03/08/2016 World Business Report

A fresh beating on European banks as the strain of negative interest

rates and that lingering crisis in Italy weigh heavy.

And today Europe's biggest - HSBC - tells us it's making less money

as it shrinks its operations around the world.

and making it easier to do business across the country.

It's one of the biggest economic changes since the end of the Raj.

will it boost the fastest growing economy in the world?

Let's start with the global waking giant HSBC. Not good at all.

Global Banking giant HSBC has just released its latest set of results.

The bank is the latest major player to take a financial hit this year.

They are the latest financial player to take a big hit.

Top of the list - billions of dollars in fines for everything

from rigging rates to doing business with blacklisted countries,

laundering money and charging consumers for services

Low and negative interest rates across Europe have also

Low rates make it much harder for banks to make money

because they decrease the margin that can be charged on a loan.

Since the financial crisis banks have also had to hold much more cash

If they are storing it they can't lend it and if they can't lend it

Finally - investors and businesses have been spooked by the UK's

decision to leave the EU and the Chinese economic slowdown.

Companies are much more likely to hold off borrowing for a big

project if they believe the economy is in poor health.

Mark Dunne is Head of Research at investment service company AJ-Bell.

Great to have you with us. Welcome to the programme. It is a pleasure

having you with us. Quickly, we said everything about HSBC, kind offer.

They are just an example of what is going on. There has been

restructuring. I have had to put their hand in their pocket, make

redundancies, pay off things. They all seemed to be in a turnaround or

refocusing position. HSBC, once the world 's largest bank, no longer the

case, now focused on population growth. Asia, Middle East, Africa.

They are focused on selling more products to consumers in those

markets. They will be a lot of job cuts, plans to cut 50,000 people

from the workforce. But billion-dollar 's worth of costs by

the end of next G, plans to get that. 50,000. -- end of next year.

Last year, we had the stress test. That was last week. These early

shows are doing my head in. A lot of failures amongst the European banks

for the stress test but untrained in a sense for the audience around the

world, what is the difference between the European banks and the

American banks? The American banks are doing pretty good. Europe is not

so. A couple of reasons. American banks have had their act together.

European banks have had to pay out a lot of costs. The American banks,

the worst seems to be over for those. They have done the hard work.

Whereas the Europeans were less aggressive in solving the problems.

You talk about aggression, forget caged fighting, boxing, if you want

to see real fighting, speak to an investor. We should make that a

television show! We talked about the Italian banking, that has cropped up

a lot. It is in a mess. Some say there is a looming crisis. I'm

wondering, we say the word Italy or Italian, if they get into a mess, we

all feel bad? There will be a knock-on effect. If some of the

biggest banks in Europe, HSBC, if they are struggling, we will have a

knock-on effect. If you get banks in Italy needing the Italian government

to put their hands in their pockets to stop them from collapsing, in

uncertain times, lower demand for low growth. Uncertain times,

turbulent times. On a cheery note, we will leave it there. Thank you

very much, mate. Mark Dunne from AJ-Bell.

It's one of the biggest financial reforms since India achieved

independence from Britain nearly 70 years ago.

The Goods and Services Tax aims to simplify the way the country does

The tax will turn India into a single national market.

The upper house of parliament is expected to vote today

on whether to introduce the tax - which could boost economic growth

But the government doesn't enjoy a majority in the upper house so it

has been trying to win over the opposition and reach a political

Is that the parliament behind you? Before we talk about the government,

can they? Will they? Weekday? Can you X plane to ask -- can you

explain to us, I have to pay tax in each state I pastor if I am a truck

driver? Absolutely. Experts say the business loss is about five to 10%,

just because of high taxes and the kind of delays that you face on the

highway because the truck will take forever to reach from one end to the

other. But it only consumer gets it, you have paid so many different

taxes. You had a strap that had Mumbai, you

are not in Mumbai, you are in Delhi. We apologise for that. The debate,

can they get this past? What we know about India, there is a lot of red

tape. Absolutely. This is crucial for the

ruling government. It has taken forever. It was introduced by the

previous government, there has been ten years for a ticket a draft stage

to a debate at this place. -- -- for it to get. It went until late

yesterday. Today, we had the Finance Minister is hopeful of getting it

through. It will be a historic reform for India. We'll talk you

very soon. Let's keep our fingers crossed.

A lawsuit has been filed against the makers of Pokemon Go

over players trespassing on private property.

Rico using Singapore. This is a story from the states? What is going

on? It is unbelievable how far a comment Goyder players will go to

capture these players. Even in the people 's homes. -- how far Pokemon

Go players will go. There is a lawsuit against Nintendo, Pokemon

Go. This game has been huge since it was launched a month ago. They have

shown a flagrant disregard without seeking the permission of property

owners. A number of locations, such as the Hiroshima peace Memorial Park

in Japan, has to be removed from Pokemon Go. A museum in America

asking them to not play Pokemon Go during their visit. During this

excitement, Nintendo says the game will have a limited impact on its

bottom line. Last week, earnings showed more hefty losses for

Nintendo and that is where we saw the stock price of Nintendo dropped

double digits. Indeed. Does your son play it? No. It is still not here in

Asia. It is in Australia. In Japan, still not in Singapore or other

south-east Asian countries. You are missing out! I am missing out the

fun. I will have a word. I will have worked Nintendo in a crop that game.

I love how we do a story of the United States and to go to Singapore

to do that story. And Nintendo is a Japanese company. Let's look at the

market. The Nikkei is down. Investors are

not so pleased. When Japanese government announced the stimulus

package, about $270 billion. The biggest spending package in Japan

since the financial crisis in 2009. Throwing more money at the problem

will not fix it. Tweet me @bbcaaron.