erik nielsen: not enough.umber a gdp produced in europe compared to in china, you use much less energy. more energy efficient in europe than the big emerging markets. for the same gdp of three and a half percent, a bigger is produced in europe, commodities will be less. as then what you are seeing in the markets right now. and the markets -- john meyer: at the markets are adjusting. we have seen that and the price. where do we bottom out? to the asianack crisis 15 years ago, it did not last very long. we are expecting to see china restimulated its markets and put itself back into a firmer growth in industrial production going forward. we have not seen it yet. we'll see them tinkering with lending rates and liberalizing that end of the market. and clearly supporting the stock market which is maybe 5%. those are important to moves. want to we are hearing is they want to continue with that strategy of restructuring industry and floating that into the marketplace. francine: what's your forecast for china gdp? it i

let's talk about that with erik nielsen.na and all the turmoil we have seen in emerging markets you still believe janet yellen will raise interest rates? >> yeah, i think the time has come. they have announced it so many times. they would never preannounce. but they have indicated that liftoff is coming so well now so you can't say that. i think they ought to have increased since we talked last time. francine: are we looking at a possible hard landing from china? when you look at china and it is difficult to read, why not take more time? r >> 25 basis.s is not a lot and they are looking at the u.s. economy. what would the impact on the u.s. economy be? if you multiply probability of something bad, it is quite a small risk that the u.s. gets in trouble. anything is possible. francine: you're expecting a rate hike and then flat lining? in six months what happens? >> i think they are behind the curve and therefore i think they are going to hike -- the path is going to be steeper than they say and steeper than what is priced. th