david wu over at bank of america verily joined us last week. here is what he said.e are now about four years away from the parade to celebrate the end of the war. presumably why the stock market -- why the chinese started to intervene in the stock market. certainly base our respect is very important in china. into thepride going victory of japan they within china. it's known as the war against japanese aggression, so a lot of national pride. we are also seeing lack of support within that mid-cap and small-cap. so some sense of normalcy is returning to the market. scarlet: what does that mean in terms of what the government does next? is it taking stock of how intervention has worked so far? defense,k in their foreigners have no way to access the shenzhen market. names were always kept trading. so they knew there was no foreign value investor coming in to keep the market from completely collapsing due to the extensive use of margins. they did prop it up. now they're letting that market go, and it could shoot to the downside for valuations. the large companies are get

kali david wu will join us on the currency markets. it is pretty quiet this morning., futures up one. quiet future as well. gold, 11.04 grounds. -- per ounce. ♪ brendan: australia has a new prime minister. the liberal party on australia's finishing internal vote. in mcdonald's joins us from sydney. .alcolm has just been sworn in he promised a more intelligent and honest conversation in the economy and what does that conversation sound like? >> that is a good question. the vote was held a short time ago. tony abbotthere his ability to produce some kind of economic narrative that voters would understand. is now what malcolm saying he will do it he says it is an exciting time for australia. plenty of opportunities but of course a lot of challenges. he says what he needs to do is to explain to people how to make the most of those opportunities and how to work with challenges. brandon: i am looking right now at the trade balances with various countries. china's exports in the first quarter -- australia's exports to the first quarter to china are $16 billion. that is basica

alix: that was david wu, the outspoken as always.veillance team earlier in the day. staying on the markets and the is myoining me now cohosts on "what did you miss?" excited to talk to him. >> he thinks the fed probably will go in december. that is a big call. obviously, when the chief economist of goldman sachs talks, everyone will be. this was a long dated call. >> that is exactly right. he was always december. people thought he would capitulate. now a lot more economists have gone toward him rather than the other way around. alix: goldman sachs financial index takes a look at stock moves, to see if they need tightening. it has increased 2%. the third biggest move in the past three decades. have them andnks they all try to capture exactly what you are talking about. credit spreads, the stock market and the strength of the dollar. they are going in that direction showing there is tightening. there are two schools of the view here. one is that the fed does not have to tighten. others say the fed cannot because the markets are tighten

merrill lynch's david wu disagrees. >> i think the international evidence are sort of overtaking the.s. fundamentals here, especially with what is happening in china. if they were to hike in september, i think it will be a mistake. scarlet: what do our resident economist say? here with us is mike mckee and chief economist carl cricket on riccadonna. is the fed moving because it is afraid of making a mistake or getting ahead of itself? side itu can pick what could be on because it is such a close call. carl: i'm going with the fed holds actually. we have seen over the past five years several central banks raising rates and then having to backtrack. this is a very dangerous policy mistake and there is limited ammunition to reverse course if the fed needs to. they do not want to go down the route of additional quantitative easing. the fed is want to air on the side of caution and hold off to see what extent of negative feedback into the economy from recent developments in fact are. as of late, it looks a little bit troubling. we had a big pullback in consumer sentiment last friday. in t

david ushery reports from new york. >> granted it wu aas always goi to be a friendly audience but tonighthe garden rocked. they came, they saw and they cried when they witnessed this, the pope stopping his golf cart touching a sick little girl make her father weep. moments, moments that people inside the garden won't soon forget. >> the audience just couldn't stop cheering. every time we stopped, there was screaming again. >> i couldn't contain myself. it was just amazing. >> touching, moving, emotional, beautiful. >> he just is a true man of kindness and hope. >> for his last big moment in new york, francis did what church observers says he like to do for two people or two million. he said mass. in his homily or sermon, a message for the world and new yorkers, in big cities life can be tough and the homeless, the elderly, the sick can fall through the cracks. don't forget them. >> it's going to affect a lot of people in new york to do better, no matter, you know, what race, color, creed, religion you are, he's very empowering and i think he tries to encompass all people. >> at the end of