q.e. 4 or a u.s. rate hike?t's get up to speed now with what else is on our radar this morning. zurich's conditional offer of 5.6 pounds a share about billion pounds. they have given them until september 22 to make an offer. francine: the standoff on the korean peninsula is over at least for the time being. the north agreed to lift its state of war and the south said it would halt broadcasting propaganda across their mutual border. manus: alibaba the i.p.o. price for the first time. dropping below its september price, $68. surging to a high of $1189 ra share last november. they have -- $119 a share last november. francine: the car booking company uber is looking to raise at least $100 million in china according to an offer seen by bloomberg. investors waiting to put in a minimum or $400,000. manus: pakistan's rupee has sunk to the weaks level since march 2014. the nation became the latest to devalue its currency. one person who has view is morgan stanley's -- hans who is still with us. my question is we have see

francine: more q.e. possibly on the way? mike: i was running charts.uary, you don't round the 60 billion a month, they are bang on track. they are sticking to their guns. they are going to need to do more than that. the european economy is not in bad shape. more all for liberalization of the labor markets for you look at spain, italy, france -- they are doing what they need to do. you've still got around us unemployment in some countries, particular spain, but it is getting there. if we need you more, we will do more. i'm not sure they need to do more. started in march. it is now the end of august and we already had a market debating about whether or not they're going to complete this program. now we are talking about them doing more. let's just take a deep breath and say, it's clear they are going to complete this program. it seems, as you say, the world has gone crazy because we were saying the same thing about the fed. the fed is tightening but it may do some q.e. or even lower interest rates. our expectation remains that the next move for the fed i

a lot of central bank surprises easing almost everywhere and q.e. from the e.c.b. we're quite there yet. the inflation numbers are heading back down. we need to start looking at inflation once again. inflation expectations are falling, they are very low everywhere the numbers are slowing. francine: michael, thank you so much. michael metcalf from state street global marks. manus: we have our twitter question. as michael just said, maybe we should have hashtagged the e.c.b. looking for a council dipped inflation. what central bank has the circuit breaker? francine: the only thing i know for sure, if i'm a central banker now, i would be worried. ♪ manus: welcome back. this is "the pulse" live streaming on your ipad, television and broob.com. volatile swings in china's stock market, they report earnings. one of which came out today. a 50% drop in profitability. let's bring in our managing editor. we have seen it. we're waiting for them. just give us a pick for these -- of the energy. >> it varies a little bit. cnooc is a pure oil and gas producer. they have horrible r

china day when it did two weeks ago by letting the currency go to pave the ground for a chinese style q.eey need to go down this path if they want to put a flow underneath the stock market. the only way to do that -- they have to let the currency go. it is not easy. joe: they let the currency go. what are the aftershocks of that for the global economy? shock.a big we are talking about the celebration of the end of the second world war. and -- the chinese prime minister comes to -- the chinese president comes to washington to meet with obama. if the renminbi were to go down another 5%, you have to assume that people are going to literally start to think about competitive devaluation across asia. you will see basically monetary prices going down again because the chinese devaluation will erode chinese purchasing power. in our point of view, it is going to be highly deflationary. the first of the fed hike will be pushed out even further. alix: when? david: i don't know. nobody really knows because at this point much is riding on what happens to china. i think from our point of view, we don't

esther: i always had the sense from the various iterations of q.e.dertook which were designed to support asset values, to boost asset values, that this could be a consequence. this could be one of the costs down the road. and so i think we have to be mindful of that. we have to think about that in terms of the timing of our policy. mike: signaling and guidance, would a near term move, a september meeting move, impact markets and the economy by reinforcing confidence in the growth outlook the fed sees things as getting better, or might, if you held off, it suggests to people that the fed sees the economy getting worse? esther: we'll have to see what things look like at the time of the september meeting. my own view has been for some time that the economy is strong enough to begin that normalization process. i think that would be a sign of confidence. it would limit some of the uncertainty that i think is out there today. again, seeing where we are in september around those issues i think is very much going to be part of the discussion. the fed's credi

one thing that occurs to me is the game that we played with the fed, where we were going to go into q.et aggressively, it works when the globe is not doing the same thing? how do we get out of it? >> if everybody does it at the same time, it works. >> it's trying to get out of it first. >> no, no, the fed is out of the q.e. game. >> we're still at zero interest rates. that is supposed to be for emergencies only. >> actually i think it's an important issue, because i think the united states is emerging from a liquidity trap, meaning that you don't need to be at zero. and i think the fed would like to have what i call a valedictory, notwithstanding the fact that fiscal policy was going the wrong direction so i don't think -- that we got an inflation problem and the economy is too hot or anything, it's simply like the graduation speech of the number one person in the class when you were in high school. it's a valedictory, we did it. >> but it rings hollow, especially if it's done to save for their legacy purpose as opposed to being the right thing to do. look at the u.s. dollar. now look a

eligible for q.e. if certain measures are made or granted. this is a story that will be with us through the rest of the year. francine: will snap elections really be that bad? if we go to snap elections he could some kind of majority with people that are more qualified and stable. >> that is possible. you could say that would certainly give european creditors more confidence that he has a mandate to execute. the markets have been moved around so much by election uncertainty the couple of years. we have to be concerned there is some knee-jerk reaction that uncertainty is a bad thing. anchor: one of the -- saying that the i.m.f. needs to be onboard and that hecht imagine greek debt extension to win over the i.m.f. . it is come. it is just a -- it will come. is that your scenario? >> it seems like middle road twheen issue where by greek debt is clearly on a long-term basis, very difficult for them to deal with. on the other hand, the i.m.f. 's proposals or hinting that debt should be forgiven is a political nonstarter in certain eurozone countri

you put that together with a strong united states and q.e.nd we fell reasonably good about -- feel reasonably good about europe. we have been overweight this european the markets have performed well. we do not feel like -- we're reasonably comfortable with the direction of the eurozone. francine: do you feel comfortable? the fed is about to tighten. that will have an impact on the eurozone. then we have china. if they are doing something because the weak growth is coming out very soon, whic also explainsh the wek oil price, than it is bad news. the recentou look at drivers of growth, it has been domestic demand, household consumption as the fall of oil prices and the fall of on the plumbing has helped a bit. this is leading the recovery. sense, in an a huge sense gdp is still below its peak.sis it will not really take off until businesses start to investigate. if we look at it in the area of economy that has not done so well it is investment. investors will be more confident and recovery before we see that take off. manus: just to come back f

did q.e. work? hans: no. the more depressing thing is this quarter is going to be worse. all of the great uncertainty that greece brought. it's going to be much worse in q 3. history does not disclose its alternatives. what would have been had mario draghi not pull the trigger? tom: what does lagarde -- draghi need to do? i think this is a currency war. quincy: he has got to get the euro lower. it now needs to be pulled back. a major exporter in the eurozone itself. so, you need to have strength in the eurozone. but also to china. of lombard street research and the focus on the netherlands. whether it is finland or the netherlands, these countries matter. olivia: of course. i'm thinking about deflation. that is the difference between nominalowth versus the level. what has changed? deflation. deflation is not unique to this quarter. what else happened in greece that was unique? was there a boost in tourism. was it a period of stability? jonathan: there was a lot of tourism. incraseased spending. people anticipating capital controls. tom: give is the update on greece. i'm l

louis fed, i'm sure you have seen the q.e. theory not well developed.ffect of asset purchases was mixed at best. i don't want to look too much in the rear-view mirror. are you seeing any buyers remorse from various elements of the fed. >> i have just finished the book. it speaks to the fact that the fed had no choice at that stage about you to experiment. it experimented in real time with untested policy instruments. they were untested. there were reasons to believe that all they could do is buy a bridge for other policy makers to get their act together it doesn't surprise me that now the analytics are catching up and question marks as to effectively. they had no choice at that stage but to experiment and it did. >> finally, mohammed, this is all really interesting. the most important question is scree know smith and whether or not your admiration for the jets remains in tack. >> the fact that they started self-disstrucking before the season started should not come at a surprise. at least we have the mets this year. >> if not the jets, then the mets. >>