♪ manus: good morning from our middle east headquarters. i'm manus cranny, dani burger alongside me in london. hsbc resumed dividends. an interim payout of 7/10 a share after quarter profits doubled from earlier. a conversation with the cfo. beijing regulators seek talks with the ftc. that's after the u.s. tightened

the rules for chinese ipo's. stocks open on the higher side. plus, there are reports the u.k. could offer up to 32 million booster shots starting next month. anthony thach a says vaccines are working -- fauci says vaccines are working. 7:00 a.m. in paris. net income jumps 180%. dani burger, welcome back. glad to see you back with me. 3.4 billion was the number. dani, this is a pretty stunning set of numbers. we'll get more detail on the revenues. revenues are beat. do you have a pint of heineken in your hand? you are more of a half a glass kind of lady? dani: i am probably more of a half a glass kind of lady, but

heineken numbers coming in, very different business than axa, but everybody is drinking, organic be a volume coming in at more than 9.5% growth. the estimate was 7.9%. full-year vexed -- expectations is unchanged. they are seeing first-half net revenue leading, as well. we are going to be speaking with the ceo of heineken later as these numbers cross after 8:00 a.m. london time. man se? -- manus? manus: absolutely. i would say the conversation is a letter of comfort from hong kong. we're committed. we're comfortable with our exposure. we're confident with our exposure, comfortable with our

landing, more at home in the united kingdom. stevenson talked about the ipo pipeline. when i challenged him a little bit about his comfort level, him and his team's comfort level with their position in hong kong, with the potential for new regulation, he said we been here 187 years, which is the standard line, but it's about moving resources. we can hear more from the conversation with you and the cfo of hsbc, the line at the basis. how is the data looking? because we're trying to understand whether we are at the middle or the end of the china crisis for the world. dani: exactly. just as confident as he is, investors seem confident in equities, at least this morning. we have the csi 300 up more than 2% after the volatility. people are buying the dip saying we don't want it here.

we have a chinese bond, a market that's on fire, and the story seems to be about rotation. we have the futures index outperforming. let's stick with china, seeking more communication with the u.s. on overseas ipo's. in a statement, the security's regulator called for talks with the sbc -- s.e.c., even after it called for additional restrictions. beijing also asked for mutual respect and collaboration on the issue. joining us is bloomberg's china government reporter. lucille, what is the regulator signaling with the statement earlier this weekend? lucille: yeah, so they are trying to ease market fears over beijing's crackdown. they said they're looking to find a suitable solution. we know that the sbc is looking for more information on risk

disclosures. they want more information on the structures, communication with the government. the chinese side doesn't see those as compromising national security. there is room to find a solution to this issue. manus: good to have you with us this morning. we are all trying to understand. it's interesting the capital markets, capital access door open. that is the most important message for me over the weekend. what else are the chinese trying to do to calm the markets? lucille: yeah, there's certainly this sense that chinese authorities are going uncomfortable with this nearly $1 trillion rout last week. we have seen state back media saying the route is overdone. we also have analyst speculate that funds have intervened in the market and we had the

official news agency say over the weekend that china should find a balance between opening up and security risks. so there is certainly trying to find a balance from the chinese side. manus: well, $1 trillion wi-fi and money poured into the tax. some people are brave and then you have to ask other they are still investing given the latest. chinese stocks are rebounding with friday's policy, signaling more targeted support for the economy. what does that mean? juliette saly had three days to read all of it. give us the context. juliette: and i have read absolutely everything, manus. we had good turnaround, because chinese stocks started in the red, but these thoughts that you could see more targeted easing coming through from the pboc has

turn things around, and the csi 300 jumping, biggest jump since may, also seeing this bond rally accelerate, as well, on the back of the thought you could see policy easing with yields at their lowest since june last year. watching the a share market because last week, mainland chinese stocks in hong kong actually had their worst month in five years. you are seeing a slight rebound and weakness in the offshore u.n., which hit those -- yuan, which last week hit those april lows. there has been a pause in the regulatory storm, but they don't see a rainbow yet because you did see them talk to other reforms on friday, in terms of real estate, commodities, overseas listings. they're saying there could be more headwinds ahead and more volatility in the earnings season. manus? manus: doesn't look like or sound like they're done just yet. thank you, juliette saly is

singapore. let's bring in a man who has to deploy capital, ed smith. did you pull capital away from china? are you ready to deploy, by the debt -- buy the dip? just contextualize your nervousness about being exposed. ed: good morning, manus and dani. we've been underweight all year, and that's reduced tightening policy. we believe that the market expectations have been financing to high for too long, and surprise indices have consistently come in weaker in china than in any other region, combined credit has been falling. it's interesting to see the pmi numbers being interpreted as bad news is good news. maybe, barring perhaps a few slightly dovish comments from the bureau, the opposite on

friday, maybe we will start to see a bit of easing, or at the very least, risk china will over tighten. as for the trillion dollar route, we think there could be strategic reasons for industrial policy why china may want to be encouraging more capital away from those services companies towards high-tech manufacturing. and that could mean a permanently higher risk premium for these assets. dani: so ed, so you're definitely describing a changing story from your more bearish china tiger policy. ok, it's loosening. you've had a bit of a selloff. do you jump into chinese assets here? ed: so, i think it's certainly looking at some of these

companies is there could be some value, definitely higher risk tolerances within their portfolios. we are still cautious on offshore chinese tech as a whole. perhaps we'll start to look again now at the ensure markets, especially if that risk of over tightening has increased. manus: mohamed el-erian has said that he is not worried about overall contagion. he doesn't see a cascading effect. but he has warned -- and this is what i want to get an understanding about -- i presume you have indexes, which is part of the portfolio management. china, part of msci has doubled, 35%. what are the implications of that, ed? ed: yeah, so i think each time

that it gets added, particularly as it surprises the market, and some more passive money, it does move markets. [indiscernible] as soon as it's announced, as soon as it's anticipated. there doesn't seem to be anything on the horizon for additions to the waiting. but it's definitely something we ask all the time to our clients. do we need to get in front of that? we think at the moment, they've got to take into account the tightening cycle. that overwhelms some of those structural reasons. after all, some of these big structural reasons about china heading towards [indiscernible] they've been there for 10 years. china, asia-pacific more generally, has underperformed

the last 10 years. it's not just about the structural. dani: yeah, and to be fair, chinese-u.s. listed companies, $6 trillion of market cap. a lot of reach there. ed, you're going to stick around. let's get over the first word news with angel. good morning. angel: good morning, dani. the u.s. is blaming iraq for an attack on an oil tanker. secretary bleecker said there is no justification

his condemnation came after israel and the u.k. also blamed iran. iran has denied response ability. -- responsibility. that's according to a report in the telegraph. all adults age 50 and over will be offered the jab, with pharmacies taking the lead in delivering them. the u.s. senate has finished a tax of $550 billion bipartisan infrastructure bill, which is now ready to move to a final vote likely this week. lawmakers met at the weekend to iron out the plan's language. that marks the biggest infusion of federal spending on infrastructure in decades. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. manus? manus: angel, welcome aboard. great to have you with us. her debut on bloomberg television, angel luciano there, keeping it real on monday morning. coming up, kashkari's morning. the fed president said the delta variant could slow the jobs recovery. we discussed the risks market. this is bloomberg. ♪

♪ >> i was very optimistic the fall would be a very strong labor market, with many of those americans coming back to work. that's still my base case scenario. but if people are nervous about the delta variant, that could slow some of that labor market recovery, and therefore be a drag on our economic recovery. dani: minneapolis fed president neel kashkari speaking on cbs face the nation. traders will be watching the u.s. jobs data this week after the fed officials signal further labor market progress is key in determining the timeline, something they've been bleeding over and over again. let's get more in the debate with ed smith, who is still with us. we hear from kashkari flagging the delta variant as a possible pickup in terms of the jobs recovery. something very sanguine when it comes to the risk posed by the

delta variant. where do we stand? how much do we have to factor in the rising case count into the timeline? ed: yeah, so, i mean we're not overly concerned about the delta variant at the moment. it may take the edge of the consumer recovery. consumer confidence surveys have global in the u.s. and europe and july. the high-frequency spending and football data in the u.s. has held up pretty well, actually. in the u.k., some have had a wobble. but in the u.s., it's been more robust. the consumer story may take an edge of things, and arguably taking the shine off that consumer boon. it lowers inflation risk, and more portly lowers the risk for the tightening of monetary policy. manus: ed, we've done a lot of

ceo interviews in the past quarter, a lot of banks. a lot of people that tune into bloomberg work for banks. hsbc talks about credit quality improving, credit outlook improving, release backs improving. how do you take advantage in the portfolios, in credit, in corporate, in corporate bonds, or exposure to improving materially improving, release back orientated structure in these institutions, the message they're giving us? ed: yeah, so definitely releasing those provisions, the loan into the market as a driver for returns. we're looking that the banks have made the most aggressive macroeconomic assumptions on the scale compared to conventional forecasters assumptions about gdp. so, and they're the ones that

are going to have the biggest boost. but we've got to consider here the yield curve, right? the banking sector, as a whole, still has a 90% correlation to the yield curve at the moment. so while within the sector, we're looking for the potential for releasing provision, looking for m&a targets, as we discussed in private, dani. we've got to retain some macro, as well, the upper performance of banks [indiscernible] in our opinion. manus: there you go. there's a reason why we asked the question on the yield curve. there's a 90% correlation. ing had the line, who let my yield curve as we flatten? is it auspicious? we can debate that the next time you're on, what the slow down looks like, if it's real or immaterial.

dani, we've got the hsbc interview. the dividend is out. pay at out. -- pay it out. we have that expensive conversation with the ceo. that's -- exclusive conversation with the ceo. that's coming up right after this. ♪

♪ >> a hybrid way of working is here to stay. >> more hybrid spaces, flexible working. >> it was accelerated because of the pandemic. it was already coming in. >> we are prepared to have the flexibility to allow people to work from home two to three days a week. >> it's a simple thing to say, but you have to make sure that teams can have a catch-up. >> we have to make the teams stay mentally balanced. we think getting them back to work as a major part of that. we are starting to bring them

back. >> some companies don't lend themselves to working from home at all. >> there will always be a need for collaboration. manus: the banking executives giving us their take on the return to office. and that wasn't actually immaterial part of the conversation with hsbc. we spoke on the interim dividend, profit doubling from a year earlier. that easily beat the estimates. it also cut back further on debt provisions, saying the global economy is starting to emerge from the effects of the pandemic. i spoke exclusively to the cfo, louis stevenson. >> we're very, very confident we can hit that dividend policy this year. what we've seen so far this year is capital that can continue to accrue into a much better place than where we thought we'd be at this point, largely driven by credit outperforming relative the way we thought.

but relative to three to six months ago, our capital position is a lot stronger, so we are adjusting our tonality today on capital distributions. we are signaling the fact that relative to the start of the year, we would have said we would continue to be cautious. i think now, we definitely feel more confident and we will keep buybacks under review. manus: $1 trillion was wiped off chinese equities globally, from hong kong to ensure the united states. are you unscathed? do you have any margin calls, any collateral imperative as a result of the wake up? ewen: no, not at all. we've always been relatively conservatively positioned. we've had no impact at all. if conditions in hong kong continue to improve, businesses have another good quarter, and we're seeing good ipo activity with some of the return from ipo's out of the u.s. and in the hong kong market. manus: that's where potentially,

ewen, and i want to get your guidance because, of course, u.s. and china tensions are rising. that's very evident. and the chinese authorities are reaching into capital raising. are you bullish on the pipeline for ipo's and capital raisings, or should we be a little bit more measured when you see such heightened regulation? ewen: yeah, i think there is some reason to be cautious, but we do think that activity levels in hong kong will continue to benefit for some of the tensions we're seeing at the moment between china and the u.s. manus: as a result of the market dislocations, you manage risks, you manage flow. your job is to manage the risk book. are you preparing to paired back any landings to any sectors, to tech, to education, to housing at all as a result of the moves? ewen: look, we'll escape risk

appetite under review. we're very comfortable with credit books in china. i think when you look at our lending books in china, less than 40% of our line books are state owned enterprises. about 20% of the book is international companies investing into china. and 40% of the book is private enterprises in china. we think we're reasonably balanced and comfortable with our risk. manus: that gives you some perspective on the hsbc cfo in terms of comfort level about their exposure. we spent five days and will continue to talk about it. there's a comfort level. i call it the comfort level from hong kong, in terms of profits, dividends, and release packs. dani: yeah, and i think that ipo picture is interesting, as well. can they capture a move in chinese companies listings in the u.s. to hong kong? overall, he sounds optimistic, but maybe there are advantages he can get from the rig of the

tory crackdowns. -- regulatory crackdowns. manus: absolutely. the biggest bounceback in 70 or 80 years. i'm looking at what the team put out from bloomberg intelligence. it's all there. we've got a few of them to share. why don't we do that? jonathan, our banks analyst, talks about revenue growth and a positive jaw is now the key, the difference between costs and the actual profits that you have there. so, it is a nation sign of topline growth. the timetable are the key positives for the second quarter. dani: hsbc, one of the biggest dividends in european banking, manus. manus: absolutely. we've got a little bit more, all about the cost savings. what have we got? dani: we've got axa coming up,

rebounding from costly claims, having better than expected profit. we will be speaking to the ceo next. this is bloomberg. ♪

♪ dani: good morning from bloomberg's european headquarters. 630 time a.m. in the city of london. i'm dani burger alongside manus cranny live from dubai. this is bloomberg daybreak: europe, and here are today's top story. hsbc resumes dividends. the lender announces a payout of $.70 a share after quarterly profits doubled from a year earlier. more communication, beijing's regulator seek -- after

tightened rules for ipo. stocks opened the week higher. there are reports the u.k. could offer 32 million booster shots. that's starting next month. anthony fauci says vaccines are working and a return to lockdowns is unlikely. now, axa has rebounded to costly claims tied to last year's covid outbreak. first-half net income at the company more than doubled to 4 million euros, topping the 3.4 million analysts were expecting. joining us now is thomas, the axa ceo. thank you for joining us. congratulations on the strong numbers. a very difficult period from covid last year. what really drove the outperformance in the quarter that just past? thomas: good morning, dani and manus.

yes, clearly we are rebounding very good exults, exceeding -- results, exceeding pre-covid level. we have a very strong increase of prices after the covid claims last year, so we are very happy and very confident on these results. all of this happening on a very solid balance sheet. you see it has also increased again by 12 points. manus: so, the outlook is strong. where do you see the biggest opportunity for growth? i know the word health appears in our copy, but put some meat on that for us in terms of how do you go the health business? thomas: so it is absolutely true that after the crisis of covid-19, everybody is very concerned about health, in particular when it comes to the question of, how do you get very fast access to the health care system?

how do you have very good health coverage given pandemic signals have increased? and certainly longevity is still increasing. axa can really help to gain access to the system, to find the best doctor possible, and to help the patients as quickly as possible, as we see that it is very much on the rise. dani: how does the spread of delta, especially in the u.s., and the threat of more variants, how does that complicate an impact your outlook? thomas: it is clear that in the very short term, we are all very confident because we have found new liberty after the confinement. but you're right. the delta variant is on the rise. infections are increasing. but vaccinations are also increasing. so i remain very prudent when it comes to predicting economic activity going forward, because we have to see how the delta

variant is impacting us while at the same time, vaccination is increasing. manus: we'll come back to just how concerned you are, but let's square away some of the things the market wants to get an idea of. you offered 300 million euros to settle covid-19 claims restaurant owners had. what proportion have accepted? can you update the market in terms of, has that been a success and are we closing that period and that chapter? thomas: so, the aim of this transaction was clearly to make an end to the legal uncertainty around this issue in france. we have offered a transaction with a three-month window. we are, as you can imagine, in discussion with all of our customers, 15,000, and i can report to you that the discussions are going very well, that we have a lot of response,

who have accepted or want to accept it because it's clear. we want to put this where things are looking good again, where restaurants open again, so i remain very confident that we find a good solution with a large majority of our customers. dani: large majority, but can you put numbers behind that? what acceptance rate are you seeing? thomas: so as we said today, just over 50% have already been spoken to and have given us either written or verbal agreements, just to give you a flavor. dani: ok, got it. and you put up new numbers when it comes to the flooding in germany, the flooding in texas, as well. have you seen the largest extent of that, or can you assume more costs associated with those weather events, as well? thomas: look, this year has already been a very tough year when it comes to national

catastrophes. there were major flooding's in europe a couple of weeks ago. i visited some of the areas in germany. it was really a very difficult visit because a lot has been destroyed. and we are, going forward, still expecting the hurricane season in the u.k. so this is not over. we are in the middle of it. and we are continuously making sure that we are helping our customers affected by these very tragic events. manus: thomas, i'm going to show our viewers some video. i don't know whether you can see it or not, but it's a mass gathering of 180,000 people in chicago, an event called the lollapalooza. our viewers can see that now. some people would like to be at that. this goes to the heart of the future of your business. ensuring events, ensuring mass events. are we going to enter a new

pricing policy regime? are we going to see a shift in the insurability of major events? thomas: we certainly will. the events of one of the last drivers of covid losses last year, and we went from ensuring events to another extreme, hardly ensuring any events. going forward, there needs to be a new formula, ensuring events, making sure that the senate terry conditions and -- sanitary safety is being threat. not of that size, but certainly others in which we have a very well controlled access policy, and very well controlled social distancing policy, which has not led to outbreaks of covid. it is possible, but requires a lot of discipline. dani: right. i also wonder -- there's been

speculation about your reassurance business. any new comments or words you want to give us about the possible selling of the business? thomas: there is no news. to give to you it's an important part of our business. it really helps us to get into emerging markets, where the basis for primary insurance has not yet developed. that helps us to diversify our portfolio, and we have a very good management team at the head of this business. they have contributed to the rebound, and so we are very much focusing on making sure that this business continues to develop. manus: thomas, we wish you well, ceo at axa. thank you for joining dani and myself. let's get to angle for -- angel for the schiano. angel? angel: cases for people jabbed

in january are double those vaccinated in march. an apparent decrease in effectiveness over time has led the country to begin a program of booster shots. deadly wildfires along turkeys mediterranean post are forcing evacuations with firefighters worked to contain more than 100 outbreaks. cities including his temple have barred visitors from entering nearby forests due to the fires, which have claimed at least eight lives. londoners snapped up more than 60,000 homes elsewhere in the u.k. and the first six months of this year, the most going back 15 years. according to a state agent, it accounted for purchases outside the capital. that chair is higher than last year when outward migration began. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg.

dani? dani: thank you so much, angel phyllis e otto in london. we turn to london, where anthony fauci rules out lockdowns, but says the u.s. outbreak is likely to get worse. we will discuss the latest comments by america's topious d. this is bloomberg. ♪

♪ >> if you do get infected, the likelihood of your getting a severe outcome of the infection is very low. it is much more likely that you will be either without symptoms, or minimally symptomatically. so the vaccine is doing what you wanted to do. -- want it to do. it's protecting people from being sick. manus: anthony fauci there, the chief medical advisor to the

president of the united states on cbs face the nation. in the same interview, he also said that the return to lockdowns of 2020 is unlikely. that's a key for markets because factory spoke --fauci spoke over the rapidly accelerating delta variant outbreak. that's a global phenomena, not an american phenomena. grappling with delta is a global phenomena. how certain can fauci be about really ruling out lockdowns? is it too early of a call? >> good morning. i don't know how anyone can be certain of anything, about -- other than how vaccines are doing what they are supposed to do, reducing severity of the disease with this virus. but he is anthony fauci. i'm not going to doubt what he says.

but i think any scientist would agree, always open to change their mind. i don't think lockdowns are what anyone would want, and the better way to do it would be to keep wearing masks and getting vaccinated so we don't have to even think about it. dani: part of the drive to help people is getting boosters, as well, from the u.k. to israel, japan perhaps looking at it next year. but at the same time, they are talking about boosters, you have developing nations struggling to get first shots out. what does it mean in terms of demand and pricing for a lot of these nations that are behind if we start giving booster shots? sam: for pricing, with regards to the low to middle income nations, i don't think that's the definition because most of the vaccine makers, even the ones that are making it for profit, are offering it to countries based on gdp, and many countries are actually getting it at cost in the low income

brackets. so that includes the pfizer biontech vaccine. out of the 4 billion doses they are going to make next year, they are pledging about one billion doses to the low to middle income, not-for-profit. so, they are still going to try and sell vaccines to the hiring -- higher income countries, and some of the prices are going up, as you've noticed. manus: where are we in the u.k.? i watch a large amount of u.k. and global tv over the weekend. they talk about dropping numbers in terms of the u.k., and difficult to explain. does this go back to vaccine rollout moving towards herd immunity? because the infection level is rolling over. but so too are, i suppose, hospital admissions and deaths. have you done any great reading on this? sam: yeah, i mean manus, it goes back to my comment about what

dr. fauci said. we keep doing modeling and analyzing things and thinking we've got a grip on stuff, and then the virus surprises us, sometimes to the positive. this surprising rapid drop in the number of cases in the u.k., everyone's scratching their head trying to find an excellent nation. and let's hope it's as simple as -- explanation. and let's hope it's as simple as vaccination and the natural immunity people have evolved. but i think we have to give some credit to the people, too, because what i'm hearing, and i don't know if people are actually observing mask wearing and continuing to be wary of situations which provide the virus opportunity to pass from one person to another. so that's important. but i think it's altogether that we have to see these people, plus vaccines, plus immunity. dani: yeah, in the vaccine picture, there have been reports that in the u.s. and places

where hospitalizations are high, more people are going out and getting vaccines. do we have evidence of what really works in terms of policy that pushes people together vaccines, whether sort of the caret or the stick approach? -- carrot or the stick approach? sam: one of the critical things here is that you have somebody different things going on. on the one hand, allowing fully vaccinated people to travel entices people to get vaccinated. giving people the opportunity to take their masks off might have, but that ended up being premature in the face of delta, at least in the u.s. so you've got both going on. and i think people themselves eventually come to the conclusion, you have to be really, really anti-vaccine to not see the value vaccines give when you have family and friends around you being severely affected by the virus. and those who are vaccinated are not. that's the point.

the more that information we get to people, the better. i want to write something on data that came from singapore that gives a lot of confidence with regards to what happens if you're vaccinated and you catch the virus. we've been writing about that, but we have new information that looks very promising. manus: and this is the issue, isn't it, for government and society? and this is not my commentary, but this is commentary from across news, which is what is the acceptable level for society in terms of reopening, reopening travel, and tacitly accepting that there is a level of infection that will happen as you normalize, sam? and we need to understand how that's communicated to us. benchmark that to cancer. benchmark that to seasonal flu. how do you think they best communicate our toleration for more liberty with higher infection? sam: i think the u.k.'s kind of trying to do that. it's a live case of it.

some of the other countries with different varying degrees of restrictions, france for example, nightclubs are open. nobody goes to a nightclub and wears a mask. cases started rising really quickly. the past few days, they've been relatively flat. nobody wants to have any cases. it would be great to have zero, but that's not happening. in the next two or three months, we will have a better feel because one of the critical elements is the back-to-school and back to indoor life, whatever we call it, summer goes back to normal. so that's the critical time. i'm watching september, october timeframe to see how well we've managed with regards to vaccination versus transfer of virus. dani: certainly the nightlife alive and well here in the u.k. despite those cases. thanks for your insight. that's sam fazeli at bloomberg

intelligence. coming up, we stick with the u.s., but politics, the u.s. set to vote on a $550 billion infrastructure plan within a matter of days after finalizing the bill. that's next. this is bloomberg. ♪

♪ >> we're very, very confident we can hit the dividend policy this year. what we've seen so far this year is capital that can continue to accrue into a much better place than where we thought we'd to be at this point. dani: hsbc cfo ewen stephenson speaking about the policy earnings. speaking to you, manus, i thought what was remarkable about your interview was his commitment and confidence around china, not just when it comes to capital, but people as well, saying we're still living

executive to hong kong. manus: absolutely. that was when we pushed the agenda, really in regards to regulation, the anti-sanctions regulation that may come up. ewen was for not moving, but he and noah put down their marker, this is where we are. he talked about a better credit cycle. i'm sitting on the call at the moment, everybody should jump on the tliv. it's all there. the buybacks will continue to be under review, but this is what caught my eye, looking for small deals in asia, open to acquisitions, that dreaded preparation line that they get executives to say. he did talk about, you know, salaries rising, but it was very, very bullish call on growth and on china. dani? dani: yeah, really remarkable.

again, fantastic interview. check out the tliv blog and will continue to hear from your conversation. turning to the u.s., were a bipartisan senate group wrapped up six weeks of negotiations on sunday with a $550 billion infrastructure package that they hope to put to a vote and pass in this week. bloomberg's derek wallbank joins us with the details, covering d.c. for a long time. you know the inner workings of their very well. is it fair to say that this is a done deal? or what roadblocks still remain? derek: yeah, certainly getting it through the senate, this looks to be pretty big to this point. you're talking about a 2,700 piece legislation. instead of a monster piece of legislation that represents what would really be the biggest infrastructure investment in decades, maybe. you're talking about $110

billion for new roads and bridges, safety $6 billion for rail, another $65 billion for broadband expansion. it's quite a big bill. one way of looking at this, to give you perspective, is every time legislation tells the government to do something, there are 4,277 examples of the word "shall" in this bill. i counted them. we are still going through the legislation so we'll see where it goes, but they've got enough to get this to the senate. the hard thing is getting it through the house because progressives are demanding action on a reconciliation bill that would include a lot of liberal priorities in exchange for their support for this bill. so, both of those things have to move in tandem. but right now, they've gotten over a pre-significant hurdle in the senate. manus: derek, i'm glad to know somebody is counting the numbers

of times "shall" is used in the document. that makes me feel safe. there's a lot of particles. what about -- pot holes. what about the debt ceiling? is it the usual noise or will we get there? derek: markets are not worried yet about a potential debt ceiling expiration in the fall. you're going to have to put something against ms past. you would have to -- against must pass. you would imagine it would have to be democrats doing it. manus: ok, thanks very much. dani: exactly, control. that's what we've got to do from now on. our thanks to derek wallbank. hsbc shares up 1.4% in hong kong trading. manus: they were up 5% going into numbers. they've pared back a little bit, so a chance to see why as the

day goes on, because that was quite a bullish outlook doubling after profits, very confident on the dividends. anna and the team and mark will take you through the european open. that's up next right here on bloomberg. ♪

anna: good morning. welcome to bloomberg markets, the european open. i am anna edwards. mark cudmore joins us from singapore. the cash trade is less than an hour away. here are your top headlines. hsbc reduces dividends. profit doubles from a year earlier. more from our conversation with the cfo, coming up.