hsbc resumed dividends.n interim payout of 7/10 a share after quarter profits doubled from earlier. a conversation with the cfo. beijing regulators seek talks with the ftc. that's after the u.s. tightened the rules for chinese ipo's. stocks open on the higher side. plus, there are reports the u.k. could offer up to 32 million booster shots starting next month. anthony thach a says vaccines are working -- fauci says vaccines are working. 7:00 a.m. in paris. net income jumps 180%. dani burger, welcome back. glad to see you back with me. 3.4 billion was the number. dani, this is a pretty stunning set of numbers. we'll get more detail on the revenues. revenues are beat. do you have a pint of heineken in your hand? you are more of a half a glass kind of lady? dani: i am probably more of a half a glass kind of lady, but heineken numbers coming in, very different business than axa, but everybody is drinking, organic be a volume coming in at more than 9.5% growth. the estimate was 7.9%. full-year vexed -- expectatio

it's par for the course for hsbc.h what is going on now and its focus in that part of the world, it makes it more difficult. we have to remember this is a bank with a huge amount of exposure in the u.k., over $300 billion worth of loans. we forget about what's happening because of the pandemic but we also have brexit and this could be a fairly big negative for hsbc during this year and next year. shery: when it comes to business across asia and how representative hsbc wants to be of china and its business there, what do you make of the latest crackdowns with semi-different sectors and how that's going to have an impact if at all for the company? daniel: it's very difficult to forecast these geopolitical risks. we know hsbc has sent very senior level executives to hong kong and know it is entrenched in the region. it has to figure out a way to make all parties happy. that is simply not an easy task. and it is unique in the world because of its geographical distribution and its head office. there's no other bank like it

hsbc reduces dividends. profit doubles from a year earlier. more from our conversation with the cfo, coming up. let's talk. beijing wants discussions with the sec after the u.s. tightens requirements for chinese cpo's. the chamber will be ready to vote in a matter of days. a very good morning. welcome to the european market open. it is just gone 7:00 a.m. what are the market saying to you? mark: it is a positive day for markets in asia. it is generally a constructive environment. commodities are easing off the record highs. the china-hong kong situation has stabilized. it is good news out there. it is not exuberant. the pmi has been softer and i do not think they will run away with valuations, but it is harder to see what devalues the risk on. it might be the situation on the virus in china where there is less certainty on how severe the lockdown could be if there is an outbreak of the delta variant. anna: the delta variant now there in china. also focusing on other regulatory responses elsewhere in the world, or push backs against it. we will

today, hsbc coming out with its numbers. what to expect. >> we are expecting to see firstly that credit costs don't come down quite as much as maybe people are hoping for, quite as much as we saw with some of the biggest banks in the u.s.. that is partly because hsbc has not taken that much in the way of provisions in terms of loan loss reserve build during last year. another concern is that net interest income is a fair degree lower, and this could be an unintended consequence of the bank having de-risked its loan book during last year. david: your implied move when you look at options, hsbc, 2%, that comes out with earnings in a give or take 15 minutes from now. this reversal we are seeing also , keep your eye on that as we make our way to the next hour. ♪ ♪ and there you have it - wireless on the fastest, most reliable network. wow! big deal! we get unlimited for just $30 bucks. i get that too and mine has 5g included. impressive. impressive is saving four hundred bucks a year. four bucks? that's tough to beat. relax peop

hsbc stepping up plans for shareholder payouts.leased second-quarter earnings earlier today and reported higher cost. nevertheless, the cfo very much upbeat about the company's outlook. he spoke to manus cranny. >> we are very confident we can hit the dividend policy this year. what we have seen so far this year's capital continues to accrete into a much better place and where we thought we would be -- largely driven by credit outperforming relative to where we thought. relative to three to six months ago our capital position is a lot stronger. we are adjusting our tonality on capital distribution. we are signaling the fact that relative to the start of the year where we would've said we will continue to be cautious, i think now we definitely feel more confident and we will keep a buybacks under review in the coming quarters, together with dividends. >> a trillion dollars wiped off chinese equities globally from hong kong to the united states. are you unscathed? do you have any margin calls? any collateral as a result of the wipeou

we saw hsbc book profits yesterday from excess provisions and resume paying a dividend.u.k. regulators removed restrictions on payouts. the question is whether standard chartered will do the same, whether they will produce provisions for bad loans despite the ongoing uncertainty about the economic outlook in asia, its main market. standard chartered gets most of its revenue from the region, where the delta variant is still wreaking havoc. hsbc yesterday said it was very confident about the outlook for loans, particularly mortgages in the u.k. and hong kong come and corporate loans. another focus is wealth management for standard chartered. like a lot of rivals, it has been making a big push into asia , and the question is whether they will see growth like hsbc reported yesterday. haidi: what other bright spots? russell: hsbc yesterday, we are quite bullish despite the increasing uncertainty in the region. there are still many clouds particular with the coronavirus and the low vaccination rates in the region, but hsbc, if they are guide, standard chartered may follow them

there is a huge spark at hsbc. forward. . ~ , . thank forward. thank you very much. thank ou. twitter boss jack dorsey's digital payments platform square, is buying australia's afterpay limited for $29 billion dollars. the deal, announced sunday, will be done entirely through a share exchange, and values the fintech at a 30% premium. it's also the biggest deal ever done in australian corporate history. our correspondent simon atkinson has the details. afterpay in australia has become a massive company, it has only been going for seven years. effectively it is a buy now pay later firm. if you buy something online you will almost always with any major company be offered an opportunity to use afterpay. it is the first company in this region really to get into that market where people can buy things in instalments. that is what square really sees in it. paypal has suggested it is keen on setting up something similar itself. there are rumours that apple is looking at a similar business model. what square wants to do is

hsbc. profits from core backing provisions and resuming the dividend payout yesterday.suming buybacks in the future now that u.k. regulators have removed restrictions on payout. the question is whether standard chartered will do the same, will it reduce their loan reserve despite the uncertainty about the economic outlook in asia? we know standard chartered gets most of its revenue from the region and the spread of the delta variant is still wreaking havoc here. the other key focus is loan growth. very confident about the outset -- the outlook for loans. we will have to see where the standard chartered follows and that as well. yvonne: what about in terms of bright spots?: what are we watching out for? russell: another thing to watch out is there progress on cost controls. we know bill walters has been cutting costs while also investing in tech, reducing office space. he's been very much a fan of the hybrid work model like a lot of his u.k. peers. we'll be looking on that front. another bright spot perhaps it will be in wealth management. standard chartered has been mak

banking giant hsbc sees profits double during the first half of the year, thanks to an economic rebound in hong kong and britain, its two biggest markets. and a treat for aeronauts everywhere: come with us to the bristol balloon fiesta. hello. from around 1.5 hours ago, people who have been fully vaccinated in the eu or us will not need to isolate when coming to england, scotland and wales if they're coming from an amber list country. travellers will still need to take either a lateral flow or pcr test pre—departure and a pcr test on the second day after they arrive. under—18s will be exempt from isolation and some will not have to test, depending on their age. so how much will this new policy really help the uk tourism sector? joining me now isjoss croft, ceo of ukinbound, a trade association representing the uk's inbound tourism sector. good to have you with us. what sort of difference do you think this will make, this change today? this will make, this change toda ? , , , , . today? this is the first piece of positive — today? this is the first piece of positive news _ today? this is

hsbc reporting second-quarter earnings later monday.omberg. ♪ ♪ haidi: hsbc will report second-quarter earnings later on monday. asked her pressure on costs -- extra pressure on costs. what are you watching for? >> analysts expect lower revenue compared to this time last year because of a focus on cost. they did mr. cost targets -- miss their cost targets last quarter. also loan growth. in trading, fixed income currencies and commodities trading we down about 31%. one good news for shareholders that might come out today is prospects of a buyback or an in crease in that dividend. banks can now do payouts and we expect to see some news about that today. haidi: what about the outlook for the second half? nabila: china regulatory issues are front of mind. this is a bank that has cut thousands of jobs to try and refocus. so far this year china is the top underwriter of dollar bonds sold by hong kong, macau, and chinese companies. that is really weighing on the outlook and that is what investors will be hoping to hear a bit more on today. hai

hsbc pushing back. let me finish, tom, that is what happens in conversations.ing for that supply to the offset, because what we will see is a declining treasury supply. tom: right. jonathan: at with a report that opec-plus will come out and be asked by the administration to do something about oil production. tom, crude this morning, $57.43. tom: you mention something, jon, really important, and that this is not about inflation, it is about taper timing, and i am seeing some adjustments now for people pulling into december. i don't see september, but can we imagine the tapered dialogue come december? jonathan: september 3. we have got another payrolls report to get through before we have got a clear runway, a clear path. tom: yeah, yeah. right now, one of the inventors of our front line -- advantages of our front-line houses here at bloomberg, of course j.p. morgan, we talked to bruce kasman, he is ok, but he gets to wake up every day and talk to jesse edgerton and peter mccoy with parts from m.i.t. in berkeley. that is pretty cool. they have a tour de force wit

morgan and hsbc warning that the electronic cycle may have peaked in asia. even with chips very much in high demand. it certainly has taken a hit as well, adding to the uncertain outlook. the recovery in malaysia, for example. we have seen hospitalization rates there. haidi: let's turn to vonnie quinn with the first word headlines. vonnie: the top u.s. infectious disease expert says state and local governments should require teachers to get vaccinations. dr. anthony fauci told them that he knows his decision will anger some people. hospitals run out of beds for covid patients, while hunting for doctors and nurses. data show covid-19 accounted for 4% of all deaths in the united kingdom and the final week of july. that is the highest rate in three months. the number has come after lockdown restrictions in england were scrapped in july. serious illness and hospitalizations remain low due to a high uptake in vaccinations. 70% of u.k. adults now fully inoculated. the hong kong government has extended measures allowing them to contain the pandemic. group gathering

hsbc said if you're going to ask any question, why did you break? keeping rates on hold.king about the surprised. you are seeing markets, after that surprise, they are paring back some losses we saw, the kiwi as well. they signaled that the tightening could still happen. david: not right now. seven cases of course. let's talk about the implications from here, with the economy and monetary policy. james mcintyre. you got it right. i told you so. this is your moment. the other side of the equation, is what do they do about an overheating economy? guest: i think the key question is where is the overheating economy? how long is delta taking hold in new zealand, and what economy have they got on the other side. i think it is right to blink. that's one they have avoided. where we go from here, and how the new zealand economy is impacted, is going to determine where it goes. that's, as other pointed out, over the next couple of days, case rates. we have gone from one. that's now seven. does it peak? will we see delta? resulting in a nationwide outbreak that will only be containe

you comes after hsbc raised salaries for analyst in may.r reported a wider than expected loss in the second quarter after spending heavily to ease driver shortages. they saw an adjusted loss, but say they will see narrow losses in the third quarter. and an adjusted profit in the fourth. hoover's investors -- uber -- [indiscernible] rishaad: if you are a bloomberg subscriber, catch up with all our interviews by using the interactive function on tv . join the conversation. the interview we had just a short while ago. if you want to watch it again, tv is your destination. this is bloomberg. ♪ rishaad: back with bloomberg markets. having a look at what is coming up in the next hour of the program. an exclusive interview with one of india's oldest companies. it is a large, fast-moving manufacturer. asking about the prospects of recovery. india had a terrible time of it during the second virus wave. talk to him about business expansion plans. inorganic, organic. being at the helm of that company. key economic data, as well. second-quarte

more people getting a little more in line with hsbc. in closer to that 1%. -- getting closer to the one presented david: they stuck with that for the end of this year. all the way to 2022, 2023. we did a survey august 6 to august 15. you can see the draft come up. this is the net change in basis points. 1.6% is the median consensus at this point. absolute terms. 10 year yield by the end of this year. this is the chance we are seeing. on the short end, that is where you are getting most of those revisions. the bulk of the revisions. as you look further out, that makes it murky and the number of forecasters starting falling out. it is harder to project that far into the future. here is the point. we are now revising. . the market is revising their expectations of what peak means for the current cycle. it is 1.6. at the end of next year, the current forecast is at 2% by the end of next year. yvonne: take a look at chinese tech. seeing some pressure on some of these tech names. the likes of tencent reports earnings tomorrow. on the back of

hsbc says they have attracted $9.3 billion. client assets rising 25% in the first half.nwhile, they have reached a record of 810 billion dollars, accounting for nearly half of the global total. hsbc wants to expand in asia, particularly china, hiring new wealth planners in the region over the next 3-5 years. amc entertainment posted our losses -- more never losses than expected. even as the movie industry struggles to draw fans back into seven a -- cinema. revenue soared to almost $445 million. the world's largest theater chain says customers are returning after the entire industry shutdown down last year. coming up next, we will speak with the senior strategist about major japanese names reporting today. that includes softbank and how the china exposure will come into play. this is bloomberg. ♪ >> we are counting down to the start of trading. tokyo and seoul. korean stories. game developer craft raising nearly $4 billion in its ipo. this company is backed by tencent. we hear that the emaar online mall is hiring rangers. as indy.com will complete its listing as early as

i just had a conversation with steven major from hsbc.e sticks resolutely to his view that the taper is in the price. we got a reality check on friday. the consumer sentiment crashing the lowest since 2011. the fed's taper is largely in the price. growth has been tapered back in terms of bloomberg survey to 2.6% versus 6.6% in the united states. that is still the strongest growth since the 1980's. what is normalization? major makes a point. you should now focus on the left-hand tail risk, which is lower yield, lower terminal rate. i talked about where rates could go by 2025. at the moment, the market has 1.5% by 2025, 1% lower than where longer rates were indicated. disappointing data from china brings equities lower. bond yields drop lower. there's a fear and the bond market not represented in the equity market. foods drop .2%. it has been 193, maybe 194 days since a 5% drawdown in equities. analysts are bullish, and on main street, they are worried about buying cars. oil down. we will normalize in prices. there's a concern about covid.

in particular hsbc.ng way get the news about collardi and an article that talks about the chairman trickling down on hong kong and saying opportunities are too big to ignore even as geopolitical tensions wind up escalating, saying the interconnectivity between the u.s. and china is powerful and he does not think they will get to a point where they have to choose sides. talk about the competition. marion: competition is fierce and has been fierce in asia for quite a while for wealth management. pictet has been wanting to be in the top 10 private banks for wealth in asia. not having collardi we will see if they can maintain that ambition. was it across other private banks, hsbc as well setting up private equity divisions in asia. it is a tough world. guy: we will see how they get on without him. thank you very much indeed. the departure from pictet of boris callardi. let's talk about the markets. we are settling down. we see what is going on at the cac 40 end of the spectrum. it has been pretty painful. do

jonathan: that was the hsbc cfo, leaving behind a difficult for hsbc and others dealing with what isappening in china. live on tv and radio this morning, alongside tom keene and lisa abramowicz, i'm jonathan ferro. here's your equity market, up 19 on the s&p. we advanced by 0.4%. in the bond market, 1.72% -- 1.2 to 70% -- 1.2272%. tom: ism, doesn't matter this morning? jonathan: yes it does. what does output look like? what do prices paid look like? all of that matters. tom: we will have coverage for you on radio and television. my book on the summer was of president xi, and she called it the third resolution. somewhat expert on the gray new larry is leland miller -- the gray new larry t is leland miller ash the granularity -- the granularity is leland miller. how does washington react to what they see in beijing? lelandl: you've obviously got -- leland: you've obviously got these nasty crackdowns on the tech and education sector. at the same time, some of the numbers we are look at are not as bad. you had a recent rr cut, and that made people think they must be doing poorly. service

goldman sachs world bank of canada, of commons, hsbc, banking. those goes credits with u. b. s. subs medalist we operated in close to 40 different countries around the world, brazil for room, anima, colombia, japan, taiwan, hong kong, obviously throughout europe. the were making millions per month. offshore accounts not paying taxes. i was living, the dream weren't worried about anything, but in my particular instance, i had something to worry. all sorts of investors all over the world were very eager to put their money with them because he was generating very good returns. and that's what investors want. he turned out to be doing something else, which was he was misappropriating the investors money and the investors thought they were achieving these excellent returns. in reality, they were not philip baker and his partners were essentially making it up. they were like, ah, ah, the 2nd thing and in some ways, more damaging issue is that as they thought to recruit additional investors, new investors, which were essential because they needed to paper over the lots of money that

emerging currencies got a lift wednesday heading into the jackson hole symposium with strategists from hsbc saying they are better able to handle a taper tantrum. high reserves and low external debt seen as buffers are the thai baht -- according to could agricole, sheriff. -- shery. vonnie: president biden urged businesses executives to improve cybersecurity across critical infrastructure and the economy. meeting with ceo's from companies including apple, alphabet, and j.p. morgan, the president said the cybersecurity workforce is not going quickly enough. recent cyberattacks hit infrastructure including colonial pipeline and jbs as well as microsoft and solarwinds. antony blinken says 1500 americans are still in afghanistan. he says the u.s. is relentlessly trying to reach them but does not believe all of them wish to leave. evacuations must end within the next few days to allow enough time for remaining troops to pull out by a president biden's deadline of august 31. lincoln emphasizes -- >> it is hard to overstate the complexity and danger of this effort. we are operating in a hostile en

stephen king, hsbc senior economic advisor, joining us next.his is bloomberg. ♪ ♪ ♪ >> we can back to a hybrid environment after the fourth of july. now we are going back to working from merely from home. >> the hybrid way of working is here to stay. >> we are prepared to have the flexibility to allow people to work from home two to three days a week. >> we are not yet in a position where we are going to be pushing and encouraging more in office work. we will just have to take it day by day, week by week. >> two and a half days is a simple thing to say, but you have to make sure that these -- >> the new apollo, i think flexibility is the name of the game when it comes to us in our business. i think if we preach the mantra of flexibility. alix: those are various executives on bloomberg tv speaking about the return to office plans. a few moment's ago, citigroup says all employees returning to the office will need to be vaccinated against covid-19. joining us with his thoughts on what that does to the economic recovery is stephen king, hsbc senior

financial which is buying investors bankcorp of course, coming shortly after asastst uisition of hsbc'scompany because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit conventrydirect.com to find out if you policy qualifies. or call the number on your screen. coventry direct, redefining insurance. (upbeat music) - [announcer] introducing the grubhub guarantee, our promise to deliver your order on time within the delivery window and for the lowest price compared to other apps, or you'll get back at le

banking giant hsbc sees profits double during the first half of the year, thanks to an economic rebound

we have insight on those subjects, guests coming up including the head of market strategies, and hsbc's india economist giving her take on issues affecting the reserve bank of india. the olympic straw to a close sunday. the city of tokyo reporting a record 5000 covid cases thursday and it remains in a state of emergency. our reporter is there. give us a sense of the games. the success, given the circumstances -- is it a success given the circumstances? >> the closing ceremonies, no days away. it has been two weeks full of activity and excitement on the ground, as well as the covid cases you mentioned. the infection rate in the olympic village was lower than in tokyo but the capital has a huge focus on the record number of daily cases. yesterday we topped 5000 for the first time ever. that is 10 times the prior week. the focus is on what will happen in the upcoming elections. will this make the candidate look good? things don't look very good. david: live out of tokyo. we were waiting for it last year and time flies. a brief snapshot of your markets, equities, futures, dollars, sovereign

that came after the -- hsbc has released a loan provisions a book to during the early stages of the pandemicarterly earnings easily beat estimates. it will pay an interim dividend. last month the bank of england removed shares on cash payouts. one of the last big banks to raise pay for junior bankers -- goldman's own analyst revealed their own crushing workloads. powered by more than one -- i'm ritika gupta. this is bloomberg. ♪ ♪ >> we are looking, not i believe to lockdown, but to some pain and suffering in the future because we are seeing cases go up, which is the reason we keep saying over and over again, a solution to this is get vaccinated, and this would not be happening. jonathan: dr. anthony fauci there speaking to abc over the weekend. i'm jonathan ferro. this is the monday morning price action on the s&p. six months of gains. we advance half of 1%, yields unchanged on the 10 year. surprising to see the aussie on top. a stronger aussie in the mix, even on the back out of weaker than expected data out of china. the euro dollar advancing some one .5%. i want to work out how the dolla

hsbc has joined its british peers in releasing loan provisions it built in the early part of the pandemic largest lender also said it would pay an interim dividend of seven cents a share. last month, the bank of england removed cash curbs on payouts. heineken says it will sell less beer in 2021 than in the years before the pandemic. that is due to the impact of the coronavirus and key african and asian markets. they also expect rising commodity prices to weigh on earnings in the second half and have a material effect next year. heineken still posted happier results -- half-year results that beat the street estimates. that is your bloomberg business flash. coming up, demand for alternative assets continues to boom. we will speak to the coi resale platform stockx about the area seeing demand from game consoles to trading cards. this is bloomberg. ♪ matt: this is bloomberg markets. i'm matt miller. demand for alternative investments from trading cards to sneakers have surged during the pandemic. stockx is a platform connecting buyers and sellers of products like these, and the ceo is scott c

. >>> and hsbc expanded the reach into asia after announcing it will buy assets in singapore in a deali575 billion. it will have an emphasis on the asian business. >>> and german economic stabilisation fund to sell l lufthansa. you are beginning to see the unwinding of the airlines after the pandemic last year that is beginning to happen in germany. >>> a key terminal at the port in china remains port after the positive covid case further disrupting the global supply chain and putting the shipping industry under pressure. lack of shipping containers and blockage has seen the rates jump this year ahead of the christmas holiday season the ceo is joining us here this morning. alan, talk us through the significance of the port how much of a role does it play in global shipping and what could the ramifications be if the port remains shut? >> certainly ningbo port is one of the most important ports in the world if you look at the amount of cargo in the world in terms of the vessels that call it? it is third behind shanghai. certainly, it is one of the absolutely central hubs in the container

also while we're talking about banks, let's take you quickly to hsbc which reported pre-tax profit soaring in the first half as they recovered from the pandemic you can see the stock is up .20%. for the earnings season as a whole, brian, second quarter earnings are up 20% year over year in europe so far. >> that's not a bad number joumanna bercetche, thank you very much. >>> now to the morning's top monday morning story it's a big deal. it is the biggest deal in one country's history. another big deal contessa brewer is with us good morning >> good morning, brian thank you for that this is the biggest buyout of the australian firm in history square is buying fintech company afterpay in an all stock deal. that translates to 30% premium to afterplay's last closing price and news sent shares soaring on australian trading. this marks a deal expansion into the booming installment and payment market dominated by affirm and clarna. aft afterpay lets customers pay in installments customers will eventually manage installment payments through the cash app the deal is expected to close in the first q

prosecutors claim she lied to hsbc about huawei's operations in iran.lobal news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: here in new york, andrew cuomo has resigned as governor and apologized to the 11 women the attorney general said cuomo sexually harassed. he called the report falls but said his decision to leave was in the best interest of the people of new york. kathy hochul will take over the office in 14 days, becoming the first female governor of new york. quite the downfall for somebody who was at one point thought to be a potential presidential candidate. >> definitely. cuomo resigning today was unexpected. nearly everyone i spoke with in albany said they did not believe he would resign. especially after the lawyer called earlier in the week by people such as president biden and nancy pelosi, all members of the new york democratic party. so then for cuomo to wait until now to resign was surprising but once the repo

we had hsbc on earlier, and i quite like with the equity strategist there had to say.in the last part of the version. some of these -- last part of a version. dani: to that point, what contagions have that had? mohamed el-erian pointing out that a lot of the passive funds are linked to china. you see outflows there. manus: absolutely. s&p futures lower. lungs winning streak in a number of years. the s&p will not like that. that is euros was. -- euro swiss. also a contentious point in terms of the swiss getting off. jgb is back at zero for the first time since september -- since december. that is going to be a pain for the bank of japan. brent seems to be just steady at the moment. half of provinces in china now with some kind of restriction in movement. those are the markets. there is relief in asia in the tech sector. will it carry through? let's talk about one of the world's hottest housing markets. it may have reached a peak. the annual u.k. house price growth slowed in july, but the shift in behavior caused by the pandemic means that demand for more spacious homes

steve major at hsbc looking for that move back towards 1%, pulling us down on the 10 year yield.es of morgan stanley and others looking for a move back to 1.60% and beyond. that range extends from the sell side strategists all the way to the fomc and the federal reserve, and the board of governors itself have different views. you've got the view from governor brainard, patience. they are very different views. here's the view of the market right now. financial conditions loose. this from mohamed el-erian in the last 24 hours. the goldman sachs financial conditions index is one the fed has got to be looking at. financial conditions, when this chart goes lower, that means conditions are getting looser, and that his record looseness for financial conditions in this economy in this country. tom: overnight repose went back under one trillion -- overnight repos went back under $1 trillion last night. there's a crowd talking about $2 trillion overnight repos. i don't know if you get to that number, but the financial conditions are something we have never perceived before. jonathan: how m

bhp would not be alone in making vaccines mandatory if they did go that path, but the big cannery hsbcthis and qantas has done this as well. and bhp had some sense -- some success with the workplace in chile, that got the rate above 90%. haidi: causing disruptions when there is a break in these mining communities. paul allen in sydney. and we will continue to track the biggest vaccination campaign in history. we have now seen more than 5 billion doses given across 183 country so far. still a long way to go. check out the vaccine tracker at bloomberg.com. the global search for the origins of the covid outbreak began. that led to australia researching. experts now say beijing's retaliation is a clear example of what can happen, even for the wealthiest nations, if -- let's get over to our security reporter. course, still is not the only country that has been the victim of cyberattacks, but what is the difference about this campaign? >> what's different about this campaign really is that we were able to understand from intelligence officials and c ertain analysts to track this kind of beha

at hsbc, you have joseph saying the strips lockdown as well as moderating inflation is likely to prompteliver a 50 basis point rrr cut at next week's meeting while rate cuts off the table given the real policy rate is close to -2%. shery. shery: here in the u.s., we had jobless claims improve slightly after the july adp private payrolls #a significant mess. let's discuss what to expect. we are joined by an economist at wells fargo. shannon, great to have you with us. we have been getting mixed signals on what to expect tomorrow. what are you seeing? shannon: we are forecasting the employers added 835,000 jobs in july. considering that pace on top of the gains with june, we are expecting it to continue and we expect some of the labor constraints that have really been plaguing them your today will continue to ease. we are confident is pretty outside -- on top of that already strong -- shery: already, we are seeing the participation rate well below pre-pandemic levels. the latest with the delta million spreading across the u.s. and more and more companies delaying the return to office plan

there was an interesting hsbc that was saying inflation is transitory but the biggest danger now than at any point when central banks became independent in the 1990's. ross: i think there is this question about inflation i believe is transitory but as we spoke in the past, transitory can be a long time. it can last 6, 9, 12 months given the inflationary pressures you have. so getting some clarity about tapering, getting clarity about how long that will last, i think the fed would do well to start soon, give themselves the optionality to be able to raise rates in 2020 two if inflation remains more persistent and they think that would be healthy and the cycle. tom: i have lost track and i'm fascinating with what you -- fascinated with what you think. what is the better of the street right now? are we way overweighted in equities? our hedge funds loading about on equities? what is the tone in the malaise of august? ross: it is tough. we spent a lot of time on this end you come to different conclusions. clearly people have been buying stocks, lows have been strong, but there was a long pe

you have some banks like hsbc saying we will let you know at fourth-quarter earnings.ne thing where we can see winners and losers because standard chartered, yes they have a buyback but while we are still struggling to see any growth that stock has been one of the big underperformers. hard to see anything changing that. commerzbank is reasonably well-capitalized. they are in a position to return capital. is that going to drive the shares near-term? now. alix: what about consolidation? is this going to be the year? jonathan: no. we will still see more domestic consolidation, but we are still working through a lot of things. still a lot of tltro's, too much liquidity in the system. maybe in special cases like credit suisse there will be more interest, but for the majority i think you are still looking around the edges. are we going to see a few sector changing big-ticket deals the next 12 months? i would not hold my breath. guy: in terms of what the structure of the market will look like, what we are seeing at the moment is a fairly big flattening of the curve. today we

hsbc and thing up its dividend plans. bloomberg says the bank is definitely feeling more confident.e seen a bit of a move in the bond market. equity markets continue to power ahead.

jonathan: steve major, hsbc managing director and global head of fixed income research.y this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. your equity market down 21. we declined by about 0.5% on the s&p 500. yields lower at 1.2250%. lower by a basis point on friday. tom: let's take 30 seconds here before david wilson to stop -- to talk steve major here. the delta back five or six years is without question to a lower yield. that is a structural call of mr. major. but what is important to me is the only time we have been lower than this yield is through 2020, through the pandemic. where we are right now is hugely unusual. jonathan: the bullish call is that a tolerance for higher interest rates has greatly diminished over the last year. just on the supply on the taper story, he's making the argument that treasury supply will decline over the next year or so , and because of that, that will offset the tapering to some degree, so he doesn't even think tapering will be bearish for treasuries. as i say, he's looking for 1% on the 10 year

currencies found support on wednesday as strategists and hsbc have been pointing out e.m. markets appear more resilient to the risks of a taper tantrum than in 2013. on wednesday we had the thai baht leading the event amid optimism daily covid cases and thailand stabilize. yet officials in the country have flagged attractive recoveries looking likely enda curran gap -- and the current gap looks to weigh on currency. flipping the board, a boj official warned of a longer than expected delay in japan due to the delta spread, which is more than 70% of the population under a state of emergency. the boj is maintaining stimulus it optimism over the pace of vaccinations. trading at around 110 pro this morning. -- early this morning. financials weighed the most in asia. tech bounced. shares sinking on the back of reporting its annual net income fell by 79%. flipping the board, australia earnings, some names, including qantas, which joined the rally we saw on wednesday on the back of the pfizer biontech vaccine getting the nod from u.s. regulators. shery: soph, u.s. companies follow

and she has been charged of misleading hsbc about huawei's business dealings in iran potentially causinghe bank to violate u.s. sanctions laws. so she is fighting extradition while under house arrest. and china meanwhile is thzing that there is no link here between the two detained canadians and the case of meng wanzhou, but western observers say this is an example of hostage diplomacy. and earlier today a strongly worded statement was issued by the u.s. embassy against the sen sentencing. >> kristie lu stout joining us live from hong kong. many thanks. >>> getting the covid vaccine paid off for one teen in nevada quite literally. she won $20,000 to put towards her college tuition just for getting the shot, part of a vaccine lottery put together by the state. 13-year-old caylee says she just wanted to get vaccinated before summer camp and didn't know about the potential prize money. so the phone call telling her she had won came as a big surprise. >> i had just woken up, i was in my pjs, my hair and i will over the place and i was like okay, cool, i'll go eat breakfast. definitely get th

the us alleges ms meng misled the bank hsbc over the true nature of huawei's relationship with a companyus since her arrest, and the hearings are in their final stages. now, there's been a lot of support for the canadians. this photo is of 50 diplomats from 25 countries gathered in solidarity at the canadian embassy in beijing. the german foreign minister expressed his support for mr spavor, saying... ..during his trial. the european union also hit out at the verdict, accusing china of failing to guarantee spavor a "fair trial and due process". and the us secretary of state, antony blinken, said in a statement... canada agrees. robin brant explains. now, canada insists, though, that despite all of this that these charges are trumped up. it believes this is a bit of political theatre. it believes that michael spavor and another canadian man, michael kovrig, are the victims simply of hostage diplomacy. they were detained in the final weeks of december 2018, just after the chinese telecoms executive meng wanzhou was herself detained in canada at the behest of american authorities who want t

hsbc announced earlier this year it would sell most of the retail banking locations in this country,some of the headlines from here. back over to you. maria: cheryl, thanks so much. we are apparently inching forward on infrastructure, senate majority leader chuck schumer says a vote on a nearly 3,000 page, $1 trillion bipartisan infrastructure package could be held in a matter of days, watch this. >> a bipartisan infrastructure bill is definitely necessary but to many of us, it is not sufficient. that's why soon after this bill passes the senate, democrats will press forward with a budget resolution to allow the senate to make further historic, vitally important investments in american jobs, american families, an efforts to reverse climate change. maria: meanwhile, yesterday on sunday morning futures, way onlying senator john barrasso highlighted the impact of a piece of of legislation of that size. watch. >> people are already paying because of inflation, higher dollars for gas, housing, you name it and maria, this is spending on top of the $6 trillion already spent in coronavirus r

hsbc down 1.4%, not just a european story, a chinese one perhaps.u see the banking sector push to next? geoff: from a profitability point of view, it will be a story of yield curves. one of the issues with normalization, even if we put short term concerns of growth to the side, we saw what happened in the u.s. in june and july. normalization talk started to be pushed through. we saw flattening of the yield curve. if normalization is going to work, you are restraining the economy and you will curtail credit which will impact profitability. that is one area where europe might find itself in a sweet spot. we have guidance from the ecb so anchoring policy assumptions from the front end, and if we get that reflation wave, not only will the credit demand in the private sector, but we can get the steepening and a wider yield curve. that could be a signal a better profitability but we need that kick started from the government to really boost growth and investment. that has not been recycled into investment. tom: a dovish ecb in the prospects of increased i