hit. he remembers waking up to what looks like a disaster movie. he and his family waded across the city towing his younger brother in a trash can to keep them afloat. they were evacuated to texas. six months later, they returned, and the city was almost unrecognizable. his peers struggling to cope. so he joined the organization called rethink to help young people to get more involved in rebuilding new orleans. a recently he finishedn a coding boot camp at operation spark. today he is studying to earn a high tech job. wants to introduce more young people to science and technology and civics. so they have the tools to change the world. these youngor and men i just met with, they have overcome it stored mary od -- extraordinary odds. they have lived through more

than most of us will ever have to endure. they have made -- [applause] they have made some mistakes along the way. but for all theyv've been through, they have been just as determined to improve their own lives, to take responsibility for themselves but also to try to see if they can help others along the way. i talk to young men like that, that gives me hope. it's still hard. et downthem they can't g on themselves. tough stuff will happen along the way. but if they've come this far, they can keep on going. -- americans like you the people of new orleans, young men like this, you're what

recovery has been all about. you're why i'm confident that we can recover from crisis and start moving forward. this countrylped recover and help it move ford. you are the reason that 13 million jobs have been created and you are the reason that the unemployment rate fell from 10% to 5.3%. you are the reason the uninsured rate is at an all time low. and the deficit has been cut are2/3 and two wars over. and nearly 180,000 american troops serving in iraq and afghanistan have gone down to 15,000, and a clean energy revolution is hoping to save this planet. -- helping to save this planet. you are the reason why justice is expanded, and now we are

focused on making sure that everybody is treated fairly, and why have people have the freedom love fromhoever they sea to shining sea. [applause] we're moving into the next presidential cycle, the next political season. and you will hear a lot of people telling you everything that is wrong with america. and that's ok. that is a proper part of our democracy. one of the things about america is we are never satisfied. we keep pushing forward. we keep asking questions. we keep challenging our government. we keep challenging our leaders. we keep looking for the next set of challenges. we find what is wrong because we have confidence we can fix it. but it's important that we remember what's right and what's good and hopeful about this country. it's worth remembering that for

all the tragedy, all the images of katrina in those first few days and months, look at what is happened here. it's worth remember the thousands -- remembering the thousands of americans like michelle and victor and willie may and the folks who rallied around her. the americans all across this country, who when they saw neighbors or friends or strangers in need, came to help. and people who today still spend their time everyday helping others, rolling up their sleeves, doing the hard work of changing this country without the need for credit or the need for glory. don't get their name in the papers. don't see their day in the sun. do it because it is right. these americans live the basic

values that define this country. the value that we have been reminded of in these past 10 years as we've come back from a crisis that change the city and an economic crisis that sprea throughout the nationd. the basic notion that i am my brother's keeper and my sister's keeper. we look out for each other. and that we are all in this together. that's the story of new orleans, but that is also the story of america. a city that for almost 300 years has been a gateway to america's soul. jazz makesere the you cry, the funerals make you dance, and the bayou makes you believe all kinds of things. a place that has always brought together people of all races and religions in languages. and everybody has the -- adds the culture and the flavor into the city's gumbo. you reminder nation that for

all our differences, we're all in the same boat. we all share a similar destiny. if we stay focused on that, purpose, if we remember our responsibility to ourselves, but also our responsibilities and obligations to one another, we will not just rebuild the city. we will rebuild this country. we will make sure not just these young men that every child in america has a structure and support and love and the kind of nurturing they need to succeed. we'll leave behind a city and a nation that's worthy of generations to come. that is what you have gotten started. now we have got to finish the job. thank you. god bless you. god bless america. [applause] john: that was president barack

of newn the ninth ward orleans commemorating the 10th anniversary of hurricane katrina, talking about the devastation 10 years ago. the progress that has been made since then, and the work still left to do. mark, what did you think about that speech? mark: he wanted to use this moment not just to address the city which is a big responsibility for this president and for the next president and beyond, but also to talk about national issues and to use the progress that has been made -- economic recovery, education, business recovery -- to speak to the broader aspirations of the country. at the top, he referred to the growth figures and gdp figures. this morning. day, is on a busy news busy newsweek, huge thing with political implications and economic applications. promise,he country's including new orleans problems, salt more easily with that kind of growth. john: and reaching for a familiar barack obama theme talking about resilience and

community -- hope. thank you very much for watching our special coverage of newident obama's speech in orleans. we return you to our regular schedule program. until tomorrow, for mark and i, sayonara. ♪ -- rimng rap liquidity and the out of the system. but guess what? in order to sell dollars against the renminbi, they have to liquidate u.s. assets. so this is the reason why think u.s. treasuries didn't do all the stockwhile market was going down. this is where it gets interesting. think about it, if you are basically a risk parity guy.

guy?at is a risk parity >> these are investors that basically invest on the basis of risk parity. say, we are not going to come look at this, they hold a lot of bonds and a lot of stocks. they're banking on the negative correlation between these two to work during periods of stress. they run a low volatility portfolio. the reason why they cannot be very leveraged. whene last two weeks treasuries to not perform as they should, they saw the big would force them to liquidate a risk across the board. all of the equity selling that we saw -- is from that point of view. you go from a straight line to china to risk parity guys doing poorly. >> amazing. we have breaking news concerning gold.

carl icahn is taking a stake. what an incredible day for this company and for the stock. he is reporting a stake of almost 8.5%. to be exact. it looks like he is seeking talks on the company's compensation. he says he may seek board representation. icahn says he is going to discuss curtailment of the company's high cost production operations. he may discuss the size and composition of the board of the company. as of august 26, he had not yet had any talks with that company. so again, why is this so incredible? the stock had its best one-day performance ever. that is something to consider. i'm looking at the other holders in this company. this will make him the second-largest holder after blackrock. i am not sure we have any charts of freeport.

-- freeport mcmoran. let me pull up on my terminal what the stock did today. take a look at my bloomberg. the stock was up 29%, record one-day gain. mcmorean copper and gold. it was cutting his productions cost. over the past year, the stock is down 72%, far outpacing the declines we have seen in copper and gold. >> carl icahn also took a state in an lng export terminal as well. clearly trying to get some -- >> commodities. >> when we come back, when market saw the biggest output since the week of september of 2008 when lehman brothers filed for bankruptcy. unbelievable stat. ♪

before the break, we asked what market saw the biggest outflows since lehman markets file for bank of see. joe: the answer is emerging markets. they sell outflows of 2.7 billion on monday, the same magnitude as on september 17, 2008. what a week. that is the crazy thing about this week. we've seen this huge selloff, and that is not even really the big news. alix: unbelievable. joe: we are back with david woo at bank of america merrill lynch. we have been talking about the linkage between what china is doing, the global market tomorrow. deutsche bank was out with a note. they used the term quantitative tightening. their argument was china has built up these reserves in the same amount the fed has. now china is selling them and that is what is causing the turmoil. a little different than what you are describing. what do you think about this thesis? thed: i think we are saying

same thing which is this whole notion of the impossible trinity. the notion that no country can have a 50 change rate, enjoy -- andfixed exchange rate, countries cannot have their cake and eat it, too. to low that if it wants interest rates which is something china needs to do, is desperate to do, they need to let the currency go. they cannot try to maintain stability of the currency and try to lower interest rates. this is why i think we are going to be soon reaching that point. i think beijing will have to let the currency go. alix: what does that look like? david: when they cut interest rates by 100 basis points -- we don't care what is going to happen to the currency. i think, again, china day when it did two weeks ago by letting the currency go to pave the ground for a chinese style q.e. they need to go down this path if they want to put a flow underneath the stock market.

the only way to do that -- they have to let the currency go. it is not easy. joe: they let the currency go. what are the aftershocks of that for the global economy? shock.a big we are talking about the celebration of the end of the second world war. and -- the chinese prime minister comes to -- the chinese president comes to washington to meet with obama. if the renminbi were to go down another 5%, you have to assume that people are going to literally start to think about competitive devaluation across asia. you will see basically monetary prices going down again because the chinese devaluation will erode chinese purchasing power. in our point of view, it is going to be highly deflationary. the first of the fed hike will be pushed out even further. alix: when? david: i don't know. nobody really knows because at

this point much is riding on what happens to china. i think from our point of view, we don't know what their reactions function ios. if i trust the bloomberg article's have been reading, the reformers in beijing are gaining ground, that they are in favor of moving more quickly to liberalize. if you're going to liberalize interest rates -- there is going to be a very thin line between where we are now and letting the currency go down faster. alix: amazing conversation. thank you so much. joe: coming up, which currencies are most at risk? we will tell you after the break. ♪

alix: i am alix steel. joe: i am joe weisenthal. "what'd you miss?" alix: before the break, we asked what currencies are most at risk?

joe: libya, the gulf of oman -- alix: one of the reasons behind the volatility and the global stock markets is currency. saudi arabia is not immune from this. falling oil prices have put pressure on the country's currency. joe: this week the country came out and said it will maintain the peg. alix: recently we talked to our guest about the chances of the currency becoming undone. >> the probability is very low, but there is a probability now. it is implying and less than percent move at the moment. for that to say, you would have to see much more political tension in saudi arabia, because it's much a pride issue maintaining the currency where it is and they have the resources to do it. joe: emad, why is it so important they maintain their

peg? why, for them, is maintaining at such an important part of the economic strategy? emad: they need to have some level of stability. for another, saudi arabia imports most of its food, etc., so de-pegging brings, in turn, inflation. finally saudi arabia does not have a yields curb at all -- yields curve at all. they would have the monetary resources to maintain the economy. alix: what if we see saudi arabia's budget continue to struggle as we see oil around $40, $50 a barrel? emad: it is about $260 billion. however, the saudi dollar is a bit wet.

they spend 60 billion dollars on energy subsidies. they have a lot of absorption capability and they also have $60 billion in net assets. -- $600 billion in net assets. this is not like chinese reserves which are a balancing item on a balance sheet. it is net cash. it's like you took in huge amounts of income tax and stored it away for a rainy day. in addition, they don't have any debt and an economy of $500 billion. compared to any developed market or emerging market peers, they have a lot of capacity before they are in a really stressful environment. joe: why then the need to cut the budget if they have all of this big cash piled up they are sitting on? who is potentially threatened due to the budget cuts?

i saw some talk that defense vendors could be at risk. emad: they spend more on defense than england or the u.k., for example. it's too high as a percentage. it is clearly just increased dramatically high since the arab spring. where cuts will happen will probably be in defense in these big state asset investment projects. building brand-new cities. these are not what is required for social stability. they are nice to have. this is what is required for basically -- ultimately the majority of the population is employed by the government. alix: emad, when you take a look at the country, is the rate breaking point where you see more dramatic steps could occur? emad: i think right now about $40. especially when oil curves up. there is not panic on the

streets. when it gets to be $30, 20 dollars, then you would see cuts. they have added $1 million -- one million barrels over the last two months. we are worried about half a million barrels coming from iran? so, it should drop by a million barrels by the end of the year. if you're headed toward $30, then i think you see dramatic cuts in production and more try to increase the price. joe: so, you are sanguine about the situation in saudi arabia, but other regional players might be more liable to break their pegs. oman. emad: defense spending is at 12% of gdp. basically they don't have enough money to cover anything and they need to borrow huge amount of money.

the same thing with iraq. and they are fighting isis. the collapse in the oil refiners make up 95% of the budget. they have to cut back the budget. they have to pare where they can and a de-peg makes sense and those --in those senses. alix: what keeps you up at night? what are you most worried about? emad: i suppose regionally my key concern would be the deterioration around syria, maybe up toward turkey if you start to see terrorist attacks there and around jordan. you may see it contained at the moment, but you could see it spread rapidly. there is not that much concern. every single government has tightened the hatches in terms

of security and stability. alix: our thanks to emad mostaque. joe: we will be right back. ♪

alix: i am alix steel. joe: i'm joe weisenthal. "what'd you miss?" alix: don't miss this. carl icahn taking a stake of freeport-mcmoran.

a huge rally. today we saw a huge rally over joint 5%. -- up by over 25%. a record move on the day. after hours, we are seeing another rally well up over 19%. joe: major jackpot for freeport-mcmoran holders. another thing you do not want to miss -- the university of michigan consumer sentiment survey comes out tomorrow. take a look inside my bloomberg terminal. pretty high. well off the lows of 2008, 2009, the 2011 debt scare. why is it important? we will get a reading that might take into account this market volatility we have seen. the new york fed president will dudley mentioned he was -- built dudley mentioned he was watching it. people always pay attention to

the sentiment report, but it will be a big one because we will get an early look at how people are reacting to everything going on. alix: totally, and he mentioned the global oil as well. joe: thanks for watching. alix: we will see you back your tomorrow, everybody. have a wonderful afternoon.

>> from our studios in new york city, this is "charlie rose." charlie: larry david has been called everyone's favorite curmudgeon. his particular brand of dark observational humor has made him one of the most distinctive voices in comedy. he and jerry seinfeld created a show that may television history. "seinfeld" ran for nine seasons and it is considered by many as the greatest sitcom of all time. larry david followed his success with "curb your enthusiasm." he is now on broadway. he wrote and stars in "fish in the dark."