alix: i am alix steel. joe: i'm joe weisenthal. alix: another crazy day, u.s. stocks closing lower. and apple slumped after unveiling new products. joe: the question is -- "what'd you miss?" it is all about apple. a new wave of products. investors are not impressed. can the biggest company lead again? alix: citigroup makes a bold call.

a 55% risk china will spark a global recession. we will dig in the report. joe: we just witnessed the worst commodities slump. how did this rout affect copper? alix: we begin with the markets. joe, first of all good to have , you back. getting back together. take a look at this extreme decline we saw in the doubt. at one point, the dow was jumping 172 and now we're closing lower by 237. it is like a 400 point swing on relatively little news. there was no catastrophic news. joe: it really wasn't. it felt like the volatility was going behind us. we hit a big global rally. huge night in japan. over 7% in the nikkei. gains in china. it looks like we would have a solid day. yeah, the markets open higher in

the lower and really crumbled. alix: you can really blame a lot of that on apple. i want to take a deep dive into my terminal. the s&p versus apple intraday. at the beginning of the day, they were moving on. s&p is the yellow line and apple is the white line. as the product announcement came out, the guys were tracking each other. it hit session lows at around 2:25 p.m. when you had tim cook talking about the iphone. it came after lows. we cannot hold a sustained move and both drifted lower on the day. it represents 8% of the nasdaq and 4% of the s&p. this chart identifies the s&p's trajectory. joe: apple has not been the markets leader it has been in past years. when apple went, so did the rest of the market. another thing i want to talk about, u.s. two-year yields.

we have been talking about is a rate hike coming? it is sensitive to rate hikes. typically, we have this volatility, september seemed unlikely. you would expect rates to below. that is not the case. as you can see here, two-year yields are at their highest level since 20 year -- since 2011. for the year highest of the year , and from last year. the market is starting to get for a rate hike. we have not seen that action. people are getting ready for this. alix: deutsche bank saying to the fed will likely wait after september for a rate hike because of volatility. the market does not seem to be believing the calls. joe: another thing i want to look at for another chart, something -- alix: double deep dive. unprecedented. joe: this is something we talked about yesterday.

job openings and labor turnover survey, it is surging. at 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 lower. the labor market is getting tighter. alix: then may be bigger wages. i'm going to a double deep dive. it's my turn. my terminal is the percentage of stocks on the tokyo exchange sold short. tokyo had a huge move today and the nikkei up 7% intraday and a lot was due to short coverage. take a look at the percentage sold short. let me zoom in. you saw a percentage over 40.

here's the 40 line. it has decreased by 10% in one day. that has to be short covering. meaning that rally short covering not fundamentals. jp said real 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 as to what was going on yesterday. alix: thank you. back to one of the top stories -- apple. cory johnson was there all day. cory: let's get context. apple is in an interesting position because they have been so successful.

they have big numbers to top. apple is a very different company than it was a year ago and the world is very different when it comes to smartphones. apple, with the release of the iphone 6 and 6 plus really changed the game for this company. yes, the company got 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. all about iphone sales. any movement good or bad will have dramatic move. this product release was very important because the iphone is very important to apple. similarly, 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.

they have a big product in china that is now 1-year-old. is the new product a reason for people to upgrade? or can they grow the market? that's how you look at how the world has changed. smartphone sales are going down from 28% to 10%. in china, smartphone growth will go from 20% to 1%. and throw in the complications of the last few weeks in china. the devaluation of the yuan is a price hike. the global enviroment, it really raises the stakes. joe: there was a lot of guffawing that apple introduced a pencil and steve jobs expressed disdain about that. steve jobs: a stylus, right?

we're going to use a stylus? no. you lose them. yuck. nobody wants a stylus. joe: that was from 2007. what does it say about apple? cory: 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 would not have a bright, shining leader, but the leader would not be able to contradict. apple has done this in a lot of important ways.

whether the stylus that steve jobs had disdain for or 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 of maturity that the company thinks users want to use a stylus and pointing a finger is not enough if you are doing detailed work. there were lots of third-party keyboards and styluses or styli? what is it? alix: styli. i won the latin award in high school. cory: they were already styling and selling stylus. alix: good stuff. you look at that up and let us know. joe, apple is negative down 0.2%. joe: cory johnson live from the apple event. alix: talk about a hot commodity, it comes from a whale and could cost $10,000? that answer might surprise you. ♪

alix: i am am alix steel. joe: i am joe weisenthal. alix: we told you certain products of whale could rake in $10,000. joe: it is whale vomit. yes, vomit. this particular specimen was found off the coast of wales and is a hot commodity. the so-called amburgeys is used to make scents. alix: $10,000 is no joke. serious cash for whale vomit. joe: whale vomit. alix: secretary of state john kerry said the u.s. will increase the number of refugees

it takes than as america's allies in europe struggle to accommodate the thousands fleeing violence in the middle east and africa. secretary kerry said president obama has made it clear he wants the u.s. to have a leadership role. joe: puerto rico's new plan shows a $13 billion shortfall for debt payment over the next five years. that is after taking into account revenue. no estimates for potential losses for holders of puerto rico's $72 billion worth of debt. alix: mcdonald's is planning to switch to cage-free eggs. in march, the company announced plans to use antibiotic free chickens and they agreed to pay raises for workers at the company owned stores. those are your top headlines. joe: joey lake is the global

economist. citi came out with a call that said a 55% chance of a global recession thanks to the slowdown in china. what do you make of it? joseph lake: eye-catching, eye-grabbing number. i disagree. the globe economy over the next year will see a really big rebound. it is a real inflection year. i would not go 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 we have seen is china global share has

increased over recent years. even very recently, it continued to grow at the extent of the eu and u.s. why does that not suggest that china could catch a cold it would affect the entire world? joseph lake: there are 2 stories. 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 would say the stock market is not the economy. not to be too sanguine, not a good indicator of the chinese economy. the second is the intervention on the currency that was a misstep by the chinese government. and we are bringing down 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 see about electricity output and freight volumes which are going to be less good than we saw in the past. it is a smaller sector of the chinese economy. services now are half of china gdp. that's the sector to watch. alix: fascinating. as we see here in the u.s. part of the citigroup note was the powerhouse that china is, there's a ripple effect to other countries. look at my bloomberg terminal, 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. $620 billion. other struggling countries as well. brazil has $92 billion worth of exposure. russia, $93 billion of exposure. those countries are already in pretty bad shape.

joseph lake: a bad year for emerging markets. it is not a surprise. 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 next year. 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, who said despite the news about the yuan devaluation, they're

not using the weak yen to spur exports. i am going to go to my terminal for a 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. brazilian rail, the rand, and rupiah have all fallen. this concern is that if china wants to catch up with other players that further devaluation, is it something we could see? are you worried? joseph lake: no, it is not a winning strategy for china. their wages are going up. we will see the shift toward domestic consumption and they need to stimulate the domestic economy and drive economic growth. there is no turning back the clock and china can not to be in export driven model anymore. alix: you seem a little sanguine on china, why is it keeping you up at night? joseph lake: but to counteract

some of the wild headlines. what keeps me up at night, i like to think about the long-term picture and we talk about china a lot and the u.s. and eurozone. one thing to watch is the rise of africa and the demographic profile over the next few decades is incredible. africa is 16% of the globe economy right now. by 2100, 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 this map of the midwest. what does it show and what does it mean for major commodity? the answer is next. ♪

alix: i am alix steel. joe: i am joe rosenthal. alix: we asked, what does it mean for a major u.s. commodity? joe: it show corn crops which are shrinking in indiana and illinois, almost 3% smaller. too much rain is the reason but despite the drop in supply, the 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 is trading near six-year lows after china devalued its currency, a global stock sold

out. according goldman sachs, prices could decline further 15% by the end of 2016. i want to take a look into my bloomberg terminal to look at destruction we have seen for the forward curve. this orange line is what [no -- what investors think copper will be worth of the next 10 years. this agreement line is what they thought it would be worth. you could see a huge shift. we will see $5,400 terms. the idea is real destruction happened. joe: a major reevaluation of the state of the market not just in the short term but looking at the future. ne, a joining us is dab commodities research analyst. what do you think about the forward curve chart i just showed? bank of america calling for

$4000 ton of copper. guest: i'm excited to be here. it seems like for the copper market, the bad news keeps coming. we have seen a continual deterioration of price. if we were to rewind the clock back to the first quarter, our daschle barclays said -- barclays said the average price would be around $4300. look how low it has gone. the fall in the copper price in one country that is china. the chance economy has really deteriorated and that is weighing heavily. $6,300, the problem not anticipation of how bad it would get? dane davis: we assumed of the chinese the company would slow economy but a slow down. a slow slow down. not a rapid deceleration. if we look at the first half of the year, that's what we saw. around mid-june to july, the economic conditions, the

manufacturing pmi, it really started to deteriorate and rapidly and the copper price. alix: explain to me why we see a premium for copper in china versus a premium in 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 and 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. there is a desire for the product and if they are 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 has not collapsed. it is certainly not strong enough to justify the strong premium. instead what we think is , happening is the smelters, the people who produce within china,

are refusing to sell within a weak price was holding the metal, they are trying to play the weak price. thus, driving up the premium for copper. alix: i love it. there are making the product and not selling it distorting the , market. good stuff. thank you, dane davis. we will be right back. ♪

alix: i am alix steel. joe: joe weisenthal. the question is -- "what'd you miss?" alix: the rate decision of england is coming tomorrow. we will get the minutes. we know nothing seems to happen interned of the array type. we want to hear about the recent volatility and 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 thing you do not want to miss is the bloomberg consumer confidence comfort index comes up. people pay a lot of attention. bloomberg also has a consumer confidence comfort index. we want to figure out how much the recent stock market volatility is affecting household and how people feel about to the economy and consumption and all of that. we will get another glimpse of insight with tomorrow's report out at 9:45 a.m.

pay attention. alix: maybe manufacturing will get hit. if we still buy stuff. our producers are making us say the nfl starts tomorrow. joe: that is all for "what'd you miss?"

>> from our studios in new york city, this is "charlie rose." ♪ conductor world-class who is been a general direction mariinsky theatre of the since 1996. in 1998 became the director. conductorressed with doctor of the london symphony orchestra. in 2000, he had a vision for a new opera house which after several technical setbacks opened on his 60th birthday. it