manus: good morning from our middle east headquarters in dubai. i am manus cranny. dani burger alongside me at london hq. it is daybreak europe. not playing around. there are fears china's next crack down could hit video games. state media calling them spiritual opium. tencent plunges, losing momentum. stocks slide as he saw your --

bruce's treasuries. christopher waller says a decision on tapering could be close to hand. banks bouncing back. earnings season continues. the cfo of societe generale. a warm welcome to the show. the banks are winning. their future is tied to the yield curve. three cents a share in a dividend and guidance. solid guidance on the loans. the improving situation for bad loans. how did they hit the top line? good morning. dani: a beach when it comes to socgen, net income coming in at $1.4 billion. the estimate had been under one billion euros and one of the impressive things here, equity trading coming back strongly, reflecting european peers as well as -- but overall,

estimating they will move higher on these earnings. it is a very strong european banking season. manus: absolutely. checking in on some of the headline numbers for our viewers, when it comes to what tasks do you sit on, equity revenue up 10%. fixed income trading down 33%. that beats the street, wall street, because they dropped by 44%. it is about the guidance really around the cost of risk for the rest of the year that is going to set the agenda and the conversation you and i will have with the cfo but that is not the only conversation we are going to have, is it? dani: we will be speaking with the ceo of standard chartered and the cfo of saw in this hour as well. i want to quickly jump into the data. i want to point out what is happening in the yield. both of them charted extremely lower yesterday. there has been this russian to bonds. there is not a lot of supply out

there, the quiet summer months we are getting into and seeing a u.s. 10 year yield. real yield hitting an all-time record low. we are also looking at s&p 500 futures session getting back some of the losses it had yesterday, of .2%. in the cia chandra pressure. a lot of that has to do with what is happening with videogames in china specifically so let's get into that and also what happened with alibaba. july saw the biggest loss of value in a single month in five years that company. it has been start there. we are looking at some of the biggest winners in china, having a shift as well pit let's dive into this as well. juliette saly is going to cover all of these charts for us because this selloff is the focus.

a lot of these gaming companies. can you get into how much damage we are seeing in these videogame stocks and what exactly is driving them? juliette: absolutely. right on the get go of the open in hong kong when you saw tencent plunge the most in 10 years. 20 day volatility reaching the highest in 10 years, valuations here at any year low as he started to see some pretty strong words coming through from chinese state media. spiritual opium and electronic drugs, leading investors to think, after that crackdown last week, his online gaming going to be the next in the crossfire? it has blown through into other gaming stocks as well. it has been down significantly in the hong kong center as well. flowing through to the weakness in the hang seng tech index just when we started to we were

getting a little bit of calm. it has been faring better. another erratic move that mark cranfield pointed to. you start to have -- a lot of houses scramble how they are going to deal with these regulatory crackdowns. morgan stanley expecting the internet centers waiting to reduce on the msci china index over time. they are saying perhaps you can look at the new economic agenda stocks in china, the likes of green energy, cybersecurity, basic software, as we see the selloff in tech continue. when it comes to tencent, following the most in 10 years. the last three biggest falls that tencent has had on record have come within the last week. valuations in terms of the 12 month target, nowhere near what analysts had, suggesting 733 hong kong dollars where tencent should be in 12 month time. it is at 430 today. there is still some pretty bullish colons out there.

only one -- bullish calls out there. only one sell. manus: you have got to be brave, haven't you. it's like finding your passport. let's pivot to the politics in the backdrop. joining us now from beijing is our executive editor for greater china, john. it is the opioid that is gaming. it does not seem as if the politburo is stepping back in any way from their appetite. >> know, i do not think it is. what surprised to the market is we have had crackdowns on gaming before. a couple of years ago, there was a long period where the chinese government did not of any new titles for introduction to china . tencent put in a bunch of controls using facial recognition to make sure kids

under 18 were not playing their games that permission. kids under 18 are 6% of revenue for them so people thought maybe that past. that the scrutiny of videogames had passed. this article today in state media making that opium reference changes that and people are selling now and trying to figure it out later. dani: that is my question of how much is actually different here or how much of it is really just about a very agile market. an investor who is looking out for big changes, big sweeping changes from china. john: the government has not done anything yet. the government has not said anything yet. given the backdrop of what has happened with didi, what happened with the tutoring companies, and this drive to tackle some of the social ills that are plaguing china, in the communist party's mind, be it

data security, how much a carrier delivering food makes on an average day, all these things seem to be in the sights of beijing and things that they are going to tackle. dani: as you say, sell now, ask questions later. john leo in beijing -- liu in beijing. annabelle droulers. at about: --annabelle: the u.k. has changed the health service mobile app so fewer people will be told to solve isolate in an effort to limit disruption from the so-called pandemic. under the changes, only those who have come into contact with an infected person within two days prior to a positive test will be alerted rather than within five days previously. a surge in pings has caused havoc companies as staff are forced to stay at home. imf approve the biggest injection to help countries deal with mounting debt and the

fallout from the pandemic. the creation of the reserve assets, known as special drawing rights, is the first 250 billion dollars were issued just after the global financial crisis in 2009. the u.s. has reached president biden's goal of having at least 70% of adults at least partially vaccinate against the coronavirus about one month later than planned. san francisco and surrounding counties are reinstating march requirements in indoor public spaces regardless of vaccination status. new york city is recommending masks indoors but without mandating it. credit suisse has sold $3.75 billion of bonds as it recovers from losses stemming from the loss of archegos capital. the lender issued in the debt in three parts with durations of two years and five years. reddit sees -- credit suisse's exposure prompted changes including a pause in buybacks and dividend cuts. global news, 24 hours a day, on

air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus. manus: thank you very much. christopher waller weighs in on the debate at -- ahead of the friday jobs report. this is bloomberg. ♪

>> welcome back to "bloomberg daybreak: europe." i am dani burger in london alongside manus cranny in dubai. another fed official has weighed in on the taper debate. christopher waller says he could back an announcement by september on scaling back the

central bank bond purchases if of course the next two monthly u.s. reports show continued gains. his comments, head of friday's nonfarm data. joining us now to go over all of the economic picture is the s&p global ratings senior european economist. great to have you. good morning. there is more importance for waller on the jobs data coming over the next few months. do you place that same importance or is the data still cloudy for the next foreseeable future? >> i think it is key because we -- inflation lately but there has been a debate of how transitory inflation is so i think what the jobs report says is that the long-term drivers of inflation are getting there as well because for now, why are prices going up? it is a story of the base effect and then the pandemic has quite a big impact on commodity prices.

last year, for example. and we know the manufacturing sector has been facing quite a lot. prices are going up. if manufacturers cannot produce at the same pace as demands. what we are looking at is other factors going to lift inflation for now. is there a more important driver coming next which would be the job gains being quite significant? that is why it is quite key. manus: good morning. i think it will be more to do with the wages that come through. people are going to be drilling into second round of facts and are they present -- effects and are they present? i am drawn to the narrative from waller and buller, both from the st. louis federal reserve. waller is a trump appointee. it is interesting that the voice of dissent is coming from the st. louis fed. very strongly and fervently

about speed. my question to you is this. do you believe that there is such a regime change in the inflation narrative near-term that it warrants a much more aggressive taper then we are currently pricing? marion: it is difficult to say at this stage. the recovery from the pandemic -- it came in lower than expected. of course, there is also the fed that has changed its reaction function with strategy. markets are trying to find out that is. how long can inflation be above target for the fed? i will say we have seen it a little bit more to answer that

question. dani: let's talk about the risks to tighter policy. there is some speculation that perhaps the rba with their tapering program because of the threat of the virus. they do anyway. is this a more serious debate we need to have that perhaps the path is not tighter but it is easier, given some of the threat that continued in sections and shutdowns that the world has? marion: very good question. there is quite a lot of uncertainty around the outcome of the pandemic. obviously, we have seen the resurgence in most places in europe and the u.s., so how would that affect consumer behavior? maybe they will be a little bit more cautious so that they do not run the risk of being infected. so this is still unclear. there is a lot of uncertainty

around the pandemic and as you say, it might warrant policy for a wild. if we look at europe, example, the u.k. is -- in terms of the spread of the data. we see it has not really affected consumer behavior that much. maybe they have not gone out as much as they could have at least -- into lockdown. yes, maybe it is slow to recovery but it does not lead us to a slowdown in my view. manus: it's interesting when we look at the vaccine rate and rollout. obviously, the u.k. is one of the strongest. it looks like the u.s. vaccine rate is lagging behind europe. this could have significant

growth implications for next year even though found she's dead we are unlikely to see a re-locking down of the u.s. economy. vaccine will be the winner takes all, isn't it? those who hit herd immunity with substance, they will get the prize, won't they? marion: that is what we see in europe. that is the key. if you don't want to lock down again, you have to make sure enough people are vaccinated so they can cope with infected numbers of people that need intensive care. so far, it worked relatively well for europe. even if you have not reached that yet, if you have a substantial number of people who are vaccinated, you can just put some things in place that accelerates the vaccination process. in europe, we have seen a lot of

governments requiring those coded tests so it incentivizes people to get vaccinated. dani: yes, we certainly have seen european vaccinations start to catch up with the u.s. does that mean that the growth difference between the u.s. and europe -- it's all about vaccinations. that we should see growth start to percent -- the rate of growth start to surpass the u.s. as that looks like it might be heading towards peak growth? marion: it is quite interesting to compare the two areas because the u.s. -- in terms of the recovery. already in the u.s., gdp has hit its pre-covid levels and that is not the case in europe. and of course, the policy responses have been really different. we have seen a lot more fiscal stimulus coming out of the u.s. and europe, so obviously, that

boosts the recovery. may be with a faster vaccination rate in europe, you can see a little bit of a faster recovery in europe but i'm not sure that -- i don't believe that european -- the european economies will catch up faster in terms of levels from before the pandemic than the u.s.. the fiscal stimulus in the u.s. is just much bigger in my view. manus: thank you so much. marion amiot, senior european economist. coming up on the show, the rba sticks with the taper plan but says the economic outlook is coming -- in the coming months is uncertain. we are in sydney. this is bloomberg. ♪

manus: it is "bloomberg daybreak: europe." dani burger alongside me at london hq. it looks like the french have nabbed the first -- they are spending 3 billion euros. this is sanofi reaching out to do a deal. and this is in the biotech space. it is not a gargantuan deal but what it is is he or she, who goes first, and pulls the trigger, perhaps will win the evolution in the house space so course, you have seen that deal come through. we will see how sanofi traits. $38 a share. that is 30% premium. dani: it might be a premium but this is a technology which obviously has been very consequential in our post-covid vaccine life so doing a deal

this mrna push could excite investors. that premium, always very important for these types of deals, manus. manus: indeed. let's get back to what is moving in markets right now and that is the aussie dollar or the rba's aching with the taper plan. the statement came this meeting -- this morning and philip lowe says it will maintain its flexible approach for the rate of bond purchases had let's get more analysis. james mcintyre is with bloomberg economics. there is -- he is not wobbling at all on his taper. what do you make of it? good morning, good afternoon, good evening. james: good morning to you. it is afternoon here. governor lowe has no taper tamper so the rba has decided to

look through what has been going on and rightly so. there is very little detail for them to really get a handle on how impacted these local economies are going to be so they decided to stick with their tapering from september through to november and they will review things again at the november meeting. in terms of things that would change, what would push them over the line? none of the key things that would push them over the line have moved so bond yields have declined since they announced their tapering in july. the aussie dollar has moved from the 76 to 78 range that it has been occupying for the powder part of the year -- better part of the year. it is up to 74 after the meeting but things have been going in the right direction for them though there is probably little from where the rba is sitting today to cause them to do any sort of tampering with their taper program. dani: what could change that,

james? have they left the room to do that? james: they have. they have given themselves every flexibility in the world to decide to do what they want which is exactly what you need as a central bank from here so they said they will review going as the economy and outlook so it is really about when is the next time they are going to make those incisions? when can they? the sydney lockdown, which is 25% of the economy, that is scheduled to end at the end of august but it is likely to drag into september. it depends on how the vaccination rollout progresses which is moving at a slightly quicker pace than it has been thus far. in terms of things that would move, they have that flexibility to respond. if there is a big fiscal package, which is unlikely at the moment, that was to change

the amount of bonds on issue, they might respond to that. if yields were rising or if the current was appreciating, which given where commodity prices are, actually iron ore prices and some of australia's other key commodities, the currency should be a lot higher. things are sitting exactly where they probably wants them from the qe perspective but if they were to change, that is what would shift the rba. dani: james, thank you very much, james mcintyre from bloomberg economics. you can follow the latest reaction from the rba decision on our tliv blog. i want to quick check on tencent starting to pair some of its losses. spiritual opium, the gaming sector. manus: what electronic drugs -- online gaming for them, 32% of their revenue. social networking is 27%.

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>> good morning from bloomberg's european headquarters. i'm dani burger alongside manus cranny live from dubai. this is "bloomberg daybreak: asia: europe" fears china's next crackdown could hit video games with the state media calling them spiritual opium. the feds christopher waller says

a decision on tapering could be close at hand. plus, banks bouncing back. our conversations with the ceo of standard chartered and the cfo of socgen coming courtly -- shortly. the bank spurred to buy back $250 million of shares and pay a small dividend. bringing us an exclusive interview is rishaad salamat joined by the ceo of standard chartered, bill winters. >> thank you very much. bill winters with me, wearing a mask today because he is under regulations as he is quarantining. bill, great numbers. bill: very nice to be here. we have a bunch of things going on. the big change is loan impairments, which were down significantly. we did some pretty cautious

provisions last year at the early stage of the pandemic. relatively little of that has turned into actual losses.we did not release a lot of those provisions. what we had was very low levels of losses. each of our underlying business strategies is coming true. we have a big focus on our cross-border business focus. a big focus on our affluence proposition in hong kong and the rest of our markets, which is continuing to grow at a record pace. we have had fantastic results in hong kong and china. despite the challenges of the pandemic and the issues in hong kong in particular over the past year, we have turned in very good results. those things all drove the gains. that is all offset by the one thing that we knew coming in which was low interest rates. zero interest rates is bad for banking/ we knew that coming in. we were able to offset a lot of that. >> we are talking about a right back. i think it is really dumb

ultimately to governments' fiscal support or could we put it on the doorstep of the pandemic and the economic crisis that has not been as bad as the provision for? bill: the thing that is different about standard chartered, we did not release material reserves, but what we did have was no losses. which is speaking to the very high credit quality of the portfolio. is that helped a lot by the government support programs? absolutely. it is also helped by low interest rates. low interest rates take away from our income, but support our credit portfolio. >> second quarter, many banks, fantastic. the third quarter, not going to be quite as good, not quite as good as the previous quarter. are you sensing that? bill: no, we feel pretty good about things. we had a stellar first quarter. things slow down in april, picked up in may, picked up some more in june. business activity continues to

remain pretty robust. there is always an element of seasonality. we know august tends to be a slow month in particular. we will see if that comes through this year. generally, the business momentum feels good. >> how does the delta variant play into this? bill: we live in fear of what comes next. we have a big operational hub in india. our business was hit very hard. in the first half of the year, our indian results are extremely strong. good income growth. >> percentages? bill: 20% increases in the key business lines in india. that said, that has been very encouraging. the indian business has demonstrated resilience through difficult times. but it is not over. we are going through tough times in indonesia, malaysia, some of our african markets. what relatively little of this has translated into loan losses, it is possible that could manifest itself.

governments will also find it a little bit harder to respond to this at some point and keep things on the right track. but so far, so good. >> how would the bond repurchase program in the u.s. being reduced, tapered affect your business as we move toward may be a higher interest rate, and normal environment? bill: i will focus on where interest rates are going. we are most sensitive to the short-term interest rates. it is also easier for us to make money if we have a steep yield curve. relative to when we spoke in february, our yield curve is quite a bit steeper, despite the fact that longer-term rates have come back down. if we get an easing backup of tenure rates or longer-term rates, which there is no sign of right now, i will say -- >> 1.17% for a 10 year yield is incredible. bill: i think it also reflects the fundamental concern about the economic malaise. that may be the very good times

are petering out a little bit, which may be true. we have seen it in china. china boomed in the early post-pandemic recovery days and now it is normalizing. that is fine. normal is fine. i think it will help to avoid some of the bubbles we could come across anyway. and hopefully, we will get back to a little bit more of a normal yield curve over the last couple years. >> taxpayers have to foot the bill of this fiscally speaking. that dovetails into the imf and talking about downgrading growth forecasts in this part of the world. how do you make provisions for that? bill: governments do have to pay back the money that has been borrowed, but the cost of carrying that debt is very low. most of it was borrowed a to zero interest rates, or borrowed a negative interest rates. the rush to pay that back is not too pressing. we would expect to see a

normalization of economic activities. we have had a rolling boom on the back of stimulus and covid recovery and that is going to ease. the chinese stimulus is already easing up. that will normalize global growth. >> talk to me about china. the geopolitical wins swirling around here it is possible to ignore given the growth that it has. do you see these political changes and geopolitical machinations, if you will, making you think about let's concentrate a bit more on asian -- asean? bill: our business is based out of singapore and has been for a long time and are chinese business is based out of hong kong, shanghai, and beijing, as it always has been. i would say, increasingly, out of shenzhen and wenzhou,, as well, where we are adding materially in the greater context opening up the wealth

connect between hong kong and chinese province wealth management customers. geopolitical tensions are always on our mind. the fact is the chinese economy is going gangbusters. the chinese connection to the rest of the world is increasing, not decreasing. the way that supply chains are reconfiguring within the markets that standard chartered serves place to all of our strengths. as supply chains are reconfigured not just by western companies, but also by chinese companies, in some cases into africa, the opportunity for us to provide the financing, the associated risk management is very strong. if the big reason for our record results in china this year. >> what are you doing about self retention? places like hong kong, we have a lot of these bno passport holders who may be leaving. are you seeing any evidence and that?

>> we are not seeing immaterial migration of money or people. i read the things as you are, people are leaving, i think people have always left from time to time. people are always coming back in. hong kong is the place to be if you want to participate in the chinese capital markets. in our case, we complement our hong kong business with our shanghai business. they are almost the same operation these days given the importance of the money flows back and forth. hong kong is a thriving commercial center and part of the reason that i'm here. i was here for quite a bit in the fall as well. this is the hub of the chinese capital market. i don't think there is going to be any change anytime soon. >> share buyback dividend being reinstated, but looking at that, wouldn't some say that his money better spent on achieving your esg targets and where are you on your esg targets? >> very happy to restore the

interim dividend. we completed the stock buyback we announced last year and i we are announcing a new one. this is all going in the right direction. we are also investing the most we have ever invested, $1.9 billion cash, into our core business. we look at our investment program every year. it has increased by 2.5 times over the last five years. we are investing in our business. part of the investment is making sure we are completely compliant with our own esg objectives, sustainability broadly defined. we bury commitment to be net zero by 2050. 95% of our emissions are coming from our clients, so that means working with our clients and providing them the financial assistance they need to effect their own transitions to net zero. we have also been a thought leader on a number of fronts. we realized a long time ago that the impact that we can have in the markets where we operate -- for example, the impact of

building a new solar power plant in india is about seven times as impactful as building the same plant in europe, because you are displacing really dirty fuel in india or in ghana or in sri lanka, where as in europe you are probably replacing much cleaner fuel. we can have a much bigger impact with the $40 billion that we are providing in terms of financing for sustainable projects, increasingly also to steel and cement and other heavy industries. in addition to all that, providing some thought leadership, making it very clear commitment to net zero. we said we would take our net zero transition plan and put it to our shareholders for a vote next year. i think it is pretty cutting edge. >> another buyback coming up in the fall? bill: what we said as we would manage our capital very actively. >> i would hope so. bill: absolutely.

with this set of announcements we made today and the buyback, we will be operating within our range and there are accounting changes coming as well that would have us operating within our range. we will have plenty of capital to continue invest either organically or in organically. if we get interesting opportunities along the way, we will do that. if it turns out there is nothing to invest in, which would be disappointing, we could resume buybacks or increase the dividend. >> thank you so much for joining us. bill winters. back to you in london and dubai. manus: thank. great conversation with bill winters. china going gangbusters. taking advantage of those supply chains as they change. dani, a quick couple of lines on bmw. margins. there margins are going to be at the upper end of the range of 7% to 9%. the margins are on the up.

motorcycles, they are delivering a significant number more motorcycles, which is good news. i'm not really a motorcycle kind of guy, but the shortages are there. are you a motorcycle girl or a bmw? dani: i'm absolutely more of a gives me four wheels, give me doors, give me a roof, definitely not a motorcycle girl. it is significant people are buying them. even though bmw flagging that they see a chip shortage, higher on material prices to impact their second half. the cash flow outlook depended on the chip picture. this is something we hear from a lot of the carmakers. the supply bottleneck is going to impact their outlook. manus: absolutely. above the prior best to date figure. we will be keeping our eye on the dividend flow through bmw. more to come.

socgen lifting the outlook. where have you heard that before? we speak to the cfo. he joins us now. the ceo of societe generale. ♪

manus: it is daybreak europe. i'm manus cranny in dubai. dani burger is alongside me. socgen has delivered their earnings, giving an upbeat outlook for the year. a rebound in equity trading fuels the beat. the man with the numbers, the societe generale cfo. great to have you with us. the market has your numbers. the net income are very strong. doing well and equities. you beat the americans.

there is the moniker. you cut the cost of risk for the rest of this year by 10 basis points. is this as good as it gets? where was the most material improvement in the loan-loss provisioning? >> good morning. thank you very much for having me this morning. in fact, as you pointed out, we have very strong numbers. when we look at the numbers over a long period of time, there is the case that this is the best quarter ever for societe generale. the question on the cost of risk. what we see now is a very low level of defaults across the board and across sectors. and that is quite striking. despite the fact that we did not do any buybacks, so we keep a hefty level of provisions

pertaining to stage one and stage two provisions outstanding, we are at the very low cost. what we see going forward is that this should remain at least for the year. dani: when you say it is the best quarter ever for socgen history, quite the statement, currently your payout ratio is sitting at about 50% of underlying net income and that includes share buybacks. given the strong results, do you see that figure in payouts pushing higher? >> listen, we commit to what we have announced. i think it is what we want to deliver to the market. we have announced a share buyback in the second half of the year. that is by the ecb. in the years to come, the

payouts which we provision for a re 50% of underlying results, increasing the portion of share buybacks. so long as we trade where we trade, we consider it make sense and creates value for shareholders to deliver distribution buyouts at least for the portion of the share buyback. manus: the advisory business is looking healthier. this is something that came through from the other banks we have spoken to. give me a sense, as we reopen in europe, do you see a healthy pipeline never advisory business? are you most confident? talk me through the fic business. we are not expecting a major shift in rates, but we are expecting a taper. the environment on the pipeline. >> as you know, it is a bit different from the average u.s. bank.

less m&a and primary ecm. on the financing side, where we are strong, renewables, infrastructure, we see a very strong pipeline. [indiscernible] all of the investments that governments and companies have to do. if we look at the u.s., asia, and europe. [indiscernible] we see a willingness by big corporate to use their cash amounts of the balance sheets to complete some strategic issues. there is a case that the prices are not necessarily as high in certain areas leading to opportunities. [indiscernible]

you mentioned we benefit from the mixed effect. a lot of hedging particularly from corporate's, and less [indiscernible] what we expect [indiscernible] dani: what about when it comes to the equities business? that had a very strong bounce back after a strategy change at socgen, which saw coping with weaker derivatives performance of the peak of the covid era, and a more intense focus on corporate banking. does that roadmap and plan

change now that you have such strong results in equity trading under your belt? >> not at all. we want to rebalance the capitalization for markets to corporate's. within markets, we want to decrease sensitivity to heavy market shocks and we decrease that sensitivity. [indiscernible] thirdly, we want to lower the breakeven point so that we reach -- [indiscernible] manus: william, what goldman sachs were paying their junior bankers, are you raising the pay for junior bankers? i might apply. are you raising pay? [laughter] >> we feel the competition for

junior bankers and we will adapt as appropriate. it is a question of work environment. we were among the first to announce that we will accept remote working. [indiscernible] dani: all about that work-life balance. thank you so much for joining us this morning. societe generale cfo. coming up, we keep talking about the banks and earnings. wrapping up the key earnings news for you next. this is bloomberg. ♪

dani: welcome back to bloomberg daybreak.

i'm dani burger in london alongside manus cranny in dubai. let's get back to standard chartered. reducing credit losses that helped standard chartered beat on profit in the second quarter. we heard from ceo bill winters earlier in the program. bill: we had a stellar first quarter. things slow down quite a bit in april, picked up in may, picked up some more in june. i would say the level of business activity continues to remain pretty robust. dani: the beats keep on coming for the banks. standard chartered's strong business in april. we spoke with the cfo of socgen. manus: less release packs for standard chartered, but up some. you can catch the full interview on bloomberg.com later on. gangbusters in china.

hong kong will remain the center of capital, won't they? dani: yes, it absolutely will. that is that is it for us. the european open is up next. this is bloomberg. ♪ and there you have it -

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anna: welcome to bloomberg markets "the european open." mark cudmore joins me in singapore to take you through all the market action this hour. the cash trade is less than an hour away. not playing around. fierce china's crackdown could hit video games. state media calling them spiritual opiates. stocks