but hsbc insisteds that pepper isn't replacing any jobs. she is augmenting tse tha exist by handling the more mundane tasks. hsbc says pepper ensures customer privacy. >> there is zero customer data. zero personal ide information. and pepper is not asking for it not storing it not recording. >> each pepper costs about $25,000. an investment that hsbc says they recoup the just three hours after installing her at their flagship location in new york this summer. the firm says she has brought in more foot traffic and those customers have signed up for credit cards checking accounts and other revenue generating products f the company. but pepper's not all business. she loves to show off her moves. tell jokes. >> what do you call an alligatorer detective. >> i don't know, pepper. >> an investigator. >> and eve take a selfie. >> regardless of the gimmicky side hsbc is eng banking on pepper even if she just hel someone crack a pile. for nightly business report, leslie ecker. >> her is a look at the final numbers from wall street. the dow raled 401

. >> hsbc beats the shares. into thes amazon clouds, dropping $33 billion in cash to buy red hat in its biggest deal ever. rallye bolsonaro continues as brazil's next president delivers the message investors want to hear. manus: it is not starting well this monday morning. fors show you your risk this morning. that is october. go to the middle of the board. s&p futures are down again. you have also got the brazilian rail marching -- brazilian real marching higher. you're seeing it rally, the s&p 500 dropped by .25% and likewise, the pressure is not relieved in the indian market. you are seeing a little bit lower on the nifty 50 this morning. these markets are starting definitely with a sense of frivolity and anxiousness carrying through from late friday. nejra: the 10 year yield stays on the 3.07 handle. we have seen the yield dropped as equities have been selling off and we have seen a touch of weakness in the euro in this session on a 1.13 handle after merkel.s, hit to the bloomberg dollar index posting a litt

quarter was a bit of a letdown, hsbc is up about .6%.n deliver on positive jobs. that was when the market was good, what does that mean for this? >> that will be key, naturally. that's it for bloomberg markets. "daybreak middle east" is next. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. announcer: the following is a paid advertisement for an authentic grill taste and no smoke.

overnight we heard from hsbc shares trading over 5% higher this morning a nice boost there hsbc has beaten third quarter profit estimates after the lender appeared to lower the costs and boost the market share in asia. pre-tax profit hit $5.9 billion while expenses fell 2.4% ceo john flint said the bank was in line saying it was keeping its costs under control. hsbc had been falling until this point. a good boost this morning. keeping in the bank space, deutsch bank, deutsch bank is canceling an agreement to sell its mexican assets without citing details the lender is considering alternatives to the asend asendo banco moving away from banks into the airlines space, ryan air, a key ryan air investor has reignited calls to replace chairman david bonderman. the local authority pension fund which holds a 1% stake in the budget airline has said it will file a motion to fire bonderman. ryan air is trading 2.2% lower on the news. with that i will hand it back to you, jeff at the desk. >> william hobbs has joined us, head of investment strategy. good morning, william. nice to see you. >> good morn

hsbc's shares rise the most any year. chases amazon into the cloud, using $33 billion in cash to buy red hat in its biggest ever deal. and the phenomenal rally continues as brazil's next president delivers the message the investors want to hear. nejra: good morning everyone. it's just 7:00 a.m. in london so we are about an hour away from the european equity market open. sharestracking brazilian heading for their biggest jump since 2008. there are some stocks in europe that have exposure to brazil. we could see some gains in europe overall after stocks closed lower on friday. we saw u.s. stocks closed lower on friday and have the biggest weekly drop in months and of course u.s. stocks heading for their worst month since 2009. perhaps some positive the -- positivity coming back to europe. ftse 100 futures up by about 0.8%. dekes futures up by 0.4%. cac 40 futures lagging a little bit but a touch of a relief rally may be coming even if a short-term bounce. a coupleeen this times, a little bit of a bounce in a pullback by the

hsbc's andre de silva continues our conversation. this is bloomberg. ♪ david: the big story this week has been measures put out by china and a lot of the problem is confidence within the private sector, which is why you are getting them to encourage banks to lend more. the top handle shows shadow banking. the crackdown on that and it disappeared as far as growth. then you had sentiment push lower. the question is, do we get that consummate or pickup in local --b -- debt,at e or is the banking sector designed to service the private sector in china? have a look at this chart. it sets up this conversation, where it needs to go when it comes to the chinese mainland. yvonne: let's bring the question to andre de silva. you look at the woes we have seen in the private sector in china. do you think structurally, the banking sector can't contain these risks or lend to these types of companies, because most of the time they are lending to state backed companies? andre: there seems to be restriction on smaller lenders in terms of funding squeez

. >>> in earnings hsbc projecting plenty of it there are cost cuts and it's up by 4%.ig move higher hoping to pro tell many of the bank stocks on the european side of things. >>> we are just getting started. up next we are going global. chinese stocks dropping more than 2% overnight. we're going to bring you live reports from london and singapore. the mid terms and your money could next week's election have an impact on your money? we're going to debate that when "worldwide exchange" returns in a minute place, the xfinity xfi gateway. and it's strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. >>> welcome back if you're just waking up or heading into work, the futures picture is looking somewhat bright dow jones slated to open up by 47 and the s&p up by 7 >>> the global picture, we have all of our market reporters and experts around the globe julianna standing by in london with the european

this is bloomberg. ♪ matt: hsbc surges.largest bank rises as the ceo is seen to deliver on growth. cloudses amazon into the with a $33 billion purchase of red hatch, the largest acquisition by far. shares sink in the premarket for ibm while red hat sees a big boost. brazil lurches right. what will his victory mean for markets? welcome to bloomberg markets, the european open. i matt miller alongside emma edwards at our european headquarters in london. anna: let's have a look at where we are. we are a little incomplete because we are seeing delayed trading on euro next. keep an eye for the opening. it was not clear when trading would start. we are pointing out other upgrades and downgrades moving share prices around. this company is an advertising business and they have been upgraded. nemechek also getting an upgrade. hsbc is up 3.7%. the ftse 100 gives london a little bit of an extra boost. in terms of risk on attitudes, the count and gloom from china and the overnight session in asia, we have better sentiment with regard to

sounds like hsbc disney, your local bank, do you see which i mean? is he would you mean.ll, 2 billion views on videos, that's not any other website advert, those are staggering numbers. the investors are excited, growth came from 0a, we've only been serious for... how do you turn into people spending money? that's the opportunity, we can actually own the place people start, when they are not completely sure for they might be going, we can on that, we can get everybody there, we can take them all the way down to booking, we are ina unique all the way down to booking, we are in a unique position to do that, no one is as credibly position to do that. air 3&3 one is as credibly position to do that. air 383 offers cultural experiences, you have competition? bigger competition, we share an audience but we believe we are more equipped to go up the final as we say as they are equipped to go down the final, by that i mean we can become transactional and they are equipped to become storytellers. how much do you know about those who are viewing your website, how do you get the data?

what about hsbc's plans to list in china, do we expect to hear any more?gnaled they would like to be the first company to take advantage of the new program that could be launched. as early as december, and hsbc is saying they would like to be the first to list in shanghai under this new link. this is part of the strategy of expanding further into asia. that would be a good first step. were also hearing that securities could be opposite, listing in london. shery: thank you. someonep, we speak to from goldman sachs, and look at all things japan, including the boj's next possible move. a look at the japanese markets is next. this is bloomberg. ♪ ♪ this is "daybreak: asia." shery: the boj will maintain policy this week that may use greater flexibility in yield movements as a tightening measure. joining us is a chief equity strategist, and kathleen hays, who is covering the boj decision this week. kathy, thank you for joining us. i want to start broadly on a question i think markets are thinking more and more, a big one for central banks -- tightening financial

janet henry, global chief economist at hsbc stays with us.t down today with a lot of exit dividends -- executives. today, the bp cfo joins us at 11:30 a.m. london time. going to be all about your leverage ratio. if you are traveling to work, you can go to bloomberg radio. they are on mobile and dab digital in the london area. ♪ >> it is her decision and i found a very respectable. i just had the chance to express my admiration and friendship to her. it has been 13 years she has been the chancellor with the mandate ending in 2021. she has faced many challenges. the migrant and financial crises, and has never forgotten the values of europe and leaves her country with a lot of courage. nejra: that was emmanuel macron with supportive words for and love merkel. let's look back at her political career. in november 2005, she became germany's first female chancellor. securedmber 2013, she her third term in the biggest victory for any german party since 1990 your -- reunification. manus: in 2015, she opened the door for refugees from the middle east,

the chief executives of uber, hsbc and blackrock are among the many to have pulled out of it amid concernsver mr khashoggi's death. meanwhile foreign investors pulled about $1.1bn out of saudi arabian shares last week. that's more than any other week since the stock market was opened to them in 2015. many governments are coming under pressure to reassess their trade ties with saudi arabia including the uk which is the kingdom's second biggest supplier of weapons but the foreign secretary says more clarity is needed. we have an important strategic partnership with saudi arabia involving defence and security cooperation which has saved lives on the streets of britain. we also have a trading partnership that supports thousands of jobs. but a trading partnership that supports thousands ofjobs. but while we want to be thoughtful and consider it our response i have also been clear that if the stories we are reading turn out to be true they are fundamentally incompatible with our values and we will act accordingly. stuart thomson is head of public affairs at the law firm bircham dyson bell. thank

morgan and janet henry of hsbc. of the british chamber of commerce will talk about brexit. this is bloomberg. >> bloomberg's first word is brought to you by oppenheimer fund, the right way to invest. ♪ -- until my last breath. [applause] he is saying that any have a backdoor will be met with the u.k. walking away. he's basically saying the u.k. may be left with no choice but a no deal brexit is the eu tries to lock us into a custom union. is the brexit secretary, saying the eu must watch the u.k.'s pragmatism. this is a very internal fight. we keep asking whether theresa may can make it a week. she came under attack by boris johnson was again. you have to ask, who would want the prime minister's job right now? tom: i look at this, and there's no difference therebetween what we see in beijing in a very forced meeting. i'm sure anna can tell us the backstory. francine: there are loads of backstory's, but it is just very difficult to see a way out without upsetting a fraction of the conservative party, no matter what w

you have ford, uber, you just said hsbc, credit suisse. black rock, jpmorgan chase, viac viacom.ing to have it beth ways, being careful about not saying why they're not going. they have big business deals they want to do in saudi arabia, but they want to send the message this is not going to fly. this behavior is not going to fly and they need answers. >> they all do enormous amounts of business there. those banks are doing trades and advising the saudi sovereign wealth fund. >> at this point, this is optics. >> no divestiture. >> there's a company, a talent agency that said it was trying to unwind a deal. richard branson was the first to step out and say he was exploring a billion dollar project and he would explore it no more. you're right, jim. if you start to see pressure on the sovereign wealth fund, if you see deals canceled, that will send the message. >> to that question, who needs whom more? jpmorgan, uber, ford pull out. do they need saudi more or does saudi need them more? >> it's a pretty symbiotic relationship. this is a big hub in the region. it's trying to diversif

they manufacture medicine and surgical equipment and has been downgraded by hsbc.said it could be one of the reason we see off all. a number of other stocks we are seeing. matt? matt: i am watching fiat chrysler and we can pull it out and if i can get all price. fiat chrysler looking like it is having difficulty pricing. it has not yet. we see fiat chrysler failing to send an opening price enemy long. too many people -- in milan. -- too many people want to buy and not enough sell it. we are likely to see a large fiat chrysler. opening up across the board, higher across the board, mostly positive session in asia. massive rally in china. what you are seeing on the terminal, csi 300, broader 4.3%.e index closed up 37 $.20. a different index. surged.ghai searched -- over the has to three years, still down 21%. areidea that chinese stocks rallying today in the mix of all bear market. citigroup, the picture this paints is we are in it a bear market for chinese markets.or a lot of em it has been 80's and rally, is it time to go back in and start buying? think more broadly

the european economist at hsbc is with us. good morning.y markets stealing attention from eye-popping moves. at what point does the selloff in equity markets throw the fed off course, particularly when you couple it with the fact that the dollar is at its strongest? keepviously the fed does the global economy. they need to look at what's going on in the u.s.. in the u.s., there is a huge amount of business coming through. the fed will stop once they start to see the u.s. economy slowing down, which we think that happen toward the second half of next year. until then, it is very unlikely what is going on will move them off course. ultimately they fear that inflation and domestic inflation pressure might get out of control and what they might be behind the curve. manus: one interesting number that came through on the markets yesterday was on the united states. it really good shape the confidence of the markets. do you concur with that view that you can't keep going stimulus after stimulus? at some juncture, confidence can be knocked by the eq

shery: great to have you with us, hsbc greater china economist julia wang. roundup of the stories you need to know to get your day going in today's edition of daybreak. bloomberg subscribers go to your terminals. it's also available in mobile on the bloomberg anywhere app. you can also customize your settings to get the news on indices and assets you care about. this is bloomberg. ♪ shery: this is -- haidi: "daybreak: asia," this is haidi stroud-watts in sydney. shery: i'm shery on in new york. of 1%kkei falling 2/10 after falling the most since march. we see more downside pressure for japanese stocks. though rebounding after seeing the loss that -- longest losing streak since 2014. the korean won the weakest in one week. 3/10 of 1% --wn 0.30%. lowest level in april after u.s. stocks took a beating on wall street. said, aregarfield these green recovery, or are they get cap with the final? the big mover today is ashley dollar one, which is we can the most in about one month since the more positive unemployment numbers. we also see a strong recovery in the aus

. >>> hsbc reported better than expected profit in its third quarter.gest european bank said it benefited from stronger business in asia as well as from cost controlhs shares were up nearly 4% today to $40.18. >>> first data missed earnings estimates and cut its full year profit forecast. the paymentrocessing compa says it is facing headwinds from the negative impact of currency fluctuations. and so first data shares took a beating today. ey fell 16% to 18.01. >>> and after the bell, mondelez helped p earnings edget expectations. the maker of oreos and sour patch kids reported a rise in ts came in those res shy of estimates. shares were volatile in the after hours, but finished thela re day unchanged at $40.11. >>> comingp is the entertainment industry getting any closer to closing the gender gap? ♪ >>> when it comes to gender equality, a n svey has found that the country's entertainment industry still has a long way to go. julia boorstin is in los aeles withhe details. >> reporter: after a year marked by the time's up and me too movements and high-prof

beginning with nike, downdra gred from hold to buy at hsbc, the analyst cited the valuation ing the huge 60% run up over the past year. the pris target at $92. shares of nike fell to 82.50. oracle downfrayed graded to to inline from. the anast says lack of this any catalyst keeps it from pushing high are. the price target at $53. the stock fell 1% to 49.75. >>> michael cores was upgraded to buy from neutral over a citi. the analyst sites steady earnings and the recently acquisition of ver sacha. the price target is $79. shares rose 3% to 68.08. and temper sealy upgraded to neutral from sell, at ubs, the analyst says the company could benefit from a potential mattress firm bankruptcy. the provides target is $56.to 10e rose more than to $53.66. >>> hail ahead, the road ahead, ow long before highways are full of self-driving cars? >>> the national retail pr federation is forecasting holiday seasons for tailer. says it expects to sales to increase4. compared to last year to a total of $720. the figure by the way excludes cars, gas and snding at restaurants. >> senator bernie sanders wants to

they were set to be one of the major beneficiaries of this business rate cut because of chains like hsbct was charged to the building, not the occupier. when you make a cut to small businesses, it is often a cut for big businesses to. what you're going to see is a lot of fiddling around the edges and nothing that looks like a radical reform of business rates, which is what george 0sborne promise not so long ago. there were consultations on it but nothing came of it in the end. do you think the chancellor will come under pressure on monday from other politicians to say, thank you very much for giving this temporary relief, as it were, but you need to change the system. am i right in thinking corporation tax is based on profits whereas here it is based on this definition of the value of the property, which is notional... it is absolute nonsense and in many cases, business rates can be a tax on failure because you pay rates even when businesses are empty. it is nonsense and totally against the concept of how you raise tax. you raise more tax on an empty store and factory, you are losing mon

the chief executives of uber, hsbc and blackrock are among the many to have pulled out of it amid concerns's death. meanwhile foreign investors pulled about $1.1 billion out of saudi arabian shares last week. that's more than any other week since the stock market was opened to them in 2015. many governments are coming under pressure to reassess their trade ties with saudi arabia — including the uk which is the kingdom's second biggest supplier of weapons. we're joined now by david wearing, a middle east expert. but let's cross to that conference live fast, the pakistani prime minister imran khan attending, he is one of the world leaders who is still attending the conference. but let's get the thoughts of david, david, this is the second of these investments conferences, the first last year was huge, this were not as big as that but still hundreds attending. it is not insignificant. it's not. the politics of it are quite significant, there is a trade off going on here, a cost benefit analysis. the benefits are obvious, saudis with huge sovereign wealth and plans to invest and diversify oppo

hsbc is a useful catalyst to remind people, it is not just about one quarter.than we were. i would not be surprised if you see the selloff stop. guy: great to see you this afternoon. joining us from bloomberg intelligence. forget to tune in to bloomberg posthumous radio, jonathan ferro -- bloomberg's radio, jonathan ferro and me. the chancellor will be talking about what he has to say this afternoon. this is "bloomberg." ♪ guy: live from london, i'm guy johnson. vonnie: live from new york, i'm vonnie quinn. time for our stock of the hour, ibm moving on its biggest ever m&a transaction. it was down two point 25% after saying it was going to buy red hat. hat, theying red largest m&a acquisition, also the second largest ever. that is a hefty deal for ibm. red hat is in the cloud services , focused on open cloud which is you get the code for free but you pay a subscription to get upgrades. the cloud is something ibm wants to bolster. this was a $1 trillion market leicester. ibm looking to boost -- market last year. ibm looking to boost revenue growth. turnaroundk w

the chief executives of hsbc, google and credit suisse have become the latest people to pull out of anow not go to the event, dubbed "davos in the desert". jp morgan chief executive jamie dimon said yesterday, he would not attend. it follows tensions between the us and saudi arabia over the disapearance of a saudi journalist. paul allen, who co—founded microsoft, has died at the age of 65. he had cancer. he revealed the disease's return only two weeks ago, after previously being treated for it in 2009. in a statement, microsoft co—founder bill gates says he is "heartbroken by the passing of one of my oldest and dearest friends... personal computing would not have existed without him." tesco, sainsbury‘s and asda all saw their share of the grocery market fall in the three months to october according to the latest figures from ka ntar world panel. aldi and lidl both notched up gains. aldi rose from 6.8% to 7.6% and lidl rose from 5.2% to 5.6%. paddy power betfair has been fined £2.2m for failing to stop stolen money being gambled through its website and for failing to protect customers

blue—chip globalfirm, you wa nt to you are a blue—chip globalfirm, you want to be in the same index as hsbc in london. some government ministers might spin thatis some government ministers might spin that is a brexit or no brexit, london is the place to be. brexit or no brexit, but let's talk about brexit, because we have to. theresa may at the tory party conference this week, did she do enough to allay concerns and make people feel allay concerns and make people feel a bit more confident in the brexit process , a bit more confident in the brexit process, and did she do enough to get you dancing? i was get you dancing? iwas in get you dancing? i was in the newsroom when it happened and there were shrieks of various different kinds, people going god no, people going good on her. i think on balance it did more good than harm. it was her best speech for ages, i think it was her best moment since the election. 0bviously she had the spectre of borisjohnson he was saying chuck chequers and what have you, she said stick with my plan, backed me and if you back me on brexit i will end austerity, whi

you need to get money to entrepreneurs, so you need more competition in the banking system, hsbc lookso list in china, there might be a greater opening, and that may be the only way really to improve the financial system, but it won't happen quickly. that might bea it won't happen quickly. that might be a positive side—effect of the trade war, i say this cautiously, because the only way for them to resolve the trade tensions with america is for america to be able to sell more into china, and it is consistent with china wanting to open its services sector more for these reasons, and because that is how you become an advanced economy, you open up, you learn and partner with countries that have done this for longer. so americans are more services, that is a better way to reduce deficits. really interesting, thank you very much, dr linda yueh there. let's take a look at some of the other stories making the news. amazon says it's creating more than 1,000 "highly skilled" jobs in the uk — in manchester, edinburgh and cambridge — working on software, machine learning and cloud computing. amaz

look at members of city mental health alliance hsbc, we have brian heyworth, the vice at city mentalerience was of you have leaders from ceos, board level, right the way through tojunior board level, right the way through to junior members of staff, people from the graduate schemes and in towns and school leavers. they are talking about mental health. that is what is making the difference —— and in turns. what are the warning signs, the things people can look for in ourselves and our colleagues, workmates in the workplace? what do we need to keep an eye out for? briefly, mental health first aid is a training programme that city and workplaces around the country are rolling out, 300,000 people had been trained. that is about making mental health just as much as a priority as firstaid. like health just as much as a priority as first aid. like a cut on a finger or a broken leg, mental health is on a par. the where's you head at petition went to parliament to get legislation amended so that we are looking at mental health in the same way as physical health in the workplace. timmy, that m

credit suisse is now not going come hsbc. it is really -- not going, hsbc.y becoming a place that executives do not want to be seen as this drumbeat of news out of saturday -- out of saudi arabia gets louder. there will not be trump administration officials attending. : switching to london, there is no deal on brexit this week, as largely expected. what are we looking to next? will december will be the -- will december be the make or break moment? >> we keep wishing it forward, don't way? with no deal -- we keep pushing it forward, we? with no deal this week, could theresa may come up with something that could get through parliament that she could then take to brussels in a december meeting so they can start the period. that transition they deal she is china to come up with this to lengthen i period, to take longer rather than 21 months, to then be able to settle this irish border dispute, which is really what is the big contentious -- what is causing -- the contentious issue that is causing the impasse. we could be looking at more time. that is not entirely

getting hit, the overall indices heading the lowest level in about a year stop still with us, the hsbcies analyst. this is all at a budget standoff between italy and the eu. have you look at that? is there more room to sell? do you need to buy? >> we are underweight european. vulnerable,pe is valuations that i think are following you adjust it in the earnings are not coming through. it's just that elevated level of economic policy uncertainty. catalonia, all this is depressing the and earnings story. i wonder if there's a larger term issue here. the deputy prime minister over the weekend said there would be such an earthquake in all countries against the austerity that the rules would change the day after the election. if he is right, what does that do to europe? are they moving away from austerity, opening the floodgates for debt? >> i don't think it will get to that. the base case is you get some accommodation. just the level of uncertainty which holds corporate back, keeps multiples relatively low. risk, do itto take in em where you are paid to take it. alix: at what point would you

the likes of hsbc, ba rclays, workers. the likes of hsbc, barclays, and workers.o make things a bit easier for their staff. 0ne firms to make things a bit easier for their staff. one of the law firms, one of the people works for them is graham wallace, he suffers from anxiety, he wants to get things spot—on and worries about detail, for example. he has decided to speak to us at breakfast and talk to us about his experiences of mental health in the workplace. in the run—up to when i was off, getting through my work and doing everything that i was required to do, but underneath the toll on my mental health was clocking up. eventually, i reached a stage where i completed one transaction that had been extremely stressful and once the adrenaline had dissipated i went home, about a week later woke up and could not get out of bed. i was in floods of tears. i did not know what was happening. i went to the doctors and they signed me off. people are aware that i do occasionally have issues with mental health, so they are alive to it. i have been able to speak openly and hon

hsbc privates is bank.t toowell worried right now about inflation, despite the growth and low unemployment. if you look at the secular story in terms of inflation since 1982, it has been a slow down for -- downward. the phillips curve is not dead. technology continues to put downward pressure on wages. you have a new technological revolution that is about to begin that will be very deflationary. this concept just has to be extended. david: this chart is a little complicated. i will explain. the blue line is unemployment. it is down 4.5%. blue ise line below the inflation compared to the 2% target. it is coming up toward the 2% target. 2%, evenen well below as an employment has come down. in the past, as unemployment comes down, you have seen inflation spike up above 2%. it makes me nervous when you said this time is different. >> i think what we are seeing it -- think of what has happened to crm software and hardware, the supply chain. when i started in this business, we watched bottlenecks in the business

let's discuss the applications with hsbc chief u.s. economist kevin logan.hank you for coming into the studio. let me bring up this chart showing global pmi. outperformance of u.s. manufacturing, that would be your line in white. in china, europe, things don't look as good. how uncomfortable could this divergence get for the economies in emerging markets? >> it is ironic. a strong u.s. economy should be good for the world. strength in demand will pull more imports and lift economies elsewhere. the problems arise in financial markets. the concern is the strength of the u.s. economy eases strengthen the u.s. dollar. higherr dollar means expenses for borrowing in emerging-market economies. economies have to take more in their currencies to service their debt. it tends to take capital away from emerging markets. financing becomes more expensive . on the real side there should be more demand coming into the u.s. in the form of imports. there is concern about financial stability. that is what markets are focused on. what's going to happen to bond markets in stock

i am taking a look at hsbc. this is how you do it. you wind up spending more and making more.it growth and spending billions expanding into key asian markets. it actually worked out for them. that stock is up in the premarket. finally some good news. david: and other company that has not done so much, ge. we turn to brooke sullivan. big week for ge. >> we have a earnings coming up on tuesday after they delayed those numbers about a week to give ceo larry cup more time to hear about this -- learn about this business he is inheriting. they were down last week, erasing all the gains since his hiring. problems have been happening at a time when other industrial companies were doing quite well. their businesses were healthy. you have to think about, on top he hasother challenges to get ge on its feet, that is going to be harder if their healthy businesses move in the alix: run direction. how long does -- in the wrong direction. alix: how long does he have to prove himself? >> not very long. that said, i don't think there is a quick fix for ge's problems. there is no magic button. t

hsbc has agreed to pay $765 million to claims related to mortgage bonds.ties say the bank chose to put defective mortgages and the bonds and caused significant losses to investors. a restaurant here in manhattan has brought a movement to an urban setting -- a far movement to an urban setting. bass infish for striped a restaurant. fisher,e not much of a the restaurant can help you catch them. that is your business flash. romaine: do i get a discount for doing this? why my fishing for my own food? joe: because we live in the city and we need something that resembles the hunt. this is the closest to it. caroline: it is like you used to choose your own mobster and i have the catcher on fish. how big of these fish in the pond? joe: it is a tight labor market. customers have to do some of the work. [laughter] caroline: fascinating. i'm intrigued. coming up, is your fender bender for luxury cars. we look at china and we bring you more data ahead. this is bloomberg. ♪ caroline: that's a rather misty evening in new york a we're looking toward asia. europe's luxury

. -- callingve hsbc for caution as the rupee has been the example fire, falling below 15,000 for the first time in 20 years. we are seeing that indonesia is looking to shore up the currency , perhaps looking to cut taxes for bond investors to your end that money. also watching the pound, starting back below 130. other has joined carmakers in making contingency plans. were keeping an eye on tesla suppliers in asia. we do that china remaining on holiday this week and south but it is reopening today and were just a few days out from the r.b.i. policy decision expected to hike rates by 25 basis points. let's get you the first word news with jessica summers. jessica: they chairman jay powell says he won't agree to is confident and low employment will not stoke inflation. he said wage rises were broadly in line with the fed's mission and don't point to the labor -- he expects the fed to stick with the current path of hikesl interest-rate while monitoring a preordained set of risks. >> this historically rare caring of low inflation and low unemployment is a testament to the fact that we rem

komatsu, seeing results from japan and korea, and we are on the watch out for hsbc, china telecom latern the day. that is for the eco-agenda. on that front we have japan sales due out later. we will get the update from vietnam when it comes to trade data. over the weekend we did have chinese profits slowing for a six-month in september. the pmi data due out on wednesday. we are expecting a slowdown on that front to drop for the month of september. haidi: big week on the data calendar. let's get you to first word news with a haslinda amin in singapore. the names have been released of 11 people murdered in saturday's mass shooting at a pittsburgh synagogue. the victims were aged between 34 and 97 and included two brothers and a married couple. the accused gunman is due to appear in court monday to face 29 charges. he made statements about genocide and killing jewish people. a law enforcement official said he owned his guns legally. the british government presents the budget later with hammond morning a no brexit deal might mean extended austerity. recent data shows a hard split would slow

thank you to jose rasco, chief investment strategist of hsbc private banking americas.oming up, caterpillar takes a fall as the mining and construction equipment maker warns about rising costs. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. better than expected third-quarter earnings doing little to lift markets. 70% of companies be done earnings per share. will it results from the likes of caterpillar adding to concern that corporate profits have peaked? joe doeme for more is who took a very deep dive into caterpillar earnings. did investors in this anything? shares were down 10%. joe: investors didn't seem to miss anything. they seemed to be prepared. if they came in line or slightly better, that would not be good enough. i think that is what we are seeing in the stock. the question about peak has been going on since their first quarter earnings call in april. when they said it was the high water mark. be theseems to follow-through, that even though they are offsetting the top -- the stocks of tariffs, they are not showing outperform that

it has been announced to buy hsbc that it is settling with be -- r&mbated to rm claims.is a story with an incredibly long tail. we have been waiting for this settlement for a long time. we are getting details on it. i am not entirely sure whether it is on the plus or minus on the members. i have -- on the numbers. i am not seeing much reaction on the london stock listing. the hong kong listing already closed let's get to battle of the church. -- the charts. what have you got? >> we have been talking a lot about tencent, losing $220 billion in market value, more than any other company in the world. i want to talk about the divergence between u.s. and chinese tech. two werewe see the trading in tandem. but now chinese tech stocks are down 35% from their peak in january, whereas the u.s. tech stocks are down only about 4% from their peak last month. the question on a lot of traders minds is will we see convergence? for that, we will look at the bottom of my chart, which shows the correlation between the two. there is a bit of a trend upwards. we could see this convergence u

the revenue story out of hsbc has been strong today. analysts appear to be focusing on a. has done well. the same not true in spain. one of the big banks trading down which will confuse things for the spanish government looking to exit the institution. i mentioned angela merkel. let's look at where the euro is trading around the european close. plot today. not much reaction to the merkel news. flat today. the markets trying to understand what the news means. the euro/dollar pretty flat throughout most of the european session. the caveat i mentioned is this. european stocks are trading higher today but on lower than average volume. you can find is on your bloomberg. these are the averages. we are below the averages in terms of where we have been trading. the white line is where we have been trading in volume today. it is below the blue line. up day but on lower than average volume. and that is a look at the european markets. david: thanks very much. for bloomberg first word news, we turn to mark crumpton. mark: president trump is escalating his threats against the migrant c

time to buy, hsbc says now could be the time to get into core european stocks as u.s.rowth is expected to slow early next year. less than half an hour away from the european open. take a look at equity index futures. in certainht gains areas and slight loss in others but just unchanged, hovering the level watermark. euro stoxx 50 futures gaining .0 -- 106. we did hit that magical 3.25% level in the early part of the section, trading at three point 2.ur -- 3.44 investors have sold treasuries and some may buy back in as the yields get juicy enough. what do you see in gmm's? anna: i wanted to see your attention to something that is not moving much, the china csi 300. we were talking about selling and china, extensive selling making up for the week when they all on all holiday -- holiday. the csi 300 has been higher but it is flat to negative. the indian sensex losing ground. if we can throughout the other side of the gmm let's see where we are on the sovereign debt and commodities story. we have been talking about commodities. about the relationship between chinese equity

. >> in terms of the bigger macro picture, hsbc said recently when they reported that the impacts ofhe trade war have not yet fully manifested itself in business activity in a meaningful way, your guidance going forward on that topic is fairly gloomy. set up how concerning it is going forward these trade fears. >> we were trying to be realistic rather than gloomy what we are seeing is clearly a lot more talk about where do the tariff wars go to. in a small part we've seen some reduction in some of the capital market activity. i think it is fairly early days. at the heart of this, many of those countries, consumption levels are still holding up. this is more about the flow of distribution for us in particular, having a large presence in asia, if there is some change in flow between china and the rest of the world, we're well positioned to benefit from that. >> the headline is trade with china is getting worse you recently were one of the first foreign banks to be fwrantfwrant ed granted a license to be a custodian. if you had been a u.s. bank, do you think you would have got that lice

>> hsbc has generated in the first half, more than 70% of --fits in asia and -- 17% 17% of profits inusiness in the region, china has been a growth driver of the global economy, maybe slowing down at the moment but a lot of action is in asia. tom: thank you so much. hsbc.y appreciate it on we make a hard turn to the real reality of central banks and president trump, a critic of the american central bank. david folkerts-landau with us from deutsche bank. you know where the real rate is, the yield curve, i would suggest the fed funds target rate is barely positive inflation-adjusted rate. we have miles to go, don't we? david: yes and no. going afteruage in the fed was objectionable but the underlying thought is not necessarily wrong in that he focuses on inflation and if you look at inflation numbers, no need to increase rates. on the point of view of reshaping sustainable equilibrium, the fed funds has favorout and we tend to for the fed to go ahead and go one more this year and three more next year to get to an underlying 3.5. i can see donald trump's argument and from a non-economist

you mentioned some of the business titans that have pulled to creditfrom hsbc suisse to siemens but thereome ceos who are going and that includes the ceo of total, we had some lines out from one of the most hour for in saudi arabia, speaking at a panel, and she clearly addressed the killing of the saudi journalist, she said this is something that is alien to the saudi culture before she crossed into some of the other key topics they were going to talk about. it is a story of trying to persevere and trying to hold on to all the work that has been done and trying to raise saudi arabia's profile abroad with foreign investors. matt: as we talked about a little bit, turkey's president erdogan has vowed to reveal what happened to khashoggi "in all its nakedness." what can we expect and what is the turkish leader playing out here, why are they playing such a big role in this issue? ultimately, the turkish government has been a little bit left out or feel they have been left out from the regional power plays. we understand from a diplomatic source that this has been described as a gift from god,

research out this morning from hsbc suggests that there are differing levels of financial confidence kids know how to deal with money to help them in future. good morning, everyone. yes, this is something we've talked about on breakfast before — financial education has been on the national curriculum for secondary schools since 2014, but it's not compulsory for primary schools yet. the banking giant hsbc has done some research on this and found that nearly a third of parents don't talk about money in front of their kids. so what's the best way to approach this with kids? we asked some families in manchester. we will pay for clothes, but if you are happy to pay for your own clothes, sometimes we have to remind her that we will pay for that, whereas we are now going to buy a computer game. yes. which was promised for good behaviour, so... rewards and things like that. ev said she found something she wanted to buy, but i suggested that she would use some of her savings, but she said no, because i saved my savings —— evie. sol she said no, because i saved my savings —— evie. so i suggest

. >> hsbc is reportedlt to become the first foreign company to list on a mainland chinese stock exchange according to "the financial times" the banking giant is planning to list deposit rece t receipts on the bourse as part of a new link between the shanghai exchange. this will give the lender access to more chinese domestic investors. the london shanghai trading link is meant to go live at the end of this year >>> coming up on the show, novartis announces a deal for a cancer drugmaker while raising its guidance more when we come back every call is different, so the only thing that we can do to make sure that we get there safely, and that we leave that scene safely and go home at night, is train. and we train all the time in the fire service. no matter how much we train, the last thing you want in a disaster is to lose cmucations. without communications, we have nothing-- people get hurt. when disaster strikes, that is when your communication service can really become your lifeline. ♪ (nicki palmer) we are constantly innovating. from a dedicated lane on our network just for first respond

headlines coming across the leadership, hsbc and credit suisse will not attend the saudi conference. schwartzman king yesterday. i should point out the bloomberg has pulled out as a media partner. we did that a few days ago. coming up, the senate majority leader mr. mcconnell of kentucky. look for that in the 9:00 hour. this is bloomberg. ♪ is bloomberg. ♪ francine: this is "bloomberg surveillance." tom and francine from london and new york. geopolitics, what happens in the khashoggi case as we await news of what happened to the journalists. geopolitics taking center stage together with corporate earnings. we are back with stephen macklow-smith at jpmorgan asset management. i asked who are required do in this little chart for you, which is looking at the treasury round and how that is impacting equities. stephen: i think now that yields have started to move up, the bond market is recognizing the attention of the fed is to raise rates in a systematic way. it is also reflective of the fact that the growth picture in the states looks to be healthy and inflation is under control. there i

interesting thing to see because we understood a lot of these key speakers, the business titans from hsbce and so on, they have pulled out and the conference serves as a key platform for the ideas in this part of the world, a lot of the vision that saudi arabia is trying to sell to the world so the success or failure of this conference will be essential for the saudi story, for a very long time. markets so far have taken this in stride after a selloff last week. "daybreak: middle east" cohost, thank you. china stocks have returned to their losing ways a day after despite more efforts by the pboc to stem the route in one of the world's worst performing equity markets. we are asking the question on in life, is there a flaw for china's equities that can last after the government's latest maneuvers? great to have you with us. great that we can ask you this mliv question so is there a flaw for chinese equities? louise: as you mentioned, the at that level up and they will try to take some of the steam out as we see these markets going lower. whether there is an actual level that people are head

coming up, we posed the question to the global head of fixed income research at hsbc.will ask him if he thinks rates will go higher from here. that is next. ♪ >> good morning. i am anna edwards. this is bloomberg daybreak. covering note. it's asian -- recovery mode. asian stocks bounce back a rate is china a currency manipulator? the u.s. treasury department said to think not, but steven could rule differently. and wells fargo kicks off u.s. season. good morning, everybody. 7:00 here in london. let's talk about what is going on in these markets and how the futures are shipping up. ftse futures, open for a while. all to the upside. picking up on the positive fives and u.s. futures pointing higher. setting, we have seen a broad rally taking place. the chinese market a little bit more sluggish in the morning session. the currency also part of the story. i'm reporting around the treasury. tolooks as if advisers steven mnuchin are not manipulating their currency. we expect the report next week. in the u.s.futures indicating a positive start. let's look at the bond markets.

we heard hsbc and credit suisse's ceo's will not be attending.hard branson said he would freeze any ties to the country until more is known about this case with jamal khashoggi. really interesting chart. annmarie.olutely, our guest economist said we are excluding sdi in terms of growth. we should just say there are several companies, including our own, including bloomberg, that have pulled out of the future investment initiative as media partners next week. nejra: let's get the bloomberg first word news with desley humphrey in dubai. donald trump has called the fed his "biggest threat," criticizing at once again for endangering economic growth by raising interest rates. the central bank has hiked three times this year. speaking to fox business, the u.s. president ratcheted up his rhetoric of chairman jerome powell. not. trump: look, i am happy with what he is doing, i will tell you that, because inflation -- and i fully get the one thing -- the federal reserve. i get it as well as any president who has ever been here. i get it really well. but ri

an hsbc analyst upgrading the recommendation to buy from -- -- coming through from this stock on thevings plan through 2020. year to date it has been underperforming, down about 7.2% versus 83.1% drop on the cac 40 40..31% drop on the cac matt: we will bring you some of the other stock movers we're watching. the are plans to sell a u.s. health care business -- there healthns to sell a u.s. care business. it is up 4.5%. ♪ ♪ anna: welcome back to "bloomberg markets: european open." we are 42 minutes into your trading day. theresa may says it she does not expect to extend the brexit riod, despite reports she is considering the eu proposal. >> progress on withdrawal agreement and on the future partnership of our future relationship. on the withdrawal agreement, there are issues remaining around the backstop. the backstop is what would come in place to ensure that there will be no hard border between northern ireland and ireland if the future relationship is not in place by the end of the riod.mentation pe matt: let's take a look at what the british papers are saying from out here in berl

uber blackstone, black rock, hsbc. only the faces that could fit on this screen right now.d out of this event. there are some big names that are still attending. you have the imf christine lagard who going in. u.s. treasury secretary steve mnuchin who did say that the relations with saudi arabia are good and that they are a good partner to the united states. however, had you senator republican of arizona jeff flake comments on this and he tweeted out and i quote: secretary mnuchin should not be going to riyadh. many people weighing in whether people should be attending or not. the saudis today according to the final times have retaliated against one company decided not to go company operated by richard branson. richard branson runs the hyper loop company. this is virgin hyper loop one they have said the saudi arabias said they are pulling the deal on hold. originally going to invest $1 billion into research in hyper loop. they have now said that they are pulling out of that deal at the moment. it's on hold. so this could potentially be a bigger picture of more retaliation f