is it the hsbc bounce? for cash trade is less than 30 minutes away -- the cash trade is less than 30 minutes away. ♪ matt: hsbc beats the banking giant pretax profits, slightly above expectations. shares edge higher in hong kong. odds on hard brexit, the trade secretary gives a 60% likelihood the country will leave the eu without a deal. hsbc's ian mckay tells bloomberg exclusively that the bank is working on its own contingency plan. >> we clearly all hope that the negotiations between europe and the u.k. turn out with a slightly better outcome than that worst-case scenario. the we are running for the worst and hoping for the better outcome. matt: and diamond doubles down. jpmorgan ceo's sees potential for 10 year treasury yields to hit 5% or higher, but he says the current bull market run could still last three more years. we're less than a half hour from the open of european stock trading. take a look at futures. -- see a mixe, but of trade here, but not a lot of indication. cap futures only up about .1%

now, it is a waiting game with hsbc. mark: you mention barclays, one of the french lenders, where does hsbc sit? underperforms on the trading side. bignow hsbc is not the global investment bank barclays is. it is a solid lending bank. you saw john flint highlight net interest margin. it was up three basis points. investors will be focused on lending profitability going forward. if that margin stars to slip, that is going to have an impact on the stock. mark: thank you. vonnie: let's check in on first word news. here is courtney donohoe. >> the u.s. is reimpose in first round of trade sanctions that had been suspended under the nuclear agreement. they go into effect one minute past midnight. will be barred from ewing u.s. dollars and will not be allowed to buy plane parts. sanctions targeting oil will be resumed in november. present from claims he has the upper hand in the trade dispute in china. -- president trump claims he has the upper hand in the trade dispute in china. china claims it is prepared for a trade war. chi

does this change anything for the team at hsbc? mary: not so far.n terms of credit and high-yield, when i came on last time, we talked about how well u.s. high-yield have held up. we haven't been changing too much of what we have been doing. if anything, maybe a little bit on the emerging markets side, but for the u.s., not seeing too much to move us. jonathan: just as it relates to trade, bryce, once again we have a week dominating the news flow. it is the trade story. i have asked several investors on the buy side, will it really change anything they have done this year in terms of allocating base capital in terms of how the story has evolved? have you? bryce: i think the trade story is the gift that keeps on giving. every time there is rhetoric out there and bonds falter, corporate bonds falter, you can take advantage of that. it seems like the bark is worse than the bite. when you actually find details, it is not as big a deal economically as what maybe people would like you to believe. so i think this volatility has actually created some trade

europe's largest bank, hsbc, reports half year earnings. has new ceo john flint‘s plan for expansion in asia succeeded? tariffs are working big time — that's president trump's response to china's latest threat to bring in levies on $60 billion of american goods. and on the markets: we knew the dowjones was up. in fa ct we knew the dowjones was up. in fact they are all up. nikkei and hang seng in spite of the back and forth comments between beijing and washington over the tariffs. we will kick off with some figures from europe's biggest bank. it has just announced its half—year results and its pretax profit rose 4.6% for the first half of the year. hsbc reported a pretax profit of $10.7 billion in the six months throuthune, up from $10.2 billion in the same period a year earlier. soa so a slight improvement, there. these results show more of what's happened under the tenure of the new chief executivejohn flint — this man — who started in february. mr flint said he would continue his "pivot to asia" strategy to further expand in hong kong and

the hsbc cfo. we are going to be bringing that interview to our viewers as well a little bit later on. the numbers broke around 40 minutes ago. you spoke to this area. in the middle east. >> we did indeed. you do when i am away on holiday. you asked, are you running free? i asked the same kind of question this morning. what does he mean by we are in good shape? the top line numbers have delivered in terms of pretax profits. that was a little bit better than the market had anticipated. profitond-quarter pretax , the market had penciled in 6.05. when it comes to litigation they have taken another position. a civil money penalty. side of thencome business, the equity side, is something the market is going to focus on. it is about the negative. -5.6%. this is what they got battered on at the end of the last report. we covered a lot of issues. we will bring that to you in a full and frank discussion later on. frank -- andin frank with her discussion of the first word news. juliette: chinese media has re

now hsbc will also pay $765 million civil penalty to settle a u.s. mortgage secured case >> hsbc reporting interim earnings in line with their own expectations and they're taking firm steps to deliver the strategy outlined earlier this year for the interim pretax profit up about 5% on year 10.7 billion and earnings per share of 36 cents. revenue of 23 billion up 4% on year the company declared a dividend of 10 cents per share. 14.2% and that is back from the 14.5% at the end of december it was commercial banking that was the most profitable generating $4.1 billion on year. making up about 87% of pretax profits. $9.4 million earned. up 23% on year the middle east and north africa 836 million and getting smaller. the european market which only makes 1% of pretax profits now, 110 million. that was up 80% on year. as far as the share buy backs announced so far this year, $2 billion. $1 billion of shares bought back so far this year and have been cancelled. back to you. >> speaking with banking news, posting weaker than expected earnings the first half of

hsbc says the bank is working on a contingency plan.t 2%, but the current market will run to three years. this is "bloomberg surveillance ." i am matt miller with nejra cehic in london. tom and francine have the day off. nejra: get some interesting about dimon. we talked about him recently. sitting on the fence much? [laughter] saying 3%, nowen 5%, but still, two to three years in this bull market, that begs the question -- how good do you think you are at or casting rates if you can go out three years? is 3.5% to 4%, john aboutked to that, and he looked and looked and saw this kind of trade war. we get a resolution to it. it will be harder for yields to push higher, even if they should be higher. matt: you pointed out we got up across that level or close to it around four times in the last year. international investors like a 3% yield. it is juicy, and they get in there when it gets high. nejra: here is kailey leinz in new york. president trump clancy has the upper hand in the trade dispute with china. beijing is not think so. an edito

europe's largest bank hsbc reports a jump in profits as it continues to invest in technology and growthasia. as always we keep an eye on the markets, not much movement across europe at the start of the trading day, we'll keep an eye on it and get an expert take later. also, mapping the world — drones are getting ever more powerful and new technology is helping them see things in ever more detail. so can they really add tens of billions of dollars to our economies? today we want to know — do you think the benefits of drones mapping out our world outweigh the risks such as invasions to our privacy? let us know — just use the hashtag bbcbizlive. always good to hear from you, keep those tweets coming in to us. hello and welcome to business live. the trade war between the united states and china has heated up with a highly unusual personal attack on president trump in chinese state media. thr people's daily newspaper said the us president was starring in his own "street fighter—style deceitful drama of extortion and intimidation". it added that trump's desire for others to play along with hi

hsbc's second-quarter earnings. reports in just a few minutes. this is bloomberg. ♪ ♪ markets:s "bloomberg asia." i'm david ingles. >> i'm haslinda amin. a quick check of the latest business flash headlines. -- those fridays computer virus will cause shipment delays and difficult cost, but production should be back to normal today. the impact on third-quarter revenue should be about 3%, with growth margins affected by 1%. partner's chevron are inish petroleum competition to shape the face of australian gas development. they are vying to build a pipeline from hundreds of kilometers, allowing them to develop their own field. -- existing liquefaction plants along the coast. now, hsbc'sinute second-quarter results are due, with analysts looking for better revenue momentum. our asia finance minister joins us from tokyo. russell, what has hsbc been doing to drive revenue growth? minutes, we won't know whether hsbc's effort to increase revenue is paying off. what they are doing is fake is focusing -- doing is focusing on c

steven major will join us from hsbc. europe cannot find a bid. down to a 1.15 handle. a 10ix 11, down near print. the pros which is what look at, is moving with a vengeance. strong yen, weak euro. francine. francine: i have turkish lira as my chart that matters today. this is what i am looking at overall, most major stocks advancing. tot helps to give a lift up investor sentiment against the backdrop of trade concern and geopolitical noise. treasury setting. i am looking at pound because of that brexit headline. tom: when things unravel for any nation, it is about the piggyback. let's look at the turkish piggy bank, which is fx reserve. it is remarkably linear for a

atlantia has many important international shareholders ranging from hsbc to blackrock to the singapore wealth fund and then the bennaton family the representative of these

hsbc, he talks to us.g to be going to glaxo. he joins gs k from hsbc. headlines suggest the end of december would be the time he will leave hsbc. perhaps that timing is of interest. also german data. yesterday german industrial production, factory numbers were week. how does the industrial output number stack up? falls 0.9%. the estimate was for a fall of 0.5%. expected, butthan not the size of the disappointment we saw yesterday in the data. the exports unchanged part of the story. imports rising 1.2% month on month. a little bit of a disappointment on the industrial output size. euro to show you what we are seeing their. shorts spiked up on the euro against the dollar. manus: futures are indicating a little bit stronger. we have some breaking data coming through. there lower to go on that? is that bolstering the london market? standard life aberdeen has released their numbers. let's get you numbers out of the way. inflows of 38 billion pounds. the big shocker for standard life aberdeen was the outflow. t

europe's largest bank, hsbc, reports half year earnings. new ceo john flint‘s plan for expansion in asia succeeded? a warm welcome to the programme, briefing you on all you need to know in global news, business and sport. and you can be part of the conversation. is fubbing ruining your relationships? the practice of paying more attention to your phone than to the person sitting beside you. it really affects all of last, doesn't it? should we create a phone etiquette to protect our traditional ways of communicating and avoid being fubbed? tell us what you think, just use the #bbcthebriefing. well... another deadly earthquake has struck indonesia, killing more than 80 people on lombok island. hundreds are reported injured. the search and rescue operation is continuing, but is being hampered by power cuts. it's the second earthquake to hit lombok in a week. rhodri davies reports. these are deadly tremors that've become feared and familiar to people in this part of indonesia. this magnitude seven earthquake hit the coast on the resort island of

let's get more on hsbc now.ivot to asia strategy to further expand in hong kong and southern china. he also promised to invest at least $15 billion and that's about £11.5 billion and that's about £11.5 billion in growth and technology with the aim of breaking nearly a decade of declining revenue for the bank. hsbc has implemented some strict cost—cutting measures in the past that have seen 87,000 jobs go from the company in recent years. joining us now is richard stone, chief executive of the share centre, an independent stockbroker. does this mean that the bank's strategy of focusing on asia is working? certainly the bank has delivered results which show headline profit up nearly 5% and some revenue growth after some years of decline. but when you drill down, the underlying revenues are only up 296 the underlying revenues are only up 2% and costs up 7%. i think investors are looking to see that pivot to asia start to deliver revenue growth in excess of cost and really start to see profits come through from that

keep an eye on hsbc.he chinese have in the -- are opening up their financial sector to foreign institutions. the market open is eight minutes away. this is bloomberg. ♪ matt: welcome back to bloomberg markets. we are minutes from the open of european stocks. let's get the stocks to watch. we are covering banks and insurers on news china will relax ownership rules. we are looking at munich re on the possibility or death of a deal there. let's start with joe. what effect will this have on banks and insurers? china has removed limits on foreign ownership in banks. it was previously 20%. it is important for hsbc. they own a stake in the communications bank. that bank said today they are open to hsbc increasing stakes. applicationitted for a joint venture, and a number of insurance companies have exposure. watch those stocks when the markets open in a few minutes time. matt: sebastian, what about munich re? talks to buy stakes in the asset management unit. those negotiations have fallen through. the mandate al

first direct, which is owned by hsbc, came top with 85% of its customers feeling satisfied.mmute to work by train? well, whatever the figure now, train ticket prices are pretty likely to go up again injanuary. today we've found out by how much. we now know, they could rise by upto 3.2%. that is based on the latest inflation data. and that will push the price of some season tickets up by hundreds of pounds. it follows a 3.6% hike in january this year, the steepest rise in five years. and fare increases could far outstrip any rise in salaries. on tuesday, we found out that average earnings, excluding bonuses, rose by 2.7% for the three months to june compared with a year earlier. liz martins is chief uk economist at hsbc. she explained the difference between cpi and rp! for us earlier. cpi inflation is lower, so i mean it is a lower cost. and some things have moved from rpi to cpi. but a lot of things still use the older rpi index. from an economic perspective it does make sense to use the newer one. however, clearly if the prices are still going up by 3% and wages are going u

more on those hsbc numbers. it saw a small increase in pre—tax profits. bank is growing as fast as they want. it's put aside three quarters of $1 billion to settle lawsuits about mis—selling securities. it's also spending more on investments in areas such as technology and also in china as it switches attention from the us towards asia. house of fraser has done this deal with landlords which means it can go ahead with restructuring. that means the closure of 31 of its 59 stores. it will also mean 6000 job losses. that was the plan under the company volu nta ry was the plan under the company voluntary arrangement. but the landlords said they were being asked to cut rents and take all the pain of the restructuring, but they have come to a settlement. the boss of british airways has criticised the long queues at heathrow and says arrivals faced waits to get through control. alex cruz wrote a letter to the times saying the queues are significantly worse than any other major hub across the world. the letter is in response to proposals for uk only lines after b

hsbc been doing to drive revenue growth?a, this is what the new ceo is continuing from his -- continuing. been is the key, it has several years retrenching another markets and putting resources into rader china, including hong kong as well. today is how much china will drive revenue growth for hsbc and the new regime. hong kong is the gateway to china, and it has been benefiting from rising interest rates in the u.s. with its local benchmark rate tied to the bit rate. some margin on the lending coming through this quarter. not fully at this point because the prime rate, one of the key rates in hong kong, has not gone up yet. but certainly the benefits will start to come through. ramy: management has been committed to improving profits this year, what is the outlook for costs and profitability this quarter? russell: the corollary to revenue growth is expansion, the issue of cost good -- cost. they have a measure of how fast revenue and cost is going. they had a negative last quarter, costs are growing faster. positive foring

account. 0k, hold had been put on that hsbc account. bank that should be refunding somebody like louise? we fundamentally think the banks collectively need to take more responsibility for these frauds. how would they do that? protecting and reimbursing. from a consumer point of view it doesn't matter where money comes from, louise has done nothing wrong, she has acted reasonably, yet she has lost money and so the banks need to arrive at a scheme where she will be reimbursed and that is what we are working them with. the banks say, we stopped £2 out of every £3 of attempted fraud, we know there is more work to be done. industry has introduce new standards. the financial ombudsman is saying, banks are still not sympathetic and not. just to answer the question, as to whether or not the question, as to whether or not the receiving bank has a liability and whether a complaint can be made, thatis and whether a complaint can be made, that is actually the big difficulty at the moment, the receiving bank does not owe a duty of care to the victim

some of the banks are putting pressure on them, including hsbc.te fall that shanghai composite fall amidst ongoing trade tensions. we have been watching individual movers in the u.s. as well as across asset. the u.s. dollar index in the u.s. up three times of 1%, in part because we are seeing offset in the british pound. following pessimistic comments on a no deal brexit by liam fox. below the 3% mark. crude prices gaining one third of 1%. berkshire hathaway out with earnings over the weekend. the insurance business is doing well. their reinsurance business helping profits in the second quarter. shares higher 2% this morning. perhaps i backs for the company. cash pilot at berkshire is now at $11 billion. investors are wondering if it will go to the. seaworld entertainment reporting earnings, shares up or team percent -- up 14%. praxair under pressure after the ftc in the u.s. questioned the company's acquisition by linde. it is a $47 billion merger. it could collapse for the second time after the ftc asked for the pressures -- divestitures. david:

. >> janet henry joins us from hsbc welcome.>> good morning. >> it's been an interesting 12 months last year at jackson hole, jelen was p janet yellen was preparing to give her speaech. now what does the fed do do they try to distance themselves from trump? >> i think they do i think jackson hole has a separate agenda. a lot of these subjects are not on the agenda. we'll talk about those but in terms of the structure of the next couple of days, it will have the opening comments, those will be from jay powell this morning, i think he'll be balanced, even-handed, he won't get involved in political debates, for the next six months there's little divergence from the fed. i don't think he wants to send a strong signal about change in direction of policy or make any strong political statement in these speeches over the next couple of days >> it does get political if he weighs into trade. one story around the growth story was around trade if he leans into that too much, that's a negative message against trump,isn't it >> it is trade is

does this change anything hsbc? mary: not in terms of credit or high-yield.e talked about how well u.s. high-yield have held up. we have a changing too much of what we have been doing. maybe a little bit in the emerging market side, but for the u.s. not too much. jonathan: once again we have a week dominating the news flow. several investors on the buy side. will it change anything they have done this year in terms of allocating capital base of how the story has evolved? have you? bryce: i think the trade story is the gift that keeps giving. every time there is rhetoric in the bond folders, you can take advantage of that. faulter, you can take advantage of that. it is not as big a deal economically is what maybe people would like you to believe. this volatility is trading create opportunities for us. while i'm not really a fan of it and wish it were not have to worry about the next terrorist -- tariff-- terrif tweet. bryce: it will be a flight to quality. you will see the 10-yields go down. it was in the 280's. that's a great spot the short 10-year teachers.

does this change anything for the team at hsbc? mary: not so far. in terms of credit or high-yield.t time, we talked about how well u.s. high-yield have held up. we haven't been changing too much of what we have been doing. maybe a little bit in the emerging market side, but for the u.s., not seeing too much to move us. jonathan: once again we have a week dominating the news flow. it is the trade story. i have asked several investors on the supply side, will it change anything they have done this year in terms of allocating capital base of how the story has evolved? have you? bryce: i think the trade story is the gift that keeps giving. every time there is rhetoric in -- rhetoric out there and corporate bonds falter, you can take advantage of that. that seems like the bark is worse than the bite. it is not as big a deal economically as what maybe people would like you to believe. i think the volatility is creating opportunities for us. while i'm not really a fan of it and wish we did not have to worry about the next tariff tweet, it is still something you have to be aware of and can

a heavy ex dividend day in europe, stocks like hsbc going ex dividend.will talk about that next. this is bloomberg. ♪ guy: seven minutes to the start of cash trading this thursday morning. joining us now, paul jarvis talking to us about carlsbad. and looking at hancock. let's start with carlsbad. first half earnings out this morning, very good numbers, the first half earnings per share beat estimates by 10%. behind that are factors of europe's the steering summer weather and also the world cup, carlsberg being the biggest brewer in russia where the term it was played. more in portland, they have also increased their estimate for the full year earnings and that andects their confidence factors including their cost-saving program. they are on track to save 2.3 billion krone and costs over the course of the year. improvement reflect in their foreign exchange position with reduced drag from currency movements during the year. guy: let's talk about atlantia. kevin: you could say all eyes are on atlantia right now. the premarket trading shows the stock may be

hsbc moving to the upside.se also got the oil , bp as well as royal dutch shell. -- well, i amgot looking at some of the miners to see if they are at the upside or downside. they are not in the top 10, and that is unusual. as far as the losers, you have swiss out with earnings. siemens to the downside, although it is a down -- small move. some of the financials in the periphery. unicredit, for example,. guy.- guy: the turkish inflation data has just dropped, let me run you through. they are better than expectations, but still up in terms of direction. the actual number is bigger at 15.85%, up from 15.39. so not as high as the market was peddling in at 16.3. the numbers are not as strong as they could have been. the ppi number, the input cost story. this is a story of inflation tomorrow. a ppi story, the producer price is at 25%, higher than the market was anticipated and higher than the last time around. the turkish lira is gaining a little bit, as you can see. not that much, which is interesting. so you are no

of weedenel purves and company and steven major of hsbc.s on that important ohio election today. all of america tuned to ohio near columbus. we will look at e.m. with jpmorgan asset manager joining us gabriela santos. we will continue to monitor turkish lira, gyrating over the last 24 hours. it is a heatwave in new york, no other way to put it. this is bloomberg. ♪ is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. report. washington will hold meetings. trump sanctions take hold in iran. tweets.ident he has some sincere questions about metaphor. the defense will cross-examine today. the dollar in a boom american economy. good morning, everyone. this

hsbc, despite the financial uncertainties, doing pretty well. europe‘s biggest bank.nder the collar. but let‘s face it, about $30 -- $30 billion, $40 billion have been affected in good so far, the threatening more but it has not happened, words and a bit of action but not lots of action yet so we have a way to see how that develops. but it is a worrying scenario. president trump, i mean, there is a lwa ys president trump, i mean, there is always uncertainty about how far he is going to go in imposing these. when he met the european leader, having threatens huge sanctions, he said, maybe we‘re not going to have sanctions after all. this is a negotiation different means. they are still negotiating a way, they are just putting action behind those negotiating words. so as they say, we are going to put another £200 billion worth of ta riffs another £200 billion worth of tariffs on those goods. if you don‘t start to negotiate and do something. china says the same. it is a high, high risk negotiation but it is still to go shooting in a way. and the pound. and the pound. a ba

europe's biggest bank hsbc has reported a big rise in profits.hese sites and not enough of them are affordable. the government says green belt sites are only built on in exceptional circumstances. we will come to this story now. and the boss of british airways has criticised long queues at heathrow, saying arrivals face two—hour waits to get through border control. alex cruz says the queues at the london airport are "significantly worse" than other major hubs across the world. the home office said most of those arriving at heathrow passed border control within 25 minutes for europe and 45 minutes for those coming from elsewhere. the reason i wanted to talk about the green story lust is because so many people have been in touch this morning. some sites green belt land should be available to be built on in certain circumstances, but others saying it is a slippery slope. we have quite a few of them here. people talking about population control as well. patricia saying populations are increasing and there will always be a housing crisis. cheap, tiny

europe's largest bank, hsbc, reports half year earnings. succeeded?

there is a long list of foreign banks that are failed in brazil, like hsbc or citibank.n the banking 1.0 world, where customers made their decision on where to open a bank account based on who had the closest bank branch, banking branches were a huge asset that the banks created and nurtured. and so in that world a foreign bank had a really hard time building scale and distribution to compete with a lot of the local ones. in this new world, where you don't need branches, all that huge asset of branches becomes like a liability, and so that is what is different about us — we're not competing with the incumbents based on branches, we are competing with the incumbents on efficiency and customer service and lower pricing. you were a very modest company, and now you are $1 billion business, how did it grows so fast? we started, as a lot of start—ups start, in a house, here in sao paulo. we liked the house because we paid very little in rent, the co—founder edward came from the us, so he was on the second floor, then we hired another engineer that lived on the second floor. an

hsbc upgraded it to a buy. flip over and look at stocks and bonds, starting off with the italian 10 year yield, price rise in the yield coming down seven basis points, more of a relief rally after the deputy prime minister terrifying people. a report saying italy would seek help from the ecb but he says that is not the case. the pound up by 1%. highest level since the start of the month after comments from michel barnier over -- saying written could get -- britain they get an unprecedented deal. that could get an unprecedented deal. krona, it is dropping for the fifth consecutive day. 11 days away from an election. we have seen it hit lows not seen since 2009. swedish krona a currency pairing to watch. taylor: we will look at the u.s. markets and the dollar. territory,,000 record highs on the s&p and nasdaq tech stocks leading the gains. ,mazon, microsoft, apple google, the biggest movers and broad-based gains with almost every sector in the s&p 500 higher except for telik mutations. the -- telecommunications.

earnings, the season continues to roll on with softbank and hsbc according.n regaining its position as the second-biggest stock market, taking over china, can the earnings momentum sustain further gains? adam: i think what is happening in the earnings picture in japan is one of the reasons why people are still willing to kind of sit in the bullish camp. very depressed equity markets. as the flip happened friday with china getting back in that number two spot relative to china, what it, what it does is show you the long-term appetite still for solid earnings recovery and very depressed expectations. also in a lot of what is going on in the reform of colbert -- corporate culture, corporate governance, some of the long-term changes to make a market that is more investor friendly, believing -- leaning towards buybacks and dividends. we are starting to see more of that over the last couple of years. this earnings season is reminding investors of that longer-term bullishness. even the valuation discount, i would not be surprised to see more money going into japan e

. >> hsbc is struggling to produce any significant revenue growth from its long-term bet on asian marketsincreased 7%. even so, the finance director told bloomberg first and second quarter results were in line with their expectations. >> we saw good revenue growth the first two quarters of the year, and that it's translating to a good reporting profit progress. we continue to invest in the growth of the business and have strong balance. so feeling confident where we stand. david: the pace of winning new customers slowed and commerzbank warned operating costs would be higher than planned. >> we have seen growth where we have reached our year-end target of 386 billion at half year so that is where you see the growth, and that is where the strategy wants to see the growth. so, that is paying off well. in the corporate bank, we have a competitive environment and growth on the customer side and on the loan side, which is fine, but monetizing this growth will probably take a bit longer than originally anticipated because -- which is why we have slightly reduced our revenue expectation for corpo

hsbc's bet on asia has not paid off. costs rise 7%.at the new plan to turn things around. to normal, jpmorgan's jamie dimon says where headed to 5%. the 10 year treasury should be at 4%. indra nooyi steps down, saying it is time for her successor to take over. we are 30 minutes away from the end of the monday session. the european of

we're talking with the likes of imp and hsbc. these are the five european banks with the highest exposure to the market. the stoxx 600 index is down by 5.4%, this year it is down by 14%. a we have bain capital agreeing to buy he sure. increasingly targeting insurance ar their offer of 280 pence share, 37% higher than the closing price on friday. esur shares jumped by 30%. the highest jump ever. the board has no said it will report the offer and is recommending the payment. esurim dividend shares of up by 3.8%. >> back to turkey as the lira recovers some ground. president erdogan expressing a defiant tone. every single product only by -- we buy should be produced by ourselves and we sell them to others instead of buying them from others. products of the usa, we will boycott them. bloomberg's yousef gamal el-din joins us now. these new measures in regards to iphones, this seems like weak sauce compared to the sanctioned the u.s. is imposing. : that was just one component of his speech. we had four important speeches throughout the

atlantia has many important international shareholders ranging from hsbc to blackrock to the singapore wealth fund and then the bennaton family the representative of these shareholders want to know what is the cleanup strategy the company devised after the jen ra bridge collapse. they will also talk about the latest from prime minister giuseppe conte he is planning on perhaps taking over the company the finance minister has ruled out this option, but we know they don't have that much power within the cabinet but this move using assets to take over autostrade would happen in financial terms. what is the equity value of autostrade the most important italian investment bank, which advised atlantia in its merger with the spanish operator attributes an equity value of 40.8 billion the book value of autostrade in atlantia's balance sheet is 12.2 billion. so these sums will be lower compared with the penalty that the state would have to pay if it presses ahead with plans to strip the toll road operator of its concession whatever the outcome, atlantia's convinced it can prove its innocence and

hsbc ceo john when the $17 billion to grow the banks new technology.760 $5 million to settle a u.s. investigation into mortgage-backed six or 80's -- to settle amillion u.s. investigation into mortgage-backed securities. one of the women's rights activist arrested was a canadian citizen. they were told to leave the country within 24 hours. global news 24 hours a day and a tictoc on twitter powered by more than 2700 and analyst in more than 100 and 20 countries. countries. this is bloomberg. ♪ live from bloomberg world headquarters in new york, i'm shery ahn. vonnie: i'm vonnie quinn in for amanda lang. here are the top stories we are following from around the world. as itarabia gets tough suspends trade investment with canada and since diplomats home after canada criticizes the saudis. tariffs onrump says , but are working big time china says it is ready for a protracted trade war. warren buffett archer hathaway gave him more leeway to buy back stock's after the company says it swelled to -- [indiscernible] we are seeing u.s. stocks near the moment. is

couple of other names -- also hsbc the same. investors are keeping a close eye. bbva has the biggest exposure through durant bank. that stock down almost 3.1%. we're in istanbul with more on this dylan, we're seeing dramatic intervention by the central bank and it's not enough. doesn't maintain the -- on interest rates that are -- >> cathere was an interview las night by the -- president erdogan's son-in-law he was promoted from energy minister to that role not so long ago he said there would be dramatic measures taken this morning, they'd be unveiling plans to use the institutions to try and stem the crisis he had given another presentation on friday to focus on the situation without mentioning this. that's why investors got incredibly concerned about what the government was going to and not going to do to combat this free fall with steel and turkish li lira president erdogan has repeated, he's an enemy of increasing interest rates the current rate is 17.17% they're calling for it to increase as much as 300 or 400 basis points as part of a -- president erdogan i

stephenson leaves the board in september, as he has for a job as finance director for hsbc.esla executives have in trying for years to recruit a coo or another number two executive to assume some of elon musk's day-to-day responsibilities. the search has intensified in the wake of mosques recent tweets. they say the company approached facebook's sheryl sandberg, but quote to the best of my knowledge, there is no active search. that is your business flash. francine: thanks. the pboc has taken steps to support the yuan. this includes a stronger than expected fixing, regulatory measures, and reducing offshore yuan liquidity. bloomberg intelligence thinks the bank is likely to step up the fence should the yuan remain under pressure. so what is next for the yuan? still with us is a simon and miranda, and as if by magic, chinese yuan also extending their gain 17%. the level is at 6.8780. will they keep stepping up? simon: they will continue to defend the seventh for a while. talksst until the trade and. -- end. there are a couple of reasons why it makes sense. one is domestic mark

francine: thank you very much becky moffatt, head of personal banking, hsbc.mberg surveillance" continues in the next hour. a lot of talk will be on what president trump did and said. are lower after president trump criticized the federal reserve interest rate hikes. u.s. equity futures higher a touch. we are tracking gains for most asian equities. stoxx 600, this is bloomberg. ♪ francine: the u.s. president this iscomplain that not the fed chairman he wants. the dollar falls. minerrld's biggest complaints about the u.s. stance. china's fix it chief says that gdp will likely be the 6.5% target despite the trade war. good morning. this is "bloomberg surveilllance." i am francine lacqua in london. tom is back. a lot of the talk will be on emerging markets. i am looking at turkish lira. tom: never-ending flow of fed independence with the presidents comments. john ryding will join us in the next hour. francine: first, let's get straight to bloomberg first word news. here is sebastian salek. accusingent trump is china in the european union of manipulating their cur

bnp paribas down nearly 5%, hsbc hitting multiyear lows in the trading. deutsche bank down 5.5%. a pretty picture. let's take it to latin america. are you getting the story now? still feeling the sting. ishares latin america, this is an exchange-traded fund with some of the best and brightest blue chips down in latin america has been hammered as a markets in the economies of mexico, brazil and argentina slide. argentina in particular, their currency also getting slapped. how is this affecting our currency? we'll get to that with our traders in just a second. let me get to tesla for a moment, trying to shift into higher gear after skidding in the final hour of trading yesterday. we do have tesla shares currently flat at the moment. literally bouncing in and out of red like a ping-pong ball in just the last two minutes. session highs today were all the way up to $359 a share, we're at $352.40. maybe it's on this. fox business has learned that the board of the electric vehicle headache -- maker was left in the park pretty much like the rest of us when ceo elon musk tweeted out he ha

trying us now further -- joining us now is the senior economic advisor at hsbc.e to your most recent notes about the u.s. and what it hopes to do. let's get your thoughts on what is going on in global markets. the correlation between the lira and other emerging market currencies. how long do we see the instant move between turkey, do they divert from here? affectedey are being by a set price issue. rather with the federal reserve is doing, raising interest rates probably faster than people had expected six months or a year ago. that has led to a strong dollar and many emerging markets especially with large accounts, a lot of those deficits in foreign currency. when the dollar goes up the currency goes down. which -- a country is looking more vulnerable. you can see it with other countries other than turkey. there is a rich history of this. situation by which the fed raises rates from a low end [indiscernible] we have created a wonderful montage for you, the scorecard, current account deficits, external debt. you made the point that the difference here is with the