Devaluing chinas currency should make it easier for exporters to sell overseas. Last month, exports fell 8 . China is in the midst of its biggest economic slowdown since 1990. Google wants to become the Berkshire Hathaway of the tech world. Goal is reorganizing into a Holding Company called alphabet. The companys search and advertising units will be separated from new businesses such as self driving cars and health technologies. Each alphabet subsidiary would have its own ceo. That is a structure similar to Warren BuffettsBerkshire Hathaway. Larry page will be the ceo of alphabet. Negotiators have agreed on a deal for another greek bailout. Says only avernment few details need to be worked up or the agreement will give the greek 94 in loans. That moneys some of in the next week it has a payment due on august 20. It is being called a new front in cybercrime. Louvered news reporting that u. S. Authorities have broken up and Insider Trading ring that relied in computer hackers. Nine people are expected to be charged today in new york and new jersey. The hackers are thought to be in the u cane and possibly in the ukraine and russia. Their broken into pr newswire and business wire. The worlds top ranked golfer says he is recovered from his ankle injury and will defend his title. Rory mcilroy practiced yesterday. At the wisconsin course where the pga will be played. He injured his ankle while playing soccer. Last month. In a lot of pro contract spirit youre not allowed to play another game offseason. Julie even for fun . Brandon particularly soccer, which is a nightmare for your acl. All sorts of bad things can happen. Tom the data check. So much to talk about. A terrific lineup to make you smarter on the news. Futures and negative 14. You see the market reaction. Yields in. Michael hansen joining us and moments from merrill lynch. The eurodollar, 1. 1023. Stronger euro. I want to get through this quickly and go to the big change in asia. There is the dollarrenminbi 6. 32 with a 1. 9 move. Weaker swissie. Dxy. Lets go to the bloomberg terminal. This was the first thing i thought of the Chinese Renminbi in 2005, they give up the ghost and joined the system. Appreciation. Lets wait. Managed. Another appreciation, and heres the move. It is nothing compared to what we saw with the eyn. The yen. Abenomics. One story that killed their exports. Brandon this morning at times about the plaza accords and you talked about how brazil called for the u. S. Is doing with the dollar currency war. Currency is power. China has the reserves to manage its own currency. They are doing this in theory a market from the move but they are doing it because they have the power. Tom it is the 1 million question. How far along do they need to go to some form of normalization . They want to know that in singapore and washington. Brandon once it is normalized, is it going to go both directions in the future . That is real market reform. Tom an historic day. Glad you are with us worldwide. We go to beijing. A Seismic Shift that reverberates across all of asia. China throws in the reserve currency towel. It appears they were moved to a managed flow. We need to go to hong kong and our chief asia economics correspondent. Will this boost chinese exports . Look, good morning. They seem to be killing two birds with one stone. On the one hand, it has a reform process. They want the currency to be more international. On the other hand, there exporters are creaking under the pressure of weakening currency like the euro zone. This will not be a game changer for exporters but it will help. Tom our skyscraper in hong kong is in the shadow of hsbcs bank. Is the ramifications this morning in hong kong that this is a new bout of a currency war . At the very least it is a currency skirmish. We will do not know if it is a fullblown war for a few more days. We need to. Move is not going to be a game changer. Whether that will follow through, then we know more. Earlier. Nailed it this is the heart of the men appeared what happens tomorrow is more important. They arewe know willing to let depreciate. What sense do we have politically from the Chinese Government they will let it float, move up and down this market demands . They have not given a firm signal but there is one counterpart. China has a problem with capital outflow now. If they weaken the currency, it may trigger the money to leave the country at a time when they do not need that to happen. So, they have got be very careful. Tom thank you. Curran joining us from hong kong. We will have them on in the coming days. Wasdon briefly, nomura with us yesterday and wrote a long note about this. Capital flight so far from china is very limited. We are looking at foreign banks that have pulled assets out. We talked about capital flight, but not a current reality. Tom 10 years on from july 2005 when china unpegged their currency and went to a very managed movement. The chinese devaluation, ramifications to london and washington. Michael hansen is senior u. S. Bank of America Merrill lynch and joins us. Never boring. What does this mean for janet yellen . Fisher would say we are only looking at the United States is a public official. He has got to say this. But this has washington revocations. Michael there are political ramifications. For the fed, the question is what does it mean for chinese growth . That is one of the big downside risks. Tom will they import will they export deflation to us . I guess, they could say will they take us to less inflation . Michael it is a risk. I would argue you seeing a lot of global this Inflationary Forces and china will only exacerbate that. Brandon we are going to hear from commerce the next month about this. Are we also going to hear about small factory owners . Is this going to have a longterm effect on production in the u. S. . Michael it is hard to say because a lot of the reshoring, which has been small, has been for reasons independent of the currency. I think it remains to be seen, but politically it is going to be a challenge. Julie Something Else i was looking at this morning is what it is going to mean for suppliers that are based in china, speaking to the factory question. A lot of the contracts are priced in dollars anyway. Wont that mean the impact is muted . Michael a lot of pricing to market for final goods and the u. S. That is why the u. S. Has seen much lower paths. That is going to be the impact but that will not be the impact on washington. Tom now we need to go to a China Authority from london this morning. Jonathan his must read this morning is will china dominate the 21st century . Writing on france and china across many decades. John, wonderful to have you with us this morning. On this historic note. What was your reaction when you saw the chinese blank . John the first reaction was they have gone the wrong way. They are trying to weaken the currency to boost up growth. And actually the affects of a 2 , such as we have seen on overall growth is pretty small and china for all kinds of reason. My second reaction was maybe the reformers are playing a clever game. And they are using the economic weakness of china and the perceived advantage which would not be all that great from currency weakening to actually theetise the yuan, to give market and the 35 banks which ingl be doing thelate day fix much more say over where the currency fixes. If that happens, we are in for interesting period as to whether the reformers stick with it or whether they are pushed back into the old controls. Tom what you are so good at within your literature is the distances between shanghai, hong kong, and beijing. How will this change the domestic calculus of chinas Financial System . Jonathan i think the Financial Systems and is under strain because of the stock market commotions we have seen recently. And financial reform is going to go slowly. But there are certainly a lot of people in beijing, planners, who see a more flexible currency as a way of bringing pressure to bear on the domestic Financial System in these shape of reform. Governmente chinese has been struggling with three priorities. One is to let the economy rebalance toward consumption. Two stimulate the economy and three is to bringto to gain greater acceptance for their financial reforms. Which of these do you see out front this morning . Jonathan the third. We have got to see what the reaction is. What the reaction is some other asian countries, do the japanese devalue further and what the reaction is from the fed . This will further strengthen the dollar. Julie and what do you make of the timing of this, im curious. We are about a month and a half out from the next potential fed decision. So, why now . What do you make of that timing . Jonathan i think it is because of, we go back to the domestic issue here. It is because of the weakening of the economy which i think is clearly, has taken on much more downward push than the leadership had expected. This is a small move. This is not going to have a huge effect. And i think the chinese think they can get away with this, basically. Tom thank you so much. I cannot say enough about fenbys will china dominate the 21st century . Brandon when i takeaways that he sees not trade out front but international acceptance. He thinks this is a fdr play. A longterm move to let the tom to act like adults. Again, we will speak with Stephen Roche in our next hour. Jeffrey rosenberg with us as well. Our twitter question which a deficit adjust to what we have seen this morning. Will chinas devaluation help its economy . We need your answers to that. Stay with us. Julie hyman, Brendan Greeley, and tom keene. This is surveillance tom good morning, everyone. Top headlines. R sitting in for vonnie quinn, julie hyman pit julie in ferguson, missouri, there was a fourth night of protests. Demonstrators marking the oneyear anniversary of the shooting of Michael Brown p Police Arrested more than a dozen people on sunday night. They shot and wounded a black man who fired at them. Stock buybacks are turning out to be a bad bet for viacom, pl u sharesney back into its cost the company 3. 5 billion dollars of the media giant is controlled by sumner redstone. The ceo suspended buybacks that says they will resume in october. Brazilian lake team. Ed the american the Associated Press found viruses in the water at many sports venues. This does not bode well for the games there. Brandan i mean, they have tried to put so many different Sewage Treatment facilities online. That was part of the bid. It is not working person of them are not even connected t. Unwieldy. New model of google. They announced they have become a Holding Company called alphabet. The Companies Search ad business will become google and what we called google moon shots look at their own pnl statements. Figure outouses media and the internet. Im not even sure where to begin. But lets start with this. Is this a move to hold onto talent . With each new Company Getting its own ceo . I think it is. They are creating this holding copy for a couple reasons. One, to provide Greater Transparency about where they are spending their money outside the core Google Business because that is becoming a bigger number and investors want to see where that money is going. I think for some of the Smaller Health caresome initiatives or self driving cars, it is a way to attract and retain talent. You could presumably give them equity in some of these subsidiaries that might have the ability to give them moonshot returns. Brandan i want to talk about pichai. Can you bring up that fullscreen about the browsers . He was responsible, he basically suggested they start chrome. Chrome is close to half of all browser hits worldwide. He could easily be the ceo of almost any other company in Silicon Valley on his own. Was this designed to keep him . Larry have been giving him more responsibility over the last 18 months, stepping it up. He gets a lot of credit on the street for a really managing the companies from a desktop environment to a mobile environment. I think the signals that google fullyues to be committed to all things mobile around all of their businesses, and again, he is one of the most notably associated with it. Report inember your 2000 through in the wastebasket at the time. 16. 6 annual return on this juggernaut. In 2004. This is the anti ballmer move. Everybody writing about the ghost of microsoft. Is that a valid analysis . Paul it is a lesson that larry and sergei and a lot of people of this generation have taken to heart. Sundar, he made a good comment last not you either continue to change and iterator youre at risk in the valley. Sergei have and said they admired Warren Buffett in what he does with berkshire. This is their small way to create that kind of environment. Tom when you talk to your team, ruth checkbook is that Search Engine. That is the money. It is still an oligopoly. Brandan are they protecting shareholders from moonshots. Paul i think the structure signals to the street that you should continue to expect to see significant investments by this company on their moonshots. All they are doing is in exchange for giving us that ability to make significant beestments in which may speculative, we give you a better Corporate Structure in return. When a lot was made google split into two classes and cemented the founders control. Are there any governance implications of this latest move . Paul i do not think so. Sure if google will be exchanged for one share of alphabet. Theink by and large, across technology world, we see it with facebook, the super voting stock is well established. Investors have the ability to invest or not invest. Continue toompanies deliver returns, they can get away with super voting stock, and that clearly is the case here. Sweeney, thank you so much with Bloomberg Intelligence this morning. We will continue our discussion on the market shaking moves on greece and china. Jeffrey rosenberg will join us in our next hour, blackrocks chief investment strategist. A Seismic Shift. China devalue spirit stay with us worldwide. Bloomberg surveillance tom good morning, everyone had how about the morning mustread . Lets move away from china and greece and look at iran. This is from michael bloomberg. Overstating the case for the agreement belies the gravity of the issue. To breed distrust. Smearing critic is less effective. This debate is far bigger than partisan politics and personal political consideration should play no role in deciding a. I wonder if our esteemed owner should tell that to the senior senator from new york. Brandan the senior senator from new york is where to go with that. Washington,in politics is behavior you do not like. On this, i was surprised to see the white house after senator schumer made his decision to come out against the deal that they did not just talk about their opposition to their disappointment with him, but they talked about his future. Im reading from the Washington Post article. He suggested lawmakers should question whether Charles Schumer is fit to become the partys leader in the senate. Members might want to consider the voting record. Broadening it out into the early warfare of this campaign. Talking about politics. A have been fascinated how this was a foreignpolicy decision and has become for the 60 day examination period a political campaign. Julie also reading mikes words, i was reminded. This is been a fraught debate in the u. S. Jewish community. You look at schumer and mike bloomberg, a lot of leaders in the community and they are struggling with it. Many of them have come out with Benjamin Netanyahu in his stance against the agreement but there are a lot of people trying that is basically what mike is saying. This is not something taken lightly and the white house is dismissing any critics. Tom is the deal at risk . Brandan the popular interpretation of senator schumer saying im against the deal is based on the assumption that he would not come out against the deal unless he knew the president had the necessary support. Again, that is reading the shadows in platos cave. R. Bloomberg,ael the founder and owner of Bloomberg Radio and television. Our tutor question our twitter question. On china, of course, will the devaluation help us economy . Tom good morning, everyone. Bloomberg surveillance our top headlines. Isie a sign that china concern that Economic Growth will fall short of its target. Byay china devalue the yuan the most in two decades. It will make it easier for exporters to sell goods overseas and boost the role of Market Pricing in the worlds secondlargest economy. Chinas stock and it steepest economic slowdown since 1990. Last month, exports fell 8 . Google has unveiled a reorganization that turns it into a Holding Company. The new name of the conglomerate will be alphabet. Andgoogles earcsearch advertising will be separated from Health Technology in self driving cars. Each unit will have its own ceo. Page will be the ceo of alphabet. Earlier this year, pichai spoke about his relationship with page. Larry and i worked together for many years. And we share a lot of goals. It was a way to divide and conquer. I spent a lot of time on our core area thinking about the next area of innovation there. Larry works with me on that. Julie page will be the ceo of for investors, the new structure will give greater clarity on how google invest and it makes it easier to make further acquisitions. Democratic presid