from 2006 to hsbc 2010. his call for the brexit is in contrast to the bank's current management. that is your bloomberg business flash. francine? -- let's get to economists -- just to recap, we understand egypt air hijacking is not related to terrorism and we seem to understand that most of the passengers have been released. this hijacker claimed to have been wearing an explosive belt, forcing this plane to land in cyprus. my question to you though is if you are in the market, how do you deal with any kind of geopolitical threat, whether it is real? stoxx, soldw the off initially but balanced on the news that you give them that there is less severity for this particular incident. terrible-- it follows terrorist attacks in pakistan over the weekend. it is an increasingly dangerous world out there. triggerents potentially a new module within terrorist outrage. they target different sectors and it seems to be more than we have seen before. risk-offthat shift of the hader. -- behavior. francine: it is against inflation. of 2016, if there is any risk, people are piling to gold? is whe

hsbc is going solo in china, winning approval to start a credit card business. that came as hsbc and it was so joining citigroup and bank of east asia as the only foreign card issuers in china. it is not known when the approval was given, nor are there the city details on how it will be rolled out. -- specific details on how it will be rolled out. an independent card unit on the mainland would include -- going to wall street, the bonus of their percent last year, the biggest decline since 2011. average bonus in 2015 was $146,200. payoffswere down, as sold by $1.7 billion. total is down 6% from one year early -- earlier. that is despite more than 4000 new jobs, and profit rising at six largest banks. bonuses could mean that you can -- new york city could see lower tax revenue this year. three years on, shinzo abe's strategy is being questioned. abenomics received an average score of 4.6 out of 10 for overall effectiveness. the economy fell into recession in 2014, swinging between growth and contraction last year. abenomics is a three-pronged approach, including a

burberrytand that already has a relationship with hsbc. they have asked people to look into it to see who this group, for this person, is. it could be an activist investor. they could be somebody looking to take over burberry. this is a rumor we have heard over and over again. why is there such a rumor? guy, we both know burberry quite well. this is one of the only companies independent in the luxury sector. it is one of the only companies that has more than 19% free flow. guy: it is one of the few properties out there somebody could buy. the sector has been hit pretty hard, hasn't it? the china story has knocked down the entire sector. if you are looking for a target, one of the you fear once to access is burberry. otherne: a lot of the ones. are held by families. and so, gaining control would be much more difficult. you are right. they have been hit. the share price is under a little bit of pressure. they are currently valued around 6 billion pounds. the evaluation could be around to 2illion pounds billion pounds more. they went after al

the campaign is really beginning to build momentum for the ceo over it hsbc -- over at hsbc. there's this view that it is good for you, you are huge. you are so huge that it matters more for you than it does for smaller business. eu -- this think the is big versus small. this is the argument that suits you. juergen: it is not big versus small. there has been these 250 people but there are thousands of businesses in the u.k. whichever credible survey you , it is small and it is large this is that overriding is is saying -- overridingly saying we want to remain in the eu. many of our customers are small companies. i have conversations. manus: wears this argument where the eu slather's red tape on small businesses? is that delusional? delusional is because this whole thought that we can live in a world of no regulation. nothing regulating the way we carry on our business, it is pie in the sky. if we are going to be trading with the world, the eu, which is most of our trade, 44% of our trade as most people know, then we have to have a regulation. it is a fantasy to think that you

government fined hsbc over $1.9 billion in 2012. estimates more than $30 billion of illicit funds leaves mexico every year. that could be the third highest grossing country after u.s. and russia. not just by the cartels themselves, they have cooperation at the very highest levels of the global financial system. >> yes truly international network. adam rainey with the latest from mexico city, adam thank you. >>> still to come this hour: calls for somalia's government to do more to help soldiers injured fighting al shabaab. plus: >> i'm wayne hay reporting from the first dam to be constructed on the lower mekong river. government says has to happen to boost the economy. >> golf world's number 1 jason day puts away the season's first major. are >> ...and on the streets. >> there's been another teenager shot and killed by the police. >> a fault lines special investigation. >> there's a general distrust of this prosecutor. >> this is a target you can't get rid of. >> the untold story of what's really going on in ferguson. >> they were so

fabio balboni, european economist at hsbc. a look at what we are elected to hear later, and indeed the chinese growth story. 6:26 in london. 7:26 in paris. up next on the program, we are talking shop. it is a big day for retail earnings, we have numbers from hugo boss in the fashion industry. and we have the retail space, a big deal with amazon. how important is that? we will have analysis, next. ♪ find fantasy shows. when it comes to the things you love, you want more. love romance? get lost in every embrace. into sports? follow every pitch, every play and every win. change the way you experience tv with x1 from xfinity. hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. intro

did notlear why hsbc tell burberry sooner. alibaba wants to come even bigger and is asking google -- banks for loans. u.s. banks involved include citigroup, goldman sachs, j.p. morgan chase, and morgan stanley. time for our bloomberg quick takes, where we provide context and background on issues of interest. today the focus is on banker bonuses. the banking industry we see today was built on a promise of substantial compensation for its employees. the debate over whether regulators should interfere with this practice rages on. wall street firms adjusted to the post crisis financial morality -- reality by pulling back on pay. that marks the biggest decline in 4 years. regulators play a starring role in determining how banks play -- pay their top traders and managers. this applies to worldwide operations at eu banks as well as local operations of global firms. started to inflate in the 1980's after deregulate allowed commercial banks to trade to capital markets. the eat what you tell tradition meant that bankers got paid profits

they also asked hsbc who the mystery investor is. if we were look -- if we were to look at a broader view as to why they would be interested in who those candidates are -- burberry's been down 30% the last year. in terms of people with the firepower to take on burberry, lvmh is the biggest candidate with brands -- with more than 60 brands, covering everything from handbags to boots. with burberry fit in its portfolio? -- would burberry fit in its portfolio? aey may feel they are doing better job than christopher bailey, who is both chief executive officer and chief creative officer. equally be inactive shareholder who is disappointed with the company's performance. we are all waiting to find out. if hsbc will reveal the identity. in the process, burberry is defending itself. mark: there have been seven big luxury goods deals and the last 15 months or more. $50 million.ly why have luxury companies been inward focused? andrew: you have to look beyond that period to understand why they put the brakes on m&a. a lot of luxury companies we

banks from outside america including hsbc and deutsche bank are pushing back against the fed's proposals to end too big to fail. they say they are burdensome and unfair to the u.s. unit. under the proposal, u.s. units of foreign banks would need an extra layer of debt to be wiped out in a crisis on top of securities qualifying as total loss observing capacity. barclays africa says there is no lack of interest from others. the parent company reduced its 62.3% holding to less than 20%. >> we keep emphasizing that there will be a lot of trade involved, and what we think regulations would look at is the long-term stability. even when somebody who was a long-term investor, a stable we have to look at what management would look at. nejra: we will be speaking life to the barclays ceo at 12:15 u.k. time. that's your bloomberg business flash. francine: i'm really looking forward to hearing from him. there are a lot of questions -- he hasn't been on the job for very long and he is probably finding it tough. with worries over euro area deflation and unemployment stubbornly above 10%, economists are

he is with hsbc in china. michael purves with us. we're going to talk about the other asian nations today. everybody is calling for a depreciation. what are they waiting for? michael: it is interesting. lieu look at everyone's focus on the crude correlations. it is also almost tick for tick with those two as well. from a trading point of view this is one of those orrelations you want to see. on the issue as to whether more devaluations are really going to send the vicks back up into the 40's, i would suggest no. i think the question we get to is how does any further devaluations get processed? if it is part of a thoughtful solution. francine: what i'm trying to understand is whether they will devalue because they have no choice and they are just not telling us or this is deceitful, they want to devalue but not tell the world right now. michael: right. i don't know if we'll ever know the answer to that question. i will suggest this. think they are -- there are plenty of reasonable arguments for them to devalue. john made this point ab

us fromven is with hsbc. thesee are seeing of effects, they are little canaries may be in a big coal mine. we are not sure they are out there, but how do you equally e.m. dynamics with what we are seeing in developed economies with low nominal gdp? steven: the week commodity prices that many people are focusing on an unnecessarily a great thing. there is evidence to say that they pass through two households in developing world and that is not good. it is a group hit and they have to ease policy. for us, indonesia is very interesting. it was our favorite of the e.m. markets this year. the reason they are easing is because they have to respond to the nominal gdp backdrop and accommodation of real gdp and inflation falling. they are quite sensitive to the region.is more about what is happening with china than what is happening over here in the west. quite clearly, the easing path is now taken by the smaller central banks. to me, there is much more information with what is happening in indonesia, norway, switzerl

henri could be on the shortlist to succeed as the ceo of hsbc. anna: chinese policymakers have concern abouteir the surge in leverage of the world's second-largest economy. it came after the national people's congress meeting the chest china's top priority is securing annual growth for years to come. the vice premier said that china would do what it must address the situation. >> we will strengthen all around regulations and tamp down the risks to the stocks, bonds, foreign exchange, and property markets. this is our bottom line. let's bring in our quality editor now. another big concern for china. many voices have spoken out about the level of debt in this economy. >> you just heard the comment about 6.5% growth. that is the real baseline for the next five years they just got reiterated in the five-year plan. we are hearing that over and over from the top officials that they will be able to do that. inside that is addressing the risks, and some of these are leverage. we heard, for the second time in a couple weeks, from the central bank governor

the treasury is supported to some extent. >> stephen from hsbc is still with us. in a most sounds like you. >> the actual pulling down isn't .ust about the flow if you look at japan or germany to explain the moving treasuries, it is about the policy reaction and there is no way the fed can tighten sing because of the rates going down in japan and europe. bloombergeople in made up. this is where gross made his call and trying to figure out why that call was made. it's the kind of where are we now and what does where are we now tell us about where the bond market is going next? >> that will give you some kind of measure of whether the bond is rich or cheap. post tapering, the yellow line when done more than the fed one. that is the point where bund yields went to five basis points guy: and and sprung higher. this is where -- and sprung higher. guy: this is where gross made the call and you think this is why he made the call? i think it was part of the explanation, yes. if you look back, there were other things to do with solvency. but boone's were rich -- but bunds

la peculiar forma de comprobar su identidad no sÓlo la utiliza mastercard, la compaÑÍa bancaria hsbc trasera un sistema de reconocimiento - lanzarÁ un sistema de reconocimiento de voz. adquirir algunas crÍticas ya que para otros efectos, son sistemas que pueden ser vulnerables. ♪ ♪ ilia: en repÚblica dominicana anunciaron compaÑeros de boleta para las elecciones, mientras se intensifica el debate de suspender la nÓmina del plan social. >> esa serÁ la idea del expresidente, hipÓlito mejÍa. >> es una persona joven, una persona preparada y capacitada. reportero: en tanto la selecciÓn de margarita se vende como marca compaÑero de boleta para mÉrida, para algunos consolida sus aspiraciones. >> eso unifica de manera definitiva al partido, doÑa margarita tiene los mÉritos suficientes. reportero: no obstante, ahora por su condiciÓn de candidatas se suma al debate de suspender durante la campa -campaÑa los bares sociales. >>no se discrimina a nadie por razones de tipo polÍtico, eso lo sabe, que se deje de estar con tanta chÁchara. >> consideran a la doctora fernÁndez cap

janet henry, global chief economist at hsbc. get involved. we'd love to hear your views on all of this. you can find us on twitter @louisa bojesen. we're showing you the e-mail address right there on screen. streetsignseurope@cnbc.com. we're also on facebook. you can find the show twitter handle as well. it's all on there. a bit confusing. you'll figure it out. coming up on the show, hillary clinton and donald trump solidify their primary leads on tuesday. mr. trump reached out to his global supporters. >> i'm going to be very good for the world. i'm going to get along with the world. you're going to be very proud of me. >> and bugati unveils its latest model that petrol sees as a true aesthetic and engineering feat. can you guess, though, how much this little thing costs? we'll be right back here on "street signs." again, do join us. find us on e-mail or on twitter. >>> hi, everybody. good morning and welcome back to "street signs." i'm louisa bojesen here in london. itv shares in the red today as the broad kacaster warns about t advertising

stephen king stays with us from hsbc. up next, a merger of equals. that story next here on on the move. ♪ guy: welcome back to "on the move." i am hans nichols in berlin. let's bring back in our guest stephen king. we have taken a tour around the world. you have been mostly pessimistic. here behind me is the brandenburg gate it is any place stephen:ptimistic guy: -- optimistic? stephen: germany has done rather well. germany has fared a bit better. the growth of the inflation has been that encouraging. there are encouraging signs in india. it has been an upside surprise. has not done as badly as other countries in europe. rather like germany [indiscernible] nevertheless, the broader global story is one where surprising down growth and inflation. major, he's got 1.5 and treasuries. why are they wrong guy: and you are right? >> i think the point i would emphasize is looking at forecast errors and the way in which the world is involving impaired to what people expected, the persistent downward surprise and growth are factors that are drivingly yields l

america,ks outside including hsbc and deutsche bank, are pushing back against the fed's proposals on implementing rules designed to end too big to fail. they say they are burdensome and unfair for the u.s. units. under the proposal, u.s. units of foreign banks would need an extra year of debt available to be wiped out in a crisis on top of securities qualifying at total loss. and barclays africa says there is no lack of interest for those seeking a stake. it comes after the parent company last week announced plans to reduce its 63% holding to less than 20%. >> we keep emphasizing that there can be a lot in gold, and something regulators will look at is -- is there long-term stability? even if someone is a long-term investor, you have to think of regulators. caroline: we will be speaking live to the barclays chief executive at 12:15. that's your bloomberg business flash. guy: thank you. goldman sachs is warning bond traders not to that again central-bank policy divergence. goldman is still expecting three fed rate hikes this year. hans, take a look. a fascinating panel i was moderatin

hsbc and a lot of the banks are helping to lift indexes even though moody's and says hsbc will leave three banks having to sell $77 billion in debt to absorb losses. not good news for hsbc specifically, but the bank sector we see rising. let's take a look at what oil is doing this morning. oil bouncing back here come a gain of 1.75%. back about $37 a barrel. we were up at $38 yesterday. before that reversal, oil had been doing pretty well yesterday. we will see if it holds today. let's take a look across assets come a check of gold where the fear trait has been going on, turning down this morning. we will talk more about gold on the program today. the 10 year yield climbing of it as investors selloff and get into stocks a bit. 112.en coming down to david: today marks the seventh anniversary of the bull market. the least likable marketable time. the downside risk in the s&p is much greater than the upside risk. does this matter to you as you look at specific investments? wilbur: not really so much. i'm not as industry-specific and company specific. s are notll macro determinative. wil

. >> you don't think hsbc should be fined when they launder money to drug cartels. john: it's just buying and selling. >> among all the free things bernie sanders wants to give us, he wants to give us free college. one thing my peers are look at is the rising cost of college. how can we we form the system? what can we do to make college more manageable. >> telling us we'll give you have free college is pandering. we need to say higher education is disruptive in many ways. >> we spend $8 billion a your giving pell grants and g.i. bill families who are failing left and right. you can redirect that into free public education. >> the k-12 system is failing. it would be an extension of that system. >> a private alternative to public universities. john: profit is bad, publicly run is good. >> i would agree with that. yes. >> for every dollar of federal spending, colleges and universities increase their cost by 55 to 65 cents. they know they have washington shoveling dollars into them so they have to reason to compete and lower their costs. administrative costs are part of

yet the stories about hsbc's dividend yields. that's a big concern for anyone in banks. the big -- fix occurs. who is worried about potential higher volatility coming in on the back of this seesaw effect if we start to see treasuries weaken on expectations of higher u.s. rates at the april meeting or afterwards. story, theis kind of picture you paint of the global economy is poised to do something. it probably doesn't make sense. caroline: i want you to tell me where i should be putting my money in this environment. where should i go? >> that is an excellent question. i don't have an immediate answer. every single market is very distorted. as i was coming on, you talked about the european corporate bond market. rumors as there were they were going to buy insurance bonds, it tightened dramatically. they've also got global starks benefiting from altra wrote low -- ultralow interest rate policy. the stocks are still distorted. i look at every single financial asset class. i think they are over volume because of these distortions caused by the actions of central bankers. how

hsbc has approved china's credit card market. it paves the way for it to join citigroup and bank of east asia as the only foreign card issuers in china. it's not known when the approval was given; nor are there any details on how the business will be rolled out. imports slumped in city despite a record gain for iron ore and news of a joint venture with baley. spike on monday before the deal was announced. the accord offers them the opportunity to buy a minority stake in for trtescue. ores togethernd can meet the market needs for our customers in china; it will provide a blend that is ideally suited to minimize the cost of the supply chain. buy aly, it's for vale to potential stake in fortescue's shares on market, a minority interest. yvonne: and those are the headlines, powered by over 2400 journalists in 150 bureaus around the world. let's check in on how the markets are trading in asia-pacific. here's shery. losing,sian markets are china on the lunch break, falling before it headed to lunch. that's with telecom leading. the han

pacific ceo saying will grow to capacity by 4% to 5% this year, but the company has been cut to hold at hsbc, losing 2.4%. .52%, --na up one 1.52%, the rebound in crude, not having massive layoffs amid lower oil prices. not rulen 1.4%, would out buying assets in media and telecom firms. this is how stocks traded this morning. we have these utilities feeling the pressure after a court ordered to nuclear reactors be shut down. 15%, theectric falling biggest plunge since 2013. tokyo electric falling more than 3%. leading the gains has been paper manufacturing, neap on paper up 6.5% after credit squeeze -- credit suisse increase the rating, after the rebound of group 5% in the previous session. let's take a look at oil, still up 2.5%. this is despite a ratings cut by ubs. we are taking a look at rio escue after that iron ore prices, after the record surge of 19%. rishaad: thank you. the latest reading on that china inflation number. prices rising the most since mid-2014, the cost of food yearng amid the lunar new holiday, more than observers were expecting. our chief asia economics correspondent

hsbc is the most bullish on the euro, forecasting 83 pence at the end of the second quarter. is the most bearish, predicting 63 pence. the only currency which has fallen against the pound is argentina's peso. guy: thank you very much indeed. let's talk more about the u.k. european decision. john caldwell, having founded retail phones back in 2006, also a prominent supporter of business for britain, which campaigns to reform the eu-u.k. relationship. good morning. i'm going to pick up where mark left off, talking about the relationship between the euro and sterling. that is the perfect liquid way of looking at how the market has viewed the risk both sides face. they've decided the british face a greater risk in this brexit campaign then maybe the rest of the eu does. are they wrong? are they right? john: there are a number of times the financial markets have gotten things wrong. guy: the markets aren't always right. john: the markets are very regularly wrong. i would actually like to talk about objective assessment. if we look at the first objective assessment that people are

look at hsbc. analysts over there are cutting their stocks, worried about the dividend policy. and also worried about the capital requirements. the financial policy committee said banks will start to have to raise the buffer. let's have a look at the next set, the pound is holding onto the gains against the u.s. dollar. they are holding out for the janet yellen speech happening midday, we will have janet yellen discussing economic policy. the euro-dollar is holding onto the gain. the dollar is on the weak side but brent crude is down. we have had none other than kevin noris worry that we could see oil back below $30. bearish news happening in the markets. the s&pere in the u.s., is down and in the red but the nasdaq is coming into the green here. abigail doolittle has the latest at the nasdaq. we have some tech movers including skyworks solutions. abigail: sky works has been trading down today. this is the apple chip supplier. and analyst has taken his rating down, warning the risk level is more balanced, following the rallies over the new iphone. he is also saying that the sma

. >> you don't think hsbc should be fined when they launder money to drug cartels. john: it's just buying and selling. >> among all the free things bernie sanders wants to give us, he wants to give us free college. one thing my peers are look at is the rising cost of college. how can we we form the system? what can we do to make college more manageable. >> telling us we'll give you have free college is pandering. we need to say higher education is disruptive in many ways. >> we spend $8 billion a your giving pell grants and g.i. bill families who are failing left and right. you can redirect that into free public education. >> the k-12 system is failing. it would be an extension of that system. >> a private alternative to public universities. john: profit is bad, publicly run is good. >> i would agree with that. yes. >> for every dollar of federal spending, colleges and universities increase their cost by 55 to 65 cents. they know they have washington shoveling dollars into them so they have to reason to compete and lower their costs. administrative costs are part of

guy: hsbc has got 10 year treasuries at 1.5%. where are you guys? i actually think we could see one or two more rate hikes this year. it is about 1.9 k. w-- 1.9 today. we can see it popping over two. guy: compare and contrast the u.s. and japan. we're seeing two very different worlds at the moment beginning to emerge. marilyn: a look at the state of the u.s. economy it is relatively robust. it's interesting when we saw the fed, we heard janet yellen speak, there were two very different opposing forces. they were cautious towards the global slowdown. and factoring in the strength of the dollar. on the other hand, when you look at the changes in the unemployed and great -- the unemployment rate, overall, the picture for the u.s. economy is robust when you look at household consumption and the labor market. on the other hand when you're looking at japan, the market expecting further easing. again, when you look at structural changes such as global growth, when you look at demographics, the two economies are really starting to divert. guy: how do you tr

hsbc will be the first to use it. accounts will be able to recognize your voice. the first one will be rolled out in the u.k. they have not said if that will come here, though. >>> how about prize with the new reality headset. it's called happy goggles, transforming from a happy meal box looking similar to a google cardboard. this video is from a posting in sweden. the happy goggles work with your smart phone. mcdonald's is looking for a scheme game that can be played with the v r head set. they will be rolling out in sweden this week. mcdonald's says it hopes to make it relevant in this country and maybe in other countries, soon. >>> issues of silicon valley magazines will be distributed. >> it's a bimonthly magazine that will cover topics including art, fashion, philanthropy. >> joining is now is john, editor of silicon valley magazine. good morning. >> good morning. >> tell us where this idea came from. sill von caley has been a hot spot for decades and now all of a sudden, we have the magazine. >> the idea stems from us looking out into the valley and looking

jim, i've been looking at this company hsbc. >> no. i don't like that yield. i don't like the banks here. i do want you to stay away from that situation. let's go to pennsylvania. >> caller: boo-yah, jim from poconos. >> okay. not far from where i grew up. what's happening? >> caller: my stock is azaz. >> i like this stock. aircraft space, you want to own defense. my charitable trust owns lockheed martin but i think that they have a greater mosaic of defense spending. dennis in rhode island. >> caller: dr. den here or self-proclaimed. i have an autopsy for you to perform. upco health. i could not see any institutional buying of this. i've been liking it but i feel as if i'm missing something. >> no. you're fine. it's coming back. they did an acquisition. people thought it was diluted. i believe in frost and the stock is making a comeback. peter in north carolina. >> caller: jim, boo-yah. i have a baby girl coming in june. should her college fund own corning? >> corning's fine. i just don't have an edge there. i think that corning is a company that is historica

hsbc winning approval for a solo credit card in china, joining citigroup and bank of east asia, worth more than a trillion dollars. more about that story and more, follow me on twitter, use #trendingbusiness. across the board, looking out for trade numbers. we are on standby. let's look at what is going on with the markets. shery ahn: lots of markets right now turning negative. pulling down a just stocks today. japan falling for a second consecutive day, down 1.8%. stronger yen is hitting the outlook for exporters, not to mention we have final gdp data showing that the economy theracted one by 1% in fourth quarter. also a rally we saw in chinese stocks, not being sustained. shanghai composite down 2.5%.

hsbc took the stock from buy to hold. initially dinged 3.3% the following day, since that downgrade rand gold has run up 30%. february 8th it was trading at $78. deutsche bank downgraded buy to hold. then it roared 8.7% higher that day despite the negative research. february 24th, downgraded from outperform to sector perform, stock barely budged. march 1, a buy to neutral from bank of america. stock was at 91, briefly sent the stock down 3.8%, a loss it quickly recovered from. two days ago with rand gold back at 91, morgan stanley downgraded from overweight to equal weight. stocks are down two bucks from these levels. to put the 30% since the aftermath of the first downgrade, the price of gold is up 7.6% over the same period. when i see this stock taking punch after punch after punch from the analysts and continuing to go higher, that tells me rand gold is pretty much the only gold growth miner out there. they don't care one whit what wall street thinks. i'm not recommending rand gold for everyone. most should be fine wit

says quitting the european union could harm a future prospects. 250 business leaders, including hsbc, are ino of favor of leaving the eu. we are joined by david lee. with politics do and the conservative party. david: absolutely. it is a result of the conservative party's need. theink the need for conservative party to continually appeal to its base is what is causing this referendum. and cameron has almost a knowledged just as much. guy: are they recognizing the fact that large portions of the population are unhappy with the status quo at the moment. look at what is happening in the united states. bernie sanders is doing better than what many anticipated. a largehere is clearly constituency of the voters within the u.k. that are quite unhappy with the eu, the media, and the u.k. is very much an outlier. yeah, there is a risk there. there is a reason why the conservative party is split on this issue. an awful lot of its members favor that. hans: if the conservative party is so divided, as you say, is there any chance that having this vote will break the fever and then they can be reun

hsbc, the custodian for the position, is not disclosing the identity of its client. it's thought rival luxury groups could be buying up burberry stock to capitalize on the recent fall in share price. >>> mean while, rwe has annou e announced plans to comprehensively restructure npower. they swung to an operating loss of 170 million euros in 2015 largely due to billing issues. overall, the german utility giant guided for lower profits in 2016 and posted a 5.5% drop in full-year earnings. we'll get into these results at 11:30 cte when we'll speak first on with rwe's cfo. >>> and a sugar rush for lindt with forecasts rising 11%. the chocolate maker confirmed its 2016 guidance and sweetened its dividend by 10.3%. joining us now for more reaction on the results is john cox, head of swiss equities. thanks for joining us this morning. before we got the results, you actually said you did not prefer lindt. in fact, your price target is quite a bit below where we're trading today. looking at the profits and margins, have you changed your mind? >> i would say marginally in term

could he become the next chairman of hsbc? thomas bluebell will become the next ceo. he is currently deputy ceo. watch for that change. it could fall on the open -- it could fall: the open -- it could fall on the open. s&p has cut their rating to junk it all of this that from 10 billion euros worth which are in the green in terms of bonds which are in the blue. a lot more costly to raise more debt. borrowing costs could rise if s&p cut your rating to junk. guy: looks like the cac is going to be in an underperformer this morning -- going to be an underperformer this morning. next. ♪ guy: good monday morning. welcome to on the move your diane guy johnson. moments away -- welcome to on the move. i am guy johnson. goldman sachs holding fast to its bullish gains. investors agreed it -- a great. whatever it takes. concerns on deposits are boosting bank lending. the latest piece in the policy puzzle good plenty of ecb speakers right now. better to travel that arrive. is in need for the brazilian markets. we will talk about that in the next hour. the cac is going to be an u

manus: thank you to dominic therefrom hsbc. in a few minutes we will open up on these equity markets. we had a rush of emerging market equities, the chinese are still down by 15%. it is a bright and breezy day on the last quarter. not bookre long, why of profit at the start of q1. midway through, stay with "on the move," right here at london .q ♪ it is time for the battle of our charts. i will bring you something that shows what japan's indexes are doing. you get to choose the winner, you are the adjudicator, judge, jury, and executioner. we see the blue line. you see they're going down. these outlaws with money coming out of japan and the green is money going back in. we see that it is pretty correlated except we get to the end of the year. we see the topics coming up a little bit. it brings me to this brian haywood point. the ceo of the pacific partners. he makes the case that a lot of the money leaving is dumb money. is is the red or moneyl the outflows dumb leaving japan or are they had of the curve? tennis, let's see the

exposure to emerging markets, specifically when we talk about the larger em exposed banks, that being hsbc, standard chartered among them. will that turn into good news for the banks as we get into quarter two? >> standard charter is the big play in that regard. it has been -- stock price has more than halved since last summer. >> all right. well, simon, thank you very much for your perspective. well, get in touch with us early here. we want to get your questions into the guests. we want to know what you think about the quarter that's about to pass and what you expect for the second quarter. the various sectors you're investing in. we'll be talking more about metals coming up, especially on the gold price, which is now set for an extremely long record when we talk about its biggest rally in nearly 30 years. get in touch on twitter. @nancycnbc. still to come here on "street signs," nationalization is not the answer. the u.k. government rules out buying tata's british business as david cameron chairs a crisis meeting. we'll have all those details after this short break. ♪ before a movie st

to listen to him because he's the third best performing hedge fund manage they are year according to hsbc. he runs the diversified offshore fund which is $800 million under asset management. great to have you with us. >> thanks, meg is a. >> there's a quite before the storm and there's a storm coming. do you agree with that? >> the driver from our perspective is the lack of kwooesing, so for six years we had this surge of liquidity, this tide that suppressed liquidity in equities and that's gone now, and almost exactly when that ended were saw volatility start to creep back in many markets and finally made it into equities, had three 10% to 12% corrections in the past 12 months. >> do we see that swoon in august and? >> well, it's important for me to put a caveat. what we do is very, very short-term trading so anything i say is based on computer predictions that are just a day or two in duration. >> sure. >> so i will tell you that right now our models are bearish on equities and bullish on fixed income and gold. what they are saying there's an established trend in fixed income and gold a

hsbc the biggest drag on the stoxx 600. airline stocks are down as well. mentioned air france is a big loser. we are seeing airline stocks down as well. hotels are falling as well. if you look here, you can see cook, itok -- thomas is a travel company. travel sites are falling. tripadvisor has come back. a lot of these companies have .ome back if you look at the bloomberg terminal, i have a chart that shows european travel stocks throughout different terrorist attacks and the resilience, within days or weeks they come back. if you look at the treasuries, the yen, the drops were significant at first and they have recovered. this be another sign that will push the european markets to be sluggish? we have been waiting to see real business investment and this is another thing. when people are concerned, it is not that they are pulling money out, but they are not spending. what you have seen in germany, under these and the eu, 20 members cannot get together. stephanie: you don't think something like this could force more unification? it should. look at the germ

hsbc was saying -- 1%? >> we're getting this polemic move. i think in the short-term, we may see yields move higher. a positive sentiment at the moment, but longer-term, the top think --at move -- i push me out toward the end of ultimately, the fed will not be able to hike rates that aggressively. the 10 year treasury to us versus the rest of the world -- yields -- 10-year treasury is pretty attractive. anna: thank you for joining us. fixed-income portfolio manager at j.p. morgan. manus: for the next 24 hours in terms of what the fed will do -- kuroda. we'll see how it plays out. -- sorry, "onam the move" is up next. anna: they will be speaking to mr. yen. he will be talking to them, next. ♪ >> welcome to on the move. it is a: 30 over in berlin. were counting you down to the european open. i am guy johnson, alongside hans nichols who is over in berlin. the boj pressing and negative rates after a surprise in january. kuroda says nothing warrants more stimulus -- we will speak to the man known as mr. yan. -- mr. yan. putin pulls back. russia