just 29 minutes. that's how long the trading day lasted in china after another selling frenzy sees the blue chip index tumble 7% on wrrks uan weakness. >> and european stocks pummelled. the dax falls for the first time in three months with exposed stocks taking the brunt. >> brent sliding to an 11 year low reaching $33 not helped by the u.s. basic resources, the biggest sector loser in europe. >> cleaning on the way. marks and spencer says the chief

executive will retire in april as the u.s. retailer posts a grim performance in it's women's wear division. >> it is a sea of red across europe an hour into the trading session following jitters across the asian session after china mainland shares were halted less than 30 minutes into the trading session and a lot of the china exposed firms taking a sharp hit here. only four individual stocks at this hour the index off 3.5%. the dax bearing the brunt falling below that crucial 10,000 level off almost 4% at this stage. ftse 100 off 3%. this is as we see new lows for

brent and wti as well. it all comes after a short and not so sweet trading session in china. following a 7% slump and triggered circuit breakers for the second time this week. all of this after a fresh five year low. >> how do these actually work? a 5% drop in the index activates a 50 minute suspension and if the benchmark drops 7% trading is halted for the rest of the day. this morning, a quarter of an hour suspension began into the recessi recession. let's check in on markets in asia. a sea of red once again, sri? >> that's right. confidence is shot at the moment

so in the here and now what the authorities in beijing need to do is restore some calm and some stability in the stock market so arguably what you could see happening in term of the course of events in the near term is a repeat of what you saw in the aftermath of the worst of the route in the summer of 2015. we could see the pboc step up to the plate and announce policy support measures. whether it will have a longer term effect in restoring calm and stability in the market is anyone's guess but if you look at the events this has happened before. we have seen this before by the authorities. let me two through what i think is the negative feedback loop to the moment. it's the currency. we keep seeing clear

depreciation pressure on the chinese yuan. with that comes capital outflows. it's spooking the market. it seems to be imlying that there's a deeper malaise in the economy. that's what the markets are concerned about. there is a sense in many quarters of the moment that beijing needs to go back to the drawing board with this one and refine what they have done. hsbc says the mechanism will be refine and the spike in volatility will be temporary but we're already seeing the damage done around your way as well, the dax is off by about 3%. tomorrow is another day. are we going to see even more volatility? is this going to be a self-perpetuating cycle? we'll have to see. but do not rule out some action by the pboc to try to restore

some calm to the market come could as early as today. maybe into the weekend. >> thanks for that. the damage certainly being felt here in the european session. let's take a look at the name with the greatest exposure to china. we're sees burberry and swat. the auto sector taking a dip down. bmw off 5.3%. really concerned over what that will mean when it comes to demands over european goods. >> i want to add there's some concern about the trading update which we're expected to see next week and with the warm weather over the past couple of weeks or so there was a lot of thought

that sales of winter scarves weren't doing so well. who would buy a big scarf. >> that's true. >> joining us now from hong kong. peter, help us understand what is the pboc's big plan behind the sudden devaluations again. 0.5% lower. that's the biggest move since the big august devaluations. have they lost control over this? >> the question you're asking is the question everyone here is asking and the answer is we don't know. there's two theories. one that is the chinese authorities have decided that the best way out of their current predicament is to aggressively devalue the yuan. that's something that the authorities say they're not

doi doing. if you look at it on a trade rated basis rather than against the dollar it's flat over the last year. but the other theory is they're struggling to keep control of the currency in this shift going on since last august when they surprised the markets in a similar way to a more market based kind of exchange rate. you have this weird push and pull where on the one hand people have been asking for a more market driven yuan for sometime but at the same time, neither the chinese authorities nor the rest of the world want this kind of volatility. so the key point in what we're seeing today is neither of those explanations bode well for the rest of the market. either they're deliberately devaluing the yuan which means we're in a currency war or they're struggling to keep

control of the whole situation which makes people nervous about the direction of the chinese economy in the future. >> what happened in august was the support of the yuan on part of the pboc because they had a feeling that they fell too quickly and fell too hard. do you think they'll step back in and find they need to support the levels once again? >> i think, i mean, the pboc, it's clear they have been supporting the yuam. we have seen signs of what appears to be intervention on shore and offshore and then just in the last few minutes we had this data on the foreign exchange reserves which showed another $100 billion going out the door in december. now that's not all being spent on intervening to prop up the currency but there is intervention going on. it's a question of what the objective is here.

uncertainty is being felt around the world but also in china. one thing that happened since the beginning of the year is the beginning of the year is when ordinary chinese citizens are allowed to take their allocated 15,000 u.s. dollars and exchanges into 50,000 u.s. dollars and there's been a big rush of people using their allocation early in the new year but it's also been watched inside and the expectations of further depreciation are adding to the people trying to get their money out. >> we have the yuan intervention on the one hand and you have the stock market regulator intervening here as well. when you look at this reaction we have seen. trading halted the second time in a matter of days, do you think it is a matter of time before we see alteration to the

rules? >> it seems pretty clear. they aren't doing what they were supposed to do and they were never really going to work that well because a 5% intraday movement in the stock inseize is not that unusual and that triggered the first halt and obviously 7% basically that triggered the end of trading for the rest of the day. people are possibly paying too much attention to the stock market and they're reacting to what's going on with the currency and you have the circuit breaker that's supposed to calm people down but is exacerbating the problem. but it dears repeating the chinese stock market is really not that important for the overall economy and the big mystery in all of this is why the authorities are investing so much time and effort with real benefit of trying to prop up the

market. >> if you say that perhaps the regulators maybe will look to stabilize in the coming days do you see the reaction we're seeing and hearing in europe, especially with the firms of the high chinese exposure, do you think those names could be oversold as a result. >> i think that that's the lesson from last august, right? that the people were surprised and there was probably an overreaction and then things recovered. i think what we're seeing now is similar. beginning of the year jitters but i think really and certainly people no longer can believe that the chinese authorities really kind of are uniquely competent in this area. they're struggling with the competing policy objectives that they have at home but i think i don't think full on devaluations

is what's on the cards here but the question really is if they're not in control of the situation and they're going to keep making mistakes and doing silly things like putting in place these circuit breakers that don't work and not necessarily communicating very well with the rest of the world about what they're trying to do, i think people are still going to continue to be very nervous. >> seems like a repeat of august. thank you for that. looking at a note from nomura. even more down side pressure by the end of 2016. the yuan could fall to 1250. currently it's around the 1200 level and that's the level that we breached yesterday and 1200 seems to be the level where the central bank wants to prop up the currency.

nomura sees further weakening in the u.s. dollar. to around 150 overnight it already fell to the lowest level since september 2009 and last but not least the ringet is close to an 18 year low. just 1% away from that but also seeing further down side pressure for that currency pair. they expect it to hit 4.4 by the second quarter of 2016. but what i do want to point out is the fact that very few analysts believe the down side pressure for many of these a wr will be as furious as august. a lot of people say this is already priced in. meaning more devaluations in the yuan in 2016 and maybe to the tune of 6%. so it shouldn't be as many for many of the other asian currencies. >> when you look at oil prices

you have to wonder if there's upside there. when we're keeping an eye on what's going on we can't ignore the issue of the circuit breaker situation. we were just talking to peter and he pointed out that in fact these moves, the swings on the a-share market are not that unusual and in a note from hsbc they pointed out that a drop of over 5% which we have seen today, that this has happened over 15% of trading days throughout last year. we would have seen the circuit breakers trigger. so this does raise the question of why the rules were put in place in the first place knowing that this volatility can be the norm. so it raises the question. you have to wonder what they're thinking scratching their heads four days into the new year and the stock exchange halted twice so something has to give. >> and the yuan has depreciated 1.5% against the u.s. dollars.

so a lot of head scratching going on. you just mentioned oil. i want to come back to that, brent trading below or just at $33 barrel. 33.01. we're seeing down by 3.7%. those are lows not seen since april 2004, wti crude off by 4.3%. looks like carnage out there today. jim cramer spoke to boone pickens. the founder and chairman of pb capital and asked him where the oil price is in the commodity cycle. >> close to the bottom. i was just a year up. we'll be back 70 or 75 by the end of the year. if you go back and look at the long stretch we had in the 80s we were 20% oversupplied. today the world is using about

95 million barrels a day and we're oversupplied by a million barrels. so it's not going to take much to balance the market. >> he believes a likely turning point in the oil price could be attributed to saudi arabia's position to cut diplomatic ties with iran. he says the incident may mark the bottom. let's get back out to haddy gamble. >> good morning, it certainly raises bigger questions. pressure on the market yesterday brought the market down 3.3% and it's also down in trade today but a bigger question is going to be whether or not the action by the government here are going to have a further destabilizing impact on the region. if you look at the oil prices tod today. this aggressive foreign policy stance is something they can do

in the long-term with oil prices where they are and the bigger question on that is going to be whether or not over the long-term investors are going to begin to question whether it's really worth putting money into saudi arabia. the fundamentals are here. it's still a safe haven but if this region further destabilizes that could have a knock on effect to the big diversification plans that the kingdom has for going forward. >> thank you for that. sticking with oil, i want to show you what some of the oil stocks across europe are doing. we're seeing declines once again if many of the oil majors. bp up by 4.8% trending at 326. total off by 4%. similar declines for royal dutch shell. >> gold continues to catch aed by driven higher by flight to safety flows it's risen for a fifth straight session at a two month high.

nuclear uncertainty north korea and china market concerns and dovish fed minutes but gold continues to benefit from that currently at 1,097. very close to that 1100 level. what's coming up on the show. so much more to talk about with this global sell off underway but we're also looking at individual stocks here and the boss of marks and spencer is stepping down after almost six years at the helm. can the new ceo turn around the struggling division after a disapointing christmas? we'll discuss. and netflix sets it's tights on world domination. expanding to 130 new countries but one nation is missing out. can you guess which one? we'll tell you in a little bit. and shopping is still struggling. a major restructure in store for macy's as they get set to slash as many as 2,000 jobs. stay tuned for all the details. the flu virus hits big. with aches, chills,

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welcome back. he is retiring in april. steve rowe will replace him. now he says he always saw this as a five to six year job. >> looking back he began his career at heineken rising up to chief operating officer by 2005. the following year he took on the top job helping the struggling super market turn around. in may 2010 he moved to become the ceo at marks and spencer but it's been a tough time for m and s in the non-food division. this morning christmas trading update saw disappointing general merchandise sales. joining us on the phone is the senior food and retail analyst. tony what's the biggest surprise to you? the fact that he's stepping down or the fact that christmas was simply disappoint?

>> a surprise to be honest. the christmas trading figures from general merchandise have been talked about for a few weeks now and a lot of discou discounting and that's why it's sales are disappointing. so far as markets concerned there's been rumors that he was going to leave at some point fairly soon and so that wasn't a surprise either. his successor, there was a few internal candidates and steve is the strongest. >> is he actually the strongest? he lead the non-food division and that's why we saw major weakness in the christmas trading period. off some 5%. shouldn't they have gone for an out tps cider tony? >> well, that's a debatable

point. steve has only just taken over the general merchandise division. sold a product that would have been bought by people this season would have been bought by the previous guy in charge. so steve was previously in charge of the food division and that has been very successful during his period of management. >> tony, given steve's previous experience in the food division does this suggest to you that we'll see a greater focus on the food and perhaps the winding down of the merchandise we've seen struggling as well? >> that's a really big question. it touches on the key area in clothing retail which is channel switch from in store to online it saw it's online sales go up by 21% so stores will have been down a lot. online will have been up a lot and they have to consider

whether they need as much space and that will be the biggest issue facing them. >> if they do decide to use more of this space aimed at the food business what does this mean for the rest of the food grocery sector? we have a few getting ready to report next week. what is your out look on the broader sector there? >> there will be some internal realignment in space behind food and food services. so far as the impact of that on the food sector generally marks is pretty much at the top end of the middle market so it would put pressure on the top end. and some of those don't have top end anyways there's a massive readjustment going on at the moment within the food retail sector which is probably going to take five to ten years to

realign in my personal opinion so i wouldn't be looking for much good news until the whole capacity and pricing situation has resolved which ain't going to happen any time soon. >> what are you telling investors? just steer clear of the food retailer space overall or do you have some favorites? >> i'm a non-food retailer analyst so it would be presumptuous of me to tell them what they should be doing. but as far as m and s is concerned their current level of valuation is quite interesting and what they have demonstrated today is despite having weak sales figure they held it in the market. >> thank you so much for that tony shiret.

>> and keeping in the retail space, japanese clothing group fast retailing cut it's full year profit forecast to 110 billion yen. this after first quarter figures missed expectation. an 8.5% boost in sales was off by a 30% drop and the three months leading to november 30th. fast retailing blaming the results as we have seen from many other retailers on an unusually warm winter that hurt sales across asia and the united states. here we are. once again a major retailer blaming the weather but i dug in a bit more to the release. often we have seen the lower end but they also own theory and jay brand in the united states and, in fact, those more premium labels also took a hit. they fell short of expectations so this raises another issue we have been seeing more state side that aspiring luxury unit and how that's taking a hit as well. >> yeah. it's all going to be shaken up. meantime, macy's is set to cut

more than 200 jobs on the back of weak holiday sales. it will save the group $400 million. the group saw sales in department stores open for more than a year tumble by 4.7% during november and december leading it to cut it's earnings forecast for 2015 to $3.90 a share. >> well, persimmon logged a rise to just under 3 billion pounds. it boosted the top line for the country's second biggest house builder which said it built more home to help meet rising demand. >> and vonovia appeals to deutsche wohnen shareholders. they said they would cheerily benefit from the merger saying it would improve shareholders dividend prospects and reduce the dependence on the real estate market. they say it undervalues the company. shares up 3.7%.

>> coming up, we'll be taking a closer look at that sharp drop in oil prices trading at lows for brent not seen in 11 years. we'll have much more after the short break.

>> welcome to street signs. >> these are your headlines. >> just 29 minutes. that's how long the trading day lasted in china after another selling frenzy sees it tumble 7% on weakness. >> european stocks getting pummelled. the dax falling for the first time in three months while u.s. futures are indicating a 400 point drop on the dow. >> brent slides to a fresh 11 year low reaching 33 dollars not helped by rising production in the u.s. basic resources the biggest sector loser in europe.

>> spring cleaning, marks and spencer says mark bolland will retire in april after posting a grim performance in the women's wear division. >> welcome back to street signs and as you can see the global sell off continuing here in europe. we can take a look at how u.s. futures are called to open. we're looking at another sharp sell off state side with the dow jones lower by 400 points. this after all three major indices closed lower. it's worst performance for the first three days since 2008 and we're seeing global sentiment hit by concerns over china for the second day. just this new year we saw china mainland shares halted after hitting the new system. let's take a look at the markets here one by one. ftse 100 off by 2.8%. no surprise, basic resources weighing on the u.s. market. also this continuing drop in oil

prices hurting energy stocks as well and the fste mib off. >> the chinese market set a new record today for the shortest trading day in it's 25 day history. it lasted 30 minutes before the circuit breaker was triggered for a second time this week and markets were halted for the rest of the trading day. the csi 300, the benchmark for the largest companies slipped 5%. 12 minutes after the market opened and triggered a 15 minute cooling period. it then fell further to 7% and then that suspended trade for the rest of the day. the pboc priced the currency a half a percent weaker and a new five year low. it was a big drag around the region and equities were not

spared hitting fresh 2.5 year lows. another overhang is china sell banded to lapse tomorrow. they issued new rules limiting major shareholders to sell only 1% of major selled capital in three months. they also have to disclose them 15 days in advance. they're aimed at preventing concentrated share reduction and stabilizing market expectations. the regulators on monday already acknowledged that the mechanism needs to be further improved. back to you. >> let's also take a look at the bond markets and we're seeing more flight to safety there. all the yields coming under pressure. let's show you the ten year yields because that's a better reflection of the safe haven years. the ten year treasury note yield at 2.12%. the 10 year bund yield at 48 basis points so the core bonds really getting a nice bid today.

>> overnight we saw brent dropping to 33 and it's back above that level at 33-31 but still off 2.72%. wti crude not fairing any better. in fact, it's at 32.90. so these are multiyear lows for the oil prices. joining us now is the oil analyst at barclays. is it fair to say that they're just a casualty of the risk off sentiment rather than anything that has to do with fundamentals? >> it's a combination of both. it's a perfect storm for oil at the moment. as you mentioned, the macro side is weighing on oil but the physical side as well. there's unsold barrels in west africa and crude oil barrels are struggling to sell and in the middle east it's been very difficult to find buyers for them at the moment. so it's a combination of factors that's driving prices lower at

the moment. >> a lot of the concerns stemming from the growth concerns around china but a lot of people pointed out in the last couple of months or so that the market misunderstands the demand picture coming out of china because that's incredibly robust. do you think that we'll see a big demand dop orop off in chin next year? >> so you're right when you say chinese oil demand is relative to the state of the economy. however the latest data point that we got just a few days ago which showed that china's latest demand data, that actually shows the first year on year decline and a fairly sharp one too and that's is what is sort of feeding into market balances right now. we had a few months of chinese oil data and now we're starting to see the weakness. that's weighing on the con plex. it is too early to say if the weakness will spread to the

other side or products in china. they have been growing at double digit growth rates but diesel is really weighing on the complex and that's having an effect at a time when the northern hems fierce is having a very mild winter. so a combination of weak demand and supply is not adjusting as quickly as the market wants to and that's where we're seeing the pressure coming from. >> we have been following the sharp depreciation in the yuan today and it's not just china helping to drive across southeast asia and have to wonder if that further impacts demand because when we see oil in dollars is that going to impact demand from the countries facing lower currencies? >> yes. so the em side of things, one of the biggest fears zbicis given the currencies depreciated it will have a marginal impact given a lot of the refineries do

need to source crude barrels that are priced in terms of dollars. however, for china, given the sail with which prices have fallen and given that it's a buyer's market, the discounts are still there so the steeper discounts that they can bargain for, that can offset to some extent the currency weakness that you are seeing at the moment. so in a way they're shielded because of the fact that it's a buyer's market now. there's a lot of crude barrels in the middle east still trying to clear it's way. >> we saw that evident earlier this week. is that a trend that you expect to continue or at some point do they have to stop reducing their prices given that we're seeing their public finances taking a hit here. >> the point is interesting. what they're doing is with asia they're sort of adjusting their prices because they know that refining margins in asia are

fairly attractive relative to the rest of the world so they don't want the refineries in asia to get the big chunk of the profits. that's where they have adjusted it in that manner. to europe they have been given steeper discounts and this is where the iran angle comes into play. so they're trying to push their crude to the atlantic as well as trying to maintain market share in asia. i would say give it another three or four months. we would see more competitive pricing come through as saudi arabia continues to state that they will meet additional demand requirements. and asia is where that additional demand requirement will come and russia as well is focussing on asia at the moment. competitive discounts are likely to stay. >> if we don't see that stabilization coming out of asia, will we see it when it

comes to oil prices too? not really a recovery in 2016? >> i think in terms of demand in asia, things are still fairly strong. so we still grow by 1.8 and it's just a small moderation of that demand growth number we're seeing. it's about becoming 1.2 million barrels a day. but let's get into the summer season. that's when the gasoline side of things starts to pick up and the demand growth from that side of things will still help give the balances a bit of a push. it's the supply side that needs to adjust and possibly where prices are at the moment we'll stop seeing them. it's tading at $19 barrel when

their producers have a break even about $40 barrel. we'll start to see it. it's just us now trying to see where the pain threshold is. >> thank you for those insights. oil analyst at barclays. nancy. >> well, carolyn, so many factors for investors to digest yesterday. not the least of which with minutes for the fed and faultlines below the surface which sees the world economy growing 2.9% this year. that's up from 2.4% last year but cautions that 2016 is already shaping up to be, quote, risky. the agency says the up tick in growth depends on economies like the u.s. and eu but warns they face an increasingly fragile outlook. >> meantime the u.s. state department has confirmed north korea tested a nuclear device on wednesday however the white house disputed the claim that they detonated a hydrogen bomb saying the initial analysis is

not consistent with the claim. they're set to deploy u.s. strategic assets according to a south korean military official. >> as is touched from last month's meeting the decision to raise rates for the first time in seven years was unanimous but it was a close call for some members. steve filed this report. >> members from the federal meeting showed that all fed members agreed that the labor market and inflation data had shown that the committee's criteria for hiking rates had been satisfied. all members also agreed that future rate hikes would be gradual. however for some members of the committee that rate hike was actually a close call and they say they're going to want additional proof that inflation is moving up toward 2% before they hike again. the fed gave four reasons why rate hikes would be gradual. they include the idea that the inflation outlook is uncertain. second it allowed the fed to assess inflation as they go. third, the neutral rate or the

rate where unploiemployment are balance wd where the fed wants to be, and finally it's harder to fight deflation so it's going to air on the side of hiking rates more gradually rather than more quickly. fed vice chair stan fisher asked about the median forecast if there would be four rate hikes this year and here's how we responded. >> those numbers are in the ballpark. the reason we meet 8 times a year is because things happen and as they happen you want to adjust your policy. otherwise we could meet in january and close down shop until a year later but we have to react. >> he ultimately saw u.s. economic strength this year and in the minutes fed officials said that they expect global risks to recede and even improve this year when it comes to global economies. however the drag on u.s. net exports from a stronger dollar is expected to continue for

sometime. there was further dollar depreciation along with greater difficulties from china. lower oil prices spring better than expected consumer spending. most market observers think the fed is going to cause in january and possibly consider the issue again in march if the fourth quarter weakness with gdp were to accelerate and give growth closer to 2%. >> roughly 15 minutes to go until we see the start of an all brand new worldwide exchange. wilfred frost joins us from cnbc headquaters. fomc minutes will be front and center for you guys too. >> they certainly will. good morning to you. it's not all brand new. it's show number four now. certainly still the first week and we're loving it over here. just missing you guys. as you said it the fed minutes

will be important today but they weren't that surprising yesterday. yesterday comments there said some of the members were a close call but we knew it was a close call. otherwise they would have hiked already. the real news was from mr. fisher pointing to the fact that the expectations are too low. i do think that's pretty interesting because why hasn't the u.s. dollar in the face of that and in the face of the global uncertainty reacted more this week? . quite a lot of strong dollar expectations are priced in and it hasn't acted as the world's safe haven this week. the yen, the currency of choice for that and the yen is up some 4% against a lot of asian currencies this week putting a lot of pressure on the region there and of course currency has been front and center for asia. that's the focus today. despite the fed and stock stories. international events are leading markets all of this week and one thing just to note as well, yesterday, even though again it was china and korea and the

middle east leading markets we did see u.s. markets sell off more than their asian counter parts. hong kong and gentleman upon down 1% and the u.s. off more than that and investors will be hoping that isn't the case today when we see the size of moves you have been discussing so far internationally. we'll be focussing on china and what that means for the u.s. a few other stock stories like apple and the leadership changes at morgan stanley. we'll touch on that too. coming up in 15 minutes time. >> thank you so much for that. futures for the u.s. not looking too pretty. >> hopefully we could see reversals today but things look to be getting worse if you look at the dow jones. u.s. futures are pointing to an open down more than 400 point with the s&p 500 look at an open of off nearly 50 points and despite the sharp sell offs in yesterday's trade there were individual stock mooufrs going to the upside. netflix one of them. they announced they launched in

more than 130 countries. the unexpectedly quick expansion means the streaming service is available across most of the globe as the company looks to kounlter slowing growth in the united states but one notable market is still missing. that being china. where the ceo says netflix is patiently exploring it's options. now shares rallied near 10% in the regular session. of course one of the top movers in 2015. >> the consumer electronics show continues in vegas with plenty of gadgets on display from the top tech companies. the latest innovations in vegas where drones are taking center stage. >> intel's ceo kicked things off with a new drone that's light, portable and small enough to fit in a backpack. it will cost around $2,000 and

intel is not alone. nearly 30 drone companies are here demonstrating the latest break throughs for unmanned vehicles. a leader in the drone space unveiled it's newest consumer drone called the disco. fully automated and fast. this drone can fly up to 50 miles per hour. the ceo says only more growth for the industry ahead. >> the drone market is dominated by two companies dgi and parrot. so the business is growing a lot. we will see more competition but it's a place where you can be very creative. >> beyond drones plenty of start ups are hoping to capitalize on smartphone technology. the newly launched outdoor security camera features facial recognition and can detect when cars are animals are moving outside of your home.

>> you have smaller start up companies. you 20 or 25-year-old engineers fresh out of university that are already able to generate this ground breaking technology and that we're able to bring it to market at a really consumer accessible price point. >> but these companies face a skeptical consumer. nearly 50% of respondents cited security and privacy concerns as a barrier to buying an internet connected device. finally the wearables market is set to explode. from 76 million units shipped last year to more than 170 million by 2019 according to idc. under armour's new head phones measure your heart rate while you run while it's smart sneakers measure distance or even track their own life span. about 450 miles until users need a new pair. >> so which wearable will be the next big hit with consumers? it could be from a start upright here at ces.

for cnbc. i'm josh lipton in lass have ve >> love him or hate him. donald trump is always sure to provoke some kind of reaction and this time he is ruffling feathers in scottland. find out why after this short break.

welcome back to the show. you're looking at live pictures of the french president giving his speech at the police headquaters in paris on the anniversary of the charlie hebdo terror attack. >> other top stories moving this morning. transcanada sues over president obama's rejection of the pipeline. they also plan to seek $15

billion in damages. they voted to repeal the affordable care act for the 62nd time. however this is the first time it made it to his desk forcing him to veto the bill. >> and the republican presidential candidate donald trump threatened to hold back 700 million pounds of investment in scotland if he's banned from entering the u.k. more than half a million people backed a petition to ban trump after the candidate called for a temporary ban on muslims entering the u.s. that triggering a debate in parliament later this month. >> and star wars the force awakens has already become the highest grossing movie of all time in the united states. the movie needed just 20 days to overtake the 760 million time lifetime gross record of former breaker avatar. >> and if you're long markets it's a pretty ugly day for you.

>> we're expecting the dow to drop by almost 400 points. we're still expecting the dow jones to open to the tune of 370 points. seen off by 170 points and the s&p 500 could fall by 47. this is after we hit three month lows for u.s. markets yesterday. all major three indices falling quite hard on the back of china concerns as well and it's all about china again today after that surprise depreciation of the currency once again and we're also feeling the effect in europe. the xetra dax off by 3.5% falling back below the 10,000 level for the first time since october and below 20% below the 2015 record high we saw last april. the ftse 100 driven down. many of the mining stocks off by 2.7%. now short but not so sweet trading session in china. stock markets shut within half an hour of opening following a 7% slump in the csi 300 index

which triggered circuit breakers for the 2nd time this week. this after they set the midpoint at a fresh five year low. let's get out to eunice yoon in hong kong. it feels like august all over again, doesn't it? >> it does. today as you said was the shortest trading day in china's 25 year history. i mean, the panic has really set in. investors were spooked by the central bank's downward adjustment. it's biggest since august and they were also fretting over the fact that the government is supposed to be lifting some restrictions. a ban on big shareholders put in place over the summer of major shares. so that is still spooking investors. one of the things they have been talking ability today is the circuit breakers. circuit breakers are supposed to be put in place in order to try to calm investors down. give the markets a pause but they're actually having a counter productive impact. a lot of the investors were

calling for an end to the circuit breakers and there was an interesting online poll that was conducted. they found that 86% of people polled believed that the circuit breakers were unreasonable and over half of the people believe that the circuit breakers are going to be triggered early again tomorrow and we spoke to one investor that said that he is lining up and would be on his computer to be one of the first people in to sell his stocks. >> it has to do with the fact that the wild swings are not that unusual in the market. we were just looking at data there saying that when you look at the 5% or 7% swings over last year, these circuit breakers would have been triggered about 15% of the trading days so this raises the question of what were they thinking in the first place and when will we see an alteration to the rules?

>> well, the government put in place the circuit breakers because they wanted to smooth out the volatility. i spoke to one financial expert that said we should continue to inspect the volatility and we should see many plunges like this every other month. because there's great volatility. what should the government do? they have to tweak the circuit breaker system but right now the panic is really baked in to the marke markets. >> they don't think it should work. there was an effort made on the part of the government earlier this week whereby the headlines -- one of the headlines was don't blame the circuit breakers. there's an adjustment period. part will be education to get people to understand the circuit breakers but one investor that we spoke to i thought really told it all, he was trying to sell a couple of his stocks and when he went in he wasn't able to, immediately tried to sell them and locked up and complete

panic ensued. >> thank you so much for that. >> meantime, breaking news for you. tourists were attacked by gunmen at a cairo hotel according to israelis. gunmen opened fire on a tourist bus at a cairo hotel there were no deaths. we'll keep you updated on that story. that's it for today's show. >> worldwide exchange is coming up next. nobody move! get on the floor! do something! oh i'm not a security guard, i'm a security monitor. i only notify people if there is a robbery. there's a robbery. why monitor a problem if you don't fix it?

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>> break news. a chinese market melt down in minutes. trading is quickly suspended for the rest of the day. u.s. stock futures are dropping fast. >> the energy route continues. oil prices in free fall this morning. >> plus a rough ride for a major retailer. macy's cutting jobs and closing stores. it's january 7th, 2016 and worldwide exchange begins right now. ♪ >> here we g