hsbc is out today.re are some bigger unanswered questions surrounding this. -- this is people how we should be dealing with that but there are short-term loans. by the portuguese authorities to make it happen. they hadunfortunate money left over. >> that money is kind of their but it needs to be funded in an obscure away. >> quite a clear-cut on the pages of the newspaper. thank you very much, guy johnson. we will bring you companies on the move. the world's biggest pork supplier will raise almost $2 billion it is hong kong ipo. trying to reach a portion of a $4 billion loan that acquired smithfield. cut partsid it was for is a mercedes-benz in china in september. aat is pro if they -- there's probe if they manipulated prices. as we had to the break, we will our operations for the anniversary of, ration of the start of world war i. king felipe is hosting a has of states to her member award were one. britain is represented by the duke and duchess of cambridge. it will start at 11:00 london time. that was

and i see this happening as an interesting move, same as hsbc, the u.k. banking system is in a much better space in general. you start to secret growth. you are seeing an end to this provisioning. you know, buy or decline, but if you look at the letter that hsbc sent to usborne and the deadline on the current commerce areas, we are still in the mecca of designing the european banking system over the next few years. >> we are going to come back to that point. as you just mentioned, hsbc will report their top earnings in a couple minutes time. the bank will report an 11% increase in profits and increase visions for ppi claims. we'll break down the results right after the break. stay with us, we are back in two. the cadillac summer collection is here. ♪ ♪ during the cadillac summer's best event, lease this all new 2014 cts for around $459 a month or purchase with 0% apr and make this the summer of style. >>> we are just awaiting for hsbc to report earnings. take us through the numbers here. >> we are expecting the profits to be down around 11%. they had blea

hsbc a more conservative bank.ndly, because of the big, strong capital base, it is able to realize losses earlier on and move on with its financial life. >> they did make some mistakes. there were mistakes that were made. is, inthe real point terms of magnitude. if you are a bank that really geared up and has an awful lot ,f losses on the balance sheet then you have to dig in for the long term. those banks stay digging in for a long-term. we have seen in europe, shrinking levels of bank lending. banks,look at these management 45, 6, 7 years it takes. >> that is what we thought we were doing here and then we get bes. >> most bankers now, early on, you might have a funding crisis. you might reveal that you cannot play the game. this is what happened to northern rock, famously. stages get to the latter where management has changed as we are going through. and goes, icomes in think we should show more of this hidden loss stuff to people. be honest and put a line under the story, etc. , likehe new guy comes in we have s

then a little bit later we will be speaking to hsbc chairman to get his take on the future of banking. the microsoft cloud goes down. we'll take a look at what was behind the glitch that shut down microsoft's cloud computing business for five hours. what it means for chief 'secutive satya nadella turnaround plan. ♪

i think you hold hsbc. regulation is a theme. how do you look beyond it? >> we -- you have to take it into consideration when you are looking at the valuations and preparing for an industry or company. we have to assume it is going to go away in a hurry. banks more than others. >> is a global thing. for us, you are looking at europe. the banks look a lot more interesting than they have because the risk is christ in to the shares and you have a decent clawback over the last months. the valuations are looking attractive. the quality review. that is on the horizon. that should begin to improve. we are looking at a potential for growth going forward. >> you have overcome the link. it was remarkably well. >> it is not broken and it is close. we talk about have to -- having to deal with these situations. so, it is not such a shock impact. we have to look. >> do you like the internet of things? you have timing to talk about this. the nasdaq is rising to a high. if you are a study of history or the charts, what is to give us a peek of the record high? it does not

one guide is hsbc's preliminary reading. in august factory activity in the world's second biggest economy slowed to a three-month low. a reading above 50 indicates expansion on a monthly basis while a figure below 50 points to contraction. the august flash manufacturing managers index came in at 50.3. the index is down 1.4 points from july's final reading of 51.7. >>> and that august figure was far below the market consensus, hurting investor sentiment in mainland china and hong kong. major benchmarks fell more than 1% during trading hours, although shenzhen ended in the positive there. the downbeat data triggered profit taking in the indexes. in hong kong the hang seng closed down just under 0.7%. 24, 994. shares of major issues took a hit and these include market heavyweight financial hsbc holdings and chinese internet giant holdings. taking a look at the overall picture in the region, bellwether indexes finished mixed as you can see there. investors jittery about the outlook for u.s. monetary policy. the worst performer b

you mentioned the data today flash pmi numbers from hsbc market. the private forecasters for manufacturing activity. these are preliminary numbers, so they are volatile. they are subject to revision. but a three-month low at the headline, 50.3. the market was expecting 51.5. so that is arguably telling us of the need in the system. happening second has come back after settlement to some fairley reasonable levels. at one point, we saw shares decline in six months. the shanghai composite was down 0.4%. the kospi down by 1.4%. the weaker won weighing on the market, as well. the nikkei 225, though, is one of the big gainers today, really benefiting from the softness in the japanese currency. it's helping the exporters on that particular market. then we'll talk about southeast asia and tell you about the jakarta composite. having reasonable data today despite political uncertainty. these reports breaking over the last hour or so from the capital. indonesian police have used water cannons and tear gas to disperse people waiting on a court ruling for an e

couldstrikes me that hsbc be one of the most exposed institution out there. people are talking about that being a possibility on the credit side. you might see a problem generated by the fed. it could be an institution. i wonder if the numbers are a foretaste of that. he said exactly that. he said forget about what is going on in china. look at what comes through in latin america. >> china could be part of the story as well. 14.2% of their revenue, latin america is 15%. thatu've got countries could generate problems. >> there are two other themes here. shrankbad loan charges to $1.8 billion down from $3 billion. the costs are rising. his investment banking revenue has dropped $700 million. take away the noise. bank has-capitalized good geographic distribution of a couple of hot spots to keep an eye on, one is latin america. pointond and equally sore is asia. filled -- here talking about banks. the financial crisis is still here with us. we still have so much more news to get through. thank you very much. let's turn to the situation in the middle east. last --

howhen you look at hsbc, much is being sent on a risk compliance?but it is necessary. we have grown from something like 1500 to 6000 people. about $1 billion a year on compliance and risk elements. ithink as you look back, might be necessary. it has been investment that was under spent in the past. as technology supports trading we will be able to moderate that cost. we will have institutionalized that as businesses usual. >> when you look at firms that have come back and the fines that have come from abroad, how have they been calculated? some people would say the numbers of been plucked from thin air. how do we get from point a to point b and get this outcome? >> every circumstance is different. all of the circumstances are emphasized to all of us. it is important to have a good compliance culture and in control of our business to avoid getting caught up in circumstances that can be very expensive. get the fine and then there is another hurdle. it seems like there is something always on the table. for the industry as a whole, when we get past this

max, i have to refer to this hsbc article in which hsbc's warns of risk of inversion. are fearful of being punished for mistakes in the tough regulatory environment. is that what you are hearing? yes. i do not think it is the summer 2014 thing, either. seeing of robert wolf talk reminds me of another bob, the former head of barclays, who said the time for apology and contrition is over, and that was years ago now. i think wall street has had a few years of feeling like this, of being beat up, and they want to take some risk again. i am not sure they will be able to do that with regulation. >> what is the mood right now? i cannot get a handle on it. people say it is terrible, it is slow. is that true? >> i have the same problem because people insisted to me that they are bored and that the markets kind of stink and there is no excitement. on the other hand, these banks continue to make a lot of money, especially compared to other sectors of the economy, so hsbc, for example, it is doing ok. >> they are making a lot of money, but they are not necessarily growing. it is a

number, you hsbc's are looking at them up 60%. -- 16%.mbers for a bank that has taken on so much risk. are they better at managing it? >> that would be one argument. >> you would say that they are better? >> there are two arguments. one is that they are better than any other banker and they are able to allocate risks faster on the balance sheet. they are not able to get hit by detriment spirit of generally -- detriments. generally when you grow as fast as you do, and parents are one or two cycles behind. issue.mes an it is about six months that -- back, but management have a lever to reduce the gross balance on the balance sheet which means long growth will slow,. they have said that impairments have grown by the high to mid-teens growth but the outlook looks ok. willnk one of these two come down. >> you have great stats from earlier. in terms of peter sands' delivery -- >> total return in those states, 3%. the share price performance, -3%. the ftse index is down 6%. >> i think those stats are fantastic. -- banks europe analysts were look

hsbc posted a 12% drop in pretax profit, missing estimates.coming week too many mcdonald's menus in china. beef and chicken items were dropped when a packaging company was cut relabeling expired meat. mcdonald's is using other suppliers now. >> very good. good morning, everyone. business leaders meet today in washington to discuss the future of investment in africa. the discussion has been pushed aside by the ebola virus. the republic of liberia is shut down. -- theseols into our are international correspondent. he is in washington. this is front and center in the white house, isn't it? >> absolutely want to have a legacy in africa. i see it as an opportunity to grow the economy domestically. get companies here involved in africa. the problem is we have talked about before, china spends an awful lot of money. you look at their footprint in africa, close to $200 billion. china is not using the business protocols we do. do we have one or both arms behind her back? >> we do. but we also have some wings. we sell airplanes to the africans. at where

hsbc and standard chartered have pulled out. earnings that were higher with double-digit growth.he lack of new models in the u.s. has seen sales fall to roughly half of what they were a decade ago. follow aims to double global sales to 800,000 by the year 2020. speaking of china's car market, a total of 12 japanese auto parts suppliers have been find charges of due to race fixing scandal. -- a price-fixing scandal. the companies were found to have colluded to reduce competition. >> our anti-monopoly investigation into such moves is aimed through a store -- to restore competition that is post to exist in the market and this particular interests of auto manufacturers, dealers, and consumers. story. for one last a healthy dose of playing -- bl ing bling meets k-pop. psy's video for "hangover" which features snoop dogg. top stars are a gamble. out theh arden singled sales of taylor swift and justin bieber's perfumes for causing the biggest loss in the perfume industry. >> thank you. top to take a look at the trends online including a stunning video. some of the divided reaction to th

bill knight is head of the climate change center at hsbc and joins me now. what exactly is a green bond? i guess there is no common definition for it, right? >> well, right. i mean, the momentum in the green bond market certainly has taken itself away year-to-date. we've already surpassed the level of issuance that we saw in 2013 which was sub-11 billion. but you're right, what does define a green bond? well, there are many different issues that you can look at in relation to green, but most of them central and low carbon energy, energy efficiency, a movement to a low carbon transport infrastructure. but indeed, this is why we need to see the green bond issuance that we are seeing. the labelling provides a signaling mechanism. what it signals is that entities are looking to finance a sustainable economy and investors have got appetite for the deals. >> why do they have appetite for these kind of deals? is the yield pretty attractive or is it really more about the feel good factor of investing into these green bonds? >> i think it's more about telling how the

after the pmi number, the flash estimate from hsbc manufacturing activity, at a three-month low. we saw a big sell-off of the hang seng. but the market has come back and the shanghai composite has recovered, as well. prebl investors are front running the idea of more front runners coming into the system. hsbc put out a note today saying in all likelihood, we could see some bolder action from the pboc, a cut in the main policy rates or even a cut in the rrr are something that for the hsbc is looking at in items of policy measures. so all in all with all of these markets, louisa, just marking time really ahead of janet yellen which is the maybe event for this week, of course. back to you. >> sri, thank you. >>> we were talking about jell-o last hour. >> jell-o? >> yeah. >> loads of people say trying mixing cherry, orange, raspberry jell-o with cranberry relish for an awesome side dish or dessert. use less water. whew! >> i'll stick to strawberry, louisa. it's a staple on our table at birthday parties. i remember it well when i was in short pants. >> i know. and no to the person ask

britain's share index halted a three-day losing streak on monday because of hsbc.ares after first-half results -- after the first-half results, the shares of hsbc rose at the highs of the session, and that accounted for nearly half of the ftse 100's gains at one point. the gains, despite a 12% drop in pretax profits in the six months to the end of june to only $12.3 billion. that was just below analysts' forecasts. lady and gentlemen, back to you. >> thanks, michelle. stocks have been up and down this morning. right now basically flat after the dow, nasdaq and s&p all fell by more than 2% last week. so do traders see a deeper selloff on the horizon? the one and only art cashin weighs in next on "squawk alley." with all the opinions about stocks out there, how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason

then a little bit later we will be speaking to hsbc chairman to get his take on the future of bankingthe microsoft cloud goes down. we'll take a look at what was behind the glitch that shut down microsoft's cloud computing business for five hours. what it means for chief 'secutive satya nadella turnaround plan. ♪ >> time for today is in good news. -- report that air asia is japan's third-largest airline has risk of going out of business. the region's biggest budget -- theypulled out of deny there been any discussions. that was on twitter. paying as deal to much as 300 million dollars to resolve claims by new york's banking regulator. suspiciouslag transactions after promising to do so in 2012. a person with knowledge of the matter said. lindt chocolates reported first-half profits that the estimates. reiterated itso outlook. >> microsoft cloud computing was down for five hours yesterday. jack clark joins us now on the phone. what went wrong? multiple key components failed in multiple data centers around the world at once, which is the concerning thing. tend to only fail in a single re

hsbc says this is a one-off event and you will see return to form in rate hikes. mark barton. these are the headlines. s caretaker prime minister has lost the support of its own party. the group is urging supporters to drop maliki. but maliki insisted the attempts to re-place them are illegal. >> it is a conspiracy being hatched inside and outside the country. we cannot surrender to such a constitutional breach. >> ukraine is open the door to compromise over humanitarian aid. the country says it is ready to accept the russian shipment of whereund for two cities pro-russian separatists are surrounded. will inspectit the aid first. russia. and eu warning pretextse the aid as a for an invasion. a top presidential candidate in brazil has been kllilled in a plane crash. investors are trying to assess what the campos death means for the october election. house prices are growing at their slowest rate since 2011 according to the latest data. for more on the reasons behind the slowdown, we are joined by a senior economist, joshua miller. welcome to "countdown." and i mean

hsbc says she will emphasize undesirable slack. slack, slack, slack.s she is going to be dovish. for that reason, b.n.p. paribas takes a different view. they say any hints of hawkishness. that will have a bigger pact. they remain short euro/dollar. mario draghi, the e.c.b. president, how does he go to the party? on the one side of things, he has a political message. he wants france to reform. he doesn't want the pressure on him to be to do more. he wants the pressure on the politicians to do more. on the other side, the trend on the euro is lower. that's a big call. back to you, anna. >> see you in 25 minutes. of course it will be time for "surveillance". tom keene joins us with a preview. no doubt you are thinking about what janet yellen is going to be telling the markets. wall street is not invited this year to jackson hole, is it, tom? >> no. janet yellen a big speech today at 10:00 a.m. morning eastern time and on to the 10:00 hour where we hope to hear from mario draghi. mike mckee saying there was a wave of rain yesterday across we willd eat theo

you look at the preliminary hsbc , just barely above water. that is the wake-up call, they say. recover at theo 25,000 level. we were below that slightly this morning. the first half, $58 million, $70 million last year. a lot of challenges for the company backed by warren buffett. another carmaker has had its share of challenges this year. the stock is up 4%. a slight drop in earnings, yes. but citibank coming out and saying buy. price target is $37 a share. we are at $32 right now. recalls, about 15,000 vehicles. , a you look at sinopec fairly big move in what is a fairly heavily-weighted stock. 7.86 a share is where we are trading right now for sinopec. , man's best later friend and possibly employee of the year. we report on the economic value of working dogs. next, making a good connection. kong exchange tests going well. this is "asia edge." ♪ .> turning to the markets now china has been on a bit of a rally since last month. >> the way things are heading -- link,s hong kong-shanghai what are you offering for investors? -- asm ages perspective lookingspective, we are at the

citigroup, and hsbc holdings have operations or accounts linked to the investigation.ix prosecutors assigned to the case say they are reviewing byk documents delighte provided police. openings in the united states rose in june to the highest level in more than 13 years. the labor department reported today the number of unfilled thousand climbed i-94 4.677 million -- to million. data, it indicates that there are about two unemployed people competing for every job opening. what does this mean for the rest of 2014? how will this help guide the fed monetary policy? janet yellen says she has that dashboard of jobs data she looks at. >> you can for down even more fine tuned. persons computing for everyone job. the labor market is really beginning to tighten pretty substantially on that level. in general, her d ashboard has people who've been unemployed for a very long time, so there are discrepancies. we are gathering momentum, picking up speed. the jobs market is clearly improving. what we need, we have discussed this before. we need to provide training programs, possibly r

morgan, it hsbc, and deutsche bank have all been involved in discussions with investors. according to a person familiar with the meetings. dropped 1%,razil the most among equity benchmarks -- in therica's americas, as a poll showed resident doma recep winning in a runoff. -- president dilma rousseff winning in a runoff. that is your latin america report for this friday. big changes for the ncaa. the biggest college athletic programs are being granted hershel autonomy. lee idol is a professor of sports management. welcome back to "bottom line." good to see you. >> good to see you. >> anything i say and that intro that was wrong? >> no, everything is right. >> what about partial autonomy and athletes getting a piece of the pie? >> we are marking a different time for the ncaa and student athletes. they are student athletes, of course, to begin with. two things we need to be conscious off as we go. one, this is a new time for student athletes. an opportunity to do some work, get paid for it, in a sense. the other, and i think the bigger story is the ncaa as an organization, a

year low in the china hsbc services pmi. the market itself, in asia, broadly shrugging that off.ghtly higher, 6879, 1.6879 for us uk. that leads us over to what we're expecting from the u.s. to give you a look at the agenda today in the united states. the july ism services index will be out. factory orders, as well. we've got lots of earnings, cvs caremark, actavis, adm, coach, liberty media, mgm resources and time are out before the results. after the open, disney, active vision blizzard, zill low, groupo and take-two. a first on cnbc interview will be at 4:00 p.m. eastern. >>> now straight to markets, dan from tia crest joins us from new york. thanks for getting up so early. pmi today is going to be quite important, not just theover all numbers, but the individual components, too. what do you expect from the markets today? >> obviously, we want strength. we want a feeling that could support earnings. but we want so much that we think the fed is going to advance today that they're going to raise rates. i think this back and forth between the two, hopefully the better than expect

all volume until we get some clairety tomorrow from china with the flash hsbc pmi numbers and jackson hole. steve, back to you now, sir. >> thank you very much, indeed, for that. how many of commerce bank group do you think the german government has got? it has over 17%. you think commerzbank and you think all of those problems that we've seen throughout the eurozone and concerns about capital, concerns about zombie loans and all that. did you know this stock is up 38% over the last 12 months? yes, it's coming off a bit. not bad considering all the problems that this company has got. there you go. my screen says 38, but it's 33. the german government says it's sees no reason to sell commerzbank stake now. according to an official, german government has received the -- regarding the bank state says the finance minister. maybe i need to read that one and get geoff cutmore to interpret it for me. let us move on. >>> islamic state militants have released a video reportedly showing the beheading of a u.s. journalist. the white house says it's urgently working to verify its authenticity. th

hsbc came in at 50.3. if it is confirmed on september 1, it will be a three-month low. latest minutes over the federal reserve show policy makers came close closer. some participants were increasingly uncomfortable with the fed's plan to keep rates low for a considerable time. many participants said they may have to raise rates sooner than anticipated. a touch hawkish. we're going to stay with the fed. the u.s. central bank holds its annual monetary policy in the mountains of wyoming today. michael mckee got an invitation. he gives us an idea what investors expect to hear. a conference, research papers assigned, explained and discussed. the advent of q.e. changed all of that. for several years, ben bernanke used the fed chair's keynote speech to outline fed policies to come. we don't yet know what janet yellen will do. analysts say she is likely to split the difference. say that markets still need improvement without saying what the fed could or should do about it. she may update her dashboard. high levels of long-term unemployment and part-time work. permanent conditio

jp morgan, city group, hsbc and is other banks are fading fast with damaging consequences with argentina'sy weak economy. the former president of argentina's central bank was here earlier today and spoke to us. we're asking why the talks broke down so quickly. >> there was a big hope that this would include lead to some solution at least. clearly at this moment there's a stalemate. they're waiting for further negotiations. it's a very peculiar situation. the deposit cannot be made to pay the credit. there's legal injunction. >> we'll keep a cross on that one. >>> look at this. it was the engineering her car length of the age admired scandal during conception. panama canal opened 100 years ago. today 5% of the world's maritime trade passes through this 50 mile or 80 kilometer canal. 1 million ships have passed through it since it opened. katie has the report from panama canal. >> when it was built, it was considered a huge fete of engineering. what's more amazing is little has changed. standing on one of the three gates, 27 meters high, absolutely massive. originally these gates were operat

hsbc at a high. it was a beat on the official statistics. >> it certainly was. it appears the chinese economy is gaining momentum as policymakers and the government are trying to maintain their official growth target of seven and a half percent. if you take a look at the official numbers, we had 51.7. that did eat estimates. it was up from june. -- it did beat estimates. it appears to be gaining stimulusand targeted policies are taking hold. we have seen in some areas of china they are easing housing restrictions and trying to get the housing market to have a bit more steam. in other areas they are maintaining restrictions to make sure you don't see bubbles forming. that has been the key in this process to stroke some growth. together to at least show the economy is maintaining momentum to make sure we do see a pickup in the manufacturing sector. we didn't see a rally in asia because of it. not a huge market impact. in australia the ozzy dollar has not moved, nor has the chinese yuan. watch as china continues to give clearer pictures of its economy. >> warm bree

this came from the hsbc. about the numbers, if they were not -- they were not so good, were they?> not really. an were talking about improving economy. this is one of the last things you want to see if you were hoping for a continuation of the trend of good eta coming out of china. 50.3, still expansion but a big drop from last month. it is short of estimates. we are still seeing a lot of optimists. it is a preliminary number. said, you look at the set of data that has come through over the past two weeks. drop in credit draws. you see a lot of pressure on the property side. and youthat together will get a better understanding of the headwinds the chinese economy still faces. the final number will be in this region. >> markets have rallied but there is one group that has not quite kept up. that is the baby related stocks. why is that, what is that about? back nine or 10 months . the chinese government said we are listening this one child policy that has been in place for 30 or something years. a lot of money went into a lot of a be related stocks. products, formula, diaper makers,

receiving a little bit of move lower in the dollar at this point he read you have a big call from hsbccommends getting into emerging market currencies just over six months ago. decline in these currencies could lead to an exodus, but that depends on volatility. these are your bloomberg top headlines today. russia retaliates for sanctions imposed over the term all in ukraine. dashed over the turmoil in ukraine. we have policy decisions from both the ecb and the bank of england later. the ecb is expecting to keep interest rates on hold near zero, but the bank president mario draghi is waiting on sanctions. -- economistrs predict the benchmark will say at a record low .5%. truce in gaza is nearing its final day. u.s. is involved in talks in cairo to try to broker a lasting peace in the region. isma said another priority to help gaza rebuild and repair the damage done after nearly four weeks of airstrikes and shelling. the israeli army is currently withdrawn from gaza and says it is ready to act if hamas violates the cease-fire agreement. breaking numbers from adidas right here. >> they di

our next guest is from hsbc. ♪ >> this is asia edge. stability returning to thailand.growth. worsensa's job market while inflation is on the rise. somewhat less precious. last isr lost money this year. we will have the latest from ferguson, missouri as the midnight curfew approaches. the police tactics against protesters come under fire. on we are high on the hog some of harley davidson's most iconic designs. >> i am on marketwatch today. look, markets are mixed. that is after five successive winning days last week. their volumes are quite like. had bits and pieces of economic data coming out. growth numbers out of time and.

that's when we have hsbc releasing its private gauge. let's not forget the june reading was the highest in the year. it will be interesting to see where this falls. but property a latest concern and the numbers make that very clear. >> hints of the red flag. just hints there. thank you for that. >> other stories making headlines in the latest shake-up of businesses in china s everbrithe group to revamp ownership. everbright employs 50,000 people, has 450 million in assets from banking and brokering to tourism. >> portugal's central bank has taken over struggling lender banco espirito santo. tapped nontaxpayer funds funds, using money already set aside, and it is already getting a new name, it is novo banco. >> daimler says it is cutting prices for spare parts by 15 pers%. this comes as beijing investigating auto makers for possible price manipulation. other frands like audi have so cut prices amid the crackdown. stoking u.s. economy giving auto makers a boost. sales in july indicate deliveries may be heading for their best year. craig, w

hsbc reading of services pmi is not really encouraging.t eurozone, services pmi set to come in at 54.4. >> construction was strong yesterday. >> above 60. contracted,ly didn't it? a percentage of the gdp was negative. >> i will talk to kevin daly of goldman sachs later on. wages, growth is at a 2009 low. unemployment is at a 2009 low. how do you square that at the meeting and inflation report later this month? >> do we not care? the bank of england underestimated. >> you will have to tune into "on the move" to find out. >> jon will be here. more on israel and hamas. we will see you nice and early tomorrow. ♪ . >> welcome to "on the move." jonathan ferro. we are moments away from the start of trading. futures indicating higher. china and hit records. what does it mean for european trading? mark, let's start with you. >> profit last quarter down. do you know why? because of charges linked to san bailed out by bank of portugal over the weekend. they have written it down there value to nothing. almost 15% in credit. it was the second biggest c

hsbc will emphasize slack.>> the fairy godmother of the bull market. >> i can't find a single analyst that is looking for anything but a dovish speaker today. they want to try to reduce the importance of this meeting, take it back to what it was. if you look at some of the invitations that got out, some key names on wall street. the chief economist didn't get an invite. a want to make it less of a wall street event. with rates where they are, and talk of rates going up soon, they are never -- of course, of course. this is my favorite one of the moment. volatility,he vix, use it to protect yourselves, market are going to correct. the vix is dropping 31% this month. investors are still pumping money into a product. it is called the daily inverse vix. againsts you to bet volatility rising. this is an interesting one. the last time we saw this was back in january when the market went bang, snack, recovered. equity markets recover very quickly. the vix, this is a bet that you can make. we haven't seen this level of

foreign sector and the banking space within iraq and an, you have very -- your legacy positions like hsbcooking to get out. as it grows, people will see it as an opportunity because the credit ratios in the market and the savings and wealth that are in the economy have not been activated and put into force. in the same thing with real estate. you cannot build projects without some sort of stability and confidence that the area will be safe. l, you've already seen it. some turkish developers have been very active. >> and for foreign companies -- for some foreign companies, they get to own the real estate. that is very different from other places. >> like saudi arabia, for example. >> right. about -- i mean, this is an economy that was largely state-controlled under saddam hussein until 2000-04. if you look at any economy building up in the first 10 years, you'll have growing pains, service issues, getting normal things done takes a lot of time. as the money comes in to finance that, you will see some opportunities. but in the meantime, it's slow. little time for that scale to build up. >>

overnight, we got disappointing hsbc pmi numbers.nce.ot germany, the composite eurozone number came in below estimates. this is for the month of august. we are getting early readings. where do you think we stand? >> clearly, the russian situation has created i think another element of difficulty, particularly potentially denting some business confidence. i think that is the key thing. that doesn't mean that is going to go on forever. there are talks and hopefully things will be resolved. hoverher thing is, as we around that 50 level in pmi, we should expect given the fragility of the recovery and in example,s, france for the sluggishness of it, a slow path to recovery. we should not be surprised by the small volatility around the 50 number. for me, what is important from here and given what we have heard about the fomc and jackson hole is, do we have room for much weaker euro? if people anticipate -- >> 1.30 two already down from 139. >> that is beneficial for europe. i think if we had a further gap between the two currencies, that w

there, hsbc is there -- are they willing to extend credit to argentina under a vague promise they willometime next year? >> you mean credit to pay elliott what they are due? >> they would purchase the debt off of elliott or there were intervention by international banks -- >> just making clear what they are providing reddit for. >> if they were to buy the debt off of elliott and the other plaintiffs, and get paid back by argentina at a later date -- >> even though it has taken elliott 10 years to get paid. >> there has to be a wink and a nod from the government this is ok. and what risk manager, office manager is going to ok a wink and a nod from a government to take on -- >> the pledges to repay them might be interpreted as violating the rufo. i am not sure that a week and not will be accepted if it is a government that is not the u.s. >> if it is not actually a problem. >> the chances of this getting done, even last week when the clock was running out, it seemed like everyone was pretty optimistic. after this weekend, it feels like some of the major players are not so sure. >> bonds

, that this investigation, which involves check, is not of the scale that we saw in the case of or hsbc or standard chartered. those are really big and ultimately really expensive problems for those things. are there more such settlements two,? >> what i can say is we have been very active in these investigations. we are continuing the investigations. i would not predict what is going to happen when, but we are still very much looking into the areas and i think you can expect us to be active. asked what people want to know and the reason i will follow-up paribasere another bnp lurking out there? $9 billion, guilty pleas come a settlements with your office. standard chartered was self of $1 billion but still in the many hundreds of millions. from what you know now and what's you can tell us today, are you aware of violations of that scale that would result in a settlement and potentially guilty plea on that level? >> i really can't comment. i cannot predict the future. what i can say is every time we look into these cases we take it one at a time. is simply a concerted effort by an inter

hsbc, the bank of per sha. still a registered name in bp by the way. if you go to bp offices, they hold on to the names, reuters a very colorful past in iran, one of the reasons why -- said roiters -- one of some reuters y journalists had difficulty go to iran.s to it's a deep background to this feeling. now, this nationalization crisis that began in 1951 resulted in british losing their largest overseas asset. asset in t overseas the supply of oil. okay? you have to bear in mind if you british t at the perspective. britain just came out after a war, it was bankrupt, in debt to the united states, the last thing it wanted to do was to overseas largest economic asset. okay? moreover, what's striking. f you look at it from another perspective, britain just el elected a socialist government nationalizing its industries. the iranians said, well, we can too.t socialism at home for at work.sm that didn't work. the british got upset about this this rprisingly and said is dishonest. we have an agreement. the agreement would have taken timing. to 1979, good but

and earlier on this week, hsbc saying this environment of litigation of confined stops any risk taking on part of our employees. that is pretty bad for the bank earnings, it's pretty bad for the markets overall. >> you've received the same thing in barclay's. the actual results in terms of earnings and share prices are quite disappointing. i don't think you're talking about 100 or so million dollars. and in the context of the overall market cap, it could be small. >> and the profits. but it's the fact that it's continuation of this. >> all right, helia, thank you so much for this. appreciate it. >>> in other earnings news, ing shares are slightly higher after reported pretax profits ahead of expectations. ing up 1.5%. and telecom italia down 0.73% due to weaker demand from brazil and a tougher economy. swiss re down 2.4%. they were down heavily in yesterday's trading session. and telefonica, of course. swes re is lower than expected by analysts. citing weak prices in the insurance industry. and finally, let's finish things off with hannover re. down 5.2%. net profit rose 10%. that was

recently hsbc would increase the headlines. it would increase its six pay allowance. i think your degree of viewers know that the bonus, and there's always controversy. but it's not, remember, just a banking sector. we've got network rail here in the press today again. they paid for their directors. massive bonuses, despite the fact that there were loads of engineering work. so there will be a lot of eyes on the number that's gone to bankers here. up a billion pounds from last year, that's massive in the face of all of this increased regulation. but overall in the economy, bonuses are up in general 12%, massive increase. >> and it's worth noting, interesting nugget of information, the public sector decreased from 6 of% to 1.3 billion pounds. this is partly due to the privatization of royal mail. of course. >> they've really pinned down core wages in the sense of he hasn't been this level of wage increase since they've used the back drop of the financial crisis to some extent to say we're all in this together. but what they've properly introduced is that as we start to

the final hsbc figure was marginally down on the flash estimates while the official pmi came in stronger than expected. those readings at 51.7. you can see the reaction across on asian markets. the shanghai composite has been trading a little lower in the session today. in fact, i think stateside it's having more of an impact on these markets than the data points. bond markets shaping up like this, you've got prices down across the charts. yield in u.s. treasury, 2.57%. it's been elevated to gdp numbers came in at 4% in the second quarter. could see some price actions there on the back of the u.s. nonfarm payrolls. bonds, 1.17%. 2.6 gilts and in italy, tracking below that 3% mark, but slightly more elevated there on the charts this morning. foreign exchange markets, we're still seeing some strengths in the u.s. dollar story. 1.338el 2 euro/dollar. 102 yen. the aussie is still below .93. and slightly softer in sterling. joining me now, galtan with insignia, perhaps you can give us a sense of your feelings on markets today. why was there such a strong reaction? why such a sell down in one

wednesday we get the hsbc flash pmi, so that should give us a sense of whether we are seeing stabilizatione chinese economy. remember, property, that sector still remains the weak link, still remains in clear and present danger broadly for china. back to you now. >> good to see you today, sri. thanks indeed for that. >>> robert shiller thinks the u.s. stock market looks very expensive right now. the noted yale professor and economist writing in saturday's "the new york times" says the cape ratio, which is a seasonally adjusted measure of stock prices which he helped develop, is at worrisome levels. shiller says cable's seeking to keep adjusted price-to-earnings ratio is above 25, a mark that's only been surpassed three times since 1881. this was in 1929, in 1999 and 2007, which were followed by major drops in the market. let's get a view from carter worth, chief market technician at stern aegean, joining us now. thank you for joining us. is shiller right? are we at worrisome levels on the s&p? >> well, i think it actually was a very interesting article that many of us read, and what's impo

a unit of elliott management, the $25 billion hedge fund, had been talking to jpmorgan citigroup, hsbck, about the possibility of relieving them of some of this position that they've been, of course, in court over, and argentina has been in technical default over, but talks have fallen apart over concerns, kelly, that the argentine government simply was not going to negotiate with any holdout creditors, be it the unit of elliott or these banks. back to you. >> and kate, this after the judge's ruling that if argentina continues to advertise the way it did, it will be in contempt of court. so many moving pieces here. >> there are, yes. >> thank you. >> the saga goes on. >> i know, from argentina. thank you. >>> macy's the latest retailer to blame the consumer for weaker-than-expected sales. is the consumer really at fault or is shopping behavior generally changing? we're going to take a look next. and we want to know whether you are shopping more or less than you did five years ago. you can weigh in at cnbc.com/vote during this segment. so, get your mobile devices ready. that's coming up

we saw that with the pmi numbers last night, we had a three-month low with hsbc flash numbers. that was kind of expecting given the declining activity that you saw in the previous numbers and also -- >> is everybody really anxious we call the shadow banking giant in china? >> a little anxious. when i talked to some investors, they say take a look at what china is doing now compared to the u.s. in 2008. we don't have a credit event in china. >> what i worry most about -- >> the -- the thing that scares me most about china, and i hear two things, and that is that social media, 1.2 billion people now know how the rest of the world operates in terms of private property and free press and the ability to demonstrate and push back against the government. they seem to understand that, you know, if there is total chaos, that wouldn't be good, either. so they sort of go along with the party. when did they actually say look, we're not moving fast enough here. we need more of what everybody to deal with. they call this a capitalist economy. by i -- >> you've been in the finest hotels in al