/china relations. and the common interest both countries have in the middle east. >>> book tv is television for serious readers, join us this saturday starting a to at 11:00 a.m. for all-day live coverage of the harlem book fair. with author talks and panel discussions. on sunday, august 2nd author and ma dina benjamin. live saturday, september 5th, we're live at the national book fair. a few of the upcoming live programs on c-span 2's book tv. >>> australian prime minister tony abbot told members of parliament his country blames to rid his country of dual nationals. during his question time session, the prime minister touched on national security trade with china and government funding for public schools. courtesy of apac, australia's public affairs channel. ♪ >> good day and welcome to qt rap. this is a look at the highlights of the most recent sitting of the australian parliament. one of the big issues, government officials paid people smugglers wads of cash on the open seas to turn around boat lo

in china. and has done a very remarkable job of creating this course of power projecting capability that has china rubbing up against its neighbors in new ways. on the conventional front and i will talk about the nuclear modernization that is consequential also in the united states. so china is able to get offshore and challenge u.s. friends and allies in ways that it couldn't before. that doesn't mean that china can dominate east asia but that ability to hurt her vice political leverage and that is what most not all that most international security politics is about. those are asymmetric capabilities against the potential superior foe in the united states. they include ballistic missiles with solid fuel systems that are mobile. these include most recently according to public reports and antiship listed missile that could hit moving targets at sea because the missile can be after re-entry at this moving targets at sea and that could put at risk american capital ships which is one of the united

that's a china effect. that's a knock-on china effect. china doesn't operate in a vacuum. >> is it possible because commodities are moving lower partly because of lower demand from china, do you think that's something that might stave off a rate hike this year in the united states? david? >> well couple things. first, peter may not care about the health of the chinese consumer, but apple does and disney does and intel does and all those other companies do. so he may not care but those companies do. secondly i think that what we've seen in decline in commodities is all related to the strength of the dollar. we have not seen a decline in underlying demand. you've seen return of supply and you've seen strength of the dollar driving commodity prices down. >> oh, please. come on. >> we have to leave it there, guys. unfortunately, we've got a lot to get through in this hour but david and peter, thank you very much for your thoughts. >>> over to you, ty. >> thanks very much. >>> fiatchrysler facing record fines over the handling of recalls despi

and china to invest in here. we are having a discussion of a potential project that could be invested in by the chinese so we have dialogue with thatd. we also want to help your customers doing business with the port so please think of us, the state of california through the california china office of trade investment is open for business. we promote the state internationally and of course my focus is on china. i appreciate the attention you have gichben me and appreciate to answer any questions if there are any. thank you very much >> thank you. any public comment? seeing none, commissioners >> thank you ken and appreciate very much that you have made the time to come here today. it is always good to know and know commissioner adams has been in touch about the opportunities for the port and i guess i'm just curious to know since you have been-we haven't been here that long but in terms of the history of the office are there transactions that you can tell us about so far so we have a sense of the flavor either si

it's about china. i mean i can't get a way from china. you can't either. all day we saw the pressure exerted by china son the natural resources. if you sell oil, and china using oil, you're getting hit by it. even consumer packaged goods into china you're considered suspect or just plain outguilty. remember my proxy for china. i said it over and over again on this show. this company represents oil, copper and gold, it's the unholy trinity of everything bad. it's free-fall. which is crushing the stock. down another 9% today after a similar thrashing yesterday. do you know ironically freeport reported a decent quarter. it's all about china. down in the standing 40% in the year. it's only july. we just had the all-star break. what's going to happen? what do you think is going to happen in football season? the worst week since january, it's hard to make any headway. and the themes i have been outlines line f.a.n.g. that doesn't mean we should get too negative. here's why. if oil keeps going down and then the domestic stocks, restaurants, retail they can rally

cars and suvs. >>> strong sales in china made volkswagon the strongest ever. it now accounts for a third of vw's total sales. >> chinas market closed lower today, but not as shashlly today, the composite fell 1.7%. one respected wall street watcher who called the bottom of the shanghai composite in 2013 says the move in china mirrors the u.s. crash in 1929 and he expects the index to decline even further. >> although chinese basedas stocks are not widely owned, there are a lot, 144 to be precise. and it has hit these stocks hard e rating some $140 billion worth of paper wealth. here are the companies that lost the most market value. more than 7.5 billion down jd.com 4.5 million lower. vip shop. >>> so as the economy slows, chinese consumers are spending a lot less. as court any reagan reports, many luxury retailers around the globe are growing concerned and perhaps with good reason. >> chinese consumers are responsible for nearly a third of all luxury sales around the world. their market is slowing and it is causing shock. plus chinese consumers are starting t

jonathan: another headline out of china. china is said to add one trillion yuan debt. more measures out of china and not a big surprise. to hear in europe where we have the stimulus and lower commodity prices, another big question for your maybe more so for the u.s. is the story of lower commodity prices whether a commodity story or slow down in china. we have not had this big boost. this consumption, why is that? sharon bell: if you have a strong price much weaker consumer. i do thing in europe, a little bit of improvement in the consumer over the past couple of quarters. i think that is helpful. you are starting to see a lot of companies in a fit -- benefit and wage improvement and employment improvement. overall, things are getting a little better for the consumer. perhaps, it takes a little while. most of our economists love to look at how long it takes cuts in oil prices to floor month through an impact the consumer -- two come through that impact the consumer a usually it takes a month or so. q3, q4 of last year. it may be that taking an impact as well. jonathan:

let's start with you. >> tim talking about china, i think it has a lot to do with china. when the market's down 8% on top of the moves we've seen over the last couple of months it has to have something to do with that but i also think it's somewhat technical in nature. i think earnings have a lot to do with it. i think earnings have been okay but i think the chasm between eps and revenue continues to grow. i think technically the market's done everything right until last week when we traded back up, tested you will-time highs, seemingly failed, had an outside week in the s&p without getting too wonky, now we're going to test again those lows we saw last week or so, 2042. if it holds there, off to the races. if it fails we have to have another conversation quickly. the russell, the iwm, 121 has been the level, closed lower today for the first time in a long time. >> was china the excuse to -- >> well, welcome, sara eisen. i don't know that it's necessarily the excuse today. it clearly is a big part of what people walked into. if you look at the volatility index, pete can t

we hav55 businessmen from china. they've been investigating the bazaar for a week. >> she runs the joon hi chapter of bazaar's trade union. she is using her long standing neork of connections to discuss opportunities with chinese business people. >> translator: these people want to work with us directly. we said our store area would be expanding this year. and we also said, of course, that we're welcoming new investment. that was the conversation. >> chinese business people with factories in the coastal province of jay jong, 4,000 kilometers away from kyrgyzstan, are eager to sell high-quality products here. the reason lies in the regulations of the eeu. products sold within the borders of member states must meet the same quality controls. a lot of the cheap, low quality chinese products sold in dordoi will be shut out. instead, more expensive, higher quality products will probably need to be imported. higher customs duties means higher prices, butting chinese firms at a disadvantage. but by quickly meeting the new d

we like the china story. we are not rate of china. -- not afraid of china. angie: the foreign investor, when you look at the intervention done by the chinese government to stop the bleeding when it came to the big plunge we saw on mainland shares -- those that give you any pause or any concern? thomas: if does. we like what the people's bank of china has done when it comes to them you leading the economy. keeping interest rates low, we like that. we have a fundamental problem with what they are doing with disrupting what happens in the stock market, forcing companies to have a share buyback program, and forcing companies to know ipo's. these are things that concern us in the united states. we think the markets have to take their normal course of action. we do not like to see the meddling in that. angie: let's bring it back to data coming out including interest rates and jobless claims. do you think that is going to reinforce what janet yellen's rain, which is we are likely going to see a rate rise this year is mark thomas: -- a rate rise this year? thomas: w

not just to china and to india. so for now it suits the purpose because of sanctions and geopolitical. it suits russia to be able to say, look, we have friends in china and india. we're getting money and support there but i think that is really only one step. for russia it would be extremely dangerous to become nothing more than a raw material supplier to these countries and everybody knows that. >> but do you actually think they would deepen their ties and work on the bank that a lot of people were talking about. now china has the aiib and that's really their project. >> yes. it is certainly -- when you look at russia within the economic union, a big motivation for that is to benefit from the economic belt that china is creating. yeah we'll see closer ties but it's very clear to everybody that the process of integration is very much on china's terms. in other words china has been offering investment and economic cooperation to suit it's agenda. we had that quote from the ceo when he went to china looking for money

-china relations. i think professor you were there at the first to teach it dialogue between the two countries so now the new round of strategic and economic dialogue taking place tomorrow and paying a visit to the u.s. so how do you expect them to promote -- i've noticed there are some pessimistic views. i think you call yourself an optimist but there are also pessimistic views saying that china is challenging u.s. dominance and the u.s. will fight back and there will be more fighting in operation for the two countries so how do you see ties? >> that's a big question. >> i haven't finished yet, sorry. given the presidential race and the next administration how do you see, will there be some change in the u.s. china policy? thank you. snack and then this gentleman here. >> i am from the department of peace keeping operations focusing on africa. >> hold it closer to your mouth. >> i am from the department of peacekeeping operations for the united nations focusing on african affairs. thank you for your p

that plus china. the imf has just take -- taken down the forecast marginally from real growth to the world economy. that is what we're seeing. over the last six months of last year the first six months of this year, slowing down despite commodity prices going down and despite western europe starting to pick up. the fast-growing markets, slower growth, still faster where we have been looking for growth ironically in western europe. we have seen a turnaround in spain and italy getting a little better. germany very strong. the ukrainian situation and the crisis in russia really massed the strength and the u.k. has been strong. the u.k. budget is probably deflationary. planning the strategy for the next five years as he brilliantly did for the first five years of the coalition government. you have got the potential grexit with a hangover, and then you have got the british possibility as well. there are elements of uncertainty which make clients more cautious and we have seen that and we are seeing that. i

call the south china sea. where, in full view, reefs, atolls, and islets are being leveled to be incorporated into chinese territory, more than 1000 kilometers from china's mainland. it's all about natural resources, fishing areas and geostrategies. and that's making the philippine army at its outposts uneasy. admiral alexander lopez of the philippine army insisits that what's happening in subi is the same that's happening to the other areas. they're trying to build these things not for legal reasons but for military purposes and that's very alarming. where once there was nothing -- entire ports, buildings the size of stadiums, and airstrips in the service of airspace sovereignty are all being built. it's a modern land grab, under the motto, "don't ask, take." the philippines would like the un's permanent court on arbitration to settle the dispute with china. and the us, a close ally of the philippines, says it's considering boosting its military presence in the region. beijing has shown the cold shoulder to u

than what's happening in china. i think the chinese central bank and the chinese government has a lot of money and has shown willingness to deal with systemic risk. it's only one government that has to make a decision. over here you can see the incredible bureaucratic maze they have to go through to make a decision on greece. >> steve liesman thanks so much. >>> janet yellen is in cleveland ohio and is about to speak. >>> let's trade this especially as we head into an earnings season where there's so many banks. she talks about mortgages not being out there. >> the banks have held up pretty well. i think everyone kind of anticipated what she's been saying. stanley fisher told you they're raising, that's all you need to hear, fine. she's kind of echoing that. i think the one thing people continue to get wrong on what might hold the fed back or give the fed pause. greece is the reason they want to raise rates. greece is not the thing that stops them. they do not want to be caught at a 0% interest rate if heaven forb f

on the other china is learning. and china is working hard. for instance at the one time the differences between the united states and iran was so big. and they could not any longer to continue the discussion. and china used its diplomatic wisdom, okay if we could not continue talk at this level we propose we have the working group, lower level just to make it to survive. and now our foreign minister, mr. wong yi, is shadowing that kind of force. and they kept good and regular contact between chinese foreign minister and other foreign ministers, including secretary of state john kerry. and also, china wants to have the outcome ss. we are a stakeholder. for instance, because of the iranian issues china was being sandwiched between the two sides. and we could not make long-term project in our political diplomatic, and economic relations related to iran. and it also hurts our relations with saudi arabia and other gcc countries. so the outcome and the a stain ability of the outcomes are in the benefits of china as well. thank you. >> madam wu coul

send all uyghurs back to china. the country agreed to accept them. the chinese foreign ministry dismissed the criticisms from the international community. >> translator: foreign powers are interfering in china's internal affairs regarding ethnic and religious issues. this is damaging china's internal security. we strongly reject these thoughts which will never succeed. >> uyghurs in china autonomous region have become frustrated by the widening economic and political disparities between themselves and the chinese. they're also unhappy with china's policies on religion. many uyghurs have left china illegally for years and most head through southeast asia to countries such as turkey. thailand's decision sparked demonstrations in turkey. riot police dispersed about 100 protesters who gathered in front of the chinese embassy in the capital ankara on thursday. in istanbul, protesters attacked the thai honorary consulate. many people in turkey see themselves as sharing a common cultural background with the uyghurs and reg

down on eastern china. investors are asking themselves, what do we do next? stephen engle joining us with more. what are you hearing? stephen: a lot of people got soaked in the market. it may be symbolic, but a storm is raging down. the front page of the "shanghai daily" is interesting. they always put xi jinping on the front. a meeting of minds with vladimir putin. just above, by the way, a super typhoon. maybe this is not the best juxtaposition of headlines. it has been a wild ride this week in shanghai. yesterday, stocks jumping the most since 2009, 5.8%. a number of new measures from chinese authorities from the banking regulator, securities regulator, even the public security bureau saying they will go after malicious short-sellers. the news they are banning major shareholders and executives from selling shares and asking state companies to continue to buy, , thelso the margin lender state facilitator of margin lending, getting increased liquidity to ease things. that was the biggest thing, a jolt of l

it is china. basically a turn of the working population take away the 700 million people which is a big number, look at the core which is getting older and its fastest rate ever with their one child policy, this is a train wreck and expediting market policy. >> the trees have tops eventually end you were making a point earlier, the rate and speed at which they were doing this, 60% vs. 6% or 7%. that is a great neck pace and hard to maintain without infrastructure you talked about and so i think we will see this cycle and i am not sure it will bounce back as quickly. maria: china was the jewel of the world, whether american companies, european companies, it wanted to be in china because of the population growth. is it no longer representing the growth story for the world? >> no, it is representing a growth story, 700 million people with tremendous potential, hundreds of millions moved into poverty is a tremendous success story but not quite the way it was made. here is what we fall prey to as ameri

we have china. and i do believe that what's going on in greece has made investors very significantly nervous. what's going on in china, i think is something we need to pay even more attention to because there the retail stock market has just gotten crushed. we've seen a 39% decline in the shenzhen. primarily in stocks owned domestically in the country because people borrowed too much money to buy in the stock market with this short time horizon. i don't think they're done in china. that market which was up 122% at its peak is still up 30% for the year even though it's down 39% from the high. those are scary numbers. i look at this and i go, look, the fundamentals in the tech sector are actually pretty reasonable. they're not great but they're pretty reasonable across the board. in some places they're fantastic. i think this is purely an issue of market valuation and, you know, this is a topic you and i have talked about on this show for several months, that this is something that was coming. and how

in china the relationships, so much of china's economy is built on relationships. they're trying to break that and the power of state-owned enterprises. there is a big transition. >> we will be able to handle this. no one likes the deflationary spiral. >> central banks. >> it's big enough to drag the world out of this. right. we are doing better? >> car sales hit a ten-year high and also housing is faring well which shows consumers have the wherewithal all to spend. clearly in the mid-2s which is strong for the u.s. the most it can convert is 2 given less slower productivity. >> you think the best we can do is that? >> probably around 2. ben berna nke said it's around 2 as well. this is what the feds. >> we can make it to 4. >> joe thinks we make it to 4. >> here and there, oh sure with better policy all we have is one of the two. >> policies are responsible for. >> fiscal policy isn't helping. >> don't cause it and say better side of the aisle. >> all right. thank you. >> it's going to be fine. china is getting hammered. >> it's like throwing back from 1904. he ca

we have got to start with china. the benchmark stock index fell by the most in more than eight years. the shanghai composite index more than 8%. in the last few weeks alone china passes government has been propping up stocks with unprecedented measures. concern that a rally sparked by those moves could not be sustained fear the senate voted to resurrect the exit or import tank. the senate added an extension of the thanks's charter to a bill shall have as an mass transit for three years. many republicans opposed the bank, which provides loans and guarantees overseeing sales matt:. matt: greece is set to have talks on a new bailout this week. the imf, the ecb, and the european commission have agreed to let up to $94 billion. austerity measures they agreed to last week. we could read the same script literally every week. best i will become the first national retail chain to sell the apple lot. besides apple itself, more than 100 best buy stores will sell the watch friday. the website will also sell it. those are your to

that is how i feel about china. scarlet: there is this sense of panic, a sense of rushing through whatever reform every single night to stem the stock market collapse. preventingough how market collapse prevents social unrest. the shanghai market is dominated by individuals. it is only 10% institutional. they bought a lot of margin debt. what the chinese government doesn't want for social reasons and for economic reasons is they don't want that market to collapse because it would cause social unrest but also have a wallet impact on the chinese when the government's turn to get them to spend more. china is still growing -- if it is not 7%, it is 6%. it is a number a lobby or than greece's. i think it is a question of china try to sustain a reasonably high growth rate, both politically for china, but also for the rest of us in the world economy. stephanie: in europe, there is no growth. mr. draghi is trying to say that an economy that was in danger of sinking into the mud. china, i think, as an incredibly vibrant plac

china may not be as bad as you think. investors may have gotten to o negative on the underlying backdrop. what's critical here is that this line, above zero indicates data is stronger than anticipated, below zero indicates the data was worse. there was a big drop here in the first part of the second quarter, but since early june, a little bit of a recovery. it looks like we have bottomed out. alix: the disconnect between fundamentals in the markets. i want to bring in wells fargo securities senior equities strategist. thank you for joining us. today was a crazy day. what was your reaction? >> i was pretty engrossed in what was happening between greece and china. i didn't notice at first. my big take away is that this is one other concern to add to a lot of uncertainty that investors are facing. alix: joe is not here, but i did bring in a tweet. greece, china, u.s., trading halt, maybe markets have found equilibrium. what you think about that? >> we were satisfied in the first half of the year. we basically fell asleep. th

>> we see huge innovation in china. 90% of the smartphones are produced in china. we see new players, sony is one. many more are developing a lot of smartphones. this is clearly a very big trend we will see some changes as a result of that. china is the first to in market in the world. we area of the internet, will see a lot of developments coming out of china. next, moreng up details and airbags. ♪ this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast business offers convenient installation appointments that work around your schedule. and it takes- done. - about an hour. get reliable internet that's up to five times faster than dsl from the phone company. call 800-501-6000 to switch today. perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. it is 7:30 here in hong kong. it is a beautiful day. minutes until the end of trading. it looks like all signs are pointing up. the top story this hour, micron close mor

arnold: there is a lot of work to be done in china. we have to have ports developed so the chinese guests have destinations to go to. but the reality is that it a good market already today. we have four ships there. three on our castle line, one on our princess line. both brands are profitable. the chinese government has declared through their five-year economic plan their intention to develop the cruise industry. so that means a lot of things will happen relatively quickly. we want to be there to help make it happen in a way that we think will help the chinese government establish the cruise industry they want, that will be sustainable for years to come. betty: so how often are you there now? arnold: i have been on the job a year and a half or so, and have already made five trips to china. it's a very active market under development. it's going to take some time. we are very happy with what we have today. but we see it someday being as large as any cruise market in the world. betty: donald says carnival is focusing on one thing the ch

china is selling off their cotton reserves. they said the government will sell tomorrow, one million tons over time cotton was down again today. the government is charging more. -- one million tons over time. cotton was down again today. the government is charging more. the government is struggling. india might not plant as much cotton because of china. joe: is this like our strategic oil reserves? alix: i don't know. joe: that would be cool. janet yellen is speaking tomorrow about the economy, china, greece, when the fed will high grace. everybody will be watching the janet yellen speech tomorrow. a great economist had a line, the u.s. economy is an island of mediocre tranquility. that is so beautiful. we will see if that is how janet yellen season two. -- sees it too. alix: a bloomberg reporter saw a transaction on his these a card n greek out in droppe currency. biggest slip. good to have you back. joe: i'm exhausted. alix: thank you for emily: google fights back. we debate the future of the economy. ♪ emily: i am emily ch

china has rippled across regional. nikkei composite dropping after -- 43% of all companies listed on the shanghai stock exchange about 1300 companies halted from trading. they are hoping to sit this out until things calm down a little bit. also a selling frenzy over in hong kong. the hang seng dropped 21 points although 6% in history as it is caught between the tab problems and admit the americas. japanese shares took a turn to the south about 3% of his stronger exporters. it marked a four-day losing streak and in midday 1.2%. sandra: tracey chan, thank you. joining us on the phone from singapore on what is next for china is jim rogers chairman of rogers holding. thank you for joining us up early this morning in new york. >> i am delighted to be here. it's the end of the day. sandra: perfect. shed some light on what is taught today. some call it panic selling. how would you describe it? >> six the panic selling when you're down 6% in the day with several days in the last three or four weeks. for what it's worth i thoug

china is not included. one they do agree on the language, it gets taken back in its entirety to each of the countries for approval. back here in asia, we are -- we are still very near a 15 year high. the bank released second-quarter results this morning. up 16%. a little bit higher than estimates. million,e is at $860 roughly ¥1.1 billion. its fee-based businesses -- just a break that down, you're looking at that interest margins improving to 1.75%. that is the spread. 12% improvement in the actual income. when you take a look at fees, that business was at 16%, under $600 million since the first big three banks reported. galaxy entertainment is taking a step to diversify its business. it has set its sights on europe, monte carlo. n sbm.uilt out a stake i it owns and operates several properties in monaco. than half are billion dollars. monaco owns 34% of the company, and in a separate says ition, the lvmh wants a 5% stake. have a look at as shares. .own 50% casino revenue fell to a four-year low in june, an

most believe china's bear market will be contained to china. each bubble and each bust is different. each difficult to manage. a hard lesson learned on wall street. clare sebastian, cnn, new york. >>> now back to the financial crisis in greece. it touches every aspect of life in that country. the banks are closed. businesses are suffering and people are losing their jobs but one man is doing his best to weather this storm. here's cnn's richard quest. >> reporter: this is the world with of sandals and feet. all styles all types. and in this world -- rules as emperor. they have been turning the best greekleter in to quality foot ware for three generations. they have created sandals to the stars. >> i made for vara jessic parker for the wife of the vice president of the united states. and recently for a famous model. >> reporter: i have come with my own bit of greek tradition and my choice is plentiful as the legends themselves. >> who knew sandals could be so difficult? plato, hermes and more. perhaps manage more modern. >> the john lennon. >> i

, occupied china, dismembered china, and i narrative is still alive. charlie: if you want to be paranoid all you have to do is look to the u.s. and vietnam. ken:ken:guest: vietnamese are not so paranoid about the united states and they do not have a narrative of victimization. guest: we should still be paranoid about china from an economic point of view. that economy is still going to grow. their economic hour is still going to be greater, and economic power is an important part of projecting other power around the globe. charlie: if they are still growing 3%, 4%, that is still better than we are. guest: anybody who has been in china has been in china has to be impressed by an taken by its dynamism and the million activities you see going on there. if we were having the counterpart of this program in china, one of the concerns would be, is china going to develop a high end economy? i think there's an open question about whether its path to development as opposed to steady growth is clear. for police the medium term i would be more bullish about the u.s

let's talk about how they exposure to china is -- big exposure to china is. slumping 10% in china. the pizza hut taco bell owner. 62% of the revenue comes from china. ore, first-half profits bumping 61%. they take more than half of their sales from china. a french supermarket mayor as well. retail consumer goods feeling a lot of pain right now. andalked about hermes burberry. they are seeing a big slump in sales. audi talking about financial aid to some dealerships in china as well. angie: things are looking dim. multinationals have basically said, if you are not in china, you are not make money. but they are seeing a pullback. any chance of a rebound? yvonne: many companies remain optimistic. you have consumers willing to spend. the long term, people are seeing a bit of upside. netflix is still trying to introduce a service to china next year. unilever talking about partnership with alibaba. kohn, the elevator maker, talking about one third of sales coming from china. they will highlight the business in a briefing. for many companies, things are looking good long-term. but it coul

tim, china, china, china? >> yeah. people had started to feel china was stabilizing. we got a bad pmi number friday. the policy officials are sending very mixed messages. the whisper overnight was they would step away from defending the market. they came back in and said that's not true. almost explicitly saying we are going to defend this market. i think if you look at the broader market reaction volatility is being priced into a lot of different asset classes. china by the nature of its overall weighting is dragging em to five-year lose. essentially the march '09 lows. it's setting up for a total washout or we keep going. >> stephanie, which of those two options? >> where do i begin? >> when people say as we are, seeing the lowest level since the financial crisis for a lot of commodities, for some of these markets, there is reason to be concerned, right? >> commodity sell-off is something to keep our eye on. i think what is going on is it's not only china that is happening right now. we actually have not gotten such good data here in the united states. we were hopin

china power corp. is a state-owned venture that was formed to own the wireless infrastructure of these three. we understand that venture china tower, rates at about 10 billion u.s. dollars. ahead of what would shape up to be a massive ipo in 2017. obviously, these are rivals. last year, they already announced that they would be injecting some cash into that venture. the timetable right now, before the end of august, we could be looking at an injection, asset injection of a combined 300 billion -- close to 50 in u.s. dollars. it is a very interesting move. it puts it under one big umbrella and would reduce duplication when it comes to capex. it also shows you that they're consolidating a lot of these assets under state supervision. no advisers have been hired just yet. it is a very interesting business model. back to you. rishaad: china is tightening its grip on online lenders. the pboc introduced a number of new rules on sunday that it says are aimed at promoting healthy industry growth. tim is now her

. >>> investors around the world are reeling as stock prices plunge in china. the mainland's key index experienced the biggest fall since 2007. ramine joins us with the numbers. >> it's been an up and down session for the main index as shanghai stock prices continue to be volatile. the induction plunged more than 8% on monday. now later the same day china security regulation authority stressed they will continue measures to property up share prices. the shanghai composite index fell ending july 8th and following support measures from the choice niece government but investors sold heavily on monday sending the index plunging by 8.48%. analysts say one factor behind the decline is wariness among investors of a slowdown in the economy and site investor anxiety in the wake of last week's report that support measures may soon end. chinese authorities dismiss the news reports late on monday and said they will do all they can to stabilize the market. overseas investors have criticized choo thatchina support measures. let's get a look on how everything will be effected

all eyes are on china. let's get more with michael, chairman and seo of market field asset management joining us from new york. what you think is going to happen today? idea what isve no going to happen. we are clearly in the middle of a market panic of some magnitude in china. and unfortunately, the regulator response has really been quite harmful so far. there has been much too much market intervention by the secured his authorities. they have really removed the ability of the chinese mainland market to operate in a free manner. i would say the same time there has been much less intervention then you would want to see by the central bank. the pboc has largely set on its hands. we had a 25 basis point rate cut. liquidity toof -- money markets and interbank market. i give them credit for that. so that has not turned into a true financial crisis. i think you need to see an emergency response by the pboc. i think you need to see rate cuts not at 25 basis point but more like 50 to 75. angie: michael? michael,

next, from the land of the rising sun to the rise of china and tensions in the south china sea. china it tough words for united states this week over its actions in that sea, saying those actions are likely to cause incidents, quote, unquote. what did the united states do? find out when we come back. its active naturals® oat formula... ...goes on feather light. absorbs in seconds... ...keeps skin healthy looking... ...and soft. aveeno®. naturally beautiful results. vo: today's the day. more and more people with type 2 diabetes are learning about long-acting levemir®. as my diabetes changed it got harder to control my blood sugar. today, i'm asking about levemir®. vo: levemir® is an injectable insulin that can give you blood sugar control for up to 24 hours. and levemir® helps lower your a1c. levemir® lasts 42 days without refrigeration. that's 50% longer than lantus® which lasts 28 days. levemir® comes in flextouch® the latest in insulin pen technology from novo nordisk. levemir® is a long-acting insulin used to control high blood sugar in adults and children with dia

if we talk about china, for me there are three china's. you have the shenzhen index something like 80 times earnings. that clearly needs to come down. you have the shanghai index which is still expensive. we thought some value started to emerge. then you have the hang seng market in hong kong where valuations are much more reasonable, but it is being dragged down as well as the shanghai market needs to correct. there are three china's. there are pockets of china where valuations look reasonable. it is more outside china and in hong kong than in china. manus: you mentioned the three distinct parts of china. the shares in hong kong are the ones that sound as if they are interesting to you. a lot of people are saying this drop has given them an excuse to not be long china. do you see this as an opportunity to buy into those hong kong shares? which areas would you think offer value if that is the word one can use? herald: it could well be in the near term. sometimes in these situations you have to keep calm and take a step back. there are cert

ian mentioned everything in china this focus on the economy. everything in china is on debt. that relates to the conversation we had earlier in europe here we live in a world where central bankers are the only ones intervening anywhere. the bank has been very active in the past couple of months and everyone thinks it is so gross in china. i think that is wrong. i think they're trying to figure out how to get money for local governments without bailing them out. the worst-case scenario for china is that they have cascading defaults and the statehouse steps in and dealt them out. it is not the end of the world but we know in the u.s. how painful that could be. that is what china's immediate focus is. charlie: looking at the greek debt crisis and how it unfolded. whose reputation was enhanced and whose suffered? let's talk about christine lagarde, mario draghi, alexis tsipras, and angela merkel? whose reputation among all of those was enhanced? sebastian: angela merkel here i think has been viewed, reelected, popular in her own country. i think if greece does crash out of the eu

keep in mind that china's gdp is roughly 15% of global gdp. so therefore, we do have to keep a careful consideration to global as well as economic friends within the chinese economy. >> how worried are you about what's happening with the chinese stock market ask the chinese economy, especially in light of the fact the central bank seems to be throwing in everything but kitchen sink. >>> the chinese economy is decelerating. several years ago it was growing about 10%. our expectations are for about a 6% growth in 2015. and then, of course, a shift lower in growth to 4% over the course of the next three years. now that said, that is something that will affect the u.s. financial markets. when we look at the equity markets within china, the equity markets, we're not very concerned about. the markets there are up 15% year to date, still with this massive sell-off on a 12-month basis. over 50%. and the majority of the investors in the chinese market are chinese citizens and they're the retail investor. it is very difficult for portfolio investors to

take the case of china. china has been the single largest contributor to global in 2008.nce the crisis the stock market's freefall last week had to be directed by some of the most draconian measures that any government has ever taken. it did sort of question how much control do they really have, over their economy and the stock market. betty: you describe, there is a chinese put out there. describe what you mean. >> if you talk to many people their view is in china, to fight the massive build up in debt, everything is different because the government controls everything. the government will backstop all theyosses but the losses, will be able to backstop everything because they have so much money to do this. if something spins out of control where it seems the government is not entirely in control of the situation, that questions the beijing put. we had a similar situation in the u.s. with the greenspan put in the 1990's. it appeared every time the united states would be in trouble the fed would do something

researchers have been monitoring china's reclamation project in the south china sea. they've released new satellite photos which appears to show construction work on a runway is nearly complete. researchers with the center for strategic and international studies published images of fiery cross reef. they say the pictures were taken sunday. the reef is part of the spratly islands. they're the focus of territorial disputes between china and several southeast asian governments. the researchers estimate the airstrip is about 3,000 meters long and shows a taxiway and apron is making headway. they also have satellite antennas, a radar tower, and a vessel at port. the latest photos appear to back up claims made by a spokesperson for china's foreign ministry. she said reclamation work on the reefs was completed and she said china will now build military and other facilities. >>> s. defense secretary ash carter is warning americans the islamic state group could target them on their independence day holiday. he says government organizations will work together this saturday to k

china was the big turn. >> selling an awful lot of stuff in china. >> they delivered alpha. >> it's now their second biggest market. >> i'm not denying it. people say i love apple. i'm saying it matters. >> at the same time we got headlines that they're adding suppliers for the new iphone run. the new ad for the iphone is out. here's a look at that. >> this is an iphone. and it comes with something different. 99% of people who have an iphone love their iphone. if if it's not an iphone it's not an iphone. >> could you make my mine do that? i got the target i got the walmart thing, and look at this. i can get walmart's ads. >> look what you can do with that watch. >> i have no idea how to use the watch. that's just another fallacy. >> black hole on your wrist. >> there's an undercover minion deluxe action figure at walmart.com but i can't. >> can't make the dancing dance. >> let me see what's going on. >> hard to sell a stock at 12 times, i think. >> a great value for peanut butter kelloggs pop-tarts. nam ral and organic. >> when we come back facebook reportedly plans to play d.j. also ah

is eight china story? >> there is a big story, anti-gift giving as well as softening on materialism is affecting it in addition to the macros. at kellen we are concerned about the handbag market in general. we think accessories could be a little weaker with the rise of leisure and wearables and no new "it" bag, that's an issue as well. >> with the retailers, they get a portion of sales in china, they rely on chinese tourist spending in asia and europe and the u.s. are they starting to see a weakness there? >> well the good news tiffany, you do capture a lot of chinese tourists in europe. also we have more chinese tourists domestically in the u.s., over that is offset by a weaker european tourism, so hopefully, you want to be exposed to global companies. we're recommending quality like a costco, a tj. >> people understand retail's weekness vis-a-vis china, what explains the tour of china? is it about shoes? is it something es? about price points? i think it comes back to brands. also thinking about a return

>> richardson: oh, we are very dependent on china. >> stahl: we are dependent on china for our weaponry. >> richardson: right. >> stahl: a prime example of that is the new f-35 fighter jet, the most technologically advanced weapons system in history. each one contains nearly half a ton of rare earths. former white house official dan mcgroarty says that's just for starters. >> mcgroarty: the guidance systems on weapons systems and tomahawk cruise missile, any of the smart bombs have rare earths in them. lasers. i'd be hard-pressed to name anything that we would consider worth building today and going forward that would not have a rare earth compound in it. >> stahl: because of this, because of the monopoly on rare earths, does china threaten our national security? >> mcgroarty: unchecked, yes. >> stahl: what finally woke up the u.s. government was an incident at sea in 2010. a chinese fishing trawler rammed a japanese coast guard ship in a territorial dispute. the japanese seized the boat's captain, and two weeks later china stopped shipping rare earths to japan. >> mcgroarty: the chines

will we see more declines in china? let's have a look there seems to be a movement out of the havens. the japanese yen had been strengthening and now it is coming off of that seven-week high. the yen is lower, currently trading at 121.33. the dollar is slightly less en vogue. the euro is trading higher. oil, a sudden slight rebound in oil. biggest us long in oil significantly this year, we are down more than 8% in terms of oil. china is the worry, it is the second biggest demand or. iran is a worry, yet another deadline missed in terms of lifting sanctions. we still see morgan stanley stock to saying they are set for a modest recovery and they are getting it. i will leave you with oil at 1.6. jonathan: the 5100 up. let's go to asia. juliet, the shanghai composite index posted the biggest one-day gain since 2009 they had to do a lot to get that, didn't they? juliet: they certainly did. we have seen some big swings coming in on the composition. -- composite. a lot of volatility if you look at where we are -- opened. we ha

>> china plunges. state companies are told not to sell shares in stocks worth more than 2.5 trillion dollars are frozen as the shanghai composite sees its biggest slide since 2007. >> stock market support. china's security finance is set to seek $80 billion to help stem the route that is worth around 30% of the country's benchmark index since its peak. >> another greek deadline. european leaders give the nation until sunday to accept the rescue deal or face being forced out of the euro. angela merkel she's not especially optimistic. >> balancing the books. the u.k. chancellors at the detailed plans to cut 12 billion pounds off of welfare spending as he delivers the first fully conservative budget in nearly 20 years. caroline: i am caroline hyde. ryan: i am ryan chilcote. it is 1:00 p.m. in hong kong. caroline: china's benchmark index has seen its biggest intraday fall in years, plunging 1.8%. that's amid a continuing route, leaving only 43% of the entire stock market frozen. this is a day after hong ko

and the economy in china. is the oil market overdoing it thinking there's going to be a ripple effect? >> they need the economy to be hit on all cylinders. their gdp growth is coming down coming down. i don't know. i hope paul is right but this has to look from a casual reserver as a replay of our 1929 observation because so many folks are here to mention the story about how rural population of folks got cut heavy in that market. there's talks about potential civil unrest if they lose all of their money. you'll see another migration of rural to urban that the system can't handle. so that would be bad for the economy. >> those that thought that oil was going to go up got to 60 people get a little optimistic wonder wond wondering whether energy equities were going to have a nice little run. everybody had a second and third chance to get back in. >> right. i think they'll have a fourth. we're going to go down again. despite the rig count being slashed in half production isn't going down. as a matter of fact the e

. >> i would just say that china is the land of the day, not going to end. they point they do too little stimulus and looks silly or do too much in which case they left their economy. i think they can flat the needle, something in between. this guy will buy etfs and stocks wholesale. they will put a floor under the market and i think to talk about the wealth in the country where less than 9% of people have any stock exposure whatsoever, i think it's a little early for that kind of thing. it really isn't a broad wealth effect there just yet. takes me under. >> this is the wild card in the global economy right now because the big concern over this stock market falling apart is the shadow banking system in china. that is actually big, not as big as here in the u.s. but fairly big. if you start to see that fall apart, more problems for china more problems talked about two days ago. that's what i would watch for. they have over. i'm in josh's camp. they are going to put a floor under. >> i want to bring the conversation back, quick ly whirlpool was down 5% and ip