hsbc buyback. europe's largest bank says it will buy back up to $2 billion of its own shares if a profit meet expectations. is an opportunity to return to the shareholders up to $2 billion in buybacks. theink that there is out overall strategy of hsbc and also the strength we are seeing in terms of organic growth coming through in a number of our markets. >> trading disappoints. france's second-largest bank disappoints. we break down the numbers with the deputy ceo. we saw today that the outcomes, the final outcomes would be less negative. for me today, the major risk is more operational. growthconomists expect in nonfarm payrolls to rebound in april. the dollar slips ahead of today's report. ♪ anna: good morning, everybody. welcome to daybreak euro. and welcome to everyone across canada. we welcome you in. even though it is very early in the morning. breaking news. >> breaking headlines from b.n.p. paribas. trading disappointed at socgen. first quarter trading revenue came in at a miss. 1.5 billio

hsbc, socgen, bnp paribas -- we are joined now onset. let's start with hsbc. buyback is there, but the cost story is worrying investors. of course, that is partly going to be eroding internal equity for investors. there is also a fresh charge. a picture that is not clear. guy: the stock is trading down. what do you think of the ceo's comments about drinking from a fire hose? >> the attention will pivot to his strategic revamp for the bank. he will be unveiling that. some of the highlights, we think more scaling back. they still have a large empire of retail banking operations. there will be a focus on the bigger markets. -- highernger trading volatility resulted in stronger trading results at u.s. banks and also some of the european didn'tround here, but it seem to help socgen and bnp paribas. elisa: that's right. i think the results seem to billy -- be below analysts expectations. you have seen weakness across both firms in the fixed income side and the equity side at societe generale. it has been through a tumultuous quarter given the management changes we h

francine: that was the chief financial officer for hsbc.keaway is basically are struggling with keeping costs under control. can the new chief executive keep a handle on it? >> this is where investors are keen on hearing it. whichically the strategy will be his mark on europe's biggest bank. we here they are looking for growth in the asset management business. further retrenching a very large sprawling empires. yes, the cost is slightly growing more than revenue, something that has alarmed investors. when you look at the changes at the top, we have deutsche bank and we heard of some recessional -- reshuffle. what does it tell us about those specific banks? >> it is interesting to see they -- you have deutsche bank, under pressure, the revenue nubbin what it's supposed to be. it seems that the sudden up archer of somebody who was interested to ceo has created potentially a vacuum and forced management to come up with a brand-new structure right in the middle of the new -- for the bank. francine: we also had earnings from january. our busines

the hsbc guy quoted said we need more people involved in this.at it can be used effectively. the go. they give for explaining it. the new york times, now. “— explaining it. the new york times, now. —— there you go. —— thank you for explaining. the wedding of metre marble and prince harry and what is going to do for ordinary people. -- meghan markle. i was in the united states on day that barack obama was elected, and i was in an african american restaurant and i remember the buzz around that moment on what it meant for the people there. and i think that this will have a similar sort of meaning. you think it is a significant? i think there will be a lot of street parties across the uk on saturday which will be celebrating is waiting for a reason entirely different from just being one about royalty. the new york times captures the reasons behind that by talking to an 11—year—old girl who comes from south—east london. the quote that she has from it is london. the quote that she has from itis— london. the quote that she has from it is — the quote fro

margin how big of a boost could that be for hsbc? that the hsbc group could expand globally by 1.7%. be aurse, there could boost from their operations. as everyoneder, combines and the city, there will be more and more hong kong dollars converted to u.s. dollars. the city's currency has been weakening for the past few weeks. -- drag tobe a drug the potential boost this year. . we count down to the hsbc earnings later on today. do not miss our interview with the hsbc cfo at 3:00 p.m. if you are watching out of sydney today good this is bloomberg. ♪ betty: this is daybreak asia, i am betty and new york. yvonne: health care and technology, also known as good doctor, has a 24% gain in trading today. $1 online media raised over billion in hong kong ipo this year so far. the cio is joining us here in hong kong. really great to see you. we have the good doctor here. everybody is calling this the big bank coming back to hong kong. it is at a time when the hang seng is trading sideways. what is your take on what all of this will mean for the

. >>> shares in europe's biggest bank, hsbc, fall after first quarter profit comes in below expectations despite announcing a $2 billion share buyback. >>> mixed traffic in the airline sector iag rallies on a 7 5% profit jump, and airfrance-klm hits turbulence. >>> and the dollar stays near four-month highs ahead of the u.s. job report, but the argentinean peso is near an all-time low >> the latest in eurozone data don't forget yesterday we had weakness in the inflation numbers. so the market is somewhat concerned about the pace of growth that number hampered by what you saw in terms of economic protectionism and also strikes that took place in two major economies, germany and france. so the eurozone april final composite pmi hit 55.1, this is a tad off the flash number 55.2. in terms of where it sits versus the previous month, also just a fraction under that 55.2 the number, 55.1 today in terms of final services pmi, 54.7, also below the flash number of 55 on the final composite, future output, 5.7. that is actually a better handle than the 65.3 flash. so that is certainly some optimism

now, hsbc -- >> host: the bank. >> guest: yes, the hong kong bank which was laundering money, billion ourselves dollars for drug criminals, and for international terrorist, chron cruz, banker from long island, came to me with a thousand page i walked out of the bank with, trying blow the whistle. started publishing them. in i banking experience classic evidence ofman laundering. i was in contact with the department of homeland security, the permanent senate investigating committee and ended up with $1.9 billion fine paid by hsbc. comey was on the board of hsbc when this happened. >> host: so not fbi director, sitting on the board of a bank that was accuse. >> guest: pries pre-sizely. and the board had mueller was head of the fbi. loretta lynch was the u.s. attorney who negotiated, nobody goes to prison. now, on this kind of -- these people working together, which is a long-term relationship, making sure things are covered up, it's impossible that the comptroller of the currency texas i town fountain from the pages job cruz brought to me, out of the long island branches, he trade to ta

hsbc announcement of a $2 billion share buyback not enough to placate investors with costs rising at faster pace than revenue in the first quarter. revenue and profit in the time largely matching expectations with some analysts expecting a $4 billion buyback. their new chief executive scheduled to unveil the strategic plan for the global behemoth. shares off the lows of the day, returning to france, bnp paribas with its wall street rivals in the first quarter with revenue from debt trading tumbling, trading inclement, global markets division falling 15% versus one year earlier and sales from -- sales plunging, outweighing a 19% rise in equities. debtaribas blaming the trading slump on tepid demand for our clients for rates and foreign-exchange dealings. growth and corporate and investment bank is a central part of their ambition to increase revenue and approve -- improve profitability. day,s off the lows of the down 1.5%. 90 minutes into the u.s. session here in julie -- session. julie: stocks dramatically high with all three major averages at the highs and the session with the nasda

is contacted by homeland security and ultimately ended up with $1.9 million fine paid by hsbc.y was on that board when it happened. >> not yet fbi director was sitting on the board of the spank. >> precisely. and have responsibility over the banks activities we should've included figuring out there is money laundry going on. mueller was head of the fbi. loretta lynch was the u.s. attorney who negotiated nobody goes to prison. with these people working together making sure these things are covered up some possible they control the can's currency. if i found out with a thousand pages he bought me he tried to talk to these people. they did not want to hear it. they can see money laundering going on that should be known by the intelligence agency. you cannot run the drug industry without them being involved. and those characters were the cover-up artists. >> i read a brief section. euro by allowing the bank to avoid criminal charges and pleading guilty to money laundering, both the mexican drug cartel and terrorist groups, comic, mueller, lynch and holt were playing major roles in

hsbc is looking to buy the rbs unit in saudi arabia for $5 billion. red,though they are in the they are outperforming the rest of the banking sector in europe on that deal that looks to be done. one of the key laggards today is the biggest papermaker in the world might not be looking to make any sort of approach. it's an irish packaging company and the world's largest international paper company. there potentially looking at a percent of the company but have ruled out any sort of hostile of roach. down goes that stock at a particular underperformance today. the story of europe today is one of italy. check out italian assets. of the stock market, it's underperforming significantly and bonds are selling off with yields spiking above two percentage points. that's the first time since march for italian bonds. the reason is it's all about the populist party potentially talking about right down to the tune of 250 billion euros in terms of a government debt write-down. we understand one of the to best parties is going looking to ask the ecb to freeze and can

investors not impressed by hsbc. the ftse100 is up almost 0.5%. especially the further east you are, we have seen the best of the sunshine this morning, this was hastings not so long ago. it is a different story further west across western scotland, west england and southwest england. patchy drizzle, but what we will find is that further west, the cloud were thin and break but these fronts are never too far away from northwest scotland so too far away from northwest scotland so still some outbreaks of light rain and drizzle this afternoon but elsewhere, the cloud thins and brea ks to elsewhere, the cloud thins and breaks to give some bright sunny spells. where we have the sunshine, there is a little bit more co—developing through the afternoon, but it is dry in the sunshine, pleasa ntly but it is dry in the sunshine, pleasantly warm, 15 to 19 celsius, cooler from northwest scotland with parts of aberdeenshire getting up to 20 or 21 celsius. we keep the cloud and trees and light rain and drizzle but elsewhere it is dry with a mixture of variable cl

let's bring in the global equity strategist at hsbc. we are seeing the s&p and the nasdaq up another quarter percent. the bull market resumes. >> i definitely think the risk or what has improved a lot. when we go back to where we were a few months ago, equity .olatility was too low equity valuations are the biggest we have seen since the tech bubble. were at peak levels right now. valuations have come down a lot. we are moderately constructive on equities. more upside than in places like europe. there is room for the markets to move higher. vonnie: you say your modestly constructive. .ultiples have come down that would bode well, especially for earnings continue to show signs of strength. ben: five missions are still the risk. policies when tightening in the u.s. and the multiples traditionally come down about 10 percentage points. it remains the risk. the best insurance policy for that is to buy as much earnings growth as you possibly can. relativearnings growth to places we like less such as europe and japan, where there is no growth.

now the hsbc which was laundering money for drug criminals and international service helped the bankerm long island that came to get a thousand pages to try to blow the whistle. this was clear evidence of money laundering from the department of homeland security for investigative committee and ultimately ended up with a fine being paid. james comey was on the board when this happened. >> host: simak yet director he was sitting on the board of the bank. >> guest: and have responsibilities that should have included to figure out therthe characterwas money laun. robert mueller was that of the f the fbi and loretta lynch was the u.s. attorney that negotiated and nobody goes to prison. on account of these people working together in a long-term relationship making sure things were covered up its impossible e that the culture where of the currency he tried to talk to all these people to see the money laundering going on and you can't run the drug industry without the intelligence agencies being involved and the cast of characters with a cover-up artists. >> host: we had a brief section about

that was fred newman from hsbc.onal monetary fund has maintained its growth forecast at 6.6%. they won't be overly rapid credit growth and trade fictions could pose risks for the world's second—largest economy. china's growth at 6.8% in the first quarter of 2018, which is slightly faster than expected. influential in us reports are recommending a sedan and its latest test that revealed an update improved the braking distance by 20 feet. lastly, there was a big loss in the car as it battles production shortfalls. has less shares closing up almost 3%. later we will be finding out if india has retained its position as the fastest—growing economy in the world when the latest growth numbers are released. the economy expanded by more than 3% in the quarter ending december over the previous year, overtaking the mainland. despite acceleration, indian exports have remained sluggish and that is putting pressure on the economy. jewellery makers at this workshop are completing a large order. it is the most they have worked in a

that benefits banks like the hsbc.so much. .atthew martin from dubai we are getting breaking news from tencent. they did move a few months ago when they posted fourth-quarter earnings. this is a huge company in china. the online advertising revenue stronger-than-expected. if you look at what we have heard, income has been unexpected as well. i would urge a word of caution. inse figures are just coming . i think last quarter the headline number was quite strong. we just need to make sure these key numbers are really what they are advertised. i am seeing online gaming revenues are rising 26%. they have not only social apps but also internet services, they are now on to mobile value added, online advertising, e-commerce. we will take deeper into the figures and bring you any breaking news we get from tencent. in the meantime, let's get to bloomberg first word news. north korea is putting a damper on optimism for a damper on optimism for breakthrough at the summit with president trump. the regime is threatening to cancel n

homeland security, senate investigating committee, it all added up with $1.9 billion being paid by hsbcmes comey was on the board when this happened. >> host: said he was on the board of the bank that was accused. >> guest: and had responsibility over the activities that should have included figuring out this money laundering going on. robert mueller was the head of the fbi, loretta lynch was the u.s. attorney who negotiated and nobody goes to prison. now on account of these people working together, which is a long-term relationship to make sure things are covered up, it's impossible that the comptroller of the currency -- if i sounded out from a thousand pages that he brought to me out of the long island branches come if he tried to talk to all these people but they didn't want to hear it for the department of homeland security, they can see the money laundering going on. it should be known by the intelligence agencies and you can't run the drug industry without intelligence agencies being involved and this cast of characters with a cover-up artists. >> host: may i read a section of th

hsbc and ing have made history together.s say they carried out their first block chain transaction, aimed at speeding up chain transaction, aimed at speeding up payment processes and making them more secure. the transaction use the cutting edge technology that drives currencies like the bit coin, it involved a block shipment of soya beans from argentina, on behalf of the us agriculture group. the himalayan region of kashmir in the north has been a flashpoint between india and pakistan for more than six decades. the highly militarised environment makes it difficult for residents there to earn a living, but a rare and exotic type of mushroom is giving villagers an opportunity to boost their fortunes. dalla porta travelled to kashmir to find out more about these mushrooms. —— albert porter. this mountain is just a few kilometres from india's trouble border with pakistan. muhammad azam a village nearby. after walking for a few hours, he finally spots what he has come looking for. a morel. a kilo of the wild mushrooms could fetch

in the ft today, it looks at the significance of hsbc completing the world's first commercially viable and on the front page of the new york times international edition we're introduced to an 11 year old girl from south—east london who says she looks at meghan markle and sees a version of herself, trying to find a place among its racial codes. so let's begin. with me is mark davies, chief executive at camberton. this story is on the front page of a lot of newspapers, but a different headline. we have the holmes talking about russian interference, we have the telegraphs talking about the need for cooperation post—brexit, and we have the independence and that one terrorist attack a month is thwarted. this is in a speech from the head of m15 that will happen today in berlin. i think that telegraphs have this right. the

hsbc is announcing a $2 billin2 stock buyback program. >>> shares of fluor are tumbling after a surpriseirst quarter loss the firm blames continued challenges on a gas-fired power project. fluor is cutting its earnings gips f guidance for the year. shares down 13% right now. >>> weight watchers reporting better-than-expected first quarter results. it added 1 million new subscribers to its programs. the company is also raising its full-year earnings and revenue outlook. those shares are up by 7%. we are just getting started on "worldwide exchange. listen up twitter users, the company is out with a very big warning. we'll explain why the social media giant says your password may be in jeopardy. >>> and may the fourth be with you. it's "star wars" day and lucas film is going all in how it's giving back in the name of the force this is no ordinary coffee. it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic? ibm blockch

david bloom of hsbc is still with us.ting sanctions, how much effect will it have on the price of oil? the lastou look at time, 2012 to 2016, when these sanctions were in place, we lost in the region of one million barrels per day. my view is that president trump is not going to be anymore lenient with buyers of iranian crude then president obama was. he is likely to be a lot tougher on them. i think in the fullness of time, we will-month period, see at least that volume of iranian oil lost again. francine: a lot of people say this just plays into show producers' coffers. >> we are seeing u.s. production going up week after week. we think that will continue. we don't think they will get much more boost than they were getting anyway. the price will go up a bit, but their biggest impediment at the moment is getting the oil out and to market. they need more pipelines. as production grows, they will need even more. >> it is interesting to look at some of the urgent views we are hearing right now. you have the iranians saying

hsb and rbs in saudi arabia -- hsbc and rbs in saudi arabia.have reached an initial intoon merger terms, nip financial analytics on the bloomberg. 3.4% of the overall net revenue for hsbc. abouterating revenue is 6.2% of their business. rbs doesn't express what size their business is in saudi arabia. that gives you a sense of the consolidation story. sbc, both businesses, coming together. they have reached initial deal terms based on an exchange ratio of 35.5. you 53.3 real -- bank discussions for a reaching arger, preliminary nonbinding agreement on the exchange ratio. of saudi british bank. juliette saly with the headlines. --iette: novartis has set said its general counsel over retire next month following revelations of payments becomes -- the company made to a consulting firm led by donald en.mp's lawyer, michael coh an interim general counsel has been appointed. novartis -- tencent holdings is about to release quarterly numbers into the most negative market in more than two years. shares are struggling to rebound after yesterday's $17 bill

bnp and socgen miss out, while hsbc opts for organic growth over buybacks. april's payroll numbers set to shake off marches weakness. coming to a are beautiful shot of the capital and washington, d.c., welcome to bloomberg "daybreak." it is jobs day and equity traders should not be looking at washington, they should be looking at churchill downs. just before i came on set, in the last 10 years equity markets have only been down one time after the kentucky derby. only one time. not up a lot, but up. urth be withe fo you. points,res down five but sitting right at the 200 day moving average, which pretty much every asset class is also. a stronger g10 space dollar story. we had some softer emi out of europe. of the lossinding do we continue to see? the yields down about one basis point in the u.s. crude getting a nice used. -- boost. david: time for the bloomberg first take. trade intart with china. we had the discussions. the chinese agency said the two both sides had a thorough , protection ofws intellectual property rights, as well as tariffs. what does steve

anna: coming up, the former hsbc chairman says the u.k. can benefit from investments into china.next at -- next. this is bloomberg. ♪ anna: good morning, everybody. it's 1:51 in new york. futures are flat this morning so we are not sure which way the market will head. jerome powellrom this morning around 8:00 a.m. london time. let's talk about another and weionary policy, caught up with the former hsbc chairman, douglas flint. he sat down with bloomberg's north asia correspondent at the jpmorgan summit in beijing. >> there's a huge opportunity for the u.k. to enhance the size . when you think about the scale ,f global infrastructure bringing trade connectivity to the countries around china but then more broadly across the world, that opportunity will be maximized of region bring in pockets of finance from every part of the world and every type of institution. the role that the u.k. can play is supporting that and using the institutions in london, the expertise in terms of project management, arbitration, rule of law, insurance and so on to effectively maximize the pool of money t

hsbc, april result with shares down 3%.s. hundreds of afghan interpreters who served with uk troops fighting the taliban will not have to pay for the right to stay in britain. the home secretary sajid javid said all fees would be waived for the group. andy moore reports. they shared the same dangers on the front line with british troops. their faces are obscured in this footage because they face the additional danger of retribution from the taliban. many of them were allowed into the uk under a relocation scheme, but faced the prospect of paying nearly £2,a00 for themselves and for each family member if they wanted to seek indefinite leave to remain. more than 150 interpreters wrote a letter to the government saying their lives were in limbo. 0nly yesterday, the defence secretary was lobbying on their behalf. they've done an amazing job working with our armed forces in afghanistan. we have a personal duty to do the right thing by them, and i know that's something that's felt right across government. late last night, the new

it was already known according to hsbc.e does resume today, we will have to be watching this closely. $30 stock onbe a april. the stock had doubled over the last couple of years ago that mnansive -- or aggressive and becoming number one in the global luggage market. ramy: the future in question, stephen engle, thank you very much. let's switch to financials. to leading banks are in the news today. and the other expect to face charges in australia over a share placement from three years ago. we have the very latest in sydney. details.y out the >> it is a fast-moving story. details are still stand. what we do know is that nz bank said these allegations on the proceedings that expects -- innospec's -- it inspects -- it in 2018.o face deutsche bank said they expect to face charges over displacement and we know the other two join managers on this sale where citigroup and jpmorgan. it is not clear what the allegations will be detailing. - the accc issee - not saying what the proceedings will be. bank shares add to this this morni

hsbc is seeing an r.o.e. of about 5% and it only gets better there.of america up 7% and jpmorgan up more than 10%. finally, take a look at the share price relative to the ceo 10 years. this is a great -- tenures. this is a great way to look at how performance has been. since 2006, wenzhou ackermann was in charge, ever since through 2012, this is down 12%. then ceo juergen fitschen down 11%. then from 2015, we can see john cryan down by 25%. just as little sliver here on the right-hand side is christian sewing. he started april 8 of this year and shares our army down 9.6%. are already down 9.6%. he needs to do more and the strategy needs to be clear to get consumer confidence and investor confidence act. haidi: thank you so much for that. novo jumped the most in a year after their first double-digit percentage increase since late 2015. they are looking to reverse years of declining growth which assaults the stock removed from the han sang index. cop -- found how damaging it is. >> i wouldn't call it the word damaging. it is disappointing. the hang seng

♪ >> hsbc is returning money to shareholders in a $2 billion buyback, but it wasn't enough to please costs that rose at a faster pace in revenue in first quarter and suggested it would reinvest capital generated in the future. >> i think the buyback we are mentioning this morning is, probably speaking, in line with the pattern of what we have done the last couple years. from our capital management perspective, i think what the numbers for the first quarter bears out is the growth environment we are seeing across the home and network market. we could do revenue progression, wealth management,, commercial isking, and are focused putting the capital to work in supporting the organic growth of the firm. ♪ >> societe generale messed analyst estimates as trading revenue at france's second-largest bank fell 13.4%. overnight, the company announced a reshuffle of top executives, naming four deputy ceo's. >> this is quite specific. the biggest rival has the equity market in the u.s., and oru exposure to the equity market in the u.s. is smaller t han u.s. competitors. the evolution of revenue a

byy're going to be joined the global head of currency strategy over at hsbc.o ask mr. bloom some questions, you can do so using the tv function. i have just highlighted down in the left-hand corner with my very poor handwriting. it is an iv function. onto theet directly screen and ask questions to david bloom a little bit later. crack, you an early can do that as well. coming up a little bit later on today, we have bank conversations. monday, we have a lot coming out of paris. we will have an exclusive interview with the bank of france governor. that conversation at 9:00 a.m. london time. this is bloomberg. ♪ ♪ francine: narrowing the spread. the u.s. it yield curve is the flattest since august of 2007. we have recent unexpected innovation, dutch inflation, but an unexpected bond auction. president trump and kim jong-un will be meeting in singapore. the ecb president speaks in florence this afternoon. give -- about winding down stimulus? ♪ and morning, everyone "bloomberg surveillance." welcome to

anna: hsbc said yesterday that they are pushing their forecast, that there could not be a move from the england in 2018, or 2019, something to do with the weakness in the data. bob: the headline cpi at the 2.5%. is actually, i originally thought a few months ago that the cpi would come down toward 2%. i think one has to change their that.n higher commodity prices as we talked about earlier, some weakness in the pound sterling, if you look at the cpi numbers for those couple of months, we would be closer to 2.6 or 2.7. i remember the monetary policy committee -- i am a member of the committee, so i haven't and excitedly high level of inflation plus a weakening economy. so what do you do? the answer is, you probably guide investors that the best rates will increase, but you do increase. them in the near term all of this discussion about a base rate increase in may, i think that is on the table. manus: bob, i would like you to take a listen to someone who i know you know well. take a listen and see whether you agree. honest.e to be my opinion, brexit is a catastrophe. people voted on somet

>> hsbc is returning money to shareholders in a $2 billion buyback, but that was not enough to please biggest bank reported costs that rose at a faster pace in revenue in the first quarter, and suggested that it would reinvest excess capital generated in the future. >> i think the buyback we were mentioning this morning is broadly speaking in line with the pattern of what we have done in the last couple of years. there may well be a couple in the community that have been expecting a little bit more. from our capital management perspective, the numbers for the first quarter bear out is the growth environment we are seeing across some of our home and network markets. we have a good revenue progression across retail bank, wealth management, commercial banking, and our focus has always been in putting our capital to work. supporting the organic growth of the firm. ♪ >> first-quarter earnings missed analyst's estimates as trading revenue at france's second-largest bank fell 13.4%. overnight, the company also announced a reshuffle of top executives, naming four deputy ceos. >> our business

our hsbc chief economist. in a few minutes, we will be revealing our guest the chart.e line is the topix index and my question is what is the blue line? a few clues. maker. a rice cooker the lessons is not so much about what the company makes, but i believe it is the logo. we are giving it away if you are familiar with high-end right hookers in japan. it starts with the letter z, and the first syllable does mean elephant. it is the 61st best-performing stock. function on the bottom left part of the screen. if you have any questions, ask them. answer is out in a few minutes. stay tuned for that. this is bloomberg. ♪ ♪ >> this is "bloomberg markets: asia." i'm david ingles. >> i'm haslinda amin. let's get a quick check of the latest business flash headlines. the chinese energy company failed to pay of million dollar bond this month. china energy reserves and chemicals say they plan to suspend the interest payments and other bonds due in 2021 and 2022 while they consider asset sales. 14th onshore default. qualcomm is reported to be meeting regulators in china this week. t

hsbc, a 2 billion stock buyback, not helping the shares there french banks moving lower as trading revenuested some investors banks very much in focus airline companies in focus and, of course, ferraris, morgan. back over to you. >> dom, thank you for bringing us that. dom c huchhu at hq >> apple shares at a new all-time high today. becky quick sat down with the oracle of omaha and joins us next stay with us >>> good morning, everyone i'm sue herera with your news update white house denies seeking troop reduction on the peninsula of north korea. >>> hawaii's kiluea volcano erupting overnight, shooting lava into the air in a residential neighborhood and prompting mandatory evacuation orders for nearby homes. >>> hundreds of korean airline employees staging a rally in seoul, saying they can't take any more abuse from the company's founding family. the criticism dates back to 2014, when the family's eldest daughter threw a tantrum on board a flight recently the youngest daughter was accused of hurling a cup of water at another person during a company meeting. >>> the nobel prize in literature

. >> reporter: and as if on cue, hsbc making new advancing its first trade finance trans, using blockin which involved a shipment of soy beans from argentina to malaysia. we're seeing more companies put block chain to use. >> thank you. >>> the question is does wall street starting to warmup to crypto we've been at a couple conferences. and actually save money. >> so many things going on. when you think about bankers and the guys i speak to, they're thinking about how they can advise companies to use this technology to mediate certain processes going on. to me that's really what's very interesting right now about block chain that last bit they just said. it's a logistic thing. that wasn't a crypto trade of soy beans it was tracking a shipment. >> you could also letters of credit. >> we've been grappling on this desk and people are trying to look at companies and drop in a block chain framework and how it's going to change their business there's obviously industries building around it. but for now, unfortunately, we're not really able to see who's doing what. playing this on the stock

we're going to bring you some mid-cap stock movers including all a wall bank which has surged on hsbcis initial merger deal and it looks like we are going to be talking to benedikt kammel. this is bloomberg. ♪ guy: welcome back. let's talk about some of the mid-cap movers. micro focus is one of the biggest gainers. providesare company management solution for enterprise companies. they included a large licensing closed earlier than expected. that's included more than 9%. the company's underlying revenue is towards better range of guidance. that stock moving off that earnings report. another interesting one, the biggest gainer on the ftse. the construction company for the oil industry installed some oneline and manages complete store -- onshore construction products. they are calling them the lost sheep. they recommend buying the company saying they have missed the rally but will catch up. morgan stanley also putting out a note saying the oil service -- oil services are now attractive. alawwal bank up nearly 10% this morning after degrees on a possible merger. that values their shares a

we're joined by elizabeth martin, senior economist i -- at hsbc.beth, you recently changed to call, so you were saying may is done, why such a small window of opportunity for the boe hike? elizabeth: reverse change the forecast back in november. urgencyst won't be the to tighten anymore at we thought there would be enough momentum just to may and then we would .et that rate rise in the momentum has fallen away just a little bit sooner than we were expecting it to. it may be that a lot of the weakness we've seen in q1 is temporary or whether related but it seems like something deeper is going on. anna: what could they say today that would change your mind? to have another rethink. elizabeth: they have been pretty hawkish. we know they are minded to raise rates. was an't think there urgent case to raise rates, it was because the bank of england was sending consistent signals that that was their intention and what they wanted to do. i would be surprised if they completely turned around from that. so we are expecting them to be a little bit hawkish, bu

hsbc says their business update was not the landmark advertised milestone they were anticipating.their update on the businesses was next. back to be why vivendi is down. another's talk about big theme this week, oil in london. separates longest weekly run, brent topping $80 a barrel for the first time since 2014. the middle east is one factor, venezuela should not be ignored in all of this. certainly, the iea talking about the global glut. let's talk to andrew wilson, the ceo and global cohead of fixed income at goldman sachs asset management international. the moving oil has been quick. andrew: it has been. guy: therefore, i am wondering whether people were out of position on it. people had to play catch-up. what are the other implications of this? andrew: inflationary implications. if it stays at these levels, it feeds through. there are a number of underlying factors, the sanctions with iran and things in venezuela. global growth is doing pretty well, so there is a demand story. we have seen inventory levels come down, we have a deficit, and on top of the things and iran, you g

in theow more traded hong kong market been hsbc. manus: thank you very much. juliette saly and our singapore studio. ira raisesh l interest rates. there was an emergency meeting on wednesday. the currency plunged. globalntry will follow principles on monetary policy. the message was slightly different last week when president spoke exclusively to bloomberg. we have to give up the image of a president who is influential in military policies. 6 you will play a role in military policy going forward echoes is that the big change back of -- change? >> this may make some are, but we have to do it. allen, good morning. is this a capitulation moment? have we seen erdogan step back from his verbal moment last week on the lira? >> he flip-flops between the two. it is great to see that bloomberg interview and it looks like he has moved away. the central bank has raised rates. i think you are right. i think if you are looking at long-term, this is a familiar pattern. you have these big selloffs and the long period of stability. done enough for now, but he likes -- to be f

you want to hear what yesterday on the dollar and all other things, he is global head of currency at hsbcl be appearing later on bloomberg surveillance. if you want to get in touch with him, go to the tv function on the bloomberg. it says, ask the guest a question. put in your question and that will go straight to the surveillance team. of russian backed facebook ads intended to stir discontent in the united states have been made public for the first time. over 3000 ads were released on thursday by house democrats. each at was designed to target americans on emotional issues. joining us now is alex webb who writes about technology. very good to have you with us. with these as designed, what were they designed to do exactly? >> to sell instability. it is not about making donald trump win. about engendering of bead of doubt into the results of the election. that has implications of things back home in russia where they have their own electoral system which might have some problems. the u.s. has its problems as well so everything is fine at home. >> what is doing to ensure this doesn't

bit we have some stocks to watch >> europe's biggest bank, hsbc reported a drop in first quarter netfit they missed forecasts. operating costs outpaced revenue growth hsbc also announcing a new $2 billion stock buyback. >>> weight watchers reporting better-than-expected first quarter results. it added 1 million new subscribers to its programs. the company is also raising its full-year earnings and revenue outlook. becky is in omaha for the berkshire hathaway annual meeting which gets started this weekend. becky? >> andrew, last night we caught up with warren buffett ahead of the annual meeting he will talk to 40,000 share holders here about these issues. before he did, we caught up with him last night and got some news we already told you about shares of apple and that he added to his apple holdings in the first quarter. also talked about usg, a gypsum products company, which is used in wall board and all kinds of building materials asked about usg which has been approached by germany's kanoff to purchase the company. kanoff owns about 10% of the company, but berkshire hathaway is th

hsbc and blue, bank of america and purple, all positive.ar ceos, they have all been negative except one. right now it is down 9.6% since he started in the past month or so. haidi: thank you so much for that. coming up, more on korea. we will talk to the korea society resident about the fallout from this failed summit. that is up in 10 minutes time. this is bloomberg. ♪ ♪ anna: president trump canceling on kim jong-un saying the united dates military is ready for anything. north korea says it still wants to talk. tearing earlier losses, the yen weakening to 110 while gold sees its biggest gain in weeks. back in-- rusal spotlight. the resignation may bring sanctions to the end. i am in hong kong. guy: and i am haidi lun in city. apple in half a million -- billion dollars out of samsung. this is "bloomberg markets: asia." a bit of a mixed picture this friday, the session in asia not all bad given we have had conciliatory remarks from north korea in the response to donald trump's decision overnight that the june 12 leaders summit with him and k

chancellor's special envoy to the belgian roads initiative and also the former group chairman of hsbc 22017, douglas flint, and you for joining us. what are the opportunities in this new role you have is a special envoy and where are the opportunities the u.k. can have? douglas: this is a huge opportunity for the u.k. to roads, whensize of you think about the skill of opportunity for global infrastructure, improving organization and dealing with we needon future and could connectivity to the countries around china and more probably across the world. that opportunity will be maximized if we can finance from from every part of the world and every type institution. i think the role do you can cap play constructively is supporting that crowding and using the institutions and expertise in terms of project management, legal risk management, arbitration, rule of law, insurance, so on and so forth, to maximize the political money that could be attracted towards project that will comprise. stephen: this brexit make it more imperative to make it involved or is that a distraction to the prioriti

former hsbc chairman flight. he do not want to miss any of this. this is bloomberg.ou do not want to miss of this. this is bloomberg. ♪ this is bloomberg. ♪ betty: a quick check of the flash headlines at the point. cash profit of $3.2 billion will .ay an interim dividend cash return on equity was 14% with a net interest margin of 2.17%. australia has been under pressure as the world commission examines claims of misconduct. yvonne: a group representing storeowners is opposing walmart's deal with the cart cart.he deal will -- flip considering legal action. the $50e improved billion sale of 75% of the company to a group led by walmart. reports its lowest unemployment rate this century, but will that trigger a change in the fed rate hike strategy? more on that ahead. this is bloomberg. ♪ yvonne: 7:30 monday in hong kong. first major market open soon. betty: 7:30 sunday in new york. closed as were saw, riproaring lehi, the s&p up 1.7 -- 1%. yvonne: you are watching daybreak asia. let's get to first word news with haslinda amin in singapore. haslinda: presidential lawyer

i look at hsbc's results. we are talking about 40% roughly of their net revenues here. same?ding especially from the geographical point of view. , we do see a look big boost in equity trading income in the first quarter. it is relatively flat for trading. on thet we see a boost equity trading side, given the volatility in the market in the first quarter. entering the second quarter could be a different story. haidi: what are you looking for? what do you think is the turnaround strategy? >> i think he could be focusing on the change. at 10%.y, they set the bank,recovery of there could be the possibility of a fight julie -- a slightly higher target. for moreis looking repatriation of capital in the form of five back of dividends. -- of buyback of dividends. david: results come out in about an hour from now. do not miss our interview at about 1:00 p.m., if you are watching on hong kong. 3:00 p.m. if you're watching out of sydney. also turn to your bloomberg for more on the story. just go to tv in your functions. coverage will begin when the results right. haidi: bloomberg i

morgan stanley and hsbc coming out and not among equities but talking about it.hat do you make of those? david l.: it's too soon to go defensive. from where i sit and look at the global economy, i think the u.s. will grow by 3% this year on the back of fiscal stimulus. i think europe can grow by 2% and emerging markets can grow in line with their longer-term trends. to me there is much more juice before the local economy runs out of gas. for us, recession does not roll around until late 2019 or early 2020. perhaps at the end of the year, could be time to start having a conversation about positioning in a more defensive sense. shouldglobal growth still act as a tailwind here and allow the more cyclical parts of the market to continue moving higher. david: david leibowitz, please stay with us. coming up, italy's populace have agreed on a government plan as italian bonds have further worst week in three years. more on that next. this is bloomberg. ♪ david: in italy, the leader of the five-star party announced today that he reached the final agreement with his counte

. >> yeah, seema, today, hsbc said they did their first block chain transaction, which is a real milestone. >> reporter: sure. absolutely and i think that's the big question, when will wall street truly play a more significant role in the evolution of cryptocurrency there's been a lot of reports about goldman setting up that crypto desk, maybe even jpmorgan as well but we haven't gotten confirmation of that perhaps soon >> seema, thank you. >>> estonia doing their own cryptocurrency >> you know, estonia has always been on the forefront of technology they moved to online voting, digital voting very, very early on so, not surprising but a fact. >>> by the way, consensus is going on all this week so on fast money wooer, we're kicking our bit tocoin week. we speak with a former citi trader who now runs one of the largest cryptocurrency traders by volume. a week full of big guests. >> sounds cool >>> all right. still ahead, he owns a sports franchise, casinos, and a major online betting operation who better than tilman fertitta to react to the supreme court's historic ruling on sports gambling

. >> wall street has been slow to embrace blockchain announcements this wake week with hsbc and others what's the main way blockchain can be used by some of the big banks? >> right now it's about information sharing and mutualization of work flows. it's not about disintermediation and it's not necessarily about decentralization. >> that could take them down, threaten their business model. that's what a lot of proponents of blockchain say, they love the fact that they could diss intermediatiate everything basically. >> there is a lot of intermediaries and perhaps some market competition amongst them wouldn't be a bad thing. mostly it's about the ability to see the same thin in real time that's why you see most of the experiments thus far focussed more on post trade and information sharing rather than up front trading. >> what was it like at jp morgan to hear jamie dimon say bitcoin is a fraud when you were work og an blockchain component. >> there is a difference but we were working with a z cash company on releasing a zero knowledge settlement with quorum and ethereum quorum. there is

hsbc put together a terrific report that sums together these nations, their economics, finance, and happinessk to the economics of happiness. james pomeroy is with us. this is a joke except your report is hugely valuable as well. let me cut to the chase. denmark wins the trophy. why? james: if you are doing any kind of mixed world cup, you need a company -- country that is good among a load of economic variables. we have taken indicators that have value and one you can get for all of the ranges of the countries in the world cup. panama do not have the most diverse economic data. where we are in terms of imbalances. if you are well to those variables, you will do well. , these, sweden, peru countries were not showing many risks. basis, sometimes on an hourly basis i am letting jon ferro no italy is not in the world cup and neither is the united states of america. for thesen your study two lousy football nations? james: some countries did really fail to qualify. cases, maybe not less glamorous circumstances, but they are very important economies and some of the greatest economies in the world d

stocke being a tiny trading with more turnover than hsbc and some other huge cap in hong kong.% rally, alibaba was able, the unit, was able to get these -- devices at a more favorable price. had they done it two weeks ago, they would either have had to sell a lot more shares, which is how they paid for these assets, or d valuation of these assets. -- or devaluation of these assets. it has certainly been very beneficial for both parties involved, but, you know, there are discussions about what was the driver behind this huge rally that came two weeks before this transaction? unitnda: richard, this operated at a loss last year. any clarity about its prospects? richard: um, no. i mean, obviously, something changed in the past couple of some that meant some, traders were certainly a lot more positive about its prospects. and i wouldn't think with these assets being included, that would help. they vary -- some of the assets are pharmacies and other things. but it was not just the alibaba health that did well. alibaba pictures, another obscure unit of alibaba, also out of nowhere cam