the inventor of the circuit areker -- engineer calm doing the opposite. the inventor of the circuit breaker even saying they got it wrong. yvonne: he created the whole system after the 1987 crash and he said china got it wrong. he said they need circuit breakers that appropriately reflect their market. the right thing to do is to widen their band. funds have been forced to sell their holdings in china. there is mandatory -- they have mandatory liquidation levels. a third of these funds have already reached those levels if not approaching them very soon. .ngie: wow thanks for that. asia bracing for another tumultuous day. if markets on wall street are any guide, investors are advised to buckle up. david has more on what we are seeing so far. david: it's an absolute mess out there. first market out of the gates this friday is new zealand. 1.5 percent down, trading for about two hours now. 5% ofi checked, 80%-80 shares on this index or on the way down. can we look at australia? ,ast i checked, we are down 1% 1.5%. let's see how this plays out in the next few minutes. we are moving toward 6% lo

we would have seen the circuit breakers trigger. so this does raise the question of why the rules were put in place in the first place knowing that this volatility can be the norm. so it raises the question. you have to wonder what they're thinking scratching their heads four days into the new year and the stock exchange halted twice so something has to give. >> and the yuan has depreciated 1.5% against the u.s. dollars. so a lot of head scratching going on. you just mentioned oil. i want to come back to that, brent trading below or just at $33 barrel. 33.01. we're seeing down by 3.7%. those are lows not seen since april 2004, wti crude off by 4.3%. looks like carnage out there today. jim cramer spoke to boone pickens. the founder and chairman of pb capital and asked him where the oil price is in the commodity cycle. >> close to the bottom. i was just a year up. we'll be back 70 or 75 by the end of the year. if you go back and look at the long stretch we had in the 80s we were 20% oversupplied. today the world is using about 95 milli

has in the morning, china removed circuit breakers. and we have a trading day that is a lot longer than a half-hour. manus: i am pleased with that. anna: knows the prizes today, friday morning seems like a good thing. doesn't it? let's have a look at where we have been. manus: no shock at all. but i did find the bloomberg world market capitalization, how much has the world lost? $3 trillion in one story, this is the market value. i can tell you this -- a trillion dollars of that came from china. we have gone from $64 trillion to 60 trillion dollars. that is a trillion dollars a day. anna: that is careless. let's talk about what is happening right now, some context so far this week. we have a chart where oil has been, and where the chinese index has been so far this week. what is interesting is that oil has been falling, and the again has been gaining. chinese stocks have been falling over the past four days. they are different today. this is a week picture. but the japanese yen is down. from the 12-year low, paring the world's best perf

risk wick,to china about the circuit breakers. nteresting that the ,ircuit breakers -- real quick about the circuit breakers. it's interesting that the circuit breakers went off when they did. circuit breakers are largely in u.s., butrea as the swings in the u.s. right now are definitely broadening out. if you look at distribution from the bull market up until august, 40 percent of daily moves happened within .4 or -.4. tom: thank you for your perspective. we need to go to asia. we are going to begin with angie lau. what are you specifically looking at? angie: what is going to happen at 9:30 p.m. when markets -- 9:30 a.m. when markets open. as you have been discussing, it is a u-turn out of china. everyone is really scratching their heads. do they even know what they are doing? it seems like they are flying by the seat of their pants. they removed this brand-new circuit breaker rule that started on monday and was triggered twice already. they removed fat, so we are going to respond. that, so we are going to see how markets respond.

the circuit breakers, that were only installed this year, have added to the panic. is even though they were designed to calm investors down. a lot of people have been calling for an toentd circuit breakers saying we are not the u.s. market. we are a volatile market, where 5% swings are very normal. that's the trigger point. there was actually an online poll that showed that more than 86% of the voters thought the mechanism was not reasonable. over half said that the breakers wouldn't be triggered again on friday. i was speaking to one investor that said that tomorrow at 9:30, he is going to be one of the first people to make sure he sells his stocks. not looking very good at all. >> he has us bracing for tonight, that's for sure. thank you very much, eunice. >> interesting statistics. you think tonight could be as bad as last night? >> it will be unless they do something. it is very interesting. they don't know or pay attention to what the s.e.c. says about the way insiders can sell. they just seem to be so ill-equipped to actually run a stock market. >> that's not

the circuit blaming breakers for causing all the volatility. at is not the only thing we should focus on. the circuit breakers were designed and that's what scared investors. that could be the case. managing the market is almost impossible. stocks have gone up so much in the last year. they increased 150%. valuations on the shanghai exchanges are the highest in the world. the ratio is above 55. that's almost exchanges around the world are in this is internet bubble levels. >> if you look at some of the u.s. valuations, that's what it's like. >> they are treating the average company like it was and they are not all future alibaba's. you have a lot of penny stocks. we were a restaurant chain, now we are a tech company. >> they are renaming themselves to sound more tech like them they are. been market manipulation. upfound one ipo that went 4000% in two months. a few months later, they restructured and halted trading. companies have the ability to suspend trading in their own stock if they say there is news pending. >> thanks for laying it out for

david: back to the circuit breaker for a second. circuit breaker. taking the circuit breaker off is not a policy. the question is, what comes instead of that? we are not getting a sense from china yet of a comprehensive approach that you talked about earlier. >> that's what we will have to wait and see. now that they have taken the circuit breakers off at least there is a sense that you won't have people trying to test how far the regulators are willing to let the market go. and markets have fallen quite significantly since their peak in june 2015. so certainly how much more is going to be taken off the markets at the moment is basically a panic driven way down on the stock markets. so unless we see broader measures to support the manufacturing sector and work towards reforms, this is going to be trained that is very difficult to stop. david: i understand there has been movement in our markets since the announcement. julie: i want to talk about policy here in the u.s. what is the federal reserve going to do now? looks like therp day

i think the circuit breakers are making the situation worse. they are set at incredibly low margins. there's no precedent for setting them this low. by comparison the circuit-breakers that were introduced on the new york stock exchange after 1987 currently only close market trading after the snp500 drops 20% or there is a fluctuation of 7%. it is not uncommon. between mid-may 2015 and 7 september when the draft measures on the circuit-breakers were initially introduced, the market dropped 7% on more than four occasions >>> what do investors and analysts like yourself want to see now? >> we want to see the regulator step away from such tightened market controls. i think that the regulator's motivation is to try to steady markets before it implements another round of reform. so the china securities regulatory commission is trying to move from an approval-based ipo to a registration-based ipo system. i think it is anticipating a lot of volatility in response to this. also the pension funds will start to be invested in the chinese stock market. i th

a lot of chinese investors online were calling for and end to the circuit breakers and they also believehalf of them said that they they the breakers are going to be triggered again tomorrow so a lot of panic in the markets right now. the regulator said they're going to try to limit the damage by putting in any rules so they can only do it in limited bunches. so about 1% or so but still it hasn't been able to turn around the sentiment. in fact, online, public fund managers have been advising their clients to sell that are shares. >> thank you for that. switching gears to corporate news this morning, shares of disney down again. this would be the 7th straight day of declines for the dow component but a bit of good news for the company, it's official, star wars, the force awakens has become the highest grossing movie of all time in the u.s. and stripping avatar of the title. it crossed the 800 million dollar mark. to beat the global record the film must rake in more than 2.8 billion. it's currently earned $1.5 billion globally and it hasn't even been released in china. i'm not sure if peop

a couple of hours after he spoke, the chinese abandoned the circuit breakers. at curbing the stock market selloff. in your experience, do stock market circuit breakers work >>? any time you limit people, it does not make them morecalm, it makes them more fearful. they turned off 29 minutes into trading. they could not trade their portfolios after 29 minutes? that breeds fear. ultimately, supply meets demand. that's where things start to balance out. once demand increases oversupply, things go up. let the market figure out where it's supposed to go. scarlet: let's talk about 2016. it has been an ugly year so far. what was the technical set up. ? >> it was mixed. the bull's point of view was only down 1%. wherefore .5% off but the bearish case was that most sectors were below their major moving averages. people will worried that once the new year's starts, you have to pay your taxes. most people want to see price discovery but they wanted to be flexible. scarlet: let's get to the part where everyone wants to hear where you see resistance and support. come inside

that is quite the move here without the circuit breakers for the first time this year. >> thank you, vid. china's removal of circuit breakers after just four days may have stabilized the markets, but investors facing plenty of restrictions. let's have a look at them. it is not without panic out there. it is not as though people are going everything is great. >> they scrapped the circuit breakers, which made sense, but we heard from alliance, and he says the timing and implementation of the circuit breakers is peculiar. they did realize that the markets in this system had very tight limits, which did more harm than good. among the retail investors, there is a bit of panic. we see mixed signals from china. they are intervening in the currency market despite the fact they said they wouldn't be doing that. they left the rate little changed after cutting by a half%, fixing the most since august. some say the suspension could be a constructive step, at least the most constructive wisconsin seen from the pboc in terms of alleviating the selling pressure. there are still restrictions. still t

and after the introduction of circuit breaker. gnitude of the lunch in the chinese market is more than double of the other major markets. so, i would just say that with yesterday in today's action, it is basically a confirmation that we are not getting a good read of what the market and where the market is heading. francine: what do you mean by that? we are not getting an idea of where the market is heading or you think there will be a correction? hao: yeah, well, i think to know -- today, they try to use national money to prop up the market. then we have a very volatile session was again today. simply by introducing the circuit breaker, they are increasing the market volatility. and i think they can just say we got it wrong and we can basically -- abandon the circuit breaker and go back to a normal state. abandon, a boston -- the plan to buy more shares. francine: what is the formal -- a normal state? where the chinese markets are cap stable by intervening -- intervening but keeps it as level which means they take the pressure off

we saw the circuit breakers come into effect and triggered. 15 minutes halt before the trading day. then trade resumed 15 minutes later. five minutes later after trade resumed we saw the circuit breakers implemented again, bang, because the market really fed upon the selling. it was down by 7%. that was the other rubicon that was crossed. and that implemented the circuit breaker that really froze trade for the rest of the day. so this was really on the csi 300 which ended at 7% lower, almost 7% losses you can say for the shanghai composite and i think what really freaked people out is the fact that when you have the circuit breakers implemented today, we saw some heavy selling. that panicked the market and it was almost the equivalent of someone shouting the proverbial fire in a crowded movie theater. everyone panicked. everyone rushed for the exits and there was a rash of selling that really snow bald. so that's what we really saw today. big question for the rest of the week is whether we see some buyers come in and sell in -- excuse me, buy out the lower levels here or whether we s

the circuit breakers kicked in. ing that the circuit breakers not set up right. >> lauren: shortest day in chinese history on their wall street. in europe more red arrows for you. the ftse down 158, cac down 114, dax 324 points. >> nicole: with energy materials leading to the downside, dow futures right now 406 points lower, s&p futures 50 points, nasdaq 143, that's 3.2%. >> lauren: this is how the u.s. dollar is trading against key currencies strength in euro and the safe haven japanese yen responding to everything going on with the china devaluation of their currency. >> nicole: we just heard analyst talk about the safe haven of treasury yields. that's where the money is going. >> lauren: china and oil and they do go together. that of course, in reaction to the china selloff and the slowing economy. phil flynn, fox business contributor joining us with the latest. phil, great to see you this morning. when traders come in to the pits behind you, what are they doing to do today? >> phil: they are going to wish they di

equities as you know, have become front and center for us again, but we have been blaming the circuit breakersor causing all of the volatility we have seen in china. but that isn't necessarily what we should be focusing on. some people said these circuit breakers were designed poorly, and that could be the this but really, managing market is almost impossible because stocks have gone up so much in the last year. summer to the year before, they increased 150%. valuations on the shanghai shenzhen exchanges are the highest in the world. at a medium about 55, it is like double or triple other exchanges around the world. this is like internet double -- internet bubble levels. they are treating the average company like it was facebook or with google. they are definitely not all future alibabas. says we are just a tech company, we were a restaurant chain and now we are text complete. and then the stock goes up. david: some people are naming their stocks to sound more techier than they are. >> that's right, the market has been manipulated very successfully. we found one ipo that went up 4200% in two m

regulators have also scrapped the circuit breakers. lted trade twice this week. >> unless china comes out and says it constitutes an official current hike the market continues to pfixate on the u.s dollar cross. >> does it remain relative to the basket of the currencies. ll, ll, mom knows it needs a big solution: an antiviral. don't kid around with the flu, call your doctor within the first 48 hours of symptoms and ask about prescription tamiflu. attack the flu virus at its source with tamiflu, an antiviral that helps stop it from spreading in the body. tamiflu in liquid form is fda approved to treat the flu in people two weeks of age and older whose flu symptoms started within the last two days. before taking tamiflu tell your doctor if you're pregnant, nursing, have serious health conditions, or take other medicines. if you develop an allergic reaction, a severe rash, or signs of unusual behavior, stop taking tamiflu and call your doctor immediately. children and adolescents in particular may be at an increased risk of seizures, confu

all day today chinese investors have been calling for an end to the circuit breakers, and late in thevening they got their answer. the government announced it would suspend the circuit breakers friday. the breakers, which were only installed this year, added to the panic despite being designed to calm investors down. an online poll showed that more than 86% of voters thought that the mechanism was not reasonable. the authorities also tried to limit the damage earlier in the day by unveiling new rules, governing large shareholders who are hoping to be able to unwind stocks after a six-month ban, which expires on friday. regulators said that they would restrict the size of the shares sold by big shareholders and require that the stocks be sold over time. the securities regulator holds a weekly briefing after the market closes on friday so authorities could provide more clarity on their decisions. for "nightly business report" i'm eunice yoon in hong kong. >>> david riedel joins us now with his perspective on why it seems the entire world is suddenly watching chinese stocks and their eve

this triggered the automatic circuit breaker and trade was halted to calm nerves for the second day thisweek. it also happened on monday. time is regulators have come out to suspend the circuit breaker mechanism that shut down -- chinese regulators have come out to suspend the circuit breaker mechanism. the repercussions are global. it is spreading to other markets across the globe. the cac 40 closed 1.47% lower. the dax gave up 2.3%. i spoke to a market analyst earlier and i asked him what sectors are feeling the squeeze here in europe. the western part of the world does seem to be hit harder than some of the more developing markets. the likes of germany, france, even the u.k. -- stock markets down across the board. it is those sectors most dependent on china for their income. in the u.k., that tends to be more of the commodity-related sectors as well as a few financial companies, like hsbc and standard -- chartered. are around china's stock market and currency as well as china's growth. markus: this was the second time this week that we have seen chinese shares falling by 7%. that is a

that led -- we have this new scheme of the circuit breaker. people in time will get familiar with that. also have some role behind this volatility in the market. >> let's start with what you mentioned first, the decline in the chinese currency. it's been pretty sharp this week. the central bank has allowed it to fall fairly sharply. why are they doing that? >> in the long term china will have free floating exchange because the whole economy is moving toward a more market based economy. i think that's the process that can with better managed to maintain stable transition and to avoid any disorderly depreciation and not only that but the global economy. now i can see there is some speculative that some investors try to front around the ppuc. that's why we see huge expectation in market. >> is it just front running or some economists outside of try that with what the central bank has done with the currency. are they trying to improve exports as the economy. should we read anything into what the central bank is doing with the currency and the econo

we have been pointing our fingers at the circuit breaker. vid: the things that we will start or stop trading. there has been such a decline, 5%, 7%. the provocative piece saying this is not all that is play -- is at play in the chinese equities market. carol: also focusing on running an airline. it is a tough job. david: running united airlines is even tougher. ceo changes -- there have been a lot of them. carol: and in a $2.8 million fine from among other things, mistreating passengers with wheelchairs. flight delays, lost baggage. david: greg bennett has been aching even deeper into the troubled airline. he joins us now in new york with more horror stories. this is a company that was in the news after a giant colossal merger. it is supposed to be the future of aviation. that merger was not a success. >> there was a lot of optimism about the merger. a lot of expectation that because -- you take the size of united and their net worth and continentals management, a company everyone thought was well-run, the employees were happy, you put those

. >> the circuit breaker. decline. en such a a very provocative piece saying that is not that is all at play here. >> also focusing on running an airline. it has a pretty tough job. >> the ceo changes at american airlines have -- united airlines y frequent.creasingl in this week's cover story, we have been digging deeper into the troubled airline. we have some more horror stories. this is a company that was in after a colossal larger. it was not successful from the get-go. >> a lot of expectation. you take the size of united and ther wha network, and ofl-run business continental, and it was thought you would have a powerhouse. that has not happened. get all of the different ways you can measure of performance, and they have done poorly. >> you have had bad stories, and i have had bad stories with united. have their problems. but with united, they are extreme problems. >> they were a lot worse. among non-discount airline can be look at the things that finish year after year and quarter after quarter, they finish at the b

the market. david: a circuit breaker stops the stock from declining 5% in one day. rol: a cut off trading in 29 minutes into trading. david: talking more about the circuit breaker. how did it get put in? who put it in? >> last summer chinese investors were unhappy the market was volatile. compared to our market, there is is totally nuts. great idea.ke a regulators decided, let's let people come down. -- calm down. they said after 5% we will take a 15 minute break to reconsider. sell did not want to anyway. if things david call him and stocks continued declining, at seven minutes they would halt for the day. equity markets have become front and center. been not -- we have blaming circuit breakers for the volatility, but that is not the only thing we should be focusing on? zeke: some people said circuit breakers were designed poorly and it scared investors. that could the the case. managing the market is almost impossible because stocks have gone up so much in the past year from last summer to the year before, they increased 154%. on the shanghai and shenzhen exchange

the stock was halted earlier on a single stock circuit breaker. the reasons for the fall in shares is the company has agreed to offer equity to its bondholders as part of a transaction to pay down debt. keep in mind it has been a tough year for the stock, shares down 80% over the past 12 months. >> thank you, seema. >>> turning our attention back here, ten minutes to go, dow is down 355, s&p down 42, those transports morgan just mentioned are literally at 7009, a little bit of a bounce back, 25% off their highs, the vix just coming below 25 and the nasdaq down 128. >> we will come back with bank of america wealth management's chris highsy. he will tell us his strategy to make it through what he's calling the twilight zone. >>> all right. we have got about seven minutes left in the trading session here with the dow down 364 points. joining us on the floor of the big board right now is chris heisey from bank of america wealth management. so here we go. we've got a pretty tenuous market to begin 2016. i know you've been bullish on this market. what do

the circuitow brigade is -- the circuit breaker is gone. it was badly design because she the circlehad 5% break it will get -- the circuit breaker we get triggered. china is the largest trading nation. the largest creditor. what happened in china matters. my view is that the global growth is slowing but not crashing. even if you saw the -- which has been lowered to .7% -- notcine: did the week actually show policy mistakes? circuit breakers were badly design and something did not work out. we have gone back to the china we knew several months ago -- intervention is. yuan isthe chinese going to get weekend. that is where you saw the stronger fixing. because china was to control his capital flow. it intends to open the capital,. to give you an example. when israel tried to open the capital account in 1978, they closed it in two years time it has such a bad run. the challenges that china is facing. francine: i understand the challenges and we need to give it more time but as an investor, what does it mean? or pretendss risk that china's financi

one told me that scraping the circuit breaker system will help stabilize the market but says it will take time to remove the panic, especially among retail investors. the shanghai composite ended up 2%. that's after falling as much as 2% and rising as much as 3%. the people's bank of china raised guidance rate for the yuan for the first time in nine days. the fall is easing after continuing to hit five-year lows throughout the wk. the dollar lost over 2% this week, slipping to the lower 117 level on thursday. all in all, china sent big waves into the financial markets but now we're seeing stabily across the region. i'm mayu yoshida, reporting from the tokyo stock exchange. >> mayu, thanks. >>> checking other markets in the asia-pacific region. sydney's s&p asx 200 continued to drop for a sixth day. it posted its sharpest weekly fall since 2011. market watchers say investors are cautious due to lower oil prices and uncertainty in china. hong kong's hang seng index rose just over 0.5%, down more than 6% from last thursday, the worst weekly loss in more than four years. seoul's kospi ro

the first day the circuit breakers were used. what prompted the selloff was to s showing -- two gauge contraction. 2000has not happened since and. the unofficial gauge, the private age also fell to a three month low as well. china set the tone today. throw into the mix the fact that saudi arabia severed ties with iran. that is china halting trading after the csi 300 sank by 7%. this shows the appetite or safe haven assets today. yen.is the japanese against all 31 of its major trading peers today. as you can see, every single one of them, are falling against the japanese currency. look at the weakest one. the countries that rely on china for demand. the new zealand dollar falling. the australian dollar falling as well after we had the nations official purchasing manage indexes remaining below 50. the dividing line between contraction and expansion for the fifth consecutive month. risk aversion is accentuated after saudi arabia expelled iran's diplomats. gold rising today after a third year of decline. was third year of decline the

that was the first threshold that we crossed that triggered the circuit breakers. e resumed 15 minutes later. soon after that we saw the selling snowball. down by 7%. bang, the next trigger for the circuit breakers. that effectively froze trade for the rest of the session. so i'd say there was an element, as i said, of shouting fire in a crowded movie theater. investors essentially did panic, they tried to rush for the exits and sell to try to preempt the circuit breaker. that's how this meltdown really snow bald. what we can say is the volatility seems to be back and in earn yes. we get the trade balance for the month of december at the end of the week on friday. let me pass the baton over now to my colleague carolyn in london for the market update over in europe. hi, carolin. >> hey, good morning to you, sri. a pretty ugly start to 2016 as well here. we took the cues from the asian trading session. the main culprit once again concerns about china and those due to political risks in the middle east. the stoxx europe is down at this time. if we take a look at the in

the circuit breakers triggered on monday and today. i want to zoom in on today and what we have seen overnight. only 29 minutes of trading. stocks,op in chinese 7%. that closed the market for the entire day. drop in u.s. a 20% stocks to get a full day closure. but the chinese authorities have now suspended the whole idea of circuit breakers for the moment. all of this happening as we once again saw a devaluation in the chinese currency. let's take a look at that chart as well. this is theling -- dollar versus yuan on the day. that is what sparked all of this. concerns about just how worried they are about chinese growth. betty: they are indeed. chinese growth prospects are spilling over into other asset markets. oil prices tanked not all of this. julie: oil prices definitely tanking. we saw it trading at its lowest closing since about 2004. is, you are you already have ample supply. what if the demand is falling off even more than people have expected? what does it mean now that we are underway here in the u.s.? futures were indicating

>> the government instituted the circuit breaker. this is the first data went into effect. an effort to ease market volatility and soothed investors and prevent a massive swings. what ended up happening is the circuit breaker was in a vicious cycle where the market started to tumble, a lot of investors realized we are not going to be able to get out before the breaker trips. >> what was the trigger? was the manufacturing number? was going on here? >> the manufacturing numbers are down pretty marginally. it is really only based on 400 companies. you can get swings the time what happened to a couple companies. government is set to lift a ban on major shareholders of stocks selling their shares. that was put into effect last summer during the big markets. that is supposed to end at the end of next week. lifting,pation of that a lot of people are anticipating major shareholders are going to be dumping stocks, so they wanted to get out or that happened. >> it then raises the problem, chinese officials, as they are trying to change their hands -- trying to take their hands off the

today was the first day that we saw the circuit breakers take affect. >> do you think the circuit breakersactually contributed to it? >> they're going to say it intensified the selling. as it got closer to 5% and after 5%, people wanted to get out as quickly as they could. it took seven minutes to get from 5% to 7%. >> it is hard to forget the worst start to the year for european markets. mark barton in london wrapping up the trade. mark: the worst year prior to today fell by 1.7%. today, looks like we are going to close around 2.7% lower, a third of last year's 6.8% has been wiped away in one trading day. >> not a happy new year. for anyone who was long, equities down. the dow industrials closing 276 points. at one point, it was down as much as 467 points. the worst first day of trading since 1932. started with what we saw in china last night. when the market fell 5%, it triggered although circuit breakers early in the afternoon. we're just going to pull the plug. it was that ugly. >> china overnight, the plunge protection team getting to work very early in 2016. sources say the nation ha

carol: four sessions later, the circuit breaker cutoff trading after 29 minutes. en the system was suspended. dave: our guest joins us now to talk about this circuit breaker. who decided to put this system in? guest: last summer, investors in china were unhappy that the market was so volatile. compared to ours, theirs is totally nuts. stocks will go down 5% a day almost weekly. the regulators decided to let people calm down and think about it if stocks go down too much. they said after five minutes, -- after 5%, we will take a 15 minute break. dave: just a breather. guest: reconsider, maybe i don't want to sell after all. stocks seem like a great value. if things don't calm down after the break and it stocks continued decline, at seven minutes, they will hold stocks for the day. carol: chinese equity markets have become front and center for all of us. but is not necessarily -- we have been winning the circuit breakers for causing the volatility, but it's not the only thing we should focus on. guest: some people said that these circuit breakers were designed poorly.

later, chinese authorities reported they won't use the circuit breaker mechanism anymore. and let's go over to new york to get the reaction from the other side of the atlantic. was there some relief at this announcement of the circuit breaker being broken? >> well, initially, when this decision was announced, meaning index is started recovering losses, but that didn't last much. the dow jones off more than 100 points a couple minutes ago on more speculation that they could the value the yuan even farther. these would take a huge toll on oil prices and push deflationary courses even farther, making it nearly impossible for the fed to justify future interest rate hikes. as for now, over more than 50% of the market doesn't expect the next increase to happen until -- >> there has been a lot of political criticism coming from the u.s. >> yes, especially in the republican party. we saw marco rubio, republican senator seeking to win the party nomination for the presidential election, saying that china's shifted to a more consumption-based model is not working at all, and pointing

they had to put the circuit breakers in. e not going to do it tomorrow, no more circuit breakers. clearly it's not working, the trepidation following through. and the nasdaq composite index at 137 a loss of 137, nearly 3%. we're going to stay on that. >>> a controversy in colorado sparking fierce debate on "the intelligence report." the cargill meat plant we told you about yesterday under fire for laying off 200 muslim workers after they walked off the job for three days unannounced. the walk-off after a group of 11 muslim workers asked to pray at the exact same time. the company said you can pray but got to do it as a smaller group so as not to disrupt business, we're talking about a factory line, assembly line here where everybody needs to do their part. sounds fair, right? well, apparently not to those 11 workers. they are upset. they quit. and in turn nearly 200 other muslim workers didn't show up for work for three whole days. so the company fired them. we asked the workers representative about this on yesterday's show,

they may remove the circuit breaker. our markets were coming back, then the scuttlebutt was china was going to let the yuan fall where it may. >> it doesn't make sense that they would let markets run free. the thing they fear the most, an implosion. they are about to open that pandora's box. this is frightening what they are going to do. they should be doing whatever they can to hold the markets up. enclosing for a week. letting the markets run free tomorrow will cause global panic. charles: jim, do you agree with that? china is new at this. they control everything from how many kids you can have to whatever. but, you know, they are out of their league here and maybe they should step back and let the chips fall where they may. >> by letting it go down gradually they are letting people sell to get in front of the decline and they will do something decisive and let people know that's the bottom. that would be the most efficient way to get through this. but as your last speaker just said, there are collateral dislocations th

the chinese markets were twice forced to shut down under the controversial circuit breaker rule. s now been abandoned by the government. >> reporter: in china, red is a lucky color. it tells you shares are up. nine months ago, there was a lot of red. chinese investors were buoyant, the share market was at its highest level since 2007. but for now that winning streak is over. the market is in a slump. since june stocks have lost more than 40% of their value. and some small investors are less than happy. >> translator: don't film! we don't want to talk about it! >> reporter: they blame their problems on foreign speculators as well as a measure that was supposed to calm markets but had the reverse effect. >> translator: the government is trying to protect individual investors, but to be honest, the system is not perfect. the system needs to be improved. >> reporter: the authorities have responded to that criticism, suspending the circuit breaker rule that halts trading when shares fall sharply, which happened twice this week. as a result, the market rose on friday, a partial recovery

the idea is to stabilize the market, but some say it could increase pressure to sell. >> circuit breakers will not change the supply and demand of the market. the new mechanism will not change overall trading trends. josh: china is not the only country to use such circuit breakers. the u.s. introduced a similar system in 1987. beijing's two-tier method is one of the strictest. allhen: massive falls on the main indices here. ,ermany's dax down by over 4% representing germany's position as china's biggest trading partner in europe. a significant fall of the paris and london markets as well. in london, mining companies particularly badly hit. on the oil markets, we have seen the effects of the tension in iran and saudi arabia. the price of oil is up over 10%. greece, whereo to the government is facing another battle over pension cuts. stephen: athens has to send its plans for reforming its pension system to its international creditors today. date needs to -- prime minister alexis tsipras is trying to avoid further cuts to pensioners by increasing employer contributions by 1% and employee con

the good news is, after all of the turmoil stemming from the circuit breakers, it halted trading this morning hopefully the opening bell will have better results tomorrow. as you know, only time will tell. >>>>hank you. now to campaign 2016 where once again a lot of the tk over ted cruz's citizenship they have spoken out. donald trump brought up the issue and that it might be a problem going forward. ted cruz responded. >> the child of a u.s. citizen born abroad is a natural-born people will continue to make political noise about it, but as a legal matter, it's quite straightforwrwd. >> ted cruz continues to lead trump in iowa. trump has a commanding lead over the rest of his gop rivals nationally. >>> jim is traveling around new hampshire which holds the new primary of the presidential year. marco rubio is there showing frustration about a focus on his fashion instead of serious issues. it seems that everyone wants to know about rubio's shiny high heel boots there were more questions about hiy foot ware today. >> have people lost their minds? oh, yeah, north korea made a got a chuckl

authorities scrap the circuit breakers after less than a week of use. another volatile trading session as state-controlled funds are buying stocks. production run over. china has an eight-day streak of cuts in the yuan reference rate, sending shockwaves through global markets. jobs day. the december payroll report is said to be scrutinized following the rate hikes, amid intense market volatility. you wake up this morning and see the chinese news, and you almost forget that actually it is payroll day. anna: by now. encrypt -- -- i know. it crept up on us. so much value was wiped off global equity markets. the chinese situation does look different, and many asset classes look different compared to what they looks like from the start of this week. it's not as if we are operating in an environment where there are no controls on chinese equities and no intervention, but some of those asset classes are rebounding. oil up by more than 2%. jonathan: it feels a little bit like tuesday morning, the calm after the market storm. if you wake up this morning, the calm

bring back the circuit breakers. should china have waited longer before ditching the safety valve? the man who invented the system says beijing got it wrong. an extraordinary week for global markets. europe and into asia and beyond. david: mid day and the way things look right now for equity markets here in asia it looks to have fizzled out at least in our time. you can see just about every single sector group. on the way up. volumes of action picked up. it indicates that buyers are back to some extent. groups?-performing oil and gas. industrials as well. consumer services. china, the big winners here apart from every single sector on the way up. the steelmakers doing particularly well. we are looking at gains here on the order of eight to 10%. some of the bigger names. industrial metals. a local report that we might actually see some support within this beleaguered sector. a lot of people calling it serious overcapacity issues for steel. finally, the chinese currency. it has been fairly stable. it has been quiet. this was the markets show pill. the offshore rate came awfully close

>> i would advise them to have a less restrictive, or wider circuit breaker and to see if the market actually find it bottom. >> china has second thoughts as it suspense it circuit breaker rules. the chinese authorities have control of their capital markets right now? >> i don't think in the short-term they do. i really mean in the next few days. the way that chinese stock markets were, these bull frenzies we saw in 2014, 2015, is -- there's not a lot of good information. the government can't control their movements over a couple day. -- over a couple day period. it is not connected to fundamentals. because no one knows what the proper levels of the market is, it is a casino in the ugliest sense of the word. whenever the government seems to be taken all of these emergency steps, it disturbs everyone's confidence even more. >> 292,000 jobs. unemployment rate unchanged at 5.0%. the number is good. good lord! it is not up slightly. 62.6, that is the number janet yellen has been looking at. >> that this report confirm janet yellen's action? does it say she will need to be more proactive a

and actually, the irony is that china put these circuit breakers in place to prevent market panics, but they're actually causing them. and you saw a lift in global markets the moment chinese securities officials said okay, we're done with the circuit breakers. so actually removing them was the real circuit breaker. but this is not really just a china thing. and i've been saying this for a long time. when you think about the amount of the chinese stock market that's owned by offshore investors, it's 2%. so put another way, 98% of the china market is owned by chinese investors, and i agree with steve. it's a very immature market. only about 25 years in existence. there are 99 million investors and none of them have more than a decade's experience. it's non-institutional like europe, like here. in the u.s., we have other issues. we're probably in the midst of a cyclical bear market, as we speak. doesn't mean we have to have a recession. doesn't mean we have to crash. take a look at the russell 2000. it's 17% off its highs. it broke the september lows from this morning and it's actually tra

today was the first a result of circuit breakers pushed. >> do you think the circuit breakers -- actuallyontributed to it? >> some of the market participants are saying it did intensify the selling. as it got closer to 5% and after 5%, people wanted to get out as quickly as they could. that's why it only took seven minutes to get from 5% to 7%. >> it's a day for bowles to to forget thes worst start to the year for european markets. mark parker wrapping up the traits. mark: the worst year prior to today fell by 1.7%. today it looks like we are going to close around 2.7% lower, a third of last year's 6.8% has been wiped away in one trading day. >> not a happy new year. equities the dow industrials , closing 276 points. at one point, it was down as much as 467 points. the worst day of trading since 1932. >> a really ugly start and it really started globally saw in china last night when the market fell nearly 5%. it triggered although circuit breakers early in the afternoon. we're just going to pull the plug. be back here tomorrow. it was that ugly. >> china overnight, the plunge protection t

i guess it worked for now, stripping out the circuit breakers. we will see. >> for now, two minutes into the session. let see what happens. thanks, david. let's have a closer look at guard. h alex circuit breakers, good thing or bad thing, or is it a gray area? >> it is a gray area. sometimes it works with compute rised trading where the market is spinning out of control. and then other times say in the china instance, maybe the 7% and 5% figures are too loe and being triggered too quickly. >> what are the steps? does the regulator there or the government have enough ammo? >> great question. they have thrown so much ammo at the market already in the last six months. they have suspended i.p.o.'s. they have implicitly ordered certain participants in the markets and traders to just stop trading, to stop selling. they have done this circuit reaker, and they have detained certain market participants as well. they have thrown a lot of ammo at the question. has it worked? happens not. we will see. >> what do they do next? we can't have the situation popp

stocks fell 7% which kicks in the circuit breaker. it actually comes in at 5%, that would hold for 15 minutes, but 7% means we're done for the day. in the 29 minutes there was a mass panic to cash out because they were concerned, they wanted to get ahead of the circuit breaker. one manager of 46 million dollars in equities cashed out all of his holdings, it's that kind of panic selling that leads to this. this is one. most volatile markets in the world anyway, stuart, when you throw in this and the fact that they don't understand circuit breakers, it's having a huge impact not only there, but rippling around the world. stuart: in my opinion, china is a casino, but that's another story. ashley: yes. stuart: how about circuit breakers and holds on trading in america, on wall street. ashley: they've revised the rules in 2013. there are essentially three levels. the first level, triggered when there's a 7% drop. stuart: on the s&p 500. ashley: on the s&p 500, i should point that out. level two a 13 point drop. a 15 minute halt, can only ha

this is a session where they don't have the circuit breakers in place before. remember back in august we would wake up and it would be 40% of the markets were halted. >> right. we had a circuit breaker crash, 5% down 7%. then rumors they will let the currency flow 10%. i don't know how the market is going to react to all this news. this is a lot of information to digest. what do investors at home do? stay in cash. if you have ridden this market up -- >> what happens if you're not in cash? >> even down 10% on the dow. correction territory, sell your position? >> absolutely. >> i don't want to sell my position. >> the person is going to lose money. >> it's going to 1620 which would be a 20% correction which would not be that unusual in markets in general. you sell them tomorrow. >> i would just say you don't have to be a bull or bear. you got here. you're this far. the writing's been on the wall. if you talk about or just consider the volatility we've seen globally in risk assets the world over, the fact that now the s&p is down 10% from the all-time highs, we kno

the circuit breakers went into shortly after this happened they announced they were going to take away the circuit breakers market to halt. concerns about china. certainly a cause of today's selloff. then you add a decline in oil. that too weighed on the markets today. average investor is looking at. kind of scary when you look at the 401(k) and what's happening to it. >> they usually look at their statements on a quarterly statement. so they may not get a read on their portfolio until march. if you have a long term view of it, you may want to consider holding off. if you're concerned, always call your financial adviser first. they are the ones you should turn to. they are the professionals. keep in mind what your time frame is with these investments. don't make rash decisions one way or the other. if you're a retail investor. >>> and turning now to the random slash in chelsea. the suspect has a long rap sheet and may be responsible for slashing other victim ons the street. michael george is live in midtown where the suspect was captured. >> reporter: sometimes detectives need one brea