are and standard chartered in a uniquely dell of it best ellicott position.uarters are in london. the british government has expressed strong opposition to the new law and offered refuge to 3 million hong kong residents. take a look at hsbc. hong kong and china are vital. greater china accounts for 40% of revenue. forward, getting on the wrong side of the government appears to be out of the question for the new ceo. when you look at standard charter, it is let's exposed to hong kong versus hsbc. hong kong is still standard charter's biggest mark -- market. 61% came from hong kong. 14% from china. i want to clean out some of the harsh reactions that we for from british lawmakers. including chairman of the u.k. parliamentary group on hong kong. he said, it's a colossal bejudgment because we cannot seen to be advocating for a flagrant breach of international law. -- annmarie: there will be more tension today in hong kong. the commemorating of the tiananmen square massacre usually happens. the police have banded. what can we expect it to look like this year? seli

signed the has petition, along with standard chartered, in support of the proposed security law.and lots of questions. like joshua wong broke up, -- brought up, how far do companies have to go to show support, and if they are being forced to show support, is the big question. will never guess we know, right? do they have anchoring licenses in mainland china that they need to protect? stephen: they have banking interests with mainland clients that they need to protect for sure. alastair carmichael, a british lawmaker i'm sure you're familiar with, he is a chairman, he is brutal on what hsbc just did. in bending torred china's will. he says it is a colossal misjudgment because you cannot be seen to be advocating for a fairly flagrant breach of international law. he called it tactically clever but strategically stupid. banks rely on a rules-based system. banks and international companies, local companies have to be asking themselves this week, next week, next year, forever? stephen engle there. we will get stephen back to talk about the protest in tiananmen square that has been put

and falling in line -- hsbc and standard chartered back beijing when it comes to the proposed security law in hong kong, the latter saying it will maintain stability in the region. hello, everyone. this is "bloomberg surveillance." tom and francine from london and new york. we look at data and the u.s. and the jobless figure which frankly, our people -- which frankly are people, not just numbers. we look at the protest and we look at the ecb, with so much priced in on what the european central bank will do today. it is truly an historic thursday as washington awaits. you're right, the ecb will be very important. jonathan ferro made clear to me the optionality that madame lagarde has is extraordinary. we've got claims at 8:30 washington time, new york time. that will be a precursor for jobs day tomorrow. all of this is overwhelmed by the historic moment. all i can tell you, just one vignette, francine -- it was extraordinary to see the handwritten note by the chairman of the joint chiefs of staff yesterday, to his officers and his troops. that was truly an historic moment. francine: we

hsbc and standard chartered both back to beijing when it comes to the proposed security law in hong kongthe latter saying it will maintain stability in the region. we are just under an hour away from the start of cash equities trading. let's take a look at what futures are doing. we see red arrows, albeit small red arrows. ftse futures down 2/10 of 1%. dax futures unchanged right now. we are starting to see you as futures actually turn higher -- u.s. futures actually turn higher. dow jones is rising. s&p and nasdaq futures still down. it looks like we've had some incredible gains. it would be pretty amazing if discontinued. the market doesn't want to selloff. anna: yeah. we talked earlier about whether this is a number of rally. it seems to limp on. let's look at the gym and function. look at what has been happening in asia. the recession has calmed a little. some modest gains to the upside. a mixed picture in asia. some markets to the upside. australia, philippines, thailand moving higher. elsewhere, hong kong and china under pressure. a bit of a movement in the dollar. the dollar recou

standard charter facing a backlash to back hong kong's controversial security law. investors say it is uncomfortable about the decision. its parent company is one of the biggest shareholders in the two lenders. mike pompeo describes the move as a corporate kowtow. the announcement triggers a race to replace him, leading one of the bloc's most powerful body. they are divided between geographical and political lines. the economy minister is a strong contender. britain has gone a record two months without burning coal, the longest the dirty fossil fuel had not been used since the start of the industrial revolution. coronavirus related lockdowns have hit electricity as industry and commerce remain largely closed. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. off with let's kick it the fed, no changes the expectation for today. all but certain to keep his benchmark rate on hold. officials will publish their limit and growth targets for the first time sin

plus, banking on china — hsbc and standard chartered voice support for hong kong's new security laws,vering all the latest coronavirus developments here in britain and globally. and we will reflect on the business world as well. first, we start in the us, where the department of transportation says it will ban all chinese flights to and from the country from june 16th. us airlines have been seeking permission to resume flights to china after suspending them due to the pandemic but say this hasn't been granted. in the last hour, china has moved to ease those restrictions slightly. all this comes amid worsening relations between the two economic superpowers in recent days with rows over coronavirus and hong kong threatening to upset the truce in their two—year trade war. chris campbell is chief strategist at the business advisory firm duff & phelps, formerly an assistant secretary of the us treasury the trump administration. he's in tampa, florida. great timing also, just perhaps a sign of a little bit of give here from the chinese authorities7 lots of ifs and buts around the possibilit

of notbeen guilty discussing enough what the standard chartered bank and hsbc is doing where they are saying they are going to agree to whatever with new security rules of hong kong. how big a deal of this in your london? francine: well, it was quite a big deal when they announced it. i think you and i spoke to stephen engle. he reminded us, it goes to show may be the influence that beijing has on some of these companies if they want to have licenses in mainland china. this is actually quite difficult to dig into the deep root of it. now, we understand that there is a backlash from investors. just yesterday, we had o aviva, one of the biggest investors in a lot of these banks, saying it is decisionable with the of hsbc and standard chartered, it is uncomfortable about the bank's decisions. tom: absolutely fascinating what we see their. we have got lots of coverage through this hour and on through "bloomberg surveillance." theill be joined from school of chicago, the former leader of the central bank of india. right now with our first word news in new york city. >> good morning. the oe

s biggest market standard chartered another bank with a huge asian presence also backed along the european union and china have postponed a major summit set for life in september the official reason given was the coronavirus crisis but relations have deteriorated over china's role in the bend i make in beijing's stance on hong kong. now poor working conditions and questionable housing the way the german it industry has been treating many of its neighbors has long been a dirty but open secret but is german slaughterhouses have been a hot spot for covert mindtree 1900 friends mission the pandemic is forcing a change. sebastian is 9 months. 10 years ago his family moved from romania to the mc and region of north west germany. sebastian's found them saved up and bought a house he now works in a vehicle factory and doesn't like to think about the time he spent temping in a jam and slaughterhouse. in the slaughterhouse there were so many temporary work agencies that enticed people with the crime most of easy money but the job was very hard and the workers were treated badly. look this is the sor

hsbc and standard chartered say the law will help maintain long-term economic and social stability.ng us now, a rather different view. the mp and chairman of the u.k. parliamentary group on hong kong. alister, very good to speak to you. you have been critical of the big chinesese operations, banks, have spoken out in favor of beijing's security law. do you think it is right for banks to be stepping into politics at all? shouldn't we let banks stay on the sidelines and take the political backdrop they operate in as a given? --when banks get political, we all suffer as a consequence. i can understand there has probably been an armistice political and commercial pressure on standard and hsbc to intervene in this way. seriousthey have made a error of judgment. in the longer term, banks, like all businesses, rely on a stable commercial environment in which to operate, and if you increase political instability, then inevitably, that fits through into the commercial and financial sectors. and you know, if china is allowed to think that china is only bound by the international obligations i

so this is being pretrade by the andest clan that hsbc standard chartered bank into british banks have sizable businesses here in asia and greater china and the mainland in particular or perhaps kowtowing to mainland wishes, because hsbc in particular was in the spotlight and they kept their head below the parapet at this time. they have not come out in support oregon against the national security legislation. we got a blasting last week from the former chief executive of hong kong. hsbc was the target of so many protests last summer because it had frozen or closed funds that were raised to support the protest movement. protesters thought they were curbing the rights of protesters to have their constitutional rights. hsbc said that close those accounts for technical reasons. sue, branches were torched we had to facing of that two lines in front of the headquarters. , somewhat understandably, cap there had low, but now they signing aseen petition in support of china's proposed security law. vigil thatss normally takes place in hong kong has been banned this year. what are protesters cla

and standard charter under fire under the support of's china security will for hong kong.ed said they must accept responsibility. and a big deal. the geo-platform breaks and more money as indian tech prepares to challenge the might of the top chinese players. we begin things here with a look at what is happening ash some u.s. risk assets they were, just having a look at what is going on with the bond market. also what is going on with currencies. 10 year yields on change. pretty much unchanged. looking at the dollar index. seeing more weakness again for the greenback. seeing at the moment sterling at 1.27 and the euro at 1.13 107. checking in with the aussie and japanese -- and looking at what is happening with the yield picture. there we go. at the bank of japan two basis points above it. 2% there. brent crude continuing slightly lower. that has been the trend the last two or three days. ts for brent.68 cen and their ago. aussie 10-year yields approaching 1%. part of a mixed picture for equities at least. i suppose people are taking stock, pardon the pun, of this risk ral

hsbc and standard chartered are facing a backlash for their decision to back hong kong's controversial security law. investors say it is uncomfortable with the decision and the parent company -- for its parent company is one of the biggest shareholders in the two lenders. hsbc,ompeo has blasted describing the move as a corporate kowtow. a corporate finance minister will not seek another term as president of the euro group. the announcement triggers a race to replace him leading one of the bloc's most powerful bodies. top roles are often divided along geographical and political lines, that puts spain in position for the drop, making the finance minister a strong contender. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. anna: just a quick update on inditex. when we were going to see the first ever loss on record, and we do. first quarter loss coming through at 409 million euros. the first loss on record we are informed. we also get the numbers on sales. inditex delaying its dividend for 202

and standard chartered have both backing beijing's position but then you also have reports of some hedge funds which may be considering moving out what more do you hear about i guess if some companies of some banks are getting a bit spooked by it all the bottom line is that china wants hong kong because the biggest the biggest beneficiary of hong kong is really china since the handover hong kong has become the the place center of chinese hot money so china prefers that they have hong kong in reach all of the minute players in china could not do it in china because it's not good for the domestic economy can do it in hong kong imagine it's like how. gambling is illegal in any part of china then they are allowed out in the center so there so it is the same thing in all they want to be s.u.v.s because there is no replacement shanghai and not the cannot be replaced but this is what i wanted to ask you how your financial center has china has china taken any steps to make mainland china look more attractive for international banks and inviolable investors. remember that a few days ago they anno

debt according to standard chartered economists the federal funds rate at minus 0.5 or even minus one percent will result in a significant drop in government bond yields which would facilitate washington's debt service the concern from the chinese is that those negative interest rates will not benefit the value of the dollar and that u.s. currency as a result will inevitably become cheaper to keep in mind american debt is a widely held and extremely desirable asset in the global economy whatever debt china does is simply purchased by other countries for instance back in august of 2015 china reduced its holdings of u.s. treasuries by about 100 $80000000000.00 despite the scale the selloff did not significantly affect the u.s. economy but the difference between 20152020 well there are 3 major differences number one we're talking about the incredible amount of liquidity the fed has poured into the market just this year alone number 2 an attempt by the fed to go to negative interest rates and then number 3 the issue of a global pandemic that has devastated economies around the world for t

joining me is sarah hewin, chief economist for europe for standard chartered bank. with us. we are hearing those predictions that this is going to be a catastrophe economically for the global economy. that is what the world bank is saying, do you agree? well, we are facing the worst recession for the global economy for decades and we do not know how serious it is going to be, but we know that already it has been a huge hit economies, notjust in the west but across the emerging and developing world as well. of course, that means that huge numbers of people, millions and millions of people, millions and millions of people who are without work, many of them are without incomes and it is uncertain how quickly they are going to be back injobs and back earning again. the predictions that this global recession could last up to a decade, is that realistic? the recession, the immediate impact on the virus has been to take all economies into a deep recession in the first half of this year. some countries, that will linger on for the coming months. i think we are seeing some s

hsbc and the standard chartered bank are walking away and clearly citing with a new mandate from beijingld the united kingdom respond? i think the united kingdom, frankly, is going to have to be cautious about what it does. a shock. going to be covid is a huge shock. were, it willit era tate the chinese quite a bit. they need something to encourage the plants to stay in hong kong they madese that encouraging noises about making hong kong there base of operations for so long. in the end, to be perfectly honest, if the chinese are smart, it will be quite difficult for a country the size maturityn to offer that they get from china. tom: as we expect, professor, you go to the heart of the matter, which is a country the size of britain. something postwar. is there something -- >> particularly the way the world economy is going, you can't help it splitting up into scenes. out andhas it worked hasn't really quite found a home. i think the truth of the matter policy buttrade other policy has to change. we have to be more like canada and australia [inaudible] and hope we can survive. we have a hu

because a key investor coming out today saying it is uneasy on hsbc and standard charters hong kong staffat is worth paying attention to. i want to bring up one final chart. zarais the owner of the chain. a huge global retailer. it will post numbers tomorrow. it is worth watching as to high retail is coming back -- as to how retail is coming back around the world. itex up 1.3%. that is a quick look at the european markets and something to watch out for as well. number comingt through from inditex. the story around aerospace is critical. the french government unveiling planrel plan -- a bailout to rescue its aerospace industry. the package including the extension of a number of different factors, including part-time unemployment subsidies , a specific investment fund for the crucial supply chain, state guarantees in terms of what they are seeing in terms of the orders from the airline, and incentive to accelerate the race towards hybrid planes. that feels like an awfully long way away. there also incentives in terms what is happening from the defense sector as well. richard aboulafia joins

standard chartered says too many people are too optimistic that covid-19 will be a short-term issue.resident trump resumed his attack on the fed, saying he sees a better picture of the u.s. than jerome powell does. he tweeted "the federal reserve is wrong so often. i see the numbers and they do better than they do." the criticism is the latest in a long line of attacks on the fed chairman. it comes after policymakers offered a sobering view at the latest meeting. america's top soldier apologized for taking part in president trump's church, saying he should not have been there. the chairman of the joint chiefs histaff general says presence outside the white house led to the perception that the military was involved in domestic politics. the photo op came after protesters were forcibly moved from the area. the u.k. and european union are to accelerate trade negotiations amid fears exit talks are headed for collapse. five more rounds of discussions to start at the end of the month. boris johnson repeatedly threatened to abandon the process if he doesn't win an acceptable deal. the u.k.

are: to wrap it up, if you a company that gets a lot of money from china, like hsbc and standard chartered facebook or other companies that are u.s.-based, what you tell them? richard: i think for the time being it is ok. it is much more complicated when there is anything to do with technology. it is a more complicated landscape and it makes an argument for diversification. there'll be a movement in the united states and elsewhere against certain types of supply chain dependency and i think companies would be wise to think about reducing their reliance on china, because it is inevitable to me that this relationship will be an extremely difficult one for years to come. at least we will have something to talk about. richard, we enjoyed your piece. thanks very much indeed. richard haass, president of the council on foreign relations. thank you very much indeed. this is bloomberg. ♪ you say that customers make their own rules. let's talk data. only xfinity mobile lets you switch up your wireless data whenever. i accept! 5g - everybody's talking about it. how do i get it? everyone gets 5g with

given what we have seen, standard charter this came out with a note a couple of minutes back. 3%, nearlds will head because of all the supply coming into the market. starting august, they say government bonds will decline materially and that should alleviate some of the pressures, putting upward pressure on the yields at the moment. and the rates on the -- what is the outlook on the hong kong dollar? -- it until the spread of was a little higher today. until the spread narrows to points, thecentage attractiveness of the carried which puts open pressure on the value of the hong kong dollar, that will not disappear until we get that yellow line to about that point. back to you guys. on the: let's check lunch break in hong kong come the hang seng pretty much flat. 25 moving about .5% up, we have a situation there with the yen falling below 107. of against the backdrop japan's crisis, the specter of inflation rearing its head here. with some blow8% away retail sales figures. this is bloomberg. ♪ save hundreds on your wireless bill without even leaving your house. just keep your phone and s

standard chartered in a response says or in a statement saying that it, in fact, will help long-termility but these are companies and businesses that have to work in that tighter grip of hong kong as china sort of imposes in on hong kong at the moment. china is still trying to figure out what the implementation of this law looks like. it has not been implemented. they are getting everybody up to speed about how they are going to implement it, what to do, including the officials in hong kong. so they are looking, we are hearing, about two to four weeks before it actually goes into effect. stu? stuart: got it. edward, thank you very much indeed. i want to do one particular stock, i want to check on it real fast. that would be ebay. that stock has soared this morning. they have added around six million buyers in the last two months. that's while you're stuck at home, of course. you might as well shop on, bay. the stock is up 6% this morning. earlier it was at a brand new high, just above $50 a share. >>> delta airlines are going to extend their social distancing policies on planes into

hsbc and standard charters are being reviewed by a top shareholder for their support of china's sweepingurity laws for hong kong. david cummings says he is "uneasy" about the decision to back the legislation without knowing exactly how it will work. he has its companies make political statements, they must accept the corporate responsibilities that follow. hong kong have -- hong shares werese oversupplied by 360 times. they are now going up to 20 million shares, while the number of institutional investors will be reviewed to 150 million. trading begins tomorrow. .p next, the smart money at researchresearch affiliates joins us with more. this is bloomberg. ♪ >> u.s. stocks falling today. let's get a check of how we are setting up in asia. >> the optimism seems to be fading. futures pointing lower in asia. stocks have swung to the downside. s&p looking little changed. overall, risk likely to be taken off the table. the rally looking overheated. $225 billionledged to cushion the virus impact. the outlook still looks dire and employment is not expected to improve. koreabless rate in south ju

standard chartered says too many people are being too optimistic that covid-19 will be a short-term issueunion arehe european to accelerate trade negotiations amid fears of brexit talks heading for collapse. five more rounds of discussion to start at the end of the month. boris johnson has repeatedly threatened to abandon the process if he does not win an acceptable deal. we are hearing the u.k. will rule out a brexit extension for the deadline on friday. the trump administration has formalized years of u.s. opposition to the international criminal court by authorizing sanctions against officials who participate in investigations against america and its allies. the president signed an executive order -- funds for staff following the court's plans to probe alleged war crimes by all sides and afghanistan. fox news host tucker carlsen is losing more big-name advertisers over his black lives matter comments. disney, papa john's, and now t-mobile quit his show after he said the protests were not about black lives. he added "remember that when they come for you." fox says that was clearly about

hsbc and standard chartered are backing beijing's controversial move, saying the one country two systemsy: hong kong lawmakers are about to resume debating a bill that would make disrespecting china's national anthem a criminal offense. the law is likely to be passed on thursday, 31 years to the day since chinese troops fired on pro-democracy protesters in tiananmen square in beijing. joining us from hong kong is the leading democracy campaigner and secretary general of an activist group. great to have you with us. all of this happening at a time when the national severity legislation is being written in beijing. where do you see hong kong in the next few years? one country, two system in hong kong is strongly eroded by beijing. it is now beijing who broke the promise of the final british declaration, the international treaty register at united nations and erodes hong kong affects thems and interests of countries around the world. >> what are you and your allies doing to have a say in this conversation? are you reaching out to pro establishment people? how are you trying to influence whe

records supporting the law and that pressure has emplaced on these companies such as hsbc and standard charteredling to go on the record have been expressing concerns, so we see the ft reporting hedge funds, thinking about hong kong. better pressure to self-centered. the concern is the unpredictability of it all. what really makes hong kong thrive in the past is the predictability, which you have here. you have a common-law legal system. we know putting much how it works. we can draw from british examples, australian examples, and you have a fair idea of how it works and fair confidence that you have an even playing field in place of any government overreach. you can challenge government stations in an effective manner. i think the fear will now be that that will be eroded and essentially will become much more similar to the mainland, where you do not have this predictability. the enforcement of the law is much more arbitrary. essentially, if you are challenging the government, you will not really have an even playing field and it will be very difficult to combat any government or regulatory ove

two banks in hong kong, hsbc and standard chartered bank, both now say they will support the national footprint in hong kong even though they are a london-based banks and you know it could be devastating to the nba business in china and hong kong if they did oppose that law. back to you. neil: all right. thank you very much, edward lawrence on all of that. we have a lot more to monitor here, again, with this tit for tat on airline traffic between our two countries and how the chinese are responding to that. we also have more openings to tell you about across the country. we told you about new york state moving largely to phase two, opening up restaurants and the like. phase one begins in new york city next week, not quite there yet. but very very close in terms of allowing curbside pickup at stores and that kind of thing. in new jersey, opening up outdoor dining, some retail stores and the like beginning the week after that. june 15th. stay with us. the process is continuing. massmutual healthbridge is a free life insurance program just for healthcare workers fighting covid-19. learn

school and it makes all i think rosabelle to ensure good academic standards and you know sustainable student population which is wot charter schools are a sassed on and he never encounters anything of the kind of other minority communities and interesting i'm not sure i get it how to actually fix that because he cannot tell women to sort of prioritize that kid's education over their private lives but without that you cannot also ensure any educational of business continues in well i've got a fix but it might be illegal and the fix would be you apply to a charter school whether you're black or white because the same thing would apply are used and maybe it is legal because it would be discriminatory barossa and you have to show that you've lived in that area for the last 2 years i mean that's not perfect but that gets a rude little around this mobility issue but if you haven't i mean if you leave with the obama you know that problem of single motherhood and absent fatherhood is a very prominent problem in the black community it is if if if you are faced with that i simply don't understand how anyone can solve that issue ah g

here's why we do obviously have that in the bank charter because in order to be able to plug into their payment system you have to comply with the standard set but it's not a reset or every bank has to do that that's just a given it is what it is but i'll be very legislation when it passed is enabling and it is decided to track this industry here and why folks are coming ironically i think given everything that's happening in the world more folks are considering actually moving here as opposed to what most folks do with delaware which is use its was but don't actually live or do business there i think we're actually starting to see both want to move to why don't it's interesting there's a tremendous the population in the cities now people looking for a wider space and certainly i think you got a lot of empty space for sure now you mentioned j.p. morgan there for a 2nd i want to focus on that so everybody knows who's been following big corner j.p. morgan the last 10 years they started off as bitter no coiner. so as we say they're very much against this idea because and then gradually over 10 years jamie diamond finally you know it took hi