a very warm welcome to you. >> here are your headlines from around the world. >> a negative trading session across asia after chinese data. the nikkei bearing the brunt of the sharing. >> spreading to europe with the major averaging trading down 2%. stateside, the dow is called to open lower after suffering it's worst month since 2010. >> wti and brent back on the slide after the best three-day

winning streak in the quarter of a century. this as citi and morgan stanley are not convinced by the rally. >> and shares fall amid speculation the head of the china europe is being detained as part of a wider probe into beijing as part of the market volatility. welcome to the show. we have got euro zone august manufacturing pmi data coming in at 52.3. the forecast was 52.4. the july region also 52.4 so fractionally below estimates. euros rally strongly throughout today's session. that's not off the back of the pmi data. it's off the back of bearish sentiment leading people to think a possibility in the delay of a rate hike. let's recap the other data we had earlier. italian pmi was 53.8. that was a slight miss.

french pmi was 48.3. german pmi was 53.3. a very slight beat. all of that summed together with european pmi 52.3. >> europe now at 113 against the u.s. dollar. we'll have to keep an eye on the currency which in august gained about 4% against the u.s. dollar. that's one of the reasons we saw the exporters in europe respond negatively and we'll have to see what happens in september. especially if china continues to devalue it's currency. >> quickly mention, greek pmi, 39.1 in august up from july. let's have a look at what european stocks are doing very much in the red as you can see. the stoxx 600 down 2.46%. this comes off the back of a weak trading session in asia. let's have a look at the

individual european markets as we stand at the moment and the ftse 100 down 2.1% of course. it was closed yesterday. the rest of continental europe down as well. germany down 2.46. that follows a 10% decline in august. france down 2.2 and italy down 1.7%. >> those china concerns are weighing on asian markets down almost 4%. also weighing on sentiment in japan. the shanghai ending the day in the red after shedding 12.5% in the month of august. the official pmi dropped to 49.7 in august. it's first sub 50 reading since february and china services sector also posting a fall from july to 53.4. we could be in for another rough session. >> yeah. it just really underlines that

the chinese economic slow down could be worsening and spreading toward the consumer sector and toward services. yes this is part of rebalancing toward more consumer-lead economy but here in lies the problem. services sector has been robust but it was disappointing today as far as the data goes. that calls that momentum into question. it also means the policy response is still in play. because what we saw a week or two ago is aimed at restoringly quiddity into the system after the devaluations and after the capital outflows deprive the market of a lot of liquidity. how bold will the pboc be? will we see aggressive monetary easing and fiscal support and a weaker currency to boot as well.

that's what we hope to see but remember the pboc is being very careful and very calibrated. having said that they do have the policy scope to move more aggressively if needed. as far as the market is concerned there's a distinct lack of confidence that's related to where beijing stands. they have been in and out of the market and blowing hot and cold. one minute they're cheering the market and the other they're cracking down on speculators. so very mixed signals. so that's what is putting the shanghai market on the defensive. we did come off the worst levels on the day. we were off by well over 4% after the pmis. we did stabilize toward the close. we're off 1.3%. i want to highlight the nikkei 1225 suffering today closing almost 4% lower. we have weak capital spending numbers as well. so that soured the mood as did

china, sena, and remember japan and china very strong trade linkages. that's where we stand. all eyes on the end of the week. if it's a constructive number could build the case for september so we could see a little bit of that in the markets in this region. >> thank you so much. now banks in china trading currency forwards for clients will have to hold 20% in u.s. dollar reserves this is to stem market swings on the 15th of october. >> shares in the british hedgefund are trading lower following a report that the head of the china europe is being detained as part of a wider probe into the market volatility but according to the financial times, her husband has denied the claim saying she has not been taken into custody. meanwhile a reporter for the local business magazine

apologized on state television for his report which is he described as having caused panic and disorder. let's talk more about china now joining us live from hong kong is the chief economist for emerging markets. thank you for joining us. let's kick off with the latest bout of chinese data this morning. it was weak. how much weaker is it though than expectations? is there an overreaction this morning? >> the news today was we got fresh evidence that the service sector is beginning to weaken. the manufacturing pmis were in line with market expectations but i don't think that was news. the news today was that the service sector showed signs of weakening. that pulled the composite pmi down below the 50 break even level for the first time in three years.

so there's a sense that it's spreading into the broader economy and the suspicion has to be the very sharp falls seen in the a share market are spilling over now into the broader surface economy. >> let's talk about what we expect this to mean going forward. there's an expectation that more stimulus will come if the data is weakened. in the past it's spurred markets high higher. do you think we'll get more stimulus? do you think it will allow markets to rally? >> everything is pointing to further downward pressure on chinese growth in the near term. coming back to the theme on services much is made of the relative resilience of the service sector but when you drill down into the second quarter a large part of the strength in the service sector is coming from financial services. that is related to the a share bubble. take that away and you're looking at a slow down in the

service sector. so yes more stimulus is coming but it's moot the extent to which stimulus can gain real traction on the economy. what we know will work is fiscal policy. whether it is direct injections into the economy or help trying to fire up the infrastructure spending cycle again. >> what about on the currency front? some say the weak economic data on the manufacturing front in china suggests that the pboc will look to devalue it's currency even more in the past two weeks. do you subscribe to that theory as well? >> i certainly subscribed to the theory that china needs a lower real effective exchange rate. over the last year china has been one of the biggest causalities of the global currency wars. it's real effective exchange rate appreciated over 15% from

last july to around the end of the first quarter this year when we're seeing generalized dollar strength. so i think the authorities tinkering with the fx regime has been motivated by the desire to fight back in the currency wars and certainly a signal to markets that it won't stand by and passively accommodate further dollar strength if that is, indeed, what we get later into the year but the authorities opened pandora's box. allowing a market based approach to pricing they accelerated capital inflows that forced them to step in and intervene very aggressively to restabilize the currency and we're now left with the position with the pboc running to standstill. to really control the exchange rate. that's draining domestic

liquidity from the economy and forcing them into cash injections. very difficult whether to go next on fx policy. they have to hold the line in the short-term while we're seeing this scale of capital flight. >> it's interesting to see data out of japan and taiwan also disappointing. how much is chinese woes weighing on the wider region in asia and who, for you, is the most affected? >> that's a great question. we have been seeing a sharp slow down in trade growth and the more you drill down into the data it appears to be the phenomenon and it's a reflection of weakening domestic demand which is the key driver. the causalities are pretty well know. those economy with the biggest trade linkages with china. japan, australia further south through the commodity cycle and

close tore china. we had pretty soft readings on their manufacturing pmis earlier today. north asia laboring under the weakness of chinese domestic demand. >> across asia emerging market currencies seeing their biggest drop since 2011 in the month of august. more pain ahead or is the worst over, richard? >> well, a lot depends on what's going to happen to the chinese currency moving forward. as i was imlying a moment ago it's going to be very difficult giving the skirt of outflows that china is currently experiencing for the pboc to do anything other than continue to intervene very heavily. effectively capping the spot rate. but the longer this policy goes on the more the risk is that the pboc will have to step back and then we will see a renewed bout

of weakness. whether that comes after the decision is being made on inclusion in the sdr in early november, whether that comes after fed lift off remains unclear but what is clear is more likely than not we'll get further cmi weakness and that could project another downdraft for emerging markets in general. >> those that have high exposure to the commodity picture. a pleasure to have you on the show. thank you for joining us on the first day of september. chief economist for emerging markets. now moving on, the white house is considering sanctions against russian and chinese individuals and companies for cyberattacks on u. s. commercial interests. no final decision has been made. the washington post first reported the u.s. was considering sanctions on chinese groups. reuters says sanctions could further strain relations with

russia and cast a shadow over the visit by the chinese president later this month. now let's get a check on european markets. >> thanks. yes. so the pboc is now running to stand still. those are the words to us here on worldwide exchange. that latest bout of disappointing high these data weighing on asian markets and european markets. the stoxx 50 down 2.5%. let's look about the best and worst performing sectors here in europe and heavily influenced by china. that's performing down 3.8%. oil and gas relatively outperforming only down 1.7 off the back of a strong rally yesterday. particularly during u.s. trade in oil prices. even though we're now down today relative to that. net net still up from when european markets close. let's look at how they're performing here in europe. ftse 100 down 2.3. germany down 2.5 following a 10%

decline over the course of august. let's look at bond rates. slight moves in the equity markets seeing yield compression but not so much in the u.s. near to 2.2% and perhaps expectations priced in on that but some yield tick up here in germany today. 0.78% as we look at them now. now forex rates, we've seen interesting moves. we see this risk off sentiment in equity markets, that surveillance is jests possibility of a rate hike and given that it's already priced in we're seeing the euro rally and the yen rally despite that today is a risk off day. >> all right. coming up on worldwide exchange, cooking up a grandplan. apple joins forces with sysco as reports suggest original content

could be next on the list. plus samsung is hardly the am of investors eye. shares are down almost 20% so far this year but could a new smart watch change all of that? we'll discuss. plus bagging bargain. one analyst tells us why dollar tree stock is a buy ahead of its earnings report.

wti surged over 8% yesterday overcoming a 20% loss to close out august in positive territory. it comes after opec said it was open to talks with other producers over price worries and data showed u.s. production was lower than prooef warehouevious >> we did see a big rally in oil over the last three days. crude up over 27% but here on the first trading day of september you can see wti crude and the international gauge, brent crude lower in today's session. wti off by 4% but still up about 2.1% you can see over the past one month. a significant reversal over the

past couple of days. we'll have to see what happens in today's trade. speaking to our u.s. colleagues, the economic advisor says he expects more oil volatility ahead, listen in. >> this is an unhinged market having lost it's three anchors. it's demand anchor, it's supply anchor and it's swing producer and therefore any small bit of news will move it enormously. second it tells you that a market technically was very off side. lots of shorts all over the place and the result of that is you don't get much. today's news isn't that consequential but it was enough to be that little spark to move something that has no anchors and looking ahead that's what we're going to get. more and more volatility on the way up and the way down. >> citigroup says the crude rally over the last week or so will be short lived saying recent gains are not warranted by the fundamentals.

expecting wti and brent to make fresh lows before the year end. meanwhile, they say the world is still oversupplied with oil though it forecasts a decline next year. i mean, the oil price, seema, over the last month is extraordinary when we factor in that risk assets sold off massively for the first three weeks in august in general and rallied in the final week and the fact that the final week rally ended in positive territory. such a strong rally. quite extraordinary. >> it's also interesting to see how there's a multitude of factors impacting the price of oil. it's no longer the stronger dollar or global growth picture but you have to keep into account saudi arabia production and when the oil comes back online. that's what is resulting in this erratic trade in the price of oil. >> and as we have seen today we're off sort of 4% but it was a 27% rally of the previous three trading sessions so that 4% decline got to be in perspective. when we think of the 27% rally

of the previous three trading days another factor people were mentioning yesterday was the possibility of russia and opec teaming up and as our resident opec fellow, he was saying that's been every year for the last decade. if it did happen it could be positive for the oil price but it never quite happens. >> i've also been interested in look at the correlation between oil prices and stock prices. generally you would think it would be good for the stock market because it's good for the consumer and it's going to take more time for inflation to reach the 2% target that the central bank has in place but for some reason when oil prices move lower stocks follow in tandem and that's been an interesting trend to watch. >> it's a tough chicken and egg question but the correlation is there. cnbc has been crunching the numbers on the oil price moves and the potential impact on

saudi arabia. >> mark your calendars for august 28, 2018. if oil stays at $40 that's when saudi arabia would go broke. according to one model based on the kingdom's reserves, oil production and budget deficits. that assumes no changes in fiscal or monetary policy but it's an exercise some are watching for the middle east. saudi arabia is the region's biggest american ally and they can't keep up with such depressed oil prices. oil accounts for 90% of saudi exports and 80% of total revenue. they called the situation increasingly imperilled. even 50 and $60 oil would cause the country to run out of money by 2019 and not far into the future. the country has plenty of oil reserves. the problem is the low cash reserves meaning that fiscal adjustments and increased debt

issuance might be needed in recent years. but oil prices were much higher in 2011. kingdom had to sell $4 billion in bonds last year and authorities are looking to cut over $100 billion in capital spending. back to you. >> now steven cohen's investment firm raised it's stake in sunedison which focuses on renewable energy. they have a 5.1% stake in the company. he also disclosed he bought more shares last week. sunedison is down about 70% from its peak in july. shares rose about 3% in after hours trade. you can see now in frankfurt, down better than 4%. >> now burger king may have been spurned by mcdonald's over it's mcwhopper idea but dennys wants in on the action.

on monday denny's said it loves the idea of a peace burger to promote the u.n.'s peace day. the newburger would combine the whopper with the jam burger. two beef pattis, hash browns, bacon and a fried egg. they said we could name it the slamopper or the whopper slam. >> that's nice. >> mcdonald's is messing with the egg mcmuffin. they're tweaking the way it bakes using real butter instead of margarine. it will take place once locations run out of margarine. they're already advertising the change inside of stores with signs meant to highlight the real dairy addition. >> so margarine is a tomato

word. >> margarine. >> i just sound so odd. >> still to come on the show we'll talk more about u.s. and english pronunciation and wake me up before you lift off. we'll tell you why our next guest is singing a song to make his point on the fed. that's coming up after the short break.

a negative trading session across a ka across aasia. >> stateside the dow is called to open lower after suffering it's worst month since 2010. >> wti and brent back on the slide after the best three-day winning streak in a quarter of a century. this as citi and morgan stanley are not convinced by the rally. >> shares fall amid speculation that the head of the china yubt is being detained as part of a wider probe by beijing into the market volatility.

>> let's have a look at sterling while we wait. 153.48. we did have euro zone manufacturing pmi 52.3 just below expectation that came after germany just beat. france and italy just missed but all at the margin when compared to expectations. >> we are looking at european stocks relatively lower across the board. mounting concerns over weakness in china. the disappointing manufacturing data coming in below 50. lowest level since august of 2012. >> let's have a look at the u.k. manufacturing pmi. it's fallen to 51.5 in august versus 51.9 in july. the reuters poll had been for 52.0 so we're expecting it to be very close to 52. it's at 51.5. sterling slipped off the back of that. it's now flat on the session, 153.38 at the moment. >> consumer credit in line at

1.2 billion. interesting enough british mortgage approval rising to meet the highest level since february of 2014. the data shows that it's adding to signs that britain's housing market is regaining momentum after a couple of mixed months of data over the past two to three months and sterling basically holding on to the flat line against the u.s. dollar at 1534. >> just to sum up that manufacturing pmi which is disappointing the index for jobs in manufacturing is at its lowest since april 2013. so disappointing data there on the manufacturing side. >> we were just taking a look at european equities. we're starting the month down on a low note after they lost about 10% in the month of august. out of bear market territory for a number of the european indices and we're in sell off mode in september. better than 2.5%.

similar losses on the ftse 100 and take a look at the italian market. the underperformer down just about 2%. the china pmi figure falling to 49.7. take a look at how asian markets responded to the disappointing data. it was a down day for asian markets overnight and that's perhaps one of the reasons we're looking at european stocks responding negatively as well and even u.s. futures pointing to a lower open. you'll see that in the month of august it lost about 12.5%. in today's trade losing 1.3%. >> oil prices down today by a big move of 3 to 4% but it follows so now we're down 4.3% but it follows an 8% jump yesterday and a 27% jump for wti over the three previous trading sessions wti ended with a fall

at the end of the month so unwinding a little bit of the late august rally with a 4% decline in brent and wti the euro strengthened for much of the month came back and ended up higher by 1.7% but take a look at what happened in asia. it was the surprise move by the chinese central bank to devalue their currency that really sparked the global sell off we have been seeing over the past two weeks. the dollar yuan you can see at 6.36. dollar gaining about 2.8% that

suggests they'll continue to allow it to devalue. speaking of currencies let's look at the malaysian ringgett. it was the emerging market currencies with high exposures to the commodity market that resulted in the sell off. we're looking at the ringette losing about 9.8% against the u.s. dollar. speaking of the dollar, the dollar intex closed out the month of august over a percent lower. the greenback saw some respite on friday after comments that there was still a strong case for a september ratehike. our next guest though says his technical analysis have downgraded the shorter term prospects of the dollar in the wake of market volatility. let's get the word from the chief strategist and head of research. christian, where do you see the dollar headed here in september?

>> when this becomes imnltd, we think this is now happening and we'll see some more flattish dollar, especially against euro, yen and swiss franks. >> is this because a rate hike was already priced in or is it broader than that? is the longer term case passed us by now? >> we do not think so. we think this has further to go. it overshot recently. especially this year. it's been a breathtaking ride. especially against emerging market currencies. there's still a case looking at

the u.s. economy verses the rest of the world for the dollar to depreciate eventually. we expect that anymore in the fourth quarter or early 2016. >> let's talk about the other side. emerging market currencies have been weak and the links to commodities. is it time to go long those again or is that a period of volatility still to sit this out? >> we do not think it's time to resume and take it up. on a broad scale this is still given the uncertainties and volatilities this is not an attractive time to do that. it's high risk trade. we see the dollar not really materializing versus emerging market currencies so this is a different pair of shoes and of course this is huge swings which can happen any time soon but we wouldn't bet on that. we think there's better

opportunities when we take things from a global scale. >> what are you expecting from the chinese central bank over the next couple weeks? could we see the pboc step up and continue to devalue their currency? >> that's very possible. also with regard to the fixed income in china we think this is something which we have to live with which we'll see further volatility and down side in the currencies. >> at the same time don't you think that will result in other central banks looking to devalue their currency in order to make their exports more attractive going forward? >> that's if you're in a

position to do so. they're by no means in a position to do that. actual they see their currencies crumbling so they don't have -- basically they're in free fall sometimes. like if you look at the ringett and therefore the opposite is actually happening. the central banks has to support the currencies in many emerging market countries so this is something that would actually also make a breather very welcome because this would take away some and the central bank is in no position to cut rates at this stage. >> extreme volatility over the last couple of weeks. would you be long gold at the moment? >> no. at least not thinking about it from an investor point of view. u.s. dollars, euro and yen. more so if you were in an emerging market currency where

you see the devaluations gathering and things out of control but that's a different ball game. this is not an alternative right now and we see a lot of fiscal supply being dumped to markets and this is not absorbed by the emerging markets. we're still short in terms of positions. >> thank you for joining us. much appreciated. chief strategist and head of research. let's update you on the trade that we saw today in asia. the shanghai composite falling by 1.3% following a 12.5% decline in august. that's the month decline since august and one trading day of september as well of course the latest move following disappointing data. the hang seng finishing down around 12.3% and finally let's have a quick look at japan which today was down 3.8% bearing the

brunt of that disappointing chinese data. speaking earlier to cnbc, peter said he still saw opportunity in jap japan. >> from an equity market perspective we're looking at flat returns but i should be clear if we take a 6 or 12 month view you'll see good progress in equity markets and over that horizon we'd see the best returns in europe and japan. >> and it is those growth concerns in asia that have been weighing on u.s. stocks as well. in fact in the month of august, the dow, s&p 500 and nasdaq all losing about 6%. the worst month since may of 2012 for the s&p and the nasdaq. worst month for the dow since may of 2010. if we just take a look at the dow, you can see that monthly performance losing about 6.5% with energy, a big rebound in yesterday's trade given the oil rally that we have been seeing

but it is the worst performing sector in the month of august. the s&p 500, a quick look at that. you can see it's well below 2,000, at 1,972 closing the session lower yesterday and closing the month lower by around 6.3%. >> let's have a quick look at europe for the month of august. there we go. stoxx 50 down 9.4%. august was a tough month for two hedge funds in particular. both flag ship funds were down 5% for the month. >> sources say greenlight capital fell 5.3% bringing losses for the year to 13.8%. loeb's fund dropped 5.2% but it's still up for the year as a whole. they're typically the first big hedge fund managers to tally monthly results suggesting others could report heavy losses. >> well it was an august to

forget for major global indices. now we're asking you do you think it will be a september to remember? join in on the conversation. it's the first day of september. we want to know how you're positioning yourself. you can get in touch with us on social media. tweet us at cnbcwex. our personal handles on the bottom of the screen. >> it's going to be a crazy end to the summer and given the size of the moves to the downside a lot of the negativity will be flushed out. i still remain pretty bearish medium term but in the short-term we've seen a big correction so september has a chance at least to be better than august. >> historically speaking september is typically one of the worst months for the stock market. we'll have to see if history repeats itself. especially given the amount of macro uncertainty out there. jackson hole, what was that? so many divided opinions on whether we'll see a rate hike in

september. some saying we should factor in external developments like the china volatility and others saying just focus on the data back in the u.s. and the labor market continues to improve inflation picture. stanley fisher despite the drop in oil prices still sees inflation improving in the near future. >> it's going to be a fascinating month so do get in touch with us. worldwide@cnbc.com is the e-mail. >> apple is hatching a plan to take on netflix but will it work? we'll discuss this after the break. don't go away. in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can.

universities are using ibm analytics to understand pressures in and out of the classroom- some expect to cut dropout rates by twenty-five percent. ibm analytics is working to make education smarter every day.

>> live pictures in budapest. authorities are stopping all trains from leaving the main train terminal in an effort to prevent migrants for using it to leave for austria and germany. those are the live pictures from budapest at the moment. now meantime in berlin angela merkel and the prime minister of spain are talking following a joint meeting they've had there over the last day or two on the

refugee crisis merkel has said we're all obliged to stick to eu treaties and continues by saying refugees from syria are welcome. we should work toward a joint asylum policy and we need fair redistribution of refugees in europe. the prime minister also chiming in and saying we need to be in a place where we can have an eu-wide policy on this crisis. create a europe-wide asylum policy, he says. >> the reserve bank of australia has a record of 2%. the rba did not go into get detail on china and it's commentary. it saw weakness in a number of asian economies. the aussie dollar had some report but it's been struggling amid the falling commodity prices. we're joined now on the phone by david de garis.

senior economist at national australia bank. i suppose the surprise change in strategy came last month when they changed their tune on the need to devalue the currency any further. that was maintained this month as well despite the fact that china was devaluing their own currency. did that surprise you? >> look i think they have been beating the drum pretty loudly about the aussie dollar but that saying that the aussie has come off quite a long ways in the past two months. it's a little bit weaker again in the early london session today and the fact that it might still be playing catch up to the commodity prices but moving in the right direction so certainly less anxiety on their part there. >> overall in the housing market, what's the latest in your eyes? is there genuine pressure for

the central bank to keep an eye on? >> there's endeavoring to do that with other measures such as through the australian prudential regulation agencies and getting the banks to tighten up on lending for the investment property and the likes. it's early days but that does seem to be having a little bit of success in terms of the lending numbers. you can see melburne prices flatten out in the past month. with the economy still running well, the reserve bank, last thing they want to do is have to put up interest rates now and flatten the rest of the economy. >> what else can the central bank do, david, to boost exports when it's biggest consumer, china, is slowing down? >> you're absolutely right. so there's nothing that they can

do on the demand side or supply. so that relies on the response of resource companies and the like but the only sort of handle they have there is the currency. so they can talk about that. it is moving in the right direction now so it's providing some support. it's interesting despite the volatility in chinese markets and talk of commodity prices, they're steady in the last month. they have already done the work down in months previous to that. >> sum it all up for us. where's the aussie dollar heading for the rest of the year? >> look, it's obviously in the very short-term be holden to the chinese market developments and the like but we think the next few months the fed will commence lift off looks unlikely that it

will happen in september but we expect it before the end of the year so we've had a forecast of 70 cents by the end of the year and sub-70 in the first quarter of next year. >> thank you for joining us. senior economist at national australia bank. >> now canada's second quarter gdp out later today could show the economy entering a technical recession. this will be a key debating topic ahead of the federal election on the 19th of october. the central bank is unexpectedly cutting rates twice this year. and a third monetary policy boost could be on the table at next week's central bank meeting. >> google and sanofi are creating a partnership. collecting new tools to analyze the disease.

stefen has more on this interesting partnership. over to you. >> good morning. each company will bring it's own expertise and google will be able to bring big data. the key point is to monitor the level of sugar in the body which is the main problem for people with diabetes. the two companies are confident that they could reach some concrete results within 1 or 2 years and that's important because $400 million people are suffering with diabetes in the world and the number could rise to almost 600 million people over the next 20 years. diabetes treatment is a key part of the business. 20% of the total revenue last year including the best selling drug at sanofi in 2014.

the problem is it lost it in the last few months. therefore it's now facing competition from generic treatments and that's the reason why they want to take some initiatives in order to maintain it's market shares on the market of diabetes treatments so that's very promising. that being said the market reaction was not very enthusiastic. it's a strategic move but we'll have to wait one or two years before seeing concrete results from that partnership. >> a very interesting story. i was speaking to a venture capitalist in silicon valley. he said ten years from now we'll no longer refer to goolg as an adverti advertising partner. >> manufacturing drugs and research in the life sciences space. >> very interesting. >> we'll have to see and touch base in ten years time. >> shall we reconvene? >> yes. >> but interesting before that you said it's an advertising

company. surely it's a tech company. >> they make most of their revenue through advertising. it's a diversified company. where does the money come from adverts as you would say. >> another tomato. >> apple. is teaming up with cisco systems to help get more iphones and ipads into the hands of business users. specially optimized services. they're expanding their presence at a time when ipad sales are shrinking. apple chairman and ceo talked about it at a meeting in las vegas. >> the device is very important. the apps are very important, the network is very important but in

reality none of those -- each of those can be great by themselves and each can be great in total but do they work together se seemle seemlessly and that's what this sabt. i couldn't be more excited about it. >> let's have a quick look at price action. both of them off sharply in german trade today. we're looking at apple and sis c -- cisco off better than 4%. >> apple may be moving in on netflix's territory. the company has had talks with hollywood executives to gauge their interest in developing original content. apple is expected to unveil the new version of apple tv next week. he is leading the charge. variety says that apple made a large bid to sign top gear stars germany clarkson, james may and richard hammond but were outbid by amazon. >> that's a fascinating story

isn't it? >> the content area and what they're going to try to get into with apple tv whether it's to just build the best device to deliver existing content or try to develop their own exclusive content. i have no idea if they did bid for top gear but that would have been a bigger story than the trio moving to amazon if apple had gotten them. >> i agree. following netflix's footsteps but they also started working on their own content and they have done extremely well so perhaps apple is saying if they can do it, we can do it too. >> of course perhaps the most important content is live sports footage and maybe one day they start to move into that area too. >> they definitely have the cash. >> exactly. >> rather than paying a high dividend which we often debate about. let's move on. a group of china based entrepreneurs and financial investors are plowing funds into

efforts to develop nextev. a new challenger to tesla. they include uber investor hill house capital. efforts are supported by the chinese government that encourages investment in electric cars by nonautomotive companies. >> the falcon 9 rocket will be grounded for a few more months than planned following the launch accident that destroyed a cargo ship bound for the international space station. the company had previously said it's next flight would be no earlier than september. spacex believes the accident was caused by a metal support strut in the rocket's engine. >> the gear s2 will be discussed later in the show. earning enouk from bank of america to buy a new gym bag.

before earning 1% cash back everywhere, every time and 2% back at the grocery store. even before he got 3% back on gas. kenny used his bankamericard cash rewards credit card to join the wednesday night league. because he loves to play hoops. not jump through them. that's the excitement of rewarding connections. apply online or at a bank of america near you.

weak chinese data sending global equity markets lower. manufacturing pmi weighed heavily on the nikkei which ended the session near a six month low. >> in europe the dax is down by as much as 3%. state t stateside it's called to open lower after suffering the worst month since 2010. >> negative sentiment being felt in commodities. wti and brent back on the slide after the best three day winning ak