mark chandler of brown brothers. scarlet: coming, tesla has big expansion plans next -- and raising half $1 billion. what does it need the money for? ♪ scarlet: good morning and welcome back, i'm scarlet fu. erik: i am erik schatzker. scarlet: julie, you are looking at stocks. making a trading debut. what kind of company is this? >> a boutique investment bank having its trading debut this morning and held its initial public offering. it is up about 5% as it gets underway this morning. it sold about 10 half million shares at $21 a piece, below the end of its expected pricing range. 43-year-old bank that provides advisory services on every thing from a group sees to mergers and a positions -- bankruptcies to mergers and acquisitions. i also wanted to look at the best and worst performer in the s&p 500 today. the best is news corp. i want to highlight this because it is such a different situation from when -- what we saw last week with a huge media selloff among so many companies that have reported earnings and reported

. >> mark chandler, welcome to you. walk us through the impact -- how will this cascade throughout the global financial system? >> a lot of uncertainty. we make a distinction personally about hypocrisy. china we make a distinction between declaretory policy and what they do. they told the u.s. treasury they'll allow a foreign exchange market. it looks like it's been a flat line, repegging it until last night. the 2% move is relatively small but the market will say there will be more devaluations coming and the trades offshore have continued to sell off after the shanghai market close today. >> how much is it down? that's the thing we should really be watching and what the pboc will do with that market response? right? they're monitoring this very carefully, aren't they? >> i agree. i think that's the key here. there's a lot of uncertainty. we have to see what happens, how the dust settles in the coming days, where the fix is. now the chinese besides devaluing the currency, the chinese have changed the mechanism by which

i tend to agree with mark chandler. he's a frequent commentator here on cnbc.ay he said the depreciation is unlikely to have a perceptible impact. it's clearly having an impact on the rest of us. commodities are down 2% to 3%. copper down. aluminum is down in london. crude is down. this is having a big impact on the energy, the industrials market here. metals having a hard day here. aluminum, steal, vale down. latin america is down. the emergency market weak. the chesapeakes and transocean, even potrobras up yesterday, down 3 .7 % today. let's look at what's happening in europe. you can see china affecting europe. germany is an export led economy. italy and spain are not so much an export led economy. germany is down 2 .5% and italy and spain not nearly down as much. that's a clear sign the europeans are reacting to concerns about higher potential imports over in china. greece up, of course, on rumors there may be a third bailout imminent. european autos being affected. bmw, and could it be a worse near for free port mcmor ran. late last night they announced a