and welcome, everyone to "worldwide exchange." >> positive earnings but chinese markets wall low in the red despite reports of a further 50 billion yuan stimulus from the central bank. >> china worries take their toll by they weather the volatility. >> michigan stock loses air after the french tire maker warns of headwinds in the second half of the year.

the firm, however, sticking to target. luxury stocks are one of the bright spots as they reap a week of euros after solid earnings. all right. and to our top story. another volatile earning. its largest liquidity injection since the month of july. meanwhile china securities regulator is looking at what it calls, quote, share dumping, its biggest one-day drop since 2007. let's check in on markets. live in singapore. >> the dust seems to be collapsing on the collapse in the chinese equities markets

after the rough morn sessions. we were down by 3% earlier today. almost one and a half thousand. a daily downward limb it. so there will be a composure returning to the market if you can call a 1.1 settlement composure. remember where we were this time at close yesterday. off by 8.5%. so the government's pledging and affirming its commitment once again to buy stocks. the pboc pumping liquidity into the markets as well. that's helping to settle dust to a further degree. i wouldn't write off any volatility. there's still 5% downward to go. that's what a lot of market watches are telling us. so the best way really if you want china exposure at this point in time is to avoid it. that's the message we're getting outright and put your money to

work on the h shares in hong kong. the gap is quite high well over 30%. in terms of the spillover effect it seems to be relatively contained. we're all watching jakarta and malaysia. those two currencies have been the worst performers in the asian fx space so far. so they really seem to be in the firing round in terms of the currency and the market as well. see ma seema, that's where we stand. back to you. >> whenever we receive a big slump in the markets of late we've seen the government come in with very heavy-handed intervention. do you think the market is getting increasingly used to that and they're getting almost come play aunt with the falls because, wow, stimulus is getting set to come? >> i think you nailed it.

i think the government beijing, have really unwittingly created something of a moral hazard because the intervention the month-long campaign we've seen over the course of july has really created something of a carte blanche for spk laive activity. i think the message is that even if we see a washout, there's going to be a bailout. that message is going to continue and it's going to continue to really distort us at prices in the chinese market i mean you can't continue indefinitely propping up the market. at some point in the evolution of the capital markets in china, beijing has to step back. exactly when they're going to do so, walk back from the intervention is a big open question in the current environment. >> okay. thank you so much for that. seema, how are the markets looking? >> after some of the managements moved lower, we're looking at the bulls really being in charge here on tuesday. the stock is up 600.

index up just about 0.4%. we've been keeping an eye on the currency. the euro hitting a high on the number. here where we're seeing the buying and where we're seeing the selling you'll see that the ftse 100, and the uk gdp 100. we'll look at whether the commerce will have a growth. as we take a look at the european markets, the ftse up. xetra dax moving lower, clawing back some of those losses up by around 41 points. the trading being dominated by earnings, not as much by greece and china. the french market's up about 20 points and a quick look at the italian markets, one of the out performers up about 1.3%.

carolyn. >> we geesht a lot of speculation and news tofrmd i want to tell you about that trading at the top of the f 00 to honeywell international for $5.1 million, this after they report a headline loss. meantime rsa also near the top after zurich insurance confirmed. this as the grapples with tighter regulation. zurich insurance off by 1.6%. take a look. rsa insurance up by more than 11%. michelin, we're off by 6.3% this despite the company reporting the net profit rose 13% in the first half thanks to strength in its north and european american markets. plus coming off, we'll speak

with our guest. once again the momentum seems to be to the downside. oil three dollars away. low, $43, $46. traders will be watching how the fed reacts to the drop in oil prices. plus we have a drop in inventory. that will be important. plus a second round of inventory numbers coming out on friday. that could be important for the trade on brent crude which is at 52.36, another 2% today. >> that's another big drop in today's trading session. actually this morning a half hour ago brent has dropped. it's off 2.1%. earnings were hit by 9.8 billion dollar charge which

relations to the oil spill. >> they're resulting in more cuts to spending. bp, however, maintained its dividends. >> stott oil has beat forecasts. the norwegian oil giant is retaining its dividends. you can see statoil up. you can see why are markets surprised. we knew this one-time charge with the doj was coming and we knew it was a chaking time for the majors given what we've been seeing in brent crude. >> absolutely. they've been saying european oil majors have underperformed by 27%. no surprise because oil surprise surprises have dropped by 50% since mid-2014. but what i think is really important today, seema and we ee seeing that.

the divvies for now are safe and that's absolutely crucial. they've been very big divvy players but you have to wonder how long they're going to be safe for. there's bag worry in the market that these companies are going to have to take on debt to be able to pay their dividends. >> because they have to keep the investor. yes, you're right. the second we see the major oils saying they're pulling back on their dividend we could see a volatility in these stocks. >> that said they have slashed their markets. european oil maich majors have a dividend average. it simply doesn't match up with their earnings does it? >> it's interesting to say despite the challenge the companies are in they're holding onto the dividend. even with companies like apple, they're also taking on debt to fund their dividends and buyback

strategy. it goes to show how important that its to a company's growth strategy and keeping that investor in. >> absolutely. we've got a lot happening in the luxury space. luxury stocks definitely on the move. trading jumped sharply achlt a turn turnaround in its gucci ak question zwigs. meantime lvmh with an increase in sales. last but not least, shares in luxottica rose by 1.8. let's get out to claudettew claudia pensotti. >> they're going to slash their

prices in order to make their prices similar all ore the world. of course this is helpful. luxottica did beat that first quarter. compared to revenues we're up. for the first six months that's $4.7 billion in sales. as far as profits for that second quarter, it's 2.95 million. that's up compared to 2014. as how their performance was in the different sectors, it was the retail division that was the best porter. we're looking at a second part of the year that they expect to continue to do well and they're also including in their analysis that the month of july which means that their excellent summer season is confirmed. june numbers were strong. july again, so that really does confirm that they do expect to reach their objectives for the full year 2015. also the two ceos making

comments there will be no more changes in top management after the recent change in the chief markets officer position so that will given them some there. the u.s. accounts for 50% of u.s. total sales there. we did see a rise in sales but europe which accounts for 21% in luxottica sails, we did see a growth in sales. better performance after a difficult time. remember they do produce a lot of popular brands but they also known distributors lenscrafters and sunglass hut. so they're productive with these sales and retail chains. they don't expect to grow although they're ready to make them if need be and they would make them in the retail part if that were to happen. but, again t ceo saying they do expect to be able to reach their objectives by going through

organic growth. so as far as the numbers are concerned, they are positive and they are confirming their full year numbers. the stock performing not as big as it did at the start of the morning. montclair also doing well. luxottica trading well. we're seeing them performing well after the strong numbers and strong comments for the year. >> absolutely. claudy thank you so much. coming up on "worldwide exchange," tom cruise was among the attendees. we'll look at the horse racing convenient at goodwood in the south of england. and they get set to open the installment of its angry bird series. we'll see if it ruffles the feathers of its competitors. don't go away.

michelin losing shares. the french tire maker is slashing prices as it grapples with weaker markets.

steven. >> the positive impact was 300 million euros for the first half of the year and for the cost and positive contribution was 228 million euros, however, these two factors have been upset by negative pressure on the prices as michelin is facing tough competition on most of its markets. and all in all the net profit was below expectations for the first half of the year. i could have put the ceo of the company john dominique jean-dominique senard. >> it should bring a tail wind to the group. actually we think it will be 600 million euros positive. the first half we vd 20 or something like that. less than half of that. so we will have a stronger

tailwind that's absolutely for sure. >> you're facing a tough competition which had a negative tough half. are you against on pricing for the rest of the year in. >> yes. first we have seen this effect increasing in the right direction positively between tier 1 and 2, first quarter and second quart eric so it's been stronger and stronger. and we know it will be stronger for comparative reasons mechanically in the second half. and by the way, we have increased our prices notably europe recently. all profit lines, passenger car, trucks agriculture, and this has been followed in the markets, so it will increase naturally, i would say mechanically the performance of the price mix in the second half. this is why basically we had in mind what would happen in the first half. we have in mind what would

happen in the second and we are extremely confident for the whole year. >> what's your sentiment on the chinese market. how do you feel about the slowdown in the economy growth? >> it's not a surprise for us. we've seen it sometime in the market. but when it comes to mobility, the figures are slightly better than the global economy. as far as we're concerned, as you know we have been strong in the replacement market and the replacement market remains strong today. the oil market is starting to show some slowdown. it's quite obvious in the first half. we'll see what happens in the second market. for us the replacement market in china is a replacement market, so we benefit from that growth which is 9%. >> michelin confirmed its guidance. it's improving its operating profit excluding its impact on exchange rates.

michelin believe its plan would trend. it's trading lower because of the price mix and also because the profit was weaker than expected for the first half of this year. back to you. >> stefan thank you so much. now, let's talk banks. earning seasons is well with them all set to report results this week. barclays along with royal deutsche bank have been shaken up. our next guest see as change in leadership as a potential catalyst for it. let's bring in the head of research at pimco. philippe bodereau. >> it's been pretty much in line

a bit better the top line. it's not a very good mix for deutsche bank but obviously the big focus this week is going to be on meeting with those new malkt teams, new ceo at deutsche bank -- not ceo but the absence tofr ceo. barclays has taken pretty drastic proves there. there are institutions in europe that still have question marks on the capital position as well as on the cost side. so i think they'll do two. 80 of the ceos are taking over. i mean clearly those will be the two on which they will be judged capital and cost and the thing on capital, we see at least one or two of them raise capital if

they are possible which will be good for the crate stories rather than the liquidity stories. >> i just got back from switzerland. there was quite a wide divergence and obviously ubs always very much rewarded for its capital strength and credit suisse on the other hand is always being criticized for its lack tlofr. do you think that story, rewarding stocks will to be the continuing driving trend for the rest of the year and into next year too? >> i think you've seen the performance of the high quality banks versus you know banks where there are uncertainties of capital levels. it's the perfect example of that. you have to assume that credit suisse will probably want to replicate it that it's built on.

>> it's like major improvement. they're all under pressure in switzerland. not just from that but from the leverage ratio which is why they're being forced to push those ratios higher but i think that yes, that is the model that people want to replicate if you look at the former ubs cfo who has taken over the deutsche bank. he was behind the very successful restructuring and he's going to want to re-employ some of those recipes, deutsche for instance. yes, i think that's the way to go and they have led the example and others have followed that. it won't be easy because they have different business models. others don't necessarily have. but considering, that think that does it forward. >> philippe i want to move you on to italian banks. you like italian banks. i would counter we saw loans

rising up. 14% year on year. also the ecb has been warning some of the italian banks may have to increase their capital levels. why are you so optimistic on the italian banks? >> we like it but it's one of the banking sectors that still trades at a decent disdounlt the rest of the banking system. it's less true today because it's been very strong the performance, of many of the bank stocks. the other point is there a genuine impetus to structuring reforms whether it's the sector that should drive a wave of consideration at mma within the next six to 12 months. we receive a lot of capital raising including from some of the players. i think it takes a lot of the risks of financial stability out of the banking system.

and finally it's the ultimate player on qe and normalization. so you have the strong one behind it. there's obviously a very high quality play which is i think, a very compelling dividend story and to play the more aggressive restructuring of the owner for more than a year which i think haas done very well as we go through a round of it next year. having said that it's the only banking system that still has a big pending problem. there are also reform rates to deal with the issue on the tax signed i think that things will also get bet theern front. >> lastly we've seen a revolving door only some of the big banks over the past two months philippe. is that a good or bad sign? >> i think it's a good sign. a lot of the -- you know f you

look at deutsche bank as the ultimate example of a management team that consistently underdelivered on its targets at very little credibility at investor base i think those who have done a very good track record, i think they can only be positive. it doesn't mean that those guys can make miracles out of difficult stories, but when you look at barclays or deutsche i think the changes of majtd are catalyst. i would say the same thing with credit suisse. i think investors have welcomed those changes and i think they will be good. >> all right. we're going to have to leave it there. philippe bodereau. still to come on the slow we bring you the latest uk gdp figures after the short break. don't change the channel.

european markets pushed higher after positive earnings but chinese markets wallow in the red after reports of 50 billion billion billion yuan. >> bp and statoil maintain their stability and dividend. >> they warn of headwinds in the second half of the year

however, the ceo tells cnbc exclusive libya it should help the company going forward. >> it should bring a tailwind forward. >> luxury stocks one of the bright spots as companies reap the benefits from a weaker euro. there were solid earnings reports. let's get straight to uk gdp data after the second quarter. that's in line with analysts' forecasts. some were expecting a slightly lower number. that maybe was the whisper number but that's in line with the majority of the forecast. now, this is quite a nice bounceback from a relatively

weak first quarter when we saw growth expanding by only 0 president 4%. let's have a look at the breakdown. this number is boosted by oil and services. remember that industrial output was seemingly helping in the second quarter based on a month-to-month figure. the service sector that was a little be it of a question mark given that retails sales last week, they have disappointed. also of course we've got the strength of the sterling specifically against the euro. but it seems as though oil and services have helped q2 gdp. now level with its precrisis peak of the first quarter of 2008. they made an output of 0.3% versus the month of april. let's have a quick look. we were down by roughly 0.1% percent before the data broke and now we are unchanged on the

day. sterling dollar gaining a little bit of strength on the back of the data at 155.53. joining us now is elizabeth martins at hsbc. is this your forecast in. >> yes. i think it will be taken as nonetheless good news. we expected that bounceback. we thought it was an anomaly ourselves. it shows it was an anomaly, that the uk is back on track for the quite rapid growth we were seeing all throughout last year. >> the question is how long the service sector is. it accounts for 78% of the economy. if we have oil services how sustainable is that? how good news is that for the economy? >> absolutely. the service sector is always important and if we look at the breakdown and i haven't had a chance myself yet, i expect we'll see manufacturing is quite weak. once again the service sector

doing all the heavy lifting. we think that's quite sustainable. service sector does look better. we'd like to see some rebalancing. going back to that aspect you mentioned, we had a big contribution in the second quarter but that's only on the back of a falling q1. >> 0.7% growth rate sustainable given the volatility we've seen. brent crude now in bare market territory, elizabeth. >> well, i think it is. it's certainly part of our forecast. actually the lower oil prices are a double-edged sword. it is good in terms of the petro price at the pump and the impact that has on consumption and actually what we've seen in the first couple of quarters is the british have responded as you'd expect them to to lower preess by going out and spending. >> does this change the boe's

timetable as to when they're going to change prices? mark carney two weeks back said we could see a rate rise in 2015. >> absolutely. the expectations have been coming steadily forward. some expect it before the end of the year. for ourselves, we're still happy with our forecast which is february 2016. >> how much of this do you expect elizabeth, because usually they can be quite large. how much attention should we be paying? >> the preliminary release is obviously with half of the data. you always taket with a little pinch of salt. however, with don't have a strong sense of it being revised up or down and i don't think the bank of england does either. last weekend they were expecting it and they weren't clear, but we don't have a strong sense of an upward or downward provision at this point. >> elizabeth, the pound sterling

has risen against a very weak euro and that must be weighing on some of the exporters. in fact the cbi print we saw yesterday, it was at a two-year low. how big of a problem is the strong currency for the uk economy? >> it's been a problem for the export sector and they're already on a weak footing because of our weak trading partner has fairly weak demand. so we've got a double blow really to the export sector. however, what's happening at the moment, is the uk economy is growing on the strength of domestic demands. if you look at the official forecasts, people -- our forecasting continuing stronger but it's all coming from domestic demand. we'd love to see that rebalancing, we'd love to see that export growth playing more of a role. strong demand is making that very difficult. >> elizabeth, thank you so much for your time. chief uk economist at hsbc.

let's have a quick look at sterling once again. sterling versus the u.s. dollar is 155.76 gaining quite a bit of strength. the euro/dollar not moving too much today. but it's gaining a little bit of strength as we head. so some of those save haven trades are being wound. >> of course market participants on both sides of the atlantic will be watching to see what the federal reserve has to say tomorrow. we're looking at european stocks. the ftse 100 up about 0.4% after we got that. xetra dax at 11097 and same for french and italian markets. >> in the commodity markets as seema mentioned before we've got

brent in bare market territory. brent crude changing. off by another 1.4% per day. wti crude below that 47 handily yesterday but we're just above that now, 0.8%. but spot gold just a tad up by 0.2%. all right. also want to bring you the latest on the uk grocery market. we got those can tar numbers which gives you the market share among the grocers. we always have the big four and the big challenger the likes of aldie, the littles which very much compete. falling to 9.6% to july 19th. that's quite interesting. actually. the overall uk grocery market still up over 12 weeks to july

19th. the total uk market share falling to 16.4%. for now, seema, i'm really only seeing that some of these grocers are losing market share. tesco falling 28.5%. >> as we point out intensive competition especially after last year. tesco seeing its stock drop about 15%. seeing a bit of a comeback this year as of course management has been trying to restructure the company and try to deal with that accounts issue. but so far market share declining for tesco. now, social media will be in the spotlight. today, two of the biggest names reporting with twitter later today, facebook on wednesday. stock porkt over the last 12 months. facebook shares are up. 257. twitter is down 9% following a turbulent ride. so when it comes to the second quarter, which social stock will

win the face-off? twitter is in the face of transition. it's on the hunt for a new ceo after. lightning mayed a users. as you can see facebook has more than four times the monthly active users. meanwhile they expect zuckerberg's company to jump 36% on the year thanks to mobile advertising. twitter is forecasted to grow more than 50%. twitter must hate being compared to facebook because they're the goliath in the social media industry but given that there are only two main players in this space they have to ride up against them. expectations for facebook is high. we've seen them beat facebook in the last five quarters. the question is can they do it again. the other thing for facebook is those two acquisitions they made in 2014 of oculus a virtual

reaelt company for $2 billion. how are they planning to integrate virtual reality into their growth strategy? is it going to change the way we actually use facebook? and the second acquisition, mega one, $18 billion. we still have a lot of questions as to how messages will be part of their core competency going forward. >> and they're monetizing instagram, which is very important. that's going to be a key driver going forward and that's one aspect analysts really really like. i would also point to the stability of facebook versus instability. jack door circumstancersey, he's always said he's going to stay on board at square. he's ghoipgt be the permanent one. until we see that there's going to be a lot of uncertainty. there's one thing in favor of twitter share price even though it's really suffered versus the likes of facebook and amazons of this world.

takeover speculation, remember? >> and valuation. >> yep. >> trading at 7.5 times the earning earnings. but you're right. i don't think twitter's management would sell the company. they have too much pride. they want to mack their news platform work and appealing to the broader masses. we know twitter is used by journalists and global leaders a like to express and communicate their ideas but the question is when is it going to be applicable to everyone. i relatet to my mom. they need to change the interface to make it better. >> you mention a real important point. twitter must be tough. are we comparing apples to oranges here? >> it's a different company. shouldn't we put google versus facebook? going sl the one that's popular but it's losing out to facebook. >> it's a good point.

they're getting to messaging video, virtual reality. they have their okay pos hands everywhere. maybe they should be compared to each other versus facebook and twitter. anyway it will be a very interesting week. just to point out twitter and facebook losing at 2% to 3% ahead of earnings. now, we're going to stick to tech. this time stick to focus to chinas. tumbling after hours after a disappointing third quarter guidance. josh lipton has the details from silicon valley. >> when it comes to them they ask are theyling to stick around to see if all the spending the company is doing pays off. not if the reaction is any indication. baidu had been under real pressure. the stock of the chinese search giant had been down more than 13% so far this year. now it's down a lot harder at

least part of it has been the spending baidu is doing in mobile and offline services. remember baidu allows people to search and buy movie tickets. it's one way they differentiate themselves. baidu reported q2 shares but revenue was just in line. expenses rose sharply, surging more than 80% year over year and that was mostly because of promoting those offline services. turning to q3 baidu guided for third quarter revenue which is a bit light. on the conference call expect analysts to have questions about the outlook for spending and how those knot nonsearch businesses are also doing such as baidu's travel and video site. for cnbc i'm josh lipton in san francisco. >> while swings for chinese stocks stepping up intervention but what's the human cost of these market moves? stay tuned to find out.

need to hire fast? go to ziprecruiter.com and post your job to over one hundred of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. and now you can use zip recruiter for free. go to ziprecruiter.com.

reports suggest that turkey wants to join the u.s. in the fight against isis hoping to eradicate the terror group from its borders with syria. although there are no american

soldiers in the ground war, there are some who have left everything behind to join the fight against isis. nbc's kiera simmons has more on the story. >> reporter: a pickup truck mounted with a machine gun we reach the front line in the fight against syria. we see the battle and repeated isis suicide attacks. >> leak the biggest bomb i've ever seen wasn't just over there about 200 meters in the air, a big fireball and we were getting attacked. >> reporter: rose 25 an american from the south bronx, shows me where the isis positions are, he even volunteered for this fight, the only force successfully beating back isis. >> there's an explosion right there. >> he says he's hated terrorists ever since 9/11. >> fighting for my country. >> fighting for america.

>> yes. >> against isis. >> yes, before they a tack. >> amir, an isis fighter who sur rern doerring now a prisoner of the kurds. he asked that his face not be shown. amir told me he dropped out of college to join isis a group that cuts off people's heads, throws peoples from buildings, rapes women. >> how could you join? >> they told us when we behead people we instill fear and the women we kill are adulter ers, he said. it's the ideology robert came here to fight but his unit has only outdated weapons. >> 1971. >> he shows me a picture of his 8-year-old son jonathan now living with robert's parents. they went to yankees game before they left. amir talks about home too. i've been a bad son, he says. then something unexpected happens. this isis fighter starts to cry.

>> it is rare to interview an isis fighter, never mind see one break down in front of you. isis can be beaten the kurds told me. but today two suicide bombers hit a town where we were filming two days ago. isis will not give up easily. >> let's switch focus once again. another volatile session despite 50 billion yuan. its largest lick idiotty in jenks since july. meantime they're investigating what it calls, quote, share dumping incidents that occurred on monday after shanghai come composite posted its biggest drop. we talk about the stats and the numbers, but we've got to remind ourselves there's a lot of smanl vesters behind it who lost a lot of money. >> there are several small investors. the government has been spending the day trying to reassure a lot of these investors that the national team of government

departments is in place to support the market. they also said that they are investigating some of the version what they call sellers in the market. but unfortunately for many of these smalltime investors, they still are losing hope. far from wall street and the financial capital of shanghai this farmer saw his dream of getting rich disappear in the stockmarket. he began investing in 2008 from the remote town in southwest china. he lost everything. i feel so hopeless, he says. traditionally average chinese shun the stockmarket as an unreliable investment, but that changed in 2014 when the government started promoting stocks as paret of a grand plan to open the economy and expand the role of managements here.

he put his savings in the bold market and invested his relatives' money too. he bet it all on one stock, a local mining company. when the market climbed to 4,000 points, i realized the risks were pretty high he said however, public opinion on government policies affected my judgment. be what doomed him was mar jiquette training. his brokerage convinced him to try it. he borrowed $1 million, five times his portfolio. his brokers forced him to liquidate. in an ironic twist he owes what he in vested. he's not alone. hundreds of thousands of ordinary investors have been caught off guard. many have suffered catastrophic losses. he bought a train ticket to beijing. he traveled to the offices of

the trade and the leadership. he was turned away. i don't know what to do. i trusted the government too much. he said. woimt touch stocks again. returning home empty handed the full weight. i have ruined everyone in my family, he laments. >> as a sign of how many are hopeless many have been saying that their tactic -- they're going to wait for the government to continue to buy into the market and then they're all going to sell out. so in that way the government probably inadvertently is engineering a bit of a buyout for retail investors. >> eunice thank you so much for that very moving record. let's move on. the prime minister is expected to deliver a press conference any mintz in singapore. it comes amid a tlip in which david cameron hopes to secure

trade deals. uk property is not a save haven for dirty money and he's expecting to push against isis. let's listen in. snoop he'll give his welcoming remarks. >> david cameron, prime minister of england. minister. destine gived guests ladies and gentlemen. good afternoon and a very warm welcome to the national university of singapore. this year singapore and the united -- >> until he started speaking let me just tell you that david cameron has also said over the next 20 years, 90% of global growth is expected to come from outside the eu and we know that

the eu currently is the uk's biggest trading partner, but they obviously want to diversify from the eu especially since they don't know what's happening with the eu greece and the uk's membership going forward some of i think what they're trying to do here is a careful positioning, strategic positionings in southeast asia. he's also expected to push for progress on the free trade agreement between the eu and'sianand's ian asean and they hope that can provide 3 billion pounds every year to the u california economy. very high hopes. >> in that does pass, what will that mean to relationships going forward? actually some investors i speak to are pricing that into the stocks. you can take a look at

year-to-date performance interestingly enough. the ftse is up a paltry 2.3% where we're seeing double gains for france and germany. a very different story, something to keep in mind. >> absolutely. actually yesterday the ftse 100 lost all of its gains for the year. this morning, yes, it is up by two thirds of 1% but the big pressure of the ftse is mining the economies. it's always been very well diverse provide beyond what it produces. >> and a strong currency. you can see it in the past couple of weeks and something that they noted last week was the adverse impact on growth although we got uk gdp. 0.1%. not too bad. >> not too bad. but then what are we going to do once they hike rates? they have signaled in the last two weeks probably in lockstep with what janet yellen is doing rates will rise sooner than people expect. that could happen before the end of the year.

they're probably not going to move but it will happen and then what happens then? >> you wonder if there's some coordination at the top. janet yellen is speaking, key siding when to tighten monetary policy because they're two economies. the world is watching. yes, if they were to raise rates before the fed that would be a big story. >> i don't think that would do it. that brings us to the fed, which issing are interesting because we don't know whether they're going to hike in september or in december. i mean 17% is what the fed futures market is currently pricing in terms of the probability of a september hike. september hike only 17%. >> external factors. i expect janet yellen to focus on that. she mentioned greece and china last time. given that we've seen further volatility in the stockmarket, traders always say expect china to be one of the international risks that janet references and the mixed data we've been getting over the last couple of

weeks. the retail numbers were disappointing and the jobs number. with this backdrop does the fed have enough ammunition to raise rates. they've been saying it's been happening, but of course we've heard that story before. >> i think they want to raise rates regardless of the data. that's my view. anyway markets? >> market wow, we're higher now by triple digits on the dow in premarket trade. very interesting to see such a strong move to the upside of the premarket. up about 11. nasdaq up about 30. european stocks carolin? >> they're bouncing back. up 0.7%. xetra dax up. we've got a lot of speculation to drive as well and still to come on the show we'll talk about technical analysis of these markets. don't want to miss it.

you're watching "worldwide exchange." i'm carolin roth. >> and i'm seema mody. >> in asia again despite reports of another cash injection from the pboc. oil enters bare market territory. bp and its volatility. earnings take a huge hit after it pays penalties related to the oil spill in the gulf of mexico