Text a record move in terms of the yuan. The dollar peg has been there for some time. You can see that clearly in the chart. Usingre going to start the market as a mechanism. It is going to be interesting because it will have a big affect. You mentioned the story against the dollar with the euro, with the yen. It is going to be interesting. How does the fed react to that . Reservewill become a currency. Google is front and center. Becoming a Holding Company. Only if you are a stockholder. This is still google. Also in the car area and the future of heating. You made a good point. In some ways Berkshire Hathaway is becoming google. This chinaabout story a bit more. Lets talk about what the mere the Market Reaction may be. Hong kong and find out what is going on here. Take a look at these markets. It is a significant announcement bythe chinese, downgrading the most in two decades. You will see limited moves in terms of market moving to the upside. The dollar you on, there you have it. Check out the shanghai composite, down today. We had such a significant move to the upside. A 10 move to the upside. The enterprise index has chinese shares doing well. We will watch this very closely. A significant move by the peoples bank of china. Ofwill determine the course how investors look at china Going Forward. It is something the International Markets will be following closely today. That is the Market Reaction. Lets talk about what this actually means. Caroline moves have been made to devalue the yuan for the most in two decades. For chineseis mean exports . Are we really going to see a 1 devaluation . I think you have a real bump in exports. What it does reflect is a broad concern about chinas lesser competitiveness in International Markets. The export numbers over the 8. 9 and wereown so bad. Then you have broader Economic Indicators with the governments growth target of 7 by the end of the year. It does reflect concerns the market wants to make it more competitive again as it loses ground. Lets talk about motives. The currency has depreciated quite a lot. What is behind this move to incorporate the market . It does say a lot for how tightly managed chinas currency such at the change is huge news. The government is saying this is giving the market a greater has beent the yuan under deflation pressure. This is allowing the market to play a greater role. The other hand, it is a very convenient reason when it will obviously help chinese growth. Exports will get a boost. Chinese goods will be more competitive. It serves those ends. To see which one is reform or theity, chinese economy by the end of the year. Caroline thank you very much indeed. Talk about going to google, but we are focusing on china right now. We have economic data. The slowdown appears to be deepening. For furtherst calls sanctions. Welcome to the program. In some ways we should have anticipated this. The economy has been strengthening. Why have they done this . Nick mentioned growth being the target. Case, believe that is the it is looking at real data. Ratepoints to a great closer to three and a half percent. They have entered the currency wars. I think the implications are fairly global at the top of our global risk register. It has the potential to set deflation around the world. The economic recovery is very soft in the eurozone. Export led deflation of the euro has to face off against the yuan, and that is going to be difficult. They are trying to claim this is strengthening the markets role. Are they going to let it play out . Right. Second answer is the market wont be determining this. This will be the visible hand of the Chinese Government. You mentioned the derivative effects. Does this have any meaningful impact on whether you move or not . September looks like a likely move. I think it does fundamentally affect the speed. I think they are likely to be much shallower as a result of the potential of deflationary forces. This was a record cut. They would take a longterm adjustment. That really changed the game in terms of what we hear and what we believe. I think it would be difficult for the chinese to say anything else. Say, we be logical to will slide this out. When we get to a situation where a week r b is expected to be the driver. If the chinese were a. Eneficiary are there any other winners area it gets delayed further. We see asset bubbles again. Are trying to tick the box so it can become a reserve currency. Against this is working the imf. What do you think . How will they be interpreted . Imf are assessing the criteria based on economics. There is an awful lot of politics involved. Think the assessment is based on the stability of the r b and the dollar is not correct. I think what the imf will be looking to do, what other leaving you say you are the Exchange Rate, but what about losing unlimited amounts of money . Is that a further move you expect to make . Inthey are expected to go that direction, the imf could come down. To talk aboutg greece. We are going to talk about a lot of things. I very much appreciate your analysis. Up, google spells out a new future. We break it down. It is 6 14 here in london. Here are the stories you need to know. China devalues by the most in two decades. They cut by a record 1. 9 . He triggered the biggest oneday loss and 1994. Discussions continue into the early hours of the morning. Negotiators focused on the details. Google is reorganizing the company after a new Holding Company called alphabet. It gives more independence while offering more visibility and plans to expand new businesses. Lets get more on this. Alphabet. What is in a structure . Talk us through what they are doing. They are changing the official Holding Company. To look upng alphabet. That is going to tell you what your shares are. Be goog. T will still the actual name that will come up is going to be the alphabet. Namesay they like the because it means a collection of letters that represent language. It sounds like a bit of pr. We also like that it means onha, meaning return investment, which they strive for. We have all of these disparate businesses, and they want to be able to have them be more focused and independent. We all know about google. That will include youtube and maps. Contact lenses. Calico, which is one i wasnt familiar with. They help with finding ways to make us live longer. Google fiber, google ventures. I think also opportunities for sponsorship. Will stand for boston dynamics. What is interesting is the way they are splitting up their roles. Thinking about the future. On. Are passing the helm investors like it. They like the change in the guard. Larry page will be ceo, and sergei brin will be ceo of alphabet. The best people will run these businesses. Visibility, we see 60 billion in revenue a year. Google provides the majority of that. We encourage you to see how much contribution other businesses make and perhaps how much businesses strain from the organization. Tos may give some pleasure investors. Say wifiey will balloons isnt something i want google to be doing. Thank you very much indeed. Radio free to the mobile founder, richard. Letsns us on the phone. Get an idea of what this means. Good idea, bad idea, inevitable idea. Less good idea. There has been considerable time for whate they call the unicorns to be stripped out of google so people can see how much they are investing. It will give much better visibility on the core business on which they are really making their investment. It definitely gets a thumbs up. What do you think in terms of what transparency is going to bring . Are you expecting huge amounts of money . Do you think you will be impressed or slightly unnerved by the amount of money plowed into these . The answer is it will not be as much as people feared because of the numbers were going to be very big people will say, that is dreadful. The real issue is the two things the move does not address. One is Corporate Governance and investors input into how it will be run remains the same. Of google as we not change. Y may that part of visibility will not change at all. I would have to put the brakes on the idea. Quite frankly, it has got to a point where it is looking much more fairly valued than it was. I would think about putting the money somewhere else. If they were to significantly reduce expenses there is more upside. At the moment it looks fairly valued. In terms of who is going to forward,g this company do you like the fact this is being split up . They are going to be more future focused . Im not sure it is making an enormous amount of difference. I think from his perspective it formalizes his position. Day today is not going to change that much. Still bewill controlled by the founders of the company. That dynamic is it going to change at all. Inks for the analysis. Thanks for the analysis. Alpha aa good bet good bet . I guess it depends on whether you see investment longterm and try toerm, whether you get into new spaces and try to be disruptive. Becausepeople take this the earnings are so good. Longerterm, do we like this transparency . Is it a good bet . Would you put your money into this company . They are spending 4. 6 billion on the stake in order to bolster the ecommerce giant. Why should alibaba want to do this . What does it ring to the table his new acquisition . The core confidence comes from the selling of consumer electronics. That is something alibaba has tried to play catchup on. That strikes at the heart of its competitor. This is the largest acquisition alibaba has ever made. Having that stake would help alibaba get that extra push into these areas. Prices were up in terms of valuation. Theill have to see how collaborations are going to carry forward. They were going into retail space is. How will these Companies Work together . There is a lot they can work on. Alibaba wants to expand its network. 300 cities inmost china. As alibaba moves forward into the smaller ones and rural areas, warehouses, storefronts, and also with cystic centers could get that push to reach some of those places in terms of in a fast as two hours. What does this mean in terms of overall strategy . Where is this acquisition going to take it . Does it change anything . Thats an easy question because alibaba has become so much more than simply an ecommerce platform. Stretched in so many sectors. If you really wonder what they want to become, but they still want to remain in the platform. That is the core of the strategy. Thank you very much indeed. Twitter closed after it unveiled a deal with the National Football league. Dorseyf executive jack promoted the purchase with a tweet. The cfo also bought shares last week. What is talk about coming up next. We are going to put our money where our mouth is. We are going to talk about what is happening in china. About going to be talking the head of equity strategy. He is going to give us his take. We show you what it looks like. This is the onshore r b. This is the onshore move. It gives you the idea of the scale of the move we are looking at. We are back in a moment. Caroline here are some of the top stories. Greece is closing in on the third bailout. They focused on the details. Google is be organizing the company after a new Holding Company. The new structure gives more independent while offering more visibility to expand new businesses. Shares jumped in after hours trading. China has devalued by the most in decades. The move triggers the yuans since 1994. Day loss we are not changing our focus. Stephen, so glad to have you here. It was your take away. You want appreciation. What drove this . This more,rt, or was we want to be a reserve currency . I would say there are two main drivers. First we have the imf. I think if you look at what they have announced, a lot of it is aimed at placating some criticisms from the imf. The trade numbers have been this up pointing. Disappointing. As the dollar has appreciated and most of the asian currencies have weakened in response, the renminbi has flagged. Stronge seen relatively renminbi. About this around the world. Are the implications for the eurozone . What are the implications for the u. S. Economy . I dont think there is going to be a huge movement. The market has been has been speculating for some time. Its dramatic. Thates back to the fact you see a general trend of asian currencies the appreciation. A theme we saw in the market. We have a rising dollar. That perspective, i think it brings china into line with a lot of asian currencies. Talk about the implications. We have seen the dollar down 1 . Why are they just anticipating this move from china . Will the dollar remained celebrated . Thats a good question. Up on theke to pick australian and the new Zealand Dollar in particular. They have weakened. I think that is the right way to look at this. The fact that the chinese have stimulus the route to through the Exchange Rate probably means there is less need for monetary easing. Given the strong focus on exporting into china, that could reduce demand. I think this adds to the downside. We came in this morning. This was something we saw as a real top headliner. Is that inevitable that this was something that was always going to happen . Know, i dont think it was inevitable. Announcement on inclusion, a lot of people were suggesting the renminbi would be stable. Report from the imf, there were other measures that needed to be addressed. I think the chinese could quickly address some of these issues such as allowing a more determination of an Exchange Rate. This is a thumbs up. You would think it would be different in terms of how it is owing to be interpreted. The market really is going to have it say now. I would suggest it is seen as positive because it doesnt address some of the criticism. Remember, china was hoping for an earlier in lesion. Particularly in october of this year. The imf report pushed it that. Time thaten some there were specific factors that drove that delay. This is chinas way of trying to address. Plaques lets go back to this issue of Monetary Policy versus the currency markets. Are you saying there is going to be less Monetary Policy or no Monetary Policy as a result . I think what it does is take the pressure off. We know there is a growth issue in china. There are two choices they can do. Ory can lower Interest Rate go down the currency route. We thought in the currency environment because of the we thought it would be the Monetary Policy. I think it takes the pressure is as far as easing concerned. Does that mean they dont do anything else at the moment . I think the point i would make is this is the stimulus that is going to help exports. It seems to be for everyone youent move and the yuan get a 1 uptick in exports. Is this enough . Are we going to see a continuing depressurization . Thats i think you could see that. There could be a little bit more movement here. The chinese have highlighted this is a oneoff move. They are not suggesting they are going to make step adjust its like this. Adjustment like this. The market would move ahead of it. I dont think they would jump to that conclusion. The point i think we need to focus on is they have highlighted this is being a oneoff adjustment. Some of the adjustment is aimed at the criticism of the imf. Convenient it brings a more liberal approach. From that perspective i dont think the market is expecting further steps Going Forward. Lets turn our attention to japan. The number one react or are. What does this restock make. Did they have a choice of trying to restart the Nuclear Program . You have the time to manage prices. Allowed the commercial increase. These are regulated. The government did not allow so it means the utilities are basically underwriting the , whichs being offline means they were bleeding red for the past three years. This is fascinating. Less poweraybe a few cuts, but what about the impact on International Market . Very good question. Japan is isolated. It is an island country. What we are talking about is demand for uranium and natural gas. Uranium prices were about 70 per pound. Year most traders were expecting it would increase demand. Prices would gradually pick up. We are right now on a very low cycle. Japans power sector is the largest in the world. It will have reduced demand from japan. What it means is you are looking fiveft prices for the next years. The Ripple Effect is huge. Talk me through the impact it is going to have closer to home in europe and other parts of the world that use nuclear as well. Angela merkel significantly shifted the Energy Policy as well. Nuclear is much more than a local issue. There is no incident. It increases confidence in the industry. In europe it is much more about cost overruns. We are planning to use nuclear technology. It remains to be seen if they time. Liver it on some eu members have questions. They are considering taking the u. K. Over the support of the project. Some firing upg of the Nuclear Reactors back in japan. And we will stick with the theme of how this could be affecting japan. We were talking about gas prices. Prices were likely to have a deflationary effect. Abenomics is fascinating. It is interesting. There is a lot of pressure on the authorities in japan to cut down the power plant. Consistent with what they have wanted to do. Japans interesting for and the yen is the surplus. Recently it has gone into deficit. A lot of it was importing energy. Investors suggested it changes the view of the yen over the medium term. Japan is now back. We are pretty close to the large one at the eurozone. Guy just mentioned abenomics. Acause of the avon him expel see that keeps yields extremely low in japan, it encourages investors to seek yields. Despite japan going into a large strong, there is a demand for japanese investors to go abroad. That is the theme that is weakening the yen. Somebody told me yesterday you speak fluent japanese. Is that right . Correct. That is an achievement. Up,ust to briefly wrap this when you think about how this fits in, this is an unpopular policy. Do you worry about the politics story . I think there has been some time here now. When i go to japan