Morning and welcome to Worldwide Exchange on cnbc. What a week to launch a show about the Global Markets. Absolutely right and a great choice of song by the director there. Under pressure. Wall street waking up to another wild market story. Chinese stocks halted for a second time this week. This time trade was suspended for less than 30 minutes after the open. So very short bit of trade today. The main catalyst is the Chinese Central Bank setting the official midpoint rate on the currency at the lowest level since march 2011. It was spt 5 weaker than yesterday. Thats a big move. If biggest daily drop since last august. Chinese security regulators announcing new rules restricting trading by shareholders. They cant sell more than 1 of a listed Company Every three months. Lets check on the global ripple effects and boy are they far and wide. Starting in the u. S. , under pressure is a understatement. A steep sell off yesterday. S p futures down 42 at this early hour. This is another ugly set up for wall street. Nasdaq futures down. And its effected europe too. Lets look at european trade. Shark declines across the board. The dax bearing the brunt of this. France and the u. S. Also off some 2. 6 or 2. 7 . Its the chinese exposed exporters in the dax. Thats why you see the 3 decline there. Stocks plunging today after china suspended trade early. We have to get a break down. This was a crazy session. Sri joins us from singapore with the round up. A less than 30 minute trading day in china, sri. Well, it was actually 15 minutes because about a quarter of an hour off that, 29 minutes to be precise was actually the first trading halt after that 5 intraday slide was triggered. Anyway, thats by the by and i think this raises multiple issues here. The first one is the chinese currency. Clear depreciation on the yuan and at the lowest level in almost five years. So this is the negative feedback loop. This is really central in my mind and i think what really spooks the market is that the weaker currency is really highlighting and underscoring perhaps a deeper than expected malaise in the broader chinese economy. The other factor here is that to be fair this is an evolving Capital Market. Policies evolving as well. The regulations are evolving with them and what this week has told us so far that is that the Circuit Breaker mechanism does need to be refined. It does need to be fine tuned. Lets face it. It is counter productive. Its not containing the volatility. Its fuelling it so there needs to be refinement of this market mechanism. Well leave that to the regulators in the here and now. Remember when we saw this type of volatility during the summer route in 2015. The pboc stepped up to the plate with supportive measures. Possibly as early as today maybe friday or the weekend. We have seen this forever. We all remember last august. Drag this down as well. Sri thank you very much for the set up. Out of singapore this morning. Clearly he mentioned the currency. Thats the big concern that something more rotten is happening in the chinese economy that they have to resort back to the export model to prop up the exports to meet the growth target and what does that do to the Global Economy . Even if the u. S. Isnt as exposed via corporate earnings or exports to the chinese economy, china impacts every single countrys economy on the globe and the question is what does it mean for Global Growth . Right. The currency has been the sparked that caused all of this last week and i was writing in an article in november and i mentioned the fact that 2 declines, 3 declines that we saw in august, theyre nothing. We need to see much more to see all of this flushed out and were starting to get toward the highest single digits. They might be managing things and this is all planned and theres such a run of private capital out of the country that the state cannot stop it falling quicker than it is and theres such a rush that its speeding out the door. This is your wheel house. You were on an asian trading desk. You were an asian fund manager. Yeah, for five years i was managing asian stocks. So read the november commentary, cnbc. Com. Predictive power. And we have to mention the Circuit Breakers they have come in and accentuated the falls. Two views on that coming in earlier in the week. This is from steve sun. He says that state intervention provides stability and will allow Capital Market reforms to take effect. But they are saying that the spikes in volatility are temporary. So he has a positive view on these of course you lock in the loss. Obviously they need to get on top of this plunging market. Absolutely right. Lets have a quick look at the other major market story this morning. Oil prices. Brent plunging to levels we convenient since april 2014. Oversupply and near record output levels. 33 almost below 33 for wti. Just above it down 2. 8. We felt china was leading oil prices down. Overnight these falls in oil probably accentuate chinas moves as well. Absolutely. This is after a 5 slide in the price of oil. But still oil getting pounded. A bold call from Boone Pickens getting a lot of attention today. He talked to jim cramer last night on mad money and he has been calling for higher prices for awhile. Heres what he says now. Close to the bottom. I was just a year off. Well be back up to 70 or 75 by the end of the year. If you look at the long stretch we had in the 80s we were 20 oversupplied. Today the world is using about 95 million barrel ace day and were oversupplied by a Million Barrels so it wont take much to balance the market. Down 70 since 2014 and a lot of Fund Managers are predicting that recovery but you wonder with the sharp moves and sharp declines on oil what is going to get us there . Whats going to turn it around . Everybody said it has to bounce back and they fell another third. It was like catching a falling knife. We cant have another year of falls and look at what happened this week. Crazy stuff. The world bank is cutting its Global Economic forecast for this year announcing growth accelerating to 2. 9 down from the june forecast of 3. 3 growth. The bank argues weak performance will slow activity overall. And a programming note here on this wilfred t world banks chief economist will be joining me on squawk on the street at 10 00 a. M. Eastern and he will talk through the downgrade and the world bank is warning about the weaker Commodity Prices and the spill over effect on the emerging markets on china. How much more room do we have to go . I look forward to watching that and amazing how many other economists or banks or analysts downgraded just this week. Really reacting to the shortterm volatility. Lets have a quick look at stocks to watch today. Shares of burberry are down in european trading. Many luxury retailers have been hit hard by fears of the china slow down. You can see thats down 3. 6 off a bad year already. United airlines ceo underwent heart atransplant surgery. He should return to the job by the end of q1 or the beginning of q2. Now shares of apple one to watch today. The stock dipping below 100 dollars yesterday for the First Time Since august. Investors are worried about slowing iphone shipments. Lots of fall out on news that they have cut orders from their supplies. All leeading into the big earnings report. Transcanada is suing the u. S. Over president obamas rejection of the keystone poop line. Watching netflix shares again today. The to be soared on the news that the companys Video Streaming Service went live in more than 130 countries and the notable exception here is china which might help shares today. Morgan stanley, promoting its head of institutional securit s securities. Greg fleming will be leaving the bank and the reason that wall street is going to be talking about this one today is that greg fleming was considered heir apparent to james gorman. Trying to read into what exactly this means. One thing that i find strange about it and i read all the reports is they announced this major change, upping the role. Leaving a few weeks before earnings and they didnt preannounce earnings and they didnt give any guidance so now analysts are wondering if the Wealth Management isnt doing as well as they thought because greg fleming oversaw a very big recovery in Morgan Stanleys business because of Wealth Management. He is also quite a lot longer and people thought he was groomed and the one coming through. Which could also Say Something about whether he wants to stay on board for quite a bit longer. There we go. Thats morgan stanley. Lets have a look at macys. Pink slips after a dismal holiday season. A bad omen for other Major Department stores and retailers. Landon joins us with more on that story. Good morning to you. The nations Largest Department store chain will cut about 4800 jobs and close 40 locations. Its a move that will save about 400 Million Dollars. The cuts include 2700 store employees although half will be moved elsewhere and several back office and management positions. Same store sells fell 4. 7 in the past two months. Far worse than what it estimated in november. Its cutting its earnings outlook for the second time in two months. Macys expects sales to drop 2. 7 for the year ended in january. Bigger than previously forecast. The majority of the sales decline is due to the unusually warm weather in november and december diskournling purchases of winter clothes. Its also blaming the strong dollar for keeping tourists from visiting the u. S. Analysts say other retailers are also facing a similar lack of demand for apparel. And the stock up nearly 3 in after hours. Thank you very much for that. The stock is down more than 40 in the last year. When we come back, Global Markets selling off hard this morning after chinese stocks halted for trading. The second time this week. Check out the map of europe. Red across the board. Especially in germany. Well take you live to our colleagues overseas for a run down of the Market Action next. Our twitter question of the day, will china drag down the Global Economy into recession . Take our poll. Speak out, give us your comments. Were going to keep you were going to air it. Were going to talk about the results a little bit later. This is a wild morning. Were watching the futures down more than 300 on the dow. Youre watching cnbc, first in business worldwide. While youre watching this, im hacking your company. Grabbing your data. Stealing your customers secrets. Theres an army of us. Relentlessly unpicking your patchwork of security. Think youll spot us . You havent so far. The next wave of the internet requires the next wave of security. Were ready. Are you . Welcome back. Buckle up. The shanghai composite plunging 7 before suspended trading for the rest of the day. Less than 30 minutes after the open. The rest of asia not reacting well to the news. Losses of more than 2 in australia. Equity futures are down triple digits this morning. Down 375. Looking at session lows after what has been the worst start to the year futures down 45. The worry is china. Nearly 400 points now on the dow futures. As youd expect europe also sharply lower after the gate. The dax dropping below 10,000 for the First Time Since mid october. Julia joins frus from london. Shared almost all the gains the dax in four trading days from hast year. Youre absolutely right. We are 20 off the highs hit in 2015 back in april for the german markets but its an ugly picture across the board. Two factors you have been saying all morning. The intensification of the oil sell off and also in china overnight. A lot of people saying to us is this about further liberalization of the currency or is this saying something really serious, more serious about chinese growth . Well the exporters stocks are telling you what they think. Some of the auto across europe. Bmw off more than 4 and volvo off more than 3 clearly reliant off chinese sales in particular. Its a broader picture of losses here. Angelo america with a downgrade today. What we saw yesterday was gold now at 9 week highs and some of these benefitting in the session and more broadly we have european bonds higher. We have the dollar high. We have yen stronger. Broad based selling across equities. A real risk off feel here in europe. Back to you. A quick question, we also have data out of europe this week. Inflation data underwell ming a few days ago. What percentage would you attribute that to moves in the markets . Is it anything to do with fundamentals or just the broad fear from china. I think its about risk off. Its about what were seeing in china and the concerns overall more broadly. European data disappointing on the inflation but most guys you speak to her saying its not going to be great growth in europe but its going to be okay. Maybe the sell offs that were seeing is giving them opportunities. The question is when do you get back in here with Everything Else going on. Thats a question for the u. S. Too. The bad news spieling up. Julia, thank you. When we come back well give you a report overnight on the market mess in china. Youll want to see the play by play in the chinese market. Youre watching cnbc. First in business worldwide. Welcome back. Dow futures at this early hour. Concern on markets everywhere this morning. Nasdaq down 127. Well take you live to hong kong in just a moment but first we want to get you covered here and get todays business travellers forecast. Grant johnston joins us from kxas in dallas ft. Worth. Good morning, grant. Good morning to you. Happy thursday. Another wet day on the west coast. Can you believe it . Also tracking a system here through the southern plains. It has cleared through dallas ft. Worth so should see some minimal weather delays there but rain for little rock and memphis later today. St. Louis and kansas city starting off wet. Heres what it looks like through day. Watch the time line there and that system in the plains moves very slowly and out west. The rain sticks around for los angeles and san diego. A chilly day in san francisco. Snow through the rookies spreading up through the Northern Plains and midwest. Chicago should stay dry today and the east looking good. Chilly temperatures, new york city, boston and d. C. But nothing dramatic for this time of the year. Nice and mild in the southeast and warm in florida with the 70s hanging on. 60s and 70s across the lone star state. Cold air in the Northern Rockies but not arctic of nature. Chilly though on the west coast. Back to you in new york city. Thank you very much for that update. Lets get back to markets. This is absolutely nuts whats happening. Questions, china was off 7 but the huge reaction. The huge carry through were getting through to u. S. Equities is a surprise. We have the nasdaq. The s p off. If you thought they were supported this week you were wrong. If you think the u. S. Was the global safe haven you were wrong as well. The dollar is weaker against the euro, yen. Its weaker again today. The yent big beneficiary this week of safe haven trades. 11755. Up as well today 10847. China is the culprit again. Sparking a Global Market sell off. Eunice yoon is joining us live from hong kong. For the second time this week we saw the Circuit Breaker halt chinese stocks with a move down 7 . Thats right but the panic has really set in. We had the shortest trade dag in chinas 25 year history with the stock market and it was ugly. The chinese investors have been concerned and spooked by the big downward adjustment in the currency. And people are fretting about how the government is lifting the restrictions on some of the big shareholder who is had been holding on to their shares. Tomorrow theyll be allowed to sell some of the shares or at least after tomorrow and people have been worried about that. Now Circuit Breakers designed to limit the volatility. Theyre having a counter productive impact. In fact there was a poll today that showed that 86 of the people polled believed that the Circuit Breakers were not reasonable. A lot of chinese investors online were calling for and end to the Circuit Breakers and they also believe over half of them said that they they the breakers are going to be triggered again tomorrow so a lot of panic in the markets right now. The regulator said theyre going to try to limit the damage by putting in any rules so they can only do it in limited bunches. So about 1 or so but still it hasnt been able to turn around the sentiment. In fact, online, public Fund Managers have been advising their clients to sell that are shares. Thank you for that. Switching gears to Corporate News this morning, shares of disney down again. This would be the 7th straight day of declines for the dow component but a bit of good news for the company, its official, star wars, the force awakens has become the highest grossing movie of all time in the u. S. And stripping avatar of the title. It crossed the 800 Million Dollar mark. To beat the global record the film must rake in more than 2. 8 billion. Its currently earned 1. 5 billion globally and it hasnt even been released in china. Im not sure if people got much money. This week the movie has only been in theaters for 20 days. Wow, doing really well. The stock built in a lot of that ahead of the movie. Opening Shanghai Disney and perhaps thats the concern this year and lingering concerns about espn and cord cutting. The Major League Baseball hall of fame is getting two new members. Ken griffey jr. And mike piazza. He played for the Se