Although the big story is about this rout. We have the number Commodity Index near a 13 year low. 13 this year. If we look at individual commodities, and little bit of discrepancy. Rent crude brent crude trading below 50 a barrel. Gold recruits some of its losses from earlier. Investors very bearish. Goldman sachs saying it made below 1000 per ounce. Copper heading into a bear market. Lets take a look at our commodity currency. Climbing from a six year low. After the rba held rates at a record low. Back to you. Mark jonathan lets get to the asian market rout. Thanks john. A very good morning. A look at the shanghai composite. That is what we are doing today. Three clock p. M. In hancock and how kong. The. 7 . That is a 4. 5 swing. For any other market, that would be the best day in years. For shanghai, we know how wild things have been. That is the best day in three weeks. 3756. This is despite this new rule in play. Making it harder for you to profit from short positions. Another thing to mention, you have 18 of this market that has taken a backseat. That is playing a part on why we are not seeing a lot of volume in this market. Thats a spike up 1. 2 . It looks big in the scale, rba practically unchanged. It is barely seen a flip. Down 18 . Look at the auctions market. Were looking at 18 . Further rate cuts this year. We will see how that exchange. We saw a spike in the Australian Dollar. The other market story, very quickly. Commodity, that is front and center. Oil below 50. Jon, back to you. Jonathan lets get to the rba decision. The bank of Australia Holding rates at a record low. For the First Time Since march 2014, removing language that suggests further hold and the aussie dollar is necessary. Michael, talk to me about this change in language. How significant was that . Michael it was very significant. It was a game changer. It was unexpected in the market. The rba has had a consistent job earning policy. Depreciation is likely and necessary in order to rebound the economy away from mining. Today, removing that. It is significant. As you mentioned, it set the Australian Dollar higher. What is suggests is the central bank is comfortable with where the currency is sitting. It might suggest that they are thinking Global Forces our cleat our cleat are keeping a lid on the currency as well. If the United States raises rates, it narrows the rates and australia rates in australia. They are comfortable at this point. Jonathan i got Research Note after Research Note that cannot make up its mind whether the rate cut cycle had ended. Or whether the hurdle that higher. What is the story . Michael on one hand, it has been called a bit. This keep easing monetary conditions. It suggests monetary conditions are ok. Weve got a slowdown in china. That is obviously going to impact us. Although prices, which is australias key export, it has rebounded slightly. Australias unappointed rate has a stabilized australias Unemployment Rate has stabilized in recent months. The general trend seems to be that australia things are slowing here. The royal bank this is your bank, they are keen not to add to that. Its a case of seeing events play out. With the dollar they are comfortable. Global forces will keep that contain. That means it is not as strong as it was. Jonathan thank you for joining us. Michael talking about the impact of oil prices on australia. It is been a cruel 24 hours for the commodity market. The bloomberg Commodity Index falling to a 2002 low. The brent at 50 a barrel for the First Time Since january. To wrap it up is philip sladek. What should we make of the oil prices and below 50 a barrel again . Echo, made, we were expecting this rebound. Is the low really entrenched now . Philip there is not a lot we can expect. The data does not look very good. European data not great. We can only hope for some improvement coming from the supply side. To be honest, this might only be to political trouble. Something like yemen prices. Otherwise, fundamentally it does not look too good. Jonathan thank you for joining us this morning. To get the investment view chief Market Strategist for u. K. In europe at j. P. Morgan asset management. Stephanie, great to have you with us. Im looking at the commodity market, brent is up 50. Copper almost any bear market. Seemingly, the world is ending. Bring us reality here. Is it all about supply . Stephanie what is happening to commodities and world trade, it doesnt see much flash of red light. It does give you a . It does give you a question mark about the strength of the global economy. It is primarily an oil story. So far, you have seen all of these other routes and commodities. They say copper is the only one with a phd in there is a structural shift in demand. China is in producing the kind of momentum for emerging market economies that it was. Were not seeing america or europe take up the slack. There is a general softness which you see in reduced activity. The see the world trade growing slower. I will about the pulley clip . I do not think so. You see strength in the u. S. You can see europe. The one source of positive surprise over the last few much. I dont think this is telling us we are headed for a crash, but i think it shows us we are not out of the woods yet. Some of the things that helped us get by when things were difficult. Particularly, australia or canada, you are able to come through on is crisis, because you had that support from other things. Some of those supports are not there, because we are left to our own devices. Countries are going to have to use their own domestic demand. Jonathan the world is not ending. When i look at the headwinds. Whether its apply a demand kvitova got the strength of the dollar over the last month that is pushed these commodities down . Stephanie the beginning of the year, i think it was clear. I think what is interesting about the oil price, where good to have debates about whether its the supply or demand side. Increased demand in response to the fall of price. Not as much as we had hoped. Now you have it wrong. Now you have iran. They were instrumental in changing the supply john when you add everything up, we see commodities fallen off a cliff. You see wage pressures in the United States. That paints quite a deflection. Now we sit here in q3, should we be worried about that dynamic . Stephanie i dont think weve gotten to that point yet. There has been this downbeat. The data coming out of china. The lack of wage acceleration in the u. S. Lots of different parts of the global economy. When you combine that with the commodity price for bringing that negative effect we know it is going to come down the track again. It makes you wonder, are we going to feel like were in a different world . I dont think were quite there yet, but if we continue to see all of these forces, they are going to have a headline affect on countries that would have been thinking about hiking rates. Jonathan if youre looking at payrolls coming here friday, that would be huge for whatever they do in september. Whenever down data, for me seemingly there is a bigger case for the bank of england. Nevermind the Federal Reserve going first. Stephanie i remember we had they were looking at the same kind of data for each of their countries. The u. K. Data was a stronger. U. K. Data around wage acceleration. But also productivity. A lot stronger than in the u. S. We keep getting provisions upward to the u. K. Productivity numbers. Why u. S. My u. S. Colleagues do not believe me. Where going on holiday in august. If youre just looking at those factors, the same one the same ones the u. S. Are looking at the differences are key. The reserve bank of australia are dealing with. Much more of a factor for the u. K. Neckline and much more direct effect a much more direct effect on the economy. This is a moving story. If youre just looking at the domestic economy jonathan does the fed capitulate . Stephanie it is going to be hard for them. If we see the Employment Index like this on friday, that was a difficult number for them to swallow. A complete lack of wage acceleration, it becomes harder for the number. Sometimes they say we get all excited around the september. Your member what happened . I was sitting in new york waiting up for it to happen, it did not happen. Then they didnt announce it a month later. The fed said they dont want to raise rates in september in december. Jonathan if he gets pushed to 2016, is it equities . Stephanie i think we are in a holding. I think we are in a Holding Period with equities. It doesnt feel like you can have another leg up in valuations. I think we are waiting for clarity in both directions, whether it is equities. Jonathan stephanie flanders, think you very much for joining us. Coming up, china puts the brakes on bmw, the Worlds Largest luxury carmaker, relies on europe. The greece battle, we are live in athens after a fiveweek shutdown. U. K. Makes his first sale makes his first rbs sale. Stocks are lower across europe. We are back in two. Good morning. Jonathan welcome back to bloomberg tv. I am jonathan ferro. Lets bring it up to speed. The shed 5. 6 . The lowest price since the companys ipo and november 2013. Just twitter below a value of 20 billion. The company warned that it will be a while before it stems the slump in user growth. One of its agencies defaulted for the first time. 58 million and printable is due. But futures prosecutors are investigating trades worth billions of dollars led by Deutsche Bank as recently as this year. That is according to people with knowledge of the situation. The justices that the Justice Department probe move funds out of the country without legal authorities. We heard secondquarter earnings from bmw this morning. Results were in line with expectations. A sharp slowdown in demand from china maybe the desk may lead the company to revise its forecast. The initial take away from the bmw numbers. That is right. The bmw shares are down after bmw said that while they were maintaining their forecast, they cannot rule out having to lower the forecast later this year. China continues to be a weak market. Really, carmakers across the board have been saying that china is now becoming a weaker market. For expects the market to be down as much as 5 this year. Audi last week, cutting their Sales Forecast on a wiki sales in china. On week sales in china. Jonathan check thomas, thank you very much. Bmw stocks down by 2. 29 . Head of Market Research at asi joins us. Where going to talk about margins. I said early this morning, i never thought i would read this, at least twos ago i didnt. And recovery in european car demand. The strength becomes a weakness. The expect that to continue . Firstly, europe is in a recovery. Europe, consumers are coming back. We have become comfortable if not complacent with china growth. It is a Straight Line to 30 million. The market is flattening out. Everyone is talking about a crash. Co bmw used the word normalization. Quite kill white clearly, china has about this quite clearly, china has about this much room to grow. Secondly, the market crash must have left the consumer sentiment. There are a couple of things coming together. We should keep in mind, receipt has been taking out the lights. Jonathan do i get a profit warning from bmw . That is not our forecast. They are confident that the second half will be flat compared to the first. I just look to the Company Early on, when you speak to them, it is not embedded in their forecast. China will correct. They have a couple of new products coming. They have to say that in their statement, but i dont think it is going to happen. Uncle jonathan how disappointing where the margins . Arndt in bmws case, it was a. 4 . Guess it was 8. 4 . The company is a 20 main dollar exposure. You see the full dollar impact in revenue. Some of it is explained by that, but they are hoping that desk costs are cooking up. Costs are creeping up. It is a quarter. I think it is a pretty solid number. Jonathan to put it in context in the luxury sector, where are we compared to the rivals . Bmw is in the third position when it comes to the germans. Audi is number 10. They are all in different cycles. We see this is way up there. And his fleet. Audi is coming with new product. For bmw, it is a 18 story. There currently at a low point. But they are accelerating. Jonathan looking at europe, my mom is happy because she fills up the car with petrol what does that mean for the car sales . D. C. The translation affect . Do you see the translation affect . It is very obvious with low financing rates fuel costs are low. Consumers feeling happier. Other prospects of getting a job. Car demand is recovering. Some consumers even save money when they buy a new car which is more fuelefficient at a lower financing rate. That is driving demand here. Jonathan thank you very much for joining us here. Greeces stock market reopened yesterday for the first time in five weeks. Investors spent the session selling which is a moment away from a second day of trading. Hans nichols is in athens. What are they expecting from todays session . Surely not another 30 drop down. Posco the banks could hans the banks could drop again. That was about eight minutes from now. We open at about five minutes. Well see how long the bank stocks trade until they are halted. Some stocks could start creeping up in the positive territory today. We do not know. The prices are inaccurate because of the restrictions there were put on greek retail investors. They have certain restrictions. They have to come up with new money. We are going to have to wait and see what happens. Remember, 30 drop halted a lot of the trading. That is no longer in place. You can trade this morning. We do not have a bad bank set up. We dont have any clarification on what theyre going to do. Jonathan hans nichols, thank you very much. What is in store today . Find out in two. Were back after this break. The only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. This is a great place to work. Not because they have yoga meetings and a juice bar. Because theyre getting comcast business internet. Comcast business offers convenient installation appointments that work around your schedule. And it takes done. About an hour. Get reliable internet thats up to five times faster than dsl from the phone company. Call 8005016000 to switch today. Perks are nice. But the best thing you can give your business is comcast business. Comcast business. Built for business. Jonathan good morning. This is bloomberg tv. We are 30 minutes into the trading day. I am jonathan ferro. The ftse 100 in the red down by. 5 . Such of the board quickly. Switch up the board quickly. A stronger euro this morning. And much stronger aussie dollar. We travel higher against the dollar by 1. 2 9 . Rates remain unchanged at the rba. Feeling which in the statement, omitting the reference for the need for a weaker aussie. Brent crude just below 50 a barrel. The First Time Since january. Oil higher this morning. Copper, flirting with the bear market. Big moves in the commodity market. Lets get the big stock stories with neeraj che. Nearest call the largest taxpayer owned bank in the u k. For the first time, the government has held shares since the bank bailout. It sold them at a discount low for just seven pence per share. 407 pence per share. 72. 9 . Bmw also one of the biggest losers on the stock 600. Stoxx 600. A sharp slowdown in chinese demand might need it to provides revised commodity goals. China is bmws biggest market. This actually is one of the biggest gamers on the stoxx 600. Europes second biggest makers of auto parts, but it has raised its target because of growth. Lower Commodity Prices have helped it with lowcost. Act to you. Jonathan of the big moves, greece is just opening up here thats after it slumped a percent in its first full day to of first full day of training and five weeks. He is the partner in Group Managing director of axial group. Great to have you with us. Opening a little bit higher this morning. A big drop yesterday. As i commend, the second day of trading, the question is how do i price some of these chairs . Can you tell me . It is hard to say yet. It is a matter of having a lot of sellers and not buyers. It really affects the situation. We have to expect it will prevail today. Jonathan can you be more specific about the restrictions that are exacerbating this move lower in the last 20 for hours . What would your advice be to the regulators . There is a big issue the restrictions only apply to the greek retail investors. They are not able to use fresh cash to buy into the market. They can only import new cash. They can only use the cash available to the brokerage accounts. The restrictions affect the of the market. There are no researchers whatsoever as far as the foreign institutional buyers. Jonathan Going Forward i have concerns. As an investor, i have the economics. It looks ugly head i look at the politics. It looks unstable. The third one, the capitalization. I dont know what statement the greek will take. What do the bank recaps look like . You are absolutely right. Those are the two major items in question. First, political stability will be determined in the futures market. It is a big credibility issue. No other market has been closed for five weeks. This affects how the market reacts today and yesterday. Going forward, outside of the bank recaps, nobody knows exactly how take shape. We know we have the a q ours where going to have a collective assessment that will be completed in september. Recapitalization will take place and of october. This will determine as far as what were going to do with equity. Jonathan a final question to wrap all of this up. Density percent yesterday. 1 today. Down 16 yesterday. 1 today. What is the future of the athens a stock exchange, considering this date