>> china stocks hover. wall street's losing streak. the s&p 500 closed down for the second losing run since july 2012. route is$5 trillion changing expectations for the interest rate hike. ♪ anna: welcome to "countdown," i'm anna edwards. asian markets are reacting to

china's late rate cut. the asian market had to wait to this morning to react to that. let's get to david inglis. the s&p 500 futures in indication of how the u.s. might go. how was about playing out in asia? david: similar. what we saw in asia was the futures down. as the morning progressed, things did get slightly better. let's talk about the shanghai composite first. it is having one of those violent sessions, it opened slightly higher, swung down 3.5%, went down to about 5%, now we are up 2% for the day. one cut, thank you, but

analyst pointing out for us that he is saying yes, rate cuts help.but trading will 29.93 is the, number for the shanghai composite. japan is the big player right now. this is what is really listing the asia-pacific benchmark at this point. have a look of the japanese currency weakening right now. money is getting out of risk back into the securities. 119.69 is the number right now. that being said, you put all of this together, it should be a much better day than yesterday, much better than that

chaotic monday, we all know about that. a rough week, the best day since december of last year. sinceould be the best day october of last year. reaction to the rate cuts from the pboc, it depends. we are up 2.7% right now. let me disclose that right now so we can get a better indication of our chinese markets. back to you. anna: david inglis over there in hong kong, wall street stocks rallied on tuesday session after that rate cut from china's central bank. but the rebound unraveled in the last hour of trading. big rally that faded

on wall street with investor anxiety continuing to hang over the stock market. it took off like a rocket shot, we had the dow up 400 point early in the session. many investors are beginning to fear further volatility. 3%,s&p 500 was up close to ontrack for one of its biggest gains of the year, but then back. china couldt bring in stimulus was short lived in its effect. many investors wanted to take money off the table. more than 2 trillion in u.s. stock value has been a race since tuesday. it went on a roller coaster --e, indicating volatility

fears over volatility had dissipated. but that is not the story as many investors are debating what happens interest rates, what happens to china. we do see they are pricing a 20% chance that the fed would still raise in september. it could still trigger a rate hike. >> that does include emerging-market currencies. you have seen a significant divergence between the two. as it relates to the dollar, as a mandate for the fed, the one that is continuing to accelerate is the one the fed keeps a closer eye on. >> futures were indicated in the bears were still running the show. the dow s&p, with showing the biggest decline.

that is leaving only one exception in late afternoon futures weree oil still rebounding from the sharp losses of monday and a six year low. they are continuing to be volatile. anna: what does this all mean for the prospects of a rate hike from the federal reserve? the volatility is worrisome according to the chief economic advisor. >> i don't think the fed would agree risk in hiking does it is a mistake. backuld -- could spill into the u.s. economy. anna: let's get the latest. year for thest central bank of china. take us through how you now view

what you saw yesterday from the pboc. it happened yesterday. >> good morning. i guess there was a feeling in china that they had to respond and do something to alter the circuit breaker. appeared to have done with his rate move last night. quite a big move on their part, also liberalizing interest rates past one year. they took a significant step, but whether or not it is enough to put a floor on chinese stocks and the regional markets, or whether it is enough to rev up china's economic growth has it to be seen. we know that the stock market ansh will have quite

effect on growth in the next quarter. it remains to be seen how affected this move by the pboc is. anna: against which of those metrics do we measure the success of this move? was it designed to stimulate the underlying economy, or something else? both is a safe answer. they intervened during june and july to sure up stock prices. now they are moving away from that strategy. is toos a view that it expensive, and is ultimately pointless. to rely on interest cuts and monetary policy. least,e, at the very they would like to see a bottom in the stock market. but it does not necessarily

infect the wider economy. so their ultimate aim with two inshore that the economy hits it's 10% growth target this year. to keep work-- and hit that target. latestnda there with the from china. coming up on "countdown," emerging markets got a jolt after china cuts rates and begins the most in two years. how long can it last? we put that question to our next guest, gary greenberg, he will join us later in the program. ♪

anna: welcome back, you are watching "countdown."

here are the stories you need to know this morning. shares in china swung between gains and losses today. they also gave the fifth rate cut since november and china. the shanghaing, composite now trading positively. it has lost half of its value since the middle of june. hailedenergy chiefs have the nuclear deals with the wrong -- iran. has allegations that it is working on nuclear weapons but refuses to be specific. alibaba's ceo is calling on staff to disregard falling stock prices. he wrote a memo to employees

telling them to think about investors.head of the chinese government has removed unprecedented support for equities, the focus instead on shoring up economic growth. can a hard-line be prevented? my next guest believes it is these policies that could lead t he world into a global recession again. mark joins us from tailand. let's get your reaction. what is your reaction to teh cin -- the chinese authorities dealing with the issue to date?

mark: the report that i find very funny, he writes "rescuing the rescue package." this is what it is. throwing more money at some of that is already gone wrong, and a system that is entering not a recession, then at least a very meaningful slowdown where trendline growth and said being between 8% and 12% will be somewhere in the neighborhood of 4%, my belief is that the present time is not growing at all if you look at car sales, or smart watch sales, and industrial production. so, we have a meaningful slowdown. in the meantime, the average of chinese stocks is still very high. industries have it lower

because of the banks. they had their own problems. my sense is that the chinese economy, which was the driver of global growth after 2000, they consume 5% of industrial command in the 1990's, 12% of global 2000,ities in the year now close to 50%. that has a huge impact on the world, especially the world producing resources. we know what happened to the economies of brazil, and other resource producers. >> anna: is 4% growth your estimate for china this year? is that what you think the growth number will land? if so, what does that do to commodity prices? marc: it depends which growth numbers you mean.

the ones published by the government will be 7.8% or something like that. none of the investment banks will challenge these numbers because they all do business in china. they do not want to have a bad standing with the chinese government. private economies, what is really happening on the ground, will know that growth is very slow. 4%, or are we in recession? that is very difficult to say in an economy of 1.3 billion people with so many different provinces. anna: does it make more sense for the central banks to be cutting interest rates than for authorities to be trying to prop up the stock market? bythe moves we are seeing the regulators going in the right direction? : it depends, there are some responsible central bankers in the world like those in india,

but they are reluctant to cut interest rates. they have currency stability in mind rather than propping up stock prices. i think that is more to the point to consider. had, and the u.s., six years of zero interest rates and what does the economy have to show for it? very little, considering all the stimulus packages, we have a very slow recovery where the high-end sector has done well and the man on the street has not. anna: i been like to talk about the fed if we could. what do you think the recent market volatility globally will do to the fed's position on interest rates? [laughter] anna: you are laughing now.

do you think that is really off the table? marc: my sense is the reason for the increased volatility is precisely the liquidity's that the fed and other central bankers have created. ofre is a huge pool liquidity in the world double move in and out of asset markets and create this volatility. something besides the central banks did not want to create. volatility will now continue for a very long time. assets, huge moves in tumbled, it isas collapsed by more than 50%. happen in stocks and bonds occasionally. it willm not sure how

all end, but my sense is that thefed loves the fact that chinese have begun to let the currency float down. the love the fact that chinese stock market has performed poorly. now they have an excuse not to raise interest rates. anna: thank you very much for joining us. tumbling commodity prices have led the largest mining companies to report losses. aboute is not worried china's growth slowing his business. rust t -- i think you can t their numbers. we don't believe that 7% will be there forever because they are transitioning.

steadily over the years that will tend to trend down. anna: interesting views this morning already on china. earnings out the day from the biggest advertising company, they have some concerns. tepid gdp growth, that means consolidation amongst clients, consolidation amongst media outlets -- either of the older legacy variety. doubt in six years time there will be more than four. it is a sign of the times. anna: caroline hyde is here for a full preview what we should expect from these numbers. caroline: hi, there. we will give you a snapshot of what those could look like. largesttworl'd's

advertising agencies. percent -- rise a 8%. it is not all doom and gloom when you look at their numbers. at everyone will look exposure to emerging markets. this makes up 30% of all of wpp's sales. they are highly exposed to these particular areas. this is something to be concerned about when looking at these areas. tjer -- there are potential opportunities that they are facing. $20 billion is up for grabs. we understand that add spending , all these companies have

put their media account on review. the billion that dollars are already wpp clients, they have to make sure they retain them. this is what is all consuming -- emerging markets. brazil,ales come from russia, and overall china. brazilian revenue has been with the weakest point is. in the third quarter, with some brazil down. there have been years of weakness in brazil. china, china is wpp's third largest market. they habve been building up their business there. let's have a look at what china means to the industry. it is now the world's second

10% of add market -- global advertising expenditure. sp --rgest revenuye revenue spender is wpp. thek of the others, wpp has biggest exposure to china. it is gone front and center into this area. he said it doesn't change my thinking about china, they say longer term investment will be permanently impaired. so, he doesn't think china will be an awful long-term bet. significantly damage right now which will slow down global growth. anna: caroline hyde there on wpp.

the european central bank is becoming more aggressive in buying back assets. the move comes after criticism of a previous ecb program to increase lending in the region. hans nichols has more. what form does this increased aggression take? hans: aggression, i like it. we are never aggressive this early in the morning. the ecb is now reaching out directly to investors. before they were just going to the banks. it really marks a shift, they are going to investor holding companies. some great reporting out of our frank for bureau. it is really an attempt to bring back lending. the you look at it, part of problem is there isn't that much of this debt available.

it makes sense for the ecb to fromoffers directly investors. this is way down from its peak in 2006. they are up to 55 billion euros right now, but for some perspective, in 2006 it was 255 billion euros. look at this program, how they are doing, it is a much smaller percentage of the covered bonds. coveredabout 10% of the bonds program. i will be kind and give you the opportunity to go to frankfurt. i was sure you were to keep

warm. anna: fun, fun, fun. coming up, china isn't only battling a slowdown in its stock market oil majors reporting today. ♪

anna: welcome back, you are watching "countdown." here are the top stories, shares in china are now trading up after a day of swings. thefifth rate cut from chinese central bank since november. the shanghai composite has lost half its value since the middle of june. japan has admitted it cannot guarantee the 2020 games will be ready by that year. the prime minister scrapped the

original plan after costs ballooned to two billion dollars. madisontery site ashley is taking backlash from angry plaintiffs taking action. the site, and it's parent company, are being sued for 37 million anonymous users after users had information stolen. let's get an update on what is happening in these markets. update, we have seen the china market positive, the negative again. volatile that is

certainly how i would describe the day in china. we see stocks overall rising, also looking at the shanghai composite index, i have it up here, a 22% drop in four days. that is the biggest four-day drop since 1996. we are seeing this little rebound today. could it be that that chinese medicine is working? the bankers are cutting interest rate for the fifth time since november, also got in the amount that banks have to hold in reserve. has been made a difference? the moment it looked like that it has, if for the get commodities, this is somewhere where we have seen a big impact form -- from what is happening in china. low, butr a 16 year is trading pretty flat right now. day.ising for teh second

timeell for the frist below that since 2009. this brings me to the malaysian ringgit. here, thise a look is the dollar rising against the ringgit. being an oil exporter, it has affected by the more than 50% drop in brent crude. the broader emerging-market drop off that piercing because of all that market volatility. what really triggered a further investmentwas an company report that it may pull out of a plan to help the sovereign wealth fund restructure. back to you. anna: thank you very much. now let's talk about china.

it isn't only battling an economic slowdown, it may impact oil majors. in bloomberg's managing editor for energy. good to see you, thank you very much for joing us -- joining us. good morning to both of you. will, let's go to you for specifics. what are we expecting to hear from these major oil companies? will: it will be a bit of a mixed bag. a disastersve quarter because of low oil prices. opec, you might see earnings rise between oil prices have been against this giant business. anna: is that effect in these chinese businesses the same way

it affects western businesses? it depends which stage of the oil lifecycle they operate. will: they remain state owned enterprises so they have different pressures on them. they might be more reluctant because they have to worry about unemployment. the chinese government is nervous about the state of the economy overall. anna: gary, we would get into a conversation with all that you learned about investing in china. you aren't against investing in some of these enterprises, are you? gary: oil companies in china have a lot of challenges. another service is one, one is that they aren't finding a lot of oil. they have to go overseas and buy other oil companies. we don't find it that

attractive. anna: well, what we learned -- will, what will we learn, will this tel lus anything -- tell us anything? will: we see all the gloom in the market. the demand has held up fairly well. some willd numbers, tell us a lot about what is changing, including demand from the industrial setting, like chemicals. anna: will, thank you very much for joining us this morning. themestick with the china and get into more detail/ you started the year with a 30% overweight on chinese

investment. you begin to reduce that before this summer. spring. the late anna: that must in like a good move now. how invested are you in staying in china? gary: there are some good companies in china. the macro is quite difficult. china is at a crossroads. we are all watching as they make important long-term decisions. anna: you made this point in your research, it is a really immature market. part of what we are seeing seems to be the chinese taking these debts to try to make themselves more market oriented. every time something like that happened in two ways on the currency. authoritiesinese have not been great about flagging what they are doing. they talk about a freely floating exchange rate then re

-peg it. they fix prices. it is not clear what they are doing, which is one of the reasons why the market is so skittish. be attracted to retail investors. investors invest in china for? the big sell off we are seeing now, what do they go for? it is capital gains, short-term type of investment. longer-term, investments generally go into real estate. what the real estate market -- but the real estate market took a hiatus. there was no point in putting it there. the stock market was in default. anna: how do you square the comments we hear from some

a veryators that this is retail investment market. then they say this isn't going to have much of an effect on the chinese consumer. gary: the proportion of the chinese population that invests in the market is very small. it is not like the west where we are all invested. anna: in your experience, they like the story stocks and aren't at interested in the state owned enterprises. do you still think there are some soe's that represent value? gary: yes, and some private ones as well. a lot of them are quite liquid, whether they are in air-conditioning, or surveillance cameras, or insurance, that may have state ownership but have motivated

incentivized management. they are doing pretty well. anna: stay with us. the u.s. now. what does this volatility mean for the u.s. rate hike? robert spoke to us. beent: i have not predicting a recession in 2016. it wouldn't be a surprise if there was one, but i don't know if it will be connected to the housing sector this time. housing prices have been going up. if there is in other recession it'll probably come from consumer confidence. tell us,hat data things like human behavor, -- behavior, the behavior of

investors. the fed is faced with a decision whether to raise interest rate or not. do you see enough evidence to justify a rate increase next month? robert: in the market, it will be on their mind when they make the decision. yesterday, iike think they would postpone it, and i would do the same. it is looking better now just this morning. it is very hard to predict what they will do in a couple weeks time. >> why should that be important to the fed? what does that tell policymakers about the state of mind of the investor and the economic actor? robert: i have been worried about the state of mind with the things we have seen. these have been connected in the past two major recessions. the fed has to take account of

this psychological principle. we could see more aftershocks from what we have just seen over the past 10 days. confidence, they can get people into a panic mode. at that point, it would be emergency time if that happened. the fed would have to take action and keep rates as low as possible. professor is right, and the fed is paying attention, they would never going to rate interest rates. any time you're on the verge, the market will act in a way that will never raise rates. that is crazy. you really believe, professor, that janet yellen is watching the stock market tick by tic to make a determination. robert: i am not an expert on janet yellen's inner thinking,

but i can't imagine any fed chairman would not be concerned by the action we saw in the stock market in recent days. experience.nching it is the kind of thing that even if it is not on their agenda, a realistic person would take note of that. this was quite an event that we saw over the recent days. a heated exchange there. still to come on "countdown," a swiss surprise. ♪

anna: welcome back you are watching "countdown." are trading up after a day of swings. cut from theh rate

chinese government since november. composite has lost half its value since the middle of june. it is the biggest equity plunge in nearly 20 years. the iaea says that tehran has address allegations that it is working on nuclear weapons. alibaba's ceo is calling on staff to ignore falling stock prices. he has written a memo to the employees telling them to think about customers ahead of investors. november --% in in new york yesterday. stories,one of our top

traders now see the fed pushing out the date for a fed rate hike. -- thehe probability probability for a september move has lowered. >> they have been saying for months we will see a rise this year. it is been neither september, or december. but some are saying that the likelihood of october is now a possibility. this has not been part of the conversation until now. they don't have a press conference of any kind, but there was no reason it could not happen. we look at the stats, now there probability of a rate hike in september. almost a 34% probability of one in october. that rises to 48% for december.

that is what it is showing for this year. china, when 11 in china devalue the yuan, we have seen the probability of a rate hike at all declining. at what has risen up a is a probability of a rate hike in march. anna: thank you very much. let's get another look at that story with gary greenberg. gary, you are focused on china and emerging markets. clearly the head does has an impact. what are you expecting to feedback from that market? we watched a very heated exchange earlier about whether markets movement should impact

with the fed is thinking. gary: if this were the people's bank of china people would said they shouldn't focus on the market in terms of what they do with their interest rate. it is disappointing commentary that we think the fed has to make sure the market continues to go up. their main priority has to be developing the cushion to be able to cut rates in the future if the economy needs it. i think they would be looking to raise rates sometime this year. anna: to those that argue that the fed could increase interest rates -- or rather that they should not, would perhaps suggest there could be some effects associated with the falling stock prices. it isn't about reporting stock markets but is dealing with wealth affects. do you think that is with the feedback comes in?

gary: it is possible. i also think unemployment rates have come down. it is enough momentum hopefully to people to handle 25, 50, even 100 basis points higher. anna: is there enough momentum in the u.s. economy to handle a much weaker chinese growth story? stowe stephan -- so. the u.s. economy is primarily a continental economy still. i think that would not hurt the u.s. economy very much at all. anna: what is your outlook than? gary: i think are really two economies in china, there is the industrial, and a service and retail economy which is doing pretty well. between the two, it is a question of how big the service and consumer economies get and

whether it can pull the industrial economy along. earlier and is not on his own being skeptical about the reported numbers. he said he thinks growth in china will be 4% this year, but they will manage something around 7.5%. long,tch to china for so and studied in such detail, do you believe the numbers? gary: i have been watching it almost as long as marc, not quite as long. i don't think anyone really believes the numbers, but you form your own view. you know, we need to take a step back, how bad is 4% growth? anna: compared to the history of china it is bad, but not

compared to the rest of the world. what about the market turmoil? we saw a strategy early on in this crisis where they were intervening to support equity markets. now we see a different strategy. it is slightly different, how have your investments been infected -- affected? gary: we have certainly taken hits, but our view has been a we theyd up they are -- should allow the markets to find their own level. cutting interest rates to stimulate the economy it's an appropriate thing. anna: did you find your things in holdings you could not sell? gary: we did not. we did not want to sell them, either. we wanted to add with them. anna: let's broaden our conversation a little bit. we like to talk about what is going on on bloomberg.com.

gdp coming later this week. it will show that the consumer price for the currency policy. the first recession in six years in switzerland. anna: they have been suffering from a stronger currency? tim: yes. everyone is shopping in france. what else have we got? we have a story about german electricity prices. tim: this is a really interesting story. the perpetual decline of general , when youy prices

think about that germany decided to close the nuclear power stations. there was a lot of thinking that the energy economy would collapse, and that did not happen. one reason is the big boom in solar and wind, also you can't ignore the decline in fossil fuel costs. that has been a huge driver. really, can we live with that nuclear energy? germany seems to be saying yes. more broadly, let's talk about the currency markets and the crisis in iraq with the fight against the islamic state. tim: another interesting story pointing out that we do talk about the currency peg, because that is what this story is about. how long can iraq maintain a currency peg. the consensus seems to be maybe

not that long. $4.6r, they have spent billion defending that currency. how long can that currency last in the current environment? we talk to someone at the central bank that said the peg is firm and we will hold it. anna: gary, do you think these pegs need to go? gary: the one everyone is talking but right now is real. if the oil price stays down, i think it will go. anna: the question is how long we will stay as low as we are going. tim: if you look at where the forwards are trending -- anna: the market is testing that commitment. thank you very much. on "countdown," we get

earnings in the cupboard -- the world's biggest advertiser. there is a little bit of a china connection. ♪

anna: shanghai swings. china between gains and losses. the rate cut by the country's central bank. the six cents november. wall street leading street. closed down. the longest losing run since july 2012. rates radar. heidi five train dollar market just how the five chilean dollar since 2006. welcome "countdown." to the program. you're watching "countdown." welcome to the program.

you are watching "countdown." we are waiting for numbers to come through from that epp -- from wpp. it is a business that has exposure to emerging markets. let's talk about the asian story while we wait for those numbers. asian markets are getting their chance to react to prop up the economy. -- david, good morning. we said in our headlines we are swinging between gains and losses. we have been doing that all morning. i can see over your shoulder, the shanghai composite is up in positive territory. david: for now. swinging between gains and losses for months now. i think today is a little bit more unique in a sense that volumes are still very thin.

64%.nk we are at that not everyone is convinced that now is the time to get in. where up 2%. we have an hour left. i will get you more on china. japan is closing up shop right now. where up 3.3%. easily the best day. not enough to erase yesterday's losses. we will take it. 3.2%. some of these valuations they get very effective following two sharp days of losses. japan really lifting everything on its shoulders. check for the asia-pacific benchmark. eight shares not included in that. we take it out of the equation.

staying on china, we have been talking about the pboc movement. we are seeing that play out in two ways. first, when it comes to the currency. the big story when markets opened up in china, was the pboc actually said the rate .2% weaker. that was enough to nudge at the exchange rate to the lowest level in four years. from then, we have weakened a little bit more. that's how it is done throughout our session. .01%. i will show you over two days. fairly weak chinese currency, plus, let me mention, money market rates sharply down in china. putting some of the liquidity back in the system.

anna: david, thank you very much. joining us from hong kong. that is the story out for asia. let's talk about breaking news. agency advertising reporting numbers. caroline is here with all of the details. caroline: a mixed bag. they declined 6.8%. for in 8% was looking growth. it evidence coming in higher than expected. shareholdero the 15.9 pence. july, they are seeing growth. nursing a bit of a pickup in sales. 3.7% on a net basis. up 5%. otherwise, that shows potential for the third quarter could be accelerating. synonymy of media -- they are a tsunami of media reviews.

review andoking to go out tender. so far they say that is going pretty well. sales of slightly missing. profit is up 7.6%. north america is outperforming. we knew that north america would help the factor. the dollar is strengthening. when you bring that home, converts into british pound, you can see that is more bang for your buck. at about 4% sales and growth -- 4% growth in sales. they wanted that to be a bigger percentage. the greek story is one they have been talking about. increasing the amount of revenue in the economy. u.s. was 70%. the them -- these emerging markets, 3.7%. we know that russia has been the

pull down. brazil has been less. it has been declining in the first quarter. -- howrly brazil spared poorly brazil fared. a quarter of the seed in the united states, you might want to know if this is long-term. saying hashas been been a falling year for advertising. caroline, thank you very much. let's get to nejra cehic. that thereust heard is going to be a merger. they have agreed to merge. this is going to create one of the world's biggest public online betting and gaming companies i revenue. the statement says, it will have a large-scale capability and

complementary rants. owners -- theare paddy power share owners would own -- they would receive a special dividend of 80 million euros. in terms of leadership, paddy power chairman will become chairman of the board of the combined group with the ceo becoming ceo of the combined group. this is going to create a company with revenue of over 1.1 billion pounds. to you, anna. anna: breaking news. thank you. that's get more news on the pboc action. the six rate cut since november of last year. the asian markets continue with that theme today.

allen west has the details. how expected was this move? there was speculation that the central bank might have to do something to access some firewall or circuit breaker to stop the freefall. it didn't happen on monday. allen: you are right. the interest rate cut was unexpected. reserve cut was expected. over the weekend, we expected the central bank to cut by half point. when it didn't happen, the shanghai composite -- the reason why the interest rate was unexpected was because concerns about inflation. we saw a rise in august prices. concern that they have a bigger problem. last night on the pboc statement

-- last night in the pboc statement, they said the prices were not a concern. the economy and they could drop and produces -- producers was a big concern at this point. anna: what are investors telling you that they want to see right now? today want to see more rate cutting the central bank? len: besides more aggressive monetary easing, the traders in the stamp tax. we haven't had one in seven years. the last one we had was 2008. we had a powerful reaction in the stock market. also a lot of investors are looking at the currency. there was concern with cutting inches rates we might see the yen continue to weekend that's -- continueweaken to weaken.

stabilizeng the yen which is very important for the stock market. wan, thank you. where joined by -- we are joined by gary greenberg. jerry, i know we talked about your investment -- gary, i know we talked about your investment in china. there are some companies you still think represent some value. what other sectors are you interested in? which of the individual companies that take your eye? gary: we want to be a part of the china that is growing. the retail and consumer areas are growing. service areas are growing. china still has a lot of need there. one thing he needs is more and commerce. so alibaba and more interestingly, logistic centers

across the country like shenzhen international is a company that is building those. chinese are still having salary increases of 5% to 10% a year. that enables them to buy chinese -- moremore consumer discretionary income. i don't like the liquor. [laughter] it's not a requirement, it is the evaluation that is very good. mention some new media companies out of china. you get interest in much more established industries, rail companies. gary: it is a simple company. the story there is that railroads -- rail rates have been too low.

is an industryay in that. anna: do we read anything in the way the chinese government has handled the last few months and what they have been doing with the equity markets? to be read into anything there, their reform? do to the these moves tell you they are more committed than we thought? or less echo or nothing? we are getting mixed signals. they do seem to be quick learners. they decided to stop intervening which is a good sign. i think the market would like clear policy directives coming out. they had a conclave in the seaside resort. what has come out of there is not clear. we will like to see a renewed commitment to the reforms, even

if it means a slower economy. we have not heard in thing much. anna: gary, thank you very much. he stays with us on the program. coming up comic ecb says it is gotten more aggressive. we would to you which tools mario draghi is making use of. ♪

anna: welcome back. you're watching "countdown." here are the stories we need to know. shares in china are trading up ,'s switching between gains and losses. in the last few minutes, trending down again. traders have been waiting -- have been weighing interest rates. they shanghai composite has lost half its value since the middle of june after a four-day equity plunge.

within the last few minutes, paddy power have at -- have announced an agreement of a possible merger. it would bring together one of the u.k. and ireland's leading leadingf the internet's gaming exchange. the nuclear deal with iran, saying it is a historic opportunity to resolve issues. the iaea says to run has just says tehran has -- supporters of the deal has seen growth of acceptance. japan cannot guarantee -- japan -- as demanded by the international olympic committee. after inception costs ballooned to $2 billion.

world's biggest advertiser just reported a dividend at beat estimates -- that beat estimates. any fallout from the chinese. the story we have been reporting all this week. our guess say despite the slowdown, china is still an attractive market. alex, good to see you. things are coming in. the dividend, was that the biggest surprise. alex: the dividend is much better. that shows the company's response to what shareholders want. at first glance, the profit numbers were light. the dividend would be the main headline. anna: that is the main headline. what about the stories of emerging markets? business has been increasing in developing revenues, specially -- especially different companies. how is that rubbing up against the weakness we are seeing in

the chinese economy? they want to target more exposure to the print market, primarily china. that is where they see the best growth which traditionally should link with gdp. anna: we have been talking all morning about your views on the chinese market. remind us of your forecast their for chinese growth. gary: the number will be 7%. the reality is things are growing slowly. i think it will be a couple of years before a company like wpp has -- to invest. it will be years before we get that moment -- that momentum going. i think they are right, the potential is enormous. the consumer really has a long way to go. anna: the vpp sees this as a

structural shift toward emerging markets. alex: advertising is immature as a medium. we know too much about advertising markets. that is not the case in some of these emerging markets. the potential to grow their is impressive. say to the 15 is a boring year for 2015 -- you say that 2015 is a boring year for advertising. how strong is the link between those major global events and the advertising market? alex: this year, no olympics no world cup. massively inflates because the tv ads which can lead to big

numbers. next you can be good, lester was good. at london a few years ago was great. another talking point around the bp is the role played by -- talking point around wpp is the role played by martin sorrell. what do we know about succession planning. i think it is happening behind the scenes. i think it will be impossible -- it would be very hard to propagate. i suspect down the road you could be looking at three guys trying to step into his shoes. let's not make any mistake. i don't think any slowing up on his part. i see that as being a tribe for share prices. " this is a business that has been built by organic growth. are there any more deals left to media isalex: online

the area they will be looking to plug the gaps. it looks like it is consolidated most of the big agencies. it is about three big advertising groups. they have done much of the consolidation. what might happen is to look to expand online which is sectorial sectorially. anna: what is your pick among the u.k.? because weked itb see broadcast as a road must -- vpp robust -- we like the -- i like wpp. much.thanks very glad to have you this morning.

let's move on. the european central bank is becoming more aggressive. the move comes after criticism of a previous ecb program to boost that region. let's go to hans nichols. we discussed what spawned this aggressive -- spawned this aggression. it means they're getting more proactive. who they are buying -- before they were buying from banks, now they are buying from investor polls. they are expanding where they can purchase this debt. this is according to people familiar with the matter. this started back in june when they started looking and soliciting to buy more. the challenge with abs is there isn't much out there.

they've needed to revive commercial lending. they wanted more money and liquidity into the system. they are challenged with finding enough sellers. the you canse for be agents to seek offers directly from investors. that is from a money manager at 24 asset management. to revive the market, they wanted to bring it back to the 2005 levels. 2006, there were 255 billion euros a year. -- lastught that up year was about 47 billion. this year it is at 55 billion. when we are talking about is a fraction the size of what the ecb is trying to do. this is a small drop in the bucket when you compare to quantitative easing. when you compare it to what they have done with covered bonds.

10% of the covered bonds program. less than 3% of the total bond line program. in so many ways, we've been talking about the u.s. federal reserve, what they are going to do. when you look at the inflation numbers around the lack of inflation in the european union, you see that the ecb has a challenge. it was january when they announce quantitative easing. they still have a problem with inflation. have a problem with growth as we saw with the gdp figures. they're trying to tweak this program. we will see how far they get. we will wait for more reaction from the ecb. the story broke last night. anna? anna: hans nichols in berlin. let's get more from gary greenberg. is tryingout the ecb to find inflation, just like many banks. china continues to support

deflation. gary: they are going to continue to do that. india has got some inflation. they don't have that problem. they like to have a little less. they will like to be of the cut rates more. india is not having a growth problem at all. the economy is beginning to turn. the turn.like gary: this seems to be vested interest. even though the country that's billy needs it, he is going around those vested interest in india and going to the state level to have them change their loss to be able to attract more direct investment. " gary, thank you very much for joining us. gary greenberg, head of emerging markets at hermes investment management. herell take a short break on a volatile day, as trading

over in asia. we will be live in hong kong. the shanghai composite has been up and down. we will get back to you after a short break with the latest. what it means. stay with us. ♪

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call 800-501-6000 to switch today. perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. anna: welcome back. here are the stories need to know. we have less than an hour until the end of the session. shares in china are trading in positive territory is. traders have been weighing yesterday's 25 -- the fifth since november. the shanghai composite has lost half its value since the middle of june. fair haver and that announced an agreement in principle on terms on a possible merger. theill bring together world's largest betting exchange. --reholders will spend

shareholders will receive a special dividend of 87 billion euros. movietman versus superman -- china is the world's fastest-growing movie market. that's compared to a 5% contraction in north america. getting theirare first chance to react to china's latest moves to prop up the economy. let's get to the market action. david ilis is staring their -- is standing there. the minute you say -- what is happening this minute? david: exactly. i was trying to tweak something and i had to dessau strang to tweet something -- i was trying to tweet something.

that is how the trading day shaped up. to make a long story short, fairly violent. times, the index changed directions. it is not just small changes. this is the big swing that took a backup in positive territory. that was about an 8% swing. we are just above water. the message i'm try to get across is there is no consistent scene that we are seeing here. volumes are very light. 53% of the average. , some ofl investors the institutional funds, i'm not dipping their feet in the water. let me get you a year to date target. one commentary from a very well

respected legal analyst. he put out a note this morning -- 40 year veteran of the market. he says take note of where the index is that. we have to close. the shanghai composite has to close above 3200. that is a percent up from where we are now. -- that is 8% up from where we are now. if we do close above it, that may be the start that the route hasended -- that the rout ended. but the most convincing argument at this point. -- japan has this been closed for 30 minutes. at this point, where up 1.9%. the best day here for asia. going all the way back to

october or december of last year. it was a very good day. japan rally toward the close. rest of the region, taking its cue from japan. getting into more risky equities. australia, very commodity exposed index. where up .7%. -- we are up .7%. a much better day than what we saw at the start. anna, back to you. anna: the japanese market moving with the currency. david, thank you. let's look at the european equity markets are set to open.

nerja, are we going to be picking up our clues? when they saw the u.s. stock markets have their best day since 2011 -- i was asking myself is this rally going to last deck of women looking to futures markets today, it looks like possibly not. your stocks 60 futures down 1%. we're looking at dax futures and ftse 100 futures trading lower, indicating the equity markets it might open lower in about 25 minutes time. it is interesting, given that we have seen asian markets trade higher this morng. as you say, u.s. stock futures pointing lower. to --p 500 fall yesterday even with the measures that china has taken, cutting interest rates, there are still these underlying concerns and perhaps that is what we are

seeing reflected today. the few stocks you want to keep an eye on at the open, that epp -- wpp. beating estimates. the headline that everyone has been highlighting is that interest dividend meeting expectations. they concerned that the bpp could be facing in china. that seems to be driving their earnings. the u.s. is its biggest market. .eep an eye on paddy power where verdict breaking news that they have agreed to merge in principle. discussions on the point of that merger. is a wave of consolidation in the gambling industry. back to you. anna: the rout and the emerging the mexican

billionaires saw more than half his wealth yesterday. devon pendleton joins us with more. good to see you as always. our hearts should bleed for who exactly among the cohort of billionaires? devon: they're gone from extra money rich to reach. everybody suffered some losses. we've seen it worse and emerging markets. two things going on, you saw the rout and markets. you're seeing currency hits. the good example being mexico. he had a lot of problems at his media company. digitalpetition from did the mexican peso fell to a record low last month. it pushed it further. he lost about half his wealth. anna: is it related to market moves we have seen? devon: that is twisting the knife. there is the currencies. and

also commodities. commodities have had an effect as well. example is in nigeria the he is africa's- richest person and he has lost 20% of his wealth. of nigeria's wealth comes from energy. europe, the richest man in the ukraine has lost about half of his fortune. there is a war going on right there. that is already stressful enough. anna: devon, thank you very much. joining us from the bloomberg boehner's team. it is 7:38 here in london.

jean, let's get your take on china. it seems to be occupying investors thoughts. how worried are you about the underlying growth story? >> i think the volatility has been much more related to the liquidity that has been injected by central banks, rather than by the chinese. when you look at china, you've got a gloomy picture coming out that the manufacturers -- you .ook at the tmi when you look at the service sector, it is doing just fine. [indiscernible] the service sector is doing just fine. anna: just as we were hearing , how do youeenberg go about investing right now? do you see this as a buying opportunity for chinese stocks?

jean: investors are torn between liquidity and the prospect of the global economy growth which is extremely modest. china is going to make momentum slowed down. market iszing of the creating risk. i think if you want to have an interest in china, you have to be selective. you can also be a bit implementing some arbitrage technique. anna: what about the repercussions that china is having or should have on the rest of the global markets? do you think that the expense that we have seen global markets caught up in this market makes sense? jean: i think global markets

issue -- china is still exporting more to the rest of the world then importing. when we say that china is negatively impacting worldwide growth, it is more subtle. you are right, from a market a lot more there are stress on wall street and main street. it is justified, because we are erring -- massive liquidity that has been injected. and that you think the recent volatility play into the feds thinking? should that be something that should be at the forefront of investors minds? bets on the september, october, december rate hike are increasing just a little bit. an: the ability of the

rate hike was about 50%. now it is about 20%. absolutely expecting the fed to postpone the rate hike. the biggest picture is whether or not central banks can't escape from qe liquidity. has negative consequences in terms of creating asset or misallocation of capital which is much more useful than definitely we-- need to escape from qe. in the current complex, where you don't want to have some are in aeffects, -- we pretty treacherous environment for investors. anna: he stays with us for a little bit longer. it is 7:42.

just 80 minutes of the start -- from the start of equity trading. are expressing concerns. what is the world's largest advertising company nervous about? that will story coming up after the break. ♪

anna: welcome back. you are watching "countdown." here are the stories you need to know. as we approach the end of the session in shanghai, chinese shares are trading marginally higher after a day of large swings between gains and losses. traders have been weighing talking about interest rates. the six cents november. the shanghai composite has lost half its value -- the sixth .ense november the shanghai composite has lost half its value since june. tehran has addressed allegations that it has been working on

weapons has declined specifics. alibaba ceo reporting the company's plunging stock price. he has written a memo to its employees to think about comments ahead of investors. advertisinglargest company, wpp reported an increase in dividends this morning. here with more is caroline. caroline: we're looking for a decent performance as the shares open. not expecting too many great moves. solid earning statements, sales and profits were climbing. the dividend actually beat

analyst expectations. they drove that up 37%. the regional performance of this business. --keting and advertising rubicon -- advertising is a half a chilean dollar market. north america very strong. 17% growth in sales. in tworices paying china, russia came under pressure, in particular, they are focusing on this area. the slight cost of a tsunami could result -- the regional disparities are where our eyes are going to be trained. 30% of their sales, asia, latin america, middle east, and

britain, india, china. this is where the pain is, southeast asia. the slowdown in china. it made a statement saying the china, the uncertainty causes -- currency wars do not help the black or grace wants. important. it is it is more exposed. let's dig into china a little bit more. concerns there. overall, china is the world's second-largest advertising market. the dpp has the biggest exposure. -- wpp has the biggest exposure. nevertheless, they remain

unabashed bowls of china. they talk about their geographical superiority in their position. concerned for the current time, but long-term all bets on china. interested in seeing what executives are saying about china right now. statementssome mixed coming from the mining ceos. two other stocks to watch, paddy power -- those companies are due to merge. these two businesses are not very dissimilar. >> it is interesting. deeply as we have heard talk that we could see a slowdown in mergers and acquisitions given these concerns over china with stock valuations plunging. paddy power and bet fair merged.

this is a wave of consolidation in the gaming industry. in 2013, we saw gdc well -- gdc team up with william hill. is the newest merger that we have heard of today. what we know so far is that paddy power shareholders immediately upon completion a dividend of 80 million euros. -- bet fairners owners would receive 81%. paddy power basically the shareholders have this put up or shut up deadline. they have until december 23rd two say they do not want this to go ahead. september 23until

two say they do not want this to go ahead. anna: just a few minutes until and european equity training this morning. let's get some views on some of those ominous stories. wpp, caroline talking about some of the stories there. wants to company that derive its revenue from the brick companies -- from the bric companies. this is a business that is driven by technology. as soon as appetizers -- in terms of prospects. they can cover advertising spending. is ar as china, yes it permitting market.

in particular with regards to the development of the consumers which is going much faster than the investment picture in china. the big question mark is much more the structural shift of the business of a big data to some new players, rather [indiscernible] anna: emerges in the gaming industry. this brings together two businesses that are active in online gaming. paddy power is on the high street. increasingly active online. try to make the most of that area of growth. does m&a make sense? exampleline is a clear -- size is critical. it makes a lot of sense in particular in this online gaming business when you still have a

lot of players, no clear winner. some question mark about where the money is going. rich in size is the right thing to do. probably it is a good time to do such kind of operation. , thank youmedecin for joining us. on the move will be here at 8:00. jon ferro is here to tell us what we will be watching. checking wheree the shanghai composite is checking. we were high, were low. lastre down by 1.6% the time i checked. another volatile session over in china. the six interest rate cut since november. close.ed going into the an epic closing hour.

some volatile stocks we need to discuss. we will do that. we would talk about that rate cut yesterday. don't miss that. it is not up about the stock market. and everything to do with the currency. anna: we are down a bit over in china. that is moment by moment action. thank you. we will be back in a couple of minutes with on the move. we will look at the futures as we head into the beginning of the european equity trade. we are set to open weaker. i will leave you with jon ferro and the on move team -- and the on the move team. ♪

jonathan: good morning, i'm jonathan ferro. right here in london. moments away from the start of european trading -- let's get your morning brief. whippingswings -- between gains and losses even after the pboc cut rates for the fifth time since november. a nightmare on wall street -- of 400 point rally collapsed in the close. the s&p 500 is now just 1% away from th erasing all the gain since 2013. a wave of consolidation in the gambling industry continues. open, futures crashing.

futures down by 96 points, daxx futures over 200 points down. let's get that market open with caroline hyde. caroline: let's look in on what will be a volatile trading session, because we can't work out whether we are looking for risk or for the heathens. -- the havens. we are waiting for the market to open, and just opening on the dow, off by a quarter of a percent. downs some very ups and over in asia, no one really understanding which way to trade at the moment, as it seems that china does manage to unleash the amount of steadiness people wanted to see. they cut rates for the banks, cut rates in general, hoping people would are lend lend. it doesn't seem to resuscitate these markets. risk aversion is playing out on the equiar