that is the word of hsbc.arrison doubles down on cost-cutting after missing estimates. -- ericsson doubles down on cost-cutting after missing estimates. customers at the convention. melania trump echoes michelle obama. this is bloomberg. ♪ london.:12 in let's get to bloomberg near -- bloomberg business flash with nejra cehic. nejra: nintendo's -- lasting more than a week. nintendo's values have jumped above $39 billion expended in -- extending a run. the app became a global phenomenon. the company said a record -- set a record. -- mcdonald's japan has seen its shares jumped after it started eating away figurines based on pokemon characters with sales of happy meals. nintendo's pokemon go which is sparked a frenzy still is available in the car 10 -- in japan for the cartoon series. novartis shares are dropping this morning. it increased its spending on heart medicine and faces declining sales and its best-selling cancer treatment. -- in the low single-digit's and the constant exchange rate. sales will be unchan

hsbc -- with rigging the markets.hsbc and its competitors have already paid over $10 billion in civil penalties in the probe. we are going to hear about this sort of thing for a long time to come. emma: will hilderbrandt with all the business news. stay with us. we are taking a short break now, but coming back in just a few moments with more of today's news. a a a bq 07/21/16 07/21/16 [captioning made possible by democracy now!] amy: from the republican national convention in cleveland, ohio, this is democracy now!

fabio is the european economist at hsbc.hat i want to show you first of all is this function here. as the train. it gives you an idea where the trade flow is for the united kingdom. top of the agenda is germany. followed by the u.s., china, netherlands, france at number five. let me bring fabio, the european economist, at hsbc. this is an interesting dynamic. it is with germany. france needs us. germany needs the u.k. everybody needs a good outcome. fabio: the u.k. is the consumer of last for the eurozone. certainly, there is some truth in the argument that you wouldn't want to erase paris. that trade surplus of 50 million euros with the u.k., they will think twice before raising tariffs. for example, merkel didn't speak much yesterday to that difficult trade-off between, can the u.k. stop immigration and yet retain access to the single market? we couldn't believe there is no incentive to raise tariffs, but there's a political argument whereby it is very difficult to accept a deal where they can allow the u.k. to stop immigr

we speak to hsbc about a reality check. outlook negative.'s review of turkey leads to a downgrade. the central bank needs today. can you deliver the cuts -- can they deliver the cuts the president wants. pokemon go. has areaming service price hike. we have a new end. guy: the market is now opening. let us see what the european open looks like. the white line is the ftse 100. looks like it is softening up a little bit. you can see it looks like we are getting a negative start to the day. is somethingf that that has been priced in to the comment. -- it is also -- the dax isthe also opening up softer. as you can see from where we finished yesterday, the markets are pricing in the negative story here in europe this morning. let us go below the headline level to see what stocks are on the move. let us get the details from manus cranny. manus: is it a lack of stimulus? or is it a cause for breath? sachs is going to set the tender. thisll drop by about 18% year. perhaps there is a bump in fixed income trading at the end of the quarter it is not eno

. >> two traders at hsbc have been charged with fraud. >> the global head of foreign a formertrading and colleague have been charged with using insider information to profit from a $3.5 billion currency transaction. it is part of an investigation into manipulation of global markets. hsbc and its competitors have already paid more than $10 billion in civil penalties over the probe. >> a story of how a youtube video led to a billion-dollar takeover. >> this has to do with a company called dollar shave club. it was introduced to the world in 2012 with a tongue-in-cheek video explaining why their razor blades are better than the competitor. it has since expanded into other grooming products. tohas just been sold unilever for $1 billion. >> what a clever bit of marketing on youtube can do to your bank account. thank you, stephen. time to see what is making headlines in the world press. good morning. we are talking a great deal about donald trump's nomination of mike pence as his running mate. trump-likeun- running mate. he was the ultimate anti-trump trump and the crowds loved him for it,

stephen major with hsbc, what does that tell you?fore we dive into it, bear in mind that there is only one measure. the other thing is for that dividend yield to be right, it has got to be paid. it has to be at the level we are assuming it's going to be, whereas with the bond yields you will get the coupon. having said all of that, it does argue that bonds are looking british. -- is looking a bit rich. i'm going to be careful how i say this. i'm not going to call the end of the bond market rally. it's not the time it could well be that we have a scenario where the bond yields stays low for a long time,, and i'm talking five or 10 years. you can imagine that bond yields stay at these levels for a long time. that should be good for equities and certain kinds of companies for those that are going to pay the dividend on a reliable basis, it should be very good. gambit, you said about the mix -- i know someone who was talking about zero equities and all bonds in gold, that doesn't make any sense. this is an argument for thinking carefully

hsbc has promoted from within for the new ceo.ficant here. he has been with them since 2002 and he was in charge of global banking and market forces for the main region. it is not necessarily that he is so important but it is the person he is replacing. he was the ceo for this part of the world. in may they made several changes. a cabinet reshuffle and consolidation of the ministries. it became the petroleum and mineral resources minister. him is to bes for the new ceo for this part of the world. give some conductivity to the saudi government. tablerhaps see the whatever those vision 2030 and other blueprint that will achieve that vision and the national transformation. putting through those deals that have requirements for advisors and bankers coming back. is trying to consolidate here. sources are telling us that the lebanon operation is up for grabs at the moment. discussions with the lebanon bank are underway as well. those discussions are in process at the moment. thates are also telling us the turkey operations that we are l

ofmark johnson, the head global effects at hsbc was flying into jfk.apprehended and arrested. we are expecting charges. it will be wire fraud. it is related to the forex currency investigation. the department of justice has been working on it for four years. what will happen, we are not sure. that is still up in the air. government hasn been pledging to cooperate with lawful investigations as they seek $1 billion in assets linked to the embattled state fund. they denied having assets in the u.s.. what is new? >> what we know is what we had from the malaysian government. they say they will fully cooperate. that of wrongdoing is proven, the law will be enforced. one minister pointed out that any claim must be treated with caution. it must follow due legal process. all of the reaction, after u.s. prosecutors said they will take action to seize assets worth $1 billion -- civil lawsuits have been filed. prosecutors say that billions misappropriated from 2009 to 2015. >> the u.s. government willing to stop 2 big takeovers in the health care industry. they fi

that me wrap things up with a look at hsbc, shares are down. to the outlook or creditwatch hsbc, as with other banks in the u.k., rbs, royal bank of scotland, and barclays. hong kong listed shares paring back from the lower close. 10, 13, and seven, by hold and sell. from whereut an 8% we are. angie: china's foreign exchange reserves rose last month. we have more. reserves have been falling as china tried to keep the yuan stable. we saw late last year after china haduation that to defend the currency, spending 513 billion dollars trying to defend it, so that whittle down 3.21 in the last month, which was an increase of 13 billion. last year saw the first time since 1992 that they had a full year annual drop. we have been seeing it's that the again, but it has stabilized. it has actually gone up in the last month. you have two factors in june, brexit and china in their fx reserves has yen, and the yen appreciated. they also have the pound, so keep that in mind, but also you have indications that the pboc is not intervening as much, basically all

the risk for hsbc right now?ber one risk think, the number one risk is still ongoing global growth disappointment. we see it in the u.k. first. potentially that whittles out. policymakers are back to scratching their heads about what else can do. it is not like there's anything perfect. maybe it is something that forces a larger degree of global policy cooperation. that is not an environment where you can really look for global policy cooperation. mark: janet, great to see you. thank you for joining us. bloomberg. "surveillance" is up next. i will be speaking to george magnus later. --mer finnish prime minister european stocks were holding onto gains for the fourth consecutive day. you're watching bloomberg television. this is bloomberg. ♪ >> diminishing risks. the fed takes a step towards a second rate hike but stopped short of committing to september. credit suisse, and unexpected return to profit. and double trouble for shell.

even hsbc, they will look at the u.k. operations to determine the bonus.looking at the bnp. bob measure of political risk in the eurozone. it has been surging since late 2015. it tries to use headlines to measure political anxiety. question.e key fallout, butonomic -- or they political will be redoing that vote for president, it will create a much longer term issue. and i think we seek global political uncertainty depending on the outcome. joe: interesting is ahead on the politics front. is up next.ou miss it less than four minutes to go until we hear the bell toll on wall street. the dow jones industrial average down .6%. s&p down .7% and the nasdaq down .8%. ♪ joe: moments away from the closing bell. closing --stocks ♪ u.s. stocks closing lower this afternoon. oil falling more than 4%. joe: but the question is, what a jew miss? -- what did you miss? we break down the biggest moves. joe: is the decline in the u.k. deficit a good sign or a bad one? matt: yields fall to an all-time low. what does it mean for the rate ? market minutes and asset classes. i wa

this is mark johnson, hsbc had of foreign exchange. he does trading in london.a brooklyn jail. charges of minute be leading the pound, to take advantage of inside information, $8 million for the bank. the arrest is for an allegedly front running scheme, involving $3.5 billion in currency transaction. that is the big legal case. take it down, we have been tracking the story for quite some time. yesterday, the u.s. department of justice looking to seize more than a billion dollars worth of assets looking towards singapore. they found anomalies -- excuse me failures in the anti-laundering controls in the group.trol summit to bear in mind here they say the lapses for specific processes, and mas did say this does not seem to be pervasive control weaknesses. misconduct. the third and most important an imposingy is erdog a state of emergency. you are seeing the lira bounce back from a record low. with that in mind, let me get straight to dubai. i have my colleague, yousef gamal el-din being. he will take us through this chart of the hour, in terms of what is going on i

the sale is part of hsbc strategy to shift towards select asian markets which it deems more promising than brazil. >>> the chairman of spanish bank says m&a is off post brexit. in an interview, chairman said merging was almost impossible. and lse shareholders are expected to approve a merger with deutsche boerse. german market regulator had raised concerns over having the headquarters of the eurozone exchange outside the eu. results of that vote are expected a bit later today. joining us now is a reporter, gustav, thank you for joining us. we're about an hour away from the actual vote taking place. yes, ls chlt shareholders expected to approve it, but questions remain. how realistic is it that this is brexit-proof? >> as you have seen, they said brexit might make the deal more compelling. the vote seems to be quite okay as far as we hear from the sources. people seem to like the rationale. we'll see in a few hours what the outcome will be. we will see the result of 12 of july and anything can happen i guess. the big outstanding uncertainty might be regulation, will germany approve the

hsbc was not one of those banks. the unemployment rate in the u k has dipped below 5%.o british jobless rate fell the lowest since the third quarter of 2005. the number of people working rose to a record almost 32 million. that is your business flash. vonnie: let's head straight to the markets desk where julie hyman has the latest on some movers. julie: looking at some travel stocks right now. united continental is out with earnings, so we have been watching the shares. their hang onto a gain of 3% right now. second court of profits beating estimates. they saw a drop in operating costs generally and that counterbalanced some week fares and some week pricing for the company. justnteresting among not united but all the airlines is that they are trying to have some capacity discipline here. fored says it plans to trim 2016 and increasing capacity to know more than 1.5% from last year. it prior plan had to expand as much as 2%. united and its peers are seeing declines from unit revenue. it is trying to stream capacity in order to combat that phenomenon. however we are also

johnson is hsbc's global head of foreign exchange cash trading in london.ore summer barbecues may be on the menu in the u.s.. began port production at a record high and it does not look like it will be slowing anytime soon. between the burgers come a ribs and porkchops, could get even cheaper. cattle prices hit a five-year low. your bloomberg business flash. julie hyman is looking at airline stocks. julie: we have southwest come out with earnings and it did something it has not done in five years, it missed analyst estimates. not something southwest does very often but earnings per share missed analyst estimates by about 1.4% coming in at a dollar 19. it is something folks are not accustomed -- $1.19. the couple he saw declining there's for customers also paid above spot market rates for jet fuel because of advanced contracts. southwest was very good against hedging against a fuel rising. fuel has been falling. this is something that disadvantaged it during the quarter. shares are down by 9% and we see pressure on some of the other airlines as well. southwe

, since on the ftse friday, hsbc up by 3.6%, standard chartered up i .5%, rbs, 32%.re's a bit of irony, those two in the green. michael: earlier this year, those two were getting hammered for their asia exposure. right now, it's what's helping them out, diversification, not being is exposed to europe, which people see is slowing down. the others certainly feeling the pain from what is perceived to be an economic slowdown. michael, thanks for using metaphors. set to ease capital demand after the brexit. bloomberg news reporter michael moore. we are seven minutes away from the end of today's equity session. bonds rallying around the world, yields plunging to all-time lows. we are going to dive into the credit market, but vonnie, breaking news. reading these headlines for my bloomberg terminal, attorney general loretta lynch on the probe into hillary clinton's e-mail and private e-mails. she is speaking of the absent ideas festival, and she has been saying the following. at the meeting between her and bill clinton, questions about that meeting were fair. it was fair to

let's get you up to speed involving a story with a hsbc manager who has been arrested in new york and charged alongside a former employee with wire fraud. front run a 3 $.5 billion transaction to benefit themselves and hsbc. >>> let's give you've a view of how the italian banks are faring ahead of the decision today. it's bmps really pushing higher, but 1.1% and banco popular higher as well. we'll joining us now is fran which he is co-and julia is still with us standing by. let's get to you first. >> reporter: well, nancy, i think he's going to be asked more broadly about the banking sector and the hit it took of course across europe as a result of that brexit vote down 20%. it's managed to bounce back a little bit, but there's still significant concerns about the need for further capital i think. and that does very much pinpoint is italian banks too so he's going to get asked questions about whether or not the bail in rules that impact both sub and senior debt in particular came too early if for italian banks and what can be done. quite frankly i think he's going to skirt around the

the sale is part of hsbc's strategy to shift resources towards select m asian markets. >> the chairman of the spanish bank sabadell says they are off. they said it was almost impossible given the recent fall in banking share prices. >> we need to check in on our markets in asia to get you up to date with bhaes been taking there. singapore, a lot of people focusing on australia and wondering whether or not we are going to see a hung parliament there. >> that's right. time will tell. the next couple of days is going to be absolutely crucial. we still have got the postal ballots to be assessed and counted but in the meantime the government, turnbull is very confident with the risk of the minority government. the kingmakers are the minor parties in the independents. i want to talk about stock specifics. it has been a day of high drama. the hong kong listing and the a share listing. let me start with a share. they rejected an attempt to oust the board. investors responding positively to that. a-shares went down by almost 10%. it resumed trading after a six-monday hiatus pending restructurin

is the hsbc global equity strategist joins us now in the studio. where should investors be going to find safety? ben: i mean, if you are looking for a safer haven, it is the u.s. very close equity market, exposed to the global risks. and we think we have seen short-term in earnings expectations. if you want the binary trade, i think it is emerging markets. we think the scariest words in finance from even though the global cycle is cooling down a bit, em can do very well. oliver: i want to ask you about that em proposition but first the original point that we can think of equities as a safe haven. we talk about 20 times trailing 12-month earnings. how do you measure that? ben: it is really short-term versus long-term. long-term, clearly the top of the earnings cycle. earnings expectations for next year are far too high. i think all of that is irrelevant right now. i would argue that in this world where uncertainty is going higher and will stay high and maybe we are mispricing it somewhat here, which maybe we will talk about in a minute, the shorter

hsbc was not part of that settlement. at the moment, i do not know.e looking to find u out. jonathan: these issues take a long time to play out. we have had a few settlements and now we have one personal one. winnie: how much effort does the department of justice put into this? charges against people who are foreign traders is hard in the u.s.. bring evidence back to the u.s., this guy was working out of london. in london, prosecutors have had a hard time making cases against individuals. what will happen here, we're not really sure. if there's more to come, that is up in the air. just this week, the fed barred everone else from working in banking because of his role in these activities. jonathan: the stock dropped initially on the back of the news and then snapped back. it is in the stage of the investigation where it's less about the company and where individuals. winnie: that's generally what's true. david: that's usually because the company has turned state evidence. alix: there has been some corporation. winnie: the company still has to reach a r

hsbc is back where it was on the 23rd prior to breck it. >> potential. let me spin it to your interview with jamie dimon on monday, we're looking so much forward to at 1:00 eastern time. the main issues you hope to hit with jamie are what? >> listen, definitely touch on the divergent performance we've seen from european banks to u.s. banks. u.s. q2 earnings were pretty good and the results of the bank's stress test here got lost a little bit, because they came out the day after the brexit result and were pretty strong. i don't think we've grasped on that. and isn't as bad as european banks. the woert sector. look at that. and brecxit is a big topic. is the fallout as bad? pull people out of london? the political situation here as well. interesting, as we look at the debate, both sides of the political debate unite on beat anti-banks over here. getting perspective from here will be fascinating. >> not to mention following gdp today. the first half of the year in the u.s. growing at a rate of 1% after the revision downward to q1. interesting to sort of get

stephen: if we take hsbc as next apple, again, their ceo said they may have to move to 1000 investmentirly large exodus. barclays may consider moving some to dublin, which will likelye -- which will remain in the eu. they will have to look at not only the structure of their bank , but where they will put their people in the region. i'm looking to see what investment bankers have been up to and i just pulled up a chart here for western european deal volume in yellow and deal count in red. they have been on a decent trend coming into 2016. they have come down in the last quarter. do we expect deal activity in london or the u.k. to really drop? stephen: we are seeing a lot of deals held up as people wait to see what relationship britain will have with the eu going forward. if you are looking for a silver lining, you can argue that everything in britain just got a lucky breast the pound fell against the dollar. got lucky as the pound fell against the dollar. ♪ shery: this is "bloomberg markets." matt: the s&p 500 is off nearly 1% in the day's session. eric is the senior portfolio bank and

hsbc saying, u.k. stocks are in for a big hit, mark carney can't stop this.u concur with that? does this perpetuate? you think we have seen the most on the run on sterling done? >> i think most of it because it is such a dramatic move, but i think it will still go lower from here. y overweight with large caps. ftse 100, 75% of its revenue from outside the u.k. i think anyone watching this channel knows that. the mid caps are much more of a domestic play. i think everyone is holding their breath to look at some of the data coming through. rates will probably go down to zero at some point in short order. and then, we have quantitive easing. donal griffin stays with us. anna: up next, turkey's central-bank delivers their decision. this is bloomberg. ♪ manus: on review for a junk rating. moody's -- president at a one sorted that's president everyone boarded -- president erdogan ft. hood -- by the year end. game on for nintendo. pokemon go phenomenon has helped .o push the cap more cost cuts for ericsson after missing estimates for a second quarter, we speak to th

britain's hsbc is thinking about moving 1,000 employees based in the british capital to paris. western media report morgan stanley of the u.s. has set all working group to look at relocating its european base from london to another city in the region. they also say britain's barclay's bankk is looking at dublin as a possible relocation site. >>> the lord mayor of the city of london is trying to put people's minds at ease. jeffrey evans says the financial district will stay competitive. >> the width and depth of london's offer is vevery considerable. it's not so easy to move activities and businesses to other centers. it's one of these areas of uncertainty. but we are very clear we have ambition and intention to remain in a leading international financial center. >> evans will visit japan next week to explain the effects of brexit. he'll be meeting top executives of japanese financial institutions and corporations. >>> japanese automakers are rorolling o out new models of ss cars to take advantage of their renewed popularity. toyota motor has remodeled its 86 for the first time

britain's hsbc is thinking about moving 1,000 employees based in the british capital to paris. western media report that morgan stanley of the u.s. has set up a working group to look at relocating its european base from london to another city in the region. they also say britain's barclays bank is looking at dublin as a possible relocation site. >>> now, let's see what's going on with the markets. wall street was closed for independence day. european market players did take profits overnight. and we saw losses on all three major indices over in europe. now let's see what is happening here in tokyo this tuesday morning. for that we'll go to ramin mellegard at the tokyo stock exchange. good to see you. good morning. what are you seeing over there? >> very good morning to you, ai. we're seeing a little profit taking here. i'll get to that in a second. still a little uncertainty hanging over the markets despite the rebound we've seen for the nikkei and many european and u.s. markets as well. u.s. markets were closed for july 4th. they'll be back later today. again, some uncertainti

out to be a series of international banking or development positions with the world bank, citibank, hsbc and the united nations. return to go liberia in 1985 she ran for senate seat but after speaking out against military regime she landed in jail and again fled the country, back once more a decade later she ran successfully for president against the war lord charles taylor, then again went to exile with the transition to democracy in the general elections of 2005 she ran a second time for president and won in a runoff, grab lg -- grappling of widespread poverty. same year that she shared the nobel peace prize with other courageous women all recognized for, quote, nonviolent struggle for the safety of women and women's right to full participation and peace-building work. her story is told in the new book, choosing the hero by riva levinson who is a guest and is here and as head of krl international, communication and relations firm, riva represents lie -- lyberian interest and she talked her way into a job at a political public relation's firm founded by paul manford. yeah, that paul man

the hsbc shares fell in the last second and the whole model was scrapped. been designing it for seven years. the exchange took different models and analyze them and this is what they came up with. it is not 100% perfect, but better than the system they have now. rishaad: what other improvements is the exchange and visi envisig now to make it more attractive to investors? traders,nd managers, brokers, that will be a big improvement. sessiony the trading ends at 4:00 p.m., and you have 10 minutes to complete the close. rishaad: thank you very much indeed. going for growth. the g-20 looking to build on global presence. ♪ ♪ rishaad: a look at our top stories, regional stocks on a positive start as investors await policy decisions from the boj and fed. the weaker yen giving tokyo of those. numbers showing exports weakening, dropping for a ninth straight month in june. then to know shares plunging with billions of dollars wiped off the market value and early trade after the company released a statement saying the financial impact from pokemon go would be limited

percent.p i-44 giant,the supermarket hsbc, removed it from its top list of european stocks.s owned by walmart, and may be about to fundamentally reposition on price, bringing down sector profit. scherzer 8% lower, since september of 2014. news developing in the last half hour. henderson's as many two after liquidity pressures. management, 3.9 billion pounds three other real estate funds frozen 9 billion pounds of asets after brexit sparked flurry of redemptions. usdon values could plunge much as 20% within three years of the country leaving the eu. managers, on the ftse 350, falling as much as the 26%.of june from 12 to that is sizable. vonnie: absolutely. thanks for that. in.s check courtney has more from the newsroom. courtney: president obama will slowdown the current troop withdrawal from afghanistan. he maybe enough about a half-hour ago at the white house. ofsident obama: instead going down to 5500 troops by the end of this year, the united states will maintain approximately 84 hundred troops in afghanistan into next year through the end of my administration. >> presid

it has taken place and other global things like hsbc.08 hsbc had retail operations in 60 countries. that has been cut by half. ranks realized by offering all surfaces to as many customers as possible is not as profitable as focusing on hybrid individuals, which make up larger percentages of their profits. businessman inc 2006. 53% came from and corporate investment banking. that segment grew to 75% while profits from retail banking shrank. consolidation in the u.s. as well. citigroup had 2100 branches before shutting one third to concentrate on cities getting out of businesses where they do not see a pathway to getting the returns they think are appropriate. amanda? amanda: the second-largest bank has a muddled message for the market. commerzbank losing money thanks to factors beyond its control. it is setting aside a pot of cash for global investors. why is it committed to this business as usual dividend and what does it imply for the rest of the lending sector? what it meansth that we are seeing an erosion of that core capital base, 11

you have citigroup and deutsche and hsbc with positions.se are the back office jobs they may well look to move out of the eu. if we lose a sizable chunk of the city, can the u.k. make up for it in manufacturing? we are talking about a weaker pound but it is mainly foreign-owned owned companies that are exporting so much. how quickly can the fabric of the u.k. economy change? rupert: that will depend on the nature of the relationship. i think jamie dimon is saying whether we keep passporting, i think there is a low probability of value to financial services. i think the struggle is going to be maintaining as much as the single -- as much of the single market in other industries. what investors that depend on the single market, that is where the real meat of this negotiation will be. when you talk about sterling, it is still down more than 10% but we saw after the financial crisis that is not an automatic boost for manufacturing. the price response to a lower currency is not that great. many companies are competing on quality and relationship

the years a series of international banking or development positions with the world bank, citibank, hsbc, and the united nations. returning to liberia in 1985 she ran for a senate seat but after speaking out against the military regime, she landed in jail and again fled the country. back once more a decade later she ran unsuccessfully for president against the warlord, charles taylor. then again went into exile with the transition to democracy and the german elections in 2005, she ran a second time for president and one in a runoff. taking charge of a nation shattered by years of civil strife and grappling with burdens of widespread poverty. she was reelected in 2011, the senior she shared a nobel peace prize with two of the courageous women, all recognized for their nonviolent struggle for the safety of women and for women's rights to full participation in peace building work. her story is told in a new book, "choosing the hero" by riva levinson was also a featured guest to this afternoon. i'm happy to say it's actually here at the moment. as head of a communications and government rela

and hsbc executive has been granted bail after being arrested for the fbi as he planned to fly out offoreignlobal head of exchange in london appeared in court and had to surrender his export -- passport. manipulatingges of the pound to take advantage of information. he is accused of front running the currency transaction in 2011, $8 million in the bank. he left the bank two years ago and remains in the u.k.. he is expected to face extradition from the u.s.. the pair are the first individuals to be charged in the long running inquiry. rishaad: thanks. still ahead, targeting kfc and apple over the dispute and the south china sea. details of that later on. gold, our next guest saying it is a good hedge be the biggest surprise for the market this year. ♪ asia-pacific stocks at 2016 highs. wall street setting a string of records. r the good times back for equity investors? -- are the good times back for equity investors? we see these record highs on wall street in a year when i so much news. fewer see any clarity and potholes as we go to the second half? as you said, the first half felt li

morgan and hsbc have indicated they must move jobs out of the country.'s messaging app has raised its price of the ipo to as much as $1.1 billion. the demand and market conditions as it prepares what could be the largest tech ipo of the year. -- after delaying plans to go public two years ago. china's postal bank has revealed an 11% jump in profit ahead of its planned shares which could be the world's biggest -- the hong kong stock exchange showing a net income in a three mark -- stanley,achs, morgan china's international capital, jp morgan chase and bank of america -- which could raise $8 billion. global news, 24 hours a day, powered by 2600 journalists in more than 120 countries. lun.haidi this is bloomberg. big m&a deal may be in the works in china is financial sector -- in china's financial sector. discussed more that, stephen engle. >> it is enough of that suit. -- alphabet soup. basically a lot of these chinese financial companies merging. they want to make them stronger. china international capital corp. is cofounded, morgan stanley back in 1995.

[applause] our valuable financial services sector has been boosted by barclays and hsbc bosses, sayingir plans are to stick with the u.k.. -- stick with the u.k. [applause] i will work tirelessly to reassure investors that the u.k. is open for business and a great place to employ people. [applause] when we come to see the post eu figures, i expect to see continued growth. i expect to see people buying goods, going about their normal business, buying their homes and yes, enjoying a pay rise. i would expect high standards of company behavior, recognizing their obligation for their communities and to the employees. mine will be a realistic but optimistic voice. i believe we have a great future ahead of us. [applause] ms. leadsom: we need to unite. we need to be positive. we need to make the most of our enormous strengths. we are one of the world's biggest economies. we speak the world's international business language. our contract laws and judicial system are second to none, inspiring great investor confidence. we are part of a commonwealth of 2.3 billion consumers, many of whose economi

an hsbc executive has been granted bail in new york after being arrested by the f.b.i. as he prepared to fly out of j.f.k. airport. the global head of foreign exchange cash training in london faces charges of manipulating the pound to take advantage of inside information about a client. johnson and a colleague are accused of front running the currency transaction back in 2011 reaping $8 billion for the bank. he left the bank two years ago. he remains in the u.k. he is expected to face extradition from the u.s. they are the first pair of individuals to be charged in of misconduct in the foreign exchange market. turkey has declared a three-month state of emergency. army units will take orders from governors meaning the country wobet be under military rule. he blamed the uprising on followers of the u.s.-based cleric. thousands of army officers, judges and prosecutors have been arrested. rish? rishaad: thank you very much indeed for that. let's talk to you about oil surge. it decided not to submit a counterproposal. it means exxon must wait to see whether total will go it

hsbc has risen since june 24. our place down by 25% -- are placed and by 25%. lloyds lower. rbs, since june 24, has lost 32% of its value. quite incredible. on igo insane year. indices are higher here. let's check it now with courtney column for more from the new york newsroom. >> president obama calls it a vicious calculated attack. police in dallas called it an ambush. they say snipers opened fire during a downtown protest against recent police shootings. five officers were killed and seven were wounded. so worth to civilians. please exchanged shots with one suspect -- he said he wanted to kill white officers. police sent in a robot equipped with a bomb. would havetions exposed our officers to great danger. the suspect is deceased. of detonating the bomb. gorton: three other suspects have been arrested. the dallas police say they are not sure they have caught everyone who was involved. dallas killing has for the presidential campaign on hold. hillary clinton has canceled an appearance in scranton, pennsylvania with five president joe biden. she will still speak at a church

. >> the banks that had global empire was citigroup and hsbc.rgers of banks that were present in previous qualities -- colonies of the british empire and other places. and in some cases, providing typical banking services to everybody. small, large, whatever. but now, everybody is pulling back and saying we really want to focus on the most profitable client and the most profitable sense. citibank is still bolstering they have 80 trading floors around the world. but they don't want to be everybody's bankers to everyone. david: it has reduce the footprint somewhat. >> in turkey, citigroup had 50 branches. and they were in all the major cities and small places. now they have a handful of branches, which only do corporate banking. david: we had this financial crisis in 2008. how much is this a philosophical one, versus them realizing there is a new regulatory regime and it is more difficult to be in that kind of business? david: the cost of doing business is more tangible. the shareholders need to have a bigger stake in what is going on and have to

. >> the banks that had global empire was citigroup and hsbc.mergers of banks that were present in previous colonies of the british empire and other places. and in some cases, providing typical banking services to everybody. small, large, whatever. but now, everybody is pulling back and saying we really want to focus on the most profitable client and the most profitable sense. they are not necessarily leaving all of those countries. citibank is still boasting that they have 80 plus trading floors around the world. but they don't want to be everybody's banker to everybody. david: there are wonderful graphics to this piece. they used to be in russia and are no longer in russia. it has reduced that footprint somewhat. >> in turkey, citigroup had 50 branches. several thousand employees. they were in all the major cities and small places. now they have a handful of branches, which only do corporate banking. david: we had this financial crisis in 2008. how much is this a philosophical transition. that these banks decide this is not the light of busine

they are off of the lows and the hsbc low, up by 8%.he rebound in barclays shares is helping it to wipe away some losses. since the referendum, it is down by 16%. ba, second quarter profits falling by 8%. anher costs offsetting improvement in earnings. torres,f executive, mr. looking to accelerate the technological transformation while investing in financial technology companies. shares are up by 2.5%. let's go to the first word news. the latest from our newsroom in new york. >> hillary clinton warns that when donald trump says that he alone can solve america's problems, alarm those should ring. last night, clinton accepted the nomination for president saying that any man who can be baited with a tweet cannot be trusted with nuclear weapons. clinton says it will take more than one person to make america great. let's be stronger together, my fellow americans. let's look to the future with courage and confidence. better tomorrow for our beloved children and beloved country. when we do, america will be greater than ever. >> clinton and run

justice department will not pursue criminal charges against hsbc over money laundering.ouse committee report reviewed by the "wall street journal." the report alleges eric holder misled congress against the decisions. a $1.9 billion settlement with the bank in 2012. david: jen steele has room -- resigned from the hershey trust, a charity that controls about 80% of the shares and the hershey chocolate company. she quit over the weekend and gave no reason for leaving. the move comes less than two weeks after her she rejected a takeover bid for monta lea's international. a fourthanice records consecutive month of positive growth. had $29 million last month, bring the funds total assets to $1.5 billion. us returned nearly 2.5% growth over management in 2014. david: and that is your business flash update. vonnie: a quick look at the majors, we start with the british pound. it increased today, up .3%. it was a higher earlier when we got the more certainty around who is going to be the next prime minister by wednesday night. david: much more "bloomberg markets," coming up. we t

london's tate down a half of 1% amid bearish call from hsbc same foot he will be down 7% at the end ofthe year. lauren: investors take a bit of a breather. dow futures down 24 points, which is 0.1%. a quarter% decline after another record-setting day yesterday. train to the latest from the world of sports. alex rodriguez closing in on 700 career home runs. the yankees beat first-place baltimore orioles two to one good the first homerun and more than three months for a ride. only three players have more than 700 homers. babe ruth, hank aaron and terry bond. the yankees now run bullpen trio shut the door in the last three innings. an eight-game losing streak against the new york mets at the five to one win. anthony rizzo hit a three-run homer in the third inning and jon lester pitched for the cubs. the last 10 cubs visited wrigley field, and a finish that today's the world series. the game with a leg cramp in the eighth inning, leading number is two number is to do nothing last night. the royals wasted no time beating up the cleveland bullpen scoring seven runs in the inning. a grand sla

hsbc: a senior manager at holdings has been arrested in new york for his role to rake conspiracy benchmarksirst person to be charged. his arrest comes more than a year after five mobile banks pleaded guilty to raping currency benchmarks. it just bc with not part of those cases. asking walmart is providers to remove eight chemicals from its product. the list of chemicals was created with the help of the environmental defense fund. and that is your bloomberg business flash update. david: now to politics, where donald trump is the official gop presidential nominee. vp, few hours, his pick for mike pence will address the convention. that might not be what people are paying the most attention to. sahil kapur joins us. we will hear from ted cruz, one time running of donald trump -- at this point, how much do we know about what he might or might not say? sahil: it is unclear. i do not think we will see a full throttled endorsement of donald trump in the round that other candidates like chris christie have done. ted cruz, obviously was donald trump's last bitter rival in the primary. things got ver

hsbc really mailed in it when they said bank of japan will deliver a little bit of everything, but nothe big baa zoo ka that some may be hoping for. that disappoint is expressing itself through the prism of stronger currency: broader market gets hit as well. down 1.4%. two-week low for japanese equities. >> thank you very much for that update from singapore, and, of course, the nikkei has been a big far terrctor for all of asi the rest of asia stllugging tha off today. >> if you look, you were mentioning some of the month to date stats on stocks, japan has been stronger in terms of rebound in taupes of fiscal and monetary passage there. also that crazy move to nintendo. i know results are coming up later this beak. pokemon is everywhere and every thing. it's paired some gains and up sharply. bank of japan and also on friday on the european bank stress test results. might have cal jordan gets political. why the basketball legend can't stay silent. >>> good morning, sara and wilfred. what a day yesterday for the start of the convention in p philadelphia. we saw over an inch natural of ra

an hsbc foreign-exchange executive was charged with fraudulent trading pit prosecutors claim the johnson and others traded ahead of clients purchase of reddish pants. pemco appoints van groups many roman. the goldman sachs banker believed in this recovery efforts. hollywood now worries about viewer scores, not reviews. studios that to websites like rotten tomatoes, which average consumer ratings into one score to signal they had seven assists. as with almost everything else around in the trunk campaign comes congressional presidential nominee may not exactly conform to what is considered normal and politics. fox news jay rosen explains. >> in a cycle like no other with the nominee atop the republican ticket, and active political orthodoxy in many ways. most strikingly donald trump striking rhetorical cycle obviates his need for his number two for a traditional role of attack dog. >> hillary clinton is the embodiment of corruption. >> trumping trump takes mike pence a bit off the hook in a sense he doesn't have to go out there and make the charge, but he still has an important role to pla