some couples and shanghai a being urged to he two children y? chinese socty is ang and it will nd more youn workers in the future. the controversial one-ild policy was first implemente30 years a to contain population growth. our corresponden in china have more. >> family plaing officials and lunteers are meeting with families who meet certai criteriarom shanghai to remind them that under the existing rule,they cannot have a second child. but you live in a city and both pents are only children themselves, they are allow to have two children. the reason the're doing this, shanghai was o of the first ties in china to become richer under him, and pele are living a lot longer in some places in china. this means that shanghai will have onethird of its people over age 60. the oblem is o will p for their care. th is why shanghai is encouraging people to meet the criteria toave a second child. there the first city to do so openly, but i am suther cities will llow. >>he fbi arrested at least 40 in n jersey after a long investigation into public couption,

some couples and shanghai are being urged to have two children. why? chinese society is aging and it will need more young workers in the future. the controversial one-child policy was first implemented 30 years ago to contain population growth. our correspondents in china have more. >> family planning officials and volunteers are meeting with families who meet certain criteria from shanghai to remind them that under the existing rule, they cannot have a second child. but if you live in a city and both parents are only children themselves, they are allowed to have two children. the reason they're doing this, shanghai was one of the first cities in china to become richer under him, and people are living a lot longer in some places in china. this means that shanghai will have one-third of its people over age 60. the problem is who will pay for their care. that is why shanghai is encouraging people to meet the criteria to have a second child. there the first city to do so so openly, but i am sure other cities will follow. >> the fbi arrested at least 40 in

shanghai is encouraging people to meet the criteria to have a second child. they are the first city to do this so openly. i am sure other cities will follow. >> international observers say the presidential election in kurdistan has fallen short of key standards. the human rights watchdog has reported alan box stuffing. -- ballot box stuffing. calcutta -- thousands of private bus and taxi operators begin an indefinite strike. they oppose plans by the authorities to ban all commercial vehicles over 15 years old on august 1. the president of indonesia was reelected for a second five-year term after winning more than twice the votes of his rival. the president won 60% of the popular vote. legal documents have confirmed that michael jackson's personal doctor is the subject of a manslaughter investigation. the search warrant allows the authorities to seek evidence from dr. murray, who was with michael jackson shortly before his death. lawyers representing the burmese pro-democracy leader aung san suu kyi making final arguments, attempting to save her from a five-ye

the shanghai composite up 3,412.eantime, the hang seng rose 1.7% and australian stocks rose to an eight-month high. the s&p/asx 200 closing up 1.28%. on that note, let me send it over to you, bertha. >> thanks, christine. today, the main headline will be the second quarter gdp number that's due out at 8:30 a.m. new york time.. we are expecting to see the fourth straight consecutive quarter of downside momentum in the economy, but not as bad. also today, we get the second quarter employment cost index. that's expected to show that bit of improvement there, as well. it's going to be released at 8:30 a.m. new york time. it's forecast to have ris risen 0.3%. then at 10:00 a.m., the chicago pmi, purchasing manager's index is out. that is expected to come in at a reading of 43.3% compared to 39.9% last time around. chevron is the big dow component, capping off a week of results from the major oil companies. also reporting today, allergan, which makes botox. utility companies calpine and constellation energy along with weye

the shanghai composite closing up 1.7%. the hang seng closing up 0.5%.n, the market was lifted to a nine-month closing high. 0.5% higher on the nikkei 25. in the tech space, we got a mixed bag of earnings after the bell. we have sony beating forecasts after it posted a smaller than expected quarterly loss. meanwhile, we have nintendo disappoint, a 66% fall in profits. the kospi ended up 0.7%. 1,534. finally, in australia, the markets surging to a fresh eight-month high led by banking shares. the s&p index ending 1.2% higher. now over to you, bertha. >> thanks very much, christine. today's calendar here in the states, top heavy westernings, but the big piece of economic data we get every thursday, we've got weekly jobless claims due out at 8:30 a.m. new york time. they are forecast to rise this week by 34,000 to a total of 588,000, creeping back up to that six handle. meantime, exxon mobil will be the headliner reporting second quarter results. that's expected at about 8:00 a.m. new york time. profits forecast to have dropped by about 57%. the bottom line

terry mccarthy, cbs news, shanghai. >> just ahead on the "morning news," an alarming jump in h1n1 flu deaths. plus, a jaw-dropping plane crash and the pilot who lived to tell the story. captioning funded by cbs what makes a hershey's bar pure? [crowd cheering] come on! pure gooey goodness... the pure joy of winning a s'mores bbq with rascal flatts. check specially marked packs to learn how. pure hershey's. my daughter was with me. i took a bayer aspirin out of my purse and chewed it. my doctor said the bayer aspirin saved my life. please talk to your doctor about aspirin and your heart. i'm going to be grandma for a long time. dinner with the girls tonight. mmm... mexican, or italian? i really want dessert tonight. i better skip breakfast. yep, this is all i need. ( stomach growls ) skipping breakfast to get ahead? research shows that women that eat breakfast, like the special k® breakfast, actually weigh less. the special k® breakfast, now in blueberry. so why skip? when you can eat all this... and still weigh less. victory is... sweet. >>> whoa. it wasn't supposed to end like that.

she sells beauty products out of her home in a shanghai suburb. mei is one of a growing sales force of 350,000 independent beauty consultants in china. she joined the company in 1995, one year after mary kay cosmetics entered the chinese market. her home features a mary kay statue, and mei recalls when she met the flamboyant texas entrepreneur on a trip to the >> ( translated ) i was not very good at english so all i can say is mary kay, i love you, i love you, i love you. >> reporter: the story of mary kay's triumph over poverty and transformation into a successful entrepreneur has inspired thousands of chinese women. the company expects china to overtake the u.s. as mary kay's largest market within five years. in 2008, mary kay china saw 50% sales growth over 2007. and despite the economic downturn, the first two months of 2009 saw a 30% increase over the year before. mary kay china's president, paul the year before. mary kay china's president, paul mak, says direct selling goes up sales growth when fewer chinese are joining the middle class. ca

the shanghai, up. the hang seng a clear winner, and the bombay sensitive trading flat. markets are really stabilizing. it's a wait and see what's happening as far as corporate earnings are concerned and whether there's follow-through on the economy. on the oil markets, there is a plan to release a report suggesting that last year's volatility in crude prices was due to speculators. that's according to "wall street journal." nymex sweet crude up 64 cents. brent is also putting on gains, up 45 cents, 71.26 a barrel. bertha? good to see you. >> good to see you. here in the u.s., the dow closing above 9100 for the first time since november 5th of last year. these markets have really climbed quickly. once again this morning futures are flat as investors really try to take measure. we have earnings out from coach to u.s. steel, also we will be watching comments from fed officials. one official talking about inflation that has people talking. futures up about 15 points ahead of fair value. the nasdaq up as well. s&p 500 futures higher. bonds right now, the ten-year bunt yield

>>reporter: yuan deming at his yard, south of shanghai, says foreign business has totally dried-up. >>: he's managing to stay afloat because the government has told the banks to support shipbuilders - while he manufactures smaller vessels at a discount... for domestic operators on the yangtze river. >>deming: we're not talking about making profits. rather, it's about how to survive. after the financial crisis, it will take us three to five years to get over it. so, to survive this period, we need to be responsive to the market. >>reporter: it's clearly rough for those engaged in logistics on the high seas. take shanghai: after a decade of 20 percent annual growth, this year, cargo handling is down 15 percent - containers are stacked high...empty. hong kong: a similar picture. across china, a reported half a million plus containers are parked-up.... redundant. while by the quaysides and around the coast, hundreds of cargo ships tread water, gathering barnacles. >>lin: export and import, both in and out through hong kong and china have been dropping quite significantly: depending on wha

the shanghai composite up to close at 3,296. bertha wa bertha. >> in the states, earnings will be front and center. investors will also be paying attention to ben bernanke. pharmaceuticals and financials are in the spotlight today, start, fiedzer, eli lilly, morgan stanley, wells fargo and boeing. other earnings out include bank of new york mellon, sun trust, u.s. bancorp. and after the bell, we'll get results from ebay, qualcomm and e-trade. president obama will hold a conference this evening. the bulk of the remarks are expected to focus on health care reform. the approximated spending a lot of capital to try to get a bill passed this summer. that's your global stock watch. >>> coming up on "worldwide exchange," the chinese have expansion plans. >>> plus, the bank of england believes its quantitative easing policies are working. we'll get insight after this with minutes from last month's policy meeting. $$$$$$$$$ >>> i'm sri jegarajah. in asia, companies may now tap into the government's reserve for overseas acquisitio

ed krup, director of griffith observatory in los angeles, had traveled to shanghai for a look. >> i amoing to live to see an eclipse longer than six minutes. >> reporter: the only problem was the weather. >> a break. >> or we could do a dce. we could do a prayer. >> reporter: undaunted the team pulled out their cameras and special glasses to protect their eyes. >> when we put up our little sheets of paper for the pin holes. >> reporter: then -- >> here it comes. what do you see? >> reporter: darkness washed over everyone. >> so much darker. >> reporter: 9:37 in the morning here outside of shanghai. people have been planning for this moment for years, the longest total solar eclipse this century. astronomers say, the oextne like this, or this long, isn't going to happen until 2132. >> reporter: as the light returned -- >> hooray for us! >> reporter: excitement lingered. soon, the eclipse sped off across the pacific ocean where even at a tokyo zoo it was seen as a once-in-a-lifetime event. adrian mong, nbc news, china. >>> safe to come out now. that's our broadcast for this wednesday nig

shanghai composite up 1.18% due to another ipo coming on the market in shanghai. lackluster trading is in focus. the australian market is down 1.2%. crude oil is falling in line with the overall resource link sector, down $2.60. $64.13 a barrel and brent is falling, as well, $1.61. $63.99 a barrel. good to see you, too, scott. how are the u.s. futures looking? >> good to see you, christine. the president is over in russia today. the ism record is out. there will be a lot of attention on the data to see how u.s. markets rebound after thursday's fairly dismal session. you'll see here, we're significantly below fair value across the board. in fact, the dow futures are down about 70 or so right now and nasdaq about 9 and s&p is almost the same amount. it will be curious to see what happens today after samsung's guidance there. take a look at the bund yield, as well today. certainly in the u.s., here is the bund yield, 3731%. treasuries will be in focus today as they usually are on the back of the ism report. the ten-year at 3.50%. take a look at gold here. certainly i

the market year to date, the shanghai composite, is up 87%.ven though we did see weakness overnight. has this rally run too far too fast in joining me to talk about that is jean allrich, chairwoman of china equities at jpmorgan. and senior economist at standard charter. great to have you both with us. it's so nice to have you. so you're both really -- you're on the inside, you're on the ground in china. and you have a great sense of what's going on. jean, is this a bubble?? >> well, potentially, you were seeing a tremendous surge in equity prices as well as property market prices in the last six months. in some ways we're seeing actually prices surge beyond the fundamentals. so we're seeing piling into the equity markets. and if you look at the property markets, transaction volumes and prices have all surged to all-time highs. >> let me ask you this, because the shanghai we know was down about 5% on tuesday amid this concern that the central bank could curb explosive growth in liquidity. are we going to see a repeat of the precipitous decline

the shanghai composite closed down 1.64%. finally in australia, the fx managed to eek out a small gain thanks to mining stocks. and on that note, let me send it over to you, bertha. >> thank you very much, christine. we've got no economic data here in the united states today. investors will be focusing their attention on earnings and big ben. fed chairman ben bernanke begins two days of testimony on capitol hill. caterpillar, coca-cola, dupont, merck and united tech will be out today. others include schering plough, blackrock, continental, southwest and state street. apple and yahoo! will be out after the closing bell and there are many, many more. ron bloom goes before the house judiciary committee at 11:00 a.m. new york time to answer questions about tremendous structuring of general motors and chrysler. that is your global stock watch. >>> coming up on "worldwide exchange," we'll have analysis of the information out of the uk. >>> and china is getting ready for another ipo, the world's largest. but is now the right time to

on the organizing committee of the shanghai world experts. on behalf of the organizing committee, i thank all of you for your care and support for the shanghai world and will. meanwhile, i extend congratulations to all of you, i welcome you to shanghai, thank you. [applause] >> if i could ask you to take your seats, we're going to start our post dinner program. i guarantee you the faster you sit down the list of me you will hear. if you could, ladies and gentlemen, please join me in welcoming back to the podium carla hill, the chairwoman of the national committee on u.s./china relations. thank you. [applause] >> thank you, john. you have done a good job and you have fed us well and good evening once again. it is my great pleasure to have the opportunity to introduce our 67 secretary of state, hillary clinton, who took her oath of office on jan. 20 first, just one day after president obama's inauguration. a graduate of wellesley college and a graduate of yale law school, the secretary earned high accolades for her work while she was in the pri

that is why shanghai is pushing people to meet eight criteria to have a second child.there the second city to do so openly. >> they're looking into international money-laundering and trafficking of human organ charges in new jersey. they are allegedly flushing millions of dollars to local charities. >> these were arrest on a massive scale. among new those taken into custody, they were mayors, politicians, and religious leaders. >> for these defendants, corruption was a way of life. they existed in an ethics-free zone, exploiting giant loopholes in the state's campaign contribution pool. >> the arrests are part of a operation investigating money laundering and corruption on a global scale, including the u.s., switzerland, and israel. one rabbi was dealing and human kidneys to transplant for a decade, buying them from vulnerable people. the scale has been described by one official as simply outrageous. >> one step forward, two steps backwards. >> the number of arrests was remarkable even for new jersey, where more than 100 -- more than 30 officials have pled guilty or be

the shanghai xotit had its worst day in eight months. the first day gains swung in a wide range from 48% to 98% finally ending up about 56% at 6.53 yuan. the ipo was hugely popular because its business is construction and property development. but it's valuation is very high. even know, it trades at about 80 times 2008 earnings. investors, in fact, used today the's ipo to sell off stocks that had gone up too high. in fact, property and mining stocks were the hardest hit and both of those indexes have almost tripled so far this year. what's next snup we have several ipos coming. but today's performance may warn against excessive speculation as well as unrealistic expectations for the ipos first-day gains. christine. >> chang lee, thank you so much for joining us on the show. we have arora want sereno joining us and simon grose-hodge from lgt joining us. simon, let me start with you first. when you see levels like this, do you somehow think this is a healthy correct or do you somehow think, you know, people could see more in the day ahead?

shanghai stocks closed down 5%. the hang seng slumped 2.75%. asia's losses could weigh on wall street today. the dow jones starts the day off 12 points. the tech-heavy nasdaq was up eight. this morning we get the latest durable goods numbers which probably fell in june for the first time in three months. watch out google, microsoft and yahoo! are on the verge of sealing a long-awaited search deal. the "wall street journal" reports the partnership is expected to be announced as early as today. the companies would share revenue generated by search ads on their website. and yahoo! would use microsoft's search engine bing. microsoft made a failed attempt to buy yahoo! last year for $47.5 billion. >>> japanese automaker honda reported a 96% drop in first quarter profits. the tokyo-based company does not seem worried. honda raised its full-year forecast. could the worst of the housing slump be over? a report out says home prices in 20 major cities are up a bit for the first time in nearly three years. americans are still worried. a survey finds confi

bbc news from shanghai. >> a ton analyst is joining me in central londo. let's to about -- an analyst from china is joining tme. >> exports were slowing sharply last year. the domestic economy as well. they've had a massive increase in bank lending and government spending. they have turned the corner. the economy is showing signs of growing strongly again. >> china is not the only country with the stimulus package. there was the new deal in america, money pumped into the british economy as well. why are the other countries not showing the same turnaround? >> it is the size of china's stimulus package equivalent to 13% of gdp, bigger than the one in the u.s. and the u.k. also, consumers are not over leveraged and not indebted as they are in the u.s. and the uk, so they are already showing signs of recovery. the banking sector does not have any toxic loans. they've been increasing lending rapidly, driving growth. >> simply spending more money on stimulus packages in europe and america would not help things because of the other two things you spoke about. >>

chris hogg for bbc news in shanghai. >>> we have this report just in. >>> we're in the center of theianjiang capital. it is very quiet. the streets are deserted. it is late at night. chinese cities are usually not disquiet. -- are usually not this quiet. you can see the police in riot gear. they have been here all day. they will be here through the night. if you look to the left, you can see the troop trucks. the red banner says the police love the people and will restore peace. we can see yet another at the deserted street to the left. the authorities are saying that a lot of the ethnic violence was uighur muslims fighting against the han chinese. it to place in the back streets around this area. many of the people killed here were killed on the back streets. chinese officials say they have the city under control. they have not stopped with the troops. they have also closed down the internet in the city. more than 2 million people do not have access to the internet and their mobile phones are not working. the chinese took the combined measures will allow them to gain control over th

shanon van sant reportfrom shanghai. >> reporter: mei gworks for mary kay cosmetics she sells beauty pducts out of her home in a shghai suburb. mei one of a growing sales force of 350,000 indepdent beautyonsultants in china. she joed the company in 1995, one year after my kay smetics entered the chinese rket. hehome features a mary kay statue, anmei recalls when she met the flboyant texas entrepreneur on a tripo the >> ( translated ) i was not very good at english so a i can say is my kay, i love you, i love you, i love you. >> rorter: the story of mary kay's triumph ov poverty and transformation into a succsful entrepreneuras inspired thousands of chinese women e company expects china to overta the u.s. as mary kay's largest market whin five year in 2008, mary kay china sa50% les growth over 2007. andespite the economic downturnthe first two months of 2009 saw a 30increase over the year befor mary kay china'sresident, paul k, says direct selling goes in a down econy, and sales haveemained strong. >> even wi the downturn we are growing very ft. 2008 is still a recordear. >> repter: i

shanon van sant reports fr shanghai. >> reporter: mei gu wos for mary kay cosmeti. she sells beautyroducts out of her home in a anghai suburb. mei is o of a growing sales force of 350,000 independe beauty conltants in china. she joinedhe company in 1995, one year after mary y cosmetics entered the chines market. r home features a mary kay statue, d mei recalls when she met the amboyant texas entrepreneur on a tr to the >> ( translated i was not very good at english so all ian say is mary y, i love you, i love you, i love you. >> reporr: the story of mary kay's triumph over perty and ansformation into a successf entreprene has inspired thousands of chinese wom. the company expects china to overke the u.s. as mary kay's largest marketithin five yes. 2008, mary kay china saw 50 salegrowth over 2007. and deite the economic downturn, thfirst two months of 2009 saw a % increase over the year befe. mary kay china president, paul mak, says direct selling goeup in a down ecomy, and sales ha remained strong. >> even with t downturn we are growing very fast. 2008 is still a re

pavilion and shanghai and the breaking ceremony has been established. some here have worked hard for that. some of to provide financial support and some of you provide good advice and me? next time i was talking about olympic games but now i am chairman of the organizing committee and as the chairman of the organizing council, i thank all of you tonight for your care and support for the world expo. meanwhile, i now extend invitations to all of you >> more now from the u.s.-china business council. coming up, we'll hear from secretary of state clinton and former secretary of state henry kissinger. >> if you could, ladies and gentlemen, please join me in welcoming back up to the podium, karla hill, the chairwoman on the national committee of u.s.-china relations. thank you. >> good evening, once again. you know it is my great pleasure to have the opportunity to introduce our 67th secretary of state, hillary rodham clinton, who took her oath of office on january 21, just one day after president obama's inauguration. day after president obama's inauguration.

the shanghai was down 5%. close, it was down 8% at one point. remember the dollar has been strong the last two days? there's been a lot of rumors floating around that maybe the chinese will step in and limit trading somehow. shanghai is up 100% since the bottom in november. it's been straight up for months. so there's a lot of that fuelling the around, a lot of profits floating around. here's the big commodity stock. rio tinto, see the crowd here? some are still not open. rtp is not open. china had the biggest ipo of the year. china state construction, they did that big swimming pool for the beijing olympics. they just debuted today. stock was up 70%. on monday, it did well. so the ipos are doing great. china is getting a little stretched at this point. a little bit disappointing in terms of the earnings on the steel market. unlikely to have a recovery in the steel market before 2011, despite the fact that china is pumping out stimulus like crazy. same thing with u.s. steel, they had cautious commentary. that stock just opened down. elsewhere, a

>> i'm figuring we'll open in shanghai in october, september.and we have commitments for 100 restaurants in beijing and shanghai and talking to people in other parts of china. we have restaurants in singapore and malaysia. and we opened in singapore, and those are huge opportunity markets for us. >> quickly, where do you see the u.s. economy? when will we number a recovery? >> i think we'll number a recovery when the government starts doing the right thing to encourage business instead of trying to spend us into prosperity? >> which would be when? >> i think they have to get really scared. 9.4% unemployment would scare me but it squared the government into spending more money. continuing to spend on roads and bridges isn't going to do it. >> great to talk with you. hope you'll join us again soon. andrew puzder. >> if, in fact, this asia move is for real and he's got his arms around it, then you can be buying a yum early on with ckr. we've had him on before. stock hasn't done much but it could be an early play. >> you're also buying what the stra

now in shanghai, couples are being encouraged to have a second child. as long as both parents are from one-child families. the move's giving hope to millions of budding chinese parents. just had her first child and already wants another one, even though she lives in beijing and her husband has two brothers she thinks the government will grant her wish in three or four years. >> translator: hopefully the government's policy will be more flexible and it will be easier for us to vey second child. >> reporter: but architects of the one-child policy, like professor, say that's not likely. he says the government's main goal of population control at any cost hasn't changed when the law was first passed. >> translator: to advocate for the one-child policy is not the perfect option. but in order to quickly decrease the birthrate, it's either that or nothing at all. >> reporter: getting to the population target of 700 million's going to take another 70 years or even more if life expectancy continues to rise. tom eagleton, abc news, beijing. >> on tonight's ""blog

if you can get a jet to shanghai, shanghai is going to be a really cool place to be. don't think you can get from here to there in the amount of time i've got left. plus, can't afford to dow it. a beautiful day today. a few more breaks of sunshine than we saw yesterday. out right now at bwi thurgood marshall 79 degrees. 62% humidity. wind continues from the east at 8. and the pressure steady there are the tides fort mchenry. tomorrow's winds, they'll start out from the northeast and shift to the south at 8 to 14 miles per hour. the sun comes up at 5:58. we'll set at 8:27. a coastal flood advisory remains in effect. as a matter of fact, the national weather service has extended it. yesterday it was just for the lower portions of delaware. now it includes all of delaware, all the jersey shore, including delaware bay because of areas of low pressure moving along the coast are going to cause some very rough surf, and some very heavy rainfall is expected in that region. temperature-wise across the area, hagerstown at 73. pax river right now at 82 degrees. 84 on the boards

according to sources, rio shanghai offices raideand computers moveafter the detentio. sources cna are saying it's part of a broader investigation into allegations of ckbacks paid during the allocation of raw materials to state own steel mills. speculation about the real arrestthe timing is signicant to some. china has be pushing for a steeper cut in iron ore ice. some bieveind scenes agreeing to a 33reduns. burihas been a producer at the front, pushing for a hher iron price. the man arsted is rio general manager of markeng rio general mager of marketing in china and he determines who receives what. rio/china relations are strained. ina feels as though it was strung along by rio. the two were to partnewith injecting $15 billion into ri the detentions, course, have unneed foreign business people in china. fr alobal perspective as china demands a gger role in worlaffairs, it throws into questions e practices behind the great wall. cha official as the g-8 will be under pressure to rssure other countrs that china does, deed, engage in fair dealis. whilchina authorities don'

the shanghai market up 1.3%. a lot of sentiment got a boost basically from reports that the government will keep monetary policy lose. the hang seng is pulling back just a little bit after breaching the 20,000 level and the bombay sensitive index is up 0.9%. but you know what, china, bertha, this particular market is up 85% year to day. pretty impressive. >> it is pretty impressive. certainly a lot of the major indices here have moved up past resistance on the downside. the dow closed above 9,000 for the first time since the first week in january. let's take a look at the boards. dow futures are just about flat. they did come up on that better than expected german ifo number business sentiment in germany doesn't seem to be getting hit so badly on the worse than expected uk gdp. miex row soft was a drag on the nasdaq which had a 12-day winning streak. it doesn't look like it's going to start that way today. consumer sentiment will be the big thing everybody will be looking for this morning. taking a look at the te

poor five-year treasury options, strong dollar, drop in crude oil. 5% drop in the shanghai. in spite of that we are looking at a market that's essentially flat on the session. keep an eye tomorrow on the seven-year option. thanks so much for watching. i will see you on "the call" tomorrow at 11:00 a.m. eastern. have a great night. >>> revenue and shares fail to meet expectations for symantec. hartford financial gains ground up 4% after the bell. earnings are well above wall street's forecast. >>> crude oil is down over 6% following below $63 a barrel. that's cnbc.com news now. "fast money" with rick santelli starts right now. >>> live from the nasdaq marketsite, this is "fast money." fast, "fast money." rick santelli in for melissa lee on assignment. the market losing some steam today following three important features. the big sell-off in the china stock market. we have a dive in oil prices. and in my own backyard, a supply hiccup in the five-year options. it wasn't pretty. what's the word on the street? peace. >> first, are you just fantastic. you make the world that's so

the shanghai market lower 0.3%. profit taking in hong kong, down 0.8% as the bombay sensex continues to fall after yesterday's climb, down 2%. oil is falling as doubts about the strength of the global economy continue. rate now, $62.11 with nie neck down 82 cents and brent is lower 68 cents at $62.55 a barrel. the weekly u.s. inventory report will be out at 10:30 a.m. new york time. a dow jones forecast calls for oil to drop by 2.3 million barrels. gasoline and distillates to rise by 900,000 and 1 many 9 million barrels respectively. scott, how are the u.s. futures looking? it is a big day here in the u.s. with the kickoff to earnings season. certainly would he we're coming off that 2% slide across the board yesterday here in the u.s. right now, the dow looking about 20 points above fair value or so. the nasdaq will be interesting to watch today on word that google is planning a new operating system. so that stock is going to be in focus today along with microsoft. we have treasury openings on tap today. let's take

the shanghai composite, do down 0.1%. the hang seng up 0.6% and the bombay sensex is basically flat at this stage. scott. >> we're coming off a 3% gain and we're just a touch below fair value. perhaps that news that we read to you by the cit group, that is a large commercial lender that appears on be on the brink of bankruptcy, that could be having an impact on the futures right now as the dow is sitting 60 points below fair valuable. nasdaq under a bit of pressure, as well. take a look at the ten-year yield. not a surprise there, the 10-year yield at 3.57%. >> let's get a view where we stand with all of this. joining us now, steven edge with morgan stanley. the picture still seems clouded to me. we had this sort of recovery trade going on and then we decided that wasn't right. then we got a couple of earnings coming through. intel got everybody excited on the tech sector. companies coming out saying we still see demand falling. where are we here, steven? >> well, the markets are pretty euphor euphoric, ross, given the an

the shanghai market ended up 0.2%. the hang seng is up 2.5%, clearly a big winner there on corporate earnings, as well. in terms of crude, political uncertainty is weighing on the price of crude. brent is also trading lower just a touch, 46 cents, $63.29 a barrel. scott, over to you. >> all right, good morning, christine. thanks so much. in the u.s., let's take a look at how futures are shaping up on what can be categorized as judgment day here with bank of america, citi, general electric, three behemoths reporting today. take a look at the markets here. a positive day yesterday led by tech and comments from dr. doom himself, nouriel roubini lighting a fire under the market late in the day. the dow is down by at least 22 points in fair value. tech has been the standout. i think technology had something like a seven-day run here so that gives you an idea of the strength. ibm after the bell yesterday and google after the bell with decent results, too. s&p 500 is nearly flat. taking a look at the ten-year treasury, the yi

i mean, the shanghai is on fire. the bombay, or the bse, is up some 35%. the emerging markets, or the eem, up 25% or more.o and that's year to date. that's when we're breaking even here, bob. >> but look here, jon, and we're putting up the shanghai composite, which of course is the shares that trade in china for chinese investors. that's near a 52-week high. and we're going to get the chinese gdp numbers this week. that will be a big thing. we're expecting i think 7.5% growth on thursday, which is still fairly anemic by their standards but an improvement from the prior quarter. we've put up just a moment ago, and i wonder if we can put that back up, that's the india chart. that's the bombay sensitive index. and jon, i know what you're saying here about 35%, but it's starting to look like it's rolling over here in the past couple weeks. >> it has indeed. you're exactly right. in fact, since the 6th of july it's already moved almost 11% to the down side. that classic correction is at least 10%. you can quote that one to me, bob. we're down 10.6%. i think if

the shanghai market up almost 1%. the hang seng clearly the big winner today, almost 3%. banking and property stocks continue to surge higher on talks of ampel liquidity and the bombay sensex 30 up 1.5%. overall, a strong session here in asia. tracking equity markets, nymex light sweet crude is trading flat at this point in time, $65.33 a barrel. and brent is down just about flat, 1 cent lower, $67.21 a barrel. bertha, how are the futures looking in the u.s.? >> well, we are on a long winning streak, at least for the nasdaq. 12 straight sessions to the upside after the 11th session. the best since 1996. we have dow components, at&t, mcdonald's and 3m this morning. after the close we'll get microsoft, american express and the weekly jobless claims. we've got the futures bouncing back. we've got the dow about 20 points ahead of fair value. the nasdaq is just below fair value at the moment and the s&p is up just a bit, as well. taking a look at the bond situation, ben bernanke seemed to have survived a second day on the hill and the street taking pretty much what he had to s

the shanghai up 1.9%. a lot of focus on the new ipo? sichuan expressway. that lifted sentiment in shanghai. bombay sensex now positive. it was trading below water. the nymex trading up 59 cents, $68.64 a barrel brent is up 61 cents, $70.93 a barrel. >>> let's go to tokyo and check in on the trading there at the nikkei. what do you have for us? >> thanks, christine. the nikkei staged its longest rally in 21 years. it rose for the ninth straight sepgz, closing 1.5% higher and topping the 10,000 level for the first time since june 15th. it's the index's longest winning streak since the 13-day really. the buying fueled by a wall street rally. this is raising optimistic about a u.s. economic recovery and listings earnings prospects in the japanese market. the dollar-yen rate also gave stocks an extra boost. shares in hitachi rose on reports that the company plans to turn four other firms into wholly owned units. it would allow the company to retain profits on those distributed to minority shareholders. earnings will come in better than a projected 270 billion y

the shanghai had the largest one-day point decline in three months. the market overall is up 78% this year. that composite lives in a world of its own. two guys named william treed brave the volatility for the opportunity of a time. joining us for the inside scoop, william yip who is the china real estate opportunity fund managing director. william nobrega, managing director. they are advising i heard just this morning in fact that real estate transactions volume in china has rebounded dramatically. >> yes. since the beginning of this year, they had as much as 207 if not more. >> they have quite a bit of foreclosure and distress and the end of last year. >> do you think it's a good investment? >> we think it's one of the best asset classes and fundamentals are in line. we have a growing middle class and a shortage of supply. you have a gdp trajectory that is far superior and the demand for house suggest not going to stop. the majority of the chinese cannot afford high end stuff. i was looking for my phone and couldn't find it. mid-level real estate, a

that supplies shanghai and in it didn't receive that energy there are economic reasons. >> we have to stop there, michael, thank you for your time. if you would like to find more about the unrest in china, have a look at our website, bbcworld /news. there is more about chinese and go to bbc.com/news. meanwhile there are clerics of elections in iran, those groups that approved the election no longer had credibility. bbc correspondents saying that there is more split at the top of the establishment. alcohol has been banned in iran since the revolution. anyone convicted of consuming could receive three times their execution. but that doesn't stop the bootlegging. we are here to witness the illegal and dangerous trade. >> iraqi close to the border, a remote and impoverished region. and major route for smuggler bringing alcohol into iran. these are iranian kurds that have made the journey into iraq to pick up their next assignment. this is the duty free region, every kinds of alcohol being stocked here and shipped to the mountains smuggled into iran. >> the majority of iraqi kurds are musl

markets in japan, hong kong, south korea, shanghai, india, taiwan and singapore all showed significant gains. even bad news was good. the electronic giant sony posted a loss but smaller than forecast, so traders were upbeat. oil also jumped above $67 a barrel in asian trading this morning after jumping over 5% here on thursday. its biggest one-day gain since april. on wall street yesterday before a late-day dip in trading, the s&p 500 pushed to its highest interday level. the nasdaq briefly rose above 2,000 for the first time since october. ge's parent company of this network gave the dow its biggest boost on speculation from lawmakers that the company may not have to sever its finance arm, g.e. capital. that sent shares soaring nearly 7%. >>> also, fueling traders, the number of americans filing for unemployment last week was several thousand less than wall street expected. driving stocks today, the dgp report is due out. analysts show it will shrink the economy 1.5% from april to june this year. economists hope the slower rate of shrinkage will be a sign the economy may have hit bott

. >>> investors are looking east where chinese markets are reeling after a new ipo hit the shanghai board. china's main index dropped nearly 8% after the offering. china state construction engineering entered the market. it recovered slightly. but as we just saw, the hang seng and most other asian markets still finished considerably down. we'll see what effect it has on wall street this morning where stocks ended mostly flat on tuesday. the session focused mainly disappointing earnings reports, a signs an economic recovery is not written in stone. however, over the past two weeks, the dow had been up about 11%. >>> stocks started to slide after a report from the conference board showed consumer confidence fell more than expected. it is seen as a big if for the nation's stores as they approach the important back-to-school shopping season. while consumer confidence may be slipping, one widely watched index indicates the real estate market is springing to life. home prices appear to be stabilizing and the month of may marks the first monthly increase since the summer of 2006. in a marriage o

. >> joining me from our shanghai offices, our correspondent, chris. i suppose that the return says it all, it must be seen as a huge crisis for him to do that. >> a huge embarrassment for him. he was due to spend thursday sitting around a table with the g8 liters, discussing matters of international importance, instead he is in beijing trying to work out how to deal with this. he has been ordering the local leaders to get this fixed. of course, the bigger problem for him is what happens next. what you see today is a short- term fix, a massive show strength on the int. long term and will be much more difficult. relations between the ethnic groups in china has broken down. >> in the short term, you detect a change in tactics in a way that beijing is dealing with this? >> certainly. what they are doing here is pushing overwhelming numbers of troops, a paramilitary police onto the street. this is about reassuring to people. they were shocked, people were so concerned they were going out and arming themselves. the president said that ordinary people, offic

it will run across shanghai, a great place for people to go.nly problem is, a cold front also came to shanghai. >> oops. >> all these people that spent thousands of dollars to go see this thing in shanghai are scrambling to go north or south to get out of the way of the cold front. >> people are headed there to see it? >> absolutely. a $1500 plane ticket to the see this eclipse and now you have parked yourself under the biggest cold front in asia. >> you can never count on weather but question count on you. >> won't be able to see it really across much of australia or even for hawaii. it will slide down across, i don't know if you can see what this graphic is, here is asia, here is australia and there goes one, two, three, basically high sun because that's when the sun is going to be the highest. and the moon is going to get in the way and there it goes, just north of new zealand and so on and so forth. there is the front. there is the rain right across shanghai. no good news there for people that tried to go there. we're seeing rain showers, t

the shanghai market up. a fresh 13-month high. the australian market is up 1.2%. the gains are following through in the oil market. $64.47 a barrel. brent is also up sharply as well. trading at $66.29. the barrel up 1.4%. ross? >> let's rye to wrap this up at the beginning of this new week. what does it mean for investors? joining is the ceo of saunders management. nice to see you on this side of the pond. >> thank you. >> i'm intrigued with what you think of where we're at. we had the first big earnings week last week. ibm and jpmorgan. they seemed to ignore the bad points of the bank of america report. are we in a situation where investors just want to focus on the positive? >> it appeared that way last week with all the major market averages up 7%. but really the bulk of the earnings releases are coming this coming week. most of the do you haw componen so on. we don't expect the news to be as rosy from goldman and jpmorgan. >> if we focus on the positives, it won't matter, will it? apple, caterpillar, coca-cola, you look at coke, mcdonald's, microsoft, they're

its stock fell 5% on the shanghai market. it brought down commodities, energy, gold with it. some people got real nervous about it. but our markets were barely off a good sign of health. we'll talk chan and other things. we have andy bush. and mike holland of holland and company a director on the board of the china fund and i think also the taiwan fund if i'm not mistaken. we also have steve forbes with us. mike holland, good to see you. what's your take? is china going to cripple the summer rally? is china going to bring commodities down? what's going on. why did it crack up 5% today. >> three questions, i will go with the last one first. the kerp today was there was indication from the authorities in china they will stop the crazy lending going on. they had an explosion in bank loan, actually andy bush did a great piece on cnbc.com on this subject. the record number of loans made, probably 20% have gone into the stock market and property speculation. they're talking about tamping things down. end of the story, i don't think they're going to. >> how about a second end to the

he's purchased the shanghai sharks, the chinese pro team where he got his start.yao missed the last part of the nba season after fracturing his left foot in may. >>> at the halfway point of the tour de france, italy's rinaldo nocentini retains the lead. eight seconds back, lance armstrong is hanging on to third place. >>> when we return, a look at the top stories. plus the president's turn at healthcare reform. first katie couric. >> a crucial life lesson from kids on how to manage their money. we'll show you the innovative programs that are teaching them financial independence. it's part of our special series "children of the recession" tonight. stay healthy - and get on with my life. it comes from liberty medical. and now, it's not only where i get my diabetes testing supplies - but it's where i get my prescription drugs as well. see if you're on medicare, the cost of your diabetes testing supplies as well as your prescription drugs may be covered. liberty takes care of all the paperwork with medicare and sends the prescription forms directly to your doctor for

reverberate across the global economy, and this is true not just in new york and seattle but in shanghai and other areas, as well. that is why we are committed to strong bilateral and multilateral coordination. >> some are hit hard by the global recession, but china is interested in how the finances of america recover. washington is in debt to beijing to the tune of over $700 billion. some analysts say that limits the amount of influence american has on the chinese. president obama urged china to help in the de-nuclearization of its neighbor, north korea. , a climate change, president obama said both countries are taking steps -- on climate change, president obama said both countries are taking steps. president obama is struggling to get a crime bill through congress. some think america should not reduce their emissions before china does the same. bbc news, washington. >> it is not nearly 1 months in combat forces -- they are no longer as visible on the streets in iraqi cities. there are still 130,000 u.s. troops in iraq. some continued to patrol areas that they were supposed to have lef

we do not have that report, but we can go to shanghai and our correspondent. chris, how significant do you think is now that you have two communities on the street at the same time? >> i think what was going on today was that the han chinese were determined to show that they were able to defend themselves. they were taking back the streets, if you like. use of them with these wooden bats and iron bars. they marched in huge numbers. they confronted the police, but it was not the same kind of confrontation that we saw on sunday, which resulted in so many deaths. they tried to get between the two groups. on the one hand, the huge numbers of han chinese, and on the other hand, smaller numbers of the uighurs. according to reports, when police tried to create a barrier between the two groups, some in the han community were cheering on the police. it is a concern for the local authorities. there was an appeal for people to come back off the streets, and imposed a curfew. they will be less worried about this than they are about the uighurs. >> the difficulty in making