Century. The original copy. Apple is talking to hollywood executives about creating its own shows in a bid to compete with netflix. This after announcing a tie up with cisco. Now it was the worst month for the s p since may of 2012. The dow since may 2010 and the biggest gain for the volatility index back to 1990 and as you can see that volatility may continue into september. Were now looking at the Dow Jones Industrial in premarket trade down nearly 400 points. A big move. The s p 500 down about 49 and the nasdaq down about 113. This as Oil Prices Continue to move lower after that big rally that we saw over the past three trading sessions. Want to point your attention to whats happening here in europe in the month of august. European stocks suffering the biggest loss since august 2010 and here in september were starting the month off on a down note. Were looking at the xetra dax seen as the power house down about 300 points. We got the disappointing data from asia. Telling economists that peoples bank of china will devalue their currency in the coming weeks. That is not good from the exporter. Thats one of the reasons were look agent the german index underperforming the european averages but significant moves with the french equity market down 2. 7 and the ftse 100 opening down by 10. 9 . All down about 3. 4 in todays trade. Lets look at commodities because oil prices kicked off september in similar fashion to european stocks but these declines here up just less than 4 . We need to put in perspective because the late end of august rally that we saw in oil prices was he enormous. Some 27 over the final three trading sessions in august for wti. So much so they ended in positive territory so yes were down sharply, down 3. 74 but it comes off of the back of the final three trading days of the month. Lets look at forex. It is a risk off day as we have shown you in oil markets and equity markets yet were seeing the euro and the yen rally. The yen up 1. 2 to 119. 7. Why is that . This risk off moment once again pushes back expectations of when well see a fed rate hike and clearly in the main Currency Pairs some people already priced that in. So were seeing the u. S. Dollar slip a little bit. Final look at bonds, despite that people are pushing back their expectations were still 1. 6 on the u. S. Ten year so we havent seen too much bond buying today on the back of this risk off sentiment. Wilf, china concerns weighing on asia market with the nikkei closing down almost 4 . Weak spending data adding to the negative sentiment in japan. The shanghai composite ending in the red after shedding 12. 5 in august. Overnight we saw the Manufacturing Sector shrink at the fastest rate in three years. It dropped to 49. 7 in august. The first sub50 reading since february and China Services sector posting a fall from july to 53. 4 and if you take a look at chinese and asian markets the big question is will we actually see a turnaround . A series of steps taken by the central bank to kick start the economy and bring back growth. But we havent seen it through to the real economy. This data suggesting that more pain to come. Absolutely. We do expect more easing but we already know that that easing is having less and less effect. I point to the lending number which is have been stagnant. Well see more cuts or we expect more cuts and as chief em economist told us this morning, the pboc is now running just to stand still and when things are slipping, when confidence is low, of course these cuts have much less effect and thats really the longer term problem china faces now. Theres also a wider question as to what else the central bank can do to stem the decline in the markets and help the economy. Do they have anything else left in their tool box . We have been seeing them use unconventional monetary easing but what else can they do . That will be interesting to see if they can continue to allow their currency to weaken. Not a good sign for the exporters. Perhaps a reason were seeing the big export stocks underperform in todays trade. The big unused tool they havent put into play over the last year or so is the fiscal policy side but their longterm aim is to shift the economy more from investment and statelead to consumer lead and thats a big negative for the longterm. So thats really the problem they face. They could cut rate hugely down to zero. But why do they want to stem more serious amounts of lend something and thats the longer term issue although the shorter term reaction to the stock market move perhaps needs to be highlighted that in the last 18 months it wasnt correlated to the economy so the fact that its coming down doesnt mean the market is going to come down with it. Reacting to the data verses the volatility. Exactly. The pboc tries to control the market swings from october 15th. Banks in china trading for clients will have to hold 20 in u. S. Dollar reserves. Shares in British Hedge Fund Man Group are trading lower. This following a report that the head of the china unit is being detained in beijing as part of a wider probe into the volatility. But according to the Financial Times her husband denied the claim saying she has not been taken into custody. Regardless man group shares down 5. 6 . Meanwhile a reporter for the local business magazine apologized on state television for his report which is he described as having caused panic and disorder. Chinas central bank is to set up a 10 billion Investment Fund in latin america. It will be invested in numerous areas including manufacturing, tech, agriculture and energy. I find thats kind of interesting. Theyre injecting more liquidity into their own economy and market. At the same time theyre looking for other Growth Opportunities outside of china. They continue their attempts to get their hands on various resources and Growth Markets and so they should of course. They have got reserves in those areas as well. Now moodys has released a report that says that most Chinese Companies can with stand a 10 weakening of the rmb. Moodys analyzed several Nonprofit Companies saying they had a sufficient push to deal with devaluations. They believe it would provide some benefits for some companies and only a hand full would come under downward rating pressure. Oil is giving back some of yesterdays gains a mid the weak china pmi reading and as investors take profits. This after they surged over 8 yesterday overcoming a 20 loss in august to close out in positive territory. It comes after opec said it was open to talks with other producers over price worries. Data showed the u. S. Production was lower than previously forecast. Now citi says the crude rally will be short lived saying recent gains are not warranted by fundamentals. Theyre expecting to make fresh lows before year end. Meanwhile, the world is still oversupplied with oil though it forecasts the decline in u. S. Production last year. That rally where we saw crude gain about 27 not based on fundamental which is many can say is true. Its more speck atechnicals drie price action right now. There was some Short Covering and the like and obviously following that weve seen some profit taking today but the oil market has been extraordinary over the last year or so. Not only is it a proxy on risk sentiment globally and when we see equities move or gdp data disappoint but theres so many other factors going on and that story relating to opec being open to talk to other producers i think is a fascinating one and maybe that will happen. Thats clearly something to do with the rally but i think im skeptical of it happening. The other question is saudi arab arabia, will they shrink the global glut . And a dramatic move here on tuesday were looking at wti crude lower by 3 . One of the reasons were looking at Energy Stocks here in europe underperform. Meanwhile, steven cohen raised stake in sunedison. Point72 has a 5. 1 stake in the company. He also disclosed he bought more shares last week. Sunedison down about 70 from the peak in july. Shares rose in about 3 in after hours trade. Here on tuesday down about 4. 3 in frankfurt. Well, is stick around because coming up on Worldwide Exchange, time to give europe some credit. Our next guest says the em slow down has made the block a relative safe haven in the Corporate Credit market. Find out why, next. Dont go away. Without the internet i would probably be like a c student. Internet essentials from comcast has brought lowcost high Speed Internet into the homes of hundreds of thousands of lowincome families. It lets students do homework and study at home. So far more than two Million People across america have benefitted. Internet essentials is going to transform the lives of families. I see myself as maybe an entrepreneur. Internet essentials from comcast. Helping to bridge the digital divide. Welcome back. Weak china data sends markets lower. Futures pointing to a triple digit loss for the dow. Crude resumes its slide following the best streak in 25 years and apple goes to hollywood as they discuss creating original content. Lets get you a run down of what to watch this trading day. The Manufacturing Index is out at 10 00 a. M. Eastern. It is expected to have held steady with the previous month. Also at 10 00 a. M. Live Construction Spending which is expected to have picked up after posting the smallest increase in six months in the month of june. Boston fed president speaks about the economy this afternoon and we do have some earnings from discount retailer dollar tree reporting before the bell. H and r block out after the close. Auto makers report the august u. S. Sales number today. The headline may show sales are down from a year ago but thats due to the calendar as the Labor Day Holiday falls later this year. The annual sales rate is expected to remain above 17 million on continued Strong Demand for suvs and pick ups. Sales are shaping up for the best year since 2000. With worries over greece on the back burner for now, is it a good time to point your portfolio in europes direction . Thats the view from our next guest that says the slow down makes europe a relative corporate safe haven. Paul waters head of Corporate Research at standard and pores here in the studio. A pleasure to have you on the show. Help us understand why Corporate Credit looks more attractive here in europe and the u. S. Perhaps. The argument is on a regular basis europe has gone over the crisis in greece. Whether greece would stay in the euro or not. The focus has shifted to china and obviously the fed move and when they might start hiking rates in the u. S. So on that basis, the european economy is actually starting to look reasonably strong. Its sort of gradually improving very much supported by the initial action that have been taken. Not the least the ecbs qe policy. That really helps the domestic economy. Obviously the multinationals very exposed to emerging markets in china will experience headwinds but actually the european economy looks reasonably okay. How much is it to be long Corporate Credit in europe. A relative core because Government Debt is so low because of qe. How much is it that the companies are strong and growing and whatever yields are available thats an attractive buy . Obviously what you have been seeing is that theres been a chase for yield so they have been getting financing cheaply. Those investors might be more alt risk if the risk off trade continues but from a fundamental credit perspective where youre talk about cash flow, actually, these companies certainly Investment Grade companies and stronger credits look reasonably okay from our perspective. Credit spreads widen last week on the risk aversion fears. I want to draw your attention to u. S. Futures pointing to a significant move lower. The dow is called to move lower by over 400 points. Do you think that will be more attractive as we see volatility rise in september . We have to separate market risk from credit risk. But the question is does that fundamentally translate into deterioration of credit and while we think that there are vulnerabilities in the space for credits, many other companies that have stronger credit characteristics or operate in more stable sectors will weather the storm quite well we think. I want to bring it back to europe and where the qe is working here. Some has picked up quite nicely and that made some of the equities and Corporate Credit look attractive. What about longer term effects. Have we seen capex pick up from economies . Is this going to have a lasting effect . Thats been the missing link in terms of the sustainability of the recovery and weve done a lot of research on capex globally and its been a strong headwind by virtue of the fact that its from the energy and commodity sectors. From here looking into europe for the next year theres quite positive news actually because excluding commodities were expecting an 8 increase in Capital Investment for Companies Across a broad range of sectors. Thats the first time weve seen a positive move there for quite awhile. Thats a positive support to the growth story. Just to sum things up we touched on it and its ever presence in our minds is that a risk or only will be market risk as opposed to credit risk. Theres a potential for contagion there but a lot of what were seeing at the moment is investors and traders trying to understand how the global patterns of trade will shift because were sort of move agoway from such a focus on the growth to a stronger more sustainable credit market. If youre a premium auto producer, a bmw or audi selling to china or selling out of china even obviously for the shortterm at least youre going to be suffering a negative impact on earnings. Thank you for joining us. Head of Corporate Research at standard and pores. The u. S. State Department Released the largest batch of emails yet from when Hillary Clinton was secretary of state. Among the 7,000 pages are more than 150 emails that have been redacted for information that is now classified. They include complaints by clinton staffers about restrictions on the use of emails to discuss sensitive diplomatic issue. President obama called on World Leaders to Work Together to tackle Climate Change. Speaking at the conference in alaska on monday he outlined the need to build a new green economy. This is not simply a danger to be avoided. This is an opportunity to be seized but we have to keep going. Were making a difference but we have to keep going. Were not moving fast enough. If we were to abandon our course of action. If we stop trying to build a Clean Energy Economy and if we do nothing to keep glazers from melting faster and oceans from rising faster and forests from burning faster and storms from growing stronger we will condemn our children to a planet beyond their capacity to repair. What else can we expect . Well tracy pots is joining us live from washington. Good morning, you can expect him to show what he was talking about this. You heard the president talking about glacers melting. Today well see him hiking up to one of the glaciers and taking a boat to part of a program that will air later but as part of this trip, his aim is to show that Climate Change is real. That the glaciers amelting at a very fast pace raising sea levels. Theres an island right off alaska that Scientists Say will be completely submerged in water in about ten years so the president is trying to make the case that this is urgent and hes doing so because in a few months in december his administration will sit down with World Leaders in paris. They are trying to workout a global agreement. There was the big agreement with china which some said was more on the u. S. Side than china side and now Global Leaders will sit down and try to workout a global Climate Change agreement so this is leading up to that. Thank you so much. Coming up were going to discuss more about the market turmoil and what to expect in september. It was an august to forget for two Major Hedge Fund titans. That story coming up. [ male an] we know theyre out there. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner, brighter future. At boeing, thats what building Something Better is all about. At boeing, thats what building socan a a subconscious. Mind . A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . August was a tough month for two hedgefund moguls in particular. Both flag ship funds were down 5 for the month. Sources say einhorns Green Light Capital fell 5. 3 bringing the firms losses for the year to 13. 8 . Loebs fund dropping 5. 2 but still up for the year. Theyre typically the first Big Hedge Fund managers to tally monthly results suggesting others could also report heavy losses. It was an august to forget. A lot of volatility now on the first trading day of the month were asking do you think it will be a september to remember . What are you expecting . Weve been getting your tweets over the past hour. H