The last three months. We see volumes about a third lower than usual, so take it as you will. Past a 200 Day Moving Average . Will we see the selloff, particularly in the auto sector, the export sector . Bmw is saying that it has been hit by the terrible explosion we saw in china. . Italy is opening up 3 10 of a percent lower. There is a risk of the selloff even as we get toward that deal with greece. The finance minister of germany is saying they will back the greek deal, but its not giving much appetite for buying equities, or with the euro which is coming off session lows. Seeing the euro lower and a commodities base continuing to feel the pain. You are seeing a lot of concern about asia and the emerging a continuousontinuous selloff adding to the pressure in terms of thailands economy. 50 billion or so in terms of tourism. We could see the selloff and commodities, with oil up by a tenths of a percent. Trade at the moment and that is feeding into european equities. This is an Oil Services Contract company, and you can see how it is up 2 . This is a company that is desperately tried to cut costs, shedding 13 of its workforce since december. They are seeing sales down 19 , but they are trying to up the dividend and placate the investors. They are saying that we have this under control as oil price slumps. They are trying to save in terms of costs. John would up 2 , persimmon up. You are seeing sales picking up, but they are saying that they are ready to whether any sort of storm of increasing Interest Rates. They feel that mortgage demand is still there. Half aon is up percentage point in line with estimates. 1. 5 and its numbers are impressive, concerning their medium to longterm growth trajectory. This company is bringing in more than a billion in terms of sales. Overall they are managing to leave a sweet taste in peoples mouth. Mark lets get to juliet sally in hong kong. Hi, juliette. Juliette not as much of a bright spot here in asia, it has all been about the big selloff weve seen in the shanghai composite in the last hour or so heading into the close. It looks like it is going to close down by more than 6 , similar to what we saw a few weeks ago when we started to see that big selloff coming through in the last 90 minutes or so of trade. Bloomberg reached out to a couple analysts trying to work out why it has come through in the last hour. One analyst is saying that it could be because we heard on friday that chinas security wasnt going to intervene anymore in the market. Verylso we are getting close to that technical resistance level of the shanghai a lotite, nevertheless, of selling coming from the last hour or so in china. The Hong Kong Market is looking like its going to close down by more than 1. 2 , and we are focusing as well on thailand in the wake of the deadly bombing in bangkok. 2 , australian by closing down by more than 1 , japan down by one third of 1 . Wet just have a quick look at the shanghai composite in see where all that selling occurred. You have the oil and gas stocks which did very well yesterday, up by. 4 . By nine,ls closed down technology down by more than 9 . Then as i mentioned, the other big story of the day has been that selloff that we have seen in thailand, as you would expect, following that balom bing. Shopping centers, airports stocks coming under pressure, and we have also been closely watching the baht, which fell to a sixyear low. It is continuing that selloff against the greenback at the moment, holding at 35. 57. Mark thanks, juliette. Heres a quick look at the events still to come later today. First, at 9 30 london time, we will get u. K. Inflation data. Is estimated to remain at 0 for another month, and remains the key data point ahead of a potential rate hike from the bank of england. 10 at noon you get time, we will get then at noon u. K. Time, the turkish rate decision. It will be the last meeting of that central bank before the fed convenes in september. This afternoon, we await u. S. Housing started a. Those figures will give us the first data on housing activity in july. Lets bring it back to china. A week ago today we saw that shift from the pboc devaluing the yuan, sending ripples through the global market. It moving 3 against the dollar and today the nation continues to implement policy to stabilize the currency. For more, lets get over to hong. Ong, where we are joined what is the latest moves, then from the Chinese Central Bank . Good morning, mark. Today we had a big liquidity injection from the central bank. There is plenty of cash flowing through the system but we havent seen any fireworks in terms of the you want appreciation, and that might. Tack up really, its all about getting freer trade. Freer, we dont really know which side of that debate is true because it will take a number of weeks or maybe months to see how much the pboc is willing to let the yuan to appreciate, so it is quite early. Enda, we also saw chinas fx reserves. Is it sustainable . Enda well, this is an interesting question. Its quite a burn rate, even with the pboc with signs of growth. Again, i think it comes back to the appetite that the pboc is going to have to intervene in the market, and to steer the currency one direction or another. Somehave freighted up to extent, but they did make clear last week that they are willing to intervene during times of volatility. Again, it will take time and only time will tell. Last week when we reported it we wont know how much they will do to keep it going in the weeks and months ahead given the burn rate. Nda, we have data out of china earlier Property Data what is the take away . Read onobably a better house prices, although the Housing Market there has a little bit to go yet. For aou need to look at, sustained pickup and house four, tiers three and well away from beijing and itnghai some people took as a sign that Consumer Confidence hasnt been don damaged and others would suggest that it is less ok. Given the wider economy remaining fragile, i think it remains to be seen just how durable improvement in the real estate is. Ark lets bring it back to Senior Advisor bob. What is your reader the chinese Property Market for the first time in 16 months . Prices have risen. What is your read right now . Bob two factors one is that one has to clearly distinguish between the very successful coastal cities and the Speculative Development in a number of the tier three or four cities, where we have this concept of ghost cities. There is a lot of speculative real estate which is still empty. I would argue that the data is, i think, quite positive for the coastal cities. Asks have we got a base being formed for the Real Estate Market in china as a whole, i would say it is early days. I think the positive comment is probably a major downside in chinese real estate. Its probably quite limited. There is some speculation today as to why the shanghai composite has fallen that would set up real estate data. That takes away an excuse for the pboc to ease further and i would completely disagree with that. The pboc are not just looking at the Real Estate Market, they are looking at the border economy. Obviously, they are going through a pure boat of currency a period of currency adjustment. The shanghai composite has fallen because the pboc are not going to ease further. Mark it on the currency adjustment topic, has the dollaryuan stabilized . It seems to have done since friday. Bob in the shortterm, the answer is yes. But one has to recognize that over the last year the chinese yuan has been one of the strongest currencies in the world. Prior to this adjustment, it was virtually pegged around 6. 1 against the u. S. Dollar. And if you look at the movement over the last two years not just against the yen but also against some of its key competitors, like the Southeast Asian currencies, it has been one of the strongest. Therefore it wasnt surprising that we have seen very poor export data. July export data learned many people in the chinese administration. Year on year, it was down over 8 . Per export figures, strong currency mark overvalued by how much . Bob if you look at the parity models and compare particularly the chinese yuan against other asian currencies, even at this level, were probably overvalued by 10 15 . That doesnt know is going to fall bobmark absolutely not. Bob but i think after this adjustment, will probably go through a period of stability. My own forecast is a range. 6. 35 6. 5 . I would be surprised if they let it spiral down. And of course we have those negotiations with the imf, about a component of the sdr. Think the more flexible approach will increase volatility daytoday. Mark all the skepticism over chinas economic data, which side of the argument are you on . Bob i stick to the view that the chinese economy is clearly slowing down over the longterm. What is that english . It means that this year i inc. Will i think you will get 50 growth. There is still a lot of investor pessimism, by retail sales are growing, and 10. 6 year on year. Fixed Asset Investment board today is up over 11 . Industrial production is up over 6 . All of that when you look at the money supply data figures, the only member growing willing to double digit. The negatives were shadow banking, which i think the pboc has solved that problem. The negative was the Real Estate Market, and we were discussing that. And the reason negative has been exports. The offset to chinas competitiveness issue is the consumption remaining strong, posted by the liberal policy to increase wages. China is no longer the cheap Manufacturing Base it used to be 5, 10 years ago. But i think consumption and retail sales will be consistent with that growth. If they are having this conversation in 1217, with a talking about 5 growth. So you have this longterm glide path down. Mark bob corker stays with us. Coming up, inflation day in the u. K. Lower prices could see inflation drop below 0 today. We will discuss that, next. And emerging markets continue. The turkish lira hits a record low. End of back bailout. The german finance minister urges lawmakers to vote yes. Mark lets bring you up to speed with the bloombergs top stories. The shanghai composite is sinking 6. 2 at the close as traders speculate that the government will pare efforts to crop u prop up the equity marke. Shelled wants permission to fully drill in the arctic waters for the first time in three years. In 2012 afterlted a rig ran aground. They will revisit u. S. Roles about exploration in the region. In a letter to parliament, the german finance minister asked lawmakers to back greeces third bailout. He says it offered a sustainable rightor the country does a lack of commitment from the imf to participate. The German Parliament votes on the bill tomorrow. That is whatn we are likely to see here in the u. K. When we get the inflation figures at 9 30 this morning. Its a number that will be closely watched by the bank of England Governor Mark carney take a listen. Ultimately, our objective is not to get inflation to 0 . Views onlid in our inflation. Are stated objective is to bring inflation back to the 2 target. The bulk of the shortfall of inflation can be explained by the sharp fall in the prices of commodities and other imported goods since last year. As temporary period of below target inflation has provided a welcome boost to real incomes. The nearterm outlook for inflation is as i said and i wouldnt be surprised if we have another month or two of negative inflation, given the very substantial moves in oil prices, and the changes to some of the utility prices as well. We have seen big moves in oil and other commodities and changes to the utility prices. Mark for more on the data, lets bring in elliott. What should we expect from todays number . Elliott we arent expecting any change whatsoever three out of 25 economists are saying they expect anything under 0 . Most expect it to stay at zero. A couple of reasons mark carney outlined a couple. They are saying that oil prices are helping to reduce the inflation rate in the u. K. , particularly fuel prices for motorists. That said, its somewhat offset by clothing prices, but overall, things arent filtering through. Lets not forget that the pound is pretty strong against the euro. The uks biggest trading partner is also reducing the relative costs of imports, and all of that is keeping the inflationary environment pretty benign. Mark in terms of rate increases from the bank of england . Elliott mark carney has gone on the record that says if and when we see Interest Rates rise, they will be limited and gradual in their scope. To thealso referring last time since 1992 when that inflation target was first put down, 2 . He said relative to that rate it will be slow. There are some members of the Monetary Policy committee getting unnerved. We heard from christian forbes, in an interview with the telegraph, saying that if Interest Rates remain too low for too long they would risk undermining the recovery, especially if Interest Rates then need to be increased faster than the gradual path. Butugh for though, inflation is unlikely to change his overall of thoughts. Mark for more, lets bring in well. Bob harker, as simon, good morning. By the way, is there a risk that the bank of england is too late in beginning the Interest Rate tightening cycle . It is very difficult to make a strong case for raising rates when inflation is bouncing around zero, and Commodity Prices are weakening, when Oil Prices Continue to drop. On the other hand, if we monitor whats going in the Property Market, not just the residential market, and also the commercial sector. If you look at each of those areas, you are getting signals which suggest that those markets are perhaps beginning to run away. Not necessarily lose sight of fundamentals, that indication that this prolonged period of low Interest Rates is leading to significant movements in real estate prices. We know that the Housing Market but indications are strong, and when we look at the construction sector, the feeling we are getting ons shortages on shortages, there are shortages of materials. Its quite a lot for the bank to grapple with but it is against the background of zero inflation. Mark bob, economists say that the september, 2016 which side are you on . Bob i would argue that the bank of england will probably raise rates earlier than current market expectations. Yes, well know that there are two big constraints on them raising rates, the widespread perception, quite rightly, that the sterling is overvalued against the euro, and ideally a weaker pound would be positive. You keepd point, as discussing, is not just a falling oil prices, staying below 54 sometime, is also nonenergy Commodity Prices. You look caps off Commodity Prices, the impact on food inflation, corn prices have halved. Its not surprising that we have negative food prices, but having said that, christian forbess article is right, to highlight the Service Sector inflation picking up. I think your comments on whats happening in a low yield environment with money going into, probably aggressive money going into the real estate sector, i think there are grounds for raising rates cautiously and slowly. Go upk to my view that we a quarter of a percent at the end of the year, beginning of next year. Earlier than the market consensus. Having said that, by the end of 2016 google probably be at 1. 25 . Mark the London Housing shortage is mirroring whats happening nationwide. The shortfall is something we have been tracking its not a new story. We found instructions following from our members 11 of the last 12 months. We are well aware of the shortage but there is no secondhand stock coming through. It is leading to very much a rise in demand, and that is part of what we are seeing. Can the market withstand a modest rise in Interest Rates . I think it probably can, because so many people are looking in on fixedrate deals. However, we have been surprised by this prolonged period of low Interest Rates. I would go along with bob in terms of his deal, but we could be surprised. I think the market would become a bit we look at the substandard valuation metrics and we are a long way from historic norms. Mark bob, simon. Bob will stay with us for another section. Of the countries of bank meeting will decide on rights and emergingmarket currencies the lira is hitting a fresh record low. Details after the break. You can always follow me on twitter. Simon and bob are also on twitter. Find bob. I steer clear of it. Mark markbartontv. Why should simon and bob would be on twitter question mark that is my question of the day. The question will inflation stay around zero . Will the bank of england raise rates question mark would do you think . The only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Mark welcome back. We are 30 minutes into this tuesday trading day. Lets see how things are shaping up. Stocks are up today for a second day. The thumbsup to the third greek bailout. German finance minister has previously been a critic of the deal. , a macro day for u. K. Inflation. In chinaterest rates housing data, which of course have passed. Lets get some of bloombergs top stories. Chinese stocks telling the most in three weeks in todays session, the shanghai composite sinking 6. 2 . Traders are speculating that the government will pare back effor