in chinese manufacturing causes ripple affects around the world could it causes great concerns about the fate of global economic growth. betty: all but one stock is in the red today. the global stock route continues. mark: apple was talking with hollywood executives about making exclusive shows for apple tv. what the move could mean for the television industry. ♪ betty: good afternoon. i'm betty liu. mark: i'm mark crumpton. thank you so much for joining us. if you're taking a breath and taking upon's, what do you think we are doing here? rout andbal market selloff continues. matt miller was telling us earlier. let's bring us this chart again.

this is breathtaking in scope. nearly all of companies in the s&p 500 are in the red. a chemical company is the only one, but it is barely in the green right now. the selling is fast and it is financial and energies have been big decline as i know. the energy index is down almost 3.5%. mark: the dow jones industrial average is down for 17 points right now. all the major indexes on wall street down an average of 2.5% at the start. people were discussing where the markets are headed. one strategist i talked to said, you know what? it still feels like we have a little ways to go. i know we showed out last week, but we have a little more to go. maybe this is a little more to go. the first day of september and we saw that seesaw going back-and-forth over the past couple of weeks.

and a lot of people say this began when china devalued its currency on august 11. what ever it is, we have had this perfect storm of this happening. we did not remiss if mention oil. the biggest drop in seven months -- oil is falling as well today. check the screen. nymex crude is down six point 75%. -- 6.75%. brent crude is down 7.15% to gold futures may be coming back. it is up about three quarters of $1140.60.at betty: we almost trapped ourselves into a corner where if we get any number out of china that is less than dynamic and stella, we sell. mark: they used to say it about the u.s. federal reserve, but it seems that the mantra is that china sneezes and the rest of the world caught a cold. the rest of the world caught a nasty cold. what is going on in the bond too?ts today,

betty: we have seen a lot of selling on the shorter end for quite some time. all across buying the 10 year yield down to 2.18%. in the currency markets because of all of that fear that is going on in the markets, we are looking for places to park our money. in the currency market, that happens to mean the yen and the euro interestingly enough. those are the two places we have seen some buying. the yen is trading at a one-week high. mark: in just a couple weeks, the federal reserve will be meeting. a lot of people are saying because of what we have seen the past couple of weeks, fed yellen, andanet policy makers may decide to posit on what the consensus seemed to be a rate hike in september. now some people are pushing that off the board and say december or maybe 2016. betty: i think this labor report

on friday will be key. mark: the all caps you world index, we are looking at the worst month in three years. that drumbeat continues. take a look at the msci emerging markets index. the three-month chart shows it is down 20% at 810. we did take a look at oil and currencies as well. stay with bloomberg television because we will continue to follow this all day with your market updates discussing what we are seeing. it is only one way to put it -- a global market rout. topy: now some of the stories costing bloomberg terminal at this hour. chrysler kept its winning streak alive though -- business as usual. the north american unit of fiat chrysler had sales up 1.7% in august and analyst for they did it would fall, but they have gone up for 65 straight months. four was up 5.6%.

trucks and suvs led the way while ford's car sales fell. sales also drop that general motors, but not as much as expected. gm boosted its outlook for employers and deliveries for nissan and toyota posted smaller than estimated the client to delta airlines wants to rabbits on-time record in the face of its rivals. the carrier pitching in the program to its corporate clients to award travel credit. if the airline falls behind in arrival rates. delta is third in on-time arrivals. mark: some investors are wondering if the fed delaying hiking interest rates. 1 wall st veteran says higher rates would actually squeeze volatility out of the markets. j.p. morgan chase international explains why on ."loomberg surveillance 0 when interest rates are zero,

everyone is chasing after yield. if you're chasing after yield, you are looking at more risky. if it is more risky, risk is not always proper. people go to financial markets and send into real investments. that is why it is so important that the fed finds its way in the time to raise interest rates. mark: he served in a decade as the governor of the bank of israel and specialized in foreign exchange issues. the two biggest pension funds will vote against the bank of america proposal to let ceo brian one hand keep the california funds says that the two role should be severed. they say be of a has underperformed since mr. moynihan became chairman in 2010. hilton is hailing ridesharing to help guests reach hotels and explore cities. guess will be able to sit up -- set up automatic notification to

request rides to and from the chains worldwide. the partnership launches later this month in 20 u.s. cities. betty: a judge will call the final plate in the deflate gate. yesterday's session settled nothing. the judge says he will rule this week, perhaps as early as today. england between the new patriots quarterback in the nfl over football tempering has lasted seven months. mark: football season starts next week. betty: i know. i'm looking forward to it. mark: those are top stories at this hour. as we have been reporting, the story of the day -- the financial market selloff in the is china.of concern stocks tumbled around the globe as china reported manufacturing an activity fell to activities lasting since 2012. see the polls that this has taken. the u.s. has erased all games that has seen for the event oil is losing ground as well. betty: a lonely voice calling

for calm is the imf's christine lagarde. >> as the chinese economy is adjusting to a new growth level, growth is slowing down. isdo not believe that growth slowing sharply as is often indicated in various journals or by various commentators. but it will slow down. we do not believe it is unexpected. isty: with us this afternoon prizewinners and authors rough long study china and emerging markets. cheryl and nicholas kristof. the paperback edition of their book went on sale today. sheryl and that, a we have our own signed copy. on china, christine lagarde is saying let's just take a breath

and call down. china is not going down the toilet. what the think -- do you think? sheryl: china is still growing. it is not a collapsing economy. the question is whether the stated growth rate of 7% is really the growth rate. that is probably not the case for is it really 1% or 0%? it is probably between at 5%. stillns the economy is eating a lot of commodities. it is still building a lot of things. there is still trade and numerous volumes of that. this is a giant economy. arguably the largest in the world if you use purchasing power parity. it is still moving. mark: nicholas, what does this tell us about president xi's policies let crackdowns on corruptions and austerity measures? is this an indictment of his leadership? nicholas: not exactly.

the fundamentally chinese models run out of state and they have to change their models. this has been a long-term process. you have to wonder about the way he has responded. the way he responded to a falling market for example by arresting journalists. that is not the best way to promote economic development and economic growth. i think that there are a lot of people who thought initially that he was going to approach as a real economic reformer. in fact, he seems fundamentally to be about securing his own power and economic development. betty: they have come out with measures in the last few days. it seems like every morning i wake up there is a new measure yuan's to limit the fall and stock market declines. have they lost control of the economy? sheryl: the leadership is extremely scared could it is extremely true they want to make market reforms and market-based economies. they want to make their coming

more focused on the markets. they also have this fear of letting go of control because the have been a command economy for decades could now is the question of what do they do? there's never been a history before of an economy that has transitioned from a command or control to a market-based. they are trying to feel the stones as he crossed the river. that is what they are having to do and there are probably intense negotiations going on among senior leadership right now. they reportedly canceled a very important meeting. there was reports that the chinese government are not going to confirm that. it means they were not able to reach decisions or agreements on things. their party congress in october, they are probably really going through intense and negotiation's. mark: intense negotiations aside, to paraphrase your book, what is the path forward? what hath all appear for the situation around? is it something structural or

something done in 2-5 years? nicholas: it is essentially globalizing domestic demand. they know that. ares not quite appear they willing to take those steps and reduce the power of the state owned companies in the economy. betty: why not. ? mark: he would figure that's a no-brainer. nicholas: for example, the response to the collapsing market was to become more of a command economy and tell everybody what to do to try to control the markets. that is just the wrong impulse. you cannot control the markets. let us say the decided not to step in. they would have to watch that market dropped 1000 points and they were too scared to do that. with the valuation of currency, here is an example where they want to get into the basket for currencies. betty: they want to be recognized. sheryl: exactly. we just had a little bit of a devaluation. look at the reaction.

here is an example where they really were trying to loosen the controls in the reaction was just. mark: you talk about the reaction -- is that a suggestion the reaction was overblown? sheryl: i've think that whatever happens in china, as he said, they sneeze and they get a cold. it is an overreaction. never going to be a right time for them to loosen controls and move more into a consumption economy. it is kind of like dan did they do, dammed if they don't. i think they are reacting as of the markets have cancer. they are sneezing and i think they will be sneezing for years to come. there is some risk that the sneezing will lead to political problems and unrest. i would not bet on it, but that is something leadership is afraid of and we should take into account. a littleverybody is bit too much thinking that they are headed over the cliff. before, we mentioned

you to know this area intimately. i have to ask and let me start with you. we talk about what this means for global markets. what does it mean for the average citizen? what are they going through right now? sheryl: the average citizen and china -- 1/10 of the population has invested in the stock market. if you are one of those people, you're feeling pain and have got in in the past year because the market is quite down. and that is really hard for the chinese. although they are known to save a whole lot of money, people were actually investing their savings because earlier in the year, the government said to invest the money and they will go up and make a lot of money. they were hoping to actually improve and plan the wealth of the average citizen, but clearly that has not happened. ryl and nicholas, thank you so much. your boat today -- but today "a path appears" is on stance today

could still ahead, we are watching closely china's impact on the markets. the s&p remains deeply in the red with the dow staying near the lows of the session. mark: we're going to look at some movers. there are some movers today. which way are they going? that is anybody's guess. and 45l have two hours minutes till the close of trading today. betty: some people are counting the minutes. .ark: fasten your seatbelts it's going to be a bumpy ride. "bloomberg market day" will continue in just a moment. ♪

betty: welcome back.

we are watching the markets closely. i'm betty liu with mark crumpton. go straight to bloomberg's matt miller with a look at the markets right now. averagejones industrial is falling like a rock on this first day of september. like a led zeppelin out of the sky. we have the s&p 500 down 2.5%. the dow now down for 15 points. the nasdaq down 2.4% as well. i took a look at one point at the s&p 500 and i only saw one stock gaming. about sigma aldrich at $140. it is only gaming because it cannot really go down since mark offered $140 a share for it. not a lot of winners in the s&p 500. you're going to go through some of the action here. what need take a look at some of the stocks that are putting up be on smaller indexes.

sun edison was one that saw some strength today. right now it is up 6.5%. mcquarrie and jpmorgan are both bullish. double upgrade on sun edison and estate taken out on sun edison. athave seen the stock trade $11.09. very bullish sentiment on this company. it is one of the main reasons we are seeing a rise today. you are also seeing again for constellation brands, alibaba has decided to start selling robert mondavi wines among other beverages that constellation cells. it is getting into the chinese market, which is what raises the stock. it is 1/10 of 1% game, but we still see a little bit of action at $128 a share. constellation brands putting up some points today. look at theke a imap. if you take a look at my

terminal, the fact that there are no green areas here. this is what happens when you is a heat the s&p and map of the different industries with the information technology here, financials here, health care. no green on here at all. if you take a look at financials in energy, you can see they are two of the biggest losers here, down 3.3%. both of them, if you take a look at both of those indexes, down 3.3%. energy or all for the financial sectors, as well as every thing else. consumer staples is doing the best, but consumer staples is having some trouble today. we will continue to monitor that market. i will be there in just a moment to take a broader look at what is going on there. mark: matt miller with the stock of they could if we updated every few minutes, the word of the day is down. betty: and new stocks falling as

well. still ahead on "bloomberg or get day,", as matt mentioned, all the stocks are in the red. mark: we will hear from beyond go research after the break. stay with us. we will be right back. ♪

mark: welcome back. i'm mark crumpton here with betty liu. now to help us make sense of these market moves, jim beyond go, president of the all go research. he joins us on the phone from chicago. in a word, how would you today?e what is going on j uncertainty and feari. i willm: give you two words when he asked for one word. i think the market is still worried about what is happening in china. i think if you want to know why it is worried about china -- let

us put it simple. china is the world's factory. going, andld prize they go out. there is fear no doubt. chinese government has engaged in haphazard if not panic moves to try to stop there economy from declining to the point where they are now arresting money managers that are daring to sell their market. tremendouseding a amount of uncertainty about what is happening in the chinese economy and fears that it is much worse than we all think it is. i think that is the genesis of this. netty: we just had sheryl wudunn saying that the growth rate is worse than they are advertising. is not whether they will be contracting at this point, but any number out of china come people think it may be double worse than what they are publishing. u.s., thehere in the

fed is what people are keeping their eye on. what is the fed going to do? the boston fed president who is voting next year is making a speech at this moment and saying basically, look, what is happening right now with the inflation, the doubts about inflation, they justify a slow rate-- a slow pace of increases. it does not necessarily mean they are not meant to raise interest rates. jim: two things -- first of all on the chinese growth rate, keep in mind that since tiananmen square in 1989, the lowest growth rate china has ever recorded his 6%. that was during the bottom of the financial crisis in 2008. they might be at that growth rate or lower rent up to at 5%, we would be lucky to have that growth rate. took that around and that is the lowest growth rate since they opened their economy. that is what has been panic. as far as the fed goes, they are over the lot. there are 17 members and i think

you can get 23 different opinions from them right now. there is no consensus. last week of the big three, bill dudley, the new right fed president, spoke and he said that they should sit tight and not raise rates. two days later, we had stanley fischer, the vice-chairman, speak and he was leaning toward raising rates. we are still waiting for janet yellen to break the tie and we are getting fed officials all after jacksoneven hole in wyoming. you can conceive of an opinion and there is not at least one official that has it. mark: jim, we're going to have to leave it there. jim bianco from chicago. betty: this is where i sign off. i leave you to watch the markets. ♪

mark: welcome back to the bloomberg market day. i am mark crumpton in new york. let's begin with a look at the markets on this tuesday, some timber first -- september 1,

2015. can't understate the obvious here. global markets seem to be in a freefall. matt: absolutely. they continue to get worse and worse throughout the day. we've had some pretty amazing moves down. i looked at the s&p 500 and there was only one gainer in the entire group. i found that interesting because that was fixed at a price of 140. i have some interesting graphics here. i'm not sure if you can bring up my terminal. i've put together a couple of , all off the green line the strategist forecasts averaged out on the street for the s&p 500. the blue line is what the s&p is actually doing. right now, forecasts are pretty far above what the s&p is

actually doing and you're starting to see people cut forecasts today. mark: you were talking about the s&p 500. matt has been showing us the eye chart for couple of days. that tells a story. look at all the red on the screen. that was ane company gainer. just barely. look at that. all the companies in the s&p 500 in the red. matt: four bloomberg junkies come i will blow your mind. map in wheel of fortune form come up and down. have the columns that are the months, side to side, you have the rose that are the years. the ten-year average, the top row shows you what the ten-year average would be. in august, the ten-year average is a loss of .6%.

september, over to it's a gain of 3.6%. over the last 10 years, using again in september. --ve only had one day so far the last time we saw a drop this is significant would have been 2011 when they had the mini crash and 2008. september is normally a positive month. a lot of people have tweeted me to ask me how i got to this function. mark: i have a chart of the hang seng index, that is in the red as well. ,hat has been going on in china the ripple effect around the world at this point cannot be understated. if you look at wall street, what's going on in china, concerns about slow economic growth in china, concerns about the manufacturing sector. that is leading a global markets offer selloff.

afterthe market feels what we heard from stanley market feels like the fed wants to go ahead and raise rates in september. it is throwing all of its toys right now -- it doesn't want to see the fed do that. a big part of the market things that will be a massive blunder. the fed seems fairly determined. mark: are some people missing the point? everyone points the finger to china. there anything else going on that people are not talking about? matt: that is a huge part of it. china has a little to do with it. media stocks kick this off, the drop with cord cutting. --na evaluating the yuan shares, they were down 8% in june, 15% in july,

20% in august. it has been a story about emerging markets and slowing growth. in the midst of that, the fed raising rates. especially now when the market is throwing a temper tantrum, doesn't seem like the right time to do it. they missed the window and they are still determined to do it anyway and the market does not like it. mark: matt miller helping me cover the stock selloff today. matt: that's he held the rest of the month this. -- let's see how the rest of the month is. mark: a county clerk in the state of kentucky has defied the u.s. supreme court. she is refusing to issue licenses for same-sex marriages despite a ruling by the high court last night. she says she's acting under god's authority. she and her deputies have been ordered to a federal hearing on thursday.

donald trump is sharing the top spot in an iowa survey. the latest poll finds trump tied with dr. ben carson. each gets 23% in the all. carly fiorina gets third at 10%. rick perry's campaign is fading fast in the state that votes first. he now has only one paid staff member in iowa. president obama is close to securing enough and votes to sustain any veto of a resolution against the nuclear accord with iran. the president will have the votes by this weekend. so far, 31 senators backed the deal. beis coon of delaware could number 32. he is nothing his position minutes from now. swedish officials are trying to strike a deal with ecuador that would let them question julianna signage in london.

sweden wants to talk to the wikileaks founder about rape allegations. he has avoided extradition by taking shelter in ecuador's london embassy since 2012. he denies all accusations against him. an unprecedented announcement today from pope francis. he is calling on all priests to parted women who have had abortions if they seek sincere forgiveness. -- pardon women. for now, the change applies only to the holy year. the traditional time for remission and forgiveness. us get back to the top story of this tuesday. the major market moves we've been seeing. let's go to the chief market strategist at jones day. he joins us on the phone from connecticut. what a way to start off the month of september. let me pose a question to you.

is this all about china or is something else going on? it is actually jones trading. there's a lot of things at play here. china is part of the story, but there is big concern about global slowdown. matt was talking about the things playing out over the last few months. one of the important things people have to recognize, last year when it became apparent that the fed would end qe and look to tighten monetary policy, they started a massive rally. i talked about the super cycle of the dollar. that strengthening of the dollar has heard emerging markets and the commodity businesses. urt emerging markets and the commodity businesses.

that strengthening slowed the chinese economy. they spent the past year trying to create a stock market bubble to re-accelerated and that has failed. it has been a major failure from a policy perspective. u.s. come earnings have rolled over q3 of last year. s&p 500 earnings estimate was for $131. the estimates s&p compiles now are down to $111. when you think about the strap that we've had -- the drop that we've had -- half-hour,e last betty liu and i were speaking with nicholas and cheryl talking about the developments in china and i posed the question, is the

world overreacting to the events in china? cheryl says she believes so. think china is part of it. the pmi number last night was in line. one take below the january number. it was not a massive disappointment. something like the south korean export number got people spooked from the perspective of we are south korea is having trouble exporting. you get this fear about global currency devaluation. and trade wars. we are seeing everything come together here. this market rally at 6.5% from monday's lows through friday's -- we bounced to the top end of the range. mark: what is the fed to do when

policymakers meet in a couple of weeks? as we were talking earlier, the consensus seemed to be that interest rates would rise during this fed meeting. is that now off the table? michael: i would not say off the table he appear yet. the symposium gave some good clarity as to what fed officials are thinking. if you see volatility died down and the job numbers look good, they will raise rates. if the s&p is below 1900, they will back away. as long as the s&p 500 is above 1900, the 10 year yield is below 2.5%, they want to get that first rate increase under their belt and make it happen.

they have taken note of market volatility. that is the one thing that is keeping them cautious at this point in time. mark: you mentioned your clients a moment ago. what are they telling you today? mark: i've been a bear for some time now. when we bounced through friday's close, we were 18 times this year's estimate. , welast three or quarters were close to 19 times. this market is so expensive and there is not much -- i'm telling people to be defensive. ask, how long does this continue? when do things start to normalize? michael: this is just the start of a correction. the markets technology and the risks that are out there. it's too early to put a time frame on it.

michael, thank you so much for your time on this busy day for we appreciate it. we will continue our extensive coverage of today's market drop with the s&p 500 remaining in the red and the dow bouncing off its low for the date, now 405 points. stay with us. the bloomberg market day continues just a moment. ♪

welcome back to bloomberg market day. thank you for staying with us. let's get straight to a check of the markets. matt miller is in the newsroom with those details.

not much has changed from the last time we spoke matt: no. markets have plummeted today. we are still around 400 points above the loss -- we were down a bit lower before. still basically 2.5% on the dow, the s&p, the nasdaq down 2%. have fallenthe dow into correction mode. they are both off 10% from their highs. the dow jones had its worst august in 17 years, finishing the worst month in five years yesterday. the nasdaq is now officially negative for the year. even the nasdaq and the momentum play had been so strong, tech stocks have been so strong but it is down for the year. oil with its biggest drop in seven months today. -- the or 348 a barrel biggest drop in seven months,

but it was up over the last three days. it doesn't look so bad if you take a look at the five day trade. out -- graphedl oil out. today's drop while severe if looked at in a single day doesn't look so bad if you look at it over a week. oil is down. a lot of the oil -- a lot of the oil movers are down. you will see the biggest losers are oil companies. chevron is one of the biggest losers of the day. exxon mobil is one of the biggest losers of the day. those are the companies that are dragging down the indexes and financials. oil companies and financials the big losers, but every company on the dow jones industrial average

is down right now. actually, we are doing a bit better. now, we have 10 winners. not all of them are losers right now. nine winners and one unchanged. let's take a look at the yield on the 10 year. people are going to gold a little bit. has not gained that much. saw five basis point gain on the yield earlier. now, the yield is down three basis points. selling out of the 10 year as well, very interesting to watch who is doing that. the chinese government has been telling its treasuries to try to .aise money a very interesting story. #get i can just imagine

out of my terminal. nasdaq is now down for 2015 as well. let's get a look at the european market close. mark barton has those details. china.ive letters, continuing to dictate how every singleets -- group fell today. look at the color on the screen. last month, the biggest fall for european equities in four years. more of the same on the first day of the new month. 14 out of 18 of europe's main equity markets have sunk 10% from their highs. it wasn't always about china. franceturing data out of come a contraction in germany. not as muchansion

as estimated. unemployment in the eurozone felt to a three-year low. something for the ecb to consider when it meets on wednesday and thursday this week. have a look at the big movers in europe today. it was not all about the decline. roughly 15 stocks rose on the stock 600. the swedish maker of medical returning to growth. look at glen core, 9% lower today. it has been hammered since china devalued the yuan. it has lost 33% of its value. man group 7% lower today. its china unitof was taken into custody to assist with the police probe into market volatility. 600, losing stock 300 billion euros of value today.

the first day of september. oh, dear. mark: mark barton joining us from london. , gauges contracted in august. stephen hester at that story from hong kong. stephen: five industry cuts and have failed to revive growth in the chinese economy. manufacturing pmi fell into contraction for a 3.5 your low. the separate pmi of mostly privately run factories also should contraction. goldman sachs says the economy is going through a deceleration. that has been exacerbated by the current stock market route. monththe turbulence last

has not been kind to greenlight capital, the investment firm led by david einhorn. falling 5.3% in august. scarlet joins me with more. scarlet: august number is not pretty. tot brings the year date loss at 14% for david einhorn. the second year that the hedge fund has lost money since david einhorn cofounded it in 1996. the last annual loss was back in 2008. that was a brutal year for most funds when it lost 23%. said in augustrn the overall market environment has become acutely unfavorable for our investment strategy. most of its peers are beating stocks. scarlet: and the volatility has been good news for hedge funds overall. global hedget the fund index, down 2% in august,

better than what it was for the s&p 500. for the year so far, global hedge fund index off 1% through the end of last week. which is extending its losses today. you look at the position that funds have come only gold has done well. -- apple fell 7% in the month. apple is the third biggest. one thing about david einhorn is that he calls overpriced momentum tech stocks a bubble basket. when investorsnt dislike value stocks and shun value stocks inches momentum stocks, that's when the fund does not do very well. mark: is this about what we are talking about today? is this about the global markets?

scarlet: and the timing of it. a lot of red flags all over the place. when that actually happens is anyone's guess. you can hold onto a position for a long time and get slapped in the face when it comes to pass. mark: green lights largest loss was seven years ago. what is coming up? scarlet: we will continue the conversation on the markets and look at currencies. he had traded currencies for 35 years. we will look at the chinese yuan revaluation. -- devaluation. the brazilian reality trading at a 12 year low today. stockstill ahead, tech feeling and hard in this market selloff. netflix down 8%. cory johnson will join us with

the latest. ♪

mark: even cory johnson a victim of today's market selloff. a lot of red on the screen today. we are seeing the dow industrials coming off the lows of the session, down 381 points. , nearly all the companies in the red today. s&p down 2.3%. ♪

mark: it is 11:00 a.m. in tampa, 2:00 p.m. in new york and 2:00 a.m. in hong kong. -- 11:00 a.m. in san francisco. stocks slide over concerns about growth.

is canada on the brink of a recession? technically, they already are. plunging oil prices. mark: red ipo's. why 70% of ipo's in the last year have been money-losing firms. good day from bloomberg world headquarters in new york and i'm mark crumpton, here with scarlet fu. september traditionally has not been a kind month, but this is getting a little ahead of itself. scarlet: falling right in line with that trend. lots of red across the screen for u.s. stocks. doesy 10 industry groups look at the 10 industry groups and s&p of never come all