>> global stock selloff, asian equities had for the biggest drop in three years after half $1 trillion is wiped off. managing assets continue the route. factor, set to fall the lowest in six years. the second-biggest economy could need more stimulus despite the slowdown. and greek prime minister alexis tsipras stands down, paving the way for the next election. his embattled 10 years running the country could be under fire in a vote in that country.

>> welcome to countdown, i'm caroline hyde. a happy friday if you are along the markets. the route continues, this selloff in the united states -- we sell stocks down or than 2%. the s&p 500, more than half a trillion profits -- the worst in 18 months for the s&p 500. the dow jones and nasdaq also falling. i want to check in on the world equity markets right now. i have on the terminal the all-country world index, and over the last month, the slump extending. we are currently on track for the worst week in global stocks in nine months. we are up more than 3% on the week, more than 4% on the month. this is significant. we are seeing more than $2 trillion wiped off the equity market. hong kong, taiwan, indonesia --

all on the cusp of bear markets. this is an excess of 20% of the low of the previous peak. down more than 10% yesterday, not one single stock rose on the german scale. a phenomenal move, let's kick it out to asia. juliet is standing by in hong kong. it is a volatile day out there. juliet: it certainly is, caroline. good morning. we want to pop to the selloff, and the selloff here in asia. you can see a see a sea of red coming through. the hong kong market has just reopened after the lunch break. 22,000 points, down 2.4%. it is now and officially bear market. we entered on the open today, you see a lot of the properties under pressure. galaxy was a loser yesterday. the casino operator being

heavily sold off. elsewhere, shanghai is down 3.4%. look at that gauge today, really exacerbating the selling. i want to show you the other regions. the jakarta composite is down 2%. it is now in bear market territories, as is taiwan. the index is on track for the lowest close. on track for the lowest close since june 2012. not only do you have the selling in emerging markets and of course the oil price, but also because of the tensions between the north and the south. in japan, a big fall coming through, as well. down 2.7%, australia having a recession -- a bit of a verizon spot coming through in new zealand. and of course we were watching those closely.

that manufacturing gauge when he came through, i will show you the reactions. this is the australian dollar reaction. you can see it was 9:45 hong kong time. 11:45 sydney time in that came through in the morning. we had that coming through, it has improved a bit -- currently at 73.18. i will show you how the shanghai composite reacted when the numbers came through. you can see it had that very volatile spike on the back of those manufacturing numbers. the worst rate you mentioned since march of 2009. the sixth consecutive month of attractions, august adding to the negative sentiment here in asia. caroline? caroline: thank you very much indeed. us to the twitter question, should china have done more to stimulate the economy? we know that the valuation has sparked the significant selloff.

we see manufacturing obviously significantly underperforming when you look at the private gauge the juliet was showing us. do let me know your thoughts. now let's check in with the commodities and assets getting the selloff, as well. how that plays into the oil market, oil off by 1.1%. that is traded here in europe. nymex down by a percentage. copper getting a selloff, moving into a haven. that is gold. doing significantly better, the second weekend above. swathe oflongest selloff since 1986. that is eight straight weeks of drops. it is clearly all painting doom and gloom if you happen to be in these markets. let's check in on europe a bit now. theis tsipras has called great coalition to judge his

tenure with the vote. that was in a speech last night. , ladies and gentlemen, now that the difficult cycle has come to an end, and unlike the usual attitude of many who consider themselves entitled to keep the positions, their seats, their offices, regardless of the conditions and circumstances, i feel the deep moral and political obligation to put in your own judgment everything i did. the rights and the mistakes, the successes and failures. this is why i decided and soon will go to the republic to submit my resignation. caroline: our very own tom mackenzie is live in athens for us. more greek drama, you and i both set here in the office when we started to get the snap election called. what is it like on the ground? tom: absolutely, caroline. another gambled by the greek prime minister alexis tsipras. it adds fresh uncertainty to the

situation here, just day after greeks secured the euro bailout. during the first cash yesterday. -- alexis sampras coming out and alexis tsipras coming out and wanting more. the economy is hampered by capital controls. there is a strong feeling here that the next few weeks leading up to this election, whether it is september 20 or september 27, we still do not know. but it will put more burden on the very week greek economy. the move was welcomed by greece's creditors. angela merkel brazil welcome to the move. but there have been warnings, saying that it may put in doubt some of the loan disbursements. of course, there are a number of very tough reforms they have to make over the next few weeks and months. as we enter this new political sphere for them, some of those reforms are now in doubt

eventually. though there are more positive words, the eurozone as a whole -- on the periphery this should not be a big problem for them. caroline: of course, what has prompted this is that he saw so many of his own party -- about one third of them basically mutiny against him. is he hopeful that this will go in his favor and he can start to get more strength on the back of this? get rid of those tough members of his party from the left platform? tom: that is absolutely right. essentially, this position is untenable after 34 members of his own party refused to back that bailout. that is why he has called the election. but the timing is really crucial for him. if alexis tsipras can get the election kickoff, then he has a head start over his main opposition rivals, new democracy and the other party.

they are in the process of leadership changes. it will take them some time to get organized. before that happens, each of the main parties will get three days to try and form some kind of government, which may in question the elections. seem to think new democracy will be unlikely to do that. the other main parties get a chance, but it looks like an election is what we are looking at. in terms of alexis tsipras, he got a lot of votes in january. willie hold onto those new democracy votes in the next election? ,hat is a big question for him where will he get those votes? if he can come out with a strong mandate, that will help them with a strong management to get the reforms through. but if that crumbles, it could be some kind of messy coalition. and that could really put pressure on the bailout program. and of course you have the review in october that the creditors. so, there are a lot of unknowns right, ithe gets it

is a gamble. caroline: he is a man who likes to gamble. remains to remember, he an incredibly popular politician in greece. tom mackenzie in athens, thank you. on to other european news, it is europe, data set to come this morning, we will get an update on european consumer confidence. we have a preview, and the numbers are still going to show growth. but potentially a little bit of a slowdown from the previous month when you look at manufacturing, services. >> that is the overall situation, it is not great. certainly expecting to go much better, given the declining oil prices and the weakness of the euro. though it has the euro going less positive side,

any number above 50 indicates expansion area and manufacturing and germany is 51 point six. but that is less than the previous month of 51.8%. france still contracting, but not as much as before. they are still at 49.7%. the number we are looking for is 52.2%. ever so slightly slower growth than the previous month, but the service shows the picture is much brighter. expansion is at the same pace and germany. an overall the same as the month before. but giving the prevailing conditions, you would hope that an ideal world, things would be going better. but perhaps what is going on in china and other selloffs, and of course high unemployment still in the eurozone, these things do not help matters either. airline: what abou caroline: what about sentiment

on the ground? elliott: you expecting declined from the survey, in overall consumer confidence. 6.9 is a number. whichever way you want to put it, that is worse in the previous month. caroline: i like to put it as a trend. in att: it is moving better direction, but it shows that consumers are not benefiting perhaps from the extra money you would expect them to have in their pockets from the declining oil prices. and of course, you would expect companies there to hire more if they can export more. and these numbers are of course not going toy are include the full impact of the selling we have seen in the emerging markets and the additional concerns about slowdown in growth in europe's biggest trading partners. the big picture overall when you look at pmi and consumer confidence, it is not

particularly rosy. caroline: thank you very much, elliott. now, coming up on countdown, angela merkel is in brazil with ties to the build emerging economy. more on that story when he returned. and what the china slowdown means for emerging economies. here is one bloomberg's guest's take on what is going on. >> right now they are going through the awkward teenage transition. they are going through that now from a controlled, rapidly growing economy to a much more open and much more growing economy. and we are seeing now they are grappling with that challenge. and that transition. ♪

caroline: welcome back, it is 6:15 here in london. 7:15 in frankfurt. here are the top stories. a gauge of manufacturing in china shows it has slowed to the

lowest in six years. reading came at 47.1 for august, compared to 48.2 estimates. readings indicate a contraction in the world's second largest economy, it could mean a slowdown. prime minister alexis tsipras quit his post in order for a snap election to be called. it is likely used to shut out naysayers and returned to power they manageable coalition in power. greek officials say a vote could be held september 20. and north korean leader kim jong un ordered a cease-fire and south korea. ofh side accuses the other provocation. tensions were high between the nation. earlier this month, two south korean soldiers were injured by

landmines. angela merkel is in brazil for trade talks with controversial president dilma rousseff. hans nichols is in berlin and has more. these are very busy times for angela merkel. brazil's visit have been prioritized. hans: it had been prioritized. it was supposed to be longer. is, dilma rousseff controversial. but she is an important ally as germany looks to expand the economy. when you see the global economy shrinking, the numbers are quite remarkable. 57 billionspent dollars on rail transport, a lot of upgrades to the economy. germany wants a slice of that. she is increasingly unpopular at home because the economy there is sputtering. unemployment last month jumped all the way seven .5%. that is a five year high.

look at the currency market, like a lot of the commodity economy, has been absolutely hammered. they are down 12%. here is what angela merkel said. she hinted that they need certainty, that there is room to expand trade, and we need reliable conditions for investments. you look at the total trade profile, the two economies when you say the european union and brazil, 21% of brazil's trade is with the eu. going in the other direction, refill is not as big or the european union. and you take a look at the other figures, about 22 billion german-brazil trade. here is the challenge, they are consumer facing economies. just take volkswagen, the world's biggest auto manufacturer. he had big plans for brazil. they had a good year, they sold about 500,000 units last year. it is down 26% this year for the

first half. that is a challenge, they wanted dis there.gi they are falling short. angela merkel hinted for a free-trade agreement. caroline: the venue on the play, she was quick to make a statement about what is going on in greece commenting on the election. hans: the comment on the election actually came from dilma rousseff, saying that angela merkel told her that alexis tsipras stepping down is part of the solution, not the crisis. that is dilma rousseff paraphrasing angela merkel. she could see how relieved dilma .ousseff was relieve discussingwo women very different lyrical outlets.

one more popular than the other. thank you very much. another emerging market in focus, south korea. an exchange of fire broke out across the line with north korea. is accusing provocation. kims get to bloomberg's sam who is on the ground. give us an update on what the latest is. thati thought this morning the north korean leader put his troops on war footing meant that he has declared a semi-state of war on the demilitarized zone. control 1.2 million troops, a lot of soldiers. but it is unclear at the moment how he will launch any kind of operation against south korea. his warning that south korea should withdraw all of the

loudspeakers blaring propaganda against north korea within 48 hours, the deadline would be 5 p.m. tomorrow. if south korea does not accept that demand, he said he will do something that is going to surprise south korea militarily. caroline: clearly, south korea on high alert when it comes to the military. we see the market effect, a sell there.king sam kim thank you for the update. the emerging markets seen, the race to the bottom has become under increasing pressure. plunging prices for commodity exports and of course the prospect of higher u.s. interest rates. devalued yesterday were the stocks and bonds, let's bring in kevi henn serkin. and the cio of investment

management. let's kick off with you, this is your forte. why are we looking, who is next? there were other countries on the brink to go next. >> also devaluing repeatedly three times. you have to look at the tectonic plates shifting here. china is the one in the news, and focus at the moment. the depreciation of that currency is slowing. as you mentioned on the news, the manufacturing gauge is further evidence of that. but there is the threat of higher u.s. interest rates. the collapse in oil prices, there is russia which is in severe recession right now. , look atruble plunging the country's most exposed to those four factors. and the ones that have so far resisted the depreciation that should be going on in their currencies. and the ones that spring most a minor for investors right now

are nigeria and egypt. two countries heavily exposed to oil, nigeria has 90% dependent. and they are countries that have access to foreign national currency, but it is restricted so much in nigeria that people struggle to pay their suppliers. formeru have the whole soviet union currencies, we saw turkmenistan and the rest of the stans. they are very vulnerable. there is the floating rate of currencies, the lira has tumbled. ukraine's currency will see more depreciation there. caroline: we have seen kazakhstan moved to the depreciation rate. why are we seeing egypt not falling faster? why are they trying to hold up

the foreign currencies against the market? >> it looks like a very strange race where countries like turkey are surging ahead. advisorident's chief last week says he sees the competitive rate for the lira much lower at three per dollar. low and behold, and went there. and you have others like nigeria and egypt holding back. it is political, mainly. if you allow the currency to weaken, the import costs go up. nigeria and egypt are heavily reliant on basic stuff like food, the bread in egypt is important. and the week is important. unpopular to have a weak currency. caroline: you are looking at emerging markets a bit more, but not these. >> we are looking more on the consumer side. but to come back to this

competitive variation, we have to concede that actually emerging markets are going slowly are at the moment than the developed markets. in the have much higher real yields than we have had in the developed markets for quite a while. it is right for the emerging market actually lower their yields, interest rates, and a value the currency. that makes sense for them in the environment to import the growth that is coming from the more developed markets. actually, yes, it sounds quite exciting. and what china did last week does make sense overall. caroline: i'm afraid we only have a few seconds left. but should they be doing it in such an unmanaged way? lothar: a bit more coordination would not be a bad idea. but it is difficult to do between those countries. overall, i would say they are doing the right thing. and with the global economy on the right track, i would say that the bottom is relatively close. caroline: the race continues.

gavin great to have you on. thank you, lothar. now coming up on the show, we will be talking to commodity billionaires. stay with us. ♪

welcome back, it is 6:30 here in london. here are the stories you need to know tonight. a gauge of manufacturing in china shows the selector slowed. a preliminary reading came in at 47.1 four august. that was compared to 48.2 estimates. in thed contraction world of us fifth second largest economy, and it could need further stimulus to slow the growth. aexis tsipras calls for special election, hoping to

return to power with a more manageable coalition in parliament. a great government official said a vote could be held as soon as september 20. hewlett-packard earning forecast says sales declined across the board. shipments fell below 9% in the second quarter, as customers cut spending on software and services. hp plans to boost revenue and growth later this year. shares have fallen at least 32% this year. now great prime minister alexis tsipras has called the snap election in a bid to strengthen his authority. greek voters will decide a new leadership, we understand. joined by an expert. thank you for joining us. september 20, will the strengthen alexis tsipras? will he managed to get the left platform and be able to push

slightly less abuse from his party. >> that is basically what he is hoping for. the idea is that this election will now corrupt between the left platform will become official. and the hope is that he is going to have a party that is going to be closer, more closely controlled by him. as new parliamentarians are elected. by the way, he hopes he will get a more cohesive government under his control. and he will be able to push through the reform package. caroline: i want to bring in lothar. give us a sense of this. we have been wondering how he would continue to govern. for me at the moment, it is very much the question is this the political strategy move for him a get the left out and get

bigger mandate their for his position? as he said on television, it is a step to get the mandate to implement the reforms in greece that are so urgently needed. that to me is the question. it will be good for euro and good for greece. otherwise, it is another game. caroline: he still remains an incredibly popular leader in greece. you wonder why the markets got so low. do you reason to be concerned? angelos: you should not get nervous, he is only gaining ground. he is in a position of disarray. specifically, nobody is running against him. at the same time, history has shown us over the last five years that political capital in

greece can be spent very quickly. look at all of the governments that have fallen when a bailout comes. angelos: he needs to do things that seem to be incompatible to him. he has to push through austerity. but he also has to retain credibility as a radical left leader. and it is paradoxical. but for him to push more reforms, he has to maintain some credibility as an anti-austerity reader. and you will see complaints that he has a new mandate to do things. everything from credibility, but how far can he go by claiming to be a leader of the left? and lamenting austerity, things can go south for him quickly. caroline: how much are the greeks on the ground buying his view that these austerity measures have to be imposed in greece will remain in the eurozone? angelos: it is quite interesting.

until now at least, it might change later, but he has not been arguing in favor of the validity of the reforms. he is basically saying we have to do it because they are telling us to. he does not seem to believe in the reforms. so one has to wonder how far he is going to be himself willing to actively convince people of about the validity of the reforms. after theix months election, people will feel the pain. higher property taxes and all those things. for the time being, people appreciate the fact that he did try to renegotiate. all of theably hate pro-european parties that are like him. but that is ok, because it works for him. was no alternative. at some point, he will be associated with difficult reforms. he will be associated with see before,s we

that evaporates quite quickly. caroline: will greece eventually exit? lothar: i don't think so. with this bailout now, we have really hit the can down the road quite far. if he gets the mandate, and i'm convinced he will, i think greece for the time being at least on the right path. caroline: thank you very much. lothar will be sticking with us. my thanks to angelos. i'm butchering your name, i apologize. you some bring breaking news. we have had some continuing selloff in taiwan. first up, taiwan entering the bear market we understand. the selloff in the emerging markets and asia continuing, the perfect storm brewing on one side. china devaluing property, and they export tot

is being hurt. taiwan meanwhile has the fed raising rates. the perfect storm brewing. as bring you the news in pharmaceuticals. novartis.sell off to they dropped to $1 billion in royalties. this is the remaining right to glaxosmithkline's unit. they will make an upfront payment of $300 million to gsk. for this particular drug, novartis requires the rights for other autoimmune indications. more on that side, never a dull moment. china's data shows the manufacturing sector fell to the lowest in over six years. the contraction suggest further stimulus could be needed, which is bringing more from hong kong.

richard, is the term evaporating? we're starting to see the market continued to spiral lower. there is much talk that china might have to recalibrate what is for the prospect year. richard: that is right. if you look at it, it has been a battle of the government versus the market. and the state is losing. unprecedented campaign over the past six weeks or so to try and shore up the market. it did succeed for some time, it rebounded. people are talking about the bull market resuming. but shares today fell as much as 4.7% after that shocking figure, which comes on the back of a series of worsening economic data. and that meant that the shanghai to march is back numbers. this raises questions about what

the government can do going forward. we have seen evidence at the wealthiest traders have been lost in the market. there is evidence of capital outflows. fleeing the country because of the economic slowdown. totoday' is figure really as the sense of deepening concern about the economy and what the government can do to shore up asset prices and economic growth. caroline: what about the next steps? the devaluation many felt that was a helpful element to exports, while moving towards having a reserve currency? when we see monetary policy from here? that is what many are starting to bet. richard: we know that historically, particularly reserve ratios, the ratio is

very high compared to what it has been the average over the past 10-15 years. so there is plenty of movement they can do there. part of the problem may have had, because they have to intervene so heavily to support the devaluation last week, that has actually been sucking money out of the financial system and driving up money market rates. which equates to a tightening of conditions. tot means they have tried put huge amounts of money into the system. this week alone, they put in the most since february. and just seems like there is constant tinkering to try and keep things going. and despite all of the stimulus we have seen over the past year, rate requirements being cut and everything else have thrown at it, we are not seeing anything. we're seeing the opposite, that things are worsening. caroline: let's go to hong kong for the latest in this. thank you very much, indeed. that leads us to the question of the day.

should china have done more to stimulate the economy? to stop the unraveling cuts. tweet me. that is with the route happening across asset classes, it has been a rocky year for commodity billionaires. almostrichest have lost $100 billion between them. rob is here with more. and lothar is here, too. what is the haptic that is wreaking on multi-billionaires? rob: it is the copper slowdown rippling through everything. as you said, the 65 billionaires that we track on a daily index of the 400 richest people, they have billions of dollars less. they're down to about $90 billion. there was a bit of a selloff, yesterday as well. you see situations like glen

corp. ivan is a perfect example. they trade exclusively in commodities. his fortune was now down to about $3 billion. the values are not there anymore. the asset values are plummeting. caroline: the heartbleed's. [laughter] tell us about who is gaining? some interesting things going on in russia and china. a couple of chinese commodities billionaires who have increased their fortunes. they had this advantage that glencore does not. they sell in u.s. dollar terms, and they have expenses in china and in russia. where fortunes have gone up the cause the dollar is so strong. and collecting a lot of dollars, they may not have a cap this year. but they have operating costs in low currencies selling dollars.

so if you billionaires have gone up. the aggregate is pretty bad. perspective,m your does it get any worse anytime soon? or is it safe for the time being? i think we have to concede that the cycle has come to a premature end. but that was very much a side effect of quantitative viewing. the wrong the price signals increase capacity so much that we have an overflow. demand is growing, but business supplies are a problem. i'm afraid they're not going to get their riches back. but it was always paper money on their anyway. caroline: do not sell assets to quickly? a surprise, anybody else we should keep an eye on? industry, a related but it is a surprise in retrospect. there is a billionaire you have never heard of. a german billionaire, he is not

retired but he founded the company. he makes wind farm equipment. as you might imagine, this is quite a good business. there is a lot of enthusiasm for alternative injury. he has gone up, it has not doubled but it is close. he has about $6 billion right now. you are trading in the energy space, there may be some rights bright side. caroline: go greener. rob on the billionaire list. and lothar is staying with us. the turkish lira has fallen the first time. after the break, we will be live in istanbul for it means for turkey. and there is social unrest in the city. stay with us. ♪

caroline: it is 6:47 in london. here are the stories you need to

know this morning. a gauge of manufacturing in china shows its load the lowest level in more than six years. luminary reading came in at 47.1 for august. that is down from a 48.2 estimate. readings below 50 indicate a contraction and that the economy could need further stimulus to support it. prime minister alexis tsipras quit his prose in order for a snap election to be called. he is likely to use the move to shut out naysayers and return to power with a more manageable coalition. an official said a vote to be held september 20. and north korean leader kim jong un or his army to prepare for war, following an extended fire across the demilitarized zone with south korea. it was the worst since 2010. each accuses the other of provocation and tensions were already high earlier this month, two south koreans were injured

by landmines. they were planted by the north. turkish markets extended declines yesterday, sending the lira below the dollar for the first time. that is the head of the august 23 deadline for coalition government. we are in istanbul with more. we are seeing a lot of political instability in turkey. where do things stand and h ahead of the deadline? >> that is right, turkey right now is in a complete political limbo. after two months of trying to form an election, the party has failed to form a coalition. we are going to be going back to early elections. the board yesterday said that the first of november could be a possible date. but they have not announced this unday is thes

official deadline. it does not look they will do that. so next week we should be hearing the exact date of win that election will be held. however, people are saying that maybe early elections will not be as clear-cut as a look. opinion polls show that the other party may still not be able to secure the majority it needs in parliament. to roll the country. so we may be back to square one before you know it. caroline? caroline: we know the social unrest continues. tell us about the unrest in the financial markets, we know that the lira is a record low. simin: that is right. over the past week, the lira has been hitting record lows day in and out. yesterday, it saw three per dollar. it is one of the worst-performing major currencies in the world, on about 20% about this year. a lot of uncertainty in the market as well.

and the central bank is not helping whatsoever. unchanged, even though some were expecting a rate rise. and they're are saying that they are not going to raise rates until the fed makes a move. so some experts are saying that the central bank is paying too much attention to external turkishrather than the deteriorating market, and sell. but some banks like morgan stanley say the central bank may deliver an emergency rate rise for we know it. so investors hate uncertainty. and that is exactly what turkey has right now. lira, we the turkish see the dollar rising. simin is it is simple. we will talk oil and tech. because our next guest is the cofounder and ceo of sky future. thes a company leading

march with drones. website editor is here. as well as lothar. you published today tim a great story about sky future. this is about the future where drones -- talk to us about the market. tim: we called it robots replacing roughneck. instead of a guy dangling, you drive a drone. usually you shut the monsters down because you have belching hot dangerous explosives. but you don't have to do that with a drone. you send it up and it has cameras so it is a whole different world. caroline: james, tell us about that different world. how much have you see the appetite for this going forward? lot.: it is coming on a

we have 36 points globally. they're seeing a variation in different markets. oil price is increasing pressure to cut costs, and southeast asia and foreign markets have taken to the technology fast. and we just got permission in the united states to set up a houston office. from the6 exemptions faa. we are expecting a huge uptick in the american market in particular. spiral ina downward the oil industry is helping you. risks that you face, we know the risks that someone dangling from a wire might know. but there must be technology risks and the amount of money you have to plow into this. technology,any new it is difficult to know what is acquired. research the market for years, understanding what the service was.

he did not exist five years ago. by delivering what parts we could automate and talking to customers every day, we took that into our technology cfo and said we have to devise out rhythms to investigate this. we have new products coming out that are directly linked to customers, people like shell and bp. they are said we need to measure this and check the problem. so we work out the market size and the technology and put it together to say we're cutting risks on the technology side and evidently. caroline: tell us what you are trying to a college. they are not circling and taking pictures, they can analyze and preempt damage to an oil rig before you know about it. james: absolutely, that is a big thing. when you have an oil rig online, you cannot look at it until you shut it down. and you might find nasty surprises. areas that are dangerous or impossible to inspect when it is still on, you may suddenly find it has major damage.

which means you have to keep it shut down for longer. when they arehem still online, you save cost. working for a very big oil producer in southeast asia, two months before they were to shut down, we checked the pressure rig. on the we realize cracking on a newbies of equipment and we were able to work with them using our technical experts to provide a fix. and they managed to fix it and avoid a shutdown later in the year. on a very conservative estimate we are saving around $6 million. caroline: this is great that you pay companies are leading the charge. you recently raised venture money, and this is an area that you are looking at where technology can help disrupt and actually cut costs for larger industries. lothar: we are quite positive towards the technology. there are a few exciting things in the pipeline. i'm excited to see the need for drones. so far, they were see as a toy

or game. and this is a good application of strong technology. i think it is great. caroline: i want to move to the online content as well as the fantastic story on drones. we also have some potentially news coming out of greece. we know there is an election. tim: it is actually doing really well, that is what the story is about. it is unfortunately about the drought in spain. what they are calling the olive ebola. killing trees all over southern italy, it has devastated the olive crop, as well. and greek reducers are y grabbing a bigger share of the market. if you go to the wholesaler costco, their own brand of all oil now has a blue cap. instead of spanish moss green. caroline: keep an eye on your olive oil cap. james harrison of sky future, a

company to keep your eye on. and tim and lothar. coming up next, it is all about economic data. stay tuned, we look ahead at those numbers breaking today. ♪

caroline: global stock selloff. the biggest weekly drop in years after half $1 trillion is wiped off u.s. shares. emerging assets continue their bust. gauge shows it felt with lowest in over six years. that suggest the world to second biggest economy could have bigger issues they slow down. alexis tsipras stands down leading the way for elections. there can be a vote on september 20. ♪

welcome to "countdown," happy friday. let's check in on what happened with the not so happy markets if you are in the equities in the united states. we saw selloffs totaling 2% across the board. some of those hits being taken, the worst in the s&p 500 in 18 months. we have more than half a trillion wiped off in terms of market valuation. to give it a global stocks, more than $2 trillion wiped out across the week. a tumbling -- this is the world index. this is across the month. we are off by some 4% on a monthly basis but down 3% on the week. it is the worst week for global stocks and nine months. the perfect storm brewing -- concern of u.s. rate raises,

that means money draining out of the emerging markets. you should be chinese devaluation having ramifications across the world. we have vietnam starting to devalue their own currencies when they see imports getting more expensive. and me have greece adding to some uncertainty as to alexis tsipras is standing down having called for an election. the greek coalition leaders will have a vote, that came in a speech last night. greeks, ladies and gentlemen, now that this difficult cycle manyome to an end, consider themselves entitled to , ip depositions, regardless feel the deep moral and political obligation to put in your own judgment everything i did. the right to the mistakes, and the successes and failures.

this is why i decided to submit my resignation, and the resignation of the government. caroline: let's get straight out to athens. we suspect elation brewing that this could be called. give us an update on this greek drama. we thought we put it to one side, but it seems not. another roll of the dice by the greek prime minister. it wasn't entirely unexpected as his position has become mpsnable as 44 of his own failed to back the deal. of economy under a lot rusher with capital control and very minimal, if ever, that is a dded on pressure. that showed up in teh bond markets yesterday in the bond

and italian markets. at thes an expectation political parties fight this one out, but many reforms part of the bailout are in question. can those be pushed through with all this uncertain the -- uncertainty? t -- it seems to support him, but this highlighted saying that loan disbursements part of the bailout may be put into the question as well. some saying it won't have too much of an impact. the bailout program is what is really in focus. there is a crucial review by greece's creditors in october. ,f he can get early elections

he may come talked with a stronger mandate. caroline: of course, that is what is underlying all of this. , the third ofion his party voted against him. they revolted during the passing of this bailout. this is what he is trying to correct at the moment. absolutely. hisas a couple things in populare is much more than anyone else. he is also facing in opposition going through their own challenges, they both had recent changes to their leadership. they probably aren't as ready for this as they would've hoped. they also don't all think the

same. that was some speculation platform may come out at some point today and announce a split party that would challenge series a if these elections to come to pass. in all likelihood, the new leader going to the greek president and seeing if he can form a government in greece. because of quarks in the electoral system, it is considered unlikely that new democracy will be able to form that government. other political parties will be given a stab at that. it does look like those elections are coming up. forget, a lot of votes back in democracy -- january, can he hold on to those? coalition, a messy be questions about

how he will push through these reforms. caroline: we will see what this third bailout does. breakingeen getting german consumer confidence data. ahead to theng wider euro zone number. >> it is still looking pretty atfident, it is coming in 9.94 september, that is still close to a record high but is lower than what we have seen the previous months. theannot be said that economic motor will stutter. are concernsthere about the far east in the emerging markets a lot and the

chinese devaluations. caroline: yesterday, not one single stock was up on the dax. talk about the rest of the day, it will be growth, but not looking all that rosie. outside of germany, the overall picture is the gloomy. if we look at the two biggest manufacturing in france is still expected to contract. they are inching closer to the 15 number, but are expected to see a slight contraction. in germany there is growth, but not quite as fast as it was before. again, slightly lower. the picture somewhat better with france growing, that is the same as the previous month. zone,l, for the euro

pretty much the line at 54. not bad given everything that is going on in the world, but given that you have declining oil prices, you have the weaker euro down 16% over the past few months, you expect that to be going down as well. and you have the stimulus from the ecb. worries about slowdown from china and unemployment expected to come back in as the same as the end of 2013. unless these numbers start showing greater expansion, it will not filter through into economic growth. we had lower growth than expected in those figures the other week. caroline: we did indeed. numbersch manufacturer select a break. thank you.

we are expecting that data later this morning. the pmi french number will come out that 8:00 a.m. than the euro zone will break its overall services manufacturing composite number at 9:00 a.m. now, let's take a look at what is moving asian markets at the moment. iserfect storm brewing that affecting europe is filtering in from china and hong kong. a down day we are seeing across the board with big knocks on bear markets. juliette: who actually have three of the asian markets in their market territory -- bear market territory. we are watching the jakarta

competent and hang seng closely. following those weeklys. the s&p 500 erasing the year-long gains. you can see here how much selling was done, there was only one stock in the nikkei that was higher today. it had it's lowest close in two years. tensions between the north and the south in korea. the indonesian market trading in their market territory down by more than 2%, as is hong kong. the shanghai down by 2.4%. manufacturing

coming through. but we look for in terms of the shanghai composite is similar to what we were talking about yesterday at the 3500 point level. level, its below that looks like it was getting very close to that today, but we saw a little bit of a pickup. this is the three-month chart, down by almost 21%. certainly seeing quite a lot of selling coming through hong kong, taiwan, and indonesia. level weioned, that will check on the close in hong kong in just under a half hour to see if it to closes. it could be done 20% for most peaks in april. caroline: thank you very much for the update on the asian trade.

we just had that evaluation, but should they be looking at monetary policy? should they be cut in the reserve rate? course, this doom and gloom is filtering into european trade once again. i want to show you have futures are currently trading. check out the stocks currently 5100 asy screen, the much as 1.3%. 2%, it losing as much as lost that much yesterday, it did not have one single stock trading higher yesterday, everything trading in the red. of course, political issues when it comes to greece. look at another asset cost, commodities, we are seeing that play into the global market selloff. oil off by 1.3% if you are looking at crude. this is been a long cassette of

1986, this the eighth straight week of losses for crude. copper trading as well because of the slowdown in china coming in worse than expected. construction once again that will be hitting the minors -- miners hard. the bright spot is gold. you are searching for havens. " we'veup on "countdown, seen what a rocky road it is been for commodities. what the riches 65 billionaires losing almost $100 billion between them. there was once a prizewinner, find out who that is after the break. ♪

caroline: welcome back.

here are some of the top stories this morning, manufacturing in china showed it slowed to the lowest level in six years. below 50 indicate a contraction and that china's economy could need stimulus to prevent a slowdown. alexis tsipras his post in order order-- quit his post in for a snap election to take place. asse elections could be held early as it them a 20th. told north korea to prepare for war. each aside is accusing the other of provocation.

high,ns have already been to south korean soldiers were badly injured by landmines. now china's stocks stood by an unprecedented government campaign to prop up the market. strategy, of china who else is better to talk to us about the monumental shift we are seeing? hong kong is expected to close in a bear market. talk to us about what is going on with the manufacturing data today. was that a surprise? think, for the manufacturing data, that was worse than expected. it runs counter to a lot of things we are seeing on the ground. things in the property sector

underway for several months. that take-up is finally leading up inns of a pick construction activity. this number doesn't look good, but in the coming two or three months we expect the macro numbers in china to finally start improving. some anecdotal evidence of that coming in because of the big property companies are all in town at the moment talking about the first half results. clearly, something positive is going on even though the other parts of the economy still look very weak. caroline: there is talk later in the year when the next five your policy is set out. they could downgrade their ofrall views to in the realm 6.5 percent. where do you see growth for china this year? erwin: we are not worried about this year. we do think that could be a slowdown this year.

-- next year. we do think 6.5% will be the number we get in 2016. there are some further slowdowns to happen. but for this year, the chinese government has been in gauging in a aggressive stimulus for over a year and a half. that is focused on the property sector, we're now going into a modest upswing. when you look at the equity market, it is an interesting time. in the last two months we've gone from observance to crashing back to an almost 12 year low in terms of evaluation on the index. it is probably good to be accumulating stocks at this point rather than spilling out of them. that is our message to get across at the moment. dooline: the time to buy, they have it wrong?

with him the follow-up across the rest of southeast asia. that shouldn't be happening, should we be less worried about the slowdown in china? have: at this point, we most of the bad news the past tense. it is time to be looking into the fourth quarter of the year for some improved macro data, looking at improvement in corporate earnings. then, we have other things coming up that will be very important in terms of reaffirming commitment to reform in china. the believe in china's commitment to structural reforms is quite low at the moment. caroline: where should we be buying? should've the property stocks? there was an ongoing debate that the state owned companies would start to merger, will we see them back off?

we massively favor private enterprises in china. due forenterprise is slower growth, but they are much better run. they are gaining market share. in theof that, we add new economy sectors. anywhere you find the growth, whether media, tourism, or else. emagin property related sectors, including material stocks, maybe some machinery. generally, we don't think it is a good time to be too defensive. we think it is a bit late for that. it is time to look for more opportunity heading into the fourth quarter. caroline: time to buy. thank you very much, indeed.

let's return to the asian market focus. a more dismal view than our previous guest. is the week currencies from china, and russia, their plunging prices for commodity exports. higher u.s.l interest rate is leading into this perfect storm. bloomberg billionaire is going to be talking about some of this, the highest in the lows are out there, but talked to us about the emerging markets. with already seen devaluation in vietnam, but you think other emerging markets can be next. gavin: it is not the scale of the move, but they have gone for having an exchange rate the past few years to going into floating exchange rates.

that is the significance. they have fairly good resources, they have $100 billion of reserves, but this is a country that decided it will let the currency depreciate. ,hey have a lot of foreign debt so there is payment involved in that. if they will do it, you wonder about the other countries like nigeria, or egypt, that is steadfastly held to this fixed exchange rate. how long will they be able to keep up with that? then there is a whole wave of former soviet economies that are in a similar situation with kaza khstan with reliance on china and russia. caroline: getting into this, there has been a commodity selloff. half, and this is an unusual time if you happen to be a billionaire. >> in relative terms.

from a year ago, the 65 commodities-based billionaires on the index, they had about $730 billion collectively, now they have $650 billion today. there was a huge drop-off last year than a bit of a rise. it is kind of a volatile move. but you talk about currencies, it is been a mixed blessing. a lot of these companies are closely held so their daily pricing is a little obscured. they are seeing some improvement, some of these forces are rising, but that the be trend is heading further down. caroline: we will keep a close eye on the rest of the foreign-currency fallout. we wish we had more time. bear rears it's

head in asia. china's slowdown and evaluation taking its toll. we get the latest live from hong kong. ♪

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caroline: welcome back. here are the stories you need to know. slowed toing in china its lowest level in six years. they came in at 41.7 percent for august that was compared to a 48.6% estimate. prime minister alexis tsipras quit his post to have a snap election in greece. it is used to shut out the naysayers and create a more in thel coalition

government. those could be held into temper 20th. and hewlett-packard's earnings forecast missed estimates. tc shipments -- personal computer shipments slipped, and hp plans to split to boost revenue and growth this year. shares have fallen nearly 32%. we are less than half an hour to the european open. i want to bring you an update, it looks as though we could he going -- we off by 1.9%. the dax could lose more than 2%. yesterday not one single stock rose in germany in the dax. most industry groups falling across the board. we are now up 10% the previous high -- off 10% from the previous high of this year. the concern to spilling over

from asia. let's get out to asia to see how the markets continued to deteriorate. you have bear markets across the board. great day at all in asia. this picture of red right across the region. new zealand had an ok day, australia being sold off in line with what we saw in the u.s.. on the nikkei, the index close below the 20,000 point level only one stock closed higher today. without the costly index effected by all that we've seen in emerging markets. the custom index closing at its lowest levels in two years. we are still seeing a little bit

of growth for hong kong and china in the hang seng index looking that it could close in bear market territory as well, however. it has been lower than where it is at the moment down 1.8% in the late trade. anytime it gets close to that 3500 level we see some pickup and intervention. indexerall asia-pacific at its lowest level since february 2014. caroline: a dismal day to the end of trade, the worst week for stocks and nine months. it brings us to our twitter question. i want to know your views. should we see more monetary policy? erwin, that china will

get much better? let's bring in our next guest, thank you for joining us, what is happening in china? should we be as concerned as we are? abriel: markets probably overreact, but it is clear the chinese economy slowing down much more than the authorities are telling us. i don't think they have a secret set of numbers, but they look at things differently. if you look at the flurry of easing activity targeted at interventions and so on, getting a national team, everything tells us that economic activities are much less than 7%. in fact, leading indicators, isngs like car sales, growth

probably below 7%, below 6%. china's long-term normalization, but it is happening more rapidly than a lot of people believed. caroline: as we are seeing, significant in the emerging markets losing. what about ramifications here in europe? we are seeing thewe are seeing d the auto companies being really hit. is there going to be a market factor here in europe? l: i can't quantify that, but of course there will be an effect. not just to china, but other countries in asia with weak demand. those exports will, of course,

be hit. that being said, ultimately demand is far more important in europe as it is in the united states. in europe, everyone is trying to .chieve export lists growth somebody has to buy, and they won't be the asians, that we do have a problem. caroline: do you think the u.s. will be looking at what is happening in china and reassessing raising their rates? briel: the obvious answer is yes, because we know they are. that being said, our main -- it is becoming more of a postop, but we do think it will be september. but the fed and the bank of england really want to raise interest rates at least once. they want to show current rates

are not the new nomura -- normal, we will start to normalize. had home sales probably their best month in eight years last month. if they can't do it when domestic demand is healthy, when on earth will they do it? my personal view is that september for the fed, and february for the bank. corporate view is perhaps still a bit of a chance at september is porous bone. but domestic demand is strong in the u.s., they have to do something. aboutne: we're talking pmi in the middle of that. coming up, pmi data in europe after the break. we look at what to expect that data. ♪

caroline: welcome back. here are some of your top stories this morning. kim jong-un ordered his army to prepare for war following an exchange of fire across the demilitarized zone. the other ofuses provocation. tensions were already high earlier this month when to south korean soldiers were badly injured by landmines that the cover planted recently by the north. showed iting in china slowed to its lowest levels in six years. that is compared to the 48.2% the below 50 indicates contraction and at the world's second-largest economy could need additional stimulus. hewlett-packard's estimates

missed. they fell more than 9% in the second quarter, they cut spending on services. they plan to split into later this the -- in two later this year to split growth. tsipras has called for a snap election. they want the greeks to judge his tenure with a vote. let's get out to tom on the ground in athens. the speculation has been brewing for days whether once the ecb the financey, once ministers signed off on the deal, if alexis tsipras would focus on politics at home. tom: absolutely. everyone believe -- breathe a sigh of relief. the 86 billion euros is on the

they got their first initial -- that serenity doesn't last very long. it wasn't unexpected that this would happen. if they willt know try to form a government to push the futureay in elections. maybe that will happen, but it looks like the electoral law, and because of a lack of similarities among the opposition parties, he will find that quite difficult to do. the leader is expected to speak to the president of greece today . he is three days to form some kind of government. in the meantime, there is uncertain the that this creates as the parties gear up for this. it possible day for elections, either the 20th or 27th of september.

rather his questions over whether or not this bailout program will be delayed. will the reforms bg by these political machinations? there are reforms on the table for october on taxes, on pensions, on the labor market. we will be talking to the minister of labor solidarity in the next hour. this brings up a lot of questions. alexis tsipras hoping he can get out of this was some kind of mandate. he wants to carve out some of the more troublesome rebels in his party, the 44 who did not back the bailout in the first place. if you can sideline some of them, and if he continues to get the popular vote, then he could come out of this stronger. loses, then it makes things a lot more difficult and puts those reforms and the bailout in question. there is in october review when

the creditors will be here checking in on things. he wants to get all of that cleared up before then. timing is now crucial. caroline: we will wants to see how those bond markets changed today. tom mackenzie in athens today all day for us. with trade talks with the controversial president. hans nichols is in berlin and has more. a busy time for angela merkel. she is out to brazil, and has been prioritizing this visit. hans: she is taking part of her cabinets, they want a piece of that 57 billion u.s. dollars that brazil is spending to upgrade infrastructure. the president of brazil is also unpopular. we just got the unemployment figures for brazil all the way up to 7.5% which is a five-year

high. their currency is at a 12 year -- byd has been hit by a the commodity story. aboute eu, brazil is eight on their list, around 2%, but still significant. euros --e 22 billion excuse me, $22 billion back and forth. and what more certainty, they want insurance their investments will be protected. angela merkel says there is still room to expand their trade but they need reliable sources for that expansion. -- volkmost like in swagen, the numbers are down, they went down 26% in the first part of this year. they still want to sell 30,000 audis, but that is a difficult

challenge. angela merkel still holds out the possibility for a free-trade agreement. away, thisong ways is about trying to get germany's businesses more exposure to south america. very popular politician meeting a very unpopular politician. angela merkel, at home, interesting reporting saying what she has been commenting on about greece. that tsiprassaid stepping down as part of the solution, not part of the crisis. said that when she arrived the expression when she has her the greek crisis painted 3.2 billion, you could see the relief on her face. merkel acting as a bit of an

ambassador for europe. also, what it means in terms of paying their debt. caroline: thank you very much. carried far whenit comes to global ramifications. hadday, and we already german consumer confidence up. a bit of a mess at 9.9%, however. we are here to talk about views of western european growth. give us a sense of what we are expecting. what is it? we set to get french manufacturing 10 minutes from now. >> still expecting to show contraction for manufacturing, less than expected, but contraction nonetheless.

then we see the differences between the french and german economies because they are expected to show greater growth. they are aligning somewhat. , that is thefrance same as the previous month and still indicates growth. it is better in germany what we are expecting. it could be slightly down from the previous month but overall for the euro zone things are services wise looking at it more expansionary in terms of manufacturing. caroline: gabriel, i know what you are excited about. they should be positive signs, the quantitive easing up has been thrown at europe. you have oil prices lower, but it is not a marked picked up in consumer confidence. gabriel: in fact, it has been weakening since february, just a little bit.

the quantitative easing and the improvement of euros on money and credit began in april of last year well before the ecb started quantitative easing. that comes in, but already has a tailwind. it is not causing any improvement. what we are seeing is -- first of all, the pmi will change, but they are marginal changes. i have a feeling that we are in theseeing a europe thingsof not believing will get better. i look at car sales, which are a good indication, they are picking up. for thee optimistic next month.

this is still really being in , and worries july about china and so on. things are getting ever so slightly better. i wish they would show up in the numbers as well. caroline: the interesting thing, why would august be any better when we see what is happening in the chinese market? gabriel: services are doing well, services are very much still a domestic market. not necessarily for britain will be export a lot of services. perhaps -- illy is am relying on manufacturing more likely. again, the foreign side is much smaller than the domestic side,

and the domestic side is picking up. with a get oil prices, we are skirting $40 a barrel. why isn't that translating into consumer confidence? gabriel: this massive rise comes partly i think, concerned is this going to last. those fronts we will see an improvement coming up as it is clear that in fact the numbers are lost. we do have the oil price going from the mid-50's to the mid-60's, then in about six weeks they had plummeted. it is easy to think this will last and get act up to 70, but if they remain in the 40's for some weeks, that should again boost activity.

and, of course, people are on holiday right now. caroline: give us a sense about what you think about greece at the moment. will the elections destabilize or stabilize things? -- ella tocannot see citrus can come out with a -- alexis tsipras can come out with a more united party behind him. away from majority, can see how he repeats that when part of his party will split away. says about resisting austerity, it is clear he had to give in at the end. if he wins the election, he comes out with a more united party. but who will govern with him?

if he finds a stable coalition partner, wherever that may be, this will be for the good. if he doesn't, expect more chaos in greece. , fore have seen in greece better or worse, when the europeans force them to, they give in. caroline: thank you very much we just got a very few minutes ahead of the equity market open. move" will be helmed by mark barton, what you seeing? mark: china has fallen to its lowest level since 2009. snap elections will take place in greece. some of the data is quite astonishing. stocks falling to the lowest since 2009 in the emerging markets, crude oil on track for eight weekly decline that hasn't

happened since 1986. money flooding into gold. we will discuss all of these. ahead of pmi data out of france, i'm jeb a senior european economist to tell us what a day and what a week. caroline: thank you very much. the worst week for global stocks in nine weeks. stocks are set to open lower. we look at a 1.8% decline for european stocks. rose,e stock on teh dax it is the perfect storm. ♪

mark: good morning, i mark barton. right here in london. moments away from the start of european trading -- let's get straight to your morning brief. worldwide selloffs -- global starks had for their worst week the s&p 500as suffers its biggest loss in 18 months. hong kong flirts with -- china,turing misses in seconds away from french mining numbers as well as germany in 13 minutes. the greek prime minister announces his resignation, calling for another election.

that's what we are watching today -- european markets are just opening, futures indicating another decline. the global stock market is on track for the biggest loss since 2015. over $2 trillion have been wiped off the value of global stocks in the last four days. here's caroline, good morning. caroline: good morning. $.5 trillion erased just yesterday on the s&p 500. the hemorrhaging was happening in the united states with another day of declines in europe. 1.5% lower if you are looking at france. one key fact was the dax. not one single stock rose -- everything closed in the red -- the perfect storm brewing here in europe, wins coming in from asia.