Market. Shoots to the top of the French Market after they raise profit goals but spirits are low after the drinks maker warns of a tough climate due to softness in china. Case dismissed. A judge drops a lawsuit against barclays and major u. S. Stock exchanges clearing them of accusations of rigging markets for fast traders. Welcome to the show. Yes here on thursday stocks are sharply higher here in europe after a down day yesterday. The stoxx europe 600 off session highs but were up almost 2. 5 . This after stocks move sharply in the u. S. The dow Getting Better than 600 points. This after fed president in new york bill dudley says a september rate hike is looking less compelling. The fed set up a major policy move in the direction of hiking rates in september but given the weak Economic Data compiled with the weakness in china, that september rate hike hooking less likely. In fact, now suggesting december is look more likely. Here in europe we break down the trade. The ftse 100 up 126 points. A lot of volatility over the past week. Monday we were lower. Tuesday we were higher. Wednesday we were lower. On thursday we are higher. The xetra dax a triple digit gain here in germany. Up 270 points. French market up 109 points. Well be getting money supply data in a second. That could have an impact on the trade. Italian market with a gain of 371 points following that positive session on wall street and asia as well. If we take a look at the currency markets interesting moves different than what weve seen over the past couple of day where is the euro is strengthening against the u. S. Dollar given uncertainty over when the fed will raise rates. But a little bit of a turn around here with the euro weakening against the dollar. The u. S. Dollar gaining against the japanese yen and a look at how theyre trading at this point. Commodities an interesting look after many weeks of declines. Over the past two days oil has been surging despite the woes over the economic slow down in china. Wti crude back above 40 barrel. Of course a key psychological level that traders watch. Up around 4. 2 in todays trade as investors try to understand the supply demand ratio. Brent crude at 44. 77 up by around 3. 8 . Were looking at spot gold and remember it hit a six week high last week and over the past three trading sessions despite the volatility in equity markets gold hasnt been getting much but in todays session were higher by around. 2 . Chinese equities taking their queues from wall street. This marks the biggest one day percentage gain since july 9th and the first positive session in 6. Lets get out to sri live in singapore. Hi, seema. Yes. Risk aversion seems to be evaporating. The bulls are in control today so so far so good. Big question is whether these gains can be sustained. It was a very strong day for Mainland China equities. They came roaring back. Staged a late lesson rally in the afternoon. Up by 5. 4 and retaking that handle. So breaking that five session losing streak, strong momentum today but will it continue in future days and future weeks . Theres still a lack of clarity over what the end game will be by the pboc and chinese authorities to respond to the macro pressures were seeing and the weakness in the stock market. Were still down on year to date period although we made up some of those losses. Still a very long way to go. The other one i wanted to talk to you about is indonesian benchmark. We could see a stimulus package unveiled by the indonesian authorities that try to backstop the pressure especially on the currency. The indonesian economy rises and falls arguably on the strength of its commodity exports. It has been hard because of the commodity slump and thats effected the rupee as well but the market up quite strongly by well over 4 on expectations that we should see a stimulus from the authorities. Thats where we stand. Back to you. Thank you so much. The rational behind the september fed rate hike is less compelling. Thats the view of William Dudley who gave the clearest sign yet that china growth fears could delay lift off. The comments come as they prepare to gather at the annual jackson hole conference in wyoming where steve filed this report. Central bankers from around the world ready to meet in the shadows of the mountains in jackson hole markets look more like this after five days of extreme volatility. That lead a leading fed official to suggest the odds of a september rate hike from the fed are eroding. From my perspective at this moment the decision to begin the normalization process at the September Fomc meeting seems less compelling to me than a few weeks ago but normalization could be more compelling by the time of the meeting as we get Additional Information on how the economy is performing. Dudley said chinese economic weakness the strength of the dollar and recent market gyrations all combine to make the chance of a hike less likely in september but he wouldnt rule it out since its still three weeks until the next meeting and lots of data to come. A lot can happen between now and then. Well be very sensitive to what happens to the employment numbers a week from this coming friday and youll probably get another decline in the unemployment rate. Wall street economists now expect a later first fed rate hike than they did previously. Moving the expectation to december from september. But nearly 40 of the 26 surveyed still see the chance of a september hike. The irony is that u. S. Data has been reasonably strong recently. Just today the government reported Business Investment in july rose the most in a year but the fed is cautious about recent developments. The slow down in china and sharp fall in Commodity Prices are inkeysing the strains on many emerging market economies. This could lead to a Slower Growth rate. Some thought the Federal Reserve in jackson hole would go for a hike in the mountains solidifying the case for the first rate hike but it looks more likely that the message from jackson hole is that the Federal Reserve at least for now is on hold. And stay tuned to cnbc. Steve will be speaking to Kansas City Fed president esther george. That interview coming up at 12 30 cet. But lets discuss more about the health of the Global Economy. The chinese equity funds manager joining us as well as the head of Macro Credit Research at rbs. Good morning. Thank you for joining us. Do you think there has been a core structural change in the marketplace in how traders view the Global Economy given the china story . I think traders are starting to doubt this market. The problem is the Central Banks around the world is running out. We have the fed struggling to get up from zero and ecb should do more. Ecb is already out of its monday. Its inflation forward. The five year forward is back to where it was before qe in europe and then we know in japan and china qe is not really working and tefrts of tthe efforts of t central bank is not really working. When they dont have any ammunition what do you do . Thats why i dont like this market. What else can the Chinese Central Bank do to ease investors fears . Because the recent moves taken over the past couple of days have been met with skepticism and thats illustrated in the stock market. Im not sure what they can do to ease investors fears but they can do more to try to support the economy. Now that they made the Exchange Rate more flexible they have more room on Interest Rates for sure so probably we could see more cut there is. They could certainly and i think they will cut the reserve required ratios for banks with the reserves held at the pboc. Thats probably what theyll concentrate on now. Clearly they have decided to stop trying to support the stock market but it would appear theres some bargain hunters in the market now. Does the central bank need to get a bit more creative in how they look to kick start growth in china . Because some would say what they have done so far really isnt working . Probably we could see some fiscal stimulus from the government, actually. They could help consumer demand and provide some subsidies. Its politically important and creates a lot of jobs and its a good indicator for consumer demand. They could put some subsidies through there to help stimulate demand. This is the key point. The government needs to do something. Thats not true just for china but lots of other countries. Chinas Economic Growth model relies too much on heavy industries, on real estate, on things that will not be as productive. You already have an Economic Loss somewhere in the structure of production but the problem is with monetary policy, you just push this loss forward. You dont realize that you need to make an adjustment and the Chinese Government has been very mixed in its policy. On the one hand they want to ease and cut the reserve requirements and push banks to lend but on the other we havent seen a lot of restructuring. The u. S. Treasury secretary continues to say china needs to go to a consumer based economy. We dont know if Central Banks can push it far enough. Theres a debt overhang. Thats going to be there regardless of how much they can cut. Its over 50 of gdp. These are levels that are close to developed markets currencies. I want to get your thoughts on what you make, the shanghai composite slightly higher in todays trade. Is this the sign of a rebound . Who knows on the daytoday moves. Probably people will be looking for evidence of government support. But we were buying in the market today. Theres a number of high quality businesses that have fallen quite significantly that i think are attractive value so some will be stepping up in there. Theres some we wouldnt buy. But probably Consumer Staples as well where i think theres value worth buying now. Do you think valuations look attractive on a hole when you look at stocks across the chinese stock market . The problem with that of course is it include ace huge amount of banks and given the debt issues that the other speaker talked about were not positive on chinas bank so i personally prefer to pick stocks here than the overall direction of the market but i do think that if you look at sentiment indicators and in particular flow indicators its pretty extreme. That would suggest were in for a shortterm bounce. Question is where do we go from there. Thank you for joining us here on Worldwide Exchange. Chinese fund manager at Henderson Global investors and alberto sticks with us here on Worldwide Exchange. U. S. Futures as european stocks move sharply to the upside. It was a big day for wall street. The dow gaining better than 600 points and another day of positivity. Dow up about 135 points. Nasdaq up 37 points. S p 500 seeing a gain of 17 points in premarket trade. The best day in four years ending the session sharply higher but do you believe in the rally, dear viewer . Let us know your thoughts. Join in the conversation here on Worldwide Exchange. Email at worldwide cnbc. Com. You can tweet us at my personal handle what you can see on the bottom of the screen. Im sure you were watching u. S. Trade last night. What did you make of the big rally . Is this a head fake or a sign that the volatility from earlier this week is over . The market is playing on very shortterm news that the fed may delay a hike. We saw expectations moving from 50 for a september hike in the futures market to around 30 so were living the dream that things are fine and the hike is postponed to maybe october and maybe december. The u. S. Economy is is fine and recovering and a hike wouldnt hurt u. S. Consumers but theres global consequences and thats because emerging markets have been using dollar funding and fed liquidity for the last ten years and in emerging markets corporates levels have risen throughout the crisis. So these sovereigns have never went through a credit crunch. So theres always going to be something some problem down the line even if the hike is delayed by three months so we have a rally. Which is fiene but im still cautious. Hurricane katrina remains the costliest disaster in u. S. History. Cnbc returns to new orleans to assess the recovery. That story coming up. Its so shiny. I know, mommy, but its time to let the new kitchen get some sleep. If you want beautiful results, you know where to go. Angies list. Everyone can shop for services from highly rated companies, even without a membership. But as a member, you can save more. And you get exclusive access to ratings and reviews. Angies list is there. For all your projects big and small. Pretty come see what the new angies list can do for you. Welcome back. Bouygues jumping near the top after they raise the target for its business. This after posting a narrower than expected loss in the first half. A rare spot in the red, warning about a challenging environment after soft sales in china. It did hike its dividend by 10 although its down nearly 4 in todays trade. Gemalto at the bottom of the stoxx 600. This despite posting a 33 jump in profit. Shares of amet Foster Wheeler trading higher after full year e company is positioned to weather the commodity slump. The Challenging Market conditions set to continue. Amec Foster Wheeler is well positioned for the future. With a higher degree its increasing which means that our revenues for 201617 will increase. Lets focus more on europe. Spains economy grew at the fastest pace in 7 years. By 3. 1 in the second quarter. Europes 4th largest economy looks set to secure the fastest growth rate in 2015 among its euro zone peers. Now the spanish stock index up about 2. 4 . Italys Prime Minister promised to push on with reforms despite assistance from the government. He insists early elections wont be needed to get his plans through parliament which include widespread tax cuts. Critics are concerned about where hell find the 35 billion euros to fund these measures. Now greeces outgoing Prime Minister appears to have softened his stance on writing out any debt despite being the centerpiece of his election campaign. He said what greece needs now is, quote, fiscal space. Thats low Interest Rates and long maturities to successfully repay its debts. Still with us is the head of Macro Credit Research at rbs. The greek crisis has faded. How quickly could it resurface . There is a chance that gdp in greece could decline a lot in the next two quarters. We saw the q2 number was positive but underlying that was a lot of misdemeanor spending from consumers and inflation was negative so the number is not something that we really trust. If you look into the governments accounts the way greece has kept a surplus is by cutting spending and delaying payments to suppliers. So theyre not cutting supplies of milks to the schools and small companies. So thats damaging to the economy. We need to see how much gdp will decline. Greece needs a debt extension of over 30 years. Finally theres something on the table about this. The german newspaper was talking about a 60 year extension but nothing below 30 years is significant. The other important event is elections which probably will happen on september 20th. And so here we need to see the mps getting out of the syriza party and we need to see tsipras getting a majority so he can continue to have a stable implementation of reforms. Thats a key point. But within syriza theres been a transformative change in many members resigning. And the syriza member expected to announce she is leaving the party. She played a political role in the bailout talks. How big of a blow is this to tsipras with so many of his members leading the party . I think we still need to see what the numbers are. 25 have gone but if the number grows a lot then you may not see a majority but i do think theres a lot of preelection gains. We have seen a lot of very confrontational talk within syriza in the past but then tsipras managed to pass confidence vote and bailout vote so i think that tsipras is still a very strong leader in greece. Do you think hell win the election . I think he will win the elections. Probably will have to forge a new alliance with other parties. He said before hes not a fan of coalition. But i think its a needed compromise. So i think he will try not to create a coalition with the opposition but other parties are more flexible he could ally with. The rebound continues. I called it the come back kid of europe. I quoted you though in my article and you said that political risks there for spain given the up comeing election. They have some political risks for sure. Catalonia at the end of september. Theyre angry and then theres National Elections in november but spain is on a very solid recovery path. We should look at italy. Italy has been under valued in markets even though its performing better this year but the reforms that spain has done in the past two or three years italy is doing them now. Theres more room for improvement but renzi needs to take off the white gloves and press on with reforms. We will continue to watch the mix of monetary policies and Structural Reforms and what that means across the euro zone. Thank you so much. Head of Macro Credit Research. 12 people have been arrested in china following the huge explosions at the port in tianjin. They were detained on allegations of negligent and abuse of power. The arrests come a day after chinas ruling party sacked the head of its work safety regulator. Tributes poured in for two Television Journalists shot and killed during a live broadcast in virginia on wednesday. The gunman described himself as a powder keg of anger before fatally turning the gun on himself. He accused colleagues at his former work place of subjecting him to racial discrimination, Sexual Harassment and bullying at work. President obama goes to new orleans to mark the 10th anniversary of hurricane katrina. The president will highlight the areas recovery from the storm and cnbc who was in new orleans days after katrina ten years ago returns to see what improvements have been made and whats still lacking. All of this behind me, none of it was here ten years ago. This is a system of pumps and flood gates where the 17th street canal meets the lake to keep the surging flood waters out of the city. New orleans levies and flood walls failed in 50 places after hurricane katrina. Thats the reason so much of the city flooded and why so many people died. Since then the feds spent 14. 5 billion to keep history from repeating itself. The greater new orleans hurricane and storm damage Risk Reduction system literally sur rounds the metro area. It includes gates and pumps like the ones here at 17th street. Pumps that can fill an olympic sized pool in three second. More than 100 miles of levies and flood walls strengthened and rebuilt. And a massive area to keep out the gulf of mexico. Its almost two miles long, 26 feet high at a cost of more than 1 billion for that barrier alone. The army core of engineers said the overall system truly is state of the art. We have Many International experts from around the world to come and see those systems and we consulted with many of those in the design and construction of those. I like to say that we have become competitors with the dutch in doing this and we have learned a lot from them and now theyre learning a lot from us. We continue to coordinate with them closely. But is it all enough . Even a local Flood Control commissioner who is an engineering expert isnt sure. Most cities in europe have 500 to 1,000 year protection. 100 year protection is pretty minimal for a major urban area in the developed world. Experts agree if katrina hit today there would still be flooding, just not the catastrophe we saw in 2005. At least thats the hope. Im scott cohn in new orleans. Back to you. Still to come on Worldwide Exchange, commodity bears are taking a break though china concerns still persist is it fears or facts behind the moves . Well discuss the commodity trade right after this. Oonookn. . . . . . . o china woes on the back burner as a fed official fuels hopes that a september rate hike is off the table. From my perspective the decision to begin the normalization process seems less compelling to me than a few weeks ago. Oil rebounds after a weak session up nearly 4 . Basic resources the biggest sector gainer on the european market. It shoots to the top of the French Market after raising its profits goals. The drinks maker warns of a tough climate due to softness in china. A judge drops a lawsuit against barclays and major u. S. Stock exchanges clearing them of accusations for rigging parties for fast trading. Lets get a check on european markets which are in rebound mode. The xetra dax up 290 points. Ftse 100 up 2 as mining stocks out perform. Cac 40 up 2. 7 and the italian market also seeing gains. This just after wall street posted a 600 point move to the upside in the dow. U. S. Futures if you just take a look here on thursday are pointing to a higher open. Up by around 174 points on the dow and 51 points on the nasdaq and 20 on the s p. The leader of the s p 500 yesterday finishing up 5. 5 . It was techs best day since the 29th of march in 2009. Bio tech also playing a part of the rally. The etf index finished up just over 5 . Thats the best day since august of 2011. Now there was one tech stock and that was apple. Shares formed a death cross in yesterdays session. An indicator used by technical analysts as a sell signal. Apple is now off around 20 from its record high hit in april. Its trading in bear market territory. Go to cnbc. Com to get the full story there. Could apple spoil the party on wall street . The bull market cannot stay intact without the tech giant. Youll find that story in the pro section of our website. Were going to switch focus to oil and commodities. Their perspective and outlook in the world. It will remain highly uncertain in the second half of 2015. They say supply in the International Oil market will continue to be sufficient for the second half of the year. They also say the Global Oil Price is likely to keep fluctuating at a low level. And they anticipate that Capital Expenditure for the production segment throughout 2015 for them will amount to 193. 9 billion. Theyre also on chinas reform and they say chinas reform of Exchange Rate mechanism will be referencing the move taken by the central bank to devalue the yuan. They also say the growth of domestic demand for oil and gas will slow down and the Market Competition will get tougher in the second half of the year. Interestingly enough were seeing oil shares rebound about a 4 move to the upside for wti crude. In response, saudi stock index sharply higher as they rebound. So keep an eye on stocks in saudi arabia. Now the pressure has been on oil and metals which posted major losses over supply concerns weighing on oil while fears of a china slow down hitting precious metals. Gold has benefitted from the market turmoil a bit as people look like for safe haven assets. Lets get the word on commodities Going Forward with carolyn, senior economist at capital economics. Pleasure to have you on the show. What did you make of this weeks trading action and the impact its had on the commodity complex . We certainly think its overdone. Prices now are at levels we last saw at the debt of the global recession and by no means is demand at the same low level. So we think that its been fuelled by investors losing confidence in comod gattis as an asset class. Obvious through theres the prospect of rate hikes in the u. S. Or its on hold with this morning or last nights news. So the incentives for holding commodities as an asset class where investors appear to have diminished and we think thats exacerbated what is a longterm declining trending Commodity Prices for the last three years as china slowed. What do you think is the bullish view on metals . Brazil on the verge of recession. Russias economy contracting and trying to hold on. Are there those that are positive and see a turn around coming soon . Were one of those. We think the authorities in china have the fire power in terms of monetary and physical policy to enact enough stimulus to at least meet the growth rate theyre targeting. We probably suspect the current numbers are oversating the state of growth in china but as the stimulus starts to peek through we will start to see better numbers coming out of china and we think that will ultimately be the catalyst for quite a bounce in industrial Commodity Prices. And that rebound in the chinese economy that youre expecting, is that in response to the action taken by the central bank of china to stimulate the economy . Yes. We think so yes. And not just what we had. Theres the potential for more. The government certainly has the ability to expand fiscal spending quite marketedly and monetary policies is being eased as we speak. But there are some analysts including b of a that say theres only so much china can do in terms of rate cuts because theyre having to keep an eye on rising inflation. Theyre going to help with the battling with inflation. The Chinese Authority priority is going to be to keep employment going and to keep activity up. So they will be conscious of perhaps the more medium term problems involved in the stimulus and were not going to see stimulus like we saw in 200910 but we should see sufficient at least to pick up the economy from where it is now. Whats the dollar impact on commodities . The u. S. Dollar losing about 1 just this week given the uncertainty around whether the fed will, in fact, raise rates in september but weaker dollar actually good for commodities. It is typically good. With the dollar story weve seen a huge appreciation so far this year regardless of what happened this week and it has been a factor weighing on Commodity Prices because it makes commodities more expensive in consuming countries. In our view we will see paps a little bit more appreciation of the dollar but the main run of it is behind us now and the bad news for commodities is probably behind us as well. And in past episodes of rate hiking in the u. S. The dollar depreciation tends to happen before the actual event rather than after and certainly in our view we will probably see the first Interest Rate rise in the u. S. This year but theyre not going to be rising very fast. Its going to be a very gradual slow process over a couple of years so that shouldnt be too much of a negative backdrop for commodities. Where do you see oil headed from here . Standard chartered just put out their forecast. Wti crude averaging 48 barrel in 2015 and 58 in 2016 so theyre getting ready for a rebound here. We too actually. There is going to be a supply response to prices at these levels. Weve seen a massive drop in drilling for oil in the u. S. And the u. S. Would be the swing producer in this scenario. And with prices at these levels were going to see more supply cuts we think and the oil market to recover a little bit. Also the fact that oil prices are so low right now that well see a demand response in terms of more barrels being consumed. Of course how that skews the supply demand equation. Thank you for joining us. This was fascinating. Senior commodities economist at capital economics. Now a u. S. Judge dismissed a lawsuit against barclays and several stock exchanges that was inspired by michael lewiss best selling books flash boy. It accused them of the private trading venue giving High Frequency traders an unfair advantage. The plaintiffs failed to show their complaint was legally sufficient. Now in the past 30 minutes bwin party asked gvc to reveal its best offer for the online gambler. This comes as they battle it out to take over bwin party in the sector. 888 will be kept up to date on any developments with gvc but all of those three stocks posting gains in todays session. Still to come on the show, at a time of rapid change for the Insurance Industry we hear from the deputy ceo of axa france. Thats straight after this break. Dont two away. What do you got . Restrained driver in a motor vehicle. Sir, can you hear me . Two, three. Just hold the bag. We need a portable xray, please [ nurse ] im a nurse. I believe in the power of science and medicine. But im also human. And i believe in stacking the deck. [ female announcer ] to nurses everywhere, thank you, from johnson johnson. French Business Leaders and policy makers are gathering for the annual summer forum. Now chinese growth fears and the recent market turmoil are top of the agenda. Heres what some of the leaders are telling cnbc. The concern are very limited because in fact for the last five to six years now the Chinese Government has been very much concerned and worried about consequences of the Economic Growth of the country and therefore they have been taking steps in order to ensure better and better environment control which means more and more businesses. And i do not believe that the slow down were looking at or facing actually should be problem for the environment. Really i do believe well continue to grow. Locally it is clear that the level of the growth will as a result impact the level of employment and the global satisfaction of people, consumers and employees is important to china. Outside of china, china being a large economy so every change in the growth of china will have an impact. China is buying and china is selling so of course today we are lifing with several adjustments. But overall, if you compute correctly what imf is saying about the Global Growth, Global Growth will remain very positive in the years to come and china will not be the only one to influence. So of course, they are there and we have to cope and react. We are in a business thats very local and we have to adjust to the local constraints and we have overcapacity and how to cope with the future slow down of growth. Lets get out to stefan who is live at the medef business summit just outside of paris. Take it away. More comments regarding the situation in china. With the deputy ceo. Thank you for being with us. What is your sentiment about the weaker chinese Economic Growth. Good morning, stefan. The chinese situation was expected. It was not possible to see the chinese economy grow at the rate of 8 to 10 over decades. It was expected there would be a slow down of the chinese economy. What was less expected was the reaction of the equity markets of the chinese equity markets to this slow down. It seems to be excessive today. It will be interesting to see how the markets evolve over the coming months and what the reaction of the chinese policy makers will be. How serious do you think is the slow down . Do you think it could drag the whole economy in recession . If were talking about the World Economy i dont think the chinese situation will drive or lead to a slow down of the economy. Things are going rather well in most countries except for france and i think that there will be an impact but this impact will be limited. Lets talk about france. How strong do you think this is the french recovery . France has released disappointing figures with a 0 growth after 0. 7 growth in the First Quarter and disappointing figures as well in terms of unemployment because they show a stagnation of the unemployment level at a rather high level. All of this takes place in a situation and an environment where there were favorable elements. The first one was the low Interest Rate environment which is conducive to business development. The second favorable environment, element in the environment is the low oil prices and the 3rd one was the weaker euro. In spite of these elements, the french situation is not really taking off and this is reoccupying. Do you think the government should support the economic recovery when the Prime Minister says he wants to pursue Economic Reforms including the labor market . Is he doing the right thing . The government has made certainly positive steps which allows for Department Stores and shops to be open more often on sundays which is conducive to the development of Consumer Spending but two things are missing. The first very important thing thats missing is more flexibility in the labor market and i welcome the comment of the french Prime Minister to a labor market. It has lead to the increase of working contracts on the market and shows that it works. The second thing missing is less public spending. Less public spending would allow to decrease the level of taxization particularly for consumer and households and that would be good for the Economic Growth. What about the french . Its linked to the level of public deficit. As long as theyre as high as they are today the debt will continue to grow. The figures are impressive. By the end of this year the amount of the french debt will account for 100 of the gdp. But do you think well miss the deficit target . It really is difficult to make bets on what the policy will be. Certainly they will be extremely difficult to hold. Thank you very much for your comment. Seema, i sent it back to you in london. Thank you so much. I hope you brought your umbrella. Did i aproupronounce it right . Its cold and raining. Thank you very much. You can read more from our coverage at the medef forum on our website. More on how theyre coping with the china turmoil on cnbc. Com. The Malaysian Ringgit is hovering at 7 year lows. The ringgit is now the worst performing emerging asian currency this year shedding more than 20 against the dollar. So keep an eye on that. The dollar flat against the euro. Dudley said a september rate hike was less compelling than it was a week ago. Where does it go from here . Joining us now is the fx strategist at ubs. This market turmoil created an interesting perspective when looking at the currency market. Where with do you see the dollar headed from here because of course the weakness, perhaps part of the reason there is now more Market Participants arent expecting the rate hike until september now. You have to pick and choose. We think the dollar is going to be soft against the euro for example. Its probably going to hover toward the top end of a 110 and 115 range and theres plenty of upside from here. We think theres quite a compelling case for additional easing in q4 from the doj. So the u. S. Dollar sals expected to perform well against the commodity block currencies so you have to look for diverging markets. They want to make sure its not too much of an impetment in terms of how its going to hit its price target but for now theyll see how the u. S. Domestic situation is evolving and try to filter out the noise. That ripped through emerging markets. What do you make of it all and the impact in these high Growth Markets . Growth is an issue. If we look across asia, going back to japan, almost 20 of exports go to china so cheerily chinese slow down will have an impact across the region and also capital outflows across the region as well, thats going to constrain funding so its to keep the currencies relatively soft but not to the levels where you want to worry about balance of payments but if we had to pick probably want to stay techbsive on emerging market currencies in general but really hooking at crisis levels yet . Thats still farfetched. Weve seen it in a way we havent seen it in quite sometime. A lot of that being pegged by the recent move to devalue their currency. Should we expect more on the currency front . More is in the eye of the beholder. We think theyll be quite undervalued right now. We target year end toward 650. And pace is probably what people are look at more rather than levels so we do think theyre going to manage and the pace of depreciation. Well have to offset it but i dont think they want to rile markets but its about domestic expectations. Sudden moves might hurt it worse than any impact internationally. Theyll manage the decline but its going to continue to weaken. Which emerging market currency are you most bullish on . Well, bullish is a hard word to apply for merging markets right now. Just looking at clients and my feedback, the only one you kind of like now is the indian rupee but its stretched already. Maybe the mexican peso. But for now people are going to be on the defensive even if Risk Appetite picks up, the reference is to get back into shorts and add positioning there rather than go fresh longs. Well leave it there. Thank you for breaking down the trade when looking at currencies. Fx strategist at ubs. Have a great day. It was another roller coaster day on wall street with the dow posting the third biggest intraday rally ever. Can you believe it . Bob sums up the hectic session from the new york stock exchange. It started like yesterday with a 300 point move in the dow at the open but unlike yesterday we began rallying midday and we just kept it up. The issue was not much of a factor today. Wave of orders to sell stocks started hitting the floor in large numbers. They sold ahead of it and that exacerbated the sell off yesterday. That didnt happen today. The sell orders were relatively muted at the close. So is this the bottom . Its way too early to say. The floor was certainly happy to see a rally going into the close and on big volume but even though the rally held into the close traders continue to believe that the market remains sketchy and are not convinced that the upside is sustainable for the moment. Caution will be the theme near term. Cnbc business news. So is the august swoon over . Well, futures here on thursday pointing to a higher open. The dow is calling for a higher open by 217 points. Wow, this after the dow gaining over 600 points yesterday. Tech heavy nasdaq which is trading in correction territory up 55 points in premarket trade. S p 500 higher by 25. U. S. Major indices having their best days in four years. Ending the session sharply higher. Do you believe in the rally . Many traders have been saying this is a head fake. Ton donald saying yes because they flow to returns. Hes bullish there. Of course you can give us your tweets at cnbcwex. Im at seema cnbc and email worldwide at cnbc. Com. All right. Moving on. Mcdonalds says no thanks to burger kings proposal to combine their most iconic burgers creating a mcwhopper. They used print adds on wednesday adding its arch rival to do so to promote awareness of the u. S. Annual peace day. They wasted no time rejecting the idea. He says lets acknowledge that between us theres simply a friendly business competition. All right. Now if you had too much mcdonalds or burger king lately you might want to avoid the london zoo and heres why. Toads, camels, pen convince and eagles were all lining up for their weigh in. They were to get 17,000 animals on the scales to log their weight. Most creatures were bribed with food. They should do the same thing for the humans. Still to come on Worldwide Exchange, a Silver Lining for tiffany. Analysts praise smooth executive changes but the big impact will be china and the negative impact on the luxury players. Well discuss that coming up next on Worldwide Exchange. Welcome. Youre watching Worldwide Exchange and here are your headlines from around the world. Investors take a breather from the yoyo markets. Oil also on the rebound climbing nearly 4 . The feds William Dudley fuels hope that september lift off is off the table as economists push out rate hike expectations to september. From my perspective at this moment the decision to begin the normalization process at the September Fomc meeting seems less cll