Center right now. Were starting to see more evidence of stimulation coming in. M a speculation. You are beginning to roll some of the Biggest Companies together in china. That is an effort. Yes. Exports as well. Still the best today rally in a month for the shanghai composite. You dont need shippers in the way that you once did. Maybe they need some help. This is the mna story of the morning. A story of the morning. Greases the story im really interested in. We all know what is happening with greece. Today he could see a deal. At last. We need to deal them by august 20 been that big ecb payment comes through. Another payment and another deadline. There is speculation that government will accelerate growth around state owned companies. Give us the rundown. We are seeing the shanghai composite higher. The rest of asia not looking so good. It is an interesting divergent. Quitembers were discouraging. Some market seeing some turnaround now. Japan of about 3 10 of 1 . Beenig story that has driving the composite higher, look at this 3 gain. Despite the decline, there is this shipping story we are following paper following shipping stop spewed theres a lot of speculation in the markets that china will merge its two biggest shipments. Companies. They do a big business. , it is chinas ongoing efforts to consolidate and rationalize some of the state owned industries. Make them leaner and more competitive. We had china doing everything it can to stem the drought. It is a big concern for investors. That couple with economic slowdown and abysmal numbers leading to some skepticism among investors. The thick a look at some of the shipping stocks we have been following. Kong. In hong they are suspended in pending further news. This is what we have right now. We have the shares rising. 10 gains. Just a snapshot of some of the companies that are connected. There is investor enthusiasm. It is a key reason why they are not so good economic numbers. Back to you in london. Andy. Nk you very much thank you very much indeed. The shanghai composite is classic story of what we saw in europe and in the u. S. Composite. Shanghai here you are. P to drop. We come peaked to drop. How much has the government had to do to control some of that . , the Central Banks had been five if over the past not decade or so of quantitative easing. They are issuing infrastructure bonds. Yep that. Is not ending at. We mentioned in a couple of times. What caught my eye is a large drop in exports. A steep decline in ppi. Continuing to fall. Stephen engle is in hong kong for us. Data out over the weekend. What does it lead to . It leads to a lot of debate whether there should be more stimulus from authorities. Type of kneejerk reaction we get when numbers are disappointing. The oftentimes go up on the stock market. People automatically assume the government is to step in and stipulate that stimulate. Step in and stimulate it has a really sparked the economy. To the had several cuts requirement. They still have a lot of room to grow. They expect at least another benchmark Interest Rate cut. T least a 50 basis point cut we no longer have the stock market giving an artificial sentiment boost. That is what they are talking about right now. More stimulus from the government in the form of policy easing. There has been rumored talk about the old cocktail selling bonds throughout the provinces. Railroads, bridges, and the like. And of course, many people are looking at the strength it had on exports. It coulde saying depreciate health exports in the future. How likely is that . Has been the debate that has been going on. There has been a bit of a race to the bottom. The euro has been weaker. We saw this reflected in the monthly export numbers. 3 . Ts were down a much more than expected 8. 3 . Much more than expected. Allow the currency to depreciate. Depreciating the currency, we have seen it with japan. It has taken a couple of years to process. Good china go on a depreciating trend . China go on a depreciating trend . It is not likely. It would not please its trading partners like the u. S. Thank you very much indeed. More details on this story. Bloomberg reported that they will be merging. What is the latest on this . That the hongw is kong listed units for the ping companies lot were suspended. We know Something Big is coming. What we have heard in recent months are Senior Leaders saying they were turning their attention to state owned enterprise reform. This is known to be high on the policy agenda for the leadership. This seems to be a new step in that. Big thing to remember is that they have dominated so much of the economy. If the economy is looking for areas where it could spur growth and allow increased lending i policy banks and some of the other measures you guys tioned, we have reformed making them efficiently be a natural next step. In terms of that bigger picture, talk about what they are deploying going forward. Will it work . I think theres a technical issue. We will move on. Thank you very much. Greece concludes talks with the Bailout Program. We need to see a deal early this week in time for early funds. 3. 2 million ecb payment. We are watching that. There was a fivemonth shutdown. The index plunged. We will get an update on how ugly it has been for greece. We look forward to those numbers. It is a busy week for data. Tesla. Up next, embracing the dark side to make its cars. Should china continue to accelerate reforms . Stay with us. It is 6 14 a. M. In london. The two companies were suspended from trading on monday. There is slow demands for chinese goods. 3 below thed a estimates. The greek government aims to conclude talks on its program. Funds. N release the euro finance minister meeting will be held at the end of the week. Right didnt lets reaction to the china data. It was right. It is increasingly looking doubtful. Heres the head of asian strategy. To a bigikely to lead win when it comes to the headline gdp numbers. Give us your take. The biggest was negative. Can they keep nominal gdp from contracting . Downwe saw was contraction to around 6 or 7 . Look at currency indicators. Might be as low as four or five here it can they maintain nominal gdp . Gdp thatl jet to is where you end up with greece. Strategy,s of the china needs to impose reforms. What are the reforms you are hearing about at the moment . Key assets shipping companies being talked about at the moment. With this be what you want to see . Not at all. Unfortunately, we dont hear anything. It has to be known capital reforms. All of that is important. Productivitylerate in a domestic economy . Is agricultural services. Combining a couple of shipping come days. 10,000 state owned Enterprises Across china. How can you improve productivity of that area . Look at agriculture. It is actually in agriculture. Agriculturalad a revolution. As far as i can see, none of that is happening yet. That is very longterm. That takes generations to fully put into place. Now. Start planning how do you think theyre going to manage the story in the short term . A new storese is surrounding stimulus. How does it get managed in the short term . Two or three things. China is one of the few Major Economies with this positive real Interest Rate. You are still positive in real terms. That is nothing. Interest rates could go to zero. Number two, theyre still operating at 1618 . The answer is absolutely. Potentially lower than that. They are reeling for it to accelerate. Finally, fiscal spending. It is still relatively light. That is including the Balance Sheet debt. It could run higher. It is really monetary stimulus. It is needed. If you embark on a structural monitor policy, you get people in the streets. You have got a problem. Yet all of those things happening at the same time. Visit tend to be unleashed with fiscal stimulus . Yeah. You are selecting amongst ugly sisters. Would you rather by commodity producers rather than commodity consumers . Would you rather by those were dependent or a country that has significant liquidity . Everybody had substantial problems going forward. When you think longterm but , what is thening investment . A tactical play . How should i think about the Chinese Market . View, if youint of are finding a market as a whole, you should buy practically the view should be no more than a few months. The drives it is liquidity. That will continue to be the case going forward. Do you think china will stimulate . Your stockpicking has nothing to driven it has to be by fundamental analysis. Oft china has is a number interesting things you could invest in. Thank you very much. Great getting your perspective. Lets talk about what is happening with the fx story. You see data like this. The aussie and the kiwi both trading down. Strong. Ar is incredibly resource related. Through. E a hit coming the euro, there is a big move on friday. It is not all oneway street. Big news breaking over in turkey. Lets get details on this. And looks like a series of attacks. Looks like what appears to be an attack in a number of locations. Someme are saying residents have been asked to evacuate. Wounding five Police Officers. Bombing. A suicide it collapsed apparently. Agency is quick to refer to that as a terrorist attack. Tother they were referring kurdish militants it would seem unlikely. It is too early to say exactly who. There worrying and the trend we are seeing. Screen. Bring up the bounceback subsequently. Start to sees we maybe changing policy becoming more aggressive. Certainly. Still dont have a new government in turkey. There was the possibility that they would maybe somehow be part of the government. They are supposed to be up of politics. They are not keen to have the kurds involved. It is very complicated. And of course financially as well. A calm has prevailed for a number of years now. It is air based their. Complicating the turkey situation and relationship. This is an ongoing situation. You talked about the surrounding areas in the middle east. Be the next line of thought . Turkey has one of the most powerful in the region. It will take care of itself. They are concerned about what is going on. You have got the political calculations. It is attacking Islamic State and Kurdish Forces as well. We do get a very top located situation. My enemies enemy is my friend. It is not really adding up in this situation. There is a suicide bombing. Scene. Attended that perhaps it in is an ongoing situation. Well get more details on that from istanbul very shortly. Welcome back to countdown. T is 6 30 a. M. In london here are some of the stories you need to know. Countdown. Two Major Shipping Companies. This is according to people familiar with the matter. Data out of china 8. 3 . Orts dropped government is in talks on his third Bailout Program. There is a payment for the European Central bank. It could be held at the backend of the week. This is according to officials familiar. Lets kick it off with greece. That bailout likely to be passed . I think the news is encouraging. It is still on the table. Remember it is not until the end of this year. You have to be careful. What is the solution going to be . There is no doubt about that. Willingness. Es a this is a positive sign. Me think about your investments, do you care about reese . Greece . You saw the numbers. Gamble. It is a big for the future of the eurozone, there are skeptics. That it wasremember at the bottom of the class. What is the eurozone about . See. Greece is doing reasonably better. Greece had an option. It tells you there more implications. You are actually quite negative longterm. You feel a grexit is likely . I dont know. There has to be a lot of money to be paid. How do people feel about it . How long can they continue . Were talking about structural, that is a positive sign for the eurozone as an economy. There have been many remarks to scare everyone else. Of that contagion can take an effect. Everyone react strongly and does what they need to do. If germany looks to greece as an isolated case, you could make it work. If you start seeing negative concerned,nd may be i dont know which one it would be. It is multiple countries. That may be a different story. Lex that is what worries me. It is interesting you mention that. They should spend all the money in europe. This is a wait and see what will happen. The cost has to get paid. Debt relief will be agree just in the end . Everyone comes on board. Greece is in a big problem. Are you not really worried about it . When you try to calculate, how do you go about it . A slight discount. Weak. Tinues to be very on a mediumterm basis, you are not concerned. The economy, how much is the that that ecb i think it is being played out openly. It is being questioned. It is a good thing. Structural. S the writing is on the wall. Ecb is playing the part and helping out. It is extremely positive. It is not just an easing money policy. There. Ill leave you lets carry on with that conversation throughout the hour. Lets talk about oil now. It is doing something it hasnt done in years selling bonds. Talk us through this option. This is just the start, right . Enough to buy a few more back scratches for the royal family. Cass reserves of almost the same amount. Not a huge amount in the grand scheme of things. Why would they be doing that . Well prices. Thes having a big impact on economy and their reserves as well. Involvedsaudis being with the fight against the Islamic State as well. Theyre trying to maintain lavish spending. It has got a lot of needs for cash. It is not a huge amount. It does represent a start. The could be something in the region of almost 20 this year. They could manage it a little while. Arabia is trying to open up its economy more. That was back in june. It has sold at a shorter term. Get in. S investors to provide some kind of wrench mark. Allows them to tap into the Capital Markets more easily as well. Not just about the money. Markets to perhaps a more normal place to invest. Thank you very much indeed. The World Biggest gas producer could be hit hard by declining energy prices. Lets bring in bloomberg intelligence. The russian ruble sort of helped. Yes. Profits have more than doubled. Thing. A good it could help. Offset. Also be it is either a dollar or eurobased. Debtay see an increase in or liability. How long does it take for into therefeed is a link between the two, that it takes a while. Their gas price is at the very long time lows. As a result, we have seen tries like germany lag e have this we will see two things. Prices may be low. It will go for bigger market shares. Taking the pain. Yes. Thank you very much. Great having you on. Please join us on twitter. Indeed let us know your thoughts on all things china, greece, turkey. Coming up, we update you on the breaking news out of turkey. Gunmen have opened fire at the u. S. Consulate in istanbul. Update. Ll get an plus, it could be one of his. Iggest deals to date welcome back. Hear the stories you need to know. Countdown. Two Major Shipping Companies are merging. Suspended from earlier trading today. Goodsw demand for chinese. Dropped a. 3 , well below the estimate. The greek government concludes talks on a Bailout Program. Them to pass a deal on release funds before august 20 when they need to make a payment to the ecb. Finance ministers will be meeting if the Greece Parliament passes any required reforms for the next couple of days. This is according to officials familiar with the talks. Pit its talk about m a could be one of the biggest deals to date. It could be a 30 billion how does it feel . Once again, it is an industrial place. Rather than just focusing on the stock of picking and insurance area. There was metalworking in israel, for example. And the biggest one ever. Railroad. Rn santa fe ewhere in the region of there make a longterm bets. It would pay off big time when he is longterm it he will be 85 by the end of this month. They have a long track record of good margins. The revenues. And important customers. What does this company do . Im glad you asked. [laughter] engineering, technology, power ,lants, oil and gas industry most of the aerospace industry. Very specific stock for a very big company stuff for a very big company. The relationship has in doing for many endured for many years. Thee could look at some of customers. They are very embedded. Got boeing in there. When you talk to the ceos, one of the biggest concerns is the supply chain is stable. Ramping up production at the moment. Up. Have got boeing ramping it is these companies that they rely on so much. Is are the blue chips. I guess you cannot really see it that way. The top when there is General Electric. The other is the u. S. Government. Companies viewed big blue chips. It big organizations. It is important for these companies to have a reliable supplier. It is important for one buffet warren buffett. This is a big deal. Great. Is point. Oing it at a price it isnt going to be the biggest ever deal. Is not lookingtt to make a quick profit on this and sell out. He is betting 10 years, 20 years, 50 years for these companies. It looks through these like a banker looks through situations and inflation in the light. He looks through the variations. This is a Good Opportunity to get in there when the stock has been falling. When he goes into a stock that is not well understood come he does his do ill down he does is due diligence. That includes 36 billion. That was debt. This would be the secondbiggest. Then you go down the long list. Major deals. We see a shift away from things like insurance. It caused Berkshire Hathaway and to miss estimates. Why would i want a company that is an aggregation of a and connected businesses . Insurance companies and engineering for the aerospace industry. He mentioned theyre looking to move into new sectors as well. You said earnings were not very good. There are concerns about. This is an industrial come any. Company. If you are able to spark a garden with a good company, you go and buy it. The second thing come it is good to learn, which i did not know. [laughter] it, they areook at supplying some of the Big Aerospace companies. This is a sector that is in a longterm ramp up phase. Boeing and airbus, huge numbers over the last year. This ould execute on he doesnt do anything for the shortterm. We h