we have hsbc and rbs potentially in talks to combine their saudi ventures.is a slightly different story than the investment banking one. this comes as concern about retail banking in saudi arabia heats up a little bit. lots of things under pressure by lower oil prices. you might imagine their concerns about loans. we know rbs has been trying to it hasn't0% stake saudi banks. that has proven difficult. if you take one thing away from it, it is the dichotomy between what is going on with investment banking and cannibal -- capital market -- capital markets versus the retail operations. us.ef: do stay with let's get you up just speed with what is up to come for "bloomberg markets: middle east." short capital turns a profit for the first time in seven quarters. we speak to the chairman, next. this is bloomberg. ♪ in hong kong, 8:30 in dubai. these are the first word headlines from around the world. china's navy has launched its first domestic aircraft carrier. it was floating in the northeastern part of zahl yen. a former soviet care that china bought and refitte

hsbc says business isn't waiting. some of its biggest clients have already said goodbye to london. >> it is "bloomberg daybreak" europe. our flagship "morning show" here in london. i am mannus cranny. >> and i am matt miller ahead of this four-day weekend we have coming up here. >> four day weekend. i can actually smell it. it is in the air. there are less and less people this morning. but there is a whiff of fear in the markets. let's have a look. 7767, two things coalescing together. the vehicles up 27%. there is a little bit of unease in the equity mark. no doubt about it what you are seeing is the j.g.b. the yen has behaved classically this week in many dimensions as the u.s.-russian relations hit an all-time low. north korea getting ready for something big. could that be another nuclear test? nd the pan risk is rising. the japanese government bond is back in positive territory. matt, we are back. we are careering back towards zero percent, a level we aren't seen since november of last year there. is a lot of mani

how a potential merger in saudi arabia could create the bank big topgh to challenge the including hsbcst a moment. tr you're watching bloomberg. avy: -- tracy: you're watching bloomberg. shery ahn: operating profit came in at $340 million. 100 million below forecast. a walking 220 million lower than the year earlier. sales were ahead of expectations. kia announced plans to build a fourth production plant in india. $1.1 billion facility. the chinese right hailing have is close to raising $6 billion in a deal that would make it the most valuable in the country. by the phoneeach maker. it would make it the most valuable startup in the world after it over -- uber. after china merchants bank. cards for citizens and foreigners -- regular says it is to prevent the use of cars for terrorist attacks. foreigners make up more than one third of the population and are now limited to two premade -- repaid simms. -- sims. we are going to stick with saudi because the potential merger of saudi bridgette bank -- saudi bank would be the biggest. 40% owned by the royal bank of scotland, similarly owned by

is the biggest of the four divisions of the hsbc.ents are asking for advice on how they would flip their european headquarters from the u.k. into the eu. this has tax and maybe employment implications for the u.k.. if they start booking transactions elsewhere, things start being attractive and it may result in some moves of staff. mark: hsbc itself did not flip. >> it decided to keep its headquarters in london. it still says it is committed, but it is good that they are highlighting the trends they are seeing among their clients. mark: how is the bank doing? >> pretty well. they are undergoing a succession, at the moment. they have a guy coming in from aia. they are already looking for a new ceo. there is a lot of change at the thatand the rock concerns they have not changed enough pending the coming brexit. it is interesting to see what type of tactics and strategies they will use. mark: companies maintaining high levels of cash since the brexit vote. what is the significance? >> they could not been done exactly why but it was noted

hsbc plans to become dementia friendly. i think this is a cracking story.more dementia friendly bank. hsbc says it gets 3000 calls per month regarding power of attorney, which is a big issue for people suffering from dementia and their families. you're watching business live. our top story — south africa's presidentjacob zuma is facing increasing political and financial turmoil as the country's economy continues to falter. it may be his 75th birthday today but that won t stop huge protests against his leadership that are expected to take place today. a quick look at how markets are faring. a firmer start to the trading day across europe. the main indices all in positive territory. that follows on from a more cautious day of trading in asia where investors responded to geopolitical moves with stuff going on around north korea and tensions between america and russia. the korean peninsular. that's sent goals to higher levels and safe haven bonds as well. currencies, the japanese yen, going into the swiss franc as well. japanese exporters don't like that. and n

hsbc recently downgradedjimmy 12% in 2014.d jimmy choo to hold from help to buy as it felt both sales and profits had fallen short. but medical devices and health care giant philips has posted a big jump in first—quarter profits after spinning off its lighting business last year. profits soared to $280 million for the three months to the end of march compared with around 40 million the same time last year. corp profits were up by 18% higher than expected, $480 million. sales we re than expected, $480 million. sales were up 2%. us medical equipment supplier becton dickinson is to acquire a health ca re dickinson is to acquire a health care equipment manufacturer. the acquisition costs will be paid roughly half in cash and debt and the other half by issuing new shares. it comes two years after becton dickinson acquired another company for $12 billion. some interesting news came out of china today. nearly 30 steel firms that have had their production licences revoked for not meeting industry requirements. robin brant is in beijin

stuart haire, the head of hsbc uk retail banking joins me. thanks for coming in this afternoon.bc uk business. we‘re rolling out all of our staff and colleagues and the front of our business and be support department is training to have empathy with customers with dementia. but also a practical guide. we‘re improving some of our products and processes to help people cope better as they deal with their dementia symptoms. what sort of real tangible things could help people? if people are having difficulty remembering numbers how can they remember their pin? there are ideas we've put into practice to have a chip runs signature card, so they can ask that if memorising a pin. they also have roy sidey. so people don‘t have to remember their telephone credentials. you talk about training staff to have empathy, to understand the customers who may suffer with alzheimer‘s. at the same time you are closing hundreds of your branches. how is that going to help people? week announced the end to our branch close a programme which would leave us with 175 branches. we have been closing branches.

tomorrow could be the big one, when global banking giant hsbc faces investors.n his potential pay soar, despite missing profit targets. he could earn up to $12 million. excessive ceo pay has become a big political issue here in the uk. the government has proposed reforms including giving shareholders more control over what top executives get paid. here's what prime minister theresa may said at the annual conference of the bosses organisation, the cbi, last november. the behaviour of a limited few has damaged the reputation of the many. and fair or not, it is clear that something has to change. for when a small minority of businesses and business figures appear to game the system and work to a different set of rules, we have to recognise that the social contract between business and society fails, and the reputation of business as a whole is undermined. theresa may speaking in november. great for you to come in at this horrible time of mourning. this is becoming a huge political issue, and also a moral issue. i am all for, work hard, be rewarded. but when bosses

hsbc down by 1% this morning. let us stay with the u.k..ound surging as theresa may calls for the early general election to win backing or a mandate for the brexit negotiations. opinion polls give her the lead. will vote today. she has a slim parliamentary majority. that was won i david cameron. -- by david cameron. the client advisor at nomura joins us now. why did the market by sterling on the back of this? guest: partly positioning. something new is the thought process going forward, but i think the other thing is that it raises hopes for something i have written about for a long time, a more pragmatic outcome. i think we have to be pragmatic, and i think she's taking a bet that she is viewed as the pragmatic leader who can get a deal, so i think the market has a sense of that in the price. you know, are the medium to longer term fundamentals that will affect the british economy , are in a negative way they somehow ruled out by this, or changed by this, is it possible she could keep gdp growth level, or is it going to be eventually affec

up next, why hsbc says some of its biggest clients are saying goodbye to london.e will talk about that and some of the passport issues. it's a very beautiful picture of london. we will get pound levels a little bit later on. we'll be joined by stephanie saunders. we will talk about some of the policies that the boe could be putting in place. this is bloomberg. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed int

i went hsbc and barclays to get a 100 k overdraft.ry of the two years, i was all in, i didn't want to give up my house. inaudible it was a slow process. it typically ta kes it was a slow process. it typically takes anywhere between six months for a no from a high street bank. and six to nine months to actually getfunding. and six to nine months to actually get funding. those timelines have been extended because of brexit. now you have entrepreneurs who want to build their businesses. the best entrepreneurs have been building in this environment. therefore we have found a good pool of strong entrepreneurs coming to us. that is what has taken our loan book to over half a billion today. that is since the referendum. the uk banking sector needed a change. how have they looked upon... i'm wondering if it isa they looked upon... i'm wondering if it is a bit ofa they looked upon... i'm wondering if it is a bit of a club, a group of guys, it is a bit of a club, a group of guys, little bit snobbish. we focused on what we needed to do. we focus

hsbc says business isn't waiting. some of its biggest clients have already said goodbye to london.

so hsbc, deutsche bank, as you may recall last year hit new all-time lows after the crisis.it's a contrarian trade. liz: tom, we have 10 seconds here. 223 points, does this drive up to the upside tomorrow. >> i think so, liz. small and mid-sized companies are surely excited. great to see both of you. jan von he can, and tom lydon. [closing bell rings. the dow ending up 216 points. it's a record for the nasdaq. david and melissa. melissa: we'll take it. if you were in stocks you were making money today. the dow soaring in the final minutes of trading, ending the day up, 200 points. all the favorite averagesclosings up a percent with nasdaq setting a new record. i'm melissa francis. >> i'm david asman. good to see you back. we have you covered on "after the bell" with all the big market movers. a whirlwind week for the white houses a the president's first 100 days come to an end. president trump putting pressure on congress to tackle health care. of course we're getting brand new details on his tax plan that comes out on wednesday.

recently hsbc upgraded the stock to the equivalent of a hold like arabfor others national bank.d be printing numbers as well. as we crossed the board, they have their numbers do today in the property sector. ac will give us some news. and as wekey risks get closer to the referendums in turkey. we saw the bond spreads in the market.lds of the south african rand holding steady, and holding that 14 handle. a little bit for their away than in the last 24 hours. relatively resilient, relatively resilient in light of earlier this week. david: absolutely. coming up on the program, we will go to london to see what the team has in store for us there. the top of the hour. this is bloomberg. ♪ yousef: a quick clarification on what we just said, the company has reported the number of bed net income at 10.17 ours. we will be watching for more stock reaction when the market comes back online. david: in just over an hour. before that we will be handing over the pond to london. but see what is on the radar there in london. new data on the u.k. economy? we are, as employees. yesterday we saw inf

hsbc making a bullish call on halliburton with a buy rating looking for a 35% upside.is onboard with energy here? >> i think this makes sense as a trade with which is to say that oil has obviously come up above the $50 level and that's getting more drilling going. so halliburton should be an immediate ben fieficiary of tha. inventories will continue to go higher putting pressure down on energy and consequently on halliburton. make this a short-term trade. >> it depends where you are. take a look at stocks that has been a pick. may have upgraded it today or yesterday. that's down from $100. you'll see the u.s. dominate the pricing conversation and they'll keep producing and producing, so you want to go with companies like halliburton on the service side as opposed to the commodity producers. >> we talked about southwest energy briefly on the upgrade. that's like range resources. both of them sliding like this. so if you're somebody with some risk capital, would you take a shot? like steve is saying about range, the answer is yes. but other than that, i'm not excited. >>

we dug a little deeper and hsbc is saying that it should be a positive. growing at 25%.are an investment bank, it will be a good quarter. ofif you look at the results j.p. morgan and citibank, same stories. revenue is strongly up. the problem was the commercial banking revenues were not as strong. it has been a good quarter for banks but the bigger picture is what happens in terms of their future and earning potential. given the fact that yields are coming down in markets and the yield spread has also come down is a big reason why banks have, -- have recouped some of the ins they had from the highs the trump election. they have reversed those. will be paying close attention to this as well because they have done better as rates have been raised. the green line is the fed median projection. but the market doubts we will see this. is this why bank shares have come under pressure -- because the market doubts we are going to see interest rates increase as we thought a couple of weeks ago? >> it goes much further than the last couple of weeks. onwards,ok at two 2009 the banks

hsbc -- exploring a potential merger. a deal would create the third-largest lender in saudi arabia. its saudi arabia unit and the saudi arabians have launched a privatization plan but still block foreign control of local banks. that is the bloomberg business flash. tom: it is an uproar between canada and the united states. speaking with the canadian foreign affairs minister, she is from alberta. she was most certain about canada's position. >> the canadian position has been upheld every single time in court, both at the nafta and wto level and we are confident our position will be upheld again. tom: a stunning development. goesdebate, geoffrey yu, back to 1982, a lumbar debate in the modern age with canada forever. when i look at canada as an export nation, what dynamic is there in their currency right now? it is shockingly week, isn't it? geoffrey: the two aspects, oil prices, in a canadian oil, high oil prices, traded at a discount, and it has managed to reduce exposure to the u.s. over the last two decades. cheaper by 90%. down to 70% but still very high. you have to reassess the

about therom hsbc business they deal with. clients wanting to run trade through continental europe.aving to move its offices out? look, i have a good friend who told me on the day after brexit when i said a lot of people will have to leave the jpmorgan as you saw last week's creating a much bigger doesn'tublin because it just have the investment banking, but corporate banking and a custody business where people are going to have to move out. banks will have to set up other hubs in europe and europe clearly moves out of london, which is what the majority of european countries want, and that will see more jobs moving out. keeps saying we will do what is best for our client whatever the cost. that is the bottom line, people will follow their clients. guy: so clearing goes, does other clearing go with it? there is an advantage in aggregation when it comes to clearing and you wonder if businesses don't just take euro clearing. are we talking about that or very specific bits of businesses? chris: the unintended consequences of brexit, we don't know, so it could be that others move out. i

we've got bbva, deutsche bank, ing, barclays, hsbc, b.n.p. paribas. is rotating out of the financials this monday morning. let's move on and talk about what else we need to be aware of. is a busy week for the buck. the dollar weakened against major peers after william dudley speculated on more aggressive policy tightening in comments he made on friday. this ahead of the jobs data we will get this week. when we talk about some of the other charts we need to focus on. there are a whole bunch of things you need to think about with the u.s. job market. maybe want to take the wider measures, because at the moment you are seeing an inflationary jump, and maybe there is slack. it's an incredibly long-term start, and that is the kind of set up as we go in. before that we get minutes from the fed, which will tie up the loose ends on where policy is going. let's talk about the book, because it is important. it is having a meaningful impact across the world. our guest joins us on set this morning. igetting the dollar right is often getting the market right. are

hsbc on the upside, mining stocks trading higher.art on mliv this morning shows what is happening with freight traffic in china on the chinese railways --hich could be on indicator an indicator that the commodities story is one to keep an eye on. on the downside, the rolloff coming through what is happening in iron ore and metals. thes get back to one of headlines matt mentioned. the pricing of u.k.'s cpi, having fallen back a little, but the change in direction is likely to be temporary. easter to be a factor in this. the drop in oil prices, these petrol prices have come off a touch. the broader trend is still for rising prices. a selloff in sterling. the data on cpi. global head of flow strategies at stock to end his still with us. is the party over for the british consumer? kokou: it seems like it is starting to be the case because you have imported prices going up. -- companiesings taking a hit in profit margin increase but now they are forced -- push inflation to the customer. matt: so how is that going to work out? is the consu

staff at citigroup, goldman sachs and hsbc have volunteered to return to their native countries insideld their employees need to relocate staff after brexit. global banks have begun the process of moving u.k.-based operations to new or expanded trading hubs -- trading hubs in the eu after article 50 was triggered. still what this is darren. -- is this just a bad sign for the u.k. post-brexit? is it all over? becauseations too high no one is pessimistic enough on what is going on in the u.k.? darren: with regards to bond prices? i mean, with regards to bond prices it is interesting as well. but with regards to equity valuations, do people not see the writing on the wall? darren: i guess one thing we are atking at at the firm is last, you have various economies around the world firing at the same time. gets the first time we may some synchronized growth from the u.s., from europe, from japan, from emerging markets. valuations are looking more stretched you might argue. that is the you -- case in the u.s.. in europe, less so but we do need that earnings to come through and that should com

hsbc has said it plans to relocate 20% of its trading staff to paris.s all about managing expectations, still planning for contingencies ahead of the official decoupling from the eu. hanes brand up 10% premarket. preliminary -- earnings coming in on the high-end. this delays week store traffic fears for a little bit. an impressive move for hanes brand. jon: how many hands will go up jean-luc winsf the election? , narayana kocherlakota . from a beautiful new york city, you are watching bloomberg. ♪ jon: from new york city, this is "bloomberg daybreak." as we count you down to a day risk off. yields are lower. 2017 lows. down another basis point on a u.s. 10 year. we come in by .25%. let's get you up to speed on the headlines outside the business world. emma: president trump has indicated there are deep divisions between the u.s. and russia and that relations could not be worse. the president spoke at a news conference with the nato secretary-general. president trump: it would be wonderful if nato and our country could get along with russia. right now, we

hsbc saying they raise their cable call. of dollar weakness, not necessarily because of sterling strength. what would be your call? trend is something that was about policy diversions. seeing over been the last 6-9 months is synchronized global recovery. the dollar has become an idiosyncratic call. outperforms,ing that is not something we are positioning for, but we are positioning for strengthening against the aussie dollar and the euro. they are quite attractive positions to have on. alix: thank you so much. , watches tv online, interactive directly. go to tv on your terminal and ask a guest a question. send us a message during the show. this is bloomberg. ♪ centralbig week for banks, politics, earnings, boj kicks off wednesday, we hear draghi on thursday, friday, the first quarter gdp, not to mention a potential government shutdown. joining us is michael mckee. i want to look to that q1 gdp reading, how weak? really know. all the data have been weaker than expected. the atlanta fed gdp now number .05%. i brought

we are talking about too big to fail or too small to succeed, hsbc headlines coming out now.rg terminal, and mr. flynt goes to the idea of returning cash, conscious of the importance of dividends to shareholders, and then the news about the migration of warm bodies around europe, don't you? guy: you do. maybe, maybe needing to move 1000 to paris. we will see. the banks in london are trying to get really, really creative with how they work around all of ,his, particularly any interim where there is talk of pop up subsidiaries, all kinds of and thebeing explored, banks are creative in every aspect and i suspect this will be no exception. tom: we continue with richard haass from the council on foreign relations, monetary policy, the regulation, and a government shutdown. this is bloomberg. ♪ tom: this is "bloomberg surveillance." good morning. .e want to digress we are focused on president trump's 100 days. richard haass in a moment and where we are in america in disarray, but right now on regulation and the confidence needed in the linkage of government to wall street and the p

they say staff at citigroup, goldman sachs, and hsbc have returned -- have volunteered to return homestill with us are kit juckes, fixed-income strategist at societe generale, and michael grady, economist and strategist at aviva investors. kit, what's your thinking on these developments? kit: ennui trundle. i don't think the u.k. has a clear plan yet. the impression you get is we are still bickering within the conservative party about how to progress. sillystill lobbying statements about small rocks in the mediterranean. owns't know that the u.k. the moral high ground at this point in the discussions. on we go. on goes the uncertainty and the economic reality will come slowly at the same time. people will be moving businesses. people will be moving back to european countries where they are from slowly and the u.k. economy is going to go on slowing slowly. the danger to my mind is does it slow slowly or does it accelerate at some point? michael, your reaction is to be fairly neutral on sterling. michael: as kid says, we are entering into more uncertain territory. next six to 12he month

. >> over at hsbc, 1.6% for the whole year. good call there.mes. straight path up by 16% and 151% gain last week. but now verizon might be interested in bidding for the company. remember at&t had a bid in for the company as well. this of course comes from reuters. straight path owns one of the largest positions in two spectrums. which is huge for 5 g. makes it very attractive to verizon as well as at&t. a current bid is $95.53 share. next up take a look at abbott, wn by 1% but alair up by 15% abbott agreeing to pay $51, original $54 a share. the reason the original deal was threatened because alere was getting a fed subpoena over some sales practices. now, both sides agree to drop the lawsuit so a little relief rally for alere. negative for abbott labs. money gram you're continuing up by over 7% premarket. the bid was upped to $18 a share because of competition coming in for the company. the new bid is up 36% from the original bid. however, anything would still need congressional foreign investment review approval. not a done deal here. the com

oft is more than the ceo barclays and hsbc combine this year looking at the numbers myself.be rejected or not, but this is certainly a rich package for a ceo who has not been delivering on the returns front or restructuring front yet. jonathan: some talent is leaving the likes of deutsche bank. for him to acquire that, he needs an attractive package. he needs that bonus call where it is, doesn't? he? there's an argument that if you don't pay well, your best bankers will leave to other institutions, which was the rational behind deutsche bank paying a retention bonus to about 5000 people. you do have to balance that with interest of shareholders. ultimately if you lose your large investors, there's really not much of a bank left in order to pay all these bankers. there's a fine line between it and credit suite has walked slightly too close to it at this point. we will see when this comes out in the watch. jonathan: stephen morris joining us from london. i want to bring in andrew still with us from chicago. it speaks volumes that we do not hear much about a bonus call on the r