mobius: the luxembourg authorities have approved it and that represents at least half of the funds we manage. we now are beginning to invest but where to invest because the stocks have become so expensive in so many cases. we are better off in the hong kong a share market which is still let some discount. -- at some discount. anchor: if there is a correction coming what will trigger it? mr. mobius: the government will give a signal saying no more margin accounts and that could be a trigger. anchor: they have said that. no more margin lending which put

mobius.anghai -- the shanghai copper is up nearly 90% in the past year, and it is trading at 50% above its five-year average valuation. a shares are among the most expensive in the world's 10 largest markets. the shanghai comp trades at about 20 times earnings, well above the 13.5 times average of the past five years. any investors have been looking at the average evaluation -- the median valuation of the average stock in the a share market. is, because the banks, the big caps on priced so low, they kind of skewed the pe for the market as a whole. ,eople look at that median pe and it right now is trading at 57, much higher than hong kong at 13. keep in mind, adding perhaps to some selling pressure this week, 1300-plus companies could be coming back out of their trading halt. we have to see whether there is going to be pent up demand from those individual investors who are unwinding their margin accounts. numbers out later this morning. what kind of read on the economy for china are we expecti

mobius: they are. is the limit in terms of the number of people who have come in but it is the government's direction that will determine what happens. anna: you might be stepping down but he has a great deal of foresight about what is to come. that was in may. that is what happened. carry on the conversation. -- a let's carry on the conversation. how big a drag is the chinese story on the global economy estimate -- economy? guest: what we have seen is the de-bubbling of several bubbles. the chinese market where margins of investing were such a big part the reduced -- it reduced the enormous collapse of equity prices in china which will have an impact on confidence at home. and we have the de-bubbling in credit markets in the early stages. this is -- it has been said indicated by policies in the u.s. and this are -- the eurozone. the fact that this is happening at zero rate for major funding markets suggests if anything [indiscernible] in the correction will happen even as we get more pumped up through

stephen: westerners like mark mobius have called this a desperate move. it seems like intervention this week puts the reform agenda on the back burner. zhou xiaochuan is the central bank chief but has been pushing for a lot of financial reforms, removing the cap on deposits, liberalizing interest rates, making the yuan more international. when china does things differently, on their own terms, maybe this will amplify the calls of those who oppose the rapid liberalization of the market. we will see. angie: thanks. forecast forut global growth, citing a weaker first-quarter for the u.s.. greek --lence in greece and china has caused turbulence, but they are confident it will not cause more damage. worrisome, but the concerns have not seen much contagion. it is the elephant in the room. but given how dramatic the situation is right now, hardly an elephant according to olivier blanchard. less than half a percent of world gdp. we have not seen much of a market reaction so far. the larger lesson was debt dynamics. they can send a bad shock if things go wrong. ov

mobius will be chairman.reek prime minister alexis tsipras has returned home to instability within his coalition. two factions said they will not support the deal. tsipras gave vent to european -- gave into european concessions. ryan chilcote. over to you. ryan: spiro's spent two decades running this country's borrowing program and gives us insight of what lies ahead. see why. you are a fascinating man. the question everybody wants answered it tomorrow, and the prime minister -- canada prime minister get this program and all of the austerity measures through? guest: the fact before you love to brussels, all the parties agreed to go ahead and sign an agreement. sign the agreement tomorrow night. ryan: does it mean it is implemented? guest: that is where have my doubts. whether it will be implemented fully. the program is tough and almost punishing and our behavior the previous years and it is a more toward raising taxes and revenue instead of -- i have to say part of the measures is fair to what the goldman sa

we had mark mobius saying it suggests the latest measures from the government, the spray show in, --ration. thank you. going to go to beijing, joined by tom. this is not the first market -- remind us, how does this shape up next to what we saw eight years ago? tom cole and that is right career this is not the first time china has experienced a significant market correction. 2007, the correction we saw in the shanghai composite from close to 6000 down to 2000 was significantly larger than what we are seeing now. there are a couple of differences. a couple of reasons we might be more alarmed. the first is leverage. in 2007, 2008, was free of leverage. the market in 2015 is full of it. we are seeing the impact that can have an accelerating downward moves and potentially transmitting risk from the equity market across to the rest of the financial sector. the second difference is to do with the resilience of the real economy. back in 2007, it was the boom time for china's economy. the real estate sector was growing strongly. even if the equity markets slumped, the confidence and investmen

tom: i look at your book "frontier" with the introduction by mark mobius.bius would say the gavin serkin world is a great world because i get a nominal coupon and i actually make a real rate. what is your advice to viewers and listeners who are yield hogs and want to go to your world to pick up yield? what is the hazard? gavin: the hazard is looking at the markets as one asset class. you cannot anymore look at emerging markets or frontier markets as one block, stock and barrel place what you see from janet yellen this is not a market where you can plunge in widespread across the board. this is a time when the dollar is strengthening, when yields look more attractive. you've got to pick and choose. tom: is imf and christine lagarde, are they the friend or enemy of the gavin serkin world? gavin: they are the friend. they are trying to tell the fed think about emerging markets. is the fed going to have that is their priority? the fed's priority has got to be the u.s. tom: gavin serkin with us. the book is "frontier," exploring emerging markets. we have some to

tom: a report that mark mobius truly the legendary manager of temples.eton global step down from being the leader of their emerging-market help your that is really a passing, a changing of the guard . i had a fascinating conversation with him about eight months ago at the waldorf, and he will stay with templeton, which is wonderful news. but mobius moves on from leadership at templeton. that from "the telegraph." my agenda -- greece -- i do not know where to begin, other than the focus is on mr. sit russ and -- with mr. tsipras and what happens with the domestic policies of greece. brendan: the newest headline, domestically from greece, greece to extend the holiday and capital controls today. for today they are still in place. the other date it looks like on the 17th when the germans will possibly vote on the greek bailout. gary: if they get to 60 euros today, what happens to that? is it leaving the country? tom: your agenda. what have you got? vonnie: i am watching the iran deal. we may even get it this afternoon. brendan: and indira lakshmanan has been

and mark mobius is stepping down as the lead manager of the $2.9 million -- $2.9 billion templeton emergingarkets fund. .e will remain chairman the fund initially delivered gains, but has seen declines in the past few years. u.s. stocks rose following europe higher as concerns about greece eased. su keenan with more from new york. su: big jumps across the board after greece reached a deal with creditors. nasdaq, it was a 1.5% gain. the dow was closed be -- was close behind. 500 posted its best three-day rally so far this year. all three major indices are now posting gains for the year so far. we saw consumer shares way ahead. google, microsoft, and facebook all gaining 2% or more. and we had a merger of a pipeline company. is greece out of the woods, though, is the real overarching question. when you look at the etf that tracks greece equities, it actually slipped. economist paul krugman said he is not that optimistic about what is ahead for greece. >> as long as you have a debt to gdp ratio that is never growing, when are you going to get people believing that it is time to spend, time to

we heard from the noted investor mark mobius. he said it suggests desperation from authorities, actually creates more fear because it shows that they have perhaps lost control. and that is absolutely what they want to prevent. we will see as the markets open up again. after that 5.9% fall again yesterday. angie: it is all about perceptions. stay right there because the has spread into other asset classes. let's bring in david. what did we see? david: i think what was significant about yesterday, talking about the stock rout for three weeks, what is significant is the damage spread beyond the equities market, beyond the borders of china. hong kong its shares and to the bear market. it's 5.8%. we recovered quite a bit. 650 points towards the close. that was down close to 9% at one point. so, what? that was the single worst day physical financial crisis. now, overnight, this is probably what a lot of the investors received as etf's, the two biggest, the harvest csi and the i-shares record drop there. that is what you have to chinese

mark mobius called them desperate. how do you describe them? >> it is entirely rational.amed the markets for two days, which is of the three. while it is a victory, it is a is ack for warm -- it setback for reform. saying that we would let the markets play a more decisive role in the economy. except when the markets change. the point. they're more comfortable when they command and control the economy. communist party, their legitimacy derives from economic performance. with 8.8 percent of all of the chinese population investing in stocks, and that is a huge number when you think of 1.3 billion people, of course they do not want unhappy investors protesting, that they realize that this gets at their legitimacy. they're not raising the standards of living or performing economically. for them, this is a government and party with deep pockets, what is a delay in reform when it raises their legitimacy? leap i think of the great forward, but you have said that it is more about a lurch in one direction or another. stability.res about we have seen a nice time span of stability si

mark mobius saying it is an act of desperation. do not forget the hashtag. bit of buying coming back in hong kong. the hang seng following to -- falling to the lows level since 2009 but more buying in the exchanges. you did mention the typhoon. hong kong exchange saying they will close if it gets too close. shanghai composite, down 1%. extending the rout. one of

the emerging market investor mark mobius says the worst is over and he's going value hunting, who is? a strategist from one of the biggest asia funds will be weighing in. fed chair janet yellen taking q&a on the economy and it could be a real market mover. we are going to be carrying it live folks on "power lunch." so make sure you tune in to hear what she says in the q&a session. melissa, back over to you. >> we should note as soon as the q&a session starts, you can see she's speaking right now to the city club of cleveland, as soon as the q&a starts, we'll bring it to you live. meantime, let's head the trader blitz, four trades on four stocks, first costco upgraded to outperform over at oppenheimer, a rare opportunity to buy this one? >> i don't know that it's a rare opportunity. there's always an opportunity to buy this stock. it is a quality company. now, i'm a value investor, i've got to hold my nose at the mid 20s price-to-earnings multiple but i've owned this company off and on during the years and every time i've sold it it's been a mistake. if you're in it, hold it. if not t

still, a number of money ,anagers, including mark mobius who was critical of the government intervention -- also, black rock, ubs, and others are saying that more selling could be justified because of the valuations. shares are starting to get back to the area where they can be attractive to buy them again. the ads that we probably have that we probably have not hit the bottom yet. we had the selloff risk from the june 12 high. still upsite index is about 90% in the past year. it is trading at 50% above its five-year average via -- valuation. it is still high. shares are still the most expensive among the world's 10 largest markets. many investors prefer to look at the medium p/e ratio instead. the median price to earnings for the median stock in the asian market given that low-priced bankshares have so heavily e index. down the a-shar andlook at the median p/e that is 57. it is 13 in hong kong. still a high valuation in the market here. rishaad: we have these june trade numbers out in a little while. what are you expecting and what should they tell us as jamar -- and what should they te

anna: we were asking on twitter the latest moves about chinese regulators, i think mobius was at -- wasof desperation. this will only stairway international investors. -- this will only scare away international investors. jonathan: they would've made up 60% of the emerging markets. there be changed people's view on emerging markets. anna: the contagion to the rest of the world has been greater. jack lew was saying he is worried about contagion. jonathan: it is domestic investors and these chairs. we hear something like 19 million -- those 90 million people invested. it is very new investors in china. hang seng is the market to look at. hong kong has proper governance. you're still getting china exposure. anna: a slow rise in a just rates. your expectation, when d.c. them kicking off? september? december? jonathan: clearly they will holding off at the moment. they are worried about greece. they can rise now. if there is no bad news between now and september, they could rise. they've got the leeway to say c -- let us see. that is going to have an impact on bond deals. anna: jonathan bell.

mark mobius saying to bloomberg that he still thinks chinese equities are too expensive.certainly does not appear to be hurting sentiment at the moment because we are seeing some good buying, once again, in the asian region. anna: and the latest redevelopment sprint talk to us about china. the chinese export numbers up for the first time in four months. is this a sign that the chinese growth is stabilizing, or is it too early to be saying? report: what we are encouraging is that we have seen some encouraging data coming through out of china. certainly the export story looks white positive, and also domestic imports looking good for china, as well. we had the chinese customs spokesperson say he believes the china trade will improve if there are no great conflicts around the world and worse the greek story may put a bit of a dent in that, but we do not have an idea of the impact in greece on the trade in china. and a recovery in the second half, big trading partners like australia, as well, and this was one piece of bright news that we really needed to see to kickstart the