We have this while day in china, down 8. 5 . It sparked the selloff across the world. We are continuing to see extended those losses today, down about one third of a percent. Spot iszealand dollar slightly gaining but we continue to see pressure on these commodities currencies. There are some forecasting that it could drop as much as 55 u. S. Cents. We are counting down to the opening in australia, japan and korea. Less than one hour away for japan, it looks like we will continue to see this selloff today. 25 closing 1 yesterday in tokyo. Futures in chicago looking to another lower open today. The dollar yen is weakening right now. Only one story the chaos in china. The composite plunged 8. 5 yesterday while shenzhen fell 7 . It was shanghais biggest oneday slump since february 2007 and it triggered a worldwide selloff. Lets bring in david. We have seen it in the europe and u. S. This is not looking good. David stock market turbulence provides intervention. You look at similar headlines. The effect was felt that just about across the world. Europe started to sell off and then we had what happened in wall street. Lets have a look at where we are. That is the today chart two day chart. You have some indication on friday that perhaps they are pulling back support, just to see if they would run without training wheels. That was a 3. 5 drop. A horrible session in the afternoon yesterday. 8. 5 of the worst days since 2007. Before that was the worst day since 1996. Theday before leader died. They had the selloff. Did china withdraw support . , youu are on the ground look at the heaviest weighted and a second heaviest and then you look at the etf. This is what state backed funds started buying into. What we saw was when petrochina falls by that much, people get scared because where is the money going . Yvonne the industrial processing is coming in. The numbers were a big miss. It is contributing. David it is the perfect storm really. Two other charts 30 day historical volatility. Have markets come down . Not really. We go back to 2005 here. That is a 17 year high for this gauge. That is the trouble during the Global Financial crisis. Next chart, money market rates. Is there liquidity in the system to support the market . Twomonthve at chart here. The overnight repo raiate. There was a bit of come down late may and then that is when all the craziness happened in the first of july and then it came back down when beijing stepped in. Basically, were back to levels of early may. To latewe are back june, early july here. Yvonne what do we expect today . David i dont know. It is almost impossible to figure out what is happening. The fact of the matter is it certainly does not operate like a market. The only force that matters is what regulators do on the day of. You look at features like this he can only tell you so much. A better indicator is when markets open up in china. To some extent, it also has a forwardlooking indicator. Sometimes splitsecond ahead before it filters through into the index. Very quickly, analysts in shanghai said the state will start buying back the shanghai composite falling below 3800. Lo and behold, we are below 3800. Yvonne we will see how things go. Thank you so much. Set shockwaves across the world. Lets go to juliet. Julliet europe was waking up just this china was closing in all the selling was coming in. Everyone in europe was saying what is going on . We saw the selloff continue. In fact, the biggest 2015 five they drop in the stoxx 600 is down 5. 5 . You can see your basically follows with a lot of selling coming through. The american markets opened up and instead of focusing on the earnings and the start of the fed policy meeting, everybody is looking to the continued payoffs in china. We saw nine out of the 10 sectors in the dow jones close into the red. Worries that this slowdown in china could start to impact on a lot of those Auto Companies under pressure. Energy companies under a lot of pressure as well as they continue to see this selloff in crude oil. Look at the u. S. Index down for. 2 in the u. S. Into the asian index. We certainly continue to see a lot of that selling. U. S. Stocks posting their longest losing streak since january. Continuing on that selloff from the last of from last week. 1. 5 to its down by worst week in six months. A little bit of positive news in the pharmaceutical industry following some m a activity. Ingna is really weigh into the u. S. Region. The nasdaq closing down by almost 1 . The s p 500 was down by. 5 . Of course, this is really impacting on to currency markets as well. If we look at the japanese yen, what it did during the session yesterday, it is now down by about. 5 . Moving a little higher at the moment. The euro also was quite in focus due to the selloff. The euro moved higher against the u. S. Dollar but it is pretty flat at the moment. Of course, the Australian Dollar is very much a commoditybased currency. The aussie had quite a big fall, falling from below levels of 73. Yvonne . Yvonne thanks. We will get more on the top stories on our digital destination. Bloomberg business brings the best of bloomberg news, business week, television and new Digital Content at one address. Also on bloomberg. Com, the countdown to a rate hike. Why the fed is on track. Plus, 32,000 . No worries. A three room suite in the sky. It is super popular right now. That is bloomberg. Com. Checking other stories and headlines crude losing more than 20 from a high inmate. May. As overproduction boosts the blut of oil. It is pumping the fastest rate since three decades and it is also producing at record levels. Exports from southern iraq rose to an alltime high this month. The selloff in china hit copper again. Prices fell 1. 5 overnight and now trading at a sixyear low. Investors are worried the slowdown in the mainland will weaken demand. China accounts for nearly 40 of global copper consumption. Gold maybe be losing its attraction for its biggest buyer. China imported 70 less gold from hong kong in june than the previous month. Purchases are now at their lowest in a most oneyear and forcing switzerland to fall. Gold has fallen almost 8 in the past two months. Stock markets may have heard demand that buyers may be anticipating further price decline. Lets go to earnings because chinas Search Engine baidu is falling and extended trade. We have more on this. They are seeing profit growth, but what went wrong . Guest they are trying to transform from a company that targeted personal computer users to one that is trying to capture all the mobile users. We know that is a challenge. They are rolling out new products in their product catalog. They are trying to engage advertisers but it takes times and that is why the earnings are falling somewhat short. We have an earnings per adf coming in at 1. 81 a share. One dollars 88 was the average estimate. Falling short on that and the revenue forecast missing estimates. The forecast for revenue is 2. 93 billion. That trailed estimates of 3 billion. You see the big drop in the shares. After hours down about 6 . At one point, down nearly 10 . Baidu is the biggest web Search Engine in china, but the ceo is a very clever guy. This company taking time to transform into the mobile internet search provider of the future and that means lots of ancillary businesses. Yvonne you talk about the investment side of this baidu and its rivals have spent a lot of money when it comes to these taxi hailing apps and now it seems like they may be investing in uber. Zeb they made an initial investment in uber, but as it formalizes its china division, baidu is said to be seeking a stake in that. We dont know the dollar amount, but this is a competitive market and it makes sense you have the biggest web companies, Internet Companies in china backing the webbased taxi hailing applications. Alibaba areieke backing another service. You have baidu backing uber. Huge competition in this market, billions of dollars at stake and whbaidu sees opportunity. It seems more to come on this. The company and uber not specifying numbers. Exactly a terrible situation for baidu. Yvonne thank you. Coming up next, closer look at the global selloff and opportunities. We will have that when we return. Yvonne checking some stories making headlines greece talks stocks as the shutdown of the Financial System enters its fifth week. Officials from the ecb and the imf are in athens to hammer out reforms needed for a third bailout. Prime minister Alexis Tsipras told Party Members debt relief is being openly discuss, although it is not in the formal agenda. Restructuring will be necessary in greece. Horsesurity forces remain on alert after 10 people were killed on an attack in a police station. Officials are blaming pakistani militants. The most serious on indian soil since the Prime Minister came to power. Pakistans Foreign Ministry condemns the attack which could derail attempts to restart peace talks. The filipino president delivered his last budget speech, highlighting investments under his of administration leaving his annual state of the nation address. He says the campaign against corruption has transformed the philippines and put it onto what he calls the straight path. The philippine economy has grown more than 6 since 2012 and Credit Ratings have risen. The slump in chinas markets has been felt worldwide. U. S. Stocks had heavy exposure to the country were driven lower. Apple fell 1. 4 falling its worst week in six months. Alibaba in the red, down around 2 . The dollar also took a hit, four offor all buy y its 16 counterparts. Marking its longest run of losses since january. Wilbank. Ng in wayne he joins us from virginia. Thank you for joining us. The big story is china. We saw the reaction in the u. S. And now we are seeing the longest losing streak this year for u. S. Equities. If commodities do not find a bottom, what could happen to u. S. Shares . Are we expecting a correction or a bear market . Wayne it is interesting. If you look at the math, we only had a 4 correction in the u. S. Back in september, people forget we had a 9. 9 correction. Almost a 10 correction which lasted 30 days and we came roaring back. Upexpect the markets held well given what is going on in greece, china. So far, this is not even a normal correction. We fully expect we will get to 10 corrections. We have been waiting 1400 days for that. It would just be normal behavior for the market. Yvonne we saw what happened overnight in china. The worst secondworst drop in history. Are you surprised to see the u. S. Shares that look as bad as some of the other markets around the world . Ne you have this ongoing we saw a little bit of weakness in the dollar today. If you look at the dollar over the last 90 days, continues to be strong around the world. Many times, there will be struggle overseas, we come back to the u. S. A lot of the damage on corporate profits has been related to those commodity material stocks you talked about earlier. You are seeing strength at of health care, retail, technologies. So far, u. S. Is hanging in there very well. Yvonne some have argued that because of this bull run we have seen in retail and health care, it is reminiscent of what we saw in maybe 20072008. We are seeing the industrials should we be worried . Wayne we think there are some cracks in the armor here which is why we are continuing to prepare our investors to see what they are going to see for the rest of the year. The s p is flat. A lotta volatility going nowhere. We think this narrow market with facebook, apple, netflix the other market is not doing that well in terms of corporate profits. 5 down yearoveryear for the quarter. This is a canary in the coal mine saying investors, be ready for a corrections of 10 to 15 . Not enough to change the overall outlook, but maybe there is trouble ahead. Yvonne i guess the trouble we have seen in china as well as the commodities route. The last time you were on the show, you mentioned it was really hard to ride the wave of commodities. This plunge we saw in the shanghai composite, is it just a breather or should we be more worried . Wayne we would be very concerned about the china market. If you look at the data from electrical usage to all sorts of numbers and data coming out that do not match up with the 7 published growth rate by the government. It is really hard to get real data out of china, but we know it is probably not going corporate profits are starting to disappoint. You saw that news in the last 48 hours. These big critical thinkers have gone negative in china in the last 30 days. We would be very concerned and cautious buying these falling stocks right now. Yvonne continue to be bearish on china. Where are you seeing bullish sentiment . Wayne there is still opportunity on the yield sides. Things like preferred stocks that pay 6 yield, shortterm highyield. Highquality u. S. Stocks. The ones that are attractively priced though. Microsoft looks good. I would be very careful with amazon. It jumped 20 . The core u. S. Companies are still ok priced right now. You just have to deal with being careful with what you are buying. Yvonne all right, wayne wilbanks. We appreciate your insight. Next, modernday slavery a new report suggests countries are making progress, but there are doubts. We will take a closer look after this short break. Stay with us. President isurkish in china this week for a meeting with political and business leaders. Analysts say it will be a chance for him to raise the status as an influential regional figure. We take a look at what is on his agenda. Reporter the present will be looking for help to kickstart the turkish economy and strengthen political ties. He will ask for more investments when industrial and commercial bank of china will take the bank for about 250 million. The two nations are in talks about a fed system deal. A large trade deficit with beijing and expects balance trade with the worlds secondlargest economy, but it wants the narrow the gap. Erdogan is hoping to attract more affluent Chinese Tourists to turkey. He wants china to ease its regime to make it easier for turkish businessmen and tourists. He also conveyed turkeys concerns over the human rights of muslim People Living in china. Protests you rub it in turkey amid reports they had been banned from fasting during the holy month of ramadan. Claims beijing denies. Relations have been strained because of this. The topic of turkey joining the shanghai five made,. Y come up. Whenever the president gets angry with the european union, he frequently threatens the joined the shanghai cooperation organization. So far, he has not followed through. As turkey prepares to host the g20 summit, it will be interesting to see what comes out of the striis trip to china. Yvonne the u. S. Has given malaysia, cuba and saudi arabia an upgrade in its annual report on modern slavery. It sparked a debate on whether the rankings are swayed by political affiliations. Lets go to our political correspondent. Why the criticism here . Reporter take the case of malaysia. They were cited as forced labor for years. Andd sex trafficking bondage has been a huge problem in the country. This upgrade in ranking has caused some to ask why now . Malaysia is part of the Transpacific Partnership negotiations. Its contingent on an upgrade in the ranking as president obama wants malaysia. Thailand is not part of trade negotiations. It had a similar Human Trafficking issue. A longstanding record the lowest. Thailand was not upgraded. The question is the upgrade was allegedly motivated politically motivated . Saudi arabia, the u. S. Is trying to reassure its ally after the nuclear deal. The skepticism is whether it the three really deserve the upgrade based on their own record. Has. E thank you, returning tot, what their market. Return. Be live when we yvonne taking a live look from the icc building this morning. We are 30 minutes away from the opening of trading in australia, japan and korea. You are watching first up. The top story chinas market regulators say it will continue to stabilize the market after the biggest oneday fall in more than eight years. The shanghai composite closed 8. 5 afterfter general calm. Csrc insured investors that they have not garnered support from the market. Returned to a bear market after losing more than 20 since may. Prices fell 3 on monday as overproduction boost the global glut of oil. The u. S. Is pumping near its fastest rate in three decades and leading opec members are also producing at record levels. Rose toin southern iraq an alltime high this month. Baidu shares fell strongly after secondquarter earnings missed estimates. Net income rose 3. 3 in the Second Quarter and sales were up 38 . The founder has been spending more to expand its mobile services and online to offline businesses. Lets check in on markets in asia. Response to this global selloff after china falling 8. 5 yesterday. New zealand continues to see losses, down about one third of a percent. We are talking about the opening of australia, japan and korea coming up in a half hour. Japan signaling we could be singing continuing losses this tuesday morning. The 225 closing down close to 1 on monday. Chicago futures pointing to another lower open today. 123. 27. Ar yen is it was near the 124 line. Following the collapse in chinese share prices, the focus quickly turned so the countries regulators who say there is nothing to worry about. Lets go to david with more. Nothing to worry about . David they put out a statement shortly after the market closed. Essentially what they are trying to say is they are still in the market. They responded in two ways. Wecourse, when china opens will see whether it is or not lip service. They stopped market support, despite most indications that they pulled their punches. The china Security Finance is still in the market and it will increase at the appropriate time. Im reading from a statement here. Based on a very short statement we get this on the screen. They will continue efforts to stabilize the market and prevent systemic risk. Theyecond part of how responded they were not ruling out the possibility that they were up to no good. They will be investigating and they will be punished. If they tested the waters, can they run without its training wheels, it obviously cannot looking at the collapse yesterday. Analysts are expecting them to step in today. It will put the market above 3800. Yvonne talking about the imf they have talked about some of the interventions. Urge the imf said to china to withdraw measures. Thingsrstand why these are needed in the first place to prevent what they call a wipeout, major disorder. Prices should be allowed to settle through Market Forces