-- the volatility index shoots upwards. there's nothing to fear when the fear index is high. olivia: coffee lovers, listen up. the cup of joe may be in jeopardy to their railing in the reigns of coffee production in africa. alix: we take a look at why the north paul is important to the north pole is important to the u.s. into the economy. ♪ good morning. i'm olivia sterns. alix: i am alix steel. we want to take a look at the markets 90 minutes into trading could the dow is up a little compared to the last few days, up by 127 points. volume is a bit light and off by 30% versus the 10 day average good this is after stocks got decimated yesterday, at one point down as 550 points.

jpmorgan saying, why are you going to want to commit a large along in money to go stocks until you see some kind of stability in the stock market for at least a few days, which we have not seen? olivia: mohamed el-erian told us that it is going to take the fed to policy certainty around the efforts around rates or a circuit breaker from the chinese government. the chinese markets are closed for the next two days because of those world war ii parades and celebrations. alix: what was leading down the market yesterday was oil. it does not seem like oil is doing that much. a little bit of spike around the inventory numbers. what is take a look at those. inventory numbers coming out at 10:30 a.m.. we see inventory build in the u.s.. the same idea -- we are seeing some inventory, but gasoline demand was a lot stronger. refineries are starting to take a break.

they are going on maintenance and not using as much crude. that is the implication you are seeing there when the numbers came out as well. i do want to take a look at the top stories we are watching for you at this hour. alix: president obama now has enough votes in the senate to uphold the iran nuclear deal. -- maryland democrat barbara mikulski says she will support the agreement and that gives the president 34 votes he needs to sustain a veto if congress rejects the deal. secretary of state john kerry is about to give a major policy speech on iran. it will focus on how the deal makes the u.s. and its allies safer. oil prices fell again in the last half hour. the government released the latest inventory figures been oil stockpiles rose again last week and crude fell almost 8% last week after the biggest three-day rally in 25 years could we talke. we talked well with mohammed all area.

>> we will see volatility on the upside and downside. with unhinged markets as oil has been unhinged, it takes a long time for it to gain its footing. alix: iran has made it clear that it will put more oil on the market as too as sanctions on its exports are lifted. olivia: there was a small increase in factory orders, rose 4%.ou july's figure was less than 1/5 of the size of june the increase. manufacturing is still being hurt by the stronger u.s. dollar and weaken demand coming from china and other emerging markets. and it is official -- former newspaper executive rebekah will make a triumph and return to rupert murdoch's news or. she'll be ceo of news corp.'s u.k. decision. clear offter she was all charges in a british newspaper phone hacking scandal. we do want to go back to that press conference.

secretary of state john kerry is speaking now and delivering remarks on the iran nuclear deal. kerry: i know the choice of coming here and sitting in class was a very chuffed one. -- tough one. i particularly riffle that to come here chose this morning to introduce me and to reaffirm his support for this agreement. but i'm even more grateful for his service to our country over the course of a lifetime. ona former colleague of his the foreign relations committee, which he referred to in his introduction, i can bear witness that dig lugar is one of the true legislative pathfinders of recent times with a long record of foreign policy a couple cements. what he and sam monday it is a lasting legacy of making this world safer. he is also someone who has consistently placed our country's interest above any

other consideration. and he has a very deep understanding of how best to prevent nuclear weapons from falling into the wrong hands. he is one of our experts when it comes to that judgment. so it is appropriate that the senator is here with us this morning. and i think everyone joins in saying thank you for your tremendous service. [applause] it is also fitting 50 philadelphia, the home ground of this magnificent center of the constitution, the liberty bell, and one of our nation's most revered founders, benjamin england. i must say that i never quite anticipated that this is one of the great vistas in america and to be able to look down and see independence hall there is inspiring, i think, for all of

us here. i would say a quick word about ben franklin. in addition to his many inventions in his special status as america's first diplomat, franklin is actually credited with being the first person known to have made a list of pros and cons literally dividing all thento an writing reasons to support a proposal on one side and all the reasons to oppose it on the other. and this morning, i would like to invite you, those here and those listening through the media, to participate in just such an exercise. vienna two months ago in , the united states and five other nations, including permanent members of the un security council, reached an agreement with iran on ensuring the peaceful nature of that country's nuclear program. as early as next week, congress

will begin voting on whether to support that plan. and the outcome will matter as much as any foreign-policy decision in recent history. lugar, president obama and i are convinced beyond any reasonable doubt that the framework that we have put forward will get the job done. and in that assessment, we have excellent company. last month, 29 of our nation's top nuclear physicist and nobel prize winners, scientists, from one end of the country to the other, congratulated the president for what they called " a technically sound, stringent, and innovative deal that will provide the necessary assurance that iran is not developing nuclear weapons." the scientist praise the agreement for its creative

approach the verification and for the rigorous safeguards that will prevent iran from obtaining the material for a bomb. facts i will lay out the that cause those scientists and many other experts to reach the favorable conclusions that they have. i will show why they greet plan -- the agreed plan will make the united states, israel, the gulf states, and the world safer. i will explain how it gives us the access that we need to ensure that iran's nuclear program remains fully peaceful while preserving every option to respond if iran fails to meet its commitments. i will make clear that the key elements of the agreement will years asfor 10 or 15 some are trying to assert, or

for 20, 25, but they will last for the lifetime of iran's nuclear program. some of theispel false information that has been circulating about the proposal in which congress is soon going to vote. discussion, there pointinescapable starting , a place where every argument made against the agreement must confront a stark reality. the reality of how advanced iran's nuclear program had become and where it was headed one president obama and rouhani launched the diplomatic process that concluded this past july. in september, 2013, we were facing and iran that had already mastered the

nuclear fuel cycle. already stockpiled enough enriched uranium that if further enriched could arm 10-12 balls. -- balls. ombs and an iran that was enriching uranium to a level of 20%. that is just below weapons grade. installedhad already 10,000 plus centrifuges and and iran that was moving rapidly to heavy water reactor able to produce enough weapons grade. plutonium for an additional bomb or two a year. that, my friends, is where we already were when we began our negotiations. secretary kerry speaking there from philadelphia on the iran nuclear deal. we do want to bring in phil mattingly who has been covering

this story from washington. phil, what stood out to you? phil: what is important to know about this beach is the audience that he is targeting. first, he started targeting public perception. public polling on this deal right now does not look good for the white house or the obama administration in general. there is probably 30% of people who support this deal in its entirety when you look at the polling. he is targeting the par blood, but he is also best public, but he is targeting seven more democrats for the big news today on the iran that the obama administration was able to secure the support of a 34 democrat. that means the iran deal will go for no matter what congress does. they take a breath and exhale and go after seven more democrats. it is in the weeds on congress, but there is an important difference. if the administration can get seven more democrats, that means they can block any consideration of this in congress.

that looks good internationally for congress and that is who john tierney is targeting right now. olivia: barbara mikulski becoming the latest senator. obama got those 34 votes. still ahead, volatility is up. how will you invest? we will hear from investment trust up next. ♪

olivia: welcome back. i'm olivia sterns. alix: i am out still. to matt miller with a look at what is happening in the markets. it feels a little calm right now. i say that with a question mark because you never know. drop after a 500 point

yesterday, we are chilling out with a 126 point gain on the dow. about two thirds of a percent gain on the s&p 500. not big games. turned around. we pulled back a little bit and now we have leveled out. 11 15 as people pay more attention to the situation in washington and what john kerry is saying. let us focus on equities for a second. take a look at my terminal. i have the imap heat map of the today. as opposed to yesterday, so much green here. i.t., financials which were a big drag yesterday, health care, this entire wheel was read yesterday. today, it is only energy and utilities. let us take a look at the biggest gamer, which is information technology. and the biggest loser, which is utilities. second biggest

loser down a third of 1%. that is what is moving the markets today. intel is a gainer today. it is the top performer in the dow. it is coming out with a new chip that says it is going to bring more speed and use less energy. that is typically what intel does. apple is the second-biggest gainer of the doubt. that is a 50%-60% chance the company does bring out a car. he says it will be a luxury model and will take longer than might expect, 10 years as opposed to five years. he says it is a possibility. the stock is still down though you today. -- year to date. olivia: i didn't think the potential of an apple car was moving the needle on the stock market did . matt: i like to talk about car so i thought it would bring it here and tie it in. at the top a look

stories crossing the bloomberg terminal at this hour. sword lastplication week, and they rose 11%. the average rate for a fixed 30 year mortgage held steady last week at just under 4.1%. and joe biden is not in the presidential race, but he looks and sounds like a candidate today. the vice president is scheduled to make a speech today. a super pac is being drafted and name early running state in a. 7-eleven is rolling out delivery service to three cities. they can mount order things like chicken wings, cold medicine, and paper towels. if you have a hankering for a slippery, you have to simply go to a 711. the chain most popular item is not on the takeout menu. those of the top stories of the hour. as the market fluctuates, the

focus has been on ball till the all morning. when the s&p rises, volatility futures usually fall. recently, it has been a different story. after falling behind, the vix jumped and features are catching a reversal. for a closer look at how conservative investors should be, we want to bring in joseph tanious, a principal investment strategist. he joins us now from california. we have seen the future's move quite significantly the past few weeks. does that mean volatility is sticky and here to stay? joseph: i would suspect we are dealing with a few more days and weeks of volatility. there is just a lot out there, a lot of noise between china, between the, and between what is happening with the fed preparing to raise rates. i think investors are having a hard time wrapping their minds

around all this data and was in meeting to focus on the underlying fundamentals. lying ine: comfortable the did or do you want to hold off a little until volatility subsides? joseph: when you look at volatility like this, it is very difficult to feel comfortable putting money to work. i think your initial reaction, your gut instinct tells you to sit tight and wait for a moment. as a matter of fact, you have a lot of people wanting to move in the other direction. ityou look at volatility, should be clear over time that it is nothing new. volatility is something you see on average. going back to 1929, the s&p 500 has seen a 10% pullback every single year. this volatility is normal. for long-term investors, you have to look at this as an opportunity to get a little bit of that cash you have on the sidelines to work. in the long run of course, that will yield the best results. alix: what is the biggest risk for the markets? i would point oil.

can you do that unless oil stabilizes? where you sit, what is the biggest problem? think oil is heading a little bit lower and it will create more choppiness and volatility in the markets. it is clearly having an impact on energy stocks and earnings and an impact on high yield. i think it is having an impact on many countries and geopolitics in general. when i look at the markets around the world, i think china has clearly been something on everyone's mind to the extent that we see the currency devalued anymore from here. it might potentially escalate fears around global currency war. we do not think that is going to happen, but clearly that is a concern. preparing for fed left off. we have not had a several reserve raise interest rates for nearly a decade. i think there will be jitters around that. until we finally get confirmation that the fed is raising interest rates, we are probably going to be dealing with this volatility for some more time to come. olivia: he mentioned that the

valuations of the chinese devalued yuan, $7 trillion quite buff global equity markets. a note this morning says that the valuation may have determined the exact timing of the correction, that is not the same as determining the actual cause. if this correction was long overdue, do you agree with that? the correction in the chinese market was long overdue. if you look at the chinese stock market, it is crazy to wrap your mind about it. olivia: the dow is now roughly in correction territory. it is 10% from its peak. it has been three years since we have seen a 10% correction in the s&p. joseph: corrections themselves are healthy. markets should never move up in a linear fashion. it does not make any sense. having said that, if you take a look at what has happened in the markets the past couple weeks and take it with the underlying fundamentals and economic data,

there is clearly a dislocation. i do not think we can focus on what is happening in the markets and say, as a result of this, clearly the underlying economy must be weaker. certainly to the extent by volatility lingers and we see the sloppiness of the markets even longer, back could have an impact on sentiment, which could lead to having an impact on the economy. as of right now, there is clearly a dislocation. alix: thank you so much, joseph tanious. up, the cost of your morning cup of joe could be going up and you will have the weather to thank for that. alix steel with the details coming up next. ♪

olivia: el niño is forecasting an especially powerful punch. scientists say it could be one of the strongest on record. to the 1950's and

that is making starbucks nervous. alix: what is el niño at the end of the day? incomes and messes up all the weather. you get a lot of rain and flooding and you get temperature shifts. it is good for some commodities and bad for others. this could be the worst one since 1950. you can see a lot of rain in parts of east africa like uganda . they have a lot of coffee crops. if they are too wet, they cannot dry out and they are not good beans and could cause disease for the crops as well. that's a problem. not realize also that uganda is a big exporter of coffee from africa. starbucks has actually recently started as of august 31 sourcing some of their beans from uganda. alix: there have been stocking up of uganda beans. there are two kinds of fancy pants beans. robust that is the more generic. the big coffee guys like starbucks 10 to hedge bets with

coffee and secure their supply from 18 months out. it is not like they will be out of coffee and your ground a lot table b seven dollars. they do score in different areas and this is definitely an indication of concern. this is a really big deal for the global economy. citigroup act in july said this inld be a major tail risk the global economy in 2015. if you have higher commodity prices, you must have higher food inflation. for countries who in port this food -- import their food, this could be a problem. going: i thought you were to say people are more caffeinated that would make them more productive. alix: olivia sterns is off now. lots more ahead. china's market is getting a shakeup ahead of its world war ii parade. ♪

alix: welcome back. i am alix steel. not a look at the top stories at this hour. white-collar workers are set for a nice raise in 2016.

staffing firm robert half says that professionals will get their biggest pay hike in eight years. wireless engineers will see the biggest rage what the average starting salaries rising by almost 10%. salaries will not be the only thing rising. rental vacancies fell last quarter to the lowest level in 30 years and that means that you can count on rent going up. they increased almost 4% in july from a year before. is giving in to requests from viewers. the streaming video service will now offer online tv without commercials for $12 a month. hulu is co-owned by nbc, disney, and fox. netflix and amazon prime video do not carry any commercials. it is a presidential selfie. survival show host bear grills took this picture in alaska where he took an episode with president obama. president obama is taking the opportunity to act on climate change.

those are your top stories of the morning. markets are closing over in europe. for the very latest, we want to go to mark art and joining us from london. mark: european stocks rising for postedst day as equities most losses. chinese markets closed for the next two days. that equates to 113 hours focused on matters closer to home. the ecb monitoring policy meeting tomorrow. the u.s. jobs report is on friday. it was not straightforward for the stoxx 600 could at one stage, it was down by .6 percent. nevertheless, equity volatility has fallen for the first day after rising to the highest and four years last week. if we look at some of your's -- york's biggest movers. there was a few. houston, the french manufacturer , ge closer to winning approval to buy houston's energy

business. -- it solder itself assets to arrival. delta lloyd down by 2.6%. one of its largest shareholder is reduced at stake and shares dropping to the lowest level since the ipo in 2009. asos is the uk's biggest online retailer. after 15nding down years from shares down 2.8%. really quickly want to show you how all these fair on the stock 600 only two sectors fell today. finally, the stoxx 600 is on the board after two days of trading in september. so much, marku barton, joining us from london. have lotshere, we more. if shopping online is not easy enough for you, amazon is

doubling down on its -- button to make one-stop shopping even more convenient. with oil dropping for the second straight day, $20 a barrel and we will hear from citigroup's head of commodity research who called for $20 oil earlier this year. plus, the fed releases its phase book at 2:00 p.m. eastern today and we will see if they give clues on the timing of the first ray kite. first, china's stock of picking back up today. they trimmed losses on speculation that state farm intervened stabilize the markets before the country celebration of china's role in world war ii against japan. take a look at the index of the six days you is or for dips that have moved higher around the same time every day, perhaps waiting for some kind of government intervention. for a closer look at these politics behind china's stock market. , i want to bring in jamie metzl

who joins us here in these studio. he did for date a chinese market bubble bust back in june. congratulations. around thesee val's same time every day, we do see market intervention, what is your take on that? jamie: it is relatively clear that the chinese government and agents of the chinese government, including brokerage firms, who are all going into stop these decrease of people selling their shares on the market. onht now, china is hell-bent not having big losses in the market. the government is intervening, but the regular investors see their stocks go down so much and no there is much farther to fall and their stocks are still overvalued -- those people would like to get their investments out. the government keeps doubling down. unlike in the united states at the time of the crisis,

certainly aig and other companies -- the united states government went and bought shares. we bought at the bottom. the chinese government is buying at the top. not only are they intervening with these overvalued shares, and all government these brokerage firms are going to be stuck with all these overvalued shares and underlying assets are not worth what these the stock market valuations are good with a chart that you showed, that is what we are seeing. alix: what happens when markets come back on monday after this world war ii celebration? what gives? jamie: the chinese government has a lot of money. the chinese stock market is relatively small compared to the size of the overall economy. it china wants to continue along this road of essentially nationalizing their stock market, they can do that, but they are injecting massive amounts of inefficiency into the economic system.

if their goal is to shift their economy from a command economy into a market economy, which is definitely what they need to do and they are moving in absolute the wrong direction. alix: what should they be doing? jamie: the chinese government has a plan that they articulated quite well about moving to a market economy. if they do that, and the market needs to find its value. alix: what kind of signal of that sin to investors in its own people if what they are doing does not actually work? jamie: it's a big no-no because the chinese government owns a massive increase in the stock market. they were pushing the increase in the stock market. they were encouraging retail investors to invest. the reason was they wanted to handle china's big debt problem and by shifting debt to equity, they wanted to lose consumption and get resources to small and medium-sized enterprises. once the chinese government went all in and encourage people

to buy into the bubble, that may own blood bubble. when they started the very natural correction, the values of the chinese stocks were just completely out of lack. -- out of whack. then they had to own those evaluations. they want to have a market economy, they have to trust the market. alix: what is the risk of not doing anything? charted the shanghai composite versus copper prices. they did not always move in tandem. they just started to this year very intensely. as the selloff intensified in the shanghai composite, the orange line is the copper price. copper got really hammered. in cannot sell a stock china. you're going to short and sell copper instead. there are a lot of ripple effects in here if the government does not intervene. jamie: it is not do everything or do nothing. the question is -- what is the right mix of things to do? somewhere in the middle. they should be decreasing interest rates could they are

right to lower bank reserve ratio requirements. to go in and basically forced brokerage firms to start buying overvalued shares, in my mind, that is a really dangerous thing to do. and more broadly, people in china and investors around the world are starting to lose faith in the ability of the chinese government to manage their very complex economy. you have grown their economy, very, very well. they have one set of instincts of a top-down authoritarian so my market economy. to get to the next phase of chinese economic growth, they're going to let markets do some of that work a lot more than they are currently capable of doing. alix: we will see. thank you so much, jamie metzl. up next, we are going to head to the north pole. we will break down just how important this region is to the global economy. ♪

alix: welcome back. i am alix steel. let us begin with a look at some of the top stories crossing the terminal at this hour. president obama now has enough votes in the senate to uphold the iran nuclear deal. democrat barbara mikulski of maryland is the 34th to sign on. if republicans vote to reject the deal and the president vetoes it, he will still have enough votes to sustain the veto. this morning, secretary of state was in philadelphia looking for support of the deal. sec. kerry: president obama and i are convinced the on any reasonable doubt that the framework that we have put forward will get the job done. assessment, we have excellent company. congress is expected to vote on the iran deal later this month. shares of h&r block arising

today. the largest tax preparer in the u.s. has announced a long-awaited share buyback plan. they will buy back 1.5 billion of stock, 60% of its market value. there is a controversy of the new will smith movie "concussion," a story about football hedge from a. sony says the movie will not softened to placate the national football league, which is accused of hiding the nature of the game. e-mails from hackers, sony deleted moments that were critical of the nfl. those are your top stories. president obama is wrapping up a three day arctic trip. during his historic visit, the president called attention to how climate change is affecting the region. some are criticizing the trip as a bit hypocritical because it comes after the administration granted royal dutch shell permission to drill in the arctic. charles e binger is at the brookings institute and he joins

us now from washington. charles, welcome. thank you for joining us. whitey think we need to drill in the arctic? charles: we need to jewel in the arctic to find out what potentially may be there because despite the current glut of oil in the world market, most out on ans 10-15 years global basis still forecast very germanic increases of oil demand that cannot be met by the current levels of supplies available. least --e, this is a at least trying to assess how important the arctic may be. our u.s. geological survey and number years ago now still believes a substantial portion of the world's remaining undiscovered oil and natural gas lie in the arctic. alix: what do you say when people come out and say it is hypocritical of president obama to be supporting climate change and alaska and all of a sudden allowing drilling in the arctic

that cannot begin for the environment at the end of the day? charles: you have to separate the local environment to implications of drilling from climate change. the reality is -- when carbon dioxide is released in power plants and by automobiles and other industrial processes worldwide, the way that carbon dioxide goes into the atmosphere concentrates in the polar regions. much of what is happening in climate change in the arctic is really because of what is happening in the subarctic. or even here in the united states. talking about the risks of an oil spill from drilling like we have in the gulf of mexico, that is of course a very severe risk in the arctic could you may have to clean up oil if that were to occur. ice conditions, which make the cleanup much more difficult, and much more expensive. if it is done properly and there is drilling in the arctic in sound, ir longtime

personally believe it can be safe, but it needs vigorous monitoring and vigorous regulation. keep in mind that shell, getting ready to drill now in the arctic -- they brought these leases -- bought these leases from the federal government. they were awarded in good faith. to now turn around and say after shell spent nearly $7 billion that you cannot drill, it certainly would not be good public policy. alix: they're going to spend a lot more if they wind up drill and if you're at the as of the day, it is very expensive and we yearinventory at a record for 50 million barrels. i understand oil demand will grow, but demand for alternative energy is going to grow as well. what are the chances we are wrong and we do not need as much oil as everybody thinks and we will be destroying the environment? thates: the key point is drilling for oil in the arctic -- we are not talking about drilling for oil.

even if we found that come on we are not talking about oil that is going to enter the market anytime soon. all the major oil companies that are drilling in the arctic are looking at the arctic as part of a portfolio 10, 20, 30 years from now. we should not look at the short-term market considerations today and ask why we are drilling in the arctic. probably nobody would jewel in the arctic today if they were becauseady investment you in the $90-$100 a barrel to make this oil long-term efficient the oil industry. this is a thing that the industry is look at as a long-term way of helping me global supply and demand, which is still projected to be 10-15 be 10-15m now to million barrels a day higher demand than we currently have in the world today. alix: thank you so much for joining us, brookings institute

charles evans. amazon double down on -- buttons. does that mean that feature is clicking with consumers? ♪

doing all he can to drive customers to its prime service. ted that end, the company has dramatically expanded one of its features. sh buttonsmaking da available to all prime subscribers which allows consumers to order and reorder products with 1-click. it makes them virtually free. we are joined now from what appeared can we talk about how more. can we explain how this works? etty: you press the button and

they are adding hefty trash bags to another item that you can buy through this button. also, icebreakers minutes. a bunch of random products essentially like tide detergent is something you can do. it is convenient. system thatether a you are not going to -- your two-year-old is not going to keep pressing a button and you will have a mouthful of trash racks. it is part of a step of amazon and others to create a connected home. alix: does that mean they are expanding it? betty: it is working and what a great deal and convenience. another product that amazon is going to lose money on. they are basically giving you this money for free. $4.99 and you get that rebate back. for them, it is another part

four of amazon prime subscribers and another way to say to sign on for our membership. this is something else that you get . it is jeff bezos's plan to cover everything in your life. this is just being the latest. alix: that is dangerous for being in impulse shopper/ . i will be joining you at the top of the hour. we have a very exciting guest -- and was. -- ed morse. betty: he has never been one to mince words about the oil markets. he has been warning about this decline in oil and he says we are not going to shake the output levels that we are seeing until we get to around $30 a barrel. we are in the 30's here and he says there is a possibility we might see oil in the 20's before finally something gets done on output and we start seeing a slow and gradual and possibly

rocky rebound. alix: i love his writing and i'm really excited we are talking 10. in the meantime, it is time for today's options inside. let us get right to matt miller. matt: let us take a quick look at how the major averages are doing right now after the big drop we had yesterday. the worst beginning to september and 13 years. we are coming back a bit -- a gain of half a percent on the s&p gives the dow jones industrial average of 117 points and the nasdaq of most -- almost one percentage point. joining me now is chaired of the bcg partners. he has a take that you might like. maybe this is all behind us from a volatility perspective. index had its biggest monthly gain of all time in august good and actually happened anything it was too much. >> absolutely. there was no reason to justify

the selloff in equities. we talked about how the price of vix options hidden all-time high. people were buying these calls wherever they could. now we are seeing a real falling out in markets as the indicators hit a new low today versus the recent spike. this suggests as well that people are coming in to start to sell some of this and it is finally coming up in the market action today justifies that .oul matt: sometimes i'm not worried about how i think should be, but how others think it should be. the chinese currency was overvalued and they take it down a couple of percentage points in the entire global equity market sells off like $7 trillion in assets. we have the worst august on the doubt in 17 years. absolute -- i cannot think of any words to say, but

it was horrible. what if that happens again? if they have a bad factory gauge, everybody tanks and global devaluation of currencies. jared: certainly not the u.s. and arguably not in china. we know the growth spurt has been in bad shape for quite a long time. stepsave been taking some to not rebalance as aggressively as they work and it's arguably a positive. what matters more and the real catalyst for this is that you have target volatility funds, risk parity funds, all of whom were as aggressively position in the summer to on wild those hedges and they got burnt pretty bad. they've actually rebounded. there are not many sellers that i can see that would be catalyst for another letdown. matt: everything has basically shaken out? but aftertargets: us, all, it was an entire month, including yesterday. we will do that and to august.

it is all behind us? jared: to justify the option prices people are paying, you have the s&p 500 selling off 1% every day. haveis not something you in a really dire recession. at some point, there are people who will care about fundamentals and valuation that notice that the u.s. is on a tear. there's housing, tax receipt wages all looking up. matt: you can argue about what is going on in asia, but the volatility has spread to places where it has absolutely no business being. you brought in a trade that kind of highlights listed jaredthis. is a great maxx example of this. three quarters of their sales come from the u.s.. volatility overall got to some the highest levels in recent years. it is not justified given the fundamentals of the company. if you like names like this, you can sell options here. to get in on capitalizing those rich premiums. six or 10.5 that

foot spread and sell it for a lesser turned into october the volatility comes in. matt: thanks for coming in. i appreciate your time. day""bloomberg market after the short break it after w. after we recover from yesterday's drop, stay tuned to bloomberg television. ♪

good afternoon. betty: welcome to the bloomberg market day. a partial comeback after yesterday's big fall.

we will take a look at what is next. >> oil prices resume there's life after government reports show u.s. crude inventories climb the most in four months. betty: president obama got iranh votes to ensure the deal survives in congress. alix: good afternoon. betty: what i write yesterday from the markets. ride yesterday from the markets. one of the steepest drops this year. we may be catching a break as the china market's close in the next two days because there is a big military parade being organized. again for the s&p as well as h&r