malaysia and kazakhstan. the tenghe. a lot of us had to look up the currency of kazakhstan.at has happened is the world's biggest uranium miner, kazakhstan, already hammered by now, adities slumped, lot of the exports are going to china. this is a lot of pressure on the tenge. the central bank has released control of currency, basically making it a free float. against thebout 28% u.s. dollar in the past week. it is also asking exports to repatriate their foreign currency holdings at home to show support. shery: something like they would do in russia. stephen: absolutely. what they did a year ago. this is what is happening in emerging market currency. the 20 mostndex of traded currency. it is down to a record low against the dollar, about 11% year to date. it is really showing the pressure. no one wants to call it a currency war, but it is competitive design wish. -- devaluation. -- a started up your user few years ago, but there is a domino effect because of the trade in emerging markets. is competitive, but how is it going to affect markets and commodities? stephen: let's b

the kazakhstan tenge, will it tell larry to be quiet? michael: i don't think the tenge is going to do it. there were two things people are tired of. one is deflategate. brendan: amen. raise rates already. michael: you've talked about it already. we will get past the volatility. tom: richard, what an interesting soup this august. help us from the chair that janet yellen sits in. the choice that she has. the toolbox she has available. what is it? >> she has several tools in the toolbox. she emphasizes, don't pay attention to the first. look at the past for liftoff, which she says will be very gradual. in terms of what is in her inbox or on her bloomberg screen, she is probably thinking, the world is a messy place. every day, you wake up and see something in china or the middle east or kazakhstan and janet yellen, more so than any that i have studied, is willing to acknowledge that global development are a ". -- are a big input. wirp.an i look at it 10 times a day. thatan: market economists bloomberg surveys have a median call at moving. wh

the other currency devaluation that happened is the cause extend -- the kazakhstan currency.hat's the biggest drop since early 2014. a similar story -- the urban -- the emerging market commodity selloff, a lot of exposure to its neighbor, russia. i don't think most people would have even known the name of the currency before today and i will admit, even myself, they are another one. alix: take a look at the break evens in terms of oil -- they are at $86 a barrel. just to put into perspective what a world of pain they are in. when we come back, why has a major mining company started selling eggs? i love this. the answer after the break. ♪ alix: i'm alix steel. joe: i'm joe weisenthal. "what'd you miss?" alix: a canada mine is turning to australian eggs which it will export to china. joe: iron ore prices have plunged 16%. the ceo says australia is going from mining to dining. alix: they find the mining -- they find the iron ore and they keep it and if they can't sell it, they say i'm going to sell eggs and omelette instead. best story of the day. joe: the idea of currency wars

yesterday, cause asked on -- kazakhstan pause currency fell. kazakhstan's currency fell.about global growth overall. matt miller asked, after china and kazakhstan's currency plunge, what country is next? >> the dollar has been plunging against major currencies, and it has been plunging in a risky environment. that is not supposed to happen. there is supposed to be a flight to the dollar, a flight to safety. there are ripple effects in emerging markets. there are two reasons the dollar is weakening. one, it was rising, so now we are on the tail side. that the euro has been used as a funding currency it to hedgere using their bets. it is not just the kazakhstan currency that is down. the dollar is also down. pimm fox: so what is the best trade right now? sure to the dollar, go along -- long on the euro? >> we like the swedish crown right now. it has had a surge in recent days that might be tapering off a little bit. the main thing is things are not going to play out the way you think they are going to play out. fox: so, go long on the swedish krona? >> yes. in the coming mo

what do you think about the 27% drop we saw in kazakhstan currency overnight? other dominoes falling in the area? mark: i think a lot of folks look at the drops in currencies and the drops in stock markets and they say, what does that mean for us? what i think we should be looking at is, what is causing those currencies to drop? what is causing currencies to drop? there is much slower growth in the emerging economies. it has meaningful impact for the u.s. economy. exports to china and words to the emerging world have been an important source of economic growth since the recession. going to be diminished greatly or reversed. matt: what do you think about this and how much do you think the fed minutes yesterday are behind the move that we saw in kazakhstan overnight? >> i think when we look, it comes out to, there is still a lot of uncertainty and the committee is still divided on september. the sentiment in terms of the markets is it is either september or december and a matter which one, a country like that, are going to try to get their currencies in line, hea

this company is just an example of a company that exports from kazakhstan.lix: it makes sense why ecb ripple through. -- it makes sense why you see the ripple through. it has those ripple effects. joe: everyone is wondering who is next. try to still exports from other countries. alix: commodities did not selloff today. energy and materials have been leading the way in terms of the selloff. we will take a look at the corrections we have seen since 2012. that was about 13%. this selloff was 17%. this one was 16%. industrial metal so far, 20%. if we see industrial metals bounce? , what is i do for stocks? maybe it is not that bad. we had a massive cell love in global markets -- a massive sellout in global markets. thank you for being here. kevin, what did you make of the selloff? kevin: what i see around the that believecally systems going to die. the major belief system around the world was that central banks were printing tons of money and you should go play in exotic places with your investment dollars. that. is coming unhinged. the u.s. is going to be the b

kazakhstan is the latest emerging market to get control of the exchange rate.ke a look at how the currency is affecting world markets. all that and more coming up. ♪ alix: welcome back. time now for a look at the markets. we're still looking at a proof -- a pretty brutal selloff in the market. the s&p 500 down by 1.5%. julie: the markets have been flirting with different levels throughout the day. will update you as we get past the close. the dow was down by 308 points earlier. not at the lowest of the session. it is at least the worst two-day performance since late january. and the nasdaq, the worst two-day performance since october and we definitely has some selling no taking the s&p 500 lower for the year to date. take a look at the averages for the year to date. the nasdaq up 3.5%. the s&p 500 down and the dow going more deeply into the red come at its lowest since mid-december with a decline of -- into the red, at its lowest is mid-december. this is boiling over into the stock market. initially, the selling was concentrated in commodities because many of t

in china and vietnam and kazakhstan.look at the bloomberg terminal and you are seeing the imap of the various sectors. utilities the only group up today. financialsetionary, tend to be more vulnerable to any kind of town during the downturn. the economic data we got today on the housing front is better than estimated. existing home sales at their highest rate since 2007. the economic data here in the u.s. seems to be outweighed by these concerns about global growth and concerns about the fed. take a look at oil prices today. we have seen an interesting trade, close to $40 a barrel. we've been seeing it bounce today. it has been pretty volatile. in the same way, not seeing the same risk aversion in the oil market we are seeing in the stock market. let's look at the dollar. feldman is yesterday, may be more willing to hold off on raising interest rates. -- fed minutes yesterday. the dollar is down .4%. we are seeing rates down as well. the 10 year yield the lowest since april 30 today. estimatedtter than existing home sale

kazakhstan punching the most on record. the turkish lira week getting past three per dollar for the first time ever. the foreign-exchange strategist mark could've or joints now. in the context of this large set up already seen is there more pain to come? >> i think there probably is more pain to come on a medium-term basis. i think valuations are looking very stretched and there may be opportunities later on this year but i don't feel we will get that turning point until after we have clarity in the fed midi after the first fed hike. archie boy which regions when you say are least at risk? >> for me the region most at risk is london and america. growth anduggish they are being really affected by the commodity downturn so they are vulnerable from the china side and the u.s. fed hike side. lira asen the turkish it falls beyond three per dollar for the first time today? >> turkey has some well-known problems but the political uncertainty -- they are about to their israelions uncertainty around there and all of the security ris

olivia: we do not cover kazakhstan in up. w-- enough. we will cover norway because we have an exclusive this morning. they posted it a billion-dollar losses in the second-quarter. that is the first of the decline of the year. >> both of those influence different variants. then there is the currency. we see the opportunity. olivia: we like to talk about negative yields and european sovereign debt. guess who holds a lot of european sovereign bonds. fund.rwegian they are literally losing money. cory: fda has approved the boostled pink pill to a sex drive for women. olivia: why is this not female viagra? >> this quest to get a female sex phil or something comparable to what men have has been going on for years. last night we got the news that the fda had approved this drug. .t will be sold as addyi it is one of these drug names that can be a little bit of a mouthful. yes. to some people >> this drug will have to be taken by women every single for a slight increase in the number of what they call satisfying sexual events. for votes having pro

kazakhstan abandoning the currency peg. kazakhstancare about ? related to oil but also, because we are seeing what appears to be a currency war beginning, starting with china but then the announced as well and kazakhstan, so who is next is the question? getting a look at the top stories at this hour, greece prime minister calling for reelection. the vote will be held september 20. agreeing to austerity measures in exchange for another bailout. greece just received the first portion of the aid money. going straight to jonathan stearns handing outside the prime minister's office in athens live on the phone for us. what is the reaction right now on the ground to the news of the snap elections? john: the prime minister seems to be banking on two things, first as his personal popularity, which has remained more or less intact for six very hisicult month for administration and seems to be counting on the fact that he can cash in on the recent agreement with creditors on the third rescue package for greece which ensures it contains rescue bills for the

alix: kazakhstan did it just last week. joe: presumably a little more stable than kazakhstan, but absolutely, you never know. presumably. alix: i want to bring on our guest. we have an analyst at the spoke investment group, and the global cohead of asset allocation at red needle investments, who join us now from london. thank you for staying up with us . we really appreciate it. what is your take on the rally today? is it sustainable or are we looking at another dead cat bounce? >> i don't know if dead cat bounce is the way to characterize it. predicting the short-term movements is really hard to do. it is nice that we saw solid rally to the end of the day. the last two days, not only with the opening props, but also the inability of cash equities in the united states to find buyers late in the day, demand kept petering out, petering out. nice to see buyers at the end of the day, a better sign then nine. but it is not something where you can look at a chart. it is a wildcard market. bigger picture than what happened in the

kazakhstan's not a particularly important country but it was indicative of ripple effects after that yuan devaluation. alix: then it spread over here to the u.s., you had those fomc minutes that came out and the markets seemed to take that as dovish and seemed to take that as a negative. that started the churn that we saw in the stock market. joe: right. and then you just saw a selling everywhere. alix: boom. joe: this monday everyone called it black monday. that was trending on twitter. because you had the massive crash in china, you had countries, taiwan and brazil entering the bear market. as you mentioned, that extraordinary thousand-point down open in the dow. alix: and the bloomberg commodity index falling to the lowest level since 1998. w.t.i. actually falling below $40 on that day. and the s&p had its first correction since 2011. it was kind of just a wash-out day altogether. joe: the turning point or one of the turning points when we came back was this week when we had new york fed president basically say, yeah, this market volatility is just making september unlikely. and a

kazakhstan is suffering from the low oil prices as their currency lost more than a quarter of its valuen just hours. the sharp drop came as authorities announced they would drop their efforts to prop up the currency. alongsider pressure, the wider economy is low oil prices dampen growth. is also suffering as china and other countries have devalued their currencies. the currency markets and the oil markets have contributed to a cocktail of, well, a pretty bleak session this thursday when it comes to global stocks. we saw european shares trading sharply down, similar picture for the frank furred fax and ftse 100, also slipping. was seen as taking its cue from asia where the shanghai composite was down, another bad day for that chinese index. stateside, we are also seeing the indices trading to the downside, a broad-based move to the downside this session with the dow jones industrial average this hour, the nasdaq and s&p 500 falling to their lowest levels in more than a month overall. moving to france, president francois hollande has sent a message to beleaguered taxpayers, pledging that

kazakhstan is the latest market to free currency to market forces. it dropped by a quarter. it's a huge devaluation. there has been south african as well. this is a concern. the u.s. dollar is stronger, meaning our export is more expensive to buy overseas, it harms u.s. export. and those, share prices getting hit. let's talk about oil prices. oil is trading at near six year lows. this is a concern. to add fuel to the fire. yesterday there was news that u.s. stockpiles were higher than expected. >> what does this mean for the u.s. economy. >> the big question is what does it mean for us interest rates. it has not hiked interest rates since 2006. and the markets thought it would be pulled. >> you have to hit the pause button. the feds meet in july. some of the policy makers are very concerned about depressed prices. as the dollar is stronger and stronger, what we are doing is importing inflationary measures from around the world, a function of lower oil prices. it's a huge concern, you don't want the dollar to be too strong against other currencies, it hurts u.s. exports. will

. >> beijing. [ cheers and applause ] >> beijing was competing against a city in kazakhstan. the chinese capital won by a close vote, 44-40. officials in beijing plan to make use of several existing facilities. they say that will help keep costs down. it's a factor that impressed the ioc members. the ioc also recognized the value of financial support from the government of china, the world's second largest economy. in the final presentation, chinese officials underscored the nation's ability and promised a successful event. >> translator: we pledge our full guarantees for the games in the financial, legal, security, organizational and operational areas. sport is a noble cause that has the power to change lives and transform the world. >> but ioc officials also point out the challenges beijing faces, including potentially unsuitable weather conditions and air pollution. chinese officials are expressing confidence about hosting the winter olympics on the back of the successful summer games in 2008. nhk world's terui takafumi reports from beijing. >> reporter: it's like the whol

kazakhstan, what vietnam has done, there will be vulnerability. bring up quotes from glenn maguire. asian currencies are no longer pay to the dollar -- asian to the dollar, and countries have a better ability to adjust. is probable in countries like brazil and south africa, not necessarily asia. same thing being said at amp capital. this will include latin america, turkey, but not necessarily asia. the cats among the pigeons. angie: thank you, stephen engle. in korea, tensions running high sides exchanged artillery fire. the north has stepped up mobilization armed forces. talks have taken place without agreement. we have shery ahn monitoring this. we already saw defense stocks going crazy. shery: a reflection of the potential we are seeing on the korean peninsula. last week, south korea said they exchanged fire. were made about landmines that they say were planted by north korea. so i have not seen this sort of tension in many years. probably since 2010. koreavember 2010, north shelled an island. fromember receiving a call my little brother, who w

the company launched its halal lineup in 2013 and is now exporting cosmetics to kazakhstan and turkey. >> translator: we've developed halal certified cosmetics that are really good for the skin. we want them to be used not only by muslims but by people all over the world. >> reporter: not everyone is focusing on exports. some businesses are now catering to the needs of muslims inside the country. this restaurant was the first in south korea to receive halal certification. it serves traditional korean dishes instead of the typical kabob or curry. the menu promises no food additives, another precaution against banned ingredients. >> i couldn't find any korean halal restaurants. once they opened up this restaurant i was really happy i could try this. it's good. >> reporter: the restaurant owner recently opened a guest house for muslims. many muslims pray five times a day. tape on the ceiling shows the direction of mecca. a prayer room is available for guests as well. >> translator: i'm aiming to find out what muslims want and then provide services that satisfy their needs. >> reporter: s

'sr example, kazakhstan currency fell in staggering 23 percent today. in case you think none of it matters to us, it is worth remembering developing countries contribute half of the world's income, and for years have contributed 80% of all mobile economic growth. so if they are poor, in the long term, we will be poor, too, because we are all connected in a globalized world, and it will be less appetite for what we sell. how bad could it get? >> i don't think we are close to another financial crisis remotely like 2008. we have unresolved problems in the balance of the global economy, the real economy, and .ts overreliance on debt robert: two apparent exceptions to the global slowdown -- the united states and the united kingdom. in both places, the authorities want to put up interest rates a little in the coming months, but if we could cope with a rise in the cost of money, it's not clear that weakening connected economies elsewhere would find it easy. more on the economy. and others news, the greek prime minister has resigned and called snap elections fo

know the devaluation half a impact on currencies around the region, leading to changes in vietnam, kazakhstanlikely at this stage, but raising eyebrows. rishaad: what is next? zeb: they will likely continue to defend the peg. been in effect until 1983 and has worked well. barclays with an announcement said it is still an open economy with a large financial sector. rishaad: let's check on some of the other stories we are monitoring. financial holdings will pay the nanyang.rice for cinda's parent says there is no certainty the acquisition will go through. credit rating threatened. deutsche bank says it is consistent with a downgrade. earnings tumbled more than 50% amid a slump. to assureied investors by slashing capital spending and bringing down its debt. 10 leading carmakers in the u.s. being sued over keyless ignition. that.them, honda and him -- hyundai. to aath can be linked fault, but manufacturers have ignored the risk. , toyotad news today restarting the tianjin factory after the explosion. it does not expect sales to be affected, but there is bound to be a cost. steve, what is the bott

i think what happened last week is very significant so people say the kazakhstan, what does that meano me, there's been a series of devals which started with china which i don't think we should be terribly surprised about but they are devaluing the currency and bringing down the cash costs at a time when producers are fighting for market share. we've never seen this before. what this means for commodity and people following emerging, it could go lower. i don't think as much momentum has been terrible and relative strength indicators and these wonky traders tell you, em is oversold in the rest of the world and commodities are oversold. right now is not the time that you jump in with two feet. >> tim, thank you so much. keep it right here. we have much more market coverage coming your way. >> announcer: gripping wall street, more than $1 trillion wiped out of the market in just one week. the biggest companies in america feeling the pain. what do you need to do tonight to make sure your money is safe tomorrow? this cnbc special report, "markets in turmoil," is back after this quick break

they are not the same as it is in kazakhstan, russia, or china.ferent reasons for why they are lower. >> the idiosyncrasies of each country -- brazil has tremendous issues as we discussed many times. we are seeing they are going back on their word. they have all of these fiscal issues. they have to tighten spending there. insee development banks come and have to boost credit out there. they have such high domestic interest rates there. they are even going back on their word. they were supposed to do everything to tighten spending and they are going back. $9.25 foru're getting the u.s. dollar. what does that have on the impact on the streets? >> you visited argentina, you know what it is like. the currency there -- it is just an official currency. people cannot access that. it is very limited. what we have been seeing is on the black market that rate is blowing out. it is reaching close to 16. what that means is that argentines are accessing dollars at that rate. that does not have to do so much with external factors as with internal factors. reall

not vietnam, not kazakhstan. stay with us.de without twitter question, "bloomberg surveillance." ♪ tom: good morning, everyone. "bloomberg surveillance." let's get vonnie: right to top headlines with vonnie quinn. vonnie:there is a report -- that v there is a report a plea today to child pornography charges. six weeks ago, authorities seized electronics and other items from his home near indianapolis. subway says it ended its relationship with him. workers areuto angry about a plan being studied by g.m.. the company is looking at importing a buick model built in china. that would make general motors the first automaker to sell chinese cars in the u.s.. gm and the union are in contract talks. the current agreement expires in a month. what does it take to create the world's biggest tech shop? a quarter of a million animals. it is twice the size of the white house. it is in germany. read about the tour and the man behind it on our website, bloomberg.com. i don't think so. brendan: that is amazing. vonnie: i guess that is how big

we have seen kazakhstan dropping 25%.otentially other countries in africa, like nigeria, following this move. globally, it is not just focusing on regional countries. manus: in the very near term, which you see the yuan getting to? weakeningsee the yuan further of the next two or three months. we think that we will see weakening pressure on the chinese currency. manus: we have written an article. 10 currencies that may follow the currencies down. big thinking bubble, the glass bubble, could societies move? could the attention currency come under pressure question mark will the next pressure come from? like the former soviet union. also in africa. like i mentioned before, nigeria. i also think that it is inevitable that nigeria will devalue the currency. it has been around 200 for the last six months. forward price is indicating a 3% drop over the next four weeks. i think another 15% evaluation is in the cards or the nigerian currency over the next four to eight weeks. , that isure from oil definitely reason to believe tha

and asia and markets kick this off overnight with cause expand -- with cause extend -- kazakhstan allowingency to depreciate by 10%. you can call that devaluing its currency, if you like. that is really what sparked this whole market meltdown. the s&p 500 is year to date. so, if you invested on december 31 of 2014, you are now in the fallen below its 200-day moving average. a lot of people talk about the death cross. average.ay moving that has happened here and it's definitely not a good sign as far as technical traders are concerned. the s&p 500 is off to .9%, the biggest monthly decline since january when it lost 3.1% -- the s&p 500 is off 2.9%. one reason that stocks, especially tech stocks are faltering so much is that twitter shares are falling rapidly. twitter following below its ipo price of $26. i want tontext here, bring in cory johnson, who has been covering the stock since the very beginning wit was a private company. how much of this is due to -- cory:ay. market said, tesla, twitter, a little more risky there area saw slowing growth in the users. the question was, what can driv

for the most part, you are seeing -- like we saw in vietnam and kazakhstan, pressure to weaken the currency to help the economy and to keep up with china. betty: is anybody saying this is a buying opportunity? >> that attends fence on your outlook for multiple things. outlook on oil, the fed. outlookdepends on your for multiple things. if you think the fed will postpone hiking rates because of china, countries that have currencies that trade closely to what's going on in the u.s. will be a buy. if you think they will do for a hike. countries like mexico trade closely to the fed. countries inade emerging markets trade closely with the fed. as opposed to wild ones like argentina. curve of certain countries like brazil, certain people have told me they want to see what happens in brazil. they have the highest interest rates in the world, 14.25%. if you are thinking eventually they will have to cut rates because of what's happening with the economy, you may want to be looking at the local curve. betty: thank you so much. turning to the health of the u.s. economy, retailers like target and lows

has even -- kazakhstan taken action of their own. there are currently no plans to change the peg.ollar stayed around 7.75. we will watch these markets, because options traders have a bit of a different view on the future of the currency regime here. angie: it is getting to be an expensive peg. thank you for that. let's stick with the currency markets. gibbs. greg are trying times for fx watchers and traitors like yourself, because that long carry trade that has been the has been longny gone, so what did they do the echo -- what do they do? come down here for a period. the chinese stock market has fallen all the way back to the middle of its range since -- between 2009 and 2014. a riskll see a bit of aversion coming out of the market in the short term. we also saw the bounce in the u.s. stock market the other night. a recovery a bit of in asian currencies here in the short-term. we will probably see the dollar rebounded a bit against the yen and euro as the market starts to think about wanting to be using potentially -- think about quantitative easing. that will calm things down a

>> kazakhstan. >> you're blaming borat for the market selloff.hat's not very niece. >> it's a tangent. kazakhstan reduced the value of its currency because of china. a lot of it is about china and china exporting deflation. they're reducing it. they can't really build any more apartment buildings. that exploits deflation in the united states. that puts the fed in the box. you're concerned about probability and they're exporting products, competing with china. it's a new concern, too, because it's really just kind of surfaced the last few weeks and i attribute the vast leg of that down to that. >> what is more important. china or the fed for u.s. stock owners? >> i think right now china. they might raise it 50, 75 basis points. i in no way see them going over. that's going to put fuel on the fire as far as the situation is concerned. so i don't see that happening. if the fed raises, they're expecting it. i think this china issue is kind of new. what's going to happen. the impact it's having on commodity markets. the impact it's going have on anybo

we saw the move by kazakhstan last week.ondering whether other currency pegs were going to fall apart or be left by the wayside. do you think the saudi's will lose the peg to the dollar? >> it is definitely something that policymakers in saudi arabia is going to be speaking about this week and next week. thatu look at the reserves are out there, including the , saudign wealth fund arabia probably has the least amount available to cover budget deficits. admittedly, that is about 7-8 years of coverage. in this situation, it is something that market makers focus on. anna: you said that that compares quite directly with what the context and situation was -- the context and -- the kazakhstan situation was. >> absolutely. thank you very much for joining us today. great to get your thoughts. simon joining us from commerzbank. sarah from standard chartered, thank you to you as well. coming up on "countdown," monsanto has had its eye on syngenta for some time now. we will be following that m&a storiy. according to people familiar of

kazakhstan. turkey one of the bigger ones this morning.e bit from that. >> i think overall in emerging markets there is probably more pain to come in the next few month bus i think a lot -- but i think a lot of the evaluations are starting to look stretched. e're facing a long-term facing point. for me it is a big part of it. there is a lot of uncertainty around the fed as we saw yesterday from from the minutes. the emerging markets want that certainty. and also the pace. they want to see what the reaction function is when that first hike comes. guy: who is most exposed to this? traditionally the countrys with the current account deficits. south africa, turkey, etc. is that where we think the story is going to be or elsewhere? >> in the context this is a fed hike issue, it is still one of the main concerns. that context, you have latin america, colombia, brazil. they have also got the commodity problem as well and they have slow growth. to me latin america is the region that is most vulnerable. guy: how big a factor is the commodities? >>

it would launch from kazakhstan, typically through a tube. it was a two day trip to get to the mir space station. that's the casual. you can see a great model of the said aaron space with the apollo g sawyers. module, ae orbital toilet, some water systems of their first meeting, which is meant to survive and keep you alive and comfortable for the two day trip takes to get to the space station. at the end of the mission, the astronauts come back inside the casual and instead of splashing down in the ocean like we do in the united states, they land in kazakhstan and do a hard landing. they have little thrusters ago offered before you hit to slow it down, cushion and a little bit. space station. it looks like one of your kids or grandkids had tinker toys and put them together. it's not slick, it's not vontiful, it's not like the braun wheel design, but it was very functional. it doesn't need to be aerodynamic or slick. it worked extremely well up there. and they could keep adding onto it, putting new modules is in needed them as they had the bud

market is wondering whether we have to have a true announcement we had last week in vietnam and kazakhstan back and this is why you'll see the hero stocking, too. nicole: jane foley, thank you for explaining the market. in a solider twine. currency, commodity, equity. what you do with your money? coming up, donald trump taking aim at wall street over the weekend. >> a hedge fund guys build this country. >> mark trump's anti-hedge fund comments coming up. meanwhile, wall street traders for a flood of selling out the opening bell. dow futures down more than 500-point. now down 313. coming after friday's 500 plus selloff for the dow. the s&p and nasdaq each downed well over 1.5%. you're watching "fbn:am" come your first look at morning markets and breaking news. we'll be right back. ♪ sandra: nicole: breaking news this morning. a sea of red after friday's 500 plus point down plunge. another way the selling will hit the open for u.s. investors. u.s. stock market futures down sharply 339 points. had been done over 500 at the selling his back. lauren: asian markets clobbered overnight. shanghai

as the premise are of cause exam -- kazakhstan said, he said it shouldn't be like that anymore., even though initially it is bad, you are bringing in a lot more revenue if your costs are in your local currency and your gains are in the dollar. matt: do you expect further devaluations? but i think it depends on where we go from here. if china and that shoring itself up. if they end up signaling that they have this in control. it all depends on china. this is a fear driven selloff, not an event driven selloff. we need to see some sort of positive sentiment coming from the chinese and to see what they do. if they end up cutting interest rates, they have the ability. they have very low inflation. or if they end up lowering reserve requirements which would free up the money, that would essentially be a monetary loosening policy. matt: some of the countries you cover are beneficiaries of a really low oil price. i'm thinking venezuela, russia, are really not. those economies have been doing much better and their currencies have been doing much better. then you have the oil exporting ec

katia: we have seen kazakhstan and vietnam.latin america, peru -- it has otheren hit as strong as currencies. we are seeing their government saying we need to hike rates. terribleia, they are a performer today, down for presented they are in oil exporting economy. their central break cap interest rates low. it is dealing with much slower growth. what do you do when you have a currency plummeted and inflation rising? do you hide and risk slower growth? you let rates stay low and let it fall off? olivia: $5 trillion wiped away since the chinese t devaluedn yuan. how is that having an effect on latin america? katia: a very big effect. rizal is dealing with a lot of other issues as well. they are dealing with the longest recession since 1931. they are dealing with more and more. olivia: i was just going to say -- good news since you were speaking. the dow is off 300 points. that is less than 2%. that is good news. it appears that we are off session lows in deep sentiment improving, but still a bloodbath out there. don't go away. mo

none has been hit harder than the cause asked on kenj -- then the kazakhstan kenj.s falling for a third straight week -- the s&p 500 suffered its biggest selloff in 18 months. the ftse entered a correction -- a decline of 10% or more. and if you think that's bad, check out oil. wti has been touching fresh six-year lows, falling for yet another week, putting it on track for its weekly run of losses, which is its longest stretch of decline since before manus cranny was born in 1986. manus: i like that. mark: there is your complement of the day. manus: i should probably cherish it. now we have it on tape. mark: what have we got today? the charts are quite staggering -- the chickens have come home to roost in terms of what china is slowing. a fantastic article on the repercussions for oil in saudi arabia, the social and economic ramifications. those charts are only yet being understood. greece may not matter economically. it is all part of the big plan -- don't worry about it. if part of a construction. we will be speaking about greece, tsipras's chess move. if power co

you should have sewn kazakhstan's currency of the week. everyone is looking at. >> i could have shown others adds well but i figured the thai baht was one representation. >> and the ring et is trading at levels seen back then. >> and coming up, robert shiller weighing in on today's market action. he's been warning that stocks have been overvalued for a while. find out what he thinks of the sell off in a moment. great bur, or building the best houses in town. or becoming the next highly-unlikely dotcom superstar. and us, we'll be right there with you, helping with the questions you need answered to get your brand new business started. we're legalzoom and we've already partnered with over a million new business owners to do just that. check us out today to see how you can become one of them. legalzoom. legal help is here. but your stellar notebook gives hanyou the gumptionlc. to reach for the sky. that's that new gear feeling. this week, these office depot brand notebooks just one cent. office depot officemax. gear up for school. gear up for

devalue and then kazakhstan. that brings concerns you can see another shoe fall. do you expect to see another asian country devalue its currency? jim: it is certainly possible. my guess is -- i have been expecting a full correction for some time. i think this s&p 500 might find itself in the 1800's at some point. low, youf it finds a will see a lot of people buying on the dip. it has been a popular approach. it has worked well for three years. i think you will see that. the issue would be if the buyers by on the dip and it fails again, there could be more panic on the secondary fail. i think we are headed in that direction. whether we do that in september, i don't know. if we get around 1900 with earnings next year of $120, there's good support around 16 times earnings. that would be about where it would come in at. i would not be surprised. i think we are overflowing the commodity collapse. i think we are closer to the end blowoffand an emotional than anything else. i would expect global growth will bounce on the backdrop of considerable stimulus applied for lowe

group c the first team from kazakhstan to calf in astana, ben feeko, atletico and gala cas tine. and the toughest group, group d. italian champions juventus, going up against ns manchester city. barcelona are in group e. and games against roma and bayern leverkusen. bayern munich faces arsenal in the champion's league, in the third time in four seasons, drawn together in group f. and jose mourinho returns to porto. jose won the european cup with porto in 2004. >> any one of zennent, valencia and lyon have high hopes of winning group a. apologies for supporters. usain bolt retained his crown as the king of sprinting, outshining his biggest rival. he was knocked off his stride while demonstrating >>> nine championships and counting for usain bolt, standing in his way again was justin gatlin in the 2 him. the american had been depositor -- 200m. the american had been better in heats. usain bolt had authority when it mattered, his time of 19.55 seconds clinching his fourth straight title over the distance. an 11th championship could come in the 4 by 100 relay. >> i'm here to show i'm

have been comparing what we are seeing now with the chinese devaluation that led to vietnam and kazakhstan98. i know there are differences, but how do you see this emerging market crisis as compared to the devaluation that we saw in the late 1990's? hans: the 1998 crisis, we had the asia crisis and there was a bit of a setback, the 1998 crisis came out of russia, and it was an investment in long-term capital over leverage that was on russian instruments, and the effect that went through the markets. i think that we have seen the repercussions on the equity side . on the fundamental side, it is probably, potentially, you have to pay more attention to china, just because it is such a driver for any academ -- for any economy exporting country. i spoke to a friend of mine before i came here, and he was saying from his point of view, and i would encourage people to look at his research, china is faced with the bad and worse options. there needs to be a rebalancing. they will have ramifications. in terms of market opportunities, this was an a lot of noise and our markets. we barely sought any ef

so it is not just that the kazakhstan's against currency is down, but the dollar is down, too, and we may see more as volatility steps up. pimm: what is the best trade right now? short the dollar and go along the euro? axle: you can do that but we have not elected that because the policy that, they have to do -- went than just comes as to what happens tomorrow, right now, a lot of volatility in recent days, so that may be tapering off a little bit. the main thing is that things will not play out the way you think they will play out. pimm: what are you talking about, going along with the swedish krone or no? axle: definitely. the reason is that they have a policy that is not compatible with the fundamentals in the economy and at some time they will have to -- that will not happen to our but i think we see it will outperform other currencies. matt: if we do remain concerned about currencies in asia, do you think we see another country widen its trading ban, abandon it completely, and that results in a total devaluation? is this the kind of situation in 1997, 1998 where dominoes fell aro

you explain why when china devalues currency, when vietnam, kazakhstan does same thing, why it matters to us because we sell to them. >> exactly. deirdre: and buy from them. >> right. what is really kind of nasty here, there are couple of self-reinforcing cycles at work. one currency war theme you keep hearing. what disthat mean? if china devalues yuan to make exports cheaper to sell more exports globally, what will the asian countries do? they will deevaluate their currencies. that keeps getting a weaker an weaker cycle. that has a weird complex to it. countries with big dollar-denominated debts. maybe they can't pay the debts. rhett of the capital runs out of the country, hurts their economy and jobs. deirdre: email, what is your take on this, just remember the contribution, the weight of the u.s. to global gdp is less than it used to be, which by definition means all these other countries collectively weigh more. >> that's right. we used to be the dog and the rest of the countries were the tail. we wagged the tail. now, we're still the biggest economy but the whole global economy to

the chinese capital beat kazakhstan for the honour of hosting the 2022 olympic games. the international olympic committee says it chose beijing, because it was a safe bet. it has most of the infrastructure from the 2008 olympics. human rights groups criticized the decision. in london closing arguments in the inquiry into the ailed assassination of a secret agent. it centers around former kgb spy turned british intelligence collaborator dying from radiation poisoning. paul brennan has more from the royal courts of justice. >> reporter: doctors treating alexander lich van yenningo were initially mystified by his symptoms. when samples were analysed was the condition revealed. he injested polonium 2010. the task of the u.k. inquiry is to establish how and why lit ven yenningo was poisoned with a rare and specialised isotope. he was a former kgb man and fled russia and became a critic of vladimir putin. he was recruited by mi6. inquiry saidized of international esbioning. >> they will need to consider whether lit ven yango sustained attacks in general or whether vladimir p

puts to rest some of the theories that were out there that the plane had perhaps been flown to kazakhstan hidden hangar being repainted with other colors. that plane is somewhere in the indian ocean. this little bit of it, a piece that happens to float because it's of aluminum construct with sealed chambers, that piece drifted around in the indian ocean and then washed up on the beach, but where is the rest of that gigantic 777? >> oliver mcgee is joining us on the phone. he's an aviation expert. that's a great question, oliver. this is very significant to know this is officially part of mh 370. we're waiting for oliver to get connected. john, i certainly rely on your expertise as a pilot. this is such a big plane. that's one of the mysteries for so many of us from the outside looking in. this is a huge plane. how did it just disappear? but this particular part of the plane is one of the parts that could potentially float, john, but the rest of it, is that a big question mark about whether or not it is floatable? >> it has mystified me and everybody else since this thing disappeared. why

if you look at kazakhstan, turkey, mexico, they're coming down as well. they're resource related countries. there are some very important similarities. we are catching down to them which we're probably going to fair better. there are real issues in that. >> as ron points out, sue, we tend to focus on the euro, the chinese yuan, the japanese currency and less so on those ones that are not as central to the global economy. >> a lot of times it's those that are not central to the global economy that trigger the event. i would push back on the thought that things are orderly right now. they're orderly here in the united states, but if you look at the periphery, if you look at some of the other global markets and the volatility that is contained within them and the selloff that we've seen in overnight session, it's not orderly. it's very disorderly. we are orderly here. but i would say global markets right now -- >> it's not looking terribly orderly today. >> as in 1997. the difference between now and 1997 on the currency front which ron knows so well is we ha

not only did we have china devaluation of their occurrence, you've had south korea, kazakhstan and thatpetitive evaluation. all these billionaires that we had in china are not billionaires today and they're worried about the devaluation of their currency and they're moving in the gulf. so you're seeing that transitional sav safe haven play. >> yeah. i've got to talk to you about oil, six and a half year low for oil, that is taking the energy sector in aren't going to bear market toil, 80% of the stocks in the s&p 500 bear market territory. we close -- >> very disturbing. >> what's going on? >> well, you know, they're going to try to hold this $40 a barrel. remember it like your other guest said. oil led this entire sector down. it started the day really like if you want to see the top is when lexis tsipras a few months ago decided to hold the vote whether he wanted to take europe's money or not. now, of course he stepped down today maybe that's the sign the bottom is near because we're at the other side of that coin, but it's the also a concern too that i think adding on the stock marke

kazakhstan that relies on oil exports saul its currency lose a quarter of its value after policymakers there freed it to market force. the turkish, south african malaysian got whacked nurse. that's the best decision on when to hike interest rates for the first time since 2006. they were convinced the fed would pull the trigger next month until wednesday's release of minutes from the fed's july meeting. those minutes revealed some fed policymakers are concerned about the fed prices and the risks for the u.s. economy by china. that could push an interest rate hike out to december or beyond. john. >> let's talk about the practical impact of the drop in oil. fuel for airplanes, home heating oil, gasoline. how long is all that expected to last? >> that's the upside of cheap oil, if you will. as the price of oil goes down, the price of gas goes down, too, which means consumers save money at pump. right now u.s. benchmark oil is trading around $40 a barrel, but some analysts think it could go as low as $30 a barrel, which means consumers in the united states could be in for a big windfall dow