Low. Investors now down about 18 from the ipo price and its not just uber and this is definitely not music to investors ears, shares of chinese streaming giant ten cent are down sharply well tell you why onthon tuesday, august 13th as Worldwide Exchange begins now. Get along down the road weve got a long, long way to go scared to live scared to die we aint perfect but we try good morning, or good afternoon or wherever in the world you might be watching. Thank you for joining us here on Worldwide Exchange between the continued protests in hong kong and sharp drops for bigname stocks, it could be another busy day in the Global Financial markets and for your money. After yesterdays nearly 400 point drop for the dow, futures are trying to stay steady. Theyre flat across the board. But remember, this time yesterday we really had a similar situation and we had some of the headlines coming out about the hong kong airport closing, futures dropped, markets weakeneding down nearly 400. Stocks air big story but bonds perhaps the bigger global story, not just here but around the world yields continuing to fall. Theyre up a little bit right now. Were at 1. 65 and, again, this gap here between this 1. 58 and 1. 65, thats the yield curve if this goes above that, that, some people say, is a big warning sign we are getting close right now we are just what they call seven basis points, basically seven little one hundredth dollars of o that inversion and China Central bank setting down official midpoint for its currency, weaker than 71 to the dollar for the forth straight session. Course all of that happening as protests continue in hong kong and thats rattled the asian markets, particularly hang seng, one of the most important markets not only in asia but in the world, down another 2 , solidly negative on the year the nikkei and japan gets hit along with the carnage down 1 shanghai held up a little bit better, but the hong kong hang seng the index to watch. The european markets maybe more reacting to us theyre down, yes, but maybe. 2,. 3 right now not big losses outside of stocks, again, we are seeing oil up just fractionally but still at 55 bucks. We have hellema kroft coming on. And gold, reigns around the world. Gold one of the topperforming Asset Classes of the year. Up nearly 20 in just 90 days and up again today to 1535 the real question is this about the you watch cnbc every day, you hear us talk about so many Different Things what are the key things weighing on the markets and your money right now . Lets talk about it. Youve obviously got now the protests in hong kong. Theyve been going on for months and theyre getting worse, in fact, the airport now open, but closed yesterday and we expect more closures or at least protests coming up. Youve got the trade war, which continues outside of the protests so that has strained u. S. china relationships the european banks, doix bank, commerce bank, credit of italy, their shares are at or near multiyear or alltime lows a lot of attorney about the health of the major u. S. Banks dont forget about the clock ticking on brexit. We havent talked about it a lot lately because of Everything Else going on. But brexit, were pointing to october, we have Boris Johnson at prime minister, brexit is still a major global story and last but not least, stock valuations you look at the just the valuation of our market with recent declines Going Forward and some people say well, these valuations may be a peak you heard them talk about at the top of the show yesterday. The market cap of our markets to gdp is at the same ratio, about 140 gdp as it was in 2007 and as it was in 1999. So valuations just generally do remain a concern lets now talk about all of this joining us once again, jeff h, theres probably four or five more things i could have put on there, bond yields, we only have so much room on that wall, but it shows how many things are outstanding right now to you either on our wall or Something Else what is your main number one concern right now . I think its the trade war. I mean, hong kong i dont think is impacting the markets directly as much this trade war is what the fed has said is the reason that they cut rates. Powell says trade uncertainty, trump wants more rate cuts, he gives them more trade uncertainty. Im more concerned about the trade war than hong kong per se right now. Listen, again, on that wall we could have put fed concerns, has the fed screwed it up . Are they miscommunicating or mismanging this. Clearly miscommunicating. Is if fair so say the trade war and the fed are kind of one in the same right now . Oh, yeah. I think so i mean, thats because theyve got to react. Theyve got to Pay Attention to that. The fed chairman himself was the one that said easy thats the things that were creating the uncertainty for them and their job is to manage inflation, one of their jobs and if the tariffs kick in on september 1st on the consumer goods, inflation is likely to rise so theyve got to react not only sort of psychologically, but to their edict about after years of trying to get inflation to rise, now its going to rise a little bit and theyre going to get all crazy and start cutting. I mean, its probably going to happen i dont necessarily think that we need to have a lower rate situation right now. And i think that the feds has a communication problem. But the thing that were look at also is this recession risk, the fear of the yield curving version. The research we did showed that not really until the fed funds rate kicks up above the 30 year that youve got that clear recession rate everyone started jumping the gun here a little bit and making headlines and talking about this twoyear, tenyear. I hate to use the term basis points at 5 07 in the morning. Its a bit much. Were talking about 1 , these little blips but we are now just seven, i said it, basis points away interest that inversion on 2. 10. Not that its a great its not a hands down recession coming thats the big debate right now, which is is the bond market flashing that big recession signal or do our yields keep falling because our bonds keep getting bought because nobody around the world is getting any yield anywhere else . I think thats more the case than the recession the bond market, were the place to be right now. Weve got to come down to the rest of the Major Economies in the world. I think thats whats happening. And the pressure from the white house is not something to, you know, scoff at its not necessarily verbal stuff. Hes going to do things that are going create stuff that he wants. Its a classic electioncycle behavior were talking about how the government manipulates to say in power in the is an incumbent president to get reelected and it drives things. There is a school of thought, i dont know if youre in that classroom or not, is we could get some kind of favorable end to the trade fight early next year right around the time things are heating up. But i think the reason i bring it up is not politically, theres a big sort of in the market, still because remember, were still up what . 15 to 17 on most of the major averages this year. Yes. We need to put it in context that theres a bid putting a floor into the markets because people sort of quietly expect this favorable outcome for political reasons. A sneak preview in the 2020 alma knack, sitting president s running for election versus all election years versus open fields no sitting president. Sitting years without somebody running 10 . All election years 5 . And minus 1. 6 for open field elections. So there is something to the power of incumbency there. Sitting president s going into reelection running for reelection. Running for reelection tend to historically, this is what you guys do better than anybody else, i hate to use goose the market prime the pump. They do better . Yeah. Because a lot of maybe promises were seeing the democrats promise a lot. Trump may come out and start promising a lot . Youve got a psychological situation where, you know, theres somebody getting reelect and theres a lot of drive to make that happen. And thats what does it. It is august too were look at a seasonally weak period everyones talking about it now. We came in prepared for this. Yeah. Weve been Market Neutral since midjuly theres a couple of short days in there and its set up pretty well the whole years been tracking seasonally quite closely and i think it continues which means good things for the end of the zbleer you still remain optimistic toward equities at the end of the year . Look at the end of the seasonal patterns, its almost to a t to me that tells me its going to keep track of the seasonal patterns. A lot of our viewers and listeners are hoping youre right. Were down 3 this month on the dow. But theyre saying this is a month to forget. Worst month since 88. First Probabilities Fund management, thank you. And of course the Stock Traders alma knack. We mentioned investor nervousness about the situation in hong kong what right now is the situation in hong kong is the airport reopened . Where are the protests lets join now nbcs matt bradley with more. Matt. Reporter hey, brian, you know, its looking a little grimmer and grimmer as the day goes on here as you can see, theres tons of youthful protesters who are now not in the arrivals hall but in the departures hall. Theyre blocking people from checking into their flights. And behind them are all of these luggage trolleys theyre using this to try to keep people from just checking in and this is exactly what caused the problem yesterday when they fully shutdown the airport and canceled hundreds and hundreds of flights now, there are still people checking in, as you mentioned the airport is open. But it doesnt seem like its going to stay open might actually shut down because weve been hearing on social media that protesters are asking that people who get off work later in the day, its only 5 00, that they come straight to the airport and participant in this massive act of obstruction. Now, what would that do . Closing one of the worlds busiest airports for the second day in a row, it would be unprecedented and it could really cause knock down effects for the economy of hong kong every flight thats canceled, every passenger who doesnt come here, that also means a hotel stay, a restaurant order, a taxi fare its a very, very complicated situation and one that could really start to work dense the protesters the protesters say that this is worth it, theyre willing to pay the price if hong kongs economy goes downhill. But a lot of the older folks here, the ones who are working and providing, they might not agree and their patience might start to be wearing thin brian. Are flights currently arriving into hong kong airport . Reporter yeah. Were seeing planes landing and passengers getting off and coming through immigration but, you know, its hard to see how that continues these people in both the departures and the arrivals concourse, if more comes out and theres thousands and thousands more than the thousands and thousands that are already here, they could do the same kind of obstructive action they did yesterday and shut down the whole airport all over again brian. So, matt, obviously hong kong a lot more than just an airport, its probably the leading Financial Center of asia, one of the leading Financial Centers of the world, trillions of dollars of business goes through there every year whats the situation in what they call central and mid levels and causeway bay are people work something are the Financial Markets functioning there right now . Reporter yeah, the Financial Markets are functioning but theyre reeling from this. You know, the hang seng has been dipping. Its a very, very bad situation financially. And carrie lam, shes the chief executive here she came out and she said this is really causing a damage for the hong kong economy. She was pleading with the protesters all week and she had some of her financial people coming out and saying the same thing. Now, were getting pushed around here because a lot of these arriving passengers are very upset and theyre not theyre not waiting for us and theyre not waiting for the protests in the is kind of becoming a bit of a tinderbox. Excuse me. And this could set off at any minute there are no police here, brian. Its not a problem yet but there are police behind security and if the passengers start to scuffle more with the protesters, we could see some real props here in one of the busiest airports in the world. Biggest 202,000 passengers a day on average we appreciate it well see you all day on cnbc. Thank you very much. All right. Dramatic scenes there. When we come back, this mornings main stocks that you need to watch, including a new ceo. An whats the health or lack of commerce banking deutsch bark and eurocredit down 30 in the last year well tell you whats going on and why he that situation could spell big trouble for the Global Markets as well. It is a global wall of worry and you are watching Worldwide Exchange right here on cnbc. You should be mad that this is your daily commute. You should be mad at people who forget theyre in public. And you should be mad at simple things that are unnecessarily complicated. But youre not mad, because youre trading with e trade, which isnt complicated. Their app makes trading quick and simple so you can strike when the time is right. Dont get mad, get e trade and start trading today. Were pretty different. Were all unique in our own ways. Somos muy diferentes. Muy diferentes. vo verizon knows everyone in your family is different. There are so many of us doing so many Different Things. vo thats why verizon lets everyone mix and match different unlimited plans. Sebastians the gamer. Sebastian. This is my office. vo and now with more plans, everyone gets what they need without paying for things they dont. New plans start at just 35. The plan is so reasonable, they could stay on for the rest of their lives. Aww, did you get that on camera . Thanks, dad vo the network more people rely on gives you more. 5 fen seen it here on the east coast not just all about china and global macro concerns. There are some important and individual stock stories to Pay Attention to today involving streaming music, cook at home, and a big change at the top of the home of nacho fries. Well have a look at these stories. Good morning, brian lets start with fast food and yum brands the parent come of kfc, taco bell and pizza hut is promoting coo david gibbs to the top job gibbs has been with the company for 30 years creed has been ceo since 2015. You can see shares of yum brands this morning unchanged andlet stick wi and lets stick with food. This stock is up 6. 6 . This is the best day in seven months the Meal Kit Delivery service recording its quarterly profit since going public two years ago. And also the broader international markets. News comes just days after its rival blue apron posted weak results. And music is following sharply, the stock is down 3. 1 pes. The Chinese Media streaming service posting, brian, the slowest growth in average revenue per user since the ipo next year. Big stories there well see you in a few minutes still on deck, its not just china. Another country seeing its krunssy and markets take a massive hit yesterday. Should you add this to your global wall of worry plus, what is happening in europe rates there falling nearly every day. Well, the european banks, some of the biggest in the world damage our markets here . Analysis and insight with Larry Mcdonald coming up fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. Take prilosec otc and take control of heartburn. So you dont have to stash antacids here. Here. Or, here. Kick your antacid habit with prilosec otc. One pill a day, 24 hours, zero heartburn. Welcome back you can add yet another argumen to that wall of worry we showed you before yesterday was one of the single biggest declines in the history of Global Stock Markets ever the argentinian industrial jones collapsing 38 in one day. This after the president was dealt a major defeat in a primary election against leftist Alberto Fernandez whos running mate is former president and nationalist Christina Kirchner argentina stocks tanking on monday all of this comes with concern that if the leftist government takes control, argentina could once again default on its debt insurance on the debt showing a 75 chance that that could happen banks stocks around the world have been under pressure here and globally amid unsnernt argentina, hong kong, europe, the uk and here. All as bond yields fall. About a quarter of the worlds sovereign debt now has a negative yield this has been reflected the most in europe. European banking index, the stocks europe 600 is at its lowest level since 2016. Many of the big names that you know are at or close to alltime lows lets bring in Larry Mcdonald, editor of the Bear Traps Report and cnbc contributor with everything going on with the trade war and now with hong kong and maybe yesterday with argentina, larry, i feel like if that wasnt happening, european banks would probably be our top story every day. Well, you know, we have to look at the world over the last six years. Weve seen kind of marketfriendly, populous governments come into the fold argentinas a perfect example. And now youre seeing the transition over to the left wing where there are markethostile governments coming in. If thats a trend through latin america and now we have that risk in america itself, right, it wont be the same type of credit risk, but all you need for equities to have a real prob