s lending arm the european investment bank plans to spend 4000000000 euros on infrastructure and social programmes in africa this year. analysts say it's in response to the flood of chinese investment to the continent. during a visit from the line expressed optimism about the african economy saying growth and increased cooperation could also benefit europe africa is home to the fastest growing economies of the world. and. your nations community of nations are becoming more and more united if you look at the african peacekeeping missions to the new free trade area and they're interested in and just like you you want to be the master of your future so there are a lot of common points we have to discuss and where we can find common path towards the future i truly believe that a lot stronger africa will be the stronger we will be to let's go over to marina strauss our correspondent in as our bar has been following the talks for us closely . how does fall the line envisage a stronger africa. oh she was an equal partnership what i look at 1st mention peace is sex is ringback just your office

financial institutions those who have asset managers, insurance and banking institutions european investment banks have left a lot of market shares to the american competitors the bank is a business of skill. you can't achieve a good return without massive scale in global markets. so it is almost a lost business for european banks it would have to be more like utilities. that's how you should approach them they'll really value names now >> it is important to mention these banks that were heavily regulated and were slightly different. the europeans suddenly realize they don't need that they need strong banks for its economy. important for the economy is to have strong banks. they are getting less regulated now. that should help them coming forward. >> certainly, that is much needed we'll leave it here. a return to investment thank you for joining us patrick, stay with us. if you want to get involved in our conversation, you can tweet us @streetsignscnbc. >>> coming up, the latest on the coronavirus deaths and new coronavirus deaths and new cases. ♪ don't just plan to retire. plan to live. an annuit

to give out state aid that struggled any development potential local hurt we went to the european investment bank and elsewhere but all the doors will close because we had the accusation of illegal state aid hanging over our heads the only solution was to allow local to go bankrupt and take the debt with it for the foreseeable future the world needs stainless steel and nickel is used extensively in car batteries that could mean a bright future as europe abandons the internal combustion engine but to get local needs an owner with deep pockets jumps out opel us al-jazeera a lot him. and you'll find much more on our website the address that is there a dot com. this is all just there and these are the top stories the world health organization has warned the coronavirus is escalating quickly and must be tackled a warning comes after an increase in cases in south korea italy and a number of middle eastern countries this is a rapidly escalating epidemic in different places that we've got to tackle super fast to prevent a pandemic i mean it's actually we're trying to demonstrate here's where this goes is

give out state aid that strangled any development potential lock or hurt we went to the european investment bank and elsewhere but all the doors were closed because we had the accusation of illegal state aid hanging over our heads the only solution was to allow larkham to go bankrupt and take the debt with it for the foreseeable future the world needs stainless steel and nickel is used extensively in car batteries that could mean a bright future as europe abandons the internal combustion engine but to get local needs an owner with deep pockets jumpstart opel us al-jazeera. a court in france has delayed the fraud trial of a former french prime minister francois feel until whedon's day after a request from fee on lawyers he's accused of embezzling public funds to give his wife a fake job in his office the philippines national biggest broadcaster has been granted more time to operate as it awaits the renewal of its license the president roderigo to 30 there said repeatedly he wants to shut down the t.v. network which has criticized his policies the 25 year license was due to expire at the end of ma

to give out state aid that strangled any development potential local hurt we went to the european investment bank and elsewhere but all the doors were closed because we had the accusation of illegal state aid hanging over our heads the only solution was to allow locker to go bankrupt and take the debt with it for the foreseeable future the world needs stainless steel and nickel is used extensively in car batteries that could mean a bright future as year of abandons the internal combustion engine but to get the lock own needs an owner with deep pockets jump start up a loss al-jazeera like him. still ahead on al-jazeera in sports one same year and then for official says games organizers are in a race against time to make this year's games happen and he's here with that still . time off for his andy thank you so much ken well as samia olympic official says the spread of corona virus is now a threats of issues tokyo games dick pound believes organizers have a 3 month window to saw the fights of the july vents the pound is the longest serving member of the international olympic committee he says. coro

they are cutting the european investment bank. a capital heavy part of the business and it is underperforming. they are reinvesting into other areas where they have better growth opportunities trying to get profits up. europe is a very competitive banking market. one of the things we look for in the banking industry is a good banking market. that is exactly what europe does not have. we much prefer the opportunities in the u.k.. ratios,strong capital the stress tests last year were well conducted and proved how strong they are. look at the underlying economic data in the u.k.. that seems to be much more supportive of an economy that looks like it's going to recover. the other part for hsbc they are really struggling with his they are going to have problems in asia with coronavirus. we are already seeing the bank out there providing repayment holidays. that is going to have an impact. manus: they have set a new target on return on equities. to step back from the target they had. you have challenges within credit suisse. we don't kn

the company had to write—off more than 7 billion dollars in its european investment and commercial banking a ruthless industry where they're constantly looking to make more and more money. as you said, we're talking the billions of dollars per quarter, so this is something where they're constantly having to evolve. they're looking at their market and saying, "where is our strong point?" well, half of our profit comes from asia. europe's a slowing economy, we're not seeing the kind of growth that we were expecting to be generated over the last couple of years. the us, massive investment banking. in this competition that we can't really compete with. deutsche bank follow suit as well. this is the latest ba n k follow suit as well. this is the latest bank to accept it can't compete on those levels. it's time to go back to our core markets where we make most of our revenues and become massive players in this region. now the bank employs 235,000 people worldwide. its chief executive says that number will fall to 200,000 over three years. and hsbc isn't the only bank laying off staff in europe.

there have been cases where european banks have done well, and we will talk about the sector as a whole, where european banks have done well in investmentbut in some cases, the outperforming has been left to the united states. this transatlantic divide, is this something you see continuing as an investment team? an investment theme? alain: is not only interesting for the bank, but for the sectors. as we are listening, there is more on the u.s. side. higher inmargins are the u.s.. anna: are you talking about tech? alain: i am talking about every single sector. u.s.,erage is 16% in the around 10% in europe, 9% in japan. europe against u.s. it is across the sectors. that you see oligopolies allow them to deliver these higher levels of profitability. down: hopefully we cool sooner rather than later. the next big thing would be the u.s. elections in november. within the elections is embedded a few large companies, with their oligopolies. have your question whether there is someone in the democrat party who wants to progress. it affects the competitive landscape the u.s. against the rest of the world. anna: what is your biggest conviction as

represent around 15% of the global workforce, but the axe is expected to fall in its european and us investment bankingillion, but profits have been hit by a number of factors. chief executive noel quinn warned of the impact of the coronavirus — remember hsbc makes most of its revenue in asia. he also blamed uncertainty over the eu's withdrawl from the eu, with consumers and businesses putting off spending or investment until there was more clarity and historically low interest rates around the world have made it more difficult for the banking giant to generate profits. craig erlam is senior market analyst at 0anda. great, nice to see you. i is the city reacting? many more jobs going than expected. much more than expected. it is difficult to get a gauge on what specific items that the city has reacted negatively to. the shares are down more than 6%, so not too severe, but obviously not good. thejob not too severe, but obviously not good. the job losses are far more severe, 35,000 or thereabouts, rather than 10,000. no share buy—backs for the next two years. 0bviously, buy—backs for the next two years.

will go, they took the city by surprise. 0ne in seven jobs will go, it's expected the european and us investment bankingthe brunt but the bank hasn't been specific about where the cuts will come. all of this is the bank records pre—tax profits of just over of this is the bank records pre—tax profits ofjust over £10 billion, down by more than a third on the year before, blamed on several key issues. chief executive noel quinn blamed the impact of the coronavirus, given that hsbc makes most of its revenues in asia. he is also blamed uncertainty over the eu withdrawal —— the uk withdrawal from the eu, with consumers and businesses putting off spending or investment until there is more clarity. and historically low interest rates around the world have made it more difficult for the banking giant generate profits. analysts say the cuts will be a smaller bank, more focused on economies in asia. it depends on where those staff numbers are being lost. if they are in unprofitable parts of the business, then naturally you could argue that's a benefit because you're not only not losing money any more but you are s

bank's global workforce to around 200,000. the cuts are much deeper than forecast, and they did take the city by surprise. one in seven jobs will go. it's expected the european and us investmentfic about where the cuts will come. all of this as the bank reported pre—tax profits ofjust over £10 billion. that is down by more than a third on the year before, blamed on several key issues. well, chief executive noel quinn blamed the impact of the coronavirus, given that hsbc makes most of its revenues in asia. he's also blamed uncertainty over the uk's withdrawal from the eu, with consumers and businesses putting off spending until there's more clarity. and historically low interest rates around the world have made it more difficult for the banking giant to generate profits. analysts say the cuts will mean a smaller bank, one that's more focused on stronger economies in asia. it all depends on where those staff numbers are being lost. if they're in non—profitable parts of the business, then, naturally, you could argue that actually is a benefit because you're not only not losing money any more, but you're also saving therefore on the headcount. investment banking is an example — n

bank, hsbc, has announced it's to cut 35,000 jobs globally over the next three years. hsbc has seen its annual profits drop by a third, to around £10 billion — largely because of its european investmentcial banking operations. the bank's interim chief executive, noel quinn, warned that it was "not delivering acceptable returns. " it's the third restructuring plan in a decade. transgender patients are choosing to self—medicate with hormones bought online from unregulated sources due to waiting times to see nhs specialists. in many areas, some patients wait over two years to be seen, new figures seen by this programme show — england's target time is 18 weeks. nhs england said it had increased investment to respond to rising demand. law student kara told the victoria derbyshire programme she began buying oestrogen last summer online, to begin her transition. it obviously was my choice, but i feel like i've been basically forced into it, because in no way, shape orform do i want to be taking hormones not under the guidance of a medical professional. the father of wikileaks founder julian assange has told this programme his son would face what is effectively a "death sentence" were he sen

crises and in this latest year we have seen a problem coming out of essentially the european investment and commercial banking exciting language but they are talking about historical goodwill. in plain english they were too optimistic about the path of the global economy and what it would mean for their earning so they have adjusted expectations and they are not doing so well. this all underlines why they are shifting focus on going through a massive restructuring, what hsbc is saying is it needs to move back towards its back red. it was said about the hong kong and shanghai banking corporation and now they are saying that most of their profits come from asia and they had to concentrate on that and focus on cutting some of the loss—making arms. that and focus on cutting some of the loss-making arms. do we know anything about what the job losses will be in the uk? the bank is saying we don't know. when you talk about 35,000 job losses, i spoke to the chief executive and he said we need to reduce our headcount closer to 200,000, it is currently 235,000 across the globe, to be consistent with saving that money.

alan: to be a global investment bank, you have to ask yourself why aren't the european banks troubling- field is notaying level. alan: that is a fair point. he's one it around from -8% to positive 8% in terms of equity -- he swung it around to positive a percent in terms of equity. there is plenty of yields on offer in europe. manus: we will get to brazilian bonds before it is all said and done. hosthiggins is our guest with us this morning. jeff bezos has committed to paying a $10 billion climate change fund. this is bloomberg. ♪ nejra: good morning from the city of london. at ourwe are here european headquarters. top stories this morning, apple says it is unlikely to hit quarterly revenue target as the coronavirus ways on production. global stocks and the 10 year yields fall. hsbc stockholm shares drop as it announces its restructuring charge. suspend buybacks. the ceo gave his take on the impact of coronavirus. >> i think we are going to have to take additional provisions this quarter. on,result of that is a call how long does the virus continue? manus: sterling tips as boris top en

bank's global workforce to around 200,000. the cuts are much deeper than forcast, and they did take the city by surprise. one in seven jobs will go, it is expected the european and us investment chief executive, noel quinn, blamed the impact of the coronavirus, given that hsbc makes most of its revenues in asia. he has also blamed uncertainty over the uk's withdrawal from the eu, with consumers and businesses putting off spending until there is more clarity. and, historically low interest rates around the world have made it more difficult for the banking giant to generate profits. analysts say the cuts will mean a smaller bank, one more focused on stronger economies in asia. it all depends on where those staff numbers are being lost. if they're in non—profitable parts of the business, then you could argue that actually is a benefit because you're not only not losing money any more, but you are also saving on the head count. investment banking is an example — it is capital intensive, so it requires a lot of funding so the return on that is lower than other parts of the business. but the salary count for the headcount is much higher than other parts of the business, so you coul

stabilizes the banking system, then european banks come very attractive -- banks become very attractive. once that happens, we can see good price-performance and investmente the one you just described and many more. the penalty of the negative rate that went down to the retail depositor has essentially been neutralized back up to zero. we have to see because we have to watch it be implemented, but the early signs are positive. vonnie: you have some monetary policy experts on your team. saying the federal reserve will need to do in order to keep the economy stable and push inflation to where it is supposed to be while keeping things relatively cool internationally? david: we have that discussion internally all the time. the issues are these. we see the fed. it is in a pathway. we know they are likely to continue positive increasing sizes of their balance sheet into the summer. jay powell has alluded to that. the next question is, what is the composition of the assets? how much will be in treasuries? how much will be in notes and bonds? there's a technical element to that and how it impacts markets. the transfer mechanism to some believe it is still alive

european banks has done well. we thought results today that retail banking looks really solid. tend to be dragged down by investmentnd trading activities, so that needs to still be readjusted, and may be more downsizing is required, but i think there are some core businesses that are really good. if you look at european bank balance sheets, they are very solid. they look in good shape, like they could survive some beating if there was a serious downturn in the markets. the credit quality remains very strong. they've increased their lending stance, so that is strong. the return on equity in the is upbeat.it alix: what do you make of all of the scandal stuff, whether it is credit suisse or barclays? we learned there that -- we learned now that there is a probe with jes staley's relationship with jeffrey epstein. john: it is generous to say that he resigned as ceo of the bank. he was shown the door by the board. in zurich, there was a big uproar dominating the news. i think they all want to put that behind them. there's a question of whether he knew or whether there was an internal probe he knew about. if he didn't kn

investing u.s. banks, not the state of new york or california. when they look at europe, they invest in an italian bank or german or french. they don't look at europeaning union is making sure we have european banks. francine: do you think there is a push in germany to put the money where they said they would do it and go through with it? jean pierre: i think it is unlikely we will see a banking union as far as the european deposit concerned. francine: talk to me about regulatory hurdles. have we seen the biggest burden when it comes to cost and regulation? jean pierre: we have seen the said, they have been very clear and transparent about what they are. visibility and understanding about this regulatory insulin -- evolution, it is key and the ecb is going in the right direction. it is perfect. francine: when you speak to investors, what do they ask about the most? jean pierre: distribution, increase of pay out to 50% last year that we might consider in 2021. i think it is important for investors. of course they look at the development of finite credit. we finished our first plan and increased our written liquidity by was three times. increased -- th

caused us to consider our rules, giving more investments into a more coordinated fiscal stance among european numbers states. we can't leave the european .entral banknie: fiscal policies have been procyclical until now. if the going to be latitude in coming years for that stance to move, for fiscal policy to become more countercyclical? mr. gentiloni: that is the point of weakness of our regulatory framework. indeed, it was effective in reducing deficits. also not effective in having countercyclical policies. , consideringtask that we will also have to have an enormous amount of investment to tackle the challenges we have in front of us. guy: are you hinting at the fact move to become carbon neutral by 2050 may lead europe toward relaxing its current fiscal rules? does a green push open the door for more fiscal flux ability? -- fiscal flexibility? i think this is absolutely the core point of the public debate we have with member states, with parliament, and with stakeholders in the next month. sure that if we are serious in the challenge of neutral europe for carbon need ans in 2050, we enormous effort of investment, and this should bring us not to

investment banking unit and his departure. this is bloomberg. ♪ anna: welcome back to the european open, 30 minutes into thursday's trading day. london alongside matt miller in berlin, and the u.k. market under pressure this morning. matt: let's look at the stoxx 50600 so far and what moves we have made. a ton of earnings, plus you have the increased number of cases inth the new methodology testing for coronavirus. so much going on, and a little volatility. for the most part down, and most groups falling. oil and gas the biggest losing group but that is really an ex dividend story as royal dutch shell and bp both go ex dividend. the only stocks gaining, real estate is up, industrial goods and services, health care, utilities, so kind of a defensive group of stocks on the rise. everything else is down. let's get the bloomberg first word news with laura wright. laura: in china, coronavirus cases jumped nearly 15,000 overnight, about a 45% increase, due to a new methodology for counting infections due to a new methodology for counting infection. china is removing local officials amid deepening concerns about efforts to limit info

actually jumped 63%, beating some european rivals, like u.b.s., deutsche bank, and actually putting b.n.p. paribas close to some morgan et rivals, stanley. the investment bank will keep gaining market share in 2020, in terms of retail, the french retail was actually quite resilient, despite the strikes that we've seen in france at the end of 2019. however, if you look at the outlook, the return on equity, which they are targeting at 10% for 2020, slightly disappointed investors, that's why the shares are not moving that much in either direction at the moment. that's because, of course, of the low interest rates environment that's continuing to weigh on lending margins. and finally, we got in the coronavirus. b.n.p. paribas say their presence in the wuhan region is quite limited. they are, of course, very present in the rest of asia pacific, but so far seems to be beginning the january he has seen a continuation of business. alix: thank you so much, caroline. now we turn to the u.s., focusing on ford, up to a pretty rough start in 2020. forecasting profit well below analyst estimates. shares falling in premarket trading. joining me with more from detroi

investing capital in that rather than in the new vision fund. masayoshi sonough is open to that. production fell 2.1% in december, putting the european central bank on high alert. laura cooper of mliv joining us now. reporter: european industrial production plunged in december, and it was 2.1%, slightly exceeding market expectations for a 2% drop. this is largely telegraphed ahead of time in individual country reports, but ultimately, it does set up for a disappointing fourth quarter gdp report on friday. the euros continues to struggle for a catalyst out of that $1.09 mark against the dollar given the growth headwinds ahead because the economy is struggling to gain traction, despite some more positive sentiment indicators for january. the ecb is going to be faced with these potential virus fears and they knock on effect to growth, so we are likely to see the euro struggle for some upside from here. elsewhere, we also had greek 10 1%, thet yielding lowest on record. this just reflects the search for positive yield within europe , and as well, the gradual return of normalcy for the economy after nearly a decade since the debt crisis. romaine: our

investing in clients and improving anti-money laundering efforts. it is also facing pressure from negative rates. that is your bloomberg business flash, francine. francine: european central bankesident christine lagarde says of crisis fighting has left central banks with few options. speaking to the european parliament she says the domestic economy remains resilient. earlier, former ecb chief economist warned about the side effects of negative rates. >> you also have to consider the economy as a whole. little employment gains, the unemployment rate in germany is 3.5%. if you have a job that is more important, notice it is true, i don't deny that in the future you have to think carefully about the persistence of these policies in the future to continue qe, continue with negative rates. i see it more as a cultural problem that the negative rates are persistent for five years, six years, seven years? in ave been educated civilization where we say time is money. years, withhan 10 negative rates, is really a cultural problem. the question of inequality, as you mentioned. francine: that was the former ecb chief economist. still with us, andrew olson. we heard christine lagarde say

investment conference. tom: guy johnson, thank you so much a method london school of economics. coming up next, the conversation force her to lynn and all of european bankingit suisse. he has been very supportive of the present chief executive officer amidst management turmoil. this is bloomberg. ♪ erg. ♪ francine: this is "bloomberg surveillance." tom and francine from london and new york. a power struggle at top is coming to a head. tensions are mounting between the chairman and the chief executive. david herro, deputy chairman at harris associates, is one of the top investors in credit suisse. always, fors joining us. first of all, are you standing by the chief executive, tidjane thiam? thed: let's look at evidence. tidjane thiam has been chief executive for about four and half years. he turned what was an under earning business into one that is now very strong, from a capital position, and is growing its wealth management business and its stable earnings stream. a lot of volatility we used to see out of the global markets business is gone. he has greatly, greatly improved the operations and the efficiency of credit suisse bank. so we have this issue th

european bank for reconstruction and development. if you're familiar with the imf and on down. if you put all the rest together, the world bank does half of the total in terms of climate and environment investments and countries. so the types of things that are done are adaptations of people are prepared for climate changes and extreme weather conditions and our lives are preserved, there's disaster relief, i was in mozambique in april after the cyclone hit. in the world bank provided, those are tools. a lot of times the biggest thing that can be done is responding quickly. then there's preparedness so we strongly encourage and work with countries on ways that they can be prepared for change. there is also mitigation. we think about low carbon, around the world still layering anomalies within the carbon environment. germany continuing to burn a lot of coal, pakistan still signing contracts for new coal and other parts of the world still in expansion of that and a very sluggish -- a lot of developing countries that are still have such difficulty in their electricity sectors that they're using bunker fuel and diesel fuel to make electricity. it's one of the most costly pot under parts of the highe

axel: no, we are absolutely not under pressure, but investments our first choice for every european banke next level. i have had many discussions with leaders at the global level. banking is changing dramatically. the first signs where you see technology takeover is retail banking, but we are the largest and only global wealth management. wealth management is becoming a it will notess so be seen as something you are forced to do. if you do not do it with full conviction, you have failed. we need somebody that can lead that transition. tom: we have had wonderful dinners indavos talking about economics, less than graceful in zurich. your competitors have been a bit distracted. is this an opportunistic time for ubs with their heritage to go out and acquire and get fuller scale in wealth management? axel: we are 100% focused, laser focused. i can only look at what we do. i will not comment on cowere focused on ceo transition and taking the bank to the next level. this is our key focus and everyone, including our new ceo, will play a key part in the transition. this is what i as a former regu