>> we are moments away from the closing bell. another selloff in commodities boosting demand for u.s. treasuries. u.s. stocks turning higher and emerging market currencies tumble. joe: the question is, what you miss? a commodities mess keeps getting worse. they sink to new depths today and what does it mean with china?

alix: feeding frenzy. cardell drops half $1 million on fish food. why salmon is such a big deal these days. joe: we take a closer look at norway. petroed times for a once state. alix: longest winning streak in a month. let's put all of this into perspective because volume is crazy light. look at the 10 day average and your average is down 24%. same for the s&p. nasdaq is off by 15%. it is a summer monday. joe: emerging market currencies, turkish lira's, they are all sliding again today. emerging market stocks all into another multiyear low and that has been the theme and continued today. alix: the two big movers were homebuilder stocks, rallied after we had homebuilder

numbers coming in better than estimated. you also have oil in a really p.m. sting move at 2:00 it lost 20% of its you and no one could tell me why. joe: it was ugly. i want to dive into my terminal. last night we got some japanese gdp data. it is just another thing that is kind of sad. it fell 1.6%. it was better than what was expected, but still another negative quarter. what is going on with abe-nom ics? when i want to look at is this chart. the yellow line is the japanese unemployment which is at its lowest level in 20 years. despite the fact that he growth is slow unemployment is , extremely low. alix: how does that make sense? joe: does that remind you of any economy nearby? in the u.s. gdp has been disappointing, but the unemployment rate has continued to be better than what the fed expected.

weple talk about, are turning japanese as an economy? alix: take a look inside my bloomberg terminal because i want to talk about china and what copper is actually telling you. take a magnifying glass when he comes to commodities demand in china. look at copper. here is the futures curve in the shanghai futures exchange. higher prices right now, lower prices in the future. to either notng enough supply were not enough demand. take a look when you compare to london. this is what the london futures curve looks like. lower prices now, higher prices in the future. it tends to point to weaker demand. what does that tell you? is it because we are seeing less supply? we got rains in chile? or is chinese demand a lot stronger than expected? joe: which is it?

alix: i don't know. [laughter] michael shaoul joins us now. he got china, emerging market weakness, a pending fed rate hike. michael says the one thing that matters is the high-yield energy market. high-yield in general. it is unusual to have a relatively well-behaved equity market. is what we have in the u.s.. we have gone sideways. energy has really let the way and high-yield materials has widened the lot. what is interesting is there is weakness in non-commodity sectors as well. communication is joining the party. the question a lot of professional investors are struggling with is a question of more turbulence.

are we entering a solid credit event? joe: what is the answer? michael: probably the last one. they are trying to think of what august 1998 look like. that included a good u.s. economy. we are at risk of spilling over into a general equity market correction. alix: what would be the catalyst? michael: too much pressure on too many portfolios. alix: mass liquidation or running to the hills? michael: any liquidation in this market will send the market lower. lower prices being on more selling pressure. you do not need to have a very specific catalyst. the concern is out there. there is a lot of uncertainty as

to what is happening in china. whole of thethe commodity sector, it has flattened. joe: 1998 saw intense panic but it was short-lived. if we saw looking like that again, would you expect it to play out similarly? michael: yes. i think it would have legs. similarit would be a multiweek event. response froma central banks. i think the u.s. would do nothing this time. i think the fed is set of to raise rates in september, all things being equal. i think they want to raise rates. i think if markets were in turmoil in mid-september they would not raise rates. that would be the response. alix: how much ammunition does

the central banks really have? what about europe? what about japan? michael: they had ammunition. in both cases they have used a lot and they are in wait and see mode. the pboc is in the middle of the bench a monetary easing cycle. having caught up with their deterioration a few months ago they have fallen somewhat behind the curve. if you are looking for the central bank to play the role of alan greenspan in 1998, they are the obvious one to look at. they are right in the middle of what is going on right now. joe: in the u.s. we have seen some divergence among sectors and energy. from the perspective of a u.s. investor, are there any areas that you like that of that others? michael: one part of the domestic economy is material upside versus expectations.

housing. i think people have accepted that it did not fall apart a year-and-a-half ago. they're just beginning to adjust the idea that we may have a second leg of a new housing market here. is one part of the economy that is still in a deep recession. if you make the turn then it , really gets quite interesting. the question a few months ago was when would the turn take place? suddenly you have a couple months of good homebuilder confidence, which at the very least suggests that the homebuilders themselves see a material pickup in demand. alix: how sensitive is the homebuilder sector to a rate hike? michael: i think you had a ction,l corre you would go down with the market. volatility mini- events that we have had in the last few weeks and they have ignored it. alix: i want to ask you about the baltic dry index because it really tracks the commodity shifting distribution all of the world.

up about 36% for the year, where you have the bloomberg index off by almost 56%. how you reconcile that? michael: it is super, super volatile. since the chinese equity market collapsed, most of the trader commodities have taken it on the chin. you had a big financial liquidation in the commodity sector. things that are not really traded on exchanges or look like they are substantial financial liquidation. balticike a tick in the dry index. can say the chinese economy has been stable after the equity market collapse rather than spinning off down a black hole. joe: you warned us about the possibility that equities could catch up to credit, we could

have a 1990 event. anything that keeps you up at night? michael: the danger is also that it does not happen, that the market goes straight up and people are not participating. this is a tricky market. i think a lot of investors are hoping that it does not do anything dramatic where we take a couple of days a between now and the end of august. sometimes markets cooperate. last week of august called a lot of people back from the reach. joe: thank you. alix: question for you. what overseas currency just fell to its lowest level since 1998? things are getting precarious in one corner of the world. ♪

alix: i am alix steel. joe: i'm joe weisenthal. what do miss -- what did you miss? we asked which currency just fell to its lowest level. alix: malaysian ringgit. and we did another 1% today to it weekend -- another 1% today its weakest level since the 1990's. joe: the economy is weak, the general selloff, the commodities . there is a political stand up -- political scandal. i've said it before on the show, but people should really go there and take advantage of the currency weakness. alix: to get right to your top headlines this afternoon. the associated rest is a

computer bridge at the irs is much bigger than it originally thought. an additional 220,000 potential victims had information stolen from a website. it was part of a sophisticated scheme to use stolen identities to claim fraudulent refunds. and more than doubles the total number of potential victims to three and joe: the federal 34,000. reserve bank of dallas has named robert kaplan as their new president and chief executive officer. he will assume his new post on he will replace richard fisher september 8. . kaplan will not be voting on policy until 2016. alix: comcast universals ' "straight out of compton" smashed opening records for in r-rated movie. it took home in america. $162 million it debuted in third place behind mission impossible. i have a 10-month-old.

i don't go see movies. joe: i don't either. alix: those are your top headlines. joe: one of the biggest agricultural companies in the world just want lungfish. they just paid 1.5 billion for a company that makes fish food. specifically food to feed to salmon. why? because farming salmon is incredibly hot. alix: fish raised in fish farms accounts for half of fish insumption, up from 15% 1990. i got to see what salmon production was all about and how important that feed is. salmon. it is pink, high in protein, and americans need more than one billion pounds a year. and most of that is formed. they are the only company

operating on the u.s. east coast and with demand growing, it provides a huge opportunity for a farm able to scale. in nature, salmon lay eggs of freshwater lakes. in a farm, the start in a hatchery. they are so small. >> they will double about every two weeks. alix: farm salmon grow faster and are four times more likely to survive than in the wild. when they get big, they move outside. how many are in here? >> there are about 6000, and the average weight is about 100 grams. alix: they move into the onestic to mimic how wild swim upriver. this is called broad code. this is just one farm. alix: how many fish in each pen? >> 25,000. alix: strong tides help to

recirculate water and eliminate waste. aquaculture uses a central feeding system and an underwater camera monitor. this prevents overfeeding the fish and prevents spending too much on seed costs one of the , biggest expenses for the company. at 10 pounds, fish are big enough to eat and wind up on your plate in 48 hours. let me put it in perspective for you. bebally by 2050, we will eating 18,000 tons of salmon a year. that is 800% more than we eating today. you have to find it somewhere. joe: i'm so impressed you did that package. someone just paid $1.5 billion for fish food but you were ahead , of the curve. alix: thank you. salmon eat other fish and there are not enough fish in the ocean

to eat. you have to make the feed, which carvilleu could argue -- cargill wanted to get into it. joe: do you notice the difference? alix: you do, but it depends upon the kind of fish that you like. the reason why salmon is so hot and so popular when it comes to eating protein from fish -- it has a large full a -- large fillet yield. body and a small head so you get 70% off of seven where you on other fishermen to 30%. norway and chile are the countries that are killing it. joe: what are the other environmental concerns? what do people say about this? alix: that they will end up messing up the ground that , they're going to go to the bathroom and destroy the area, and they're going to destroy

other wildlife. the area we were in a very tight regulation. they operate more in canada as well. their pens were -- that was a whole other segment. we will have to do that when we get back. when we come back, the end of an era. what story to bank is getting out of the coal business. ♪

alix: i'm alix steel. joe: i'm joe weisenthal. what did you miss? before the break we asked which bank is dumping its coal assets. alix: it is goldman sachs. ofave ended a 35-year era

refineries with a failed colombian coal mine. everyone is hating on coal right now. if goldman sachs is making money, they stay in the business. it clearly says something about the commodities super cycle. joe: everywhere you look it is bad for commodities. alix: we are going to take our focus and look at norway today. forget the financial crisis, oil at $50 a barrel is much worse for scandinavian's richest economy. and for a nation so dependent on commodity track has been crude. kari due-andresen is chief economist and joins us now from oslo. thank you for being with us. and you take a look at the next four down, most of it comes from oil and gas. how bad will this get? kari: the income from oil and gas is about 45%. when you look at the

manufactured goods, it is about 50%. this is like the single most important engine for growth in the norwegian economy. oil prices where they are at the moment are really devastating for us. joe: we have seen a big decline kronor with a selloff in the commodities. how much further does it have to go to stimulate the norwegian export sector again? kari: i think the risk is really on the downside. it is absolutely because of the poor outlook. we are expecting the norwegian er to stay weak and go weaker. but it has weakened some 50% versus the dollar since 2013. it has weakened a lot already. we think it has further to go, actually. it can help the norwegian export sector, but what is happening to the oil price is hard to

compensate for. alix: can you quantify that for us? how much money is norway going to lose and how load you think the krone is going to go? is nine kronecast versus the euro. that is basically where we are at, but i think actually that the risk is on the downside. it is hard to quantify with this actually manage for the norwegian economy because it is totally dependent upon where the new level for the oil price is. if it stays at $50, then i think the norwegian krone has much further to weaken. it is hard to qualify. ande is huge volatility that volatility will persist until we are more certain about where the oil price is going to end. joe: even before this oil crash there have been a lot of talk about the norwegian housing market and how it looks to some like a housing bubble that makes the u.s. housing bubble look

tiny. you can't see our chart but it could not be more different. does this were you, -- does this worry you, and do you think with this economic decline that the housing market is in particular risk? kari: it is definitely a worry. but has also been driving market for a number of years is demand outstripping supply because of very high immigration. i think this is not just a bubble, it is actual demand for housing that is very real. this is worse than the pressure areas. if you look at what is happening to housing prices now in the areas, houseen prices are actually falling. this could be a great concern going forward, adding to the other risks. alix: you lay out a bleak scenario for norway, but we ask our guest what keeps you up at night. what worries you? kari: it is obviously this, the

oil price. we are also worried about what is china doing at the moment . is the growth potential there even weaker than the number s suggest? the numbers suggest they are looking for every means they can use to develop the growth. if chinese growth should slump even further than we expect it could leave the oil price to stay low for even longer. that would be very bad news for the norwegian economy. alix: thank you for joining us. thank you so much. i know it is late there. joe: we will be right back. ♪

alix: i am alix steel. joe: i am joe weisenthal. what did you miss? alix: do not miss this. turkish central bank decision is out. this is why it matters. you've seen the turkish lira falling to records versus the dollar. the dollar rises, the lira falls. it is the third biggest drop in a major currency this year. what does the central bank do about it? stories. turkish lira

left of housing data out tomorrow morning. do not miss it. home depot earnings which has been on a tear. there are housing starts tomorrow as well. it should be a lot of fun. alix: have a great night. we will see back here tomorrow afternoon.

>> from our studios in new york city, this is "charlie rose." charlie: there has been so much talk here and elsewhere about the republican primary season and the emergence of donald trump that we thought we would take this evening to look at the democratic field of candidates. stump holes show senator bernie sanders leading hillary clinton in new hampshire. speculation continues to grow whether joe biden will enter the race. clinton has been answering questions about using private accounts during