the costs of living for rent and food is often better in eastern germany the chinese mega city of shenzhen has electrified its public transportation system sixteen thousand three hundred fifty nine says that makes it a global leader and the city doesn't want to stop there. these bus drivers are waiting for their shift to start and wait hunter han makes his last check before he gets behind the wheel of his electric bus diesel is now a thing of the past. i've been working as a bus driver and shuns in for twenty years i've been working for the city for eleven switching from diesel to electric buses was easy these buses are easier to steer quieter and better for the environment the diesel buses were loud and dirty. shen's end is china's silicon valley and has more than fifteen million inhabitants this is where most high tech companies are located incomes here are the highest in the country it's china's fastest growing city and has the most electric buses

petersbu shenzhen there. like we do every day on "worldwide exchange," here's the one big number you need to watch. that's 29% that's how much the shenzhen index basically the nasdaq of china is now down from the january highs. let's bring in tim seymour. yesterday we talked about how tencent lost 175 billion in market value in a couple of months the shenzhen is down 30% what's happening with the chinese equity market being decimated? >> it's important to look at china from a market perspective and a macro perspective. the outflows in emerging markets have been extraordinary over the last 12 weeks. from a macro perspective i don't think the data is different or it's not that much weaker than we've seen on a relative basis the retail sales, fixed asset investment we have a chunk of data over the last four, five days some of that is staggering retail sales were back to 2010 levels fixed asset investment is back to august of 1999. the story goes on. the economy is still growing 6.6% >> that's what's confusing to

shenzhen's development is in large part thanks to ts man: deng xiaoping. he's considered the father ofan modern chinathe chief architect of the economic reforms which began opening up the country 40 years ago. china's leader from 1978 to 1989, deng xiaoping dismantled the disastrous ecomic policies of maoist china. he made it possible for companies to privatize, and eventually relaxed market controls. thanks to these reforms china is now one of the leading global hubs for artificial intelligence. >> this our smart vending machine solution. >> reporter: companies like malong are leading the charge in developing technologies aiming to disrupt the way we work and shop. this artificially intelligent cabinet is programmed to monitor stock and process payments. here, facial r we're happy to see that chinese companies today are capable of now of leading some of the most cutting edge technologies, not just in china but also in the world. >> reporter: amid the made in china push money is pouring into sectors like a.i. last year china's a.i. market was worth $3.5 bi

shenzhen's development is in large part thankto this man: deng xiaoping. he's considered the father ofhi modern, and the chief architect of the economic reforms which began opening up th china's leader from 1978 to 1989, deng xiaoping dismantled the disastro economic policies of maoist china. he made it possible for companies to privatize, and eventually relaxed market controlse thanks to thforms china is now one of the leading global hubs for artificial intelligence. >> this is our smart vending machine solution. >> reporter: companies like malong are leading the charge in developing tecogies aiming to disrupt the way we work and shop. this artificially intelligent cabinet is programmed to monor stock and process payments. he, facial recognition technology is being applied to fashion, making trend spotting effortle. malong is expanding internationally and opened its first usffice this month. malong business development vice president xia bing says china is closing the technology gap with the united states. >> theevelopment in the last 40 years has been in

sometimes we see you in beijing, sometimes shenzhen you travel all over.re you seeing evidence on the ground, just the folks you talk to every day that this is hurting them yet >> well, you were talking about all of those numbers the one that was sticking in my mind was 200 billion in the conversations that i've been having here in the manufacturing south everyone is talking about whether or not the u.s. will impose more tariffs. they're looking at that 200 billion and wondering who will be able to escape the tariffs if that number is so large. so the numbers are very important. >> eunice yoon in shenzhen, thank you. >>> staying with the topic of trade, wilbur ross says he is optimistic about striking a new deal with mexico on nafta. here's what he told us on cnbc late yesterday >> we're trying to get to a deal we're making progress. we don't have a deal just yet. but i think a deal is very likely within reach in the very, very near future >> the commerce secretary speaking about the ongoing trade dispute with china saying he thinks the united states is wa

shenzhen china six instance in iplayer labeling special edition of the of the house on one of expected to know not legalized abortion should in a in a senate. vote. in but first fourteen weeks. and pregnancy. twenty twenty four to find i know more about content correctly movement. you know your gp to we ran around the mother. it's easy and simple for this. right. in this case we were lauret. has the campuses and fill out a lot of form this is a man. as it is today. yes yes on six six instead collect look for forms speech mercer had it has actually. to get really mad about it [inaudible] yeah. i don't i don't believe of the day trying to find. funding. of this district. as will the meeting meeting. three a lot longer than any sensations her church and state. you know i don't [inaudible] his voice. what's going on on its innocent acting trip trip. close the little collect from the from a second day of the israeli judges as he's concerned i know you'r. a and they need to start on the french restaurant over we are getting this noise ninety four so you know you know the excellence like i ca

a similar story for the shenzhen the hang seng off almost 1.6%. huge portion of this loss is tied to tencent. want to give you a closer look at tencent off 3.6% today, 3.4% yesterday. you can see from the january high, a huge loss of 29% lots of concerns now around gaming revenue going forward concerning chinese regulators just pulled a license for the hit game monster hunter world. >> we talked a lot about the december makes of the market cap of facebook over the last month or so. tencent probably lost 125 to 0 $140 billion in market cap over the last couple of months. how much concern is there in asia that the chinese stock marketos affect the rest of the market cycle >> in the chinese market, the b.a.t.s., when we talk about the role tencent plays, many investors were saying wait a minute, could this be the start of something bigger. on the regulatory concerns about this game, it's been murky some different tales as to why the regulators did pull that license. so it does raise concerns going forward about any regulatory blow back for tencent. t

we had one of the best-selling games that shenzhen had.panies as we head toward its earnings as well. we were just asking this question about tencent. is it nearing its bottom? we look at internet giant's second order results. this is bloomberg. ♪ rishaad: getting to breaking news, more pressure on to tencent. we have a situation where the agencies are shaken up. they are said to freeze new game approvals on the heels of tencent being forced to take them off the shelves because of the counter world. that is another reason why we see 10th and chairs under pressure. haidi -- haidi -- sophie: that's right. the shares are down 2.6%. earningsahead of its reduced its forecast and cut the price target. -- $150w you what is billion wiped out of market values is hitting a week back in january. rishaad: it was the market early in asia. it was seemingly able to do nothing wrong. we have investors trying to figure out whether there is a bottom here. our analyst.n i think we have more news coming your.th this company, to company, too. that is not a goo

for and shenzhen riffle which is of a right to take it like it is president on his own. read read you dressed right. once the race race in the change of women we might bu. is dead at eighty eight tom hanks [inaudible] will be. do you. families and children and grandchildren for in. the pension nation a demolition don't know. the same sentence a man man saw so i was so used to ride ride tension at when women fate. of online details. to five five the initials also has has the by the i called commercial retirement age rein in. sixty six by by men men from five to six three women women under the new the new way just as the sixty those those three children be able to retire higher years early from other mothers work for children for years early. find find women. with fleets proposed. the measure measure were not not a part of my plan mormonism accumulate election campaign he says as restaurant work work work work with me for more. since a month now. and 16% said four year low online my asian man made a government and they have been that was also has been [inaudible] russians.

this news came -- we saw the shenzhen which is the technology index. but we saw what -- at the beginning of the year it was the biggest technology company in all of asia. now it's down $200 billion in market value. we saw some economic data. certainly there are cracks in their economic facade. >> for sure. the chinese economy has been declining. we have some good leverage here. but what i think the market reaction is telling us, the market want to trade. we don't want barriers. i hope the united states is moving away from focusing on the particular deficit number they want and more on let's just lower barriers to trade. charles: what about the intellectual property theft? the idea of compromise. it would have to include that, wouldn't it? >> so far, and maybe this discussion will be different. the chinese have refused to acknowledge a problem. if that continues. i think the response in the u.s. is let's get done what we have here. we'll focus on that intellectual property theft with china and keep pursuing it. this week investment, people leading on ma

shenzhen's -- sanctions have to be applied. they are not a major power. this technology is not just a purview of the u.s. and china and russia. smaller countries, organized crime groups, all of them can be equipped with the capability to disrupt our electrical system. host: what do they want to do with they get into the system? russia,n the case of they want to disrupt the and potentially the social aspects of that for their own political purposes. , ithe case of the iranians may be something like revenge. us,will put sanctions on you guys were messing around with our nuclear program, we will carry out some attacks. you can have organized criminal elements new for their own reasons to make money would want to disrupt the system. but theons are complex challenge is how do you deal wellall of these things as as the hurricanes and other natural disasters that can equally disrupt the system. host: we are talking about the grid this morning. for about the next 25 minutes we're joined by richard kauzlarich from the senator thee energy policy -- from center for

while growth is tapering off in the major industrial centers of kwong cherilyn shenzhen chong xing is proving every day a new that it's one of the future engines of china's economic development. growth has long been based on heavy industry with cheap labor from the countryside . but in recent years the megacity has put all its energy behind the giants of the electronics industry. thanks to this transformation changing can now boast the growth rate in double figures. that our laptops are launching he produced in chongqing the one doc company has three factories interim chain with around fifteen thousand employees. his factory has three thousand two hundred employees. we mainly produce a select ops the people. here feel is that the laptops you buy in france and germany are all produced a. body they made those judgments and. on their journey from chung xing to europe the computers have to to travel. thousand kilometers over land to reach the coast then they'll be at sea for at least a month on the south china sea the strait of malacca and the suez canal. but in practice two months often

when you look at the shenzhen they are even worse day-to-day in recent months.ight now, xi jinping is going to be blamed for a lot of this. you can see how fragile the chinese economy is it it is not growing at the 6.7% rate. it is probably growing around 3%, which means -- we are growing faster than the chinese. you wrote at length on the coming collapse of china. a lot of people have been wrong so far calling the decline of china. is -- in terms of the pressure pot forming at the moment. you have economic slowdown, potential impact of the trade war and an attempt to restructure the very economy. is some kind of moment coming? gordon: the head of the central bank last october publicly said in the extraordinary comment that china, that wasn't careful about debt accumulation was going to have a minsky moment. it's one thing for gordon chang to say something like that but it's another for a senior government official to say it. if you look at the debt accumulation in china, some people are talking about eight a -- about eight debt to gdp ratio, china can it throug

i watch the shenzhen exchange. there is something fundamentally wrong there. i think while you are cutting a deal obviously saving face. how important is it that he saves face. >> the political perspective is a great point. he accumulated power very quickly. he's emperor for life. there have been some rumblings in the chinese media, state controlled media, criticisms of his to our guest's point that he didn't entirely know what he was take on in donald trump. the fundamentals i think when it comes to china. the people who believe in the vision of china. they believe china is going to be great again. so they do have a lot of strong fund amountals in their people. i think xi has to be careful because a lot of people saying what's going on? charles: the yuan being so low may help exports. but consumer spend is the highest in gdp history and they would like to see it go higher. your thoughts on a big deal with mexico. how might that help the market. >> it weakens canada and china. as far as the yuan, it end their concept of regional currency. i understand it helps

immense slide in the prices of chinese equities, primarily domestic chinese shares on the shanghai and shenzhenndex are you picking them up? do you view them as bargains or are they still to be avoided >> well, i think one has to be careful in the domestic market volatility is higher some quality of the company is not great. within that there are some real gems we do own shares they have come through with great surprises on dividends, the balance sheet is strong. margin is sticky great, genuine chinese growth models i wo suld say this trade issue s gone on longer than we think there will be impact on a domestic market because retail element is important there mainland is taking a lot of money out of hong kong, and that will probably continue however, that does create great opportunities for genuine business models in china the end game is not really about trade. it's about intellect cal prual y theft, about this made in china 2025, about those things trade is really a side issue so if china does cut tariffs by 5%, 10%, that's not the end game the u.s. is gunning for something larger than that i

the shenzhen down 8% just this month. european markets are also slightly lower across the board. germany down about 1%. let's tie a bow on all of this and bring in art hogan from b. riley financial. you were probably itching to get into that conversation that we just had with jimmy p. trade is this massive overarching story. but the nasdaq is up 5% this month. the markets don't -- the markets don't seem to care how come >> yeah. i think there's a couple things here if the market looks at this as an exit ramp on the trade war highway at some point in time. you will see the market has reacted positively when we get good news on trade when we didn't escalate with the eurozone, the market got higher. when we look at a deal with mexico, the market goes higher negotiations with canada seem to be going better, the market has a tailwind when we get trump's comments about the eu deal not being good enough, the market takes a pullback we're stuck in a tug of war now because we will probably get good news on canada. and we're stuck with we're getting more aggressive, escalating with china a

don't think so greece was systemic in a way because of the money they borrowed turkeyly not the shenzhens down 25%, that's a major world market why do you think it's not impacting us more? >> i don't think it's impacting all of the u.s. growth we're having a lot of domestic fundamental growth in the country. it seems the place to be is u.s. markets, technology is strong. it's not leaking over yet. all the tariffs, 16 billion additional tariffs added on there. didn't have an impact on wall street it's not -- maybe this art of the deal is working a bit. >> it might be you guys have done good work on the historical meaning of it's a mid term election year there's all these presidential cycle theories how does a midterm or second year of a first term shape up historically >> it's the weaker of the four years. we get a midterm low the q2, q3 is weak q4 is strong but like '06, '10, '14 strong midterm years followed by weak years. 2011 we had a bear market by our definition, that bottomed in october. 2015 we had a bear market that went from may of '15 in february of 2016. everyone is looking fo

composite another 1% it fell 2% yesterday shanghai, which is the domestic chinese market, they have the shenzhenthe hang seng. the shanghai is down 20% in just six months that big drop causing china to lose its position as the world's second biggest stock market. financial times siz the c s saye market is just below $1 trillion the value of the u.s. stock market, about 31 billion a check of the european markets as well. a lot of numbers here, they're green. outside of stocks, here's the global currencies and commodities. the price of oil down a bit. 0.4% nothing moving except for bitcoin. what happened to bitcoin 8,000 seems like last week it was last week now at 7,361 let's bring in bill stone from stone investment partners. he likes to get up early and tweet early. anyone who tweets the simpsons at 4:30 a.m. eastern is a friend of ours. thank you for joining us i want to start with apple i know you're not here for single stock stuff, but does apple matter it's a dow component, but as a wealth manager, a fund manager, does apple matter to you from a macro market perspective >> i think certainly

look at this the chinese nasdaq, if you will, the shenzhen index down 25% from its 52-week high the argentinean- down 23%. the shanghai composite in china, down 22% turkey, we just mentioned it, down over 21%. the russian rsx close, not quite into but close to a bear market. down nearly 19% from its 52-week highs. lets bring in tim seymour a cnbc contributor as well. this is your -- >> good morning. >> good morning. this is your space, buddy. many of those markets had been down big before. the turkey news started to ratchet up do you think this provides them another leg down >> i think so, brian the etf that tracks the emerging markets, msci, it's going to open at the lows of where we were a few weeks ago on a relative basis to the s&p a hot of people look at emerging markets and on the last 12 to 18 months look back, actually it had been a pretty good run a lot of the globals, synchronized stories getting priced in. the reality is, since april and a lot of this has been the trade dynamic, it's been currency concerns, it's been some of the growth concerns and then there's been four or five hots

interest rates are off the central banks are too low the chinese mega city of shenzhen has electrified its public transportation network sixteen thousand three hundred fifty nine buses it makes it a global leader and the city doesn't want to stop there. these bus drivers are waiting for their shift to start and wait one ton makes his last check before he gets behind the wheel of his electric bus diesel is now a thing of the past. i've been working as a bus driver in cheyenne zen for twenty years i've been working for the city for eleven days switching from diesel to electric buses was easy these buses are easier to steer quieter and better for the environment the diesel buses were loud and dirty. shines and is china's silicon valley and has more than fifteen million inhabitants this is where most high tech companies are located incomes here are the highest in the country it's china's fastest growing city and has the most electric buses almost seventeen thousand of them that's not much less than the number of people who lived here just forty years ago notions and aims to be china's show

pro-union not to vist haven't been seen since police raided an apartment near the southern city of shenzhen sorry you're keeping an eye on this story what else are we hearing about this well we've been following this and it seems that employees at the company just take have been demanding better pay and conditions as well they'd organize protests outside their offices and push to form a union hoping to find strength in numbers just that try to shut down the demonstrations by dismissing some of the workers but they kept up the pressure. so much the way i was without a salary how do we support our families without payment how do we survive in genzyme you drunk tongues those who had been wrongfully fired just days before this beach on july the twenty six he and twenty other employees were arrested the next day and it's understood they are still detained until now now that's despite calls from several rights groups like amnesty calling for their release as well this is one of them here and they say the detention the work this because it's deplorable but also student activists have been requesti

from the open in hong kong and shenzhen and shanghai. two ipo's at the bottom of the hour. david ingles here to look at some rate of light for investors in china. 300, in case you missed it, 3368, best day in over two years. positive support out of beijing is the headline when you look under the hood. conditionsquidity contributing. what happened overnight when it comes to the pboc encouraging the bank not to engage in herdlike behavior when it comes to the currency. that leading to dollar china there.e were looking at futures. , buttle downside from that we are looking at gains across the asia-pacific, so a risk on session. hang seng futures on the way up. it does look like we will get some gains at the open. one of the thing we are watching our trade numbers out of china as early as 60 minutes from now. this chart is on your gtv library and toshi the trade relationship between the u.s. and china. yes, a headline number, but what you want to watch are i lateral trade flows between the two bank, monthly numbers here. a bit awkward when the tariffs kicked in, reported the hi

also come the open in shenzhen and shanghai.re yuan than anticipated. 6.83 against the dollar there. elsewhere, the turkish lira, geopolitical tensions. we have the plunge to a record overbond yields climbing the dispute of the detention of an american pastor writes on. -- drags on. the lira has lost 10% of its value against its counterpart. japan gdp driven by business spending and private consumption. point 9% annualized growth rate in the second quarter. it is about the open in hong kong. kongmuted start in hong and china. the csi 300 little changed. it could be set for a rise after falling 6% last week. it has been topsy-turvy and volatility picking up a stocks head for the worst year since 2011. foreign inflows remain robust. northbound flow quotas hit a june high. data, the hang seng now to the downside after a four-day advance. we're keeping a night on chinese developers after a profit surge for agile. using the bloomberg property index higher after jumping thursday. offshore yuan at 6.83 against the dollar after some sta

haidi: looking ahead to the hong kong and shanghai shenzhen opens. a look commodities, earnings in australia. $878 milliontals when it reported on monday. let's look at how they are planning to contend with all this. we will talk about the slowdown in shining, ongoing trade tensions. with me is the fortescue metals ceo. great to see you again. it was a tough period. a lot of this was down to pricing discounting. how do you plan to address this? >> actually, we are really pleased to the with the result. we delivered 170 million tons of iron ore and a net profit of one $1.1 billion. our shareholders have really benefited from the strength of the company. in the context of our strategy moving forward, we do have a strategy to release a new product. % iron content1^ that will add to our product suite. that will be released in the second half of this financial year. our rail project which is a $1.3 billion capital investment, that will come online in december 2020 will add to our ability to produce this top-of-the-line product. haidi: 62% is benchmark. wi

we have the daily limit in shenzhen. this as developers get in plans that they scrutiny.ome earnings from china, chief among them, energy gaining ground after its first results. you have the be a icy motor motorng -- the baic climbing. despite having profit climb on the back of the investment game, also want to highlight china southern up by 2% this morning after profits split the most in two years. cutting the price target for the carrier at more than 20%. a quick look at chinese banking stock. we are seeing a mixed reaction to the second quarter results. investors say this is a good set of numbers. bloomberg intelligence highlighting it that the head -- headwinds may restrain for bank of china. earnings, earnings, earnings. sophie, thank you. we have 18 out of 21 from hang seng have reported so far. in terms of revenue surprise, mostly negative. in terms of net income, that is more important. 18 out of the 21. joining us now, howard weng to talk about where we go from here. head of greater china equities. thank you for coming on the show. very simple question. howard: t

. ♪ rishaad: [indiscernible] andight here in hong kong, in shanghai and shenzhen, counting down to thef trade this week. this is what we have currently, a move upwards for equities in this part of the world. we are keeping our eye on canada versus saudi arabia. saudi arabia suspending diplomatic ties with canada over their criticism of holding a canadian citizen are protesting. in, in the face of fresh rules designed to stop the shorting of the rmb. the dollar, another good day on the markets and we also perhaps, that is one of the reasons why we have a slightly lower fix. lots of earnings, softbank is something we are keeping an eye on. hsbc as well. >> taking a look at mainland markets, extending losses for a fourth straight day as tech and telco shares are offsetting the rise of an angels and discretionary. zte among the laggards on the -- -- zte among the laggards on the mainland. unattractive after a slide. in hong kong, the hang seng set to snap a decline. this is boosting the benchmark over 2%, amid talks that google is said to be in discussion with tencent and other tech firms

executive edge there are five major global market that have tumbled into or very near fair markets shenzhenfrom the 52-week high argentina down shanghai down 23%. turkey down 21%. russia close to a bear market down 18.8% from the 52-week high >>> coming up, it's been nearly ten years since the beginning of the financial crisis author james freeman looked at citi group and lso fesnsrom past crisis before 2009 he's going to join us next at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business. & so this won't happen. because you've made sure this sensor and this machine are integrated. & she can talk to him, & yes... atta, boy. some people assign genders to machines. and you can be sure you won't have any problems. except for the daily theft of your danish. not cool! at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & this shipment will be delivered... with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your des

shenzhen's -- sanctions have to be applied. they are not a major power.technology is not just a purview of the u.s. and china and russia. smaller countries, organized crime groups, all of them can be equipped with the capability to disrupt our electrical system. host: what do they want to do with they get into the system? russia,n the case of they want to disrupt the and potentially the social aspects of that for their own political purposes. , ithe case of the iranians may be something like revenge. us,will put sanctions on you guys were messing around with our nuclear program, we will carry out some attacks. you can have organized criminal elements new for their own reasons to make money would want to disrupt the system. but theons are complex challenge is how do you deal wellall of these things as as the hurricanes and other natural disasters that can equally disrupt the system. host: we are talking about the grid this morning. for about the next 25 minutes we're joined by richard kauzlarich from the senator thee energy policy -- from center for energy

charles: ray, one is a huge red flag, maybe you can help me with, the shenzhen stock exchange, home toanies, off 50% from the fifth fifth high. this suggests something is really wrong. this is long before the trade tariffs stuff. this is something that really, i mean what is it, with is going on these tech names are getting hammered like this? >> well in that exchange i think what you're seeing there is a lot of speculation, frothy kind of like the nasdaq was in the '90s but what we're seeing a few winners emerged. if you look at big three, they're basically digital portfolios. the way we looked at ge in the '90s, portfolio of industrials stocks, trying to be number one, number two in their categories. that is basically what baidu, alibaba and tencent are doing, commerce, social media, payments, to banking, to delivery services, they're building that out and the retail expansion as you can see. charles: i happen to think you're right. they may be volatile near term. i think the stocks are way oversold. i'm on same page. thanks a lot. we appreciate having you on. >>> you're looking now