Shares jumped in hong kong as investors rewarded improved capital. Returning bank that more to shareholders and when will it . We will talk about that question. It will be a busy session. An awful lot to think about. We need to talk about what equity european equities will do today. We will see what the fair value looks like on the wei. The ftse look sick it is opening more firmly. Up and the dax up by. 3 of 1 . In aggregate we are opening up. 3 of 1 . That is the story in terms of where we have think cash is day. Ing the guy the where watching carefully a number of things. You have seen the aussie dollar come down. That is the story with the aussie dollar, down by. 2 of 1 . The bloomberg dollar index is up and the dollar is firmer. Solids backtoback sessions for the greek market. I want to show you the next column. This is where gets interesting and this explains why we are seeing what we are seeing in the aussie. Iron ore is down by 8 . Youre seeing an aggressive selling off of the metals complex overnight. Were soft yesterday in london and soft in australia. Will they be softer in london . The fair value which i showed you on the ftse points to a fairly solid start. Hsbc is trading very strongly this morning. Kong. Up to 2. 5 in hong that should translate into a big positive jump for the london market. We will talk about the minors and what is talking happening with oil as we work our way through this morning. And the crude complex as well. Lets get the bloomberg first word news update. ,uliette thank you, the u. S. The fed has stuck to its outlook for gradual policy tightening as it left Interest Rates unchanged and so a saw no alarm over economic weakness. Officials were unusually explicit in a statement indicating a disappointing firstquarter would not knock them off to raise rates this year. The way the expected decision contained no concrete commitment to the time of the next rate increase. Investors increased bets on a move in june. And still in the u. S. , has rippled against plan to vote today on their long sought obamacare measure. This comes after weeks of agonizing over how the gop would deliver on seven years of promises to repeal obamacare as well as intense pressure from the white house a number of republican moderates remain opposed or under sided undecided adding significant suspense to the about. South africas finance minister has said the countrys economic policies are safe and focus on growth despite questions at home and abroad about jacobson was administration. The government is committed to this go management and comets his advisor about changing policies do not reflect its stance. Our policy is the South African government [inaudible] and by companies. There will be various voices outside that framework. Reflecte voices do not the opinions of government. Juliette we will be speaking to the governor of the South African river reserve bank at 9 30 a. M. U. K. Time. Said firstquarter profit rose 12 as it boosted revenue at three of its biggest businesses. Adjusted pretax profit which excludes onetime [inaudible] rose to four point 9 million. Share buybacks have helped its stock climb 45 in the last year mckay saidn children should not expect purchases every quarter. We have finished day billion dollars by back. When you add to that what we did last april, that is 3. 5 billion. I would not encourage investors to think we would do buybacks of recorder. We are happy with we are from a capital position. Juliette global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is blogger. Bloomberg. Guy lets talk about what is happening with france. S speaking on the radio addressing some of the issues in the last 20 for hours. He does not have an account in the bahamas. What of a followon from one can describe as a Heated Exchange that took place in france last night. The france i want will not be divided for you to make this happen we will need to leave a system that lead a system that produced that. You are a coproduct of the system. Your its parasite. You said it so often, i am the candidate of openness, no, you are the closure of factories, the closure of maternity wards, the closure of police stations, the closer of closure of hospitals revealing the leaving you do not want to close our borders. Guy it was a fairly feisty affair. That is the highlights of some of the blows of the tv debate in the runoff phase of the election. A survey showed 63 of respondents rated macron is the winner. I am joined from paris by my colleague. Is running out of time, isnt she . Last night did not work for her. Is there anything else she can do . Caroline she wanted to show a series of conquests but she did sound angry and aggressive on many occasions during this debate. She did sound more comfortable on subjects like terrorism, accusing macron of having a soft spot for islam it fundamentalism islamic fundamentalism. She was confused about the plans to leave the euro saying there guarantees, the french would still be using the euro franc but the would be used for international transactions. Macron replied that was nonsense. If you dig into the details even among the [inaudible] thoughter electorate macron was most convincing. Best. 4 Emmanuel Macron point for macron, he was the candidate who can understand ordinary people, according to polls. Guy one thing that occurred to me is that it was not a debate that is going to encourage people to come out and vote. I think that is going to be one of the critical elements of all of this. Do you think it has engaged people with the cabinet . Caroline it was very Little Exchange as you saw. Cooln trying to keep his at appear as the detail man, the man with knowledge, we saw the first clash after just a few minutes on industrial qualities with the le pen accusing macron for being responsible for the sale of some companies. Then macron told her, you can look into your file but you are mixing the two subjects, youre telling the french lies and you are a parasite. There were very strong punchlines saying that macron saw part of the french people as invaders and he would be dependent on the german chancellor, angela merkel. She said at some point you have the choice now to elect a woman, it would be either me or angela merkel. And thank you very much date. It will be an amazing run up to this. I am sure the period afterward, we still have elementary elections. They market did not move on the back of it so that the headline level the markets have priced in a macron win. Take a look at the risk reversals, this is the euro dollar risk reversals and what they show is this kind of search forr the first round win macron and this replacing of some of the options, and this is the skew. The market is down from the zero line the more the market is betting that there is a possibility we could see a significant move to the downside. Hedging. S like this is people saying, you know what, we have seen what happened in the u. S. And the u. K. , we have seen surprises take lace, we are going to cover ourselves. What we have not seen his headline moves, you have seen the market taking a little bit of cover. Bloomberg tv and radio bring you special coverage of the French Election, the president ial runoff results sunday. Will repeat the performance after the second round as well. Market reaction as i have indicated fairly muted on the french debate as investors have had other things on their mind. Lets go to singapore now. The fed is comfortable looking through this soft patch of data. Does that mean june is definitely got the green right now . Mark jen would have to be the base case, it is not deficit june would have to be the base case. They emphasize the point that the recent slowdown in data in the u. S. Is transitory, i believe the word was. They think this is temporary and the economy is still find and they left with the message of what they said in march holds and that meant the market is cracking pricing in june as most likely but the fed has not precommitted. They have given themselves in option to talk about that if the economy continues to deteriorate. June is the base case but it is not 100 definite yet. Screen, 74 the gmm on the dollar. Iron ore being battered in singapore and in china. What do you make of this, the reflation trade continues to ebb and ebb away. How should we be reading this, a canary in a coal mine or is there something more to it . Sok the downturn has been sustained it should be worrying people more. One of the most interesting things in terms of the Market Reaction is there was not a mass contagion effect from the commodities fall. You have a slightly hawkish said traded relatively ok. Commodities topped out in february. We have seen Agricultural Commodities happy all year and oil tank heavily. Head toward the lows. We are seeing industrial metal having problems. They commodity indexes trading poorly. There are supply issues that are hitting this but this does reflect a lack of demand based on what was expected a couple of months ago and that is a negative sign for the global reflation trade. Working our way through the morning. Mark cudmore, thank you very much indeed. Spot analysis as ever. There is a piece of it, many more on the mliv go screen. There is another thing you can do this morning as well. A pliv screen as well. This is running on the hsbc core and numbers, smart analysis on a very on very important events. Interviewt you more with the ceo cfo. You can follow this on top live and on the terminal. We will get you some great stocks. Stock is trading higher in hong kong. We will carry on the conversation next. This is bloomberg. Guy good morning, 46 minutes past the hour. Lets get your Bloomberg Business flash. Juliette thank you. Societe generale has settled a legal dispute with an authority income. Ed lower net net income fell to 470 Million Euros missing analyst interest estimates. The bank posted rebound in trading businesses while falling short of trend shown at its larger rival, bnp paribas. And tempering exuberance about sales. The company said it expects Revenue Growth to be down meaningfully after its talks increasing the frequency of marketing spots in the newsfeed to avoid driving way users. Shares fell as that message overshadowed First Quarter sales and top estimates and a 17 jump in monthly users to 1. 9 billion. The impactully track of bad experiences during the last several years. We have said that ad load is up and we are able to do this by improving the quality and relevance of ads. Where we are focused is continuing to improve the ad quality and relevance. Juliette tesla has ensured invest assured investors that they are on track to become begin production. Lostding some margins has 1. 33 a share. Cashman was the secondmost in the companys history behind only the final period of last year. I am confident that these vehicles will occupy every segment. I do not jump the gun on the semi truck announcement, we are unveiling that this year. Will define peoples expectations. Juliette that is your Bloomberg Business flash. Hsbcs adjusted pretax expectations. They will contemplate share when they ared appropriate. And edwards to the banks cfo. Anna edwards spoke to the banks cfo. I have to say not being facetious, i would be a happy man if i could closeout 2017 right now. We guided at the end of the year to see 3 or 4 Revenue Growth over the course of 2017 and notwithstanding a very good start in the First Quarter, that is the gains we are holding for the market as we move into discussions with investors over the course of the next few days. Anna can i ask about Share Buybacks . What would you say to them, last time we talked, you said we have a ratio target, if you are above that you will contemplate returning cash, you are well above that at 14 point 3 . Why not more cash right now . Guest we have finished a billiondollar buyback on the 12th of april. When you add that to what we did last year that is 3. 5 billion. I would not encourage investors to think we would do buybacks every quarter. Were very happy with where we are from a capital position. At 14. 3 , dating to her one and at the half your last year at the end of the year, our principal focus is taking our Investment Capital and putting it to work to build the businesses around the world. Where strongly focused on the maintaining and delivering good dividends to our shareholders. Last year we paid over 10 billion to our shareholders which i think made us the thirdlargest dividend payer in the Banking Sector globally. Fromll consider buybacks time to time as appropriate. We have finished one billion, well take a look at policy and reflect and had and see how the rest of the year develops. Anna last time we spoke and last time you are talking to investors around the last set of results you mentioned 8 billion could be freed up from the u. S. Business. How much is the scale of returning cash to shareholders question mark guest shareholders . In 2016e completed ccar with no objection from the federal reserve. We along with the rest of the industry submitted ccar submissions for 2017. We are making that available for further deployment within the group. Our possible or possible return to shareholders. The guidance we provided at the end of the air around how we intend to deploy our cash hold is firm. Edwardsaking to anna earlier on. Lets get an analysis. Kongt reaction and hong pretty positive. Was it the quality of the earnings that encouraged investors . Certainly, as you mentioned, the stock up in hong kong. The last time it was i checked it was the highest intraday level in more than two months. Casting around and some of the analysts reports, a lot of people enthused by the fact that this report beat estimates, a 12 beat on the adjusted profit line. Another positive thing, some analysts had been anticipating revenue aligned to decline. They reported a 2 increase on the adjusted revenue line. Considering that this is a bank that came off a fiveyear decline in revenue, that is one thing that was noted as quite positive area do couple of other things, some analysts that at the fact that payments fell loan payments fell 48 , adjusted loan and payment charges. That is a good. We are talking about the outlook for bad loans. The other thing we should mention is the fact that the comment equity to one ratio rose to 14. 3 percent. That is also very positive thinking about how the bank will expand their riskweighted assets over the coming year. The sense in the market is that we are moving to a point where we start thinking about capital returns from banks. Banks buybacks announced. There is enough positives in this set of results to look through that. Do you think the focus returns to that issue of capital returns pretty soon . I think so. As the interview with anna showed, he left a lot of wiggle room for that and certainly not ruling anything out for it it makes for prudent fiscal management, if you like. He also talked about the fact that the outlook for more capital is going to be, going to look pretty good, they will get more capital freed up from the u. S. He said Something Like 8 billion expected to come out of the contraction and the u. S. They will have the firepower to do it. The key and the other interesting thing is the other challenges that may come about this year. Is the new chairman have to think about, he is replacing mr. Flint, what are the challenges there . Mark tucker comes in as the new chairman in october. Among the things he will have to do and we have noted it before. He will have to look for a replacement for Stuart Gulliver as ceo. Thisulliver has indicated year might be his last year, last full year at the helm of hsbc. That is one thing that mr. Tucker will have to deal with. More broadly, the bank is facing a number of other challenges. We have the likes of exit sputtering along in the background. The finance dr. Was saying. It is too early to worry about that but no doubt they are thinking about that. They are a big trade finance bank as well. The possibility of more trade bytectionism and so forth the u. S. Foreignpolicy agenda could also impact on that front. Guy plenty to think about he has his work cut out. Numbers. S on the hsbc we have a few minutes before the london listing opens. You have this tliv function you can use in your terminal. The call is ongoing. They are talking about loan growth guidance, we have seen alina what is happening with buybacks. Well take a pause. What is interesting is that is going to help out what is going on with the london markets. Seven utperform, up. 7 of 1 . Upc is going to help, it is in hong kong. Show will be positive shell will be positive. Despite the fact we have seen the oil price coming in a little softer. Be aware of that. The other thing to bear in mind is we have seen this big move lower in the metals complex overnight. For of that was priced in the london market yesterday. Some of it may not be. Keep an eye on the miners. There are five or six stocks going today. Unilever, you that in mind bear that in mind. Jeff 7 59 in london. One minute ago until cash opens in europe. Looks like a positive start for european equities. London looks like it will outperform. Looks like we will be opening up. 6 in london. Cac 40chyearold the and dax up. Keep an eye on what is happening with the mining stocks. You have seen a big move lower in iron or and some of the other metals overnight. Bear that in mind. We did see some big names coming softer yesterday. 2 for some of those names. That. Y see more on we will see exactly what happens. The aussie dollar through. 74 this morning. Get the smarter analysis. Stewart wallace walking towards this duty youre right now. Let us talk about the markets and this open. We think it will be a positive story. Here we go. This is the picture we are watching at the moment. There goes london. Nice, solid start for the london market. 72 point 60 is where we are trading. We are expecting the german markets to open up reasonably strongly. We are expecting a little bit more on the london market. Good news from anglo as well. A bit of news on the Mining Sector as well. We will break it down in more detail. Let us get details. Manus cranny. Jennifer we get to the price of iron or in a moment. That takes a shine off the metal. We have a few exdividend to consider as well. The focus on hsbc will be on numbers. Financials are slightly better bid. A third ofpening up 1 . Hsbc, no buyback. Better. Ers were carlsberg. First quarter revenue. Stocks are at a 20 month high. At 1 8 of 1 . The shanghai rebuffs futures. You are see