a very good morning to you. welcome to "worldwide exchange." i'm wilfred frost. >> hi, everyone, i'm seema mody and here are your headlines around the world. shares in china rally as chinese exports tumble more than 8% in july. shots fired outside of the u.s. consulate in istanbul. bomb blast injures seven people. and is warn are buffett

about to make his biggest deal ever? greece said creditors could be struck as soon as tomorrow. this as alexis tsipras ahead of a crucial debt repayment. shares in china have seen their biggest one-day gain in a month in hopes that beijing will embark on further easing. this after falling towards a six-year low and export s slumpd 8% in july. joining us, jpmorgan, josh, a very good afternoon to you from london. let's just sum up the latest data release that we've had over the weekend, saturday and sunday. how disappointing is the data in your eyes?

>> sure when you look at exports and imports, clearly there's been a significant slowdown. we normally look at things like fixed investments. things like commodities just up 9% year on year. and investments up just 4% year on year. clearly there's more scope of easing on the policy side. >> just what the market is expecting today, the shank had hi composite nearly 5%. so expecting some more easing. what sort of easing are you predicting to see? and will it have desired effect that the equity market is clearly hoping it would have? >> sure. when we look at that policy, we think about 25 basis points and two more of 100 basis points, i think you'll see more on upsizing. we've seen it upsized from 1 trillion, to 2 trillion.

rnb, there's talk of going to 3 trillion. i think that would help ease the pressure on financial vehicles existing year to date. so clearly, that would be something to solve. i think when we step back and look at the bigger picture, we're at a very high level. even today mortgage rates are 5.5%. corporate rates are at a6%. when you think of that bpi number, that's almost double rates on the corporate sector. we do think it's something that happens over the next couple of quarters and hopefully adds relief to the private sector. >> josh, one of the most persistent means has been the weak economic data coupled with the measures taken by the central bank. when does the story change? when do the reforms put in place by the pboc actual go through the economy?

>> that's a good point. we've seen monetary policies like the psl, sof with borrowing rates of 3.5%. ultimately, this is towards a more transparent rate in the market. one of the policies you've had with china, there's a bit of ambiguity. that may have been a strength with beijing because they were allowed to tell different stories to different participants, interest and banks. and that's going to come down to having one rate or a corridor of rates to help simplify the message as to what monetary policy is. again, that's something that we think will happen going forward. >> josh, over the last decade or so, we've seen china move slowly but surely towards a more financial liberal and market friendly state of affairs. and that has slowly raised the dmreb

credibility in the eyes of investors. has that credibility that's been slowly but surely earned is that because of the measures announced because of the market slide have been pretty extraordinary, haven't they? >> yeah, i think obviously there were some policy mistakes there. i think if you look at the two biggest issues here, probably one was the lgvu issue and the policy with equities. i think we've seen a significant amount of leveraging within the equities. from 1.2 trillion to 1.3 trillion in the last two months. volumes are down about 6%. i think some of the product issues within the market with regard to leverage have come out. i think on one hand, you have, you know, the weak economic data that would certainly point towards more coherent easing

going forward. but the other thing is you deleverage the equity market. it that was a concern. you have a small group of investors using leverage in the market. that's going to provide a little for investors. but that healing process of deleveraging the equity market i think is finally happening. >> josh, talk us through it, what are your cause for the big accounts that you cover? in general you're not quite constructive on these names, is that right? >> i think after the pullback, we looked at the bank stocks, from 0.8, to 0.9. if you were to look at anpl sales and write-offs that increase from, let's say, 5% of the stock in 2012 to almost 40% to 60% of the stock today, so surely speeding up the npl sale process which definitely helps clean balance sheets.

and the other thing is you're seeing collapse to bad areas. certainly, manufacturing and trade were down 5% in the last half and they're shrinking those types of areas. we are quite sure the banks are going to wipe things on the balance sheet side. go ahead. >> go ahead. >> no, i think within the other thing, like insurance, there's definitely a great long-term story there. i think, you know, the brokers are having a much more difficult call to make just because of the policy issues that they've had because of the fact they've been asked to buy equities. i think it's more difficult to get your arms around those. >> sum up for us, volatility can strike of course anywhere. when taking a look at asia, josh, which do you think are most vulnerable to big swings the next coming months?

>> i think when you look at on ye obviously the shenzhen market, and there's concerns on other sources of leverage that could be more of a risk to stocks. we actually like some of the beaten down stuff. the banks are a good place to hide 5% to 6% dividend yields. given the policy focused on and given the valuations, the banks would be the place to put money. >> josh, pleasure to have you on the show. head of asia financial services equity resources at jpmorgan. typhoon soudelor has left 1500 people and thousands more evacuated on china's east coast.

it skilled six people in taiwan before crossing the mainland into the fujian province. now, taking a look at european equities. wilf. >> seema, thank you very much. a desent session in asia, that hasn't carried through to europe. we're looking at 0.5% of a decline on the stocks. so continuation of how all of this start last week. more pronounced disappointment in u.s. over the course of last week as well. let's have a look at the individual markets as you can see, decline, relatively sharp declines for continental europe, germany france, and the ftse down, 1.8. the minors are weighing on the uk index following that disappointing data out of china. let's look at individual movers shares in dixon house, after the

company says it was the victim of a cyberattack. personal data of up to 2.4 million customersvy has been exposed in the attack. it's just below flat, after a british company agreed to the advanced business in cash. the company says it expects the acquisitions to be earning in france immediately. let's have a look at the commodities. you can see across the board there, as they take a hit this morning because of the disappointing trade from china, particularly, export data as you can see, around that, 2.5% declines across the board. bond rates, let's have a look at them. we did see a little compression friday. not too significant, not too pronounced the move, because the jobs data did come out in line

with what we were expecting. september also possibly in play, 2.18% on the ten-year in the u.s. today. and a relatively muted week last week for the euro. just below 0.1 still. the yen just regained some ground last week after a very poor week -- excuse me, poor month for the yen june and july, and sterling, we know giving up a little bit more, 1.547. what's coming up? is warren buffett about to make the biggest deal ever? that's coming up. plus, flying the mass, twitter with shares on the tech fall within one dollar. plus, donald trump with another dustup, this time with fox news' megyn kelly. all of that later in the show.

welcome back, i'll give you updates on the unfolding situation in istanbul that we told you about earlier. we understand that the u.s. consulate has been closed. this is just hours after a car bomb attack that also took place in a police station in istanbul

separately. there's no reported deaths related to the u.s. consulate attack. there are reportedly a couple of deaths with the bomb outside the police station later in the day. that's the update. certainly at this point, an unfolding situation, a couple of different stories just over the weekend when the u.s. is starting to send fighter jets to aircraft stations in turkey. >> it could possibly -- no one has yet taken credit for either of these attacks, this is just a couple weeks after president erdogan has decided is this a war on terror, and he's going after pkk, turkish nationals and he's now reportedly on board with coalition fighters. asking for a buffer zone between u.s. and turkey. and this all does lead back to the fact that the man is looking for earlier eelections. he's hoping to get the super

majority in parliament once again. and remember he was looking for the super majority earlier this year. a lot of things at work for the moment for president erdogan, certainly the attacks are very, very damaging in terms of the relationship that he has with the united states. >> there's another story i want to get your point on, the country is expected to talk about the situation in the middle east. the u.s. and saudi arabia continue to support rebels continuing to oust the syrian president to back bashar al assad. what are we expecting from this meeting? >> i would expect to see a post-war relationship between united states and saudi arabia. i asked, and i asked is it a marriage?

when you look at the players here, sergey lavrov, the foreign minister and john kerry. we know that sergey lavrov is on the same page as president putin. we don't know necessarily that john kerry is always speaking specifically for the white house. we've seen so many instances where the rug's been pulled out from under him. so it's going to be interesting to see that relationship develop further. certainly with regards to syria and chemical weapons and what's happening at the u.n., the situation is much broader. >> who do we think the u.s.'s strongest ally is today? >> i think they would say saudi arabia. what i saw when i was in riyadh the last couple months, john kerry and his entourage was there as well. when i spoke to members of that

entourage coming out of meetings and saudis coming out of those meetings, i heard a very different story. saudi arabia and certainly the uae are allies. we're starting to get back in bed with egypt. that was something on hold for the last couple of years. but whether other states would say that about us is the question. >> with iran, that has been the biggest session? >> absolutely, that has played into the conversation in terms what the saudis need to be doing and what the saudis themselves decide to do in yemen because they felt threatened there. certainly a bigger question as to who are the allies of the united states, not just in the middle east but abroad. >> hadley, thank you so much. shots were fired overnight in ferguson, missouri, reportedly wound would go people. county police confirmed the shooting happened after a standoff between police and protesters who were attending a

rally to mark one year of the shooting of michael brown -- >> -- got out of the car, shots were fired again. he ran behind the building. there's like a fenced area back there. there's really nowhere to go at that point. he engaged the officers at the time. there were four officers in that van, all four fired at the suspect. the suspect is in a local hospital, he's in critical unstable condition and surgery. warren buffett and berkshire hathaway are reportedly close to a deal to by precision castparts. the decision which may be announced today may be worth $30 billion. berkshire is one of the largest. a deal would extend buffett's investment into the sector which contributes to the berkshire line.

you see 17.3%. the berkshire hathaway second quarter profit, 47% on declining investment and underwriting loss on insurance business. operating profit 10% below analysts' forecasts. revenue rose 3% while the book value for share was 2%. now berkshire's b sales were 1.5%. you see down a similar amount in germany. i'm kind of interested in this deal with precision, though. the timing is very interesting because you're looking at the dow transport index which is a basket of auto/airline stocks. trading territory down about 11% from the highs in 2013. but clearly, this is an opportunity. >> i agree. this is stronger not just for u.s. gdp growth, but global gdp

growth. the kind of thing that this company is exposed to he's going for what may give the rest of us a little bit of confidence. the other the factor on the scale which has slightly disappointed me. i haven't realized -- i wouldn't say this is the biggest takeover, but a big teal, i can't believe that would be the biggest deal that warren buffett's ever done. i'm never looked at the stocks before. >> yeah, $1 billion on it. but definitely a big deal. as one of the richest men at this point he would have made a bigger acquisition. the stock of precision down about 20% this year. perhaps this is a good bargain for mr. buffett. >> yeah, exactly. one to watch there. dick costolo may step down

once a replacement is found for the ceo job. that person would now have to report to three, costolo and three other investors. let's have a look at twitter's stock, down 1.8% on friday. of course, that now fractionally above the ipo price. and down significantly over the last three months. for me, i have to say this kind of comes back to the area where one where he does step down, costolo people thinking if he did step down, he would stay on the board and now he's considering not staying on the board. >> absolutely a possibility. i think this highlights that there is this desire to bring in

some new blood on to the board. and perhaps take out some of the old names and bring in some new people. but the question is, it's now been over, what, seven, eight weeks? and we still don't have a name in terms of who is going to be the new ceo of twitter. does that highlight that it's that hard to find a candidate. or is it just when fall comes we'll announce who the ceo is going to be? >> the other question is, is jack dorsey wanting to take the job full time if investors start to welcome that. that's definitely a possibility. i'm not sure he can be full-time ceo of two big company, maybe he's weighing which one he prefers. but also, i think it's good to see that these other guys are stepping off the board. whether it's dorsey or others. because not only are they past ceos of the company, they hold a lot of stock. and i think that's hard for someone to come in and take a new vision on the company when they know there's big elephants

and the one behind them, running the company, still hold a lot of respect and so on and so forth. >> i think it's highly unlike for jack to stay as ceo. looking to the public as we know before on ipo, there's a lot of work to the road show marketing and really, you know, helping to build the brand ahead of going public. if that's the case, i think jack dorsey needs to spend time on spare and not twitter in the between time, we are looking at the stock trading very close to its ipo price. we're going to stick to tech. there are slashes coming out on al baba. alibaba is going to invest in a 9.9 stake in suning. it will invest up to $1.2

billion to subscribe for 27.8 new issued shares of alibaba. the head line here, alibaba says it's going to invest 28.3 billion rmb for stake in suning. another story on uber, uber attempted to load up the popular car app on saturday morning. the company apologized for the, quote, brief outage. which greece wrap up bailout talks before the dead repayment? word on the negotiations coming up after the break.

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use energy and get quick and easy tips on how to keep your monthly bill down and your energy savings up. don't let your neighbor enjoy all the savings. take the free home energy checkup. honey, we need a new refrigerator. visit pge.com/checkup and get started today. shares in china have their best day in a month after poor data fuels hopes of frustrations from beijing. chinese exports tumble more than 8% in july. violence flares up in turkey with shots fired outside of the u.s. consulate in istanbul. this hours after a bomb blast injures seven people. is warren buffett about to make his biggest deal in a takeover that could top $30

billion. greece says a deal with its creditors could be struck as soon as tomorrow as alexis tsipras overcomes with the imf over a crucial debt repayment. and you are watching "worldwide exchange" on this monday morning. let's take a look at european equity. although it was a down week for stocks last week, that having to do with mixed economic data coupled with the commodities. the xetra dax down. and 109 against the u.s. dollar. u.s. stocks a good day of stocks use the eurozone right now trading down by around seven odd points. >> in bonds we did see a move in

the ten-year u.s. note of friday last week. it keeps in play the possibility of a hike in september. certainly the possibility of a hike by the end of this year, also 1.18%. and german ten-year, 1.86. and the euro relatively quiet for the euro dollar. sterling up last week, reaching 1.5467 at the moment. let's move on. greece is hoping to end negotiations with international creditors as a third bailout by tuesday. this according to reuters citing a greek official. the greek finance minister met with representatives from the imf and european commissions yesterday. athens is going to reach a deal before august 20th. this is fantastic development, we're going to try and wrap up a deal a few days before the deadline is due. do you think that's likely to

happen? >> that's a stretch. to be honest. whether it does or doesn't happen in the big keep of things, that can always be another to get it done. but, yeah, they're trying to. but i think it's still the track record doesn't set up all that good. >> when we look at the euro dollar and what it's been doing over the last couple of months, is greece as a factor moving completely past it? it's now responding to other factors? >> it's mostly about the united states. but it could still come back. a liberal last week, the index for greece came out with sort of a record low and that's a reminder that they'll refocus not so much on the crisis in politics and the bailout, but we will get back to the greek economy. there's no point to any of this if we don't get some economic growth in greece quite soon down the line because every month

that's lost for the economy is another month where there's very little in the way of receipts coming into the government's coffers. and the problem gets worse. we'll get back to that after the holiday. >> when do you expect that turn to. what, though? that pmi number we got last week was horrible? >> i'm not sure there's anything that makes that economic activity pick up in greece. that's the problem. you're not going to get those kind of imploding numbers to go along. i don't think this deal works as a solution to revising growth in greece or in europe. it's just a way of getting new money to help pay back old money. >> what's the year-end target for the euro against the u.s. dollar? >> something between here and that, all of that distance plus an intraday move. i don't think we'll get below parity until we've had it and i think it would be below parity sometime after christmas and the beginning of next year.

something like that. but that's more going to be about the united states. if things go really badly. >> let's move on and talk about the united states. we had the month on payroll data in july, 250,000 jobs being added. very short of 223,000 expected. the u.s. dollar finished the day, as the market saw enough strength in the data to support a case for a rate hike in september. a quick look at what the u.s. dollar is doing this morning ahead to dissect the data even farther, you can see that flat.. kit, you said it's a possibility it will hit parity by the end of the year. do you think that's based on the fact that we'll get rate hikes and in september? >> i think we'll get them in september. the indications that we're getting from the fed are that, if things don't slow down, get worse, if there's no major geopolitical shocks, they think they should get rates off zero.

when they get them off of zero, that will be devastating for the companies to avoid upset. but the numbers we're seeing right now say you don't need zero rates. >> i'm surprised you feel that could lead to us parity. it's a big move to where we are today just above 1.10, that's been telegraphed. what do you think about a quarter point increase? >> partly because we've spent so long waiting for this event, if you like. but i don't think they're processing it properly. it could still have a moving rate towards 1% over the course of 2016. i don't know that you can have one rate rise, and then that saul fine and i think the markets will inevitably force the price more initially. so the peak for the dollar is the low for the year. 00 do think happens in the first

half of next year on the other side of parity. something like that. but when we factor in u.s. interests rate being more than we have at the moment, everyone is very split at the moment. 60% of the people think they're going this year. there's probably 20% who think there never will. >> 2015 has been a torrid year, specifically for the chilean and colombi colombi colombian pesos. how does that work? >> with the u.s. rates and the chinese, boom, both of those pulling in the other direction at this point in time. they're trying to find the bottom for any commodity you can mention pretty much. and the export is troubling. >> it's not just the south america currency the malaysian

has suffered as 30% of its income comes from oil. >> yeah, held up london, some of the ones that held up longer than the easier ones to see. brazil, they held up longer but then they started to crack. in malaysia's case, to the slower growth and the china story becomes dominant, the theme of weaker economic activity across asia. >> so far, the rmb much more heavily linked to the currency. more disappointing data. do you think today is a down side for the chinese? >> i think the chinese see no point in letting their currency weaken, you'd have to do what the japanese have done, 20%. everybody else would be valued by more so that committed to stability, but deepening to

reduce the price deflation, falling exports, gradually slowing growth is the recipe. let's see the numbers on wednesday. as long as rebalance in the consumer is doing okay, we're on the right track. >> kit, we're going around the world with you. i want to get your thoughts to sum it up here, on the japanese yen, as a safe haven play in the currency world. economic data over the past ten days, surprising but does that confirm a more bullish view on the economy? >> the economy is not going to get any one year that's a 2% inflation target that i can see. but i think it's as far as the currency's concerned, what you have to bear in mind in japan the scale of adjustment in realtime is astonishing. this was a really expensive currency, it's now a really cheap currency. it's not going to help anything

to for the profits. >> kit, thank you for being on the show. new new zealand foreign minister john king told cnn he's confident the talks on the tpp is successful. he did feel there are hurdles. >> the answer is, this is a window of opportunities to close tpp. and i think if you don't get that done soon, one of the problems you're going to get you're going to run into the u.s. presidential campaign. and it's difficult for the canadians because steven harper's election is not totally complete in canada. so it's not straightforward. i myself remain very firm on the view that a deal will be completed. so much time and energy has been invested and so much to sort of gain if we can successfully conclude it, i think it will all

happen. >> i know you were concerned about the canadian elections specifically because it is close in time to where we are right now. steven harper has said he's going to start the election process so that won't in fact get in the way. are we looking at a meeting at the end of the august? >> i would have thought so. i mean in the end, there's nothing firm at this point. but i think there's a commitment to re-engage. and there's been a lot of discussion happening, everything from the legal to the minister and negotiating legal. president obama has a period of time, we run into the summer break and we can expect after that summer break. and, you know, of course, it's possible you could negotiate into 2016 and abeyond that. once you get into the middle of the u.s. presidential election campaign with trade which is by tradition always anyway.

i think for the president, he has invested his time as president of the united states focused on this issue. now, clearly there are many issues but this is an important legacy issue for him. i've been pretty close to him during that whole time. we've had numerous discussions on this issue, i'm not getting anything from him that he wants to not see this conclusion. >> and the same goal as you mentioned earlier. new zealand is taking a little blame as of late. i know you're fighting back and you're saying you can't change the rules at the very end of the game. what would you say to people who say you know what, new zealand is causing big problems for the tpp? >> i'd say we're ambitious, not only for a country but as a quality tpp. i mean, anyone can do a deal but if it's low quality and it doesn't take you very far, by definition, you're not actually opening up each other's borders and each other's consumers.

and the fundamental principals underpinning tpp were always a high-quality, comprehensive deal. that's what we agreed on. that's what we pitched to the new entrants that wants to come in in the form of mexico. it doesn't mean that we're going to get utopia and we're going to get everything that we want and the countries that care more about getting what they want. but i think if we just have that ambition, but a practical fit for our economies will be heavily diluted. let's talk politics, donald trump goes on the defensive. appearing on sunday news talk shows the republican presidential candidate insists the comments on megyn kelly has been misinterpreted. >> any change this morning -- do

you want to apologize? >> no, need to apologize, she asked i thought very unfair questions and so did everybody in social media. what i said was totally appropriate. there was nothing wrong, only a deviant, and i literally mean that, only a deviant would think anything more than that. >> nbc's brian mooar joins us live with the fallout. >> hi, seema. donald trump seems to be defying political gravity here. everything he does seems to be within the rules of the political playbook and yet he seems to be winning at every turn. the overnight poll conducted by nbc news, after the debates in cleveland showed that his numbers seem to be holding steady. he's in the 20% range, while his closest rivals are in the 13% and below. so, really, everything he's done has led to controversy after controversy after controversy.

but tistill people are seeing t name donald trump and it seems that a lot of people find it refreshing that somebody is speaking their mind, even if it is politically incorrect and should would argue grossly inappropriate. >> brian, why do you think that is, despite the controversial comments as you point out, he's still leading in the polls is that that he speaks hi mind and people find that refreshing? or is there somethings? >> it's really anybody's guess. but i think one thing that's an educated guess, he's a reality tv star. people have been hearing him roll hard as they say, for many decades. they're used to him saying outrageous things. but they also have in the back of their mind, this is a billionaire, somebody who is very successful. it's hard-baked into his personality that goes the

inappropriate comment that gets everyone's intention and headlines. and here we are talking about him right now. >> brian, thank you for joining us. we want to hear it from "worldwide exchange" at home. has donald trump gone too far this time? if you want to join the conversation get in touch by e-mail, "worldwide exchange" @cnbc. seema, i have to say whether or not you agree with the content of what he's saying, something you just pointed out saying it to brian, it's so refreshing to hear someone who speaks his mind. with the uk election a while ago, when you ask a politician a direct question, all they hear is the topic and they just regurgita regurgitate, it's refreshing. donald trump just says what he thinks an he's not worried about

being overly politically correct. >> it's many of the things he says are very controversial. the question is has he gone too far. of course, he did. that's why he had to do some damage control over the weekend. speaking to a variety of hosts about what he really meant when he made those comments about fox news anchor megyn kelly. >> i think that is indeed what he meant, it seems that was the case or he wouldn't have gone on the defensive too much. i agree, the content of that is not really acceptable. the other interesting thing off the back of this, all of the candidates, barring now what it might mean for republicans in general amongst the female community. that's clearly a fear for the party as a whole. >> you got to remember, i can imagine how tough it could be figuring out being a republican candidate, figuring out how to react to trump. you basically can ignore the

comments or use this as an opportunity to distance yourself from trump and openly reject what he's saying. but then you risk, of course, making the whole campaign about trump and not what you an individual are standing for. >> brian is absolutely right, if they ignore and let trump dig his own grave, at the moment, that's not the result happening. here we are, all we're talking about is donald trump. no one else is get anything air time. there's an element to that mantra of no news is bad news. he could break that and go too far. if he pushes that again and it might go too far. but at the moment, he's managing to just stay ahead of everyone else. huge publicity. >> you got to watch jeb bush in this, he's number two, the question is how did he use the statements from trump to power his message forward, that would be the big question. get in touch with us in such an interesting time as we approach the presidential race.

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welcome back. shares in china have seen their biggest one-day gain in a month, from hopes that beijing will embark on policy easing. this after data that prices have fallen to a six-year low and exports slumping 8% in july. shanghai composite at 4.9%. and shenzhen up 4.5%. off the back of this, although that disappointing data did chinese stocks and hopes that will it see further stimulus it has hurt european mining stocks, particularly that export data in the sector down 2.46%. similar declines across the board, some down 20% since the

1st of may. the sector, of course, has been suffering as have commodity prices more broadly. >> we should point out even exxonmobil, chevron, royal dutch shell all trading, a comphmodit rout. trading at down around 0.3%, oil by the way, has tumbled 25% from late june to about $35 a barrel. now trading well below that as you can see right there. it's around 55% in the past year. now, it's not just about oil, take a look at gold. it has dropped below $1100 per ounce. down to about 8% this year. and 43% the low, since the 2011 high. a disappointing weekend from barons, they're saying this is the time to get bullish. >> yeah, which is an interesting

perspective. i wouldn't want to be the one to catch the falling knife. and it a rather consistently falling knife for them. but we have now had six weeks in a row that wti has declined. having seen that bounceback from march to june and the stability that we started to see, it is a surprise that we've had such a consistent significant selloff since then. and part of is the u.s. dollar story. part of it is global macro fears. i think apart from aside from the other commodities, it's really back to the same supply and demand arguments that we were visiting last year. >> we take a look at stocks, energy the worst performing sector in the u.s. last week losing about 4%. the emerging market currency, trading, at high/lows in not just south america, but asia as

well. the impact is profound. >> absolutely. well below $45. another story we're watching, hillary clinton is expected to unveil a plan today to make u.s. colleges more affordable and reduce student debt. the proposal is estimated to cost $350 billion over ten years. u.s. states would still receive federal money for higher education. but would have to increase their own spending. students wouldn't have to take out loans to attend public universities. clinton would pay for her plan by raising taxes on the wealthy. now roughly 43 million americans owe student debt. early result of the argentina's outgoing. outgoing mayor of buenos aires

came in second place. the election takes place on october 25th. and nancy is joining us to discuss what we can expect. >> kirchner is expected to step down, the kirchner dynasty. eight years under her and before her, her husband. she continues to dominate. it's a referendum of her term in office. and dennis scioli is her chosen successor. he's got 25% of the vote and he's taken lead of 37%. but we should keep in mind that people are saying what he really needs above 40 for the election. if he doesn't get above 45% there, he will have a runoff.

in that october election, everyone has to vote so we'll have a better idea what the percentages will look like. you mentioned that the second place opposition leader came in with about 25%. however he was also facing two other contenders in the party, presuming he drops out and there's a third party candidate we add all of that together we could be looking at a close september. it's a pleasure to have you on the show, ahead of the election, how would you trade argentina? >> it becomes very interesting. it is going to be a very close call. so it's certainly a market to take seriously. but already in the last year or so, this has been an important theme. so bull markets and equities have rallied. yeah, if you want to take some

risks. >> martin, let's talk more about emerging markets. there's been a sharp period of underperformance in markets, what's been driving it risk off incentive? >> certainly, risk off. in china, the stock market protection, creating unrest about the chinese growth. i think there's more about the system in china and that's a big thing for asian markets. and we have the rate hike coming closer september or december, but it's coming in the coming months. and also mention of the markets that have been like that for quite a while and a few countries getting into deeper trouble like china and malaysia. a lot happening at the same

time. >> martin, we've got about 30 seconds left. just very quickly, which markets do you think are the worst? turkey, brazil, china. >> martin, thank you very much. global emerging markets strategist at ing investment management. coming up warren buffett at berkshire hathaway looking at reportedly the biggest deal ever. we'll have that coming up after this break.

welcome, everyone, to the second hour of "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. here are the headlines. china has their best day, but taking a hit as chinese exports tumble in july. and warren buffett and berkshire hathaway in a takeover that could cost $30