Pot ash. And the german vice chancellor and head of the fdp party tell cnbc exclusively that the Ruling Coalition is right for germany. Also holding the title of economy minister, he lays out his support. It is hard for me to show there are no burdens for corporates or german smas. That means no increase in the substance taxes. Energy has to be affordable. Good morning, everyone. Emerging markets once again in focus today with the indian rupee falling to a record low and indonesia selling off quite sharply again today. Adam is in singapore with the details. Adam . Thank you very much. It was a particularly ugly picture in southeast asia. The epicenter of where the selloff was actually happening here today. The market you just mentioned, falling heavily for the second straight day, taking the combined two day losses beyond the 10 mark for this equity market, currently still trading. Off 244 points across the board. The Market Players in indonesia seem to be a lot concerned about the selloff were seeing. And state pension funds, two of them said they plan to increase their purchases of equities as equity markets are selling off here. They say the selloff has nothing to do with the fundamentals of some of the companies in indonesia. In the meantime, investors also continuing to take aim at some of the other mash rkets. Thailand suffering, malaysia suffering, and even here in singapore, market that is, pretty much a developed market and aaarated in terms of the sovereign, also getting hit because a lot of the companies in singapore are tightly tethered to the Southeast Asian region. Now, the selloff in the emerging markets also affecting india as you just mentioned. However, we did see some bargain hunting in that marget after the index fell over 1 plus percent, sitting down by. 3 . This after jpmorgando downgrade the market to overweight. In the meantime, that setting in the emerging markets, it did affect the bigger markets in north asia. Look at the hang seng off by 2. 2 there. And even the shanghai composite, that had been in positive territory at the early part of trading session, also dipped into negative territory, even though we saw some bright signs in terms of jpmorgan lifting its rating for that market. In the meantime, the markets in north asia, the kospi in regular territory but the selloff, you know, really affecting the sentiment in the developed markets. The biggest market in north asia, nikkei 225. Saw some model losses this morning, but the acceleration in the emerging market space affected that one, put together with the strength in the yen, which i believe has us at the 97 level. That affected the stocks. Every single secretarier y er s nikkei 225 in negative territory. All of this due to what with the fed tapering. It looks like indiscriminate selling in the asian tradie ini session and we have taken the cues from wall street and asia with the european trade off 1 for the stoxx europe 600. It is pretty clear investors are running for cover on the back of those fed tapering concerns. Take a look at the individual indices. Seeing big declines for the ftse mib in italy. This was the big performer yesterday on the back of Political Uncertainty. Ftse 100 doing a little better, but up around. 9 . Couple of stocks were focusing on today and the basic resources space, which is the biggest decliner in terms of the sectors here in europe, bhp billiton missing forecasts with a 15 fall in half year profit and the company said it will slow down a long awaited move into pot ash to curb spending over the next four years. Glencore xstrata shares off by 3 . This company wrote down the value of assets inherited from xstrata by some 7. 7 billion. This is more than expected, and it announced a 9 drop in core profit in the first set of full results since the Commodities Group was created. On to some better news in switzerland and chocolate. Shares of lind and sprungli were sweetened, sales up by 8. 7 in the first half of the year. And shares, as you can see, up by 2 . M a news to tell you about. German profit Group Deutsche bund offered an all share bid for gsw. The deal would create a company focused on thriving Real Estate Market in berlin and gsw up by 7. 87 . In the bond markets, were still seeing yields at fairly elevated levels at twoyear highs for tenyear treasuries and saw twoyear highs for the 30year space. The yield still above 2. 8 , it was as high as 2. 9 in yesterdays trading session. Same goes for the tenyear gilt yields, still close to the twoyear high at 2. 7 . Keep in mind, we do see a spanish bill auction later on today. Spain selling some 6 and 12month paper, worth 3 billion to 4 billion euros. In the forex space, the g10 currencies, we have been seeing a lot of movement in the southern hemisphere. Australian dollar against the greenback, it is actually down by. 7 , more selling pressure as the rba left the door open for further rate cuts. Sterling dollar pretty steady this morning at 156. 58. On the German Campaign trail, the social democrats are in damage control mode, trying to clarify their tax hike pledge. This is after leader said it could be reversed if initial crackdown on tax evaders were successful. Elsewhere, chancellor merkels campaigning took a turn yesterday when she was forced to cancel a rally after a ninehour hostage standoff took place in the same town. The hostage taker will today face a judge to decide if hell be jailed or sent to psychiatric hospital. But, again, meanwhile, our very own annette has been talking to the leader of the liberal party who is also the vice chancellor of germany. Annette, just want to clarify that the hostage situation had actually nothing to do with Angela Merkel. We have got that out of the way. What did he say . He is very preoccupied about being reelected as theyre fighting for the 5 threshold and only if theyre gaining more than 5 of votes, then they can as well form a government with Angela Merkels ruling cdu. There is a lot of insecurity. And as well it should be quite clear that Angela Merkels cdu should go together with liberals if they gain enough votes. But let me introduce you to the interview ive done with mr. Rosler. I was starting off in asking him what are his plans to keep that country here, germany, in such a good economic state, so take a listen to what he said. Translator first of all, the government and the Ruling Coalition should stay as they are. Of course we need to keep on working at the important questions, just take the topic of budget consolidation. We can see just how important solid state finances are for solid growth across europe. At the same time, we need to assure there are no burp for corporates or german smes. And energy has to be affordable. The scarcity of Skilled Labor is an issue, especially in the tech industries. Looking at Different Things from Angela Merkel, there are some doubts if shes committed to a commission with your party, the liberals. What is your feedback from Angela Merkel . Translator were relaxed. It is clear all the leaders in cdu with Angela Merkel in the helm have recently made it clear that backing the very successful cdu liberal coalition. If we get enough votes, we get enough votes. Thats not a question of sympathy. You have to look at the numbers. Germany is doing well. Germans are doing very well. And our government is doing everything it can for this to remain the case. Currently youre treading all over germany to meet entrepreneurs and big companies. What is your feedback from those people . What do they really want from politicians right now . Translator people want us to continue running our budget in a solid way and for there to be no further liabilities. We have to take care of the Energy Prices are affordable. We need to fight the scarcity of Skilled Labor in germany. These are the big issues which preoccupy entrepreneurs in the middle. But above all, people dont want to be pat ronnized, not only in their private lives but also business lives. Social democrats in the greens represent state paternalism for collective thinking, which goes as far as the vegetarian day, our current example. That motivates us, but also the people not to vote red green and makes us strong during this Election Campaign and hopefully also on september 22nd. And quite a bit of color, im going to discuss with alexander shoem schumann, the chief economist, how German Companies are really doing. Thank you for joining us. My first question already said it, what are you hearing from your Member Companies . At the moment we hear some kind of criticism that we have worrying Election Campaign. Maybe this is true for the campaigning itself, but the election is really a decisive moment above all for german economy. A lot of projects have not been done over the last three years due to the fact that euro debt crisis dominated the political agenda. And we need more reforms in the next four years. Above all the highest Risk Companies name us here in germany is Energy Prices. So Energy Prices a huge concern. We made after fukushima this uturn, but we did this on the basis of system of administrative prices and this created costs year by year of 20 billion euro. We have to change this. We need a more market oriented system of energy price building and another thing, huge thing for businesses in germany is the scarcity of labor. Lets tackle the thing about Economic Growth. I mean, everybody was thinking that Economic Growth was coming back in the second half of this year. Do German Companies feel that were guarding the experts. Last week, we got some signs of hope from the eurozone, the gdp Second Quarter was quite well. For germany, they were surprisingly well. But this was also due to the fact that we had a weak start into the year. And now we have some kind of catching up effect in the Second Quarter for the second half of the year. We also count with robust growth, but not an overwhelming growth rate. We are our estimation for growth rate for this year is 0. 3 . Also the bundesbank and the current report is saying that the growth is good, but it is not so good as it should be or as it could be. Yeah. Looking a bit more in the future as well, after the german elections, what are these companies what do they really want from politicians was the question i posed to mr. Rosler. Do they want lower Energy Prices . Do they want more Skilled Labor . What is on top of their priority list . On top of their priority list is in fact Energy Prices. So germany gets more and more into a kind of sandwich position. We have lower wages in the eastern parts of the world, and now we have lower Energy Prices in the western parts of the world. And our competition situation of germany is getting worse due to this fact, and so we need to shift in energy policy, but we also need more reforms to more qualified labor, to education system, and also infrastructure. We need more more money spent in infrastructure and less in public consumption. Does the German Government do enough to get Skilled Labor from outside germany. You dont really can tackle the low fertility or low birth rate problem in the country, but you can lure people into germany. Are they doing enough . We are knowing that there are three potential to tackle this problem. First is to get more women into work. The second is that we work longer. And the third thing is that we get more other people from other countries to germany. So we are hearing a lot of spaniards, portuguese, come to germany now. There is some kind of, let me say so, movement to build a really european labor market and this is going on. And policy could foster this development. Thank you very much, alexander. Well, carolin, that is it from us here in berlin. With that, im sending it back over to you. Annette, thank you very much for that. This is coming up on todays show, the indian rupee continues its free fall, hitting a fresh all time low against the u. S. Dollar. Can the reserve bank of india stem the selloff . We cross to mumbai in around 20 minutes time. Protests bubble over fracking in germany and how it might affect the countrys famous beer industry. We talk to the German Brewer Association in berlin at 10 45 cet. And then at 11 30 cet, we cross state side to the heart of the shale gas boom. Dont miss out as we both hear both sides of the argument and the great fracking debate. Analysts expect more bad news from jcpenney when earnings hit today. We preview the numbers live from new york at 11 50 cet. Weaker prices for bhp billiton earnings, but the Company Continues to invest in new projects as Glencore Xstrata takes a massive writedown on mining assets. We discuss the sector after the break. [ male announcer ] ive seen incredible things. Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. Egypts interim government has continued to crack down on the Muslim Brotherhood, arresting leader mohamed badi in cairo. Hell be charged with insighting the murder of protesters. The lawyers of Hosni Mubarak started Legal Proceedings for his immediate release. Yousuf joins us on the ground with more on cairo. These two factors are only going to complicate matters even more. Absolutely, karen. It is clear the courts have their work set out for them in the coming few weeks. First off, the arrest of the supreme guide, the top man of the Muslim Brotherhood. Remember, he was charged with inciting murder back in july. The arrest did not materialize until the early hours of this morning. That comes off the back of state television brandishing images of his arrest, shows a visibly distraught man, clearly tired, and he will be indicted on those charges. The Muslim Brotherhood condemned the move. The other development is the possible release of the former president Hosni Mubarak. Now that is according to his lawyer. He says that in a matter of 48 hours, after getting through administrative hurdles he could be released. The fact of the matter is judicial authorities have not confirmed that will happen. There is still a retrial pending on his previous sentence, which is for not protecting protesters. That, again, is unlikely to happen, given the Political Tension on the ground here, the political impasse. It is going to stir emotions. The military experts tell me it has no interest in supporting an action like that. And also, keep in mind that the conversation is still ongoing about relations to egypt. The government said it will not allow anybody to mettle in domestic affairs. The United States is reviewing its aid to egypt. European union will have discussions on wednesday. We understand an arms embargo is on the table, but what is going to weaken any policy decision is the fact that a Saudi Foreign minister made it clear yesterday that any country threatening to cut off aid to egypt at the Largest Oil Exporter in the world will be happy to yousuf, thank you for that. Cnnoc stood at 38. 3 billion yuan. In terms of the forecast, how it is performing against forecasts, for the net profit, this stood at 30. 87 billion yuan. So the net profit is better than what analysts were anticipating. Cnooc says oil and gas output were up 23. 1 year on year. And first half oil and gas Sales Revenue stood at 110. 8 billion yuan. Bhp billitons cost cutting efforts and production boost have failed to stop a slide on its profits, excluding one offs. The Global Mining giant made 6. 1 billion at First Six Months of 2013. Thats well below estimates and it amounts to a 30 drop in profit for the year. As weak Commodity Prices take hold. Bhp says it is pushing on with its foray into pot ash. It is investing 2. 6 billion in its canadian jansing mine over the next four years, but there is still no start date for production. Staying in the sector, Glencore Xstrata shares are trading lower after the mining giant revealed a larger than expected 7. 7 billion writedown on assets inherited from xstrata. The company said that the process of integrating its former rival had, quote, exceeded expectations. The news came as the group posted a near 9 billion net loss in the first half of the year. But adjusted profit came in slightly ahead of estimates. Joining is warren gilman. Warren, thank you for joining us this morning. Lets kick things off with Glencore Xstrata. The asset writedowns, in your view, is that good news . Because you feel as though glencore is a kitchen sinking on its investments in xstrata . No great surprise in that number. It is a bit of a shock when you see the number,