a very warm welcome. this is worldwide exchange. i'm wilfred frost. >> i'm seema mody. here are your headlines from around the world. >> the pboc strikes again. china devals it's currency for the second week in a row despite yesterday's move was a one off. >> this as china's economic slow down is deeper than expected. germany export heavy dax stumbles again while the australian dollar gets hammered. >> shareholders wave bye bye to baba. stock hitting an all time low on

heavy volume in new york. >> in europe, shares in henkel with their biggest one day loss of almost four years after missing second quarter forecasts. the ceo tells cnbc he's not worried about being left out of the m&a frenzy. >> we'll continue to invest but what's also important is that you don't get carried away by the high multiples in the markets. we want to invest appropriately but at the same tile don't pay silly money. >> welcome to the show. now the international energy agency just releasing it's oil report for july. we are looking at a 25% decline through july and early august as well from the end of june. that is down to an abundance of supply and a strong u.s. dollar. in particular, on the supply front, they said that oecb

inventories rose counter seasonably by 9.9 million barrels to hit another all time high of 2,960 million barrels in june. interestingly this oil price weakness over the last six or seven weeks does come in the face of oil demand growing and oil supply overall falling. it's really that inventory number they're pointing to and the strong u.s. dollar that's hurt the oil price over the last six weeks as you can see brent today just below 50. 49.5. wti is at 43.35. let's talk more about the oil market. joining us is eugene, head of commodity research at commerce bank. good morning to you. inventory levels and the u.s. dollar for the recent oil price weakness, would you agree? >> i wouldn't agree. i think that the real move came with the agreement with iran

about the possibility of the return of iranian exports probably as soon as the beginning of the next year where a very important -- however it's a moment i think they're already priced in and, in fact, we have been advising our clients that the prices are likely to fall below 50 this summer. at the moment we think the prices adequately priced and looking at the chances on the demand side. >> china has been in focus throughout the year but particularly in the last three months. is that affected all risk assets globally including the oil price? >> not so much the risk assets. looking at the commodity markets

and due to the weaker, it might have fallen. the demand for commodities is there. it's not the prices driving the demand. so i don't think that we'll see any abrupt fall in imimportants by china and in effect in july they imported amounts of oil so i wouldn't be sharing the concerns about the chinese economy going forward. at least in the short to medium term and i don't think we'll see any abrupt slow down. we expect the demand to accelerate to probably even be better than expected before. >> beijing's move to deval it's currency makes imports of commodities, specifically oil, much more expensive. if beijing continues to use currency as a way to stimulate it's economy, where do oil prices head from here? >> that's the question.

you know, in fact, as i said the demand for commodities is not to price. if at the end all the stimulus with the huge amount of measures before with cutting the interest traits and with more provided to the smaller medium sized corporates it's likely to provide message stimulus to the economy and i think it's rather going to be good for commodities and oil, at least in the short-term. in the long-term, we still have overcapacity concerns so i don't think we'll see a massive increase but a price jump over the next three to five months. i think it's very realistic. >> oil prices higher in today's trade. thank you for joining us here on worldwide exchange. >> now as we were just saying china in focus, the people's bank of china devaled the yuan

for a second straight day sending it to the lowest level in four years. there's no basis for sustained currency depreciation. emily has all the details. >> china's yuan continues to trade weaker for a second day after the pboc devaled the currency. the central bank acknowledged the temporary volatility and expects it to stabilize. midpoint was set at 6.3306 this morning. weaker than monday's close. it is now at the weakest in four years trading around 642. there's chatter in the market. the central market has been intervening to prevent a sharper sell off. a currency trader at a domestic bank said banks are defending the yuan against the dollar around the 643 level adding that without the intervention the currency would have gone lower for sure. more activity indicators coming from china today and helps the

chinese economy and exporters but it also comes with risks like capital flight. the pboc is no on basis for continued depreciation. back to you. >> what does this all mean for markets? well, seema and i both wearing red. yesterday we had big declines in the u.s. and europe and more of the same again today. yesterday we thought it was a one time devaluations. but 2% yesterday. 1.6% today. we saw .5% decline for the export heavy dax. off a similar amount today. ftse 100 only down 1.5%. france off 2.5 and italy off 2.1% today. >> and a surprise move by beijing being felt by various sectors. specific sectors that have high expo exposer to china. some of the sectors ill pacted

autos, basic resources down 3.2%. retail as well as food and beverages down about 2%. this after moving lower in yesterday's trade as well. >> let's dive into some of those sectors and show the biggest movers. as i said yesterday and today germany heavily affected. auto is one of the big reasons for that. as we look at that bmw, diamler all off. all of these auto makers rely heavy to exports on china. >> as we were speaking aabout t the yuan deval you wax makes commodities for expensive. it's the basic resources really seeing the brunt of the selling right now. down about 2.5%. glencore which makes it's profits in china down better

than 5%. randgold one of the bright spots. >> let's have a look at luxury. the last decade has seen luxury companies really increase their sales to china. swatch group a big loser yesterday. today down 2.5%. 37% sales exposure to greater chi china. all down sharply once again and it really is a route for all of these exporters to china. >> yeah, you think about the impact of the currency devaluations on the consumer. you looked the luxury names but let's look at food and beverages. if you look at the danish beer company they make about 8% of their profits in china. one of the losers yesterday and a similar story in today's trade. down about 2.2%. nestle down about 1%. as you can see at the bottom at the end of the wall right there, the french maker of liquors and spirits, they make about 30% of their profits in china.

they could suffer as this has an impact. >> to see more pronounced moves is is interesting. this is a one off devaluations. the fact that we've had a second and people say is it just two or are we going to have more to come and does it underline how worried the central bank is about the chinese economy as a whole or are these moves because we'll see translations in earnings in stocks because of the currency difference? it's more the former that people are worried that the chinese economy is struggling more than people thought. >> probably a little bit of both. i also wonder if this will spark a global currency war. will we see other central banks follow the leader and weaken their currencies to boost exports. something we vn seen across europe. >> currency wars have been the main effect of currency easing. will we see more from the chinese as well? the other thing on the other

side of the bargain i think is worth mentioning, we haven't talked about it much over the next couple of days is the companies in china going to be hurting from it. so many having borrowed in u.s. dollar and hong kong dollar debt. these guys are going to be suffering. those guy are going to be having to pay a lot more and this might help certain sectors in china but it will be hurting others. so much more to discuss on the china issue. we do want to hear from you on this. should the fed take note of china and delay it's rate hike or are domestic issues more relevant for the u.s.? stock markets reacting negatively in the u.s. and europe. but should the fed be taking note of this as well? join the conversation. get in touch with us, worldwide@cnbc.com or via twitter @cnbcwex. our personal handles on the screen now.

let's have a quick look at other movers in europe today less related to the china story. credit suisse opened lower after allegations it's going to settle allegations for dark pool trading. that's off 1.85% unilever is in the red. after competition from online retailers. off 3.7%. pearson ticking lower after the news that the publishing firm is to sell it's 50% stake in the economist and henkel off 6.5% after disappointing results and of course the devaluations of the chinese yuan. we spoke to henkel's ceo earlier this morning and he warned about overestimating the impact of the chinese currency devaluations.

>> the weakening of the emerging market currencies is not something that happened this quarter. of course when you conduct business in the merging markets you do price in the local currencies so we will see an increase in price and local currency and you'll also see a weakening. >> also said the company would continue to try to make strategic acquisitions after recently losing out to u.s. group in the battle for shampoo maker. >> in the last 2 years we spent 3 million on m&a. we acquired three companies. and a company in mexico.

so we'll continue to drive acquisitions into our business to continue to fuel growth. we have an extremely strong balance sheet. we have hardly any debt in our currency. we spent 3 billion the last two years but what is also important is is that you don't get carried away due to the low interest rate because there's the day after tomorrow. we want to be sure we invest appropriately but don't pay silly money. >> coming up on worldwide exchange, failing to deliver, alibaba falls to post-ipo lows. later today, can it's recent investment spree help stave off further falls. plus we could be heading for a social media show down. facebook's latest plan to dominate the space and rival twitter. plus keep on trucking. where ford is finding a new home for its truck production.

that story as well coming up.

alibaba's earnings report will be a key indicator for investors looking to see how weakness in china is playing out on the ground with merchants and shoppers. consensus estimates are for revenue to grow by 33%. earnings are expected to come in at $841 million. that's a drop by about half from a year ago as alibaba is spending more on employee compensation but also for investments to foster more mobile commerce. they range from food delivery to taxi sharing to microblogging. it hedged those bet z as well they're attempts at growing the number of buyers in the eco system. that number is 350 million in the most recent quarter. by comparison t chinese stock market has about 90 million retail investors so analysts

have been shrugging off any fall out on baba from the shot market route in june which saw them enter bear territory but the broader market doesn't look much better. officially gdp did come in at 7% but manufacturing is weak, auto sales have slowed and now the government is taking drastic action by devaling the yuan. they should have tea leaves to read on those fronts but watch for volatility too. they moved an average of 7% since it's become a public company. >> alibaba's spending spree shows no sign of looking up. this year the online retail giant has taken a stake in snapchat and invested in it's own cloud computing arm. days before it's first quarterly results they announced a $4.6 billion investment in chinese electronic's retailer.

what does this mean for alibaba's bottom line? let's bring in cynthia, managing director at jeffreys. pleasure to have you on the show i want your thoughts on this. if this was amazon buying best buy. wouldn't we be questioning buying a brick and mortar retailer? does this deal worry you by any chance? >> we actually published a note on this one. we think this for in that they can fill the gap in logistics and lower tooer city it will help them to accelerate that market extension where they already have a lead but this will help them to accelerate faster in our view. secondly, this deal probably will help them to expand the ali pay user base to the off line

and help them with their market. >> isn't the deal fairly expensive though? >> we don't really have a lot of things to work on. we will hear some more information on the call as to as to what is the impact on the balance street. it's very limited. >> talk more about the earnings and the call we expect to hear from today. what are you looking at the mobile investment strategy? it's seen as important to invest in that area but it's hurt margins in the short-term. >> that's true for the next few

months they'll continue to invest in mobile in addition to their investments in the search engine, they will continue to look for ways to fulfill the capability and be better in terms of establishing eco system. >> a lot of focus on the volatility in the chinese stock market. has this by any chance had an impact on alibaba stock and will it at all have an impact going forward? the asia market, i think it has a limited impact on alibaba. it's a very visible giant e-commerce player. everybody can see that e-commerce is cannibalizing that of traditional retail and

e-commerce is the future. i don't think this volatility impacts alibaba in that way. we did a sensitivity analysis on the r&b reevaluation. that has limited. i think 1.8% range of negative impact. it's quite moderate for the internet companies. it's less than 2%. >> sul things up for us. what's your recommendation on the stock? >> our recommendation is buy. >> as relates to the weakness? >> recent share price weakness actually represents an entry point. e-commerce, as i said, has a lock term growth potential and

there's also in the near distance alabama pay which now has a contractual relationship with alibaba but they also benefit from 30% of equity value according to their ipo arrangement. that represents an outside potential so it's worth while taking a look at a high quality name. >> thank you for joining us. do stay tuned throughout the day on cnbc. alibaba ceo daniel zhang will be on cnbc in a first on cnbc interview at 3:00 cet. >> very excited for today. i think company went public in september but already facing challenges and this earnings report is very important to understand whether the company is spending, you know,

strategically and whether any of those acquisitions they make are actually helping their bottom line. >> those concerns reflected in the share price back at the ipo levels. >> big drop there, wow. moving on, s&p is putting berkshire hathaway on credit watch negative. they want to finance the $32 billion deal. they have a aa rating and the company may have to draw on capital from its insurance units despite it's substantial cash resources. warren buffet said he plans to pay for the deal with $23 billion in cash and borrow the rest. berkshire class b shares down 1.2% in frankfurt. >> moody's is cutting brazil to near junk status. the move comes two weeks after s&p warned brazil would use it's investment grade status if fall

out weighs further on the economy but moody's says brazil has the ability to achieve a turn around in growth. i'm going to admit something i shouldn't. i can't believe they're still on investment growth. i didn't know that. >> by now you'd think things would have changed. >> reactive rather than proactive. >> still to come on worldwide exchange, blip or trend. u.k. unemployment rose, was that a one off reading or a sign of things to come? we'll break it down straight after this break. don't go away. [ nurse ] i'm a hospice nurse.

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the pboc strikes again. china devalues it's currency for the second day in a row. >> this as china's economic slow down is deeper than expected. germany's export heavy dax stumbles again while the australian dollar gets hammered. >> shareholders wave bye bye to baba ahead of quarterly results. stock hitting a new all time low on heavy volume in new york. >> shares of henkel on course for the biggest one day loss in almost four years after missing second quarter forecasts. the ceo telling cnbc he's not

worried about being left out of the m&a frenzy. >> we'll continue to invest but what's also important is that you don't get carried away by the market due to the low interest rate. we want to be sure we invest appropriately but don't pay silly money. >> we're just waiting for u.k. monthly unemployment data breaking as we speak. the three months to june average earnings at plus 2.8%. that's in line with expectation and in line with the previous reading. we're looking at the jobless rate at 5.6% unemployment rate for the three months in line with expectations. in line with the previous reading. a month or so ago we did tick up at 5.6%.

now the jobless clamants at minus 2,500. again that was what was expected although it's quite a big difference from positive 7,000 last time around. as you can see sterling basically flat on today's trade. it's 1556. it weakened below 155 last week after the mpc meeting but has strengthened back to the middle. 155-6. most of that data in line. 5.6% unemployment rate. let's talk to chris. the data got a little bit worse a month ago but it's stabilizing this month. >> there's a big question mark over whether we're starting to see the labor market turn down a bit. we have the general election

that perhaps calls this blip so today's data will give some reassurance that the labor market and the economy in general is still in fairly robust health i'm not convinced. next month we could see it again. the survey data for july turned down quite significantly from the recruitment agency perspective and the overall business. indices there were the lowest in over two years. there's been some cooling but the reassuring thing is the wage grow growth. >> as you say, that survey data hasn't cut through this month. quite confusing last week but the one thing we're clear on is wage growth is coming and will

strength chb this year. >> it's certainly looking that way. once you see the public sector and you look at the private sector you're up to 3.8. 3.3%. i've not got all of today's numbers but certainly this trend was to pick up, especially in construction and retail where they're doing particularly well. so this is picking up. you have compositional effects which the bank of england thinks is depressing wage growth it's historically the level of pay increase. >> i'm just curious how has the uk's exposure to the mining and oil and gas industry, how does that focus impact the labor market going forward? if we continue to ceeloer oil prices, impact on the mining industry and the labor market as

well. >> yes, you'll certainly see some pockets. investment in that sector is being felt but it's a relatively small part of the labor force and where the big brokers occur, especially in wages and the wider business and consumer servic services. maybe not in terms of profits but in terms of the head counts. those are the important parts. >> where does sterling go for the rest of the deer? >> i think it's going up. the debate is going to heat up that the bank of england is on course to hike interest rates. it's probably going to be february but there's still quite a cig any can't chance that it will be november too. i think what the important thing is in all of this, as we're seeing in the u.s., you have got

this cooling of the labor market. that's going to feed through to a more moderate rate of increases than we thought maybe six months or a year ago. >> thank you for joining us. much appreciated as ever. >> now the greek prime minister asked for a recall of parliament to vote on the terms of a third greek bailout. they're looking for the measures to be approved ahead of a meeting on friday and it's due to pay the ecb 3.2 billion euros next thursday. let's take a look at european markets on this wednesday morning. that's the day. ftse 100 down by 1.3%. this despite oil prices rebounding in today's trade. although brent crude is trading at a six year low. we got the latest iea report signaling prices could move lower in the near term. the xetra dax being impacted by

that second move by the chinese central bank. that's having a ripple effect across various sectors. specifically autos and luxury stocks. one of the biggest losers today down 2.3% although we should point out the french markets also feeling the brunt of the selling. cac 40 down 2.6%. >> let's have a quick look at the euro stocks 50 year to summarize continental european performance down 2.5% and then bonds, of course we have seen unreserved risk off sentiment over the last couple of days and yields compress off the back of that so the ten year note in the u.s. and the other big safe haven there, the german ten year bund at 0.61. let's have a quick look at forex rates because it's not just the chinese yuan the dollar has been strengthening against. it's strengthened quite

significantly against a number of currencies. let's have a little look at the yen. yesterday we saw the u.s. dollar strengthen against the yen. we've seen it move the other way. confusing moves off the back of these moves. the aussie dollar has weakened unreservedly at 0.5%. interestingly if we look at what these moves means for currency markets now countries like taiwan and korea will suffer with china. but the moves across the board suggests people are seeking safe haven assets and the bond moves highlights that as well. people are generally fearful of what is to follow. >> at the same time investors are trying to anticipate the move or fall out in various asset classes. in terms of equities, the fact that we're seeing such a significant move to the down side goes to show investors are reacting to this move, the

second move taken by the pboc to deval it's currency. >> indeed. i want to pick up on another data point which is getting glossed over slightly. we had the release of industrial data from china. versus 6.8% last time and plus 6.6% the expectationexpectation. so after it lead to the first one of the currency moves just fundamental economy in china slowing and that's got a big thing to do with the moves globally in terms of the sell off of equities. is china weakening slower than expected and what does that have to do with the global economy. >> will these two steps be enough to boost exports? that's the big question. if we see the latest data coming out over the last two months that china's exports are not improving that prompts the question as to what other policies the central bank can

use or implemented to stimulate the economy. >> indeed. you can read more about how asian current ris are reacting on our website cnbc.com. >> still to come on worldwide exchange, top of the table. it's been a good quarter for european tech stocks. stay tuned to find out why our next guest thinks capgemini is the pick of the bunch. that's coming up. 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.

u. s. prosecutors charged nine people with an insider trading hacking ring. it generates $100 million in profit. cyber criminals hacked business news, wire services and helped traders state side get their hands on press releases before they were made public. now another story in the tech world, book is reportedly working on a stand alone twitter-like app to let publishers send breaking news alerts to users. business insider says the app is in early testing. users will reportedly download the mobile app and choose which news publications and topics they want to follow. alerts would be sent out instantly as fast as a tweet. the alerts would allow for up to

100 characters of text and a link to an article. facebook declined to comment to cnbc. let's take a look at shares of facebook. you can see in today's trade, facebook down about 2%. >> turning to tech in europe, our next guest thinks french consu consulting company is the top sector pick. joining us now is the head of european tech research at city. before we get to your individual picks, let's talk about the bigger picture. you prefer companies that have exposure to the eu as opposed to emerging markets including china, is that right? >> that is right. in terms of what we have in europe, companies are more skewed on the hardware side and have greater global exposure and then clearly as you have been

talking about on this program and what we've seen in recent years. news coming out of china is not that good at this stage. we do think this stage you'll be better off looking at companies that have greater domestic bias in europe where there's improving gdp growth and stimulus coming through the qe measures. >> is this more based on the macro environment as opposed to the structural differences in the tech sector? software versus hardware? >> there's an element of structural difference as well but at the end of the day the sentiment in the market does get influenced by these factors and investors tend to do in each stock. we try to come up with a balance between companies that have more european exposure and some other ones with a more global exposure. >> you say there's a structural

shift toward out coursing in europe. that was back in the 2000s. why do you say this is a trend taking place now and one that investors should capitalize on. >> that was more limited to u.s. and u.k. europe has been relatively slow in that regard and it's really close to prices of 200el when countries across europe and even companies realized in order to be more competitive they need to focus and do more in terms of getting the productiveness up and running. one of the means to do that is outsourcing. >> let's talk about the competitive landscape. capgemini is your top pick despite the indian players they're facing. >> the good thing is they have most of the assets that you need to succeed in the market. not only do they have a european presence but a very strong

platform which allows them to compete with the best of the indian competition. so they have best of the both worlds to capitalize on the changes in the european market. >> let's talk about your other pic picks. >> it's the world's longest vendor of machines, they make chips that go into all your phones and computer. more than 80 person market share. it's a fairly defensive stock. shelter from the storm we see coming from china. it has a good capital return story around it as well. market leadership and there's a transition happening in that space. >> and if we're looking for an anticonsensus call, got any of those? >> most on the market have been

beari bearish. we have been positive. it worked so far for us. we like the transformation story and we expect that going forward. >> taking a step back, what do you make of european tech companies facing competition from the u.s. names like google, amazon and facebook? the eu looking at antitrust related issues. do you see these european tech names facing big competition from the multinational players? >> most of the names are more in the internet space if i could call it that way and most of the larger european companies are still in more traditional tech like semi-conductors and certainly we've seen some signs of competition on the software side but i would say that's not too much at this stage. >> and just to wrap up, you have a buy on arm. are you worried about what's going on in china? >> we are and that's one of the reasons we talked about they face near term head winds at

this stage. but it remains a quality story and it is a high quality name that has a good long-term holding. >> great stuff. thank you for joining us. much appreciated. equity analyst at city. now back to our top story alibaba as we county down to the company's quarterly earnings. shares not helped by china's market melt down. >> it certainly has not been helped by that slow down. take a look at the price action we have been seeing in shares of alibaba. china's biggest e-commerce company. very close to ip levels. about 3.8% in yesterday's trade but that's not the only number to focus on. take a look at the three month price action. the company reporting earnings today. company expected to see a drop in income. having to do with the increase

in expenses because they've been on this acquisition spree. expected to fuel future growth. will investor bs able to wait for the long-term. a lot of volatility in the broader stock market in china. a 10% move to the down side in shares of alibaba over the last three months. very similar story here. down 10.3% for the shanghai composite over the last three months. >> what will be doing at 2:00 p.m. london time today? >> watching cnbc. >> indeed, you will, because daniel zhang will be on cnbc on a first on cnbc interview. one not to miss. five drivers using uber have been arrested in hong kong for lacking the required third party insurance. they searched them in the city confiscating documents and hardware. three staff members were also taken away.

undercover officers used the ride sharing app and found illegal use of vehicles for hire. uber stood by it's drivers and said it would work with authorities. >> every couple of weeks there's some negative story associated with uber and their expansion plans in asia or in europe as well. but despite these head winds you look at the recent valuations, now at $51 billion. why are investors excusing this negative news coverage and saying they'll be able to get through it. it's still a company worth a valuation. >> i think because long-term this kind of company should be very beneficial for governments. we discuss it a week or so ago. the way they can really produce congestion in major cities. if ride sharing takes off it's going to be great for congestion. great for the economic efficiency of the country and there's definitely problems until we get there but these issues will be mounted in the

due course. >> governments are focused on the short-term income. >> let's talk more about tech. google might have to brush up on its abcs. the company's founder will be launching a new holding company called alphabet. but the trademarked name already belonged to bmw. they provide a fleet car service operating in 15 countries under the name bmw alphabet. they're looking into whether they violate any trademark rights adding that it does not plan to sell it's domain. >> ford is moving production of commercial trucks from mexico to ohio. it will start building the f trucks. it comes as the ford is in contract talks with the uaw. before those discussions began

last month ford was moving production but hasn't confirmed uaw comments as going to mexico. price in germany down 3.5% effected by moves in china. >> luxury electric car maker fisker plans to build it's vehicles in southern california. it will open the first plant in the region in more than two decades. they filed for bankruptcy in 2013 but was bought by the chinese parts maker last year. they also own a-123 which makes lithium ion batteries. they have a lease about an hour from los angeles. >> john kerry says under the materials of the recent nuclear deal a violation of the arms embargo by iran would not enforce an automatic reinstatement of sanctions.

he also says if they walk away from the deal it would be a recipe for the american dollar to cease to be the currency of the world. i'm not sure how he gets to that point of view. i'm not sure. we should find out how he justified that. >> good point. >> anyway, kerry added that u.s. treasury experts are exploring the implications of walking away from the deal. >> all right. sticking with politics, democratic presidential candidate hillary clinton is turning her private e-mail server over to the justice department according to a spokesperson for her campaign. clinton's use of her private e-mail while secretary of state has drawn criticism. several have found that more than half of votes find clinton untrustworthy. >> meanwhile, gop front runner donald trump's clash with megyn kelly and his refusal to rule out an independent bid for president hasn't hurt him in the

latest polls. trump is leading in iowa for the first time. also 41% of respondents agree with trump that he was treated unfairly during the debate. >> switching focus now, police in ferguson released a video they say shows tyrone harris taking a gun from his trousers and firing at police. the unusual move comes after the 18-year-old suspect was shot by an officer during continued demonstrations in the st. lewis suburbs on sunday. >> new video showing tyrone harris brandishing a handgun minutes before officers shot him and wounded the teenager. silent security camera pictures from a local business that police made public to refute claims that harris wasn't armed. >> they engaged him because they

saw him with the weapon running across the street. >> harris's parents said they don't believe the police version of events. >> he was running for his life and they opened fire on him. >> authorities trying to ease the tension after another long night of confrontation. hundreds of protestors squaring off with police. some two dozen people arrested. >> do you live around here, sir? do you live in ferguson? >> adding to the uneasy, the former soldiers, law enforcement officers, openly carrying military style weapons. >> can you imagine a black man coming down here looking like you walking this way. >> we're just americans trying to keep our fellow man safe. >> police calling the group unnecessary and inflammatory. say state law allows licensed gun owners to openly carry weapons. activists are outraged. >> if you're african american in the state of missouri and you have a rifle in an open carry state you're going to be shot. >> you have business owners reaching out to us saying the

police force is not protecting our buildings and our property. will you stand in front of our businesses to make sure that they're not looted or burned? >> police don't usually release videos like the one we showed you showing suspects because they're part of an investigation but ferguson is an extremely tense community gearing up for more possible protests tonight. >> let's switch focus. patriots quarterback tom brady and nfl commissioner roger goodell will sit down in front of a district court judge today in a settlement conference relating to brady's four game suspension for his role in deflategate. he sued the nfl after goodell struck down a feel from the player weeks ago. most have frustration that the saga has taken so long but many fear this will still not be the end of what has been a messy affair. now new york jets quarterback geno smith will miss at least 6 to 10 weeks after suffering a broken jaw from a locker room

altercation with teammate enemkpali. the dispute was over a plane ticket worth $600. >> still to come on worldwide exchange, is beijing running out of ideas to halt china's dramatic economic slow down? more on that. we're bringing in an expert into the discussion. that's coming up on worldwide exchange.

welcome to worldwide exchange everyone. i'm seema mody. >> i'm will fred frost. here are your headlines from around the world. >> china devals it's currency for the second day in a row despite claims yesterday's move was a one off. >> european markets see red. luxury groups and stocks fall sharply amid fears about their china exposure after the likes of them suffer the same fate on wall street yesterday. >> shares wave bye bye to baba