. >> translator: the chinese economy is being managed within a rational range, and the country's trade surplus continues to grow. there are no grounds for the yuan to weaken continuously. >> investors on the foreign exchange market have been selling the yuan against the dollar on concerns over the future of the chinese economy. market players think li's comments indicates beijing intention to top the yuan from plunging and to keep its rates stabilized. let's see how the markets are doing after a stellar performance yet in tokyo. we go to mayu, we saw prices sky rocket on wednesday, something we haven't seen in many years.

is he going to talk about the economy, and how this he described the state of the chinese economy? mr. yang: they will talk about the world economic situation, the economic developers, the respective economies and the economic policies. it is very important on the macro level that the two countries have more coordination of their policies, but let me point out that since the outbreak of the financial crisis seven years ago, people have all worked very hard to revise the world economy. it is not as far as people have expected, but that does not mean that we should not continue our good efforts, and china has done its part. you are no longer having double-digit growth rates. it just like a high jumper, the higher you go, the more difficult to raise the level. on the other hand, we still have a handsome 7% growth rate here in china. of course, china is not free from its own set of challenges and problems on the economic front. of course, there have been some ups and downs in the stock exchange market, but given china's economic development, given the fact that china is a developing cou

concerns chinese economy in seattle. he told the audience the chinese economy will maintain stable, relatively faster growth and he reiterated the opposition to currency wars. he says the stock market has reached a phase of self recovery after the government stepped in. > these are normal ups and downs in china's stock market. fluctuating according to laws, and it is the duty of the government to ensure an open and fair just market and prevent massive panic. the chinese government took steps to civilize the market and contain panic in the stock market. thus in avoided a systemic risk. let's go tomore, the event in seattle. you, theeat to see president also spoke about cyber security during his speech. >> that is exactly right. that was one of many issues that the president talked about. basically, it was a laundry list of top u.s. concerns. he finished policy speech about half an hour ago. i spoke to many people who were waiting to hear what he might say, if he might move some markets. in the end, he did not really do th

. >> there were warnings for months about a softening chinese economy. real state people looked ready to burst. country evalued. when china teetered, so did a lot of other things, including stock markets. commodity and investor confidence. is the world economy intertwined. if the chinese have a bad year, we all do. a sag and drag. that's the inside story >>> welcome to "inside story". i'm ray suarez. when the small group of old men who ran china set a new course for the enormous country in the 1980s, it was unimaginable that the chinese economy would quickly become the world's largest. or nip at the heels at the number one, the united states. here we are. in 30 years, china became the world's factory, vacuuming in raw materials from every corner of the planet and sending finished goods to the world, not just socks and gloves, but sell phones, computers and giant flat screen tvs. the economy grew nine, 10, 11 a year. millions moved from farms and cities. bicycles disappeared. the world, apparently got used to that and after years of warnings, the party co

economy picks up. >> how much are you affected by the chinese slowdown? you are not a part of the chinese supply chain as much as others would be. impactedey: we are not by the commodity prices. forink the world will look -- along with china, they will not have to share the burden. >> i have to bring up some other on domesticcs have issues. tax,ping the retrospective better targeting for subsidies for food and cooking gas, making it easier to buy land, implementing labor reforms. mr. jaitley: we moved very well. the subsidies in the last one year has never been better before. >> that is your answer? you have not -- mr. jaitley: i have followed the alternative route. doing it through the states. the election will have what impact on that? mr. jaitley: it will be a vindication of our economic policies. >> 7.3% growth. what will it be this year? mr. jaitley: thank you so much for your time today. back to you.d it minister of finance, arun jaitley. rishaad: china's economy is not as weak as it may look. talking about the china beige book. yvonne is taking a l

my guess is that the chinese economy is stabilizing.hey have monetary easing as well as some fiscal support. i agree the chinese economy is not growing 7%, but i do not think it is contracting. look at those retail sales numbers. it puts most of us to shame. housing prices, the stock market bubble is a reflection of the end of the housing market bubble. i think a lot of people, the sentiments swing so widely in the markets. a year ago, china could not do anything wrong. and now china cannot do anything right. the truth is often in the middle. joe: speaking of the chinese stock market, you think there is a correlation between chinese stocks and u.s. equities. mark: i think about what happened in the first half of this year, chinese stocks rallied. u.s. stocks did not go anywhere. you have one capital market in many ways. in the chinese were cut off from that, but now they are more integrated. correlation, the percentage change of the chinese market, the shanghai, it is point -- .45 correlation. relationship.able i think we could become d

you have a transformational move on such an important economy, the chinese economy, will have a globalact. in the short-term, markets overreact and overshoot. that will be a positive for the global growth and overall trade. >> what does it mean to the spanish economy? in particular the price of oil, you've benefited. when it goes down it's very difficult to read. we have the majority of our economies imported in the case of energy. in spain, we have had very fromtant savings derived the decline in oil prices we have saved more than $10 billion. spain and itlt in will have an impact on the headline of inflation, affect the income of households and will cost corporations. i think this is behind the acceleration of spanish growth we have in over the last quarters. there are other elements that are not so positive. for instance, our exposure to china is not very relevant because it is less than 2% of the total volume of spanish exports. you have to look a little wider. the slowdown of the chinese economy will have it acts on emerging markets -- will have effects on emerging markets. and th

pockets of resilience if not strength in the chinese economy. fortunately, the economies in aren't really leveraged to that at this time. >> glen, we're also expecting coming out of china tomorrow. most people are expecting a contraction. view? the house >> look, i think it's going to negative territory but it's not going to be as bads it was. when we look at some of the sort of proxies that we can use for toan trade, it's interesting note that in that container shipments, they're starting to strongly.d pick up so either we've seen inventories run down in asia or production up.oing to start to pick so i think, you know, for the the low may be in. but definitely that's a key leading indicator to be watching. >> the a.d.b. report does talk about the strengthening u.s. threat to asian companies. i mean, this on the backdrop, and the voj -- i mean, they've got a lot of pressure to actually do some move.f a what do you think draghi is thinking about right now, post-fed? >> well, that's the interesting dynamic. fed has now that the sort of passed on a

is he going to talk about the economy, and how this he described the state of the chinese economy? i: they will talk about the world economic situation, the economic developers, the respective economies and the economic policies. thes very important on macro level that the two coordinatione more of their policies, but let me thet out that since outbreak of the financial crisis seven years ago, people have all worked very hard to revise the world economy. as people haver expected, but that does not mean that we should not continue our good efforts, and china has done its part. you are no longer having double-digit growth rates. it just like a high jumper, the higher you go, the more difficult to raise the level. on the other hand, we still have a handsome 7% growth rate here in china. not free, china is from its own set of challenges and problems on the economic front. of course, there have been some ups and downs in the stock but givenarket, china's economic development, given the fact that china is a developing country, some movements on the stock exchange in china should not equal

contrasts with deepening skepticism from abroad on the economy and authorities' ability to steer appropriate policy. bloomberg sat down with the chinese state counselor. he said the stock market rout does not affect the health of the economy. >> china is not free from its own set of challenges and problems on the economic front. of course, there have been some ups and downs in the stock exchange market, but given givens economic china's economic development, given the fact that china is a developing country, some movement on the stock exchange equal thehould not whole picture of the chinese economy. stephen: no skepticism. back to you. rishaad: you can watch more of that exclusive interview with chi later on bloomberg. greek voters have embraced the man who took them closer than ever to being forced out of the eurozone. alexis tsipras winning his second election in eight months. let's get over to athens. anthony joins us. the outcome wasn't expected to be this clear-cut, was it? was it a surprise to you? >> absolutely. pollsters appear to have been horrifically wrong throughout these five weeks of campaigning. to have aas expected syr

it is important for us to have stable stations in the chinese economy, and we are confident that chinesees will find a way to stabilize the stations. there taken greater steps. strategic for our external relationships, our long-term relationship, so short-term fluctuations will not affect our long-term friendship and preparations with china. mark: thank you, very much for joining us. arkady dvorkovich, the deputy prime minister of the russian federation. let's get reaction from neptune investment management. hello, james. it is a tough time for russia with the economy irrevocably linked to the price of oil. it has stabilized in recent days, but it is such a volatile c commodity. : in trying to push up the oil price, venezuela and russia are fighting and norma economic forces. they will find it difficult on the supply side. you have shifting paradoxes in in the fiscalning power of both, but also rising -- you have china slowing could you cannot fight those things. mark: is oil on a downward trend despite the recent bounce, the three-date increase, which was the biggest three-day rise in 2

this might be a sign that perhaps the chinese economy is bottoming out. yeah, that's an interesting indicator. there's other indicators that are very interesting. there was an article put out recently about the chinese beige book. looking across thousands of companies, it looked like things were getting better. if you look at the bloomberg monthly china gdp indicator, that moved up over the last few

that strengthening slowed the chinese economy.ent the past year trying to create a stock market bubble to re-accelerated and that has failed. it has been a major failure from a policy perspective. u.s. come earnings have rolled over q3 of last year. s&p 500 earnings estimate was for $131. the estimates s&p compiles now are down to $111. when you think about the strap that we've had -- the drop that we've had -- half-hour,e last betty liu and i were speaking with nicholas and cheryl talking about the developments in china and i posed the question, is the world overreacting to the events in china? cheryl says she believes so. think china is part of it. the pmi number last night was in line. one take below the january number. it was not a massive disappointment. something like the south korean export number got people spooked from the perspective of we are south korea is having trouble exporting. you get this fear about global currency devaluation. and trade wars. we are seeing everything come together here. this market rally at 6.5%

in china as well, although it remains to be seen because of so many issues going on with the chinese economy how much this impacts the demand and sales over in china. >> phil, prior to this scandal being unearthed there were already these family battles between some of the ruling stake holders in the volkswagen company. where does that stand now, and if we are seeing this ceo step down, who is now in power and

we really see this with chinese people expressing no confidence in their economy. wyndham information, with which is the leading chinese data provider says $135 billion a month are coming out of china. i think that is real indication the chinese don't believe their president when he says he can take care of them. trish: i want to share with everyone some of pictures of ceos out there meeting. jo ling joining us with more on this right now. you have mary barra. dave coty from honwell. bob iger from disney. ellen coleman, john chambers, all there meeting with the president of china. the list goes on. from the tech sector, you got tim cook, jeff bezos, satya nadella. howard schultz, not so much tech but one of those seattle companies, west coast. why is it so important for these guys to be talking to him today? >> they're doing robust business in china even though there is a slowdown right now. you have companies like boeing, announced a huge new deal. 300 planes will be sold to the chinese now. that is $3 billion, plus they're now investing in a new plant. boeing has

depend directly on the chinese economy.addition to that, they're concerned the beginning of the currency war. some say it is to be -- it is the beginning of the competitive valuation. mark: their currency is barely devalued. 2.5%. oh ryan: why reich is that? i asked the canadian finance minister. he said it is about free trade. we put that in that, because we believe countries are fighting from competitive valuation. a strong feeling that a currency war may begin. interestthe subject of rates, we know the imf is not keen on the u.s. raising rates this year. what was the general feeling among attendees and ankara dacca -- attendees and ankara? from they should refrain raising rates this month. they should be darn sure about prices and jobs. things are going to be ok before they do raise rates. there was a lot of concern about raising rates. stanley fischer was therefore janet yellen. he was telling everyone his assessment of the jobs report which was rather mixed. he said on the one hand, they are numbers. the numbers for la

economy has really deteriorated angela's content to deteriorate. the six of $300, the problem not anticipation? dane davis: we assumed of the chinese company would slow economy what a slow down. a slow slow down. not a rapid deceleration. the first half of the year, that's what we saw. to july, thene economic conditions, the manufacturing pmi, it really started to deteriorate and rapidly and the copper price. explained to me why we see a premium for copper in china versus in a london? it does not make any sense. dane davis: that is a great question. i do not know if you remember scooby doo, always the obvious solution is then they found a at the end of the episode, it was not obvious. with a copper premium, what it signifies is the downstream demand in china is very healthy. a desire for the product and willing to pay a premium. what we think is happening, what barclays is saying, if we look at our survey data and talk to people on the ground, the demand is weak. it is certainly not strong enough to justify the strong premium. what we think is happening is the smelters, the people who produce within china, are refusing to sell with

as a major factor for the chinese economy. i think it may has and him -- a currencies, and it may cause some peripheral emerging-market currencies to weaken further. this time around, a lot more is discounted ahead of that happening. scarlet: thank you so much, rod smyth, joining us from richmond, virginia. coming up, vice president biden, is he inching ever closer to launching a presidential campaign? that story is next. ♪ scarlet: welcome back. i'm scarlet fu here with mark crumpton. about 45 minutes or so before the closed her how do we look? in that are still worse thenand expected, china data has been hanging over us. here in the u.s., investors are cautious's -- as we head into the september fed meeting. you can see on your screen the markets are generally speaking down. there are a few gainers. let's head to the bloomberg terminal to want to show you lonely leaders on the dow right now. you can see here that apple, johnson & johnson, merck, and caterpillar are the sole standouts. the others are all in the red. a closer

not to be too sanguine, not a good indicator of the chinese economy.he second is the intervention on the currency that was a misstep by the chinese government. and we are bringing down a forecast on that. not leading to recession. the third is statistics you mentioned, the slowdown in the industrial sector in china. the story there is not the same as 10 or 20 years ago. services is driving growth. you will see about electricity output and freight volumes which are going to be less good than we saw in the past. it is a smaller sector of the chinese economy. services now are half of china gdp. that's the sector to watch. alix: fascinating. as we see here in the u.s. part of the citigroup note was the powerhouse that china is, there's a ripple effect to other countries. look at my bloomberg terminal, it takes a look at the global trading partners for anyone country. you can see the u.s. is most exposed with about $620 billion. $620 billion. other struggling countries as well. brazil has $92 billion worth of exposure. russia, $93 billion of exposure. those

it should not be the whole picture of the chinese economy. the new cabinet of australian prime minister malcolm turnbull will be sworn in today. scott morrison is the man in charge of australia's economy. let's speak to michael heath now in sydney. what are the challenges facing the new treasurer? michael: where do you begin? he has a lot on his plate. the main one is china's slowdown. australia is incredibly dependent on china. he will have to try to refocus the debate on generating growth domestically. the prior two years, not a lot has been done in terms of reform. basically, he is going to need whereiculate a narrative growth and jobs will come from in the economy. mining is starting to wind down. he is going to have to fit his proposed reforms into the narrative. australia's tax system has not had a lot of reform. had a consumption tax 15 years ago and prior to that, not much has been done. industrial relations, they need to free up the labor market a bit. the other issue is that the country needs to look at innovation. it is going to nee

the report from the chinese economy. know is the you biggest developed market exposure to the chinese story. media stocks are doing well. some resource related shares were declining. at the-- a quick check currency market. this is what we have on the japanese yen. we are seeing a trade at 119 .95. a significant move there. it is about a quarter of 1%. watch this move with the japanese yen in the wake of the bank of japan's decision. talking -- checking in on the aussie dollar. we see a reaction to the significant leadership change. yesterday'ss to news as well. thank you very much. guy: to the car show now. the world's biggest car show kicks off in frankfurt today. 200 world premieres of new car models. international automakers plan to outdo one another to make market inroads. our international correspondent is behind the wheel. hans nichols joins us now from this event. china is the big dark cloud. it is a dark cloud but , the ceopoke to martin of volkswagen, he says he expects a normalization in the situation of china.

he says the chinese economy is growing at 7%.he fact he talks specifically about the stock kind of thing that you would expect a secretary of state to start? betty: this is much more important than china. market ish the stock something like 1% of the entire gdp in the entire economy, it cannot be it nor that the entire world was watching in the shanghai composite. you happen to be australia or any commodity producing nation -- affects every single part of china. we will have much more about interview. pimm: is sure to watch betty liu's special. it is entitled behind the wall. an interview with one of china's most senior state officials. it premieres 9 p.m. eastern only on bloomberg tv. it is time for today's options insight. let's go to julie hyman. julie: let's take a look at what stocks have been doing this hour. we have seen the fed induced step -- fed induced selloff. stocks are bouncing up off the lows of the session. fromng me is dan denning chicago. dan, we are seeing this selloff on the fed. marketsthe options the fed dec

with efforts to rebalance the chinese economy, right? exactly. for the nonfinancial chinese corporations in the past 12 months, a record high. that's the size of the economy of indonesia. that is despite li keqiang's efforts -- shery: how is the outlook? >> it is not a very bright picture. it is more than double the amount of yuriko. -- amount a year ago. adjusted for market cap, it grew to a six-year high. 11 companies had a ratio exceeding 1000%. shery: that's not good for these corporations. we have global headwinds, including the glow down -- including the slowdown globally. >> and exports in august were declining for the second month in a row. we saw the official pmi was the slowest reading in three years. fixed asset investments was lowest in 15 years. that's adding to the headwinds. also, bank funding costs for private, smaller companies in china were down 17% versus the benchmark rate of about 4.6 per -- 4.6%. shery: is this going to exacerbate the pessimism? >> exactly. if you look at banks, it is the highest in a few years, and banks are

but people are looking at this as a sign that the chinese economy is bottoming out. credit is starting to flow again. interesting really indicator. i think that there are other indicators that are interesting, like if you look at the article put out recently about the chinese playbook. looking across thousands of companies, it looks like things are getting a little bit better, and if you look at the bloomberg beginner that has been doubled in past few months as well. butto monitor those things, there is a lot to do in the long term. alix: dan, you are sticking with us. joe: coming up, what is this a chart of? it is an emerging market currency that is getting crushed. we will tell you what is after the break. ♪ alix: i'm alix steel. joe: and i'm joe weisenthal. alix: we showed you a chart of something that has slumped the most since 2008. worldt is the best-performing currency this year. it had its biggest day drop in seven years today. the country is getting crushed by the commodities. glencore canceled a major project there. it is a total rebel effect. let's get rig

this might be a sign that perhaps the chinese economy is bottoming out. ah, that's an interesting indicator. there's other indicators that are very interesting. there was an article put out recently about the chinese beige book. looking across thousands of companies, it looked like things were getting better. if you look at the bloomberg monthly china gdp indicator, that moved up over the last few months as well. there's still a lot of risks in china. dan suzuki of bank of america merrill lynch. joe: what is this a chart of? it's an emerging market currency getting crushed. joe: "what'd you miss?" alix: before the break we showed you a chart. joe: the world's worst performing currency this year, it had its biggest date drop in seven years today. the country was downgraded by moody's,. totally getting crushed by the commodities. glencore canceled a major project there. it's a total wreck. alix: that is what happens when commodity prices sink and producers have to shut their doors. let's get to the top headlines this afternoon. royal dutch shell is halting o

in china, there is a slowed down on the investment side of the chinese economy.it is partly induced by the chinese government. they are trying to pull off this transition to consumption driven growth. we are right in the middle of that transition. what made markets nervous about china is the deception of policy errors in china, the encouragement of the stock market, and the panicky rescue effort. a lot of it has to do with the credibility of the policymakers. rishaad: how much credibility is left in that case? hasstopher: beijing credibility amongst investors. the problem is some of the credibility has been reduced. investeda lot of faith in chinese policymakers. in terms of the currency, many people have been interpreting this move as a sign of panic driven by the week data -- weak data. the primary mover was china's ambitions to get into the market. that was the prime driver, not the weak data. the markets thought it was driven by weak data. as a consequence of that, i believe the chinese government is now going to be much more aggressive about implementing cap

now speaking at the west summit, premiere league said he was comp ten that the chinese economy would overcome recent jitters. >> there are signs that economy is sliding out of the range. we have adequate capability to deal with the situation. the chinese economy will not head for hard landing. >> jeff is at the world economic forum. jeff. >> yeah, hi. i thought it was a fascinating speech in the round. i think premiere li did what he had to do which is come to this event and use it as an opportunity to try to settle some nerves and clearly again with the inflation data and the ppi number what we see is a continued risk to the down side for the overall economy and some challenges as far as deflation is concerned. but i think also he had to come here and talk about the currency. so we got a message on what the chinese government intends to do with regard to managing the currency and is there any prospect they'll try to devalue it. let's listen in to what the premiere has to say. >> china is such an open economy and traders take such a big portion of the economy. exchange rates more mark

. >> the big drag on business activity in japan is weakness in the chinese economy. >> i think that the chinese government and the authorities are now taking place at a lot of majors, such as the policy expanses called majors and also a devaluation of the chinese yen. but if this is a case, the chinese companies cannot avoid the corporate structure adjustment. i think that the chinese business activity is likely to get weaker going forward and also japanese companies and also the export activities will go into japan are likely to take a negative impact by the sluggishness of the chinese economy. >> more japanese people are buying their clothes online. that means fewer customers for department stores. now, major china operators are trying to regain lost clients. they are tapping digital technology to bring shoppers through their doors. managers are experimenting with a so-called digital mirror developed by a u.s. venture firm. one is installed at their store in tokyo. customers put on an item and can try on different colors. but it's a virtual experience as the clothes don't change. the

. >> xi had positive words about the chinese economy. he noted it grew 7% in the first half of the year despite facing downward pressure. he expressed confidence officials will help nurture growth by kroeting new development models. the state run news agency reported a number of chinese companies have sealed a deal with boeing. to buy 300 passenger jetliners. he also reported a chinese aircraft manufacturer has signed an agreement with boeing to build a 737 jet completion center in china. the report came before the president's visit to the main boeing plant near seattle. xi is scheduled to told talks with u.s. president barack obama on friday. >>> officials at the u.s. defense department have revealed an issue of concern between the two countries. they disclosed that two chinese fighter jets last week made an unsafe intercept of a u.s. reconnaissance aircraft over the yellow sea. >> one of the maneuvers conducted by the chinese aircraft during this intercept was perceived as unsafe by the rc 135 air crew. >> they revealed the chinese fig

he added the adjustment was minor. >> translator: the chinese economy is being managed within a rationalange, and the country's trade surplus continues to grow. there are no grounds for the yuan to weaken continuously. >> investors on the foreign exchange market have been selling the yuan against the dollar on concerns over the future of the chinese economy. market players think li's comments indicates beijing intention to top the yuan from plunging and to keep its rates stabilized. let's see how the markets are doing after a stellar performance yet in tokyo. we go to mayu, we saw prices sky rocket on wednesday, something we haven't seen in many years. so how are stocks doing this morning? how's that following on? >> well, good morning, ramin. we're seeing markets taking a breather after that huge gain you mentioned. investors are taking some money off the table. so let's go to the opening levels here in tokyo this thursday morning. the nikkei is opening down 3%, and the topix is down 2.6%. but given yesterday's 7% gain, maybe the 3% loss is not that big. ramin, just to recap, the nikkei

analysts say the collapse in exports: -- increases downward pressure on the chinese economy. ata. nonfood inflation and factory output prices have been a concern for the economy. u.s. labor data for august bolstered expectations the federal reserve will raise interest rates this month for the first time since 2006. government data showed wages grew faster than forecast, while the unemployment rate declined. the dollar rose on the news, led by gains against south africa's rand and the brazilian rail. treasuries also pared gains. those are the stories making .eadlines in the fx market angie: theangie: aussie dollar is strengthening this morning, but still remains below the psychologically important $.70 level. over the past three months, it has followed the shanghai composite step-by-step in a downward path. let's get over to paul allen in sydney. paul, tell us more about this correlation. paul: the correlation, i can give you a number, is .9, and some would suggest a direct correlation between the estoril and dollar and a shanghai composite. if we have a look over the past few

what has been the impact of her remarks on the chinese economy? nick: i think there are two interesting things going on -- that she acknowledge is that leadership is trying to manage a slowdown to what it calls healthier growth, and she deftness,the word that there was uncertainty about the chinese government's deftness and handling the economy. that confirms questions about whether china's leaders are capable of managing the incredibly complex economy as they faced so many headwinds. janet interesting to see yellen sharing a lot of the concerns that have been raised by analysts that people have been asking. francine: the yuan rose the most in the week, so it is sliding that. -- slighting that. nick: i think you probably saw a reprieve across the board. u.s. dollar,he maybe not quite so appealing as it would have been. it will be a relief to the chinese leadership, which has been spending billions in its foreign exchange reserves to prop up the yuan. it popped pretty high after that decision, so it will ease concerns about capital outflows as the

business and culture into the chinese economy.that the head of the british museum is part of the delegation. they are trying to do sort of a deep integration to take advantage of what they perceive a vast part of the world growth engine. that pretty much explains the message. it's all about bonding. francine: and also, david, it seems that officials who study the feasibility of setting up a london-shanghai stock trading like. david: that is an interesting thing that has just come out of beijing. there's a shanghai-hong kong stock trading link which allows hong kong investors to invest into the shanghai market, and also the other way around. they're going to study the feasibility of it. there are going to be obstacles. there's a time difference. there's the question of what currency any trades might be denominated in. there's a lot of hurdles to get over. , but ite even hurdles goes back to that message of integration. there was another announcement that the people's bank of china is going to issue short-term yuan-denominated bonds

there is uncertainty related to chinese economy and the concerns with the world's second-largest economyovers the work before stocks plunged. positive number or perhaps more importantly, a notable increase in wage growth has the potential to play a role in the decisions made at the federal reserve in just teed of your weeks. weeks.ust two shery: the new star wars movie will not hit the cinema until december but disney is arty looking to cash in on what is certain to be one of the biggest movie events of the year. with all begins with the merchandising. >> it is the middle of the night here in sydney and your star wars fans are lining up for the start of what disney is calling horse friday. friday. thanks to international time zones, the global rollout of toys in the latest star wars saga starts here. the movie is not due out for another three months get it shameless merchandising and know these people do not care. >> not at all. good on disney. >> i'm really looking forward to the new movie. trying to find out a little bit more about the story and what is going on. sometimes there are a

investors want additional stimulus for the chinese economy. so these uncertainties really sparked another global sell-off. over in new york u.s. stocks suffered their third worst loss of the year. all indices dropped nearly 3%. even those that have nothing to do with china. it is sparked by emotion rather than an apparent reason. we need to see more clarity. so we really need to watch out for apple suppliers here in asia especially those inp jaen and taiw taiwan. >> a lot of those key component makers very interesting for apple there. looks like a lot more safe haven buying. tell us more about some of the pairs there. >> buying is definitely continuing as we can see with a rise in the yen. dollar/yen around 119.93 the yen also hit its first week high against the euro today. it is now off its highs, though. the global risk of move is likely to continue today as well. back to you. >> thanks a lot for that, mayu yoshida reporting live from the tokyo stock exchange. >>> one firm has come up with a new way to tackle the serious problem in southeast

restructuring, the chinese economy, moving away from manufacturing. this threat between the chinese stock market and the economy is very curious. i hear a lot of commentary now saying, oh, look, it goes down because the stock market changes. a lot of people aren't examining the pmi, why it is real. there is a lot of truth in that. underneath it all there is this reform agenda, trying to move the economy away from manufacturing and industrial production into something more holistic. guy: did they blow that away by devaluing the currency? peter: i think it was a panic measure, yeah, and their stock market is even more insane. you can't stop the stock market going down. it is still going to be the same point. it was crazily and insanely priced. it is not a reflection of a good economy. the economy is slowing, industrial production told you that. sorts ofall factors playing into it. i don't think it will be a hard landing unless -- guy: so this is a five-year electricity chart, showing electricity consumption. we will get the director to bring this up. thi

new manufacturing data showing a slowing chinese economy smacking down the markets. i am sandra smith. lauren: and six. right here in the u.s. stock futures sinking in a big way. dow jones industrial futures down almost 400 points. the s&p given up 48 from the nasdaq down 112. you are looking at declines. sandra: a lot of traders stock this morning. the trend is still to the downside here with markets in asia. starting off the morning a lot of weakness at the shanghai index closing down 1.2% in the japan the nikkei average moving nearly 4%. lauren: on top of a big side yesterday. stocks under pressure. the ftse open yesterday sinking 2.6%. the cac in paris is down 2.8% in attacks in germany 3% this morning. sandra: oil expected after surging yesterday, crude oil dropping 3% overnight. mounting to nearly 4% as we speak. you're looking at a price of 47 a barrel. lauren: pulled up about nine bucks. sandra: in the currency market, a nearly 1% move monday year against the u.s. dollar. to the upside right now come the rest of global currency mostly lower against the greenb

he said that the fundamentals of the chinese economy are fine, and the chinese currency, as he put itthis is a quote, more or less stable. in those exclusive comments he was trying to address what a lot of the g-20 participants want to talk about in addition to their concerns about the market volatility we have seen from china. it is a message that all of the chinese considers, the bea -- i was20 conference, speaking with one of the chinese businessmen there, one of the guys that has run two of the biggest chinese oil companies, and he said the same thing. we have market problems, but the underlying economy is not as big of a problem as people think. you will see, especially in the last two weeks, you will see a lot of things happening in china where people outside of china are concerned about it. if you look into the details, the fundamentals of the economy, it has not changed much. the only things that people saw was either fearing or scaring about the performance. the second -- of thedamentals economics, especially the manufacturing and industrial sector, they have not changed much

in fact we want the chinese economy to be doing better because when the chinese economy slows down, the world economy slows down. so there is an interesting balance where the united states wants china to trade with us in a fair way, rebalance their economy, build up the consumer part, not so much emphasis on exports at the expense of american manufacturers but we do want china to be doing better and no one is quite sure how to -- how much to trust the assessments of the economy from the government. gwen: i wonder, you spent some time there this year. is it very, very different? >> chinese people and chinese leaders really want their country to be recognized as being on the same par as the united states and any other great power. so those from that point of view i think they are really important. there is an incredible sensitivity in china to yishese -- issues of sovereignty and nationalism. the south china sea, we think chinese assertiveness in the south china sea is aggressive. that's an issue that draws tremendous popular support in china. it the very important to understand that the

the chinese wants people to send more. they want to shift the economy away from manufacturing to consumption, and wants chinese people to buy more stuff, ideally chinese made stuff. nalts say it's a high risk -- analysts say it's a high-brisk strategy. >> ahead, we'll be in singapore, where the election is shaping up to be the most hotly contested in the 50 year history. and we'll be in venus as the film festival avoids the sinking feeling, riding a wave of cinematic change. brief, a fast paced look at the stories shaping your day. >> sending a strong message to the rest of the world. >> stories with impact. news with importance. >> people gotta have water. >> get a first hand look with in-depth reports and investigations, and the latest from the worlds of science, tech, health and culture. no matter where you are in the country, start weekday mornings with al jazeera america. open your eyes to a world in motion. this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast

we heard the deputy governor of the central bank saying they still expect the chinese economy to growout 7%. one eu official we were talking to said that vantage point, the visibility of how the chinese economy is going to continue to grow and what policymakers are going to do is something the officials have really not gotten here and that is something they would like to get. there are going to be more meetings between central bankers and finance ministers the chinese delegation later today and they are going to want a lot more answers. >> the question this summer from markets in the u.s. has always been what is more significant, in the- is the weakness shanghai composite, or is it the possibility of a tantrum with the rate hike in september. how is the fed part of the conversation where you are? >> the rate hike conversation is huge. people are very concerned, particularly the emerging market participants. they would love for the rate hike to get pushed back. they were all listening to the jobs report today. yesterday when we got our hands it mayaft communique, change, but it include