. a very warm welcome. this is worldwide exchange. >> these are your headlines from around the world. >> staging a come back the shanghai composite posted it's biggest percentage gain after beijing takes drastic measures to stem the volatility. >> ecb plays hard ball with greece. >> central banks, although they do have the means, have no mandate, in my view to safe guard the solvency of banks and

governments. >> computer says no. a technical glitch holds trading for more than three hours. raising tensions on wall street as details on the outage remain unknown. >> air france lands a deal with dutch pilots over pay and benefits clearing the way for its restructuring plan. >> hi everyone. i'm seema mody. coming up on today's show movers and shakers as some of the biggest names in business gather in idaho. we'll discover what black bustockbuster bids are in the work. plus would you turn down 30 murder in the second degree for a business idea? we'll show you what happened with the creators of a dating app appeared on primetime.

>> chinese security regulator stopped large shareholders from cutting their stake. the ban will last six months with those not adhering to the rule facing punishment. it's up 5.8%. martin has the latest for us in singapore. >> thanks a lot. wilfred good morning. that's the big story here. limiting big shareholders. 5% or more from selling out for at least six months. that's the most drastic move authorities in china have taken so far. take a look at the numbers here. shanghai up 5.8% as you said because single session percentage gain since 2009 but the wig question now is this is okay -- this is good. it's a nice change but will it last? it's taking a long time but interestingly we are getting

criticism from foreign shareholders now, a and p down in australia, the big financial services firm one of the first to voice their criticism of this interventionist approach by chinese authorities. they have reason to be not so happy because their flag ship china capital growth fund was worth before it started 440 million australian dollars but since the route it's down to $272 $272. here's the bad news. there's a lot of buzz in the market. one of the reasons why we had such outside gains in the chinese markets today, the authorities in china could be on the cusp -- could be ready to take policy action to try to support this market here. what we're talking about is we have heard phrases thrown around like we'll do whatever it takes. can you say ecb and mario draghi? can you say a buyer of last resort for chinese equities.

we're all ears to see whether or not that's going to come to pass. that would be probably the most interventionist move we've seen yet. back to you. >> thank you very much for that. could be on the cusp of taking extraordinary measures. they have already taken quite a few. we'll discuss that more in a moment. let's update you on data out of china as well. consumer price levels above expectations for the month of june but the producer price points to spare capacity in the world's second largest economy. >> let's get to steven jones. good morning to you. thank you for joining us. look, when i look at the action from the officials in china over night and they're limiting stake holders as to what they can sell, what's really selling is they're taking a very opposite view from the last couple of months and that was deregulating

the market. they wanted to let the market forces work. that's not happening. does that worry you? >> there's a lot going on in china. the move toward liberalization has been in place the last 18 months or so and significant steps have been made. they might have just found that they have taken a few too many too fast and suddenly the ramp up in retail involvement over the last couple of months with millions of leveraged and retail accounts entering the investment arena overegged things a little bit and they slowed down. just a month ago on the show we were talking about china not being in the emerging markets just yet and with hindsight really good reason. do you see that happening at any point over the next year now? >> i don't, actually. i think the case for msci

greater involvement and damage in china is damaged by what's happening and by the authority's reaction to it. you want markets to be stable transparent, broadly based involving institutional and retail and overseas investment flows without the need for disruption and intervention of the authority. >> they got pulled in the most meaningful way yet with an over 5% decline. is this still a shanghai only issue? >> more a shanghai only phenomenon phenomenon. >> it was interesting that hong kong got dragged in when the domestic chinese exchange ceased to function when you had extensions from share price movement and company activity.

so an extremist hong kong gets involved. >> has reality set in perhaps that beijing not as influential as it's perceived to be? >> i don't underestimate the global power of central banks. the ability to move in markets. to inject liquidity aggressively. to put in place some stabilizing policies is still there in my mind. >> are they effective? >> they have been and will continue to be. maybe not as effective as first and second tile around but they still have potency definitely. >> the ppi is weak this morning. lending figures weak for a long time. they're getting worried.

the measures we have seen for the stock market in the last week have been absolutely extraordinary. >> yes, they have. some of those extraordinary measures in cutting interest rates will also help the real economy and that's also worth watching very closely. q-1 growth was pretty strong. that coming in 7% year on year. i do think that q-2 will be lower than that and they're reacting to this with measures that can stimulate the economy and see the issues in their domestic stock market. >> thanks for now. we'll be back with you shortly for another chat. >> what's really behind the volatility in chinese stocks? head to cnbc.com for the four key features of shanghai markets that fuel volatility. but now let's get a check on how european stocks are trading.

>> yesterday we had a strong day for the euro. that switched around today. a strong day for equities and flat day for the euro. the way the weak has progressed the interesting thing is that investors seem not to be too bothered about what the news coming out of greece was. since then whether it's because of boredom or lack of a relief that we'll get contagion we're shrugging off little bits of news coming out better than we have done over the last three weeks. either way, today, strong returns across the board for european equities. ftse 100 up 0.6% and the rest of continental europe up .6%. we did get quite considerable bound buying in the u.s. a strong risk off move but that wasn't so much related to greece or anything in europe. it was partly because equities were doing poorly in the u.s.

but also because we had the police department fed minutes coming up later in the show. we did dip yesterday in the u.s. we're now back above that. but even though the fed minutes might have suggested rate hikes that yield itself doesn't suggest people are expecting it so we'll break that down for you later in the show. 0.68% at the german yield. back below 0.7. still that risk off sentiment in general. u.k. 1.9%. let's have a quick look at forex as well. the euro has just come back off flat which was on earlier in today's trade. off 0.4%. 11034. seema. >> let's get back to greece. the greek government says it's doing, quote, everything possible to reach a deal wits creditors. -- with it's creditors. this after tsipras aplayed for a mechanism.

he said he would submit proposals with credible reforms today ahead of sunday's deadline. >> meanwhile, he says the euro system should not increase emergency lending to athens until a deal is reached. he criticized the greek government for the way it's running it's affairs. >> the greek government not only walked out on the previous agreements but has been widely criticized as an unreliable negotiating partner. a little over a week ago the assistance program finally came to an end and the greek government stopped honoring it's payment obligations toward public creditors such as the imf. central banks though they do have the means have no mandate to safe guard the solvency of banks and governments. that kind of redistribution is a matter for governments or parliaments if at all. >> let's get out to jeff in brussels. you wouldn't expect anything

different, would you? >> no what we heard is really a statement of the facts. we had two failed bailouts and we're looking at the prospect of a third deal here and everybody is quite fed up. where is the commitment? where is the delivery? and this time around with the germans already on the hook for nearly 100 billion euros to the greeks, not surprising that they're saying show us some real solid commitments to reform before we extend any further credit. just one point about the structure, though of the euro zone. i just think it's worth making here and the germans and the french have exploited this. effectively, the structure of

the financial system in europe doesn't work. it means that countries and governments will always have the ability to exploit the researches by exploiting the rules. the greeks are really pushing the envelope on this and this is the point being made to them. if they want to stay a part of the club they really have to abide by the rules. midnight tonight is the deadline but based on what we have seen previously from this government in athens they could turn up tomorrow lunchtime. >> absolutely jeff. i want to move things along to the imf.

it's interesting to hear what they had to say. once again overnight saying that debt relief is needed. but i guess they're increasingly with their euro zone partners aren't they? >> i wouldn't say that carolyn. i think the timing may be unfortunate but i think what you're hearing from the imf is a statement of the obvious. let's be clear here. we have seen surpluses delivered by the greek government but the minute you factor in the debt servicing costs, they evaporate which means effectively greece is running faster and faster to go nowhere so it's very logical that there has to be some reprofiling of this debt or whisper it quitely. possibly a forgiveness at some

stage why start to make a noise about this now and put out that report just as we're getting to a very critical stage in the negotiations. even the germans said they're prepared to put some conversation about debt restructuring on the table maybe in october once we've seen the greeks commit to serious structural reforms. >> thank you for that. trading comes to a stand still on the new york stock exchange floor. has it impacted your confidence? we discuss, next.

the new york stock exchange resumed floor trading late wednesday after a four hour halt. what was behind the technical issue? >> what started as a day concerned about greece and china turned into a waiting game. waiting for the nyse floor to reopen. they discussed connectivity issues. it was quickly resolved and did not appear to effect overall trading.

then at 11:32 eastern time they shut the entire floor down for what they called a technical issue. the nyse's electronic trading platform continued as usual. listed stocks on the other exchanges including nasdaq. trading resumed at 3:10 eastern time and the all important close came off uneventfully. the nyse won't name a specific cause yet but it's possibly due to a software update that caused the initial problems at the open. however the process of fixing that issue may have caused other software glitches that eventually shut the entire floor down. this actually happened several times before though this is the most serious of these types of outages assuming it is a software problem. it wasn't a good day for the nyse but considering there's 11 exchanges and over 40 dark pool with literally trillions of pieces of data that move between them each day it's remarkable

this doesn't happen more often. the last serious problem of this type occurred in 2009 when the nyse was shutdown for roughly 30 minutes. >> let's get back to steven jones. look, you trade us equities on behalf of your clients. did that impact you in anyway shape, or form? >> it didn't. the u.s. equity market largest equity market in the world. 51% of msci developed market indices so a crucial part of what we do for customers and also a crucial influence on other markets around the world but now there's a variety of venues where you can go and trade stocks and take exposure and risk in entities and they function normally. >> you wouldn't change anything about the venue that you want to trade stocks on in the future? >> the key thing is certainly as an institutional investor to have a number of different

venues we have seen technical issues with increasing frequency. people aren't that clear about being able to give a reason for it because the connectivity in the marketplace is so complicated. i suspect in all honesty that they haven't yet worked out why it quite happened. >> we think this -- as we were saying we don't know exactly why but it's just a software glitch and not anything more malicious but the pause in between yesterday when twitter went crazy about this issue does it remind you how reliant we are about technology and is that an issue we're not protecting ourselves against enough? could that cause a more massive crash or meaningful one? >> they had a field day yesterday with the airline outage and media outlets and nyse. i think, yes, security around

market technology and your own technology as an investment management firm is key and well up the agenda and you're spending more and more time and money trying to make sure you've got the right expertise in this. i think it is also as was illuminated by commentary from the u.s. and, indeed other areas yesterday that it's also a national issue. national cyber security on people's radar and their spend. >> these are rare. we had the one in 2013 and the facebook ipo with a technical glitch in may of 2012. but what made this glitch unique is this is one of the only physical trading floors in the world and they take pride in that and how that leads to transparency. but clearly that's not the case. >> that human interaction in

everything we do is now facilitated with i.t. and connectivity and i suppose we are only as strong as that weakest link. >> you just hope protocols in the future will be updated to ensure that these glitches don't happen. they can't be doing anything good for investor confidence. >> it wasn't a great day yesterday. we have work and invest to understand and protect against further outages. >> we'll leave it there. steven jones, cio, thank you for joining us here on worldwide exchange. >> we want to hear from you on this. will the outage impact the way you trade going forward? if you want to join the conversation get in touch with us by e-mail at cnbc.com via twitter or our personal handles are on the bottom of the screen. >> pair mount pictures plans to speed up the home release of some movies in a deal struck with two major theater changes.

it will make two of its upcoming films available on digital home video two weeks after they leave theaters versus the current three month window. in return amc will get a cut of revenue from itunes and on demand sales. they have fought shortening the home video window saying it would hurt box office sales by discouraging people from going to the multiplex but this would happen. if you're going to narrow the window more people will say why do i need to go to the theater? >> especially if it's just two weeks. are you ever going to go to the movie in the first week. >> the premiere no doubt. >> but other than that. >> no i agree. i think it's a fair point and comes down to what the type of film is. a big action movie or whatever you like it being on the big screen and surround sound. >> or if it's jurassic park and you're wearing the 3d goggles.

>> two weeks though is probably enough. >> is it? >> i think it probably is. already if it's not that type of film and you're not desperate to see it then you'll already wait three months because everyone is busy and you're happy to wait. you go to the cinema when it's a film that you're desperate to see months in advance and you're going to see it as soon as you possibly can. rather than what am i doing this weekend. >> it's unfair though. it really is in favor of some of the big action dramas like jurassic world or james bond the ones that have a lot of buzz around them. but what about the smaller independent films. no one is going to watch them. >> that might be good for the film maker though. it's a clear sign of moving with the times and trying to preempt something that's already happening. interesting one. let's move on. winter is long gone but one

mound of snow refuses to disappear. it is actually three feet of snow covered in dirt. however it is a shadow of its former self. so why doesn't it melt? experts say the dirt made a shield which covers the snow and keeping it at 32 degrees which of course is fahrenheit. >> wow, still to come cheering the city of london as the u. k. chancellor makes a change to the levies raised on banks. we'll be back in two. push your enterprise and you can move the world. but to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today.

and stay ready for everything that is still to come.

the ecb plays hard ball with greece. the board member says it's not it's responsibility to keep the nation's banks afloat. >> central banks, although they do have the means, have no mandate in my view to safe guard the solvency of banks and governments. >> a technical glitch holds trading on the new york stock exchange for more than three hours. details on the outage remain

unclear. >> air france lands a deal over pay and benefits sending shares in the airline higher and clearing the way for its restructuring plan. >> all right. let's take a look at european equities and how we're trading. yesterday the big focus was on greece china, as well as the new york stock exchange trading halt. what i found really interesting about yesterday's trade was despite the sell off in asia and u.s. futures trading lower europe was dancing to the beat of its own drum if will you, trading higher by 1% on the xetra dax and we're looking at gains across the screen. >> also i want to show you what's going on in the oil and commodity markets. oil is bouncing back because of economic data out of germany and japan overnight and the bounce back we're seeing. brent crude higher by 1.5%.

wti crude is also seeing a rebound to the tune of 1.5%. 5241 after it reentered bear market territory a couple of weeks ago. >> the greek government is doing everything possible to reach a deal with it's creditors. this after the prime minister applied for a three year loan in order to avoid a banking collapse. speaking with the greek president after his address to the european parliament he said he would submit proposals ahead of sunday's deadline. >> meanwhile, ncb board member says the euro system should not increase emergency lending to athens until a deal with creditors is reached. speaking earlier he criticized the greek government for the way it's running it's affairs. >> the greek government has not only walked out on the previous agreements but has been widely criticized as an unreliable negotiating partner a little

over a week ago the assistance program finally came to an end and the greek government stopped hon norg it's payment obligations toward creditors such as the imf. central banks, although they do have the means have no mandate in my view to safe guard the solvency of banks and governments. that kind of redistribution is a matter for governments or parliaments if at all. >> let's get out to julia in athens. let's assume that banks do reopen on monday given that we have a deal in brussels on sunday. there's a lot of talk out there that the number of banks will have to be reduced from 4 to 2. what do you make of that? >> well i think first thing is first carolyn. there's no way that the banks will be able to open on monday given what we have seen in the past with capital controls. it's going to take time for people to have confidence in the banking sector. a lot of people believe the banks will be needing to be recapitalized. consolidating the banks isn't

something that needs to happen immediately. they need enough confidence going forward. there's a number of elements here if not only the financing that needs to be put in place too. let's get thoughts in here. i'm joined by the author of greece's odious debt. do you think the government is willing and able to come to an agreement with the creditors this weekend? >> that all depends on mr. tsipras's true intentions. he built his whole political career based on antiausterity. we had to change the institutions and now he has to do an about turn on the other hand he can't take it out of the euro zone. >> does he make the choice of the euro? the euro is the most important thing here. is that the decision he makes this weekend?

>> he'll take a deal to parliament. >> can he pass it through parliament? they signed that document back on monday suggesting that they were behind him in an economically social viable plan. do you think he can because that's more vocal over the last few days. >> can a pro agreement majority coalition be formed from this government? and with a series of borrowing the group it could pass but after the referendum the radical left has been bold. >> it's not just about a deal. the creditors already said don't trust this government to implemented. do you think he'll be able to implemented any deal he does sign here? where does that take us? are we out of the woods or do we end up going back to this standoff situation? >> first for the small initial deal there's going to be prior actions. if they're not passed it's a

different conversation but then for the bigger deal in septd it will be very very difficult and the question is what will happen to society here? we had a 62% vote and we need real elections to be able to have the true questions does greece want the euro or drachma. >> you think he is ultimately calling elections and having to ask a different question perhaps right question here yes or no to the euro? >> i think the greek populous answered. he campaigned for the referendum saying no austerity but euro. that was a fake campaign and the greek populous hit that bid. if you have a no strings attached euro why not. now we have to go into the final phase which is what does the greek populous really want.

>> we're not out of the woods yet and even if they sign a deal this weekend we go to fresh elections for this country. >> thank you. i'm interested in that you have just published a note this morning saying we're changing our view and now believe that grexit is the most likely outcome. talk us through that. >> i think it's a combination of factors. the first is the general impression that it's starting to run out and the second is the deteriorating picture in the greek economy. if you want to have a program you need to show a lot of that. and you can go through a large

amount of austerity in the short-term without challenging the new agreement. >> and so overall, do you think that markets are being too supportive at the moment? that they're not pricing this risk in or is that simply because even if we do have a grexit contagion risks are low? >> we have been with this problem for the last five years now, really. at every opportunity we found a political agreement to kick the can down the road and i think that patience is being exhausted. the loans have been made. the debt reprofiling has been discussed. it is very difficult, i think, to see a situation whereby the greek economy recovers sufficiently to have a satisfactory outcome. that's still possible but we need i think, a broad political agreement in greece to back those austerity and in that conditionality and it's very obvious to me at this stage that the deal can be made now. on sunday it's quite likely that there is an agreement between the creditors in greece.

mainly because nobody is yet very prepared for the divorce. but really finding a long-term solution to greece requires an awful lot of growth and we're not sure that the conditions are going to be in place, especially with the banking system unlikely to be operating before even after a deal on monday. >> but you still think that the likely case and likely scenario is a grexit. walk us through what happens next. will greece be forced to accept aid from the likes of russia and could that result in geo political tensions rising? >> i don't think that there is any prospect of money coming from abroad. we've had many opportunities to consider scenarios and we don't think this is credible. what's more credible is greece defaulting on its debt obligations. leading to government issues in script currency. the reason the markets are not too worried about it is we have

been talking about it for sometime but i think the ecb put is quite substantial. ever since the omc ruling by the european court of justice we had a number of council members come out and highlighting the great degree of flexibility if and when necessary to protect the mandate as well as the rest of the euro area. so markets are right in trying to think that contagion will be more limited this time. >> what do you think is the risk that now that potentially greece will be given some form of debt relief by the imf? because the imf has been lobbying that for the last couple of days or so. that italy or pain or ireland or portugal they want to go down this route too. >> well the debt relief can only be based on what has been lent in terms of bilateral amounts of euros and in the case of italy there's been no lending made by the creditors to italy. so i'm not sure there's any case. portugal and ireland might have

a case but i'm not really sure that the conditionality that would be associated with the debt reprofiling is something they want. they have growth and low funding cost. there are clear distinctions between them. it's a give and take. you want to get reduction you have to take more austerity and i'm not sure that this is something that would appeal to irish and portuguese voters. let alone spanish onces. >> thank you for your time. european economist at citi. >> george osborne delivered the first conservative only budget in nearly two decades. in a win for business they announced a cut in corporation tax to 18% by the year 2020. >> this country cannot afford to stand still while others rush ahead and i'm not prepared to see that happen. today i announce i'm cutting it again. britain's tax rate will cut to

19% in 2017 and 18% in 2020. we're giving businesses the lower taxes they can count on to grow with confidence invest with confidence a new 18% rate of corporation tax sending out loud and clear the message around the world that britain is open for business. >> but the budget has been called a double edged sword for u.k. business. he announced a national minimum wage. it would rise to 9 pounds by the year 2020. so of course a lot of tension on this budge before it came out. the first all tory budget for 20 years. it didn't disappoint. a lot of big announcements there and the biggest political announcement was announcing that minimum wage but in terms of other business announcements, cutting corporation tax. there was specific sector things as well but the bank levey being removed. >> that's a big one but i just wonder -- now they want to cut it from 0.21 to 0.1% over the

next couple of years and then replace it by a surcharge on profits worth 8% if i'm not mistaken. isn't that too little too late? because the damage has already been done. so many banks out here have complained a lot about that bank heavy and they have been considering a move to long kong or elsewhere. i just wonder whether that can be reversed. >> what happens with the looming grexit threat and what that means as well. >> this is a very clear move by him. it's not a total given. it's going to be a desentd percentage of profits to pay. but i think banks will be more happy with it. but on top of that corporation tax to 18% is particularly beneficial to large corporations which the banks are and that double edged sword is going to hurt smaller businesses more than big businesses. so this are two sides to this but overall this is his clear pledge to cut taxes, cut welfare but increase wablgges and that

minimum wage increase is very clever and it's offsetting the otherwise harsh image to -- by cutting welfare that he was also announcing. >> he did disappoint the markets though because the guilt issue was less than expected. that was what the campaign was all about. a lot less borrowing but that actually went up. >> yes and he pushed back the year we'll balance our budget but growth was downgraded for this year by .1%. so that had a bit of an effect. but the guilt was a bigger effect on that. sterling hardly moved at all. >> that's true. >> and the guilt was because of issuance. let's have a quick look at shares of the british infrastructure group in the red

today after the company issued a fresh profit warning possibly indicating another loss for 2015. it's down 2.4%. shares of other u.k. home builders rising because they're pairing some losses from yesterday after market reactions were overdone. they were bouncing back today. >> shares reacting positively to the news that the airline struck a deal with the dutch pilot union. let's get all the details with stefan in paris. >> they agreed to freeze the salary for the next three years and also agreed to an increase of the age of retirement and also the accepted a series of measures to increase their product activity productivity. in return the airline will share the profits with the dutch employees. that's good news because it's part of the cost to savings

program and this could unlock the deal. the negotiations are very difficult. it's very tense since the strike last year that cost almost 400 million euros to the company. a few weeks ago they announced it would spit out the implementation of the new cost reduction plan including the change in european countries and last but not least it's also planning on postponing the delivery of some aircrafts. this is good news. that's the reason why the stock is performing well today on the french stock market. >> thank you so much for that stefan. stick around because london is waking up to a day as a strike called by transport for london

staff and drivers shuts down the city's underground train network. the 24 hour walk out began yesterday evening impacting londoners commute home as crowds gathered outside hoping again to hop on a train. luckily the weather is expected to be sunny and warm today. perfect for a nice walk to work. stefan come in here because you guys in paris have quite a lot of experience with strikes. can you give us some good tips? >> yeah from the strike. well actually we didn't have any major strike in french transport for awhile. but it's true that for parisians are used to it but paris is much smaller so you can always walk in paris. i don't think it's the case in london to be honest. >> that's a very good point. it's too far to travel and the traffic on a day like this becomes an absolute nightmare. seema, you guys don't often have strikes in the u.s. >> we have strikes. fast food workers, organizations do but on the transport side not that much. i checked uber.

it was three times. a friend took a uber to the airport from chelsea. guess how much it cost? 153 pounds. it's insane. >> you multiply it by three. >> take a look at the disruptions of one day of having no tube what it causes. >> i have to bite my tongue on this topic rather than expressing my strength of feeling on strike action. i'll just say that and nothing more. >> well, look i've always been the one who said why is everyone striking because in germany we never strike but then you know what, that changed completely over the last year. we've seen how many strikes by the pilot unions? >> does this lead to a viable outcome? do we have higher wages? something we'll continue to discuss. moving on coming up on worldwide exchange vladimir putin gives china a vote of confidence. we have the latest on their blossoming friendship.

welcome back. new revelations in the on going toshiba saga showed they manipulated their accounting

system to delay losses. we're joined live from tokyo. >> thank you, wilfred. toshiba intentionally manipulated it's accounting methods. the company's stock dived by over 7% and this is on top of their stock already plunging by 16% since the accounting scandal came to light in may. the president speaking at the annual shareholder meeting last month called it the biggest crisis in the 140 year history. toshiba had been overstating it's profit for an aggregate of 55 billion yen. e-mails have been discovered from supervisors in which they urged to delay the booking of losses and has become apparent that over several years the top managers pressured subsidiaries to meet budget targets and this likely prompted subsidiaries to pad their books repeatedly. the discovery of such deliberate

maneuvers could prompt penalties on toshiba for false identifying earnings report and could see top management being forced to step down. that's all from the nikkei. back to you. >> thank you very much. >> shares in retail closed higher after a 36% jump in profit. this thanks to sales and a weaker yen. but sales are likely to undershoot forecasts. >> moving on russian president vladimir putin says he's confident that china can overcome the recent stock market volatility. his comments came on the first day of the brick summit where president putin held bilateral talks with the chinese president. the summit is attempting to deepen economic ties between the five nations. joining us to discuss more is chris weaver founding partner of macro advisory. i want your thoughts on the statements coming from putin. these are politically motivated comments. >> for russia for president

putin he has two objectives with this summit. one is political and the other is economic. on the political side we have seen this so-called asia pivot. there's been a bad reset with relations with the west. that will remain bad for a very long time but most definitely a shift politically toward asia which suits the chinese as well as they build up their rate of support but on the economic side russia is also desperately in need of investment. it wants to diversify it's trade partners and it's looking to china and other countries as a force of future investments. >> how close do you think china and russia can get? clearly economically they're getting closer and superficially they're certainly getting closer but they're never politically going to be totally aligned are they? >> no that's right. they're dancing around each other. they both have a common purpose which is to create some counter

balance to what they both see as excessive western influence, u.s. influence in particular. but there is a suspicion. they see china as a dominant economy and particularly a big major political force so there are limits to which russia will go toward -- if you like, becoming too close to the point where it might be suppressed by china. so there's clearly a big geopolitical game being played out here. russia would like to counter balance the western influence with china but doesn't want to get too close to china and is probably making that message clear with europe and the u.s. as well. >> you could really transfer that rational to the four nations. just wondering how much cohesion there can be between those four. you have china and india moving full steam ahead. even if we're seeing some slowing but they still have very

very high growth rates and then you've got brazil and russia on the other hand and their economies have been under -- in so much trouble of late. can we really expect the top two countries to help the other two? >> well that's exactly the point you make is very correct. for china and for india, the motivation is very clear. we put aside politics. they are both big consumers of commodities. they both rely on commodities and if you look at the other three smaller countries in south africa brazil russia they're big exporters so securing your economic supply lines makes sense for china and india but at some point russia which has ambitions to become a more diversified bigger economy looking into investment like agriculture technology transport, et cetera they have to really create a broader appeal. not just to china and to india.

so for now it suits the purpose because of sanctions and geopolitical. it suits russia to be able to say, look, we have friends in china and india. we're getting money and support there but i think that is really only one step. for russia it would be extremely dangerous to become nothing more than a raw material supplier to these countries and everybody knows that. >> but do you actually think they would deepen their ties and work on the bank that a lot of people were talking about. now china has the aiib and that's really their project. >> yes. it is certainly -- when you look at russia within the economic union, a big motivation for that is to benefit from the economic belt that china is creating. yeah we'll see closer ties but it's very clear to everybody that the process of integration is very much on china's terms.

in other words china has been offering investment and economic cooperation to suit it's agenda. we had that quote from the ceo when he went to china looking for money and he came back and said we were in a long queue of people waiting for money and nobody called us to the top of the queue. compared to this time last year where asia pivots the move was the political slogan. now there's more reality in the situation. it's part of diversification. >> chris, thank you for joining us.

welcome to the second hour of worldwide exchange. i'm seema mody. >> i'm wilfred frost. >> the shanghai composite with the biggest one day percentage gain since 2009 after beijing stems the volatility. >> u.s. markets also set for a major reversal with the dow poised for triple digit gains after ending the session yesterday at a five month low. >> the ecb plays hard ball with greece. it's not their responsibility to keep the nation's banks a float. >> central banks, although they do have the means have no

mandate in my view to safe guard the solvency of banks and governments. >> all systems down. a glitch halts trading as the details of the outage remain unclear. >> hello, everyone. i'm carolyn roth. coming up on the show the numbers are in the can. pepsico reports second quarter earnings before the opening bell. we pour over the details you need to know. >> movers and shakers. we'll discuss what blockbuster deals could be in the works. >> plus paramount breaks with tradition in a bid to turnaround hollywood fortunes. all the details coming up. and it was a day on wall street. the twin fears of china and

greece being an overhang for traders plus that new york stock exchange trading halt which resulted in 3.5 hours of no trade. the dow indicating a higher open. we could see a rebound in today's trade. dow up about 124 points in premarket trade and the s&p 500 up about 16. let's take a look at the ftse ftse cnbc global 300 index. given the type of macro fears in the market specifically when it pertains to the volatility we have been saying in china. it's a good way to assess how stocks are trading around the world. as we are pointing out a rebound overnight in asia. what is happening in europe after a positive session yesterday we continue to move higher. perhaps the greece exit is already priced in. one trader eluding to an ecb put. cac 40 up 1.2%. the xetra dax seeing a major come back. but still below 11,000.

the ftse 100 up about 42 points or about .7%. how are ponds looking carolyn. >> yesterday we saw that drop below 2.2% for the u.s. treasury yield and today it's back above that level 2.23% but yesterday that was a five week low. in term of the german yield below the 70 basis points handle at 68 and the ten year yield steadying at 1.9% and the currency markets we saw that dollar weakness yesterday on the back of the fed minutes but today the dollar is higher against the yen. that tells you that some of the safe haven flows are abading but it's still close to six week lows. euro dollar is down by a third of 1%. trading at 11040. the flows in that pair are limited going into that greek or summit on sunday. also want to show you the aussie dollar because that's a proxy for china. that's been under a lot of

pressure over the last couple of trading days but we're rebounding because china is moving higher but but better jobs data. copper up 0.6%. >> thanks. if we needed confirmation that the greek economy is in a tough place. we just got it. greek inflation and unemployment data at 25.6%. that's been revised from 25.8%. we also have consumer prices coming in at minus 2.2% year on year. in may that data was minus 2.1. falling slightly still in negative territory. the monthly figure is plus 0.6%. euro not moving off the back of it. still down 0.4%. chinese stocks have bounced back in a major move to temper the

sell off, they stopped large shareholders from cutting their stakes. it will last six months with those not adhering to the rule facing serious punishment. let's get out to martin in singapore with all the details. >> good morning. thank you very much. it was the ban on big owners of companies not selling but it was also the eased back on margin requirements for investors so together this is what helps the shanghai market pop up 5.8%. you talked about it biggest single session percentage gain since 2009 but here's the interesting thing. we were talking about this awhile ago. there's a lot of chatter in the market. we have people coming out with notes and saying one thing to watch out for is a policy response from china. we're talking on the scale of the fed in 2008. let's say the ecb in 2012 as

well doing whatever it takes. bringing all the forces of chinese authorities to bear and their money to try to stop this market right here and to put a bottom under things. that's one thing we're watching out very closely for. could take some time for them to assemble the tools and figure out how to use it but that could be what it takes. a policy response and just an update here there are 2800 in hang shy. also down south. this is a tech heavy market. 1 in 2 are suspended, frozen from trading. they're inactive. if people or investors are in losing positions they are lacked down. they're not going anywhere and they certainly can't get out. so that's not good news. >> thank you very much. >> it's been nearly a month of market meltdown in mainland china. what does this mean for gold

boone or bane. find out if they're getting a bid. >> the new york stock exchange said an internal technical glitch lead to the four hour outage on wednesday unnerving investors already rattled by greece and china's market melt down. it's the longest tech related outage in recent memory but it went on uninterrupted as orders were carried out and a dozen other u.s. exchanges. they were able to reopen for the close but when stocks are trading exclusively at their listing venue. nyse president tom farly told cnbc they're conducting a thorough review. >> do we need to change our protocols? absolutely. this can't happen again. exactly what those changes are i'm not yet prepared to say but looking forward in the future we're going to continue to invest in our markets. the markets are complex. the technology is complex. we're building a new technology platform we'll roll out this

year that's going to be a simpler trading platform. we are going to improve and continue to evolve. >> a decade ago the nyse handled 80% of all us stock trades but now accounts to 20 to 25% only. as it competes against others. wednesday it handled 6%. most of that near the close. >> let's give you a run down on what to watch this trading day. weekly jobless claims are out at 8:30 a.m. eastern. first time filings for unemployment benefits are expected to have dropped slightly within the last week. several fed officials are speaking today. among them the kansas city fed president on the economy and fed governor brainard on financial regulation. pepsico reporting before the opening bell. >> minutes from last months fed meeting aren't offering many clues as to what will spark a u.s. rate hike. only one of ten officials was ready to pull the trigger in

june but that person expressed a willingness to wait another member or meeting or two. neither said what they wanted to see before they hike rates. they expected to raise rates in september. >> now would you turn down $30 million for a business idea? coming up we'll show you what happened when the creators of an online dating app appeared on primetime. that's coming up. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?

welcome back. a bouncing back from the new york stock exchange outage. the dow ends at a five month low. it still bites but down to the last two, lockheed martin still in the running to buy united technologies helicopter business. >> jack lew and christine lagarade increased pressure on european leaders to grant debt relief to greece. they said it was clear greece was in need of debt restructuring. >> meantime ecb board member says the euro system should not

increase emergency lending to athens until a deal with creditors is reached. speaking earlier, he criticized the greek government for the way it's been running it's affairs. take a listen. >> the greek government has not only walked out on the previous agreements but has been widely criticized as an unreliable negotiating partner. a little over a week ago the assistance program finally came to an end and the greek government stopped honoring it's payment obligations toward public creditors such as the imf. central banks, although they do have the means have no mandate in my view to safe guard the solvency of banks and governments. that kind of redistribution is a matter for governments or parliaments if at all. >> these are hardly surprising. he's always been an out spoken

critic of greek's economy. >> absolutely. they don't feel that the european central bank and it's funding facilities should be used to bailout a country that hasn't observed the two rescue missions that it signed up to in 2010 and 2012. so i think just a reminder from him that we are not in the business of financing deficits or financing debt as far as greece is concerned and the banking system in greece is where it is because it hasn't pursued appropriate policies. i want to weigh in on treasury secretary jack lew. i'm sure he would like to see a greek deal this time around with the euro zone because he is concerned about the situation in greece from a humanitarian

perspective and it would be the right thing to do but a number of other reasons why the americans might like to see a deal the fed mentioned greece and it was in the last set of minutes and i'm sure that it was it shall the u.s. government doesn't want to see a crisis in greece become an excuse or a reason for the central bank in america not to pursue an independence interest rate policy. and the other strong reason i'm sure is that look at the exchange rate. we're 110 and there are still some forecasts out there for us to go to parity every time the euro gets cheaper because of this crisis against the dollar. that clearly impacts the export performance of america against germany and other european

countries. back to you. >> we also heard, i wonder what your latest reading is of what angela merkel is thinking and whether she is really the key person on this creditor side of the negotiations. >> the greex owe them the most of all the countries because of their primary role as the largest economy in europe. the germans also have a system for legitimizing any further support for the greeks if they are to get this esm request approved. it will have to go through the german parliament before it can be rubber stamped. so for the sake of making sure that there will be support ultimately for a deal it's

incouple ben upon chancellor merkel to make sure that she gets greeks to the table with solid and transparent reform proposals. just back to the question of where are we in this whole story, we're waiting on proposals by the end of day tonight and it's by no means clear that greece will avoid exit from the euro zone at this stage. back to you guys. >> thank you so much for that. let's bring you the latest flashes coming out of turkey. we have a flash saying the current turkish pm from before the elections, he says that the president will probably give him a mandate to form a government on thursday. we still haven't formed a new government but the previous pm saying that he is likely to get given that mandate to form a government although it won't be a majority government as we know. >> all right. it's not just bike riding and white water rafting that takes

place in sun valley. deals are being made. we'll tell you what to expect at the annual conference in sun valley.

now, quality or quantity. what are you looking for in a dating app? perhaps you're looking for both. i don't know. three sisters had an idea for an app which tries to find better

matches rather than offering countless profiles to flick through. it's called coffee meets bagel. >> the idea so impressed the entrepreneur mark cuban that he offered the sisters $30 million. they turned down cuban's offer saying that they wanted to grow it into a much bigger company. >> if i offered you $30 million for the company, would you take it? >> no. >> okay. >> he offered you $30 million and you din even flinch. >> all right. i love that story. joining us now is one of the three sisters that founded coffee meets bagel in studio. a pleasure to have you on the show. >> thank you for having me. >> mark cuban is a well respected venture capitalist. why did you say no to him? >> we mentioned on the show it was very flattering to have him

offer us $30 million. we actually went there asking for 5%. $500,000 which puts us at 10 murder in the second degree valuation. to have him benchmark us at the biggest offer in shark tank history was flattering but we believe we have a team and a model that really works. that has the potential to grow as big as or bigger than match.com. which is generating a billion dollars in revenue now so we couldn't say yes. >> coffee meets bagel is promising quality, i believe one match per day. does that work for those that like to have a large pool to choose from? >> i think it's ironic. in today's world where a lot of online dating companies are all about putting as many profiles as possible to the users and in that model it may feel like you have a lot of options. however it's ironic because those connections that actually happen in the app don't really

translate into real meet ups because people don't treat it as seriously as they should. the reason why we actually give you only one match a day is because we want you to carefully think about this person. instead of spending like 0.5 seconds and swiping a left and right. >> your app works through facebook so you connect with friends of friends as opposed to just anybody out there. >> the reason why we use facebook require facebook to log in is two reasons. one is to make sure that people use their real identity. fake profiles online is one of the biggest problems in online dating and two it's exactly what wihf mentioned we want to match you with friends of friends which is indicator of like common indiancome common interests and similar social backgrounds. >> but surely the whole point is to meet totally new people? don't you want to keep it under the radar. >> but like minded individuals

you can meet someone you want to date. >> having friends of friends as a match. so we don't necessarily give you friends of friends match every day but when we do there is 37% more likely chance that two medium meaning they will connect or mutually like each other. so it does have a very positive impact. >> your app is free so i'm wondering how you generate revenues. whether you actually make money right now. >> so our app is free to download and use however we use a model called freemium. so you can earn coffee beans by inviting friends or buy and they allow you to do some additional features such as finding out the identity of mutual friends you share with your match. >> do you want to go public one day or get acquired by a larger dating site by match.com. >> our goal is to help singles all around the world find the right person. >> well, that's a nice phrase but 25 million introductions

you've made. only 150 marriages. that's not a great return is it? >> actually if you think about it it's only been around for three years and it takes awhile for people to turning that meeting into a marriage. >> that's a fair point. >> so the rate is accelerating and we're very proud of the fact that we have so many couples entering marriage right now. >> launching in london today. >> we are launching today. >> so traders out there that are sij there today. >> why are you coffee meets bagel. >> the bagel the match comes every day at noon. what's the one thing every young professional? coffee. and what goes good with that bagel because we started in new york city. >> moving on it is dubbed summer camp for moguls. the gathering of big names in

sun valley idaho. julia has this report on all the buzz at the conference. >> from disney ceo to tesla and spacex ceo elon musk. from jeff besos to tim cook. it sparks conversation and deals. >> there's always consolidation. consolidation is the nature of things. >> we're always looking for acquisitions. >> attendees are buzzing about elon musk that took the change along with chairman reid hoffman. talking about the potential to grow tesla with it's new suv in the works as well as spacex needing to overcome the recent explosion of one of its rockets it called a set back. >> we want to look at it but also take a thorough view of the data and see if there were any near misses. could there have been something else that might have gone wrong

and what we need to do to fix that. our goal is to have the most reliable rocket ever. this is going to be launching astronauts in a couple of years so it needs to be super reliable. >> while attendees talk about musks comments about space and head off on the white water rafter trip they're watching out for the next wave of deals. verizon's acquisition of aol. the prior year it was jeff besos's purchase of the washington post that took root. we'll be watching for the next big deal. >> still to come on the show a debt cap balance or the start of recovery. we bring you the latest. let's look at futures and how they're trading this friday morning. we're up about 146 points as asia markets close higher.

you're watching worldwide exchange and i'm seema mody. >> i'm wilfred frost. >> the shanghai composite posting the biggest one day percentage gain since 2009 after beijing takes pressures to stem the volatility. >> u.s. markets set for a major reversal with triple digit gains at the open after ending yesterday at a five month low. >> the ecb plays hard ball with greece.

the board member says it's not their responsibility to keep the nation's banks afloat. >> central banks although they do have the mean versus no mandate to safe guard the solvency of banks and governments. >> all systems down. a technical glitch halts trading on the new york stock exchange more than three hours as details on the outage remain unclear. >> and there were three stories the market was focused on yesterday. greece china and the new york stock exchange. ending lower but today here on thursday premarkets suggesting a higher open. the dow up 146 points. interesting enough they have been taking queues from asia and concerns over the volatility in the chinese market. in today's session asian markets ending higher. perhaps a little bit of a relief rally. more commentary coming from beijing that they will do more

to stem the volatility that we are seeing in the chinese market. there's been this widespread belief that the central bank can do whatever it can to create economic success in china but now that's being questioned given the crash that we have been seeing in shanghai stocks. the composite ending higher by 5.8%. hang seng index higher by 3.4%. a big sell off in japanese stocks pushing the index below 20,000. a key psychological level that trards watch. ending higher by .6%. let's show you what's happening here in europe. the countdown continues until sunday. will greece propose new deals that creditors will accept? xetra dax up 1.5%. we did get news from local media -- we did get news from local media that greek banks will stay shut until monday. cac 40 up 1.6%. also a look at the italian markets up about 1.5%. >> seema, the nyse resumes floor

trading late wednesday after a near four hour halt. here's a look at the play by play that unfolded on wall street. >> welcome back. while we were in commercial break traders here at the nyse in really one moment just said whoa and started running to various parts of their post. you can see these screens on the posts all around the floor now saying no quotation for about every stock. >> this is the tech nerve center and what you can see here and come on in a little bit scott are officials essentially in charge of the tech operations trying to figure out what's going on. >> if you're just joining us this morning, surprise, all trading is halted at the nys is e and has been since 11:32 a.m. east coast time. pete williams of nbc news saying two u.s. officials tell him there is no tie between what's happening here at the nyse and what happened to united airlines

earlier this morning. no indication at this time that this was caused in anyway by a cyberattack. >> the most likely explanation is a software trading -- a software issue. the systems are updated constantly. >> we're off to a slow start but at least it is a start. >> here we are at the close with the dow jones industrial average down. volume close to 300 million shares. >> sarah joins us from new york. do we know any more details about what was behind that trading glitch? >> we don't know exactly. we know it was certainly a software issue and internal issue from the new york stock exchange. it's on the front pages of the newspapers here. glitch nation. obviously a big story as the new york stock exchange has been a symbol of our entire market in this country but i think the buried story underneath the headline is that markets function properly. stock continued to trade. it wasn't like the glitches you might think of in the past that would actually stop trading.

and that's really the takeaway here is that what's happened in the stock market has become so fragmented that there's more than ten official exchanges and dozens of so-called dark pools where stocks can trade off of the new york stock exchange. we were talking to art, of course floor broker long time on the floor of the new york stock exchange and he was saying this is the opposite of the gnash crash in 2010 where you couldn't get the price and had a crazy dpaps with a lot of fear and panic. we didn't see that. stocks were lower. the dow was down before the trading glitch happened at 11:32 a.m. and the other plus here it was able to open again at 3:10 ahead of the closing bell. traders are saying that was really important that we could get the final trades. mutual funds and other big stockholders have to price out their portfolios at the end of the day. that would have been a problem if it didn't open by the close. we got it open at the end or at least the new york stock

exchange did. we talked to the president tom farley. he said this was a tough day. not a good day. it was an embarrassment and black eye for the new york stock exchange which is a huge symbol but the bottom line is it did not effect trading which was already anxious on headlines out of china and europe. >> sarah, you had a front row seat as this drama unfolded. what was the reaction from traders as they first got word that trade was halted and is this going to impact investor sentiment going forward? >> well the sentiment question is really key. we know that americans already have pretty lousy sentiment toward stock market investing. three years ago it happened at the nasdaq which also lasted a few hours. i'm sure you remember. that was sort of alarming. we had the flash crash as i mentioned. the facebook trading debacle.

all of these headlines don't help a public sour on the markets and has never come back to stock since the financial crisis but being there on the floor yesterday was interesting because all the traders threw up their hands. they couldn't trade. they didn't know why. they were watching cnbc and turned up the volume. it was important that the new york stock exchange came out early and said this was not a hyper hack. it was a funky day because earlier in the day united airlines had a computer glitch and stopped those flights and at the same time this was happening the wall street journal.com mysteriously was also out and had an error message so there was talk around that it could be a coordinated thing but that was early said not to be the case. in fact josh ernest gave a press conference yesterday where he said no activity from what we can confirm. so it's an eye on the close let's hope things open.

which they did. we'll watch the open today. the world will be watching to make sure that the new york stock exchange opening at 9:30 in a few hours. >> they're rare but when they happen the catch the attention of global investors. thank you for joining us here on worldwide exchange. we'll see you on squawk box. >> still to come on worldwide exchange, alcoa kicked off the u.s. earnings season with a set of mixed results. we hear from the company, next.

can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?

all right. aside from greece in china there was stock specific news. reports indicate that hocklockheed martin emerged as the final bidders to bayou nighted technologies. it could be valued at $5 billion. they already worked together on many helicopter programs including marine one for the white house. that according to reuters and you can see lockheed closing down but textron up 2.8%. i'll give you a look at united tech closing down by 1.3%. >> seems like some story is ever present at the moment but maybe the focus on that will change because alcoa kicked off second quarter earnings season in the u.s. with a mixed set of results as the continues to deal with lower metal prices

worldwide worldwide. let's get out to landon. >> good morning. a slight rise in second quarter profit helped by growth in the auto and aerospace markets that narrowly made up for the global aluminum glut that keeps a lid on prices. the first major u.s. company to post results posting earnings of 19 cents a share. revenue rising 1% to 5.9 billion which beat forecasts of 5.8 billion. they have fallen more than 10% this year as china floods the global markets with aluminum steel and other exports. they have a major factor behind the plunge in prices. they're doubling the forecast for the surplus this year as beijing hasn't cut output as much as expected. >> china is going from a high growth economy to a medium high growth economy. the leadership is taking actions around this and i think we're seeing some of this happening.

but at the same time honestly for alcoa the most important thing is we have to do the things that we control. i cannot control what china is doing but i can can control what we are doing. that's our strategy. >> alcoa is responding with efforts to reign in cost. including one in brazil. they have cut capacity by 1.5 million tons since 2007. alcoa benefitted from auto makers buying more aluminum to make their vehicles lighters to ramp up fuel efficiency. that compares to beer companies. the global world's product business makes sheet metal at 9%. it's engineers product business rose 4% with a boost from recent acquisitions like the u.s. based rti. alcoa fell about half a percent in europe.

>> back to you. >> landon please. >> let's all say it together. landon, thank you. >> guys come on. join in on the game. >> i'm going to try that again landon. we're going to try it again. landon, thank you. >> landon have a great day. >> we useless. >> thank god none of us are in orchestra. that's all i can say. let's move on food and beverage giant pepsico reports q-2 earnings before the bell. the strong dollar is expected to have some impact on numbers but analysts are pointing to strong growth. shares in pepsi are up nearly 7% as you can see yesterday down just under 1%. so let's have a little talk about pepsico. cost cuttings on going. a lot of promotional spend. that's what the focus is on today because that quarter has been kite solid. >> yeah everyone knows about emerging market weakness.

that's not new for pepsico. everyone knows about the strong dollar. that's baked into the cake or the fritos as we would say. but what's new is the pricing environment for the second half of the year and in a note this morning they say that they really want to get a better idea of what the promotional activity was like around the july 4th holiday. that sets the scene for the second half so those comments will be closely watched. >> pepsi announcing a string of appointments. perhaps that's part of the move to focus more on the american consumer which is now turning toward healthier options but you point out that currency is obviously a big factor this earnings season but i know it's something that we'll talk about for every company but it took off $1 billion of pepsi's earnings the last quarter. that's a huge amount. >> you're right. they get 50% of their revenues from abroad and analysts over at rbc, they expect an 11% hit to

the numbers even though currencies over the last quarter have been a little bit more stable. >> wiped $1 million from sales in it's first quarter. >> big impact. >> something we will continue to watch this earnings season. >> moving on paramount pictures will speed up the home release of two of its movies. the studio will make two films available on digital home video about two weeks after they leave theaters. that's versus the current three month window. in return amc and ciniplex will get a cut from sales. >> let's remind you of the headlines. bouncing back from the new york stock exchange outage is dow is posed for triple digit gains. this after the shanghai composite posts the biggest one day percentage game since 2009. and down to the last two. they're in the running to

buy united technologies helicopter business. we're back in two.

welcome back. we're getting comments from the president of the federal reserve bank in minneapolis. he's saying it could be easier with more government debt and saying that neutral rate has dropped giving the fed less room to maneuver and that more government borrowing could lift the market real rate and it doesn't comment on the current, economic monetary policy outlook. this coming after yesterday's fed meeting minutes which is no headline there. >> in the meantime we had a big referendum and sell off in china and they can factor that in. >> it's interesting to see whether the external factors like china and greece could

change when the fed lifts off. that's something investors had been debating and traders will be watching closely. what can we expect in today's trade? . it's been the macro headlines that is moving asset classes up down, and all around. right here on thursday we could be in for a rebound. >> let's have a look at european market which is have strengthened today. now it's just under 2% for the main continental forces today which is some what surprising. there's no real postpositivity coming out of the greece story today as we approach the crucial summit this weekend but china did bounce back. >> they stopped large shareholders from cutting their stakes. the csrc says the ban will last six months with those not

adhering to the rule facing punishment. joining us is dan morris. global investment strategist. thank you so much for joining us. look i saw a real interesting comment by a broker this morning. he pointed out that the chinese stock market wasn't really correlated to the chinese economy when it went up so on its way down the two shouldn't be correlated either. agree or disagree? >> well certainly that's what we hope. when you think about when you had the more than 100% gain it's not like people's perspective on china got a lot better that we thought the economy was celebrating. you realized it was specific to the stock market and what was happening with retail investing. it should be the case because we had this pretty significant correction doesn't mean we expect to slow down in the chinese economy. the risk being with the margin selling who is getting hurt what effect that might have on retail sales but we think it is tempest in a teacup.

>> dan, of course china is meant to be an a big financial liberalization path which has been welcomed by the foreign community. these extraordinary moves toward the stock market in the last week or so does that totally unwind is on a path to legalization. banning shareholders from selling anything at all and freezing the trading on other stocks is pretty outrageous isn't it? >> you've seen intervention from government governments in the past. and what they did by buying shares seemed to mark the end of the route at the time. similarly in japan. it's not something that from an outside perspective you welcome but it can work. i think the other point to keep in mind is you can see more liberalization because of this if the big volatility or run up

and collapse in the market is driven primarily by the fact that 80% of the investors in the domestic markets are retail you want to have more openness so you get more institutional investors that will be more patient about what they buy. >> i'm worried about the retail investor that took out loans to buy chinese stocks. they're having to pay off margin loans. how big of an impact will this have on the health of the retail investor? >> that's one of the big questions. it's also a function of who was it that was buying these shares, when did they buy in and what are they going to be liable for? we're paying attention to see what the effect might be. perhaps it's encouraging that if you look at retail sales growth in china up until the peak in the market it's not like it had been going up particularly high. it had been negative in some cases so you didn't see necessarily the benefit running up so hopefully the imctn the down side which will be there but we think it will be more moderated.

>> i'm curious what you think about thenflaonoutlk given that as a result of the china worries we have seen a big drop in commodities and oil prices with wti trading at three months lows in yesterday's trading session. to what extent does that challenge the central banks inflation outlook. >> it's i question of how long you think this downturn is going to last and we do think with commodities and oil prices in particular it will be a short-term blip. not like we're expecting a huge recovery but we're not anticipating significant slow down in the chinese economy. the outlook is for slow growth toward the end of the year. that's quite good. so we think the weakness in commodities is a function of the anxiety around china and some degree around greece and once we get through this we'll see some type of rebound and that's going to feed through to inflation expectations which have been rising. >> one eye on china and the other eye on greece. greece has been creating some volatility in european equities

but do you think it's changing the underlying fundamental factors when looking at the european economy? >> that's it. there's two ways to interpret the relative calmness in the markets this week even with the volatility. the view is that the markets are assuming there's not going to be a grexit. but the other view is there will be a grexit but it won't matter. even if you do have a grexit it's hard tore see the connection from that event to u.k. corporate profits. they wouldn't materially be effected. that may be what you're seeing in the market. maybe a little bit of both at the same time. so regardless of the outcome you look at european earnings and ult multiples the market does look attractive to us. >> thank you for joining us. dan morris global investment strategist at tiaa. >> so we're asking you is china still an investment opportunity

or are the market swings just too tough to navigate. head to cnbc.com to cast your vote. how are futures looking? >> let's take a look. we're in for a positive session on wall street after stocks moved lower. a rebound could be here. as we're looking at european stocks also higher. >> absolutely. higher in strong fashion as you can see. the french and italian index shy of 2%. the u.k. up the best part of 1%. it follows at the sent returns and the week has continued. greece has become less of an issue for markets. it's not like we have had clear positive news out of greece but markets rallying nonetheless. that's all we have time for today on worldwide exchange. thank you so much for watching. i'm wilfred frost. >> we'll see you tomorrow. next up is squawk box.

the banks remain closed and now new reports say some of the nation's largest financial firms need to be closed or taken over by rivals. ibm said it made something better than anything else on the

market. >> taylor swift's 1989 is now the fastest selling album in more than a decade. it's thursday july 9th 2015 and squawk box begins right now. >> live from new york where business never sleeps this is squawk box. >> good morning. welcome to squawk box right here on cnbc. becky and andrew are off today. the new york stock exchange looking to get back to business as usual this morning. after a technical issue halted trading for more than 3.5 hours yesterday. there's tom farley on cnbc yesterday afternoon. >> around mid-morning started to see some concerns about the way trading was occurring. customers weren't getting all the messages back. i made the decision