were managed with the knowledge of senior hsbc executives. both main and war. wait deny allegations that she misled hsbc about why we control over sky. com. putting the bank at risk of violating us sanctions against the ran government attorneys are expected to argue that the hsbc documents should not be a part of the canadian court record. contending that the information is more suited for a trial rather than an expedition hearing. the proceedings are expected to wrap up in august for our t. i'm alex, mileage time now for a quick break, but when we come back, a federal judge is giving the s t c a 2nd chance and its anti trust case against facebook. we'll take a look at how the latest decision could impact the social media giant. next, and as we go to break your, the numbers out the clothes shoes . ah, is your media a reflection of reality? in a world transformed what will make you feel safe for the tycer lation whole community? are you going the right way, or are you being that somewhere? direct? what is truth? is faith in the world corrupted

were managed with the knowledge of senior hsbc executives. both main and wall weight deny allegations that she misled hsbc about why we control over sky com. putting the bank at risk of violating us sanctions against the ran government attorneys are expected to argue that the hsbc documents should not be a part of the canadian court record. contending that the information is more suited for a trial rather than an expedition hearing. the proceedings are expected to wrap up in august for our t. i'm alex mileage the time now for a quick break, but when we come back, a federal judge is giving the f t c a 2nd chance and its anti trust case against facebook. we'll take a look at how the latest decision could impact the social media giant next. and as we go to break your, the numbers out the clothes shoes . ah ah that you know provision on my back on that i would have been like i will not a druggie, but you'll have a lost his bus because i just got to the bottom. you just got to go. we're going to be, i'm on my cell. my don't put up as soon as i men

thousands of major website — from aianb to hsbc — taken offline in a global internet outage.t wrong? tight times for tech. the chip shortage could be set to continue as intel warns it still faces supply constraints. life after trump for twitter — the platform sees users and revenues surge, despite calmer times in us politics and the ban on its tweeter in chief. plus, crocs rock in lockdown dress—down. why the chunky foam shoes are scoring record sales. we start in the uk where businesses reeling from the pandemic are facing a new challenge — it's being called the �*pindemic�*. hundreds of thousands of workers are being told to self—isolate after being pinged by the nhs covid app which traces the contacts of people who test positive. it has led to staff shortages and in some cases empty supermarket shelves as supply chains are hit. that workers in the food industry would not have to isolate, but could take daily tests instead. our economics editor faisal islam has more. it was meant to be a weaker freedom from the pandemic restrictions but last week record number of things, ov

stephen king, hsbc economic advisor, joining us now.he is laying out very ambitious targets on the climate front. what is going to be the economic impact of all of this, in your view? stephen: going back to the review from a few years back, it was clear that the economic impact in the short to medium run would probably be lower rates of growth then otherwise would have been in place, particularly in parts of the developed world, but this is a price that was worth paying relative to the disasters that might otherwise befall us in the event of major changes in climate of the next few decades. there's some debate about whether this was the right kind of discount rate to apply to these kind of conversations. but there's no doubt in my mind that if you go down this path, you have to take incredible seriously. in the u.k., the ambition of having electric cars sold by 2030 and only electric cars is all very well, but currently, the great capacity to actually fuel those electric cars just doesn't exist. there's a whole bunch of issues there, no

it is having an impact in hong kong on the hsbc listing already. obviously this is taken as a positive by shareholders because they want that payout act. there were concerns going into the financial stability report given the noise out of the ecb. they say we want banks to be cautious, and we have the tools to curb excessive dividends. the boe removing the guard rails is clear in this report of the u.k. financial system is resilient, that they have ample liquidity, ample support to give to households and businesses as the economy recovers. they think banks can continue to help, therefore they can continue their dividends. mark: the boe thinks the economy needs support from financial systems. is that correct? dani: exactly. compared to the december report, they see an improved economy. there are less risks, but covid is not over, especially as we have new variants spreading and case cans beginning to rise, and fiscal support is about to leave as well. banks need to be prepared to help households and the economy. for that reason they are not increasi

let's get back into this -- senior strategist at hsbc.f the statistics that stood out to me is from the team at mammal that says inflation and cost pressure has jumped 8000%. how acute is the concern over margins this season? max: that is a good question. we have similar things, but the important take away is it is not spread across the board. when we look at the number of mentions of inflation across all the sectors in the u.s., it constrains a few sectors where it has skyrocketed whereas in other sectors it has not been going up that much. also mentions of discussions around wage pressure have not gone up that much. i would still argue that as great at this these statistics are, it is not yet widespread. when we look at things like wage pressures, it has not really been picking up so far. when we look at discussions around supply shortages, that has also been going up quite dramatically. when we look the actual sentiment, what companies are saying instead of looking at how awfully they are saying it, the sentiment around that is still f

hsbc global had a fixed income research on this bond market.lways fantastic to catch up with steve major, and it always gets such a fantastic reception because you get a ton of pushback every time steve comes out with a note, and then steve sits there, and ultimately, yields go his way. that is what has been happening the last couple of months. tom: we have seen this whether it is steve major or david rosenberg or gary schilling as well. as major was speaking to us, lawrence fink at blackrock really reemphasizing his view of it is not transitory inflation. you can set up this great debate of 2021, steven mager and david rosenberg on one side saying you are out of your minds, and some people getting some real visibility. mr. summers and mr. fink going the other way. jonathan: we got to agree on what we are talking about before we start arguing. if larry thinks as transitory is not transitory, i want to understand from his perspective what is not transitory. the federal reserve may say prices have changed, but we think the rate of change and the

jon: i want to jump in with a call from steve major and the team at hsbc. want to lead with this paragraph so i don't characterize their you too badly. "this means a near-term range trading strategy is more likely." then i will go to the quote on 1.74%. "a peak in recovery and high inflation." they maintain the year-end forecast, but that is with looking their long-term bullish for you. on a tactical basis, they have turned neutral this morning. tom: this folds into ubs and the coliseum -- the gaussian distribution. we explore the higher end part of the tail, and you go neutral, but what i find is he states flat out, he looks at central-bank hikes years off. that to me is profound. jon: shorts are lightly covered. i want you to weigh in on this from hsbc, the distinction between the short-term tactical view and a longer term view. how do you make that distinction on your calls right now? evan: we are always thinking about short-term and long-term, but we probably has the same view in the near-term range bound. we are looking for longer-term higher yields be

jonathan: hsbc looking for the fed to change their guidance until 2023.hat where we are right now? i've to make some news. the red sox, 2024. megan: i'm a little worried about the red sox too. the inflation outlook in europe is different from what it is in the u.s.. persistently low for a longer time in europe. even more persistently low. even though the ecb has change their monetary policy strategy to no longer include an asymmetric bias in their target, so they are willing to overshoot on inflation. they have no credibility in terms of being able to achieve inflation over 2%. i think it is appropriate for the ecb to be easing longer than everyone else. the ecb is finding itself in a lonely corner as every other major central bank started to talk about accommodation. the ecb stepped in for quite a while. i think they will end their bond buying program in march of next year as planned and then they will have to figure out how to revamp their old asset purchase program. greece is not eligible, and that would be a huge blow for greece. i think there will be

hsbc senior economist fabio balboni.oming up, the divergence between the ecb and the fed will be laid out by jeremy stretch, cibc head of g10 fx strategy, joining us to talk about the impatiens. this is bloomberg. ♪ ritika: let's check in on the bloomberg first word news. the european union's has it will postpone its push for a digital tax. instead, the bloc will focus on a global minimum tax worked out by the world's largest economies. several european countries had already implement it a digital services tax aimed at large tech companies like facebook and google. in haiti, a new twist in that investigation into who killed the country's president. police arrested a haitian man accused of flying in on a private jet and working with suspects in the assassination. the man was identified and was working with a security firm that recruited the suspect. a wildfire pushing california towards the brink of blackouts. the blaze is raging uncontrollably across southern oregon. it has not got three -- it has knocked out three power

that line from steve major of hsbc, we cannot afford higher rates.om: i cannot confirm enough the difference of opinions on price change right now and how it folds into the interest rate markets. we make fun of lisa and the pendulum of ominousness, what you know what? everyone has an opinion. jonathan: with very little confidence or conviction. tom: exactly. jonathan: that's where we are. it feels like this tipping point, and we are still trying to work it all out. i don't think we will get a clear answer until the end of the year. people keep bringing up september and q4, for good reason. tom: what i know, yesterday you and i and lisa got whiplash off of steve major of hsbc, a full pro, saying yields stable, yields lower, and a bunch of ceos and pseudo-economists saying yields higher. i will be talking to james bullard at 8:00 a.m. with michael mckee. jonathan: looking forward to that. tom: i'm sorry, i'm fired up. jonathan: we've had hot ppi. we have a federal reserve chairman talking the same game. lisa: i just want to cite mohamed el-erian, talki

what really gets my attention here is the first phrase in our bloomberg coverage, hsbc holdings plc.o we -- china banks, soe's mopping it up. collin: that is a concern. when you look at a country like china or anything emerging markets, you're going to get less disclosures, less protections, and you are taking risks by investing in really anything touching that. that is always a concern when we are talking about clients and investing in and he emerging-market, really. jonathan: good to catch up. around the world tour with the schwab center financial research director and fixed income strategist. yields just off the session highs about 1.25%, up about 0.1%. tom: i will be fascinated to see which way the equity market breaks. i am going to say it again, it is based off her earnings. to me, that is the elephant in the room. destructive elephant, bad elephant, i don't know which. but to me, earnings are everything. jonathan: almost unchanged now. we were positive 0.4 percent, and now pretty much up by not even 0.1%. taylor: my key question to some of our guests on "the close," where are

hsbc managements. that is it from daybreak asia. china market opens is next.t's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. (announcer) the core is key to losing weight, getting back in shape, and feeling good. introducing the aero trainer, designed to strengthen your core, flatten your stomach, and relieve stress and back pain. it conforms to your body and increases muscle activity. abs, back, obliques, hips, and glutes. get incredible results in just five to ten minutes a day. the aero trainer supports over 500 pounds, and inflates and deflates in seconds. check it out at aerotrainer.com. that's a-e-r-o trainer.com. >> 9:00 a.m. in beijing and shanghai. welcome to bloom

hsbc also alluding to that on bloomberg surveillance. i wonder, mark, your response to that.t already feels so early, but for some people this cycle is moving at light speed. maybe we have seen a peak in yields and in the yield curve as well. mark: i will take the other side of it. we don't think we have seen the peak quite yet. we think we will see another twin peak, potentially higher than what we saw in q1. the reason for that, we believe inflation is truly transitory. it will take time for the data to prove that out. as that happens, that will allow the fed to recommit, establish they want to overshoot on inflation and grow. we think the inflation data will be supportive of that. the fed will be able to generate more upside inflation risk in the market's mind, and also better expectations for growth. supporting that view is you have a savings rate that is elevated, in all likelihood, more fiscal stimulus that is supportive of growth and productivity. in that backdrop, we think you'll see rates move higher. the trick is it probably will not happen until the fed can convinc

morgan chase and hsbc, among others have might have been complicit in money laundering. so she took it to the official whistleblower channels. and guess what happened next? absolutely nothing, but some people do hope that biden might be able to break this trend. why do we work with congress to strengthen our whistleblower laws so that any federal employee who learns of an improper attempt to influence the department of justice investigation or prosecution knows how to report it and receives full protection against retaliation. but anyone including the president. but so far, these have only been words, but at the end of the day, it's not even really just up to biden. to fix this, the people leading these investigations and prosecuting these pesky truth tellers are all over the executive branch. and biden's administration is literally packed with people who are there at the forefront of the crackdown on whistleblowers during the obama days. and after all, why should any of these officials allow whistleblowers to go public? it's their jobs on the line. and what we can tell

take a bank like hsbc, headquartered in the uk in london, does most of its business in asia.ve this big massive bank, i'm not likely to get a massive profit out of this, many companies are working unregulated over there, they have a physical presence and there should be an exemption for that. i think the messy bit will be, when you take a company like amazon, its retail arm, the reason it is destroying big businesses on high streets and main streets is because its profit margins are almost zero in its retail business. how are you going to attack that? there is talk about trying to find the profitable bits of amazon. its web services, cloud computing, that makes an astonishing amount of money, it's easily the most profitable bit of amazon. trying to tax that separately — where does that end? every company has subsidiaries — are you going to say, i like this one, and this one, but i'm not going to count that one, i think that's going to get very messy indeed. talking to tax lawyers, which i do boringly enough on a quite regular basis, is this going to put the big four accountan

as i said, look at hsbc, you know, they pulled out of just about the western countries. they're going into china full time. they see which one is going. and all the, all the bank stores in the money people, the only interested money. they're not interested in human rights or anything else . so it's all b. s about that. oh, this is important to you. you're going to start seeing the chinese brands taking over the western brands. they're gonna push them away and it's already starting to happen. so the nike and the others are going to do everything they can to keep having their market share grow in china. but they're going to get a lot of chinese competition. and again, go back to when trump was in and all we're going to fight shine are going to fight shine. and it was, it was the news every day, virtually in the business news as to why the markets are going up and down. right. i think this is an excellent point because it is the basis of the american soft power. is the brand brand america. i remember living in france, you to be talking to a french person saying how, how ame

morgan chase and hsbc, among others have might have been complicit in money laundering. so she took it to the official whistleblower channels and guess what happened next? absolutely nothing. the story got to international attention only after she leaks to the press. and after that she did not get a pat on the back for being a good whistleblower. but instead, last month, she got sentenced to 6 months in prison. you know, just like always. but some people do hope that biden might be able to break the strand after all in his plan. so guarantee the government works for the people. he did promise to try to deescalate the prosecution of whistleblowers and seek more funding for whistleblower protection programs. why do we work with congress to strengthen our whistleblower laws so that any federal employee who learns of an improper attempt to influence the department of justice, investigation or prosecution knows how to report it and receives full protection against retaliation. but anyone including the president? but so far, these have only been words, but at the end of the da

morgan chase and hsbc, among others have might have been complicit in money laundering. so she took it to the official whistleblower channels. and guess what happened next? absolutely nothing, but some people do hope that biden might be able to break the strand. why do we work with congress to strengthen our whistleblower laws so that any federal employee who learns of an improper attempt to influence the department of justice investigation or prosecution knows how to report it and receives full protection against retaliation by anyone including the president. but so far, these have only been words, but at the end of the day, it's not even really just up to biden. to fix this, the people leading these investigations and persecuting these pesky truth tellers are all over the executive branch. and biden's administration is literally packed with people who are there at the forefront of the crackdown on whistleblowers during the obama days. and after all, why should any of these officials allow whistleblowers to go public? it's their jobs on the line. and what we can tell fr

hbc -- hsbc. for the ecb to say, no rate hike until the end of 2023.rmalize that, any kind of guidance would be quite a step. tom: there is a difference with this dollar strength right now. 93.00. bloomberg dollar index out even more. on the russell 2000, 46%. it is down about 8% from recent highs. if you have concerns about the global economy, this is the interview of the date. carl weinberg is with us. a tour de force note this afternoon. one of the fundamental things you do is partition the u.s. and china from everyone else. why do you do that? >> the u.s. and china are growing right now. we are looking at industrial production, gdp figures, consumer spending. forecasts are not that great. i am afraid the world economy is more a reverse j shaped recovery. tom: will the global slowdown you write about -- is that enough to affect powell's domestic policy? carl: central bankers, the thing that worries them the most is not inflation. they are worried that the world is going to fall back into recession or to a period of subpart growth. -- subpar growth.

thousands of major website — from aianb to hsbc — taken offline in a global internet outage.tweeter in chief. plus, crocs rock in lockdown dress—down.

as i said, look at hsbc, you know, they pulled out of just about the western countries. they're going into china whole time. they see which one is going. and all the, all the bank stores in the money, people, the only interested money. they're not interested in human rights or anything else . so it's all be asked about that. all this is important to you're going to start seeing the chinese brands taking over the western brands. they're going to push them away, and it's already starting to happen. so the nike and the others are going to do everything they can to keep having their market share grow in china. but they're going to get a lot of chinese competition. and again, go back to when trump was in and all we're going to fight shine are going to fight shine. and it was, it was the news every day, virtually in the business news as to why the markets are going up and down. right. i think this is an excellent point because it is the basis of the american soft power. is the brand brand america. i remember living in france, you to be talking to a french person saying how, ho

hsbc down 2.7%.e third biggest fall are in terms of its market -- faller in terms of its market cap. evergrande, more concerns about the company's very [ "me and you" by barry louis polisar ] ♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪ yvonne: the delta string is multiplying rapidly. fires infections in a the u.s. are poised to surge 65%. that is outpacing a 19% rise in cases. rishaad: southeast asia continues to real from a fresh wave. let's get more from our senior medical reporter. what are you making of this? it has been what our previous guest was saying, seven nations that had the physical means but have not really got down to the immunization program like should have done. >> the issue here really is that vaccination rates are not where we need them to be. we are seeing increasing ra

it is more the hsbc view. you buy the rumor, you sell the fact on the qe programs. dani: you know i am always obsessed with positioning and the 10 year positioning -- the entire treasury market positioning is really helpful to understand why we had this move. you can see the jp morgan positioning of their clients. it is still extremely net short. we are basically our most short since 2018. this is not a market that is positioned for growth concern. people getting squeezed out of their short positions here. a source i talked to yesterday said pensions on the long end of the long end of the curve were buying bonds up like hot cakes. this is a market that has had to really recalibrate. manus: indeed. you look at this move in the bond market. is the bond market flashing a real slowdown? dani: so far the bond market holding below the 1.4% level on the u.s. 10 year. a slight bit of buying's and the asian session, but nothing to undo what we saw yesterday. at the same time we are seeing people flee into growth. are people going to be going into growth stocks because they a

if your stephen major at hsbc you certainly believe we are getting closer to a peak, at least when it comes to treasury yields. he says the market is increasingly seeing that yields may have already peaked this year. reflation has largely been priced in and the bond market is looking ahead to what comes next. let's go quickly back to our market board this morning. this shows you some of the buying in the 10 year yield continuing but china bond markets are also seeing some intense buying, nearly four basis points drop in the 10 year yield with china signaling they may be cutting the rrr's more support coming to the economy. finally were looking at a hong kong market that is getting crushed in -- looking close to a bear market, down more than 2% with china continuing to crackdown on ipos and data when it comes to tech companies. u.s. equity futures softer by .2%. let's break through the noise and get more on the central bank story and what it means for the market. mark joins us this morning. a tall order, but let's start with china and more of the support they're giving to the economy.

offshore rate is trading at a three month low rate ocbc sees it moving towards the 6.54 level and hsbc pencil been 6.60 -- penciled in 6.60. the renminbi is still relatively strong after hitting a new high of 99 last week and over at maybank, he says china's tech woes have yet to this launch resilience, taking note of how the currency partially functioned as a proxy for safe havens when global infections are the start of a new wave. shery: it was pretty resilient earlier this year. almost no change against the u.s. dollar but of course we will be watching those moves closely as up next, we are talking about mattel storing past earnings expectations amid a toy buying room. the ceo joins us in a few moments. this is bloomberg. ♪ haidi: shares in mattel climbed as high as eight .3% in extended trading after the company reported second-quarter results that soared past expectations amid an ongoing toy buying boom. revenue rose 40% to just over $1 billion in the company raised its guidance as well area joining us from california is the mattel chairman and ceo. great to have you with us. you

if you see major at hsbc, he has been calling it pretty well that we will continue to see bond yieldsrget is 1% on the 10 year yield but 10 year yields at the moment at 1.2%. meanwhile, we are looking at a 30 year yield at 182.19 -- 1.8292. in the asian session, we see that buying turn into selling so the movement is not unusual. your real yield, -1.0714. we are not that far from it at the moment. the vix jumping yesterday to above 20% so just showing that this panic in the market is really present whether you are looking at the bond market, credit spreads widening, or that equity selloff as well. that is it for "bloomberg daybreak: europe." we are going to have the european open up next with an edwards. she will take you the market action as we see some stabilization today in the equity space. this is bloomberg. ♪ (announcer) the core is key to losing weight, getting back in shape, and feeling good. introducing the aero trainer, designed to strengthen your core, flatten your stomach, and relieve stress and back pain. it conforms to your body and increases muscle activity. abs, back,

. >>> the bank of england scrapping pandemic-era curbs on dividending on hsbc and barclays the bank of england says the sector was well capitalized enough to deal with witthe fall. risks to the recovery remain. the government support measures unwind over the coming years watch the big banks. all higher in the uk in early trading. >>> now yoto the ongoing story china as they crackdown on the tech sector and the ride hailing giant didi investigations against the company grow and now its rivals are swooping in to lure drivers to gain market share in the ride-hailing free-for-all. eunice yoon is joining us now from beijing eunice, what are the rivals now doing? >> reporter: brian, i want to show you a list of the didi competition that are starting to become more and more popular by the day. these are some of the names of the challengers backed by established players in the car industry as well as the tech industry as i said, they are becoming more and more popular as i found out. with didi under pressure, this man's orders are up ten times. he drives for the app backed by the carmaker that