21/02/2017 World Business Report

Now for the latest financial news with Sally and World Business

A shock drop in profits at Europe's biggest bank -

HSBC says pretax profits dived 62% compared to the year before.

And he started out on the shop floor - now Natarajan Chandrasekaran

is running India's biggest company - so what will the new boss bring?

Hello and a very warm welcome to World Business Report.

In a minute we'll have the latest installment in our series disability

full year results for banking giant HSBC.

Net profit fell 62% from the previous year,

the bank calling it a period remembered for its "largely

unexpected economic and political events".

The net profits therefore only of $7.1 billion compared with $18.87

recorded in 2015, with group chairman Douglas Flint saying

geopolitical changes contributed to "volatile

Last year it agreed to pay $1.6 billion to end

a class action lawsuit over its involvement in the US

sub-prime mortgage scandal during the financial crisis.

It's also facing pressure to tighten up

US regulators have said HSBC has made some progress,

And all this comes as the bank closes an additional 62 branches

in the UK on top of the 55 announced last year.

And it also tries to recover from the reputational damage caused

by being found guilty of taking part in an interest rate fixing scheme.

That's just a few issues to highlight.

With me is Chris Wheeler, Banking Analyst, Atlantic Equities

Good morning. These numbers do not sound good at all. Shares in Hong

Kong at the moment down 3.5%. Gives you take. I think they are messy

numbers as you touched on in your introduction. Lots of unusual items.

They have also put through some more structuring costs, which are bit

more than kitchen sinking, getting into a bad quarter. But they have

been difficult market conditions. Looking forward, I think that the

shares are down because they announced two and a half billion

dollars worth of buyback in shares, and people were expecting the same

this year. They have only announced 1 billion so far. So disappointed in

the buyback size. That is all the dirty laundry out? That is a

difficult one. HSBC has a big split in businesses, and it is difficult

to keep track of every dedicated before the crisis. I think they are

getting there. They have made some progress. This has been their

biggest restructure since 2012, but now people want is he simply numbers

going to 2017, as they do. Also people want to know who will be

leading the bank. The chairman is retiring. And also Stewart governors

to move on. What is to happen in terms of succession? -- in terms of

succession? This to a very important, particularly at HSBC, and

they need a chairman well-connected, a strong individual. This is a 24/7

job. This is not just turning up very far support once a month. HSBC

has always got an internal candidate. There are one or two

there, but there has been a lot of talk again about it may be being an

external candidate that brings the fresh view to this bank. Talking

about its size, we talked about the fact that it is reducing the number

of branches, significantly, in the UK. This is all part of its massive

restructuring. But give us your take on how that is going and when we

will see the of that. This is not just restructuring the UK. They have

not done badly in the UK. Our economy has been OK. The issue there

is digitisation. We are using phones and laptops to do our banking. We

saw BankAmerica in the United States ( just last week. This is the way we

are going. This is not just HSBC. We are seeing branches closing over the

world and this will increase with the adaptation to a new paradigms.

Thank you for joining us this morning Chris. As a mention, their

shares are down in Hong Kong, and they will start trading in London,

as well, and if you hours. -- in a few hours.

The new Chairman of Tata Group, Natarajan Chandrasekaran,

work today ending one of India's most public boardroom spats.

A bitter feud was sparked when his predecessor Cyrus Mistry

Tata owns more than a hundred companies and is one

And of course it owns many key assets around the world.

So what are the key issues the new boss will have to tackle?

Seeking divine help, this man is all set to lead one of the oldest and

biggest businesses in India, the Tata group. He is the first person

from the fluent Parsi community to be appointed to the post. After an

acrimonious stand-off with its foremost head, it will be huge shift

here at the Tata group headquarters. Natarajan Chandrasekaran is an

insider who spent his entire professional life within the group.

He is popular amongst employees and has long been the favourite for the

role. But it is widely accepted that the task ahead of him is nothing

short of monumental. The Tata group has interests raising from steel and

cars to soil NT. But many of its businesses have been struggling in

recent years. Luxury carmaker Jaguar Land Rover and IT services have

struggled. They account for more than half of the group's revenues.

So Mr Natarajan Chandrasekaran first challenge will be to reduce

dependence on these two businesses and turnaround others. His second

big challenge will be making a decision about the future of Tata

Steel in the UK, where it has suffered heavy losses. A recent

ballot by union workers backed a rescue package that Tata Steel

offered its British operation, moving towards saving Britain's

largest steel producer. With over 100 group companies, many analysts

and pay the Tata group to a lumbering of it, but Mr Natarajan

Chandrasekaran has the experience of creating the mammoth IT services

firm, TCS. Many hope he has the similar success with the

conglomerate. Toshiba reportedly wants to raise

nearly $9 billion by selling a majority stake in its

lucrative chip business. The troubled Japanese company

is under pressure to raise money after cut the value

of its US nuclear business This week we've been focusing

on disability in the workplace - Today we take you to: Brazil,

a country which last year received its highest number

of foreign visitors due But for tourists with mobility

issues, Brazil is often seen as a poor choice of destination

as it lacks basic infrastructure Campaigners say the country

is missing out on billions of dollars of business

opportunities, but one man TRANSLATION: I can face problems and

find solutions for them. I am on the frontline, so I can go all sorts of

problems so that others do not have to go through any trouble. So that

problems only happen to me. Brazil still has very precarious

conditions. No one sees a person with disability as being a consumer.

I once had a request from Israel fought 22 tourists who want to come

to Brazil. Ten of them were in wheelchairs. No transport company in

Brazil has the capability of moving ten people in wheelchairs. Here in

Sao Paulo, no hotel would have that many people at the same time. But

one tool I offered in France come takes 14 people in wheelchairs. They

use the same bus, standards and hotel, and do all tours together at

the same time. -- stay in the same hotel. Because other companies have

this vision, the earned billions of dollars servicing this niche. --

other countries and billions of dollars servicing this niche.

And that is all from World Business Report. I was here in a moment for

the World News review. You then. A shortage of teachers in England's

schools is getting worse,