allianz global investors and maybe european inflows.r targets why that it is a strategic decision is the pension need and it still goes very long into the bond market. you can invest in take a lot of risk and hopefully a lot of money. it depends very much on their own positioning and capital. how much of a beneficial quarter has the weekly euro been? guest: the euro contributed when you compared it to a year ago, around 200 million euros, that is the bottom line. caroline: will discontinue? -- will this continue? what is your outlook? when could we see it start to change, in your opinion? year at ahave set the of 1.20uro ratio as a euro reporting company we are still $.10 on the positive side. there are probably more people lost on this than gained on it. we stay way from this. many have voiced the warnings of with a very low -- the ecb still continuing to buy bonds. think it is the right cause of action to have these low interest rates? well, i think the ecb certainly has success and stabilizing the economy in europe that i'm not sure

mohamed el-erian is chief economic adviser at allianz, a multinational financial services company, and a columnist for "bloomberg view." and, david lampton is director of the china studies program at johns hopkins university's school of advanced international studies. we welcome you both. mohamed a. el-erian, let me start with you. so the dow was down 1,000 last week, almost another 600 today. what is driving this? >> two things -- the market is trying to get to terms with, first, lower global growth, particularly out of emerging markets and china and, second, the market is worried the central banks have run out of ammunition. so put these two things together, and then investors are repricing the market lower. once you start moving lower, then the trigger of all sorts of things. people have to sell so they sell

. >> allianz feeling the effects of profits. it's soured by continued weakness from pimco but the ceo defended it to cnbc. >> it's still a strong bond house it used to be as a performance looks total the current fund has an excellent performance year to date. almost back to its shiny days in performance. >> in the black for the second quarter in a row as the bank's turn around plan continues to bear fruit. the company boosted by cost cutting and asset sales. >>> happy friday everyone and welcome to worldwide exchange. i'm seema mody. alibaba getting real. find out how the e-commerce giant is trying to win back customers with knockoff goods. this is it, jon stewart boys out after 16 years hosting the daily showment we bring you the highlights from the star studded show. and we speak to the new venture that will deliver food to your door. we'll digest the details. >>> welcome to the show. so the july u.s. jobs report is out at 2:30 cet with another solid month of hiring expected. forecasts call for an increase of 215,000 in non-fa

. >> allianz still feeling the effects of bill grosses a departure. shares slip as a better than expect profit is soured by continued weakness from pimco but they defended the performance of the asset management business to cnbc. >> pimco is still the strong bond house it used to be. total there's an excellent performance year to date. almost back to its shining days in performance. >> a losing quarter for zinga. the gaming company disappoints with guidance and falling active users sending shares over 10% lower. >> i'm carolyn roth. coming up on the show alibaba is getting real. how the e-commerce giant is trying to win back customers fed up with knockoff goods. plus this is it, jon stewart signs off after 16 years hosting the daily show. we bring you the highlights from the star studded show. >> and new route to investment. we're getting on board we i didn't want as it opens the new sewa canal. find out how much it costs after the break. >>> it beats expectations and strengthens the feds ability to raise rates in the month of september. you can see t

thank you for your analysis. >> thank you. >> mohamed el-errian of allianz. institutions have not adjusted to this period of higher volatility which would imply there's still more volatility to come because they have to adjust. >> pete can speak to vol, but it's still elevated clearly and in terms of the s&p we're right at a huge pivot point to me. this is a week where it makes or breaks, it either goes back to 2054 off this 1970 level or unfortunately i think we retest the levels we saw last week. in terms of oil, though, pete mentioned these short dated options. look at a name like schlumberger which may have capitulated at least in the short term but it traded close to 68 million shares. closed at 70 bucks, although valuation is rich you could probably trade it from the long side against that level. >> speaking of volatility we've got china pmis overnight and also the ecb meeting on thursday. >> and non-farm pay rolls on friday. there's a huge, huge docket ahead of you labor day weekend. so add that to people who really care about labor day weekend around

joining us on the phone is mohamed el-erian from allianz.cross the globe, is the selling over yet? >> not yet, kelly, because we haven't seen one of two things that we need. either we need better economic news to calm concerns about an accelerating global slow down and/or we need some policy intervention but not from the fed or the ecb. that's what is different this time around. we need policy intervention that holds in the emerging world because this crisis is emanating from the emerging world. >> mohamed, the very source of funds just evaporated. let's look at crude oil which dipped at $40 a barrel. china was a huge source of income. if you say other countries need to spend in order to prop up their economies, where are they going to get their money? >> that's the problem. the american world is being hit in one of two ways. one is demand shock and two in terms of trade shock. they are commodity exporters and commodities have come down. a little bit was because of supply issues, particularly in oil but now we have a supply shock and demand

ofld the infrastructure arm elian's the -- allianz be gearing up? meanwhile, volkswagen down boy 0.6%. probably we are sing the concern about growth in china veering into the car market but there is an interesting pick up. they will be getting about $3.8 billion from that 20% stake they are selling in suzuki motor. jon: cannot miss that interview with the ceo in about 30 minutes time. equity markets are a little bit iner and the dax down 0.8% the cac 40 down also about 0.8%. let's get the asian market rat with zeb eckert. stocks extending the biggest monthly decline in three years today. china continues to be the center of the conversation and is impacting all of its neighbors and trading partners. there are questions ahead of tomorrow's manufacturing numbers and the rba decision. we also have the aussie today trading at a six-year low. that is a currency we're watching very closely. the nikkei 225 is lower because the yen is advancing ahead of those chinese manufacturing numbers. investors are looking for safe havens and they are high -- piling in

lucy macdonald, cio at allianz global investors.n will be taking it over on "on the move." mark: news from china showing prices rising in more cities than where they fell. the first time that has happened in a long time. that is causing a decline in the chinese stock market which fell 5%. what does that mean for policy going forward? secondly, the turkish central bank releases its latest interest rate decision. interest rates to stop a decline in the turkish lira? and the latest u.k. consumer price inflation data. zero is what is expected. can the bank of england raise interest rates with inflation at zero? will be asking that we will be joinedly - by our perennial favorite. guy: europe looks softer. shanghai down by six. a busy read across asia. caroline: the data is what you need to keep a watch of today. turkish central bank decision. guy: we will get u.s. housing starts at 13: 30 u.k. time. asian markets front and center. shanghai down 6%. the weather is not great outside in london either. caroline: on that a rosy note, we will

also, keep an eye on allianz. insurer to their infrastructure on could be airport in for an nice. how much would they be willing to pay for that? anz could be set to move on the back of that news. interestingly, i want to focus on a few assets that should be a focus for investors this morning. commodities are continuing to drop. we are seeing copper coming off its lows. we are still down by .5%. we are likely to see oil on the downward trajectory as well. keep an eye on miners. the euro up .5%. yen, both being seen as they haven trade. the correlation between the yen and the euro is at its highest since early 2007. guy: thank you very much indeed. keep an eye on eni as well today. the huge find in egyptian waters. let's take you to our twitter question of the day. we have been watching asian trade soft. european trade looks fairly soft. is the correction over? is there more still to come? let us know your thoughts on that one. let's bring in david do it b buick.-- david how would you answer that? david: we have ha

manus: that was chief economic advisor at allianz. francine: let's bring in hans.all is a rate hike now off the the table? hans: if you're saying generally, no. francine: this year. hans: it would be december. recent developments were not that surprising to us. the market is now pricing in a 50/50 chance for september. it is now pricing in the full ate hike by april. we have seen a significant shift in the rate hike expectations. the reason why we are reluctant to call for september, when you have expectations of higher interest rates, it is going to work like a magnet for international capital in dollar terms. that means the trade rate of the u.s. dollar shot up. when you look into the broad index of the u.s. dollar, that looks very different. that's why you have dollar, brazil, merging market. all of those currencies have devalued and those flows have gone into the u.s. dollar at a trade rate has moved up. the fed has to take that into consideration. it has to take notice that global trade is weak. it had to take notice that its own manufacturing sector is weaken