hsbc holdingsand have been sued for allegedly rigging the silver market. neither hsbc or deutsche bank will comment on this. this is 7:46. >> you name it. the level of profitability is going to expand. the u.k. company has been heard by the strength of the british pound once you bring back sales from north america. half of the sales come from byope. they have been hurt foreign currencies weakening in asia. as well. we are expecting first-half sales to drop a little bit. we are seeing adjusted net income better than expected. the key take away is the pharmaceutical unit. this is all about opiates. to be abouting heroin. they made a treatment to help addicts. strong.ry got very strong market share. competitors are starting to weaken in terms of sales. >> they are going to farm out pharma. that is the take away. >> they are going to be selling thees to another ipo in next month. >> it has got a big share of the market. theas about two thirds of market in the united states. >> the growth is still there. the amount addicted, this is going to be a company that c

other one is hsbc. i keep finding it interesting.'t dare say the word investment bank because a color global banking and markets. the head of unit says i don't have an investment bank. mainly focusing on the corporate market. >> thank you very much indeed. chris wheeler. it is great to have you on as always. >> the world's largest luxury carmaker teams up with the world's largest smartphone maker batteries for bmws line of electric cars. more after the break. ♪ >> time for today's company news . i guess will replace nike us official supplier of the english team manchester united. the company signed a ten-year deal with the football team to supply its kids. the deal is worth a minimum of 750 million pounds. sales should exceed 1.5 billion pounds over a 10 year term. alibaba has teamed up with lions gate to screen hollywood movies and television shows. landscape will be delivered through its new alibaba set-top box. it will include titles such as the hunger games franchise and tv series madmen. microsoft is planning its biggest round o

hsbc did confirm in large part what the official data manufacturing was telling us. despite the fact that the hsbc number, 50.7 was lower than the flash estimate of 50.8. let me say this. you have to be cautious about the trajectory of the chinese economy because there are still a number of stress points, still a number of challenges that we have to contend with. yes, the economy is on the mend, but we are not out of the woods especially when you consider the softness in the housing market and the problems that the banking industry still continue supposed for the banking system, the risk of default, etcetera. so broadly, a lot of economists are telling us that we're going to see and expect to see more stimulus measures, more incremental easing this quarter in the third quarter to keep the economy on an even keel. back to you, julia. >> thank you so much, sri. maybe we dig into the property sector later on in the show. we will bring that to you. for now, bulgaria's concerns over the central lender has eased. the european commission approved a credit line of 1 is.7 bil

they failed to meet the hsbc requirements. the chief executive is focusing on key markets. pension fund suffered a quarterly loss. the government pension investment fund fell .8%. pressureer increased to overhaul the investment strategy into riskier assets. the bank of australia says that they will improve supervision and are trying to. they lost money due to investment advice from those divisions. toy have paid compensation 1000 clients. the advice given to people for those who did suffer. she is making them again. issues a stern warning to the world government and comes in to praise central government. she hence that the global slowdown is in danger unless investment in infrastructure picks up and there is a shot in the arm. >> that is right. there is an economic conference and and imf meeting. said there was no brutal slowdown expected. they said they want to meet the target and will spend money on infrastructure. that is what they are going to do. what she said, without saying it exactly, is that the central banks are playing a game. they are not passing on infrastructu

aussie/dollar reacting from the hsbc pmi we got in china this morning. it rose to 52. better on the export numbers. also on the employment. we're talking about that, though, shortly, too. right now, 1.70342 for sterling. we've got retail sales out in around 30 minutes time. we'll keep an eye on that level there, in particular. i did just mention the chinese data, too. eunice is in beijing. eunice, i just wonder whether we should have similar concerns as we've had in europe here that it comes tt expense of reform. >> it does come at the expense of reform. that's what a lot of people have been discussing today. however, at the outset, the numbers look quite good. the best factory activity that china has seen in 18 months. just in case you want to know the number for itself, hsbc's flash pmi came in at 52 versus 57 for june. there's a lot of strength all around. there were new orders for home as well as overseas. very strong. we saw that that basically means, like julia was talking about, that the many stimulus measures here in china have been working in and suggest a lot

the hsbc purchasing management index focus ises on strong and medium size firms. most are exporters. and a reading above 50 indicates that business is expanding. the index in july ticked up to 52. that's the fastest expansion in a year and a half. economists watch manufacturing to gauge the strength of the overall economy. steven is head of investment strategy at shk private and he joins us now from hong kong. what was your reaction to the numbers? >> we weren't really excited or surprised by improvement in the pmi. when you look at other economic indicators reported early in the month, there has been pretty consistent and broad based improvement in terms of the chinese economy. that has been the result of the chinese government's policy activism since mid-april. in terms of equity markets, we believe improving pmi will continue for the next couple of months so analysts will be revising positively in terms of the earnings estimates ask that should be positive for the equities markets. >> so is pmi an accurate reflection of the state of manufacturing in china? >> n

hsbc market was over 50. basically if we talk about the pmi data alone, definitely was improving. even we take a closer look to like new orders, as you said, orders, economic data like retail sales, also property markets, i do clearly see the signs of recovery in chinese economy. >> what do you think could derail this recovery, dickey? >> well, i will not say the word derail, but definitely you're right, because like 7.5 gdp growth this year, as premier xi said before, it's not something easy to achieve. i do believe that the chinese government needs to introduce new and even more fiscal policy and monetary policy to boost overall domestic consumption. because as we all know, the chinese government, anti-corruption is the first thing they need to do but it may hurt high-end consumer good sales. so they need to do something to compensate and to boost the domestic consumption to achieve the gdp growth. >> and how soon do you think leaders could put some measures in place? >> this is not an easy question to answer. but i guess within this year, they may do some kind of fiscal and mon

this is according to an hsbc survey. the shanghai composite extended its recent winning streak to a three month high. it was up 1.3%. finished at 2,105. investors poured more money into the market on hopes that it would be easier for foreigners to invest in shanghai stocks as cross border trading in equities are expected to start as scheduled. in hong kong, the hang seng index seeing gains as well of .7%, 24,141, a three-year closing high. shares of property developers rose thinking more chinese cities will ease restrictions on house purchases. the nikkei was down .3%, 15,284. investors a bit cautious as they refrained from active buying ahead of corporate earnings from major companies. and in south korea, shares ended in the negative, the country's economy grew .6% in the second quarter. that's the slowest growth rate in more than a year. >>> that dispute between argentina and u.s. creditors continues as a deadline to strike a settlement draws closer. argentina risks its second default in 13 years unless it negotiates a

a private hsbc survey showed china's factory activity expanded in june for the first time in six months. singapore's index closed lower, .4%, 3242. shares of property firms took a bit of a hit because of the country's housing data. private home prices feld for a third straight quarter in the three months to june. here's what's going on in europe right now. major indexes are all higher. london is up by nearly .5%. gains of .3% for frankfurt. paris gaining .6 percent. the french bank agreed to pay a fine of almost $9 billion for violating sanctions. 101.58, little changed from the levels that we saw in asian trading hours. they're waiting for a bit more trading cues like the ism manufacturing report that's due out later on tuesday. meanwhile, euro/yen at right around 139.11. >>> japan's budget airline market is getting crowded. malaysian-based low-cost carrier air asia will be teaming up with other firms to re-enter the japanese market. they made the announce in the meantime tokyo. they'll create a joint venture air asia japan. rockten will put up 18% of the capital. >> what we're trying

the hsbc purchasing manager's index focused on small and medium sized firms in the private sector. a reading above 50 suggests business is picking up, and in july the index ticked up to 52. economists watch manufacturing to gauge the strength of the overall economy. we spoke earlier with steven shung. >> we weren't really excited or surprised by the improvement in the pmi. when you look at other economic indicators reported earlier in the month, there has been pretty consistent and broad-based improvement in terms of the chinese economy. that has been the result of the chinese government's policy activism since mid-april. but in terms of equity markets, we belief that improving pmi will continue on for the next couple of months, so analysts will be revising positively in terms of their earnings estimates, and that should be positive for the equity markets. >> so is pmi an active reflection of the state of manufacturing in china? >> no, not necessarily. recent growth picked up in the past couple months has drichb by more government infrastructure projects. that has been the growth d

hsbc may exit another foreign bolivia.- shutender previously offices in iraq and japan and latin america. the ceo has been simplifying the bank structure and focusing on key markets. sachs has goldman brought forward its forecast for the fed to raise rates. says the central bank will raise rates in the first quarter of 2015. oforgan chase added the head tokyo's mitsubishi revising estimates. the world's largest pension fund has its first quarterly loss in two years. it fell 0.8% last quarter. the fund has been under increased pressure to overhaul its investment strategy and move into riskier assets. growth continues to be priority number one for china's economic policymakers in a bid to post that target. the people's bank of china is tactics.e where theyuation pick up the slack because fiscal policy hasn't. it is a complicated set of affairs. >> the central bank does not usually get into setting fiscal policy. you leave that to the government. but in china, of course, the system is a little bit different. there are no limitations on fiscal policy and what you are seeing is the central ba

and hsbc are completely mystified, they are saying this is the wrong tactic.uld make your own store is more compelling rather than setting up more competitors. he will have a chance to answer some of those criticisms. all want to hear where justin king is going to go. he hasn't given us an inkling. will it be to take over formula one? that is the big question. his last day at the top of the supermarket chain that is sainsbury's. back to you. >> caroline, thank you very much for that roundup. from high street supermarket, let's turn our attention to the bank of england's rate decision. this impacts everything they think about. here to take a look ahead is kevin daly. great to have you with me this morning. you have the doves and ball hawking your notes. , really strong call here. you reminded me of the last line in your inflation call. take me through your calls for growth and inflation. >> the characterizing view in the u.k. the last 18 months have been that we are above consensus on growth, below consensus on inflation, reflecting a relatively optimistic view

out tomorrow, as will be the hsbc number, too.aps the shanghai composite trying to front run from some better than expected numbers. the data recently has been quite encouraging. we are seeing stabilization in the broader chinese economy, but the property has been the weak link. nikkei, though, retreating from a six-month high earlier on the session, the weaker yen was benefiting the exporters. and we've seen some pretty good earnings. but the expectation today was innintendo. the stock off by more than 6% earlier on in the session after a worse than expected operating lot loss in the april to june quarter. samsung electronics turned in their report card. and it wasn't a pretty one. the worst quarterly profit in two years, guidanceport second half was very weak. samsung's index heavyweight was a big drag on the broader index for south korea and the kospi. karen, that's where we stand. back to you. >> sri, thank you very much for the roundup there. >>> the cnbc rally told argentina it can make a comeback from its default. it's made

. >>> hsbc out with a bold call today saying it's time to buy emerging markets, specifically highlighting china and mexico as key buys. is it time now, weiss, to start looking abroad? interesting note they put up. not like they hate the u.s. it is just europe valuationins better elsewhere. >> i stay away from china and more issues. now they issue their own debt instead of relying upon government debt. that's a problem and the government's saying we don't want to underwrite your bad debt anymore. so i still have major issues with china. mexico, however, positive on mexico. with the reform that is are going on there, you're going to see tremendous growth out of mexico. >> the viewers here constantly about the risk of emerging markets, especially in the context of the fed pulling back stimulus. unfortunately for those people paying close attention to every headline, they don't realize that em stocks 16-month highs and still much, much cheaper than areas of the u.s. markets and should be a part of portfolio. >> value, europe. europe. great value. central bank. giving you the stimulus. largely

door to bake and hsbc are among the banks that have very doubt test trade so we know it is working.udi stocks in your pension. >> thanks. see you later. chips.s talk about witholdings came out second-quarter results. it is the design of chips and licenses them. 41 new license is this quarter. -- licenses this quarter. revenues not doing so well on the royalty side. up 2% but 42% increase in licenses. this votes pretty well. there is significant demand for new types of designs going into the latest gadgets. you have connected devices, not just smart phones. they are getting into the newer designs. thermostats that are connected. we can have our cooking appliances connected. it will be worldwide. cows' se chips within tomachs now. area of growth, it is licensing. there is next reaction from the investor community in terms of results. 3% lower. as exuberant as it used to be. there said -- calls out there saying it votes will for the third quarter. we can talk to our guest about where the growth is. the smart phone market has been suffering. look at the most recent idc numbers. is drive

szymoniak says that the banks whose paperwork was handled by the docx forgery mill included wells fargo, hsbcsche bank, citibank, u.s. bank, and bank of america. we contacted all of them, and each said that it farmed out its mortgage servicing work to other companies, and it was those mortgage servicing firms that hired docx. docx was owned by a company called lps, a $2 billion firm that calls itself the nation's leading provider of mortgage processing services. lps told us that when it found out about the phony signatures in 2009, it shut docx down. >> it's astonishing me that this became as pervasive as a problem that it is. >> it got sloppy. >> it got very sloppy. >> until july 2011, sheila bair was one of the government's top banking regulators as chairman of the federal deposit insurance corporation. you just described it as pervasive. >> yeah. it is pervasive. it absolutely is pervasive. and it was just a matter of cutting corners, not spending enough money, not have any quality controls. >> although banks say the courts have been accepting their paperwork, that's changing as desperate

when i think about how shocked we were when hsbc or find, we thought it was a big number. we could see a lot of those big numbers -- >> how do you differentiate between the banks? the haves and have-nots. barclays, the likes of bnp paribas who have not managed. >> we no longer exclude litigation. this is not one offs. this will continue. a lot of this is related to capital. deutsche bank has many issues to deal with. credit suisse seems to have less. upngs suddenly keep popping in this hangover that we were not expecting. ,> as you look at the landscape where do you want to be? where should be be investing? we talked about wholesale banks, very difficult to touch. retail banks are looking in much better shape. know what will come out of our wholesale banking sector by cover. -- that i cover. popular when we downgraded them this year. >> you are downgrading not based on litigation. the list of execution of the new strategy. saying, were morally institute the new strategy -- when will they institute the new strategy? it is a dangerous place to play. >> who has the bigger rep

to by hsbc as the most boring currency in the world.en gaining and we have equity futures declining. begin toe u.s. futures accept and understand what is going on with u.s. sanctions on russia, playing into more of a haven trade. those of the currency -- those are the currencies. let's give you headlines. present -- president obama and the eu impose more sanctions on russia. this time targeting tanks and defense firms in the latest -- and banks and defense firms and the attempt to punish russia. >> where blocking new financing of some of russia's most important banks and energy companies. these are significant but they're also targeted, designed to have the maximum impact on russia while limiting spillover effects on american companies or those of our allies. >> israel has agreed a five-hour truce at the rate quest of the u.n.. the temporary cease-fire would allow civilians time to supply. as the israeli army prepares its troops were possible ground invasion. janet yellen finished her second day of her biannual testimony to congress. th

the bank is planning to close operations after its local representative failed to meet hsbc requirements. the lender previously shut offices in iraq, japan, and latin america. the ceo has been simplifying the bank structure and focusing on its key markets. commonwealth bank of australia says it's financial planning units will stay. the lender says improved supervision and training of advisors are firmly in place. apology to clients for losing money from the unit. the lender had already paid $50 million in compensation to more than a thousand clients, and agreed to review advice given to people who suffered. german chancellor angela merkel is in beijing today to meet with her chinese counterpart, xi jinping, on day two of her visit to china. stephen engle joins us from beijing with a closer look at the chancellor's visit. what do we expect from the chancellor? day, the first full day in beijing today. business is the focus. this is her seventh visit to china as chancellor since taking the position in 2005. after arriving in beijing from her first stop in just one province, she met with th

its q2 growth figures at 8:00 and a few minutes after that, we'll get japan's june trade figures and hsbc will release its china flash pmi. on the earnings front, keep an eye out for the quarterly results from lg electronics and canon. >>> access africa takes us to ethiopia. we leave you now with a preview and we'll be right back after the break. see new two. >> what our people does for us and how this government performs. so i think it is not something which gives power to a government. >>> ethiopia was once known for famine and poverty. in may this year, the country received its first stop in credit rating from the top three credit agencies. it's a deaf nation you should be taking seriously. in a brand new show, access africa, we sit down with the ethiopian prime minister to find out. >> ethiopia's finance minister recently declared the company open to investment and tourism, undercoring the ratings report. as much as you may tout your results, there are other indicators and bench markets. doing the survey from the world bank where some important feedback came through, showing weakness

with a private survey by hsbc market shows a significant jump in the sector with the reading coming in at 15-month high. the numbers out earlier this week suggesting the economy is steadying. we're joined now by michael. i think the market is pretty calm right now, that we're looking at a soft landing scenario as far as the chinese economy is concerned. you don't buy the soft landing argument. you talk about a long landing from china. let me see what that looks like. >> well, china can generate as much growth as it wants as long as it allows credit to continue growing. and credit is growing much too quickly. so if we were to maintain growth rates at 7% or 6% for another two or three careers, the risk there is that debt levels become so large that we end up with a very, very difficult adjustment, what people would call a very hard landing. so the options aren't between a soft landing and a hard landing. the options are between a long landing, by which i mean over several years growth rates will drop down by 100, 150 dips every year or a period of what looks like a soft landing followed

the finale clipses the $1.9 billion penalty imposed on hsbc. welcome to al jazeera america. >> straight ahead, we focus on the latest troop increase in iraq plus the supreme court verdict in the heated hobby lobby freedom of religion case. >> first, let's go to ebony dionne. it could soak the fourth of july celebrations in the nation's capitol. >> it could. all that moisture making its way up the coastline, it's certainly something we are monitoring in addition to the heat building across the southwest. we will continue to see that make its way into the pacific northwest, but today triple digit numbers expected in las vegas and phoenix. we have heat warnings in place, take it easy here, also into the northeast, the heat indexes around rochester will be near 100. >> the supreme court has ruled in favor of certain for-profit companies who did not want to pay for some forms of contraception as mandated by the affordable care act. the divided court accepted their argument on religious grounds. >> crowds gathered on the steps of the supreme court. >

incidentally, just got a note from hsbc saying that is probably going to remain sluggish in terms of retail sales for the third quarter, which means that we could see some fiscal stimulus from the government if those numbers continue to disappoint. so watch out for that. elsewhere, it's a fairley positive session all in all. you see the market and for bangkok, but i would say for the rest of the week, julia, these markets are not going to be running away in terms of momentum to the upside. we want to see what the fomc says, of course, and that payroll at the end of the week. back to you now. >> and don't forget, earnings, sri, over the u.s. and europe, plenty for investors to think on. thank you so much for that. paul, good morning. >> good morning to you. >> a couple of interesting points in your notes. fund managers have the low elf level of risk since 2012. yet at the same time, you pull out the data from merrill lynch saying private clients now have equity asset allocations at the highest level in nine years. >> yeah. i think this is a continued question about how risk averse peo

caterpillar ceo telling cnbc this morning when it came to china that put out better than expected hsbct he thought the second quarter was weaker than the first. that's a big source of demand for them. but also for every industry here it is a great barometer. >> i'm just reiterating what jon fortt was saying about consumer electronics at amazon. i'm also interested to see whether or not with those earnings they break out at all some of the streaming numbers, audio and video. because if that's one of the ways that they're attacking and clearly going after netflix, then how successful are they with that along with the new phone? >> right. or a pandora. >> that's exactly right. and amazon is even going into the payment space to go back to the visa conversation. they're really trying to push and they want to be everywhere all the time. whether they will really make entree there or whether that will backfire a little bit and and waste of resources, we don't know yet but it is interesting to watch. >> there is a contrast between some of the companies that have figured out how to grow. faceboo

from what i understand when they collect settlements like the hsbc settlement, that money basically ends up in the budget of the registry agencies. so good for them. and again this is part of the argument they always give you. they say well, we can fight them for 10 years in criminal court and lose an eye getting to you, or they could give us $2 billion tomorrow, and think of all the good we could do with that money. and i'm like, am i getting any of that money? why do we put people in jail first of all? this goes back to that question. i had to ask this question for this book. one law professor told me, it's really for three reasons. one is deterrence of individual. it stops the individual from doing it again. and, of course, that would be very true with community of offenders. deterrence to the group. and also, again, would be very effective with this kind of offended. and everything is justice for victims. so even if you have been the victim of fraud, the victim of a financial crime, one of the reasons you would put someone in prison is because the victim should get justice. are the v