Stocks. Bigger, not always better. The ceo tells cnbc hes not interested in chasing scale. When youre living in a changing world, the species that survives is not the biggest. They are the fastest and i believe our role as havas as a global company, we need to lead the way of the change of how we can be more nimble. Welcome to the show and happy friday to you. Its oil catching the attention of investors. Crude oil just turned into negative territory after yesterdays 10 leap. That was the biggest oneday rally since march of 2009. This thanks to a bounce back in Global Equities and a strong u. S. Growth print. In the u. S. The Energy Sector had the best day since november 2011 gaining over 5 . Leading the way was Console Energy up almost 14 . Transocean higher by 11. 5 . The sector close to getting out of correction territory. The major Energy Stocks across the europe getting a boost in todays trade. Tullow oil up over 7 . Bp also trading in positive territory. Now another gainer in todays trade, this as the french oil apolo giant is planning to sell off 900 million of north sea assets. Stefen has more on that story. Good morning to you. Good morning. The ceo believes the price of oil will remain low for a period of time. The company will have to reduce its investment as a result of the low price of oil. Regarding the chinese weaker Economic Growth he believes also that the situation is not so traumatic. I caught up with him yesterday on the site of a business conference close to paris and asked him if he was concerned about the low price of oil. No, my job as being the ceo of an oil company is to be profitable. And this is what we manage during the first half. Diminish only by 10 when the oil price diminished by 50 which is proof that its very resilient and also the works we are doing. So we spend yes and we deliver good results. Are you planning to cut further your investment as a result of the lower price of oil . Of course. Because at 40 per barrel i cannot invest as much. Even if i invested 23 billion but we announced that were going to be at 20 billion for next year. Total confirmed yesterday the sales of some assets in north sea and the company confirmed that it will continue to sell it as part of a broader plan announced more than a year ago. Back to you. Thank you so much. Saudi arabia could be broke by 2014 if oil stays at 40 barrel. Thats according to the latest cnbc data study. Go to our website cnbc. Com. Lets draw your attention to shares of oil. Dipping into negative territory. Joining us to discuss is the chief economist. Good morning, hi. What do you make of the price action that were seeing in oil, of course after the 10 surge in oil prices yesterday does that suggest yesterdays rally was Short Covering . The markets are forced to fault on that. Obviously extends over to oil. Yesterday we had the stronger than expected us gdp print of course. Thats the reason why it bounced and now were going into a period where the markets are nervous about whats going on everywhere. Well see. But at the end of the day low oil price is good news for european and u. S. Growth. But it seems like there is a correlation between oil prices and stock prices. Yesterday many of the traders i spoke to were saying that oil was surging because of the Strong Performance in u. S. Equities but Lower Oil Prices is actually good for the consumer yet prices move higher when oil moves higher. So its hard to understand. Absolutely. Well, i think, you know, ultimately equity prices will be driven by Economic Growth prospects. If you have a situation where countries in europe and also the u. S. Are still outperforming expectations and earnings momentum can develop on the back of that, thats good news. Obviously for the Oil Producers and anything attached to oil for stock prices thats the problem. We want normal gdp growth. Its a dramatic drop in oil prices and european stocks also taking a leg down. The xetra dax down about 1 . Does this tell us that the volatility is not over . Absolutely. The market, you know, stronger u. S. Data brings back to the fore, the fact that the bank of england will at some point tighten policy. The fed may not until 2016 but the stronger the u. S. Economy at the end of the day the more likely the fed will raise rate which is is part of the issue for markets and we still dont know whats happening in china. Its a black box. We know its slowing and thats a huge issue for markets. China has been at the forefront of concerns when looking at the economy. Is it slowing down much faster than one expecting. Do you think at this point the china story is priced into Global Marketing given the declines and rebounds in stocks . We have been trying to reassure investors in europe and the u. S. That china is not going to derail recoveries in those regions but if china was to seriously go into recession which then lead to more of a global problem that would impact markets more generally. Were not so concerned. Were down 1 for brent crude. There was an interesting report from wall street journal, venezuela has been pushing for an emergency meeting with russia to come up with a plan to stop the Global Oil Price rut. How much of a role can venezuela play . Im not an expert but its all very marginal. The oil price is where it is and its probably going to remain around 50 or below 50 barrel. Okay. Lets get straight to european markets. Taking a significant move lower. Show you european equities at this point. The stoxx europe 600 down about. 5 . More red than green on the heat map as you can see. Energy despite the drop in Oil Prices Still the best performing sector. Well see if that holds true as we approach the end of trade here on friday. The euro stoxx 50. A good gauge at 6,266 down just about 15 points on the day. European markets youll see that the xetra dax is the underperformer given its high exposure to the Energy Sector also china as well and makes about 10. 5 of its sales in the country. Xetra dax at 10,235. Despite the moves that weve seen on monday, tuesday, wednesday, thursday and here on friday xetra dax is out of bear market territory and only down about 17 from the recent highs. Risk averse a big part of the bond story. Thats been sending investors into safe haven assets like bonds. Also uncertainty around whether the fed will raise rates given the external factors that could improve growth. Thats been pushing the rates out from september to december. You can see the u. S. Treasury yield at 2. 5 . The bund at 0. 72 . The euro interestingly enough slightly higher against the u. S. Dollar right now at 113 but well below the level that we saw it hit on wednesday which was around 115 and 116. Theres a look at Global Markets. It could be of course another interesting couple of hours as we look at Oil Prices Trading lower on the back of the 10 surge we saw yesterday. Coming up on the show, cord cutting and skinny bundles. We hear from the chairman of Carter Communications as media stocks get slammed on fears that paid tv space is dying. That story is coming up. Youre watching worldwide exchange. Dont two away. Shopping online. Is as easy as it gets. Wouldnt it be great if hiring plumbers, carpenters and even piano tuners. Were just as simple . Thanks to angies list, now it is. Start shopping online. From a list of top rated providers. Visit angieslist. Com today. Welcome back. A senior chinese official says the fed is to blame for the Global Market sell off, not beijing. This according to reuters. Its been a highly volatile weekending the session up almost 5 but still posting an 8 net loss on the week. Lets get a check on markets with sri live in singapore. Over to you. Hi, were rounding off the week on a positive note. The risk aversion is easing thanks to the rally we saw in the u. S. Two days of back to back gains stateside so thats helping sentiment over here. Underlying sentiment still remains quite fragile. I think the mainland chinese equity market like the fact that we saw a strong rally in the u. S. And the fact that we got clarity over the moves by the Pension Funds in china to invest in the stock market. This is longer term, more patient, more sticky capital as opposed to the retail money. So we understand now according to the commentary from the chinese officials that the Pension Funds will be deploying up to around 2 trillion yuan into stocks and other assets as well. That lifted sentiment to 5 higher. That doesnt take away the fact that we are down on the week by nearly 8 . Look at the hang seng, its much more cautious. Were down by 1 for hong kong equities and then we have the data. Its very interesting because maybe the markets in china are getting into the weakness of the economic landscape and sluggish economy. The markets brushed that off. Inflation slid, Consumer Spending slid in japan. The china effect there arguably and also deflationary effect by lower oil pies. Up by 560 points at the settlement or 3 . However i think the risks are building. The economists were talking to are saying we could see a move in october to try to get inflation back on track. Overall quite a positive session in the region for the equity markets. Oil helped the currency markets as well. The ringgitt stabilize. The pressures still remain though. All eyes on stan fisher, the feds number 2 at jackson hole and what tone he would strike. If he does strike a dovish tone that could give a respite for assets out here in asia. Thank you. Cleveland fed president says the recent market turmoil has not changed her view on the u. S. Economy and its ability to support a rate hike. She tells the wall street journal theres probably more down side risk to her Economic Forecast due to volatility and uncertainty about china. Now a wide range of policy makers from across the globe descended on the annual economics imposium. One thing is for sure, they wont be short of conversation. Steve filed this report, a preview of what to expect. Reporter this grizzly bear stands at the entrance to the feds deliberations in jackson hole. A threatening reminder that they may not be out of the woods when it comes to the dangers of raising Interest Rates. But one fed official is ready to stair down the bear. This weeks events complicate the picture but its too soon to say it fundamentally changes that picture. In my own view the normalization process needs to begin and the economy is performing in a way that i think its prepared to take that. Its a major question for the fed. To be deterred by the markets or propelled by the better economic data. Rate hike advocates got ammunition today in a major up grate in gdp to 3. 7 . Every major component. The consumer, business and government was advised higher. It was a bounce back from the weak growth that started the year. It was good to see more investment. Thats been one of the challenging where we havent been seeing enough investment and we havent been seeing enough wage growth. If we can get more investment firms are more comfortable with where the economy is going. Less uncertainty and more hiring and wage growth and then were on a good path. But theres those that say the fed should fear the markets more. The case for september was weakening even before the sell off and i think the sell off does matter even though you shouldnt set policy for the benefit of the markets. Here in jackson hole theres another element for the fed to consider. Politics. Protestors lead by the noble prize winning economists lead a petition with 110,000 signatures urging the fed to stand back so workers raises could rise. I dont see this at higher call and what is interesting is that the widespread support among people that are not of the mind set of the fed, not involved in the Financial Markets and concerned about the real economy, theres a consensus. Its a bit like the fed policy ahead. No doubt theres a bear lurking in these woods. Cnbc Business News in jackson hole wyoming. Well t bears came out to play in the markets this week. Thats for sure. And two californian cubs wanted a piece of the action. They were soaking up sun in the backyard Swimming Pool and made use of the inflatables while the family inside were sleeping. They havent harmed anyone in the community and wanted to cool off like everyone else. Whats wrong with that, right . Very cute. Lets bring david owen back into the conversation from jeffreys international. Very cute there but the bears seem to be really in control of this market early on but now the bulls seem to be back in play here. How do you think we shape up as we approach the end of the week . Today we have the u. K. Gdp print which is important but jackson hole is much more important. You have the Vice President speaking not just from the u. S. But from the ecb talking tomorrow and mark carney. All of this will be in the rounds. When is the fed going to raise rates . Is the ecb prepared to do more. It will dictate Market Sentiment into early next week. Financial volatility combined with greater political uncertainty, will that have an effect on Consumer ConfidenceGoing Forward . Well have to see. At the moment the flow for europe and the u. S. Remains positive. For august it was surprisingly robust but that was all around services. The recoveries were seeing are around Business Services which are less impacted by everything going on in global trade in china. So just be interesting to see how much we can see them continue to lead. The ecb will have to respond by doing more at some point. Keep european stocks afloat despite the volatility in the last couple of days. In theory they should and ecb is doing qe so very different than the u. S. And the u. K. If anything theyll step up the Bond Buying Program and money supply growth in the euro zone remains robust. We saw that yesterday in the data release from the ecb. By later this year, the broad measure will be growing 10 year to year. Lending to euro zone households. Is that a vote of confidence to the central bank . Does that tell us that qe is working . Better than it did in the u. Kuch k. For example. In terms of the euro zone its more about promoting recovery and we can see more evidence of qe working through the monetary data in the euro zone than we saw in the u. K. U. K. Was different. That was back in 2009. The situation now is that the ecb is giving recovery more of a chance but what they also need is a weaker euro and the euro isnt weakening at the moment and that will welcome an issue for them and they may try to talk down the currency in some way. Greek crisis has receded from the euro headline. Refreshing fror us journalists. But we have an election. Could that weigh on sentiment . Absolutely. We have elections in portugal and spain later this year which could be serious with markets when you have uncertainty developing in other countries and with greece the imf will get involved with the third bailout unless theres former debt relief and that will be discussed in october. Probably so. Greece isnt entirely off the radar at all, no. I actually read about how greek crisis has made europe economically stronger but politically weaker. Would you agree it pushed many euro zone members to take side and future issues they have to debate or find a solution to could be much tougher because of what happened in the past . Thats absolutely right and when you think about who wanted debt relief and who didnt for greece. The poorer countries in the system and those that went through massive austerity who are smaller they were the ones playing more hard ball. Germany was more prepared to concede. Even though theres a lot of euro skeptics. But they understand at some point debt relief has to happen and the imf probably has to get involved again and require some form of debt relief but theres all of this Political Tension if we get election changes in spain and portugal, the markets go oh, i thought europe was recovering. But could we actually see a change in spain given the recent economic rebound . Were looking at auto sales growth fastest pace since 2008. Isnt that a vote of confidence . Yesterdays gdp proof. Investment was soaring and strong consumption growth. Spain is doing better but you just cant in the country environment its another wildcard. Were bullish on spreads inside the system. So were not that concerned but were aware that there are these political hurdles we have to get through. Which country are you most bullish on when looking at economic reform or do you think will show the highest rate of change in 2015 . Is it spain or italy . Italy should outperform expeck t expectatio expectations. Its recovering from an incredibly low base so it has more prospect to bounce. Credit conditions there have eased substantially from the crisis period so im actually thinking that italian gdp has more surprise in the upside and also recovering the euro zone through its trade exposure and if the euro goes down italy will benefit from that but at the moment it still disappoints and spain is the one that continues i would say surprising on the upside but people are bullish on spain anyway. But to your point italy is starting to slowly change. David stick with us. He will be sticking us with to break down the u. K. Gdp number and stay tune for a full coverage of the jackson hole gathering. Our u. S. Colleagues will be speaking first to minneapolis fed president at 13 30 ceo and also with the reserve bank of india governor coming up at 21 10 cet. And some social media news. Mark szuckerberg says facebook received a new milestone this week. He quail to 1 in 7 people worldwide. Facebook said it had 968 million daily active users in the Second Quarter versus 936 million in the previous quarter. David are you a big social media user . No, not really. My family does. My children and my wife. Not me. A billion people. Thats massive for one platform. And theres more traders now whether they be on the retail side or working for a specific fund joining the conversation to highlight their views and express their opinion on different stocks . Do you see that among your colleagues as well . Theres a move and trend toward people having twitter akoun accounts and so forth. Attend of the day social media is important but also the internet is just carrying on in importance. Its incredible how easy it is to get information. Its increasingly becoming part of the conversation online and off line as well. Lets bring it back to markets here as we were telling you oil prices turning negative after the 10 jump in yesterdays trade. Of course one of the reason wes did see energy stock out performing in the u. S. Here in europe its the Energy Stocks that are pushing european stocks initially higher but now lower on the day. Brent crude at 46. 70 down 86 cents in todays trade. Wti crude is back above 40 which is a key psychological level for traders but in todays trade down by around 1. 6 at 41. 88. Spot gold seeing a little bit of buying today interestingly enough. Higher by around 4. Keep an eye on the commodity index. In the meantime, currencies not the type of action we saw earlier this week when it was the weaker dollar and stronger euro. There was conversations about what it would mean for tex porters here dealing with the devaluations move but here were looking at the euro at 113. Well below the levels earlier this week at 115 against the u. S. Dollar. Slightly higher today in u. S. Trade. Sterling will be interesting to watch once we get the u. K. Gdp number expected to come in at 0. 7 quarter over quarter. Big market show and coming up on worldwide exchange, speaking of retail, hermes is still on trend. Stay tune to find out how the signature birkin bag is shrugging off the china slow down. That story coming up. Oil fails to hold on to gains after hosting its best day in six years. Sentiment turning sour despite a rally state side and in asia. Blame it on the fed. The u. S. Central bank is at fault for the market sell off. Stocks across asia meanwhile close sharply in the green. But china fears keep investors cautious on luxury stocks. This despite solid Sales Performance from ferragamo, jimmy choo and hermes. Bigger isnt better. Havas delivers a Strong Performance in the Second Quarter. The ceo says hes not interested in chasing scale. When youre living in a changing world, the species that survives are not the biggest. They are the fastest. And i believe our role as havas as a global company, we need to lead the way of the change of how we can be more nimble. All right. We just got the u. K. Second quarter growth estimate which came in at 0. 7 quarter over quarter and up 2. 6 year over year. Boosted by trade and business investment. In fact, it boosted gdp by 1 on the quarter. We also saw a jump in u. K. Exports. In line with expectations here. Obviously in line with expectations and unrevised from the provisional estimate. For me its taking apart the press release and looking at the data throughout our systems and see whats driving recovery because you have a lot more information about what is driving recovery but obviously net exports investments is the positive story, particularly given the weak world trade. I also should add the german break down of gdp, exports there are strong. I wonder how much theyre going to be the rest of the year. It may be partly europe beginning to recover and trade murlt plyiers inside the euro zone and more generally beginning to take over. Were seeing an underlying recovery in britain. The retail sales number is higher. The positive retail trading backdrop encouraged shops to hire more which is always a good sign for the labor market in the u. K. Partly down to the weakness of the oil price and low inflation prints in the uk. It was all about labor market before and unemployment growth and now real wages picked up. Thats what driving in a sense. I love it and its related to Business Services. So thats probably what is powering the uk still. When you take a look at Global Growth, u. K. Here seeing a pretty good story here with 0. 7 quarter over quarter. I want to get our audience up to speed with comments coming from the bank of china. The Global Economy will be confronted with risk in the second half of 2015. Both developed and emerging companies are expected to grow at a higher rate. In the first half of 2015 the groups Net Interest Margin decreased to 2. 18 but the main headline here is that chinas economy is expected to grow in a stable manner according to the bank of china and the Global Economy will be confronted with growing risks and uncertainty in the course of recovery. No breaking news but interesting to see bank of china playing such a proactive role as we see this market turmoil this week. The chinese authorities themselves are concerned about whats happening in china, trying get the currency down and so forth and were moving to a fed exit which is an issue to Financial Markets more so than real economies but china has to cope with slow down and rebalancing. Theres a belief that they would be able to eliminate any economic challenges that china was facing but it seems like investors and citizens wer bst s t svi chinese growth because the data is not that clear. Theres not that much data to work through but at the end of the day china is slowing but still going to grow considerably faster than the u. S. And the u. K. Its going to be providing some momentum to Global Growth. But just less. It goes to show how quickly the story can change. A 2day rally in the u. S. But on friday a lower open. Now down almost triple digits in premarket trade. S p 500 lower than 13 points. European markets also taking a leg lower so keeping those factors in mind were looking at premarket trade suggesting a negative open on wall street. Well leave it there. Thank you for joining us and discussing Global Markets. Now our attention turns to japan. Japans finance minister says e despite gloomy growth data hes not considering stimulus. Household spending unexpectedly declined 0. 2 against expectations for a rise. Lets also talk about mitsubishi. Theyre making a big move to expand its presence in the food sector. Live from tokyo is the full story. Hi, Mitsubishi Corporation is set to get 20 stake in olam international. Theyll be spending 1 billion on the deal. Its the Third Largest coffee bane trader and second largest almond producer and operates in 65 countries and customers include nestle. It hopes to link the Global Distribution and Sales Network to control everything from production to sales and the focus is on asia and africa where a fast growing population offers many opportunities for food related businesses. Now major japanese trading houses have been heavily dependent on resource trading but many of them are putting more emphasis on food and in recent years they required the u. S. Grain trader and invested in a brazilian grain producer. Thats all. Back to you. Thank you so much. Lets move on now. I want to bring your attention back to oil prices continuing to move lower here. Oil prices, if you take a look at brent at 47, right around that level. Trading lower in todays trade. Wti crude above 40 barrel but still lower in todays trade by around 1. 4 . The news out of china continues and margin requirements will rise to 30 of contract values from 20 . Thats starting on august 31st. The chinese Securities Regulator also says that chinas financial future exchange to further raise requirements for nonhedging contracts. So regulators there taking more action in china. Earnings still a big part of the story here. Italys farerragamo met profits thanks to a weakening euro. The ceo said conditions in china could improve once the currency and stock markets stabilize. Jimmy choo sales rose the in the first three months of the years. It was optimistic on china saying greater exposure to asia should be beneficial Going Forward. Down 2. 3 . Hermes saw a 20 rise in first half income as expected. Tourist demand from the likes of japan and the United States were the main driver but still down 1. 5 so lets get the full story from stefan. Hes been speaking about the volatility in china. Absolutely. Thats a key question for the luxury sector. This morning hermes says its operating profit was up 20 on the first half of the year. In japan, United States and europe the results are in line with the expectations. The company confirmed that its sales growth of target of 8 for the whole year was still the main target but the full year operating market would decline this year because of the Exchange Rates. Market reaction, the stock is trading lower despite some positive comments. Hermes is the best stock in the luxury sector but the slow down of the chinese economy could impact the luxury sector. Speaking on this, the French Economy minister says its too early to evaluate the presize impact of the chinese slow down on the rest of the world. We have to be extremely careful at this stage for sure, we will have the slow down regarding the chinese growth and some impact of the Global Growth but first theyre reacting extremely efficiently. So we have to remain extremely careful. Extremely quite. And i do believe that regarding the european, especially the french growth impact is extremely limited at this stage. But its too early to have definitive judgment. We have to wait a little bit. A lot of people yesterday at the closing conference very close to paris and very strong probusiness message to french auto finance. Thank you so much. We just got breaking news. The Chinese Central Bank says Interest Rates for 7day loan operations will be at 2. 35 . The Chinese Central Bank injecting 60 billion yuan via shortterm lending operations. More moves taken by the central bank of china to stimulate the economy. We have been playing a very proactive role as this market turbulence plays out. Injecting more money via shortterm lending operations to improve the lending environment in china. European markets, we have come off the lows of the day. Initially we were higher and oil prices moved lower. European stocks move in tandem and now were off session lows but still in negative territory across the board. Xetra dax at 10245 down 70 points so well keep a close eye on european markets as we approach the end of the week which has been a very interesting week hasnt it . I think stefan is still with us. Back to france, havas says strong growth in north america as well as europe helped lift like for like sales by 5. 5 in the Second Quarter. The company benefitted from the weaker euro. Speaking exclusively to cnbc the ceo says he is not interested in chasing scale. When you are living in a changing world, the species that survives are not the biggest. They are the fastest and i believe our role as a Global Economy with which size that allows others to adapt we need to lead the way of the change of how we can be more nimble. All right. Moving on, ukraine reached a deal with International Bond holders resulting in a 20 debt hair cut. Michelle filed this report having spoken to the countrys finance minister. Listen in. Ukrainian debt rallying sharply today in the wake of a big announcement coming from ukraine that they finally reached a structuring agreement with the international creditors. The hair cut, 20 on the face value of the debt. Thats better than the 40 offered to the creditors. Thats going to give ukraine debt relief of nearly 4 billion. Natalie told cnbc thats an enormous amount when it comes to ukraines budgetary needs. Im extremely thrilled that we were able to reach such a good agreement i thinks historic to get this Debt Reduction with no default. Its practically the same as what we had prior to this on an average basis. Much lower than the last debt we were issuing even before the annexation and economic crcrisi. Im happy we can move forward and rebuild the economy and our creditors and partners aligned to try and restart and rebuild the economy. Is russia going to participate . Ukraine owes russia 3 billion. That is due in september. However that bond is included in this agreement. Whats not known is whether or not russia is going to hand those bonds back in as part of the exchange. Its not known if they still hold them because they are tradeable. That will be a key issue as we approach the key dates for this restructuring in october. Just want to bring your attention back to the story out of china. The China Central bank injected 60 billion yuan via shortterm lending operations. They have been held at 2. 35 . European stocks have come off the lows for the day. Joining us to discuss is the chief em strategist at commerce bank. China central bank stepping up to the plate and injecteding more money. What does this mean for the investor at home trying to make sense of the chinese story . Were going to have this breaking news all the time in the next 2, 3, or 4 weeks until we see some sort of a stabilization and the market finding a new Exchange Rate versus the dollar or the euro. At the moment, the central bank is pumping liquidity into the market. On the other hand its intervening to prevent a depreciation. You cant do both of those things forever. So one has to give and that will essentially mean that the cny will give some more room in the next several weeks. What does this mean for the consumer in china using these Financial Instruments . Shortterm liquidity operation . What does it mean for the consumer Going Forward . What were seeing is the chinese authorities opening up the Capital Markets. So the most important part is for the corporate universe more than the consumer. Also for the regionals. Transferring their debt into bonds and these things going on. What the central bank needs to focus on is getting that liquidity to the corporate sector. Because at the moment, the corporates are not really the private sector is not getting the money from the banks. The central bank of china played a very proactive role this week. Every day we heard from them. This is the new normal given the situation that china is in . If we look ahead into the next several months we have to wake up and we have woken up massively in august that emerging markets are a huge part of the Global Economy now. China is the second largest gdp country by nominal gdp data so this means that Chinese Central BankMonetary Policy is just as important as the feds Monetary Policy now as we move ahead in the next several weeks and one final thing is at the moment, this has gone unperceived emerging markets are expecting much more than 50 , more than half of their exports go to emerging markets. This is a big change compared to 10 or 20 years ago. Thats a very interesting stat. The question is given the series of steps when does it feed through into the real economy and if were expecting that turn around should an investor try to get exposure to some countries that have high exposure to china given the drop in valuations weve been seeing . You know, the answer to your question is nobody knows. Nobody knows why because we never faced this situation before in such a huge economy. Open up Capital Markets. The Central Bank Policy usually takes about 3, 4, 5 months. In the case of china we dont know. Maybe this will take 6 to 12 months until it passes through because whats happening now is Chinese People as the Capital Markets open are putting more money abroad. So the central bank has to deal with that. That means a weakening as we move through in the next several months and means a weakening for the economy of those most exposed to china. Another emerging market is turkey that weve been focussing on. In fact were just learning from reuters that turkeys Prime Minister will present an interim capital today. What do you make of the turkey situation . Well, actually turkish assets would be out performing everybody else. Oil prices have come down massively and the direction should be on the downside still in the oil prices on the shortterm. The political situation we have all been exposed to political noise in turkey for a decade now. This is one thing that we should observe is that in the last two to three years turkey has been taking on millions of refugees as has jordan and lebanon from syria and now were seeing many of these moving from the euro zone and european union. Us not being able to deal with the situation and there we should be encouraged by that given that it shows that turkey can really deal with difficult situations and has also been supporting its neighbors in the past years. Im curious to see how this migrant picture changes the longterm Employment Situation in many of these countries. Simon, were going to leave that conversation for the next time. Thank you for joining us. Coming up on worldwide exchange, they announce the latest round of funding and well talk about the future of fintech as us. Futures are pointing to a lower open. Were back in two. S p lower by 14. All of these major indices are officially out of correction territory. Of course todays trading action could change the cease fire. All s p sectors though finishing positive for the second day in a row yesterday. Energy, the biggest winner up nearly 5 . The sector moving on the back of a huge leap in the oil price. Tech is now the leading sector year to date up nearly 3 and its bolstered by semiequipment. They power mobile devices and desktops with their chips. Health care financials and tech are all out of correction territory but lets talk more about tech and the innovations were seeing there. Sweden izettle announced defunding bringing the total investment to 60 million. Its lead by intel capital and will be used to roll out its new initiative called izettle advance. This enables them to get an advance on future card sales to enable cash flow and is the First Initiative of its kind in europe. Stewart, a pleasure to have you on the show. Thank you. Before we learn about this latest funding round help our audience understand what izettle does. We have Small Businesses accept credit and debit card payments. We spent the last five years where in our opinion these businesses havent been served in the past. Theyre too small, too diverse and too focused on other things to live with the pressures and the processes that the traditional suppliers such as banks forced them to replace. We tried to make the Service Really simple and really easy to use. Free to get going. A free card reader from spring last year to our customers to enable them to get going and see that payments can really help their business prospect. You raised 60 million euros. We have three major uses for it. Expanding the business where we already are which is an extremely strong position as leaders in europe and latin america. To grow our business and also to start launching more services such as izettle advance. Small businesses have many demands to overcome. One of them being getting cash for their business and izettle advance gives them the option to bring funding into their p business for working use. What do you make of the funding environment right now . Was it easy to raise funds from . I wouldnt say its been easy but our investors see the value that were bringing and see the performances we have been delivering to them over the last few years so certainly i think at the moment, fintech payments is a very hot space for the marketplace and if you continue to show growth weve been delivering its a lot easier than some other spaces. Thank you for joining us at worldwide exchange. Cfo at izettle. European stocks trading in negative territory after rallying overnight. We did see a strong out performance in u. S. Equities following news that Gross Domestic Product expanded by 3. 7 between the months of april and june. Stronger growth in the u. K. Raising questions as to whether the u. S. Economy can survive or with stand the slow down in china but some higher risk sentiment here as the peoples bank of china steps up with more liquidity. Stoxx europe 600 up. Coming up, we hear from the chairman of Charter Communications coming up on worldwide exchange. All right. We have a big market day on our hands. Welcome youre watching the second hour of worldwide exchange. Lets get you caught up on the headlines. China pumps more liquidity into money markets. This as one beijing official blames the fed for the recent market sell off. Oil begins to reverse yesterdays obstetrical letter gain which saw wti reach highs not seen since march of 2009. Digging in, investor carl icahn snaps up a stake