petro china up 3% and china resources up 5%.he fact that it is doing so well in the shanghai composite is important because it is considered a target. we are seeing some growth there and we might see a turnaround for the rest of the afternoon. china down about 2%. as you mentioned the shanghai composite has come off the earlier lows and is now down by 3.5%. still the biggest two-day drop we have seen since late june so still a racing that recovery. we are still seeing some weakness. yesterday's gains, pretty flat. we are seeing mining stocks there. let's have a look at some of the major movers that we are watching in china and japan. you mentioned china east fell by 10% in shanghai. they're currently down by 7.5%. paring back a little. that is the petro china share up .7%. looking at the emerging market stocks, richard is with me now, where did all begin? yesterday's move was quite staggering. because of the amount of intervention the government has taken whether it is selling -- banning selling by major shareholders, etc.. what

petro china, agricultural bank of china. all gaining around 10%.he recovery is probably accounted for most of the move on the shanghai composite. what is happening now is again, this reputational risk is emerging. what will and what's can the government due to stem we are seeing? jonathan: richard, as i go to the bloomberg.com story the 1929 playbook and the chart of the shanghai composite versus the dax we know what happened when they put together funds to buy stocks. it carried on plunging moving south. what else can the government do? the question we explored last week is if they lost control. does it look like they are losing or lost control? richard: well -- how in control were they in the first place. the big issue of why the measures are not working is the fast amount of margin debt in this market. weeks and months, people have been telling us when people stop , it will be ugly. it has played out as people have predicted. half of this margin debt, people are talking about 2 trillion yuan is unregulated. the regulator does not have control. a

petro china down by 9%. if we go back to the asian picture, as we can expect these equities have played out across the region. down 3% on the close. the nikkei down 3%. the topic index in japan was down 3.3%. it's just drop in 17 months. -- its biggest drop in 17 months. we are matching off. in china on the shanghai comp is it -- on the shanghai composite. -- that is going to be a significant drop for hong kong. jonathan: thank you very much. some fascinating news. to $.6 trillion worth of stock wrapped up -- 2.6 $2.6 trillion worth of stock wrapped up. -- the bank needs a change of leadership. john mcfarlane will take over as executive chairman while barclays finds a permanent replacement. mark barton has the early headlines on this story. mark: mr. jenkins will be leaving barclays. this is the price and barclays shares. 2.7% already. that is the biggest move since may 2015. investors reacting to the announcement. just a few months after john mcfarlane took over as executive chairman. fascinating to see wha

if you look at april, if you bought and sold petro china every day, you would have made about 43% as o just 1% if you bought and held. there is a catch. china's markets, you can't buy and sell in the same day. what you can buy is futures contracts. better than ifch you did it and just held. rishaad: some analysts predicting that equities, the h shares, they are going to rise in the next 12 months. is that credible? they have been wrong so many times. what turned out when we looked into it is that analysts have remained very bullish on the a share markets. we've actually had the h share index as the world's biggest decline or in the past 12 months. that has widened this gap. among global markets, the average is around 11%. whether this is credible, we know that the market is very cheap, but the big concern is that government intervention is going to prevent these reforms to overhaul the economy, so that is something that is going to hold back. rishaad: thank you very much indeed, richard frost. going to just check in with some of the other stories we are following. casino operators plu

petro china, bank of china.being targeted by the stabilization funds. so there are some movements up. that is very much the case. the momentum is still going down. the reason why? basically that market soared up 150% from its lows last year up until june 12th. and then things started to wobble. no doubt there was a bubble. and it became a self-fulfilling prophecy. the government did a couple of things which didn't support the market initially. that got the ball rolling. now we're seeing a government coming back the other way, trying to support the market, zain. >> so the chinese government making moves to try to prop up the market. but we've seen a lot of volatility there. thank you so much. >>> millions of investor erors are losing thousands of dollars in the slide. nanny are many are learning a classic lesson. >> but one remains optimistic. >> reporter: school's out for the summer. but instead of heading to the pool or beach, this 17 year old hits a coffee shop where he gets to work immediately on the day's st

top performers, petro china as well as china mobile. majors, they're positive 80% of the time with average returns of nearly 5%. china mobile with average returns of nearly 3%. the fxi is also a good rebound, scott. on average it returns more than 4% after the week after the shanghai composite drops. chinese adrs have become more tightly coordinated with asia. this is since the shanghai composite peaked in june. the adrs could have more room to fall but you're seeing a lot more caution from investors outside of china. but the effectiveness of government measures, it's anyone's guess how far the shanghai composite will continue to fall or rebound. >> pete, you touch the fxi here? >> you know, i liked it but i hadn't jumped in yet. the one area that is actually china related was casino stocks. we had buyers coming in to win, coming in to las vegas sands. the move in the last week and a half or so has been extraordinary. >> i'm glad you brought that up. it's perfect timing. bertha coombs sends around some of these days. these are intra day

petro china was doing incredibly well earlier in the session after a very strong rally yesterday whicht the overall shanghai composite to that 2.4% gain. china railway doing well, up by 10%. it is [inaudible] and a lot of the smaller cap stocks have been halted from trade to try to stem this route. caroline: thank you. we have looking like a slightly better day. 0.3% rise on the euro stocks as indicated why the futures market. that could be up zero point 4% in germany. -- 0.4%. ryan: money going into bonds across the board, yields coming down on the back of that just a little bit. not as apocalyptic on day two of the drama as we might have thought. caroline: the ecb will continue on its quantitative easing. let's talk u.k.. we got some statements, marks & spencer's and asos. give us a sense of what is happening in marks & spencer. theiir clothing not as -- doing as well as had been hoped. guest: it has been so cool in may and june. the brighter sparks for them are their online business. both those, 38 percent. people were still buying and the food business which remained up little bit

a drop -- the shanghai composite rose but only because of gains in big state of companies like petro chinament suspended ipos and increased central bank support. and boosted stock purchases. the shanghai composite has fallen 27% in less than a month. john kerry is tempering the optimism in the iran nuclear talks. kerry says negotiators in vienna are not where they should be. talks have gone on for 989 straight days. the u.s. says it will agree to a deal only. -- if it stopped iran's ability to make nuclear weapons. aetna agreed to pay $35 million for humana. anthem's proposed takeover of cigna could be next. cigna rejected a bid last month. both companies said to be interested in humana. the u.s. is the first three-time winner of the women's world cup. the u.s. raised to a 4-0 lead in the first 16 minutes with three goals by carli loloyd. avenging the loss to japan four years ago. brendan: goalie out of position. from the midway line -- unbelievable. from 50 yards out, unbelievable. vonnie: a phenomenal world cup. brendan: they have improved. they said they needed to improve after the grou

petro china is one of those down by 2.7% currently.tainly we are seeing a lot of fear driven selling coming through in the asian region, really contributing to the $3.2 trillion equity rout. caroline: 80% of the chinese stock markets are backed by retail by individual investors. retail sales falling in china for the first time in over two years in june. clearly this is had an impact on individual investors. ryan: it indicates contagion. it's important to all the western carmakers to watch that. let's dig a little deeper into china and also greece and united kingdom. rejoined by men who spent more than five years on the monetary policy committee. andrew is going to spend the next 45 minutes with us today ahead of the budget. we have to start with china. i guess the first question is how much does it really matter here in the u k what is the threat of contagion? andrew: the thing we need to watch in the u.k. is what is happening in the real chinese economy, to chinese consumers and businesses. and the growth of the chinese economy. we kn

petro china and a bank. that's what you need to know. down by 27%. that's where the index peaked on the 12th of june. the chinese stock market and that time has plummeted by $2 trillion. a bigger amount that many stock markets are valued at. want to show you the hong kong market. it intraday bear market today. down by 11% from its peak on 11 -- april 28. today it is sell the biggest drop in the reagan years. we are followed by 11%. there is speculation the chinese investors were moving money out. a much more open market and the mainland stock market. back in april, at it is highest since 2007. how things have changed in china and things are changing in hong kong. manus: thank you for that. straight to the chief asian economics correspondent. they are common goal within new positions pretty much every day all of the week. reporter: good morning. what the latest moves are doing is raising questions about how committed to market reforms chinese policymakers are. they said that they are pledged to the open market and breaking down barriers and allow capi

there are high companies, they got to petro china it's interesting. be cool. i thought dennis gartman was right, we just kind of want to be cool. wow the destruction in china is going to be much bigger. >> we had all these guys on early. i don't buy it. >> let's say that's true. why is everything going down? >> uh-huh. >> sometimes you just say, you guys sure you are right. but that doesn't mean we shouldn't sell this stuff anyway. i think that there are many banks levered to the market. i think the communist party let the market come down a little. i think it wants to take the they're out of the market. take a look at the charts you guys are showing. you have to go back to where this started. a lot of people came at the absolute top in june. >> all these people. it's just 2,000 over there at nasdaq. but there is no s&p. which is why we are kind of let it come down. let the minerals come down. let oil go to port. let it happen. they're looking at you. >> okay. we will do that and look at new just a bit in a couple minutes. much more straight ahead. you

tom: china plus stock markets reverse. petro trying -- petrochina kleins almost 10%.sale? commodities weaker as well this morning. this week, will oil find in bid? and the iran deal will not stop the spread of nuclear weapons. richard haass on the council of foreign relations. this is "bloomberg surveillance ," live from our world headquarters in new york. it is a busy monday, july 27. i'm tom keene with vonnie quinn and brendan greeley. brendan, what are you focused on this morning? brendan: here is what is significant. the shanghai composite has dropped more than that china's index. the industrials are suffering more right now than the smaller companies that were suffering in the drop for. tom: many of them down as much as 10% this morning. we will go to jon ferro in asia and moments. here's vonnie quinn. vonnie: we begin with china. the benchmark shanghai composite

china caught on camera. whoa. a mushroom cloud of fire shooting into the sky as a petro plant explodes.o that country's survival. they don't seem happy. protestors hurling molotov cocktails at police. tear gas dispersed eventually in athens, greece. >>> this morning, a fox news alert. while you were sleeping a dozen pilots nearly blinded by lasers. >> we are live with robert with details. what can you tell us this morning? >> reporter: this morning, it's quite windy. last night the situation was far more dangerous this. problem is worse than we were told this morning. we were originally told five planes were affected. now according to faa, 11 commercial flights reported lasers shined at them while over new jersey last night between 9:00 and 10:30. fortunately month injuries reported. those all landed safely. let's not diminish what happened. lasers being shined into cockpits can be incredibly disorienting for pilots trying to perform important maneuvers like landing here at the airport. as of now, the faa has not determined the source of that laser, but the agency is now investigating.