Moving lower. And republican president ial Candidates Campaign in iowa evover the weekend, but trump faces an indictment over his attempts to overturn the 2020 election loss in georgia good morning welcome to street signs. We have big down trades from asia today Chinese Markets in focus we are watching the hang seng down 1. 5 . Knikkei is down 1. 3 . Investors are focused on all of the commentary from the chinese Home Builders and the issues with the bank loan data for the month of july. Lets get to jason ong who is joining us with more color of what is happening with the overnight markets, jp. Reporter good morning. It wasnt the start of the trading in asia. We didnt have much to go on it was a lackluster handoff from wall street and catalyst and data release to chew on. It is a concern of the chinese Property Market which is keeping people risk off in the part of the world. No one is falling off a cliff. There are losses from the hang seng which will close in a couple of minutes. You see live trading it is a notable loss, but not really severe bleeding for the hang seng. Look at hang seng property index. The big pullbacks. Down to the latest developer which is running into the problems, joumanna that is Country Garden two of the bonds were halted in trading onshore. It is raising questions days after Country Garden missed payments on the u. S. Bonds it is not yet in default they have until september to make the payments before hethey are actually in default. Country garden is bigger and if they show they are unable to finance the bond payments and unable to continue, this could mean bigger problems for china this is the biggest pillar which is 20 to 30 of the economys dep dependence on the real estate sector Country Garden falling below 1 . These concerns have carried over to the rest of the asian markets. Australia closing in the red nikkei is unable to see the confidence as we saw the yen from weakness to strength in the session in a flight to safe haven. Tomorrow, china will report the production data. If we get another dismal set, some will point to another slowdown in the chinese economy. For the region, this has a growing link to the chinese economy which is showing signs of sputtering. What the policymakers will do is a big question mark for many to address and will alter the direction of the markets trading and the overall chinese economy. Joumanna jp, thank you i want to bring viewers breaking news with respect to Country Garden the company will be seeking to extend full repayments for onshore bonds in september by three years in installments. That is a reflection of how dire the situation is for the Real Estate Company chinas largest developer as jp was highlighting the stock is down 18 . They are looking to extend the bond repayment due at the beginning of september by as much as three years. That is a reflection of the liquidity situation. It is also being represented in other Real Estate Companies trading under water today. We are keeping a close eye on that the hand over was no pretty. Over in europe, after the soft start, we are beginning to turn positive. Green on the heat map behind me. The stoxx 600 is up. 20 regaining the losses from the week last week not a lot of data. Throughout the week, there is going to be a lot with the minutes from the u. S. On wednesday and retail sales data and Retail Companies reporting as well. That gives us an indication of what happens stateside in europe, we have a bunch of macro data to watch out for. Lets show you what is happening on the indices ftse 100 is trading 4 basis points we are seeing minors coming under selling pressure with the links to china big week for the uk with wage data tomorrow and we have more indication on the labor sector is doing and on wednesday, we get the allimportant cpi figures as well. Bank of england will want to see it moving in the right direction. Big week coming up cac 40 in france is up. 30 . We have the dax leading the gains up. 50 . We are about 100 points away from 16,000. We have been dancing around the target the last couple weeks we will see if they can break through to the upside. In terms of sectors, this is what we have for leadership. We have telco up. 50 . Banks are also up. 50 shedding off the losses from last week. Last weeks story was the italian banking tax. Some of the concerns have been shifted. Healthcare is up. 40 . One stock is philips and on the flip side is oil and gas which is finally coming off a bit after seeing the ninemonth highs pulling back on the oil and gas sector basic resources is down. 20 given the links to china lets tell you what is happenin with philips right at the top of the stoxx 600. Philips announced the dutch firm has taken a 15 stake in the company intending to be a longterm shareholder. It stated while it was purchased on the open market, the firms agreed on the price and buy. Very good reaction you see today it is up 5 . The company has been held back over the last couple years it looks like a new chapter which is reflected in the stock at the top of the stoxx 600. Another stock we are watching closely is the ubs stock we are up. 70 trading north of that 20 swiss francs mark. This after creditors were suing ubs after the buyout of Credit Suisse a group of 1,000 investors, including former employees, is planning to file a lawsuit as soon as today in zurich. They claimed to have lost month in the takeover. Lost money in the takeover. The reaction is still positive on friday, they came out with the announcement they will no longer be leaning on the government backstop. Since then, we have seen positive reaction to ubs and currencies here. A lot of focus on the yuan with the weakness from china overnight and disappointing loans numbers. Yuan continues to weaken against the dollar. 20 again, what many are saying in the market is that the authorities have no choice but to allow the yuan to weaken with the macro weakness on the ground that is the trend which it is moving higher. That is the reason why the dollar trades on the back foot the pound is trading 126 126 126. 90 it is a big week for the uk with the numbers coming out this week and we are nine basis points higher with the euro with the data coming out. When you think about currencies, you have to think of it trading over the other what is happening on the dollar leg as people are pricing out rate hikes out of the fed and possibly talks about rate cuts on the back of that, euro is strengthening over the u. S. Dollar. Lets go to u. S. Futures and look ahead of how the day is shaping up s p is down. Nasdaq is opening up in positive territory after a challenging week last week we had the s p close down. 30 on the week last week. Lowest level in over a month tech stocks very much in focus last week. The nasdaq ended down 1. 9 today, all signs are pointing to a positive start there is some ground to cover from last weeks losses. Goldman sachs expects the Federal Reserve to reduce rates by june of next year and continue at the pace of one p 25basis points cut per quarter. The fed will be driven by the desire to close normalize the fund rate from the restrictive levels once inflation is closer to target of t adding it picture expecting to e at 3. 35 and this is largely in line with the fed funds futures which is pricing in a cut by may and june it is interesting to see that analysts are coming on to the view of Market Pricing this time around may be correct. Going for that rate cut call my first guest on the show here is the equity strategist for sustainable Asset Management i have gone through a run of what is happening in the markets. The first question is to what extent are you watching the price action in china and the risk on or risk off move in other Asset Classes . Thank you for having me the chinese situation is something to watch particularly given the relevance to the chinese economy has in the rest of the world this morning, we basically went back to the levels at the beginning of july with the speculation of additional Stimulus Program started to feed into the market and it materialize. The most important number was the credit starter on a monthly basis came down to a 14month low if you look at the credit impasse, it dropped to the lowest level of july of 2021 we know that credit is the most important driver of the chinese cycle, but the manufacturing cycle to the large extent globally of the for the european economy, this is a challenge given that the European Manufacturing cycle tends to follow the chinese manufacturing cycle with the lag of sixtonine months this means the challenges in china over the past week with the government stimulus remaining more or less a challenge for the Global Economy and markets. Here on the cyclical side of the km equity markets. Is it possible to see the markets outperform in the area where china is so weak the european index, i dont think, has potential to puerto rico f perform it is cheap and it has valuation, but it is never a good indication for performance in the past in the euro area it is interesting to see earnings are coming back in europe moved back to the highest on the relative basis in mid 2021 this is happening on the back of banks on the one hand and the luxury goods on the other. I wouldnt think the luxury recovery can hold against the back drop of the slowing chinese cycle. Banks need to be seen. There is a structure relationship going on. Over the shortterm horizon, i think the european economy will face headwinds with china slowing. With this back drop, europe will find it difficult to out perform. The other area is the price action in commodities, specifically oil which is scaling a ninemonth high. The macro community had been very much focused and rightly so on the monthtomonth inflation print. I wonder what could be a surprise to the Inflation Numbers looking ahead given the pressures we are seeing in the commodities. Could we end up in a situation where commodities prices are lifting headline Inflation Higher at the time growth is starting to weaken that is very likely to happen i think what we see in the u. S. Economy in particular is a shift or reversal from the first half of the year where the nonmanufacturing side with housing has really driven the recovery and the manufacturing side is soft manufacturing in the u. S. Is the driver off the oil crisis in my view with manufacturing trucking to some extent is not expecting a big sustained recovery a bit of a comeback with the pmi in the past week the oil price has received a bit of a lift actually that should translate into Inflation NumbersGoing Forward. The ppi last week in the u. S. Showed to some degree that the bottom has been kind of reached with the headline numbers. I think this should be a bit more momentum in the coming months on the services side, which is the key focus of the fed over the last few months, i expect to see more of a slowdown in line with the u. S. Consumer pulling back a little bit from the strength which we have seen over the past year. As i was highlighting at the wall, it is a big week with the inflation data and headline data you are a big fan of the uk equity markets here. Why . I think that is for us a bit of a combination of different factors. We know the uk equity market is very much an International Market not only very little revenue exposure to the uk, but little cost exposure. It has a translating effect from the currency we expect sterling to move lower into next year we think the uk economy, despite the numbers in the Second Quarter which were quite strong, we expect the uk economy to slow which should help lift uk equity if we look at valuations the uk market is valued or cheap across all sectors it has a fairly attractive combination of value that is what with we like right now. We are skeptical on growth in tech the sector looks attractive over the long term. It will be one of the strongest performing sectors in the coming years. Current valuations dont make sense to us. We think there is room Going Forward and we prefer value and defenses in the uk particularly because of the currency should provide a lift very clear. Thank you for articulating your thoughts wolf on rotberg from j. Safra sarasin. It is a big week coming up we have key data points. Tomorrow is the Chinese Industrial output and retail sales. Stateside, home depot has the results and preliminary gdp and the latest reading of the uk inflation as well as the minutes from the fed meeting the next Central Bank Reports on thursday and the investors will watch walmart for the end of the week if you want to get involved in the conversation, tweet me im cnbcjou i love to hear your thoughts on the markets and what is happening in china. Coming up on the show, low water levels in the key wa waterways spark concerns we will tell you more about that story in a few moments ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Welcome back to street signs. Ukraine Foreign Ministry condemned the russian provocative action in the black sea. Russian officials boarded the ship for inspection. This is after the grain deal was stopped last month which has pushed grain Prices Higher 140 ships are halted at the canal. The massive pileup is a result of Water Conservation measures the panama canal deployed in july due to the drought. In europe, the low water levels at the rhine is causing a concern. Arabile has more arabile, to what extent will this have on global trade . Authorities at the panama canal said it may not be as big an issue as it was at the suez canal in 2021, but it will be material and impact things significantly. The panama canal is used for retailers like walmart and amazon and target for the winter holidays and trying to bring a lot more cargo to areas in south america or parts of north america as well. Plus the asia and u. S. Route goes through there 70 of the traffic through the canal originates from the United States or bound for the United States it gives you a clear indication of how significant that is 270 billion of cargo goes through the canal. It limits the reserve bookings for new ships. There were 40 ships a day, but that has been brought down to 32 ships. 200 million litres of water is needed for one with ship to go by at current levels, it doesnt have enough to do that at current basis. The panama canal gets water from two lakes which is drying up with the el nino effect. High temperatures are ensuring less water is in the canal because of high sense of water coming out of the area 21 days on average is the waiting time for the ships that is a difficulty to get the vessels coming through the water levels are hitting a fouryear low. This is the area we are talking about which links the atlantic and pacific ocean. You remember it was key back when it was constructed in 1904. There was a trade route in that time which is an 82kilometer trade route that needed to come through to link up the north and south. Similar situation out in europe. This is very important because the rhine river is at critical water levels we have seen high temperatures impacting travel so, too, for vessels traveling in and around the rhine. Diesel and heating oil and chemicals is all carried to areas in germany which is the engine of europe in many ways. Shipments are getting disruption it will cost significantly for people this is the area we are talking about and through the are heart of europe totake a look at hohow much it will impact. Quickly, this is how the shipments are looking. Maersk is down 30 over the last two years. Impacted from the weather last year and we thought we had gotten past the supply disruption with things getting better, but this will add to that dhl is down 24 , joumanna. We are keeping a close eye on the manufacturing numbers in europe which are also beginning to soften as well. The situation like this is not going to help. Arabile, thank you for the overview coming up on street signs, hoping to shake hands on a. R. M more on that after the break ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Hi. Im shannon storms bador. When we started selling my Health Products online our shipping process was painfully slow. Then we found shipstation. Now were shipping out orders 5 times faster and thanks to shipstations discounted rates were saving a ton. Honestly, we couldnt do it without shipstation join over 100,000 Online Sellers<