a very warm welcome. this is worldwide exchange. >> china in a fix. the pboc dismisses claims the currency is heading for a 10% devaluations. >> a major reversal on wall street. profits beat expectations. >> investors feast on nestle after they win a court case in india over a ban of its noodles and says the recall impact will be limit td.

>> the death toll from a massive explosion in the chinese sport city jumps to 44 according to state media. hundreds more are injured as shockwaves destroy a vast industrial area. >> china's central banks reassured markets about the country's currency. it says a strong economy, sustained surplus and ample exchange reserves give strong results to the exchange rate. they also dismiss speculation of a possible 10% for the currency. it weakened for the third straight day as the pboc lowered it's range yet again. however the gap between the guided rate and traded rate has narrowed. >> repercussions of china's move to devalue it's currency a big

topic of discussion and the negative impact on exporters. however some are taking advantage in the drop of prices. we are up 150 points. the u.k. index, ftse 100 up 53 while the french markets are seeing a gain of 86%. >> been close to 6% off of two previous trading sessions. so not entirely surprising to y today. let's discuss what this means. john a very good morning to you. how significant is this chinese currency devaluations. is it desperate attempts to try to stimulate the economy? >> i think it's important to look at this in context of the currency reforms because what you're doing here is a structural move.

it's not something you do to fight economic fires on a cyclical basis. this is a very managed exchange rate to one that's much more market driven and once that happens, it's not going to go back generally and so this is very much a long-term structural develop lt that i think is what the imf and the world economists have called for. >> you must admit the timing is a surprise. there's a little bit of desperation there and the telegraphing of these types of moves, clearly not very efficient. we weren't expecting it and it shocked markets globally. >> yeah, it has shocked markets but i suspect that it's not going to actually have that great of an impact on exports if that was the intention. i don't think it was the intention to really use this move to boost exports because at the end of the day you're not talking about a very big move. it's still very small relative

to say some of the really big devaluations you have seen in the past. such as when sterling left the erm. that kind of move is what will really change things. this is very much a change in the underlying, fixing and the mechanism that the markets will be able to use to decide on the currency. >> the big question is what happens next. if the currency devaluations proves to be beneficial to china's economy and provides a meaningful pick up to export growth could that prompt it going forward? >> we still think the central bank will ease policy because at the end of the day the domestic picture is still fairly weak judging by rekrencent data. we expect them to cut interest rates and lower the reserve ratio. the fact that the currency is

market driven gives more flexibility to use monetary policy to tackle the main weakness which is domestic demand. external demand has been weak for awhile now and i suspect a move you've seen over the past couple of days isn't really big enough to have a meaningful impact on exports. >> is this going to put a lot of pressure on the companies in china that borrowed in the past in u.s. dollars or hong kong dollars with the view over the last year or two or the last decade that the only way is up for the rmb and as it turns in the other direction are they going to find a lot of pressure on themselves? >> potentially but it hasn't been a one way bet for awhile now. you had depreciations at the start of last year. you've had depreciations before.

probably nothing as sharp as this but companies would have actually taken that on board and hopefully managed the risk accordingly. >> john, characterize for us the type of volatility we could see if beijing continues to keep it's currency artificially low. >> so volatility, yes, that's probably going to increase but that's just the feature of any currency moving from a much more controlled fixed regime toward what is now more market driven but even if you compare the volatility over the past couple of days with, i guess, the volatility you often see in other major currencies you still have to have that the rnb volatility is relatively low but this is another step and not quite a fully flowing currency. >> john, we'll leave it there. thank you for your perspective.

>> thank you. >> i want to pick up on one thing there as well, seema, china keeping it's exchange rate artificially low. it's allowing it to weaken and still keeping it artificially high just to a lesser extent than before. that's the bigger point here. finally allowing market forces to come into play and would be getting much, much weaker if it was allowing forces to come in to a full extent. >> but intervening is keeping it low. it's not just allowing the market to dictate the price of the currency. >> it's relaxing it's intervention. it's fixed it's currency traditionally and now allowing it to go lower. this is a move toward financial liberalization and allowing it to weaken. it's still keeping it artificially high but to a lesser way than before. >> agree to disagree. >> is it fair to question the pboc's credibility with the boj

and ecb also intervened? of course lots of criticism thrown toward china as to whether it's starting, again, a currency war. is that fair? join the conversation on worldwide exchange. >> nestle shares have risen to the top of the twisz maswiss ma. it will be able to sell it's maggi noodles brand in the region after a round of fresh testing. the swiss giant just missed the mark but kept it's outlook on hold. >> on the phone is john cox. john, thank you very much for joining us. of course these results being welcomed by the market and we'll get into those in just a second.

let's talk about the resolution, i suppose, of this issue. on the face of it, it seems like it will end up being just a small blip on the company's history. >> overall it's probably been a bit of an error on the part of the indian authorities if you look at the initial test. it wasn't replicated as far as i understand but it triggers the products or recall and ban and noodles is probably about a third of the business of nestle. you can imagine with sales down in the second quarter in india by 20% overall this has a knock on impact for the group even though it's a 90 million plus business. but i think the biggest surprise

today was the results where it appears q-2 organic sales growth was 4.6%. there's whispers it was below four because of india and also again nestle underscores the fact that it is probably the quality stock in the consumer base probably on a global basis in it's ability to deliver pretty solid results on a local currency basis. certainly on an on going basis with a very strong balance sheet. i think that's what the market is reacting to this morning. >> indeed. just to cover off the india issue very quickly, do you think there's any lasting impact to their brand image in india? or is this going to be put to bed? >> there's always -- whenever there's any sort of product recall in foods, particularly a food used to feed infants and

toddlers which the maggi noodle brand was in india there will always be a legacy impact. it will take many years for people to forget there was an issue and yeah, i think that will always happen with any recall. they'll come back and say there's nothing wrong with our noodles and probably wasn't in the first place and a stability in the overall sales in india. you can imagine quite a few moms won't be going back to maggi noodles anymore soon because of the product recall. this always happens when it comes to a food product recall. >> let's talk about the other thing impacting profitability and that's currency. >> the strong frank reduced first half sales by nearly 6%. that's a big blow. how much do you see currency head winds impacting

profitability going forward, jon? >> you look at the local currency and organic developments at nestle it was a fantastic set of figures today. that probably looked a little bit light really on the back of no surprises, their swiss currency head winds given what happened with the central bank. so that will remain with the company this year. most analysts will increase their organic assumptions for the year and that won't have much impact on consensus. that isn't going away any time soon. you can see more recently the taller is against the swiss

frank and it's weakening against the euro and there will be a negative impact for the whole year. >> meantime, the stock is up about 2%. head of swiss he inquiry sys and european consumer he inquiry sys. moving on, other stocks on the move. tui shares are near the top of the stoxx 600. it's confident underlying growth of 12 history to hit 5% to 15% in the fiscal year. the shipping firm plans to buy back up to $1 billion worth of shares. this after second quarter profits more than halved but were ahead of analyst expectations. the dutch insurer slumped near the bottom of the stoxx 600 after underlying earnings rose

in the second half. lower than analysts expected. they also reported a drop due to negative market impacts. you can see the stock is getting hit down better than 8%. finally, thyssenkrupp is trading higher. they were posting a 37% jump in third quarter operating profit and up about 1.5%. >> let's have a look in on bond rate with the slight bounce back in equity markets today. a little bit of selling of the safe haven bonds allowing the yields and the likes of the u.s. ten year note and german ten year bund to rise. 0.63 on the ten year in germany. volatility continues off the back of these moves in the chinese currency. in general it's lead to u.s. dollar strength and weaken in other asian currencies but that was the move on day one. since then we've seen a little correction from some of the moves. the euro softening a little bit today.

strengthening a little bit yesterday. the aussie dollar weakened since tuesday although it bounced back yesterday. 0.735 today. quick look at commodities, oil prices managed to stabilize a little over the last couple of days having weakened off the back of the chinese data on tuesday. they're still weak in the scheme of the last month or so. brent just above 50 today. up 1.1%. now more bad news for japan. according to a reuters poll the countries q-3 cpi seen negative. economic forecasts for gdp are also being revised down following poor exports and weaker than expected consumer spending. it fell by 7.9% in june. as exports weakened and consumer spending remained soft. let's get out to sri. >> hi, wilf, yes.

relief rallied broadly even in the japanese markets despite the fact that those orders were down beat and relief rally largely because of the late rally, late session recovery that we saw on wall street overnight but also because of the pboc. they are finessing this now. they're also pouring water on the idea that they are embarking on a devaluations cycle to get the currency down by 10 to 12%. they said that was not the aim of this. they are trying to make the case for short-termism, gradualism, incrementalism to create more volatility in the cross, to move toward the currency

liberalization. some do believe that the unofficial aim is to depreciate the currency and that implies another 10 to 12%. and anyway, as i said, relief rallied broadly in the markets. really because of the chinese devaluations and also ahead of fed normalization so getting a respite as well. we still have to deal with fed normalization. yes september may not necessarily be a done deal in terms of the fomc and the first fed rate hike may come in december and a lot of these markets, especially the most vulnerable members like malaysian still in the firing line especially when you consider the politics and also the slump in commodity prices. what are the highlights, tsa what the currencies are doing by the way. some relief rally also after the

dollar was on the back foot overnight in the u.s. so it's very much, i think, a short-term false dawn as i said because a lot of these pressures haven't gone away in the market. anyway, that's where we stand. back to you now. >> thank you for that report. coming up, on worldwide exchange, feeling the beat of s after cisco reports better than expected earnings. and throwing shade, los angeles takes unusual measures to protect the water supply as california's drought continues. >> plus two massive explosions rock the chinese city of tianjin. we'll bring you the latest updates after this short break. before earning enough cash back from bank of america to buy a new gym bag. before earning 1% cash back everywhere, every time

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welcome back. 214 soldiers are on their way to the city of tian swrrks in where a series of explosions at a factory killed at least 44 people. fires are still burning on the site. concern is growing about the after effects given the nature of the hazardous chemicals used in tianjin's industries.

kelly filed this report. >> reporter: a first blast had shaken the port city of tianjin just before midnight. then this. a massive explosion. many times bigger than the first blast and a blinding white light. they see it and then they feel it. the shockwaves shattering windows and turning shards of glass into projectiles. images of the blast flooded chinese social media. a store front disappearing. a living room covered in broken glass. tonight local hospitals are overwhelmed with hundreds of injured. some burned. many cut by flying glass and depris. it's one of the biggest industrial centers, home to 11 million people. people are being warned to stay inside in case of toxic fumes

and 70 miles away in beijing, this message. please shut the doors and windows. not sure if harmful gas. canadian glenn alexander in beijing got calls from friends in tianjin. >> the firefighters and the first responders had all been knocked over and there's dead bodies all over the street. >> reporter: china's state broadcasters said the double explosion was called by a fire in a warehouse storing some kind of explosive material. as thursday morning broke in tianjin smoke was still rising at the scene of the blast. two firefighters remain missing and at least 13 people are dead. given the force of the explosions, that number is likely to rise. nbc news. reports suggest at least 54 people were killed and more than 80 wounded in a bomb aattack in baghdad. that would make it one of the

largest attacks on the iraqi capital since the prime minister took over a year ago. the explosives were in a truck parked beside a market in the city. no responsibility for the attack yet. >> u.s. launched first manned air strikes against islamic state from turkey. they deployed unmanned missions against islamic fighters after turkey agreed to open it's important bases to the u.s. fighter jets didn't participate in the site. the yuan is not the only thing soggy today. the met office has warned a month's worth of rain is to hit britain over the next two days. luckily i'm going on holiday next week. the total rain fall may top 50 millimeters. the weather is expected to disrupt travel plans for holiday makers and computers. >> this sounds like rubbish.

usually i heard these stories ahead of us reading them on air but i didn't know that. >> it's not fair. >> it doesn't make sense though. you would expect really great weather. this is august. >> a week ago i'll be flying to spain so i don't mind. >> you enjoy. speaking of hot weather, the hot weather continues in poland facing the nation's grid operator to restrict power output in the country. rivers are at record low levels as temperatures reached nearly 40 degrees sell scelsius. they're all operating at reduced capacity as the heat wave disrupts the business. it might be bad weather here in london but just take an hour's flight and you're in a beautiful warm climate. >> absolutely. it's a lovely place to be. we'll switch focus, los angeles has literally been black balled. they completed a program to cover reservoirs with 100 million floating shade balls to

protect water quality. they block sunlight from penetrating the surface to prevent evaporation. they also prevent chemical reactions that can cause algae to grow and result in other problems. >> greece's parliament is expected to vote on a third bailout deal. prime minister tsipras is optimistic over an agreement that will bring an end to economic uncertainty. >> no optimism from the german finance ministry that criticized it as showing no full clarity on the directions of policies. it's a sign of the times how we moved on and greece is relegated to a lower tier story. this is an agreement we got a couple of days ago but i suppose we're already past the worst.

this doesn't seem as important. >> china as a bigger concern. greece the second or third concern. fed policy probably up there as well. >> indeed. moving on, still to come here on worldwide exchange, testing investors metal. we discuss the direction of gold, silver and copper prices with an industry expert. that's coming up after the break.

china in a fix. authorities push the yuan lower but the currency is heading for a 10% devaluations. >> european stocks bounce pack after a major reversal on wall street. travel and leisure leading the gains after profit beat exp expectatio expectations. >> they win a court case over a ban on maggi noodles. >> the death toll from a massive explosion in tianjin jumps to 44. hundreds more are injured as shockwaves destroy a vast industrial area. after a sell off in yesterday's trade here on thursday we're looking at a bit of a rebound here in europe. the xetra dax is up about .8%. some of those auto stocks,

specifically those that export to china that have been hurt by the pboc devalue you waiting their currency are moving higher. we see a rebound in the exporters. the cac 40 higher by 1.3%. this after losing about 3% in yesterday's trade. european markets still trading in correction territory. the german stock market down about 10% from the recent highs. if we take a look at the euro stoxx 50, the euro has been steady around 109 and 110 and that means at least for this time the euro stoxx 50 up by around 1% following the moves in the broadest indices. >> bonds as well, the buying in equity markets has seen a little bit of selling in the bond markets just to offset it. yields ticking up 2.16 and 0.63 in the german bund. euro up around 111 today.

it has strengthened a little bit in the last two trading sessions. just below flat today but still above 111 and also the aussie dollar to the tune of 0.7346. >> now, stream it like beckham. david beckham enlterrtered the video space. twitter unveiled data showing 1,400 copyright take down requests in q-2 with the company complying with over 70% of those. joining us is the co-founder of the my eye app. good morning to you. >> good morning. >> great to have you with us. so this app similar to the likes of periscope but are you coming a little late to the party? >> certainly the similarity at the core is the ability to be

able to live stream but the approach is different. we could be at the start of a large and emerging market. it's moved from messaging to pictures to videos and now to the live stream area but we're still in the very early stages of this and our approach is very much around fun and event and content and clearly what we want to do is make this an entertainment platform where when you go on to the platform you're able to watch globally events from around the world and people from around the world whether it be your friends or family. >> this is a competitive landscape. periscope but even facebook launching their app. >> absolutely. there's no reason why one particular platform should actually dominate this particular space because there's so many different approaches. why would you watch live stream?

it could be breaking news. we know that news is broken by television and camera but the ability of the iphone to be able to broadcast content live while it happens is one aspect but it's also about entertainment. it's about the feeling of being on the red carpet or at the event and something enabling you to dip in to those areas. so there's so many different approaches to live stream that one platform doesn't own this whole mark. >> let's explore that theme more. as we said at the top, you have david beckham as an investor and you say that my eye is geared toward sports people, pop stars, entertainment personalities. >> we've seen closer engagement between celebrities and sports people to their fans. at the moment there's a variety of mechanisms for doing that. one area for me is clearly for those individuals is how much

connectivity can i have with people that want to watch me and my life and through these various mechanisms the engagement rate is the most critical and by sending out a tweet or sending out a photo, delivers a certain level of engagement with the audience but as we move into video and the unfiltered the moments we're finding engagement is increasing all the time and for these individuals and their fans it's getting to the personalities and seeing their real life rather than always some sort of filtered picture that's been posted in a sort of glorious color. >> how were you able to get david beckham as an investor in myeye and has he helped with the success and roll out of the app. >> i think i'm a good sales man but for us it was three things. first of all, can we build this. technically live streaming is a complex area and secondly can we make it fun.

myeye brings a fun approach. it's not just a basic tool. it brings the color to the world of live streaming and the third thing is how do we let the world know that we're here? i was really looking for a brand ambassador and i couldn't think of anyone better. not just somebody that has that global reef put somebody that has a reputation through hill and his team working hard for the brand and david over the course of the last year and build up to the launch has been working with us producing content from around the world and it's enabled us to capture that why is live streaming important to people in social media. where is those moments that generally make a difference over other forms of social media. >> and the financials -- you raised how much so far? any plans to raise more money going forward? >> the guys doing the hard work here which is the developers, they came out of the video gaming industry so they bring a video gaming aspect to this app and they are major shareholders in this business. they wanted to -- they're very

much part of the founding team. so in terms of the money we raised over 3 to $4 million which enabled us to carry out the early launch and we have very good investors that will carrie this business through quite a long way in it's development and those all important me trictrics which is development from the consumers. >> come back and visit us. >> and bring david beckham. >> now, let's move on. shares in lenovo slumped after a double whammy from investors with the group missing the street with first quarter earnings and announcing it's laying off 3,000 staff members. the group ceo says it's facing the toughest market environment in recent years. this as quarterly revenue rose 3% to $10.7 billion. share prices down some 9%. >> disappointing results at chinese e-commerce firm alibaba

dragged it's shares to another record low. wiping $16 million off the value. >> shares in alibaba hitting an all time low after it reported fiscal first quarter earnings that missed on the top line. investors wanted any reassurance from the company and from its earnings that it would be able to sustain macro head winds in the china economy. here's how the ceo addressed that question on cnbc. >> we closed the monitor and consumer behaviors. we have active buyers off 367 and when we further analyze the consumers behavior we observe that people buy more than 50

times a year. they buy all of these things before they realize and most important thing they come to our platform not necessary for the specific shocking purpose but more like a lifestyle. so our company had very clear long-term growth strategy and we believe that this won't effect our long-term strategy. >> well, growth will continue in the long-term. there's certainly some short-term questions that investors are raising. first, revenue growth was the slowest in more than three years as the core china commerce segment slowed and second alibaba didn't monetize the mobile user base as well as the street had hoped. executives said this so-called mobile take rate will out pace pc at some point. the problem is users are still mostly browsing alba pa on their mobile devices but they're buying on their pcs and then to complicate things further

alibaba announced a $4 million stock buy back. it's to offset dilution when it issues stocks for employee compensation. it's issued about $2.5 billion for employees since the ipo but the way investors read it is the company felt it needed to do something to prop up the stock price. that wasn't a good sign. now this all creates a to do list for mike evans. former head of goldman sachs asia joined as the company's president. his role will be to help build out alibaba's global operations but that's a tall order in the face of a depreciating yuan and growth story with holes in it. but perhaps the biggest near term headache is for yahoo! and not alibaba. yahoo! has a big stake in alibaba. in september it will be able to spin off it's holdings in alibaba. the problem as alibaba's share price comes down, so does the value of yahoo!'s position.

last year that stake was worth close to 50 beside. as of the close here in the u.s., that stake was worth less than $30 billion. back to you. cisco systems q-4 beats profits. more than offsetting weakness elsewhere. revenue is rising 7% while sales are declining marginally in other regions. telecom revenue seen as a boom. they expect first quarter sales to rise between 2 and 4% in line with analyst estimates. around 4% in after hours trade and right now one of the out per formers in europe right now up almost 5%. >> news corp. swung to a net loss. excl excluding items it beat

forecasts. including dow jones and the wall street journal. news corp. is in advanced talks with a possible buyer for the education business and plans to start paying a dividend for the first time. rising 5% in after hours trade and it's up in germany today. >> nbc universal is investing $200 million in box media as it tries to ramp up it's digital offerings to appeal to younger viewers who are increasingly cutting the cord on traditional med media. reports say nbc universal is also close to investing $200 million in buzz feed which would value that company at about 15 billion. comcast, the parent of nbc universal and cnbc right now down by around 1.62% in frankfurt. >> shares slumped after the group reported a drop in first

half profits on lower power prices. the group says it's doing all it can to keep cash flow in the positive zone. joining us on the phone is the cfo of rwe. a very good morning to you. thank you for joining us. margins in the conventional business really coming under pressure in this set of results. talk us through that. >> yes, fwoorgood morning. the marginal decline effects us like all other players with northwestern european generation prices and generation spreads so we see a significant decline in our earnings compared to last year that was anticipated and that's the reason why overall as a group we maintain our guidance for the full year for all kpis like operating results. >> maintaining the guidance for the full year.

the share price is off sharply today. let's expand more on that issue. your industry pushing toward renewables. what do you make of the governments policy in that area? how are you dealing with that? >> we have announced we're refocussing our activities aactivitys. we are no longer investing any additional means into conventional power generation which is the part that is suffering and have redirected our capex into renewables and you can see this quarter with the half year numbers for the first time we see a significant jump, upwards of the operating result where we increase to 130 million euros. >> and now your rival is going through a fairly major restructure.

is anything similar to that on the cards for rwe? >> no. we have explicitly addressed this issue very often these days and we have said that we consciously stick to our integrated business model because we see the synergies of that still outweighing the benefits of a split but as we also announced recently that we keep our options open as you may remember at the beginning of this week, we announced that we will significantly restructure our businesses across the whole group and merge lots of legal entities in germany which we no longer lead but we will keep the generation units legally separate to keep the option of a future split open to us if the conditions should change. >> you faced some unexpected technical problems at your u.k. supply business.

how is that going to impact profitability going forward? >> we maintain the guidance for this year but if you look specifically at the u.k., we would expect that it will effect both this year's numbers and we have accordingly lowered our guidance and said there will be only a slight operating profit expected at the end of the year and below last year and also for 2016 we expect there will be some restructuring costs and it will take some time to remove the root causes we have identified which lead us to the adoption of the profit forecast for this unit. >> thank you for joining us this morning. much appreciated. the cfo of rwe. >> still to come on the show, testing investors metal.

gold, silver, copper prices with an industry expert. that's coming up after this break.

russian foreign minister found himself at the center of a social media storm. this after footage emerged of

him using bad language directly before a press conference this week with his saudi counter parts. they met in moscow to discuss syria but tape has come out of lavrov saying expletive morons during the press conference. everyone hears differently. >> let's talk metals. the tail off has lead the volume of gold sold in the second quarter to fall to a six year low according to the world gold council report which was released today. switching focus to base metals, the price of copper and zinc dropped to year lows this week. recent moves by china, what does that mean for the commodity complex? let's bring in the senior commodity strategist. i want to get your thoughts on the impact of base metals. some traders are under the impression that the devaluations would make exports cheaper and

boost the consumption of metals. do you subscribe to that theory as well? >> that's probably what we eventually will see. this shock to the system that the devaluations has triggered. there's obviously worries about the financing deals. we haven't heard much about that for the past year or so but obviously that was a big theme a year or so agatha a lot was used for financing deals. basically the way of obtaining dollars and if these trades still exist and they're unhedged then obviously many traders are facing problems with the currency move just lately. that could unleash some into the market over the next couple of months but we're down to lows as you mentioned. we're starting to build a base here. i'm quite neutral but looking further ahead going higher. >> a way to stimulate the economy and bring back exports is that a good or a bad sign for

metals going forward? >> it's a good sign for chinese producers because they can obviously import cheaper from the global market and with the currency now weaker they can now better compete on the export markets so we'll probably see the exporters increase over the coming months because they have built up a massive capacity to refine over the last few years and obviously they'll be looking to the export markets and they have received a bit of a pick up from this one. >> let's talk about the short-term reaction to these currency moves in commodity markets. nickel reacted particularly strongly over the last couple of days. why is that? >> it's notoriously volatile. it's a very low liquidity market. we had this 15% drop the other day in a matter of minutes. we do see this from time to time. so i think it's more of a question of liquidity. it's also just this general risk

off mode we had. a lot of initial liquidation and the traders pick up the pieces once things settle down a bit. >> let's talk about gold. soggy of course for most of this year but it has responded a little bit this week. do you think we could see gold respond more meaningfully in the next few weeks? >> gold's best friend just a week ago was probably the fact that everyone hated it. so there's a short position held by hedge fund out there. we've seen the impact of that with gold back above 1100. we're not really going to see any major short covering. we do obviously see a couple of changes here because with the devaluations if it continues from here it may reduce the expectations for fed hikes in the u.s. but at the same time, china's investors may look for alternative investments where gold can be one of them. >> what's the key catalyst

behind gold? consumer demand? chinese and indian demand? or does it come down to us. economic data and the impact of fed policy? >> fiscal demand and jewelry demand is only psychologically impacting the markets. last year when we had the big sell off it was the fiscal demand that helps create a bottom in the market. at the moment it's the investment amount driving gold and the paper money you can say are looking toward the us. for guidance there and also looking at the dollar as a result of that so we've seen gold pick up over the past couple of days and the dollar weaken but the paper money is still the most important bit. we may see pick up in fiscal demand in the second half. they mention that in their report. that may also help the market find the bottom. >> quick comment on energy markets and oil price in particular. that has softened since china

announced its currency moves but is that directly reacting to china or more general dynamics in the oil market. >> china is a major export of products in the recent months and they get a competitive advantage from this devaluations. that may keep demand up but overall for oil, oil above $60. at supplies, oil below $50. reduces supply. we need to wait to see the impact of that over the next couple of months. >> thank you for joining us. senior commodity strategist. now is it fair to question the pboc's credibility when the boj and the ecb have also intervened in the yen and euro over the last few years. a lot of accusations thrown at the chinese for starting a currency war. do you think that's fair? our personal handles are coming

on the screen now. >> the latest from the deadly explosion at the northeast chinese port city of tianjin. reports indicate that some of the auto makers were impacted. about 1,500 imported cars have been destroyed by the blast. hyundai says their vehicles and honda vehicles were destroyed by the blast. we'll keep you up to date on this story as it develops. >> before we head to break let's just remind you of what european markets are doing. it's a strong day here in europe following two sharp days of declines in reaction to those moves by the chinese currencies. germany up today. that hides the fact that the dax itself over the last two trading sessions was off very nearly 6%. so a little bit of a bounce back

today. not too surprising. >> a major reversal on wall street overnight as the dow erased a 2 -- 277 point deficit. the dow indicating a higher open with around 50 points. we'll keep an eye on shares of cisco which beat expectations. the stock was up about 4% in after hours. >> we'll be back here on worldwide exchange in just a couple of minutes. don't go away.

death toll from a massive explosion in the chinese port city of tianjin jumps to 44 according to state media. hundreds more are injured as shockwaves from the blast destroy a vast industrial area. >> cisco shares j