from bloomberg world headquarters in new york, good afternoon. chinas where watching -- abandons the circuit breakers adjustment in place to prevent stock market plunges. do they have control of their capital markets? risky assets under pressure, tomorrow's u.s. job becomes more critical. will it provide relief added stress. ? erickson sees a future in the internet of things. the ceo will join us from the ces in las vegas to tell us what he is doing to capitalize on it. need to begin with the market selloff take place across global equities. julie hyman is tracking the damage. substantial but less than you would have thought at 6:00 a.m. to drop in futures

and european markets shelling off sharply. not stocks are down but down nearly as much as had been indicated. we are seeing the nasdaq which is consistently leading declines down by about 16% and there is a concern about global growth that was emphasized by the chinese decision to let the yuan devalue against the u.s. dollar signaling their concerns about chinese growth and potentially global growth. if you look at the chinese sessions, this is the past week. we have the circuit breakers activated for the first time on monday and were activated throughout the week and then there was today. we saw only 29 minutes of trading today before the stocks ing the trigger full-day closure and now the circuit breaker system has been suspended. it should be a wild ride when

chinese stocks open overnight. as you look at the yuan and the appreciation of the dollar, here is the movement you thought. scarlet: amid all this is that we have been seeing crude oil hitting $32 per barrel and then bouncing back? julie: that's what's fascinating. this selloff made sense because we saw this concern about global growth that would affect commodity prices. then it came back and8 out's down another/10 of 1%. the energy stocks briefly went positive. ofy are down another 3/4 1%. looking at volume, it is indeed substantially higher than the 100 day average.

this is the group volume versus the 20 day average. volume in each group is up and in particular consuminer discretionary. scarlet: energy is the smallest increase in by them? julie: maybe the sellers are just exhausted. scarlet: people cannot decide whether to get in or not. julie: maybe tomorrow's jobs report will be a definitive signal. scarlet: i think it will just engender more debate. thank you so much. in on firstheck word news. a man armed with a knife a knife shot and killed by paris tried today as he enter a police station. he was wearing what officials and first thought may have been

an explosive vest but the explosives were later determined to be fake. the incident happened shortly after president francois hollande spoke a police colors during a ceremony honoring law-enforcement enforcement officers killed last year in attacks3 it was one. year ago today the 12 people were killed in an attack on the french satirical magazine charlie hebdo. in libya, 60 police and troops are dead after a bomb ripped through a spring center and at least 200 other people were printed. this comes after days after the islamic state launched an assault on the biggest oil in lisbon -- in libya. 17 new york minor stock under graham been safely to the surface. they became trapped in an elevator at the cargill salt mine 40 miles outside syracuse late last night. rescue crews pulled them to safety this morning after 10 hours underground. car gill is the deepest salt mine and the western hemisphere. the company is closing the mind for the rest of the week so it can determine while the elevator malfunction. el niño is giving californians

headaches. heavy rain from the latest storm caused mudslides and flooded roads. san francisco halted its cable cars. the el niño which is a warming of the pacific equals the strongest on record. up with aa has come way to punish north korea for its nuclear weapons test. the south will resume the propaganda broadcasts that led the north korean regime to work north korea hates the broadcasts because they undermine his rule. global news 24 hours a day, powered by her 2400 journalists in the more than 150 news beers around the world. scarlet: thank you so much. china is roiling global markets again. the evercore partners and and ceo weighed in on how chinese policymakers are responding to the swings. >> the risk comes from the fact an administrative rather than a floating exchange

rate. knewre never sure or never what was the true free-floating exchange rate between the yuan and the u.s. dollar or the yuan and a basket of other currencies. it's ultimately, i believe, they will get to that of the world for the rest of the world lives but the transition is a painful transition. david: if the chinese authorities called you up and asked what to do, what would you advise them? >> i would actually advise them to have a less restrictive or wider circuit breaker and see if the market can actually find its bottom. for our markets to shut, we need a 2%ecline -- we need decline and their market shots at 7%. -- we need a 20% decline and

their market shots down at 7%. -- shuts down at 78%. morning, we all align up to get a dinner reservation in a restaurant and put it on auto dial. this is going to be everybody on auto dial to souther their stock tomorrow, that's not a good thing. scarlet: a couple of hours after he spoke, china took action to suspend the circuit breakers. joining me now from washington is derek scissors, scholar at the american enterprise institute and she economist of the china-based book. - beige book. do the chinese authorities have control of their capital markets? >> i don't think in the short-term they do. i mean the next few days.

stock marketse work is these bull frenzies we saw in 2014 and now these bear frenzies, there's not a lot of good information and there's a lot of small retail traders only governments cannot control their movements. month,e course of one the chinese have financial and legal tools to bring to bear. they can keep the market in a certain range over a certain month but over a couple of days, the they get these wild swings. the support measures like making sure the shares -- that the share cell ban stays intact. is that a bad idea? >> it's insufficient. i would argue it's a bad idea but the problem is not in those measures, it's in the nature of the market. the chinese stock market is not connected to fundamentals either

profit or the economy. as no one knows with a proper level of the market is, it's a casino in the ugliest sense of the word. when the government seems to be taking these emergency steps, it disturbs everyone's confidence more. the emergency measures will not work in the short term. they are not really the problem. the problem is it's not a real market. scarlet: contrasted with what we saw in august -- >> there are similarities but the big one was touched on in the previous interview. it's the yuan. if you were going to weaken it, the effect it will have in china , if you are holding yuan, it will become less valuable. then it can't to get enter other currencies. you could sell stocks to get other currency so there is a direct link between the yuan weakness.

they see the threat of the yuan weakening as a threat. driving weaknesses chevy stock weakness and foreign stock weakness and that is the main issue more than shanghai shares. scarlet: that's the ripple effect, thank you so much. up, tomorrow's closely watched jobs report is becoming more critical. it's the year's first major measuring stick for the labor market. cannot help stabilize markets? transportation stocks are driving lower. driverless cars and smart homes need the internet of things. the ericsson ceo will join us from ces in las vegas to tell us how he hopes to cash in. ♪

scarlet: welcome back. we are here in midtown manhattan i bloomberg world headquarters. it is time for the bloomberg business flash. it is the biggest oil producer in the world and imago public. saudi arabia may sell shares in their state owned oil company. uty crown prince says he is in possessing about the idea. nexstar broadcasting group corporation are opposing new terms on their battle to combine with media general. media general agreed to by meredith last year for billions of dollars for the company was to terminate that deals with can proceed with next are. meredith has been unwilling to accept the termination. consumer confidence in yours climbed the week i last posted by improving attitudes about the

state of the economy. the bloomberg comfort index rose to 44.2. that was the fifth straight increase. since 2011. about china has wiped almost $2.5 trillion -- $25 trillion from the value of global equities. it has to be $2.5 trillion. that was a typo. investors are wondering if positive economic data could turn u.s. data around. we have the chief economist at ubs securities and author of " inside the crystal ball." the consumer confidence number was fairly positive and the jobs number comes in friday and there is turmoil in the market.

what kind of jobs market doing to calm things down? >> we need the unemployment rate to stay at 5% or no down maybe to 4.9%. i think it will go down in markets bu would be relieved. the consensus estimates art hundred thousand. estimatessensus 200,000. lose thell not construction jobs you will typically lose. theuding that factor, public remains in good spirits. it's partly because the labor market remains healthy despite the international problems. what point does the turmoil we see in the stock market in the u.s. and globally cause employers to slow down or stop hiring? your employers who are

involved in international trade already are holding the line on hiring. that's not really new but what we have learned in the last number of months is that even , commoditiesking prices coming down, all the turmoil in the market and china -- even with that, american employers are still willing to hire and americans are willing be competent about the economy did sometimes i think you have to distinguish between sentiment on main street and sentiment on wall street. main street is more optimistic than wall street right now. let's talk about oil prices which have a low of $32 this morning. we have not seen lower gas prices provide the boost to spending you might have thought would happen. do we get that when oil goes down past $32? the american automobile

association estimates that drop in gasoline prices last year -- coulde been who have $115 billion into consumer pockets. it was not all spent a lot of it was. whether you are satisfied with what the retail sales looked like last year, they would not have been as high as they were headed not been for this cutting gasoline prices. the overall retail sales were still disappointing. the cut in gasoline prices was not enough to give you a strong lead in retail sales but it kept them stable. scarlet: the fed prefers not to factor in oil into its inflation forecast. there are some people who now argue that the transitory effects of the oil drop on inflation or maybe not so transitory. they seem to be having a permanent effect.

that oil has a limited effect on what we call the core inflation which is what the fed follows. it's inflation excluding food and energy. it affects the transportation like the air transportation part of the cpi but that is a relatively small component. cpi ,3/4 of itr are services and those services are not going to be much affected by the price of oil. scarlet: just less sensitive? >> yes, the service that is affected as airlines. costsass on lower fuel and they lower airfares. part, the items in the course cpi are pretty insulated from oil. reflect more likely to

what's happening to wages rather than oil. scarlet: i need to ask you about interest rate check should. laster ended with a 51% chance of a march rate increase. thewirp function and the march rate increase chance of going down to the 1%. -- 241%. hat to 41%. the fed willink move four times this year, once per quarter so the next move would be at the march meeting. what will be most important for the fed is how the domestic economy looks in the labor market. will we see a pickup in wages? i think we will probably see healthy job growth. scarlet: will we get year on year earnings? >> we could.

we calculated that if 2 you have a/10 increase in average yearly earnings coming that gets you around to aid year-over-year. scarlet: thank you so much. had, it's been a long hard road for transportation stocks. that indexes hitting lows not seen in two years. we will have the details and we will be back with charts you cannot miss. ♪

scarlet: welcome back. it has been a busy day of the markets desk for julie hyman. she joins us now on how things are playing out. when we look at the dow jones, it is an incomplete picture of the market.

it's only 30 members but it excludes a huge sector of the market, the transportation. julie: that trades as a separate index. in transports, we see it back today. this is an average that has been underperforming. it's down about 2% today. looking at the airlines, credit suisse said that airlines have a favorable risk reward scenario. is among theon least expensive in the s&p 500 and here are the top four. it is not helping with global growth concerns and the airlines are falling along with the rest of the transports. the transports have entered a bear market. that happened over the past few days but we see a 23% drop from top to bottom. this chart goes back to the beginning of 2014. we have seen the transport is declining.

look at the same this is not a good sign for the was economy. transports have been below their 50 day moving average since september and the 200 day moving average below -- since may of 2015. some stocks get a benefit of the fed goes ahead with rate increases. julie: unless things don't play out. banku look at thekbw index, it's down today. the consensus estimates for earnings from banks are relatively stale. the biggest thing should be for the capital market banks. they are down the most today. jpmorgan is kicking up bank earnings reporting season. we could see banks benefit but look at the yield curve. the spread between the 10 year and the two-year yield, this is

a chart the goes back to the 2011.ing of th that indicates pessimism about the u.s. economy but also has implications for net interest margins. the banks benefit when that spread gets wider. scarlet: that margin has been razor thin for the last couple of years. what about retailers? oil prices got to $32.10 per barrel. julie: that's not hurting and we are getting limitary numbers from the holiday season and they are pretty good. it looks like the holiday sales were better than estimated. signet jewelers raise the lower end of its forecast. macy's is cutting its forecast but announces 3000 job cuts. activist investors and them to sell real estate.

-- are putting them to sell real estate we are not seeing just the three retailers, it's a broad rally for retail today. maybe this is a verdict of the domestic economy that it is doing ok julie: that's a very optimistic read. we will see if that holds up. scarlet: thank you so much. had, it's all about the internet of things at the consumer electronics show in we will bring you live to the floor the ceo of ericsson to discuss the company's new services to make cities more connected. ♪

when you're on hold, your business is on hold. that's why comcast business doesn't leave you there. when you call, a small business expert will answer you in about 30 seconds. no annoying hold music. just a real person, real fast. whenever you need them. so your business can get back to business.

sounds like my ride's ready. don't get stuck on hold. reach an expert fast. comcast business. built for business. scarlet: from bloomberg world headquarters, welcome back to bloomberg markets. it's all about conductivity in tech. erickson of the world's biggest supplier of wireless equipment

announced three new services at the consumer electronics show. cory johnson is live in las vegas with the ceo of ericsson. right, good to see you. this is not a business to business event. why are you here? our sixth year here. herebody asks why we are in consumer electronics. all of the devices that are connected right now. the consumer needs the conductivity and the need to connect to the network. that's the obvious reason why we are here. secondly, we work with pieces of these

equipment together. we build the type of systems that get benefit for the society. cory: do you have to be involved early on with a company like forward and wi-fi in the car? spend $5ically, we billion in research. we spend time with carriers listening to them and we still do. days, we spend on for companies and utility companies. they are putting new demands on what the net needs to do. when weotally new world think about how transformative the technology is. cory: are those demands discreetly different than the other kind of demands put on the network? and 5glutely, 3g and 4g

are the things we can give. maybe we need to give a low latency. another piece of equipment might need lower power. you might only change it for different reasons. will you a push these meetings people are involved in the actual design? >> any company here would have some people working with wireless technology. orcould be a music company whatever. they would have wireless people thinking how it can benefit them. they will it toward the new technology coming so that's important for us. about your deal with cisco and where is that going? we came off of 14 months of discussion.

confident.are our ambition is by the next two years [indiscernible] cory: i know you guys have said that. i don't see how you get that increase in sales. >> we are in 180 countries. we can leverage that. we can address more geographics. that's a very at immediate opportunity. cory: maybe their unit sales will be greater than that. we would not do it if we did

not believe it. we are to large companies. cory: you guys may be more software focused. >> very much so. 75% of our revenue will be soft services. cory: will they sell your software a lot? >> i think we will have joint development. we will orchestrate everything from the wireless technology to the routers the cloud. -- through the cloud. we will also come up with strength in development. cory: there is development of scale around wireless. andsee that with no kia others. >> it's mind-boggling. 10 years ago, we saw 15 companies that could do this. we're down to the.

ree. the stakes are so high. we also produce many patents. we co-license with everyone. we are spending $5 billion that anybody can use our technology. cory: thank you so much for being with us. scarlet: thank you so much. let's go to the headlines. the united states is calling for new sanctions on north korea after the country's latest claims of a nuclear test. the northhours after korean government said it had tested a hydrogen bomb. the u.s. ambassador to the u.n. on the security council

to pressure on north korea by imposing new and tougher sanctions. british prime minister david cameron is in germany to his camp in changes to the european union. he has committed to holding a referendum on britain's eu membership by the end of 2017. before that, he is seeking a new deal for great britain including welfare limits for other eu nations in an effort to control migration. he wants to finalize a deal at the eu summit next month and hold a referendum later this year. ceremonies were held in france today to remember the charlie hebdo attacks. it was on this day last year that two gunmen stormed the offices of the satirical magazine and killed 12 people. five more people were killed in attacks on police and at a kosher market. issue includes offensive cartoons lampooning muslim fundamentalists, politicians, and catholic priests.

eating lean meat now and it is ok but watch the sugar and salt. those are among the dietary guidelines released by the obama administration today. they back off the strictest sodium guidelines but maintain americans consume too much salt and suggest people consume no more than a to spin of salt each day. the report recommends sugar being no more than 10% of a person's daily calories or about two calories a day. the guidelines are released every five years to help americans prevent disease and obesity. global news 24 hours per day powered by our 2400 journalists in more than 150 news bureaus around the world. scarlet: thank you so much. coming up the next two minutes, the biggest economy in the middle east is shifting and how saudi arabia's trying to rely less on oil as it looks to the future. the chinese volatility is rattling global markets and we

will talk to an analyst that says it reminds him of that nasdaq before the crash in 2000. the jobs report tomorrow's taking on more significance as investors crave good news. mohamed el-erian will join us. ♪

scarlet: you are watching bloomberg. this is your global business report. the world bank is cutting its global growth forecast. we will hear from his chief economist.

more job cuts on the way at barclays and details where they are scaling back to netflix conquers global media markets and where the streaming site is staking its claim. first, let's start with the world bank reducing its global outlook. the global economic prospects report will now grow to 9%, down from the percent that an estimated in june. the agency expects the. coming year. see how ityet to deals with the tightening monetary policy and how much the the dollarids -- how weighs on exports and whether that has an impact on growth in 2016. scarlet: more cost cuts are on the way at barclays. most of plans to close its cash equities business in the asia-pacific region. no word on how many jobs will be

cut. the asia securities operations are not considered profitable and competitive. some positive economic data out of europe -- economic confidence unexpectedly rose in december which is a sign that new stimulus from the european central bank may be providing impetus to the region's fragile recovery. consumer confidence jumped to the highest since april, 2011. unemployment fell to 10 to 5%. netflix as well as way to becoming the first global online television service. on wednesday, it went live in 130 new countries including india, russia, and singapore but the one market has not cracked his china. time for our quick take on issues of interest. the biggest economy in the middle east is shifting. regional tensions make that challenging. the decision to cut to the medic

ties with iran puts saudi arabia front and center. the collapse in oil prices is rattling saudi arabia. for years, the country spent lavishly on wages, subsidies and foreign aid in the first budget under the king suggests a need to cut back and they are forecasting a deficit cut of $87 million. what is the backbone of the economy? it has to get more saudi nationals into the workforce. the government has been pushing for years to get more locals working. the problem is many saudi's lack technical skills and find some occupations beneath them. women are being encouraged to get jobs. women are banned from driving and face-to-face contact with men is traditionally not approved. encouragingnt is investment in their stock market and they're are bringing in more capital into the country. foreign funds are now allowed to

buy shares. the country is weighing an initial public offering of saudi the world's biggest oil producer. it will accelerate as they fight a war in yemen and rna stand up with iran. how much influence will foreign investors have to win of the world's last remaining absolute monarchies? scarlet: thank you so much. this has been your global business report. for more stories, visit bloomberg.com. u.s. markets, let's go to abigail doolittle at the nasdaq. big tex leads the selloff. the worst performing sector's health care. the nasdaq biotechnology is down more than 2.5%. from its summertime peak, the mbi is officially back in a bear market. biotech is down more on a year

to date basis than big tech. apple is the biggest drag on the composite index today. shares are down more than 6% year to date on top of laster's losses. as ubs cuts its iphone estimates , joining other analysts, this puts focus on the company's conference call later this month. the question is whether to buy or sell technology. we communicated with ari wald of oppenheimer and he called a selloff correctly for last year it going forward, he likes the large cap indexes like the nasdaq 100. they are at the top of his buy list and he thinks technology will lead the market higher later this year. scarlet: thank you so much.

up, market technicals and we will look at why the markets are limping into 2016 why the setup was already one that was fairly weak. with the indexes at the months close, what lies ahead? we'll discuss all of that next. ♪

scarlet: welcome back. stock market is roiling global markets. earlier today, the evercore partners and weighed in on how chinese policymakers are responding to the swing and perhaps exacerbating the situation. everyoneggest problem

outside of china has is really two things -- number one, we really don't have transparency as to what the real level of activity in their economy is. you will have knowledgeable people about china appear in print or tv and they will save the growth rate of 6% but it's 3% or 2% or 5%. the fact is, no one is certain because you don't have the level of transparency in data we have in the entire western world. the second thing you have going confidence inf the ability of policymakers to respond appropriately. this started last august which really weekend global confidence in chinese policymakers both andtary and economic policy the actions of the last day or

so have exacerbated those concerns. arehe chinese authorities clear that the currency will decline. as they experience depreciation in the currency, will they make a policy mistake? >> the risk comes from the fact that we have an in magistrate of rather than a floating exchange rate -- we have an administrative rather than a floating exchange rate. we never knew what was the true free-floating exchange rate between the yuan and the u.s. dollar or the yuan and a basket of other currencies. believe,imately, i they will get to that part of the world where the rest of the world lives. but the transition is a very people transition. david: if the chinese

authorities called you up and asked what to do, what it tomorrow or have a longer hiatus, what would you advise them? themwould actually advise to have a less restrictive or wider circuit breaker and save the market can actually find its bottom. for our markets to shut down, we need a 20% decline in our indices. there market shuts down at 7%. that is a very different circumstance. it saps confidence when a market is closed. i assure you what will happen tomorrow morning china time is -- sometimes we all line up to get a dinner reservation in a restaurant and we put it on auto dial or get theater tickets. this is going to be everybody on

auto dial to sell their stock. that's not a good thing. scarlet: that was the evercore partners it in. president. u.s. equities are extending their three-month lows. the s&p 500 is down 1.70%. we may not be revisiting 2008 but we could see a bigger correction says our next guest. he is the chief strategic officer and joins us now with more on the technical angle. a couple of hours after he spoke, the chinese abandoned the circuit breakers. it was aimed at curbing the stock market selloff. in your experience, do stock market circuit breakers work >>? any time you limit people, it does not make them morecalm, it makes them more fearful.

they turned off 29 minutes into trading. they could not trade their portfolios after 29 minutes? that breeds fear. ultimately, supply meets demand. that's where things start to balance out. once demand increases oversupply, things go up. let the market figure out where it's supposed to go. scarlet: let's talk about 2016. it has been an ugly year so far. what was the technical set up. ? >> it was mixed. the bull's point of view was only down 1%. wherefore .5% off but the bearish case was that most sectors were below their major moving averages. people will worried that once the new year's starts, you have to pay your taxes.

most people want to see price discovery but they wanted to be flexible. scarlet: let's get to the part where everyone wants to hear where you see resistance and support. come inside the bloomberg terminal. this is a monthly charge of the s&p 500. talk us through what you see as the support level for stocks. we are at 1962. >> on a micro level, we touched 1954 which is a little above that first redline. see if weoking to could play a bounce off of that but most people are thinking that first redline is last year's lows. i do think people will commit major money until we test that spot. off,we do, if we bounce maybe that could be it but if we break below, the second redline

is around 1775 and i think there is a decent probability we see that. i think any downside move would be contained. youings start to unravel, will see the last re-test but i don't think that happens. there is a 75% we will see 1840 or less than a 50% chance we see 1775. what are the odds of hitting this double top? >> 10%. speaking,echnically do you see anything positive? is there anywhere you might see relief for upside? >> we are looking for clues to where the market could stabilize. traders are watching oil but it made new lows yesterday. every time it does, the volatility increases. we are watching apple. it's been a problem.

it is below 100. i think we get 92-94. that's probably where we look toward stabilization did the feng names were highfliers. there is profit taking and the momentum has left but they are not broken yet. traders are looking for clues and new relationship to trade off of. most of the headlines right now are all week. scarlet: thank you so much for giving us your levels. coming up, china has investors on edge. is more turmoil to come? mohamed el-erian will be joining us after the break. ♪

scarlet: it is 1:00 p.m. in new york, 2:00 a.m. in hong kong. welcome to "bloomberg markets."

scarlet: from bloomberg world headquarters in new york, good afternoon. i am scarlet fu. u.s. stocks feeling the heat on a new concerns about china. can tomorrow's jobs report provided the relief that markets are seeking? to lowerbia looking its reliance on oil. the kingdom considering an appeal for the world's biggest crude producer. and james park will be joining us lightbank from ces in las vegas. first, though, we have got to stay focused on the markets here, because with china letting its currency we can again, we are having a ripple effect through global markets and here into the united states. julie, it has been a steady drumbeat lower since 11:00 a.m. julie: it has been, it has been a steady drumbeat lower all this year, except for outside a

couple days. there is consistent concern about global growth has been going on and that is pushing markets lower today. if you look in the s&p 500 on the intraday basis as well, there is an attempt to bounce off of the lows and it didn't quite make it there. take a look at the s&p 500 intraday to see the trajectory we have seen. we are coming back down. at about we peaked 11:00 a.m. and have been going down since then. take a look at the 10-year treasury. the yield is higher. we have been seeing money flow out of the stocks and into the bonds, which is what you typically see when you are looking for safety. now we are seeing selling of treasuries. there is concern in the market, according to bloomberg reporting, that china, chinese market participants, will be selling some treasuries or unloading u.s. assets.

that might be what is responsible for this turnaround here. finally, the decline we have seen over the past -- although it has often down all that he has not been down all new four days, 11% from on the selloff in the first two trading days of the year is more than 5% that we have seen. really rough start to the. -- to the year. but i can't believe that was 11% in the four-day period. what were the laggards the last 4 days? 4 days, so much pain. julie: so many laggards to choose from. i want to highlight apple. this is the year to date they donee, what have thus far in 2016. a lot of the tech companies and suppliers of apple have also done poorly. one of the stories has been oil. take a look at oil versus natural gas today.

natural gas is higher again on the outlook for cold weather. finally, a quick check on gold, which is still catching the so-called safety bid. gold miners are benefiting from the trade as well. for more perspective on global markets and the china-driven volatility, we are joined by bloomberg view columnist mohamed el-erian, former pimco ceo i know chief economic advisor at alliaznz. does it make sense to you that global risk is being repriced by retail investor psychology in china? mohamed: yes and no. it shouldn't matter to that extent, but the context is very important. scarlet, has been markets that have been conditioned to believe that central bank liquidity will repress volatility around the world. you talked about august to what turned us around in august?

statements from central banks that they would come in. the market realizes that with the divergent monetary policy, there was less scope for volatility repression. anything that happens here or abroad will cause outsized moves in markets. scarlet: divergence means volatility? because we ares, coming out of a regime where central banks were committed to repress financial volatility and push asset prices higher, not because they like markets and investors, but that was the policy tool they were using to try and promote economic activity. we are gradually exiting that regime. scarlet: what is your interpretation of what the chinese government is now doing? it is abandoning the circuit breakers it had just in place to avert these stockmarket selloffs . now basically removing the floor underneath share prices. mohamed: yeah, what it is doing makes sense. the weight it is doing it and

the timing doesn't. it has realized that a very tight circuit breaker, 5%, 7% were very tight limits, would get triggered. the minute it gets triggered, it causes more harm than good. they realized this, which is good news. the bad news is they took it off at a very peculiar time and did so without a whole set of compensating measures. we should tighten our seatbelt because i expect tomorrow it is going to be a very volatile day in the chinese markets as the retail sector tries to exit and government entities try to buy. scarlet: you talk to us earlier in the week about a soft landing versus a hard landing. a soft landing in the financial markets were a hard landing in the financial markets? you could make the argument that we are seeing hard landing in the financial markets right now at the service got me -- excuse me, the industrial economy, could also make a argument we are seeing the hard landing there as well. does that translate into the

services economy, or the chinese government is really focused? mohamed: first and foremost, this is mainly a financial issue in china. it economy is slowing, but is not collapsing. it is important to make that distinction. moreover, the chinese government has lots of policy instruments that caps off-land there, good the risk is that -- that can soft-land there economy. they have lesst influence on the off currency market, and that is of concern to people who follow this very closely. it is still a financial question, but if the chinese don't get the financial markets under control quickly, it could contaminate the real economy. advise: if you were to the chinese regulars and central-bank on how to regain control over financial markets, what would you recommend mohamed: first and foremost, they need to communicate a lot better and more consistently. i think people are confused. you said it, people are very

confused as to what they are trying to do exactly with the financial markets. the removal of the circuit breakers, while it is a good idea long-term, is being done into partial a manner. they need to communicate more and gain experience from other countries who have dealt with this, including talking to counterparts in hong kong. they also need to reassert the structural changes in the economy and that means by definition a slowdown in growth but not collapse in growth. they have to remind people that have significant financial resources to afford short-term policy mistakes. scarlet: do they have to say something akin to what mario draghi said, "i will do whatever it takes"? mohamed: they do, and they also have to clarify how they reconcile domestic and international obligations. they have a long to do list. and judging from what they have done so far, they are moving on it a little bit too slowly. bloombergn today's

view column, you write about tomorrow's jobs report and how it pits mainstreet against wall street. petus for ae fed im gradual rate increase, which is something investors may not want it to that end, what is the goldilocks jobs report look like, then? mohamed: goldilocks jobs report is job increases in the 120,000 to 140,000 range for december, and wage increases that stay around 2%. if we see something stronger than that, then the market will fed hikericing again a in the first quarter and that will tend to add to short-term instability. something weaker, ironically, is that news for the economy and a bad news long-term for companies, but in the short term it will provide some assurance to the market that defect may hold off on the second rate hike in the first quarter. scarlet: what is your best forecast for how things will

play out in the first quarter? mohamed: i think, as we discussed earlier, volatility is back in a big way and it is here to stay. we are coming out of a period where there were lots of june political uncertainties, weakness in the global economy, but all of that was depressed by active central banks. now that central banks are on a ivergent half, we should expect more volatility. that creates opportunities. the one thing to be most careful of, scarlet, and we talked about it a few days ago, the unhinged market sectors, the ones that get hit very hard because the technicals are week. high-yield, emerging-market currencies, energy. you have seen it happen and one has to be careful that that doesn't spread. scarlet: are phenomenal still driving at or have chemicals -- technicals taken over completely? haveed: oh, no, technicals

taken over completely could that causes opportunities for long-term investors but it means enormous volatility, price overshoots, and pretty nasty correlations. aree segments, technicals in full control. find a metals have an always difficulty having an influence -- fundamentals have enormous difficult to having influence. scarlet: what do you want to not go near? mohamed: we have to avoid two things. first, leverage. this is an environment that will force the leveraging. be careful on opportunities that are highly leveraged, including companies that need to refinance in the short-term. secondly, crowded trades. there is reason why apple has gotten hit particularly hard, which is if you are commonly held by lots and lots of people, to become the atm when people are try to reduce risk. be careful of commonly held the names.

they will overshoot on the way down but that will create opportunities. scarlet: got it. in terms of momentum stocks, the same names -- facebook, amazon, netflix -- did very well last year and they are coming under pressure this year as a lot of people have incentives to pare down their holdings. do you go back to things that worked when the volatility was just beginning? mohamed: yes come of those are the names -- they were commonly held, popular names. ownership became too brought. shaken people are being out from the crowded trades commendable overshoot on the way down -- and they will overshoot on the way down and that will create opportunities going forward. people have to realize that this volatility is what we are going to have more and more of going forward. therefore, understanding how to position yourself is really important. scarlet: mohamed el-erian, thank you so much for joining us by phone today pit bloomberg view columnist and chief economic

advisor at allianz warns of a volatility ahead for the next quarter of 2016. we want to head to mark crumpton. authorities in paris say a man who was shot and killed by police threatened officers with a butcher's knife and was wearing a fake explosives device and had a piece of paper with an emblem of the islamic state. the incident outside of the police station occurred exactly one year after two and then killed 11 people at the offices of the satirical magazine "charlie hebdo." africa, a bomb ripped through a police training center in olivia. early reports say at least 60 people, records, were killed. al jazeera tv says the bombing was probably carried out by the islamic state. the group's presence in libya has been growing steadily. in ethiopia, a food crisis is looming because of the worst drop in 50 years, according to the united nations could harvests have front and

the country will need more than $1 billion this year to buy food for 20% of the population. hasthe first time, congress sent president obama a bill repealing most of the affordable care law. the measuressed yesterday, the senate passed the same element ago. the president says he will veto the measure and democrats in both chambers have enough votes to prevent the override. tax refunds may take longer this year but you will still get it. the increasedy scrutiny could draw out the waiting time for refunds. the changes follow a spike in suspicious returns last year. tax authorities say the best defense against fraud is filing as early as possible. global news 24 hours a day. scarlet, that is the latest. back to you. scarlet: coming up in the next 20 minutes of "bloomberg markets ," morgan stanley ceo james

gorman has no plans of stepping down and that has led to one of his senior executives to go elsewhere for the top job. is the executive logjam making it harder for the next generation to reach the top? low.t a 12-year are we closer to the bottom? and james park will be joining in las vegas and tell cory johnson how he wants to blaze past apple with the new smart watch. ♪

scarlet: welcome back to "bloomberg markets" i am scarlet fu. we need to get a check on the markets right now because of julie hyman, it has been a straight line down since the top of the hour. a leg downly taking here, and it looks like market

participants have been commenting on this decline, near the lows of the session, if not at the lows of the session here. all of this started in china, so i want to bring us back to that. we are taking a look at what happened in chinese stocks overnight. the csi 300 notches overnight, but the past few sessions, when the circuit breakers were first broached on monday -- breached, i should say, on monday. chinese market regulators have said we are getting rid of the circuit breakers for now. night andm on last the action we saw on it. a 7% drop in the csi, we saw a whole entirely for the rest of the day. if that happened in the u.s., you would need a drop of at least 20% to trigger a full they shut down, but this is what happened in china. when things open back up in the chinese market, i'm hearing from a lot of folks that they are expecting another period of rockiness. let's look at the u.s.-traded

stocks to get a look at what we could see. these 2 etf's that track onshore and offshore stocks, both of them falling. alibaba and some of the other chinese-based companies that trade in the united states are also falling today quite sharply. all of these have been declining today. there you have it. and we also have the companies that are heavily exposed to china. you think of apple, which is from falling as well, as it concerns about iphone demand, but also its chinese business is not insignificant. general motors tends to move in tandem with concerns about chinese economic growth. and yum! brands ahead of the split is down. scarlet: right now it is a proxy for the chinese consumer. julie hyman, thank you so much. while making it to the top of the letter in banking is somewhat of a herculean task, is ceo's of the biggest banks have

held the post for the past six years and there is no sign they are going anywhere. that may be part of why senior leaders are heading for the exit and. the morgan stanley that the morgan stanley executive left the firm after james gorman, ceo, said he would stay on for another five years. talking about how tough it is to to rise to the top of a big bank is erik schatzker. tok: it is harder to rise the top of a major firm on wall street now. that will change several years from now, because james gorman at morgan stanley is going to be five years older and that much research retirement. the same thing is going -- that much closer to retirement. the same thing is going to happen to jamie dimon, same thing will happen with lloyd blankfein, and that will most certainly start the speculative fires burning again on who might become the ceo and lay the groundwork for all of those internecine conflicts that make this parlor game from watching

the rising and falling stars on wall street, so fascinating. but you are absolutely right, right now there is no movement. gary cohen has been a bridesmaid at goldman sachs for much longer than he would have liked, and there is no sign that lloyd blankfein, his current bout of ill health notwithstanding, is going anywhere. scarlet: where do these guys go? erik: that is a question, and i've been asking around about greg fleming -- why the liked among his peers and colleagues. i'm told that if a job opens up at the bank of new york-mellon and there is an active, activist situation, he would be considered immediately a candidate. given the performance of american express, greg fleming might be considered at that job. the carlyle group is looking for outside job to be copresident, they might again -- i understand

they talked to fleming once before -- approach greg fleming. it is possible he will end up somewhere else for a period of time. unlikely in europe because there is a turnover in leadership at those banks. guys who were similarly cast doubt on out running british banks -- standard chartered and barclays. there has been turnover at swiss bank and deutsche bank as well. scarlet: great reporting on greg fleming's next move. thank you so much. still ahead on "bloomberg markets," watch out, apple. aramcorabia and company would become the world's biggest publicly traded company. and mark father will be joining us with his take on the chinese market plunge. ♪

crude oil is rebounding off those as it touched $32.10 a barrel earlier on. inh more we want to bring bloomberg intelligence's andrew cosgrove. you were here with us in new york. erik schatzker was telling us that if aramco does go public, the market cap of this company would be out of this world. u.s. he estimates in the trillions and they were talking about the downstream units, petrochemical units, equated some of the other big majors. certainly has the most reserves in the world. exxon discounted the emerging market, things of that nature. in the grand scheme of things, it gives them another outline for financing but it doesn't really change their strategy towards continuing to let the oil price determine what happens to the market. scarlet: just as a point to showcase how big company is,

aramco has proven reserves of 250 billion barrels. that dwarfs anything else we have seen. andrew: correct, and if they were to sell or open up to investors, independent auditing on the reserves gets more information from the third-party to verify some of the staff they put out regularly. let's movel right, on to oil. collateral damage in the global risk selloff or is it driving the decline? andrew: it depends on what day you look at it, right? china starts off the morning down so investors take that as a risk-off trade. oil follows ensued. oil headlines taken from the day before and then china follows in the following morning. it really just depends. commodities, the correlations are so high between them is no asset class. that is the takeaway.

scarlet: what specifically about chinese driving oil lower? are one ofh, they the biggest buyers of crude, especially from stockpiling perspective. if a lot of demand in previous years. whether or not that is sustainable going forward is on investors' minds right now. scarlet: andrew cosgrove, thank you so much. joining us from new york today. as we had to break, we want to look at the wrecking market numbers now. we have come off our lows of the session. they'll industrials moving -- 305industrials losing points. ♪

from bloomberg world headquarters in new york, welcome back to "bloomberg markets." i am scarlet fu. let's start with the headlines.

mark crumpton has those from the news desk. mark: tonight president obama will take part in a nationally televised town hall on gun violence. the meeting is a follow-up to the gun-control steps he issued on tuesday. the executive orders will expand background checks and enforce current laws. tonight hall will air at 8:00 new york time on cnn. temporary border controls began in november and were extended several times in a bid to slow the number of refugees entering the country from denmark and germany. sweden received more than 160,000 asylum-seekers last year. the most innovative state in the u.s. is massachusetts, but just barely. massachusetts edged out california in a new bloomberg ranking. one reason those states placed so highly, world bank universities that are helping to strengthen the local economy. states were scored in a number of categories, including

research and development intensity, science and engineering degree holders, and patent activity. violent storm damage in the u.s. last month will cause about $4 billion and half of that will be covered by insurance. that is according to an insurance broker. tornadoes in texas and flooding in the mississippi valley caused much of the damage. dayal news 24 hours a powered by our 2400 journalists in more than 150 news bureaus from around the world. i am mark crumpton. back to you. scarlet: as marc was speaking, we are keeping an ion the markets right now because the indexes are coming back to revisiting their lives of the session with the dow industrials off by 2%. just shy of the 2% mark, the s&p 500 losing better than 2%. , as wendustry groups come inside the bloomberg terminal here, you can see that

all 10 groups within the s&p 500 are losing ground. you have 4 groups losing more than 2% age and fittingly, they tech,lical groups -- financials, industrials, and materials. defensive sectors are faring a little better but even they are reporting losses of .8%. if you look at year to date, materials have lost 6.5% in that period. we will continue to keep an eye on these markets as we continue, but in the meantime, we want to head over to las vegas, because fitbit is taking aim at apple. the fitness tracker company just announced its new smart watch on tuesday. it hold up to the apple watch? the stock dropped 18% today it was announced.

cory johnson is at the consumer electronics show with the fitbit ceo. cory: james park is with us now, fitbit ceo. as you know, i'm a life time fitness wearer, but this watch you have on the market, tell us about this one. james: it is a smart fitness watch. it is designed to put fitness first so a lot of these interface features is around helping people what -- reach the goals. deeper integration with smartphones to get caller id, calendar invitations, music control, etc. it is the most stylish cracker yet. we are launching with a whole line of accessories. of different style issues than prior devices. products now in

our lineup and it addresses a huge segment of users we were not targeting before in what we call the active segment. -- thene of the things apple watch his friend is what a anything isdo, possible, nothing specific comes to mind. do you feel like you have got to focus on what your watch can do? james: i think you hit it right on the head. it is not what a watch can do, but should do. in general, smart watches do too much. consumers don't know what they are good for. for us, the focus is on fitness. this is part of the overall strategy to create a digital health platform to combine hardware and software. cory: fitness not just for athletes? james: no, for everyday people, and for athletes, but we are primarily focused on athletes today but we see huge eventual in addressing chronic disease conditions in the future. cory: i have to tell the story -- you and i went for a walk a

few years ago, locking interview, and both of us were at least 20 pounds -- james: we were a little bit out of shape, yeah. i'm definitely an avid user and i use our product to keep myself in shape. cory: how do you manage growing your business in the calendar year? james: look, as we said on the last earnings call, we have a whole bunch of products we will be launching throughout 2016. i'm excited about the new products. cory: specifically, do you think -- what is your limitation to where you want to go? james: look, the mission of the company is helping people reach their health goals and it is that relentless focus that has helped us succeed as a company. how manyis amazing watches there are pitch talking to investors last night, they said everyone has virtual reality, everyone has a drunken everyone has fitness watch. -- everyone has a drone can everyone has a fitness watch. james: we have a huge competitive moat in the social

network we have. it gives us a tremendous user base. people are more likely to buy fitness devices because friends and family are already users. cory: on the tractors -- and the t rackers, you are close to owning them now. shepherd in wearables, i think we have the number one position out if you look at activity trackers in north america, pretty dominate. cory: is it the same people buying or word-of-mouth? the greatd-of-mouth, customer support, the money we're spending on tv ads not only in the u.s. but international markets as well. cory: really interesting stuff from fitbit, more to come. scarlet, back to you. we will do the steps couple times just to make sure -- scarlet: sounds good.

as you were talking, cory johnson, tom keene walked by two tap his fitbit as well. coming up next, publisher of the gloom, boom & doom report, marc faber, will be joining us with his take on the chinese market plunge. when he sees happening when markets reopened in china tomorrow. ♪

welcome back to "bloomberg markets." i am scarlet fu. let's head to the markets desk, where julie hyman is looking at the winners in today's session. not a whole lot of them. julie: actually change my plan -- that was the original plan.

we are so quickly that we did not have time to update the intro. session lows, exactly -- we throughout the winners plan, because things have been turning even worse over the past few moments. since 1:00, have seen almost a straight line downwards. there was an attempt at a recovery about 20 minutes ago, and then another leg downward here. this not a good sign for the bulls. we are trading at the lowest since early october. i'm seeing it on volume. about 30% above the 100-day average. a heavy selling volume is what we are seeing. if you look at the three major averages, all day this continues to be the laggard. it is down by nearly 3%. this is even worse than what the futures were indicating early this morning. we see it even worse than that. also i want to take a look at the groups that are on the move

any broad-based selloff that we are seeing. i was looking at the time line the s&p 500 and it looks like we have the fewest number of advances versus decliners since september 28. take a look at my bloomberg terminal, at the breath of the declines we are seeing today. all the right on your screen. technology on the nasdaq, down the most today. financials, industrials, materials, all lower. everything groupwise is selling off at this point. amidst the selloff we are seeing a bump up in volatility. vix is trading higher today. up by 22% in trading, 25 handle, as the traders would say. in the meantime, you would think money would be flowing into treasuries and it was earlier but now we are seeing a reversal of that. actually, we haven't seen a reversal of that. we are seeing buying of treasuries again. look at it and two seconds and in my be different again. finally, oil prices.

it has also been a little bit of a roller coaster. it is lower again and remaining lower by nearly 2%. obviously quickly changing scenario that we are trying to keep track of. scarlet: absolutely. thank you for keeping us up to date on this. gold is higher. bitcoin up as well. there is are safe haven of the day if treasuries are not exactly -- julie: higher for the fifth straight session. scarlet: julie hyman, thank you for that perspective, that wrap up. we want to ride in the conversation because our control mile has -- market turmoil has spread around the world. our next guest says the chinese economy may be headed for a hard landing. marc faber, the publisher of gloom, boom & doom, joins us by phone. marc, first off, prognosticate what trading will look like when china reopens friday morning.

marc: i think it will largely depend on how the u.s. growth is, at the present time, down something like 40 points on the s&p. if it goes between 40 points down and 50 points down or more, then china will go lower. but if the market rebounds late in the day, then i think that the chinese market may open and then rebound. scarlet: what about the fact that the chinese government has abandoned the circuit breakers that they just put in place to curb selling pressure? marc: i think that will be viewed as -- also whattep, and will be viewed as a positive step, if you have an asset bubble, it can be deflated through different mechanisms. either the currency goes down, or asset prices go down, and frequently both go down.

if the currency goes down, the asset prices in local currency become relatively less expensive. and so i think that the perception may be that the currency will continue to drift and the asset prices at this level with a long-term view, not the short-term view, but institutional investors, if you look at finance and the next 10 years, they will say at least now the stocks and moving back into buying range. scarlet: it does seem, in the meantime, investors are giving up on the chinese stock market. investors are also skeptical to get back in. tot should the government do restore confidence and reverse the trend or should they let the selling run its course? the best for governments

to restore confidence, the u.s. federal reserve, the bank of japan, the bank of england, is to do nothing. the moment they intervened into the free market, and to the capitalistic system, they either support prizes or the price interest rates, and that eventually leads to the huge, n people, and the really lose confidence. the government should stay out of the economy entirely. isrlet: so your prescription to do nothing, and you investors are calling for a clearer communication from chinese authorities with regard to what they plan for their currencies, for instance. what kind of rhetoric might soothe the market? want -- ore managers pay only attention the one thing, that stocks go up.

consistconomy does not of stocks going up only. it also consists of real economic typically. 95% of people in the world do not own any shares but they work every day and are concerned about earning enough, paying taxes, real economic activity. fund managers, i don't really pay attention to the macroeconomic point of view. they only want one thing, the stocks go up. scarlet: they only look at the short-term, as you have noted. all this debate for the soft landing versus the hard landing -- is this what it looks like? marc: well, i have argued for the last two years that the thanmy was much weaker what the government was publishing through the official

statistics. in the last few months, the economy is growing and a maximum 4% per annum. intonk we may very well go becausedged recession, the economic activity in china, and by the way, in emerging markets, by and large, is capital spending. went capital spending slows down, it has a very negative on supplier and accelerated impact on the economy. and so i think a recession is not unlikely. scarlet: it is not unlikely and the capital spending has slowed down. at what point do we begin deleveraging in china or has that already started to begin? marc: well, we have some deleveraging in the sense that we have massive default. don't forget, the official credit statistics may not

disclose the true credit bubble, of credit asia, a lot goes hand-to-hand -- family members, the mafia -- [laughter] iads.et: tr marc: so the system is actually quite leveraged. scarlet: method bearish for quite a long time. -- you have been bearish for quite a long time to how much needs to be taken from global risk assets? marc: well, i think we have a huge credit bubble and everything. and yet we have huge asset bonds.on in stocks, in in europe there are so many bonds that have negative yields. and we have lots of struggling bonds and they yield less than 1%.

in japan, the 10-year is 0.22%. we have the boom market in commodities deflated already to some extent. we have a huge bull market in real estate. it is beginning to be deflated. end, bull market and collectibles. all these things need to be adjusted on the downside. scarlet: we just saw from julie hyman that there isn't as much movement in treasuries, not as much as you might expect. there is an increase in gold prices, which i know you have to calling for for a while. bitcoin is also higher. where do we see the safe havens right now? is it the traditional treasuries -- maybe not so much bitcoin, but treasuries and gold? marc: well, when i compare u.s. to they yields, 10-year,

10-year in germany, italy, , i think the u.s. 10-year treasury is a bargain. is 10 yearsstment in u.s. treasuries. everybody is bullish about the u.s. dollar. and i do not share the bullishness. i think the u.s. dollar is about to peak out and start weakening. scarlet: what does this mean for the federal reserve when it considers its next move? the odds for the rate increase in march have gone down. it is above 50% the end of last year and now down to 40%. don'tquite frankly, i understand fed officials but just -- that just said that rates would go up four times next year. i don't see that at all. january, the end of january, february, it will be evident that the u.s. has

entered the recession. scarlet: all right, marc faber, thank you so much for being awake and sharing your thoughts with us. byc faber speaking to us phone from thailand so it is the middle of the night there. marc faber, publisher of gloom, boom & doom report. as he had to break, quick check of the markets yet again. shocked, shocked losses for u.s. equities, which really comes on the heels of global selloff. dow jones industrial average off by 329 point. 12 stocks lower for every one that is higher on the new york stock exchange. in terms of history groups -- industry groups, all 10 groups are lower. industry groups by 24 within the s&p 500, same story. all 24 groups are lower. and that includes food and staples, off by 0.02 percent. no industry group within the s&p 500 is positive.

food and staples and media holding up slightly better. groundo sector losing fastest. ♪

scarlet: breaking news. we are keeping an i on the markets right now. some left in u.s. equities not sincerely -- selloff in u.s. equities not necessarily intensifying but this is the intraday chart of the s&p 500 and nasdaq and we have bounced off our lows which took place about 20 minutes ago. but these are deep losses and pretty broad as well. groupsand 24 industry are lower as well. when you look at treasuries, there is some buying, although not as much as you might expect. we are talking about marginal news here. what is interesting is gold prices. they are moving higher for the fifth straight day, as julie

hyman noted earlier. goal but outto the there, and interestingly enough, bitcoin is higher as well. for better or worse, investors are choosing money to put in bitcoin. that is something to keep in mind. china's volatility is spreading extreme volatility through global markets. you want to bring in our next who says that some of the weakness we're seeing right now was days of that weeks in the making because it started at the end of last year. explain what you mean. steven: think back to where we were in august were china devalued initially. everyone was awaken watching. which had a period in equities fell and people feared what the repercussions would be. there was stability in the chinese currency. late at the end of the year in

the aftermath of the fed decision, the chinese was weakening again. this was accelerated at the turn of the year went market participation is very low. it is only now getting the full attention of the world. scarlet: and we are seeing the damage. how much longer, you think? steven: that's the thing. if you look at the interventions of the pboc, they seem to have stopped. in the absence of intervention, you see the price action in the currency and you don't know where the endpoint will be. just the uncertainty of the affected confidence in other asset. scarlet: we will have more coverage of the markets on bloomberg television.

. .

avis: it 2 p.m. in new york. welcome to bloomberg markets. -- david: it is 2 p.m. in new

york. welcome to bloomberg markets. from bloomberg's world headquarters in your, good afternoon. here is what we are watching. a stock selloff accelerates with china's rock -- china sparking more market turmoil. the country is-- suspending its market circuit breakers just days after introducing them. the three-day losing streak wiping $40 billion. iphone supplies and demand. and joining us to weigh in on all of this is bill gross. first, for more on the market turmoil, let's turn to julie hyman. it has been an interesting market trajectory. after the selloff in chinese stocks and circuit breakers were triggered that halted trading