help be the officials. >> just a reminder, you can keep up with all the news on aljazeera.com. >> i'm david schuster. "on target" a a tonight, choins is china is far from new york but its stock market crash. , a message to the political establishment. as the greeks sing the blue of a possible exit from the euro zone, the financial pain will

spread abrought, what happens in shanghai doesn't always stay in shanghai. for the last two weeks china's tchina'sstock market has plummeted. the great chinese stock bubble has largely popped. to put it in perspective, china's loses are more than 12 times the gross domestic product of greece. china's investors are desperately trying to stop the slide. but to understand how all that could affect you consider this. while few american investors have direct exposure to chinese markets the real concern is what an abrupt slow down in the world's second largest economy could mean for everybody. for years chinatown has been an important stimulus of global growth but thing

wals the the west world bank says, this could shave off half a percentage in world growth. there's a mood of panic in the short time. that could translate onto lower price across the board. on quawments stock wall street, stocks are tumbling. u.s. stocks have gone up 3% compared to global currencies. that might sound like a good thing but it also makes american made products more expensive to buyers overseas. and that could spell trouble for some u.s. companies and their ability to turn a profit. mary snow takes a deeper look at the potentially wider reaching effects of china' china's crash. >> the loss he have been staggering, china's stock market

has lost nearly 30% since the beginning of june. the questions asked from the streets of beijing to the white house, what's next? >> we do live in an age where our global financial markets are interconnectand interrelated and activity that we do see in one market could have an impact on other markets so that's something that we carefully monitor. >> put simply, if consumers in china slow their spending, the ping will be felt far outside its borders, but how bad can it get for u.s? >> can china if they have a really sharp slow down, can that exert forces on the u.s., yes, but will it cause another slow down in the united states, probably not. >> then there's dollar, it's been rising, worry from china but also the seemingly imminent default of greece. if in response to the fear investors continue to seek

safety and park money in treasuries and even cash the dollar could continue to strengthen and that has the potential to hurt exporters hoping to sell their goods broad. mary snow, be be al jazeera. >> for more how china's crash could affect the united states, we talk to damien ma. damien joins us from chicago. first of all how nervous are you about the china crash? >> well, i think i'm less nervous than the hyperbole and comment out there. we got to give this a few more days until the volatility passes and what i'm really questioning is what the actual impact on the real economy will be. we have gdp and other growth numbers coming out in a week or so and i think that's when we'll have a better sense of what the

actual effect on the real economy is. and that's really what make -- what give me concern if there's a huge impact on growth prospects. >> to the extent there's a lack of concern though is that simply because the japanese is -- the chinese market is still higher than it was say back on january the 1st? >> i think that's part of it. if you are an investor that put your money in a year ago, sure you lost some money in the near term but i think overall you are still up. so i think it depends on when you put your money in and when you actually were investing. but again, there are some other uncertain factors in terms of how much margin lending and borrowing was used for investing in the stock market and if that proportion gets to be bigger than people anticipate that could potentially be a problem but it's very hard to tell at this point. >> if it does become a larger problem than say you're anticipating right now who are

the first american fefers, investors, american consumers who are hit? is it about the u.s. currency going up and making goods more expensive overseas? who has the greatest concerns initially in the united states? >> i don't think there's going to be impact immediately in the united states. most of the investors in shanghai stock market are domestic investors, domestic consumers, there's not that much exposure to the u.s. but what would be concerning going forward is how deep and how severe this economic weakness are remains and clearly we've seen a lot of heavy industry being hit, commodity players getting hit so i think whether it comes the that the knock on effects will be more severe on exporting countries like australia, canada, indonesia, where they are basically dependent on chinese

growth and industrial tbloom and that bloom has clearly weakened significantly. >> is there any knock-on effect on u.s. debt given had a so much of it is owned by the chinese? >> you know i'm not too worried about that. i think china has already gradually tried diversify out of u.s. debt and u.s. trirs, you treasuries. i think interesting upside of that, this will have a more direct impact on the united states is the chinese are actually trying to you know further use their foreign exchange reserves to invest overseas abroad and in particular in oecd markets like the united states. we are looking at a fairly large wave of chinese investment into the country and that is potentially a very good upside to the united states. >> could the down side that foreign investment in chinese investment in places like real

estate in new york and other place starts to get tampled down because chinese investors are seeing a flux of losses in their own market? >> i think that is certainly a possibility. i think other problem was focused specifically on property investment is i think the chinese may increasingly become concerned about localized political backlash for example in places like sydney, the local government has imposed regulations because of the impact on property prices on the local markets in which the chinese investors are playing in. so that's a potential social political backlash. chinese investors more the savvy ones are increasingly looking at how to invest in the u.s. innovation engine, how to invest in technology and startups and trying to move away from just property as an asset class. >> damien ma, thanks for coming in. we appreciate it. >> thank you very much.

>> up next a heat wave in vienna are raising tensions on iran nuclear talks and negotiators are throwing diplomacy out the window. an inside look when we come

>> temperatures in vienna today approached 100° fahrenheit and gloishtors are having a tough timekeeping cool talks. john kerry and mohammed javad zarif were in intense discussion he over the arms embargo. arms negotiations have nothing to do with the nuclear issues and the arms embargo should be removed. shouting and doors being slammed this week. deadline. ali velshi has been in iran all week. here is a closer look at the reaction and sentiment that ali

has been picking up there. ♪ ♪ >> i'm ali velshi in tehran. a farsi language newspaper, main story says nuclear zero hour. deals distrust and deadlines. the world is watching. >> we have to work through some difficult issues. >> these are the things that iran does not seem willing to do. allowing its nuclear scientists to be interviewed and allowing full and complete inspection of its facilities. the foreign minister javad zarif returned to vienna. >> i'll walk away from the deal if it's not full and complete. >> the issue here is that the economy is has stagnated. inflation is rampant. the currency has devalued. these 600 bills amount to $100. but three years

ago, in 2012, this was worth $250. this is a city that in the day has 15 million people in it, we're trying to talk to as many of them as possible. i keep running into people who seem to like america. the drink of choice around here seems to be coca-cola. i have seen more people selling apple products than i had seen in the united states. there are some places you can come across where there are antiamerican sentiments, to avoid these companies to not buy these products. i was at the big friday prayers in tehran. the sermon was a little bit religious, a little bit political. there were revenues to these revenues to these negotiations. >> at any point these negotiations could go away. >> people want their sanctions

lifted, that's their bread and butter. before these sanctions they would send a 40 foot container a week full of carpets to america. now they don't sell these things to america. the effects of economic all playing out in the straight of hormuz. iran's biggest container port. doing two and a half million containers a year, that's dropped to 1.8 million, because of the sanction he. if i needed to transfer money to you from iran you can't do it. can't use the world banking system, can't by medicines. can't buy car parts. you will either build it here or buy it from those who will sell it to you. our unprecedented access in the streets of this the capital city of iran. >> nicholas burns was a former

under secretary of state for president george bush, also an ambassador to greece. he is now a professor at the kennedy school. ambassador burns what do you think of the sliding zed lines in the nuclear talks? >> not surprising. they are at the highest level of foreign ministers, pertaining to united states and iran the future of nuclear weapons. not surprising in the end game of these negotiations the issues get very tough. if deadlines slip i don't think that's a problem at all. you never want a deadline to prevent an eventuall eventual a. the deadlines don't always work. i was pleased that secretary kerry said he was going beyond the initial deadline. >> you won't want to suggest that a poison pill would be acceptable. insisting here again that the

conventional arms embargo be lifted why isn't secretary of state kerry just walk away because of that? >> secretary kerry is negotiating many issues there and these negotiations are k so confidential, so we can't understand exactly what's going on. the arms embargo was passed by the united united nations security council in 22, 2006 and 2010. the iranians were funding shia groups and arming them. in 2014 the major troublemaker, tarming syria arms the syrian government so

iran disoarveiran deserves ohave sanction he and they should not be lifted. >> is it troubling to you that it would appear that perhaps as part of the deal, the p-5 plus one powers may say to iran okay don't worry about previous efforts to weaponnize your nuclear program. we're not so concerned about that, you don't have to give us full accounting, we are concerned about moving forward. why wouldn't negotiators agree to that? >> i don't know that they haven't agreed to that. will the international atomic energy have the right to make inspections of iranian military fasts? that is a very important part for united states and other countries so i woman presume anything at this point. i would hope as someone who would like to be able to support this agreement that there would be unfettered access by the united nations inspectors the iaea inspectors. that is very important.

>> but look the iaea doesn't have unfettered access anywhere, in any country's facilities, so why should iran be singled out? >> iran has lied in the past, and in the international court of public opinion, iran is the country that is caused the problem and therefore it's going to have to accept a level of inspection that perhaps others don't have right now. it has no right to complain in my judgment. >> if the deal falls apart if the talks collapse, what do you see the next couple of weeks next couple of months being like between the united states and iran? >> first of all i hope that there will be an agreement this week or next week but if there isn't an agreement hypothetical hypothetically, you'll probably see united states and iran going back to negotiations at some point because they are having a

really tough time. the sanctions have done great damage, they need this agreement more than europe and the united states. so i would think if anyone has leverage here the leverage is with the western countries, with the united states and the european countries against iran. because they're in desperate need of an agreement. >> ambassador burns before we let you go i want to turn one question to greece, given you were ambassador to greece. what do you make of the referendum to reject the austerity measures that the eu has been imposing on them, have they bee been misled by their oafn own leaders? >> the eu has been very inconsistent and to get out of the terrible collapse with their banks closed, they're being at the verge of being ejected from

the euro zone, i would only hope that rational minds would prevail, it is very much in the side of greece to make an agreement, help to the people of greece itself but i think prime minister alexis tsipras has taken this mandate they thinks he has from the referendum on sunday he thinks he can somehow get a better deal than was being offered to him a week or two ago. i'm not sure that's the case. i think it's in the interest of really of everybody around the world, to see greece stabilized but if greece doesn't propose a reform plan, we'll have a crisis on sunday. last point on this i think at least on our side of the atlantic, i'm not an economist but i read eminent economists as saying the

unrelenting eu concept of austerity, these debts are not going to be able to be established or repaid. the point is being lost by the amateurish behavior of the greek government. >> be ambassador burns thanks for joining us. >> thank you so much . >> up next why do bernie sanders and be be donald trump have in common? be the issue has their opponents scared and we'll tell you what it is when we come back. >> you have to taste chocolate all day long. >> how one man's passion... >> you take a piece of chocolate and you break it and you listen. >> led to a lifelong obsession... >> i owe my life to chocolate. >> and a dark warning. >> the world will run out of chocolate by 2020. >> i lived that character. >> we will be able to see change.

are. >> we've talked a lot on the show about no-shot political candidates, the candidates that seem to have zero chance of becoming president but still enter the race. pundits and commentators were willing to add bernie sanders and donald trump to the list. but the trump and sanders campaign appear to be gaining traction and their surge continues. the other night bernie sanders drew 7500 supporters for a rally in portland, main and before, a group of 10,000 showed up in madison, wisconsin. the theme seem to be resonating. >> the american people understand that establishment politics and establishment economics is not working for middle class.

they understand that the greed of wall street and the greed of corporate america is destroying the great middle class of this country. >> as for trump, he's drawing more controversy than crowds. trump's acerbic antiimmigration stance has caused him imormts and business. but he has a fan base causing a significant problem for the party. it's hard to predict what the nomination races will tush out. that political establishment in both parties have now been put on notice that many americans are in a defiant mood. what do you make of boast the simultaneous rise of both donald trump and bernie sanders, is there something in common they have? >> i don't think there's anything they have in common politically. bernie sanders stands for pretty much the opposite of what donald trump does.

they are in the good position in the polls in respect to what they're up against. hillary clinton is miles ahead. that's the status of the democratic party. sanders is in second but he's in second way way back. that's a way different scenario on the republican side. donald trump is in second place but because he's in second place, he's got enough of the poll in that everyone else has 5% 8% that moves him up. >> hillary clinton self inflicted issues, but they see her as a centrist and see bernie sanders as the true liberal at heart who is willing to take on wall street. how far does that help bernie sanders, how does that hurt hillary clinton as far as the nomination is concerned? clinton.

there is not a lot that hurts hillary clinton she's so far ahead. definitely, hurts bernie sanders, if you look at very liberal voters, very liberal voters will support someone who is not clirl rather than support hillary clinton. >> that's the case eight years ago, where chicial came in second to john edwards and barack obama. 55% of the democratic party for whatever reason is tired of her doesn't like her and is looking for an alternative? >> i would say no. i would say sanders candidacy is very much akin to howard dean. strong liberal base particularly among older democrats. not the same scenario we saw in 2008. 2008, obama was a much better candidate, he still barrel beat hillary clinton, as dan fif fifer pointed

out. >> there seem to be a strong antiestablishment work outside the political system. bernie sanders, a self described democratic socialist, a political outsider if there ever was one but certainly in the republican field, donald trump about antithesis o the antithesis of conservative tiffism. >> these are both outsiders. both outsiders hold a certain appeal. there are a whole bunch of republicans who are not excited about him at all. tea party republicans don't like donald trump. bernie sanders is probably less of an outsider than donald trump

since he is a member of the senate but there is definitely an appeal here. >> is there a danger that donald trump has an ability to set the agenda, for example, immigration, he has forced all the republicans to come out and have to talk about it and deal with the fact that latinos have a big problem with the republican party from the rhetoric of the likes of donald trump. >> i think the republicans are happy to have this debate now instead of later on in the primaries. jeb bush doesn't want to have to say i hate plex cans or hispanics. donald trump is forcing that issue. i think donald trump is very quickly losing his taste for the race. the agenda he is setting is the one that people are following and not something the republicans want to talk about. >> phil thank you for coming in,

we appreciate it. that's the be show dam on behalf of al ali velshi and the entire "on target" team, i'm david schuster, thanks for watching. >> [ ♪ ] when racial tensions rise in america, black churches seem to burn. sure, some are struck by lightening or have faulty wiring, plenty of people believe a burping church sends a potent message. what is it all about. burping black churches - it's the -- burning black churches, it's the "inside story".