The selloffs. Selloffs. The euro is gaining strength, gaining momentum as the dollar falls lower. The bets are off when it comes to the federal rate reserve hike. Many are feeling that lists in september will be have will have less than 30 chance. December, we are likely to see 55 chance of a rate hike, that is what the market is factoring in. People are delaying the Federal Reserve hiked because wha of wht is happening. Keep an eye on some of these emergingmarket currencies, because we are seeing the selloff continuing. The south africa is losing value against the u. S. Dollar. We are still seeing the pain in the emerging markets, and of worst, commodities the bloomberg Commodity Index number wincing in 16 years. Copper is continuing to trade lower. The lowest growth in china since 1990. Grains are selling off, metals are selling off, because oil is selling off. And this, interestingly is blended the first time below 45 per barrel since 2009. Clearly the market is worried about global growth, and were seeing money moving into the havens. Gold came up for a little bit. Ey moving into germany down to basis points. Still some concern about whats happening in greece, of course, as the snap election has been called. I leave you with some equities a sign of growth. Bhp, the worlds biggest miner, up by 4 . Exposure but the largest insurer in south africa is getting beaten up as the South African continues to fall. Jonathan great work. It has been an ugly contest three minutes of the session the dax is down by three percentage points. Conteste most ugly because it is even uglier in asia. Lets get over to david ingles in hong kong. David good morning, jonathan. Go back to bed. Ugliest day here in asia in four years. It tells you a lot when the outperforming today is down only 2 . The rest are absolutely hammered. I was doing some simple math just update this figure we have been following all morning. All monday in asia, we are looking across the board of at least 1. 2 trillion. Wiped out, disappeared. Certainly, japan is playing a big part in that, entering a technical correction. That market has been closed for about an hour now. Shanghai composite is just closing up, down 8. 5 . Lows of the day were as much as 9 , and another thing and want to mention the scope of the selloff we saw here in asia today, that something we havent seen in a very long time. 26 , 97 of this is trading lower, much lower. The philippines were down 7. 5 having his worst in years. This statistic keeps coming back im looking across some of these markets. The worst day since 2013. What happened then . That was the paper tantrum. The malaysian ringgit, the indian rupee all getting hammered. They are a threeyear low. Its one of those days. You had hoped you stayed in bed. But we have to get through this until tuesday. Jonathan david ingles, so depressing. They give very much. Lets keep it on china. The government says it will announce tension funds, failing to implement cuts to the bank of reserve. That speculated break cut that never came is perhaps the big one over the weekend. Lets get out to nick. They didnt get a rate cut so i guess the question has to be asked . Why didnt they deliver . Nick when you are looking at is a government on the knife edge between two choices. One is giving the market a greater hand and allowing the market to go where it will. To other is to intervene either prop up the stock market or prop up the economy as a whole. They have had such a string of bad data. It is important to consider the fact that the shanghai composite, awful day today, that it is still up 40 in the last 12 months. There was clear evidence of a bubble. Stocks were trading at about 60 times earnings, and that compares to figures. Near 20 in the u. S. There is no doubt that the shanghai composite was in bubble territory, so we are waiting to see what the government will do next. Jonathan nick, what can they do . We get these little tweaks, allowing the Pension Funds to buy stocks for the first time thats not enough to lift sentiment. Going forward, do we carry out these little tweaks . Do they go bigtime . The expectation is that they will go big. This reserve requirement is really a key figure, so banks are required to hold a certain amount of cash in the reserve, thats well above the number in western markets. So there is a lot of cash still tied up in the system that could be brought into play. What you are seeing here is people want to signal from the government. What are they going to do . Are they going to let this market run or are they going to step in. A previously said they would let it go below 3500 but it has gone well below that. The market is looking for some action by the government but it has got to be big. Jonathan great to have you on the show. Joining us live from beijing. We are joined by the head of investments across Bridge Capital way. Great to have you with us. The doomsday scenario everyone is talking about it. But when i look at Monetary Policy in china, that is not an emergency Monetary Policy setting, with rates around 5 in rrr at 18. 5 . When does it become one . Well what we saw in the close today was that there was some intervention the chinese government. That is what i heard in the news. Clearly, if you look beyond the headline, things are happening there is a mention of the they can only use the land as the ownership that they had. W you mentioned just no there are some things happening. It is difficult to say whether they are in a panic mode or not, but even the rrr cut, which was a rumor on friday, didnt come through. That, what we are seeing in the Chinese Market is very difficult to say. Move if youve an 8 have Institutional Investors jonathan i have the dax on my screen down by three percentage points. 2014, andto october, we talk about whether is this an october, 2014 moment or something bigger, so the more significant . Manish this is definitely a we have seen a big crisis. About whatsk happening in the economy. Of course we know that Central Bank Liquidity has been what investors have been buying in. But we havent seen much on the fiscal policy. In the short term you can have growth driven by demand but in the longterm it is all about supply. That is something we have not seen in this country, we are seeing been doing a great job. You willt some point have to respond more than Monetary Policy. Jonathan well we are waiting for fiscal policy, we are waiting for Monetary Policy. The big take away from last week is that we have what was perceived by many as a dumb percent of Federal Reserve minutes, not enough to turn around this market, to stimulate a rebound in the equity market. It was written over the weekend can theyal banks remain a central stabilizer . Manish i think they can, because we underestimated the power of the central bank. In fact, i would say that even if there was an early rise in september and i think there could be one what you really dont want is a big job support, which makes you think another one is coming in december. To your point, i think the central bank can control that, but i have been disappointed and we cant wait for that. Jonathan what am i waiting for to pick up the pieces . Day,for a 10th straight attacks and their market territory delay weight first jackson hole . Manish no, i dont think so. Like i said 10 is overdone. Equities, 15 . He if you miss the rally last time, this is your time to pick it up again. The european economy is much better. It is moving out of the emerging market, and look at the eurozone trade surplus numbers. Scenes k behind the i called the yuan flu. People are trading on the top headline people are ignoring the basics of the economy. Are you ignoring the fragility of some of these indexes . The s p 500 it was doing ok, but beneath the index, you lift the lid and look at the movers, there are only five or six stocks keeping these indexes anywhere near the green. The fragility as been for a while what is that return . Manish you are right because all of these stocks came into selloff on friday. But we have seen the market if you are upgrading your iphone, the s p is up and people are buying once again. You pick up and you buy your goods again and you get investment in the market. Jonathan the south africa share index fell the most in more than five years, a brutal start of the session. Manish will stay with us. Coming up, emerging market currencies get hammered and none are spared. Political risks, tensions on the korean financial. Another election in turkey. And a bloomberg Commodity Index sinks to a 16 year low. 3 13x is down by over minutes into the session. Jonathan good morning, im Jonathan Ferro live from london. Its quarter past the hour. Stocks are pretty lets bring up the index for you. The stoxx 600 down by 3 , the ftse trading below 6000. We are coming back a little bit but we are still down by 2. 6 , and on a 10 day losing streak. The dax is down by 10,000 points, in bear market territory. The shanghai composite look erasing aown 8. 5 , 60 rally for 2015. Switch of the board and check out the other Asset Classes. Morning,ger euro this training just below 1. 15. We will talk about this in just a moment. Crude is south of 45 a barrel for the First Time Since march, 2009. Bloomberg Commodity Index march, 1999 was. Unreal stuff. A 16 year low. Lets get you up to speed up the top stories. The Global Stock Selloff continues the singer composite down 8. 6 , its biggest drop since 2007, erasing all its games in 2015. Japans a stock fell the most in two years, internet correction. The bloomberg Commodity Index slid to the lowest levels of 1989. Results, after iron ore prices drop. The stock is trading down by more than 4 , the biggest fall since 2008. Toyota shares plunge the most in 18 months after the company confirmed its biggest production line in china will stay closed for two more weeks because of the deadly explosion. Toyotas chinese affiliates say operations will only resume when it can confirm the safety of its employees. The blast destroyed nearly 4000 vehicles. Currenciesgmarket at their lowest levels. Kazakhstanwe saw abandoned its Exchange Rate we spoke with the nations Prime Minister who says other Oil Producing nations will not be far behind. We have been learning, experience from other countries, like australia, canada, like chile. But the movement was inflation. I think we can reach the goal of free flow of the economy. I personally, strongly believe that the central bank should fall that direction. Jonathan for more, lets bring in the bloomberg strategist. Mark, how far can this go . Talk to me about some of the levels we have artie broken through. Mark good morning, jonathan. At the moment, all the markets are suffering indiscriminately, as price seems to be the main fundamental. I see a can go quite a bit further. We have august summer liquidity a lot of places are on holiday and prices the dominant factor. At some point, we will start differentiating, but it is too hard for investors to step in. Jonathan what a look at drivers, i go back to 2013. The big difference between now and 2013 is we are talking about rising treasury yields. Do we have to take less of the u. S. Centric view of the world to see the drivers . Mark 100 right. In the last few weeks we have been really focusing on the imminent said hiking cycle. Walking in this morning, the september hike is pretty much posted but they keep moving it back is the risk immersion gross. It has very much focused the commodities story. That has always been a negative but it is the one big driver now. Jonathan differentiate, if you can, when we pick up the pieces and break down. Which currencies by the resilient ones and which ones are more vulnerable . Mark ironically enough the best stories are in asia. Countries like india has growth. The collapse in commodities is a boon for them. Same for the philippines. It is also a commodity importer. But again, he cant get into than you but they are good fundamentals. On the negative side are commodities exporters like russia and columbia, who suffer from growth problems. That is probably where the main differentiators life. Jonathan thank you very much for joining us this morning. Lets continue the conversation and ring in the senior director, us. With price movements, these are very different looking treasury yields to a have to look at this a lot differently . I think yes a number of things are different in terms of the applications about the fed and what they are going to do. At this time we are anticipating whats coming up but the timeline is much closer. Back then it was much more of a surprise. Anticipationt the is priced into the market, but that doesnt mean we can ignore all the other growing problems. Jonathan when i look at the dollar and the dollar versus g 10, a very different looking dollar. The story right now is that this has nothing to do with the dollar and this is just a china trade. Manish i would agree with that because look at eurodollar. Seen with this, the Imaging Market has a lot its not quite 1997 where you would pay for the dollar and everyone took the pay off, but that is whats happening with the yuan. Its not quite that dire. Especially in india, its a very minor currentaccount and low Commodity Prices is going to kick in. The Balance Sheets i think will do much better. Marcus mentioning Going Forward when we try and differentiate between these different currencies, we are moving from the fragile five to the vulnerable 10. When you move away, has the story changed from the current account deficit story to just the commodity producers . The proxies for china . Phoenix yeah. I think its largely the em effect story. Balance very much on the we expect that pain to continue with the domestic economy slowing down, because of decreased trade to china. Jonathan the backdrop to all of this is the commodity rep. Route. When you look at Court Government bonds, is a bond yields going lower . Manish yes. Looknk its true if you at the emergingmarket bonds, even they have suffered. For me in emerging markets i am not doing much, and you pick your country. For your pick individual countries, but not by a market complex. Especially because you see the fed will respond and i think they will still raise rates. There is still more to go. Jonathan phoenix, Going Forward, whats remarkable is that the security has always been there but if we are looking for a catalyst in the most recent route you would go for that devaluation in china and what the pboc did. Chinahe last few years, has acted together with the dollar, an ever stronger yuan, china and what they have done they have come out and said we are going to pressure ourselves anymore. Phoenix i think it is a pretty complex story. They are trying to address some of the internal issues and release some of the steam. The same time, providing a certain amount of stability so that the market doesnt collapse. But i think it is a very tenuous balance they have to try to reach. We had investors on the other hand really nervous about the over valuations we see in the Chinese Market. That is going to continue to provide downward pressure alongside slowing chinese growth. Jonathan they question a difficult to answer but is the pboc going to lose control . Phoenix yeah, thats probably still a question to be determined. We dont know enough at this point answer that question. Route theig em argument, and we all discussed whether this would push the fed back is that what im going to see here . Manish i think that in september they will raise, because it is believed that the Unemployment Rate is lower and jobs are kicking in that will conflate. A september race is not about inflation numbers, its about one final point on china. You have seen the prices, properties 15 . The gdp has been down consistently and if you get that an account you might see a q4 recovery. Its not all as dyer. Dire. Jonathan sticking with team september. Thank you very much. Manish, phoenix. Coming up, we talked politics and the market. Greece heads back to the polls will tensions flare in korea. We will bring you the details after the break, 26 minutes into the trading session. Drink up the equity board for me. The stoxx 600 down. We are down by 2. 73 . The shanghai composite is down 8. 5 . A quick look at the other Asset Classes a stronger euro, a weaker em effects. And bloomberg Commodity Index are at a 16 year low. Stay with bloomberg. Jonathan good morning and welcome back to on the move. My pictures of hong kong on the screen. Thehot thing is down, hang seng is down. Attend a losing streak, down 2. 5 this morning. Low, low, low. Switch up the board quickly the other Asset Classes. Crude is at 45 per barrel for the First Time Since spring, 2009. It has been that long. A lot of stock movers out there and a lot of red. Caroline hyde has the story. Caroline brutal out there. Every single Industry Group is collapsing at the moment, everyone is underwater when it comes to their share prices. Prices are down 10 at the moment, double the pain compared to the rest of the market. Most industries dropped by 3 but the miners are down by 6 . Tall oil is down as well tull ow oil is down as well for the First Time Since 2009. These are big sectors, as well a significant fall there is just one stock among 600 that is in the green and it is this 1 abongoa. It is managing to keep its head , securing a new contract. A major shareholder, and it has been repaying a loan. But even that tends to go into the gray. Every single stock is falling this morning. Jonathan thank you very much. Markets plunge in volatility and political tensions on the rise, especially in the korean peninsula. Talks between the north and south continue after the exchange artillery fire. The north step