hsbc profits plummet 96% for top across hsbc based in london that isa top across hsbc based in londons in a? yes it is. although i'm sure there will be tiny violins playing out in the country for not making big profits. as you might expect it this year it has pretty serious implications. it's a real canary in the coal mine for the sake of the rest of the uk economy. a lot of this appears to be down to potentially default in the year and next year. a pretty big recession hits home this is not a good sign for the uk. as you say, it's also an interesting story. because hsbc is absolutely at the nexus of this west versus china issue which is clearly going to dominate much of the century. we saw hsbc come out in support of china's new laws in hong kong last month. which was widely condemned by western government, western customers. hsbc is in a hugely difficult position trying to sit between these two warring sides. anna, so much for a v—shaped recovery. i think the bank itself looking to make 35,000 job cuts itself. yes. jack is absolutely right when he talks about banks being the ca nary

hsbc depend on hong kong.as a massive leg of its growth and tensions between china and the hsbc, there are concerns they may not be as positive as they could be. the global trade bank with sanctions risk and all this kind of stuff, the top line is the big unknown. i am not worried about capital. no one is worried about capital. they cannot restart dividends yet. chinais no answer about and u.s. relations. hsbc -- people are struggling for reasons to buy. the answer isn't because anyone's worried. positivet whether the -- where the positive capital is and to the bank trapped between a rock and a hard place, china into the u.s. trade and all the risks that go along with that. alix: it doesn't seem like they are trapped because they have made a well-known where their priority is. if they will pare down their u.s. business and continue to grow revenue in asia, it seems they have made their choice. at what point will be stop calling hsbc u.k. bank? growth, inn terms of terms of profit they have 60%, their business

her reaction there to those numbers that we have just received from hsbc.'s store count to about 1a,000 across the us and canada. speedway was sold by its parent company marathon petroleum which has been hit hard by a decline in fuel demand because of the pandemic. german health group siemens healthineers says it will buy american medical device company varian medical systems for more than $16 billion in a bid to become the global leader when it comes to cancer care. the purchase is the biggest health care deal this year, and the first major move since healthineers was spun off and floated in 2018 by siemens. microsoft says it's committed to buying the north american operations of the video—sharing app tiktok, and wants to complete discussions with its chinese owners by the middle of next month. this comes as us secretary of state mike pompeo says the trump adminstration is just days away from announcing strong action against chinese software companies that it perceives as a security risk. joining me now is craig erlam, senior market analyst at oanda. nice

we just spoke to hsbc. he is worried about the commercial arm. how is it for you?: the french economy has been one of the most severely impacted by the crisis until mid-may. we saw during this quarter a low level of service fees in retail activity, no transactions, and an increase in deposits. this had a negative impact because less fees and the deposits with negative interest rates is costly for the bank. we have observed since may a significant rebound in transactions in terms of activity of our clients in france. so we are recovering fast. it is significant in terms of loans. we had significant activity in terms of loans. inproduced 19 billion you'reuro loans. service feesained and lower transactions of our clients. now it is better. , thankseverin cabannes you very much, deputy ceo at societe generale joining us this morning. a full and copperheads of guide to the numbers, along with the surprise 1.3 billion youeuro loss. let's get up to speed with your first word news. laura wright is with the team. the u.k. is considering the worst-case scenario of a lockdown

hsbc now says it will accelerate its planned cost cuts. expected to eliminate 35,000 jobs. earlier on, bloomberg television , ewenwith the cfo of hsbc stevenson and manus cranny asked about the reasons for the latest credit loss guidance. incurred just under $7 million of expected credit losses in the first half. businesses most impacted are the u.k. we had $1.5 billion of additional credit losses in our you keep -- in our u.k. bank and commercial banking among the commercial segments. i think the big driver in the second quarter though was a very big shift, a negative shift in terms of the economic outlook of the global economy in 2020. with a recovery in 2021 but not enough to offset the sharper recession that now everyone is expecting this year. costf: you were expecting savings in the second half. will that program get accelerated going forward? and the targeted cuts -- will they be increased? with the pleased progress we are making on costs. costticipated that the would be flat. we are signaling that we will be down at least 3% this y

hsbc earnings.rg. ♪ ♪ ♪ yvonne: lewis -- good evening from bloomberg's global headquarters in new york. haidi: asia's major markets have just opened for trade. our top stories, tiktok faces imminent ban in the u.s. but insists it breaks no local laws. markets -- microsoft is interested in a deal and has discussed the idea with president trump. the 7-eleven owner revives its pursuit of the gas station chain. aey will pay $21 million in deal set to close next year. goldman sachs and bank of america are being shunned because they worked with alibaba's rivals. shery: japan, south korea and australia coming online. let's get to the market action. starting with the open in japan, the first quarter gdp contracted at a slower pace than expected. the nikkei 225 adding nearly 1.2% after a loss that saw the first monthly drop in four. the topics had a drop. it is opening to the upside by 1.1% and the yen marched towards 105, and jgb set to decline ahead of the boj's first bond buying of the month, kept its pur

coming up on the show, hsbc shares slide to the lowest level in more than a decade. a sharp rise in provision. more after the break at cdw we get you're always looking to modernize. yeah. i'm just not sure office drones were the way to do it. [ laughing ] drone voice: l-o-l. our market share looks good, but... drone voice: where are the bagels? well, cdw can help you modernize your company the right way, with a scalable infrastructure from hpe, making you more efficient and secure. great. oh. [ drones buzz angrily ] let's find a different room. for transformation that works, you need hewlett packard enterprise and it orchestration by cdw. people who get it. what happens when puts its customers in charge? well, the good news gets shared. and it gets rated #1 for customer satisfaction. but don't just take our word for it. take theirs. it's your wireless. your rules. only with xfinity mobile. call, click or visit a store today. >>> welcome back to street signs, everybody european markets open for just over an hour and it's already been a session we opened up around the

missing the market, hsbc shares dip on surging bad loans. we'll hear from the company's chief financial officer. and tiktok turmoil -- the u.s.-china tensions threaten risk appetite. mike pompeo suggests action to protect national security won't stop with one company. good morning, everyone. welcome to "bloomberg surveillance." i'm francine lacqua in london. tom keene is in new york. tom, a lot going on. you look very dapper, especially for monday morning. the markets are focusing on banking stocks that disappointed in terms of earnings, and they are also looking at what else we are doing in the world of treasuries. treasuries, wef have disinflation galore in america. 10-year tips breaking down to new lows. this is unimaginable, all that in the backdrop of washington. to me what is fascinating is once again -- i say good morning to -- we have been full by randomness. the story of the french banks this morning is absolutely extraordinary. francine: the french banks, but actually hsbc also disappointed. that is why we are seeing a to thebit of

. >> another company caught in the crossfire's is hsbc. the u.s. blasting it for allegedly siding with beijing. what do we know? stephen: this is an interesting one because the timing. we know hsbc was blasted several months ago when the national security law came out at home and abroad for at least initially not signing on to support beijing's law. then it finally did. it signed a statement with other signing the wong document in support of national security. now as we approach september, the united states and mike pompeo is blasting that move by peter wong as well as siding reports hsbc has stopped executives from accessing their credit cards and personal bank accounts following the arrest of jimmy under the national security law. continue to they provide services to those individuals sanctioned by the united states. mike pompeo says the bank is maintaining accounts for individuals sanctioned for denying freedom for hong kong while shutting accounts for those seeking freedom. hsbc has declined to comment. stephen engle with the latest on that chi

annmarie, contracting the hsbc story.g basically, the bank is helping deny freedom, attacking the bank over its handling of next media executives. this is another swipe against the management there in terms of their position with the chinese authorities. free nations must ensure that their corporate interests are not suborned by the ccp. stock is down nearly 2%. a lot of-- annmarie: risk this morning. hurricane laura will be the most powerful hurricane to ever strike louisiana. areas could be uninhabitable for months. the region basis for bradley -- deadly storm surges. we will look out on how the market reacts. we will bring our guest in for her take on this. what does this mean for refining margins across the gulf coast? perspective,om our this is an event -- we have seen it in hurricane seasons before. it will be supportive for the oil price and for refining margins as well. that's what we are expecting. however, we will have to see how the hurricane passes and the degree of damage and how long the various areas will c

hsbc shares down 40% year to date.are going to report their earnings and a little under 1.5 hours. that is one to watch. the geopolitical tensions and play but also putting aside a provision and result of the coronavirus. we will be speaking to the cfo later tomorrow. on looking at some of the currencies as commodities as well. the bloomberg index has been essentially flat, the dollar vs yen. gold is down 0.1%. that is with the 10-year yield is doing. 0.54 is what you are looking at. week.d: a big week this we are just on day one. we have a lot of central bank decisions. the reserve bank of australia tomorrow, when day indonesia, bank of thailand on thursday. the philippines reporting second-quarter growth numbers. bank of england to end the week. andall-important trade data the nonfarm payrolls in the u.s. as well. tom: more analysis on all of that economic data we are chiefg ahead to with the economist at high tongue international. -- hai tong international. what are the key data points you are looking at that could

hsbc has denied a comet. -- denied to comment.hief north asia correspondent stephen engle. up next, we get the outlook for emerging markets with deutsche bank. this is bloomberg. ♪ haslinda: investors will be watching for clues from jerome powell and other federal bankers when they hold their jackson hole symposium virtually. we spoke to the kansas city fed president who says it is still too early to tell if the economy needs more support from the central bank. >> i think trying to gauge what else does the economy need is probably premature. we are beginning to see signs of a recovery. we are beginning to see where the economy may have shortfalls. where it may be doing ok. that is going to take some time. thinking about what those other things are has been a useful discussion. whether it is time to activate those things is something we will be debating. rishaad: let's get to sameer goel. thank you for joining us. jackson hole is going to be closely watched. what you think is going to be of particular interest for emerging market p

the noise out of hsbc has been pretty dire. can actually look at which might represented -- might represent light at the end of the tunnel? alfred: i would say there are not so many. asia, that region that they are expanding into, hsbc made more than half of their revenue in the region. now they are expanding wealth management in china where they are planning to hire up to 3000 , at a time when they are cutting jobs elsewhere. reporter our financial , alfred. forgoingnion has been guidance as a plans for cost cuts amid the pandemic. we are serving customers to 100 countries. we want to reach out to them. we would kill them indicate -- communicate with them. but there is essential travel because of the country's where we believe the covid environment is more safe. we have our european office and i travel commercial to europe. but we are really looking around and we are taking care of our people. the health of our employees is the most important thing for us. that ceosthe things are wrestling with is pandemic fatigue. it's gettin

max kettner will stay with us with hsbc. with a category shift in the hurricane, the hurricane has been off my radar because of a sudden, it has gone -- all of a sudden, has gone from category two to category four. a category one hurricane is a minimum 74 miles per hour, then up to 96 miles per hour. 111 miles per is hour. we are in anticipation of 130 mile an hour minimum winds for hurricane laura. all of a sudden, this becomes more than serious for the territory between houston and new orleans. coming up, michael wilson, morgan stanley, their chief u.s. equity strategist. futures mixed, red and green on the screen. stay with us. this is bloomberg. ♪ ♪ >> the president has held china accountable for covering up the china buyers and allowing it to spread death and economic destruction in america and around the world. he will not rest until justice is done. he has ended the ridiculously unfair trade arrangement with china that punched a hole in our economy. those jobs are coming back home. tom: for our international audience,

hsbc, we contacted them. they have declined to comment. haidi: our chief north asia correspondent, stephen engle. let's get to karina mitchell for the first word headlines. in australia law will allow the government to force states and territories to cancel agreements with foreign governments in a move seen as ramping up tensions with china. the legislation will be introduced next week and will cover infrastructure, trade, tourism, and other fields. it comes after victoria agreed to join the belt and road initiative against canberra's wishes. the coronavirus pandemic has forced the world economic forum to delay its annual summit until mid-2021. we gathering is normally held each january at the ski resort. this year, it drew 3000 participants from 90 countries. next year's event, titled the great reset, was intended to discuss how to shape the post virus economy. a storm system rated as the worst in 160 years is approaching the coast of texas and louisiana with warnings of a dangerous surge and .5 million people being told to leave the area

we will talk about that in a moment with steven major of hsbc. oil churning. i would say one of the nuances that is out there is stronger euro against weaker yen. you see that with euro-yen going out to 125. i will let you talk about the turkish lira. francine: it is weaker. we have in mentioning it for the last couple of days. talking about the forces at play, if you look at the charts, it is pretty incredible, and we have a great story saying it is a perilous game of financial markets reaching crossroads with the lire tanking again. i'm also looking at gold. there are are a lot of questions about what gold is behaving like because it is tracking some of the stocks in the u.s. and it is maybe not a safety play like it was three or four weeks ago. and you'ree tension seeing european stocks down 0.2%. an eventfuln bloomberg surveillance across the span of this day, and we start strong with steven major of hsbc. one of the hardest things to do is to be right and to continue with your call. it is so easy to take the victory lap and to look away, and steven major

stephen king of hsbc. we ar appreciate it.his is bloomberg. ♪ alix: live from new york, i am alix steel, with guy johnson in london. the "european close." are bezos, jamie dimon, among 20 ceos will have pledged to hire 100,000 workers over the next decade. one of them talked to bloomberg about these kind of goals. >> no one has done something of this scale to date. while i agree with you that 100,000 jobs isn't going to be the answer to all the economic opportunities we have created, it is the first step at a really truly scale opportunity. d believe me, with the ceos on this council, we will be raising our mission as we begin to deliver on our commitment. alix: the jobs council includes the chairman of bloomberg l.p., the parent company of bloomberg news. guy, this has made a lot of headlines in the next 12 hours. the headline number is not that big, but it really comes down to education and job training to get people in the door and in a good position to move them up the chain. guy: and other time when clearly employment is

janet henry, hsbc chief economist is still with us. what we heard from jay powell, janet. allowing inflation to run higher, allowing an economy to run hotter, does not mean that inflation will run higher or the economy will be hotter. do we need to hear a bit more next month from the fed around how they actually stimulate as -- toward more growth and more inflation? janet: we need to keep listening to the fed. i mean, in terms of what we got yesterday, it really confirmed what we already knew as powell had flagged and all we would be doing is codifying what was already their reaction function, having undershot inflation for so long they were willing to overshoot moderately for a period over time. but i think what's quite clear is that there is a bit of divergence of opinion on the fomc as is usual on a central bank. and they've been quite clear not to give any state specific, calendar specific. they also know that there are huge constraints about stimulating the economy. when you're already at -- that a lot of support will need to come

one failed oil trader defaulted on a loan to hsbc to the tune of $600 million.gest to me that this extra 31,000 could come an awful lot sooner rather than later. overall, i think in terms of its uk operation and its us operation, they could come under pressure to compartmentalise further, particularly if china and us relations deteriorate. so hsbc has a decision to make — does it pivot to asia or does it pull away from its uk and us businesses? this is a story that could play out quite a bit over the course of the next 12 to 18 months. institutional racism may have contributed to the disproportionate impact of coronavirus among black and asian people in wales, including front linehealth workers. judge ray singh, who was asked to examine why ethnic minority communities are worse affected, told the bbc wales investigates programme coronavirus has "exposed embedded racism". a union is now calling for a public enquiry to determine whether deaths could‘ve been avoided. we need a public enquiry, warts and all. we need to be prepared to get uncomfortable. many people h

the hang seng off the most in a week with hsbc shares among the biggest rags. the appetite has not dampened chinese adr, expanding has priced its up sized u.s. ipo offering above the market range. $1.5 billion. debut is 15sic times the deal size. icbc shares falling ahead of bank earnings. mega lenders have been leaned on by beijing to prop up the economy. we have the latest update on chinese industrial profits jumping the most and two years in july -- most in two years and a july. -- two years in july. david: thank you so much to sophie kamaruddin. we are waiting for vice president mike pence who is slated to begin speaking in couple minutes. we want to bring back in our contributors, ricky davis and jeannie zeno. what does the vice president need tonight? rick: he is going to continue some of the messaging tonight. the great heroes of our nation are the men and women in service. he has a son in the service. thing forvery natural the vice president to do. the also has a job that he also has a job to do. that is going after joe biden. the typical role of the vi

hsbc makes more than half of its revenue and all of its profit in asia.r latest business flash. alix: thanks so much. here is one other thing. one of our favorite stories. one hedge fund manager is getting inspiration from an unlikely source, the robinhood crowd. adam sanders volatility hedge fund has climbed 30% this year in part because he is embedding against stocks popular on a retail trading app. robinhood. we also talked to the ceo there. they wind up trapping which stocks are moving on the robinhood platform as well. he is embracing the speculative fervor brought on by retail investors have far less experience and insight, and he can capitalize on it. he did that on tech. holdings, microsoft, nvidia, apple, those were all up in the first seven months. paypal rose the most. that doesn't it for me on bloomberg markets. power"up on "balance of the latest on stimulus negotiations. he will spake -- he will speak with senator rick scott. tune in tomorrow morning for my interview with the bp ceo. they guy would get some sleep, maybe not. ands 2:30 a.m. in

europe's biggest bank, hsbc, sees its half—yearly profits plunge by two—thirds as it battles the coronavirusnstitutional racism may have contributed to the disproportionate impact of covid—19 on ethnic minorities in wales, according to a top judge. nearly two years on from the collapse of genoa's morandi bridge, killing 43 people, the italian city prepares to inaugurate its replacement. splashdown! a new chapter in the space race — two american astronauts safely splash down — as the first commerciallly crewed mission to the international space station returns to earth. new 90—minute tests that can detect coronavirus and flu will be rolled out from next week. currently, most test results are returned within 2a hours, but some can take up to two days. almost half a million new "on the spot" tests will be made available to uk care homes and nhs laboratories from next week — with millions more due to be rolled out later in the year. it comes as authorities in greater manchester insist people should not be alarmed by a decision to declare a "major incident" last night in response to the rising ra

rate strategy at hsbc.ions, what you do around the pricing of the front end with regard to negative rates right now? >> expectations are certainly high that rates will go negative in the next few months or so. but i think, you know, obviously, yields are at a low. the bank keeps the dream alive of negative rates, then they will stay low. if there is any kind of disappointment in terms of timing or the likelihood, certainly, you would need to see the front end repricing. you have around 20 basis points of rate cuts priced in so expectations are certainly high. keeping the dream alive could take you into hotel california. check in and you cannot ever check out. isn't that a destructive risk? daniela: definitely. forecasting 10 year yields of zero for the year, and of the year, yet they could go much lower than that if we get negative rates. if they do cut, it would really open up a range below zero as to where they could trade in the ecb has kind of shown us each themay be promised to be last but in all likel

there's some underlying fundamental problems hsbc that's a big deal we'll continue to see bad news on our banks in europe if you look at jp morgan for example, there's 587-on-their capital level down from 702. i'm calling him up and saying hey, slow down your dividends. get your reserves up get your capital back up to 80%. it was at 7% last year i don't have the time and money to deal with a bank problem. you guys have to be part of the solution. >> so the economy is very much manifesting itself with the banks. the other place that we are seeing a lot of activity, we just had the big report about the number of retail bankruptcies because of the virus pandemic what does that mean then for an economy like the u.s. that is 70% driven by consumption and consumer spending. >> it's not good news. and the consumption is coming in different ways people are going to amazon online there's just this massive shift of mens warehouse. who is buying suits right now? the most you need a sport coat but that's about it. so the business world changed on demand for not only what they're buying but who th

ferro, you and i have moved the needle on research with hsbc.n major has published a sharp note on the fixation on the real yield. that you've got to look at the nominal and inflation expectations, and the residual of that, the outcome is yes, a real yield. but they are in the camp that far more attention should be paid to nominal dynamics and inflation dynamics. major and hsbc published that note today. that is the key issue, and also how we measure it. if you go to a grocery store, there is inflation. tom: you've got that right. [laughter] store, as john tucker of bloomberg radio mentioned to me, it is not that it is one or two prices. it is everything. it seems like every single item is up fractionally. dennis gartman made note of this the other day. it is not just lumbar. number gets the headlines, but it is off more leading to some -- but it is a lot more leading to trysting inflation dynamics. are headinge we into that jackson hole speech from jay powell at 9:10, i was looking at cabin prices. those are going up, too. maybe it is people tr

[laughter] tohink you are referring what steve major at hsbc had to say about an hour ago. i was listening, and i spoke to it we week ago. he is basically saying they could go a whole lot lower. there isn't a limit here, and they have been deeply negative in europe, so why can't they go further into negative territory in the united states? does that rose with you? -- does that resonate with you? because inflation expeditions can't continue to rise. , the fede get to 2.5% looks at it in conjunction with growth. we see 0.5% growth for the quarter, and inflation expectations are 2.5%, that is not necessarily good thing. that is not something the fed wants to see. they want to see a rise in inflation expeditions in conjunction with a rising growth. so yes, you can think of real yields perhaps as a residual, is the low before things start getting a little out of whack. are, somegs already people would argue. a lot of people expect them to continue to accelerate bond purchases as the u.s. sells a record amount of treasuries. how crucial is this? how much do you expect the fed to

coming up, hsbc global asset management sees asian economies recovering faster from the pandemic then global peers, however, portfolio managers say the threat of a double-dip is rising. plus, uber ends a decade of growth. our earnings analysis, ahead. this is bloomberg. ♪ karina: you are watching "daybreak asia." president trump is expected to act alone -- stimulus relief talks seem to be heading nowhere. he says he mae sai sign executive orders boosting unemployment benefits are due to expire as the white house and democrats wrangle over the extent of further aid. democrats say progress is being made but the two sides have major differences as friday's deadline moves. meanwhile, the reserve bank of india kept its benchmark rate unchanged at a record low for percent while announcing plans to ease stress in the banking sector. india's economy is heading for its first full-year contraction in more than four decades. by r.b.i. has lowered rates 115 basis points so far this year. india has the third highest number of coronavirus cases globally at nearly 2 million. australia is to add anot

speaking of us—china tensions, hsbc has also been caught up in this again so the us secretary of mikethat hsbc stopping executives of media giant from accessing their credit card. the coronavirus pandemic has meant that working from home has very much become the norm and the overall restrictions are being eased, children getting back to school and the government in the uk wants more people to get back to their places of work. will they or has the open plan office had its day? our business editor simonjack has. rush hour, birmingham new street, this is working on commuting in the time of coronavirus, the normalflood of normal office workers into the city centre nowjust a trickle. in the heart of the business district in birmingham, financial services giant pwc has a brand—new office, home to 2000 on paper, just 150 in today and managers say although many will continue to work from home, the office is still important. we have collea g u es is still important. we have colleagues who may be working on the end of their beds or in the kitchen, that is not sustainable or healthy for the long

airbus, royal mail and hsbc were among nearly 1,800 firms which announced job cuts in june.e's our business correspondent katy austin. in late may, liz received the news she had been dreading, work had dropped off at the mailing firm she had worked and she was being made redundant from her adminjob. i feel like iamon from her adminjob. i feel like i am on the scrapheap if i'm honest with you. it's a massive impact. initially, sheer panic, how i gotta get through this, how i gotta get through this, how are going to cope? even with support like the fellow scheme, the crisis has hit thousands of businesses hard. among the larger companies that announced redundancy plans in june were airbus centrica and the restaurant group, the owner of ben & jerry's. the restaurant group, the owner of ben &jerry‘s. there are fears of further losses when the fellow scheme ends in 0ctober. firms plenty to make 20 or more staff redundant have to notify the government. data obtained by the bbc through a freedom of information request shows a steep rise in the number of positions being considered f

airbus, royal mail and hsbc were among nearly 1,800 firms which announced job cuts injune.'s our business correspondent katy austin. among the businesses which announced redundancy plans in june were airbus, centrica and the restaurant group, the owner of frankie & benny's. there are fears of furtherjob losses when the furlough scheme ends in october, and firms planning to make 20 or more staff redundant have to notify the government. data obtained by the bbc through a freedom of information request shows a steep rise in the number of positions being considered for redundancy between march and june this year. the number of companies in the uk planning mass redundancies injune injune, the government was notified of plans to cut over 139,000 jobs in england, wales and scotland, although information from 79 firms wasn't available when the numbers were compiled. injune last year, the number was 211,000 planned job cuts and far fewer employers planned them. there are a number of industries that have been directly affected by the crisis where demand won't be returning, and they a

airbus, royal mail and hsbc were among nearly 1800 firms which announced job cuts injune.stin. in late may, liz received the news she had been dreading. work had dropped off at the mailing firm where she worked and she was being made redundant from her admin job. ifeel like i am on the scrapheap, if i'm honest with you. it has had a massive impact, initially, sheer panic, how am i going to get through this, how am i going to cope? even with support like the furlough scheme, the crisis has hit thousands of businesses hard. among the larger companies which announced redundancy plans in june were airbus, centrica and the restaurantr group, the owner of frankie & benny's. there are fears of furtherjob losses when the furlough scheme ends in october. firms planning to make 20 or more staff redundant have to notify the government. data obtained by the bbc through a freedom of information request shows a steep rise in the number of positions being considered for redundancy between march and june this year. injune, the government was notified of plans to cut over 113,900 jobs in e

no comments from the hsbc. the u.k.ctions on tiktok, but they are likely restrictions.r it does not pose as big of a security risk, but they may stop tiktok from removing data out of the country. a planned restructuring that could see the loss of another 600 jobs, nearly one quarter of the remaining work as some of the biggest customers abandoned operations at gatwick. that is your bloomberg business flash. matt? anna? laura, thank you very much, in london. the dollar is holding its jayday losing streak, with powell in jackson hole, the first time the conference will be held in virtual form. andhead of macro geopolitical research is with us. research on how resilient someare too currency, and of your concerns around resilience, europe, switzerland, and the eurozone? index, the swiss and the euro as those seen the greatest risk, facing pushback from further fx strength. i do not believe that this is just a dollar weakness issue. you look at the exchange rate. there is the nominal side of things and the nominal side of th

hsbc offsetting the decline in technology. the pound holding on to the decline cred.w some economic data showing that the u.k. economy contracted more than any other in europe in the second quarter. up next, exit on corporate finance outside europe and a major restrasburg of its corporate and investment bank. we'll hear from the dutch lender's chief financial officer. that is coming up shortly. this is bloomberg. ♪ hike! simon pagenaud takes the lead at the indy 500! coming to the green flag, racing at daytona. they're off... in the kentucky derby. rory mcllroy is a two time champion at east lake. he scores! stanley cup champions! touchdown! only mahomes. the big events are back and xfinity is your home for the return of live sports. francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in london. bloomberg first word news with leigh-ann gerrans. democratic presidential candidate joe biden has picked senator kamala harris as his running mate. she becomes the first black woman and first asian-american on a major party ticke

hsbc is looking to hire up to 3000 wealth planners and china.00 or so have already started work. the rest will be added over the next four years. they are in the process of cutting 35,000 banking jobs worldwide. lender hast valuable named a new ceo. he will begin a three-year term in october. spent 28 years in charge. a singapore company is the latest e-commerce to branch out. it is to roll out an auto invest. tinto admits it has failed to recognize the value of one of australia's most significant aboriginal sites. details. the it fornificant is investors to be watching this given that it determined whether they get local communities to agree to their new minds and expansion plans? >> that's exactly right. the one thing that is focused intention -- attention for of mayrs, at the end there was an incident where rio area detonated a mining where there was evidence it had been used by aboriginal australians 46,000 years ago. a very ancient site. asked not only questions about the governance inside the company, over handling the crucial community re

be some negative to come between now and the end of the year >> thank you chief european economist hsbc. >>> later today, speaking with bank of england governor andrew bailee at 1400 cet >>> looking at the markets the stoxx 600 now down a third of a percent on the day. it has been a choppy session last time i was at the wall which was 20, 25 minutes ago, we were about a quarter a percentage point higher. investors on the earnings front in the new projections it is not enough to take in the gains. coming in today's session, we are up on pace to break a two-week losing streak we'll see if we hang on to those gains. let's look at the regions and the split. we have red on the board for the italian and uk markets strongly underperforming down by 1.3% yesterday, rising about 1.1% a little catch up trade in addition to the drivers in the uk market and the fact that sterling was trading at the five-month high of a currency head wind. the dax bucking the trend with a strong reaction to the seimens numbers. the yields moving higher across the board. german and italian is around 1.01%. coming up,

the financial times leads on a slump in profits at hsbc, as europe's biggest bank grapples with the coronaviruss as well tensions between the us and china. according to the daily express, gps are to be told not to prescribe common painkillers to millions of people. the same story makes the front page of the times. it says doctors will be advised to prescribe exercise instead, to manage chronic pain. and the mirror carries a warning from scientists that the uk's test and trace system is not good enough to prevent a second — and worse — coronavirus wave in the winter. so let's begin. let's start, anna, if i may with you again. a lot of papers with very strong images ofjohnny hume who has died at the age of 83. just such a patent pivotal figure died at the age of 83. just such a patent pivotalfigure in died at the age of 83. just such a patent pivotal figure in that northern ireland peace process. he was the champion of nonviolent nationalism. he managed to both pursue his cause of a peaceful resolution and never abandon his political aims. pouring in from a very wide range and tony blair in parti

hsbc is in the process of cutting 35,000 banking jobs worldwide.haad: let's get to the markets as we had to the china lunch break. .sian stocks mixed at the nikkei down , and looking also at what's going on with the yen because it is coming back, the yen strength ways on equities. the broader market down by the same amount against the backdrop of what's going on with the dollar. ,he dollar index turning down and dollar weakness here as well. that's currently where we are. democrats aiming for a virus relief bill by the end of the week. way.ls are on the this is bloomberg. ♪ andaad: 10:29 in hong kong beijing. this is bloomberg markets. china fighting back over the bottles of tiktok -- the battles of tiktok. state media describing orders for the up to be shut down next month again, quote, theft. they indicate beijing may block any sales. the strongest supporter yet of bytedance. microsoft remains interested in a deal. tiktok's troubles are proving a relief for rival instagram. it faces ames range of concerns in the u.s. mark zuckerberg says it threa

tom: you and i have got these people lined up, steve major at hsbc, gary shilling has been courageously brilliant for decades, but jp morgan has really lead on this. he is on that trajectory. jonathan: coming up on the program come on the fiscal effort and in the sea -- coming up on the program, or on the fiscal effort in the -- in d.c. ritika: with the first word news, i'm riddick a good -- i'm ritika gupta. microsoft is trying to salvage a deal to buy the u.s. business of tiktok. floated the idea of outright ban on national security grounds. the white house has given the company's 45 days to hash out a deal. the u.k. is reviewing its options for fighting coronavirus flareups. according to "the sunday times," a london wide lockdown is being considered if cases continue to spike there. says instructions imposed in north everett -- in the north of england show that the government will act when and where necessary. 7-eleven will buy marathon speedway gas stations. they believe an expanded u.s. footprint will help growth. nasa has completed a tramp at return to u.s. -- a triumphant return

in the company to cross tussle is hsbc.king a fine line as it navigates the tensions and looks to limit the fallout of the virus outbreak. in an exclusive interview with bloomberg, the cfo discussed the banks restructuring plan amid a hugely -- outlook. we have incurred just under $7 billion of expected credit losses in the first half. impacted in is most the u.k., one point $5 billion of additional credit losses in our bank. commercial banking amongst the customers, just over $2 billion of expected credit losses. i think the big driver in the second quarter was a negative curve in terms of the economic outlook of the global economy in 2020. 2021 notcovery in enough to offset the sharper recession that everyone is expecting. expecting $500 million in cost savings in the second half. is that program going to get accelerated going forward, and are the targeted cuts of 35,000 still going to be sufficient or does that get changed? does that need to be increased? ewen: we are pleased with the progress. we went into the start of

valueey starting to lose there at hsbc?l estate has always the the reserve currency, money they didn't have to spend and it kept them from going back a difficult time and they could leverage it down. many of the retailers during the pandemic have leveraged the real estate even further so when they come out of the pandemic on the other end, their sales are not strong and they have nothing to fall back again -- to fall back on. doing is phase one is a large number of retailers and apparel and department stores going back up right away roomhase two is not much going forward so they will go out of business much sooner than they would have been. retail sales are actually quite good. short,t that they fell they raised the revised number for june by doubling the amount they allegedly missed in july so the numbers were fine. on a year-over-year basis which is how retailers think, they were up two point 7%. spending is relatively healthy but it's been three concentrated to certain segments. a big gain in building supplies, a big gai

this point about what hsbc onuses --on bon central banks are telling them you should be trying to conserveital. that goes for variable cost. they are restricting the bonus pool. it is the guys and gals in the bonus pool ultimately driving and keeping these banks even keel. one side of the business is suffering. the trading side is doing well. as i say, it is a rock and a hard place. alix: i wonder if constraints changes them if the prediction about what happens is right and if the u.k. banks have set aside more than enough loans for bad provisions, do they get looser at the end of the year? optimistic,s too that is where we are. yeah and to be honest, the boe is basically saying, we don't have a clue in which direction the economy is going. the level of risk is huge. that could be a very different picture quickly. alix: same thing in the u.s. loan applications for the special government program to help small businesses. we will break it down. ♪ ♪ alix: live from new york, i am alex steel and this is "lumbered ."rkets per -- bloomberg markets. the biggest cuts and leisure are followed by tr

manus: that suddenly chimes with what hsbc are saying in this lower forever environment on the credite. switch out the dm into em. on the equity side, we talk about the performance of the emerging markets. 45%,m equity side, up recovery well in train. is that next leg dependent more on dollar policy, dollar movement and perhaps fiscal policy within em? samy: absolutely. again, em is a very heterogenous part. when we think about em, we mainly think about em asia. the rest of em is geared towards commodity producing, which is not really what we are interested in. what we are interested in here in asia is their ability to be extremely strong on tech. basically that is what has driven china and asia markets upward. also basically what has driven the u.s. markets. it is not necessarily a regional trade, more a sector trade around tech. again, we were overweight this schematic, and we expressed it would overweight in the u.s. and asia. we continue to do so despite the moving in stress. manus: samy chaar of banque lombard odier. coming up on the show, germany extends its coronavirus wage sup

bondthe hsbc on this market a little bit later this morning at around 20 minutes time, but we catch uptt hoback from morgan stanley, the head of global macro strategy. tom, on the shape of the yield curve, with the extra supply means for the yield curve and the u.s. dollar. tom: and people trying to make money and trying to not lose money as well going into the q3 and q4 of this year. that will be most interesting. right now, this is a joy to speak to brooke sutherland of bloomberg opinion about her latest essay. this goes back to all my years of bloomberg worry did a chart also bloomberg a million years america.nufacturing in what you need to know is a number of jobs in manufacturing is calculated to be somewhere just before pearl harbor. on a population adjusted basis, we are down 60%. the death of on manufacturing of the flatlining of manufacturing over the last number of years. done thetherland has new math. how grim is it? guest: it is not looking great. the numbers we saw, manufacturers did add back 26,000 jobs. it was about 1/10 of what was forecast. peoplere 740,000 fewer worki

steven major at hsbc with a superb residual note -- the nominal yield was higher 0.701.y, it is lower today, and expectations continue to advance gradually. you take away the inflation expectations and you come back to a new lower real yield, much lower than yesterday in chairman powell's speech, -1.0548. not a record low but certainly getting there. it has certainly turned to a much lower negative yield. anna: waiting for powell on european equity markets entering into a down drop, just .03%. down.c is inland, one high-profile stock for you, not huge anymore, rolls-royce, engine maker. their share price is down. they are talking about selling assets and even the possibility of raising equity. they plan to get paid for every hour their engine flies. when they don't fly much, they don't get paid much. the european commission president, ursula von der leyen giving the statement on hogan's resignation as european trade chief. he resigned in the last 24 hours. there hearing from her that man in charge of the finance beat will be taking over. it is a very busy slate of activities for any t

hsbc saying if the fed had not stepped in, treasury yields would be even lower than where they are nowse growth would be that much slower, which brings me to the balance sheet. a lot of people, when the fed was originally ramping up its program, were expecting the balance street -- the balance sheet to get to $10 trillion. right now it is around $7 trillion. have you ratcheted back your expectations of how many assets the fed will want to buy before year end in order to support markets? has at this point, the fed told us the face they will continue -- the pace they will continue purchasing and that does keep a target growing in trillions by 2021 on the table. i do not think what is playing out now in the real economy is giving the fed any confidence they will need to buy less. as the economic data continues to unfold, we will probably see a risk for an expansion of some of the existing programs rather than a contraction, unless there is a decidedly positive turn i do not think anyone is expecting. lisa: given where borrowing is the fed doing anything to help the economy? ian: the fed i