we've seen oil stocks around the world get hammered not just petrobras.ng markets that have been in crisis for a long time. the strong dollar in many case has been to blame. so aren't there a lot of reasons that you could blame on a petrobras declined beyond any sort of corruption? >> sure you can, because of the close dependency that petrobras has had with the government and the government is not doing well in brazil. sure, you could do that, but i think that the fundamentals is there, the demand, the ability that they will have to supply demand is there. they are not going anywhere. in the short term i think you are going to see them take a big hit, but i think in the midterm things are looking -- things aren't so bad. >> all right. carl, thank you. >> thanks. >> carl meechum. it's time for a cnbc news update. let's go over to sue herrera. >> here is what's happening this hour. california regulators restoring ambitious rules to cut transportation fuel emissions 10% within five years. the rules further strengthen the stateest toughest in the nation emiss

is verysay petrobras interesting, specifically petrobras bonds.dal ridden brazilian energy company got downgraded off the back of the s&p downgrade. which means we have a new junk bonds came out there. and it's petrobras taking over from sprint. about $56 billion of junk rated debt, outstanding. sprint has something like 30 billion. it's a weird state of affairs because just two or three months ago, petrobras actually came to billionet and sold $2.5 worth of bonds with a 100 year maturity. michael: you can wait out the scandal. tracy: they sold it at a lower yield than initially expected. tom: tracy alloway with us on this special day, with bloomberg markets. the dow -49. we tend to focus on the crashes and attacks, but in washington, d.c., 125 people were killed. at the pentagon, when a plane crashed into that building. we are now going to join the people pulling the memorials for a moment of silence there. [bell ringing] >> mark joseph ellis. silence atmoment of the pentagon for the 125 victims that died there on 9/11. tom, it was truly an event

i'm looking at the 143,000 in debt petrobras has, given the steep decline in oil.company has amazing properties. these three stick points can't bring down our entire stockmarket. in fact, you can argue they shouldn't have all that much impact, but i've seen currencies from southeast asia and bonds from russia cause huge damage here when they fell apart in the late 1990s. so who am i to dismiss the overseas worries now. no, they're not a reason to run for the hills. yes, volkswagon, glencore and petrobras are causes of what's making smart people nervous and are inclined to pull in their bullish horns. knowledge is power. you have the knowledge these bright money managers are discussing and on the trading desk on a daily basis. let's go to francesca in illinois. >> caller: good afternoon, mr. cramer. how are you? >> i'm fine, how are you doing? >> caller: fine, thank you. in may, bob lang the technician recommended the chemical stocks based on their charts. specifically, dow, dupont and do you. are they technical buys and do you recommend them longer term. >> i dupon

if you don't think about petrobras, if you think about the u.s. while some are on the fed, you miss a larger picture, like you might miss volkswagen. >> we get to volkswagen. unbelievable story. i think you're making a great point here. 100 to 76. we're not talking about a little bit of debt. here talking about one of the biggest debtors out there in petrob petrobras. don't forget about the stock, but also remember the bond mark and what is going on with brazil, the economy overall. >> i remember russia. i didn't think russia could have impact. next thing you know, i was on tv talking about russia. i felt very ill-equipped. i don't want to be ill equipped this time when we talk about petrobras. this is the number one problem in the world right now because it has so much debt. brazil, the eighth largest economy. people are not talking about it. i think it's falling apart. you mentioned volkswagen. an incredible story here. they installed software in their diesel cars, four cylinders, pasatt, so they could fool regulators when they went for emission

petrobras and vail and brazil just laid off 15% of the work force. glenn corp are overstrapped but no one has blinked on the supply front. so there are gluts in every commodities and they are not being alleviated. glenn corp can't go up until copper goes up. that, not the fed, is behind the route. and it hasn't ended because there is still little rationality and hope that china is about to come back. it is tocoence dense that the two biggest worries are petrobras and glenn corp. the worst offenders. so as the quarter winds down, it is not the fed, the decisions made years ago to meet chinese demand that is going away. that is the real issue. not a fed tightening. it is only making things tougher as the year goes on. stick with cramer. it really opens the passages. waiter. water. so why would you invest without checking brokercheck? check your broker with brokercheck. ...of fixodent plus adhesives. they help your denture hold strong more like natural teeth. and you can eat even tough food. fixodent. strong more like natural teeth. fixodent and forget

effects spill into the economy from petrobras. we are seeing companies that have an exposure to brazil trading down at this lunchtime in europe. among them, the french retail group casino, their share is down. the bank of england has decided to keep its base interest rate at 0.5% and downgraded its growth in the country. not much time for the ftse 100 to react. >> the new owner of the national geographic has raised eyebrows. >> it has been bought out by rupert murdoch's 20th century fox in a deal worth $725 million. national geographic also funds science and research. they have raised the point that rupert murdoch is a climate change skeptic so they are wondering how this will play out. says it willraphic be allowed to expand its work including into research. >> that wraps up the business news and it is time for the weekly press review. it is time to take a look at what is grabbing the headlines in the weekly news headlines. story across the weeklies is of course the european migrant crisis. they called for a radical overhaul of t

desperately trying to distance itself from a massive corruption scandal involving the state oil company petrobras, which has implicated several construction firms and senior politicians. president rousseff has been trying to distance tears from that corruption scandal, but no doubt that her confidence is questioned in the future of that government. things are looking difficult. she's involved in negotiations with members of other hen party trying to shore up support, in members of the opposition trying to impeach her for her handling the situation, and her closeness to that corruption scandal. meanwhile, the economy taking a battering, the brazilian currency, the government looking to try to implement some kind of confidence in the situation here. people here outside of the congress protesting. things moving very, very fast here in brasilia. meanwhile the rest of the country very nervously watching and waiting. >> four years of prolonged drought this the u.s. state of california is threatening the world's largest trees. jacob ward visited the national forest to see how giant sequoias are being af

economy and the government are also being weighed down by a corruption scandal at state-owned oil from petrobras. many of the arrested either belong to president dilma rousseff's party or are considered allies. markus: we are going to take it to the stock market. we are seeing a bull that -- a little bit of a bounce for american shares this session with the dow jones industrial average trading higher, 1.6%. american markets have been up three out of the past sessions. 4we are seeing optimism in the united states, this ahead of a federal reserve meeting, which will start on wednesday. the federal reserve will decide this week whether to hiek interest rates for the first time in nine years. that has investors looking very sharply and attentively at washington, d.c. let's talk you through the european close on the side of the atlantic. we saw shares trading to the upside as well this tuesday. leading the way in paris, up almost 1.2%. car stocks were among the gainers after the fairly strong looking sales figures we got out of the european car market a little bit earlier when it comes to august, at

a report that transocean, the offshore rig contractor, may be linked to the corruption probe of petrobras weighed on those shares. according to bloomberg, a former executive at the brazilian state-run oil firm, testified that he received payments from someone claiming to work for transocean, that in xhch for a contract. shares tumbled almost 5% to 13.01. >>> and the chip maker marvel technology said it would cut jobs in its mobile platforming business. the move will result in a nearly 20% reduction in its global workforce of about 7,000. shares popped initially in after hours trading. before the close the stock was up 1k36% to 9.02. >>> the most powerful and influential young business people. you can find them in the latest issue of "fortune" magazine. and the just released 40 under 40 list. topping the list this year is adam newman, co-founder and ceo of wework, a provider of shared -- what i ahandsome fellow he is there. he's joined by many other young professionals, some names you'll recognize, others you might not. and here with the highlights is susie gerub, senior continental at "fo

the contractor is being linked to the petrobras corruption inquiry for the first time.r executive has testified somebody claiming to be a trans ocean employee bribed him to win contracts. has treated to the brazilian rating cut. bmw may be caught up in the emissionsn scandal -- scandal. a diesel version of the x three exceeded european levels. bmw has denied the root or. there is no suggestion the volkswagen rival has done anything illegal. hans nichols went to visit the place where more than half the inhabitants work for the same company, volkswagen. cons: it is a little town -- hans: it is a little town on a wide waterway, built for one company. volkswagen. with an average income of 92,000 euros per person, it is one of the richest cities in europe. the company employs 70,000 of the 125,000 inhabitants. that is why the scandal is more than just a passing headline. build by the knot sees in the 1930's to make the original peoples car, the factory is the biggest in europe with its own power plant. the company owns and brands the local soccer club, which won the coveted

. >> petrobras, a six pack of pbr is more than a petrobras, ppr. we haven't gotten to updates. abe is on the tape, and sara eisen in cincinnati with a ceo doubleheader. hey, sara. >> good more, i'm in cincinnati where kroger is holding its leadership meeting behind me here. they have phoned in thousands of associates we'll talk to rodney mcmillen how they plan to keep 47 quarters of growth, and keurig green mountain launching its new cold machine. they desperately need a hit. both of those interviews only on cnbc. we'll be right back. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ which allergyeees. bees? eese. trees? eese. xerox helps hospitals use electronic health records so doctors provide more personalized care. cheese? cheese! patient care can work better. with xerox. that's it. how was your commute? good. yours? good. xerox real time analytics make transit systems run more smoothly... and morning chitchat... less interesting. transportation can work better. with xerox. >>> let's add credit suisse. sales are churning.

petrobras, glencore, they have their issues.u discover more of these problem areas, so it goes in both directions. alix: we will be talking about all of this coming up on miss?" in 15 minutes. we will be talking to the head of credit strategy i wells fargo. -- at wells fargo. as the third quarter comes to a close, we will take a look at the global equity markets and find aware investors might get the best lu. ♪ alix: u.s. stocks still headed for the worst quarterly decline since 2011. the cofounder of the world's biggest distressed asset investment firm said the head needs to move for the sake of the market. howard marks of oaktree capital offered his perspective to bloomberg pass matt miller at the conference in toronto. >> another reason they should bite the bullet and start doing it,s when they don't do everybody takes that as a signal that they believe the market is too fragile to do it. that is why i think things have been week. joining us with more is a global equity portfolio manager at newberger berman. always good to ha

a dubious distinction for in brazil owned oil producer petrobras.t has $56 billion of outstanding securities making it the world or just not investment rate corporate issuer followed by the s&p. growing scandal has had some of the suppliers into bankruptcy. scarlet: a new policy at walmart is making many mad. it says was to simplify its relationships. mark: another swipe and a former employer. a former colleague which is been promoted profited from front running clients exchange orders. citigroup denies the actually. he was fired in the middle of an investigation into rate rating. he is suing a wrongful termination claim. those are your top stories of this hour. scarlet: coming up, should colleges borrow money to build football stadiums? ♪ mark: tulane university is not a football powerhouse, but the college is betting big on the future of its division i teams. homeet: after playing games in the city's massive superdome when they got a new stadium on campus angst you alumni donations and that. willem marx has that story. finding a parties never diff

meanwhile, the government is trying to distance itself from a massive corruption scandal involving petrobrasthey have been trying to distance themselves from that corruption scandal, but there is no doubt that her government has been stained, confidence is questioned. in the future of investment, in the future of that government. things are looking very difficult. she's involved in negotiations with members of her own party trying to shore up support and members of the opposition trying to impeach her from her handling of the situation and her closeness to that corruption scandal. meanwhile, the economy taking a battering. the government looking to implement confidence in the situation here. people here outside of the congress protesting. things moving very, very fast here in brasilia. meanwhile, the rest of the country very nervously watching and waiting. >> let's take you through a few more stories that we're watching this news hour. a palestinian woman has died after being shot by israeli forces in the occupied west bank. israeli media reports suggested she had attempted to stab a soldier

petrobras is the largest noninvestment grade corporate borrower. those are your top headlines.wednesday in san francisco unveiled new features and phones. who are the suppliers of the 6splus. and here is cory johnson. what about the new features? i understand there are cold followers of apple products that have been waiting for this new addition? for the must-have technology product, the latest iphone of the date, geeks like me will buy the latest thing because they have to have the latest thing. the iphone business is a huge business. it is the most successful phone, the biggest company in the world, and it is driven by the iphone. suppliers have been getting ready for the device and put things into it. up to does not make them on their own, they have suppliers -- apple does not make them on their own, they have suppliers throughout silicon valley. they have to have their products for some these phones time. when you go through the list of key suppliers, bargo technology, logic. logic, -- siris all of these countries benefit from the growth of apple. they take place alongside

i say the one thing is that we know petrobras bonds in particular are very pervasive in a lot of the pension funds in the united states. people might feel losses in certain parts of their portfolio, but systemic crisis, it's not greece. >> is del ma rousseff going to stay in power? >> there was talk of impeachment. >> that is a big question. there is a big vote in october related to financial accounting. if that goes negatively, the chances of her getting impeached are higher. it could be she can't control the parliament any more and she is not going to be able to stay in power. they'll have to come up with other new elections. she is in a lot of trouble. >> there was a debt option today canceled. is that because of the cut in s&p? >> market conditions is what they cited. that's being driven by the fact they were downgraded twice in a week they tried to borrow money. they tried to borrow locally in local money under local injures particulars. they didn't want to pay the high interest rates they would have to pay. they canceled the auction. shows how they are struggling to raise money

if petrobras is $130 billion in debt is defaulted and we are talking about reorganizing, the s&p will be down 3% like that. >> what i want to know right now, based on those comments we heard, are you more bullish or bearish? does it change your outlook? >> more clarity equals positive. >> i'm less so. >> i don't know. i'm always long. long bias so bullish. >> i think it's the same rhetoric going on the last year or so. to me, nothing's changed. the bond market is the ultimate arbiter. it continues to go higher which mean rates go lower. i think the bond market knows something. >> they are in the same place we are? >> yes. >> nike, those shares are soaring on a massive earnings beat. conference call getting under way. let's get to dom chu with details. >> talking about earnings and sales at nike beating expectations. the stock is up. not just because of the beat but because of something every analyst and trader likes to watch called those global futures orders. a way to measure their future business in the coming months. if you are take a look at those right now, it was a big beat on a

things investors are concerned that the troubled oil plays may not keep interest on the deal with the petrobras being the poster child. a collapse in the high yield market as icahn said is about to happen is severely negative for stocks. i want to go off the charts to see what's next for the largest oil company on earth, exxon mobil. something we're doing with the help of robert marino who is my colleague at real money.com and being the publisher of "right view trading company." he's got a novel view here. he actually thinks's possible -- i know this is just amazing frankly, that exxon with its fabulous balance sheet unlike other oils may have been punished enough. in other words the open wound that's the oil patch might be clotting. something that should have a destabilizing effect. his reasoning? look at the look at the charts. the top one being exxon and the bottom one is s and p500. you see the exxon versus the s&p. for the last month or so, he's noticed a change in the pattern. lately, exxon stopped going down. look at this. it's been consolidated. it's building a base, sideways action. it

there is a corruption involving petrobras, the state oil company. no more second-class citizen status for apple tv. the set-top box has taken a backseat to the iphone. tom: i'm buying one. > tim cook has unveiled a major upgrade. >> we believe the future of television is apps. in fact, this transition has already begun. we are spending more and more time on our computers and mobile devices, enjoying great tv content through apps, such as itunes and netflix and hulu. >> and bloombergtv, of course. there is also a bigger i cut design -- ipad design for business customers. tom: i'm buying one. [laughter] they don't like the iran deal, but they are not bound by the deadline because president obama has not given them details of side agreements. new york governor andrew cuomo is prepared to support raising the state's minimum wage to $15 per hour. he will make the announcement today during an appearance with vice president joe biden. the state senate blocked a move earlier this year. pro football gets underway with the new england patriots taking on the p

thea, if we can move from fiscal policy, you take the news isvolkswagen, petrobras maybe right behinde corporate screw above the moment. give us the update on his giant oil company. what you look for in the rest of september and into october? from: we are waiting oakland to cut more of its investment plan given how the oil and the currency, because her member petrobras has a huge foreign debt, euro denominated being held at 4, they have increased their debt significantly in the past few months, so we are waiting for them to cut more investments and just to see what they can do now with also oil falling. julia, thank you so much, julia leite in sÃo paulo. robert hurt l.a. knows it is a global market. boeing selling 300 planes to china -- robert nardelli knows it is a global market. boeing telling 300 planes to china. you get distracted. robert: i tell you, tom, the ceo's today have an honest -- unbelievable challenge. inyou are selling cars brazil or importing cars from brazil, you look at the china market getting much softer for the auto industry. the fluctuation in the ability to hav

his is the situation with scandal with petrobras.ut is a great reminder to politicians to get things done before things get out of hand. it is a great reminder that there are consequences today for not taking action. s&pdan: as with the downgrade, it was about looking at political dysfunction, not necessarily economic data. katia: fitch had a conference last week. they said the same thing, what political disintegration is doing to the economy. this plays a massive role in terms of getting reforms across. tom: can markets tell the politicians what to do? real, it is not just the it is also the debt load across countries and companies, that borrowing costs are going to rise for a lot. companies have increased their debt load, doubled it. so that load borrowing costs are going to rise, and the repercussions will be felt throughout the economy. brendan: lily throw in a number here. we are looking at $270 billion a number me throw in here. we are looking at $270 billion. katia: it will be felt throughout the economy here. tom: let's go to

petrobras reaching a 12 year low. the brazilian real reaching a record low.odities and part brazil's own problem. they have something like $130 billion in debt. that is the credit default swap that are spiking at the highest since 2008. that is a pretty acute issue. me,: what is interesting to none of these issues are necessarily new. we have known about commodities, known about china, but it seems like something happened that exacerbated it. mike: they came out last week and said no rate increase. since then as ready stream of officials saying we are still planning on raising some time. still a lot of confusion and uncertainty. it is hard to decide what is the main issue and what is not. it has been a volatile market for the past month or so. once the swing starts getting as big as they are, it is hard for the market to settle down. alix: thank you so much. we are still watching the pope. on thes his lane landing runway in maryland. momentsd just a few ago. many people waiting to greet him. a slew of observers, cardinals, president obama, first lady, .dvice

the president herself while she whichairman of petrobras, is of course the state owned oil company, she is within the probe. her popularity at a record low. going forward, just a fracturing of the overall collision. clearly, these are things being cited. economic woes are there to be seen. the currency really slumping more than -- will the shows 60% over the past 12 months. this is the dollar gaining, the brazilian re-out slumping. that showing of course we are in a recession. and the bond market, showing the risk that is escalating -- borrowing costs and yields a record highs. for local bonds and for credit, the cost of insuring your brazilian debt, that too at a six-year be. anna: where other reforms? they have been much promised. caroline: a technocrat was brought in as finance minister in january. he has not been able to get the reforms through. his mandate was to shore up the finances, but he failed to do. hasn't he? conga as has been fighting him, because of in popularity, they have been rebelling against the austerity plans -- that is voting down just this week the delayed vote o

. >> there are a lot of politicians that have been implied in the petrobras scandal. it's making the situation that much worse. the president has about nine months into the government her approval rating is at 8%. if the downgrade going to motivate anybody, whether in the government or opposition, to change behavior? someat is the hope of analysts, that this will be a wake-up call because it is serious and needs to be solved right now or things will continue to get worse. some analysts are saying this will weaken further because people brought in to improve the which she grade -- has failed to do. some lawmakers will say, if this is done we do not need a triple adjustment, let's just try to get the country out of recession. mark: still ahead on the bloomberg markets day, a government job that pays way more than being president. we will tell you what it is. ♪ a look at the markets right now. volatility is still the name of the game. today as you can see, it is on the upside. our major indexes still hovering near session highs after the broad selloff we saw tuesday. the

stock number two, petrobras.terday's brazil credit rating account, that's the second cut and that officially makes pbr credit high-yield. it is also dealing with low oil prices and a massively deappreciated real. >> this has been an ugly story. down 73% over 12 months. stock number three, another oil company. chevron. jpmorgan upgrading to overweight from neutral. they think the stock is fully discounting the bear thesis around their projects and the dividend cut risk. they note sell side pessimism is at a decade long high. analyst calling the balance sheet "top tier" and says the risk of a dividend cut is near zero. >> you got to wonder how this sits with goldman sachs' call that oil could go down to $20. would a interesting that earlier this week credit suisse said chevron was interesting in mega cap oils but still not in value territory. >> just a quick note -- i had dinner with a market technician last night. he thinks oil and oil stocks are going to be in a 10-year bear market. negative for a decade. i'll tr

the eyes of the investing world on a couple of companies right now, vw and glencore and petrobras andim cramer tweeting out about 20 minutes agatha they're your touch stones for the overall market at the moment. those market followed us down. the nikkei in japan was slammed. with those losses it's negative for the year. oil slightly higher but brent and wti stuck in the current price range for about a month. ten year bond yields are changed. this morning it will cost you about $1.12 to buy a euro. pretty much the same yesterday. gold lower. and platinum falling below today. among the reasons that vw admission scandal, platinum goes into the converters for diesel engines. it goes in for regular gas leol engines. the stillwater mine as good the largest miner of both platinum. >> let's get a look at the markets. we'll head overseas. martin it was a rough, rough session when you look at what's been happening in asia. >> you got that right. good morning. higher on wall street and we'll see more stability your side but out here in asia it was just an awful session. you took a look at some o