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tv   Worldwide Exchange  CNBC  July 27, 2015 5:00am-6:01am EDT

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welcome to the second hour of "worldwide exchange," everybody. i'm seema mody. here are your headlines. u.s. stock set to downstairs back after the dow posted its worse week since january. but the biggest one-day drop in eight years. the deal is done teva buys allergan's business for $40 billion. and fiat shares moving down in italy, after u.s. regulators slap a record $105 million fine on the automaker over lapses in
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safety and innovation to recalls. and ubs trades lower despite the market. this is after it is investigating a newspaper report that prompted it to release earnings early. welcome, everyone, to the show. this is the second hour of wx wgs. "worldwide exchange." a quick look at u.s. futures. we have a busy week. not just meetings or you a fed policy week. durable goods. but social media, on whether companies like facebook and twitter can continue to deliver growth. the dow up 70 points. nasdaq up 1. s&p up 7. very interesting to see a positive open on wall street despite the volatility that we
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saw overseas in asia. shanghai composite down. and in the meantime take a look at european equities. they seem to be following suit from overnight. the xetra dax down 91 points. a lot has to do with better than expected ifo data out of germany. 108 is the number for month of july, versus 107.5. perhaps the reason we're looking at the german market down at this moment. a quick look at bonds. if you're selling equities you may be buying bonds. we're looking ten-year german yield at 0.687. you see the ten-year yield at 1.9%. we're going to keep an eye on the u.s. with the fed policy coming up on wednesday, are the feds going to continue to raise the rate? that's the quig ing with question.
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the euro hitting that better than expected business sentiment out of germany. as you can see, we're holding on right now 0.8%. that could reverse once we hear from janet yellen this week. keep an eye on japan overnight. let's take a look the at commodities shall we? it was the worst week for bti crude. copper trading at a 6 1/2-year low. and brent crude down 0.6%. as oil prices continue to the move on the downside what does that mean for the oil picture and the fed's ability to reach that target. that of course will be something that perhaps traders will be looking for answers for when the fed meets this week.
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brent crude at 54.50. and now as we're saying china really the big story today heavy losses in china's "a" share market with the shanghai composite posting its biggest one-day drop since february 2007. energy stocks were among some of the worst performing stocks with china oil services ss off to 10%. >> i think it's quite staggering. you have to understand that the volatility, despite the best everythings from beijing is not going away. there's still a lot of leveraging to go in the system. margin debt is still quite high and systemically it does pose a risk for the market. so the question, we have to ask, what happens for the rest of week? is beijing going to reconfirm that commitment to the market? are they going to send a message that they're going to be there
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to backstop this market to stabilize the market and to ultimately buy the stocks in order to do that? so that's one thing. the other thing is the data continues to underwhelm. case in point today, industrial profitability contracted in the month of june by 0.3%. we did see an expansion in april and may. so we broke that cycle in june. so that was bad news in terms of the broader economic picture. this figure of 4,150 has been touted as an unofficial bailout target. we crossed that last week. knack, we moved over that level in intradate trading last week. so some suspect, that the government perhaps, since we've reached that level, is going to try to back off in terms of the state -- eventually the state-sponsored buying and profit of the market just to test the waters to see what confidence level are like at the moment. so i think investors may have
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got a hint of that and sold the market quite aggressively quite sharply as a result. as an element of moral hazard here, i think the market is really not prepared as of yet for beijing to be out of the game so therein lies the problem. elsewhere, the australian benchmark often strongly correlated to china, despite the volatility, the market in australia, the only one to generate some excess returns today up by just a marginal 24 points. that's where we stand. back to you now. >> thank you so much. let's get the investor reaction. matthew beasley ahead of henderson global investors here on "worldwide exchange." matthew, a pleasure to have you on the show. just when we thought fundamentals will be driving prices this week it's once again factors like china and commodities which dominate the discussion? >> it's a bit self-defeating when the emphasis on china as an
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exporter. and that of course is impinging on other investor news. and as well we've gone through this period of rather unnormal movement in china. and frenzy and very negative frenzy on the way down. and external investors don't know quite well where to position themselves. >> and yeah, chinese officials have been responding to the recent stock market volatility with an assortment of measures and the question is what's left in the pboc's toolbox? we don't know that. >> clearly, it's unnerving with investors on the mainland. as well most investors in the market, perhaps late tented in by the very large moves we saw earlier in the year. and on top of that as well we're struck now without knowing
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where fundamentals, ss would price markets today. so eventually markets will have to find their own level. in the meantime a void of uncertainty with fundamentals tracing a toxic concoction. that's going with investors. >> what's driving investors to sell chinese equities today on july 27th? is it the fund mental picture, weaker than expected data manufacturing? or is it this just panic selling ahead of the fed meeting? >> the chinese market faces pretty difficult data. and i often talk about the stock market being disconnected from fundamentals. on top of that you've had this ongoing rout in commodities. that's exactly what we're seeing copper, oil, other base
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metals, gold as well. for china, as a big exporter of oil, for example, as a big consumer of copper and china is weakening, with commodity prices. >> there are some out there including the equity strategists who we bring on quite often say the china concerns are overblown here. would you agree? >> we just don't know. >> is that certainty with the investors on the sidelines? >> that's exactly right. it's that fear lack of government intervention, perhaps more government intervention a week ago, two weeks ago got people to be involved probably short term. i think longer term we'll see tough transitions for the chinese economy. >> so you wouldn't subscribe to the viewer what the pboc has
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implemented so far will actually feed through to the real economy in the second half of the year? >> well it might. but this is the challenge. at the same time, you have commodity prices climbing. indeed regarding of that china as an exporter of oil, from that perspective alone, it's a weakness. >> the commodity rout definitely not helping china. matthew, thank you for being here on "worldwide exchange." a want to get you other names in the news this morning. teva has acquired allergan's business for $40.5 billion. a mixture of equity and debt. the israeli group has withdrawn its offer to buy milan. shares of teva are called to open up 11% in europe. brent saunders will join "squawk box" for a first on cnbc interview at 6:30 a.m. eastern.
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fiat chrysler getting a record $90 million fine from u.s. regulators for failing to act sufficiently following vehicle recalls. we'll see the automaker pay $70 million in cash. and $20 million on outreach. an additional $50 million will be paid if they fail to comply. and ubs profit jumping 43% beating analysts' expectations. let's get the latest with carolin roth live in zurich. hey, carolin. >> good morning to you, seema. i'm just looking at shares of ubs, they're still down by roughly 1%. we're off the session lows off the 21 swiss franc handle. those numbers were released one day early, it was that newspaper report in a big newspaper
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yesterday which contained accurate information. and that's what prompted ubs to release those numbers one day early. a couple bright spots, private banking in line just slightly better than expected. we've got investment banking. surprisingly strong on the equity side. and actually the ceo of unc hedge telling us this morning that they actually benefitted from chinese equity trading in the second quarter so hey, at least someone is benefitting from that. and leverage on that it was very solid. a cap ratio of 14.4%. that catapults ubs to the top of the industry really. but there are drawbacks, too. that is very much visible when you take a look at the gross margin on the private banking side. that fell slightly to 82 basis points and that seema, really is a reflection of the pretty tight market environment, macro environment that is refining
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itself. here's sergio ermotti's take on that. >> if you look at the first quarter or second quarters in the second quarter, i can say i saw fatigue by my investors. you had volatility you had a little less market participation, so volatility without any volume. i think by now, the greek situation is something that is absorbed by investors. but i will say compared to the past, you see less trading around events or news coming outside of greece. >> and sergio, as we wrap up with you, this week we're going to get a fed meeting, the market is speculating as to whether we get an interest rate hike this year. as you look at some of the macro headwinds at the moment do you think there's any prospect that we could see a fed that starts to tighten rates not here to be quite weak economic trends at
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the moment around the world? >> it would be very surprising to me if the fed is not hiking. i think it's fully priced into the market. i think that should the fed decide not to move i think that that would probably be a very negative news for the other economies globally and the u.s. one, particularly. >> and as we know the fed's hike in rates battle eventually will be really good for the insurance and banking sector. seema, finally i want to mention maybe why ubs' share price is down by 1% even though prices were solid. they had a really good run, up 25% year to date. and secondly they're just caught up in the global selloff. little you can do about that. >> exactly. ubs down 1%. carolin roth thank you for bringing us the latest. a brit takes home the yellow
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jersey for the third time in four years. we have all the details from the tour de france after this break. 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?
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can a business be...alive?
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and these are your headlines. chinese stocks collapsed as the china compost turns in its worst day since february of 2009.
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teva acquires allergan's business for $40.5 million. and ditching plans to buy milan. and best buy becomes the first to sell the apple watch. >> let's get you a rundown of what to watch this week. today, we get durable goods number and earnings reports from norfolk southern ryanair and twitter and facebook will steal a spotlight later in the week. all eyes on the fed wednesday after it releases a statement after a two-day meeting with investors, hoping for clues of a arate hike. and one that is awaited after the second quarter gdp rise. the data will increase annual revisions going back to 2012.
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matthew beaseley of global investors is still with us. is it gdp numbers? >> i think the market is focused on the micro, or the macro when it comes to the u.s. we know a rate hike is coming. we don't know clearly when. we know the rate rise is coming. and of course the moving markets, it's been individual stocks. it's been a handful of individual stocks. i think you point to twitter and facebook is likely to live the marketing i think we focus on the micro, at the moment rather than the macro. >> you think twitter and facebook this week could drive action? >> yeah also surprising this year is how narrow markets have become. you look at the movement the s&p has had this year. and a handful of stocks that's been the key to that mover, apple, google netflix, gilead. it's a handful of stocks on how
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the market has performed. and facebook is clearly on that list of stocks that could have a potential to market cap. it makes a big difference for this week. >> matthew, this week, four stocks in the nasdaq 100 that make up $1.3 trillion of the cap. the question is is that a concern for the average investor? >> i think it is. it does link in of course, to fed policy. we could argue if we had more time that the u.s. economy perhaps is not growing the way the fed would like it to be. the outlook isn't great. there's concerns about u.s. consumer discretion and health care. of course, the dollar is another issue in the u.s. the lack of growth is what's forcing the growth to be focused on those stocks where there is growth. >> as companies look for growth we've been looking at m & a deals on teva israeli drugmaker is called up 11% on the news
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that it's buying allergan's generic business for $40.5 billion. you're actually a shareholder, what do you do with the stock? into within 20% within a couple years, this gives them a lot more size and scale on the market where they're already a leading player. and this is a good deal for teva shareholders and it removes the speculation over milan. it was being called a messy fight. and the outcome of that clearly wasn't solved. >> ten seconds to go would you buy, sale or hold stocks? >> i'd be a hold to buy teva stock today. >> a big part of the health care story. best performer on the s&p 500 this year. matthew, pleasure to have you on the show. head of global equities at henderson global investors.
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and still to come on "worldwide exchange" -- digging for precious returns. the next guest says the gold selloff is overdone. which stocks could add shine to your portfolio? we'll reveal all after the break. stick with us. t you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's 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.
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welcome back. the gold miners etf is at an
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all-time low in a month. this as gold hovers at five-year low with the metal price down five straight weeks for the first time since october. but there are some who say now is the time for a rebound. let's bring in the senior vice president of global metals and mining researching at hsbc. you're one of the traders out there, patrick, why do you see gold prices coming back in the near term? >> morning. well, we think that gold has come to a very low point, relative to where it's been. it's also trading at very close to where the average cost of production is for the top quality runners in the room. so therefore, we think that's signifying a buying opportunity here. we also note that a large reason for gold's bad performance in the last few weeks, at least, has been the buildup of a very large short position and the
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comments. i think that's sustainable. >> surely, the recent data out of china is not helping the gold bulls out there? >> well it's interesting how china can affect gold. yes, there could be a negative push on gold at the moment as people use gold as a source of cash flow to cover some of the margins in the chinese stock market which, of course has been doing very badly. over the last few months the rise in the chinese stock market may have also taken some investors away from gold. and put them into the stock market, i guess, at very high levels. and perhaps in the longer term we should see chinese investors investing more balanced way. and actually taking more gold. >> gold miners have not been doing over the past couple weeks responding to the volatility in gold prices. do you actually have a top pick
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in this? which stock is set to outperform perhaps? >> well, we like a number of different stocks here. we think the gold prices will rebound quite considerably from these levels and therefore, the whole sector should rebound. we do recognize there are headwinds out there including large hedge funds that are going short, obviously and pushing the price down. so we do like fresneoin london. and just a couple other stocks royal gold here in the states and a company that's doing quite well in terms of free cash flow, we do think the company is on track for better things to come, as we go through into next year. >> yeah we'll see if you're right. some analysts that i spoke say the valuation in stocks look attractive.
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the question is are there fundamentals will to support the stock. we'll see. patrick chidly very vice president of gold metals and mining research on hsbc. and we bring you up to date in the latest twist on the latest presidential nomination race after this break.
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you're watching "worldwide exchange." i'm seema mody. here are your headlines from around the world. no escape from the china rout. shares plunge almost 9% in the biggest one-day drop in eight years. meanwhile the dow has placed higher after posting its worst week in january. the deal is done. teva buys allergan's business for $40.5 billion. fiat shares moving down after u.s. regulators slap a record $105 million fine on the automaker over lapses in safety on recalls. and ubs trading lower despite a rise in markets in a second quarter profit. the bank says it is investigation a newspaper report that prompted it to release earnings early.
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and good morning to everyone who is joining us in the u.s. here's a look at how markets are faring ahead of the u.s. open. u.s. futures pointing to a higher open at least for the dow. up 49 points. s&p up around 4. nasdaq down about 4. that weighed on the nasdaq last week. the story will continue this week. we have a lot of social media giants including facebook twitter and yelp. keep an eye on that. in the meantime got to show you what happened overnight in asia. quite the selloff, shanghai composite losing 8.5%. some says it's panic selling ahead of the fed rate. european markets following asia also lower, remember we got that better than equity the ifo data. that's german business sentiment signaling there is improved mood
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across german businesses up 108 for the month of july. one of the reasons we're looking at the xetra dax down 0.8% in today's trade. teva has announced plans to acquire allergan's genericic business for $40.5 billion. it will be financed through a mixture of cash equity and debt. shares in teva are called to ep up over 11% in new york. keep in mind allergan ceo brett saunders will join cnbc "squawk box" at 6:30 a.m. eastern. you won't want to miss it. earlier, i together to henderson's matthew beesley. take a list ton his reaction of the teal. >> this is a good deal for teva. this goes to 20% in 20 years
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this gives them a lot more size and scale in the coming years. there are efficiency benefits for distribution. yeah this is a good deal tour teva. and it relieves all the speculation over milan. and the teva shareholders, is this a good deal. shifting focus to the banks, second quarter net profit at ubs up 53%. this after the wealth management posted its breast second quarter results since 2009. and following a swiss media report sunday shares are lower amid the broader selloff in european equities just about 1%. cnbc spoke to the ceo to find out how it's impacting market values listen in. >> if you compare it to maybe the first quarter and previous quarter. in the second quarter, i can say
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i saw fatigue by my investors, while you had volatility you had a little less market participation. so volatility without any volume. i think that by now, the greek situation is something that is absorbed by investors. but i would say compared to the past, you see less trading around events of news coming out of this. >> and, sergio as we wrap up with you, this week we're going get a fed meeting. the market's speculating as to whether we get an interest rate hike this year. as you look at some of the macro headwinds at the moment, do you think there's any effect that we see a fed that tightens rates if not here to quite weak economic trends around the world? >> it would be very surprising to me if the fed is not hiking. i think it's fully priced into the market.
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i think that should the fed decide not to move i think that would probably be a very negative news for the other economies globally and the u.s. one particularly. >> so is it the time to buy shares of ubs? chris wheeler's u.s. bank analyst at equities here in the studio. chris, great to you have on the show. the stock is down 1% even though the company reported a 53% jump in earnings. is this simply profit taking or something else going on here? >> well, i think it's really china having an impact. the future of the results is a very strong wealth management results. i always say if you want growth in wealth management, you have to be number one in asia. that's where the highest number of growth of individuals with high wealth is. around the fact it's such an important market for them. >> which other banks do you
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think have high expressier ierierexposure. >> you look at the investment banks who have strong foot holds, jpmorgan goldman sachs, morgan stanley, most of those players are what they see as an important market for them. >> you take a look at trade revenues, they've been benefitting from the volatility around china, as well as the greek prices. get is how long can this continue? >> obviously, it's not a big plan on fixed income. if you look at the u.s. banks, you'll see that starting in june there was quite a slowdown in investor activity as investors became cautious on what became the issue around greece. in terms of equity revenues, it's been very strong. with the likes of jpmorgan goldman sachs and morgan stanley who are leaders in that space. i think volatility can help in
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markets as long as you're on the right side. i think there's a lot more to go. i think the thing that people have missed the fact when rates do start to rise the speed at which will it impact income is rather faster than people have imagined because banks have credit cards and companies and a lot of interest-free deposits that won't move at all. so we could see quite a bit of leverage once the interest rates move up. >> financials in general have been outperformers in the past three months. your top pick? >> i think at the moment it's citigroup. i think they've done a fantastic in reaching the business and shrinking the balance sheet. and what we're seeing is great visibility on the cost-cutting prime minister. >> chris wheeler, thanks so much for joining us here on "worldwide exchange." u.s. banking analyst at atlantic equities. of course, one of the big
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news this morning has been the story of teva guybuying allergan. and in the meantime we're looking at milan shares down 12% in premarket, this as teva shares are called to open higher by around 11%. there you go. a lot of big movers. and premarket action on the back of this deal announcement. still to come on "worldwide exchange," we explain why u.s. regulators have hit fiat chrysler with a record fine. don't go away. that story next. nt's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus...
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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.
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welcome back. a new nbc maris poll shows gop presidential candidate donald trump near the top of the pack in two key states. the poll also shows hillary clinton leading the democratic pack in new hampshire and iowa. though her lead over bernie sanders has shrunk. let's get the full story with tracie potts live in washington. hey, tracie. >> hey there, good morning. let's take a look at these nbc/maris polls, the first two key states the first caucus state, iowa. and the first primary state, new hampshire. in new hampshire, donald trump has a solid lead. seven points over jeb bush. in iowa he's number one behind
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wisconsin governor scott walker. but still well into that top ten that we'll see on that debate stage in cleveland in a couple weeks. the other thing that we're watching is say nationwide policy. an in-poll that shows donald trump at 18%. he's the number one republican in that poll. what's interesting, that entire poll was taken after the comments he made questioning john mccain's military service and whether he was a war hero. he's gotten a lot of backlash from that. the other thing we're watching are the democrats. hillary clinton is leading the pack especially in iowa where he's gault a commanding lead. her lead is shrinking a little more. only 13 points in vermont over senator bernie sanders. that's in new england, vermont is right next door to new hampshire. by the way, she's going to be out talking about climate change in a few hours this morning.
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specifically about renewable energy -- putting more renewable energy into the united states. she is promising that every home in the united states should have a clean energy course within a decade of her being elected. we're still waiting to see if he's going be elected because bernie sanders is catching up in new glance. >> every week, it gets more and more interesting. tracie potts, have a great morning. a record fine for one of the world's biggest carmakers as u.s. authorities clamp down on safety recall violations. let's get the full story with morgan brennan who is live at cnbc headquarters. hey, morgan. so fiat chrysler agreed to a record-breaking $105 million. that's ever u.s. federal regulators concluded an investigation into the recall practices. the ntsb finding that the automaker failed to complete safety recalls that included 11 million vehicles.
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a settlement of $70 million and cash penalty on $20 million on meeting requirements also a potential for another $15 million fine if further violation, found. fiat chrysler issued a statement acknowledging the violation saying quote, we also accept the resulting consequences with renewed resolve to improve our handling of recalls and re-establish the trust our customers place in the u.s." in addition to the record-breaking fine also fiat chrysler offered to buy back more than 500,000 dodge chrysler pickup trucks that have defective steering. and also cars can be repaired after a defective gas tank. this comes after hackers were able to hack the u-connect dashboard computers.
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the company had already released a software patch to happy strengthen security. but now it says it will send a usb drive to all affected owners with a product update. >> have a great day. in other news historic victory for britain's chris froome who has a tour de france victory. in the end won by just 72 seconds. how about that? the narrowest margin since 2008. he crossed the finish line in paris to beat colombia's nairo quintana securing the yellow jersey. before we go to break, chinese stocks collapsed since the shanghai composite closed in its worst day since 2008. teva acquires allergan ditching plans to buy milan. and best buy is the first to sell the apple watch.
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you're watching "worldwide exchange."
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a rough night overseas in asia looking at the shanghai composite down 8.5%. its worst day since 2007. what's behind the selloff. let's bring in shariv. hi. >> hi there are a couple of factors to raise here. the first is has beijing inadvertently created a sense of bailout here. remember the bailout, the unprecedented intervention to backstop the market. yes, it worked for a very temporary period around the margins. and now the investor community, maybe retail investors seems to have got a whiff that beijing
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may start winding back on those support measures and the market today. so it begs the question how long is beijing effectively going to be in the market for i think is going to be quite some time? because if they doo start winding it back you're going to see this kind of adverse reaction. that's the first thing. the other factor is the data continues to underperform. we saw that with profitability numbers in the month of june. it was contraction. whereas, we saw an expansion in the prior month data sets. so a big question in my mind for the rest of the week is whether beijing is going to reaffirm its commitment to state-sponsored buying to try to shore up market confidence and stabilization? despite of the fact that they seem to have created a set of second-round effects here. and once again the investment community nose whatknows where they're
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going to be in the market. every time it declines. how long are they going to be in the market? that's a big question. elsewhere, in the week that we have the fmoc and the fed, we're seeing depreciation in this part of the world, especially in indonesia and malaysia. the fed ahead of any signal of a rate hike. this is interesting, considering the amount of damage we've seen in the greater china markets, the other benchmarks are remarkably resilient. the other outperformer yes, up by 24 points but typically, we see an adverse reaction in aussie shares when we see china. i think that was interesting. the basic paradigm remains the same seema. guests on your programming today
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have been saying the best way to play the china market if you want exposure is to avoid the "a" share market because we're going to continue to see volatility, case in point. >> absolutely. down 8.5%. thank you for break down the trading action in asia. wti crude falling by 5% last week. gold also losing its shine, hovering at a 5 1/2-year low. copper, similar story at a six-year low trading down 0.6%. a quick look at european markets as he was pointing out, european markets down by 1.2%. now, shgs we are at session lows in the german the ftse with the back line. what does this mean for wall street? well interestingly enough the dow indicating a higher open perhaps.
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because the focus always as in the u.s. is on economic policy and let's get you a rundown of what to watch. today, you will get durable goods numbers. twitter and facebook are later this week. you eyes on the fed wednesday as it releases its statement after a two-day meeting with investor hoping for more clues on the timing of the rate hike. one that could be more anticipated than that is the release of second quarter gdp on thursday. economists are predicting a 2.7% rise after a contraction in the last quarter. the data will also include annual visions going back to 2012. how should you be positioning yourself? chief market strategist at tempest partners giving us the latest. bob, listen this is a big week for fed market. and volatility in the chinese markets what do you think will drive action this week? >> good morning, seema. i think you're right to point
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out that the focus is still going to be on the fed. i'm definitely in the camp for september. and i think that continues. i think you're definitely going to see 2015 this is something the fed wants to do here in the u.s. they want to begin normalizing. i think you're seeing some of the reasons why with the acceleration and calming in grease. what's going on in china. the fed doesn't want to be at zero rates. having said that if there's ever going to be a week save for the fed that the u.s. pulled the rest of the world up it would be this week where we've got gdp quarters coming up. and technology. and we saw last week's tech earnings. and some of the energy stocks oil stocks like shell mvp rising. and on friday we saw going into the future the u.s. could actually pull the rest of the globe up. >> u.s. investors suggesting
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that trader where is you are are not too worried about the selloff in asia. the precipitous fall that we saw at chinese markets are at recession lows in europe. why do you think that is? >> as you mentioned, it's definitely based on the fed. when you look at the dollar index and it had a significant collapse. relative to way it's been trading. it's been trading at what i call softball market. it's definitely fed related. i think you're hoping to see some softer comments if you're a bull. lately they have not used up at all. they've gotten comments from janet yellen they say that liftoff is going to be 2015. the u.s. could at least stabilize the rest of the globe. it's not going to pull china
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out. >> given the greek negotiations that take this week china as well as earnings would you be a buyer of treasureytreasuries? >> well, i wouldn't be a buyer of treasuries just yet. i think you'll see rates slowly rise. i just think the treasury story is over. it's a matter of timing i'm certainly going to be out of buying treasuries here. i think you have european equities. everybody has lightened up on chinese stocks. there's no way around this argument at this point. but i don't want to buy treasuries at this point. >> we'll leave it there. . chief market strategist partner at temperaturest. teva shares up. european equities now at session
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lows. that does it for us here on "worldwide exchange." i'm seema mody. next up is "squawk box." ♪ ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪ ♪
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good morning, a global market alert with china's stocks slammed overnight. an 8% cap. big number making this the biggest one-day loss in eight years. and we heard news about this, but it's official now, breaking deal news. teva buying allergan's generic drug unit. more than $40 billion is the price tag. and a record fine fiat chrysler slapped with $150 million in safety issues. the monday july 27th 2015. and "squawk box" begins right now. ♪ >> announcer: live from new york where business never sleeps,
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this is "squawk box." ♪ good morning. welcome to "squawk box" here on cnbc. i'm michelle caruso-cabrera along with joe kernin and andrew ross sorkin. and preserving the space suit for neil armstrong's space walk. we'll have more on that story later this hour. first to the business news of this morning. major indices in china plunging. the largest one day drop since 2007. stocks falling on new worries amid the prospectus with the highest economy take a look the shanghai the shenzhen and hang sentence all lower. we'll have a live report from our colleagues in asia in just a minute. u.s. equities futures at this hour don't seem to be responsing

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