hsbc, underlying profit this morning. for the q1 is 7.6 billion up compared to the first quarter 2012. before tax, 8.434, looking better than expected. when you look at a stock like this now and the financials generally, do you want to own them ahead of anything else? >> no. they're certainly not the priority at the moment. what we're talking about here are cost management. we're not particularly arguing for much top line growth at the moment, and that's the headwind that is going to be created. if your assessment over the next five to ten years is going to be continued tough economies, particularly europe at the moment, and that's to me what a lot of markets tell you, why commodity res down 25% this year, it's why we see these numbers coming out of europe at the moment, and we're looking at long interest rates hitting new record lows. it's telling you we're in for a long period, 25 years of tough economies to wade through which will require more and more stimulus from central banks. in that environment, i think there are

the hsbc flash pmi hits a seven-month low with falling orders. sector slumps in europe, but weakness in manufacturing suggests manufacturing will remain. but coming up in a few moments, we'll be joined by ben broadbent. he'll join me on set after the latest gdp confirms a return to growth in the first quarter. all right. if you've just joined us stateside, a very good morning to you. we're facing a volatile day here for global asset prices. we saw a softer close after a big swing for u.s. equity markets last night. we were up one point in the dow calling down 80. right now, futures are suggesting we're calling about a hundred point plus loss for the open for the dow at the moment. the nasdaq is currently calling 30 points lower. the s&p 500 currently calling down 18 points at the open. show you where we stand with the ftse cnbc global 300, off nearly a percent at the moment. the ftse, down nearly 2% as you can see we're down 2%, nearly 3% lower for the xetra dax. the cac 40 down 2.5%. the ftse mib down 2.8%, as well. take a look at the sectors. y

. >>> hsbc's final pmi reading down from its flash estimate, signaling demand for good from mainland factories. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> all right. good morning to us from the. it's ecb date and we kick off with the latest manufacturing data out of the eurozone. >> which was starting to look okay. bouncing off the bottom until germany came in less than expected. >> 46.7. the flash is 46.5, but it's weaker than the march 46.8. the bottom line is it's better than a flash by the basis point, actually, it's still getting worse. >> new orders index is a touch better. the market is likely to interpret -- at this point, people are looking for excuses to buy. they like that we're moving from austerity to a stimulus stance. this will help. if this were a little stronger, i would almost argue that they wouldn't need to be quite aggressive here today, but with the data -- >> well, unemployment up at all-time highs. inflation down at, what, 1.2%? >> yeah. >> they don't need to act if they don't want. >> they're down

hsbc's ceo tells reporters challenges are still ahead. the bank will give investors a progress update next week. closer to home, protesters are at the ready for today's bank of america shareholder meeting. police blocked off streets a day early as protestors began to arrive in charlotte, north carolina, near the bank's headquarters. they are demonstrating over foreclosures and the banks' financing of the coal industry. bank ceo brian moynihan will be speaking with sharehoulders about mortgage lawsuits as well as the future of the financial firm. bank of america shares are up around 7% this week. the debate over the keystone xl pipeline is not over. bloomberg reports brigham mccown, former pipeline safety regulator, calls this "the decade of pipelines." mccown says the debate will continue, and more u.s. companies will likely support the plan. the government is still undecided on the deveopment of the keystone xl, which would transport oil from canada to the gulf of mexico. enviormentalists argue the pipeline could make climate conditions

the hsbc job cuts will be worldwide. as a follow-up to the oil market manipulation investigation we told you about yesterday, regulators are stepping up the probe. bloomberg news reports an international securities commission is reviewing whether benchmark prices set for the oil market meet international standards. royal dutch shell, bp, statoil and platts, which collects and publishes oil prices, are all under investigation, and are all said to be working with investigators. the uk's office of fair trading reportedly has received no credible evidence of manipulation in the oil spot and futures markets. a deadly fungus is spreading through coffee crops south of the border. the fungus, known as "roya," will likely kill off about 16% of coffee crops in central america - that's where some of the rarest beans are grown. traders say it will likely mean a price jolt on gourmet coffee. "where you are going to see coffee prices hold or even go up a little bit is in your higher-end coffees, such as starbucks or gevalia." that was

joining us is darren from hsbc. dlafollar is down to a six-k low at the moment on the back of that gdp number. where's this leave us looking at the composite? >> still soft. we were expecting, if anybody's going to deliver, it might be germany. and as it is, they have underdelivered, so for the composite, we think the market is expected to be a negative, but the question is how negative is that eurozone gdp number? when we tip back to the glass half full, glass half empty, it's negative, but less negative than the fourth quarter of last year, suggesting things are getting less bad, but i'm not sure that's enough to help the euro this morning, to say it's already been on the defensive after those german numbers. >> so much focus at the moment on yield spreads driving cross rates. the interesting thing is whether we've hit the top of the range on spread between treasuries and bund yields. >> i find it to be premature, this sudden fascination with carry, if you like, because that's what we're essentially talking about,

when you think about your statement that no one should be above the law and you look at what hsbc did, are you deeply disturbed that this prosecution free zone has been created? >> there were civil penalties that the treasury department was responsible for. >> these were criminal activities. >> it is not my responsibility as treasury secretary to make decisions on criminal matters. i can tell you my view is that no one is above the law. where there is criminal wrongdoing, investigations are appropriate and prosecutions are corporate. i cannot speak to the prosecutorial decisions that were made. i was not in the treasury at the time. it is also not in my area of responsibility. >> is it your sense that when a major organization is engaged in long standing money laundering, which they have admitted to, and they are given a free pass on criminal persecution, that draws into question whether or not there are organizations that are above the law. what does that convey to ordinary americans? >> i have testified on a number of occasions. my point of view is, no one is above the law. >> i wou

hsbc's april services pmi fell to 51.1 in april. the property curves and the scale were partly to blame according to china. >>> growth in india's all important services sector are slowed significantly, too. india's apr services pmi fal fell to 50.7 versus march's 51.4. gn, find us on e-mail or on twitter if you want to get in touch. now, coming up, karen cho and stephane pedrazzi join us live from paris as the french president hollande is celebrating his first year in france. we hear from a pollster whose latest survey shows the socialist loot leader is one of the most unpopular in recent history. >>> from paris to madrid, italy's prime minister is pair a visit to rajoy with job and economic growth at the top of the agenda. more analysis in a couple of moments on that. >>> also, we'll be heading out to malaysia as the front part extends its 56-year rule sending the stock toes an all-time high. what does it mean? answer at 10:30 cet. >>> and we speak to the ceo of the data analytics provider, nanex, who says the electronic trading br

big to jail.too hsbc laundering money for a decade for drug cartels and terrorist groups. they get a slap on arrest. hashe value of bitcoins been fluctuating wildly lately, but the people who use it say it's not about speculation what about trying something new in an era where big banks and many governments have not been handling conventional money especially well. al. >> dav is the director of a group in london. he says the work of the coins could grow but only if more people use them. -- the worth could grow. >> it a solution to a complicated mathematical puzzle. the coin is a number that is the solution to one of these puzzles. once i have sold one of the puzzles, i have the coin and i can keep it or send it to you or use it for trade or whatever. they are just numbers. if everybody agrees that those numbers will be worth something, then they are worth something. just like cholera shells -- in a shells or cigarettes prison camp. right now areoins being courted for more speculative purposes. it's not a mass-market pavement source yet. but the technology that uses, this i

also, china's pmi flash hsbc data released thursday showed a contraction, declining to a seven-month low of 49.6 in may. the index now sitting below the boom or bust line of 50. april's final reading was 50.4. trading was pretty choppy. the nikkei average had risen above the 15,900 mark in early-morning trading. but the benchmark, as we all saw, really taking a plummet in the afternoon. >>> now, we spoke with head of fukuoka capital management to get his take on tokyo stocks. >> the rumor in the market is that the market fell because of the bad economic indices was shown from china, but i don't think that is the only reason. i think the other reason is the market went up too fast, maybe overheating, especially when it exceeded the 15,000 level, people started to feel that there was an achievement for the target for the movement. the other reason may be is that there's a consent in the market that by the interview with mr. kuroda of bank of japan, it seems that he's not too much worried about the bond yield hike, which is obviously -- is not very good news for japanese equity market.

. >> firstly, i have to say at hsbc we're moderately bullish on gold from here. little cautious obviously because of what's just happened. but we do see gold rising up to sort of the 1550, 1600 level by the end of the year. >> what's going to get it there? >> i think what we've seen in the gold market has been driven by a couple of factors. firstly, obviously, we've seen some investors exit gold positions as a result of some portfolio rotation moves. secondly, i think we've also seen a big short position built on comex. and i'm not sure that short position is sustainablsustainab. i would see that short position coming off and therefore we should see a short covering rally. >> aren't there more headwinds, though, if you look at big investors, pension funds, mutual funds, getting rid of gold, even demand around the world hasn't offset that. the stock market rally in and of itself, right? is negative for gold, is it not? >> i think demand around the world has offset what we've seen in terms of the etf selling, but unfortunately we've got this big short position on t

we kick off with hsbc. there we go, up 3% for the london/hong kong listed focus. q1 pretax profit, 8.4 had billion, better than the 8.1. but what is potentially driving the stock much higher this morning is the fact that loan costs provisions and embarrassment embarrass impairment is lower than expected. a good increase cost ratio. revenues are light and it has strong capital position. look very sustainable. the look like they're about to grow the dividend. so all in all, pretty good gains for hsbc this morning. today, a 5 is 1% rise in profit. socgen, up 5% this morning. the numbers are a little bit better than expected. and commerzbank in germany up 1.6% today. better than numbers. lloyd's has been pretty well up, rbs, the only decliner here, but there are two things to point out from both lloyd's and rbs. it's now looking increasingly likely the government will look to sell out their stakes in these two banks, the uk government over next year. and that may just provide a floor, as well. we had one analyst comment on earlier who said he would now spin out of hsb

madhur jha, global economist at hsbc, thank you for your time. >> thank you very much. >> we mentionedr the third straight session for labor day celebrations, but as li sixuan tells us, they used to be closed longer, for around a week. is that right? >> yes, you're right, ross. just so you know, labor day is actually just a one-day statutory holiday in china, but the chinese people worked seven days last week, including the weekend, so they could enjoy a three-day holiday this monday to wednesday. before 2009, it used to be just a seven-day holiday, which people called the labor day golden week. not only is the labor day holiday squeezed, so is the country's labor market. official data showed the pool of working-age people shrink by 3.5 million million, marking its first decline in decades. the china research foundation also expects china's labor force to decrease by 29 million over the current decade. with an aging population, many scholars are calling for a reform to the country's one-child policy. besides that, wages are undermining their competitiveness as the world's factory. acco

remember, it was the flash hsbc number that triggered, that was part of the trigger for the 7.3% drop we saw last thursday, as well. not surprising, we saw flat line. shanghai down 0.75%. but a lot of fund manager necessary china upping their exposure for five-month lows so maybe we could see a resurge in china for the month of june. back to you. >> chloe, good to see you. thank you very much for the recap of all the action that's been taking place in asia. that brings us back to europe now. remember when we spoke yesterday on the close, we were looking at slightly mixed markets with mainland europe having rebounded a little bit and closing in positive territory. this morning, we're seeing a little bit of reversal by 0.8%. so we just dropped a little bit here within the last hour or so of trade where we've been open, where we've seen activity. our main european equity markets are lower somewhere in the region of 1%. the xetra dax, we're now looking ahead towards the end of month. a little bit of reoptioning on that front. today is the last month of trade. it's all very exciting given

europe's largest bank, hsbc saw its first-quarter profits nearly double as costs and bad debt both fell. >>> shares of now weejen cruise lines hitting new highs, beating earnings estimate for the first calf. simon hobbs is on board. he's got a very, very interesting tour for us. hi, simon. >> i do. later in the program we'll have an exclusive interview with the ceo who's basically paid $900 million for shall ship. when you spend $900 million on a ship as norwegian has done here with the breakaway new york, you want to make sure it's impressive enough that people just don't want to come on and pay to be on it, but that they'll pay more to be on it. there can be up to 4,000 passengers on this ship, and 1600 decree, but for those that want exclusivity to be here in what they called the haven, which is air conditioned. there are only 42 cabins that have card access only to this area. this is what norwegian calls the deluxe owner suite. the out150id area here, totally private for you, the spouse or the family. the table for the meals that you won't be coolinging yourself, because you get 24-

hsbc with big numbers today. all the european banks higher. that trade is starting to scare me. >> you like jpm? >> if i had to buy a bank, i guess that's where i would go. >> that is a ringing endorsement. >> exactly. if i'm looking, i'm with tim on looking outside the u.s. now. you have a name here that is up 11%. i'd rather look for some value elsewhere. we talked about mexico last night, talked about brazil. those type of banking areas is where i want to be involved. >> let's get a check on shares of disney. julie joins us with the latest from los angeles. julia. >> it's no surprise that ceo bob iger is pleased about these results. beat on the top and bottom line. he kicked off the conference call talking about the fact the company, all five of the divisions are showing revenue growth, but also about "ironman 3." he said as of now, it sold more than $711 million worth of tickets worldwide. a massive opening for "iron man 3." he went on to talk about the potential of marvell and what a great acquisition that was. also lucas film saying he i

whether or not it was bp, hsbc, standard charter, barclays, whatever. they already had the separation of roles. it was not preventive in any way. nor is it ever predictive of better shareholder returns. the fact, it's a cliche -- cadbury came out with this celebration of separation of roles. his own company was a disaster, cadbury. 20 years ago, following off the old robert maxwell publishing empire. we went dancing naked off the ship. the people said who's in charge of this thing. >> wow, a walk down memory lane with jeff sonnenfeld. >> remember max well? >> of course. >> what you're saying if berkshire hathaway decides to do the split and warren buffett says that will occur when he leaves are you suggesting berkshire's returns are going to be less? >> i don't think it's hurt berkshire hathaway for warren buffett to have a unified role. i don't think it's hurt bob iger. he's done a fantastic job at disney. looking at the companies -- most u.s. companies have them combined. there's no correspondence with performance. look at the u.s. disasters. enron, w

we saw hsbc come out and say that their nonperforming loans of half of what they were last year.hat case in terms of regulation and in terms of shoring their balance sheet, they're a lot stronger. >> you can buy at this point? >> well, we would say that the divergence is stark. and you can very vastly compare what's going on in the u.s. and asia compared to europe. in terms of the outlook going forward. and one of our concerns in europe is actually quite interestingly the correlation between bond yields, those spanish and italian ten-year bond yields and european bank stock prices. when the bonds fall, banking stocks tend to rise. it shows they're still very sentiment driven and you have to be very specific. we're a lot more confident on the u.s. and asia side which is going to benefit from a recovery in mortgage lending, in corporate loan demand, et cetera. >> hey, gemma, it's josh brown. i want to talk about greece with you. first of all, if you look at a chart of the national bank of greece, which is basically like a call option at this point, but one that a lot of traders are

british paper, the independent reporting that hsbc, the old hong kong to shanghai banking corporationsnce more lieoffs. down it goes. we talked about tesla, the stock has been 0 a tear recently, up about 50% in the past week, stunning. the fda will allow generic competition for a pain killer. there it's up again. and k.f.c. parent yum! brands, 29% drop in sales in china because of bird flu, down 1%. and elan strikes a billion dollar royalty deal with the-- i'm not sure, thera up. and cereal maker disappointing profits. where are we going next? irs targeting conservatives and worse than first reported. sets a dangerous precedent for anyone critical of big government. this is the story of the week in my opinion. when if ever will this administration be held accountable for anything? we'll deal with that next. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every st

hsbc is going to cut, what, 14,000 jobs and trying to save 3 billion dollars. market likes it, up just a fraction, that's it. boeing is going to resume deliveries of 787 dreamliners and they're going to fix the batteries and apparently they have on all dreamliner jets and that fix will be completed by the end of may and maybe boeing is closing in on $100 a share and it's at 96 now. profit falls at adulent and cut jobs, market likes it. up a buck. safeway, it's a supermarket chain, raising the dividend 20 cents had a share and the market thinks nothing of that. 25 bucks, down a fraction. and u.s. airlines make 3 1/2. that's all airlines, okay? not just u.s. air all of them collectively. 3 1/2 billion dollars from those fees for checked luggage and other fees which they charge you for everything. and delta, that's going up because of those fee earnings, 18 on delta right now. and all right, we've got the dow jones average down 24 points, pretty much in check where we thought it was going. down 24. time is money, 30 seconds, here is what else we've got for you, th

. >>> meantime, british bank hsbc has company policy and they said 1 billion in costs. they could have the disposal of up to 20 businesses over the next two years. britain's top 100 countries are running 800,000 subsidiaries. according to a new report by u.k. chair, they're talking about corporate accountability and jurisdiction. >>> same time, british financial regulator ssa is monitoring a dual track system to replace libol. they will set the new benchmark rate. policy makers have been calling to libor ever since the scandal last year. >>> and j.p. diamond said he may leave jpmorgan if they split his role. t"the wall street journal" said he made the comments last week. investors will make a nonbinding position next week to split diamond's duties. jpmorgan's stock up to 30 in frankfurt. bloomberg is in damage control mode. they viewed subscriber information on its computer terminals. "the new york times" has reportedly been told to use it to give them a competitive edge. one reporter had information of a customer of goldman sachs. the 30 year treasury are investigating

and hsbc, the biggest bank in europe is up 2%.pointing profit at officemax, the company declares a special dividend of $1.50 per common share and it's down 4 cents. that's it. better than expected profit at directv. it's up 4%. nice gain. higher profits, big, strong outlook from the parent company of the discovery channel, it's down a buck 59. what's with that? back to the big board. 1511 is holding. >> time is money, 60 seconds worth of three big personalities we're bringing to you in our next hour. the fda wants to put warning labels on tanning beds and ban kids under 18 from using them. but you only have to be 15 to get the morning after pill? what's with that? the judge is weighing in. i feel vindicated my wait and see with microsoft stock is paying off. i say that charles payne should recommend it? what does charles say? you'll find out. and gene simmons, the outspoken member of "kiss", for president obama and then changed his mind. and what about obamacare coming down the line? we'll ask him. and we frequently ask on this pr

heavy weight hsbc gained 1.7% today after the bank's q-1 pretax profit nearly doubled and index giant seng extend a four-day rally. shares are under pressure despite posting better than expected profit. investors fear that the weak rate in april could persist in the months ahead. and a drop of over 3% today after a warning of lower q-1 ing profit due to higher costs and toshiba shares slumped but a report that there will be mass production of lcd panels foapple's n 5 from two japanese o you. >> have a good evening in singapore. >>> a world famous economist expects to see a huge rally in risk assets for the next two years. speaking at a private event in las vegas, he said while stocks aren't yet in bubble territory, the looming rally would place markets in danger of a huge crash thereafter. bond markets are facing a double. this is after the dow closed above 15,000 last night in fresh record territory. just to recap that's where we close. futures pointing a slight dip below that. joining us for more, scott evans head of equity sales. good to see you. thank you very much for joining us.

steven king, hsbc's chief economist is ready to discuss it.appens when all the money runs out. i don't want it to run out, stephen. we'll get into that, as well, and we'll look ahead to the prospects of a tapering fed. mr. evans saying we could keep the tax and just spot. will that work? plenty more to come in the next hour of "worldwide exchange." don't go anywhere. [ male announcer ] what?! investors could lose tens of thousands of dollars in hidden fees on their 401(k)s?! go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. none of them charge annual fees and all of them offer low cost investments. e-trade. less for us. more for you. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs m

between big wall street banks, traders said those banks that places like jpmorgan chase, goldman sachs, hsbc and the client's. here's the information that was leaked, users, traders e-mail addresses, bonds, credit default swaps and other financial products, 10 -- confidential price info and trading activities. what is happening is bloomberg is saying this was the data mining project launched by a former employee that basically wanted to improve the pricing information on the products, accidentally leaked out a search on google discovered these messages and they -- bloomberg is coming back to fox business with this statement. let's look at what bloomberg is saying in response, if this report is true these messages would only have been collected in cooperation with clients to improve our technology for the clients. that is the position bloomberg is taking right now. they are also saying we would consider legal action on this matter if we discover it happened as reported. this is an interesting story that is still unfolding on the heels of the snooping allegations made against bloomberg news. a

we got reports from mitsubishi ufj and we'll get an investor update from hsbc.foreign director investment figures out of china for the month of april. philadelphia fed president charles plosser says he wants the fed to begin cutting back on bond purchases as soon as his next fomc meeting in june. he made the comments to be delivered in stockholm. unemployment would see 7% by the year-end. dick hayne is still with us from bny melon. mr. plosser is not in the majority, is he? >> no. charles plosser has had this view for quite some period of time, but the core of the fomc, which is ben bernanke, janet yellen and bill dudley, they're doves, they don't have the same view. i think we'll probably see tapering of the qe in early 2014 conceivably -- >> not this year? >> it could be in december 2014 meeting if the evidence is called at the holiday season is strong. but i don't think they'll be dealing with this every summer. >> we just got the spanish auction, a t-bill auction. 1.1 billion t-bill auctions. have we got the yields on that? we haven't. 3.30 billion of 12-mon

morgan stanley, the likes of hsbc and dutie deutche bank. put up a few years ago, they sat out there and only recently has bloomberg moved to take them down. they were alerted to the problem. what is in the message is very important. it was a dollar amount of certain trades. say it was a bond trade between one of the traders at the big banks and a client, that information was up there. bloombergess nobloomberg is now saying in talking to fox business that they will take legal action if merited. thethey also say this was accidental, inadvertent. the reason why there is a worker at bloomberg digging into these messages, they did it to essentially fine tune their information products that they would sell then back to wall street clients. i'll tell you something, the backlash is coming into fox business from wall street, it's pretrial tee severe. there is a lot of talk on wall street that they don't want their client inch have vester information exposed like that. they tonight like it. they want to set up their own messages system on their own b

selling off businesses and the troubled loans are declining, societe generale had a decent report, hsbcort, commerce bank and jefrm me. barclays is trading up and credit suisse is trading up and the european banks are looking a little bit better and other than that the big talk was microsoft and the windows 8 update as they're calling it. apparently eliminating the traditional desktop launch has alienated a lot of people. we can all agree, microsoft has had one great success and xbox, kudos to them and it's been a terrific product and they haven't been able to integrate that success with with other platforms like the pcs or the smartphones. in theory, they've got all of the right ingredients and xbox has a huge subscription base that has a lot of online products that they sell and they haven't been able to integrate it very well. they've been stunningly slow that the partnership with nokia is higher and i don't know how the we'll do, the jury is still out. >> since april 18th, they were up sdeen%, but the entire tech business has rallied since april 18th. the number one sector is up abo

as you said that, i was thinking about the situation with hsbc where 14 years they laundered money repeatedly, they were devised to stop doing it. it was related to countries where we have basically embargoes because of their policies to acquire nuclear weapons. these were terrorist organizations which put at risk are men and women around the world and companies around world. were drug organizations in northern mexico and thousands have died from most drug operations. this money laundering took place continuously after multiple efforts to stop it. youryou think about statement that no one should be above the law and you look at what age as b.c. did, are you deeply disturbed that this prosecution free zone has been created? >> there were civil penalties that the treasury department was responsible for. these were criminal activities. >> it is not our responsibility as treasury secretary to make decisions on criminal matters. i can tell you my view is that no one is above the law. where there is criminal wrongdoing, investigations are appropriate and prosecutions are corporate. i cannot speak t