the official pmi and nonfactual -- nonmanufacturing pmi points to job shedding.ervices sectors is adding work the at a fractional rates. rishaad: tom, thank you. tom orlik, from bloomberg intelligence. samsung hoping that new round faced smart to watch will herald prices.val of its share in has details. -- sherry and has details. they call it the gear s 2? shery: as a whole day will gain ground. the wearable tech market has been much dominated by apple watch. -- they hope they will regain ground. there are 2 versions of this new on the kaizentch, operating system. it will allow for mobile payments as well as remote-controlled of home devices. it will include at a glance notifications for calendars, e-mails and allows you to send text messages. it is a very tough market where apple has dominated. than 3.5 million watches in the second quarter. and they are the top provider of wearables after one quarter of sells. rishaad: that thing is samsung needs good news at the moment. shery: they certainly do. they are having a tough time especially in smart phone business.

the italian pmi slips the french pmi deeper into negative contraction territory.employment data after the break. ♪ jon: welcome back to bloomberg tv. 64 minutes into the trading session here in europe. the stoxx 600, a session low. down by 2.56%. the ftse 100 down by -- two for percentage points. tocks ofo american s this world down lower by 3%. it is the morning and it is about data. chinese manufacturing coming in at a three-year low. you kate manufacturing a little manufacturing.k. a little bit later. unemployment faces 6.4%. so that is 7000 slightly better. a manufacturing pmi coming in slightly better than expected. let's get more of those german .umbers much more on how this labor market plays into the refugee story. what can germany due to absorb these new refugees. i guess the pmi number is coming in a little bit better than expected. weake is weak, italy is ,nd germany -- while not robust seems strong and seems to be modeling through the crisis -- muddling through the crisis. one quick thing, the overall rate did not change and when you look at what happe

italian pmi was 53.8. that was a slight miss. french pmi was 48.3. german pmi was 53.3. a very slight beat. all of that summed together with european pmi 52.3. >> europe now at 113 against the u.s. dollar. we'll have to keep an eye on the currency which in august gained about 4% against the u.s. dollar. that's one of the reasons we saw the exporters in europe respond negatively and we'll have to see what happens in september. especially if china continues to devalue it's currency. >> quickly mention, greek pmi, 39.1 in august up from july. let's have a look at what european stocks are doing very much in the red as you can see. the stoxx 600 down 2.46%. this comes off the back of a weak trading session in asia. let's have a look at the individual european markets as we stand at the moment and the ftse 100 down 2.1% of course. it was closed yesterday. the rest of continental europe down as well. germany down 2.46. that follows a 10% decline in august. france down 2.2 and italy down 1.7%. >> those china concerns are weighing on asian markets down almost 4%. also weighing on

we are seeing that as french pmi is beating expectations. companiese on the oil today. .3%, but over a two day trajectory it has been painful but we have been seeing. back and theally front and center of invested minds this morning. we see china, their manufacturing data missing. contractionhere was for the sixth straight month in china. let's look at how glencorp opens up. again on, volkswagen the downside. the chief executive looks at his fate later today. auto currently lower -- mark: third year of decline for volkswagen. french manufacturing is going -- growing once again. you planarian september figure. the estimate was 48.6, the previous figure 48.3. of 51.4, which is up from 50.2, it is not all good news because private sector employment is declining at the fastest pace in 10 months. factory orders fell also, so the economic recovery in france remains lackluster, you would have to say. let's go over to david inglis in hong kong. david: high mark, a good morning mark, good morning to you. think started slowly, then midmorning we got th

we saw pmi data out from china early. the manufacturing sector fell to the lowest level in 6.5 years. intelligent chief asian correspondent tom is with us. what is the story being told by this number? tom: it is a bad number. as you mentioned, it is the lowest reading since the beginning of 2009, the depths of the financial crisis. is the third month in a row a decline from a peak of 49 in june. what it suggests is that china's stimulus continues to fail to gain traction on the manufacturing sector. anna: what does this tell us about where china is going in relation to the fed? china weakness is a critical reason why the fed decided to not increase interest rates. does this number tell us anything? great think that is a point. janet yellen specifically cited concerns about china as one of the main factors which kept the fed on hold in their september meeting. the big concern for the fed is of world shaking financial turbulence that we saw from the collapse in the shanghai equity market and the surprise move by the pboc in

august wasl pmi for 49.7. joe has left interest decliningnged as the currency cushions the impact of lower commodity prices. the bank of us joe you governor kept the cash rate at a record low. -- low to present. guy: oil's biggest three-day rally in 25 years. surging 27% over three days. augustay, the most since 1990. remember, we were having a were at that point. oil jump to the highest in the said it wasopec ready to talk to other producers to achieve a fair and reasonable price. anna: the tech giant google has teamed up with a french company and they are aiming to tackle new ways to treat diabetes. what are we expecting to see after this new partnership? >> in a broad sense what google says it wants to do here is change the way that diabetes is treated from being reactive and episodic to pro active and preventative. it is teaming up with different drugmaker to work on a number of things. smartof all, things like insulin delivery devices. smart measurement devices. devices that monitor glucose and upload the

chinese pmi came out at 47. let's see what the european pmi does and the u.s. pmi. there is this assumption that everything is driven by emerging market growth. but actually develop market growth is ok. there is an interesting contrast between the stories we are running today. francine: yesterday we had figures from alabama. -- from alibaba. and they were not that bad. given what the fed has done, are you more worried about equities getting ahead of themselves now then you were a couple months ago? because, if we do not have a process of normalization, then this cheap money fuels asset bubbles. michael: we need to stop the normalization process. francine: but we are not. michael: i tried to argue that last week. here's the interesting thought. there is an uncertainty about chinese growth. i think the fed by highlighting the weakness of the global economy has shown a light on that uncertainty, almost in the sense fed it. if you look at the market reaction since the fed, the fed you doite dovish, yet not get a rally in equities because you're compounding investor fear

pretty amazing considering china's pmi saw seven straight month of contraction.ith a continued to pay attention to volkswagen. discountding at a 51% to its european auto peers. it's gotten completely destroyed over the last few days. deutsche bank downgraded them. it seeing estimates cut by 35% over the next two years due to this ongoing scandal. it's having a permeating effect throughout the markets. look at the euro versus the dollar. that's a 200 day moving average. you see that euro below that longer-term trend line. a note today saying that is because of volkswagen. it is rather the company's specific event can permeate all different kinds of asset classes. let's look at what is making news this morning. china's president is working -- alleging to work with the u.s. to fight cybercrime. he spoke to business executives last night. he said china is a staunch defender of cyber security. >> the international community should work together to build a peaceful, secure, open, and cooperative cyberspace. aina is ready to set up high-level joint dialogue mechanism wi

euro zone august composite pmi data coming through. the final composite pmi 54.3. that's a four year high. a lot stronger than anticipated. the highest since may of 2011. the final output prices 50.1. expansion is higher than the flash estimate and the july final reading. the highest since march of 2012. the euro zone final services pmi 54.4. higher than the previous estimates out there as well. they're looking at the final services employment pmi. sonnet-net we have the august business growth at a four year high although still slightly weaker than what could be hoped for. we're just above 50. >> important to point out germany was a bright spot. private sector in germany. it's growth accelerating in august at the fastest pace in five months being driven by the up tick in the conferring and services sector. we have the ecb meeting coming up. what is mario draghi going to say about this data. >> and whether we're data dependent on this side. there's a lot of analysts calling for some indication about whether or not we should be considering on with quantitative easing

not just today's data, the manufacturing pmi, you also saw softening in the service and pmi. it is still expansionary, but it testifies to the fact that across the board, chinese growth is suspect. we continue to think it will be sustainable growth, that the chinese authorities will manage. the situation. -- will manage the situation. that is what we are seeing -- verizon risk premium. francine: if they see it like you do, they would hold off, increasing interest rate in september. if you were the ecb, you would add to qe. marvin: let's break those into two pieces. i think we heard very clearly from a variety of different and officials over the weekend that while they are concerned about long-term trends and inflation, the u.s. economy is ready for a rate hike. certainly chinese fears play into that, something they are going to monitor --francine: acknowledge it. -- montior. francine: they acknowledge it. marvin: but they aren't saying they are going to let a determine their policy. payrolls are going to be much more important. what's going on, the strong orders we got. all t

marly the services pmi now disappointing like the manufacturing pmi has been for sometime.t's weighed across the board. the shanghai composite down 1.3%. the nikkei bearing the brunt of the declines this morning. japan down 3.8%. don't forget the likes of the dax finished august down some 10% but falling a further 2.7% as things stand so far this morning. we have had pmi's out of europe as well. those however were in line with expectation. >> let's get you a rundown of what to watch this trading day. the august ism manufacturing index is out at 10:00 a.m. eastern. the pace of activity is expected to have held steady with the previous month. also we get july construction spending which is expected to have picked up after the smallest increase in june. eric rosengren speaks about the economy at dollar tree and h and r block report earnings. u.s. futures report a lower open. the dow is calling for a lower open and nasdaq off by 98 and s&p 500 lower by 43 points. august was a tough month for hedge fund moguls. both were down 5% for the month. sources say green light capital fel

that's why today there's no great reaction to the pmi figures. what credits we said yesterday on the mining stocks was until we see where china and the emerging markets are going. we cannot call a bottom. that's not the say that you're almost there. that's important where we are today. >> by the way in reading about it and the struggles it does give you a window do the fact that they're companies and the workforces and down 30 percent and they have really struggled and it's not that they're looking for local partners and building up the infrastructure and looking to flourish in the country you and american leader are being told don't just complain to us on what you see and you need to tell the chinese themselves. this is the opportunity to tell them yourself. >> yeah, getting some protests as they arrive yesterday. interview, and i think that it was in the washington post saying that if they did not expect the protests, they did not get the memo. we know what it's done and cooper had the worst day since yesterday. we know that's brought clen core

cents ahead of the fed decision and chinese pmi data. ino counting the opens japan, australia and korea. let's go over to japan. 25, 2.7% in the last close. the previous day was down more than 4%. it is about the 17,000 mark. teachers in chicago pointing to a higher open on this thursday session. showingen is weakening, that perhaps risk could be back on. 119. 91. hong kong and china are both closed for national day celebrations. mainland markets will be close for one week. china, not taking a holiday here. it has taken another step to shore up flowing -- slowing growth. policymakers are targeting the largest part of the economy and it is property. is quite timely, actually. you mentioned we are starting the long holiday. typically families have time to shop around for apartments. yesterday we talked about cars in the tax cut takes effect today. now it is apartments. basing stepping up and support for consumers. if you look at the measures suddenly the cost of getting married in china is getting more affordable. i used to live there and

the services pmi, which does not get many headlines compared to the factory pmi, the services pmi haseen holding up better than the factory pmi. certain areasat are doing a bit better. jon: the piece of data that you and i happen talking about -- the chinese facebook says that estimates of is divorced from reality. what does this mean for the outlook in china at the pboc? >> there are growth gaffes emerging. the 7% growth target challenge for 2015. want to geters there -- on the monetary front it is becoming more positive. ands now below the cpi rate authorities will not want to erode the returns to savers. for industrial companies the lending rate is quite high. for fiscalto room response. economist says there will be more spending on infrastructure which is basically how china does its stimulus and that is needed. it remains a big drag on the economy. let's get some final thoughts from luca paolini. china is goodin there off and a host of people who want to prove that it is bad. and the chinese beige book is to do that and now the data is not so good and you get people coming out of

we had pmis out for europe but those were largely mixed. volkswagen has been included in this rally so it's probably been lead by that and the auto sectors. let's look at the individual markets and you can see that the dax is up nicely by about 1%. that has suffered heavily following the volkswagen scandal. let's have a quick look at asian markets. the story there not so positive. pmi data out of china was softer than expected and that's effected the likes of shanghai and hong kong markets. they closed down over 2%. australia also down over 2%. susan. >> okay. yeah, let's take a look at why asian markets are feeling the pain today. this is after manufacturing pmi figures for china dropping to a scary 6.5 year low so the september figure dropped to a read of 47 that missed estimates also declining from the final august read of 47.3. export orders shrinking since mid 2014 while new orders hit a four year low and when it comes to china data as long as things don't get worse the markets like it but in this case the number keeps getting uglier a

china pmi weakness in a six-point five-year low. french pmi better than did good with the reactionary volatile market. when you talk about the u.s. economy, people want to know about home prices dropped three months in a row, looking at the labor market and how you shape of the u.s. economy in the next few months. what you think? >> it's basically stuck. on average to 2.5% growth and we are likely to be over the next two years as well. we are stuck in this environment and lucky we have a backdrop of tradable goods and commodities in a large service industry and grow around. nicole: thank you for joining us. unbelievable how bad is that of china means that there is. lauren: pope frances making an historic visit mini usb -- in the u.s. the pope arrives in washington d.c. yesterday and will visit the white house. it speaks of 15,000 guests on the south lawn. president obama expected to talk about climate change with his meeting with the pope and later today the holy father will hold the first-ever canonization mass on u.s. soil. he is

we saw the disappointing chinese pmi. that's down by .2%.s a little bit higher today but crossed the handle for the first time ever. so continued pressure on the emerging market currencies. in the commodity space all eyes on platinum. it's rebounding today and this story is related to vw because platinum is a big component in the diesel cars. we're off by a third of 1%. oil prices just a tad higher ahead of the u.s. data. >> thank you. we'll change focus and look at a crazy toir with a lot of attention the last couple of days. the ceo has told nbc he'll lower the price of a pill which as i said has been at the center of a drug fire storm. landon has all the details for us from cnbchq. >> hey, good morning: he sparked a whirl wind of out rage this week when he jacked up one of his drugs 5,000% to $750 per pill. he responded by saying he will lower the price of the pill. in a phone interview with nbc news on tuesday he thought it made sense to respond to the public's frustration and role back the price. though he did not specify what it will b

there's two government provided pmis. the services sector and one for the manufacturing sector and one for nonmanufacturing and privately compiled pmi for services manufacturing and updates to all overnight and all of them tick down from where they were in july and in the august release. it's a matter on the floor sof were the weakest seasons the financial crisis. pmi was the weakest in 14 months. everything pointed to a little bit of a leg down in august. it's a matter of the degree by indian a to. >> you're not in china, right? is that a pittsburgh backdrop i'm looking at? >> the skyline before sunrise. >> you can speak honestly and tell us what you think about china honestly? >> what's going on right now is there's a big financial correction for chinese business sentiment you saw a drop in august and that makes sense when you see a big downturn in financial markets. >> but my big question is what can i believe of this stuff? is that kay at a you're quoting me this morning, is that believable data or is there a sense th

the pmi is a good illustration of this difference. gets all the headlines and it's been very weak. three-year low last month. yet the services pmi is looking okay. a bigger part of the economy. doesn't quite get the attention level.factory >> that's numbers come out tomorrow. good to look at other figures as well. much for joining us. coming up next, imax seeks to cash in on providing the big screen experience to china. details on the company's hong when trending business continues. ♪ . sure, tv has evolved over the years. it's gotten squarer. brighter. bigger. it's gotten thinner. even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. yvonne: top stories. aftershares are dragging officials added to speculation. presidentf atlanta said although he voted against that the september rate hike due to market volatility, it was a close call. the fourth policymaker to speak out in favor of the rise happening sooner rather than later. the state of the chinese e

a second pmi does a second pmi a mostly privately run companies also sewed contraction.rivate sector is showing volatility. it is still expanding, but weaker than july. going through a bumpy deceleration. it has been exacerbated by the current stock market route. betty: the stock market route is going on today in the u.s.. bloomberg's matt miller has more on the market day. as i understand, we have 90% of the s&p stocks in the red so far? 95% as we move lower and lower. at one point this morning, we only had three s&p 500 stocks gaining. right now you can see that we are off 400 points. as the session lows for the dow jones industrial average, off 2.5% on the s&p 500, 19 went 23. getting closer and closer to august lows. we were down to 18 point 77 at the lows. look at a couple of the chinese index trackers that i want to pull up. a shares is one. fx i is another one. you can see ishares, she mock, 4.7 5%.he index is down the deutsche bank ex trackers is down 3.5%. thisked to see how closely track, the show engine 300. if you look into my terminal, you can see a little s

yvonne: some disappointing information coming out of their when you factor in pmi. i was talking to someone from jp morgan and they said it is serious. growth isnstrates how struggling for momentum. the economy is struggling to get interesteven after rate cuts since november. even after the central bank has taken a lot of steps to try and get lending going. they are funneling credit into infrastructure to try and get real activity on the ground. are someow that there mitigating factors, we know there are still big factory shutdowns on september 3. the authorities wanted clear skies to close down production, but that does not explain everything. the manufacturing sector, and the factory sector remains stuck in the mud. they are suffering from deflation, and falling exports. the real growth drivers of china's economy are struggling. the new engines, services and consumption, while they are doing well, and better than historically, it is still a not to fill the gap. normally good news -- yes. thank you so much for that. we take a look at some of the other stories we're

we see pmi keeping up very nicely. on balance, i think the ecb should send a message of sosserts -- reassurance a, far, things are not bad and b, if they were to turn down, we would react by adding to asset purchases. manus: a number of your goes mario draghi made a speech that he will do whatever it takes to save the euro. what is it going to take to push him over the precipice to do more? what would be the driving force to push the ecb to raise the rhetoric states? holger: they will probably race them a little today by pointing to downward risk and probably by making modest adjustments to their own gdp forecast. but we are not in a situation where anything drastic from the ecb, such as a promise to raise asset purchases next month or the month thereafter would do any good. at the moment,a drastic sowonse week -- would confusion. staying calm is the right thing to do. if we are lucky, as in the case of the omt, this a promise from london, he may never have to use the safety net. francine: we have been lucky so far. wo

given their pmis, they were pretty much in line. i think it's a volatile time. we're very much hostage to the macrodata points, we haven't been hearing from companies. until we get through the fed we may be in this trading range. i think you got to make the shopping lists and you have to feel good about the underlying fundamentals in the united states. loi oil prices remain a fuel for the consumer which is an important part of our economy. >> josh brown, what are you watching? the nearly 30% move high anywhere oil over three or four sessions was an abberation, today it's down 8%. >> it's a commodity. volatility is the norm in oil. not the exception. and at the end of the day you're talking about one month's contract on a futures exchange. you're not talking about prices at which barrels of oil physically are being exchanged at. so the 27% rally is a great data point. but not terribly important. what is important is the fact that we've rebounded on the s&p, about 50% retracement from the may highs to the august lows an roll back over. we are not getting the tradi

manufacturing pmi fell into contraction for a 3.5 your low.ate pmi of mostly privately run factories also should contraction. goldman sachs says the economy is going through a deceleration. that has been exacerbated by the current stock market route. monththe turbulence last has not been kind to greenlight capital, the investment firm led by david einhorn. falling 5.3% in august. scarlet joins me with more. scarlet: august number is not pretty. tot brings the year date loss at 14% for david einhorn. the second year that the hedge fund has lost money since david einhorn cofounded it in 1996. the last annual loss was back in 2008. that was a brutal year for most funds when it lost 23%. said in augustrn the overall market environment has become acutely unfavorable for our investment strategy. most of its peers are beating stocks. scarlet: and the volatility has been good news for hedge funds overall. global hedget the fund index, down 2% in august, better than what it was for the s&p 500. for the year so far, global hedge fund index off 1% throug

those weak pmi figures have dragged many markets in the a a asia-pacific region lower. the sjeng hi composite closed at 3166, the index down nearly 5% at one stage but the losses were limited by the afternoon. the benchmark ended in the negative even after beijing's support measures. hong kong retreated from friday's gains. the hang sang finished 2.2% lower. investors sold shares on growing worries over the economy. indonesia snapped the five-day winning streak ending 2.15%. sydney's index lost more than 2%. the kospi fell 1.4%. chinese financial authorities have made a new move to support the country's volatile stock market. they are telling listed companies to take steps to raise the value of their shares. the finance ministries the security regulatory commission and two other financial watch dogs are calling on companies to pay shareholders higher dividends in a joint statement. the authorities will give firms financial help to buy back shares if prices fall below a certain level and the government plans to simplify procedures for corporate mergers and realignments.

the italian pmis are close to an all time high relative to the rest of the european pmis so a couple years ago people were bullish on spain and it had it's recovery italy is much further behind but if you like it's where spain was a couple of years ago so the economic momentum is improving. earnings revisions for the italian stock market are positive for the first time in five years and valuations are still attractive. >> let's talk about central bank policy. the ecb meeting coming up tomorrow. what are you expecting from mario draghi. some are saying more dovish commentary given developments like the volatility in china. what are you expecting from mr. draghi and has that factored into your calling european stocks? >> i don't think it's factored in at this point. in our opinion the ecb is in easing mode still and what we expect is to maintain a pretty dovish commentary. we don't think they're that close to doing anything additional, extending the duration of qe or up sizing it. they'll continue to just use verbal methods to continue to talk about what they could do if things get wor

so china's pmi numbers were released today.nomy? >> reporter: well they are confirming what a lot of people thought was happening and that we are seeing a wider shift in the chinese economy. we saw manufacturing contract in the month of august and the service industry slowing. the rate of growth slowed. in terms of the numbers, it all sounds technical but if you have a number above 50, it means that part of the economy is growing. if the number is below 50, which is what it was for manufacturing, that part of the economy is contracting. why is this important? it's important on many levels. the government needs a new economic policy. but along with that we've seen all of these not just jitters, a lot of panic around about the chinese markets right now and the impact on other wider markets. is that a reflection of what is happening in the chinese economy right now? some people are saying there is a disconnect between the two. not many chinese investors are invested in statistics. about 1 in 30 people. and those oversea foreigners

no surprise china's pmi goes negative. we're on alert for macro data. europe is looking at losses around 2 pc. shanghai down 1.2 ten-year hanging back and oil settling in a rally. shame worries about china. the country's manufacturing sector contracted at the fastest pace in three years. it wasn't a miss necessarily because people including you were expecting this today. >> we have a worldwide slow down in a bear market. it's a mini bear. it happened out of nowhere. and this slow down is taking people by surprise. i don't know why. if china is decelerating, a lot of countries will. the good thing is the dollar has gotten weaker. maybe that's because the chinese are selling their german bonds to be able to prop up the market. there's a lot of lies being told about china. they say they're not buying. they're propping things up. they like it when the shanghai is over 3,000. the shenzhen is propped up pretty much every night. crude coming back to a level where it's getting interesting given the fact that good crude people are telling me the inventories are

that was expected, but what wasn't expected was the services pmi.ervices industry is expanding at its slowest pace in a year. that is important because more optimistic economists here had been hoping the services industry would be a bright spot. now we are seeing it's just another indicator that the economy here is decelerating. >> yunis stay there. >> it is not new news. that is still in expansion territory. again, the economy is probably going to slow down. we may see an economic growth falls below 7% in the third quarter but all the stimulus, remember what milton friedman taught us, you're throwing everything but the kitchen sink in terms of moonity poll system more is yet to come. >> what investors are struggling with is the linkages between whatever degree of slowdown we are seeing in china, the u.s. economy and emerging economies relying on china for growth. >> fisher made it clear to the extent china is the second largest economy in the world, almost accounts for 15% of global economic output, it has large tenticles, we cannot ignore china. y

the case in point is the two pmi the official pmi for manufacturing has been in the doldrums for themonth it was a three-year low. services one, which accounts for a larger portion of the economy is showing strength. this is very important for employment because it takes forr inputs of people manufacturing, services you need more people. you can have the sustained robust employment situation, which we are seeing in china even with a slower pace of growth. guy: thank you very much. malcom scott, joining us from hong kong. turkey,t's turn to turkey's lira has been a second worst-performing this year. gained antral bank has reputation for being unpredictable, what are investors looking for from today's decision? >> minister. -- that is true. investors are thinking it could be very predictable, because they have indexed their method next move to the fed. they said as the fed normalizes brian terry -- monetary policies, so will they. guy: in terms of the fed and the central bank and the government, which one do you think that the central bank listens to? the ministration has put pressure

tonie: michael, i was going ask you about the pmi out of china this morning.t under 50, is just an contraction territory. it seems to have an impact on germany, france, the other markets, consequently here in the u.s. why such an impact? michael: it is surprising because it was under 50, so that indicates it is shrinking, however, it hit the estimates right at the nose. how they have a surprise is it to anyone, i'm not really sure, but the futures market was before that data came out, and korea has very poor exports data. it all ties back together. obviously, people probably anticipated these numbers to be weak and sold ahead of it, but futures trading the u.s. -- like affect, it is not necessarily indicative of people looking at value. it is hedging instruments and that sort of thing. tom: the cacophony of august and as we set ourselves up for autumn, i think metta mudguard hit the ball out of the park. we have seen the new mediocre -- i think madame lagarde hit it out of the park. we've seen the new mediocre. jacob: some of it is for cyclical reasons, some o

china official factory the pmi down from 50 in july. below 50 indicate traction in the manufacturing sector. china's president is planning the biggest overhaul in the country's military and 30 years. -- in 30 years. there would be fewer officers and the number of ground troops would be reduced as well. tensions flaring at greece's northern border where 1500 migrants are waiting to enter macedonia and headed north. people mainly from afghanistan and pakistan tried to rush the border currently being guarded by macedonian police. please respond with stun grenades and batons. -- police responded with stun grenades and batons. on oil which rounded off its biggest three-day gain in 25 years. today, back to being down. at session lows right now. that three-day rally put it in a bull market. alix steel joins me with context on that. so much for the bull market. alix: exactly. was this all a technical? saying 25%ad a note was driven by sentiment and not reality. let's take a look at the two factors that drove oil higher yesterday. the news that

the pmi out of china was below expectations, the weakness showing since 2011.with apple's tim cook, warren buffett and a handful of others. the migrants in france, police forced to use tear gas for an illegal camp in the country. and the situation escalates in europe. ♪ happy birthday to you, happy birthday to you ♪ ♪ happy birthday ♪ >> well, decades of copy right claims out the window yesterday as a federal judge ruled that warner chapel never had the right to charge for the use of the happy birthday song. warner had been charging since 1988 with a disputed copy right. they granted only the right to the specific piano arrangements of the music not the wording and the song. turning back the markets, futures are pushing higher although we're well off the highs of the morning. the nasdaq fell back yesterday, joining the dow and the s&p 500. we wanted to bring in bill kennedy to the conversation. thank you for joining us. >> good morning. maria: so much volatility in this market right here. what do you think is most important for investors to look at if you're a

the pmi is up from the preliminary number. germany, 55. france coming in a little bit. retail sales were a little bit better. >> you want to be in the european bristol-myers. i like procter & gamble, because it yields so much. this is good news for unilever. they will not stop until they take as many sales from our companies. >> you do not believe it is a malt ter of traders here trying to live vicariously through more accommodation in europe? >> no i think it is traders who are wrong. they can really be wrong today because they don't have china to be wrong over. they are not wrong in two but noenl one. >> when i say they are wrong, look at the results. it is not like someone has this huge bet and it is working. you don't hear about that. what i do find amazing is that you got up in the morning and didn't see the chinese government have to prop up stocks. that's what they do. this military holiday, this memorial holiday is taking china off the front page for a couple of seconds, and, boy, is that positive? >> we will keep our eye on that. ahead of this weekend's g-20 me

matt: chinese pmi, the worst since 2009.ight and bounced back this morning. you saw oil come down overnight and come back up today. david: matt miller, thank you very much. another quick look at the south lawn of the white house as we await the arrival of the pope who is making his way down massachusetts avenue. he is in a motorcade heading down massachusetts avenue and is expected to speak shortly. later this afternoon, he will head to the basilica of the national shrine of the immaculate conception to celebrate a mass at about 4:15 this afternoon. coming up, the u.s. stock markets open. back to tom keene, mike mckee and tracy alloway. ♪ tom: from rome to havana and now on to washington, the pope on his way to be greeted by the president of the united states at the white house. marines await as to some 15,000 including john gary hring.n gear michael: back on the continent, the pope left behind news happening. mario draghi is testifying before the european parliament. a lot of people have been wondering if he would signal th

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we got chicago pmi, it's not the last big number we'll see for the week.w brings auto sales, manufacturing pmi, we'll hear from yellen this afternoon in st. louis. then the jobs number on friday. >> i think i've been listening to yellen. it's clear what she's been saying. we might tighten, but then we might not. so it's really clear. again, not being facetious. that's what she's been saying. i will point out the selling has abated. it's not like the buying has come in. from the work i've done, it's not like you're seeing those giant sell orders repeat. because the fiscal year is over. people may think all year, copper is up which helps glenn corp. vw, the justice department may not go after them. >> possible loophole. >> the justice department does whatever it wants. >> they can probably build a criminal fraud case. >> the justice department? law of the land. >> health care is bouncing nicely. broadly speaking. biotechs. >> you think the baxter helps? their point, increased stake? people feel -- >> possibly. >> value. the allergen thing you mentioned. tryi

. -- chinese pmi ever. we know the fed is watching.ncer: from our studios in new york city, this is "charlie rose." charlie: at just 40 years old, bjarke ingels has established himself as one of the world's most inventive and sought-after architects. his current projects include a pyramid-shaped tower on the west side, a danish power plant, and working with another architect on the google headquarters. early this week, it was announced he will design the fourth tower at the world trade center. 2 world trade center will be seven separate boxes stacked together, and i am pleased to have him at the table for this first time.

we said pay attention to china pmi. everyone is watching chinese data. including janet yellen. that came out at 9:45 a.m. new york time. instantly, futures fell. the worst numbers since the crisis, well into contraction territory. the market did eventually rebound, but i have never seen u.s. futures react like this. alix: new export orders were down. the idea is if you have a lot of inventory, not a lot of new orders, what does that mean for factory production? nothing good, that they recovered, which is puzzling. joe: we had some solid data in europe, maybe that helped a bit. see the eyes of the world on chinese data. alix: that is what led futures lower. i charted the intraday s&p versus the oil price. the white line is the s&p. right after we digested the inventory numbers, initial reaction was a leg higher. you really see this big drop lower within stocks as well as oil. that is definitely an oil-specific thing. this, oilning to winds up leading the market. when stocks are down, the first thing i look at is what oil is doing. it wasl looked like going to regain some strengt

ups represents the pmi china, russia, and france. big declinel had a lower starting last month. we really look at this 50 line right here. that signalsw and we been in contraction for a while. the last month we think all of them decline, not just china. there are problems all over the world. scarlet: when you look at europe, unemployment in that .rea unexpectedly declined 10.9% was the lowest since early 2012. not every single data point is that discouraging. i want to look inside my terminal as well and show you globalce i tracked the flow equities. this is one of my favorite functions. it doesn't make much of a difference here because you don't see much of a move. here is where european markets open for trading. you see this big long decline, that is when the u.s. market opened for trading. ever lower declines and were just off our lows there. over a one-year period -- there we go. that we reachow back here in october 2014. over the longer term, over five years, this is still a chart that would encourage those who are long global equities, still up 46%. that's great perspectiv

joe: everyone is going to be watching the chinese pmi number. speaking of janet yellen, she is speaking thursday. that is going to be a huge thing to watch, university of amherst.etts at mat view is that it doesn't matter, both are these would execute the current bailout package but you have to watch it. alix: thanks for watching. have a lovely weekend. ♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. alix: record low -- emily: record low rates are here to stay. companies are reacting to the fed decision. emily: this is bloomberg west. i'm emily chang. the economics of the sharing economy. can it last? what will and won't work. amazon's answer to apple with new tablets and a tv set-top box.

joe: everyone is going to be watching the chinese pmi number. i it's going to be very exciting. speaking of janet yellen, she is speaking thursday. that is going to be a huge thing to watch, university of massachusetts at amherst. joe: another thing to watch, the greek election. a very close race. the market's view is that it doesn't matter, both are these would execute the current bailout package but you have to watch it. alix: thanks for watching. have a lovely weekend. see you monday. ♪ >> from our studios in new york, this is "charlie rose." charlie: in a highly anticipated decision the federal reserve kept interest rates unchanged at record low levels. the committee cited global economic uncertainty and recent fragility in financial markets. the fed chair janet yellen address the decision at a news conference today. janet yellen: inflation has continued to stay below are 10% objective. partly reflecting declines in energy and import prices. my colleagues and i continue to expect the effects of these factors on inflation will be transitory.

tokyo reacted to a couple things, all the little delays, the volkswagen emision scandal and china's pming another contraction in manufacturing. they lost nearly 2.8% thursday louvring to 17,571, the lowest in two weeks. share prices of car makers and companies said to make auto parts fell on the wideni volkswagen scandal falling 7% on diesel technology making it especially vulnerable to the news. honda drop 3%, and toyota fell almost 22%. the company holds a large stake in chinese e-commerce from alibaba, and the u.s. stock after trading with a ipo lockup. late on thursday, u.s. federal reserve chair janet yellen is scheduled to give a speech to hint at any timing of a interest rate heek. >> thanks. moving on to other markets in the asia pacific egion. in china, the shanghai composite rebounded from yesterday's 2% fall gaining .68%. some took hart from the president's statement to the u.s., picking shares that could benefit from closer bilateral economic ties. the hengseng expandedlosses on concerns of slow downs in china, hitting the lowest close in more than two weeks, sydney's index

nonmanufacturing pmi. the story we have been told over the past 12 months is short their manufacturing will weaken but services will improve. erik: i want to bring mike into this as well. is vicks is what everyone talking about. the volatility that comes as a result of the implied vote of futures. the best thing we have got going , this is the ball in european .tocks it is up 10% right now but that index, again, this is our best proxy until the vicks starts trading at 9:30. session lows. >> the caveat is european volatility has picked up at a time when actually u.s. volatility, the vicks, has stayed pretty much muted throughout the year. finally, the vicks woke up. european volatility is being heightened around the greek situation over the last couple of months anyway. erik: volatility at some point becomes a catalyst. the dow futures were down more than 400 points, now down to about the low 300s. you look at an open like this, it is reminiscent of last monday, where things get dislocated. last week, the v

the pmi gauge fell below 50, meaning activity in business is shrinking. hong kong has been cutting down at the fastest rate since 2003. the republicans have got donald trump on board. trump has signed a pledge agreeing not to run as a third-party candidate if he does not win the presidential nomination. he explained why at a news conference in new york. donald trump: the best way for the republicans to win is if i win the nomination and go directly against whoever they happen to put up, and for that reason, i have signed the pledge. [applause] vice president joe biden is unsure whether he will run for president. he says it will depend on whether his family has the emotional energy to do it so soon after the death of his son. at the u.s. open, number three seed andy murray rally to make it to the third round. he lost the first two sets. meanwhile, second-seeded roger inerer one his match second straight sets. tom: and the weather broke. it will be cooler. i think the republican party will come to regret making him sign that place because he is playing havo

the manufacturing pmi has been above 50 42 out of the last of an teen months.s not great, but manufacturing confidence picked up and i think that's a combination of the weaker euro and better demand growth in the eurozone. joe: we have to talk about the gap between beef prices and chicken prices. what do you make of that? bob: unfortunately, we are finishing barbecue season. economists talk about long cycle and beef is a long cycle. it takes a long time to develop .eard him a bring it to market when grain prices went up sharply in 2007, there is a big move to market which cap prices down and then a dearth of supply. we have seen grain prices come down and herds are increasing. are beginningwe to see a turn in beef prices and they could go lower. joe: fantastic stuff. thank you for coming out. scarlet: we will be right back. ♪ scarlet: i'm scarlet fu. joe: i'm joe weisenthal. "what'd you miss?" hat did you miss -- scarlet: don't miss our coverage of janet yellen's speech on inflation and monetary policy. joe and i will bring that to you in just 30 minutes. janet

to july, thene economic conditions, the manufacturing pmi, it really started to deteriorate and rapidly the copper price. explained to me why we see a premium for copper in china versus in a london? it does not make any sense. dane davis: that is a great question. i do not know if you remember scooby doo, always the obvious solution is then they found a at the end of the episode, it was not obvious. with a copper premium, what it signifies is the downstream demand in china is very healthy. a desire for the product and willing to pay a premium. what we think is happening, what barclays is saying, if we look at our survey data and talk to people on the ground, the demand is weak. it is certainly not strong enough to justify the strong premium. what we think is happening is the smelters, the people who produce within china, are refusing to sell within a week price was holding the metal, they are trying to play the weak price. alix: i love it. there are making the product and not selling get distorting the market. good stuff. thank you, dane davis. alix: we will be right back. ♪ alix: i am

i would like to see the pmi indicators out of china improve a bit.here's clearly a lot of credit out there, and a lot of that is focused on emerging markets. what keeps me up is any signs that will turn into a more systemic prices. i don't see anything outside of the news we see on a day-to-day basis. dan suzuki of bank of america merrill lynch. alix: when we come back, china may not be in as bad a shape as you think. ♪ alix: before the break we said we had a chart that shows china may not be as -- in as bad a shape as you think. this orange line, the monetary conditions index is rising. it could be important, it shows credit is growing again and hopefully it could impress an increase in growth and bring about emerging market stabilization. one company that is dearly hoping for a more stabilize chinese economy is glencore. analysts warned today there was little value for shareholders should raw materials prices persist. joe: glencore has been better after investors retreated from commodities you to the chinese slowdown. challenging environment for mi

if you look at the composite pmi for spain, strong, france, weak. let's get to it, it was all about the ecb, mario draghi lowering the growth and inflation estimates. saying that the ricks remain to the down side there forehe was stressing the ecb's willingness and ability to act. they have increased the national companies on bond buying. from 25% to 33%. this is the balance for mark oswald as of 8:00 a.m. you could describe draghi's performance as stumbling, no discussion of changing the time commitment or the volume of qe program. don't get that wrong. in addition you might see the bond-buying caps being raised as a sign of difficulty with the existing program. not a precursor to expanding qe. it's boosted the markets, it's further soothed how europeans feel. a couple of sections shifting today. the miners are substantially higher. this after rio came through, reaffirming its target for steel in china despite the fact that bhp billiton cut theirs back in the sector of glencore. >> and another sector doing well is the ail sector across europe. led

and after the pmi dropped to the lowest in more than six years. that was also well below expectations. asian stocks were sold off almost everywhere at this week. let's see the first makts that are open at this hour this morning. seoul is up 7:%. australia's s&p is up half a percent. i'll definitely keep track of automakers today after the volkswagen scandal. >> obviously that's a big issue. let's switch to current cease. what did we miss? >> as for the yen, not much. it's pretty range bound. that's obvious because many end traders were also away. dollar-yen 120.26. the euro moved quite a lot after comments from the president of the bank said the ecb is ready to take stimulus measures but needs time to do it. the euro rose against the dollar. it's now around 1.1190. the tokyo stock exchange upgraded its system for high-speed trading today. that's it for me. back to you. >> thank you very much, mai yoshida reporting live from the tokyo stock exchange. >>> economists at private research firms are down beat on the outlook for japanese corporate activi