good morning and welcome to "street signs." these are your headlines. the september sell-off intensifies with the dax nursing double-digit declines. powering down. e-on is spun off to a separately traded entity. and shares in linde as merger talks are run out of gas putting an end to a $60 billion

tie-up. and hillary clinton canals a campaign after falling ill at the 9/11 ceremony in new york. welcome to the show. you're watching "street signs." it's monday, what a monday it is. we have the september sell-off going on. everyone says it will hit us as one point. we knew volatility would come back at one point. we knew many investors were complacent at one point. what triggered the sell-off, those were the boston fed president's comments. i don't think he was that hawkish. >> he wasn't based on other comments we have seen from officials. but in case you're left with doubt trying to pick through the comments, we are getting more fed speakers today. mel brennon is speaking today in chicago to offer additional clues. but also the disappointment investors were reacting to. here are the stoxx 600 off 2% an

hour into the trading session. the dax closed lower 1% on friday before the wall street stocks really strengthened. here's a closer look at the board one by one. selling across the board. the ftse 100 lower by 1.6%. the xetra dax lower by 1.93%. and the ftse mib is lower by 2.2%. basic resources are off 3.5%. some of this due to the reaction we have seen in metal prices. also crude continues to be on the back foot after the surprise in the uptick in the rig count before the weekend. banks are lowered by 2.6%. autos will be behind by 2.35%. oil and gas lower by 2.35% as well. we are watching the activity in the bond markets. we are starting to see a cooling

off when it comes to the bubble. the ten-year is lower as we watch the yield move back to positive territory. >> we have seen it all. that's a pretty good lie. don't get used to it. joining us now is the head of global equity at munde. do you think it is overdone or a much-needed correction? >> we have been through an amazing period of calm in markets over the summer. we had a tult mouse start at the beginning of the summer. so now people are back from holiday and this is coincided with politicians coming back and what the feds are thinking about their own policy. and there's been a lot of confusion around that. personally, i think this is probably going to be relatively short-lived. if you look back at the

fundamentals in the market anyway, they are relatively benign at the moment. and we shouldn't get too strung up as to whether or not the fed raises rates by 25 basis points in september or december. if they do raise rates in september, they are certainly going to come out with dubbish noises about what happened after that. so i think this really is a case of the market being too calm over the summer. people coming back. this is an obvious trigger because people are very focused on monetary policy around the world. probably what is going on in europe is a bit more concerning than what is going on in the u.s., in fact. >> what if bond yields continue to spike? that's been something so many people have been warning about. what if this bond bubble is finally bursting. wouldn't that crowd out more gains in equities? >> i think it was an aggressive sale in bonds and that would be problematic for equities. we can't get away from that. although when we step back and i

look at the effective duration with the 1% in rise with the 18% loss for investors, i think at this point probably bonds are as risky as equity. but i think a moderate rise in interest rate is quite positive. i remember one big positive for the financial sector which has been terrible for decades. they have really been struggling with interest rates so low and because the yield curve is relatively flat. so a little bit of action by the bond market in a very modest steepening will help sectors in the market. and also just get rid of this cloud we've had over us, which is what is going to happen when interest rates go up like this. >> nicholas, you mentioned there of what is happening in europe is more concerning than what is happening in europe. why is that? >> well, mr. drugge cannot or

doesn't want to at this point follow the push of the market. to extend qe in the way the market is expecting him to. and it may be because he has a slightly more positive view at what is going on economically. or it could be very tricky inside the ecb right now. we know there's an interesting piece in the ft this morning talking about this whether he managed to persuade everyone last year there could be no forgiveness, like greece, for example. so after the election in germany coming up at the end of 2017, but almost certainly the coalition in germany is going to be less strong by the end of next year. and politics will be more uncertain in germany, so not only for politics but also for -- >> also for italy and coming up in france as well. that suggests to the ecb that draw eventually will have no choice but to be accommodative. what do you think?

>> i think he accommodati accommodative. the interest rates already feel monetary policy is too loose. they are not comfortable in the way mr. dragge is. i think in the end he'll prevail and it will level the extension of qe. >> looking at investor flows into equities, we have seen most of that go into the u.s. and much of the outflows coming out of europe. when do you think the tide will turn? >> well, i think that the tide will probably turn when relative price momentum is better. the u.s. has been performing much better for europe than some time. we saw a little of this in the run-up to the sell-off on friday. we have seen the um for equities desperate at the beginning of the year. less pressure from the dollar,

and the fact they were on their own class. flows have come back there. i guess the same thing could happen to european equities, but we would need to see the economy recover. and the main thing you need in europe is earnings forecasts to start going up. and that is something i feel going into the end of the year, i feel better about this year than in previous years. because every year since 2011 since the financial crisis and since the eurozone crisis, we start at the beginning of the year in europe expecting 12% to 13% growth. we have gotten to about now where we are at zero. and we started the year at five. we start at plus 12 and got to zero by march and have stayed there. now things are looking better and expectations are much lower. so we may start to get the upgrade in cycle toward the end of the year, which would be unusual and helpful. >> nicholas, great to get your

perspective. thank you for being here. linde board members voted to end talks with praxair over a tie-up that would have created the largest supplier of industrial gas. now it is the stock market debut for the german utility e-on. they have been closely watched after eon decided to free up cash for future investments. now we'll go to annetta in frankfort. today is not a great time to list. >> reporter: not really. it is rather unfortunate timing. but despite the timing, the first prize was 0.15. but now the stock is trading up

at 10.74. uniper is down in reaction to the disappointment we are seeing at the uniper pricing. analysts expected between 10 to 15 euros. so the price range is in place and that would have been a huge write-down in the price of e.on. e.on is still keeping minority at 40% shares of uniper selling at 43%. it is an interesting ipo, though, because today they are still listed as a dax member uniper, but that is only for

today. we'll watch for more reaction tomorrow as loads of index funds are at 25% of the uniper sales. back to you. we have to take a quick break, but get in touch with us. e-mail the show, the address is streetsignseurope@cnbc.com. you can always get in touch with us on twitter @streetsignscnbc. i'm @nancycnbc. and you are @carolinecnbc. >> is there opportunity in the sell-off? that's the question. coming up, the standoff between greece and its creditors intensifies as the prime minister hits out at the imf and the eu. but the president says there's no cause for concern.

that interview is coming up. you don't want to miss it. that no one would ever notice me. but i knew i could be more. that one day, i would make people smile. [woman speaking indistinctly]

welcome back to the show. you're watching "street signs." samsung shares have hit a two-month low hurt by the galaxy 7 note recall. the group has asked customers to return their phones after explosions and fires. the device is banned from flights due the threat of explosion and fire. our in-house acknowledger reporter is joining us around the desk. you have been talking to analysts, how concerned are they? >> they are expecting an impact in the third quarter around 1.1 trillion. they are also downgrading the

forecast for unit shipments of the note 7. they were expecting in the third and fourth quarter around 12 to 15 million devices to be shipped. now they are only expecting around 6 million. so in the near-term, they are expecting an impact. the question is how samsung deals with the issue over the coming months. >> how they deal with it gets to be brand impact going forward. yes, it is fine to estimate the loss of an operating profit and the revenue losses put out there, i heard in the neighborhood of 5 billion lost in revenue. what does it do to the brand? will customers turn away and go to the competition? >> that's the big question because the timing is key here. we have seen them release the new iphone 7 on preorder going on sale, so whether customers switch to the iphone is another question. but we've got to see this particular device playing into a space where there's not that much competition. it's a very high-end device with a stylus, big screen, and in that respect samsung is in a unique position saying, look, we can create one of the best

phones on the market, but the big question is it is a great phone, but now the batteries are reportedly exploding. >> if we look at how this is impacting the ongoing samsung war between apple and samsung, samsung tried to beat apple to the market before releasing the iphone 7. but then they compromised on quality control and that backfired. do you think apple is still winning this war at least in this instance even though the iphone 7 didn't blow it out of the water? >> i think it is keen to remember that samsung is the largest smartphone maker by share. this could improve the profitability of their division and the margin of their division. we know samsung knows how to win markets and they have done that through intense marketing but also bringing out some solid devices. now, if they can come back from this and market this device as fixed, a premium device, after the recall, then they shouldn't have any problems, to be honest. >> have analysts given you the

indication as to what extent people have worried, yes, this is a high-end problem on the galaxy 7 but it may trickle down to other models? >> there's no indication of that. they are very clear this is confined to the note 7. >> in terms of consumer production. >> in terms of consumer perception. so their flagship devices continue to sell very well. and samsung is looking forward to the galaxy 8 to release next year. so there's no kind of perception that will be a broader brand impact of such. >> all right. thank you so much for bringing us that perspective. meanwhile, here's a view of how commodities are trading because the fallout in wti was a big story on friday with losses near 4%. today it's a different story. the wti lower by 1.6%. this is extended the decline that was initially triggered by the huge count suggesting that

producers were getting back online by the share uptick in oil prices we have seen lately. looking at spot gold basically flat at this stage. and silver off by .30%. we'll get a check on the asian markets because we did see the global sell-off carry over to the asian trading day as well. we'll go out to sherry king joining us live with the very latest from hong kong. >> thank you very much. the asian markets have suffered a pretty big sell-off on this monday with a negative handover from wall street on friday. of course, lots of questions over what major central banks are going to do. so let's kick things off with greater china markets. shanghai composite off by 1.8%. and hang seng index, we're very much focused on this index. the fact that they decided to join the asian sell-off on this monday. of course, it capped off as a best weekend close to two months on friday. it's had a pretty good run there. but now it's hurting more off by

close to 3% now. do note that today is the last day in terms of the southbound settlement with the shanghai index connecting there, so that could explain the layer of uncertainty or profit taking coming through for hong kong shares on this monday. flip the board and we'll take a look at how nikkei 225 did giving up more than 1.5% as the yen firmed up against the u.s. dollar. of course, the yen is a big exception in terms of the asian currencies move overall with the asian currency very much under pressure. and, of course, the korean yuan was the worst among the majors. we heard the south korean officials talking about the chance of another nuclear attack by north korea. guys, back to you. >> thank you so much for that. concerns are mounting that portugal may need a second injection of funds to shore up its lagging economy if it loses

its investment rating. however, a financial minister for portugal mario centeno talked to cnbc over the weekend. >> this is crucial for investment and for the economy to grow. we are also promote iing reformn policy cases and skills so that they can retain our best skills at home and of course allow funds to invest. this is very crucial to the overall picture. still, i think it is more mixed volatility that they are implementing that, of course, puts growth and exports at a high level. in fact, one of the most important figures is still low

for growth, but it is very important for the feds to increase 1.3% quarter on quarter, which is a strong figure for the situation we face in the overall trade and development. >> so why do you think people are so concerned about your commitment to reform? do you think it was because initially when you came to power you repealed a number of the former government's measures. and so this is perception now that perhaps, you know, this is a government that's not going in the direction that europe wants it to? >> well, that's the perception, but it really was a mixed perception. because the focus, again, was on recovering income and lowering taxes. they were actually meant to be faded away because of their temporary nature. we are putting more of an

emphasis on reforms that go to the potential growth of portugal. meanwhile, greece's prime minister has blamed a rift between the european union and the imf for damaging the country's economy. mr. rift said that this is slowing investors from gaining trust in the markets. he also called on private investors to kick-start the economy arguing, quote, it will be mutually beneficial both for you and our country. cnbc also spoke to the president of eurogroup, jeroen dijsselbloem. >> the prime minister came here to say we have the majority of

the reforms still to do and we'll do them, but then you have the prime minister back home holding a conference rallying against austerity. i mean, is there irony there somewhere? >> yeah, well, everyone is allowed to dream about the future. and to plea for a change in the rules in the way we work. but as we haven't found agreement on any changes yet, let's stick to what we have agreed. so my assumption is that the prime minister is fully committed to the program and that we will continue to work and get it done. and if not, of course, it will come to an end. but i don't think that is an option. >> define end. >> hmm? >> define end. >> no, i won't. it's not an option. >> joining us for more insight on the situation in greece is the co-president of intelligence. he says we need to get the imf

on board. they say this is damaging the recovery. do you agree? >> he doesn't have anything else to say so he blames the others. he's blaming the american european union. on the other round, the group chairman keeps says they need to join, but the europeans are not making a move in terms of providing details about the kind of debt relief that they are somewhat thinking about in terms of greece. so it is political theater. the only good thing about this is that nobody really cares. there's basically no hard deadline at this point. i don't like july last year. so the political deadline is gone, we'll keep an eye on it. >> the political theater with the intent of shoring up support. because looking at the polls, mr. ciprus understands that this

is under threat. >> despite the pollsters, tsipras knows it's down 10%. the reality is you still need a majority in parliament. any number needs to be a solid majority. so for tsipras, the best bet is to vote on a second recovery because they have not anything else to say about this. and eventually on the goodwill of europeans to provide relief. >> in part because angela merkel is opposed to it. and going into new elections in 2017, i guess. >> there's obviously that to complicate things in germany. but they are wasting time. they have the summer to work on this milestone. they have not done anything.

now they are already visiting and procarastinatprocrastinatin. they are posturing. because of these two factors, it is very difficult to see the are leaf being provided, any sort of debt relief, even a marginal short-term measure. and that is why also nobody is wondering any longer why greece won't get into the qe because this is clear. >> do you believe that will make a huge difference if the waiver is reinstated by the ecb? clearly mr. tsipras blamed the imf standoff for not letting that happen. >> there are so many problems with the banks. and they aren't sure where to land. so in terms of sentiment, in terms of how things look, it could help. will it make a material difference in the economic prospect of the country? zero. >> do you think that in our

lifetime or over the next decade or so we'll stop talking about greece's economic woes at some point. or is that just with us to stay? >> well, they don't know what we're supposed to do. >> we're out of a job, huh? >> well, i think it's going to be a long run here. how long? it depends on a number of factors. we are reaching the bottom. and if the politics stabilizes and the europeans are more forthcoming, there's a chance for the greece to get out of the news every other week. >> this is the first populist candidate to hit europe. does this send a message to other countries to put pressure on voter that is perhaps candidates like this are not what you want to see with the troubles. >> look at spain where he's not doing as well as people expected

him to do. let me be clear, the mainstream party knows they are struggling. so there's going to be space for the political entrepreneurs coming for tsipras, like in italy and so on. so this will continue. in our view, they will not make a difference in terms of policy, but they will constrain the ability of the mainstream party to get things done. >> thank you so much for joining us, that's the co-president of teno intelligence. we'll have much more coming up for you after this break. it's scary when the lights go out. people get anxious and my office gets flooded with calls. so many things can go wrong. it's my worst nightmare. every second that power is out, my city's at risk.

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welcome to "street signs." i'm caroline roth. >> and i'm nancy hungerford. these are your headlines. >> the september sell-off intensifies with the dax nursing double-digit declines led to the red by basic resource stocks. powering down. e.on the worst performing and looking to be a separately listed entity. and hillary clinton cancels a campaign trip after falling ill at the 9/11 ceremony in new york. good morning, everyone. if you're just tuning in, here's a quick peek at the u.s. futures. the s&p 500 is down 17 points. the dow jones could fall into triple digits, 137. and the nasdaq could fall by 45

points after the u.s. indices were down more than 2% on friday's trading session with concerns on the impending rate hike. and then ken dukes just pointed out that the market, equities and the heavy positioning at some point has to lead to a sell-off. the dow, the s&p and the nasdaq saw the worst loss since january and february respectively. on friday alone it jumped 40%. that was the biggest rise for a day since brexit. we'll show you where we are in terms of the european equity markets. hey, we're not fairing too much better with the cac 40 off by 2%. also off by 2.5% for the ftse 100. sector wise it is the cyclical stocks leading to the downside with basic resources bearing the brunt of the selling, 3.7% in banks, autos, oil and gas also

trending lower on the back of falling oil prices as well. and that was related to the increase in the rig count and the u.s. we've got all the sectors trading in negative territory. but the relative outperformers are household goods and media, some of the more defensive sectors. here's what is going on in the fixed income space where a lot of the selling took place as well. we saw some massive selling of u.s. treasuries and that seems to be continuing after a bit of a let-up before. we are now yielding 1.69%. it's worth noting the ten-year german yield is back in positive territory. we have not seen that for many, many months. it's very marginal yield that you're getting there. hey, it's better than nothing. nancy? thank you for that, caroline. let's bring you up to speed on bridgewater associates because the group has reportedly raised $22.2 billion after sending their alpha funds to new investor flows. this follows a run for the

largest hedgefund which has driven the $70 billion fund bethrow optimal size. through the end of august the fund has lost 9% this year. cnbc and the investors will bring you the sixth annual delivering alpha summit tomorrow in new york. speakers include bridgewater associates founder ray dalio as well as elliott management founder paul singer. these guests and many others are tomorrow on cnbc. and you certainly do not want to miss that one. meanwhile, the future of alpha will depend on demographics according to bank of america merrill lynch. in a new report the bank said millenials and centennials will account for 60% of the global workforce by 2020. and both corporate and investors need to adopt to the new demographic reality. well, for more we'll bring in sergeant hall, managing director

of bank of america merrill lynch. good morning. good to see you today. before we get into specifics of the millenial trend, when you look at the market reaction today and the uptick in volatile till, how do you make the case for investing? >> we are living in a world which is star for alpha and we believe that a house needs to establish a shopping list with a one to three-year timeline. >> what is on the shopping list? the report you brought out has staggering numbers on smartphone use, mobility among this generation. >> we believe the me lillenialse very important. they are 19 to 35 years old,

there are 2 billion of them globally. you look at the centennials or generation z, we are now at 2.4 billion. so they are more important than the millenials as a force for demographic changes in the coming years. >> one of the notes here is millenials check their phone 150 billion times a day. the attention spans are falling. is it really that bad? and my second question would be, how do you really capture the centennial and millenials attention if the span is so short? >> i think it is absolutely key that technology is an innate part of their lives. companies have to make the transition toward using social media, toward using apps and developing a seamless omni channel experience for the younger clients the they're going to maintain them as clients. so tech is a key part of this. making information snackable is also an important part of this. the younger generation tends to lose interest between 3 to 30

seconds when watching a commercial. >> wow. >> the first three seconds are retaining. after three they start to lose it. that's key. making things shareable. the younger generations are looking to social media. over 90% of them are on one social network. 70% are on two or more. so you have to make things shareable. then you have to take on new ideas, whether that is sustainability. 80% of the younger generations believe that success goes beyond the financials. through to things like the sharing economy, they think and act differently than previous generations. >> how do you do your research? talking about these millenials and centennials, do you talk to people on a daily basis? do you have research team that is go out and do that? how do you do it? otherwise you don't get into what is going on in their heads? >> we do. intend a lot of time meeting experts and working with younger clients. i'm a general x'er, a lot of the

young clients are millenials and will be a part of the dplobl workforce. we have a team of 750 analysts around the world grappling with the issues. 90% of corporates don't understand the millenials and the centennials. how the business models need to change. that's what our analysts are increasingly tackling. >> i want to get your thoughts on the millenial view of autos because there was a front page on the economist recently talking about the uber world and how we are potentially moving closer to getting away from car opener ship among this generation or phasing to it of it. is that something you see in the studies? >> definitely they are not hearing the call of the open road that the previous generations are. first in terms of the issues they believe strongly about, climate change is the number one in the world today. vehicle miles traveled down by 23% in the u.s. over the last 14 years. the percentage of 19-year-olds with a license has fallen from

64% to 46% over the same period. a smartphone rather than a driver's license is becoming the most important thing for a child today. and then on the flip side, we're seeing a rise in the use of public transports, the use of the sharing economy, 70% of uber users are millenials. and then ultimately towards new business models such as carpooling or a self-driving car. >> sarj, how do you make money? do you buy equities like google or facebook? what do you want to own? >> in terms of this, we set out five points, tech is key. some of the other things are the smartphone manufacturers, the search engines, the social media companies, it's the music companies starting to monotize the streaming. it's the video game companies. 10% to 17% of the leisure time of young people is spent on video games. but you also have huge opportunities in the consumer

space in terms of household information. in terms of education and also in terms of financials, i would stress there is also a risk factor of the younger investors that are conservative. they are less sticky. and they don't look to the equity markets the same sort of way that previous generations do. >> that's true. they tend to be very fickle. thank you so much for that, sarj nehal at bank of america merrill lynch. how many times do you check your phone a day, is it 150 times? >> i hope not. but i do it without thinking. we need to go into the phone detox, i suppose. meanwhile, we are talking about the millenials and the environmentally friendly purchasing trends. tesla has new features after a tesla driver died earlier while the vehicle was in autopilot mode. we'll talk to the ceo who says the latest software will detect such obstacles.

hick hurricane has bellary forced to cancel a trip to california after being diagnosed with pneumonia on friday. she appeared unsteady on her feet yesterday at the 9/11 memorial. tracie potts, how bad is this going to hurt her? >> reporter: well, the thing that we first need to find out is really what her health situation is. her doctors say s recover well from pneumonia as most people do with antibiotics and with rest, but the issue here is in context. last week she had a coughing fit and her doctor said was seasonal allergies. in 2012 she developed a stomach virus that turned into dehydration. she fell and hit her head and had a concussion. and then they found a blood clot that was actually the second blood clot she had dealt with. so the bottom line is she has had some publicly acknowledged health problems in the past.

and neither she nor donald trump have released their full time health records and will be the oldest and second oldest elected to the presidency depending on who wins. as one doctor put it, things tend to happen when you get older and people need to know the health history of both of the candidates. but in terms of clinton, she's resting at home and has canceled the events to likely catch up on the rest she was supposed to get after the diagnosis on friday. and the other question is popping up after she was diagnosed on friday did we not find out she was battling pneumonia until after the video appeared on sunday. >> apart from that, it's not been a great weekend for hillary clinton. she also made that very infamous comment on the basket of deplorables but she backtracked, hasn't she? >> reporter: she backtracked on that but didn't backtrack on the fact that some people she describe in the terms support donald trump. but the percentage, she said, half of the people supporting

him. and said that was a mistake. it was an overreach and obviously the trump campaign jumped on this saying she was offending many americans supporting his campaign. >> and tracie, we hardly need another reason to get this campaign more exciting, but there were questions raised toward the end of last week about the photos released of former president bill clinton and donald trump looking rather cozy together. i have to wonder if this hurts on both sides here when you hear trump being so critical of the clintons and then see bill clinton at one point shaking hands. do you think the voters care about this? >> reporter: i don't know. you know, we had pictures of remembering hillary clinton and george w. bush being cozy and people talking at that for a few days and it was forgotten. it's no secret that the trumps and the clintons knew each other. he talked about being invited to the wedding and vice versa. people who run in similar circles, politics, new york, money, obviously, are going to

have some social ties from time to time. you know, i don't know if this is going to be something people talk about for maybe a day or so or something that really affects anyone when they go into the booth to vote. what we do know is that it's probably going to be far outweighed by the health issues. >> tracie, thank you for bringing us up to speed on the latest developments. tracie potts, live in washington. meanwhile, business leaders reacted to comments made by liam that britains are too fat and lazy. this as the government shields away from the issue saying the international secretary voiced his private view while some labor politicians and business leaders including richard reed criticized fox. others like peter hardgrave expressed sympathy for his views. >> even if those are his views, that doesn't bode well for the

government if that's his thinking. >> at a time to jump-start brexit, perhaps those were not choice words to get there, but he's saying stop looking at the brexit as a negative, saying it's an opportunity to all revive revivers. >> is that what business leaders do on friday? i thought it would be a nice tease. >> it's not quite as popular as it used to be. but i know a few people in my household like that. focusing on the fed, we speak to neel kashkari at 1400 cet. and barclays ceo jeff daly gives us an interview from the global financial services meeting in new york. we'll be back.

good morning and welcome back to "street signs." on this 15th anniversary of 9/11, teams around the nfl made time to honor the first responders who lost their lives in the attacks. new england patriots quarterback stepped in for tom brady passing for 264 yards. and this touchdown to chris hogan with less than a minute in the game. meanwhile, the arizona cardinals missed a 41-yard field goal attempt. and they start the season 1-0. we'll take a look at the scores from week one. eli manning passed for three scores including the game-winning touchdown to victor cruz as the new york giants held off the dallas cowboys 20-19. the kansas city chiefs rallied from a 17-point deficit to top the san diego charge earns 23-17 in overtime. the oakland raiders hosted 22 points in the fourth quarter to

storm back against the new orleans saints winning 35-34. i love a close game like that. and philadelphia's rookie quarterback threw for 278 yards and two touchdowns to lead the eagles to pass the browns 29-10. and the u.s. open wawrinka beat number one djokovic to win his third grand slam title. the swiss player won in four sets overcoming a tired looking djokovic in new york. at 31, wawrinka has been the oldest world champion. we saw djokovic crash out at the olympics and now this. >> it's nice to spice up the games. it gets dull when it's the same

winner year after year. meantime, it's not looking that rosy in terms of european equity markets this morning at the xetra dax is down 1.9%. the ftse 100 is off 1.51%. the cac 40 is off 2% on rate hike concerns. sectorwise, basic resources lead the charge by 3.5% of banks, autos, oil and gas also being sold off. household goods, food and beverages are doing better but are still deeply in the red. we'll go out to frankfurt to see how the dax is doing. >> the dax is down 2% mainly on the uniper story we are seeing.

but in general it's the rate hike concerns once again. and, of course, you have to keep in mind that roughly more than 60% of german stocks are owned by u.s. american mutual funds. so other funds are based in the united states. so i think there is a heightened concern here that with the fed hiking rates, of course, there's a reshuffle of apple's allocations also taking place here in germany. looking at the e.on stock making up the buzz of the turnover here together with uniper, the shares have slowed down by half a percent. the story is still with uniper's initial price disappointingly low, people are saying that the impairment cost for e.on is bigger than previously anticipated. we are looking into probably an impairment loss for e.on around

4 billion or 3 billion. so that will be, of course, negative. so e.on and uniper shares are trading up in relation to the first price in the morning. and also people are saying you still need time to catch what the shares are going to do. as soon as tomorrow they will look at the index funds that will sell them. but for now, back to you. >> thank you for that, annetta. meanwhile, we want to bring you up to speed surrounding the mobile operator of telenor. there's been speculation they would lose $2.5 billion. they currently own 580 million

a a ads's. and british foods has raised their earnings outlook. the company now expects sales at the primary stores to grow 9% on a currency basis. we'll sell deeper into the numbers with the equity analyst from ab foods. they are upgrading the earnest guidelines, so why is the stock down so much today? >> i think that sales at 15 stores were down 2% or unexpected to be down 2% in the year. and normally what you expect from this is growth.

so clearly the market is disappointed. last year it was quite warm and then in march it was quite cold. that is not positive for right now when you want to sell winter coats and jackets. >> at the same time, primark is wanting to expand in the u.s. wouldn't that be a game changer? >> indeed. in brand awareness, it's not massive yet. it's starting to increase, but in a new market it's difficult. they are opening three more stores in shopping malls that haven't been doing too well eventually in the u.s., generally in the u.s. >> not all that profitable over the outlook. >> it is still proximal, but

profits will be lower than in the past. >> you mentioned opening new stores but it is all about taking on the competition. are there still concerns about primark not getting involved online? >> i'm a bit concerned about that. see, they did try in the uk to sell throufor a few months and clearly the trial didn't count. so i don't know how they are going to make it work. the ceo of ab foods did say people like coming into primark stores. and that's true. it's a destination store. at the same time, you limit your customer's entire area. how long do you want to travel to primark. >> diving deeper into the post-brexit effect here, it cuts both ways with ab foods for the food side, particularly, it's been a real boost. if they continue, they will start to feel the pinch on the primark side, is that right?

>> that's correct. many of them produce in the far east or in currencies sometimes linked to the u.s. dollar. and then stethey have the sterl, so prices will go up. this is what the statement said today, they want to be the price leader, meaning they will keep the price low. so that will affect the affectability. on the other hand, they also sell in europe. so the exchange rate is not as volatile as the sterling. so that is sentiment protection. >> nicla, quickly, who is your favorite retailer in this space? >> i think the markets are starting to do something. of course, it takes a long time to see the impact being quite successful. and the business model is really superb with everyone trying to copy them. >> nicla, thank you for joining

us. that's nicla di palma at equity dolphin. here's a shot of what the european markets are doing out there. the xetra dax is down by 2.06%. the ftse 100 is also down by 1.67%. >> this is the picture for u.s. futures. we're expecting stocks to move across the board, especially for the dow jones calling lower by another triple digits on what was a tough friday for u.s. markets. that's it for today's show. i'm nancy hungerford. >> and i'm caroline roth. "worldwide exchange" is up next. we'll see you next week. bye-bye. i love taking stuff apart and building new things out of it. anne: pal's my most advanced annedroid. [gasps]

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global market alert. volatility is back with stocks selling off in europe following a friday route on wall street. and u.s. equity futures are pointing to lower numbers again today. and hillary clinton abruptly left a public event early and her doctor says she's being treated for pneumonia. and a huge weekend for sports. we'll bring you the highlights including the tom bradiless patriots defeating the cardinals in sunday nights football. it's monday, september 12, 2016. "worldwide exchange" begins right now.