happens. half an hour into the trading session and stocks are taking another beating. more than dropping 200 points after stocks in europe slid to a 13 month low. in japan, stocks are plunging into a bear market we are now down over 300 points on the dow. emerging-market currencies are getting crushed by the rising dollar and also plunging oil prices. the russian ruble is tumbling to a record low against the dollar. saudi arabia is defending its currency peg to the u.s. currency. on bank ofng news canada -- i want to get straight to pamela ritchie. the bank of canada has decided not to cut rates for leaving them at .5%. we are watching the loonie down but bouncing up and getting

close to the $.69 mark against the u.s. dollar. it has been down 17% over the last year against the u.s. dollar and there was a discussion that they probably needed to do something where there is panic in the canadian market and concern about the price of oil and how the loonie is tracking. the voices over the course of the last day or so have been saying the loonie is falling on its own and it's not needed for the bank of counted -- of canada to devalue the currency. this was to help exporter so more and more voices have been saying maybe it's not needed. consider ising to that fiscal stimulus from the trudeau government is on its way. the campse throughout and before he was elected is for $10 billion in stimulus per year over the next three years. many voices are calling for that

to be tripled. the former governor of the bank of canada said it should be $40 billion per year. riskank of canada says a to inflation profile is roughly balanced and the target for the bank of canada for inflation is 2%. betty: thank you so much. in the u.s., we are half an hour into the dow is plunging along with all the markets around the world. we have more on this. ramy: the global route continues to keep going. the s&p 500 is down 2%. similarly andn the nasdaq is down the most.

with the dow, 29 of the 30 stocks are in the red and the s&p 500 is at its lowest since october, 2014. 56%, nearly hundred of the s&p stocks, are in bear market territory. down 2.4% and is on track for worst month so far since the financial crisis. imaptake a look at the function. , health is down the most, 4.1 percent and all 10 sectors are in the red. energy is the most. that stunning rout in commodities continues to be one of the big stories? it is what is hanging

across our markets. let's look at the global market. that criminal, i will show you the msci index and global stocks right now are approaching a bear market from their high back in may of 2015. we are down right now by little more than 18%. pointscentage more and we will be in a bear market. betty: i want to head over to davos where we have a big interview. francine: thank you so much. we excited to have the vice-chairman of sabex. when you look around the world, there is concern when you look at turmoil and volatility and concern about where the world is headed. you are in the perfect spot to

give us an idea where you see real strength and real concerns. >> first of all, thank you. is the need to look for energy market, it's not clear where we are headed. that's true for total economies in companies. the positive side of it, we need a normalt this is supply/demand dynamics and it will take a course to overcome its crude oil price. the challenges for companies to focus on growth and focus on long-term and that's the way you can overcome your company outlook. anything you don't see more sinister than supply and demand? oil-producing countries want to focus on market share but we are

not seeing a drop off in demand? >> by nature, i am very optimistic. cheap energy has helped the economy to respond. the u.s. has benefited from cheap energy. europe has benefited from this. and thisslowing down has to do with the consumption of crude oil as well as japan and germany. that has really influenced some of the current demands of crude oil. , i thinkive side of it this will stimulate the economy of different countries to have a cheaper cost of energy and is shop their gdp. francine: how much do we understand what's going on in china? >> we are excited about an element. the chinese government has announced of their position six months ago. they want to transform their economy from being heavily

dependent on foreign investment and export to an economy that was stimulate domestic consumption and improve on their quality of products. they want to go to mid and high end through technology and innovation. this is a positive transformation in china. a size take time but in of the economy of china, this will transform to a positive to the world economy. francine: low oil prices is a concern for saudi arabia but it's up and your company did >> as a global company, we are exposed on both ends. andre focused on liquid amex. some of it benefits from crude oil prices and some on the higher end. that is not the focus. those challenges create opportunities. people sometimes have a short memory of understanding normal

in economies going through ups and downs. normally, right decisions are made on bad days. that's the way i look at it. when we can counter when something goes wrong, how worried about you -- are you about central banks and oil prices falling? >> cheap energy can be very good. the current energy market will be the best for the economy. i am positive about it. in my view, 2017 will be a year where we will see oil rebound in the market. demand and growth of chemicals reduced in recent months? look at ouru performance last year, we have increased our cells by 4%.

there is a healthy demand the francine: where? see a slowdown in china but there is a very specific demand for specific products. this highlights the fact that our company focuses on technology and innovation and sustainability. we look to bring solutions to the customers and have a higher value added to we still have demand for those products and i think that was a smart strategy a long time ago. is it impossible to forecast the purpose of oil? -- the price of oil? >> there are different views. some of them are pessimistic and others are very optimistic. this is why i think companies thoses, we try to analyze

extenuating factors and focus on the intel factors that are under our control. we focus on our liability and technology and innovation and development of human resource and focus on the opportunities where we can grow globally. that is our primary focus. is lifting u.s. sanctions on iran the only way oil will go lower? >> i'm not sure this will be the case. the market is big enough to absorb newcomers. whether youtime, are a viable supplier and have supplied quality and the liability that consumers are we have been viewed during several challenges economically. we were a liable supplier to the world. francine: what is the number you forecast as far as future

projections and revenue for oil? >> we have been changing those forecasts from time to time. we have not been able to fix the number like any others. $60.edicted 2016, it clearly has not materialized. it is not our focus at this point. we focus on how to capture opportunities that fits their strategy. the best positions we have made during the challenging times are the ones that have given us the best return on the good days. crumpton'sour deputy said they were looking to -- possibly list as an ipo. about ourexcited government scheme on creating true transformations in our economy. our government is focused on

productivity and focused on liability and efficiency. this is a very strategic transformation. this will enable the country to create higher value for our natural resources and enable the economy to generate a good enough quality job for our economic growth. francine: will they be able to do that? >> i only get the same news you get. would you be worried about not being the largest company listed? >> this never crosses my mind. we always welcome competition. things are positive for a company to create more dynamics and we have been global and participate in the u.s. and china and europe and we have

been a successful company on a global basis dealing with a challenging, competitive environment. francine: is everyone doing enough to cushion oil prices? >> what we hear in the news that governments are connected -- are committed to being responsible to suppliers. saudi arabia has always been very good on supporting a consumer market francine: is there a saudi discount now because you are listed? >> i am not aware of any. francine: it has happened to a lot of europe in countries in the middle of the economic crisis. >> i am not aware. what about diplomatic tensions between saudi arabia and iran? politician so i not concerned about it. our focus right now is how to position our company in growth

and take advantage of the current market to prepare ourselves for the next cycle of growth in the world economy. francine: you believe the u.s. consumer is back? right tolen was hike rates? >> we support that. francine: will china replace the u.s. for global trade? can they absorb the issues and become a positive for world trade? element we need to refer to is the paris conference. this shows there is a commitment toions like china and others commit to sustainable and environmental issues through technology and innovation. i think countries be very committed to focus on being responsible for the world

economy. demand will play a big part in this. francine: thank you so much. this is a vice-chairman that is one of the few optimistic ones says it's a time of challenges. you almost get the best out of your these times. betty: that's right, it becomes an opportunity for those who stand their ground. thank you so much. let's go to the market task. let's check on the markets. let's start with the oil prices. we cannot say enough how important they oil prices to the market. ti crude oil is barely off the lows of the session, down 3 2/3%.

this is a low that has not been --n since september of 2008 a all 2008. we hit an intraday low of 4% earlier. looking ahead to thursday, looks stocks show we could increase the glut we are seeing at about 2.70 5 million barrels. let's take a look at my bloomberg terminal, glco, the global commodities look. is across the it board. sector is down nearly 4%. expect to be down

on the slowing global economy and the glut in commodities is what is happening. at gold, it is the green in the center of the screen. it is up by about 1.2%. this has to do with oil and global commodities. betty: natural gas is up as well. ramy: that's because it's getting colder. betty: and european stocks have in -- have been in decline. ramy: definitely they have been feeling that hit from around the world. the stoxx europe 600 is down 2.8% and the ftse is down by more than 3%. this is the ripple of fact of what has been happening from asia on the shanghai composite. betty: thank you.

let's focus on south africa where inflation accelerating to inne-year high of 5% december adding pressure to the central bank to raise rates next week despite the slowdown in growth. a lot of that is due to what we see with oil prices. davos.ead over to do whether it's china or the commodities or the federal reserve, the eye of the storm is plenty of countries like south africa. the reserve bank governor joins us now and it's great to have you with us. your forecast is been downgraded to below 1%. a growthtill expecting of 1.5%. some expect recession in south africa. we expect one in 5% from 2015

good next week, we will present our new forecast and it will come out quickly. south africa is facing a dilemma. growth and weg have rising inflation. this is not something we did not expect. we started adjusting policy in january of 2014. we started our tightening in january of last year. the tightening steps we have taken have been very measured on like previous tightening cycles

we have had. a limited them recently to 25 basis points but the market wants more conviction. are you willing to go the extra step? cycle, we start the started with 50 business -- basis points. points, a hikeis is not small necessarily. inflation outlook has affected the move of the concern currency is a concern. what complicates this is for this is and the like. a contributing factor has been the oil this. oilou look back, if the

this is declined in the currency did not move how it has over the past i've been four weeks, oil does is good have come down significantly. >> the dollar rand is up 20% since then. that must have the inflation outlook even higher than where stay asow can if things they were, you would expect that you inflation rate to put away from your target t? >> it's not just a lateral between the dollar, the dollar has a big waiting on our exchange rate. next week we will consider this and the liberate and i'm sure we will do an appropriate mode. >> how can you step in and stabilize the south african rand.

are you to step in and stabilize it? otherre are so many emerging market currencies that have depreciated. i was asked what i think will happen when the fed normalizes rates. believe other currencies will depreciate. our concern is not so much the move in the currency. it's what that move in the currency means for the inflation outlook. without a doubt, the depreciation of the currency is a threat and inflation will rise. have a trueto inflation target.

that's why you saw us starting pc move at the previous m meeting. there is nothing we can do about december 2015. we can do something about future inflation. close are we to inflation expectations becoming de-acho red in south africa? >> it's bubbling around 6%. we expect inflation this year would be outside of target. the combination of those two efax could cause -- those two effects could have the money authorities act with results.

do you anticipate more weakening of the south african rand? can it go further? >> i have stopped watching the bloomberg screen. it goes in so many different directions. they can say they think they know what the currency will do going forward. it is a dilemma for a central bank governor for upside risk inflation and downside growth? where do you put the weight in your policy? >> that dilemma is what south africa is currently experiencing. we have an inflation target. the constitution says we must balance -- in the

interest of sustainability and balance. you cannot avoid a trade-off in of station is an indication inflation expectations to her and -- to retain the integrity of the framework. >> is there a risk the government will tighten the budget and the likelihood that you will tighten rates? is there a risk of a recession in south africa? >> i don't see the tightening of fiscal policy as a welcome development. what we are faced with now is to take determined steps and it's a

welcome development. what you prefer is a tight fiscal policy and a loose monetary system. we now face a situation where monetary policy has been tightened. whatare often in sync and notuld like to see is inflation matter and the steps we take in dealing with the south african challenges are done in the interest of balance and sustainability. nextu've got the meetings week in the economists are looking for a 50 basis point hike. would you pay attention to that? none of the presentations we meetings our previous

have done that. these are just one of the things we look at. these things are guidelines. our focus is one in. can face indicators everything fully in judgment. >> what is the one question you need to ask at those meetings? >> a lot of questions. >> one question? >> there are so many questions. we are facing a policy dilemma we have outlined and raising the situation of inflation expectations outside our target. it's a robust environment and who can tell what is happening with a new market. we've got to take the totality of all things into account. power to have the contain the risk that inflation

contains? you've got monetary policy as well as other policies to tackle inflation did >> a couple of weeks ago, there was a flash crash in the south african rand. how can you prevent that? >> we are concerned about that. it was not just that sunday. it happens with liquidity is thin. it takes place outside of south africa in major financial markets. it's something we have been looking at and would like to understand. tradingnot look like

reflected fundamentals. because it happens in a short bit of time. what about the spot price? >> the think about the exchange rate is that it does not overshoot. what you cannot have is thinking we've got a particular view of where all currencies should be. anyone can say with conviction that this is issue should this be. they have decided we will have a floating exchange rate. there are times when this exchange rate was six ravens to rands to the dollar.

in six and 16,at it's nothing a central bank can do to stop a currency as i've said, exchange rates go to where this has overshot. jonathan: south african reserve bank manager, thank you so much for joining us. betty: a fascinating conversation. thank you so much. jonathan ferro with the south african reserve bank governor. was saying, what he it is such a tough job was so much uncertainty. as we were watching this interview with jonathan ferro, we were watching where the rant was trading. in the last few moments, it actually strengthened during his comments. earlier in the trading session, the rand was continuing that trend of weakening against the

dollar. we have plenty more from d avos ahead, including one of the most powerful women on wall street could we will hear from the ceo jpmorgan's asset management division. we will be speaking with the biggest names tomorrow influencing our global markets, including john rice, walgreens booth alliance ceo, the reserve bank of india government, and peterson institute president adam pozen. ceo and citigroup ceo, morgan stanley ceo and chairman james gorman, and coca-cola ceo chairman on thursday. i lock on the -- a lot on the docket. we are hitting new lows. they're coming off slightly, but we hit a new low. the dow down 347.50 the oil prices also hitting some new lows in this session as well.

down over 2%. let's check in with bloomberg first word news this morning coul. vonnie quinn has more could vonnie. the u.s. and russia are looking for breakthrough in syria peace tax. john kerry and the russian minister met to see which groups could be barred from peace talks when they start next week and president obama and flatten it could and could not agree when they spoke by phone last week . the taliban is claiming responsible before in attack that killed 20 people at a pakistan university cou. the victims include students and teachers. the military says they killed all for attackers. they were able to scale the campus wall. cyberntagon has delayed a security requirement for 10,000 contractors with access to sensitive information. the problem? contractors told him they were

not able to comply. now companies that get defense contracts must report hack attacks on their systems and within 72 hours. president obama has vetoed a bill that would overturn an environmental protection agency rule on water. the epa has expanded the number of waterways subject to federal regulations. dayal news 24 hours a howard by our 2400 journalists and more than 150 news bureaus around the world. i have vonnie quinn. -- i am on a good. betty: thank you so much. ramy is standing by as the indexes are down 2%. ramy: i feel like we continue to say this. we are hitting session lows. let's take a look at the numbers. the s&p 500 down nearly 2.5%. the dow is down 2.3%. points just in the first hour of so trading.

the nasdaq is down by about 2.6% there. with the dow, an interesting superlative is that with this this is thell, fourth time it has seen this just this month. it is on track for the worst 2019 thee february s&p also on track for the worst month since 2009. it is also a hundred points away from bear market territory. that number is 1740. right now, we are hitting our session lows. interestingly, more than 50% of all s&p stocks are actually in bear market territory. note of because wti crude is on the down. the 10 worst stocks on the s&p are all energy related. let's take a look at what people are going for some safety now. one of them would be gold. let's take a liquid gold is doing. up 1.2% here.re

we definitely see a spike around the 8:00 am mark. gold renewing interest as equities are falling today. citigroup also came out with a note saying that it might be back and vote. ogue. v we are also taking a look at the u.s. tenure. -- 10 year. the yield is down by 10 basis points, down to 1.96%. this is a low not seen since april 2015. definitely a flight to safety this morning. betty: thank you so much. just a note here -- i'm seeing something cross my message system, which basically is saying that we have had for down days in the dow of 300 plus points. amazing, right? i know you mentioned that as well. goldman sachs wraps up their big banks earnings. the stock taking a hit this morning after the bank reported

fourth-quarter revenues beating wall street estimates. investors are showing concern over mounting legal fees and falling revenue. what about this environment right now? thank reports say about the health of the industry. for a breakdown of this macro environment, i want to bring in .evon ryan he has a market perform recommendation on goldman sachs. and to our right is frank quarantin o. i'm going to rip up the script and channel my tom keene here . i want to ask about this market route going on. we know that banks are china to recover in this could be a transformational -- are trying to recover and this could be a transformational year. >> the small business owner of the concern. let's look at the business environment of the united states s. we have low interest rates and a

very healthy economy in the united states. betty: very healthy? >> housing market numbers were up. employment is strong. i really think the united states stands apart from the rest of the globe. yes, it will be impacted, but the man on the street is going to do well here. never before have we had an economy like we have had today. we have a growing economy relative to job creation and wages are starting to increase at this point in time, which i think is a great thing for what we are seeing. low oil prices are good for the man on the street. may not be good for them banks, but good for the man on the street. do betty: do you agree? devon: credit has been as good as it has been a long time. that is clearly driven by the energy sector. what we are all looking at is if there's going to be a knock on from energy and ultimately spill

to other sectors or will it spill to the consumer side. betty: do you think it will be? a commodityot trader, but it's a sliding scale. the lower oil prices go, the more pain it creates for banks. i think the more risk there is for a real shakeout and energy . ramy betty: he saw bank of america raise their provision because of the energy companies. devin: we see more active provisioning now where copies try to get ahead of actual issues. they're not that big issues yet, but i think it's a slight scale. going $40 going to 30 and to 25 becomes a bigger issue and provisions have to go up. that is what the markets have to focus on. it is negatively impacting the banking industry and negatively impacting sentiment as well. frank: the banks have never been

in a stronger position to be able to withstand this kind of a downturn. we can say all we want about dodd-frank and changes and all those things, but they have balance in bank's sheets. while this is not good, there certainly going to take some losses if oil stays in the $25 range. i'm not so sure that is the case. we are in a trough right now i think. bank balance sheets have never been and they better position to withstand this marketplace. betty: how about you? frank: being in the northeast, we do not have a lot of oil rigs. it's not a large concern for the northeast banks, but community banks have also never been in a stronger position than they are today to withstand any sort of downturn. all the things negative in the market today that will -- bode well for community banks because the consumer is going to have a better balance sheet. they are better employed today. the cost of oil is down for

them. that is a huge tax savings for every american to the today. betty: i've not seen the savings at the pump. i drove by and i saw when dollar $.50 at the pump. betty: for regular! frank: the interest rate is near zero. betty: what are you focused on -- whether the fed will continue to raise rates? frank: i never believe the fed was going to continue to raise rates. i thought the fed needed to experiment with what would happen if they raised rates. they did that and december and found out the answer. the economy locally and globally will not allow the fed to continue on a rate increase over time. i think we are in a lower for longer, very long period of time. betty: not much? frank: i don't see it. betty: how would that impact the banking sector? devin: there are a lot of moving

parts there. clearly, it's a steepening curve. to the extent that there is more stability in the economy and people feel better about the world, i think the bank industry will do well. looking at the capital market names and going to that safer theme, they brought in a lot more capital in the past years. what we are seeing is that even and a stress environment, they are making money. the are a wee lower, but i think the highs are lower but the lows are also higher. yup narrowed the band. i would argue safer, sound should help the evaluations overtime. that is the new environment they are in right now with the banking industries. frank: higher interest rates being dictated by the fed at the low end of the curve with the 10 year coming down is not a good thing to a flattening yield curve will not be good for the smaller community banks. betty: just before we go because

i know goldman wraps up the big banks, but a quick take on goldman? what have we seen from morgan stanley? maybe a little less so on the fixed income side. devin: it was a tough quarter. i think the market is less focused on the quarter and more focused on the forward. they are reducing expenses where they can reduce expenses. there are certain parts of the revenue environment that they cannot control and the market is one of those they cannot control. they are operating the best they can. goldman is doing well. the one thing i would add is that it would've been an incredibly tough backdrop for generating a 10% rou. i think it's pretty impressi ve. sorrentinoks frank and devin ryan. meantime, the world markets are all tanking. the all caps he rolled index

allnding their drop now -- country world index extending their drop now to 20%. also the dow fell past 400 points. it is now at 384 as you can see on the bottom of the screen. we are going to stay on the markets with you on "bloomberg markets." ♪

betty: welcome back. this is "bloomberg markets." boy, the markets are taking right now -- not just here but around the euro. we had the dow plunged below 400 points to a new low in the session. immediately after that, we bounced back slightly. we are still down over 380 points. all the averages are off by over 2%. i want to get to abigail

doolittle at the nasdaq with more on how nasdaq stocks are trading. abigail: same story over here. another day of big selling at the nasdaq could composite index is about down 16%. the correction it's only worse. as ebstock is down today is out saying the december quarter is likely work than expected. raymond james has cut estimates for the second time in about two months. all this is on iphone concerns that have taken the stock down more than 20% from early november. the reason this continues to matter so much is that apple is the biggest member waiting of the composite index, about 8%. it's trading direction helps to shape the broader markets. most recently, apple has put in a series of bearish lower lows. sellers are very much in control. canbig question then -- apple hold the intraday low from last august of $92 or not? betty: abigail, thank you. abigail doolittle at the nasdaq.

let's get more from the world economic forum in davos. earlier today, tom keene and spoke tolacqua tote -- a harvard professor for where we are now with more full free-floating currencies to the fixed exchange resumes of the late 1990's. >> this is a big difference for the good of the global economy. if russia had a fixed exchange rate, if brazil had a fixed exchange rate, they would be at the imf by now. onhas been a cushion, but the other hand, it's not necessarily a cushion. there are stock holdings in brazil and russia. where we are at the moment is this market meltdown and people are wondering what are central banks going to do, what are governments going to do? i'm afraid the news is they don't care what the stock market will say. they will wait for it to pass through the economy. if it does, they will act.

francine: is this the markets panicking because they do not know to latch on or is it the market seeing something that will go wrong in the real economy? i'm thinking about the price of oil. is it something more sinister than an oversupply equation? kenneth: i don't know. certainly historically this idea that oil prices going down because there's too much supply, that's a productivity increase. there's more oil around to consume. usually that's a good thing even with the demand and supply. usually gets a boost. that is what is causing the oil price to go down and that's not so good. i have trouble framing why there's quite the extended panic. if you are with russia and brazil, that said, i'm very concerned about china. the opening script with carmen reinhart has been different. you have been writing and others agreeing with you that we need

to rationalize our debt, our public debt, our private that could give us a scorecard. how are they doing at rightsizing debt? kenneth: i think we are in the middle of what i call a debt super cycle. it started in the u.s. and went to europe and inevitably come into emerging markets, including china. it will end someday. if you look at countries like the u.s. and the u.k., they are not quite as vulnerable in my opinion because they have delivered more. francine: what do you worry about china? you are more bearish than market consensus on china. that means what? they will devalue and that will hurt the rest of the world or we may see a crisis? kenneth: if they had a floating exchange rate, we be unless trouble with china. competent, but nobody can control these exchange rate attacks when you have capital flows going up your out. nobody can control the stock market. if you can get your credibility

from things you can't control, you can't. tom: looking at the ruble, that's a recent jump condition only in the last five minutes. let's follow up on the ruble weakness. a 7 forlynch has yuan. do you have in your head where you would advise china to devalue, too? visit seven or more dramatic? kenneth: this is embarrassing, but what i've been saying and everyone has been saying, you should have more floating exchange rate. do it while you're not being attacked. do it from a position of strength. they're kind to have a controlled evaluation where everybody is tried to bailout. betty: again, that was harvard professor kenneth rogoff speaking with tom keene and francine lacqua earlier. still ahead on bloomberg

television, yes, the turmoil is gripping the markets -- not just here but in the major markets and emerging markets. the msci index has extended its dropped to 20% from its record. we are heading to dubai and moscow for the impact of the currency and stock plunge heard around the world. ♪

betty: it's time to get you caught up on action around the world, including in europe. mark barton has the latest on the selloff in london. i'm looking at no green there next to you. mark: i want to chat about currencies. the big day in russia and saudi arabia. i want to get to south potter, who leads bloomberg coverage of middle east markets. samuel, we had saudi arabia cracking down on speculators, betting against a currency

devaluation. our 30's worried -- our authorities worried about this too decade-old peg to the dollar? samuel: that's a hard question answer because authorities will not speak to us. what we know is that earlier this week there was a meeting at the central banks and regional branches of international banks. they were told to stop dealing in saudi reality options. those are used as hedges against saudi contracts. what we think is the central bank is trying to stamp out speculation that saudi arabia may devalue its currency. mark: how wedded his saudi arabia to this peg? is it becoming too expensive to defend the exchange rates? samuel: i would not say so.

saudi arabia has $620 billion worth of foreign exchange reserves. they are long way of being out of money. in addition, they have repeatedly said they intend to keep the peg. their main source of income is oil, which is a dollar-based transaction. we cannot perceive really what kind of advantage there would be to devaluation. nonetheless, we are still seeing in the forward market some significant speculation that there could be at evaluation -- a devaluation. mark: i look the worst performing markets in the world and that is the worst performing stock market. it is pretty gloomy in the middle east right now, isn't it? samuel: yes, it has been a very colorful week. we opened on sunday with some of the biggest drops we have seen since the financial crisis.

oil trading below $20. is a nightmare scenario. economiese like where are still dependent on oil. investors are weighing up on the one hand some excellent evaluations right now, but oil is still low. mark: samuel potter from dubai, thank you. i will see you in just a second. the stock 600 down by 3.6%. betty: we are dropping like a stone here in the u.s. markets. the dow is off the session low of more than 430 points or not. ♪

betty: it is 11:00 a.m. in new york and midnight in hong kong. from bloomberg world headquarters in new york, good morning. european mark

barton joining us live from london. we are hitting session lows here in the u.s.. oil below $27 a barrel. what is going on in europe? mark: we are hitting session lows. the rout continues. the lowest close in over year. the european close starts right now. ♪ betty: we are going to take you from new york to london and the next hour. what is going on? mark: we are at the lowest level since october 2014. this is the biggest daily plunge since august 24 last year. we know what dominated the markets in august. that is when china devalue to its currency. the big moving story of