I am francine lacqua. Manus it is. I am manus cranny. First, the global standoff. Shares plunged the most since 2000 seven. Francine that european stocks are down in the red. Commodity prices sinking to a 16 year low. Rest ine will have the a moment. Lets get at the very latest in europe. Caroline, take it away. Caroline disaster is what one chief officers calling it. We are seeing a major selloff. Shanghai composite, check that out. Down 8. 5 . The worst since 2007 despite moves by the Chinese Government to stem the bloodshed. They are trying to support with pensions. The rumors are reserve ratio cut to the banks that did not materialize. Down goes asia and the affect on your. We are in correction territory. And the effect on europe. We are a bear market. If we close at this level, we will between 2 of our previous high. Not one single stock is rising. Concerned about Global Growth and infrastructure. Bmw, feeling the pain. Credit squeeze saying that the auto market will feel much of the pain when it comes to chinese exposure. At the equity markets. On the stoxx 600, a sea of red. Not one single Industry Group is rising. On the downside, minors filling eling the pain. E technology is selling golf. Those exposed to asia, they are feeling the selloff. Some of those who sell into asia. And look at the commodities. No wonder miners and Oil Companies are falling. 45 for thebelow First Time Since 2009. Copper is selling golf. China, the second largest economy in the world, you see the selloff with the mining companies. Copper is currently lower. If youre looking at fx, all about the recalibration of one people think the Federal Reserve will raise rates. It has been pushed back. If you look at the Federal Reserve futures, people think we were not see it in september. 28 think we will. They used to be a majority and now pushing it back to december. The dollar is falling. That means it you are seeing the euro on the rise and the dollar falling and the yen and demand. A look at some of the bond market moves. A search forg for safety. Money moving into germany. 2 thely, the u. S. , First Time Since april. Meanwhile, the story in greece and the snap election being called. Back to you guys. Francine thank you with the latest on this market route. A big funk. Manus we saw the headline saying a bloodbath and that sums up the mood. To the epicenter. Shanghai. Greg, a good day. Another move and another new move to let Pension Funds by the market but to no avail. Yeah, i think the pension Fund Decision is a little bit off into the distance. Is not something that will immediately turn the markets around particularly after the yen devaluation. And disappointment about the reserve ratio you mentioned. Howe how long the low can the shanghai composite go . Greg turk well, that is a investorsnd certainly , the markets are waiting to see how the Chinese Government reacts and if they respond with measures like in july buying up chinese shares and buying up margin position to try to support the markets. And i think thats probably the government will Say Something in the next few days about this market route. Manus greg, thank you very much. On at the latest from shanghai. The middle east with a dubai stock heading to a bear market on opening. Potter is standing sam potter standing by. Beginning in asia a yesterday was a hard day. How bad is it looking this morning . It started out pretty bad after falling 7 yes yesterday. 7 tever may indices dropped yesterday and today more than 6 at the open. Things have come down a little bit. At one point, dubai had erased all of the losses a short time ago when i stepped away it was a little bit to down. Broadly speaking, negative across the board. But, red lights everywhere else. Francine can you explain to us . We saw this big, big drop. And we are recouped some of the losses. Is it because they are expecting an opec meeting and maybe prices to be kurt held . Curtailed . So. Potter i do not think it is likely investors were calculating the losses were overdone. I mean, a lot of Retail Investment locally. As a lot of people have confidence in the Companies Listed here when they see a selloff of the scale we saw, probably natural they will calculate valuations that looks stronger now. Perhaps trying to buy back in. Is opening andt that seems to be a bell for the middle east and will be interesting to see. The global consequences here are fairly substantial because you have the uae who joined the msci last week and saudi opened for foreign global investing. This has got a global ramification . Sam potter definitely. Saudi has qualified Foreign Investors. A couple of months ago and that means investors can now trade directly on the saudi stock exchanges, the biggest in the region. That was supposed to be a big moment. Web seen very little we have seen very little excel decline sprint uae mainly as you mentioned, members of the emerging index. Show these to markets have been developing and maturing and everyone thought positivesci would be for saudi opening to Foreign Investors and nothing but good times. In truth, we are finding out exactly how vulnerable we still are especially in this region to oil prices which is a large part of the driver. First bank thank you so much. Greg turk in dubai and sam potter. Francine thank you so much. Big fall and recouped some of the losses. Another story. Us to ourt takes twitter question of the day. Where do you put your money . A little bit of flow into the euro. Into the yen and swiss and gold has moderate. In europe, the first time in february, it has strengthened to 1. 15. We saw little bit of stress. The havensis one of where people decide to put in that move money. What does it mean for the fed . What are the questions for the day. Manus Patrick Armstrong joining us. These moves in a equity markets, are we mirror itself bottom or the beginning of a much bigger downturn . PatRick Armstrong probably toward the bottom done a downturn. We have been short on equities. Thursday and friday last week, we were trading at 2000. Ist we started to do shortened u. S. Treasuries. Yields at 2 and below this morning, we think it is an area obviously investors are flocking to because of they are scared. Bubble 1. 5olin did a weeks ago. 2 10 year yield is not a good investment. Maybe a panic place to go. Greenspan calling it a bubble 1. 5 weeks ago. The fed will be raising it and hiking. , as he willke that. 25 and that will put 10 year treasuries higher. Francine the number of people will expect the rate hike in september is slowing down 24 . PatRick Armstrong i think they will do something cute, 15 basis points. To a yellen, she says it is gradual and not like the past and not do it every single month. To reinforce the message, i think she may do 15 basis points to say we started in september and not have an impact on the economy. It is symbolic. Manus our new word. Our new word is cute. The u. S. Equity market and this is what i want to understand, the u. S. , the biggest weekly drop since 2011. European stocks, volatility is ramping. Patrick, try to make sense of this. Hike . , cute rate Rick Armstrong growth some growth in the United States bring into haiku does not mean anything but symbolic, i think. In the United States and the but does not mean anything symbolic, i think. Valuations, the prices, not the way they were a few months ago. I have been short since the last few months. 25 times earnings. 70 on the s p. It is a times the value. You do not have valuation support. Europe has always been up to say it is getting neither expensive but incredibly cheap versus bonds. I do not know in the u. S. You can say that but in europe you can. And participated in the global recovery. First debate when you say you want equity exposure, talk to me about selloff . A panic selloff are something more fundamental that underpins it . PatRick Armstrong a bit of a panic that china is the end of the world. I think it is still growing. And you are seeing companies being chopped off because they have exposure. Francine it is a panic mode, what makes you say that tomorrow or the day after will not get worse . Where do you call bottom . PatRick Armstrong you do not have the valuation support in the u. S. I am happy to buy europe very soon. Maybe today we will start buying again. That is the industrials that have been hit hard and they are trading at a times earnings. That is fair. Youre in the midst of a cyclical recovery in europe. The pmi, very strong. You have weakness in china which most people knew about. They were pricing and the 7 growth potentially. Not a hard crash i do not think. A slow down and the next leg up when china starts doing fiscal stimulus. 14 trillion and a huge warchest. The Monetary Policy onside and they have done reserve requirements. Next is fiscal stimulus and thats the catalyst for probably the end of the commodity rout. Asian equities at that point. Manus it looks like throwing everything at us. Stimulus, why not . You will stay with us. Patrick, chief investment officer. Francine what else is on our radar this monday morning. Brent crude has slipped below 45 a barrel since 2009. It will expand output at any cost to defend share prices. Manus the south korean president have called north korea to apologize of what he and exchangeation of fire over a heavy fortified border last week. Negotiators have been holding talks to try to defuse the latest tensions. Kim jong on has stepped the mobilization of forces, dont leg the number of the doubling the number of units. Turkey as heading to elections for the second time in less than six months after a party miss a deadline. It will take place on november 1. Political wrangling has been a comedy by escalating has been accompanied by escalating clashes and violence spilling over into syria. Manus likely to see the star of greeces start of greeces general election campaign. Three days after creating a new political party. With one of the parties key players acknowledging the agreement is unlikely, greeks are expecting to head to the ballot box in september. For the bank how low francine how low can oil go . Our guest host also stays with us. Manus welcome back to the pulse. Webzine european oil and gas extending to 2015 low. PatRick Armstrong is here. A lowly path. Oil will. , wti starting at 40 bucks. What is your view on these commodities . PatRick Armstrong i wish we were still short. We were short on talibans ago. It may have reached the bottom. We were short on till a month ago. It is not coming from a demand weakness which a lot of people are interpreting that oil is falling golf because the chinas economy is imploding. Thats a lot of production. It has not moved yet. It is something keeping oil depressed and probably will continue for the next 69 months. I do not the oil jumping higher in the short term. Notice and as probably sustainable. A lot of production cuts. Francine lets bring in our chief energy correspondent. Er, we talk about oil day in a day out. A seems a everyday we have new puzzle. Iran said they would do everything to keep market share. How much of oil will come to the market . Vier we have expected iran will do this. Lifting by the end of the year and iran has considerably said we will try to return market share. Talking about it immediately and whatever cost. That is a very important area and the past, market analysts have expected iran will be careful not to flood the market now. Iranians making a clear statement if prices go down, we will return to previous production levels at whatever cost. Thatsage to saudi arabia if you do not make room, we will drive the price down. At a commodities are now 16 year low, patrick. We talked about your seen the commodity miners. From your perspective, are we overstretched . Oversold on some of these markets . PatRick Armstrong we do not have any position and the oil and gas right now. It is oversupply of cross of the whole complex. Oil and gas is something i started investigating last week. It is so negative right now until you get to a point where basically gets in line with the legalities, i am not inclined to be a buyer yet. They have been hit hard. Andou want to call bottom commodities, you probably get a lot of leverage. Francine youre talking about oversupply which is clear. The oversupply of the last three or four years . Oil, itarmstrong for gets resolved in the next year. The Global Economy is ticking along. Europe growth in u. S. Growth and emergingmarket growth. Demande to see market and grow. A lot of spies and the short term. Manus all jury a in liberia and venezuela, out urea and liberia, and venezuela , is there more tension in opec . Samer blas at at the time, iran said we will not oppose an emergency meeting and will increase production. It seems like a production cap. I dont see it much change from last week. We will not be going to any capital any time soon. Thinkot think the saudis their strategy is not working. It is taking time. They said it openly, it is not for a few weeks or a few months of probably the next two years. Theill have to wait until next opec meeting in december in vienna and probably what the saudis will say is more of the same. It is going to continue. Francine thank you for that. Javier blas and Patrick Armstrong. [indiscernible] oil. L on he expects the at 105 by the end of the year. Manus the latest from london. Commentator jasper joins us. Give me a sense of how much margin call there is going on at that is provoking a great deal of this selloff in equities. Is it behind it or most of the margin calls mixed . What is driving it . Jasper that is certainly an element. ,hinese markets for example stocks are down as some of the same and european equities and we have been in a bull market for so long that people are leveraged. And some of that margin and leverage is coming out and that is exacerbating the declines. You could argue it is summer lack of volume and the market adding to the volatility. Both of those combined, extreme downside. Francine what is the mood like on the Trading Floor . Our people bracing for more or call and get a bottle . Or calling it the bottom . Jasper lawler well, from shortterm trading, it is excellent. A lot to traders positioning for downside in the market and go actively short. Obviously, all so looking back over their longerterm equity is a concern just on that front it could be the beginning of one of these declines with him looking toward. One of the big ironies is you 10 styleng for these corrections just a you can buy into the markets of value. When they take place, people are afraid to buy in. Francine thank you for that. Jasper lawler. Patrick, before we let you go. You have a call on your. On the bigr take drivers. Will europe continue to rise . I do notrmstrong think so pretty talked about margin cost and things like that. You have risk aversion now. Of technical risk aversion right now driving it higher. The policy will drop in that and a weaker euro. The ecb is ready to do extra things. People are worried about the said delaying rate hike. If things get terrible, the ecb will not sit around. Francine there is qe and also a rout. How much more can they do . They canrmstrong increase qe and things to help the banks to promote lending. There are things they can do. People are more thinking about that the fed and they will not hike. Be there. B will the next wave of liquidity. Francine patrick, thank you. Our special guest. Manus all about commodities and the chaos. The index trading. We will have a little bit more investigation on that. Get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swifts music videos, interviews, and more. Xfinity is the destination for all things taylor swift. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Francine welcome back to the pulse. I am francine lacqua. Manus i am manus cranny. Our top headlines. The week is likely to see the start of a greeces election campaign. Will first get an attempt at form of the government three days after creating a new political party. One of the parties key players acknowledge an agreement unlikely. Greeks are expected to head to the ballot box in september. For the bank brent crude and slipped below 40 five dollars a barrel for the First Time Since 2009. 45 a barrel for the First Time Since 2009. It drop more than 7 last week. Manus the global selloff is steepening. Emergingmarket currencies have dropped to the weakest levels on record. Commodity prices have hit a 16 year low. Francine the latest on the market moves with caroline hyde. It is a bloodbath. Caroline it is, five trillion dollars worth of valuation. And it keeps going. Completely andre is a read. Not one single stock rising on the dax. It is a bear market. 40 lower than the highs previous of this year. Folic utilities. The key area of concern is Global Growth. Falling utilities. China in particular. The second biggest economy in the world having the slowest growth since 1990 . The metals and grains and the miners falloff at commodity related. Nd correction territory not one single stock and drug green and everything in the red. One stock that is in a drug green and the whole of the stocks its in the green and it is spain. It is up 6 . Tobacco. Wills a new contract and be building in europe and the biggest shareholder is being prepaid alone and shares to be bought on the downside. Blood