experience. >> where are you going to go? >> i don't know. i'm only a junior. but i definitely want to look everywhere and just talk to so many people. through this fair i saw how many amazing kids there are and what ideas they have so i'm excited. >> olivia congratulations from all of us at cnbc. >> "closing bell" starts now. this is cnbc breaking news. market selloff. hi, everybody, welcome to the "closing bell," i'm kelly evans. we do have a selloff here at the new york stock exchange. >> another big selloff, all ten sectors inside the s&p 500 index are negative right now. commodities have fallen on new concerns over the slow down in china. that seems to be one of the big themes today, although we're hard pressed to come one a central theme for this selloff right now. >> on that point the chinese

president arriving in the u.s. today. he will be attending a round table of business leaders and it's called by henry paulson. we have an exclusive interview coming up. >> meanwhile, a weak forecast from carnival cruise lines this morning, that has pressured those shares and the ceo of the cruise line will join us in an exclusive interview to discuss how the global slow down especially in china may be hurting his business. that's one of their big growth areas right now. >> those shares down 5.5%. shortly hillary clinton will discuss her plan to lower prescription drug costs. we will bring you the latest on those comments. >> let's get to the crux of today's commodities slide. kate kelly is here with you at the new york stock exchange with some of the latest on that. what's been going on there? >> a report overnight pre diblngtsing chinese growth would fall loan 7% to 6.8 instead probably got the snowball

rolling originally. with it a new slump in copper which is flirting with six-year lows about concerns generally over concerns about a slow down in buying by china among other things, overproduction perhaps another issue. at the 2:30 close almost every major kmotdsity was in the red, including wti crude which of course faces continued production issues of its own as well as concerns about u.s. shale drillers dozen losing access to bank credit this fall. but also big falls in precious metals. mining stocks took a beating. glen core the swiss company fell more than 10% in london and is almost in penny stock territory. there could be more more to skom. the manufacturing report of chinese factory production comes out wednesday. the august report was at a six and a half year low even with the chinese government interventions, the market definitely worried here. >> there was also some analyst

reports i guess spooked people a little bit. even to your point about these growth numbers this feels more like kmod itsz looking for than excuse to sell than that substantive of a new development. >> i think that's fair, kelly. i myself was searching today and making phone calls and reading what had happened overnight to get clues as to why we've seen such a big tumble today, especially in a stock like glen core. they are selling aspects and suspending a dividend in an effort, it's clearly not work. the china story has been unfolding for quite some time. when you look at things being at a six and a half year low as we did with the chinese manufacturing, copper and other commodities, certainly oil in the u.s. and globally. it's a cause for worry and you think to yourself here we are 2015, much has happened since 2008, but obviously the fed is not ready to hike rates yet, even after all this time and it would seem that globally the

picture might be more dicey. emerging markets a huge concern, china not a bear story necessarily but certainly a decel rating story. with so much of the world depending on them in various ways it's a problem. >> that's it. when you think about last thursday and the news conference with janet yellen and the number of times that china came up and now with all of this that you're citing with the lack of demand for natural resources and raw commodities you wonder what kind of a number when all is said and done what kind of a growth number we can assign to the chinese economy. it keeps getting lower and lower. >> and as you know, bill, there's mistrust about the government numbers to begin with, but it seems that everybody's growth trajectory is down, not that the growth will be negative, but the rate of acceleration will be deceleration. so, yeah, i mean, i think those are all factors. the thing about commodities to take the long view we had an investment phase that's now over, we had a super cycle that's almost certainly now over and now we're in the exploitation phase and over the

longer term this is very cyclical, very much to be expected and those that are liquid and solvent and are planning for the long-term aren't terribly worried. the problem when it comes to commodity investing, new infrastructure projects and trading relies on a lot of leverage and access to financing and that's where the worries come in among many others. >> thank you for now. kate kelly trying to pin down this move in commodities that is weighing on the markets today. let's talk more about it in our "closing bell" exchange, men moraz and rick santelli joins us from chicago. peter, you have that, you have the european selloff earlier this morning that comma contributed to the problems facing vw and the billions of dollars they're setting aside, the earnings hit they are going to take. going back to a question kelly was did go earlier, does this feel like an excuse to sell off? >> i just think, bill, it's a

continuation of the same story from last week. i think we're probably going to see this story play out over the next probably two or three months. until you start seeing earnings come out and start seeing that earnings picture and we get a better idea of what the economy looks like from that aspect you're going to continue to have these kind of days. i think that with the commodities selloff and the uncertainty over the numbers in china, yeah, you know, there's a lot of question marks out there. i think question marks are usually reasons for selling. >> yeah. ken, are you guys selling? are you moving more into cash these days? how are you playing this market? >> actually, as we did in november of 2007 when we told our clients to get out of the market we did that over a month ago at this point. this market if you look -- i think we're overcomplicating the commodities story. it's simple. the world's economy is slowing down. people are going to use less commodities if that happens. i think we're going into a global recession. if you look at china with the

engine of the world's growth, the bricks are almost everyone of them i think china is probably headed for recession. >> what does that mean for investo investors? there are some that argue with that happening that u.s. stocks are more attractive. >> we are not an island. the united states does not operate all by itself. if the world is in a recession the chance right side we're going to go there, too, and i think if you look at today with ten of the sectors being down, going into 2007 we had 12 days like that, we have had 13 going into this now. i think we're headed for a bear market right now. >> rick, there was a time when you could look at the markets, especially like the treasury yield curve or whatever and see if it was forecasting a global recession of some kind. maybe that's tougher these days but i will say that 30-year yield that we saw climb so precipitously yesterday is back down where it was on friday. are you seeing the markets forecasting a global slow down right now? >> i think you are correct in

your first comment that it's very difficult to try to look at the markets and to find some since of future order. there used to be a time when many experts would say you look at the stock market that's going to give you a good glimpse of the economy two quarters down the road. all of those days are gone and i think this story is much more simple on many levels, you know, many things were overfunded during the sbir rim period between the crisis crisis and today, overfunded in terms of zero interest rates, quantity fate testify easing. you know how the story goes. all the air that was put in the global balloon is coming out. commodities, yes, there is a big command story but also a past supply story. the supply loomed too large because of all the cheap money funding and funding went into a lot of things, maybe it went too much into apple, maybe the apple car, maybe tesla, we don't know how it's going to turn out. companies that ended up getting too much funding for the markets in their entirety ended up

getting bloated a bit and it made them difficult to handicap how equitable some of the price depreciation will be. i think at the end of the day there's only one -- actually two constants. i think the u.s. stock market is going to have a lot of volatility but it still may be an island of safe harbor when all of the volatility is over and the second motion is there might be a wild path to interest rates. yesterday they were up, food they were down, but overall the one thing we can count on rates to forecast is global glide path being less than it was several quarters ago. >> i just wonder, peter, amid all of this as rick and ken have been discussing is this market you feel ultimately going to push the fed to do something to be more accommodative. >> if you think about it i think the fed has pretty much maintained that the market doesn't guide them, they guide the market, you know, from their decisions. i do think they look at t but to me as from what i gathered and what they've said in the past i don't think it's the top -- you

know, it's in the top tier of their data sets. i think that they do take it into account and i don't think it's really that big an issue. i think the wage growth as we've said many times, they are talking about full employment, which we're gets there and talking about money, you know, making sure that there is -- inflation is kept in check and we have no inflation. so i don't think the market is really -- >> you don't rent, do you, pete? >> i totally disagree with that. >> okay. >> i think you see the federal reserve is looking at full employment based on historical standards, you see inflation totally under tech. why would they not raise interest rates right now? >> because of the global economy, right? >> exactly. they are worried if they raise interest rates the stock market will sell off. by the way, those of you who are still in the market right now if the fed had raised interest rates a quarter of a percent last week you're lucky. you would have lost 2000 points on the dow. >> we don't know that.

>> we don't want to slow down the u.s. economy as well. they are looking at the markets because otherwise they would have raised interest rates. >> i'm sorry, we are out of time, everybody. we have to leave it there. that's ken moriaf. peter kof and rick santelli. hillary clinton just moments away from announcing her plan to reign in drug costs that's also taking a leg out of this market. meg terrell has the story. meg. >> that's right. hillary clinton expected any minute in the speech to detail her plan to cap what she calls price gouging in the specialty drug market. did play out some of the details of that plan overnight. we know that she would allow medicare to negotiate drug prices. it is something that biotech investors fear because right now the u.s. government doesn't have the ability to negotiate on drug prices right now it's just private insurers that do that. so the united states has higher drug prices than anywhere in the rest of the world. her plan also includes

incentivizing research and development over marketing so we could potentially see fewer direct to consumer ads for drugs. she would also allow importation of drugs from other companies where they are cheaper. staking them back over borders. she would also expedite the generic process trying to clear out the fda's generic unit in order to for them to be fully funded and be able to process these applications and shorten the time that biotech drugs get to be exclusively on the market from 12 years to 7 years, that's wrangling a lot of folks in the biotech industry right now. thee also came out after all of this brouhaha over the drug whose prize he raised by 5,000%. she would put a cap on $250 a month on what consumers would pay for out-of-pocket prescription drugs. some people say that wouldn't cap would the drug costs just what patients are paying for them. mar stin skelly for his own part

has been tweeting that he is going to go on a national news interview and announce some adjustments to his plan. we've reached out to him to figure out what those are going to be. he was definitive when he spoke with us yesterday that he has no fans to change anything. >> it was a one word answer that he gave you when you asked if he was going to lower the price and he said no. it will be interesting to see what that's all about. you use the word wrangel when it came to the industry response e that he was out early on bee moaning the impact it would have on the healthcare industry. >> that's right. folks were worried that she would, in fact, allow medicare to negotiate on drug prices. that's the one that analysts keep citing as the one that folks are most worried about, however, in the same breath these analysts say it's unlikely this could pass through a republican congress. maybe it's more sentiment than actual reality that's affecting the biotech markets. >> and still incredibly specific as we are a year out from the

actual election let alone narrowing it down to these two for president next year. meg, we will leave it there for you. we are 15 minutes away from hearing more details about hillary clinton's plan. let's get to dominic chu. he has a quick market flash for us. >> we're watching shares of ncr, former national cash register. they make point of sale systems and atm machines. that chart near the lows, down by 7% on new york post headlines and a report that possibly ncr has -- or at least black stone group the private equity giant has dropped its pursuit of the company, this a korgds to a source close to the situation. again, in the new york post it is moving the stock, we will point that out here again, moving the stock down 7%. again, ncr shares very much in focus. this has been talked about as a possible buyout candidate but it appears right now that this story is getting headlines here and moving the stock.

back over to you. >> bill, there has been plenty of discussion about what a tough slog atm companies will have. new regulations having to install and upgrade their systems for chip and pin not to mention we are paying with our apple watches. >> some of us are. >> 45 minutes to go until the close. the dow down 239 points, the s&p giving up 31 today, the nasdaq down almost 2%, it's down 90. >> goldman sachs one of the stocks dragging the down on that news about ceo lloyd blankfein's health. we have the latest coming up. >> hank paulson speaks to us exclusively. he's hosting china's president and tech ceos at a conference in seattle. find out what their main message will be coming up. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities.

we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. stocks dragging the down on that it's more than the cloud. it's security - and flexibility. it's where great ideas and vital data are stored. with centurylink you get advanced technology solutions

from a trusted it partner. including cloud and hosting services - all backed by an industry leading broadband network and people committed to helping you grow your business. you get a company that's more than just the sum of it's parts. centurylink. your link to what's next.

welcome back. the dow dn 237 points. what did you say, it was down 289 at the low. >> of the lows of the session. >> we head toward the last half hour of trading. we want to check in on various sectors through the eyes of some exchange traded funds and how they are trading today.

the slide in biotechs continues today, although not as much as as some of the home builders, material stocks and the emerging markets which are down 2.25% at this hour. >> let's collect in with bob pisani who has been tracking the action all day. >> the problem is in the materials and global industrials and it's a china development, whether you have the china development bank talk being lower china gdp in the 6s. that's weighing on the whole global markets right now. particularly on the commodities size. here is rio tinto down 4%. bhp, they are all down. the volume isn't particularly heavy. there's no buyers out there. no interest in even trying to pick abottom. alcoa down 4.5%. not real heavy volume, another move to the down side. the steel stocks in the united

states, ak steel you see down 3.7% right here, volume not particularly heavy but again no buying interest at all, as any negative comments -- lets me point out what's going on with the automotive sector. bottom line, when the french finance minister comes out and says we should have an investigation of the entire automotive industry that's bad news just just four german auto makers but u.s. auto makers. these auto makers are the heart of the german economy and german stock market, the german etf down 8% for the week. that's a major topic. we are talking about the german symptom market, not individual storks, the entire market down 8%. back to you. >> thank you very much. on we go, goldman sachs responsible for a big chunk of the dow's declines today. ceo lloyd blankfein disclosed that he has what he called a highly curable form of lymphoma. mary thompson is in washington

she's covering that story for us right now. mary. >> well, bill, after receiving his final diagnosis yesterday at noon blankfein informed the investment bank's board at 4:00 and firm's management team last evening. in a public statement blankfein saying my treatment plan will include chemotherapy in new york, my doctors have advised me during the treatment i will be able to work substantially as normal leading the firm. a person close to the firm says the coo and president gary cohen also a public face of goldman sachs may see enhanced responsibilities during blankfein's treatment as blankfein will be can you get back on travel. the sos sofrs also noting the firm is very deep in managerial talent including harry schwartz and michael sherwood. ceo since 2006 the 61-year-old blankfein came up through goldman's trading arm. he has overseen record profits, add to a firm which teetered on the brink of collapse during its financial crisis.

more recently he has helped to oversee an aggressive redo of the company basically the dee risk the firm this because of an aggressive regulatory environment. of course, blankfein is among the latest ceos choose to go work while battling cancer including jp morgan's jamie dimon and the late ben moshei. >> how much more disclosure do you think we will get from lloyd bank fine about what kind of preliminary foam ma it is, how business had treatment is going. it's a broad issue that could go a number of different ways. >> well, as far as what kind of cancer or lymphoma it is, the firm and mr. blankfein are choosing not to disclose that. i'm not sure we will get any more information about that. as far as how we're doing, it's unclear whether or not mr. blankfein is going to dial back on his public appearances which might provide an opportunity for someone to ask him how he is doing. i think that's probably how we would see or get any updates on

his health during this time, but again in the statement he says this is a curable form of lymphoma and he does plan to work during his treatment. so i'm sure he will be in the office and, again, if he is making public appearances it will probably provide people with an opportunity to ask him about his health. >> mary, thank you. our thoughts certainly with mr. blankfein as he battles this, just as with so many others. >> we do hope it is highly curable. into the close about 37 minutes left in the trading session here. again, off the session lows, but still pretty healthy selloff today with the dow down 244 points. now former goldman sachs ceo and treasury secretary hank paulson speaking up on u.s. chinese relations. shares of carnival lower after profits take a hit because of the stronger dollar. carnival's ceo will speak with us exclusively when we come back on "closing bell." active management can tap global insights.

active management can take calculated risks. active management can seek to outperform. because active investment management isn't reactive. it's active. that's the power of active management. want bladder leak underwear that try always discreet underwear and wiggle, giggle, swerve and curve. with soft dual leak guard barriers and a discreet fit that hugs your curves. so bladder leaks can feel like no big deal. get your free pair and valuable coupons at always discreet.com

tough session for markets today, the dow giving up 220 points, the s&p 500 down nearly 1.5% or 29 and the nasdaq down 1.75% down 84 points, pretty broad based weakness. part that have selloff carnival cruise lines down 6% despite beating earnings this morning. let's get into those numbers. we have our own simon hobbs joining us with this exclusive

interview with carnival cruise ceo around donald. >> he joins us live from carnival's miami headquarters. welcome back to the program. are you able to be one of our first ceos to come on and say categorically my fuel bill is down 33% over the past year, i am benefitting from the lower cost of commodities and that is one reason why i beat expectations today? >> fuel contributed a little bit to be honest with you, first of all, good afternoon to you, kelly and bill. the reason we did well was really operational execution. our third quarter we were up 17 cents over prior year third quarter and that was with a drag, a 2 kent drag from fuel and currency together. so fueling helps, but the strong dollar offsets it for us and then for the year we raise our guidance as you know and raising our guidance will deliver 35% increase in earnings this year over last year and that's on top

of 25% in sae 14 over sae 13. we're doing certainly well, we look forward to a strong way and are well on our way to double digit investment capital in the next few years. >> your stock is down today. there is a slight confusion about the fourth quarter and what's happening there. i want to push that aside. the bigger deal is the fact that all of you in the industry are trying to book people on to cruises earlier so you don't have to discount at the last minute. you seem to be good for the first six months of next yearbookings are up 20% but what is worrying people is the price is slightly down on last year. now, one of the prospects for recovery on that as you work your way through 2016. >> we feel we are really well positioned for a solid yield improvement next year and to stay on track for our double digit return investment capital on the next three to four years, the fact early pricing for next

year is a brings of things, transaction nl currency, not just all discounting, there's deals for special clalss of guests, et cetera. but the bottom line is we are even more encouraged now, we were already encouraged in june, in our june guidance, we are more encouraged now about the spos spect. i would tell people looking to book a cruise they should book it sooner rather than later because prices will be strong next year. >> donald, simon was telling me about the growth area that china has back for your industry and you specifically as you add more lines there. so i have to ask you if you can gauge for us what the chinese economy looks like, especially when we know that our own federal reserve chose not to raise interest rates last week in part because of concerns about the fragility, perceived fragility of the emerging markets and chinese economy. are you glad the fed didn't raise rates as a result?

>> well, what i would tell you is we're very pleased with the progress we have made in china, we back add twog additional ships next year, we will be up to six ships, we are the largest in the industry and china with home ports will be that even more so next year. but our industry is at a very early stage of development in china and so right now the demand for cruising is far in excess of the number of ships that we and others have there in country. so while some of the dynamics that are going on at the high level of stock market changes and gdp fluctuationes in china in the main we don't see that at our level because we are so early in the development of the market with the ships relative to the demand we are seeing. >> around, just before we let you go a humanitarian issue that has of been of top concern to a lot of shippers in europe. is your cruise line experience are you rerouting, are you having any difficulty with some

refugees and migrants trying to climb aboard your ships? >> no. there's no issue like that whatsoever. in fact, i think there's only been one incidence where a cruise ship was in a position to rescue refugees that were adrift and at risk at sea. there is a consternation of many european cruise -- not just cruise but travelers in period about the refugee situation and it has damp nd travel appetite in europe in total as well as impacting somewhat the cruise appetite. having said that we've had a strong year in europe and have done well and expect to do better next year. >> there's never really enough time for these interviews. we have to leave it there. arnold donald joining us from the miami headquarters of carnival. >> thank you. good to be with you guys. simon, thank you. >> thank you both. time for a cnbc news update with sue herrera.

sue. >> here is what's happening at this hour. european union ministers approved a plan to relocate 120,000 migrants across europe, you were just talk being that, the plan compels all eu member countries to take an allocation of migrants, greece and i will alley have had the brunt of that burden seeing thousands land on their shoers almost daily. senate democrats have blocked the republican bill that would ban most abortions after 20 weeks of pregnancy. it comes in the midst of the gate over planned parenthood which could lead to a government shutdown on october 1st. a new study finds some drug companies charge up to 600 times what it cost toss make some modern cancer drugs and reuters says the united states pays more than double the price charged in europe for the same medicines. drug companies say they need to make money to pay for drug research. and you can follow the pope on facebook and on twitter and now he has his own hashtags, if you tweet #pope in u.s. you will

get an image of the pope in front of the flag, #pope in d.c. reveals the capital, #pope in nyc reveals the statue of liberty and #pope in philly you get the liberty bell. and as you know, guys, the count down continues. he is due to arrive in washington, d.c. about 4:00 p.m. eastern time where president and mrs. obama will meet him. back to you guys. >> what we're hearing is that #he's early. he may be arriving any moment now. >> yes. >> so obviously the wind was beneath his wings as he made his may from kwaub to the u.s. >> in many different ways, bill. >> see new an hour. 30 minutes to go here. as soon as that happens we will bring it to you here on cnbc. the dow down less than 200 points now, the s&p down 25, the nasdaq 75 on the session today. >> up next, anything can happen. this final most important half hour of the trading session a top trader will tell us what he's watching in the sell off coming up. >> we will marry from former

treasury secretary hank paulson who is hosting china's president out in seattle. >> we are awaiting the pope's arrival in our nation's capital, scheduled to land at 4:00 at andrews air force base but we're hearing now it could come any moment. as soon as the plane touches down, we will take you there live to washington. stay tuned. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. ♪ ♪ (under loud music) this is the place. ♪ ♪ their beard salve is made from ♪ ♪ sustainable tea tree oil and kale... you, my friend, recognize when a trend has reached critical mass. yes, when others focus on one thing, you see what's coming next.

you see opportunity. that's what a type e* does. and so it begins. with e*trade's investing insights center, you can spot trends before they become trendy. e*trade. opportunity is everywhere.

welcome back. markets make a little bit of a come back here. it was a session overnight, a cuff one for commodities and a lot of the relate id companies. the dow is down 170 points, that's 100 points off the lows of the session, the s&p is now down 22, the nasdaq 69. >> s&p the 500 components inside we are seeing a little more green creeping into that first row there with the index innself down 22 points. so as we move into this last half hour and await the landing of the pope at andrews air force base joining us is keith liz from can a tone and company. what do you make of the selloff? we've been trying to put our finger on what's been causing it today. we can't come up with one thing, we can come one several things. >> it is a ma nash ri of bad stuff inside the markets.

it's amazing how quickly the sentiment and momentum turned. we had that minor rally at the end of the august after we got some of those over sold conditions worked off. that did enough technical destruction inside of the market in terms of taking the major indexes and bringing them below the major trend lines as well as the advance decline line and hard core technical indicators we look at. so even the minor blip up that we got yesterday because jim bullard says we're going to raise rates, there's enough out there where i think the path of least resistance is down. >> all the same things people are saying, words like recession. is there a real slow down percolating here? >> some of the things i look at and the macro economic indicators and micro economic indicators in the united states i do think that's a real concern. if you look at whatever you want to call this boom cycle, growth cycle, albeit it's been weak by

traditional standards, it's very long and intense at this point in time. policymakers are worried about not only here in the u.s., they're worried about a contagion effect with their partners. the companies that we use and trade and invest in today are not simply just inside of this market, it is a global economy and if the other emerging markets and the secondary markets are struggling we could, too. >> and we are, although we're coming back up a little bit. >> pope francis garnering a large amount of attention for his arrival in the u.s. today. he is not the only international leader on the ground. >> on the other side of the country we have the president of the china land nothing seattle to start his six-day visit with stops in washington, d.c. and new york as well. now, the stop in seattle includes a meeting with business leaders in a round table put together by former treasury secretary hank paulson. >> cnbc's michelle caruso cabrera did speak to haik paulson in seatsel.

what did he have to say? >> reporter: there are going to be two meetings for xi jinping while he's here, one ork straighted by paulson and one talking about internet security concerns and potentially new national security law in commit which might commit u.s. technology firms to do things that raise questions about whether or not they're giving the chinese government too much access to their data and back door access to some of their equipment, et cetera. two meetings have been billed as china's attempt to influence the american business community to be advocates on their behalf. hank paulson, though, was very clear to us he felt that this meeting that he was ork stragt was about the american business community telling china that it needs to keep its markets open. >> china is very important to these multi-national companies and their voices haven't been quite as loud in support of u.s.

china relations because the business climate is becoming more difficult, they have concerns not just about the economy, but concerns about the pace of reform and opening up and concerns about whether some of these new laws and regulations are, you know -- which are limiting access, they have concerns about the intent behind that. >> reporter: he made it very clear he wanted to commit to a high level of engagement to china would still be committed to deep market reforms. i asked him about the op-ed published by the u.s. secretary jack lew today which questioned whether or not xi jinping is committed to reform. he says he absolutely thinks he is committed to reforms but china isn't monolithic and it's incredibly difficult to achieve reforms when you have a plurality of vws plurality of should be happening in the stfer

stur. i also asked him about his successor at goldman sachs, lloyd blankfein and the announcement that came from mr. blankfein about having the highly curable form of lymphoma. here was former goldman sachs ceo hank paulson's message to current goldman sachs ceo lloyd blankfein. >> i think lloyd has got great support from so many friends all over the world, from people like goldman sachs. his whole life has been about overcoming obstacles, that's what he does and he is going to overcome this. >> reporter: so coming up in the next hour, guys, we will play you a lot more of what hank paulson had to say about the issues of cyber security, what should the u.s. do about that and its relationship with china and more about how china can grow and overcome this difficult spot that's in right now in terms of its economy. back to you. >> we very much look forward to

that. for now, michelle, thank you. >> thanks, michelle. >> our michelle caruso cabrera. the dow only down 166. the lows of the session it was down 289. still declines of 1% for all the major averages. >> oil saw a late come back, equities are doing the same thing right now. >> volkswagen dealerships may be seeing less traffic as a result of its emissions scandal but that may be the least of their problem. also we're waiting for the arrival of the pope at the andrews base outside washington. scheduled to land on shepherd 1 around 4:00 p.m. eastern time. we are hearing it may be a little bit early. we will wait for that as he gets off the plane and greets the president and the first lady and when that does happen you will see is it live here on cnbc. stay tuned.

my name is watson. i'm helping doctors keep people healthy. take ted here. i'm pulling together data he shared from his wearables, health records and family history, so we can analyze it. he's doing everything right... for the most part. no pain, no gain. you are a beast, ted. my name is watson. how can i help you? ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪

which means you can watch movies while you're on the move. sitcoms, while you sit on those. and even fargo, in fargo! binge, while you lose weight! and enjoy a good cliffhanger while you hang from a... why am i yelling? the revolution will not only be televised. the revolution will be mobilized. introducing the all in one plan. ly from directv and at&t.be mobilized.

welcome back. volkswagen emission scandal does continue to grow and worsen. it is now, get this, estimated 11 million cars worldwide were fitted this this emission beating software, not just the half million that were recalled in the u.s. last night at an event here in new york to unveil the new 2016

pass sat volkswagen north america ceo michael borne offered his mea culpa. >> our company was dishonest with the epa and the california air resources board and with all of you and in my german world we have totally screwed up. >> amazing. >> that works in every language. with volk wagon stock getting hit hard let's bring in phillip bove. >> well, the next couple of days will be interesting. i think we will find out, a, does martin vendor corn say as the ceo of this company. >> he says he's staying. >> his contract expires on thursday, that's good timing if you are the board and you say he has had a number of opponents within the management team who were debating whether or not he should stay. if you're going to make a management change this would be the time to do it. don't forget you have governments within germany that are large stakeholders of vw so they are looking at this saying,

wait a second, what are we doing here? that's going to be in the immediate future the main thing to look for. we should hear about that over the next day or two. >> this is unbelievable how forthcoming they are already. just right or wrong you compare it to general motors and how they handled their own problems with the ignition switch, there has to be the internal investigation and wait for the fed. >> they're following the gm script. >> they're saying we screwed up. >> they fought the epa for a long time before the epa put their feet to the fire and said you either come clean or there's going to be repercussion was your 2016 moldless. now that they have they're following the script, the ceo apology, video apologizing. we've done wrong by our customers we will make it right. the congressional investigations are beginning, the doj, attorney generals in a number of states. we're going down that same palgt. >> phil, as you know from how many of these over the decades

these recalls don't tend to have that much of an impact on sales and long perm ter form ans. to see vw stock how much it is, what is that implying? class whast it that investors are thinking ends up happening here? >> one, remember you're talking about most of these being large institutional investors in europe and they are making a statement with their move on the stock. that's the first thing. with regard to the first point you made about whether or not this will hurt vw sales, keep in mind that, yes, historically if you are an auto maker you throw another,000 on the hood people forget about the recalls that are out there, but these are diesel buyers and you know what california is like, they are early adopters and they are mad. they are mad. >> yes, they are. and we are going to washington where the pope shepherd 1 is just now touching down at joint base andrews as pope francis makes his first trip to the

united states. >> yes. >> period, not just as pope, but he has never been here. >> first of his lifetime, that's right. there essay riefg at andrews air force base where he will begin tomorrow a series of meetings at the white house and a visit to three major cities in the u.s. >> president and first lady will be greeting him when he gets off. one of the questions pending is will he per tradition be able to get down and kiss the ground when he gets off the plane there? >> let's get to our mary thompson who is covering this story. and his visit all week from washington right now for us. >> it is a six-day swing along the eastern seaboard for pope francis who as you mentioned just touched down in the united states for the first time ever. this 78-year-old pontiff has never been in the united states where there are 70 million catholics here including a number in congress which he will be addressing on thursday, about 30% of the members of congress count themselves as catholic. as bill was mentioning earlier

the president and the first lady will be greeting the pope when he a radio riefs at long with their two daughters. vice president joe biden and his wife also in attendance along with two of the biden grandchildren n addition to that you have a whole host of luminaries from the catholic church in this region, some arch bishops from washington, also the neighboring states of maryland and virginia all here to greet pope francis. of course, the 266th pope of the catholic church which counts 1.2 billion followers as parts of its flock. it should be an interesting visit. of course, francis has really changed the message of the church, focusing it on the poor. he's also made some strg comments about capitalism that has raised eyebrows in the financial capital of the world and while he is aware of his critics, the papal watchers expect during his time in the u.s. where he will be addressing congress and the u.n., they

expect him to basically remind the u.s. that to much is given, much has to be returned. so just basically a message of remember your place in the world, a place of power, a place of prosperity and work to share that with more people. there you can see a number of the cardinals lining up, the religious lining up to greet the pope. >> we've got -- mary, thank you. stay right there. we have david dars is with us at the new york stock exchange. you, my friend have an audience with the pope coming up during this strip. >> yes i do and in all humility i had a brother who was a member of the religious clergy as you may know and he has passed away and i'm sure that the holy father is going to bring great message. he is a humble pope without humble ambitions and i do like that. so, bill, it's going to be great to see the message. he is going to give a total of 18 speeches over the next four days. >> and the message he will

carry, i mean, we know he has been critical of -- in many ways capitalism, kelly and the impact it has on the poor. >> oh, sure. >> which has been his message as mary was pointing out. what will be most interesting to me will be to hear the message he carries to congress during that joint speech. i know he is going to highlight the environmental issues, but you've got to know there's going to be some little moment in there that people will be watching for as he talks to the leaders of the capitalism. >> i believe the first time pope has addressed congress. >> yes there sofs some question whether whether it was appropriate to applaud during his remarks especially when he touches on areas of immigration. one interesting thing about the u.s. catholic church is how heavily centered it is on the has panic situation, as opposed to the areas he is visiting which include new york, washington, d.c., philadelphia, boston as we've mentioned not on the list. >> not on the list. and, mary, i know the impact

economically -- i don't know that the pope would appreciate it there in washington. i was just seeing that, for example, we all know the hotel rooms will be booked solid. so airbnb rooms are going at a huge premium right now and uber cars are going to be charging up to ten times their normal rate while th pope is in town there. something that usually only happens around new year's eve. so stls a huge economic impact obviously as the pope makes his way through the u.s. here. >> well, certainly there are going to be tens of thousands of people who come to see the pope along the motorcade in washington, d.c. and during the various events that he will be attending including tomorrow a canon zags mass which is a main event here in washington, d.c. the reason he is here in the united states is because there is the world meeting of families and that's taking place in philadelphia. it will all basically conclude with a mass that the pope is holding outside in philadelphia on sunday, an estimated 2

million people are expected to be there and philadelphia is the one city that's putting out a solid number on the expected economic impact of the pope's visit there in excess of $400 million are some of the estimates that we have seen there. but certainly along with the economic impact he is going to bring along some gridlock as well. it's very high security events having him here and of course in new york city at the same time that the new york general assembly is being held too. >> the greatest security force we have seen in the united states to this point with the pope's visit here. david, i was going to say to you, my friend, you know, the pope embodies humility and that's not a word we often use in conjunction with wall street and you wonder how the pope views wall street and vice versa. >> bill, i just love this because he is going to come here to deliver a message. i know for sure -- and i am not a dog mat tick predictor as you know, but i know for sure he is going to leave the united states of america charged up and very,

very appreciative of our way of life and all of the positive things that exist in this phenomenal nation that is an example to the world that is raising the standard of living of the entire plant. and i know he is going to leave here might i will impressed. when i see his plane land it reminds me of mohammed alley was flying on an airplane and the flight attendant told him to buckle his seat belt, he said i don't need a seat belt superman doesn't need a seat belt. she said superman doesn't need an airplane, either. fasten your seat belt and he did. we hope the holy father comes and gives a great message at the same time that he delivers a great message, bill. >> we should also remind people it's not just his audience with the u.s., the pope will be addressing the u.n. general assembly in a couple of days. mary, what do we know about -- forget just the american audience, we mine while have the

chinese leader in town, a host of different countries. are you hearing anything about what he might address in his remarks then? >> well, at the u.n. general assembly it's likely to focus on climate change, probably the migrant crisis in europe will be touched on and his continued theme of helping the poor of the world. you might recall that earlier this year the pope released an en cyclical which is is praise be, it was basically an environmental en cyclical that's what he will be talking about with the u.n. here in the u.s. in philadelphia he will be giving a speech on immigration. this has been a core mission of the catholic church. they believe that people who are born here in the u.s. should be granted citizenship and their main concern is not separating families of immigrants -- or not separating immigrant families, ie deporting members of the family while others get to stay in the u.s. this has been a long standing position of the catholic church and we're likely to hear the

pope touch on this as well. one thing i do want to note, i know a number of people would be happy to put pope francis in the anti-capitalist box, but you have to remember from where he speaks, he always speaks with his eye on improving the life of the poor. he has said in the past that the free market system has helped to raise up a number of people, but he talks consistently about the dignity of work and the need to put people to work not only to improve their life sometime, but basically to just fulfill a basic human need and that is to be useful and to put a person to work to give them structure and provide them with a way to, you know, live their life more fully. >> that's a good point and one as well where he said it's the worship of capital first that is the problem. by the way, we have 90 seconds to go here as bill and i sit at the new york stock exchange. markets are going down in negative territory today but we are well off the losses. the dow lives gifs to give up

170 points. >> the pope is very mindful of what he symbolizes and while he is here he will be a shung a lot of the trappings. he won't be riding around in a limo. he has a small car and he will be meeting, mary, as you well know in his itinerary with a number of gathering of poor people. he has already held skype meetings with people on skid row in los angeles, for example. those people will be high on his agenda even as he meets with heads of state. >> right. it's an interesting, as you say, agenda that he has put out. he will be meeting with -- or when he comes to new york he is going to be going up to a school in east harlem the night after he is at st. pat's where a number of business luminaries will be there. he will be meeting with the families of the victims of 9/11 and again holding a mass at madison square garden. he tries to touch as many people

as he can when he makes these visits. there you can see they are preparing the steps of the plane. shepherd 1 where we are expecting the pope to descend momentarily. >> the applause you are hearing is for the closing of the stock exchange here in new york, not for the arrival of the pope, although i would imagine that if they could they would applaud td pope. >> one of the few places where you will hear we will have postings about what feast days will be coming up and the mass schedule for local churches. >> was it two years ago or three years ago when we waited after the puff of white smoke came out at the vatican and they opened the drapes and owl walked that man from argentina and they announced that francesco would be his name and we learned that this humble man of italian dissent who had sent his entire life in the church in argentina would become the next pope, the first south american could

become pope of the catholic church and now he makes his way finally for the first time in his life to north america and i know cardinal tim me dolan who heads the new york archdiocese said that before this trip the pope took cardinal dolan, showed him a map of the united states and asked him about different regions of the united states and what the people were like this there, what was important to know about those regions of the country. he was really doing his homework and we know he is not comfortable speaking english, he has been practicing that a lot because he will deliver his remarks to congress in english. >> although he has been known to get rid of the repaired remarks when he wants to just obviously talk more off the cuff in spanish. i'm assuming he doesn't use that approach before congress. >> i wouldn't think so. >> it is the spont nate of this pope that we will be watching for as he touches down on u.s. soil for the first time in his

life. it's the moments that drive his security forces crazy in which he just says, does and goes places that nobody can anticipate. >> we will expect at any moment he will be coming down that gangplank. >> bill, he ascended to the papacy on march 13, 2013 and he is the 2676th roman catholic pontiff. a long line going back to st. peter. >> i learned the other day i was astounded to learn that no pope had ever visited the united states until 1965 when pope paul vi came to the united states, not just the united states but the western hemisphere. >> and on that point as i understand prior to his predecessor it was not actually the -- it was not common for the president to meet the pope at andrews air force base, but after that precedent has been set president obama holding up that standard today. >> we know the relationship they

have developed and we know the impact it has had and it's no coincidence that the pope went to cuba first and spent really the most time there when he was instrumental in the thaw and sending the embargoes that the united states has imposed on cuba for more than 50 years. there you saw the pope's meeting with fidel castro, a very poignant moment at that point, castro now is frail and in a wheelchair but yet he was there to be able to meet with the pope. >> mary thompson on that note many were disappointed that some of the dis depends weren't able to be more involved and more high profile in the pope's visit to cuba. the days went by and really nothing came of it. that seems to still be a big area of disappointment. >> kelly, we just got in from nbc news. on the plane to the united states from cuba the pope took seven questions and one of those

questions was why he didn't meet privately with the cuban dissidents and he said because he has no private audience with anyone, that there were many requests. he also made a comment about his meeting with fidel castro that he called very informal, they talked a lot about the environment as fidel castro is interested in ecology and they talked about the papal and psych click cal and he says when he comes to the u.s. he doesn't plan to bring up any talk of the u.s. embargo of cuba during his speech to congress. the vatican has historically been against embargoes. when they asked him whether or not he wanted to speak english or was looking forward to speaking english he said, no, he said english is not my forte. there you can see the president and his granddaughters and wife approaching the plane and president obama and there is obama and their two daughters ahead of them. >> of course, we know the obamas are protestant but the bidens are cath limb.

vice president biden a devout catholic with a rosary in his pocket. >> and a pro choice one, such as nancy pelosi. if they had a mass could have been an interesting one for the pope to ton front. >> here he comes. pope francis getting ready to set foot for the first time in his life in the united states. a man of charisma, humility but great popularity as a result.

>> i guess the crowd they were yelling francisco to welcome the pope. >> welcome to the u.s.a. welcome to the u.s.a. >> what a moment that must be for vice president biden to be able to introduce him to his famil family. >> the highest proportion by the way of cabinet members are catholic at any time that we have had under recent presidents. also congress, i think 31% catholic, that's one of the highest numbers we have seen certainly relative to the u.s. population which is 22% catholi catholic. >> tomorrow will be the formal meeting between the president and the pope at the white house. he will get a formal greeting at

that time. a few festivities today but tomorrow is a busy day for him in washington in and around the city before he makes his way to new york on thursday. and thursday evening he will be here in the city celebrating mass at st. patrick's cathedral. he will be speaking at st. patrick's cathedral, it won't be a formal mass, but friday a very busy day, he will be processing down central park, going to the 9/11 memorial and conducting -- participating in an interfaith mass, service, if you will, and then a huge mass conducted at madison square garden. he has a very busy time before he makes his way on to philadelphia. >> david dars is with us, david, what did you think about that remark we heard from mary thompson where the pope said he doesn't have a private audience with anyone and explaining why he didn't meet with those cuban dissidents. >> i think he tried to keep politics and the papacy and his

universal message as he is basically looking at the people of this world, at the planet of the world itself and these are values that the united states is very steeped in. so i think this resonates. i think there is an inn clue since to his papacy as you know. we also -- building on bill's comment earlier, we had two visits to st. patrick's cathedral by john paul ii and one by benedict the 16th. don't forget he remains pope francis, named after francis of a sissy, he was never pope francis i until there is a pope francis ii. >> good point. pope meeting with some of the young. he has specifically asked to be able to meet with young people while he is in the united states here and that will of course be able to happen. >> our mary thompson reporting as well for us following the

pope this week. mary, what could we know about his accommodations tonight. >> he will be staying at the papal nuncia tonight and will be doing so as well in new york city. there you can see four washington, d.c. school children ever third, fourth, fifth and seventh grader greeting the pope. they were selected to greet the pope on his first trip to washington, d.c. he does have a packed schedule while he is here, barely a moment, he plans to take a rest in the middle of the day. he is 78 years old. while his health is good when he was younger he did have a respiratory illness which resulted in him having one of his lungs removed. he has said that he doesn't expect his papacy to be a long one in charge part because of his age but he has shown great energy and enthusiasm. he is a pope of firsts. as david was mentioning earlier he won't be known as bone francis i until a successor

choose that is name but he is the pope of social media, he is popular on twitter with over 23 million followers and he is not afraid to jump into the crowds and take a selfie. that has i think helped him to spread his message on a daily basis. he gets over 9,000 retweets whenever he actually tweets something out which he does, i follow him at what time upon tx, one or two messages every three or four days. there you can see the two of them walking out there, the president. >> the first visit by stating hope in seven years by the united states underway. a lot of preparation, a lot of excitement and now it happened. >> yes. by the way, he will be canonizing junipero serra, the first hispanic saint later tomorrow -- first hispanic american state. >> a student of the california education system father serra was a huge part of our curriculum as father junipero

sierra made his way up along the west coast forming a number of churches that still bear his name today. we're talking about hundreds of years ago. >> the early days of european certainly being there. >> so finally he will be made a saint while francis is here in the united states. >> so that is it. we will have more coverage as it continues, but for now the pope is in the united states and the festivities can begin. >> and they can, yeah, indeed. we will pick up with market coverage. >> i will leave you, i've overstayed my welcome. i will be back again today. >> keep it right here, we're back in two -- no, just keep it right here. >> why not? >> as we carry on and tell you exactly what did happen in markets today. you can't get off that easy. >> i will slip out quietly i the dow down 179 points, declines of more than 1% across all the major averages today. the s&p down 125, nasdaq down 72

points or 1.5%. joining today's panel we do have michael an tolly from yahoo finance with kate kelly and "fast money" trading steve grass so he. mic, what do you make of these markets? >> you know, limited damage right at the very end. it seemed as if yesterday was really kind of low volume, low energy bounce, we reversed it all today. i don't know if we're point to go any particular thing. i don't think it's fed hangover. i think europe is overowned, jurp was leading us down and that actually just caused selling across the board. >> we didn't point to anything in particular but we pointed to a lot of things. the vw scandal and its impact on the your markets, chinese slow down, commodities selloff. >> sort of a pointless market. there are a lot of different data points to look at. the general mentality is not a terribly optimistic one. i still think people feel that the u.s. is relatively stable and attractive compared to other parts of the world, but that doesn't mean they feel great about it and the fed dove i

wishness isn't necessarily helping. financials down, there was obviously some news on blankfein, but that may be an interest rate move as much as anything, energy continues to be troubled. also a broad since of gloom. >> there was a rally in the 30 year. are we coming up with excuses for this selloff. >> i was about to say give me a reason to buy a market instead of what's the reason that the market is selling off. you have all the reasons that everyone on the desk stated. who is the buyer on the dims right now? is it going to be company repurchases. they seem to be load td to the gills, that's been a story that mike know all too well. >> what about people getting out of the bond markets? the journal had a big feature talking about how much the bond market has changed, talk being its volatility and some of the risks that might be involved in it, do you think people might want start to say maybe the stock market is a better place for me.

>> i will push back and say if i get out of the bond market to avoid the risk am i getting into the equity market where risk is ripe at this point. >> when we are on the cusp of a rate hike and possibility of greater yields. that would surprise me if people timed into n. that way. >> it would be ironic if volkswagen starts to take down europe when you look at what it means to germany and germany has been a sweet spot in urine europe, how ironic would it be that we're fighting off or trying to battle china but now the tipping point could be volkswagen. >> one in seven jobs in germany are tied to the auto industry. >> you could say it's overstated in terms of where is it ultimately leads the country but the economic impact is real, near perhaps the top of an auto cycle. >>. >> if we don't think this investigation is not going to trickle through every other automobile company i think we have e. we're all naive. how many jobs, how much money and how much due diligence is it going to require on our economy. >> i was talking to a hedge fund

manager before the show and this person said first of all i think we're going to retest our august lows in the s&ps, 1865 or so, number two i said what do you like if anything a stock or sector and he said i like the vix. so that's telling. >> yeah. >> it's telling and i actually think that that's probably something close to to a consensus. that's the good news. i feel like retest is everywhere, it's actually pretty close, 4% down from here. really not that far. everything that's happened between that 1865 and the recent highs it's noise. it's a lot of knocking around this range. the economy seems stable, the market is not. >> the big very question to your point do we hold those levels? i can deal with 1867, i can deal with october 2014, 1820. the big test is do you buy them there as this market has shown us we have consistently bought them there or trade down -- >> you have a conviction at that point. >> are there any hope indicators, steve? >> if there are i'm without them right now. >> unfortunately the one that's

making the rounds in the last two papal visits 1999 and 2008, at least in the vicinity. 1999 you had a lot of fun and time to get out. >> the papal hat. thanks very much. >> david, mary and bill thank you so much. much more of our market selloff coverage still to come right here. we have former treasury secretary hank paulson weighing in exclusively on china's committee and the ripple effect that's having on our market. lots more to come from the former treasury secretary right here on cnbc, first in business worldwide. cialis for daily use, is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach,

delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. ...of fixodent plus adhesives. they help your denture hold strong more like natural teeth. and you can eat even tough food. fixodent. strong more like natural teeth. here on cnbc, first in business

former treasury secretary right china's president also arriving in the u.s. today and meeting with some of our nation's top ceos at a round stable hosted by former treasury secretary hank paulson. our michelle caruso-cabrera just spoke exclusively with paulson and joins with us that interview now. michelle. >> reporter: yes, the president of the china's visit with american ceos is widely being seen as his attempts to try to influence the american business community. hank paulson says just the opposite. he says he wants the u.s. leaders to influence the chinese president and convince him to

commit to market reforms. >> this is a very important meeting for the ceos that are there, both the u.s. and the chinese ceos because there are questions in each of our economies and of course business leaders have really provided the balance for the u.s. china relationship for many years and china is very important to this multi-national companies and their voices haven't been quite as loud in support of u.s. china relations because the business climate is becoming more difficult, they have concerns not just about the economy, but concerns about the pace of reform in opening up and concerns about whether some of these new laws and regulations

are -- which are limiting access, they have concerns about the intent behind that. so what they're really interested in hearing is a message that this is about reform and opening up to competition. >> just this morning, in fact, your successor jack lew published an op sed where he raised those concerns, the way they recently handled the currency, its efforts to prop up the stock market, whether it's a halfhearted reform of state owned enterprises. he raise ascii question. is president xi committed to market reform, deep market reforms in china or not? what do you think? >> i think the president xi is very serious about market reforms. he inherited an economy where reforms are stalled. he laid out a very expansive blueprint for the economy where the market was going to be

decisive, but sometimes people make the mistake of assuming that in a country like china with an authoritarian government, where a leader has so much control in terms of political control that it's going to be easy to get things done because in china there has always been policy plurality, a lot of different views on policy and there are strong vested interests that are going to be difficult to overcome. so i think it's going to -- it's going to take a while. and as you alluded, the key thing it is competition. that is what is very much in china's interests because they have an economic model which has run out of steam and they need to place much more reliance on

domestic led growth, dominic consumption, higher value added manufacturing, services and how do you get that? the way you get that is opening up sectors in the economy that have been close to the private sector to private sector competition. and that's how you get, you know, the kinds of efficiencies you need and that's how you get the kind of job growth they are going to need. the only way to have real competition that's going to benefit the chinese economy is to open up to foreign tomp r competition. so you have the best businesses and the most efficient businesses competing there. that is the key. that is what the u.s. businesses will be press for. they will be making that case. one other thing i think is

interesting, one lever for that would be a bilateral investment treaty between our two countries. and this is something that paulson institute got 100 ceos to actually sign letters expressing support for that because what you often find find is the reformers in china use an agreement like that to open up competition just like they did at the time of the wto. so again, i think this is all about competition and opening up opportunities for u.s. and other foreign companies to compete, which i think is going to be very necessary for china if they are going to make the transition they need to make as they reboot their economy.

>> president obama recently raised the possibility of sanctions against china related to cyber he is mean nash. if you were still at the white house what advice would you give and what advice would you give to china? >> cyber security is a very big issue. i would say when you look at our economic relations the most troublesome and -- economic issue is commercial cyber theft. that puts -- and i think it's the biggest risk when we look at u.s. china relations. ultimately i think it's just very, very important for our two countries to come together because we need a global regime and global economic regime that's going to be able to be enforceable and to curb and to

punish cybertheft. i think that can only be done on a multi-lateral basis. it's going to be a lot easier to do that if we're working with china. ultimately china has a need to do something here, too, because i don't see how the global economic system can function if you have rampant cybertheft. >> reporter: so before he meets with american ceos tomorrow president xi jinping tonight is going to make a policy speech in seattle and that will likely give us some sense of what he hopes to accomplish in this strip and set a tone for the entire strip, kelly. back to you. >> michelle, what's so interesting is the tone of all of this in contrast to what they seemed to be suggesting in the journal the other day going so far as so discuss whether this was an act of arrogance on the part of xi jinping to summon all these u.s. tech executives for them to have what is calledalli.

so i guess the question is are you hearing the line from hank paulson that we might expect from washington when the reality where you are on the ground is much more about these tech companies including apple want to go preserve their huge market shares in china? >> sorks kelly, great question. there's two meetings tomorrow, there's an internet meeting which we have heard very little information about and very little confirmation about who is attending and then this one that hank paulson was referring to orchestrated by the paulson institute where we have seen a public list of who is going to be there and what they are going to be talk being and that first meeting is the one that is absolutely considered contentious where the really thorny question of an american ceo involved in technology has to ask himself so i want to follow all these rules that china wants to impose on me in exchange for market access and 1.4 billion people and that is certainly, i think, in the

diplomatic world they will discuss openly and frankly which usually means it's pretty thorny, but that will be topic one likely at that internet meeting tomorrow. >> thank you for clarifying that. on the subject of the interview that you had with hank paulson, michelle, what stood out most to you about kind of the explicit and implicit message he had there? >> that he was -- first i was surprised when he used the word authoritari authoritarian, which, yes, they are an authoritarian government but we get so used to everyone being to politic around china to say what it is sometimes isn't very obvious and to say very frankly that he wanted u.s. ceos to ask about all of these concerns that they have right now about the state of the chinese economy, about voicing their concerns about being able to enter the market and making sure that it opens up and engagement with them so that way they continue to grow. >> michelle, thank you again for bringing us that interview,

michelle caruso-cabrera speaking with foreigner treasury secretary hank paulson today. breaking news on hillary clinton. eamon javers what can you tell us? >> hillary clinton speaking to a group in iowa just now said for the first time that she opposes the keystone pipeline deal. she had said that she was waiting for the obama administration to make a decision about where it stands. the obama administration has said it's up to the state department. there is a long and involved process for making a decision. hillary clinton had previously said that she was going to wait for that decision before she made her announcement. today she says she feels she has a responsibility to voters to let them know where she stands on this issue. obviously she's also getting a little bit politically boxed in by the bernie sanders campaign. sanders having already come out and said that he opposes the keystone pipeline deal. hillary clinton today calling it a distraction from where we need to be on climate change and that discussion and said that she opposes that pipeline deal. obviously that's going to a distinction between her and republican candidates most of whom will be supporting this out on the campaign trail.

>> eamon, thank you very much. kate, what do you make of this? >> a couple interesting directions you could go with that news. for starters if you want to be a true environmentalist you have to oppose the pipeline but this is not a great hill to die on when it comes to the environmental issues in some the thinking sths not tear bee damaging to the environment, especially with some of the alterations that have been made over the year. the bigger issue may be economics which is this is key if they want to export crude and it seems like the obama administration is moving in that direction. >> it does team sooem that way. >> i wonder if the much bigger news could be opposing exporting crude. >> here you have a way to ease that sproechlts the last thing we need it so encourage more crude development in this country at the current prices. >> the current producers, exactly. up next, we will drill down on the industry dragging down the market. plus we will hear from a top

doctor on how sky high drug price right side impacting the medical community and patients. we're back in two. up next, we will drill down up next, we will drill down

excellent looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere. (vo) wit runs on optimism.un on? it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest... ...in this big, bold, beautiful world.

just as china's president arrived to the u.s. for a visit mining stocks were crushed over the concerns about the direction of china's economy. down close to 40% since january. bob pisani along with our panel joins us here at post 9. down another 3% today. >> this is one of those days where you woke up at 5:00 in the

morning and said why exactly are we down again? the asia development bank lowers its gdp for china into a 6 and credit suites comes out with a cheerful report race to the bottom, but, really, we're down on that? it's a series of death by a thousand cuts headlines and it seems like an excuse. we're going to get some manufacturing numbers from china tonight. the hope is that you get decent numbers, a little bit better chan expectation mauk you can staunch the bleeding. >> in august there was a six and a half year low. >> 47.5 we're looking at the number tonight. it's terrible. still not good. we are in the state where it's so bad that even like less bad is going to be better. so i'm still hanging all this on the earnings situation. we know the miners will be terrible, but if we can get reasonable commentary at least a little bit more expectations then i think the market will be okay. but if we get these companies in the next few weeks coming out

and saying -- i don't mean the miners, i mean i'm looking at general electric, i'm looking at some of the big names here, united technology, global industrials. >> i have to say i'm suspects of that general theme of we're worried again about china because the fed maybe knows something because they didn't do anything. to me the market is resuming doing what it was doing before which is testing exactly how bad it is in emerging markets and commodities and the related complex. we're waiting for bankruptcies, waiting for some bodies to float to the surface. it's not about demand today or tomorrow. >> the thing with china i think people's skepticism is fair. when we were talking about the president's visit i read that the wall street journal with him, the first since the markets issues of the summer, not terribly substantive. it's good that he took the questions. >> in writing. >> right, to stock market, the u.n. devaluation and a variety of other things but he was speak

nothing very general terms and basically said something that hank paulson's successor lloyd blankfein has said many time which is china may have a bad year it's not going to have a bad century yet people are starting to doubt the next one, two, five, ten years. >> remember the boom years they said china is paying for the next 50 years. he's trying to transform the economy for the next 50 years which means we might not like the growth mat earn immediately. >> what do we watch for tomorrow? >> the china report overnight and we see if we can get some bounce in the commodity stocks. just to beat up on the set they missed and opportunity because now we're sitting on still more months of massive uncertainty. i was on the wrong side of this. i argued for a one and done for six months, i was wrong. i still think it was a missed opportunity and that uncertainty weighs on the market. >> we will see you at 5:00 a.m. tomorrow again. time for a cnbc news update. let's get out to sue herrera.

>> he's here. as you saw just moments ago right here on cnbc the pope has arrived in washington, d.c. it is his first visit to the u.s. president obama, the first lady and the family were all there to meet him. he now begins a six-day whirlwind three-city tour. our mary thompson is going to be there every step of the way. france's highest court upheld a law that bans uber's car hailing service. it's another set back for uber which has faced regulatory issues in several countries. the company suspended the service in july after violent protest by taxi drivers. new york state's attorney general is part of ag's launching an investigation into volkswagen. right now his said the group's numbers in the handful but expected to grow. volkswagen admits it tamped erred with software in 11 mill cars. scary moments for a kayaker in california. caught on video the kayaker was

fishing off the shores of santa ba bra with a gopro. that's a almoster head shark. he said it took him 20 minutes to get the shark to swim away and that would really be quite frightening because that's a pretty big shark. that's it. back to you. >> still somehow captures it on video. >> he's lucky he didn't cap size the kayak. >> sue herrera, thank you so much. >> much more of a market selloff, coverage still to come here plus gopro one of the bright spots today. up next we will here from ceo nick woodman on criticism the company is a one trick bone. we didn't need a loan. we needed short-term funding. fast. our amex helped us fill the orders. just like that. you can't predict it, but you can be ready. another step on the journey.

will you be ready when growth presents itself. realize your buying power at open.com. selling 18 homes? easy. building them all in four and a half months? now that was a leap. i was calling in every favor i could, to track down enough lumber to get the job done. and i knew i could rely on american express to help me buy those building materials. there are always going to be unknowns. you just have to be ready for them. another step on the journey... will you be ready when growth presents itself? realize your buying power at open.com

gopro one of the few winners on wall street today, up more than 3% but the stock has been hammered this year down by about half. our josh lipton spoke with the chief execute of it i have gopro in san francisco. he joins us now with the details of that interview. josh. >> reporter: kelly, a one product wonder. that's what barons now calls gopro. when i caught up with the ceo nick woodman today he did not think that was a fair or

accurate criticism. >> you know, i've been hearing that for 13 years since i started gopro and i think that we've done a terrific job of growing an ecosystem of products that helped the world capture and share itself like never before. to say that we are a one trick poniy a short sighted. >> reporter: one other concern you will hear from some investors about gopro is the competition that company faces in this space, in this market, but when i asked woodman about that he clearly isn't worried. >> when sony goes on ad at best buy, for example, we sell more products because sony drives more customers into the store, but gopro being the brand leader when those customers come into the store and they see our merchandising they end up buying gopro. so having competitors like sony has actually helped us grow total reach and we haven't seen

our market share erode. >> reporter: now, gopro there's sometimes rumors about this company, kelly, as well that it could be an acquisition target, you will even here speculation that maybe apple could be interested. asking woodman about that he deflected that question and said to his knowledge apple isn't interested in produce ago gopro like device. he did have very nice things to say about that new gopro app on the apple watch. >> josh, meantime even after that criticism from barons had a hurt the stock sharply in the prior session we had sue herrera showing us that video of a kayaker depending off a hammerhead shark, no way could that video have existed without gopro. he's paddling for his life abld i believe to capture that on video. that wasn't shot with an iphone. >> reporter: yeah. what's interesting about the content when you talk to nick about that, woodman on stage took real offense, he was asked

to refer to the camera, somebody referred to it as an action camera device and he gets offended because, sure, there's images of sharks but what he wants you to think about is that camera as a life camera. it doesn't just capture video of sharks, he wants to you see kelly and bill and josh use that camera in all aspects of their life, out surfing, kayaking or with their friends and family. >> josh, thank you. great interview. our josh lipton on the west coast today. coming up, we will take you inside the startup incubator that helps disrupt the massive booming industry. do the wave of drug price be a hazard to our health? >> your health? >> opportunities aren't always obvious. sometimes they just drop in.

cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

. hillary clinton speaking out earlier on rising drug prices. ibb nasdaq biotech index reacting to her comments down another 1.5% today. for more on how drug pricing and increased cost inn packet consumers let's bring in dr. judith aberg. >> thanks for inviting me today. >> this is such an important issue n your personal experience how much are high drug costs affecting patient choose? >> i think this is really going to sear justly affect healthcare costs throughout the country. this is just one example this drug daraprim that went up by 5,000% affecting those really

that are in most need. this is daraprim is used to street an infection called tox owe plas mow sis which affects those in lower socioeconomic -- in particular patients with aids who rely on medicare, medicaid and ryan white funds through the state. i think it's going to potentially have serious consequences. >> dr. aberg it's kate kelly from cnbc. i'm sure yus when drug companies say, looks, we need to charge relatively high price toss fund our r & d budget, we are putting money into these new drugs and research and need to be able to have the funds to do so, does that ring hollow or how does that explain these prices? >> i think there's two sides to that. i think normally when a company puts in all the resources it does cost tens of millions of dollars to do this and it's true that to cover the costs of r & d

when new drugs are released that you will see these higher prices, but what we're seeing now is older medications that cost pennies and now all of a sudden hiked into the hundreds, even thousands of dollars and the justification being we need to invest. well, that means that you're actually affecting the people that are suffering from those conditions and saying that they are responsible for spag for the new their piece. i haven't seen that happen before. typically your venture capitalism, you get the funds, you invest, you develop it and here we're doing this, all right, we have a company now that's newly distributing this drug. i don't believe that they are really doing the actual research and development. so my question is how are they going to invest these additional funds? >> sure. >> doctor, mike santelli here. we've relied on a patchwork of

the insurance companies paying attention to what they will reimburse and medicare trying to negotiate some drug prices, i guess. is there a possibility of some more comprehensive way of approaching the issue question. and outside of my realm a bit of we don't want fixed price control per se but when you have all of a sudden an escalating cost like you do here, you need some justification as to why the costs are happening. and again i've yet to hear any rational reason for why this jump in this particular drug. >> and he said it was to cover profits and it had previously bun unprofitable, i think. but before we let you go, doctor, there are other executives who think this is a bad actor and a rather isolated one. what does your experience tell you about whether this is just kind of a -- perhaps a price increase gone too far but not necessarily an indictment of the

industry more broadly? >> yeah, no, i would like to -- i hoped that is the truth, that it is an isolated incident. but the reality is that we're seeing this happening with other pharmaceutical companies. we've seen a recent hike of other generic drugs and things for conditions that we may need like a regular -- irregular heart beats or types of infection. i don't think this is lone some. i'm concerned we're going down the wrong pathway here. >> thank you for joining us. for giving us more detail from the front lines. dr. judic aburg from mt. sinai hospital. >> thank you. raisers can be expensive but not if you are a member of the dollar shave club. how they are disrupting the business of men's grooming. keep it right here, we're back in two. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep it all digital.

we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberry apple scones smell about done. ahh, you're good. i like to bake. add new business services with at&t and get up to $500 in total savings.

this week our designing disruption series is looking at where the game changing companies on disruptor 50 list came from. julia boorstin joins us with a look at the origin with a familiar name to cable television viewers, dollar shave club. >> that is right. kelly, dollar shave club did what many thought was

impossible, taking on the behemoths and they have past schick and in july, three years after the company launched, it benefits from key help in the early days from one of its investors. within minutes of hearing mike dubin's pitch for dollar shave club, science inc. mike jones knew he wants to be involved. >> we put a large operational team around companies and provides them with capital and help them fund raise and stay involved and on the board for a long period of time in the business. >> great founders are great at a few things and they need a supporting cast and one thing science did for us early on is introduce us to our senior most executives very early on. >> as dollar shave groans, jones is staying involved as a member of the board. he's helping to execute the longer term goals, going beyond

low cost razors. >> for me it wasn't the type of products to bring to consumers but the way he wanted to interact with consumers. >> the larger grooming men is growing $6 billion plus and growing every year. it is culturally and technologically driven and guys are talking about the things they put on their hair and face and body to look good and smell good and feel good. >> one of the things we discussed as we put together the disruptor 50 list is the companies ability to achieve scale. thanks to the supporting cast that jones helped dube input in place early on, they are able to keep up demand for the core product and continuing to pursue the larger vision for what he wants the company to become. back over to you. >> julia, thank you. mike, feel free to talk about your grooming habits more these days. >> most men i know, have locked into one technology and stopped progressing with the industry. >> more on today's selloff and what to watch tomorrow. stay with us. we're back in two.

awe believe active management can protect capital long term. active management can tap global insights. active management can take calculated risks. active management can seek to outperform. because active investment management isn't reactive. it's active. that's the power of active management.

thanks for tuning in. what a tough day for the markets, down 179. still it could have been worse.

we'll see what tomorrow brings as we watch the china indicators overnight. thanks to mike and kate kelly for join us clear to close out "closing bell." "fast money" begins in moments with melissa lee and the gang. >> "fast money" starts right now. live from the nasdaq markets overlooking time square, i'm melissa lee. tonight on fast, the iphone 6s is here on set and has one interesting feature that could be a game-changer for the stock so we provide the test to show you how big of an impact it may have on the space. and plus hillary clinton speaking on rising drug prices moments ago. did she say anything to stop the bleeding in the biotech route. but first to the selloff on the street. stocks down 1% as investors weigh global growth and the fed decision. so how much worse is the selling going to get. what does it feelik