tv Bloomberg Markets Bloomberg August 21, 2015 2:00pm-3:01pm EDT
world enter correction territory. >> a veteran trader tells us what is next after emerging market currencies collapse. community is ne trying to improve its estinations. good ann, i'm mathieu here with scarlett suh. scarlet: t.g.i.f., if you look at how stocks are performing right now off our sessions lows, you can see losses of at least 300 points, now 282 on the dow industrial, the s&p 500 almost at 2,000 even, the nasdaq down by almost 80 points. come inside my bloomberg terminal. certainly this is not limited to the united states. this is the world index, the
first red arrow is when japan opened for trading. the next arrow is when europe opened up for trading. the last arrow right there is when the u.s. market opened for trading and of course we have gone down further since then and we are looking at an ugly day once again for anyone who is long on equities. if you look at what is going on in treasuries, risk off means there is a pylon into safety trades. you have a higher price which means a lower yield on the two-year 63 basis points, a 10-year, 2.06%. treasuries are set for the best week since march. you would think that risk off means a stronger dollar. that's not the case. we have a weaker dollar versus the euro and the yen by at least 1%. the dollar is gaining against commodity currencies like the canadian dollar. this is a new era of safe havens. in commodities, red all around, down, down, down, falling below $40 a barrel.
matt: except gold. scarlet: it came into favor after the yen evaluation and traded at its highest since early july. matt: it was down this morning, but back up right now, so shout-out to the bugs. now, let's get a look at the top stories this morning. a key democratic congressman has decided to back the nuclear deal with iran. gerald nadler of new york agreed to support the deal after receiving a personal letter from president obama. the president wrote that the u.s. military could use form if iran violates the agreement. nadler represents the congressional district that has the highest degree of jewish residents in europe, he was tough to get. scarlet: deer cutting its profit forecast for the full year. lower crop forecasts are making it hard for farmers to buy machinery. >> you would have to argue that it would be down even more than
what just the single year over year implications would be. what i would tell you that given that outlook in cash receipts, given what we're seeing in the very early stages of our early order programs, it is likely that you would see some reduction, further reduction in large retail sales next year. scarlet: corn prices have tumbled since the record high in 2012. last year deere cut hundreds of jobs. matt: payrolls rose in 34 states last month. california added 81,000, texas with 31,000. states that lost jobs include new jersey and north dakota. scarlet: deutsche bank has been investigating money laundering at its russian unit whether a senior employee took bribes. unexplained funds were found in accounts controlled by the employee and the employee's
spouse. deutsche bank is not commenting. matt: raising the forecast for fiscal 2016, the c.e.o. couldn't have been more bullish. >> as you can see from our strong results, along with the incredible momentum we're having with our customer success platform and our sales and service and marketing, community, analytics apps, we're on a trajectory to deliver $10 billion in revenue faster than any other software company in history. did i mention that. it's been a phenomenal first half of the year. matt: sales force spent the last two years developing products for marketing, corporate social networks and data analytics. scarlet: two seats on the board of cisco. they have taken a 7% stake in the company. they have said that siso could improve its margins and should consider borrowing money to return more capital shareholders, do it quickly
before rates are going higher. those are your top stories. matt: for the first time in four years, seeing the worst weekly drop in three. scarlet: prices led by oil and trying a surprise decision to cheapen the u.n. are deepening this decline. central banks vying with each other to reclaim competitiveness through currency evaluations. for more perspective, we bring in jim. put this decline that we're seeing in perspective for us as we close out two, three weeks of losses. is the selling marked by panic, is it orderly? jim: so, i think china is a country of unknown unknowns. so we know that the data coming out of china is basically tampered with by the officials there. basically they think it's a public good. so we don't really know where china is in terms of production. today we got data that basically said that the
manufacturing sector which is really the life blood of china is contracting at the fastest rate since really before the crisis. that was the first hard data that we have seen on the back end of clues that things are worse than we thought they were. the antics of the chinese government were playing with the stock market a few weeks ago that things might actually be pretty bad. that said, if we dig below the numbers, growth in china might go from 7% this year to maybe sort of mid 6's next year. that's still pretty good if we look at the u.s. if we're lucky to get 3% growth out of 2016. put it in context, chinese growth is growing but still growing relatively quickly compared to the rest of the world. matt: it's not about the absolute growth number, is it, jim, a stock that you buy, it doesn't matter if the company makes a lot of money if you are expecting it to make a lot more money and so were the over investors. jim: let's pull back a little bit and look at valuations. i can buy stock in china or look at emerging markets generally.
if i look at the index, i can buy stocks at the emerging markets at one-time sales. i like sales, no shenanigans accounting. if i'm looking at the u.s., 1.8 times sales. it's more profitable than chinese government, but a 50% discount on e.m. stocks relative to u.s. stocks. as i look at markets globally. emerging markets appear relatively favorably prices. if i can buy a stock in china for 50% of what i can buy the same stock for in the u.s. and the u.s. is growing at half the rate of china, that seems like a pretty good long-term value. i'm not saying there is short-term market volatility. that's what you are getting paid for in emerging markets. if i look at the meaner version in general, asia, specifically china is probably a pretty good place to be. scarlet: i get the long-term argument. do you believe there is a paradigm shift in the market right now? there is something that people were comfortable with and the
ground has shifted underneath them. what is this new paradigm? jim: so the question always when you're looking at a value stock or a value situation, is it cheap for a reason or is it cheap for the moment because of fear? if we look at what is going on in china, the fundamental drivers of chinese economic growth are, basically rule of law. china was a country that didn't have rule of law, didn't have property rights, those are moving forward. what we might not necessarily like the fact that the chinese local markets are relatively volatile, they're developing and becoming more of a place where want toll can get deployed. the fundamental tenets of building a market driven economy are in place in china. if you look at the shift from an investment-based economy which is what china has been for the last 25 years to a consumer-based economy, that is going to be the trick as to whether or not china can continue to grow and above worldwide trend growth rates. what we think is happening, with the devaluation of the currency, they're trying to spark some internal inflation in china to the chinese people
who tend to be safers like japan actually take money out of the bank and buy stuff with it. once the chinese consumer is unlocked, growth can be sustained for quite some time. scarlet: that is down the road, you have a round of competitive valuations or countries trying to cope with this new world, whether it is vietnam or kazakhstan. what are you looking as the next country or countries to devalue their currencies? gym: certainly you have to look at the export-driven economys that are located primarily in east asia. look at malaysia say, it was one of the least volatile in the world. you're looking at currency volatility in malaysia pick up pretty dramatically. malicia, thailand, vietnam, indonesia, they are getting hurt. if you look at the impact of the slowdown has had on commodities, that's the real story. we look at oil around $40 a
barrel, at its base in 2009, will people still be driving cars, oil was at $35 a barrel. we have dropped pretty dramatically. if you look at globally of the cost of actually producing oil, basically 80% of the world's proven reserves are uneconomic at $40 a barrel. i think what is happening, there is a short term panic, a short term devaluation. that devaluation and panic will subside. you'll see that growth actually continues in these places, but actually the commodity investment that had been so strong for the last 10 years ha fallen off. when they stabilize and growth will continue, albeit at a slower rate, i think commodities tick back up because ultimately we're going to be underinvesting commodities over the last 12 months. that investment is likely to continue. matt: jim, are you buying commodities here, chinese companies and commodities? jim: it's interesting, we're holding our cheans companies in emerging markets position.
the primary reason to hold commodities is less because their cheap and more because the best opportunity in the u.s. market in the last couple of years has been in long duration bonds. most investment advisorses have advising clients because of fear of inflation and rising interest rates. having commodities in our portfolios, we keep our duration a little bit longer. that's allowed us to actually benefit from having benefit from the falling rates that we have seen basically since the crisis. so as a result, we think commodities, they might go up or down, there might be more volatility in the short term. but having them paired with a long duration portfolio, over the long term you will win. scarlet: still ahead, we'll dig further into emerging markets and look at which e.t.f. can help you navigate the violent selloff. ♪ ♪
matt: check it out, there is a view from the roof of our a lding here at 731 into fairly warm manhattan, 78 degrees outside and it looks like we're going to get a little bit of rain over the weekend. scarlet: like 99% humidity. matt: exactly. right now it's quite raining. the water is hanging in the air. tomorrow it will droplets out of the sky accompanied by thunder. scarlet: thank you for the weather report. matt:, i have a future. our top stories, the president of the federal reserve bank out of st. louis says the
unemployment rate will probably fall into the 4% range over the next few years. jim also noted that a lower jobless rate will put more upward pressure on inflation and it will be a long time before the rate is at 3.85%. obviously a very long time. scarlet: a long time indeed. the internal revenue service is being sued by taxpayers over the massive data breach. the lawsuit comes after the agency revealed that thieves stole tax information from 33 million taxpayers. hackers had gained access to 100,000 accounts on the website. the two women will eventually seek to have class action status. matt: defends the way it manages and spends it's endowment. yale overpays its investment fund managers at the expense of students. yale said the criticism was based on speculation and it provides students with extraordinary support. those are just some of the top stories we're following you at this hour. scarlet: and, of course, a big
story, the main story that we're following is the meltdown in equities. let's head over now to bloomberg's julie hyman. julie, when i look at volume, there is quite a bit of it. you would not think this is late august on a friday because trading, 100% above the 10-day average. julie: that really indicates the level of panic you could argue in the markets here or that perhaps we are seeing what traders call capitulation, this sort of exhaustive selling here. that will be borne out by the next several sessions, not by what we see today. the average is up low to the session, a sharp selloff we are seeing. the russell 2000 dipped into positive or i should say rose into positive, so we'll see if that holds through the close of trading. i want to look at the s&p 500 for the week. we are setting up for potentially the worst week since 2011, november of that year, down 4.2% on major averages. really we're seeing this whole rollover in u.s. stocks today and this big risk aversion. i do want to mention, though,
in terms of what we're seeing and there didn't seem to be a very sharp catalyst, although we did get chinese manufacturing data out overnight, take a look at the price to earnings ratio on the s&p 500. we are seeing it down a little bit because of the selloff over the past several days, but still at about 17.7, it's above the five-year average. so people essentially have been paying more and still are paying more even after the selloff for earnings they're getting from the s&p 500. there is another way to put it. that is by looking at the yearnings yield of the s&p. actually, i got to say, i thank the upshot neil ervin in the "new york times" who highlighted it in a story today, how much bang are you getting for your buck, how much earnings are you getting from the s&p 500 for what you're paying. as we have seen earnings decline to some elf tent or wane in some groups like energy and stocks continue to go higher, you are getting less earnings for what you are paying for the s&p 500.
so when you look at the selloff that we're seeing, some investors and some strategists going into it have been saying we're looking for a correction. we're looking for a pullback in stocks in part because of indicators like this. i also want to point out, the high flyers that we have been seeing for the year are pulling back particularly sharply. netflix, for example, which is still more than doubled for the year it date and the best performer in the s&p 500 down sharply over the last couple days. semiconductors entering a bear market. biotech entering a correct and these are the stocks doing very well, not just this year really but for the past several years. matt: how did you get, the earnings yield chart is fascinating, how did you pull that up? julie: i had to get a little assist from the stocks, g.r.e. is the function on the terminal. you use a lot. you go to earnings yield. you have to do some playing with it. scarlet: you got to manipulate it. julie, thank you so much for tutorial on the bloomberg
terminal functions, check her out at bloomberg.com. matt: i learn something every day from julie's bloomberg experience. scarlet: something else that we all have learned this week, this month is there is very little love for markets, currencies, debt or equities. matt: when you strip out the effects, performance improves. it's rare because the cost of the hedge is so expensive, but right now -- scarlet: people are willing to pay it. currency hedging has been a developing theme in developing markets, japan and europe and appearing in the emerging market world, too. we're bringing in bloomberg's senior e.t.f. analyst. eric, tell us what you looked at and what you found. eric: there are 40 of them, 60 billion, 1% of those assets is emerging markets currency hedged. this is a developed market play. the 1% are taking in money.
they're split between two of them. one is the deutsche bank merchant markets and ishares. they do the same thing. they give you exposure similar to e.m. except they hedge out all of the currency effects. as you know when you make money or lose money overseas and you have to convert those gains to dollars, you get crushed right now. matt: what are we looking at here? this chart has in orange, the hedges, and in purpose, mexico, a lot of words and letters there that don't make a lot of sense unless you're a pro, right? eric: i'll give you the numbers here, that's the mexico one. so basically both are down. everything is down. it's just that the currency hedge versions are down a lot less. in the case of mexico, you're looking at a 16% differential. the currency hedged mexico e.t.f. is down 12%, i'm sorry, that's brazil, is down 1%. the unledged is down 11%. if you take it to brazil or
south korea, all of these cases, the currency is so slaughtered in the emerging market, you're down but less. that's what you're saying. matt: they're still losers, how encouraging is that? scarlet: it's encouraging if you're investing in growth over the long term? eric: this highlights the difference between the developed and emerging markets. here they both go down. so this is maybe not the most obvious trade, but what people will say in terms of a long-term allocation, the volatility on the currency hedge products is 30% less. it's way less because you don't have the impact from converting your gains to dollars. matt: i'm souping it's been a very popular trade over the last couple of weeks especially. are there price discrepancies that occur when investors pile into an e.t.f.? because it's not like piling into the underlying asset, right? eric: that's right. when investors pile into an
e.t.f., that sends the price above the n.a.v. sort of the secret sauce to the way e.t.f.s work, they'll basically sell the e.f.t. and buy the underlyings. that process keeps the price of the n.a.v. together. that's how it works. you will see bump up in price if will is a lot of demand. matt: very cool. scarlet: thank you so much for that. coming up on "bloomberg markets," an american rock star in china. why bon jovi is covering a classic love song. ♪ ♪
♪ ♪ scarlet: the song is a very amous love ballad and bon jovi released the song to celebrate the chinese valentine's day. matt: here it's not the same exactly story as valentine. apparently somebody who is a lowly being hooked up with like a sky we'ver or some kind of goddess. scarlet: the woman in the moon. matt: as punishment, they're allowed to see themselves on the seventh sunday. scarlet: doomed not being able to see each other. matt: one time a year you can see each other. scarlet: unrequieted and don't have access to each other. this is very popular. my parents, their generation, they all sing it and know it. it's a big favorite for people who go karaoke, too. i sing it at karaoke because it's a crowd favorite
certainly, but the woman who sang it originally, she was a pop star. they all loved her. i thought his pronunciation was ok. props to him for giving it a try, it sounded more gritty than it should be. it should sound sweet and melodic. he gave it extra grittiness. tt: he is a heavy metal rock star. slippery when wet is when i got into this band. the what, that was the name of an album? scarlet: slippery when wet is the name of a bon jovi album. thank you very much. we have much more coming up including more markets coverage. ♪ ♪
i am scarlet fu. in turkey, the president is gearing up to call for elections. an attempt to call for a government made political worse.ns even the yield on government debt has soared as the price has plunged. over in greece, they are using consolidates to power. alexis tsipras said he would quit and called for elections. eight been in office just months. he was elected on an anti-austerity platform. tsipras: greeks, women and men, i want to be absolutely honest with you. deal weot achieve the were hoping for when we were elected in january. we did not get the reaction we expected. given the overwhelming negative
correlations in europe, and given what we inherited in terms of the memoranda austerity measures, that was the best one that could succeed. greece could hold an election as early as september 20. the president of china may shift emphasizeties to population growth over gdp. last year, the working age population in china declined for the first time in two decades. china puts a cap on the number of children families can have. warehouse explosion killed at least 116 people and contaminated the area with toxic chemicals. investigators have detected levels of cyanide 350 times be beyond the level -- safe level in the immediate
zone. cbs, disney, time warner and others saw declining shares this week. joining the decline now is netflix, with its biggest drop in 10 months. joining us to discuss this and put it in perspective is paul sweeney. is they were going to be hurt by core cutting and netflix would benefit, but now netflix is joining. what does that tell you? paul: we are seeing a lot of names that are ordinarily great performers. i think netflix is simply getting caught up in this bad market. lastre right, just in the couple of weeks, media spots have sold off ready much of across the board. netflix was seen as the antidote -- pretty much across the board. netflix was seen as the antidote. growing subscribers
and revenue. netflix was seen as the beneficiary. scarlet: if it's a zero sum game, netflix benefits at the expense of the traditional guys. having said all this, there is a bit of a re-rating going on in the media sector overall. paul: the media or, really since the financial crisis, has out -- media sector, really since the financial crisis, has outpouring -- outperformed the markets pretty consistently. the whole concept you mentioned about cord cutting and what that the cable television business and relying on affiliate growth is coming from the comcast's of the world. if your subscribers are declining, that really affects the growth you can get from your affiliate fees. even espn, the juggernaut, saw andr subscribers,
therefore, disney had to lower their profit outlooks. is all: the other thing of these media companies have been spending quite a bit on programming, netflix and amazon included. was quoted as saying there is simply too much tv out there. scriptedthere were 280 series. that number could surpass 400 this year. when we talk about the possibility of reaching peak tv and the golden age of television, do these companies make money off the dramas that cost so much to produce but give them credibility and critical acclaim? paul: you are right. we have seen a tremendous growth in original programming. historically, channels like usa and tbs were showing reruns of network shows. now netflix is creating original
content like "house of cards or "-you can no long -- house of cards." studios andywood production companies have to think about their production budgets in a world where pay tv households are declining. to pay as muchnt for television. and maybe netflix and hulu are not quite the answer as far as buyers of my product. is aet: clearly, there structural decline at work. do you think there may be a cyclical component? paul: add spending is a cyclical business. we have seens, weaker than expected ad spending in a u.s. economy that should have low single digits. investors are stepping back, particularly at the upfront ad sales.
they are down by 6%-7%. more than as it is cyclical story. it might be a secular story about where consumers are consuming and where advertisers might want to advertise to reach those consumers. scarlet: a big adjustment for everyone invested in the media sector. paul sweeney, thank you so much. bloomberg's media analyst and director of research. coming up in the next half-hour, currencies continue to collapse, particularly those in the emerging markets, against the u.s. dollar. a veteran currency trader tells us what that. driving a board game renaissance. we will tell you how much is being generated by this revival. and giving back to the community by going to the beach. we will tell you about a new trend. ♪
plunge, what country is next? >> the dollar has been plunging against major currencies, and it has been plunging in a risky environment. that is not supposed to happen. there is supposed to be a flight to the dollar, a flight to safety. there are ripple effects in emerging markets. there are two reasons the dollar is weakening. one, it was rising, so now we are on the tail side. that the euro has been used as a funding currency it to hedgere using their bets. it is not just the kazakhstan currency that is down. the dollar is also down. pimm fox: so what is the best trade right now? sure to the dollar, go along --
long on the euro? >> we like the swedish crown right now. it has had a surge in recent days that might be tapering off a little bit. the main thing is things are not going to play out the way you think they are going to play out. fox: so, go long on the swedish krona? >> yes. in the coming months, i think we will see the swedish krona significantly outperform other currencies. if we do remain concerned about currencies in , do you think we see another countrywide knits trading ban, abandon it completely, and that results --
widen itsde in -- trading ban, abandon it completely, and that results in a total devaluation? >> sure, the chinese have thought a lot about debasing the currency. they are doing what nobody else is doing. they are moving toward a market regime. it plunged a couple percentage points, but it did not fall off a cliff. they want to be part of the sdr. that is the next step. there are a lot of positive things happening there. in a sea of volatility, china is going to be call him -- calm compared to the rest of the emerging markets. i am an investor in their product and i would not be an investor if i did not like it. if it depreciates a bit, you pick up a little extra yield, so
a little depreciation doesn't hurt. as the dollar is weakening, you want to be somewhere as the yuan is added to the basket, which we think is going to happen. itm a formalized timeline, might only happen in september in a year. there is going to be interest in the yuan. ultimately, it depends on if they open up the markets. i would rather be in the yuan .han other currencies pimm fox: does it matter if they raise interest rates in september or december? >> it matters that they are behind the curve. that is why gold is going up. whether they do a raise in september or december is insignificant. they are behind the curve, spooked about what is happening in the markets, and ultimately, that is going to be bad for the dollar and other major currencies. scarlet: currencies have huge
implications for the rest of the asset classes, including commodities. speaking of commodities, it was an ugly week for anyone long on energy. me now is alix steel. how bad was it? an ugly week for oil. alix: longest run of weekly declines since 1986. some analysts had been calling for this, but we had not seen it yet. it pick up a little to the downside today. a little over reaction. we only saw two oil rigs being added. cute furred and permian some of their production. the rigs are starting to respond to the low oil prices we have seen.
however, bloomberg came out and crunch the numbers and predicted that inventory growth would average 150,000 barrels a day in the fourth quarter and we are going to hit tank tops in the fourth quarter in oklahoma, in the midwest, as refiners go to -- to maintenance. they are processing less crude. refineries are going to be taken off-line in the fall, and that could be very serious. it is going to spell disaster for oil prices. up what you's link just told us with what we know and the chinese currency devaluation. economy andowing evaluation. demand is not there. alix: it's what we are all talking about. today, the capital economic took a look at china versus copper prices. basically, they have moved into and him. away is that weakness
in china is already priced into copper, not that copper is china.ting weakness in just because we are seeing copper at a six year low doesn't mean copper is going to fly off a cliff. they took a similar point of view when it came to europe. if you look at the euro zone pmi, manufacturing data versus oil, for example, emi is holding up and oil is falling off a is holding up and oil is falling off a cliff. someone fromheard bank of america saying that it might soon be time to buy a dip in commodities. scarlet: i feel it we have heard that a lot but it has not come to pass. alix: biting the dip? buying the dip? scarlet: yes. tox: well, we will have
figure out what is the catalyst to define the bottom. scarlet: alix steel, stay with me for one of your favorite topics, board games. they are seeing a major resurgence thanks to kick starter, the crowdfunding website. it has helped push board games the phenomenon is only getting started. you are a big board game nerd. not mince words. you are into, what? settlers of kittanning -- cataan , which is a race for resources. alix: my husband and i play a lot of stuff. we play a lot of settlers of cataan. it is a cult phenomenon. if you find someone who plays like, oh myu are god, you settle.
it is complicated, but there is strategy behind it. what is fascinating about this sort of world is that it has amount ofhuge activity in places like kickstarter. a lot of startups have tried to make better boards. contributed toi this campaign. that board is a campaign, and we bought it. there is another one that deals with metals. there is another one on order that is made of wood. there is a whole world of game trickle down. if you take a look at kickstarter since it launched, games have made $196 million. scarlet: pretty remarkable. a lot of german companies are behind that. by the way, shameless plug, your
daughter wore this. alix: she settles. this was a gift. she was like two weeks old. that we would totally pay $20 for something like that, for sure. cards against humanity, for example, is a game we play. that's a kickstarter, and that raised $15,000 in 2012. there was a shortage because it was so popular. the price went up like threefold on amazon. scarlet: supply and demand. alix: subtle, subtle. i am playing tonight. scarlet: thank you so much. we have a lot coming up on the bloomberg market day. we are keeping an eye on equities. community service, how one resort is trying to improve
scarlet: breaking news. we are keeping an ion the selloff in equities. it looks like declines are deepening in the last 20 minutes. few minuteshe past or so, the dow jones industrial average has turned even farther downward, now down past the 400 down.400 10 points this is a change of nearly 2.5 -- 410 points down. this is a change of nearly 2.5%. energy and financials trending the nasdaq and s&p as well. we will have more news as it comes. a look atust taking
volume, we are seeing trading in dow industrials stock up a 100% from the 10 day average. there is a lot more participation in this selling. usually, when there is selling, volume picks up. that is consistent. anyway, we will continue to keep an eye on the markets. let's take a little bit of a detour and talk about vacations. when you think of vacation, you don't necessarily think about how to help the vacation -- help of the community you will be vacationing in. at that is what makes this indonesian island is so special. not only are you in a world-class resort on the edge of the wilderness, proceeds go to a foundation that provides humanitarian aid to the natives. joining us now is a founding partner in the resort.
is socially responsible tourism. >> absolutely. when people travel today and stay in remote places where people may be very poor, giving back to the community is a very important experience. you want luxury, but you want to feel good about it. scarlet: claude raines was a founder of this resort. propertyally sold the and business to chris burch. i understand he is still fairly active in the foundation. can you tell me his level of involvement? >> he started the foundation with a gentleman from california. they got things rolling. it has continued since chris spotted the resort. clot is still involved -- chris bought the resort. claude is still involved because his heart is still there. include waterts
and malaria. scarlet: tell us what the foundation has done? by 75%,ed malaria providing water to most people in the area, providing mosquito nets to most of the villages, and educating children. scarlet: all worthwhile goals. madevisitors to the resort suggestions you have turned into initiatives? >> i think everyone wants to help. keeps people- what coming back is the involvement of the community. of people return. children get involved. when children go to amount attrition clinic and see unfortunate children and help aem, -- when children go to malnutrition clinic and see unfortunate children and help them, it makes them want to do
more. scarlet: thank you so much for joining us today in studio. we need to check in with remy once again to take a look at the markets. >> we are seeing the dow come off those earlier lows. 388 points.ge is looking at this in terms of superlative's, we are seeing the dow down to its lowest since november of 2011, when it was down by about 4.75%. by the s&p 500, it is down 2.3 percent, falling the most since june of 2013. ♪
market day. have one hourly left in trading. markets around the world are entering correction territory. alix: a unique take on where in thees fit consolidation route. we will hear from a goldman sachs executive. and should john deere be cutting its forecast? good friday afternoon. im am scarlet fu here with alix steel. alix: it is not feeling of friday, let me say. we have had this dramatic weekly selloff, the worst since 2011. this is not a summer friday. scarlet: it is late august. you would think people would be sleepy. far from it. alix: julie hyman