anna: brazilian retreats. this as the bank beats estimates with a 10% increase in profits. asian stocks slump. a five-month low suggests slow down in the world's second-biggest economy. and back in business. greece stock exchange is set to reopen. with strict trading rules in place, activity will be anything but normal. welcome to the program.

a good monday morning to you. you're watching "countdown." i'm anna edwards. coming to you from london. we're getting numbers from heineken. manus cranny, good morning. manus: heineken revenue comes in . first half revenue was estimated to be hundred 7 million. of course think africa, middle east asia. 25% of the revenue comes from -- let's get you more net numbers. a dividend of $.44. you are seeing a bid on the numbers there.

in terms of breaking it down, it is taking a little bit of time to get that you are free -- geography broken down here. these are solid results. it demonstrates further progress. it is very much ranking on the emerging markets. the pressure for heineken is the price of oil. it is impacting demand levels in nigeria. you also have issues about trying to get control in the emerging markets. 1.5 billion. anna: we will be speaking later

on. what are the challenges you need to be asking? we have gone through some of the headlines. manus: a couple of different things. the value of the euro has dropped. allow them to grab more market share. how do you close that cap? that is the critical issue. will they use the euro currency moving forward? they are making big bets on india. also it is active in those two markets. they will build their market

share. anna: thanks very much. all of that to come. it will be the first interview of that day. manus and i will be having that authorization. europe's biggest bank reported first-half profits of some 10%. numbers have been coming in better than estimated. they will be selling the resilient unit to $5.2 billion. some of the things they say about china for a business that has been -- it about the more accommodating should help them. also positive things to say about the u.s. you talk about growth in the

u.s. that is actually a on the revenue growth. some of that is on the downside. it is leaning in the right direction. those are some of the drivers on the pretax sale. there got in the analyst perspective on this. let's look at what the share prices have been doing as of late. it is down by 5.8 reset. the hong kong finance sector, many have this stock on hold. 16 analyst with this on hold. look at london.

this is a ceo trying to shore up profits. we have seen an increase in misconduct costs. back in june, there was a turnaround plan. a three-year plan. we will continue to talk about taking a little bit later on. manus: breaking news involving nokia. nokia says they will do a strategic review. it looks like a deal has been done. three major auto brands out there. nokia will book a gain in that

business. the price tag for selling the maps business -- anna: we will see if the has an impact on the nokia share price. thanks. let's talk about what is happening in the asian air -- asian equities. let's get more now. good to see you. what can you tell us? >> good morning to you. i'm afraid i have bad news. it is a fairly risk-averse session. it is just at the threshold. that was the official number.

it is a private survey. a more dire situation. i came in 47.8. you take these data points. i'm not going to mention this in detail. it painted a fairly consistent picture. there is emi data that came out of japan and indonesia and india. things are falling or improving. that is the case right now for us. the shanghai composite is just out of the gate here. that is more or less the low point of the day. it is pushing 1% lower. the commodity story is still intact.

you can see it under heavy pressure. there are cyclical parts. that is all of the things that are shaping up now. we're coming up three days. wednesday, thursday, and friday. it is really no good news for trade this year. the fx market, nothing specific that mary's much attention. it is near a six-year low. that is another one you want to watch. 1998. let me leave it there for now. anna: david inglis over there in

hong kong. breaking news. we have got numbers coming through. there talking about their aim for the full year. 1.0 7 billion. 385 million. there are operating expenses. they're aiming to grow the revenue and their market shares. to give you some context, the net income is coming into the second quarter at 280 million euros. looks to be a touch ahead of estimates. we were expecting to see a big drop. in the first quarter, they managed to get a large capital

gain. being aware of that. we've had these numbers talking about seeing provisions in part of their business. it sounds like good news. will be talking to the cfo. you will join the programming later this year. sticking with the banking seen, the big asset sale. we started to return to trading in hong kong to pick up but we are seeing in the hong kong listing. up around 1% in that trading day. a positive move in reaction to that earnings report.

it is coming uncharacteristically early. david always used to announce them. let's talk about greece. the offense stock exchange opened after a five-week hiatus. greece acted to preserve its -- hans nichols is standing by with more. good morning to you. talk about the exchange behind eu. hans -- behind you. hans: the restrictions are numerous, but they only apply to domestic buyers. that tells you a little bit about the goals they want to achieve. they want prevent outflow of capital from greece outside of

this country. capital controls are still in effect here. other restrictions are pretty a sick. you will need to come up with new money. rush money from outside the country or something that can prove was indeed new. none of these apply to international sellers as long as they are coming in with fresh money as well. what is going to happen to the stock exchange? how much will it collapsed? those are 25 trading days. it is linked to this market. the fact of the matter is, no one really knows. we'll have to wait to see what happens when trading starts here. i believe it is about two and half hours time. it isn't about to a half hours

time. anna: it is still very early. what did they have to say about these restrictions? hans: they are very concerned about what it means for liquidity. we will be speaking with one of their former members here later on today. they are quite vertical. it clearly favor sales rather than the reduces of financial instruments. when will they help trading? if it was down more than 10% in five minutes, that is when they

would go ahead and trigger things. that would be the explanation. now the rule is 7% and 10 minutes. they are making it much easier to go ahead and hold the trading of stock. no one knows on this exchange. anna: interesting times. thank you. we'll be speaking with the ceo of the athens stock in strange later in the -- stock exchange later in the program. the princess nicely to our question of the day -- would you buy greek stocks right now? tweet me. that is my handle on twitter. that is where you will find me. it softly opens up this morning. would you buy greek stocks?

15 minutes past 6:00 in london. there are a few things we will need to keep an eye on. we'll hear from the bank of england. we've also get the inflation report. could we see the end of an era of record low rates? we take attention to the u.s. where we get jobs data. it stays at a seven-year low. we'll get more and the jobs picture. but first, crisis as european leaders step up their response to the situation. we take a look inside where michael economy is emerging. that is after the break. ♪

anna: welcome back. you're watching "countdown." here at the stories you need to know. china stocks have the biggest monthly loss in six years. a drop in manufacturing has been writing concerns -- reigniting concerns. a factory index came in and 47.8. the athens a stock exchange is set to reopen today after a five-week shutdown. the country acted to preserve its financial system. it went 85% of the market value.

hsbc with a rise in profits. the bank agreed to sell its brazilian unit for about $5 billion. earnings from hs and focusbc -- hsbc in focus. let's big to julia who joins us on set. good morning. let's talk about the assets. within $5 billion being raised. why? julia: they had to look at what they are good at. they wanted to focus on asia. a lot are trying to expand in latin america. brazil is hot to invest in paid

the macroeconomic environment has changed there. where could i make money? i think that is what they were thinking. i think that is important. there may be more to come. anna: they are seeing some positive announcement. hsbc is cutting costs. we're this from a lot of thanks don't we? -- from banks -- we hear a lot of this from banks, don't we? julia: there are quite granular in details. they have been were detailed the deutsche bank. they still have a lot of confidence in them.

they have unveiled deep costs. they also showed further drop -- don't cuts. -- ducats -- job cuts. anna: focusing on what they do best. i noticed they sent -- said they complete the review by year's and. they're changing the release time from the usual date to just 5:00 this morning. the fx broker, what does that mean? julia: it has been huge, monumental. there are not a lot of detail.

there also expanding rid of their are authorities across the globe. they don't know what will come and neither do we. anna: a lot of uncertainty does. liaoning -- just outlining their three-year plan. this is going to continue. julia: when you look at the global market, their fx division did well. they're able to take advantage of that equity rebound. the markets are doing very well. it is quite a significant amount. they don't necessarily need that much. anna: thanks very much.

there are makeshift shelters for migrant camps. shops, restaurants come in a nightclub have brought up. a very precarious business. british and french leaders are calling on your to do more. they want europe as a whole did do -- take care of this problem. tom: that's right. this is in my grayson crisis. all of your needs to tackle it. they point to the fact that many migrants got off in greece and the italy. they want those countries to remotely role. the want to tackle the cause of the problem. get to the point that the

roadster france and the u.k. is paved with gold, as they say. this request they want to tackle will take a lot of time money come and diplomacy. there is no short-term fix. anna: what are the new measures that are being put in place? greece is something of a distraction. tom: absolutely. there are security fences you'd there is an infrared system. those of the practical steps being taken. uk's looking to see if they could assist. anna: thank you very much. 26 minutes past 6 a.m. another round of does a running

data causes concerns over the chinese growth story. we will take a closer look at that growth driver with our guest after the short break. ♪

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perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. anna: welcome back. you're watching "countdown." half past 7 a.m. if you are watching in brussels. nokia is selling its unit for billions of euros. the unit supplies metadata data to about 80% of cars within das navigatingh systems. an evaluation of approximately $80 million. these startups are benefiting

from investors who viewed the technology as the future of transport. china stocks are heading toads lowell -- lowest level. there are reunited concerns. it was 50 in july compared to 50.1. it was less than forecasted. let's get more and the latest setback for china. good morning. good to see you. it is still volatile. what is the out look after this pmi reading? >> as you mentioned, the numbers are not looking good. today's number was a two-year low.

also, we have had data recent lee showing that car sales are down. we had traded this weekend. those numbers may not be looking good. looks like they may struggle to reach its target. we need a little more time. the signals are not looking good for the chinese economy. anna: all kind of activity undertaken so far as far as rules around stop trading. it is a look in terms of their ability to boost the economy? >> at this point what they have made clear is they will do what is necessary to intervene. the government would take preemptive measures. another looking at specific measures. they mentioned upgrading some utilities, specifically underground types.

you talk about boosting the tourism industry. it looks like small steps. we expect they will bring out the bigger guns which might include an interest rate cut end of the bank reserve for hire minutes. anna: we will see what happens. the smaller outback cost chilean city is enjoying its annual invasion of mining executives -- australian city is enjoying its and invasion of mining executives. >> we tend to return for the first time since 2008. also returning after a long absence is -- i will talk about them in a moment. there are a few who are not here. it is not surprising when you

consider -- considered the severe fall in oil prices. there are some junior miners. gold is surprisingly up. when you take into account the show you dollar, it produces -- it is still around $1500. it is pretty healthy. they are part owners of the biggest gold mine in us julia. it is just on the outskirts. we expect to hear a lot more from then during the conference. this is a good spot to be if you are involved in the mining industry. but it means is all of the delegates are in very close quarters. they socialize together here to

face each other all the time. it is a small town. paul allen for bloomberg in australia. anna: let's continue talking all things related to the chinese growth story. the chinese manufacturing data we had that out on saturday. let's talk to jane foley. she is a senior fx strategist peter good morning. let's talk about china. how do you contextualize the data out of china either a two-year low or five-year low depending on what data you are looking at in terms of this gauge of manufacturing sentiment? jane: everywhere you look it is not to good. part of it was due to storms and hot weather. we realized there is a structure

here. after the horrible loss on monday, i think it is clear it is extremely fragile at the very least. we know there are signs of more stimulus. when it comes to fiscal spending, the economy can react quite well. they could spend a lot. no doubt in to get more we'll have more highways used. there is the likelihood is good -- it could add to debt issues.

there is that problem as well. anna: if we return to the chaos we saw the chinese equity markets, does this put -- in terms of currency, it is a managed currency. jane: over a week ago, there was an announcement. they want is to be more of a market currency. it is kind of interesting. a be used to fall in order to stimulate the economy. thus could make the debt --

a lot of debate about what is going to happen over the next couple of years. anna: the growth target, is that something that is still expect -- expected to be here? jane: they wouldn't believe the figures irrespective of what they are. they could still get close to that. anna: why are they taking -- we will see. thank you very much. jane stays with us a little bit longer and the program. coming up, the fx stock exchange opens after five we shut down -- five week shut down. can the markets get back on track?

find out more in a few minutes. and the twitter question of the day -- would you buy greek stocks? get in touch on twitter. #greececrisis. stay with us. much more than reopening of the stock market when we return. ♪

anna: welcome back. 742 a.m. in paris. athens stock exchange will be oh and after a five week shut down. -- reopen after five week shut down. the halt in trading was a blow.

oil is extending its light this morning. iran will boost production immediately after sanctions were lifted. speaking on state tv and iran minister said they will raise input within a week after the end of sanctions. u.s. crude is down on that news. president obama's administration will issue rules to cut emission today. the plan is estimated -- and is among the most complex in history. let's bring in our editor. thanks for joining us.

why the interested in buying this unit? >> it is ultimately about self driving cars and increasing automation in cars. in order to have a card drive itself down the road, you need an extremely detailed route to thoroughly a few of the world that have a map like this. this is one of them. it is like they decided to partner together. anna: how is ownership going to be structured? businesses are working together. >> right. this is unusual. it will be equal stakes. they'll will make decisions together essentially. anna: thank you very much.

let's get more the story surrounding the opening up of the greek stock exchange. as nichols is live in athens at the stock exchange -- hans nichols is live in athens at the stock exchange. hans: i am joined by my guest. thank you for joining me. >> good morning. hans: what are we expecting today? >> were expecting the trading to start after more than four weeks. we don't expect the market to move higher. they were considered very safe and secure.

it seems they need new recapitalization. we expect they will fall. hans: [indiscernible] a drop in the single bank day -- is this your expectation? >> this is the expectation. hans: overall, how far? >> another reason for the fault is that the market was divided into two parts. greek investors and foreign investors. they could buy and sell and transfer the money.

they could only sell and not by. -- buy. this is the fair treatment of investors. hans: is there a chance the exchange could close again as the rules are not fair? >> they might be closed. everything depends. this is a problem in greece. hans: you don't see the

political expertise by the current government in advance to open this exchange properly? >> no. they have done thousands of hours of discussions. it'll have knowledge of the markets. it is too late. it should be before. hans: what you are suggesting is an early open and new restrictions. >> it is a very small problem. the market has to work. it is like a football.

they cannot change the rules halfway through the match. hans: you are saying what we have is a fake opening. >> it will be limited. hans: who will lose money? >> those who cannot make the action, they will lose money. it cannot be forecasted exactly. test to be equal treatment of all participants in the market. they know. hans: you are concerned about greek buyers that may want to get into the market. there are not able to and

foreigners will snap them up? >> yes. i'm concerned about that. hans: what is your prediction? more or less than 20%? >> the banking or is expected to fall dramatically. this depends. the problem is they don't have the know-how. it would be very limited. there is the know-how of the market. a lot to be done. hans: you're projecting it would

save the existing one. >> yes. it would absorb [indiscernible] that case, it would be a better solution. hans: we thank you for your time. >> thank you. hans: it has been a roller coaster. >> let's see what happens. hans: we send it back to you in london. anna: thanks very much. hans nichols in athens. hans will be speaking to the ceo of that stock exchange in greece. that is coming up at 10:00 on "the pulse." jane is still with us. greece, has that fallen away completely?

jane: despite greece over the last three months you got to remember that it is a good candidate. it is strong. it is not working properly. anna: complicated, was in it. let's talk about commodity currencies. it is the worst meltdown in years.

>> the standout is that canadian dollar. it is getting creamed. anna: i have got a chart here. you could see that canadian dollar has weekend. it is probably in recession. jane: it is quite interesting in canada.

it is interesting to see that. it would be too negative quarters this year. certainly it is not good news. anna: and they're not the only country dealing with this. jane: this is right. in new zealand, it is dairy. there's so much of a glut.

probably more than 10 year lows at this point. i think that the 3000. a lot of stress. it is linked very much with the chinese story. actually, they don't need to cut interest rates. maybe we reached the point where we have reached maturity. the employment situation has been surprisingly resilient. anna: let's talk about rates setting by the bank of england. we talked about this, didn't we? one of the good stories we have got on the website talks about how this could be a shock to some people in the u.k. >> yes. we haven't seen high rates in

many, many years. when rates do go up this may be the first time in their adult lives they have ever seen that. household debt in the u.k. relative to income is higher than it is in the u.s. it will be felt fairly strongly here. jane: that is the argument. we have seen that turn in recent months. it will be really key. there are signs that it finally is. those two sets of numbers will be crucial. anna: thank you very much.

coming up, the heineken ceo joins us to discuss earnings. we will be back in a few minutes. ♪

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>> brazilian retreat. hsbc says it is selling its entire business for more than $5 billion. -- business in brazil for more than $5 billion. a chinese manufacturing gain slides. a deepening slowdown in the second biggest economy. with strict trading rules in place activity will be anything but normal. welcome back.

i am anna edwards. it has just gone 7:00 here in london. we have a host of great interviews coming your way. we are going to be speaking with the ceo of heineken. how is the emerging-market strategy going? what is the future of m&a look like? socrates lazaridis joins us. germany's second-biggest bank commerce bank, reported earnings. we are going to be speaking to the cfo. that will be coming up live.

we have earnings from hsbc this morning. the bank agreed a sale of its brazilian unit. julia, just to see you again. we have heard they are selling the whole business in brazil. >> there are no sacred cows. they realized it wasn't profitable anymore. it would cut costs. you can't only cut costs i just cutting headcounts. they said, what can we sell? it is a bit of a trend in terms of getting money back. anna: we have seen some positive reaction. up by about 1.2 percent.

how does this compare to the rest of the sector? >> i think they are pretty much in line. they are a bit more aggressive in terms of being detailed in their strategy? deutsche bank wasn't. bmp has created a detailed plan. i think they are in line with their european peers but much better at communicating it. quite how far through the story are we? >> the doj fines five other banks. hsbc was not included. the number could be higher or lower. they haven't reached some of the other banks with the final

conclusion. that is one of the uncertainties. stock is down 5.8%. the index is up around 1%. what about the domicile question? that has been hanging for some time. >> we weren't expecting a conclusion? it is funny the earnings came out a lot earlier than they usually do. i don't know what it says or doesn't say. >> thank you very much. stocks fell amid signs of a deepening slowdown in the economy. the last hour you have nothing positive to tell us.

have you found anything? >> i will find something over the next two minutes. that is the story really. the dollar is stronger compared to most. commodities didn't do well in the morning session. it seems to be bouncing off the two day moving average. let me illustrate that as we move on. that is the 200 day moving average. that is something to watch very closely. that is roughly at 35.60.

across asia, let me get you the map. that is what we have. you take the official pmi numbers which came out of china over the weekend. things like inventory for example. there were a number of them. you look at that. you understand why there is more risk aversion. there is only so much domestic

policy. a lot of these economies are dependent on what happens here. you talk about demand for industrial goods. it doesn't bode well. new zealand is up 7/10 of 1%. anna: you found it. thank you very much. let's get back to our guest. we have talked a little bit about china and the commodity sector. just recap what you think about the state of the chinese economy. it is at a five-month low or a two-year low, depending on which of these meetings you are looking at. >> it is very negative. this is generally the theme.

it is difficult to know what that will be. this is a significant headwind. to what degree do they consider china when they consider policy moves? last week there were reports about large carmakers. the couple saying their sales are being. we have a tangible reaction to data back in europe. it is not just the commodities. it has now begun to come back to america and europe.

>> we have sales coming back. that is going to be a u.s. sales pictures. the athens stock exchange reopens after a five-week hiatus. a host of restrictions will apply. hans nichols is standing by in athens. good to see you again. tell us about these restrictions and what it means for trading. >> the restrictions only apply to international buyers. some are saying it is unfair. i am standing in front of the athens stock exchange. this is a modified open.

they are worried about capital controls. the predictions we had this morning the banks are going to be hammered. if you create a bad bank, could that preserve the shares of the existing bank? the bank stocks are expecting to get hit. no one quite knows. most of the exchange traded fund was shut down. there was one that remained open in this eight. since the stock exchange has been closed it has been down. it was down one barometer. i am going to have my cameraman pan up.

show these openwindows inside the stock exchange. i will let you determine whether or not that means they have air conditioning. whether it was a little cool or whether the stock exchange was suffering from austerity. it is going to be a hot day. >> what about the members of the stock exchange. what are they saying about restrictions? what are they saying would be the impact on the trade. >> it only applies to domestic buyers. the concern is not mrs. early that people would lose money. some stocks may go up today. there may be an opportunity to make money. it is basically a chart of unfairness.

-- charge of unfairness. it's also an indication that the political leadership lacks the technical expertise to have gone ahead and opened the exchange earlier. you could have wreak investors potentially be able to profit like international ones. anna: you can see the word exchange over your shoulder. hans nichols, live in athens. he is going to be speaking to the ceo of the athens stock exchange later today. that is coming up 10:00 london time live on the pulse. would you buy greek stocks?

you have different levels of access to the greek stock exchange. lots of restrictions on trading greek stocks, but would you buy them? concerns the economic slowdown is deepening. we will tell you why after a short break. ♪

>> welcome back. hsbc reported a 10% rise in profit. pretax profit jumped from last year. the bank agrees to sell the brazilian unit. it also recognized a $1.3 billion to cover the currency. iran votes to boost production.

iran's oil ministry said the country can boost output by 5000 barrels a day within a week. crude trading weaker after those comments. and helping to ease the escalating crisis at the port of calais. writing in the sunday telegraph, britain's home secretary and france's interior minister calls this a global migration crisis. let's get more on some of the earnings we have had. let's get more with james ferguson. good to see you. they have changed their reporting time.

now it happens nice and bright and early. we will talk about that. in terms of what they are reporting, there is the underlying performance. it is part of an ongoing project. >> hsbc always had these considerations. they have not been terribly happy. the core of the bank the asian business they have always done really delay well -- relatively well. the same with other attempts to foray into other business.

they are pulling their tentacles back in and really paying much more attention to profitability. president but he remembers the declarations of household. it is what of those moments. is it going to be more selling away from u.k. and asia? gulliver has been in the job. he sold 79 businesses since then. >> the bank is acquiring lots of businesses. this is very typical of the behavior patterns we have seen in high-growth economies.

they don't really worry about profitability. it turns out a lot of the synergies don't really exist. market share is not that important. we are seeing many banks deciding which businesses they are going to pull out of. it is very important for hsbc to do this. they came out of the crisis spectacularly well. that is a bank that is suddenly going and we should be moving into a powerful stage. i think it is a good sign. anna: the fact that we are

announcing at 5:00, this signals a focus on asian markets. we didn't find out about that today. it is a big question. >> it has been quite a long attrition. the banks want to discuss the future. the regulatory costs are very significant indeed. there are a lot of things that will encourage them to think. let's start discussing moves. let's start implying that all of

these things look like what the bank is doing. >> rbs could be in focus. people are suggesting the treasury, but they might start to sell some of that state. they might sell it. >> the overall project will probably not the a loss. they will be able to come out now. they will be able to say something that isn't really relative. you do realize the enormous 900 billion plus extra debt the country has taken on, you know

none of that is for the bank. >> thank you for joining us. a reminder we will be seeing -- speaking with stephen engle later. 23 minutes past 7:00 in london. no sign of recovery on the factory floors. let's get more from beijing. so much volatility we have seen in recent weeks. what is the outlook? >> we are getting a broader

picture of the economy that is in greater trouble than we thought. we had the readings on saturday. they slowed down in june. bloomberg economists forecast the economy grew at a rate of 6.5%. all of that paints a picture of a government that is really going to struggle to meet it 7% growth target by the end of the year. >> thanks for joining us with the latest on china. thursday is going to the a big day in europe. you will get the inflation report as well. keep an eye on friday.

we turn to the united states. will the rate stay at a seven-year low? the fed wrestled with the question of when it is going to increase interest rates. let's get back to our guest who has been patiently waiting. as we know from hearing what the fed has to say, we are still looking at some improvements. >> a month ago we had a flat earnings picture. average earnings, nothing there. it seems there is not much in the way of wage inflation. commodity prices are lower than many people thought they would be.

we are looking to see if there are any clues. anna: to see whether that gives us any clues. you can contrast to some extent consumer activity? >> we had consumer confidence. another important number. numbers are disappointing. perhaps the fed doesn't have enough to go in september. we try to gauge that. anna: we spoke to one guest who is blaming the media. thank you for spending the last hour with us.

7:26. coming up the ceo joins us to talk about earnings. we will talk about strategies and m&a perhaps. ♪

>> welcome back. we have earnings from heineken early this morning. joining us is the ceo. great to talk to you this morning. your numbers came in ahead of estimates. you are not changing your for your guidance. tell me how optimistic are you about the prospects of the business. >> we had a talk, which was quite good.

we didn't see any reason to change our outlook areas we expect to grow in revenues and profits. europe remains difficult to operate, but we are making progress. we see many of the majority of our developing markets going the right way. >> can you give us any more guidance? what is going to be in the driving seat? >> the usual suspect is the growth of the heineken brand which is a pretty good performance. ethiopia we expect further growth to come. our innovation rate has been steady at 8.5%. that will continue.

the line extensions of existing brands around the world. the mainstream brands are performing pretty well. including in europe. business is more difficult because once more microtrends are against us because you don't have economic growth. in many countries last year we have been continuing to improve our shares in value in most of the markets in europe. anna: my calling manus cranny joins us on set. -- my colleague manus cranny

joins us on set. manus: how are we going to do that? you have a lower euro. it was to boost the premium part of the portfolio. the third leg is working constantly for the last decade. steadily by investing in premium brands we improve steadily our margins year on year. manus: the one thing i noticed is that growth will excel or eight in the second half of the year. what i am trying to square away

as wire are you so confident the growth is going to happen in the second half of the year -- why are you so confident growth is going to happen in the second half of the year? >> you are cycling against events from a year before. the first half this year was a little more complicated. we had the world cup, which always boosts a few percent in terms of revenue. it's difficult to quantify. we will have the rugby world cup in the second half of the year but that is more cycling the comps. a policy where you invest in innovations and redeploying in emerging markets is something we have been doing for quite a while. you might have pickups, but for the long-term it is the right policy to grow our business. we continue to do that. that is the reason we are

comfortable for the second half of this year. >> let's talk a little bit about m&a. we have been talking about how we might see another megadeal in the brewing industry. perhaps even in the second half of 2015. is that something you think we should expect? further consolidation? >> i never comment on possible acquisitions and merger activity in the market. this market is already highly consolidated, but there are still opportunities around the world. you have to expect the industry will continue to look at target for further consolidation around the world. >> to you think the trend toward craft beers could bring any opportunity for you?

is this an attractive margin for you to go shopping? >> i won't make comments about what others are doing other than what we would do in the future. it belongs to the area of possibility. they are incident. -- infinite. it's only part of it. manus: is this the kind of deal we can expect going forward? what are the other markets you see having that kind of potential? you have a middle-class set to double by 2020. there are regulatory issues. where else can we expect to focus? how concerned are you in terms of the growth area? -- growth story? >> it is regulatory pressure we

have in all countries. we are an industry that attracts regulatory pressure. we have learned to deal with it. we have had problems with it lately. we always look at population growth, economic growth, and urbanization rates and whether we can buy an existing business that creates a position for growth in the future. we still have a few spots on the map we are working on. you will allow me not to comment on them at this time. anna: thank you for your time. to discuss this heineken growth story lots to talk about. the thing with m&a is you can't really talk about it, can you? we try.

>> i think the word they use is about premier is a nation -- pre mierization. their margins are quite off. these guys are around 14.5%. he has a long way to go. that is where they have done interesting deals. they say it is a good business for them. it is 8.8%. it has got a middle-class of 2020. it seems they go for the strategic acquisitions rather than blockbuster deals. they are in the number three position at the moment.

it is how they build the organic market share. anna: there has been conversation about how there will be a megadeal and whether they will be a part of it. then we have the whole conversation around craft beers. the problem they have in europe has been about pricing. they are all facing this competitive environment because of the difficulty getting a handle on pricing. >> the western european numbers did come in better than the market had expected. if you think we have growth at 1.5%. everybody seems to be talking about a better story. you have the fastest growth in eight years in spain. on the periphery and the mediterranean countries you have improvements. they did quite nicely. emerging markets, that is five

years? >> we have five years. they are about 12% or 13%. it is such a bad reading. europe's biggest bank posted a 10% rise in first-half profit and says it is selling the brazilian unit. we will look at how the company shored up its earnings. stay with us. ♪

>> welcome back. here are the stories you need to know. chinese stocks are heading to the lowest level in three weeks. a drop in manufacturing has

reignited concerns the economic slowdown is deepening. the factory index came in at 47.8. hsbc reported a 10% rise in first-half profits. the tax profit jumped to just over 12 billion last year. the bank recognized a $1.3 billion provision to cover a currency investigation. i run plans to boost production almost immediately -- iran plans to boost reduction almost immediately. they can raise output by 5000 barrels a day within a week of the end of sanctions. crude trading weaker.

we are 15 minutes from the start of european equity trade. let's talk about the equity markets. brenda joins us. good to see you. we are poring over some of the latest out of china. we were on a roller coaster because of the chinese equities story. we have weakness as a result of the week pmi numbers coming out of china. put them into context. >> i think we can look at 7% gdp growth. i feel china's growth is going to struggle in the wake of these figures. i think it has been penciled in. this is all going to feed into a disinflation area environment. you have your commodities.

you have the fact there is going to be less demand for those commodities. you have to sense that they will be able to do such a thing in the current environment. >> we have been talking about the commodities currencies. we are weaker today on oil because of the comments out of iran about being able to ramp up production pretty quickly. what is your perspective? is it australia? is it canada? >> i think we are weak on the canadian dollar. i think we could go beyond that if the glut continues. there are going to be fiscal challenges, a change of government, bringing forward the actual elections. you can question whether there will be enough done to say what

is going on. i do feel that we are a little optimistic at the first heart of the year. i feel that if we see oil prices go below that we could head towards the $30 per barrel month. quest we have fascinating things happening. we have an australian rate position. we have a host of data coming out and then a jobs report on friday. >> it is going to be a big week. they will be leaving room for rate cuts down the line. bank of england won't see any rate cuts. the inflationary report will be interesting. what we are looking for is how the structure has changed. we could well see two or three members which would fuel the

idea we could see a rate hike as early as the latter part of this year. of course the payrolls are going to be majorly watched in light of what we saw last week in terms of wage growth and jobless claims. >> the fed said they are needing more evidence on the jobs front. let's include some equities that are in focus. stephen morris joins us. thanks for joining us. hsbc trading up. a big asset sale, a big headline. >> they managed to sell the unit for more than the market expected. the investment bank also performed better than expected

given the performance and asian equities. it's a good set of results. they still have to settle with a number of them. there was a big group settlement. overall the market seems to like these results. the strategy is starting to work in turning this bank around and getting it on solid footing. anna: we heard back in june about the three-year plan. is it a key part of the business, getting rid of the things they don't want to focus on? >> they seemed to be too big to manage.

they basically didn't have market-leading positions. turkey is another unit they are trying to sell. you can get an idea of the scale. they do have a rather large decision to make before the end of the year. it is whether to stay in london or to move to hong kong. x just because they decided they are going to report at 5:00 in the morning london time, we read anything into that? >> we are told not to read too much into that. we will see by the end of the year, the amendments are lowering the bank levy and making it applicable to the domestic assets may help keep them in the country. there are factors coming from asia. >> we're going to hear from the

u.k. treasury. they are talking about whether we will start to see some rbs stocks. the real focus for the market is going to be on the fed and what the jobs tell us about the debate. >> i am still thinking december. it is quite a hipster number in terms of paying attention to it. we still have no evidence to suggest the market is ready for it. >> to you think we get real turmoil in the market when they do move, or do you think we have been warned so much we should have seen it coming? >> there is a certain amount of tightening we have already seen. there could be a pricing and already. if it does happen as early as

september, emerging markets are already in turmoil. >> thank you very much. a bit of a heads up on the banking sector. we are minutes away from the start of equity trade. manus has his eyes on the markets. manus: stocks had one of their best month at the close of business of friday since february this year. we rallied one and a half percent in the month of july. we have a slightly softer open. everybody is focused on china. you have the weakest factory owners in almost two years. profitability in european equities. europe is trouncing for the first time in terms of

profitability. we are going through a big week. they say the market is under assuming. they are going for a 3-6 split. that is something to consider. they are targeting a much lower euro. keep an i on the banks. -- keep an eye on the banks. we like beer. >> thank you very much. a look at what we can expect. on the move is next. jon ferro is here to tell us about what he is going to be watching on the program. jonathan: a lot of earnings to

watch. we are going to be talking about china. the latest data does not paint a pretty picture of the second-biggest economy. manufacturing dropping to a two-year low and remaining in contraction for a fifth straight month. we talk about china. then we will count down to the athens stock exchange open. a five-week shutdown. some people are expecting a drop of as much as 20% the open. we will bring you that live. then we will do something different. the commodities route and mining . investing in it. private equity investment has really picked up. we will talk about what they are looking to get out of them. >> interesting. jon ferro with what you can expect. taking us through what we need

to keep an eye on. we are expecting to see a little bit of weakness. a little bit of weakness coming through. keep an i on the banking sector. we might see some upward movement in some of the banking stocks. we here from commerce bank. keep an eye on nokia. interesting to keep an eye on. some carmakers looking to buy up those assets. a big week ahead. i will see you again tomorrow. ♪

jonathan: good morning and welcome to "on the move." just moments away from the start of european training. let's get to your morning beef -- morning brief. after a five-week shutdown of the athens stock exchange, training resumes. stocks are expected to plunge. china slowdown. it remains in contraction territory for a fifth straight month. chinese stocks drop to a three-week low. brazilian retreat. hsbc is selling its business in brazil for more than $5 billion as the bank beats estimates. they are three of the things i'll be talking about through

the morning. futures in london a little bit lower. dax futures off by about 20 points. a very special treat for the market open. manus cranny, over to you. manus: european stocks put in probably one of the best weeks in the months of july that we seem since february. the rally is 1.5% over the space of july despite the fact that this market was closed. it is anybody's guess. there is an exchange rate in the united states of america. hans will take you through that. that exchange rate problem was down over 17% in the hiatus. will they go for a ban on short sales? those are some of the questions we are asking. china, factory orders at a five-month low. what will the preemptive policy be? what impact will it have on european markets.