collapse of the world's most indebted property developer has just entered a new stage. the embattled company has just filed for bankrupcy in the united states while its restructuring plans are being carried out elsewhere. meanwhile signs of trouble are spreading across china's broader property market with large housing units remaining unfinished and buyers who paid deposits skipping payments as a result. another major developer, country garden has warned it may not be able to make interest payments on bonds as it struggles to find the cash to finish projects around the country. stephen cochrane is the chief asia economist for economics research firm, moody's analytics. earlier he told me that to fix this problem china is facing in its property sector, it is going to take a long time. i think what it means is that it is going to be a kind of a long slow process in terms of resolving and restructuring this debt amongst the major property developers in china as they work this out both

through the us legal system and of course in china as well. i think what it means also is that amongst all of the various imbalances in the economy in china right now, the property sector might be the weight on the economy that lasts the longest simply because it is going to be such a slow slog in terms of restructuring of this debt. we have seen pictures of unfinished buildings, families and even sometimes having to squat in those buildings because they cannot afford to pay the rent and pay their mortgage on these properties. what can china do to try to boost this up? somehow the key to this issue right now is to complete unfinished projects because this will at least keep some of the financing flowing. as you mentioned, the many, many projects are presold and the households that buy

those properties they make mortgage payments even if they are not able to take delivery of the product but as construction has come to a halt, they stop making those and that means no income accruing to the property developer that helps them to continue the whole construction process and helps things grind to a halt. so there has to be a way to resolve this issue of a debt with the developers, find some way to get some liquidity in order to notjust start new projects but complete the project that have started and come to a halt. mortgage rates in the united states have hit their highest level in 21 years. on thursday the average interest rate on a fixed 30—year mortgage went up above 7%. a year ago that was around 5%. rising mortgage rates have seriously disrupted the us housing market and a mark a long—term shift in one

of the biggest underlying forces in the us economy. michelle fleury has the latest from new york. for the past year economists have been fretting about the end of the low rate economy in the united states and it is in housing, particularly the mortgage market, where interest rates most directly hit us homeowners which is to say many us consumers and voters. when mortgage rates rise sharply, now at an average of 7% and the highest since 2002, then the housing market tends to slow down. it's suddenly costs more to borrow and people who already have a mortgage on the older lower rates, they do not want to move and that is what is happening in the united states. nearly 20% fewer existing homes were sold injune than at the same time last year. mortgage lending companies are struggling and as a result they are laying off workers.

and it will likely weigh on economic growth more broadly as people take on fewer, smaller mortgages and do not feel they are wealthier things thanks to their homes rising in value. so far the overall us economy has withstood this shock. growth remains strong but a return to a higher rate economy may only just have started. in early september, south east asia leaders will gather for the asean summit, it comes at a time of rising tensions between china and the us. new developments in some southeast asian countries as a result. we are nowjoined by indonesia's vice foreign minister. thank you so much forjoining us on the programme. thank you for having me. what do you hope will be accomplished during

this? it is notjust a summit but we also have a business leaders gathering on the side? yes, thank you very much. first of all, what indonesia is really aspiring to do during the summit is really laying down the foundations for asean 2035 and one of the things we would like to achieve during the summit is really how we're going be able to establish that asean really matters and we are really the epicentre of growth, particularly within the indo—pacific region, and we would like to really emphasise within the asean and indo pacific region, to establish and implement our outlook with indo—pacific that really what matters is the collaboration within the regions. we would

like to really establish that we are inclusive and therefore would like to focus rather than on security issues, more on economic collaboration because we would like to see asean to become the epicentre of growth and establish some execution or developments, particularly focusing on four areas. one is actually about healthcare. we ascend the response for us to be able to make sure we are going to be able to provide in the next epidemic. to establish a supply change amongst the countries within the asean region for food. an countries within the asean region forfood. an payment, finance and digital ecosystem. we would like to be able to connect the payment system... i

just want to get to a few other questions. global lenders and leaders of pleasure $20 billion to help indonesia transfer away from fossil fuel. green energy is a big topic amongst leaders. however details have been put on hold by indonesia. can i ask why? on hold by indonesia. can i ask wh ? ~ ., ., “ on hold by indonesia. can i ask wh ? ~ ., ., ~ ., why? we do not think we are actually putting _ why? we do not think we are actually putting it _ why? we do not think we are actually putting it on - why? we do not think we are actually putting it on hold. i actually putting it on hold. what we would like to be able to really see is that it actually gets implemented very soon. 0ut actually gets implemented very soon. out of the $20 billion we would like to say this is already nine months of weight since actually signing the agreement. during the g20 meeting. the focus for indonesia is how we're going to be to get consensus amongst the ipg, the countries participating in the regenerative programme, to how

to allocate this very quickly. we seen there are many areas within the renewable energy that becomes the focus going forward. number one is how we're going to be able to develop and build a stronger transmission, particularly renewable energy, enabled transmission system in indonesia. the second is there are many areas even with empathy power generation that are quite ready to be investing in this area and third... and carbon avoidance is really part... sure. it is not enough to focus on new power generation but how we're going to be able to use a fault avoidance as well. leaders from india as well _ avoidance as well. leaders from india as well as _ avoidance as well. leaders from india as well as china _ avoidance as well. leaders from india as well as china have - india as well as china have agreed to come to this but it is unclear if us presidentjoe biden will be coming. if he

does not, how will that change the dynamics of the summit? we're still that the president joe biden is actually going to come to the summit. i think this is actually a very important summit for us to talk about the various issues. but in any case, we would like to continue to have a continued dialogue about how america is actually going to view the importance, the strategic importance, the strategic importance of aussie going forward, particularly for the economic collaboration within the region. —— asean and how we will be able to build a much stronger supply chain, particularly in areas such as automotive and critical minerals.— automotive and critical minerals. ., ~ , ., , automotive and critical minerals. ., ~ , . minerals. thank you very much forjoining _ minerals. thank you very much forjoining us— minerals. thank you very much forjoining us on _ minerals. thank you very much forjoining us on the _ forjoining us on the programme. i want to check the markets one more time before we go. we have seen wall street rather rocky and out decay

looks to be following. investors feeling skittish about whether the fed will or will not raise those interest rates. we will continue to follow the markets throughout the day on bbc. you can keep up with today's headlines by visiting our website or downloading our ad. thank you for watching. bbc news — bringing you different stories from across the uk. we all see the beauty of the natural world, but sometimes it takes a unique eye to appreciate its hidden potential. leaf cuttings and berries found at a nearby hedge, plus a vision and some determination, can create something truly wonderful. hello there, my name's winston plowes, i'm an environmental artist — or land artist. so, whereas another artist might use paint and a brush, i use natural materials.

in a nutshell, i pick something up and move it from one place to another. so today, i didn't know what i was going to make at all, but i picked up some of these. so these are from a chestnut tree — that's actually where we're under under now. but i was just looking at these and, the more closely i looked, i just thought that they were amazing colours. it's quite a simple design, but it'll take a little bit of application to make it look nice. winston's artworks can take anywhere from five minutes to five hours. and, although a simple gust of wind can destroy these masterpieces, it's the process and the impact that it has on passersby that makes this labour of love so worthwhile. i think the fact that it's ephemeral, that it's transient, that it's not a permanent thing — i think therein lies the beauty of it.

hey, i'm zoff with the catch up. tonight an update on the scotland deaths. a losening to drinking rules for world cup final and water voles. today was a big day for a lot of you in england, wales and northern ireland as it was a—level results day. students also receive other qualifications and these results will determine whether you go to uni, do an apprenticeship or a different training course. overall the different number of students receiving the top grades was 27%, down from over 36% last year. 79% gained a place at their first choice of university. we were there as you opened your results. doing really well. triple distinction stars. extremely proud of myself. i have done so good and i definitely have got into university. some of the stories now.

the family of two teenagers whose deaths are being treated as drug—related say they are devastated. scott allison and marcus doug became unwell after going to a club in glasgow on saturday. the venue says it is supporting police with their investigation. the teenagers say they did not know each other. in the body that represents pubs is asking the government to allow them to serve alcohol from 10am on sunday morning before the women's world cup final kicks off at 11 but it is unlikely as mps will need to return to westminster to change the rules temporarily. and time now for ten seconds of water voles. the lake district has reintroduced the endangered species as they've gone for a population of about 8 million toi million. you are all caught up.

hello and welcome to sportsday. i'm tulsen tollett. in or out? 0wen farrell thought he was reprieved from his red card, but world rugby have other ideas and launch a new appeal. after getting england to a world cup final, sarina wiegman is a manager in demand, but the football association say she's going nowhere. and swiatek survives a scare in cincinnati, as she battles back from a set down to reach the quarterfinals. hello there and welcome to the programme, lots to get through. but we start with rugby union and the ongoing but ever changing narrative of 0wen farrell's future. on saturday, he was shown a red card against wales for a dangerous high challenge and looked as though he'd be

missing the start of the world cup through suspension. on tuesday, a disciplinary panel then rescinded that and farrell was back to being involved, but now — two days later — world rugby has appealed against that decision. they feel farrell should be suspended. here's our rugby union reporter sara 0rchard. it does appear to be very confusing. the argument used to clear him was that the actions of the england hooker jamie george, in the tackle, caused him to change direction. now today, world rugby have announced of course that they'll be appealing this decision to overturn the red card. in a statement, they said they fully support the important role that an independent disciplinary process plays in upholding the integrity and the values of the sport, particularly regarding foul play and had contact. and, of course, they went on to say that player welfare is the sport's number one priority, hence why you're hearing from a lot of charities at the moment, including headway, about why this is so important.