tv MSNBC Live MSNBC August 24, 2015 12:00pm-1:01pm PDT
so hurry in and get crackin' good afternoon. it is a dramatic monday on wall street. we are an hour away from closing bell and anything can happen. i'm ari melber here. we're covering the final hour from all angles. right now the dow down 600 points with 1 hour to the close. the nasdaq and s&p are also way down. wall street started the selloff right at the open crashing nearly 1,000 points this morning. the reason for the panic -- china. their stock market continued rapid decline today hosting one of the biggest one-day percentage losses since back in 2007. fears of a china slowdownturning into a recession caused the dow to fall 1,500 over three days. we're tracking the ups and downs with ragan courtney. where do the markets stand right now with an hour to closing bell is. >> exactly. that hour is probably one of the
most important of the day. every day. but especially, today. anything can happen in this final hour of trade. we saw things accelerate. the losses in the stock market on friday in the final hour of trade and sitting in a critical point. like you mentioned, we opened up severely sharper this morning down 1,089 in the dow at one point and panic selling based on china. it does very much have an impact on us. also, oil prices continuing to fall. and while it's good for a consumer eventually at the price at the pump when it falling this far this fast because of global economic slowdown worries, that's an issue. we are all wondering what will happen with the federal reserve and deciding to hike that key interest rate which is at zero for sometime now. on the table earlier was september and then december but after today a lot of fed watchers saying there's no way that the fed can go ahead with
the rate hike in september and market worry really spurring the selloff and then you have buy earls come in, see prices much lower on stocks that hadn't seen lows like that. i'm talking about apple being down very significantly in correction territory. and so we saw some buyers come in push share prices of apple into positive territory and now again as we move towards the close, things are settling back down and losing that momentum into the close and trading lower again and have been all day and now back in the 600-point range down for the dow. it is now the worst day that we have ever had. i want to make sure that the view earls understand that. the dow at a pretty strong level, stronger than in 1987. so our percentage loss is smaller than what we saw and very, very scary days in the market past and not quite there and still is something to pay significant attention to because of what the market is doing, perhaps correcting, perhaps wear in bear market territory. we won't know until it's behind
us. the corrections usually last two months or so and whatever happens here likely not permanent. stocks go up but they also go back up and it's important for everyone to not freak out. everyone calm down. keep your emotions in check by sure. walk us through in the final hour what are the trards looking at to decide whether they're holding or seeing more volatility. >> all the same fox factors we're been following all day long and so hard to pinpoint and i think if we could we would be on a private island right now. there's a worry of what's going to happen in china, what the fed will do. they're listening to cnbc. they're listening to retail investors. that's sort of your just average regular person investor, not your big companies feeling how big that fear is and if we should be selling into it or buying into it. >> courtney regan, thank you. we turn now to susan ox, a former senior adviser and josh
barrows from "the new york times." when's happening right now? >> dirty secret is nobody really knows. you have the days and people try to identify the reason stocks wept down an unthen back up and the truth is we don't know exactly what's happening. obviously, big problems in china rippling through markets all over the world and there aren't identifiable things terrible in china today that weren't terrible in china on friday. so it's not obvious why today should be the day that you have the big dip, why the dow opened down so far today and then a really big rally. if you bought stock at 9:40 today, you did great. most of the day it's rising rapidly off the very big decline. i can't identify a specific reason it happened today. whether this is a harbinger of a bear market to come or a blip that will be corrected out of. >> susan, what's the government of the united states doing on a day like today and after the drops on friday? >> watching closely. doing nothing probably right now but watching closely.
one of the things i'll say to josh's comments, you know, there's a lot about the psychology of the markets. we have two elements driving the markets. one are automated algorithms and people when we opened down 1,000. the other part is individual actors and market sentiment and there is a mob mentality a lot of times in the market. you see people start to kind of pile on to losses. and i think we are seeing a little bit of that, too, from last week into this week. when you think about the core fundamentals of the u.s. economy, they're solid. they have not fallen off a cliff. we could be impacted by a global slowdown in china as courtney was talking about but we are not seeing a deterioration of our economy as you would expect for a drop in the market. >> two of the dynamics to accelerate the underlying causes, one human. the mob mentality and whether
they rush to do something with the portfolios, but then you're also talking about something that's newer, big movers in the markets. i want to read from the chief investment officer at palisade capital management saying, look, some of the opening losses are from the exchange traded funds. quote, so easy to move billion dollars in an nano second. is that part of what's going on? >> it is. we have seen this for many decades now. you see most of the trading at the beginning of the day and the end of the day so it's not surprising that we came up, we were almost down not even 200 points sort of in the middle of the day and down now 600 and not surprising to say this sort of downdraft at the end of the day. part of it is the automated program that is kick in to get to a certain market close and x or y by 4:00 when trading stops. >> you say that, why do they need to do that? >> it's what they created.
>> a standard formula. >> they have plugged in. so they oftentimes don't have a manual override or haven't kicked into them yet. >> shouldn't you be able to write another computer program saying if the market is down 1,000 buy and sell again at the end of the day? can't be this simple because then other people would do other simple things and pick up the money lying on the floor. >> people were trying to buy this morning. are you see liquiditliquidity? some people get freaked out and sit on it or sell. >> what's the china piece of this in your view? >> i think it is about uncertainty. i think there is definitely a slowdown there. posted gdp of 7% in the second quarter which was suspiciously like the first quarter which suspiciously what the government estimated it was going to be and some concern whether those
numbers are real and most of the estimates coming from the imf and world bank says a slowdown in growth in china and what we're not seeing is policy intervention from the chinese central bank, whether lowering interest rates in china or pumping liquidity into the market like the federal reserve here in the u.s. i think that also sparked more concern that do they understand the challenges they're facing in that market and are they addressing them quickly enough? >> the big rip toll that and heard from the candidates is china does what it needs to do for itself and then even though it's interdependent economy and made moves to do more exports. why should that be concerning to americans? >> honestly, well, it could be concerning to americans to make china more competitive to exports relative to the u.s. and more expensive to export the goods into china, cheaper to export goods here. that's good for you if you're a consumer of chinese products. china in order to grow the
economy, because it has less domestic demand to export more stuff, cut the prices of that stuff. that's good as a buyer here and not great as a manufacturer here. for years people talking about china manipulating the currency to give an unfair advantage to the manufacturer. that was true several years ago and now chi in's currency ought to be falling but it's probably the right thing for the global economy in the long term. >> you mean even absence government intervention that's the natural tendency? >> yes. the chinese government is strengthening the currency. the xhi nees government making it aiciall low pegged to the dollar. the chinese currency is worth the same fraction of a dollar almost all the same time. and when the economy was roaring, if you have a strong economy, you ought to have a strong currency and china doing
great, the currency should have done up. they didn't let it. they're not letting the currency go down either. neither is great. effectively means that the united states is setting policy for china right now and china lets the u.s. decide the currency worth and then china can end up with fiscal policy that doesn't let it respond. china really ought to manage that itself and not let us run their currency. that's a choice they've made. >> this is another piece of the puzzle and the debate over whether any of this should say anything about interest rates. larry summers, used to work for president obama, advised him on the economy saying in no uncertain terms, susan, we should not be raising them any time soon. you can disclose whatever conflicts you have in knowing basically every treasury department decision maker involved this and tell us what you think. >> i haven't spoken to any of them in the last week.
i'm clean on advise. i think always challenges. you know, a lot of people in the market said, oh, definitely a rate hike in september. we need to be at a normalized level and i talked about before the u.s. economy looks fairly good right now. relative to the rest of the world. i was never in the camp that it was absolutely a go in september. i think now, again, with the uncertainty, the biggest, biggest enemy of markets is uncertainty. bar none. if things are bad, they want to know what it's going on the and how bad and they'll find a way to deal with it. so i think that the issue around china right now is uncertainty and the issue of the federal reserve and interest rates is how much's that uncertainty to play into the u.s. market and what happens is we don't want to see the financial markets impact real markets when business leaders say i'm worried and maybe putting off that hiring or not build that plant. >> right. >> that's when it starts to impact us and the federal reserve gets concerned. >> all right. susan and josh, will be back later in this hour keeping track
of all of this and looking at the markets minute by minute, counting down to that all-important close. also analysis of the global implications, political impact and where it all goes from here. breaking news all hour. stay with us. [ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company.
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of china's slowing growth. president obama briefed on the movements in the stock market and the global reaction. white house making it clear this afternoon that china does need to change its monetary policy. >> the case that we have long made to china that they should continue to pursue financial reform to increase exchange rate flexibility and the move rapidly toward a more market determined -- more market determined exchange rate system. and so that's a case that we have continued to impress upon the chinese as being a priority of the united states. >> for more on the global selloff and what it means for us here at home, we turn to cnbc's sue herrera. sue? >> hi. good afternoon. once again, we're off about 600 points on the dow jones industrial average. technicians say what the market is trying to do is test itself to the bottom and see whether or not this market is starting to
form a bottom. we see a couple of stocks in the green. not many. probably about four in the s&p 500. but the dow jones industrial average is pressured in volatile trading closer to the close. we are 43 minutes from the closing bell on wall street right now and the volatility expected to remain with us for at least a couple of weeks. we are going into september. the fall traditionally is a volatile time for the stock market. september and october traditionally not good months for the stock market. for individual investors, buckle your seat belt. take a step back. make sure you're comfortable with the risk. do not react to what you are seeing in the trading session because they're institutional investors pushing the market lower. back the you. >> sue, we'll check back with you as we count down to the market. for more and larger global implications, we have david rothkoff and peter navarro.
we should mention director of that big netflix documentary "death by china." good day to both of you. first, david, your thoughts just on the big picture here that we are seeing? >> well, i think the right thing to do is to look at this as market volatility but then go a step further and say if it's related to china and you believe china's slowing down, what are the knock-on effects? i think the knock-on effects are pretty substantial. a bunch of emerging markets like brazil and turkey are vulnerable. parts of southern europe are vulnerable. does it hit the united states? does this become a full pledged global slowdown triggered by the chinese slowdown? i i think that's all quite likely and i think looking over 12 months and what that might mean is prudent thing to do. >> and, peter, what are these
initial i could cases we have? again, we are calling for slicing a couple of days of trading. where does it fit in your view? >> david's analysis is right. get to the root of the problem. global turmoil here in the markets reflect an underlying structural imbalance in the world economy. and it goes something like this. we got the two biggest consumers in the world, europe and the united states, tradition alibiing chinese goods. china makes them and then in order to make them china has to buy commodities from places like australia and brazil and canada and russia. what's happening now is that europe is in the tank. it's not buying chinese goods as much as it used to. the u.s. is operating at around 2% rate of growth instead of the traditional over 3%. so, china's problem and this is the structural imbalance, is that it's heavily dependent on
exports for growth and that growth has gone away. the three decades of 10% growth has gone away. basically because china uses unfair trade practices to basically kill the two biggest consumers that it had. so that's the adjustment we're making. the question is going to be can china make the adjustment it needs to? what the president ought to be telling china is that, china, you need to develop domestic economy, domestic consumers to have strong sbrernl growth instead of resorting to export-driven growth in the typical go-to hail mary pass going on right now is once again china's manipulating the currency down word to boost exports. >> what you're getting at is china doesn't have the ability to grow enough of a consumption economy to buy its own stuff and while we might like the
low-priced goods this could be bad in the u.s. for the long term? >> that's right. this is a story goes back to 2001 when china got in the world trade organization and became the manufacturing floor for the world. and it grew fat and happy and a little bit dumb on its export-dependent model and hard for the communist chinese party to change direction now but that's what it needs to do. it needs to have strong domestic consumers and it needs -- i mean, politically, it's a mess there because they've got -- they've still got half a billion people coming in off the farms to put into factories and employ. and the fact that they can't do that is a recipe for the communist party turmoil. the reaction is, the whole idea to solve this with monetary policy is just plain dumb. you can't push on a string. it won't work. they need more structural reforms.
biggest thing is health care and pension reform interestingly enough to suppress the chinese savings rate and encourage people to spend more. they're not making the steps they need to do and the u.s. policy is not basically helping them out. it's a difficult time and it's going to go on for a while. >> so to david, part of the theme here, of course, foreign relations having the big impacts. you have talked about the idea that the iran deal traded as a big national security debate in the country also fits in here because there will be a different oil availability if approved. explain that and why people should care. >> first of all, because of the chinese slowdown and the slowdown in demand for commodities, a thing to see falling prices is oil. we have seen that. we have seen the price of oil hovering around $40 a barrel. but we also have in the offing iran putting 2 million barrels of oil a day on the market.
that's more downward pressure on oil and that's going to squeeze countries that depend on selling oil. russia, venezuela, brazil with other political problems. saudi arabia already has other problems is one of those countries. but lo and behold we're now one of those countries. we are now a major energy exporter and a lot of the oil that we produce, tight oil or shale oil, is very expensive to produce so when the price of oil gets down, our oil companies find it harder to compete and you've already started to see job layoffs in north dakota, big companies like chevron with major layoffs, maybe 100, 150,000 people in the past year. less investment in drilling in the united states. and so, the energy boom that we've been experiencing is going to now suffer significant head winds because of the global
slowdown compounded ironically enough by the iran deal. >> all right. david and peter, thank you both for joining us on a busy news day. we'll check back with you closer to the close. next, jeb bush heading to the border as we speak. we'll show you that live and the 19-year-old accused of rape at one of the nation's top prep schools set to take the stand. how will that unusual decision impact the case? we'll be back in three. armed wy 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. as we continue to track wall street's wild ride, there are some other stories to get you caught up on. jeb bush expected to arrive any minute at the u.s.-mexico border in texas meeting with local officials and talking, of course, immigration. expected to highlight the differences between the border plans and that of donald trump. who had the big rally this weekend in alabama draws thousands. chris jansing is with jeb bush
this afternoon. what's the goal this afternoon? >> reporter: he wants to draw a contrast. that's not hard. they couldn't be more different on the issue of immigration. start with the basics of it. jmp to build a beautiful wall and deport 11 million and not let the good ones back in. jeb bush who wrote a book two years ago just about immigration, 274 pages, i think it was, who absolutely wants to support birthright citizenship, who sort of rejects the idea that you can't deal with the rest of it until you deal with border security. i should ipoint out he's not going to the border itself. meeting with officials here. it's a critical time in this campaign this is sense that this. people are starting to get a little bit nervous and the campaign knows this about the
trajectory of donald trump. they feel confident in this camp that for the things he says about immigration and other things that donald trump will fade away. but in the meantime, you have have seen a more aggressive jeb bush answering more aggressively and i'm sure we'll ask him to answer what donald trump said this morning, criticizing jeb bush, something he said many times that for many people who want to come to this country who are undocumented immigrants it's an act of love. and that they should be treated in that way. something that trump absolutely rejected today. he said he's going to come here and find out that that's not true. so it's not that hard to draw a contrast and that's what the campaign says he wants to do here today, ari. >> often we find you at the white house. i want to ask you a big item the president having a private lunch today with vice president biden. press secretary josh earnest asked about it. this is what he said. >> the president has indicated
his view, that the decision that he made i guess seven years ago now to add joe bide on the the ticket as his running mate was his smartest decision in politics and should give you a sense of the view of the president of the aptitude of vice president biden for the top job. >> chris, you're an expert at the nuance and the care that goes into statements made from that presidential podium. did that phrasing, the best, did that strike you as any further than they maybe needed to go? >> reporter: i think it's further than we have heard them go before and it's interesting because as you talk to senior administration officials there's an answer that each of them gives you because they both know the two players very well. there's an answer to give you with their heart. right? there are those that feel strongly about hillary clinton, about the historic nature of her candidacy, they're close to john
podesta and others that left the white house to go to work for hillary or simply support her positions. some of them who may have worked for her campaign when she was first beaten by president obama. you have others who very close to vice president biden who think that there's a different approach, who are concerned about what's going on. but when you ask them, what does your head tell you, not your heart, all of them say the same thing, ari, and it is that we want the person who can win, who can continue the president's policies. and so, take it in that context what you heard josh earnest said today and i think a little step beyond what we have heard from that podium in the briefing room before. >> very interesting. thank you for joining us. another big story, two of the three american heroes who prevented that possible massacre in france, they're in germany. here are some new pictures of spencer stone and alek scarlatos arriving for medical care.
earlier they received france's highest honor of president hollande for thwarted that attack last friday. claudio lavagne with the details. >> reporter: three americans who on friday stopped a gunman on a train were awarded today the highest honor in france, the legion of honor. but today we learned that it was a fourth american on board of that train who tried to stop at least the gunman. this is mark, a 51-year-old man from originally from virginia who is a professor, works as a professor here at the prestigious university and one of the first who saw the beginman emerging from the toilet on the train with a ak-47 in the hands. him and a frenchman tried to stop him. he was wounded but the neck and received a gunshot to the neck. and then the gunman moved on to the next carriage and wrestled
down by the other three americans. he is still recovering from his wounds in the hospital and his wife was there at the palace this morning to receive the award, the legion of honor on his behalf and learning more information about the suspect, the 26-year-old moroccan, the gunman. now the nbc news spoke to the lawyer who first had access to him after he was arrested where the train finally got to a stop. now, he said he didn't want to carry out a terrorist attack. just wanted to rob the people on board of the train and found the bag of ammunition in a park of brussels. investigators are finding this hard to believe because, of course, if you want to rob a train you don't go do that with an ak-47 and a pistol and box cutter and several cartridges of ammunition. meantime, he still in custody here in paris but charges will
have to be brought against him by tomorrow, tomorrow morning, because anybody here suspects can be held without charge for only four days and those four days expire tomorrow afternoon. >> thank you, claudio. testimony under way in the trial of the alleged rape of a now 16-year-old girl by an upper classman at one of the most prestigious prep schools and accuser is expected to tell his story this week. jamie novagard live in new hampshire for us. what do we expect in the trial this week? >> reporter: well, ari, today we heard from friends and peers of the defendant and it's the most that we have heard to date about the gritty and frankly uncomfortable mechanics of how -- of how he set up the meeting, how the defendant set up the meeting with the accuser
two days before the defendant graduated. the witnesses testified today to having the defendant tell them that he had had intercourse with the girl and that is, of course, significant because according to police documents the defendant owen labrie had told police that he had stopped short of having intercourse with the girl and acknowledged some measure of a physical encounter. his defense attorneys meantime pushing the witnesses and asking whether the slang that labrie used to describe what happened between them could have referred to other acts aside from intercourse. this is all been very uncomfortable for the defendant sitting in court with her family, pardon me. not the defendant. rather, the accuser. and she was audibly sighing from an al cove outside the courthouse today. the school said the allegations are not emblematic of its virtues and the defendant pleaded not guilty to all the
charges. >> all right. jamie, covering the story, thank you very much. a development in the shooting of a veteran louisiana state trooper steven vincent, he has died in the hospital. police say he was shot by a man whose truck sideways in a ditch. he's facing charges that include attempted first-degree murder of a police officer. straight ahead, bringing you back to the breaking new this is hour on wall street. latest numbers, what to expect next, to the boards we go. you can see there what's happening as we are within a half an hour of the market close. stay with us. (vo) maggie wasn't thrilled when ben and i got married.
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no student'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... 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. dow down about 500 with 20 minutes until the all-important close. the market started down 1,000 at the opening bell before recovering some of those losses. cnbc's sue herrera is all over this story today. >> we have seen the market test a negative 700 handle.
in other words, down 700 points. a lot of the traders i have talked to say they're pressuring the market to see whether or not they can find a floor before the close of trading. the last 15 minutes of trading are going to be key here. volume is picking up. so it's going to be very interesting to see whether or not this market basically goes back down and tries to test the low or not. it's not just the dow that's selling off. the nasdaq and the s&p 500 sharply lower as well. the oil market is slammed today off better than 6% and the market overall is having its worst month since 2009. so basically, we are going to watch this last half hour of trading and see whether or not some buyers come in at the perceived bottom or whether or not they try to push it down once again to the lows of the day. i'll see you in a few more minutes. >> you got it. thank you. we'll talk to you soon. this being election season, some candidates responding to the
turmoil on wall street. here's republican donald trump teeing off on china. >> i've been telling everybody for a long time, china's taking our jobs, taking our money. be careful. they'll bring us down. you have to know when you're doing. we have nobody that has a clue. >> that was new today. meanwhile, the democratic side, bernie sanders went on twriter two blast global trade policies and both essentially using the market volatility and selloff to bolster their positions on economic impacts. we turn to our panel for more. let's start with you, josh. what do you think of the candidates' response there is? >> politically, it makes sense to me. blame china. goes into everything donald trump is saying for months. no way that as president can deliver on decoupling from china. i note there are two separate issues here. there are real imbalances with china. they were manipulating the
currency and an advantage of exports and all that means is they would have sold them more stuff. our economies will have been very interconnected and risk of an economic downturn when they go into an economic downturn. we can't hive ourselves off from other countries and doesn't matter in the u.s. whether they're in recession or not. >> right. obviously this is 12 seconds of donald trump. that was the entire offering. that was not an out of context xlip. i want to go to david, as well, with peter. starting with you, peter, when you look at that statement and the larger arguments trump is making, does this connect to that or a word salad game for him? >> trump is exactly right. he is right. none of the other presidential candidate vs a clue. the white house does not have a clue. the economic troubles we have had for the last five years all trace to this structural imbalance between china and the rest of the world.
and it's not about -- not about decoupling china. it's about a level playing field. and by the way, china is undervaluing their currency. if you have a half a trillion dollars in deficits with europe and the u.s. by definition china is manipulating their currency. >> and david, let me read to you from paul krugman today in terms of tendency of everyone, politicians and reporters alike, to overreact. attempts to explain daily stock movements are usually foolish. there was no evidence for any of the relationizations and prices were falling. big surprise and still investors are jittery for seven years and counting and lived in a global economy that lunches from chi sis to crisis and then runs from it from the housing bust to europe. david, how do you parse between these different tendencies that the professor cites? >> well, look. i mean, he is absolutely right.
the reality is that the global economy has been expanding for seven years and there was time for correction to come. i think that we're going to hear a lot of demagogue ri of people like trump and bernie sanders there. it's very interesting to see what happens when the chinese leader comes to washington. the president wanted it to be a nice photo-op and everything's fine meeting. but it could be a very tough summit when xi comes to washington. >> and back to susan. your thoughts on all of this, china and anything else you want to tell us? >> what's most interesting you are not hearing is talk about the federal reserve. several election cycles ago people felt comfortable to weigh in. i think that's really good sign and not trying to intervene in an independent process. >> should be apolitical. >> should be apolitical.
they're focusing on the china and the white house same thing this afternoon. press secretary josh earnest took a nice pivot all of this saying the treasury is monitoring this. not trying to be interventionist here and took a pivot to say we'll get back to our jaebd which is making sure that congress is doing their job and talking about a budget and doesn't play too many shenani n shenanigans with the debt ceiling. everybody's finding a political advantage and not talking about the interest rates to me is positive. >> as we're talking and seeing indications there may be something of a late close comeback here and heard about the idea of a pressure for the floor, maybe that floor has been reached. this is the key time. i want you all to stay with us. we'll just squeeze in a quick break. get your final thoughts and also look at the close with 15 minutes to go that all-important closing bell, a check of the boards. stay with us.
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we are now ten minutes to the closing bell on wall street on a day of record volatility. cnbc's sue herera is following the changes and we have seen a downhill slide again. when's happening, sue? >> we hit a downhill move and negative 700 points on the dow jones industrial average. and then in almost like a v-shape we moved up and we were only off about 353 points. that's a testing situation i was talking to you last time i was on. they're trying to find a bottom. they're trying to see how far
the sellers are anyway how far they can push stocks to the downside. and so far, after the initial 1,000-point plunge, negative i 1,000 pointa plunge the negativ 7 h 700 is as far as it's gotten. >> that is where we stand at the moment. rebring back our panel. n't all for final thoughts. we're going to go around the horn starting with you susan. what do we make of this here as we are so close to the end of the day and still seeing the volatility that's hard to interpret in any direction. >> right now the circuit breakers in the market are off. if we go down below 7% for the entire market it shuts down trading for the day. and on individual stocks the percentage you can go up or down is doubled from what it used to be during normal trading hours. that is where you are seeing potential a little more downdraft at the end of trading.
on thursday we're getting revised gdp for the second quarter. people are expecting significant upward revision pointing to the strength of the u.s. economy. and then the feds summer camp for bankers in jackson hole wyoming this sunday. and we're expecting to see comments about whether or not they are going to raise rates. >> i'm curious about larry somers said it is starting to feel in 97 and 98 and 2007 and 2008 where you have the start of much bigger problems. the question is these things can snowball and can you get a snowballing loss of confidence. what we saw in 1997 and 8 were financial crises cascading across asia as lenders got nervous and pulled out leading to crises in government. we've had improvements in how
governments fitness themselves in asia but i think would make that much less of a risk than it is now. maybe it is starting to look like an insipt crisis like that or maybe it is not. in. >> try not to get mesmerized by the markets or twitter hysteria. try not to get mesmerized by political nonsense. instead look at big picture and the longer trends. i think we're due for a shrolow done. due for a downturn. how is that going to effect the u.s. and the politics. that is the story in the u.s. >> i was on your sister network in april and june telling people to sell china and to go to cash.
i see a 20% correction in the u.s. market. the trend is down. it will stay down. and it is reflective of the underlying structural imbalance in the global economy. the technicals of the market reflect the fundamentals of the economy. that is where we're going. >> and david, what do you see on the foreign policy front here that are any other movers and shakers for the president? >> well i thisty big thing is going to be the president is going to be meeting with the chinese leader and they are going to have to have tough talks about some of the things we've been talking about. obviously if it shakes places like brazil, shakes places like russia, like saudi arabia, as this economic downturn well may do, it could trigger other crises and people the president very busy for the last time he's in office. >> and an update. we have some indication of a late in the day closing rally
here. josh barro your final thoughts as we see the market inch by inch minute bial minute up a little more. >> as the talks happen with china it is important to keep in mind so much talks about china as a competitor for the u.s. this is an area where is china is good for china that will be good for us. that will have the best possible ripple effects for the region. that is not us versus them. this is us hoping they do what's good for them because that's good for everyone. >> five minutes from the closing bell. thanks to each of you for being was on this busy hour. we are minutes from the close. we'll be right back with that final check of the numbers. ugh!! no one burns on my watch! try alka-seltzer heartburn reliefchews. they work fast and don't taste chalky. mmm...amazing. i have heartburn. alka-seltzer heartburn reliefchews. enjoy the relief.
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we are back. watching a wild day on wall street. the dow started about 600. we are down now 500 points on a very busy day on wall street. i'm ari. we're watching the markets now. they should be closing any minute. and obviously it's been a tumultuous day on wall street with the dow already looking like it is going to be closing in the 500 but there are a couple of minutes left. we'll have all that information for you and take a look at what this means for the average american. you can see that down about 530. that after plunging nearly 1,000 points at the opening of the
market this morning. so queer going tawe're going to and watch right now. we're waiting for that closing bell to happen in less than a minute. as we were saying, the market dropping about 545. you see it there on the screen. 545 points. the selloff starting halfway around the world in china today on growth fears. the dow bounced back a little bit. but it continued to lose throughout the course of the day. at one point dropping as far as 1,000 points, just a little over. and this obviously comes after china's market dropped 8.5%. it is the biggest one day percentage loss since 2007 in london stocks also had their biggest free fall since 2009. let's listen to the close.
all right. we're going to be courtney reagan joining us live. the markets are officially closed now. everybody wants to know what happened? >> there is a lot of things we can talk about here. but let's start of course with the idea that a lot of this came out of fear or concern or maybe even if you want to use the word panic. we saw our stock market fall precipitously on friday. and over seas is really where the selling started to skrert. so european