. >> even china is unused to scenes like this. sudden and deadly explosions jolting a busy port. large firele balls incinerated buildings and cars. some people say it felt like an earthquake. >> i was sitting, after watching a film. i had my window open, and i heard a rush of air, followed by a second much larger rush of air sounding like a shock wave. i looked outside and saw the smoke. >> officials say the multiple destinations were caused by exploigss in the warehouse, close to a residential area. others describe hazardous materials. at first, local hospitals struggle to cope with a tide of injury. it feels like a disaster zone. people that get out are leaving, what worries the authorities is the air may be contaminated. no one nose what is built in. >> officials believe it was an industrial action. an inclusion zone has been imposed where the investigation into how this dent happened has begun. police say the owners of the warehouse where the explosions happened have been detained >>> the explosion cams as china let's the currency fall for a third straight day. right now asia

it was a higher than even china's figure. they expect india's grooet growth will remain strong. >> i think it's the highest consumption, fern investment, foreign inflow has doubled and it is strong. however, the bunk lending is is not improving despit they have cut the interest rates three times there area. also, it's a great product despite these families p. >> last week stockmarkets around the world went on a roller coaster and the price of crude oil sank to six-and-a-half year lows. the economy will be affected by the market moves. >> one ting, they have dropped r. the indian economy is dependent upon the import of oils and other qualities. global prices are going down. for every group, half go to the government. half to the private success. it's in good form if india. >> that'it for this hour. james, we'll hand it back to you. >> thank you very much for those updates. >>> japan's foreign ministry is looking at documents that brought them to world war ii for the first time in two decades. the original japanese instruments

. >> reporter: even china is unused to scenes like this. sudden and deadly explosions jolting one of the world's busiest ports. large fireballs illuminate the area, incinerating buildings and cars. some say it felt like an earthquake. >> i was sitting after watching a film. i heard a rush of air, followed by a second much larger rush of air that sounded like a shock wave. i looked outside and saw the smoke. >> oinitials say -- officials say multiple resignations were caused by materials stored in a warehouse. others disclosed hazardous materials. first, local hospitals struggled to cope with the tide of injured. this feels like a disaster zone. people that can get out are leaving. what worries authorities is air may have been contaminated. no one knows what they are breathing in. officials believe it's an industrial accident. where an investigation into how the accident happened has begun. police say the explosion has been detained. 12 hours after, the fire is burning. fires struggling to bring the fire under control. the shockwave was spre

. >> reporter: even china is unused to scenes like this. sudden and deadly explosions jolting one of the world's busiest ports. some people say it felt like an earthquake. >> i was sitting after watching a film and had my window open, i heard a rush of air followed by a second much larger rush of air that sounded like a shock wave. i looked outside and saw the smoke. >> reporter: officials say the multiple detonations were caused by explosives store in a warehouse close to a residential area. others describe hazardous materials commaterials combusti. local hospitals dealt with a tide of injured. people who can get out are leaving. what worries the authority that the hermes have been contaminated, which means nobody know what is they are breathing in right now. officials believe this was an industrial accident. an exclusion has been imposed where the investigation into how this accident happened has now begun. police say the owners of the warehouse where the explosions happened have been detained. >> a few minutes ago adriane sent this updat

and beans and coffee mostly come from the united states, neighboring latin american countries and even china. the main reason: puerto rico's agricultural sector is dismal, representing less than 1% of the island's gross domestic product. >> reporter: carlos reyes- albino, one of the co-owners of the restaurant, says the island's dependence on imports makes it dangerously vulnerable to any unforeseen event threatening its food supply. >> reporter: in fact, puerto rico's agriculture secretary warns the territory only has a one-month food supply on hand. so the government has implemented a plan to re-develop the island's agricultural sector, providing farmers with subsidies and new equipment. already, in the last two years, puerto rico has seen a 25% increase in agriculture revenues and 6,500 new jobs. the restaurant el departamento de la comida is also trying to engage more local farmers. >> there's a lot of variety here there's anon, there's grapefruit. >> reporter: farmer daniel cadenas has been providing the restaurant with organic produce for two years. >> i think it's really positive what

if you get zero earnings from china in bmw, the share price is still worth 91 euros per share, higher than this. even if china is zero. they feel the market got overzealous at the selling of bmw. airbus, we get some news out of airbus. 1.6%. order, 250 coming from india. even though we saw 9% growth in sales and profit, bovis homes getting a bit of a selloff. mark: let's go to juliette saly in hong kong for a look at markets in asia. juliette: good morning, mark. it is the end of the trading day here in asia. we are just seeing the close of the shanghai composite and hang seng. a bit of a mixed picture. mainland china stocks close higher, up around 0.75%. a lot of other chinese stocks are in the red. 0.6%.ng seng closing down the china enterprise index at any month low. meaning a lotan of foreign investors are pulling their money out. the weaker ringgit weighing on the malaysian stock market. the worst performer in the region. througheakness coming in india, singapore, the philippines, and have korea. the nikkei off around 0.5%. just before i go, i will quickly show you how the malaysian ringgit is f

though china is, trails the united states in military capabilities across the board and even though china cannot project power very far off its shores, combat power in the same period of time, it is a major power already in east asia, and it can raise costs to forward deploy u.s. forces and u.s. allies in ways that could easily destabilize the region that matters a lot to the united states and a lot to the rest of the world. so the main point is that china is not a peer competitor of the united states in overall power at this time, but you don't have to be a peer competitor of leading power to pose all sorts of challenges for that power. if you take geography into account, politics into account, if you take psychology into account, you realize that a lot of security politics are not about great wars or survival like world war i and world worlr ii, but are are about more limited aims of actors in specific contexts where the ability to raise costs to stronger actors provides real course of leverage and creates real course of problems for that stronger power. and that's the big securit

also, headhunters use it to find recruitment for silicon valley in china and some people are even usingas a dating app. the local adaptation of these apps is amazing if you look at it. emily: so, wechat is huge in china. $.10 blocked uber from we chat. -- tencent locked uber from wechat. what is the chance of uber china's success? lulu: they blocked uber from a public account service -- that is the equivalent of an account company sell up, so fans can follow their information, news releases. in terms of messaging, they can still do that. but wechat is very popular in china. traffic is through the roof. being blocked on tencent is something of a setback. they are trying to compensate for having this cooperation with baidu. it is a cop edition for capital and talent in china. emily: what about the market? i mean -- can uber be the uber of china, or just the lyft of china? lulu: it depends how fast they expand. uber wants to be in at least 60 cities. you can have the comparison there. if they have the local expertise and navigate the regulations on the ground, they might have a chance. emi

even in china, the arrival of the superfortress is an occasion for everyone to turn out, and curiosity welcome. is onlyme now, but it the beginning of another bigger journey. the tanks would have to be filled, the engines given a final check, the bombs set in the rack, and then briefings. the assembled and men will listen to words that a few years ago would have been fantastic, but today roll casually off of the briefing officers went. the target, gentlemen, is japan. [captions copyright national cable satellite corp. 2015] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> we continue now with our look years since the bombing of hiroshima and not a sake. in the event with two survivors aboutrican university is one hour. code coordinator of the --

for instance, one of the most salient case of china mobile phone factor -- [inaudible] even the fact china is one of the most biggest markets. high-tech firms still remain, but the general situation is changing now. taiwan's equipment manufacturing model is now facing a dire threat in the form of shrinking private margins and the rise of chinese domestic manufacturers. their own brand manufacturing model of i.t. production is constrained by the lack of marketing in the global logistics capacity. so the up and down like htc reflects the painstaking losses of the taiwanese odm model of factors. extension of the case like fox, empire provide under the model that goes beyond medium-sized enterprise model of the open. a lot of problems or issues on the fox com model. so the rise of china's domestic manufacturers also threatens the position of the taiwanese lenders being, for instance, apples iphone supply chain. the potential rise to replace taiwanese firms position is a reflection of the strong support of indigenous firms from the chinese government. so in addition to chinese government i

china are going to face smaller corporate profits. emily: it is interesting, companies like facebook, google, twitter are not even in china because the government has locked them out but what about these other companies we are talking about here? guest: it is enormously important for apple and qualcomm. china is 12% of their revenue. the devaluation is going to reduce apple's revenue in dollar terms by $30. how does apple compensate? it has to raise the price, which is difficult to do because they were at the top of the market and they are facing competition, or the business becomes less profitable for them. the additional problem is the chinese economy is slowing. we are in a bad period for luxury consumers. they are selling between $900 and $1200. these are luxury products. apple needs to penetrate more markets in china. they're going to have trouble selling those phones pretty have been selling well in beijing . emily:. china accounts for a quarter of revenue as far as june goes. let's talk about what it could mean for longer-term demand. the iphone is $300 more expensive for consumers. you have the smartphone market saturating. c

deccan also be said for the united states and china is a developing country with the legitimacy on job creation and to point to the history of climate change even though china produces more and boca a per capita basis united states citizenry has produced more than china that will continue for a long time. because it produces so much now but to say it is 1. 3 billion people average per capita income is $9,300 that is the same as ecuador nobody is asking ecuadorian is to make things happen. why are the chinese asked? because there are so many chinese and it is such a big country say you should convince china that if they are not solved there so integrated with the world that you are as well. . . >> people who support the regime in china agree in this notion. it seeks national greatness through cooperation rather corhersion. we need a strong alliance in the region. the purpose of that presence is not to keep china down. not to take away things that china cares a lot about. i think we had successes on this during the george w. bush administration. it was successful in doing two opposite things at once and stabilizing the situation across. that was

their survey of bank nationals especially on college campuses or organizing demonstrations and even chinaali lama. they are doing it on american soil. we have known this but yet we have not done anything. so they continue course of conduct because there is no cost. lou: what has changed with the u.s. perspective? the business roundtable, the academic elites are driving china tied anti-neck and though we see something of the rupture as a result of what? >> the chinese really have gone too far. the way they describe it is a small country to talk about respecting the sovereignty of what the chinese are doing is the grossest violation of the sovereignty. at some point they did cross the red light and perhaps the administration has recognized that. >> and the president became the ruler in 2012 and took on everybody including the ford business community so they have less of an interest to support china and the economy is not doing very well so they are becoming much less important for american companies. put that together with this change. lou: and these conclusions conclusions, what you say is

. >> it's a worldwide phenomenon, and even china, as we know, what's going on there?> so china said that it arrested 15,000 people for alleged cyber crimes, part of the six-month-old probe called operation cleanup. and the government said 74 chinese doc cases, hacking personal and financial data. and china's internet is tightly controlled and regulate bid the government. and the government has long been accused of hacking into u.s. sites, everything from corporate spying to military espionage. and china, i had interviews with chinese officials and they always deny those claims, and they say it is the victim of u.s. cyber attacks. >> what else do you have tonight? >> this is an interesting show. we're talking about the talk that african-american parents have with their children in america, and how that talk is changing. researchers suggest that it's becoming more ominous with encounters with black men and the police, more of the jim crow era. so instead of the positive and dag what you can, it's more keeping a low profile with the police. somebody says that's a lot of

even china as having attention that it can can still improve the situation.are reasons still to be as dark despite the generation they have been quite present the last few days. lauren: thank you for joining us. appreciate your time this morning. nicole: gyration, volatility. yesterday up for 45% after 118% the week before. a look at the asian markets. one area going down as the shanghai composite index down 7.6% down for the third straight day. they look at the nikkei, the other two without barros. european stocks that ftse, cac and dax joining more than 2% hovered around these levels. they are right there. lauren: after five straight days of losses in the u.s., this is how u.s. stock market futures this morning. at the aeros across the board of 477 points more than 3% for the s&p at 3.5% for the nasdaq this morning. you've got commodities for us. nicole: the dow up 500 points. expect a busy day. commodities 3925 comic in a 2.6%. twenty cents at 1147 a tryout. let's look at the currency quickly. we did see the euro is dropping against the u.s. dollar. lauren

china. it could very well be even lower than that. if i'm wrong, and i could be because no one really knows where china is, it will be there in a couple months. because what we're seeing is a severe deterioration in the economy. there's the devaluation, there's the plunge in the stock market, but most important there's the money coming out of china. there are various estimates, somewhere between $520 billion to $800 billion in the last five quarters. that's a lot of money. that's the chinese people voting with their feet. that's what basically they're saying is, this economy doesn't have a future. alix: we spoke to head of global rates and currency research at bank of america merrill lynch yesterday, talking about china's stock market and what's going to keep it rising in the near term, though. take a listen. >> people are not realizing, with four, five days away from the parade in beijing, the celebration of the end of the second world war, presumably the reason the chinese started to intervene in the stock market directly is because

. >> basically, it's worries about china's economy and china's market. >> even the markets are exciting to watch. they don't represent the whole of the economy. try not to get mesmerized or nauseated by political nonsense. >> the president of china is coming. a man named xi jinping. >> the united states has a big economy, it's deep, resilient and more or less stable. >> do you know xi jinping? i've never heard of him. i don't know who he is. >> vice president joe biden held a private meeting with elizabeth warren. >> this is the story that's electrifying washington. >> republicans and democrats are laying out their agendas. >> biden would be 74 years old at inauguration. that's older than president reagan was. >> my 95-year-old grandmother still drives to work and goes to work, so she would consider joe biden a young chicken. >> he's the original authentic candidate. >>> the markets in asia have just opened. the shanghai index is down 6% right now. this comes one day after what's being called china's black monday. it was followed by drops in markets around the world. here the dow fell 5

even china rallied going into thursday's session. we jumped almost 300 points from the get-go and stayed higher bolstered by a 10% run in oil of all things. the biggest one day gain in crude in six years and the sorriest most damaged part of the stock and bond markets energy. it seems counter intuitive but we must always be on the look out for a credit event. some firm or firm gogs bust because they have been betting the wrong way. we never know until it's too late. like the demise of long-term capital. a hedge fund that produced a 20% decline in the averages. if another event like that is lurking it would be in commodities. it added those fears hence another lesson. bad bets from gigantic firms can produce such huge losses that they can bring the whole house down: when the stress is relieved we can rally and stanley fisher told steve leisman what was said on wednesday. decide whether to raise rates in december. they were not much lower and they rebounded. dudley's comments were made in decline and turmoil. maybe it doesn't matter. t

. >>> even before china's economy helped tank markets worldwide, u.s. businesses knew something was wrong. that's coming up. >>> and it was not a fence jumper or a car with weapons but a helicopter near hey terry stop! they have a special! so, what did you guys think of the test drive? i love the jetta. but what about a deal? terry, stop! it's quite alright... you know what? we want to make a deal with you. we're twins, so could you give us two for the price of one? come on, give us a deal. look at how old i am. do you come here often? he works here, terry! you work here, right? yes... ok let's get to the point. we're going to take the deal. get a $1000 volkswagen reward card on select 2015 jetta models. or lease a 2015 jetta s for $139 a month after a $1000 volkswagen bonus. >>> today prosecutors in paris open add terror investigation into a thwarted attack on a high speed train. they have learned more about the suspect from morocco. >>> a man wrestled the ak-47 away from the attacker and he was shot. spencer stone acted quickly. >> he was squirting bl

and then -- so one of the big drivers today, in this rebound, is china moving in to cut interest rates to help boost the economy. but even before china did that, we did see markets in australia, and europe, rebuild. one of the traders was saying look, yesterday's close was actually encouraging. >> right. >> because it could have been a lot worse. that wild swing at the open yesterday, that's scare add lot of traders and they knew that it could be far worse. >> okay, what about confident heres? they hate uncertainty. >> uncertainty, instability. >> and they welcome these moves from the stimulus by whether it's the chinese government, the u.s. government, but at the end of the day, china's move, this cut is the fifth rate cut since november. so -- you know, one trader was telling me is this a band aid. >> how much is left in the tool kit. >> right. and how -- just the exact state of china's economy is unknown. >> because it isn't terribly transparent. >> correct. so that's another big fear too. >> all right, we will watch that throughout the course of the day. it's been a long 24 hours. mary snow with us, so a short time a

millions of people in the asia-pacific region, from south korea and japan, and even many parts of china, people who just decades ago lived in poverty and despair now live in the middle class. their children have the opportunity to live an even better life. that is an extraordinary achievement, but one that would have been impossible without the stability american leadership has offered in the region since the end of the second world war. through freedom of the seas, through established international norms, and the military power to approximate a the american century shows us what had happened when freedom overtakes oppression. when democracy overtakes is totalitarianism. we cannot walk away from everything we have achieved in that regard. we must not overlook the fundamental fact about america's relationship with china, what is at stake is nothing less than the type of world that we will leave our children and our grandchildren. in the world we leave behind, what nation will be the dominant example for the world? a country like modern china, or a country like ours? that is what is at st

this evening, china's state council announced a nationwide inspection of hazardous chemical storage sitesoodruff: local officials have said smoke from the fires is not contaminating the air, but people in tianjin could be seen today wearing breathing masks. eurozone finance ministers met in brussels today and gave final approval to a third bailout for greece. hours earlier, after an all- night debate, the greek parliament backed the draft agreement despite a rebellion by members of the ruling party. the deal requires new cuts in public spending and tax hikes in exchange for $93 billion over the next three years. greece also got relief on another front as a cruise ship arrived at the island of kos to ease the migrant crisis there. the huge vessel will serve as a floating screening center and temporary shelter for thousands of syrian refugees. they're awaiting official documents in order to travel elsewhere in europe. in japan, the prime minister today acknowledged the pain his country inflicted during world war ii. but, he stopped short of making a fresh apology. shinzo abe's statement mar

we've fallen behind europe, japan, even china.e can take an enormous amount of trucks off the road using the rail system. we need to be weatherizing homes all over this country. buildings as well. we have seen huge growth in solar, despite opposition's from republicans in congress. we need subsidized tax credits for sustainable energy. for my mind, saving this planet for our kids and grandchildren from extreme weather disturbances, is a huge priority. i would invest very heavily in transforming the energy system. senator sanders: -- javier: i would argue the point, but since you brought the pope in on your side of the issue. [laughter] so, on to race relations. let's talk about this. first, by the way, i want to commend you for your long-standing proven track record and the work you have done on promoting civil rights and equality. like you, the ushcc believes in fair treatment and equal opportunities in all communities. that said, given the recent protest, as well as the criticism you have received for your response to those prot

it's going to be even -- china is the biggest export on all of the top 10 on the list.k you for that. of some of the other stories making headlines. reports from indonesia say wreckage has been found from an airliner that went missing. crew wereers and five bored when it lost contact. -- were aboard when it lost contact. heavy rain and poor visibility were reported in the area just before the plane was scheduled to land area land. we could see oil rise to 33 million barrels a day according to iran. that would add to the existing global supply glut which has led to a collapse in prices of the past year. in november, opec decided to maintain production rather than sacrifice market share. coming up, a market calm, but for how long? we will discuss. stay with us. ♪ angie: checking some of the stories making headlines around the world, the number of people killed in last week's violence in the prison rises to 112. -- warehouse explosion rises to 112. businesses have been severely disrupted. toyota says three lines and its chinese plant will be shut until at least the middle

of people here on wall street, and they don't really see a currency war yet between china and the united states. even politically, hardly anybody is calling out about this point. if you look at china and the united states, economically they are so connected that if you look at the lower you want at this point, the u.s. imports much more from china than they export to china. so there is even a positive effect on the u.s. economy if the yuan appreciates more. there's a lot going on on the commodity side of the market. the stock market got a big white or, but crude oil prices dropped by another 2.5% today, reaching the lowest level in about 6.5 years. it has to do with the weaker economic outlook for china. in the past couple of days we had a little bit of a rebound with gold prices because with all the turmoil in china, investors were seeking the so-called safe haven of gold. adverse gold prices actually dropped by about 1%. so definitely a lot of action in the commodity markets at this point. >> that's it from me at the business desk. we will have more for you later on. sarah: security forces have tak

of people here on wall street, and they don't really see a currency war yet between china and the united states. even politically, hardly anybody is calling out about this point. if you look at china and the united states, economically they are so connected that if you look at the lower you want at this point, the u.s. imports much more from china than they export to china. so there is even a positive effect on the u.s. economy if the yuan appreciates more. there's a lot going on on the commodity side of the market. the stock market got a big white or, but crude oil prices dropped by another 2.5% today, reaching the lowest level in about 6.5 years. it has to do with the weaker economic outlook for china. in the past couple of days we had a little bit of a rebound with gold prices because with all the turmoil in china, investors were seeking the so-called safe haven of gold. adverse gold prices actually dropped by about 1%. so definitely a lot of action in the commodity markets at this point. >> that's it from me at the business desk. we will have more for you later on. sarah: security forces have tak

china will open. between now and this evening when china opens around 10:30 or 11:00 p.m. what will happen? will people's bank of china intervene. will it do something to stimulate the situation we have right now. connell: thanks, liz, to our next guest. before we sold off, liz said china fell off 8.5% decline. shanghai composite wiping out all year's gains. robert bloom is based in china beijing. they call it black monday. that phrase trending on twitter, not only in china but here. what happens as liz says, heading into the next trading day in china as you sit. >> there is nothing chinese can do. is this crisis of confidence or crisis of communism. is china too big to fail or too big of a threat? connell: steve forbes is talking about whether china run out of tricks in its bag of tricks. is that your point? >> exactly, they're tapped out. this was promotion economy. china is responsible even for the 2008 crisis because they subsidized inputs, all the industrial inputs. even wages, all low-cost inputs that created excess demand, artificial demand. they pushed up oil prices and pushed up in

china wasn't even open.and i said it once before, if you leave yourself -- now, those who bought puts more than likely made a ton of money. so there's two ways of looking at this. but when you allow your market when it's closed to be completely moved by a foreign bank, probably knowing that the fed might raise interest rates, now the fed can't raise interest rates. and they should. no matter who says what, when you're deliberately being manipulated like that, raise your rates. raise your rates. >> how would you describe your overall faith in the stock market? >> caller: i think overall, the stock market, your one gentleman was correct. if you're going to buy stock, you need to be in it for the long term because there's going to be ups and downs. and i think the front page of the news is right too. this was another black monday. but it wasn't just monday. it started sunday. and it started out of australia, unless china opened deliberately just to manipulate it. because even china was closed. so the only place

the turnaround occurred even though china's nosedive continued. the shanghai index was down another 1.2% wednesday. >> pauley, so, anthony, why the turnaround. >> reporter: one of the reason is the head of the federal reserve said the case for an interest rate hike in september now seems less compelling than a few weeks ago. he said what we're seeing is not a u.s. problem. but markets may stay volatile for a while. on monday when the dow fell more than 1,000 points in five minutes, trading in 401(k) plans, jane, was seven times the normal level. >> pauley: we will stay tuned, anthony. warnings are up tonight for islands of the eastern caribbean, including puerto rico and the virgin islands as tropical storm erika approaches. the storm is pack winds of 45 miles an hour, too early to say whether erika will reach the u.s. coast. president obama flies to new orleans tomorrow to mark the recovery from katrina. it was 10 years ago this weekend that the hurricane tore into the gulf coast. more than 1,000 people were killed, most by the flooding in new or

was now even with china.where near china, and i would have guessed that we would be way ahead of india. we are now just slightly ahead of india. structureet particularly in india, and brazil is also up there, is still not great. what is driving the change? is it phones? candace: it absolutely is phone. in 1995, less than 1% of the population had internet conductivity. today it is 40%. the united states is at about 9%. china is at 25%. india is at about 8%. there are tons of investments that come out of this internet. brendan: such as? the sharing of the economy -- all of those things are not possible without an internet connection. brendan: how does it change when you are looking at a place like india, that still just has 2g phone access, but cheaper and cheaper smartphones where you can perhaps have one per family? what does that sharing economy look like? the big opportunity in india will be e-commerce. if you look at india right now, we are looking at a 36% compound annual growth rate in e-commerce over th

even before china devalued. we had real problems out of of disney earnings.s not getting the subscriber growth they wanted. the reason is the kids are cutting the cord. they do not meet cable anymore because they can watch it all on apple tv and media stocks took a big live. the biggest loser was viacom, which came out after disney, and said similar things said cutting the real deal.s 28% of viacom. 28% of first entry and 15% loss at this. they are still doing ok because they will come out with star wars, and we are probably going to go see that movie a number of times each person in the world a number of times. as far as the winners, i took a look at the s&p, and the top winners were m&a related. forumberger bought cameron $15 billion. it was a hefty premium. cameron one of the biggest winners on the s&p 500. that's also backed out of that. best buy a big winner. wra i amis a little being told to wrapp. thank you so much, matt miller. the s&p 500 set to pose the worst month in three years. our next guest says it will need a couple more days to stabilize. we

there's been an enormous -- and i'm not just talking about china, even outside of china, an enormous increase in credit growth. if no one really has talk about all throughout asia. in fact if you look at total debt, household, corporate, government debt, as share of asia's gdp, unbelievably it is higher now than it was before the financial crisis in 1997. so much of asia, especially east asia, has manufactured growth the past six, seven years, built on a surge in liquidity and debt. a huge story. let's switch to china for a few minutes. given the recent slowdown in china this question is, should the global economy be concerned? the short answer is, absolutely. here's why. china, as you know, is the world's second largest economy. at current exchange rates, $12 trillion compared to the u.s. at 18 trillion. there's no close third. it's now double -- it century's a japan in 2010 and already twice the size of the japanese economy. it's the largest trading nation for 75 countries. and is by far the largest importer of commodities in the world, which is a vital export for many, many emergi

effect until at least 2015. >> "it's inevitable for china, which is right now has a low birthrate, to adjust its family planning policy. it may even be possible that china will encourage its people to give birth to more children, like some developed countries." >> supporters of changing the policy point to the success of a trial program that began in the 1980s, where some families were allowed to have more than one child. in yicheng, in northern shanxi province, families can have a second child if they wait six years after the birth of their first. despite the looser rules, the population is growing slower in yicheng than the province as a whole. and the ratio between newborn boys and girls stands near the worldwide average. >> "in my opinion, couples can have two children. this can solve several problems. first, it can still control population growth... the ratio between senior citizens and the work force will be reasonable and balanced. the aging will not be so fast. meanwhile, we can have a certain amount of labor to guarantee the smooth development of the economy. but for now, the aging population is a growing problem. researc

it's been rallying even before china news was rallying. what's interesting is you're starting to see some oversold conditions pull themselves out. great charts in integrateds. even the drillers and oil service names start to look very good. also the miners have a three-day rally working for them not just gold miners but the big integrated guys. do you buy? we'll talk a lot of technical things with rich ross but the dollar index is now below its 50. i'm not sure what happened to the dollar bulls out there but they're gone. and you this think the dollar can stay lower these rallies can continue. >> i would mention what you just said about gold miners and also energy stocks. they became really bad presses. they were down so much for so long here it became a consensus short trade. and i think when you're thinking about this and f. you're looking at the russell 2000 that has been in a down trend since it made all-time highs in june and we saw obviously what's happened to the dow jones industrial. these have been trending lower. the s&p 500 again

china sees its economy weak enough to make the move with the current state. perhaps investors digested the news as they go through the morning. commodity markets come up oil prices even largest consumers of oil in the world and the weakness could be copper also a lawyer lower. gold and silver to the upside right now. maria bartiromo what you said answers on "mornings with maria." maria: sandra, thank you so much. happy tuesday. i am maria bartiromo. it is tuesday, august 11th. with me, chairman and ceo fred lane & co. chairman mike holland. the first, alphabet soup for google. the online java new-paragraph then java new-paragraph in a called alphabet. the conglomerate will include a vast array of companies that they slimmed down google focusing on its core internet business. also doubled the rent by cofounder larry page and sergey brin. we will have a new ceo. sundar pichai, we will talk about who he is and what is done later on in the program. china's government devalued the sub forever knight and created the biggest one-day decline in two decades for the currency. the shanghai index had little response to the move essentially closing up for the session overnight. o

everyone -- >> final word. >> 5 percent of profits come from china. evenf they cut that in half it is not disastrous. >> eleven you said that. some people mistake this. it's from other overseas. the s&p 500. coming up, tropical storm erika is bearing down on florida. governor rick scott declaring a state of emergency. all the details you can't afford to miss from the fox news whether center for you next. stick around. ♪ ere was no stress. it was in and out. if i buy a car through usaa, i know i'm getting a fair price. we realized, okay, this not only could be convenient, we could save a lot of money. i was like, wow, if i could save this much, then i could actually maybe upgrade a little bit. and it was just easy. usaa, they just really make sure that you're well taken care of. usaa car buying service. powered by truecar. online and on the usaa app. liz: welcome back. it has been a while week for the markets. if you bought stocks like apple, netflix, tesla, you are actually up. we saw fire sale. like a one-week garage sale. when you see the floor put on, t

but when you look at the moves overnight in china, even with the rate cut, they can't get the shanghaite to finish in the green. china. in manus: and when caroline was going through the three top stock movers, the three gaining companies -- you roll the dice in the gaming space. but really, what you've got is a whole view that the china growth story is exporting deflation. the twitter question of the day -- jonathan: i don't mind, please. ok?s: i can pay rent, [laughter] what is the role of central banks in 2015? who's got the circuit breaker? jonathan: please do answer. they join you on the other side of this break. you can follow me on twitter. another choppy session here this morning. the biggest drop since 2008 followed by the figures drop since 2011, then we roll over on the stoxx 600, down by 1.8%. it's only wednesday -- best of luck for the rest of your day. ♪ francine: shaken and stirred. day of trading, chinese stocks extends the first five day drop since 2006. manus: stocks follow the decline. indices across the continent are in the red. francine: all bets are on. betfair agr

china yet. or google. people forgot the huge organization that better breaks out the venture capital portions of google from the high growth, high profits part. that's especially given that google is not even in china and to think we trusted the chinese to get it right. i wonder if they're censoring the financials with so many junk companies. last but not least why not happenel? send an e-mail to tim cook so see if there was anyway to find out if the worries about china were leading to a major decline in sales. falling from $133 last month down to the mid 90s in premarket trading. coke sent me back an e-mail saying the last couple of weeks have been strong for iphone 6. how much stronger can they be when they put cash in the pockets of their citizens or does infrastructure. >> i expect the continue. i slowly -- emphasis slowly, accumulate growth stock with good dividends and domestic security and high flyers although in the case of am it's not flying all that high. there's your list of what you should be buying slowly into this decline but not all at once. if you do that you violate a cardinal rule. expect the frailty of human decision making and adjust your behavior accordingly. >> profes

even with china slowing down and these other problems the u.s. will still have average growth. not brilliant, not subpar. unemployment is still coming down and the environment in the u.s. is conducive to raising rates because, the fed tell, things are now getting back to normal. in that scenario, wolf, it -- some would say -- i've no doubt there are people calling it a bear market but there's no reason to believe that at the moment. >> richard quest staying on top of the story for us. we'll stay in close touch with you, richard, thanks very much. >>> other breaking news we're following, north korea's leader has a reputation for being dangerously erratic and an unpredictable dictator. kim jong-un hates to be threatened so much that he has even executed members of his own family. now the clock is ticking for south korea. turn off the propaganda broadcasts in the next 15 hours or face war. that's the threat from north korea. point of contention, south korea using these loudspeakers to blare criticism of kim jong-un and his regime over the border. so north korea fired artillery at

yes, what china is going through right now. remember even with the decline in china it still has the best growth of any country on earth. >> good point. we do need to remember that. the china story has got a long way to go maybe in the first inning of a nine-inning game. one of the cool things about this job is getting to uncover these sort of hidden men and women around the world who you don't talk about much who have generated billions of dollars in wealth and suddenly someone like you comes along and finds them. this man from france. don't know who he is but you call him one of the greatest value and wealth creators of maybe the last 50 years. you've invested in his company. what is it, how has he done it? >> so he runs a conglomerate. a 200-year-old business. he's the sixth generation of his nam to run it. it's created more value than all five prior generations combined. they have, you name it, they have it. they own 14.5% of vivendi. remember they own urs vesnivers music. he owns more ports than anybody else. this is an old-fashioned co