The slide puts renewed pressure on gulf markets where the losses of benchmark indexes across the region. Fixing up financials. We delve into the world of distressed assets with j. C. Flowers. Thats in half an hours time. If youre just joining us in the u. S. Good morning to you. Take a look at futures. We could be in for a rough ride on wall street. The dow indicating a 300 point move. Nasdaq significant nagle a 441 point move. This as the dow lost about 520 points on friday. That was the biggest one day decline in four years. Just take a look at how u. S. Markets closed. The dow, the nasdaq, russell 2000 are now in correction territory. Whats really interesting about the moves that we saw on friday is its not just the dow that is under pressure but its really across the board. The s p 500 well below 2000. A key psychological level that traders watch. Its the fundamental and technical story that analysts are voicing concern over. And the nasdaq. This has been the index that investors have been focusing on. After breaking the record high in the year of 2000, well below 5,000, holding on to 47 . Down 3. 5 on friday. In terms of european trade we are significantly lower as the export oriented stocks, particularly those with high chinese exposure continue to move to the down side. Thats why when you continue to take a look its the xetra dax, the German Market that is pretty much the under performer here. Down 2. 5 . Similar losses in france and italy. I want to point out the ftse 100. The Mining Sector hitting the lowest level since 2009. No love for the mining stocks despite the Lower Oil Prices that weve been seeing. The ftse 100 at 6020. Now down 2. 7 . Its a similar story for germany, france and italy. It was an ugly story in asia. The shanghai composite closing down 8. 5 . Thats the biggest one day percentage fall since february of 2007. This after beijing failed to deliver a widely expected rate cut. Instead, authorities move to allow Pension Funds to invest in the stock market for the first time ever. Will this help markets Going Forward . Lets ask sri Going Forward. Hey, sri. Hi, seema. The simple answer is yes, but in the longer term. Its no bad thing that china continues to liberalize and open up the capital markets. Its its good to have the Pension Funds, the sticky funds in the market. What we need in the short term to reverse these very, very sharp losses is some decisive, bold action by the pboc. Ill get to that in a minute. The owe fufficial chinese statea are not putting a gloss on this. They are calling it black monday. Theres a cartoon of a rather concerned looking bull careening off a water slide. Beijing is not putting a gloss on what is going on here. Lets paint some context. As you said, seema, this is the worst oneday percentage drop since february 27th, 2007. So just before the financial crisis. The other factor here is that the Greater China markets have now erased all their yeartodate gains. The china markets i should say have raised their yeartodate gains. Greater china markets are now firmly in bear market territory. From a valuations perspective, hs, the hang seng, look very competitive. In order to get them nibbling and dig their toes back in, we need to see some decisive policy action. Youre quite right. We did not get that over the weekend. We may very well get it over the course of this week. When and what form it will take i dont really know, but a lot of people are telling me in order to restore confidence to the stock market and restore confidence and stability to broader economy as well, it has to be bold. It has to be decisive. It has to be targeted. If it is cuts in the rrr, it has to be targeted at those banks with the big loans, the smes. Let me round off by taking a look at the damage reports in the currency market. Yet again it was the malaysian ringit that was under pressure. If you can flick the borsards a show you what currencies are doing. The ringit, we are really suffering. 425. 80 is where we are standing. Prepegged 17 year lows for the malaysian ringit. The malaysian dollar is under performing. The trade linkages with china reflecting that pessimistic mood in the markets. Aussie down by 1 . Let me stress again, louisa and seema, it comes down to the policy makers now. The ball is firmly in the court of the pboc. Thats where we stand. Back to you. Sri, thank you very much for that. Meantime, while commodity rates, theyre heading lower, commodity levels. You have gold off by half a percent. As we were saying, last week was a positive week for gold. We saw it gaining steadily throughout the five sessions that were in last weeks trade. Copper a little bit lower. Brent off by 3. 5 . Wti crude off by 3 . So thats what were seeing when it comes to some of the commodities out there. When it comes to the fx markets and currency rates, youre looking again at a euro collar which has been on the move which is quite substantial. Euro, 1. 1469. Huge move to the up side in the euro in fridays trade. Thats following through today as well. The dollar against the yen down by a tad sitting around 120. The bonds as well, just briefly glanced at them, weve seen some safe haven buying into the some of the core markets still happening on to a little bit of green. Germany flat lining a bit since we last looked at the bond markets a half an hour ago or so. In italy youre seeing a little bit of selling. Periphery bond markets are being sold back just a tad with yields heading higher. A bit of repositions taking place today, seema. Yeah, absolutely. On friday the dow dropping 520 points. Biggest one day decline in four years. It is now officially in correction territory along with a tech heavy nasdaq and the russell 2000. What about the fear index . The vix had its biggest week ever. Back to 1990, up over 118 . Some other market facts for you as well. Friday you might think that were seeing low volumes, all the rest of it, but friday actually saw the biggest volume of the day of 2015 with 10. 5 million shares traded. Dow components, they lost 338 billion in market cap last week. That might not mean anything to you, 338 billion compared to what . Thats roughly equal to exxon mobil, berkshire hathaway. Huge, huge wipe off in market cap. Ten dow stocks in market territory. 12 stocks in direct correction. Joining us live from orlando is michael easton. President of fellowship financial group. Michael, what do you make of the current selloff that were seeing . I think its indicative of the uncertainty that a lot of folks are seeing, not only here in the United States but also on a global level. I mean, clearly china is experiencing some Economic Uncertainty and i think theres a lot on this side when you think about the uncertainty that exists with the federal reserve. No ones really sure what theyre going to do. Theyve sent out mixed signals and i think thats having an impact as well. Michael, if stocks can sell off this much ahead of a fed rate hike, should we be worried on how stocks will perform when the fed does, in fact, raise rates . Well, first of all, i dont think the feds going to change rates. I think theyre going to be pushing that off into 2016. Ive been saying this for months now and i think theyre just the last six months theyve been looking for a reason to push off any kind of a rate hike. I think if anything this gives them the reason to go ahead and do it. I think the best thing the fed can do right now is to come out now, this week and say that theres not going to be a fed rate hike, take that off the table and create at least a little bit of stability in many u. S. Markets. Tumultuous session overseas. In asia the shanghai selling off, how much will this impact u. S. Trade today . I think its going to have a tremendous impact. I dont think weve seen the bottom. I think it is certainly going to lead to more selling today. Some additional flight to safety as well and i think it could continue well into the week. Michael, im just looking through some of all the twitter comments and questions that are coming into the show. Andy writes in and says stock markets are no mans land but im not selling. I dont even understand why the market panicked in the first place. Im nibbling. Thats not the first time weve heard the word nibbling today. Do you think there will be a bit of nibbling taking place this week . Are we going to be thinking were not going to enter into bear market territory and try to bottom pick some of these selloffs . Well, i think people need to be very concerned right now. I think they need to be very careful. Most individual investors should be taking some gains off the table that theyve seen over the last several years. I mean, over the last six years weve seen an increase in the market of 150 . So if you look at that in comparison, then stocks have done very well. So its time to just kind of sit tight and candidly just wait for the bottom and be patient. Michael, stay with us. Get your questions through if you want to talk directly to michael through us. You can find us worldwid worldwidworldwide cnbc email and you can find us on twitter. Now, lets continue. A new survey shows us that a vast majority of u. S. Economists, they think the fed is going to be hiking Interest Rates this year. The poll by the National Association of business economics finds that 77 expect a move before the end of the year. However, only 30 they think at the september meeting. 37 , right . Now almost a quarter expect the first rate hike in october. 17 in december and another 17 they think next year or even later than that. The forecasters, they think, if the u. S. Economy continues to improve, that the feds benchmark rates will be topping out at 3 . Listen, a lot of numbers you just threw out there. The main consensus is that september perhaps not on the table as much as it was before this market volatility took place. Thats the big question. Will the fed actually react to this market volatility and say given these external factors perhaps september doesnt make sense anymore despite the recovery were seeing in the u. S. Economy. Even before the market volatility we still were looking at that pull back after yellens quite dovish statement where its very data dependent. I still think go and read the op ed in the ft, larry summers, talking about how the fed is set to make a dangerous mistake. He talks about how price stability, full employment and Financial Stability would threaten or would be threatened if the fed were to hike too early, that it would threaten all of these three mandates. A lot of voices out there. Well have to see what actually happens. In the meantime, despite the recent selloff wells fargo continues to see positivity in the market. The bank says the Services Sector shows improved spreads. Wells fargo adds that some volatility is to be expected as investors get nervous before the initial phase of the fed rate hike, however, it is sticking to its 2150 to 2250 range of the s p 500 in 2015. Its predicting stocks will hit new record highs in 2016. A lot of different views on where the markets are headed. Speaking of market volatility, coming up on Worldwide Exchange. Well speak to the main manager of j. C. Flowers, tim hanford. That interview coming up in 15 minutes time. 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. Youre watching cnbc. Germanys dax is losing and the base metals are firmly in the red. Hi, everybody. Welcome back. Youre watching Worldwide Exchange. As weve been saying, all s p 500 sectors, theyre being hit hard by the market selloff. Energy is in bear market territory now. Down by more than 35 from its recent high. Materials, industrials, telecoms, tech all in correction from the most recent highs as well. Remember that correction territory, correction market is when you see a 10 correction from a recent high. Bear market is when you see 20 to the down side over 2 months. When it comes to the other sectors, financials and Consumer Staples have been the best sector performers. Still down by somewhere in the region of over 7, over 6 respectively from their recent highs. All of these sectors down somewhere in the region of, what, 6 . Utility is off by almost 10 now, seema . Looking at the energy sector. If you check out the most widely held names, we can see Institutional Investors getting out of the stocks. Exxon mobil was the most held stock in the end of the first quarter. Wasnt in the top 20 by the end of the second. Chevron fell from 19th to 20. No energy stock in the top 20. Thats the first time this has happened in many years. Now the Iranian Oil Minister has urged an emergency opec meeting which he says may help stabilize the price. According to the iranian news agency, he said iran would be endorsing a meeting prior to the next scheduled one in december. That calls for algeria as the crude price begins to slide. Brent at 43. 5 and wti at 38. 80. Oil prices may be sliding but u. S. Gas prices arent tracking those declines at least at this point. The latest lundberg survey shows the National Gas Price held steady at 2. 71. A refinery outage is off setting cuts in the west. Gas prices down 70 cents from a year ago. Lundberg says lower crude prices could cause refiners to slash prices. Still with us is michael east ham, president of the fellowship financial group. What do you make of the recent oil prices . Is it good or bad for stocks . Well, i think from a stock standpoint youre certainly seeing some selloff there as well. Tremendous amounts. You just mensed a minute ago that some of the Major Companies are not in the top 20 holdings for a lot of institutions. That is reflective of their concern on the continued production all over the globe of massive amounts of oil. The collapse in oil prices and devaluation of chinas currency shows that inflation will remain below 2 into the foreseeable future. Do you subscribe to that theory as well . Well, i certainly think inflation will be well below the fed mandate for quite some time. I think from a consumers standpoint i think its benefitting clearly consumers. Theyre not having to spend as much money on gas. You would think that people would buy more but thats not whats happening. Were continuing to see people paying off debt, putting money aside and as a result were not seeing the growth that we would expect. Absolutely. And a considerable move to the down side in oil prices right now. A 4 move in brent, louisa. Michael, what do you make of some of the opportunities out there . Are there opportunities . Well, theres always opportunities in the market. I think it just depends on what your perspective is for investing in the stock market. I think right now as i mentioned earlier, its important for folks to take it easy and not jump right in. I think there were some income based opportunities that exist out there for folks who are just trying to generate income, be a little bit more risk averse and just generate some predictable, more conservative gains. Michael eastham from the fellowship financial group. Still to come on the show, heroes honored. We tell you how france has thanked the americans and britts who thwarted a terror attack on a train coming from paris. Thats coming up. Can a business have a mind . A subconscious. 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 . More data means more freedom to do. Whatever. Thats why at t is giving you 50 more data. Thats 15 gigs of data for the price of 10. Because the more data you have, the better. And right now at at t get 300 credit for every line you switch when you trade in a smartphone and buy any smartphone on at t next. You forgot the milk thats lactaid. Right. 100 real milk, just without the lactose. So you can drink all you want. With no discomfort . Exactly. Here, try some. Mmm, it is real milk. See . Delicious. Hoof bump oh. Right here girl, boom. Lactaid®. 100 real milk. No discomfort. And for a creamy and delicious treat, try lactaid® ice cream. Well come back. Frep much president Francoise Hollande has given the highest honor to individuals who tackled a gunman on a train. Edward lawrence has the story. Reporter good morning. Three americans, a french sit sten and a british citizen were honored as heroes of france with his arm in a sling and his thumb reattached, Spencer Stone received the legion of honor. So did all the other gentlemen there. Thats frances highest award. Stone says that his friend tapped him on the shoulder in the train and said, lets go. The french president said that those two words stopped a massacre on that high speed train as it came from belgium into france. Now the gunmans been identified as 26yearold ayube el kazani. He was on a terror watch list for at least three states three countries, actually, for his radical beliefs. Still he was allowed to board the train. Authorities say while on that train is when he committed these acts. His Attorney Says that he was homeless and on the train to rob people. The three americans said that they simply dont believe that. The gunman had nine magazines, an assault rifle, a handgun and a box cutter. They do believe that he was there to commit a terrorist act. Reporting live in washington, edward lawrence. Back to you. Edward, thank you so much. Now i want to draw our attention to u. S. Futures after that significant selloff last week. Futures pointing to a lower open. Were down about 298 points in premarket trade on the dow. The nasdaq down 129 points. Remember last week it was stocks across the board. Losing about seven perce7 . Valuation still a big part of the story. Just glancing through some of all of your emails and your tweets out there. Tim tweets m, sein, seema, said youre part of the problem. Money failed. For example in europe, quantitative easing is still going on. Does that mean it isnt working . Doesnt have anything to do with that . Its surprised were seeing such a big selloff. One of the reasons Goldman Sacks has been overweight for the u. S. Again, its the whole throwing the baby out with the bath water. John king says its a rate hike tantrum so a taper tantrum, tightening tantrum. This is a rate hike tantrum. Michael calling this price action correction which, come on, get a little bit more creative than that. Yes, the dow is officially in correction territory. Sometimes the obvious is just the obvious. Yeah, on days like this perhaps thats what works. Get involved. You can find us worldwide cnbc often email or on twitter. Tim hanford coming up from j. C. Flowers just after the break. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Youre watching Worldwide Exchange and im seema modi. Welcome back. These are your headlines from around the world. A big market day. Theres no reprieve for investors. The dow is on course for a 300 point loss after fridays biggest one day decline after four years. Another selloff in china with the shanghai composite posting its biggest fall since 2007. Investors reacting negatively after beijing pulls back on a rate cut. Wti is stuck below 40. Lets take a look at u. S. Futures. The dow is down significantly, about 300 points in premarket. Nasdaq off about 123 points. Keep in mind the dow and nasdaq are officially in correction territory, down 10 in the recent highs. The session overnight in asia not helping sentiment. The renewed slowdown in china being the big concern. The shanghai composite index lost nearly 8. 5 . The hang seng index down another 5 . The japanese any time you see it as a safe haven and looking at it broadly feeling the pain, down 4. 6 . This on the back of weakens growth data. Thats not helping the picture there as well. What does this mean for european markets . A significant selloff in europe as well, specifically the export oriented stocks. Companies that have high exposure to china continue to see the brunt of the selling and thats why the xetra dax is down 2. 2 . The ftse has high mining and the Mining Sector hitting the lowest level since 2007. This as we continue to see a route in the commodity market, specifically the oil market i should say at another 6. 5 here. Low coal at 6 year low. Ftse 100, 6. 21. Keeping an eye on european equities. How do you make money in these markets. Heres what a host of investors have been telling us this morning. Weve been fairly good with the credit situation in china. And i think that the surprise for us the past few years is just how the political situation has changed. Its a different person than weve seen, nationalist, antiwestern. China was open for business and thats not really the case as much under this regime. We remain relatively optimistic, particularly for europe where we think valuations are lower, where the economic recovery is at an earlier stage and where we havent seen the heavy evaluations that youve seen in some of the u. S. Tech firms. Hong kong china stocks, look at current data, its interesting bearish in china. The Chinese Companies are growing at the same rate than they are around the rest of the world. Now a new survey shows us that a vast majority of u. S. Economists, they think the fed will raise Interest Rates this year. The poll by the National Association of business economics, they find that 77 they expect a move before the end of the year but only 37 say itll happen at the feds september meeting. Almost 1 4 they think that the first hike will come in october. 17 december. An additional 17 next year or later. What you take away from that is most people dont think a september hike is going to be happening. Forecasters, they think that if the u. S. Economy continues to improve and the feds benchmark rate will be topping out at 3 . Larry summer has weighed in saying liftoff in september would be a, quote, serious error. In an op ed the former u. S. Treasury secretary cautioned about hiking rates before 2016. Summer said tightening in the near future would push down already low inflation rates and adversely impact employment levels. Joining us to discuss the economy and market opportunities, tim hanford managing director. Pleasure to have you on the show. Thank you for joining us. Thank you. Given the volatility that weve been seeing in global assets, there are more global economists saying the chance is far less likely. What are your thoughts and how does this impact the Investment Climate for you as a longterm investor . Sure. Whats on everyones mind today. We are seeing growth expectations to moderate with the ten year bond back down to 2 and the hike has been reduced. For us we look at very, very long term trends. We would expect to see in the long term rates to rise and that would be a benefit to the Financial Sector. In that rate environment one sees modern expansion. I think well cee lo rates. Exactly how low theyll remain low with continued qe in europe. Youre obviously a big player in the distressed market. How does monetary divergence between europe and the u. S. Change the way you look for opportunity . So, clearly the Business Models are more likely to prosper in one environment versus another are different. We in europe, the economic recovery is much slower. Thats the stress in the economy is leading to a significant amount of nonperforming loan creation. We have an estimate of 118 billion viewers of stock at the moment. In time that will lead to quite a lot of change in the banking sector. Weve structured the banking sector, the mutual banking sector. Weve acquired a life company in italy. A lot of opportunity and the stress there whereas the opportunity has shifted in the u. S. Away from distress. From a private equity view though on fed policy, how do you use these how do you think fed policy will impact the lending environment and the broader credit market . Coming back to my previous point, the fed policy, qe has created liquidity. That is after the emergence of the nonbank sector. So were active and the number of lending sectors, niches where we find the recapitalization process. The nonbanking sector is our major competitor. I think this is an area to watch if we see change in the credit cycle. We dont see that imminently happening. Default rates for corporate bonds, speculative rate bonds remains 2 . Well below long term average. So its an area to watch. In europe the opportunities for distress, you still see that in financials . I think its pockets. The interesting thing about Financial Sectors is huge so there are many, many subthemes that one can pursue any one time. It varies by geography, by sector, whats going on in regulation, et cetera. So were fortunate in being able to sort of pick from a wide range of themes as opportunities present themselves. How much looking at the market volatility now, today, all of last week, the week before. The devaluation coming from china, 2 to 3 , right . Yeah. How much of market volatility is linked to your particular to the stress . Or is it more about the fed . Is it more about Central Banks, et cetera . Do you tend to see opportunities in tandem with markets . Its liquidity flows and reacting to chinese numbers are hard to read. Difficult to interpret. But clearly the pbocs response has peoples attention. A lot of the economys assets leveraged to what goes on in china and the transition to a more consumerled economy. We have to be constant of that. As longterm investors we balance out a portfolio. We work with the management teams, board Risk Communities to reorganize our Balance Sheets or avoid the risks that might be emerging. We want to get your thoughts on china. Tim hanford, managing director at j. C. Flowers sticks with us on Worldwide Exchange. Peeking of volatility, take a look at your screen, the dow off 290 points. Nasdaq down 117 points. More on the price action and what to expect in todays trade after the short break. Try the superior hold. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Hi, everybody. Welcome back. Youre still watching Worldwide Exchange. It was an ugly session in asia with equities hitting a low. The equities fell after beijing failed to deliver a widely expected rate cut. They allowed Pension Funds to invest in the stock market for the first time ever. I have to z i have to say a number of you are writing in, its not a bad day. Im short. Tempering the language as well. Checking in on the markets in asia, sri joins us. Hi, sri. Hi, louisa. So one of the questions in the near term is where does this meltdown stop in the china markets . In the short term i think this level of 3100 will be quite critical. Thats the major support level. We could test that and possibly drop through it when you consider the momentum of todays declines. Thats the near term picture. We are going to keep falling unless we see some kind of policy response. Remember, it was the lack of policy response that we saw over the weekend or failed to see that really triggered todays momentous decline. Last week the market was off in china by almost 11 . We saw some very sluggish factory activity data as well. So that really built the case for a policy response. Big question is what kind of response are we going to see . Because the sense that im getting is if it is going to hit, it has to hit hard. It has to be bold. It has to be decisive and has to be targeted. All right. Lets take rrr cuts. 50 basis points isnt going to cut it. It has to be 100 bases points in one month alone and it has to be probably 200 for the remainder of the year. 100 basis points in this month and then 100 basis points for the remainder of the year. Thats the sense that im getting from one brokerage. Until then were not going to really see the markets stabilize. This is something of a shaock ad awe moment. There are compelling valuations happening. This a draghi moment. Theyre going to start dipping their toes in and nibbling, youve been hearing that word a lot. We need to see some kind of policy response to back stop the market and to instill some confidence before we move forward and the dust settles. Thats where we stand. Back to you. Sri, thank you so much. Lets discuss more on asia and china. Tim hanford, managing director at j. C. Flowers still with us. As investors restructure their growth in china, how does that change the way you look for opportuniti opportunity . Do you have to restructure what youre doing . Yes, you have to look at what youre doing in the market signals. The Financial Sector is large. Commonly trading i think very well in terms of we saw and louisa mentioned earlier the Financial Sector is falling less. It is still priced relatively cheaply versus other sectors on a longterm basis and longterm averages. That presents quite a lot of opportunity for us as private investors in the market. We see that really across the board, whether its sort of in Technology End of Financial Services where theres a lot going on or the value and the growth in that technology. Whether its in the value end of the market where youre looking to buy assets or something approaching intrinsic values. Taking a step back, should we have less faith in the Chinese Central Bank in its ability to stimulate the economy . Clearly the measures that have been taken so far havent fed through to the economy . I have no idea what the Chinese Central Bank is going to do. It will do what it does. I dont think so. When looking at risk opportunity how do you think regulators will be navigating . Weve seen a lot of red tape. A lot of tightening in the regulatory vine rmt 678 h there are unprecedented. . Clearly something is fundment a its going to reset the behavior and the delivery in the Financial Sector. As a result of that weve seen 160 billion pounds of fines to Global Financial institutions over the last five years for the conduct misdemeanors, ppi, foreclosure efforts, these sorts of things. So thats, you know, very significant. Something we paid a lot of attention to. It leads to a change in the willingness of these institutions to distribute certain types of products and gives us an opportunity and others like us to go through product redesign, use of technology to find opportunities where these gaps are left. So given this regulatory backdrop, does europe look more or less attractive than the u. S. . So i think we think we think the u. S. Is a fabulous market. It is a complex regulatory market but, you know, the size of the consumer base, the sophistication of the market are great. In europe its its a different picture. It is still all about restructures and, you know, you have solvency, too, coming in the beginning of 2016. That will have dramatic changes on the insurance sector as they assess the impacts and rebalance their books. Opportunities in both but different on qualities of opportunities. Tim, were going to leave it there. Tim hanford, managing director at j. C. Flowers. Love to hear from you and hear what you think about risk at the moment. You can find au aus worldwide cnbc. Com. And find us on twitter. Lets move on. Lets talk about politics as well. The u. S. Political news cycle isnt slowing down during the dog days of august. The one high profile democrat may be closer to jumping into the race for the white house and donald trump takes on a new target. Straight out to landon dowdy at cnbc headquarters. Good morning. Lets start with joe biden. The Vice President is increasingly leaning towards jumping into the 2016 race. The wall street journal says the possibility of a White House Campaign was high on the agenda during bidens vacation in South Carolina and delaware. Supporters say a surprise weekend trip to washington to meet with liberal democratic senator Elizabeth Warren shifts from potential to widely likely. Polls show biden running well behind democratic frontrunner hillary clinton. The republican frontrunner donald trump is blasting Hedge Fund Managers for not paying their fair share of taxes. Trump is referring to the carried share loophole. It lets private equity and Hedge Fund Managers keep taxes at the 20 Capital Gains rate instead of the 39. 6 for the top income bracket. On cbs face the nation trump vowed to fix the taxes. These are guys that shift paper around and they get lucky. When the market collapses like it is now, the market is going down, theyre losing a fortune. Theyre energetic, very smart, but a lot of them, its like theyre paper pushers. They make a fortune, they pay no tax. Its ridiculous, okay . Trump didnt give any information on the changes he would make. A poll on friday shows he has 32 of support followed by jeb bush at 16 . Back over to you. Landon, thank you very much. Landon doughty from the state. Before heading into the break these are our headlines if youre just joining us. Investors bracing for a sharp selloff on wall street after Chinese Markets crumble. The dax is falling below 10,000. This as oil drops to levels not seen since february of 2009. Youre watching worldwide. Well see you just after the break. Well see you just after the break. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Welcome back. Youre watching Worldwide Exchange. We could be in for a rough ride with the dow indicating a 300 point move. The dow officially entered correction territory. It is down about 10. 3 from its recent high. If we take a step closer youll see 30 of the stocks on the dow are trading in correction territory. You can thank energy for that. A lot of the tech names selling off. Lets take a look at asia, lou. The map is all red highlighting some of the main markets out there. Youre looking at the s p sax. Australian market off. Shanghai composite down by 8. 5 . The hang seng down by 5 . The nikkei off by just over 4. 5 . Again, seema, a lot of people anticipating that the chinese would do something to put more stability into the markets over the weekend. They didnt. Absolutely. Currency still a big part of the discussion. Were looking at the euro at 114 against the u. S. Dollar. A level it has not traded at in eight to nine weeks. In response, some of those exporters, companies that make a significant amount of their sales outside of the u. S. Are reacting negatively. In general, stronger euro not good for stocks. You can see being portrayed in todays move. The xetra dax down 244 points. The cac 40 which is in correction tore terry. Mining stocks a weak source of concern i should say. Thats resulting in the ftse 100 under performing and todays trade down 2. 4 . Bobby joining us live from the cme. Bob, people are trying to understand the sole reason behind the drop in stocks. What do you think it is . Well, i think one of the issues, seema, good morning, by the way, is looking for a sole reason. I think we have to look at this with some perspective. This is not a crisis. This reminds me more of 1996 than it does of 2007 or even 2001 where 1996 we had the s p 500 over a twoyear span, granted. Down 22 before resuming its up move from the lows to about 54 and new highs. I think people forget that you can get selloffs during bear markets. You can get down years during secular bull cycles. So i think we have to look at this in perspective. This is not a financial crisis, this is a stock market selloff. Its a repricing of where equities maybe should have been given some of the artificial stimulation weve gotten from the global Central Banks but i dont think its a crisis. I dont think its something investors should be worried about. Traders like myself, we probably got beat up from the long side. Investors should be accumulating stocks that they want to give to their children at this point. Is this the end of a bull market or start of a bear market, bob . Thats a big question. Well, i dont think its either, i really dont. Not at this stage. It does look like a down turn. It does look like well pass 10 and stay well below it. We need some incentive. People talk about the fed to the rescue. I dont know if its going to be the fed to the rescue as much as the fed pulling back and saying this can affect the u. S. Economy, this can affect asset prices. Ive been one of the people who you remember the wall street journal poll a week and a half ago saying 87 of analysts and economists said september. Im one of those people. Im no longer saying september, im saying december and possibly into 2016 because this is an actual event. Right. Its just not in my opinion something u. S. Investors should panic on. Thank you for joining us. That does it on Worldwide Exchange. Next up is squawk box. See you tomorrow. 1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Good morning. A Global Market selloff again today. Breaking overnight, chinas main stock index plunging more than 8 . See what that would be here. Not that thats going to happen. Thats the biggest one day drop since the financial crisis. Dropping nearly 3 . U. S. Equities are pointing to a sharply lower open. There was a three handle on those. Plus a crude call. Oil prices below 40 a barrel hitting 6. 5 year lows, plus a flight to safety. German boons rallying the dollar taking a hit. Were close to under 2 on our ten year again. Its monday, far from the dog days of august with a lot of action. Its the 24th of august 2015. Squawk box begins right now. Being part of business, new york city, this is squawk box. Good morning, everybody. Welcome to squawk box here on cnbc. First in business worldwide. Im becky quick along with joe concern nin and andrew ross sorkin. Why dont we get you caught up to speed starting with the futures here in the United States this morning. Right now after all the declines we saw last week and by the end of the week the dow has lost over 1,000 points. You can see that those futures are indicated down another 312 points this morning. If we were to open right now the