stuart gulliver's seven-year c coming to an end.d with a rare failure to live up to expectations. he will be replaced tomorrow morning. to the group finance director about the numbers. >> we have always taken a somewhat conservative stance when dealing with troublesome credit. we believe largely in the fourth quarter of the year. expect to go into 2018 with a fairly clean slate. analysts expected another buyback today. 12%-13%.et is why did you decide that today is not the date to do another buyback. >> you're absolutely right. well above the top and that we have targeted -- end that we have targeted. we are targeting some alternative tier one in the first half -- tier one issuance in the first half of the year. the first have tens to attract more interest in the instrument as well as better pricing overall. there is a regulation with respect to some of our listing authorities that you cannot do buybacks and -- capital instruments at the same time. our perspective about how we manage our capital has not changed. buybacks are still v

some of the comments coming through from gulliver, good results. it demonstrates strength and the yeartial for hsbc fiscal -- that is in line with estimates ahead of the announcement. contextt more on a lot of these numbers with stephen engle. later on in the program, we will be speaking with the hsbc finance director. he is going to be speaking to bloomberg at 6:00 a.m. london time. hsbc with the latest fourth-quarter numbers, so what exactly have analysts been telling you? stephen: i mean, these are pretty much in line. you are right about the adjusted pretax number. just a little bit below forecast, but a fairly good set of numbers for ceo stuart -- store double or -- stuart gulliver. takeovering will take as groups your tomorrow. a lot of this news is coming across the bloomberg terminal. this.ntioned i will also mention that the dividend coming in at $.21 per share is what we were expecting. your you mentioned that one ratio of 14.5. that is above the banks own targets of 12% to 14%, the buffer required for the bank to have, and one reason som

stuart gulliver, oxbridge, trader, global. polytechnic, sportsman, on the ground, retail builder. i expect to see john flint on the ground, retail builder. i expect to seejohn flint on the ground and working the machinery and bringing it back to what its original focus bringing it back to what its originalfocus is which is bringing it back to what its original focus is which is asset heavy mortgages, retail, wealth management, those types of businesses. let's create a job description forjohn flint. john flint has to demonstrate a digital strategy for the bank, it is the one global bank which doesn't seem to that articulated one very strongly. he needs to up the fees side of the business and not be so asset dependent on the cost part, it is still nagging. he needs to work on that to bring global costs down.‘ to 2018 seems to be rising inflation. will hsbc biela to use it to their advantage? hsbc is the most organic commercial global bank. the others have been making money from trading accounts, investment banking, global strate

cane are the results, stuart gulliver and his tenure on a positive note?his is his last day on the job today, he will be replaced tomorrow by john flint, head of retail banking. this is his final set of results. for the betterment of seven years, stuart gulliver has had to deal with downsizing this once larger sprawling bank. they have exited 18 countries and more than 100 different businesses, getting it down to size, more nimble after a string of scandals as you mentioned. they have had to cut 25,000 jobs. and the question is, is that kind of pain over? there are a number of things we will look at, the fourth quarter results, and also the full-year results. not expecting a bad set of results, full-year profit is likely rising, again on the back of higher u.s. interest rate environment, hong kong often times -- it does walk in lockstep with u.s. rates, so with those rising here we could see an increase in net interest income. some of the other things we want to look for are caused performances. keep in mind -- cost performances. keep in mind, they've been

they are the last from mr gulliver. he has had it upjob to they are the last from mr gulliver.ry to turn around the fortunes of the bank? yes, and the story started long before his tenure. in 1998 there was an emerging markets crisis, 20 years ago. hsbc to the strategic decision to really invest in the americas, in europe, not a share. it missed the point. —— the americas and europe, not asia. since 2011 the decision has been reversed, the bank has gone back to its roots and found success back to its roots and found success backin back in hong kong, shanghai, it shows you where the story is connected. the emerging markets where the biggest potential returns are, equally where many of the biggest risks are. some would say it isa biggest risks are. some would say it is a risky strategy focusing on some of these markets, nonetheless one that will pay dividends if they get it right? i do not know if it is more risky. emerging markets are not all the same. hsbc, if i invest in hsbc today i am investing in an asia story. looking where the profits came from it is almost 90% of their p

overall, not exactly the swansong stuart gulliver was hoping for.estors getting used to beats from hsbc. what will they be looking for from the new ceo? >> he starts tomorrow. he will be presenting a new strategic plan for the company. which has been through quite a shrinking over the last couple of years, turning more focused on key markets in particular. that pivot is certainly paying off as far as 2017 profit is concerned, three quarters coming from asia. nejra: we've got other earnings this week as well. what will you be focusing on? >> we have lawyers presenting earnings -- lloyds presenting earnings and its strategic plan. finally free from state ownership. they will determine their course over the next couple of years. questions will be asked over how brexit affects their business. later in the week, we have barclays, the focus will be on the trading there as well. nejra: it all culminates with rbs on friday. vonnie: great stuff. time for our latest bloomberg business flash. latest test of the u.s. retail and health care industries. albertson

it is a rare miss for gulliver.rg data has shown that he has delivered higher profit in six of the last seven quarters. ian mckay highlighted areas of weakness. >> the fourth quarter from our perspective and the industry's was a little bit weaker -- industries was a little bit weaker. we also took a couple of provisions part significant corporate exposures -- provisions for significant corporate exposures in the fourth quarter. francine: our guests are still with us. this was one of the rare misses. it is a shame that he is leaving out -- now. will he be remembered for this? >> they took to very large impairments -- 2 very large impairments on steinhoff, the south african conglomerate, and carillion, a u.k. contractor and builder which also kind of collapsed at the beginning of the year. there was a general trend down in the markets businesses, fixed income trading, bonded trading, that type of thing -- bond trading, that type of thing. gulliver's ruin legacy, but it tarnishes it. there was a little bit of disappoin

i was intrigued by the stuart gulliver —— comment about being stronger.resting. we shall watch this space. thank you for coming in and giving us your analysis so early in the morning. let's turn our attention to india. many countries regard the sheer size of the population — about 1.3 billion people — as a reason to boost trade ties. and canada isn't much different. prime ministerjustin trudeau is there this week and in a few hours' time, is set to meet business leaders in mumbai. suranjana tewari is there for us. just tell us a bit more about this trip and how important it is to justin trudeau. we are not expecting any major announcements from his visit to mumbai today, but he is already met a lot of prominent indian business ceos like mahindra. he will be making a speech to a former business leader at later today and there are 150 canadian companies in mumbai today as well. they are hoping to expand their business dealings with india, possibly set up business and farm —— form joint partnerships with indian businesses. india is a big market for canada. t

is this the legacy of sir gulliver or is this a blip? elisa: i think it is probably a blip.ng not to see. they had seen a return to the revenue growth that they were hoping for, and this did not come through in the fourth quarter. iain: the fourth quarter, certainly from our perspective and the industry's, was a little weaker with respect to global markets, particularly in the ficc space. and in common with some of our peer group, we also took some provisions for corporate exposures in the fourth quarter. so that is really the feature of the fourth quarter. a couple of things on the unexpected front with respect to charges coming through a global bank and markets business, and lower revenues in the quarter from the same business. vonnie: walmart shares are dragging down the dow. investors are worried that e-commerce growth is slowing at the retailer. why can't walmart satisfy shareholders these days, no matter what it does, from buying jet.com to plowing money into new operations? investors do not seem to be happy. sarah: it is true. they sure are hard to please right now. i

this -- is this the legacy of sir gulliver or is this a blip? >> i think it is a blip. through in the fourth quarter. >> the fourth quarter from our perspective in the industry was a little weaker which respect to global markets, particularly in the ficc space. and we also took some provisions for corporate exposures in the fourth quarter. that is the future of the fourth quarter. a couple of things on the unexpected front including charges and lower revenues in the quarter from the same business. walmart shares are dragging down the dow jones industrial. investors are worried that e-commerce growth is slowing. why can't walmart satisfy shareholders these days no matter what it does? including plowing money into new operations. investors do not seem to be happy. is true. they sure are hard to please right now. walmart had sizzling growth in the last three quarters of plus 50% in e-commerce and then we saw a drop off. the 23% growth they did post is not that bad compared to a lot of their competitors. it is outpacing the retail industry's online growth overall but invest

plans to raise up to $7 billion of the next four months to boost capital levels this as steward gullivers the seven-year tenure as ceo shares down more than 3% bhp billiton down. missing on earnings despite reporting a 25% jump in profit and we finish with intercontinental hotels, down despite better than expected 2017 results this is a home of crown plaza and holiday inn saying no additional capital will be paid to investors this year citing the need to focus on growth plans and cost cutting this reflects the competitive land xap we' landscape we're seeing around the travel industry. >> when we return, we're live at the olympics this week he sat down with elizabeth swany who is creating a lot of buzz. as we go to break, the dow off the lows we were down 230 now down 95. "squawk alley" straight ahead. >>> welcome back here's your cnbc news update at this hour. syrian media reporting turkish troops were shelling the entrance to the northern enclave after scores of pro government fighters entered the area. turkey trying to oust the syrian militia considered a terrorist organization >>> gue

this is stuart gulliver's swansong and exit.does he take in relation to what happens north of the border here in china? haidi: on the lookout for hsbc earnings today. we have been breaking the bank's learnings live here on bloomberg. tuned. the filipina central bank -- the governor says the central bank will rely on data to determine the annual prices over the next two years. he also says the policymakers will is -- analyze volatility. authorities in sweden are increasingly concerned that the cash economy is moving too fast. the rise of digital and mobile is increasing. jpmorgan has expended his it rains as the best paid ceo on wall street. the total package last year was -- $29.5ion dollars million. morgan stanley ceo came in second. created by london-based newest building is covered by a new material called phantom black. he says the building symbolizes purity, the universe, and a sense of positive opportunity. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bl

shares drop sharply in hong kong as they are heading to the worst performance since stuart gulliver'sbank. bhp's half-yearit

we are going to see that handover as stuart gulliver ends his tenure at the lender.onsumer discretion segment. casino operators. check in on mgm china and other players here. mgm china posted a beat in fourth-quarter revenue. we are seeing the stock under pressure. sands china, the one bright spot. futures.ok at chinese just to get a hint of what might be ahead, we are seeing a slight pessimistic view when china comes back online from the lunar new year. haidi: thank you so much for that. let's get you the first word news with paul allen. paul: sergio marchionne has delivered his best returns among his automaker peers and has been comes in is aided -- has been compensated handsomely. he earns $12 million in base pay and bonuses last year, and collected stock valued at $36 million last march. marchionne drove fiat's ipo. $179.s. treasury has sold billion worth of securities to rebuild its cash balance, with yields rising to levels unseen since 2008. the offerings drew decent demand given the market is facing a deluge of sales. the treasury will sell five-year and seve