How much does it show chinas concern about the economy . How much will a hurt Companies Selling the to china . The yuan not getting u. S. Much bang getting eu as much for your buck. Out of greece, a deal is done. Greek minister. We want at devil and the detail. It moved a bit. The euro is declining. The dollar rise. Up against 16 Major Trading peers. It is dominating because of the yuan move. China trying to devalue and trying to play catch up as we will speak at the stephen saywell. The dollar has rallied higher against asian peers a global peers, will not see will not seen it. The overall affect market to very stable. They let go because the data makes too much sense to start a export growth. Dollar rallying higher. Will it play in for the Federal Reserve thinking of a rate rise . Is this exporting deflation to the rest of the world from china . Will it mean they are less likely to do rate hike . Dollar goes higher. 1. 9 higher. Willolleagues in asia point you through that. Other Asset Classes for you gold, the dollar rally higher and gold goes lower. The dollar get stronger, gold less of a cooling to it in terms of a place to put your money and a safe haven. The stocks in europe on the back of the chinese move. The of w daimler, look at the moves. Almost 2 lower. Bmw, daimler, look at the moves. Stocks. Affect your no big luxury to selling to china. Luxury into china, lvmh, burberry. The sellout. Concern about the chinese economy and awakening and the yuan. Couple of deals. Partnership merging. A bigger player. Jrp, look for the stuff to go higher. This about a deal, a merger with a u. S. Company, 10 billion supplier crane zimmerman cranes and materials. Jonathan you see in the mining rocks. Anybody invested, a rebound yesterday. A rebound for the miners later. 8 00, three minutes into the session. A complete reversal. You are seeing that spillover effect right here in europe. The early part of the session. Zeb eckertto say have a very busy day. He is here to give us your asian market. Zeb absolutely right. To thesharp and a rough peoples bank of china. The currency. The chinese sharpe drop, the biggest move in 2 decades. As they adjust to fixing rates. Of the paddedears if devaluation to boost export competitiveness. No denying the numbers on the july disappoint in the broadest measure trade missing economistsestimates. The impact a regional currency. Commodity countries. Supply china. Australia, more than 1 drop in the aussie dollar. New zealand dollar, the kiwi, down 1 . Significant moves. Not just these countries. South korean won on the order of 1 . Check it out. The most dollar moving since 2011. The biggest drop. Very interesting from the geopolitical to see how asian trading partners and indeed Global Partners response. For china, its may put pressure on chinas trading partners. It is goodof why news for equities. It will boost the situation for exporters. It we have seen the hang seng. Generally higher. Chinese shares in hong kong, the h shares. Rallying to a twoweek high. Composite swinging between gains a lot. It is flat. Give you a market snapshot. Despite the drop in commodities. Trading company, one of exports clothing. Watching it closely. Cathay pacific is down in airasia is down. The impact. Chinese companies are not all went to benefit. If you look at global story, a big move is caroline pointed out and impacting around the world and the currency markets. You are seeing this fixed income. Send it back to you. Jonathan zeb eckert. Only one story in town china. By thevalue the yuan most in two decades. The move as the nation works to liberalize the currency and after exports plunged by more than 8 . Is this primarily a move to lose and the nations grip on the currency or to support exports . And beijing. What is going on . The case is about market discipline and the other, just about countering week export numbers . Which is it . Nik that is the question of the day. When you look at the pbocs statement shortly after the yuan fixing was announced, rhwy kraus should and language of market reform. And 2013 toreforms give the market a greater hand of what they are saying is the yuan has been guided for quite some time. Was out of whack with expectations, that is all well and good. As at the same time, it has very clear benefits for chinas areomy at a time when there lingering doubts or growing doubts about whether it was hit 7 growth target at the end of the year pretty it seems to be something that will play to both constituencies. Those who say it will boost growth. It is intentional. All the other hand, no, wait a minute, it gives Chinese Market a greater handprint was to see how it plays out. Sidehan about the traits and looking at exports, how much does a move the dial for exports in the month to come . Nick wadhams there would need to be some more devaluation for exports to get a really big pot. It is very interesting if you look at the export numbers announced of the weekend, about 8 decline. The declines you saw were the biggest in areas that will be most affected by this currency move. Exports to the eu were down 2 . Exports to japan down 10 . Depreciationncy or will really strengthen chinas hand as it goes to the market. That gives added sort of evidence to the idea this was a very intentional move by the government to spur activity. And getting back to the 7 figure, china really tried to bolster the case to hit and that by the end of the year. Just the bank nick wadhams, thank you for breaking Jonathan Nick wadhams, thank you for breaking it down. We are joined by our next guest. Nick attion i put for the you create wake up on tuesday, a couple of days after dreadful export numbers. Is it about alleviating the pain for export numbers are market discipline . Guest the last couple of years, effectively chinas currency extremely overvalued. Of 1520 thee aces way it should be. The whole indicator of massive evaluation pretty huge capacity. All of the at a time when the trade isde, global slowing pretty slow down in asiapacific is continuing. Very integrated to what is happening in asia. Effectively, the export, everybody else on a weaker trend. Jonathan one of the Victims Service was capital flows for chinese authorities. You weaken the currency, do have to do something to the triple rrr rate to alleviate capital outflows . Ashok shah sergey brin ashok shah if you look at where it was a couple years ago, and cuts on the requirement. High. Highest in the world. The pressure of the monetary side is bearing down on the commodity growth rate. A time when the trains corporate side is extremely member. Flows in to create order to service the debt. The only way is to export at the lower and lower prices. Jonathan if it is the trend to weakened currency and we have more to come, what does it mean for disinflation . Another big problem for banks around the world . Ashok shah absolutely. Still increasing if you look for example the mining sector. New capacity coming in. It means we could see another down in the commodity and energy and that goes back into the prices for manufactured goods. Muche looking at a pretty deflation from asia as we are getting from the commodity producing companies. Countries. The inflation remain extremely subdued despite what with sing geopoliticaly and world. Andthan purchasing power never mind exporting. Going forward, the import story could be clouded by a weaker currency. I look at the ftse 100, burberry , the commodity numbers. Sitting here in london, if i see this is a trend in the months to to get more than it has been . if you ashok shah look at chinas rate, earning an extremely low numbers. It had been the financial side of the equation. Now with what weve seen the equity market then the extra boost on the gdp from Financial Services is going to abate. We will be talking about 5 growth trajectory. Not only the Consumer Sector but across the board. Jonathan talked about losers and miners and the auto to call carsons decline. Lets talk about winners. Are the winners domestic china . Ashok shah you need to look outside of china for the real winners. The consumers in the market. Cheaper goods available. Also people market themselves, the big importers. The population, domestic economy. The once who will benefit from growth. A lot of beneficiaries and the larger market. I think that is where one should be looking at now. Jonathan ashok shah will stay with us for you bail out deal reach preeu official said creditors and greece have agreed on terms. We are in athens lie. Google by a different name. We are in athens live. Corporatethe landscape. Russia feels the pain. Geopolitical pain. By 2009. Gdp shrinking all about chinese purchasing power. Yuan. Evalue the we are back in two. Good morning. Jonathan good morning and welcome back to bloomberg tv. The top stories. Google is reorganizing with a new Holding Company called alphabet. It will give maynard webb operations more independence. Web operations more independent. Identifiedstates has inside traders that relied on hacked information. Stolemputer hackers Corporate Press releases and traded on the nonpublic information. Nine participants and they are expected to be charged later today in court in the u. S. China has unexpectedly devalued in the yuan by the most in two decades. People banks of china cut it by a record 1. 9 percent. It triggered the biggest oneday loss since 1994. News overnight, playing out quite clearly and the trading session. Lets check out the equity markets. Ftse 100 in the red. 40 is down by 0. 6 per 0. 6 . See where it you is playing copper the mining sector. Bhp, rio, glencore getting whacked. All down. This is about purchasing power. Yes, it might help your exports to what does it mean about imports . Spilling over into commodities for the aluminum getting whacked. Kneejerk reaction. What happened in china. Investors we had a rebound of the Commodity Markets a late in the session. It is the opposite, the flip side 90 19 minutes into the trading day. Not just how the chinese situation is playing gow but greece. The government and creditors agreed on terms of the third bailout. The Parliament Must require must pass the measures that is required. Bloomberg News Reporter joins us now for little bit more. The news, the headlines, what is the latest . Reported bank indeed, reporter indeed, the third bailout. Onhave details remaining this agreement as the greek find mr. Finance minister and terms and the greek government will give the bill to the Greek Parliament as early as today. Lawmakers will coving tomorrow and then maybe thursday. Lawmakers will vote for the deal. Given the meeting on friday to weekss the issue and next given enough time to the rest of the European Parliament to vote for the deal. The first installment of 86 billion euros package to greece will be dispersed by august 20 when the government needs to meet a payment of 3. 2 billion euros. Ecb long redemption. Jonathan talk about details, ask me a question if you hours ago, reported that details still need to be ironed out. Do they still need to be ironed out . It seems asamanis they are. We walked only be speculating about the small details the finance minister talked about. We have information on the bigger hot topics, the energy front seems to be agreement with greece and creditors. 35 prior know there is that greece needs to undertake immediately. And the larger pension refund and further tax increases that need to be seen i october. We have agreement. 25 that is for this year. Agreed of the surplus for the next year. 1. 75 form sorry, 2017. You should take a step back. Fromu think youre safe the greek headlines, it is greek media reporting on the greek elections as early as next month. Greece will remain a hot topic. Jonathan Vassilis Karamanis with a reality check. Negotiations and develop a National Hurdles within your and most notably with an germany. Elliott gotkine has more. We heard from one of mr. Schaeubles deputies and what do they have to say . Elliott they said they do not want to do be a oneoff to gay greece to the next hurdle which is a repayment on august 20. They want to the bill longterm greece, something that feels it out once and for all. The Wishful Thinking or optimism or hopes, it does not have with the previous 2 fellows. This will cut a leash unleash octaves is billion euros. We will have to wait and see. 86 billion euros. Sureermans want to make they will have all of these latenight negotiations floor out to say that the deal and find themselves back here in three months, six months. They want to get it done have longterm agreement with the guess agrees back on track and the eurozone. Jonathan thank you. Final thoughts from ashok shah. Asked elliott said, what shapes of the deal of the process and talks over the last few months with the ecb deadline and august 20 deadline . Ok, is it what keeping the agreement together . , does it fallaid apart after that . Ashok shah it will remain a crisis for a few years. The most important thing to bear in mind is what the imf has been saying. Termsd some mechanism in of the debt. From the point of view, very keen to measure. So coherenttheres and scrutiny in terms of what we agree. Every time something is agreed, it falls apart a few months later. No reason to expect anything different for jonathan we know is a on terms and talk their details to be ironed out. Details tend to matter with greece is concerned. One of the major details as the imf. Where are we with that story . Can gr get the money without imfeece greece without the imf . To thatah we will come question again and again. Imf really coming to the party. One of the things that needs to create a longterm, viable solution is debt reorganization. Weibo for any agreement is reached. Minds aroundt our the fact it will blow up once in a while. Another to keep it going. Not going to be done exhaustively. Jonathan you have had to deal with when clients call you up, should i care . Your role, and eurodollar hosting off, should i care . Ashok shah i do not think so. In terms of taking care of the situation, your Banking Sector is pretty much producing exports. No collateral damage. If you look at export, import side, minimal amount involved. Most of the debt is held by the ecb and imf. And means Strong Enough to take any right. Economically, the situation is pretty isolated. More of a political situation in terms of if we will allow a country to leave the eu . Is an issue, the saints that the arguments rates. Jonathan the argument is not moved on. What is in a name . Google reorganizes as alphabet and a surprise move. We were bring you the details after the break. 26 message of the trading session. So much to catch up on. The board. Read. T ftse 100 down by 0. 6 . A read across in china. Devalue the currency printed what does it mean for purchasing power imports . The Commodity Markets desk playing out in the Commodity Markets. Mining stocks of getting hit. Is down by 2. 4 . Rio off by two percentage points. Will a breakdown the market moves after the short break. Jon good morning and welcome back to bloomberg tv. Time to catch up to speed with some of the top stories. Greece and its creditors have agreed on terms for the third bailout in the Parliament Must now pass the terms before a meeting of euro zone finance ministers scheduled for friday. Singapore reduced its growth forecast after gdp fell 4 in the Third Quarter. The Singapore Dollar felt was lowest level in five years. And china, this is the big story they have unexpectedly devalue the u. N. By the most in two decades. The cut the daily paik by record 1. 9 . 31 minutes into the session and you can see how this is playing out and European Equity markets. The ftse 100 down by 6 10 of 1 . The dax also up by 0. 6 . The biggest loser today the stock 600 in the the red for 2016. About purchasing power and what it means for Commodity Markets and the minors and what it means for the commodity currencies. The aussie dollar is down by 1 against u. S. Equivalent. A for brent crude are also lower. Spilling into the commodity producers and the commodity producing currencies as well. So there are the market moves with a lot of talk about. Another story dominating the headlines this morning is google reorganizing the company under a new holding up he called alphabet. Web operationsin for independence and gives investors more visibility into spending plans. Lets bring in elliott gotkine. Alphabet doesnt quite have the same ring as google. They wereder whether sitting around and having soup or watching sesame street or something to come up with that name but they seem to justify it in slightly more lofty terms. Larry page in his missive on the blog post yesterday said we like the name alphabet because it means a collection of letters that represents language one of humanity esther most important innovations and is the core index of the Google Search and we like that alphabet being an investor return above benchmark and it seems to happen yesterday with shares rising some 6 . We go that google has effectively become a conglomerate with all of these disparate businesses and tentacles extending into everything. Along with google map google maps they have lifesciences send the group working with diabetes and calico trying to find ways to make you live longer and google x such as Driverless Cars. These businesses are already part of google and it will now be a part of alphabet and larry brady larry page and the other cofounder will now be the ceo and president of alphabet. Jon im looking at right now up 6 . Over the earnings call, ruth looking at the idea that they may look at cost management. This is about visibility knowing what the company is actually up to. Has been keen and she said to investors i want you to get a better handle on this business because they are not giving away any trade secrets. This i think as part of getting a better visibility on how the businesses do. Macnow that the web search in contributes the lions share of the 60 billion or so revenues but investors dont really know how much google is spending on things lik