think of the hsbc case. i don't know the extent in which people are familiar with that, but hsbc one of the findings that came out of the investigation into hsbc's mexico operations, was that the boss of hsbc was informed by the boss of hsbc mexico about the enlargement of teller windows in the branches in mexico in which drug cartel money was being paid in extra-large suitcases. so, you can imagine. anyway, he was personally informed about this. nothing happened. the end consequence, yeah, there was a $1.9 billion fine. i think we worked that out -- if you divide this by 10 years of criminal activity, because there were other crimes as well, it comes to 23 days profit and nobody goes to jail. the u.k. boss of hsbc went on to become our very own trade minister. to this day, the worst that happened to him was he spent a day being harassed by channel 4 news who asked him some of these questions. he basically said, i'm not commenting. my point is, i'm not interested in people going into jail and so on but unles

hsbc had a parade of reports for european banks. >> hsbc second-quarter profits beat estimates and then buying back stock. >> we were happy with the first half of 2017's performance, we have revenues heading in the right direction across all major businesses and regions. good credit control, and good cost control. so, another $2 billion worth of buyback we are announcing today, which over the last 12 to 15 months we will make a $1.5 -- $5.5 billion buyback. >> hsbc it is shifting to a growth story, with two quarters of good numbers now. the investment bank performed well on the advisory side. not on the trading side. that suffered a bad quarter. as did a laudable street. -- as did a lot of wall street. but also you had the pivoting to asia, where margins are getting higher and loan growth is there. fewer below the line items, fewer misconduct charges. a few other issues. really we are seeing a much better quarter than this time last year, but they are still not totally out of the woods. >> we have had these numbers from another french banking institution. they posted a net revenue incr

up byeng being driven hsbc. market a half percent higher, the hang seng at the market.es remaining at near all-time highs. coming up, it is a big bitcoins split it could be. on the chart. we discussed that with the founder of ten x. is a split from bitcoin warranted? this is bloomberg. ♪ ♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin with politics this evening. president donald trump has replaced his chief of staff reince priebus with general john kelly. reince priebus's exit came one day after it was reported that the new communications director anthony scaramucci had called a new york reporter and unloaded on reince priebus. he suggested the chief of staff would be asked to resign. this cap a chaotic week for the administration, one that included the president publicly undercutting the attorney general and the collapse of the republican apf

think of the hsbc case. findings thate came out of the investigation into hsbc's mexico operations, was that the boss of hsbc was informed by the boss of hsbc me xico about the enlargement of teller windows in the branches in mexico in which drug cartel money was being paid in a straight large -- extra-large suitcases. he was personally informed about this. nothing happened. there was a $1.9 billion fine. ifhink we worked that out -- you divide this by 10 years of criminal activity, and other crimes as well, it comes to profit and nobody goes to jail. the u.k. boss of hsbc went on to become trade minister. to this day, the worst that happened to him was he spent a day being harassed by channel 4 news that asked him these questions. he basically said, i'm not commenting. i'm not interested in people going into jail and so on but unless you put people who are ultimately responsible for these kinds of activities, the seven years they wanted this money, , i000 people were killed think there's a real complicity,

hsbc led off a parade of reports from european banks. >> hsbc second-quarter profits beat estimates andk said it will spend up. >> to $2 billion buying stocks >> we are very happy with the first half of 2017's performance. we have revenues heading in the right direction across the major business regions. good credit control and good cost control. another $2 billion worth of buy-back we are announcing today, which over the next 12 months will make about $5.5 billion buy-back in total. >> it is shifting to a growth story, with two quarters of great numbers right now. the trading side suffered a bad quarter, as did much of wall street. but also, you had the pivoting to asia, where markets are getting higher and own growth is there. they are fewer below the line items, fewer misconduct charges. so, we are really a much better quarter than this time last year, but they are still not totally out of the woods yet. >> we have had these numbers rom the 60's, another french banking institution posting a net revenue increase of about 20% in the second quarter. one of the few investment banks that

kevin logan of hsbc will stay with us. of bloomberg business week. acquisitions coming under increasing scrutiny. go to bloomberg businessweek.com and subscribe. this is bloomberg. ♪ >> this is bloomberg surveillance. let's get to the bloomberg business flash. prosecutors in germany have added volkswagen's unit to the diesel emissions investigation. that may allow the government to seize profits it made from selling cars with rate engines. rigged engines. -- -- would allow it to use a supplier network already in place. an internal battle over diversity at google has gone public. it began when a male employee sent out a memo arguing that google has a politically correct culture that ignores differences between the sexes. google's diversity team -- chief has weighed in. she said the employee's views are not endorsed by the company. economy: france's minister says france is working with germany to bridge tax loopholes across europe. he also weighed in on france's position to track financial business post-brexit. race ofwin th

david bloom is the head of currency strategy and hsbc, and is still with us.un this morning, trading all the way around. we have not got 120 yet, david. 117, 89 this morning. is it getting stretched? is the euro rally getting a bit stretched? was, youat i argued would get to flip politically. we were worried about le pen, and we thought the u.s. administration was deliver, and now we think the u.s. administration will not deliver, we are not worried about european politics. we are all optimistic about the european cycle. that is priced in. toyou want the euro rallied go now, you need to feed it something new, and i do not have anything new in the locker at the moment. i am matt's down at 120 at the moment, and i am happy for it to be -- maxed out at 120 at the moment. manus: what is that new and different be? could it be tax reform in france? david: tax reform in the united states. have got to guess which one it is, the euro-dollar, i am not trading that it. we have no strategic advantage over the market. no thought process that is somehow different to the mar

so ten years on and we've had results from lloyds and from rbs and others from barclays and hsbc, itg the price? particularly in the case of rbs and lloyds, still paying for payment prosteks and libor. rbs have got a giant fine to come from the us authorities in its role in packaging up the loans for the us housing scandal. ten years on, the reckoning is still to come. how important to you is your work environment? very important actually. the reason i get up every morning! but we're talking about a service offered to office workers. is it service offered to office workers. isita service offered to office workers. is it a new version of regis? it is very trendy. it is very of the moment. all right. let's talk about what you think about this. conrad, "i love the modern glass offices like mine are so light." i can't say we have the same experience. another viewer says, "i hate people eating their smelly lunch at their desk. it's disgusting." have a really good. see you soon. bye—bye. hi there. good morning. fur‘ looking for some hot summery weather, then u nfortu nately for some hot su

majorget back to steven from hsbc.external shock could come from something happening in the markets. steven: i think that is very eloquently put, very elegantly. we would break it down into three categories. there are macroeconomic shocks, data surprises. it could be inflation, central banks and their guidance, their policies. then there are more micro and market-based and these are things that we really don't know . we can't see them, so we don't know. thinking about the amount of leverage in the system, some of the derivative products that are out there, others have spoken about etf's. i don't know that is the source of volatility. we are talking about a possible source of volatility coming from the products in the market, rather than the more macro economic growth. everyone knows volatility is low. everyone know there is lots of liquidity and there are he bunch septembercoming up in and october. it is unlikely that those events are going to do anything because they have been so well-telegraphed. if you can't see it

hsbc is going ex dividend, we will besm and watching the stocks as the open. may see them on the move screen. you can discount if you see any big moves in these kinds of businesses. matt: there is going to be more movement and german stocks, or more action as far as earnings are concerned to talk about. continental is one that has raised its full-year forecast so they missed on their earnings numbers at 1.1 3 billion that they beat slightly on sales and they have raised their full-year forecast more than 44 billion on the revenue side area and deutsche telekom is another one that raised its forecast, it raised its full-year adjusted 22.3 billion to euros, a lot of forecast fluctuations in germany for the most part to the upside with the exception of merck. you have the health care ipo announced from siemens. a lot going on in german stocks. this is bloomberg. ♪ ♪ track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and contro

hsbc says it will happen by the end of this year.edian forecast from .trategist today, the 90 pence we're at 92. slightly weaker pound, weaker euro against the pound. from here, interestingly, out of the 62 participants in the bloomberg currency surveyed, only those two houses, hsbc and morgan stanley, that see the pair at or above one by mid-2018. steve barros says it is not a wee leap of faith to suggest could get up to parity area. it would be full hearty to roll out the prospect of the euro trading the one town market according to an analyst. brexit weighing on the pound lately. weak's gdp data came in come in line with estimates, same as the prior estimate. just up from .2% in the prior quarter. the economy is shrugging along slowly in the first half of the year. this is a great chart to finish today. to see how much central bank bond buying distorted market valuations. take a look at the lowest rated sovereign debt. these are the worst rated sovereign bonds. ,unk emerging target bond deal now yields less than u.s. treasury bill

hsbc witht headlines, a courageous report for european banks. >> hsbc second-quarter profits beat estimatesid it will spend up. >> to $2 billion buying stocks we are very happy with the first half of 2017's performance, we have revenues heading in the right direction across all major businesses and regions, good credit control, good cost control. another $2 billion worth of buyback we are announcing today, and over the last 12 to 15 months we will make about point -- but $1.5 billion buyback. a growth shifting to story, with two quarters of great numbers right now. on the advisory side, they are performing very well but on the trading side, the of had a bite quarter. but also, you had the pivoting to asia, where markets are getting higher and own growth is there. they are fewer below the line items, fewer misconduct charges. much bettereally a quarter this time than last year, but they are still not totally out of the woods. numbersave had these from the 60's, another french banking institution posting a net revenue increase of about 20% in the second quarter. one of the few investment bank

that's the story on hsbc. let's go over to china and shanghai. the trading picks up litter today and ministers are there meeting under the shadow of rising spats and tension between the group's asian members. tom mackenzie is in shanghai for us. what's the mood like as these ministers meet? i will put that question to our next guest, the minister of trade from south africa, robert davies. david in the studio is asking what the mood is like at the summit. what are you hoping to gain from the next few days of talks here in china? quite a lot ofen interaction with our officials in the context of international and trade issues, whether they have been developing the areas of cooperation we will be agreeing on as ministers of trade. there was previously a meeting of the ministers of industry i attended, and all this will feed into the summit, was will take place next month in september. i think there is a businesslike approach and there are a number of important issues on the agenda. tom: what degree do you think the trade tensions between the brics mi

not only is he still ceo, but hsbc increased his salary to on $12 million. goldman sachs admitted to defrauding its investors calls in them to lose billions of dollars. did any goldman banks go to jail? no, they paid a fine and went to work. this is what the holder memo led to. instead of pressing criminal charges, they negotiate deferred prosecution agreements. basically the company acknowledges wrongdoing pays a find and pledges to improve their culture. but nobody's punished. i can cite case after case between 2002 and 2016, the department of justice entered into more than 400 of them. executives and large corporations know that in america whatever crimes they commit the worst that's gonna happen is a fine. a find that they don't personally pay. as one retiring attorney put it, these fines are at most a tollbooth on the turnpike. now jesse argues this is a shocking corruption of our justice system at the heart of it is elite lawyers who make their way multiple times through the revolving door between the justice department and delete -- in 2010 when the s

hsbc operates in the united states through a subsidiary, hsbc usa and we are pleased to be joined byrke. you are based in the united states, they do have u.s. clients but you have a focus overall in china. how is that? pat: i would say the relationship between businesses in the u.s. and china, characterize it as one of a lot of optimism. if i simply take our own numbers of the past year to year, the first half of this year and the last half of last year, we are rough up 30 -- roughly up 30%. to hear a fair amount about restrictions on capital flows from china outside into the west. are those affecting your clients? pat: there will be some cases where you have a client that may have been interested in doing a deal in the united states and they may have to slow that down, but i think the way we think about this is not so much in the immediate term what is the impact, but is there this long-term interest? thehave huge sectors of economy in the u.s. that are very attractive to chinese companies, and regardless of the capital flow and restrictions that interest will remain. under two year

a spokesman for hsbc declined to comment. that is your bloomberg business flash. anna and manus.u. today marks 100 days in office for president emmanuel macron. manus: it is part of a plan to laborup the country's laws to reinvigorate the economy. joining us now we have our guest from paris. we had a guest this morning suggesting that mac run campaigns in poetry and governed in prose. macron is finding that is not going to work in france. does he have a reality check? guest: it certainly is a reality check. the overall record is mixed and the one slightly objective measure we have is the polls. macron since late june has been sliding in the polls and it leave but he is below the level that france will francois hollande was. there has been a few quirks and there have been doubts among some in the french population as to the direction of this government. we will see what happens next. anna: why does it had from here? -- where does it had from here? that could be one of the things that how government how things look in the fall. mark: that labor market reform which is almost true no

hsbc saying possibilities are endless in china as the government opens up the economy. bumps between beijing and washington, the bank says the potential for two-way trade and investment continues to expand. the banks u.s. boss saying china's transition to a consumption-based economy offers boundless opportunities. >> you have a tremendous amount of growth occurring in china itself, greg 6% to 7%, and the u.s. growing also, albeit slower . if you look at the amount of interest both countries have, that interest in the other's business is growing, strong, so from our client face, we see almost an unlimited amount of growth in the next few years. rishaad: for more on what is going on in the banking industry , lloyd blankfein brushing off fixed income business and not panicking because it is working on changing its mix of products and client base. >> we tend to be overly weighted to a client base, a terrific client base we will never abandon, but disproportionally evolved to trading clients who trade with hedge funds and other things. again, we are an investment bank. the m

ben, hsbc.sticking with us f you have a bloomberg terminal, check out tv go. click on our charts and graphics. interact with us directly. go on your terminal, check something out if you missed it. this is bloomberg. ♪ jonathan: no matter who is leading the federal reserve come february, policymakers won't stray from the path they have been laying out for months. they are putting money on that view with positions at least neutral if not bullish on the 14.1 trillion treasury market. the interpretation of the future fed chair isn't necessarily always right, mark. we all thought that larry summers might be a bit of a hawk. found out he might have been even more -- would it be correct exactly ple expect what they expect from yellen? >> if you are thinking about a potential chairon or chair yellen from a monetary policy perspective, the market view is similar. they think their natural bias dedevish. bit more that the actual economy is making progress and not overly reliant on rules based monetary poli

hsbc was here and he called the bunds up to .8%, maybe a little bit higher.does it take to reignite or move the euro trade higher? he said there is little on the road map doing now and the end of the year that could really restart the euro trajectory. the length -- the momentum between one of five and 117 will be difficult to push through the 1.20 deficit. there is a relationship there. the tenure u.s. spread is there in white and this is the euro. , let meit barometer take his back to a time span that caught my eye. it is really beginning to pick up. that could be a false start, or any number of issues in the u.k.. is brexit bill we understand potentially on the table from the u.k.. 36 billion, but there is a little bit of a shift in the brexit barometer. the average prime minister -- the irish i'm minister, the man who holds the political conflict with theresa may, perhaps they need to create a stronger relationship with the irish and they currently have at the moment. guy: thank you. i've tried to piece together what is happening with the stock stories to

it is joining hp's -- hsbc which sees a one-for-one trade by the end of the year.y call to make but is becoming more mainstream so i will be asking a lot of our guests about this chart in the next couple of days. bloom, the character involved in a story. ftse 100, up .1%. let's see how markets start the day. we are accepting -- expecting .4% out of some of these. cac how a little bit. interesting to see how danone performs. dax trading up as well. carrying on the rally we have spent seeing -- than seeing. gain in thebig grand scheme. let's see how it breaks up in industry groups. onn you look at the imap bloomberg of the stoxx 600, many more reps are gaining than losing. materials and energy are the only two lynches so far -- losers so far. consumer staples and i.t. leading the pack as far as the gainers, but eight out of 10 are gaining and two out of 10 are falling right now. let's look at the move screen and see what is going on. standard life aberdeen up by 2.95, two companies that have come together recently. is up, we thought it would be. we thought it would b

hsbc is cashing in on the britain's brexit.crease in demand for hsbc currency accounts, in the u.k.. that is the same time that core made a strong showing against theresa may. francine: south africa's resident jacob zuma survives another blow, then back to leader will remain in power after narrowly the feeding a no-confidence vote. cancloseness of the vote backfire. -- after narrowly defeating a no-confidence vote. we are joined by john fraher, or international executive editor is still with us is john normand of jpmorgan. let's start with our john at the bloomberg. when you look at africa, is unlikely president zuma will have a vote of no-confidence or is it that eat? -- or is that it? it out fornever rule you so much unhappiness not only in the country but his own party. also, he survives eight of these challenges so even if there is another challenge and the immediate future, not necessarily guaranteed it will be defeat. the key date is the party leadership election in september full top -- in september. francine: what does

david: i am looking at a chart showing the morgan stanley hsbc calls. in the coming months, what are you most keenly watching about indications about the robustness of the relationship between the u.k. and eu? mats: for sterling against the euro, you have inflation numbers or on the real activity numbers. so far we haven't had either. it seems bullish for the year so far. on the u.k. case, in the short-term the gdp numbers have been weaker than most would have forecasted. q1 and q2 have been weaker than most people expected. if you saw pickup in that data, that would help. the big one is the brexit negotiations. pancine: thank you tomats ersson. george hear from esther at 7:30 a.m. this is bloomberg. ♪ david: in for tom keene, i am david gura in new york with francine lacqua in london. concernedcurrently about the strength of the euro, this comes as officials to discuss how to wind down the bond purchase program. the 12% gain is a reflection of the economic momentum, he says. we're talking about paul gordon. let me ask you how representative his views a

this week we have had big earnings results from massive multinationals, hsbc, bp and now it is the turnly is here with all the business news. apple doing extremely well. the world's most valuable tech company has published it's latest set of results and they show revenue growing to $16.1 billion for the three months tojuly. that combined with a prediction that it will bring in as much as $52 billion in the next quarter saw shares rise by up to 6% in after—hours trade to hit a record high. apple made a pretax profit of $11.3 billion in the three months from april to the end ofjune, a solid rise on the previous year. this year the iphone is ten years old, but it's not been performing so well in china, where sales this quarter were flat and total chinese revenue for the company actually fall by 10% compared to the same quarter last year. and apple increasingly trails its arch rival samsung in the smartphone market in terms of share right across the globe, which some analysts say is a problem for a company so reliant on handsets for its profits. one way apple has tried to decrease its relia

we are invested in the hsbc china, trying to get the youth in the game, but the administration needs game of golf. had a meaningful impact as a globalize is the sport. rishaad: tiger woods engendered so much interest in the sport. things have gone a bit hair shaped, so what is happening there? rishaad: tiger is managing his challenges and we are optimistic for our partnership with him that he will emerge in a better place and are excited for tiger in the future and looking forward to him on the golf course. i don't think anyone can underestimate the impact he had a golf. whether it was the media attention he brought to the game or the entrance of young players you are now seeing on the pga lookedldwide tours that up to tiger and are now taking the game by storm. the real personalities on the pga and worldwide below 30, it is spectacular. rishaad: thank you for coming on. the ceo of tailor-made. the chinese hedge fund saying the government's grip on the property market could tighten. that and more. this is bloomberg. ♪ ♪ you are back with bloomberg markets. i am rishaad salamat in hon

i did as well, 9322 in the library, it's called investors and investment grade credit according to hsbc. a lot of people are saying that, but is the point here that investment raid credit is extraordinarily safe and maybe this is enough compensation? saferaybe companies are and we are back in that part of the world. indexthe euro high-yield traded u.s. treasuries with astonishing sign posters. , we are hold paper talking about extraordinarily low yields that barely provide any return for income seeking investors. whether you are an insurance company or a retail fund, it points with15 basis yields this low. argument eating advanced this week in fixed income. it's interesting, the local and sovereign debt, how far -- this is a wonderful chart -- how far can that rally go? vonnie: -- sid: if you talk to the bulls, it could go much further. there's a big rally in local currency with inflation-adjusted yields still providing investors in the u.s. and europe with a big pickup. at the same time emerging markets rally relatively early in the cycle related to the credit rally that we seen in the

head of hsbc talking to david westin. coming up next, our exclusive interview with jack dorsey.>> this is "bloomberg markets: asia." i am yvonne man in hong kong. >> i am betty liu in new york square results topped estimates think to larger merchants revenueit but form, rising 40% as customers process more payments and pay the company for loans, deposits, and software. also raised its full-year sales and profit forecasts. emily chang spoke to jack dorsey exclusively in san francisco. business, that is what we are most proud of as we continue to build a business morescales, reaching's small businesses. one of our biggest differentiators in the market is for self-serve. anyone can come to us and get started right away. we are seeing that at scale from the small to the large, so that is the core. square capital continues to be something we are really proud of. i said on the call that we we ared recently that not competing with financial institutions, banks, and traditional lenders. our average loan size is $6,000, so we are competing with people going to their friends and family an

caroline: you are in the middle of morgan stanley or jp morgan, hsbc is based in london as well.uch are you seeing banking sector respond to the rise of block chain technologies and companies born out of it? >> that's a great question. the actual application of these technologies into great financial institutions of the world, it is a long and complex process. you have to look carefully, listen, and look at people building deep relationships. that is what we support at level39. it is not dramatic. caroline: how can it change the way they operate? >> if you consider at the heart of the distribution of trust across networks, the fundamental transformation, many people compare this to the early stages of the internet. the comparison is useful. much of the interest in bitcoin and cryptocurrencies look a little bit like the height -- hype that surrounded the internet in the mid to late 1990's. the transformation potential is probably as hard to see in full now as it was in 1995. caroline: that's an interesting point mark cuban made. from the ashes of some of these bubbles like bitcoin

this seems a bit more dramatic than some of the other banks who are moving employees, such as hsbc andn. why is that? >> indeed. it seems like it's going to be 1/2 of deutsche bank's workforce, and what still is and will for sometime in the future be the trading. this is a huge change, apparently. the reason behind this is they also have a new strategy in place focusing more on the german home market and the european continent. it seems like they are using brexit changes as a trigger to implement further strategic investment and that's why it's a bigger change than from any other banks. mark: tell us more, remind us trade inlets been going on with which bank. -- duetsche bank. it's moving assets from london to frankfurt. remind us about that process. >> so, it's clear there in the throes of a brexit assessment program. john kline said to bloomberg tv last week that he generally does not know what the impact on london will be at brexit, so they are still thinking about it. the best case scenario is 4000 people starting next year and that stretch out over several years. they will be movi

we invested about $11 million bank, theyears, hsbc bush administration, we built two industrial parks so on back it up in a plant that h -- hyun dai could open a plant. this is the work we need to do to help rebuild those communities and set of just symbolicallyere whining about race in america. we are the most polarized. has he is talking about nothing to do with the reality of poor people in this country. bernie talks about income. you can't really generalize about white income versus black income. the biggest gap is between low income blacks and upper income blacks. racism --on is if wire blacks suffering equally -- why aren't blacks suffering equally? where low income blacks suffering and systems run by their own people? these cities are run by black elected officials. black professionals are running our school system, our health care system, our prison system. if we fought for racial equality, why are our people failing and systems run by their own people? these are the issues when he to debate, but we can't have a reasonable debate in this country. that is whether woodson center

andit suisse is banning it hsbc is considering it and goldman sachs is under fire for having done a dealbank on $3 billion worth of bonds back in may. the idea is that these banks and traders are helping the government really keep people under heads of the government to make its debt payments. the actual citizens of venezuela are going hungry. you can see that chart if you want to see that chart at 9374. nejra: a little bit of pain on a friday. the winner is dani burger. we talk so much about the vix and that's a great chart. coming up next, "bloomberg real yield." you do not want to miss this. this is bloomberg. ♪ got you outnumbered. the dinosaurs' extinction... don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here. find your awesome with the xfinity stream app. included with xfinity tv. more to stream to every screen. ♪ scarlet: i'm scarlet fu. l: i michael mckee. jonathan ferro is off today. let: for 30 minutes dedicated to fixed income, this is "bloomberg real yield." ♪ gundlach saying the time to reduce risk is

hsbc is going to move as many as 1,000 people to its paris office, because they have a legacy operationy bought a big french bank. so they have a large paris office it's fragmenting that's going to add to the costs for the banks, there's not going to be one single alternative hub. there's going to be a splintering of their activities across the rest of europe. that's going to be more inefficient for the banks. >> of course it's a story we'll be following quite a bit from the european side of things martin arnold, thank you very much >> we're hearing similar things from the insurers, aig, lloyds of london. sticking with the uk, jim cramer checking in with domino's pizza ceo last night on "mad money." domino shares took a hit last week affleck after lackluster sales. >> it was a little bit weak. it was kind of flattish for the quarter. so there are things to work on it's still a terrific business they're building lots of stores. but we think the value equation there, there are a few things that were working on them. but we'll get it moving again. >> doyle said these are fixable problems a

i would note yesterday that steve major over at hsbc reiterated his call to be at 190.till a little bit up from here, but nonetheless 2.17 today. nejra: sub 2.2% 10 year treasury yield, definitely something to keep an eye on. have a look at where equities are trading right now. really these losses accelerating and you can see losses of more than 1% on a lot of these benchmarks here. the ftse 100 off by more than 1%. basically we have losses in the core and the periphery. we are talking about a weaker dollar and today's session. we are seeing that translate to a stronger euro. also stronger sterling in today's session. in terms of what is happening in the bond space, we are generally seen yields come lower on the 10 year in europe. gold if we look at it in london, it has been short of that $1300 an ounce mark. it is still shy of that on gold, so we are up 6/10 of a percent. taking a look at the stoxx 600 and we are down for a second day , down 9/10 of a percent on the overall benchmark. still edging higher on the week over the five days, just about eating games on the st

--ncine: this is riverbe reverberating as we hear from hsbc.but are more bullish on euro then they see the pound weaker. tom: think is so much. last night with protests, modest protests a cross midtown manhattan, the president chose to visit his, on fifth avenue, just down from bergdorf goodman. there is our kevin cirilli. morning here to more ceos have resigned following the fallout from president donald trump's response to charlottesville. yesterday the president announced the kkk as well as neo-nazi groups and other hate groups, and he announced that the department of justice would be investigating this. by just overnight, three more executives of intel, mark, and joining mr. fraser in resigning from the president's ceo manufacturing council board. all of this of course as -- faces intense pressure not just from the business community, but also from politicians as well. clearly it is going to be quite the day for when president trump arrives that he is here at trump tower, but when he hosts a series of meetings, the first time he will be her

i think the appetite for the french as a core holding and hsbc as a core holding.re probably thinking do i want to invest? kennedy absence of rate increases, revenue -- in that case of rate increases revenue goes nowhere. tell a bank when do we finally see him in a? -- tom: wind we finally see -- tom: when do we finally see m&a? jonathan tyce: i don't see big deals. looking to get away from domestic regulators, if you pay more this hefty 5% of the dividend. probably could be deals but it is a fragmented market, german elite, italy -- germany, italy where you have unlisted banks. personally, it would be very surprising. looking: jonathan tyce at the banks and we will get back to macroeconomics and to oil and inflation dynamics with kit juckes and paul donovan. in the meantime if you want to know more about your samsung or bloomberg.com is where you needed to be to stay ahead of the competition. this is bloomberg. ♪ lacquae: i am francine and tom keene in new york. to sell 5% ofims saudi aramco and an initial public offering from the u.k. to japan are now flying posi

for defending banks like h hsbc anand deutsche bank and credit suissese, all of which have been --aged in cereal crimes crimes since the 2008 financial felonies and settlements by the top 22 banks in the world -- chris wray has been basically doioi nothing b t that for the last dozen years. i think that is a direct conflict of interest. it was an issue that wasn't explored at all by the senate confirmation. fact withbasic respect toto the trump investigation is a very important case involving felix, who was given immmmunity on the part of the eastern district of new york at a time when people like loretta lynch and andrew weissmanan, who is now mueller's deputy, were involved. in this basically allowed felix to go on and raise money fraudulently for investments in the trump soho and quite a few other projects. wray will be asked -- amy: talk more about felix seder. anytime you're talking about trump soho, that is the invevestment of the russian firm -- so many of the millions that were spent on trump soho. james:s: about a $40400 million project. it was failed. born ater was a russian

. >> in the battle, post-brexit, apart from hsbc, no major international bank has chosen paris to relocate is losing the race to frankfurt? >> we will win the race. we will win the race. of attractiveness, because we are taking the right decisions, and because we are standing firm. i think that the questions, that arose during the last month, we -- will they stand firm? we will stand firm. we will take the difficult decisions, we will lower the french taxes. we will make our country more attractive. we will take the structural reforms and structural decisions that are needed. for instance, we will simplify the labor market. i think that many banks, many investors, should be aware that france is changing. and that this is not something fake, it is something true. things are changing, deeply, in france. and that is why we will win the battle of attractiveness. ♪ >> australia and yourself, due to host the next round of the ttp negotiations. i mean, this has been dragging on for so long, dealt such a blow with the u.s. withdrawal. what are you hoping to achieve from this? >> certainly, we woul

more efficient, monetize it, and some analysts have said maybe they're going into the direction of hsbc, which does a good job at monetizing lending how do you think a standard chartered are faring in trying to emulate that model. >> you nailed the right point. lending, for retail customers and for commercials and corporations is the entry point of the financial relationship. the problem is regulations are keeping increasing the costs of those loans. therefore the return on equity on the single loan has constantly gone down therefore there is a number of actions you might want to take or you might want to consider in order to keep the entire business profitable. first one is price pattern of loans. a number of customers are willing to pay more and a number are willing to pay less. price differentiation is the key driver for performance, i think. second one, trying to improve the cost of the delivery go digital even in the emerging markets, clients don't go to the branch anymore. if you improve capabilities of selling products and serving customers on an online basis, of course the avera

charlie: in 2007, hsbc announces losses tied to the u.s. subprime mortgage is this.y knew they were in deep trouble. gillian: the real problem was people knew there were problems , but could not identify where they were. essentially, they built such a complicated system that nobody knew how the inner workings were operating. it was really a panic about what people didn't know rather than what they did know that started the whole crisis. charlie: if you don't know what you don't know, you have a problem in terms of trust, credibility, everything else. gillian: absolutely. as always, the things that caused biggest crises are not always the things everyone knows are risky. is what comes with a triple a label and what seems so normal. what's amazing about the crisis looking back a decade ago, this stuff wasn't hidden by any kind of plot. cabal oft a james bond bankers trying to blow up the world. this was actually happening in plain sight, but everyone chose to avert their eyes. charlie: because they had never seen it go down. gillian: they didn't question it. charlie: a

devos: referring to hsbc bcu's. >> can you answer her question? sec. devos: i would rather talk about the hbcus and our continued commitment by continuing to fully fund at previous levels -- rep. lee: i don't think that is what hbcus have requested. in fact, they need to see a small increase in their funding to make sure black students have educational opportunities. the cuts in the masters program is wiping out -- you are illuminating that for the most part. -- you are eliminating that for the most part with hbcus. sec. devos: it is a new program that has not been a part of this budget. it is not eliminated because it has not been funded yet. rep. lee: we did find that at one point at $7.5 million. the masters degree program. eliminating that.n sec. devos: we are working from the budget numbers that were available to us prior to your omnibus in april, that was just a few weeks ago. rep. lee: so, you are eliminating it, or you're not? sec. devos: the figures in the budget you are working from our prior to the omnibus- rep. lee: so, you will restore the

analysts from, you know, hsbc, citigroup, morgan stanley, all see evidence the bull market end is near breakdown in the traditional relationship between stocks and bonds and investors ignoring economic data. >>> after a series of terror attacks scared visitors away last year, tourists returning to paris. the city is on track for its strongest tourism year in a decade. hotel stays jumping 10% in the first half of 2017. france has been in an official state of emergency since the november, 2015, attacks that claimed the lives of nearly 130 people. since then, paris has worked hard to counter the tourist slump, including reducing attraction wait times and bruce issing discount passes. i -- and introducing discount passes. i love france and paris. i'm glad to see the numbers turning around. >>> the government is giving the amazon/whole foods merger a green light. it may change the way americans shop for food. the ftc approved amazon's $13 million takeover bid saying it will not hurt competition. amazon is a disrupter. with 465 physical whole foods stores, the merger gives amazon a piece of

barclays, credit suisse, hsbc, mufg and state street joined the project. firms are in talk with central banks and regulators with the goal of taking the currency live in a limited way a threat to bitcoin with the same underlying technology if it came together with some of the benefits of bitcoin but that slightly more official feeling backing, it could do well. >> sure. >> we have to see. >> as far as money transfer and a cheaper way to do transactions a less anonymous cryptocurrency. >> the blockchain backing behind it is a factor >> the game changer. >>> in geopolitical news, this morning we continue to monitor escalating tensions between the u.s. and north korea chery kang joins us from seoul with the latest. good morning >> reporter: good morning. so the joint military exercises, one of the two major ones that happen every year between south korea and the u.s. wrapped up as scheduled. and to mark the last day of this ten-day training, a south korean military officer confirmed with nbc that the united states flew two b 1 b supersonic bombers and two f 3