the last decade, 15 years have really been about twin-engine. the first has been integration to the world trading system. china, even when i lived there, was a very small part of the exports. and it becomes the biggest exporter in the world. that engine of growth in the last three or four years for many reasons has collapsed. charlie: collapsed? justin: in terms of incremental growth. years, we haver had no growth in world exports. this has ma

promoting democracy around china is an important way to promote democracy within china. taiwan, for instance, provides a powerful model for how traditional chinese culture can indeed coexist with democracy. my second goal is in relation to china is of particular relevance this week. that is protecting the american economy. until recently china has experienced impressive economic growth, by copying parts of the capitalist model. at the same time, it has damaged other economies, including our own, by bending and breaking the rules of economic trade to achieve its own ends. it has subsidized exports, devalued and manipulated its currency. it has restricted imports and stolen technology on a massive and unprecedented scale. as president i will respond to chinese economic misconduct. not through aggressive retaliation which could hurt us as much as them, but by reinforcing our insistence on free markets and free trade. this means immediately moving forward with the trans-pacific partnership and other trade agreements that strengthen strategic ties with our partners in asia. w

/china relations? it spins out -- what's interesting is this is really reverberated around the globe. the chinese economy is pretty closed. and it's the second biggest in the world. and when the stock market tanked, you know, it was dramatic but didn't affect the rest of the world. that's something to think about. >> there was -- a speculation that maybe they were doing this out of the chinese president's visit to the united states to try to placate our demands that they do something about letting their currency flow to the markets here. they would also like to become an elite reserve currency in the world. is this backfiring on them? or is this the kind of volatility you would imagine they're going to get and try and work with in the beginning stages here? >> yeah, you know, the chinese government doesn't like volatility. they want stability. this is something they're not going to like. you know, it's hard to say what was the trigger. i mean, if you do it now, you have a few weeks till the visit. and