A little more epic than it is now. There is plenty else going on. The outflow has continued, everyone else is can trying to reenact react. Laws the vietnam vietnamese, you see big things like that, you know things are happening. These are the two things for today. You have china going on, and he said and the fed. They are two big weights. Ways, they said is looking to move policy, and so are the chinese. People feeling that any stimulus would signify a worsening in the economy. The good news is we get Federal Reserve minutes. How much where they worried about chinese stocks then . We did not know how they were responding to the evaluation the valuation. Guy we have a great show. We will be talking about greece. One vote in the netherlands and another in germany, we will run you through those. Lets continue the conversation surrounding the asian market with juliet. Juliet good morning. Ride on the shanghai market. It is down by 2. 9 . Worth lossesn earlier in the session when it looks like we were getting a repeat of yesterday, the market was down by 5 . Still seeing the hong kong index is down 1 . You can see that investors foreign and china Retail Investors bailing out. It is all to do with the devaluation. That rely on exports are coming under pressure. Cosmetic companies are under significant selling pressure. Japan is being sold off, down 1. 3 . We had export numbers showing a slowing in july. Elsewhere we are seeing good gains in australia and new zealand, also malaysia coming back after a big selloff. Yesterday thailand had a 2. 6 drop following the deadly blast in bangkok. I want to show you some emerging market currencies, you mentioned the devaluation of the dong. Saw bigg falls falls. The u. S. Dollar is down a percent. The third devaluation either vietnamese dong, 22,390 against the u. S. Dollar. It is down to 5 almost against the u. S. Dollar. I big slump coming through in commodity and currency prices. Kirilenko caroline that brings us to the twitter question, is china still a longterm investment . Beerestingly, we will speaking about the norwegian wealth fund. They are not yet put off by china. Do you want to find us on the terminal . If you are on, you know where to find us. Probably not the best set of corporate results. Elliott joins us. Profit in line with analyst estimates, but the big carlsberg is expecting fullyear operating profit to decline. , previously they had expected to grow. Some analysts had been warning about this possibility. Now we have it from the company itself. Lets not forget, this is a company that gets a quarter of its operating profit from russia. The big headline from carlsberg, fullyear operating profit is expected to decline. Previously, analysts had expected it to grow. 9 decline in the russian market will be hitting them hard. That is a market you dont want to have a significant foot print on. Lets talk about what else we are watching. Germany is due to vote on the greek package today. We also have the dutch vote with hans nichols. What can we expect . Math looks good for getting this through, 60 vote lost last time. They just did a straw poll last , itt in the cbo cdu looks like merkel will push this through. Topassed in spain yesterday, 9720. It passed estonia, the committee, and austria. The big tests are germany and the netherlands. The European Central bank has actually lowered liquidity assistance, the First Time Since february. Me number came in at 89. 7 billion euros, it has return to normalcy on the banking side. We are still in interesting territory. What is going on the netherlands vote . They discussed how they could stabilize the government, a lot of mps are annoyed at the way this is being pushed through. In 2012e Prime Minister campaigned on what on not one more sent. The bailout will be 5 billion euros. The head of the rightwing Freedom Party only has 12 seats in150 Seat Parliament a 150 Seat Parliament. It does look like it will pass, the actual bailout package. After that you have a question whether or not the government is stable enough. Right now they have a 76 majority in a 150 Seat Parliament. That is a one seat majority. It is shared between the liberals and labor right now. We will see if that will stand the challenge from the rightwing. They gives you the sense why the dutch finance minister was one of the hardest critics and one of the hardest negotiating partners for greece. They always knew they had this domestic challenge at home. Guy as we learned yesterday, you are better at to god geography, maybe we are better at math. Caroline we break down the stories that matter. Commodity rises hit 13 your lows. They affect earnings in the largest commodity supply. We discussed the final hurdles of the bailout today. Why china stocks are not a dealbreaker for than netherlands. 6 it is 6 1 to in london 12 in london. Caroline the dong has been weakened by 1 . The concern for a federal iserve rate increase troubling. Guy dutch lawmakers vote today on an aid program for greece. A 3. 2omes a day ahead of billion euro greek repayment. They begin their debate at 8 00 a. M. U. K. Time. Kirilenko japans export growth is slowed in july, in a sign that foreign demand is failing to provide much support for the worlds thirdlargest economy. They are slowing from a 9. 5 gain in june. Guy police in thailand say they are confident in finding the man bomb. Sible for a he arrived with a backpack, but left without it. Hit the tourism aspect of thailand. The human cost of the devastating explosions and towns an have reached 1. 5 billion. It is the 10th biggest port in the world, much of it remains closed with importers seeking alternatives. The World BiggestSovereign Wealth Fund reports earnings this morning, but with norways exposure to oil, and no sign of an end in a collapse in the commodities space could mean it is in trouble. We are joined from oslo. What are we expecting . The returns in the fund are in focus, what are we looking at . The turns to be flat for the second quarter. The fund is a good measure of what is happening in a global market. You can forecast on what they will come out with. Kirilenko what is interesting for us is the relevance when related to china. The Sovereign Wealth Fund remains committed to china in terms of buying off assets, despite the route we have seen. That is one of those things we want to hear more on. Now with onery out of the cios of a fund he was in charge of allocation strategies, he said as a longterm mostlyent fund it is looking through the volatility in china, the policy changes, they are sticking to their plans to bump up investments over the next couple of years in china. Guy why this focus on china . I get the sense of where the fund is, as it looks around the world and try to figure out exactly where the best investments will be, why the focus on china . They are out there trying to capture global growth. Couple of years ago they said they will start moving away from europe little bit him and going into emerging markets, which seem to be the growth motors to the world. Caroline that is a longterm debt. We potentially want to get it on our twitter question of the day. Thank you very much, indeed. Guy is china a good longterm investment . The timeframe for your investment, critical. You can find is on the terminal us on the terminal. Caroline the commodity crunch is continuing. Oil is in decline, and copper tumbles for a fifth day. The bloomberg Commodity Index is since 2002. Ast seen downthe route has dragged commodity giants like glencore this morning. And paulng in javier gait. How the air, lets look at the background for the foreground of , copper is being hit hard, and most of the complex down as well, how much of this is china . Javier it is a combination of both. If you look at copper, that has been the highlight of the last two days. That is suggesting we have copper prices below 5,000 for the first time in six years. China is 45 of the copper consumption. It is a china story. Thes not helping butluation is contributing, china is driving this drop in oil and copper. Caroline lets bring in paul gaits gate. Earlier we had production numbers from glencore looking strong. Production aside, the prices, are they doing enough to preserve themselves when we see this massive fall . Prices hit glencore, they hit all of the producers of industry metals. We are seeing it come under pressure. Is if theon you have level of production sufficient . If they took some off the market, with that move the price . If you look at the overall production, it is nowhere near rio tinto. They have taken tons off of the market in copper, they have a greater market share. That has had some impact, albeit not as much as they would have liked to have seen. Guy you still have an outperform rating on the stock . Are you comfortable with that . Paul if you look at the history of copper, relative to any is ane of economics, this exceptionally painful point. This is worse than 2002, this is about as bad as it gets. In. Tied to the deep slump chinese production and property. If china will grow at 7 , sooner or later they will need to bring build more houses. As soon as we get any kind of pick up in industrial activity in china, we will see the leverage of that in Commodity Prices. Theyine is this something feel this has to come to an end . Hobby are absolutely javier absolutely. Lets not forget about the supplyside. Producer,a big copper having problems with power supplies. Chile is also having problems with mines. Been a powerful metal because it has seen supply constraint. It that is something glencore had been saying. Think anyone else in the sector will be investing in this. , how do youmeantime want to hang onto this how long will you hang onto the stock . Is that triple b rating secure . Kenny Trading Division rely on that for a cheap credit and the Trading Division rely on that for cheap credit . Paul the trading business is critical. Certainly the one that they talk about delivering the earnings profile for the group. As we have seen from earlier in the month, showing a week level of performance, the people have jitters. It is difficult to see through that trading business. Worst are discounting the for glencore, they are saying they do not know how to value the trading business given the level of volatility in the commodity price. Itou think the numbers is hard to predict it is going to be as bad as they are suggesting . Look at the operating cost, it is about 1. 5 billion. It was 3. 6 billion last year. We are above that in terms of where we see the industrial and trading business delivering. It will be a big step down from last year, the question is how big that correction is. Then the question is, are you discounting that lasting perpetuity. A in the worst possible outcome is in perpetuity with no outcome insight. Caroline give us a sense of the rest of the Mining Sector . Are we seeing other analysts seeing the worst possible moment for the other stocks . Our people rebating them rerating them . Hobby are has been looked at. We have seen a recovery in iron ore prices trading close to 60 a ton. That will benefit valley, and bali and brazil. On that fence come a we have seen a bit of a Better Climate for those names. At the same time, you have copper down to 5,000. Aluminum is also down. It is difficult to see in analysts get excited about mining. Hannity screwed up so badly. Paul you are talking that the chinese domestic market. That is a bigger issue. Is he a smart guy . Yes, he is a billionaire, i am not. Lets assume hes smart. I dont think the fault can be if you look at the chinese domestic market that is 4 billion tons, a small growth in that grows a huge demand in the seaborne. Is cold a good longterm bet . Clearly that has to do with fossil fuels. Coal is still by far the cheapest source of energy in a world that is still short energy and is trying to develop an industrial world role. Caroline is he doing enough . We have seen glencore do things in terms of oil. Are we seeing them cut back in terms of production . They doing enough to tackle this . Paul the first thing we will see is what the operating costs are doing. Can they get the productivity up in their minds, are they able to get the operating costs down . Will they see relief, that will be the first task. The second is reinvestment, adding new supply. Rosenberg said he will not be anysting anything new in expensive projects that have characterized the Mining Industry previously. The next thing we should look at is, are they going to take tonnage off of the market. He has done that. Not been for that action, i think the question would be come out what will the coal price be . The question is, how much worse that it have been would it have been . He is taking responsibility. That is the big issue that has characterized value destruction in the Mining Industry. It is supplyside management. Guy thank you very much. Air gait, and hobby javier. Line we will be speaking to the senior at glazier. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. Caroline welcome back it is 6 30 here in london. Guy the emerging markets story the central bank of vietnam has devalued their currency. Devaluationed the and the possible impact of the u. S. Role reserve rate increase. Caroline german and dutch lawmakers vote on an aid program for greece. Spain, austria, and estonia all past a deal yesterday. German group begins their debate this morning. In japans growth grew july. Shipment values were up from an earlier year. It slowed in june. Caroline police in thailand to say they are confident of finding a man suspected of planting the bangkok long bomb. He arrived with a backpack, but left without it. Thailandsmay hit last remaining growth sector, to risen tourism. Guy the human costs of the devastating explosion in tianjin more. Ached fed expects most of that cost to affect shipments. Importers are seeking alternative facilities. Caroline lets check in with the market. Flowsis coming off of it was. Guy the market was down 5 . You can see the bounceback here. Dow is down 2. 5 . If you look at it q literally cumulatively you can see the extent of the drop. At one point we were down 10 over two days. Kirilenko yesterday we saw this margin are we back in the dark days of july when we see that selloff . We are breaking below that 200 day. The technical indicator means there will be a selloff, there has actually been a rebound. It seems to be that people are questioning whether the government and a central bank will continue to support the stock market. Many think they will step back. Guy lets get analysis and where we are going next. The cio of london and capital joins us. Good morning. What the make up guy what do you make of that . We need to separate the real and financial economies. The government has been letting this go for as long as they have because it wants to show the domestic market and the dangers of too much speculation. Stories, notose necessarily what goes on in the asian market, but rather the applications to global growth, to what extent this triggers what has happened in the last two years few years. A currency war would destabilize many smaller economies around china, and export deflation. Vietnam we have had devaluing the dong. Other think we will see comments react . I think so, i think korea is probably next. Guy what other region . On anotherll embark expansion of the Balance Sheet. The signs are not positive. Unstableeasonably political region which could nastynto a pretty Competition Among economists economies which are hearing the drones of war coming from the fed and higher rates and dollars. Stories. Ave separate the Asian Financial crisis happened, and greek banks were to react and knew it was a risk to the u. S. Economy. We have david mile, outgoing yes, but talking about a rate hike in the u. K. Happenings in happening soon. Can they sit sidebyside . Forget in theory, asian economies are much better equipped now. Guy in theory. In theory. I am sure that some of the data that we have been told about, how much i own in terms of reserves, or how much growth i am actually having, look at the data, im not saying it is wrong. It is positive to see 6 growth, and electricity consumption and zero both 0 , it does not make sense. Overall the main asian economies are better ,quipped to dealing with corporates in the reasons in the region are less dollar than they were before. It also has to do with what happens in the u. S. Caroline you are sounding pessimistic on what could unravel in asia. What do you do in terms of a portfolio . Has everyone gotten out of asia . Or is it get out . The good news with equity markets in asia is that people have seen the famous taper tantrum speech of two years now. Substantialt been influx into the equity side. The more dangerous area has to do with the debt side. You really have not seen a 2810ficant amount between 2013 2008 in 2013. In that sense i would be selective, stick to the quasistate owned dollar leverage players in china. Avoid some of the other regions which have a combination of and weakercommodity Balance Sheet payments. Caroline i am interested you ,aid because a state companies some would say that would be a pain, they are also looking to shake things up in the state areas, they could move the match the private market. No question they are inefficient, however ultimately holdersee how her asset , power asset holders, you will not see the debt side talking. Stick to those state champions. On the equity side, i think valuations are checked, do not try to be a hero and see what happens when yellen pulls the trigger. I think what is happening in china i do not think what is happening in china will change her view. She is focused on the labor market. Sudden all of a the decisionmaking process i dont say that would happen. Caroline thank you. Ive way you can weigh in on all of our top stories on twitter guy you can weigh in on all of our top stories on twitter. Is china still a good longterm investment . If you want to find us on the terminal, you know where to find us. Caroline do tweet us. Norways Sovereign Wealth Fund certainly thinks that china is the place to put money. It is prepared to increase investment into the country. W