President obama justifies actions saying time is up in mosul. Today, with our support, iraqi and Kurdish Forces took a major step forward by recapturing the largest dam in iraq near the city of mosul. And authorities in missouri say police came under heavy gunfire overnight as a peaceful demonstration against the shooting of a black teenager turns violent. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. So a very good morning, everybody. Lets talk a little bit about this bhp billiton story. Unlocking value, but for who . Bhp billiton shares as the mining giant announces it will spin off 14 billion worth of assets into a new company to be listed in australia. It comes as bhp posts full year underlying net profits of 13. 5 billion. Thats up 10 on the year. Well, lets catch up now with john wilson. Well speak to him as he comes good. But meanwhile, i want to fill you in on the mollermaersk story. After the shipper delivers a 1 is billion buyback, up 5. 3 . It raised its outlook on the year citing stronger earnings on its shipping business. Earlier on the show, the ceo gave his outlook. The euro has a lot of strength and still has good balance of trade and a lot of export of goods. We have a lot going for us. But i think until we see structural change, more deleveraging, its hard to see really strong growth. But, you know, we just have to trade in the world that is being offered for us and i think there are plenty of opportunities also in a world that is growing a little less fast than you could wish for, in particular if youre european. So lets have a look at the European Markets and give you a sense of how the trading session has kicked off. Were very early on in the day, obviously, but the stoxx europe 600 is well into the positive ledger at the moment. Were up nearly 0. 5 at this stage. Lets look at the wall and have a look at how that breaks down in terms of the individual markets and where the strength is. The ftse up 0. 4 right now. As we saw yesterday, there is in the German Market at this point, and were 0. 9 the higher on the xetra dax. If you come along with me to have a look at the italian market, this is the key peripheral on our wall at the moment. You can see theres a little bit of pain there, so were off about 0. 1 right now. How does it look for the bond market, then . Are we seeing Much Movement here on the bonds, even as we see buying into the equity . Well, the interesting thing here, as you would anticipate, weve got some movement on the bond prices, not necessarily concerning the momentum that weve got in the equities. But as you can see, these yields are just extraordinary, arent they . Ten year. You give your money to the German Government for ten years and what do they give you in return . A measly 11 on t 1 on the yie. Quite frankly, why would you bother unless you are very concerned about the conservation of your cash. Italy, slightly better at 2. 6 . But is italy only 160 basis points safer than germany . Thats the question that the bond investor normally has to ask themselves. As you can see, we continue to have very low yields here as a result largely of the markets view that qe will come in europe at some point. Lets roll it on. Lets have another look at a different asset class. This is where we are in the currency trade at the moment. Euro dollar. The euro just continues to ease away here a little bit amass largely an indication of what we see in the market at this point that the dollar is going to get stronger and the euro is going to continue to get weaker here. Has the pound have the best of it . Weve done nothing by back away from the 1. 70 mark on the cable cross. If you want to talk about any of these, get in touch with us this morning. Well pick it up. Dollar yen, were not really going anywhere in a hurry, are we . But weve got some interesting stories out there and not least those that might affect the Australian Dollar with bhp billiton. Out to skree in singapore with a round up of some of these stories. Thank you very much, geoff. The markets are wrapping up the trading day and it has a riskon type of session despite the fact that the calculus with regard to ukraine and the geopolitics hasnt changed radically. Nonetheless, the markets and investors do seem to think that the geopolitical risks are receding and that is why we are seeing more money heading into our regional equities. The nikkei 225 closing off at a twoweek high will help the market was the data stateside, the numbers on the Housing Market, that helped and a softer yen helped, as well. One of our stockspecific stories that weve been following closely today involved sky mark airlines. The top gainer in tokyo gaining 28 today. Thats after the nikkei business reported that air asia may be seeking control for japans Third Largest carrier. But air asia Tony Fernandez was emphatic on twitter. He poured a big bucket of cold water amid the speculation calling that rubbish and saying the company is focused on a Budget Airline that hes stepping up with japanese partners, but not sky mark. So broadly, geoff, we are seeing a risk on as an appetite for equities in this region. But its locum vikz buying that we are seeing. That is how i would characterize it. Its low energy and melt up in these markets. A lot of caution in the minds of investors as we head towards the fomc minutes. Janet yellens address at jackson hole is now very important, timeline and for our markets, weve got data out later on this week on thursday, the flash pmi numbers from china. Thats where we stand. Back to you now. Sri, lovelily. Thanks very much indeed for that. As we leave the asian markets, there are those who think that europe is going to become increasingly like japan was several years ago. Stewart richardson, nice to see you this morning. Stewart is with us for an rng. Stay with us. You might want to get involved in this next conversation. There are those who are a littlup set about bhp billtons announcement this morning. They told us assets will be poured into a new Company Listed in australia. Andrew mackenzy said options for its earning capital to investors are opening up. As a competition, we will be intense and get more intense than i believe as a consequence of that. Capital bhp and bhp billiton will rise and we will have more options with regard to distribution to shareholders. All well and good, but why has the share price been falling . John joins us on the line from brisba brisbane. John, what are the shareholders not getting from this announcement that they needed . I think one of the things they didnt get and was anticipated as it turned out incorrectly was a Share Buyback. There was an expectation. And i think to some extent, it was promote d by the company or that was what appears to be the case. And these statement about were looking into it in the future is something thats pretty hard to quantify, identify, and get your head around. Its all very well to say were going to do something about it. I have whittled out that shareholders would rightly appreciate it, saying this is what were going to do. Were going to do it now and this is how its going to impact upon shareholders, but that didnt happen. But listen, the shares, i bought them because i believe that this is a business that is going to do better from here that ultimately the economy will support growth in bhp billiton. Is that spinning some of the assets off into a new company that i get to own as an existing shareholder, shouldnt i be happy about that, that management is focused on efficiency and generating higher return in an industry i already want to own . Sure. I think that is a different issue. And i dont think anyone has any negative thoughts about that, except that it is the weaker side of bhp. But they havent made any suggestion that thats not the case and that they are harding off areas which are not their core assets. However, there is a bit of negativity that comes with the spinoff, as well, and in the dmrako press here, that concern is about the people they have nominated or speculation that people who have chosen to run the new company. Now, weve got the ceo and the new ceo and the new cfo, both of whom have finance backgrounds, which is great, and no one is suggesting that they dont have the qualifications needed as part of a team. But what has been hard out here is that its an absence of operational people with mining experience. Now, that can be refuted, of course, by saying thats only part of a team and it really depends on who the talk to people. Who they enlist as part of the team to run a new company. Lets get some more questions in here, stewart. Good morning, john. As follow on from that, what does the Management Team has to put in place maybe in the next one, three, four months especially to get the market to start buying into this new spinoff about a new Corporate Structure . Is there anything in particular the market should be looking for . Well, the time frame thats been announced is the spinoff is not going to occur until sometimes in 2015. They may have been more specific than i am. So they have a bit of time. But what i would like to see, i think would like to see, people in that Management Team who do have the runs on the board with operating these types of businesses which are going to comprise the new capital. And specifically, aluminum, goal, magnesium, nickel and silver. Certainly to have the two things that are quite different, i think, anyway, aluminum is different from the other guys. So you need experience, i think, with aluminum and you also need experience with the other mining businesses. John, its been a pleasure. Thank you for your time, john wilson, private client adviser at rbs morgans. Stewart, why didnt they tell these assets on the open market . Its a good asset. They representative vowel in the existing business, they can be injected into the new operation, why isnt there a trade out there on the market . Its a reshuffling of assets within the sector in the last several years. I think theres been a lot of focus on some of the poorer investments in the last cycle with a lot of Companies Recently taking writedowns and a look at the restructuring. It was incredibly hot two or three years ago. China was pushing demand. With the china story now changing with the socalled rebalancing coming out of beijing, i think this defies that and the marmg of trade buyers would probably be the chinese themselves looking to lock in longterm surprise. So in terms of chinese dynamics, im not quite sure what this story is there. In terms of nonchinese demand, im not sure that that is given the current cycle in the Mining Sector. Just for the sake of disclosier, do you own anything in the Mining Sector . We dont own anything. Why are you in gold miners at the moment . Have you not seen equity markets . The thing about the gold mine, even if you go back a long time, and lets say we go back seven, eight years, the gold price has gone up significantly despite the performance next year, and yet gold miners have gone nowhere. A lot of writeoff in the previous core investment, we know that the underlying possibility is going to get challenged, the gold price is going to go down further. And that will, again, accelerate any further writeoff. In terms of the gold price itself, last year was a poor year for gold price. Gold price res doing relatively well. Featuring most major gold markets, actually. If were featuring gold markets in here, we have geopolitical concerns rising, we have concerns over longterm growth, weve got the yields which are zero everywhere, Holding Growth compared to bonds or a zero yield, theres no give up there. So its relatively good risk reward. If youd like to take stewart on on his gold trade, let us know what you think, world would it worldwide cnbc. Com. cnbcwex. Does google have what it takes to may you another 1,000 . What exactly will 500,000 get you in beijing . And brazils president ial election heats up. The candidates take to prime time tv to make their case. The vote. Can they persuade you toni vest in the verbespa . All that still to come. We started zya with the thought that the kid on the back of the bus might have a song that he has in his head but he just cant get out. With the technology of cloud, we change all that. I can sing something into my device, up to the cloud it goes, back down it comes, sounding better. We break down the walls of creation and we give music creation for the masses. Unlock the creativity in anyone. With the ibm cloud. The ibm cloud is the cloud for business. So were back, everybody. Delivering a 57 jump in underlying profits, persimmon is up 0. 6 . They were, quote, taking advantage of the current Market Opportunities and it is confident about maintaining that momentum. What about the other side of the world . Chinese home prices fell in a record 64 cities in july, including beijing, where price he eased by 1 is on a monthly basis. This as the government tries to calm the Housing Market while maintaining robust growth. Eunice has been taking a look at the situation for home buyers in beijing. Reporter jong lu is the proud owner of a 450 square foot apartment in beijing. The 28yearold webb editor invested her entire life savings and took advantage of easier mortgages in china to buy her new 250,000 home. Its very easy to get a mortgage. Any bank will give one to you, she says. Without one, i wouldnt even think about buying. Jong is one of the firsttime buyers authorities here hope will help prop up chinas flagging Property Market. In beijing and other cities across china, the Housing Market is starting to weaken. Many economists are worried about the impact a housing down turn can have on the entire economy. Chinas Real Estate Market drives growth around the world. The construction fuels prices in commodities. For years, the market was too hot with housing out of reach for most chinese. The government put in restrictions to stop speculators, but now theyre concerned about market could fall too fast and trigger a hard landing. Home prices dropped in july for the third month in a row while sales are sluggish. Beijing recently moved to encourage big banks to step up lending, especially to lower income and first time home buyers. Local authorities are also putting in measures, like tax rebates, encouraging buyers to invest despite falling prices. Sure, there are risks involved, she says, but im a risk taker, risks that chinese authorities hope stay under control. Eunice yoon, cnbc, beijing. Can you still make a turn in the Chinese Market if you can get access to it . Michael is a regional director and head of research for Greater China as jones lang lesalle. Thanks for joining us. Where is there an opportunity to make a buck . I guess it depends how you want to play it. We see opportunities for first time home buyers, really, across china. I think thats really the important story here. The demand picture and the policy regime very much favors the participation of those first time home buyers. To the extent that they represent 55 to 60 of all primary sales, and then you have upgraders which make up another 35 to 40 of transaction volume. So they really do drive the market piece end users. So would you say that the government has been successful, then, in actually driving the speculative money out of this marketplace . Yeah. I mean, the policies the home purchase restrictions started to come into place in 201 1. Our view is that theyve long been quite successful. I dont think they get enough credit for that, actually, to the extent they have marginalized the investor participation in the market. And i think the totality of the policy regime does make the path of least resistance building for and selling to these end users and first time home buyers. But the challenge Going Forward is Getting Developers to move down the income curve, to try to Start Building for people choser to average incomes. And there is a pretty big dropoff there because, you know, really, whats been built thus far is building upper middle class housing. Michael Stewart Richardson in the studio here. On that particular point, when we look at the Housing Available today and we look at, say, the home price to average income ratio, is this too to reach for the vast majority of people . And if thats the case, are we going to see further Price Reductions from the developers which will present the Downside Momentum for the Property Market maybe over the next 6 to 12 months . Is this a big risk, do you think . Right. So i think the issue of affordability can afford what theyre buying. The challenge is how you get development and completion of projects that have positioned lower. And what that means is those are projects further from the citys center so the land price is lower. Unit sizes are smaller so the total Purchase Price is lower. Fittouts that are less extravagant, less branding, fewer amenities. Thats what a project that is positioned lower looks like. Thats how prices on average come down and how you build more affordable housing. So its a question of segmentation. And i think the challenge for the market, the developers and the government is the profitability of building that mass market housing looks very different than what the industry has enjoyed up until this point in time. Michael, its been a pleasure. Thanks for joining us. For more, head to cnbc. Com, policymakers are pinning their hopes on First Time Buyers to prop up chinas property sector. Did you have some . Did you make 1,000 off of google . The company went public ten years ago. At the time, some analysts thought 100 a share price was too high. If they think the stock is around 100 and its going for 85, theres money on the table for the sel