buybackounced a share and say that it will continue. i will dig deeper with the chief executive in a few minutes. we will send it out to john. >> thank you. at the global seminars and the future of finance is the debate. i have some forecast for you. we will be talking to the incoming chief executive of the banking. we have some pretty big fines coming out. what does he think about it? over to you. >> merkel will travel to seek a solution to the crisis in the ukraine. sundayks ended late on without much progress. moderate progress was in the

line. we will be looking at what will come next to resolve the crisis >> the european markets are let's check in with manis at the touch screen >> we are off to the races and the nasdaq made a 14 year high yesterday. we will what other political issues there are in the world. we will get prices later on today. the building confidence is at a seven-month high and we will get the current account and some data in the united states of america. equity markets are open. let's go in to see what is driving the upside. it is going lower. this, let's go down into portugal. you are seeing that do a little

bit better. some big company names are in focus. we had results and we see it coming off. they say that they are looking for growth and have returned to profit. withare looking at targets the vestments -- divestments. they come out with the merger program and they are going to .tick with pillars they are de-merging. that is going to spin the stock off. we have it. it is on the tape overnight and they are saying that they are not convinced of the growth levels we are seeing.

the economic outlook remains uncertain. we have a little bit of a pickup and it is coming back off of initial highs. in terms of sterling, this will be moving higher. datall be waiting on the today to show a dip. they are saying that they like the sterling. is the most oversold since march. see andeed, we will dollar in the near term. >> a four-year profit forecast. a share buyback was announced this morning and joining us now isthe phone from copenhagen mr. anderson. thank you for joining us. >> my pleasure. good morning.

>> there is no abundance of good news. let's come with the guidance. you underline profit guidance and what is behind the increase of the guidance. are very good. we have seen some rate stability. and, we have seen some traffic. positive trends. we are enjoying the fruits of the upgraded profit forecast. >> investors will be enjoying the fruits because you are buying back shares. why now? am i right in saying that this could be the first ever buyback?

>> i do not think it is the first ever. it is the first formalized buyback in the reason we are doing this, even though we want and we growth company have strong investment plans for 40 next five years, we see our structure is a little too strong. we have the underlying ratio that is so good. >> you are generous with dividends. do investors need to worry that new buybacks mean dividends? looking.been ifthe policy is changed and

the underlying business justifies it, it will be a more stable component. done when we be have excess cash in relation to our and that is -- our investment plan. back to me more variable and the dividends remain unchanged. on the line division, the cost is down and the volume is up. the rates are stabilizing. when where the be -- when will there be a normal balance. -- balance? >> i do not think there will be. we are seeing over investment in thecity, in spite of industry in general being low in profitability.

we see over-investment of speculating and it will take some time. we have grown our volume ahead of capacity and it has been good for profitability. of course, we can afford to increase capacity to grow and i think that there are still in number of competitors who are being too aggressive. but you have this plan to forge a partnership with your competitors. that was scuttled by regulators. planning -- you are planning a partnership with a shipping company. can you tell us how that is progressing? can you give us an update? >> we need a regulatory approval. something completely different

from the alliances. we need approval in the u.s. and we are seeing problems because they approved a bigger corporation. we do not need approval in europe or in china. corporationrmal and you canhed start up and just do it. it is just the u.s.. today or tomorrow. there are practical issues. we have sharing agreements with other partners. longevity of those needs to be proved. there should be no problems and it. thehe partnership still has

far east europe route. that and iter than should not pose an issue. >> talk to me about another division. you did and write down of oil assets in the second quarter because the prospects were smaller than expected. are you making up for that elsewhere with more investments? or, not? >> we have reassessed the ofiness after some years anding suggests -- success this is an issue where we invested and now have to write it down. we are pursuing growth in the business and it is growing. not write down something

in brazil. i want to underline the fact that we have good prospects and we expect them to come out eventually. there is no change of plants or anything others would suggest. down and itten it is a part of the cost. >> i want to talk about russia and the ukraine. what is your exposure? pressure is to or 3% -- 2% or andf our global turnover the exposure is not huge. we do have investments there with partners in a number of container terminals. we think a company of our size geopolitical issues in

countries and we do not view the situation from a company point effect.as a dramatic andre citizens of the world europeans hope that this will be resolved quickly and cooperation between europe and russia can come back in a normal situation and improve. >> you are not worried about a sanctions wall that starts between russia and the u.s.. thatre not concerned about impact and the spillover affect. .t could spill over globally >> yes. it is one thing is sin.

if we -- as a citizen. if we see more imports, it will have to come elsewhere and that means more shipping. activity,s less port there will be more in the east. as a business, we do not see this as a threat. nobody wants the situation to escalate. >> the final question is on a emerging markets, in general. it is a massive driver for shipping and you are a bellwether. you are the world's to get shipping company. paint a picture of macro economic activity in the emerging markets. >> well, definitely, the emerging market growth has been less than expected in the first half and the biggest driver of paradoxs a bit of a

because of asia to europe. economic views is the first half of this year has then. the u.s. to pick up in the second half. at the moment, you cannot generalize. it is somewhat subdued. >> great to chat with you. we are speaking live from copenhagen. take over.pares to

discuss the future of finance. what is on the agenda? we are talking about the future of banking. working.t europe you have to talk about the financial services industry. the u.k. faces a lot more regulations. that is a lot of uncertainty for a lot of people operating in london. if you are operating in london , we put the to calm question to the deputy governor of the bank of england yesterday. this is what he had to say. is a target.

you have to make sure the center is honest. that the infrastructure works. people find the environment conducive and they would choose to be there. the city of london faces a lot of uncertainty. this is a financial issue and a political question. it will be some and that is difficult to manage. >> we have seen some pretty big u.s. fines. i know you are speaking to hsbc about that. >> regulatory overreach is an issue that everybody has been to say about. you have regulations coming from here, there, and everywhere. how much time are they spending?

they will have to address something. >> they have a lot to say about that. banks are overwhelmed and distracted. they spent too much time on risk and compliance. for the restt mean of the business? we'll talk about that. let's john, see you later. stay tuned. we will be back. do not miss that. let's stay with the banks. -- says i was looking at your funds. hello. i think you hold hsbc. regulation is a theme. how do you look beyond it? >> we -- you have to take it into consideration when you are

looking at the valuations and preparing for an industry or company. we have to assume it is going to go away in a hurry. banks more than others. >> is a global thing. for us, you are looking at europe. the banks look a lot more interesting than they have because the risk is christ in to the shares and you have a decent clawback over the last months. the valuations are looking attractive. the quality review. that is on the horizon.

that should begin to improve. we are looking at a potential for growth going forward. >> you have overcome the link. it was remarkably well. >> it is not broken and it is close. we talk about have to -- having to deal with these situations. so, it is not such a shock

impact. we have to look. >> do you like the internet of things? you have timing to talk about this. the nasdaq is rising to a high. if you are a study of history or the charts, what is to give us a peek of the record high? it does not presage what .appened the nasdaq peak what is different this time? >> it is much more attractive this time and you go back to the text up -- tech bubble. are looking at the valuation of the tech sector. it is better balance sheets. is a different situation.

there is a valuation of the market and growth and rest. when i was a young manager, someone said that an all-time peak does not mean anything. things tend to go up over time in equity markets. that itit surprise you has taken 14 years to get back to where we were in 2000? >> when you have a time like crash, there are behavioral issues associated with that. there is a crash. >> we get the priceline.

is an absent show. ia.absent they are looking to see how they can become labeled and enabled from a hybrid start. i think that is an interesting area and it is less obvious. >> you have reduced risk positions. good timing. >> yes. >> yes. we have been pro-risk for the last few years and as we came to the end of the half year, it looked like the market had done what we thought it was going to do for the year and we took a bit off. now, because of things in europe, we have a nice step back and the markets are concerned.

you have outflows and you can see all of that in stocks that underperform. they are index sales and that is a nice rebound. it looks more interesting this time. >> you see the dealing news out of ukraine. ofseems to be a determinant the movement of the stock market. do you look through the fault of geopolitics? >> yes. to a point. the ukraine was a minor issue and i think that is still the case. are on the margin and they are always negative. however, it is relatively exposure.d there is

they need to do something about that. overall, not a huge issue for the markets. >> great to talk to you. we had to the break and there is big news. have a look at the share price. news came out. the news crosses the bloomberg television -- terminal and we will tell you all about it next. stay with on the move today.

>> here are some companies on the move. paul pleaded guilty to a conspiracy count. profits surged in the first half and the home builders said that private reservations have risen in july. they plan on opening new development sites during the second half of the year. first half profits beat estimates. they have added momentum to the expansion. we will head back for an

exclusive interview with the european banking federation incoming chief. stay with us. we are on the move and stock markets are rising. we are 26 minutes into the tuesday session.

>> welcome back. we are 30 minutes into the trading day. here is a picture for the market. easingtical tensions are and that is reflected in the stock market performance. let'soxx 600 is up and dig a little deeper with caroline hyde at the touchscreen . three stocks to watch. leaderill start with the . the owner of a big containing liar. they are buoyant about the developments and overall, they

see volumes are up and shares are having their best day. quarter results are impressing the market. .5%.er winner is up about they are doing better this morning. there is worry about the housing crisis and we saw prices falling in london for the month of august. since july, persimmons says that they are seeing good numbers since july. they underlie the pretax profit. they say they are making a move with demand in the market for the u.k. housing. on the downside, you will explore this. 10% jump in underlying profit and they continue with the plan. company ism smelter

all about the bhp. they are off by 3%. >> thank you. these are the top headlines today. the german chancellor could visit the ukraine for talks with the government. declined toor update after the report that the visits would happen this weekend. she ruled out more combat troops to offset the russians. barack obama says that the u.s. will continue limited airstrikes in iraq. kurdish forces are battling militants for control of a key dam and the u.s. is working to pull together an international coalition to support humanitarian relief in iraq. close to a deal to pay $300 billion to resolve claims by the new york banking regulator that

they did have suspicious transactions and promised to flag them. the settlement could calm as soon as this week. let's stay in the financial sector. the banking federation of appointed a new chief executive and jonathan is standing by with the man who is taking on the role for an exclusive interview and john, it is all yours. >> thank you very much. -- ducks are quacking. a lot to talk about here. let's start with regulatory overreach. -- fines finds coming that seem to be plucked from thin air and what would you i to

e?e -- like to sewe >> a lot of regulation has been done on both sides of the prosecution is important. we need to see eye to eye. it is important for legal certainty that there is an idea of what is wrong and what the penalty would be. >> what would you like to see? said,al certainty, as i the rules are clear and it is clear that you get prosecuted. it is important that you know what to expect as a firm. if you want to take the comparison with competition in europe, it is mostly clear what penalties you will get and it would be good if they talked about the size of the atlantic finding each other on that. >> banks here in europe and the eurozone face stress tests and regulations. they are raising capital aggressively and lending more.

can we really expect them to do both? >> i would say that they are busy and it is an understatement. we have been working at rebuilding the regulatory framework and we have seen a supervisory mechanism that is great and we understand that stress testing is important. it also means that you have to spend a lot of compliance and risk management. there are vast a man's on that and we know it is coming all stop it is important that the european commission focuses on growth and the single market where the credit is coming from. credits talk about provisions. there is a lot of fragmentation and you only have to look at statistics and the financially constrained. what can we do about that?

is a supervisory mechanism ever going to get us through? >> no. it will not. a regulatory instrument. what will help is a single allet and i am sorry to see countries going national again with their economy. they should revive the single market for financial services and the capital union that was talked about. they should get a plan like the financial service actions plan and get on with that. maybe it will work. >> what is the time horizon question mark can we expect that ? is it decades away? they look at the plan and had 43 measures that took five years. if you have a regulatory environment in place, banks start doing business and we should start concentrating on that. >> the other issue is credit provision and you look at

provisions coming from capital markets. you have to compare and contrast what happens in the eurozone to the u.s.. to be broken? will we have to deal with banks being a primary lender for a lot of companies? >> an interesting question. it is a subject of the seminar and it is important. it has to do with it being so easy to get credit from banks in europe. no culture has been developed. this and it has to work. we have seen initiatives for this. we have other instruments and we have to go through that. will it take a long time, yes. it is a culture of the bank to do that rather than -- >> a final question.

refinancing operation. they plan on buying asset act security. are those initiatives that are going to get banks lending? is an initiative. you are getting into a new regulatory world and they will revive the eurozone. we need to get on with the banks and they need to regain trust. you need to regain alternatives. it will lead to a different environment in a few years. >> thank you for joining us today. that was the incoming chief executive of the european banking federation with some big questions here. you think about it and talk about fragmentation of across the eurozone in the banking system. to be a panacea by any means. there are big challenges ahead.

leave you with that. >> we will see you later. we have more a little later. let's get onto a big loser. the big story is that they plan to create an independent global metal and mining company. is a plan. here is more. react --t reaction is is interesting. are further down. that is largely due to the fact has not capital return done that. a lot of investors are very upset about that. >> we are disappointed about the buyback back to the analyst reaction to the news of the

spinoff. >> it is a bit early for that and we only have just gotten the details. over is a strong narrative the last 18 months and the investors want capital back. and theyred that today think that they can create a bit of value. they are not performing so well. manganese, nickel, and silver. put they have out low-quality assets in this. >> what is the rationale? they believe that the market has been valuing this. they put a new management team in place for this new company. is very experienced and

they are going to vote on it. there may be some concern. not be listed here. >> is his hangover from the 600 or so billion dollars worth of takeovers that took place over a decade. >> these companies are starting to streamline and really focus on the quality assets that they have. >> good. thanks. let's get on to another company that posted earnings today. andposted first-half sales they were in line with estimates. the company says that economic indicators continue to be positive and we spoke to the chief executive in an exclusive interview. >> the largest building material in the united states is important to concentrate and

maximize opportunities. we have seen the momentum continue through the season and it is a broad spectrum in the u.s.. it is good to see. >> they say they expect performance in the second half of the year to be in line with the estimates. it raises concerns about unrest in the ukraine. ok. 842 --e in london is 8:42. stay with us.

>> hello. good morning. john is at the finance form and talking about the future and the role of the banking sector. we have interesting conversations coming up and we will talk about what we want banks to look like. how distracted do we want them to be by were the conversations about regulation? how much time should they be doing regulation and ranking? we have guests. bank ands next is the the banking models will be discussed. douglas will be with us. we have great conversations as we look ahead to the stress test and regulatory issues with banking. >> you are drilling into hazelnuts and cocoa.

you can use a j-roll on a hazelnut because it would be a little heavy-handed. excuse to talk about chocolate. i don't know how much of a fan of hazelnut you are? close lovesvery hazelnut. >> we have seen increasing demands for chocolate and little luxuries. we have seen a 13 month high. hazelnuts areld in turkey. they have had bad weather there. there is not too much of a mention. and we will use that.

>> i like something and i want to go home. it is a caribbean son. what was it? >> i do not remember. >> clearly too young. i like some things. >> you are on your own with that one. >> some company news. the biggest gain in six years in trading. that is as asia says they are considering taking a stake in the airline. air asia is in talks with financial institutions on ways to help. the ceo says the company has no interest in the carrier. bids for health care services. partners may submit initial

offers for the company earlier next month. and, a major global outage theyd for about five hours are part of a plan to remake the software company. -- here from the lies aheadbout what for the new team.

guys who arefew competing in majors all the time. guy.e to see that that is the role i am trying to play right now. i think there is only going to be one tiger woods. that is for sure. i am trying to develop into my own role and i am happy. that was rory mcilroy.

let's stay with sports. onve ballmer has his sights an nba championship and he says that his basketball team will not be stuck in the past. the previous owner made racial comments. we sat down with steve ballmer. uniqueangeles is a market and a phenomenal opportunity. when you look at companies with no earnings and huge uh and, there is a lot of downside and the clippers look well valued to me. really well valued. that are market caps down do not make any money. i am retired. looking for a full-time

job. we will strengthen up the business side. >> we see the leadership in place. how would you grade what they are doing right now. >> they are off to a fantastic start. our people like to pretend that there is a short-term game. it is a long-term game. months,es get built and not years. we have seen a lot of work. it has been a good six months. the truth is that it will take years before we really know how well it is doing. >> 18,000 people were laid off. >> that was a decision driven by management. offhe decision to lay 18,000? >> we knew that there were redundancies and things that needed to be done. we went in and decided what that

looked like and use the opportunity to make some other changes that he felt would streamline and make microsoft better. obviously, we are supportive and we put him in the job to run the company. my actions speak for themselves and i did what i did, loving everything. he gets to develop his vision and articulated in his time. has our support and if he will not speak on that, he can. i think there are fundamental things they have to do for their future to put that under the umbrella of a cloud. doing that requires new skills and technology. hardware sales and hardware technology. describe how to get there. >> where will you set during the

games. are you going to be courtside? >> definitely. i do not know what seats are available. they have bought a lot of tickets. the number one thing we were joking around about was the coaches and players and where they like to set. i thought i would like to sit under the basket. basketlen sits under the and i was thought that was weird. coaches thought that was weird. they think that sitting in the middle the court makes more sense. we will figure that out. >> a good problem to have. >> i'm looking for to seeing you on the sidelines. >> i am enthusiastic. when i come, i am a fan. >> let's go to the markets. stocks are higher. geopolitical tensions are lessening today. stocks are up across the board. will it last? it seems to be a process when it comes to assessing the ukraine.

caroline is here to talk to us about stocks on the move. checked, theime i capitalization is not too bad. the bellwether of trade seems to be sounding buoyant. you look at the chief executive and emerging markets are not where it is at right now. markets that developing will continue, despite concerns about geopolitical risk. you have to put it into perspective. they have had a lot of rest -- risk. and this is something that they have to navigate. >> it is something they always have to deal with. there is geopolitical tension everywhere. the formalized by back. >> yes. it is up. that is getting up and the best performance of the stock in a year.

what concern was there? >> thanks.

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>> a bloomberg exclusive. we're live with the biggest names in banking including hsbc's chairman. a bounty on the high seas. shares rise the most in a year. you'll hear from the c.e.o. split. ng's welcome, everybody. you're watching "the pulse" live from bloomberg's european headquarters in london.