SoftBank profit swells 49 percent as it monetizes investments
Com. And by the Bloomberg business. Good morning from London I'm Markus. Karlsson and I'm used to Dean from defy we have of course the Saudis reasserting themselves underscoring that they have this appetite for a. Much, more. Aggressive foreign policy, taking on a g ten country yeah. Absolutely taking, on Canada we'll talk more about those trade tensions of course you also have the. Tensions, between the United States and China in the trade space no letting up all of. Those tensions either during the weekend with Donald Trump talking tough we've got to Chinese authorities sort of signaling through state media this morning that. They are willing to, wait it out in this trait, standoff. So as I say no sign of any easing tension. Sir, let me talk. You. Through the. Markets here at seven oh two in London eight oh two if. You're listening in Frankfurt. Or Paris European shares rising on Friday A weekly loss judging by the futures this morning we're going to see. Gains at the, open euro stocks fifty futures higher by zero point one, four percent we're seeing footsie futures rising by, two tenths. Of one percent and get count futures. By a, quarter of, a percentage point looking at the handover from Asia the indices there are makes the Chinese and Japanese Hsieh's down while the Hang. Seng, has. Been gaining run, about six tenths of one percent we've. Been watching, HSBC shares offers second quarter earnings those shares still in positive territory but I've actually. Pad, back some of their previous advances on the back of the second quarter earnings looking. At FX the off show you on had been building on gain sir from Friday overnight but we're now seeing it weaken somewhat by about. A tenth of one, percent against the greenback surpassed still, some. Nervousness there despite this actions these measures that we saw. From, the Chinese on. Friday. Stepping into. Sort of make it more expensive too short the Chinese Yuan will Talk more about that. In just. A moment the AUSSIE dollar the biggest lager in the space against the. US greenback looking at prices they had been rising overnight. And WTI is still on the, front, foot higher. By about a quarter of a percentage points at sixty eight dollars and sixty six cents a not a lot of movement. When it comes to Brent crude. At seventy three dollars and twenty seven cents we are seeing metals coming under pressure on the off by two point two percent when I. Look at zinc prices this morning on the enemy. Copper prices off by nine tenths, of one percent use yeah we have some earnings out from one of the heavyweight lender SoftBank coming in with first quarter operating profit of seven hundred and fifteen billion a year in they're saying, that the first quarter was boosted by two hundred and forty four point nine billion in vision fund valuation gay I think. There's going to, be considerable focus on any news around on a succession, plan positive could grab the attention of investors, of course. They're all society here First quarter derivative loss of fifty, four. Point -o eight billion year these are the lines that are coming through as we speak. And we keep a close eye on. The story. As in developed markets Yeah absolutely let's dig. Into our top stories in the meantime and as I say trade very much front and center. President, Donald Trump has defended his. Use of tariffs that have inflamed tensions with China as well as Europe he told an audience of diehard supporters on. Saturday that playing hardball on trade is, my thing Bloomberg's Tom MacKenzie has the details his comments came after Beijing announced plans to impose retaliatory duties on an additional sixty billion dollars worth of US goods if Washington continues. To ramp up tariffs China's list covers more, than five thousand. US products ranging from meat to. Ellen g if an acted they'd cover around seventy percent of, all US goods shipped to China in Shanghai Tom MacKenzie Bloomberg daybreak Europe Yeah Yeah so I just want to jump in here Marcus because we had some numbers. Here German manufacturing orders just run, run run through this down four percent month on. Month the estimate was for down half of one. Percents this is a sizable contraction on those journ determined June manufacturing orders something to bear in mind as we get into the conversation with Mark Cranfield from the markets live team and I wanna stay sick, back perhaps stay with the macro view on China initiated curbs on FX. Derivatives how is that playing out in the? Markets at the? Moment We'll probably not quite as well as China was hoping the currency the stomach. To gain a bit first thing, this morning but it reversed some of that as. The equity market sorry to weaken a bit and. They degree emphasize these restrictions are not just on the Ford foreign exchange server also another derivatives including swap transactions and option transactions but all in all the currencies only very mildly stronger than it was on, Friday and it hasn't really I did much to the gains that we're. Seeing in the first few minutes after the announcement on Friday I suppose the question. That follows then Mark is what needs to change to make these. Measures perhaps more effective in. Order to strengthen the the the you on in a more meaningful way it seems that Jerry does really. Want to see some stability in, the equity market so one of the things they were. Looking at today was that as soon as the equity market started to to go softer than the assumption. Is that the Chinese authorities would increase the stimulus or they're not, around the reserve requirement cuts to. Make interest rates lower, in China surf they're doing that then there's nothing in. The Ford market to support. The stronger currency so this currency can weaken it's almost becoming a catch twenty two. Situation for the, Chinese authorities until they can stabilize. The equity market the other things were not kicking so they really need to get. To grips with that. And then traders will be more confident that they really serious about trying to stabilize the currency as well All right we'll leave it there Mark Cranfield thank you very much for your time that quick reminder for real time, market commentary and analysis. Check out the markets lifelock that's m. l. i. v. on your. Bloomberg terminal now another story. Developing this morning earnings out of HSBC the banks second quarter profit came in ahead of estimates but the. CEO John Flint's push for growth, in Asia has yet to translate into significant revenue growth. That seems earlier we spoke to the finance director Ian MCI and asked him about the health of HSBC In good shape this morning The numbers Second quarter very much, in line With our our expectations So that, was the finance director Ian MCI? Speaking, earlier to Bloomberg yeah that's such an earlier Saudi Arabia. Has frozen trade investment diplomatic ties with Canada in the latest escalation of their dispute over the kingdom's arrest of a women's rights activists that we have come recalled its ambassador to Ottawa at order the Canadian envoy to leave. Within twenty, four hours last week Canada criticized Saudi, Arabia's arrest of activists including Canadian citizen Savar Dowie bear in mind that we did see dollar CAD move by about three, tenths of one percent but that spirit gains since the Bank of Canada on track to raise rates that's giving. A bit. Of support all right, sticking to the region Iran is racing to complete a string of deals before. The US imposes tough new sanctions Iran at the national flag-carrier has taken delivery of five new passenger planes this after. Washington gave its approval public resentment has been building as tensions with the US post the real to historic lows Close in the unregulated market the. Government says that it will act a later today to try to halt the currency's decline Yeah and then Brexit news you've got. The UK trade sector Liam Fox saying that negotiations are more likely to. The, failure and success, speaking to the Sunday Times he said there is a sixty percent chance of a not allowed come Bloomberg's, Alex Morales says he is, warning or, other rewarded comes as the government ratchet ratchets up rhetoric seeking EU compromise foreign secretary Jeremy hunt said last week Britain. Risks tumbling out to the block, without a. Deal by accident to government plans to publish some seventy technical papers this month next outlining contingency plans for renewed you Brexit it's not a prospect that business relishes. Bombarded warning the Press Association on Monday then a no do Brexit could encumber, it with thirty million pounds. Of. Added costs if it's forced to stop parts to allay disruption, to supply chain in London Alex Morales Bloomberg daybreak Europe okay that's the latest on Brexit when it comes to this morning. A forty two billion dollar merger to create what would become the world's largest industrial gas producer Is facing an unexpected hurdle from the US antitrust regulator that could derail the deal the Federal Trade Commission indicated it wants Germany's Linda and practice of the. United States to sell more assets before it approves their deal lindane noted a, quote higher likelihood that the. Requirements. May push total asset disposals to beyond the acceptable threshold outlined, in the merger deal all.