welcome you're watching world wide exchange. >> here are your headlines from around the world today. >> losses seen in asia after u.s. stocks slide back into correction territory. a global sell off weighing on equities. >> the bears are circling around glencore. some investment banks came out in it's defense calling this week's price action being overdub. >> the fallen commodity prices allows for a rate cut says india central bank chief. this after slashing interest

rates by a bigger than expected 50 basis points. >> two presidents, two messages. barrack balm ball and vladimir putin hold discussions agreeing that the syrian conflict needs to end but disagree over the rule of the assad government. >> let's remember how this started, assad reacted to peaceful protests by escalating repression and killing. >> we need to admit that nobody in reality is fighting islamic state. >> good morning, everyone. quick check on markets. stoxx europe 600 is lower and one sector bouncing back today is basic resources and that is really driven by glencore. the stock was up by more than

5%. we'll talk more about that during the trading session but too i want to show you what happened in the u.s. markets overnight. we saw sharp, sharp falls once again. the dow off by 1.9%. s&p 500 off by 2.5% and the nasdaq falling 3%. let's look at european markets and how they're doing. xetra dax off by 0.6%. one of the big determine nanlts of how the ftse is doing is glencore. we saw many of these markets in correction territory. the dow jones off by 2% falling 312 points. much of the damage coming from the pharma and bio tech space. the worst one day drop since 2011 and then other concerns weighing on investors minds. china and the commodity route. did it look any better in asia? it digit, did it? >> risk averse widespread in the

asian markets. if you look at the breerd stage, looking at three week lows broadly for the asian markets. nikkei 225 off by 4% and i wanted to highlight the indian markets because this was interesting. saw a very aggressive prove by the reserve bank of india to cut rates by 50 basis points for the main lending rate. the market was expecting 25 basis points so it was greeted with some positivity by the capital markets in india. the rupee was higher and stabilize it as well. the narrative is going to turn toward china. shanghai composite off. thursday we get some data from china. we get the factory activity numbers. the official number. the file reading from the private forecaster so we'll have to wait and see whether it

really confirm wls the slow down is worsening or not and to a certain degree we have the global growth concerns imnating from china but this will be a test more broadly. we're seeing a fight back today over here in europe and on the ftse and in the australian market. it's a very, very heavy impact. they're down very sharply. drag down the broader index as well. that's why we saw it in the australian market. >> thank you for that. great to have you here in london. good news coming out of germany. the german finance agency cut it's forecast for the country's borrowing need in the fourth quarter by 6 billion euros reflecting a better than expected budget decision. lower funding requirements the federal government and germany

intends to reduce it's volume by a total of 6 billion euros compared to the initial plans published in december 2014. i also want to show you what's happening with glencore shares. we talked so much about them over the last couple of months and weeks and yesterday after the 30% drop glencore bouncing back to the tune of 7.6%. in part because many brokers coming out this morning, citigroup, credit suisse saying the sell off is overdone. susan has more from the wall. >> let's take a look at glencore. for company and it's owners it's probably a september to forget with the s&p downgrading the u.k. listed group's outlook from stable to negative at the start of this month citing the impact of falling commodity prices on its balance sheet. glencore responding with the announcement of a $10 billion debt reduction plan but it wasn't enough to convince the ratings agencies or even

analysts. after a rally following a share placement in which the glencore chief picked up over $200 million worth of stock, the shares resume their downward trend and last week we also got a warning from goldman sachs as well. goldman sachs basically setting the shares below 100 for the first time ever. investec dealt another blow yesterday. there was little value for shareholders if low commodity prices continue to persist. >> well, the glencore bears may be circling but some analysts are waving the white flag. it is an overreaction maintaining it's buy rating. dan scott vice president of investment strategy and global research joins us in zurich and we're joined in studio by the head of global natural resources at investic. let me kick things off with you because the note or the quote

that really scared a lot of investors, equity investors was if major commodity prices remain at current levels nearly all could evaporate. were you surprised by the reaction you saw yesterday? >> we were surprised by the reaction but it hit a nerve with the market as a whole. that's the most important thing that high levels of debt are of great concern when commodity prices do what they're doing right now. we were very surprised to see that much of a reaction. the report was on all four majors but glencore was an extreme reaction. >> dan, come in here because you think that this analysis is fundamentally flawed. specifically on glencore. why? >> well let me just start off by saying i'd like to give jeremy credit there for saying their note was almost regarding practically all miners and you didn't see that reaction.

so for us, yesterday's pricing action has little to do with fundamentals and this idea that the equity value could be under a bear case scenario is nothing new. this is something that merrill lynch said before and goldman sachs said last week in building bear cased evaluations and even the most bearish has a target of about 120 a share. so it comes to the fact that no one is actually willing to put that into their estimates. the bear case scenario which is china going into a recession and that's what happened in yesterday's trading session. what you saw was very weak data out of china on industrial production and we had another repricing of macro risk and probably hedge funds were out there pushing around the share price. if we do the work, we're taking a look at liquidity of over 16 billion even if you don't take

into account rmi which is something the market doesn't like to value. and we still don't see an issue to maintain their credit ratings. so from the credit perspective we're saying investors can buy the shorter dated with the longer dated perhaps given the volatility they might want to hold off for now but on the shorter end we don't see much of an issue here for glencore. so of course you can build a bear case scenario and factor in those prices and then the whole market has an issue with debts but if you were really going to take a reasonable pricing assumption on copper which makes up 40% of glencore then pricing in spot commodity prices, keep in mind, copper has come down 50% since it's highs, pricing in commodity prices means you ended up with a fair value well over a pound, probably closer to 150 or so and our target is well over 2 pounds. >> i'm going to pick up on that.

we're pricing in a 50% probability of a default. in fact, some of these were demanding money up front, by the way, just to continue holding them. so let's talk about the high servicing cost for glencore. you know, s&p and moodys rates glencore two levels above junk status and reiterated they might consider cutting this month. you don't think that's going to be a problem for the balance sheet? >> yeah, so you say only 2. i say a whole 2. because two notches is quite a bit. the ratings agencies have lowered them from a negative to a stable on their triple b which is two notches above noninvestment grade. they usually give between 6 and 12 months minimum to address balance sheet concerns before they'll go through and cut an actual rating. so if they did, let's be negative here. let's present the ratings agencies did come and downgrade them by one notch they're still investment grade.

so they still have room to maneuver to try to lower costs and keep in mind if we're talking about an environment where commodity prices are going to go lower still which we don't believe, if we're in that environment usually costs also come down together with prices because there's a downward spiral on the cost curve. so it's not so easy to say the costs remain constant while prices for commodities go down. let's say they get downgraded two notches now we calculate this wouldn't actually have much of an impact on the cost of financing. it would put pressure on the trading division and they would have to shrink the trading division and that would drag on from them and contribution from the trading division and that's what the market is pricing in. yesterday's price action was dramatic. the equities are pricing in 0.3 times book at the moment. so tangible balance value of this company is quite a bit higher than the current valuation and these are distressed levels that we're taking a look at. one last thing i'd like to

adhere is even in the depth of the global financial crisis the cds was about a thousand points higher than we are right now but even then the company was still investment grade. it never lost it's investment grade ratings from the credit agencies. so we think that being downgraded a further two notches from here would have to be precipitated a dramatic further decline in commodity prices. >> jeremy, do you want to go through your entire investment note as well, like dan just did? >> our note speaks for itself. it's a real problem that the market is facing conditions in china since july have significantly worsened. this is bringing attention on to highly leveraged mining companies. >> but the argument from dan is he doesn't think copper prices are going down further? how can you be so sure? >> you can't be sure. we're seeing an unprecedented change in china that we have never ever seen before. the implications of that and the slow down in demand is going to

be significant going forward. >> a couple of brokers saying maybe glencore should be going private. at least they'll be away from the scrutiny of shareholders until commodity prices bounce back. do you have sympathy with that view? do you think it would be a good idea? >> i don't think it would be a good idea. a lot of other shareholders would have an issue with that given that it was floated at over 5 a share. but i'm sure that there are lots of options on the table for them right now. >> let me just ask you since that note that you issued yesterday, how did it feel when you saw that stock down some 30% on the basis of what you put out there in the market. did it feel good? master of the universe? >> it feels good. i felt shocked but obviously as i said before we think it just jived with what people are thinking right now. it hit a nerve and we can't avoid that. >> how many angry calls did you receive? >> i can't disclose that.

>> you can't disclose that. thank you so much for your time. really appreciate it. london head of global natural resources at investec and dan, thank you for laying out your buy case. appreciate your time. >> okay. so our question to you today as commodity stocks are getting slammed, are you joining the sellers or do you see a buying opportunity and maybe bottom fishing? you can e-mail u us worldwide@cnbc.com and find us on twitter @cnbcwex and we have personal handles on your screen as well. >> let's talk about other top stories. shares of valeant closed down after democrats called for the company to hand over documents related to massive price hikes on two hard drugs. on monday the ceo denied their business model is dependent on large price hikes. shortstop selling if i recalls had put out a note laying the blame for skyrocketing drug

prices directly on valeant. the firm says valean is a malignant tumor on the u.s. health care system that needs to be removed before it infects all other healthy companies. let's have a look at how they're fairing in german trade. down by 2%. >> we're coming off of a pretty dramatic sell off during the u.s. session. so we just got some headlines from goldman sachs cutting their s&p 500, 2015 eps forecast to $109 down from their initial estimates of 114. now as for 2016 forward eps forecast also seeing a cut here from gs down to $120 from $126 and we have been seeing some stickiness in the markets lower now for wall street for five straight sessions. now let's track volkswagen.

german media reporting that volkswagen's internal investigation will show the decision to use manipulation software in diesel engines was made back in 2005. so it shows the strategy was put in place by the engine development division of the company. let's get out to volkswagen headquaters. nancy joins us. nancy. >> hey, susan. well, as you remember yesterday the new ceo promised to act fast and decisively to get to the bottom of this scandal so we're starting to see that bear fruit here at headquaters and one of the big things is the reports brought online that we could see the first preliminary internal investigation. those results could come to the supervisory board tomorrow and one of the key findings was that a decision was made all the way back in 2005 in order to use the software that helps these engines cheat on emissions tests. one reason that's significant is

that would be before the former ceo was in his position. that may come into any questions we have over his criminal probe which came out just yesterday. we have been following the reaction in local media on that announcement that there's now a criminal investigation into the former ceo and as you can see here, the local newspaper here really documenting that case and they brought up that 10 residents within germany were among those that filed complaints with prosecutors and we heard from the office yesterday that prosecutors received a complaint from volkswagen although there wasn't a specific accused mentioned however this report in the newspaper says that they will take months to get to the bottom of that specific investigation tied to the former ceo. and if that takes hold we will be continuing to await more information saying overnight that they may give more indications of wlnlhether or no customers with these diesel cars

hope to give a retro fit and they hope to have an answer on the fix by october. >> head to cnbc.com where you can read more about how volkswagen has been cut from the dow jones sustainability index despite being ranked the most green auto maker earlier this month. >> and qatar's sovereign wealth fund could have lost $12 billion in the third quarter. the $250 billion fund counts glencore and the agriculture bank of china as top investors but also stands to lose the most from its volkswagen holding. the qatar investment authority is the top shareholder and biggest owner of preferred shares. >> we're going to go to break but coming up on the program, trading barbs, president obama refuses to crack a smile at dinner but does meet with vladimir putin for the first time in two years. the un general assembly coming

your way next. another cut, the rbi's assault on weak inflation continues as it slashes it's rate for the fourth time this year. we'll take a closer look at that next as well. and more transparency, more confusion. the latest batch of fed-speak. we'll have market participants more unsure than ever over the timing of a fed rate hike. that's also coming your way next.

♪ ♪ (charge music) you wouldn't hire an organist without hearing them first. charge! so why would you invest without checking brokercheck? check your broker with brokercheck.

san francisco fed president jon williams is renewing his call for a interest rate hike sometime later on this year. the central bank meets again in october and in december and speaking in los angeles williams says while he supported the fed's decision to hold off at its last meeting he's getting nervous about waiting much lo longer. >> if the economy is allowed to run hot or in a high pressure state too long then eventually people are likely to make decisions based on optimism and unrealistic assumptions as opposed to founded in good basic economics. >> williams says even a little bit more economic data could convince him to support a rate hike at the fed's next meeting although he says whether they begin raising in october or december isn't that big of a

concern. really? >> you have to wonder, what is a little bit more economic data? it's very subjective, isn't it? anyways, that view was in contract to charles evans that called for rates to remain near zero until next year. >> india has slashed interest rates for the fourth time this year and this time by a bigger than expected basis points so we have burn rates at 6.75%. the rbi spent the majority of 2015 battling record low inflation and alleges a season that increased pressure on the government to try to do something to stabilize the economy. let's talk through it. he joins us around the london desk today. only one out of 51 economists predicted this move from the rbi. were you surprised? >> i wouldn't really say

surprised because the rbi has been battling it's reputation of being behind the curve and with the recent move they're determined to shake that off. we have maintained that the central bank has room to cut policy rates and this is one of the main reasons why we expect cyclical recovery to gain momentum. >> but did you forecast this move? >> no, we don't make forecasts. we were looking for 25 to 50 basis points interest rate cuts in the fiscal year ending march 2016 but that was before the yuan devaluations which imposed a lot of competitive pressures on emerging markets. so we do see more potential for interest rate cuts but at this point in time we're holding on to the fact that the fact that probably the central bank is going to keep rates on hold. >> when i saw this cut this morning it was more so than tackling domestic issues because the domestic economy could have done with a 25 basis point cut.

so has he now acknowledged that yes china is a big problem. volatility in global markets, that is a big issue? >> in a way, yes and in a way, no. because, you know, clearly the global factors are having an implication on the economy but domestically growth, although it is picking up momentum it's still nothing to get really excited about and it seems like he likes the shock and awe approach. he has been used to do this. he has been doing this since becoming the central bank governor and it has paid off relatively well. >> but the problem is transit n transmission. how can you be sure they'll be passing this on to customers? >> that's right and that's a reason we do not expect a sharp pick up in growth. we actually see this coming to the numbers. the main problem at this point in time remains a very stressed banking sector which is in dire need of capital infusion and

unless and until you go all out and do that that will be limited. >> but the banks decide whether or not they want to pass on the interest rate cuts. i don't understand why front load these interest rate cuts right now because from what i see in the fiscal year, india is going to grow 7.4%. that's faster than what china is doing and it's been faster than the growth rates we've seen in recent years. >> that's right. but if you look at the domestic momentum, the central bank is cutting back, it was slashed back by 20 basis points or so. but it's confident it will meet it's inflation target by january 2016 and that gives it confidence to cut interest rates. >> okay. so we have 4.5 year lows. 6.75. does he has room to maneuver

this year? he's been busy. he's cut rates five times already. >> i expect interest rates to be on hold until march 2016 until there's more clarity on what the fed has in store for us. >> so he's a bit -- he's going to be on hold for a bit then. >> yeah. >> thank you so much. senior economist at lumbard street research. still to come, countdown to shutdown, republicans and democrats looking to strike a stop gap spending deal by midnight tomorrow. we'll get into the debate. that comes your way next.

>> two presidents, two messages. barrack obama and vladimir putin hold landmark discussions agreeing the syrian conflict

needs to end but disagree over the role of the assad government. >> let's remember how this started. assad reacted to peaceful protests by escalating repression and killing. >> we need to finally admit that apart from president assad's forces and fighters in syria, nobody in reality is fighting islamic state. looks like the ftse 100 continuing down. the german dax trying to find a bottom. seeing a advance coming back a little bit. similar losses for the ftse 100 and not a lot of reaction out there after five straight days of delines on wall street. now let's check in on fixed income but before we do that let's check in on the euro stoxx 50.

look at that. we're at zero so pretty much flat for the session. >> absolutely. we're not seeing too much movement in bond prices either. we're seeing a little bit of buying and the yields are dropping just a touch. ten year treasury yield is at just about 2%. the 10 year bund yield is at just below 60 basis points. we saw the rally on the back of the equity sell off and little clarity from the fed and the currency markets, once again we saw money flowing into the safe havens, into the yen and the swiss franks of this world. the aussie dollar still under pressure. euro dollar little change at 11239. >> we're looking at the worst quarter for the asia pacific benchmark since 2008. it's a buy buy for the gains this year. >> that's right. but having said that, a fair few people are saying this is where

you find the value, trading on 14 or 15 times earnings. it's still looking attractive if japan can overcome the policy issues. so the ball seems to be in the court of the bank of japan but you read between the lines of what they've been saying of trying to put the ball back in the court of mr. abe to invigorate the reforms. so that's the wildcard there. so we'll get insight on where we stand in terms of business confidence. elsewhere, look at this, the indian markets are the rank out performer today. they're up by 1%. the rupee jumped as well after we saw an aggressive move by the rbi. they cut the main lending rate. the repurchased rate by 50 basis points. the market was looking for 25. so that does tell you that the underlying growth still remains quite subdued. they're trying to put that back on track and consolidate growth.

the factor here that surprised me at least is that the governor is relatively relaxed about inflation on the food side later on down the tracks so that gives him more scope to cut interest rates. all right. let's move on. i wanted to highlight the greater china markets. pretty rough day. thursday is going to be highly, highly crucial for the china markets because we get the final reading from the private forecast, the factory activity numbers and we get the official number from beijing. the official number is more correlated toward state owned enterprises that have been the beneficiaries of policy support to all eyes on china on thursday. so that will be the data, the factory activity numbers will be a key test of confidence for the asian markets and in particular china. so the narrative i think is going to turn to china before we get the payrolls and the stronger dollar environment has

been hurting. >> let's take a look at the 4% sell off in japan. the nikkei has wiped out all of 2015 gains and we're joined now from the japanese capital. >> yes, tokyo stocks did plunge as investors concerns deepened over the chinese economy and the nikkei index finished down 4% hitting an 8 month low. over 95% of shares listed in the tokyo stock markets first division fell and china related shares took the worst blows with construction machinery maker sliding nearly 4%. they suffered 11% dive and the firm cut back the revenue forecast for the current business year on monday citing falls in demand for construction machinery in china and piling up steel inventory. another effected firm was the maratime shipping firm that filed for bankruptcy today and

rates slumped due to weak demand in china. shares have been halted but shares of the firm's largest shareholder dropped over 7%. economists say that the market gloom isn't likely to clear up soon and investors will hold their breath as well as their trading as they wait for china's pmi data. >> fed president williams is renewing his call. >> it's not just on wall street. there's a big divide inside the fed over when to raise interest rates. two voters making their opinions known today. fed president bill dudley says this year is still on the table for lift off. specifically he echos the fed

share in saying october is a live meaning. mainly international concerns like china he says that it fully fits into the fed's policy goals. maximum employment and price stability in the u.s. >> we let the u.s. economy overheat because of international developments that would be saying we're putting too much weight on international developments. we care about international developments not for themselves but how it effects our economic outlook. at the end of the day what we'll do is based on what we think is the right thing to do to achieve our dual mandate objectives. it's not going to be about the international outlook per say. >> chicago fed president charlie evans isn't so sure now is the time to raise rates. in fact he says a quote, later lift off is best for the economy to deal with potential challenges. the biggest reason to be in his words, extra patient, the fed isn't meeting it's 2% goal of inflation and evans doesn't see

the u.s. getting there as fast as some of his colleagues, quote, i believe it could well be by the middle of next year before the headwinds of lower energy prices and the stronger dollar disapate. translation, he may vote against an interest rate increase if the fed does go ahead with it this year. we'll get more clues on that later this week. janet yellen speaks again wednesday and so does bill duddy again and vice chairman speaks on friday. back to you. >> goldman sachs says it expects the fed to begin tightening in december. he cautioned against saying getting it over with is not a good enough reason. it expects growth for the company to shrink this year for the first time in five years. meantime the u.s. senate is expected to give final improvement to stop gap spending bill. that would prevent them from shutting down midnight on

wednesday after advancing all previous funding levels until december 11th. the house of representatives would have until midnight wednesday to pass the bill and send it to the president's desk. let's get to robert, chief economist at seb. thank you for coming in this morning. we're not going to see very damaging government shutdown like we saw two years ago. that would open the door to september tightening. >> it will increase probability but when you look at the possible shutdown for the us administration i think it's not a very dangerous situation because you have a much stronger economy compared to the previous situations that we have seen but looking at the fed, i don't think that the potential problems should be the trigger for the fed to change interest rates because i think they would like to raise interest rates. we're coming from the zero

interest rate level. when people say you cannot raise interest rates in the u.s. we're starting to treat it as a normal level. there's plenty of room to start indicating now that we have a strong u.s. economy. >> there's so many factors that members are looking at. we got a glimpse of that yesterday. mr. dudley and williams were sounding hawkish. it seems to me that with 16 out of 17 fed members due to speak over the next 10 days or so we're going to get so many conflicting messages. do you think the fed is as confused as we are? >> yes. i think many banks are very confused about the current situation. we tend to believe that the central banks around the global have all the answers of all the challenges that we're experiencing and that's not the case. i think it's interesting with the fed because today, especially when you have all of

this uncertainty, it's so important that central banks give a very clear message and when you listen to fed chairwoman, miss yellen, she's quite clear. she would like to raise interest rates and if you listen to stanley fisher they'll also give you a very clear answer because what they are saying right now, that is that they are -- they must believe in strong labor market and we have a strong labor market i will say in the u.s. and the second thing i have to believe in is that inflation now will start rising and they are saying that all of what we see happening right now they are just temporary factors. >> they didn't say that all along in 2015. are you pricing in a rate increase this year? and what does that mean when the rest of the world is cutting interest rates like india did today? >> that's a very interesting question. i think today monetary policy has been globalized. it's quite difficult for one big central bank to follow it's own

path. so if you believe that the ecb will do more and i think that if you look at the inflation numbers and tomorrow you will have the euro zone inflation outcome, and i think we're going to have deflation within the euro area so it's more likely that we're going to have more stimulus within the euro area. if you look at japan, they have problems. then of course it is difficult for one central bank like the fed to just continue to say that we will raise interest rates because you'll have impact on the currency. >> yeah. well, robert, thank you for your insights today. chief economist at the seb. let's talk about what's happening in new york with russian president vladimir putin and his u. s. counter part barrack obama having held their first formal discussions in two years at the un central assembly discussing the syrian crisis during a 90 minute long meeting. the leaders agreed on the need to bring the civil war to an end but they had different views on

whether president assad should remain in power. putin said the syrian government was the main force of battling isis in the region. >> it is an enormous mistake to refuse to cooperate with the syrian government and it's armed forces valfighting terrorism fa to face. we should finally acknowledged that no one but president assad's forces and malitia are truly fighting the islamic states and other terrorist organizations in syria. >> the u.s. president used his speech to refirm the united states stance on moscow in the aftermath of the conflict in ukraine. take a listen. >> consider russia's annexation of crimea and further aggression in eastern ukraine. america has few economic interests in ukraine. we recognize the deep and complex history between russia and ukraine.

but we cannot stand by when the sovereignty and territorial integrity of a nation is violated. if that happens without consequence in ukraine it could happen to any nation gathered here today. >> meantime, chinese president xi jinping and his counterpart also met on the sidelines of the un assembly. he said beijing was to prioritize it's coperiod operation in the wake of the nuclear deal. the iranian president said the nuclear deal was a, quote, brilliant example of victory over war and should harold a new era. on the subject of syria, he said they were heprepared to help brg about democracy in syria as well as yemen. >> still to come on the program, burger king is bobbling up it's competito competitors. the latest company the fast food giant is looking to acquire right after this short break.

welcome back. newly elected leader of the u.k. opposition party is expected to call for kinder politics and outline his economic plan as he

addressed the economic conference lalter on today. wilfred is live from the conference although it doesn't look like you're down at the conference in brighton. it looks like you went to the caribbean. >> well, william. we're on top of the conference center but a sunny day and great way to be covering the conference. i'm joined by the largest labor party donor outside of the unions. great to have you. let's talk more about john mcdonald yesterday. he made one clear message. businesses have to pay their fair share of and singled out amazon and that targeted antibusiness rhetoric. does that scare you? >> i don't think it does to be honest with you. these companies do pay very little tax in the u.k. but there is a big problem about getting

these corporations to pay more tax because of international treaties which make it very difficult for one country on its own to do much about them and there are things that might be done but they're tricky because they do reflect what's in place. >> what scares you. >> i thought it was very business friendly. more business friendly to be honest with you than might have been expected and to some extent this set the tone. you're going to get the same sort of approach by corbin this afternoon. one that's trying to pull the labor party back together again. it has been fractured over the last month or so but what's happening is the more moderate people realizing the situation has changed. they're realizing that they have got to pull toward the center to deal with the realities of the situati

situation. >> you talked in the past about arguing a weaker pound would be good for the country. they have been saying it benefits only the rich. what's your view on that? has he got that wrong? >> the whole issue around the cost space in the u. k., what needs to be done to get industry back and make the country more competitive is a big issue and i don't know whether corbin and mcdonald will take that on board but if they do want to get the economy to grow more quickly this would be the way to do it. get more investment into manufacturing and technology and improve the scale in this country. that might be an important economy of getting the economic growth which makes everything else achievable. >> my view is if we had free

trade and really governmental approach to all the things that need to be coordinated together most people in this country would want that but that's not really what is on offer and i am disappointed by what david cameron and george osborne asked for and i'm not sure that people will be satisfied with what he comes back with when this happens in two or three months time. >> you're the largest donor to the labor party after the european unions. will that continue under corbin's leadership? >> yes. very much. i'm very happy with that. >> great stuff. thank you for joining us. john mills there. chairman of jml. for now i'm going to enjoy the sun for a little bit and send it back to the studio. >> we're getting jealous here. thank you wilf. let's check in on how glencore stocks are doing. the stock is seeing quite a rebound from yesterday.

lost 30% in yesterday's trading session. recooping some of the losses today. glencore up by almost 11%. 75.76. a couple of brokers coming out and confirming their buy rate on the stock. some of them saying the sell off is completely overdone. >> let's talk about yahoo! moving with plans to spin off alibaba stake. earlier this month the irs declined to rule on whether this trarns action would be tax free. yahoo! aims to complete this spin off sometime in the fourth quarter and we did see yahoo! shares rising some 4% in after hours but it makes you think about yahoo! after spinning off it's baba stake. they own it by 15% in alibaba. it's worth about $22 billion which is just slightly less than yahoo!'s market gap but some people said the future after

baba does that make it a shell company from now on? >> it might. the share price has been driven up because of the enthusiasm for the alibaba stake and she is returning billions of dollars to shareholders through that spin off and investors are getting very impatient with her because of a lack of progress of turning around the struggling online ad business. she's been at the helm of the company for three years and people want to see results. so if we're now slapped with an period even bigger tax bill for that spin off, will that be another big problem, wouldn't it? >> it makes you wonder why they're going ahead despite the fact that they haven't gotten the okay now from the irs. but shares down 45% this year. alibaba isn't doing any better. it's down 45% as well. and in this environment where alibaba is now trade beg low it's ipo price you wonder if they're getting fair value for that 15% holding. >> yeah. that's the china impact. let's talk burgers. burger king's majority

shareholder is hoping to fry the competition after revealing it's in talks to acquire rival quick. quick, that is very french. they hate foreigners coming in and taking their stakes. >> it's very french but it's not the first time that the main shareholder is trying to sell the company. they tried to sell the brand five years ago but eventually cancelled the project because the offers were much below what it was expecting for the company. this acquisition would speed up the come back that burger king attempted in france two years ago. they left the market in 97 because of profitability here. it came back two years ago but until now the process was very slow limited extension. they have less than 50 restaurants in france and made a revenue of 100 million euros. quick used to be the challenger of mcdonald's but gradually lost

market shares and shareholders have been trying to sell the company for awhile. this time burger king could make a offer close to 730 million kw euros. that's exactly the price they paid for quick in 2006. if the deal goes through the restaurants will be gradually rebranded as burger king and quick would remain outside of france. mcdonald's would remain the largest fast food chain in france because it has 1,350 restaurants. about three times what burger king is going to have with this deal what is the appetite for burgers in france? in paris? do people look down on the item? >> there's a real trend. not for fast food chain but for

quality burger. there are very good burgers but not at the same price. >> if you come to paris i can take you to eat a delicious burger here. >> i like that. >> thank you stefen. >> all right. let's have a quick look at european markets. no burgers this time around. >> no burgers? >> not for the european markets but we stopped the global sell off. the ftse 100 is only down 22%. glencore is rallying up. they're up by roughly 11%. xetra dax with 0.4%. the cac 40 up by a third of 1%. basic resources driving the bounce back after yesterday's heavy losses. >> let's check in on u.s. futures given that we are looking at a session so far across europe and five straight days of declines. that's what we're trading off of on wall street. the implied open telling us that we're going to be a little bit higher. recovering a little bit.

the s&p 500 up 11 points so far and the nasdaq which was part of the biggest sell off yesterday up some 31 points when markets kick off. we're going to go to break and take a bit of a breather but billionaire investor carl icahn says there's danger ahead for the stock market. we'll tell you more after this. 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. things we build and it'sit doesn't even fly.zing we build it in classrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats and serving america's veterans. every day, thousands of boeing volunteers help make their communities the best they can be. building something better for all of us.

>> good tuesday morning everybody. welcome to worldwide exchange. >> these are your headlines from around the world. >> u.s. stocks sliding back into correction territory but europe turns green lead by a recovery in resources stocks. >> some investment banks come out in it's defense calling this week's price action overdone. >> pharma apologiant valeant is attacked for massive drug price hikes. drags the nasdant