alix: another crazy day, u.s. stocks closing lower. apple slumped after unveiling new products. joe: the question is -- "what'd you miss?" it is all about apple. new ways of products. investors are not impressed. can the biggest company lead again? alix: citigroup makes a bold call. we will dig in the report for you joe: the lowest commodities slumped. how did this rout of fact copper? alix: we begin with the markets. good to have you back. getting back together. take a look at this extreme decline. at one point, the dow was jumping 172 and now where

closing lower by 237. it is like a 400 point suing on relatively little news. news.astrophic joe: it really wasn't. it felt like the volatility was going behind us. we hit a big global rally. huge night in japan. huge nikkei. in china. it looks like we would have a solid day. really crumbled. alix: you can really blame a lot of that on apple. i want to dig into my terminal. the s&p versus apple intraday. as the beginning of the day, they were moving on. smp is the yellow line and apple is the white line. as the announcements came out, the guys were tracking each other pretty it hit session lows at around 2:25 p.m. when you had tim, -- tim cook talking about

the iphone. movennot hold a sustained and it drifted lower on the day. 8% of the nasdaq and 4% of the s&p. this chart identifies the trajectory. joe: apple has not been the markets leader it has been in previous years. when apple went, so did the rest of the market. another thing i want to talk about, u.s. two-year yields. we are talking about is a rate hike coming? to rate hikes. typically, we have this volatility, september seemed unlikely. that is not the case. as you can see here, two-year yields are at their highest level since 2011 per year highest of the year and from last year. the market is starting to get rid for a does ready for a rate

hike. we have not seen that action. -- a rate hike. people are getting ready for this. alix: deutsche bank saying to afterd will likely wait september. people are not believing the ills area joe: another thing want to look at for another chart, something -- alix: double deep dive. joe: this is something we talked about yesterday. job openings survey, it is surging. after the end of the chart, the number of unfilled jobs, job openings is surging in america. this is a sign the labor market is getting better and tighter. usually the market does not move on this report because it is not a top shelf data like the jobs report. the markets got a lower. the market is getting tighter.

alix: they may be bigger wages. i'm going to a double deep dive. my turn. percentage of the stocks on the tokyo exchange sold short. move today ande the nikkei up 7% intraday and a lot was due to short coverage. the percentage sold short. let me zoom in. you saw a percentage over 40. the 40 line. it has decreased by 10% in one day. that has to be short covering. that's rally short covering not fundamentals. rail money participating was minimal and market subject that you cannot really believe. joe: this is good information because people will watch the nikkei open tonight and will give flavor. alix: thank you. back to when the top stories

every apple -- apple. cory johnson was there all day. you saw a relation between the as if he and apple in the way it had no stocks. why? : let's get contacts. apple is an interesting position because of their been so successful. apple is a very different company than it was a year ago in the world is very different when it comes to smartphones. apple, with the release of the iphone 6 and six plus really change the game for this company. yes, the company got better -- bigger but dramatically so, so much so with a big growth in the phone that it represented half of the company to almost 2/3. any movement good or bad will

have dramatic move. product release was very important because the iphone is very important to apple. the world is very different. iphones are selling in china for the first time with a new release a few weeks last year selling the iphone 6 in october after a september release. that is a big deal because now well over 20% of the company's business is derived in china. china that isin now one year old. --the new private a reason product a reason for people to upgrade? that's how you look at how the world has changed. smartphone sales are going down to 10%. in china, smartphone growth will go from 20% to 1%. and role in the complications of the last few weeks and china. the valuation of the deked

evaluation of the -- devaluation of the yuan is a price hike. it really raises the stakes. guffahere was a lot of wing that apple introduced a expressed steve jobs disdain about that. --ve jobs: ace dallas, right a stylus, right? we'll use that? no. you use the -- you lose them. yuck. nobody wants of them. joe: that was from 2007. what does it say about apple? it says good things about apple. steve jobs could easily decide he did not agree with steve jobs

of yesterday and contradict himself because he was steve jobs. the worry when steve jobs died for the company was not that they were not have a bright, shining leader, but the leader what not to be to contradict. in an a lotne this of important ways pretty ortainable, steve jobs streaming music. steve jobs said people want to own their music and not rent it. he was wrong. spotify proved that people want access and willing to pay a subscription to keep it. it is a sign a maturity that the company things users want to use a stylus and pointing a finger your door ah if detailed work. there were lots of third-party keyboards and styluses or styl i? what is it. alix: styli. i won the latin award in high

school. cory: they were already styling and selling stylus. alix: good stuff. look at that up and let us know. joe, apple is negative down 0.2%. live from theson apple event. apple bank talk about a hot commodity -- alix: talk about a hot commodity and could cost $10,000? that answer might surprise you. ♪

am am alix steel. we told you certain products of whale could rake in $10,000. joe: it is whale vomit.

yes, vomit. it was found of the coast of wales and is a hot commodity. the so-called amburgey is is used to make scents. alix: $10,000 is no joke. serious cash for whale vomit. vomit.ll -- whale secretary of state carrie said the u.s. will increase the number of refugees as allies in europe struggled to accommodate that thousands fleeing violence. secretary kerry said president obama wants the u.s. to have a leadership role. rico's new plan shows $13 billion shortfall over the next five years. if it are taking into account, revenue. no estimates for potential losses for holders of puerto

rico's 72 billion thousand worth of debt. mcdonald's explained to switch to cage-free eggs. in march, the company announced to use antibiotic free chickens and they agree to pay raises for workers the company owned stores. those are your top headlines. joeyjellylike is the -- lake is a -- chance of a global recession thanks to the slowdown in china. what do you make of it? guest:ank such i -- eye-catching, i grabbed the number. i disagree. the globe economy over the next big will see a really rebound. it is a real inflection year. so far as say a

recession. we are seeing rebounding of drivers of growth away from emerging markets and toward the developed markets. the u.s., japan, eurozone, are all growing this year. and for the first time since 2010, the burden shifting away from emerging markets. joe: one of the things web scene share haslobal increased over recent years. very recently, it continued to grow at the extent of the eu and u.s. thatoes that not suggest china could catch a cold it would affect the entire world? joseph lake: the long-term of a china slowdown and the last two or three months with panic of china. we are panicking because we do not know what is going on in china. three stories. a stock market crash. i was say it is not the economy.

not a be too sanguine, good indicator of the chinese economy. the second is the intervention on the currency that was a misstep by the chinese government. bringing a forecast on that. not leading to recession. the third is statistics you mentioned, the slowdown in the industrial sector in china. the story there is not the same as 10 or 20 years ago. services is driving growth. you will the about electricity output and freight volumes which are going to be less good than we saw in the past. is a smaller sector of the chinese economy. services now are half of china gdp. a factor to watch. alix: fascinating. as we see here in the u.s. part of the citigroup note was the power how that china is,

there's a ripple effect to other countries. terminal, bloomberg it takes a look at the global trading partners for anyone country. you can see the u.s. is most exposed with about $620 billion. other struggling countries as well. brazil has 92 billion dollars worth of exposure. russia, $93 billion of exposure. those countries are already in pretty bad shape. a baddie year for emerging markets. we knew it would be a bad year. but they are hit by a couple of new trends including the fed rate hike which is priced in. this is not a surprise to anybody if you were not expected that, you were not paying attention. that is standard economics. the second factor is commodity prices. brazil and russia, oil prices declined.

4 consecutive years of falling commodity prices. the good news is you will see an uptick in fear. standard commodity cycle and the next year, not a big increase but a gentle uptick in prices which will help a lot of emerging markets. joe: one of the headlines was from the chinese premier, despite the news about the yuan devaluation, they're not using the weak yen. terminalg to go to my for moment and look at this chart so we can bring it up that vastly shows it has the yuan in red, and it has hardly fallen. andilian rail, the rand, rupiah have all fallen. this concern is that if china wants to catch up with other devaluation further , is it something we could see? are you worried? joseph lake: no, it is not a

winning trend for china. their wages are going up. we will see the shift toward domestic consumption and they need to stimulate the domestic and drive economic growth. there is no turning back the clock in china can not to be in export driven model anymore. see a little sanguine on china, why is it keeping you up at night? but to counteract some of the wild headlines. , it keeps me up and night like to think about the long-term picture and we talk about china a lot and the u.s. and eurozone. wanting to watch as the rise of -- one thing to watch is the rise of africa and the demographic profile over the next few decades is incredible. 16% ofis 60% of the that the globe economy right now. half of the people the world will be living in africa.

that is an incredible opportunity for investors and difficult challenge for a lot of african governments to try and find jobs for the booming labor market. alix: what keeps you up in a positive way. thank you so much, joseph lake. joe: look at it this map of the midwest. what does it show in what does it mean for major commodity? the answer is next. ♪

alix: i am out and still. joe: i am joe rosenthal. as to what does it mean for a you was commodity? joe: corn crops which are shrinking in indiana and illinois, almost 3% smaller.

too much rain is the reason but despite the drop, global commodity -- global commodity means it is cheaper. the map that used to show the government estimates were off and people trying to get every inch by looking at crops from space. alix: they are going to harvest some. it is time. corn of course not the only commodity feeling pain. copper trading near seven-year lows after china devalue its currency a global stock sold out. according goldman sachs, prices could the client a further 15% by the end of 2016. look at the destruction we have seen for the forward curve. [no orange line is what audio]

joe: a major reevaluation of the state of the market not just in the short term but looking at the future. alix: joining us and a commodities research analyst. what do you think about the forward curve chart i just showed? bank of america calling for $4000 turn of copper. guest: i'm excited to be here. it seems like for the copper market, the bad news keeps coming. to terrycontinued ration and price. if we were why the clock back to the first quarter, our cleat that the average price would be around that barclays said the average price would be around $4300. look how low it has gone. price inin the copper one country that is china. the chance economy has really

deteriorated angela's content to deteriorate. the six of $300, the problem not anticipation? dane davis: we assumed of the chinese the company would slow economy what a slow down. a slow slow down. not a rapid deceleration. the first half of the year, that's what we saw. to july, thene economic conditions, the manufacturing pmi, it really started to deteriorate and rapidly and the copper price. explained to me why we see a premium for copper in china versus in a london? it does not make any sense. dane davis: that is a great question. i do not know if you remember scooby doo, always the obvious solution is then they found a at the end of the episode, it was

not obvious. with a copper premium, what it signifies is the downstream demand in china is very healthy. a desire for the product and willing to pay a premium. what we think is happening, what barclays is saying, if we look at our survey data and talk to people on the ground, the demand is weak. it is certainly not strong enough to justify the strong premium. what we think is happening is the smelters, the people who produce within china, are refusing to sell within a week price was holding the metal, they are trying to play the weak price. alix: i love it. there are making the product and not selling get distorting the market. good stuff. thank you, dane davis. alix: we will be right back. ♪

alix: i am alix steel. joe: joe weisenthal. "what'd you miss?" alix: the rate decision of england is coming tomorrow. we want to hear about the recent volatility in what the bankers really thought about considering they want to raise rates sooner rather than later. joe: it is fun to see the vote split. another day you do not want to miss is the bloomberg consumer index comes up. bloomberg also has a consumer confidence comfort index. how mucho figure out the recent stock market volatility is affecting household and how people feel about consumption and all of that. we will get another glimpse of insight with tomorrow's report

out at 9:45 a.m. alix: if we still buy stuff. sayproducers are making gus the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20.

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