hsbc has not given us a specific reason for this.se, this decision, but they did say in a statement accompanying the results that this has been an increasingly complex and challenging global environment which they think they are currently operating right now. and they say that that is the reason why a change is needed, to meet these challenges faced by the bank and to capture the significant opportunities before it. that is what the statement says. if we look atjohn flint‘s tenure at the bank, he spent 30 years at hsbc and in his role as ceo he was very much about focusing on china. remember, even though this is your‘s largest and, much of the money it makes is out here in asia—pacific. a big part of the growth strategy was to do more business in china. there are some suggestions that those plans, his plans, may well have faced some resistance from the chinese government and this has to do with the chinese telecom firm huawei, it reportedly saw internal e—mails from hsbc that the us department ofjustice e—mails from hsbc that the us

despite a big jump in profits for hsbc, the boss is leaving amid the strains of the us china trade warnd supposedly strains in links to the chinese telecoms giant huawei. also in the programme. hong kong, one of asia's biggest business hubs, faces widespread disruption because of strikes in support of the pre—democracy movement. of the pro—democracy movement. and markets take fright from all the same, recurring problems. trade wars, brexit and big currency moves — we'll have the details. with more customers gearing up to buy cars online we'll speak to the company that bills itself as amazon for cars. but how much are customers missing out by not getting the personal touch in an old—fashioned showroom? and you can be a part of the conversation. do get in touch with your views on the stories we are covering or tell us what you are spotting in business. let us know — just use the hashtag bbcbizlive. hello and welcome to business live. welcome to the programme. europe's biggest bank is getting a new boss. hsbc sastohn flint is leaving after 18 months in thejob because it needs a change in

this is coming out of hsbc.ve seen them announce john flint will be stepping down and they are now appointing noah quinn as interim ceo. we are getting the latest earnings numbers out of hsbc saying the first half adjusted jaws is up 4.5% and the buyback is up to $4.1 billion. second-quarter pretax $6.19 billion. we will get you more details as we continue to get those numbers from hsbc. this is bloomberg. ♪ ♪ hey! i'm bill slowsky jr., i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. 8:30 in monday, th

we need to talk about what is going on at hsbc. john flint is stepping down as ceo of hsbc.ure comes just after 18 months in the top job. the bank announced second quarter earnings and a share buyback of of the $1 billion. for more on hsbc earnings and this big management change, we are joined by the top-ranked analysts from -- top-ranked analyst according to bloomberg. let me ask a surprise you were by this announcement. clearly, there has been weakness to the hsbc story, but were you surprised? how do you explain the news that john flint is going? >> yes, good morning. yeah, i was very surprised. occasions,e sort of you get some speculation around the edges of the story, but, no, out of the blue. the explanation is not as clear as perhaps one might of thought -- might have thought. my sense is we are probably talking about more a culture clash or clash of characters rather than signaling a major change. talking to management this morning, if you look at some of the underperforming areas of the business, but one might have hoped we would have a little more energy and enthus

hong kong is a main hub for hsbc.uinn and of course noah needs to explain what's going on, he needs to explain to his investors into others. >> our asian finance minister in mumbai, thank you. let's get a quick check of the business flash headlines. -- it is dues to to rename its new may cap, the company says it wants to be clear about identifying facebook products, that the move is stopping controversies and created independently. the federal trade commission is already investigating whether facebook has two big of a monopoly. >> tesla giving its latest sales drives something of a power boost, ringing back the free and unlimited supercharging perk. they had scrapped the offer earlier this year, part of a cost-cutting initiative. in juneeholder meeting found elon musk described them as being absolutely key to sales. >> warren buffett is turning his back on stocks, reinforcing his traditional view of overpaying, with markets at all-time high, a billion dollars more of stocks from last quarter, the biggest net setting s

the hsbc gets its name.in some of the concerns that have been here, inh less teargas being fired these current pictures, but still there are traffic disruptions as antigovernment protesters kick off. going to if you are hong kong, flying to or from, check your airline. "bloomberg surveillance" continues on radio. treasury, aa stable global bond rally. ♪ hey! i'm bill slowsky jr., i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. ♪ >> the great majority of hong kong people are now in a stage of great

>> hsbc broke their silence.e calling for people to really work on having consensus amid differences. they condemned the violence, antiviolence seen in the city -- any violence seen in the city in the past weeks. hsbc is one of the first global banks coming out with a statement about the protests. as we note, in the past two weeks or so, some of the companies in hong kong have made statements condemning violence. some of them pledged support for the local government and police. matt: the bank is also interested in making a purchase from aviva in the region. what is the story there? >> yes. hsbc is our sources, considering a bid for aviva asia operations. it is still at the early stage. it could be the overall operations in asia. we will find out more as time goes by. there might be other bidders. bloomberg broke the news earlier this month on aviva's plans on selling the asian assets, so stay tuned. matt: excellent. we will continue to check back for that. more news on that and bring everybody the headlines they

hsbc confirms some cuts.o cut as many as 4,000 jobs after the sudden departure of c.e.o. john flynn. and reforms intended to crack down on a cds deal and buffett backs off stock rally. berkshire hathaway sells a billion dollars more than it bought last quarter hitting a record $122 billion. david: he wants to figure out a ploy but can't figure out how. rick rieder is still with us. another c.e.o. job is open. >> no kidding. there's so many people on the market too. if you think about it, we have so many -- and in just a year ago, hsbc was looking outside for a c.e.o. and end up turning internally for one but that last less than two years. david: is that part of the problem if he was perceived as the former c.e.o. person and he's been there for a long time? >> mark tucker who was who was the chairman was there but he's one outsider. when he was looking for c.e.o., tucker was in the insurance industry before he joined the banking industry. one of the people was peter hancock who was leading a.i.g. but at the en

steven major of hsbc is still with us.you take a look at my terminal, we are down right now pretty much to 2016 lows, but before that, it had been a couple of decades before we had seen a low like that. i'm curious whether any of the trade headlines or anything coming down the pike on european carmakers, for example, will impact this and how the fed is supposed to think about all of that. steven: that's a good context. it looks a bit like where we were back in 2016. in some ways, it feels like 2016 as well. just confirmed that the valuations are quite similar. in 2016.e a mistake we didn't respond quickly after the changes that happened around the u.s. election, so we had to respond to that. to me, it feels probably worse because weight now actually got more reasons for it. maybe investors might be thinking the same thing. without trying to overplay this, the fear i have is that policy rates are going to fall a lot more from here then people generally think. i think negative rates can go a lot more deeply negative, and the

hsbc coming through and publicly acknowledging the protest.utting in a full-page ad in a newspaper calling for a peaceful resolution. news is thatof they are considering an offer. interesting that they have come through calling for a peaceful way. manus: thank you very much. a little bit of a scoop here at bloomberg. there is a takeover bid that wraps up on -- raises the pressure on bain capital. it is approved, shareholders will have to choose between the two competing offers. and a new carbon tax should be eu=-wide. that is according to live funds chief lufthansa's executive. >> we need to reduce our impact on the environment. nothis point, this tax is serving this purpose. that is what we discussed here today. annabelle: qantas is feeling the drag of weak demand and higher fuel costs. a 17% plunge in profit. a droplso preparing for in passenger numbers flying to hong kong. the ongoing unrest there continues to affect demand. >> we have this flexibility of moving to slightly smaller aircraft. essentially the same product but with less seats.

hsbc: steven major, from has just changed its calls.up, earnings below are, re,have a full lineup -- galo we have a full lineup of ceos. manus: indeed. four conversations. the ceo of standard life aberdeen, the cfos of ,ontinental and commerzbank which has shifted guidance for the rest of the year. this is bloomberg. ♪ manus: good morning from abu dhabi. i am manus cranny with nejra cehic in london. this is "bloomberg daybreak: europe." says monetary policy is accommodative and cannot respond on a day-to-day basis. hits at theead lowest level since 2007. some reassurance, the yuan weakens again. the pboc is closer to the dollar, but in a bloomberg scope , officials reassure companies the currency will not fall significantly. , a fourth straight quarter of falling revenue. for profit outlooks are ambitious. we will be joined with stephen engle later this morning. nejra: welcome to "bloomberg daybreak: europe." concerns around trade tensions, let's get to glencore numbers. 5.94.the estimate was glencore.miss for first-half net debt stands

sels, of hsbc.ris johnson says he's marginally more optimistic about a brexit agreement after bonding with world leaders at g7, but are investors convinced a no deal departure can be avoided? hole in they see a rock when he slam out to the atlantic ocean? this and so much more. this is bloomberg. ♪ anna: welcome back to the european open, 22 minutes into tuesday's trading day. the first trading day of the week for u.k. markets, the second elsewhere in europe. the london market, i was going to say underperforming a little, but not the case anymore, on par with paris down .4%. boris johnson is marginally more optimistic about a brexit deal after meeting with g7 leaders, but he refused to rule out suspending parliament to force a no deal departure. french president emmanuel macron warned about britain crashing out of the e.u., saying that outcome is close. s of hsbc is still with us. it seems to have been a long summer in the u.k. in the sense parliament is not sitting,, so note of elements on that fro

. >>> hsbc has a surprise departure of the ceo, flint, in the role, amid a report that thousands of employees are set to lose their jobs. >>> the yuan slides to the lowest in a decade, with the move being called normal, promising to keep the currency stable >>> we've got some final pmi numbers for the yoeurozone it is in line with the estimate we got a few days back june number was 52.2 this is a three-month low. services pmi is 53.2 that's slightly lower than the flash of 53.3 and slightly lower than the june final number we saw of 53.6. interesting looking at the services new export business down at 49.2 into contraction territory, in line with the flash and very slightly lower than the month in june >> of course, this comes on the back of that very disappointing german pmi we just had a few minutes before pointing to a composite pmi number for germany of 50.9, below the 51.4 flash, and lowest in aggregate since june 2013 for germany, the lowest numbers since june 2013 for the composite. euro zone as a whole, pmi composite at a three-month low i'm happy to bring in the asset manager of vang

is this going to make things better for hsbc?re was a huge restructuring story, then it became a buyback returns story. now it has been how do we manage investment? suddenly, topline changed dramatically. we are probably back to costs and efficiency. maybe he's going to crack the whip and refocus a little more. the u.s., they are not going to make -- in 2020. it's not good enough. the fact is the world has changed very quickly. manus: good morning. the patient's level for those renminbis banks might be .hittling down you talk about the business and global effects. he talked about global ash -- you talk about fx.bal it was currently hibor state, high for longer than expected. relative to european banks, you have very good topline momentum. i bank with lots of capital. we want to see various pockets improve. how did they do that? >> costs, balance sheets, management. have been investment program. they are not going to want to slow down. they need to invest. growth got no revenue and they need to invest. manus: did the buyback impre

the s&p this morning said it showed the increased ruthlessness of the hsbc board. an insider riding up, but in the bank's history, we may see for the first time an outsider taking the helm. shery: they had never brought an outsider to leave the bank. we were thinking there would be an inside promotion. are there any candidates or are they just looking outside the firm now? >> there are internal candidates. we have one analyst in today's coverage saying maybe the job is his to lose. he is a commercial banking executive, which is something we see across a number of banks. commercial bankers at deutsche bank are also rising. we have others who joined this year, formally the cfo at rbs. here, mark tucker, the chairman of hsbc, wanted straight talkers at the helm after low morale and a lack of direction. shery: how will john flint's tenure be assessed now? revenue gains outpacing cost increases. finally in this earnings result, things turned positive. sonali: it is tough for bank ceos because investors are pretty impatient. want to cut costs, increase revenue, but at th

so maybe, maybe, we don‘t know this, maybe john with hsbc.damaged dam in derbyshire believe at least two more days of pumping are needed to get the water to a safe level. more than 1,500 people have been evacuated from whaley bridge. officers have criticised some residents who have refused to leave, saying they are putting their lives and those of the emergency services, at risk. 0ur reporter sam fenwick is in whaley 0ur reporter is in whaley bridge. as you can see and hear behind me, the pumps are working away to channel water away from the reservoir and into a neighbouring field as a catchment area. they have been pumping away throughout the night and been pumping away throughout the nightand in been pumping away throughout the night and in the days before that as well. to show you how successful they have been, the water levels in they have been, the water levels in the reservoir have dropped so far by more than half. but there is still a way to go, it has got to get down to 2596, it way to go, it has got to get down to 25%, it has got to

hsbc has announced chief executivejohn flint. down.d it needed a change to stop the challenging global environment. the move was announced along with its results which showed first half pre—tax profit rose in june. which showed first half pre—tax profit rose injune. this week, asian central banks take centre stage after the us federal reserve cut its main interest rate for the first time in more than a decade. we start with the reserve bank of australia and interest rates at a record low of 1% after two consecutive cuts and on wednesday, the reserve bank of india's turn and that's after it cut rates three times ina that's after it cut rates three times in a row. with no signs of a let up on the trade war, we get trade numbers out of china on thursday. last week, president trump announced he would impose tariffs on another $300 billion worth of chinese goods. we end the week with chinese goods. we end the week with chinese inflation data after the price of books sword as african swine flu hits applies. earlier, i asked how damaging the

is bothina business smaller than hsbc, but hsbc is clearly being excluded, so that has some asking, whatis there some tension between china and hsbc? david: and that takes us back to huawei. sarah: we can't get away from it, but supposedly, "the financial times" recently reported that the former ceo of hsbc who resigned earlier this month, as well as their head of greater china, sat down and was brought in for interrogation for the bank's role into the arrest and prosecution of huawei's cfo. it goes to show that there's probably nothing they can do about it. the ceo did say, look, we just had to release the information they were asking of us. we couldn't really say no. but now "global times" in china an saying they c potentially be included on an unreliable providers list. alix: including fedex. alix: so there are tensions between --sarah: so there are tensions between china and hsbc. in the western world, you say it is the rule of law. you have to comply with a subpoena. i'm not sure china sees it that way. it is all politics. alix: let's go to our second story, which is volatility. str

make strategicit sense to hsbc?e face of it, it doesn't, but then you go to the minute , and he ise chairman an insurance man some -- interest man, so it's something he is familiar with. >> when we first broke the news it,viva potentially selling here we are and they are indeed looking at it. the fact is that hsbc is very exposed to hong kong and they are looking for ways to diversify. especially in singapore and southeast asia. we need be better to look at a bank in southeast asia instead? >> life insurance offers a good way for banks to show their generate revenue as well. david: could there be other parties involved? is still in the very early stages. it still unclear what the structure of the deal will be. in the next few months i'm sure there will be other names brought up. will bely other names around these assets. want towhy would aviva sell it european operations at the moment? think this business is under a lot of pressure and they need to streamline and refocus and invest in those core markets where they a

rate strategy at hsbc. great to have you with us.e familiar with the reaction yesterday to jerome powell but today, is the bond market going to get on board with this idea of a mini midcycle easing? the 25fed delivered basis point rate cut everyone was expecting, but it is far from clear this is part of an andnent cutting cycle now we are expecting another rate cut to follow in september, but that is far from the series of insurance cuts the market had been anticipating, which is why the weakness in the two-year yields. the 10 year sector on the other hand matters slightly less and i think from here you are likely to see a period of call consolidation -- consolidation or yields where they are. our two's, tens treasury call for the end of the year looks less out of whack than some had done previously. we've had lots of calls calling for yields to move even lower but we would have to paint gloomy scenarios for the economic outlook to get there and it seems premature to see that. matt: remind us what your call was, what does this mean f

john flint is stepping down from hsbc after 18 months as ceo.inance editor, russell ward. the departure of john flint, just 18 months on the job, when will replace him as interim ceo. the question is why? chairman,he board mark tucker, said there is a need for change, and the company issued a statement saying the outlook has changed, highlighting several headwinds facing the bank and global banks in general. one being the drop in u.s. interest rates, another being geopolitical risks. they highlighted brexit in particular, saying there is no withility on there, boris johnson possibly heading toward a no deal scenario. flint had only been in the job 18 months, and in his first year on the job, he struggled to contain costs. there is a metric where revenue exceeds growth and cost and he did not achieve that in the first year. in the first half of this year, he did. it's a little puzzling that he has seemed to have gotten the costs under control but now the board has decided he is not the man to take the bank forward, given the headwinds. shery: giv

hsbc was among several european banks releasing results.hey surprised with an executive shakeup. >> john center is stepping down as chief executive hsbc. his surprise departure happens after 18 months in the top job. that is as the bank announces a share buyback of up to $1 billion. we had heard the possibility of differences. how much of the focus will be at someone who can shakeup the u.s. and asian franchises? >> that was unexpected. according to reporting they may potentially look outside as well for the first time ever for hsbc. we may see a ceo that is not coming from the institution. that will be a big change for the bank. the u.s. businesses a hot topic for the bank because returns have not been very positive there. they also have liquidity they would like to use. the business is not very competitive compared to the big u.s. banks. there are few decisions that need to be taken. >> commerzbank says it is becoming tougher to reach a target for higher profit this year. the bank reported a fourth straight quarter of falling revenue. glo

hsbc is the story. oil and gas trading lower. bottom end of the market, where we are seeing most of the weakness. it is an personal household goods, basic resources. that is how it is breaking down. that is affecting london and that is why london is underperforming. a few individual names to give you an idea of what is going on. i want to mention hsbc. losing is ceo. radical change looks like it is coming. the stock is down 2.65%. lvmh is trading down 4%. oil stocks under pressure as well. bp trading down 2.47%. that is a look at a wild ride for european equity markets. vonnie: it started last night trading chinese -- yuan at 7914. quite a spread between onshore and offshore. that is guiding markets today. a selloff of the top of the session and that will only continue to deteriorate. the s&p 500 down 2.1%. one stock higher, verizon. the 10 year lower. 106.11.at let's move to the next board. the mexican peso, another one of the currencies -- currencies across the board moving today. -- i thought iay would point to the home entert

hsbc speaks out for the first time.. ♪ ♪ francine: this is "bloomberg surveillance." i'm francine lacqua here in london. let's get straight to the bloomberg business flash in new york city. >> any new carbon tax should be e.u. wide, according to lufthansa's ceo. he said german airlines would be hard-pressed to shoulder more environmental levies unless the nation's partners follow suit. >> there is no room for toreases, but rather room see how money flows back into the industry to really reduce our impact on the environment. that's what we need, not more taxes. we need less impact on the environment. at this point, this tax is not serving that purpose. that's what we discussed today. >> staying with airlines, qantas is feeling the drag of weak demand and higher fuel c osts. they are reporting a pungent pretax profit and preparing for a drop in passenger numbers flying to hong kong. we have the flexibility of moving to slightly smaller aircraft. aircraft,y, the same same product but with less seats. we will do that over t

overall the profitability of hsbc has been stable >> thank you very much >>> the united states imposedanctions on iran's top diplomat and a key arc tekhitect of the nuclear deal zarif said the move had no effect on him or his family. he tweeted is the truth really that painful thank you for considering me such a huge threat to your agenda. >>> coming up, intel's ceo talks about the trade war and its impact on the technology environment in china stay with us here, it all starts with a simple... hello! -hi! how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. >>> qualcomm's third quarter revenue fell short of expectations, that sent shares as much as 5% lower in trading the gings for tuidance for the quarter disappointed as its outlook was damped been huawei technologies the qualcomm ceo noted the strong

hsbc has settled similar fines in france.ntal hotels is being hurt by the trade war and protests in hong kong. shares slumped after revenue per room fell half a percent in greater china and the second quarter. corporate travel in china also fell but was balanced by resilient leisure business. the ceo says hotels in china mostly rely on domestic travelers but hong kong is a slight concern. >> as the demonstrations began, we did not see any material impact in hong kong but as they have progressed, we have seen a bit of a slow down over all and some of the meetings and events. that disruption and in certainty will have an impact going on in hong kong but it is a small portion of her overall global business so hopefully that will be resolved in the near term. paul: singapore is tightening regulations on ride haven such as -- bringing safety rules in line with taxi operators. new rules come six years after ride-hailing apps hit the streets in singapore. before that, 28,000 taxis. today come about 20,000 and 40,000 private cars. sh

>> we've been cautious in the hsbc this year for that reason the global economic slowdown but also hsbcas been the traditional safe haven stock a lot of invests own it. it's a positioning call. a lot of people own it the domestic uk banks have been less owned we're quite concerned about hsbc, in particular hong kong profitability being at peak levels we think that will come down over the next couple of years. >> is this the year we will see a cross-border merger or acquisition effort within the eurozone banking system? >> short answer, i doubt it. europe needs it. europe needs more consolidation. i doubt they'll get it >> we'll leave it there. thank you for chatting with us and breaking down the situation for the european banking system. >>> coming up, u.s. bond yields are flashing recession signal but the boss of deutsche post siz econom says economic fundamentals in germany are strong (client's voice) remember that degree you got in taxation? (danny) of course you don't because you didn't! your job isn't doing hard work... ...it's making them do hard work... ...and getting paid for it

hsbc settled a similar fine in france.ry: disney hit by falling theme park attendance and the costly flop of a marvel movie. third-quarter profit fell to one dollar.35 -- $1.35 a share. disney saying lower attendance led to reduced profits at domestic theme parks. paul: occidental is selling $13 billion debt to pay for it. occidental received orders that peaked at more than $75 billion, the biggest demand for a debt sale since saudi aramco received more in april. investors are willing to take a risk again despite volatility in global markets. still to come, brent crude slid into bear market territory as the trade war threatened to eclipse -- in the middle east. this is bloomberg. ♪ ♪ from the 5am wakers, to the 6am sleepers. everyone uses their phone differently and in different places. that's why xfinity mobile created a wireless network that auto connects you to millions of secure wifi hot spots. and the best lte everywhere else. xfinity mobile is a different kind of wireless network designed to save you money. save up t

hsbc surprising the market. got a story that suggests cfo, who has not been there that long, is seen as taking the ceo position. what is the latest there? >> it means the choice might not be the acting ceo. it means that she appears -- he appears to be a rising star. he has been described as an internal activist. we have seen some of the things he has been saying sound more like an angry shareholder sounding like why aren't we fixing this. i should mention, he was brought in for quite a lot of money. they may have had great ambitions for him for the very start -- from the very start. he has been very serious about cost savings and was a big job cutter at rbs. that will be key. matt: ross, thanks for joining us. bloomberg's finance editor joining us from rome. pulls the plug on the ruling coalition calling for early elections. that sent italian yields surge in. -- surging. guests andare our the chief economist for the italian ministry of finance. first, what do you think of the political situation? what kind of o

tom: what is hsbc on european banking?ak on specific banks, but do you do a cell or is it the mother of opportunities at .32 and .22 book value? underweightre still in the equity market and the debt market has the equity cushion which is quite solid. in the equity market, we have the cyclicality of the sector that goes against you, the low yields, the links to the political arguments, et cetera, so still underweight on the financial stocks. tom: the deterioration of the tape with the 2-10 spread coming in. the yen has not moved stronger. the yen has not moved stronger. the news flow out of hong kong has been extraordinary, the opening and reality of the airport and cathay pacific's challenges. this is bloomberg. ♪ ♪ viviana: this is bloomberg "surveillance." pacifichares of cathay kept falling, closing down more than 2% a day after hitting a 10 year low. cathay canceling hundreds more flights as protests continue at the hong kong airport. protesters are waiting to see whether cbs viacom merge. -- cbs and viacom merge. they

how luxury to see opens up as well as the likes of hsbc and standard chartered considering hong kongheir health care has just gone red. it looks like it will be a heart place to put your money today -- hard place to put your money today. matt: we are seeing more stocks down than up this morning. 400 48 losers, only 128 gainers. in terms of the gainers, we see gaining,d diageo pharmaceuticals like glaxosmithkline. deutsche telecom on the rise this morning. the defensive stocks are what i am saying. staples, thensumer alcoholic beverage makers, drugmakers, the telecoms. a very defensive list of winning companies. once again,ide, lvmh, hennessy is down, hit hard by concerns about what is going on in hong kong and you've got some of the other -- airbus falling this morning, hsbc down 1% this morning. most stocks are going to be losers but kering down. and asianarkets lower stocks following u.s. counterparts lower as turmoil in hong kong and argentina had to trade tensions. joining us, eimear daly, the mea .x strategist at macquarie bank i wonder if people are going into the yen, going in

less process, more action, that is what hsbc's interim chief wants.-- he made the comments on a call with bank bosses. he says hsbc needs to be honest about quote what is working and what is not. occidental selling 13 billionaires -- $13 billion of debt. debt since saudi aramco in april. we have been told the order book for the offering was to a peak of about $75 billion. that is your business flash. francine: china's currency policy is staying at the forefront of the trade war. the pboc said the daily reference rate just marginally stronger than seven a dollar. vowedg has a valid -- has to keep the exchange rate steady. where do we go next on q1 -- on yuan? valentin: weaker still. our call is it may reach 7.3 or 7.5. we think the fixing policy at the pboc and the communication has been that they are not afraid to let it slide a bit more. the key would be to offset any negatives coming from the trade war between the u.s. and china. , the factor that may contain further appreciation about financial stability, especially given the experience where the d

. >> yes there is another company hsbc taking a different approach. those firms that could get badly hit. if they move their base to london before the 1997 handover but more than half of their revenue comes from asia including mainland china. they have tried to steer their business for the mainland to push into businesses. they have a strong headquarters one of their basis in hong kong as well. so far, they have come out and they haven't really said it much and response or distancing themselves from the protest. of the financial times has reported that hsbc managers allowed staff in hong kong to attend a midweek demonstration back in june. >> that's hard when you have hong kong in your name. catch shery ahn daybreak australia. bloomberg technology is coming up next. >> have a good evening. this is bloomberg. ♪ in ♪ -- ♪ emily: i'm emily chang in san francisco. this is "bloomberg technology." coming up, the power of the good old fashion telephone. will conversations help apple's case on trade? the cofounder of google the mind is placed on leave. what i

hsbc said to have an internal candidate in position to become the new ceo.urrent chief financial officer joined the bank in january. sources say he has quickly established himself as a leading force and forged a strong chairmanip with tucker. hsbc has been shrinking its international footprint to cut costs, but the strategy has yet to pay off for investors. a bank is looking to raise $270 million from a share sale to institutional investors. discount.ng a 6% investors have said no to yes bank. shares down more than 50% on concerns about capital levels. : sales, bookings, and monthly users missed estimates of the stock is down to its low as levels since may. here now to go through the numbers with us is wedbush securities indeed director of research. thanks for joining us. we were expecting -- the market was, rather, to be disappointed, but maybe not that disappointed. compensationed related to the ipo weighed down, but going forward, what will overdue -- uber do? a bighink that is question for investors. where can profitability go from here? i think right no

down ason is stepping chief executive of hsbc.he bank announced second-quarter earnings and a share buyback of up to $1 billion. a lot of people were taken by surprise. we'd heard possible differences. how much of the focus will be on someone who can shape up the u.s. and asian franchise? according to our reporting, they may potentially look outside as well for the first time for hsbc. a big see it coming from change for the bank. it's a hot topic for the banks. returns are not being positive. they had extra liquidity they would like to use. the business is not very competitive compared to big u.s. banks. there are a few decisions that need to be taken. haslinda: congress bank -- commerzbank says it's higher profit this year. a fourth straight quarter of falling revenue. operating profit fell. >> how hard is it to do business in this negative rate environment? >> it is getting harder, especially if you believe forecasts like this. on the other hand, it's a reflection of what we have seen over the last year. the question is not how

shery: hsbc said to be way of a bid for of eva -- bid for aviv'' s operations in asia.e deal is in the early stages but it would help hsbc bolster its insurance options in asia. aviva operations could be worth as much as $4 million. paul: in new zealand, full-year net income above estimates. proper came in at 200 70 million kiwi dollars and 170 million u.s. dollars, $10 million above projections. the airline is searching for a new ceo. cfo jeff mcdowell is due to stand in until a replacement is found. shery: plenty more in the next hour on "daybreak asia." we have a preview of bank indonesia's rate decision. this is bloomberg. ♪ paul: i'm paul allen in sydney and we are an hour away from the market open in sydney. >> i'm shery ahn. sophie: and i'm sophie kamaruddin hong kong. welcome to daybreak: asia. paul: jackson hole awaits jay powell speech. observers came to learn about the fed'

hsbc has i think something like 30,000 jobs in the last five years.hange their business, with an enormous number of redundancies. the only thing we have got in the uk left in the world of investment banking is barclays, and thatis investment banking is barclays, and that is in the united states of america. so these figures the financial times raises are com pletely financial times raises are completely accurate, and more importantly, the emphasis they put on the banking climate darkening is spot on. what does that mean for the uk economy? that was always seen as the engine of growth but of the money we are making in the uk.” think the one thing about the united kingdom, forget brexit, is that it is like new york and tokyo, a major centre where you have the best accountants, the best lawyers, you have the centre of business activity, infrastructure that has been there for 70 years. it is the peripheral areas, in my humble opinion, which will be more damage than everywhere else. will london be affected ? than everywhere else. will london be affected? 0f

clearly people are not taking their cue from hsbc on this one.ng from hong kong. volunteerism. fundraising. giving back. subaru and our retailers have given over one hundred and sixty-five million dollars to charity. we call it our love promise. and it's why you don't even have to own a subaru to love a subaru retailer. subaru. more than a car company. this is rhis life is...of pretty comfortable. rick blomquist thought he had comfort all figured out. but then, he laid on a serta and realized his life was only just sorta comfortable. i've been living a lie. [laughs] the serta icomfort hybrid mattress. not just sorta comfortable, serta comfortable. get a free motion base upgrade or get up to $900 off select icomfort sets. yesss, i'm doing it all. the water. the exercise. the fiber. month after month, and i still have belly pain and recurring constipation. so i asked my doctor what else i could do, and i said yesss to linzess. linzess treats adults with ibs with constipation or chronic constipation. linzess is not a laxative, it works differently.

. >>> hsbc ceo is out. tracee carrasco has the details. company announced after 18 months leading the bank, john flint is being replaced. he will serve as interim chief. hsbc released second quarter earnings along with the aannouncement, posting a rise in net profits. fox corp. is buying a majority stake in credible labs. the deal is valued at 2 $265 million. credible is a marketplace for consumer lending information. it is used by people to shop for loans and for mortgages. the deal gives fox a 67% stake in the san francisco-based company which is listed on the australian market. and victoria's secret reportedly hiring its first ever transgender model. valentina sempio posted an instagram photo at a shoot. the company came under fire following remarks made by the chief marketing officer, he said transgender and plus size mo he's tells shouldn't be included in its fashion show. and that's what's happening now. cheryl: tracee, thank you. we've got a major selloff going on in the futures markets this monday to show you many this is an escala

like hsbc.the protesters say hsbc has gone too far and is defending the government against demonstrators, and that has gotten them in trouble in the local market. what puts you in this weird position if you are a company, whether you are falling behind beijing but do business in hong kong then the locals are angry , at you. jason: still ahead, troubled waters. it's this week's cover. taylor: plus, battling it out to make the best plant-based burgers. we size up the competition. jason: this is "bloomberg businessweek." ♪ ♪ jason: welcome back to "bloomberg businessweek." i am jason kelly. taylor: and i am taylor riggs. still ahead, in the year that saw ipos from uber, lyft, and pinterest, the breakout star is a company making fake burgers. a look at beyond meat and the growing industry. jason: plus, a former venture capitalist bridging personal and professional wellness. i sat down with the founder of reset on how her new studio helps new yorkers go from burnout to balance. taylor: and how ralph

like hsbc.n the protesters say hsbc has gone too far and is defending the government against demonstrators, and that has gotten them in trouble in the local market. what puts you in this weird position if you are a company, whether you are falling behind beijing but do business in hong kong then the locals are angry , at you. jason: still ahead, troubled waters. it's this week's cover. taylor: plus, battling it out to make the best plant-based burgers. we size up the competition. jason: this is "bloomberg businessweek." ? ♪ from the 5am wakers, to the 6am sleepers. everyone uses their phone differently and in different places. that's why xfinity mobile created a wireless network that auto connects you to millions of secure wifi hot spots. and the best lte everywhere else. xfinity mobile is a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you buy an eligible phone. click, call or visit a store today. jason: welc

hsbc ex dividend. aviva and some others will be the big drag on the stoxx 600 today.oes not hold us back higher moves. european markets are gaining even after the 30 year treasuries in the u.s. hit a record low dropping below 2% for the first time ever. we talked to a number of people on bloomberg television about this yesterday. let's listen to what they had to say. we may end up in a situation where people read alarmist headlines, get concerned, stop spending, company stock investing, then we get a major slowdown. el-erian talking about his view on what happened. joining us now is luke hickmore, investment director, standard life investments. what is your take on the bond apocalypse as it has been called today? the drop in a 30 or treasuries, and the inversion on the two-tens. luke: i am not sure what you are calling it. i think you have to buy duration at the moment. it is about where you start, we started low and are running into this soft phase that can turn into a nasty recessionary phase in the next 18 months. yields need to go lower. rum where we started, the

hsbc ousting ceo john flint after 18 months on the job company's chairman says the move is necessaryo speed up growth plans including its u.s. business hsbc telling dow jones it plans to cut thousands of jobs and slow investment spending this comes despite the bank reporting a rise in first half profit and a $1 billion stock buyback. >>> softbank's operating profit rising in the second quarter, adding more mobile users they're maintaining their forecast for the year with growth seen rising 9%. stock not reacting global weakness down 0.5%. >>> berkshire hathaway's operating profit fell more than expected in the second quarter wa weakness in insurance underwriting and trading woes for buffet's economy trading at $306,000 a share. >>> coming up, are we on the verge of a global currency war china doing something it hasn't in ten years, and it could mitigate the tariffs how does president trump react what does it mean to your money? answers to both ahead. five? one to five? it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry

german yields this week, hsbc came out and took the german ten-year down to -.81, and they got there in four days. kathy: i would tend to disagree that you have to ignore treasuries in your report audio and just go for risk. there is a time and place for risk but we are underweight high-yield right now. tom: i like it, dissension. ferro never does this, true dissension. kathy: we went underweight high-yield about a month ago because we saw the risks rising, we do not see the value being attractive. that being said, spreads widened, and we may change in time, but people are paying for safety. they are paying for duration. sometimes you need something safe in the portfolio to offset the risky part of the portfolio, even if it is not paying you a great return. tom: an historic week in the bond market, truly, like we have never seen. peter tchir with us, margaret patel, kathy jones. i am even more thrilled jonathan ferro is not here. how about high-yield? we will talk to margaret patel. dissension here. kathy jones saying maybe not, margaret patel saying load the boat. i have no idea wha

. >>> hsbc announces their chief executive officers leaving the company after two years. he runs the commercial banking and will serve as the interim ceo. >>> bard will begin phasing out of paper tickets. the first station to be affected will be oaklands 19th street station, part of plans to get all writers to use clipper cards which can be purchased at the station. >>> afire tears the hillside forcing evacuations. firefighters now have the upper hand but our road remains closed. an update on the marsh fire, coming up. >>> this is a lie book outside, this is on the eastern span of the bay bridge. you can see some low clouds. we will check in with mary to talk about our forecast. we will be right back. wimpy trash bags? c'mon. hefty! hefty! hefty! hey ladies... buy hefty® ultra strong™ at a low price. dada! i wish... get hefty® ultra strong™ costs less than glad® forceflex where sold head to head. >>> welcome back. the father of the bay areas [indiscernible] now met with the media. even elder spoke outside his home. he just returned from italy where his son is in jail. inv

now hsbc and standard chartered, as well as the bank of east asia, have all placed ads in mainly the after the political unrest we've seen in hong kong. in hsbc‘s ad, the bank said it was deeply concerned about recent events in hong kong, and that maintaining the rule of law was essential to hong kong post but unique status as an international financial centre. standard chartered echoed much of the same sentiment in its advert, saying that it strongly supported the one country, two systems printable. i think all of this just shows you the pressure that businesses in hong kong are under. as the city has been rocked by these weeks of political protests, ostensibly these protests are about their much talked—about extradition bill. but many people are also fighting against what they see as the growing influence of china in their political and economic life. and i think this really encapsulates the predicament that businesses in hong kong now find themselves in. effectively, they have to make a choice, they have to choose. and the reality is that china is a massive market for these compan