Browse content similar to 04/03/2013. Check below for episodes and series from the same categories and more!
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next year - and the Olympic Games. Those are the latest headlines from | :00:02. | :00:06. | |
BBC World News. Now for the latest financial news with Sally Bundock | :00:06. | :00:16. | |
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Its reputation battered after a money-laundering scandal, HSBC | :00:23. | :00:29. | |
reports profits later this morning. Another damaging strike for Iberia | :00:29. | :00:39. | |
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but the firm says it will not back down over job cuts. You'll with | :00:39. | :00:44. | |
World Business Report. I'm Sally Bundock. -- your wit. Also China's | :00:44. | :00:50. | |
taking action to burst a potential property bubble. But in a few hours | :00:50. | :01:00. | |
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Agers the sea will release its full year results. -- HSBC. They had a | :01:00. | :01:06. | |
massive fine imposed for laundering money from Iran and Mexico. How | :01:06. | :01:15. | |
much of an impact is it having on The full scale of the money | :01:15. | :01:19. | |
laundering came to light as the police started cracking down on | :01:19. | :01:25. | |
narcotics gangs in Mexico. A US Senate hearing concluded HSBC and | :01:25. | :01:29. | |
Mexico was a conduit for the kingpins of the drugs trade to | :01:29. | :01:33. | |
siphoned billions of dollars across the border. Money-laundering | :01:33. | :01:38. | |
cheques were inadequate. HSBC managers say the episode has | :01:38. | :01:42. | |
crushed its reputation. A few clients have so far with from their | :01:42. | :01:46. | |
business in discuss. People in France and Germany aren't going to | :01:46. | :01:52. | |
be bothered about what goes on in Mexico -- in disgust. The customers | :01:52. | :01:57. | |
won't see these alleged incidences of mismanagement and Miss control | :01:57. | :02:02. | |
at HSBC as being representative of the culture of HSBC in general. | :02:02. | :02:07. | |
decade or so ago from its base here in London HSBC set out to make | :02:07. | :02:11. | |
itself the world's local bank, snapping up subsidiaries in almost | :02:11. | :02:16. | |
every country on every continent. But in the past three years it has | :02:16. | :02:21. | |
sold off for a dozen of its foreign businesses and shared thousands of | :02:21. | :02:27. | |
foreign staff -- four doesn't. -- shed. That has brought it $3 | :02:27. | :02:31. | |
billion a year in savings -- 4 doesn't. But what is its strategy | :02:31. | :02:41. | |
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now? We are focused on Asia but then growing to be a global bank. | :02:43. | :02:50. | |
The heart is beating heart. Really it is kind of returning to that | :02:50. | :02:58. | |
Corps Business. HSBC is scaling back -- core business. It's hoping | :02:58. | :03:01. | |
also to live down the damage done in Mexico to its worldwide | :03:01. | :03:11. | |
reputation. As soon as we get those earnings we | :03:11. | :03:16. | |
will tell you. Ground and five staff at Iberia has begun another | :03:16. | :03:21. | |
five-day strike. The Air Line have cancelled 1,400 flights -- flight | :03:21. | :03:26. | |
staff. Unions are protesting at the plan to cut 4,000 jobs and | :03:26. | :03:31. | |
reorganise services. Despite the industrial action, the parent | :03:31. | :03:36. | |
company, IAG, which also owns British Airways, say it will | :03:36. | :03:46. | |
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continue with their cost-cutting plans. Douglas McNeill is an | :03:49. | :03:53. | |
investment expert at Charles Stanley. This strike is hot on the | :03:53. | :03:58. | |
heels of another one a few weeks ago. How effective are they? There | :03:58. | :04:03. | |
were plenty of strikes last year and the union is struggling here. | :04:03. | :04:08. | |
Iberia is in pretty decent financial strengths so far as cash | :04:08. | :04:12. | |
reserves are concerned. When it comes to a strike, a union has to | :04:12. | :04:15. | |
put serious pressure on the company's cashflow, the heartbeat | :04:15. | :04:19. | |
of a business, and it's not doing their at. Despite all the | :04:19. | :04:23. | |
destruction, the cancelled flights and the painted passengers, it's | :04:23. | :04:29. | |
not really having an effect? -- not doing that. They have EUR500 | :04:29. | :04:34. | |
million in the bank. They are being cost a few million euros every day. | :04:34. | :04:38. | |
It is painful but it is not something they need to be seriously | :04:38. | :04:43. | |
worried about. The inconvenience to passengers is not only an issue -- | :04:43. | :04:49. | |
certainly. But management has enough cash to ride out this issue. | :04:49. | :04:53. | |
How will this play out? Will we get to the point where politically the | :04:54. | :04:58. | |
Spanish government will get involved? Is that a no-no | :04:58. | :05:01. | |
considering where the Spanish government is at the moment. They | :05:01. | :05:06. | |
are clearly concerned about the situation. We have seen huge scale | :05:06. | :05:10. | |
redundancies. So far it has confined itself to making worried | :05:10. | :05:14. | |
comments and it has not sought to get involved. It does have some | :05:14. | :05:18. | |
influence because it controls Anglia, the troubled bank, and that | :05:18. | :05:26. | |
has a 12% stake in IAG, but 12% only gets you so far. So basically | :05:26. | :05:32. | |
the management, IAG, will get its way in the end? I think so. They | :05:32. | :05:36. | |
are very well prepared in terms of cash and contingency planning. They | :05:36. | :05:40. | |
are very committed to their restructuring plans. Those plans | :05:40. | :05:45. | |
are being put into effect at the moment and they are going to be | :05:45. | :05:48. | |
pushed through. Thank you for joining us. Again it is a story we | :05:48. | :05:54. | |
are keeping an eye on. Switzerland has voted in favour of reining in | :05:54. | :05:58. | |
executive pay. A referendum saw Swiss voters approve a package of | :05:58. | :06:03. | |
measures including a greater say for shareholders in setting pay and | :06:03. | :06:09. | |
a ban on arrival and departure bonuses. There was anger at a plan | :06:09. | :06:15. | |
for a company, Novartis, to give its departing chairman $76 million. | :06:15. | :06:19. | |
Finance ministers from the 17 nations that make up the euro will | :06:19. | :06:24. | |
meet in Brussels today to discuss a bail-out for Cyprus. They have been | :06:24. | :06:28. | |
negotiating to solve their financial crisis. Italy will be an | :06:28. | :06:31. | |
discussion, especially after last week's election, which did not | :06:31. | :06:36. | |
produce a clear winner. Arsenal says its two biggest shareholders | :06:36. | :06:40. | |
are not interested in selling their stakes to investors from the Middle | :06:40. | :06:45. | |
East. A report at the weekend said a bid worth $2.3 billion has been | :06:46. | :06:50. | |
put together backed by firms from Qatar and the UAE. They are | :06:50. | :06:55. | |
currently controlled by the American Stan Kroenke. Jack the | :06:55. | :07:03. | |
America over the weekend. The Warner Brothers movie costs $200 | :07:03. | :07:08. | |
million and it took $28 million this weekend. The Chinese | :07:08. | :07:11. | |
government wants to curb rising home prices and that has hit the | :07:11. | :07:16. | |
stock market today, property shares are down a lot. We can speak to | :07:16. | :07:20. | |
Rico Hizon in Singapore. Always nice to see you. Tell us more about | :07:20. | :07:26. | |
the impact. A big impact, especially on the Shanghai Stock | :07:26. | :07:31. | |
Exchange, which is currently sliding by about 3%. The property | :07:31. | :07:36. | |
index tumbling close to 9%. You have the likes of Chris Banksy, a | :07:36. | :07:41. | |
property giant, Beijing Capital Development, and other property | :07:41. | :07:45. | |
related companies down by 10%. You have Hong Kong property shares | :07:46. | :07:51. | |
being affected. China Resources are down between three to 5%. This | :07:51. | :07:56. | |
comes after the government said that homeowners who sell their | :07:56. | :08:00. | |
homes will be tax to 20% on the profit they make. The state council | :08:00. | :08:04. | |
also said they will allow banks to charge higher interest rates on | :08:04. | :08:10. | |
mortgages. -- taxed. The loss in the Chinese property sector is | :08:10. | :08:17. | |
damaging the stock markets. The retail sector is a major | :08:17. | :08:24. | |
contributor to China's economic growth, directly contributing to | :08:24. | :08:27. | |
10% of the gross domestic product. Tightening the sector has brought | :08:27. | :08:31. | |
in some major concerns on the country's recovery efforts. Apart | :08:31. | :08:37. | |
from the property sector, Sally, all eyes are on the National | :08:37. | :08:40. | |
People's Congress which starts tomorrow. This is where Xi Jinping | :08:40. | :08:45. | |
is expected to be confirmed as president. All eyes on the China | :08:45. | :08:50. | |
market and Chinese politics. Sally. Thank you for joining us. Let's | :08:50. | :08:58. | |
mentioned in Shanghai and in Hong Kong, we are seeing some losses as | :08:58. | :09:03. | |
a consequence of that story. The Hang Seng is down by 1.6%. Another | :09:03. | :09:10. | |
story affecting markets as well, this company, the nominee of Shinzo | :09:10. | :09:16. | |
Abe, the Japanese Prime Minister. - - this man. He is likely to become | :09:16. | :09:21. | |
the new Bank of Japan governor. He said he will do whatever is needed | :09:21. | :09:25. | |
to end 15 years of deflation. He has been talking about his plans. | :09:25. | :09:30. | |
He said Open ended asset purchases could start sooner than next year. | :09:30. | :09:35. | |
It means they are basically going to flush more money into the | :09:35. | :09:41. | |
economy through similar measures to quantitative easing, to try to | :09:41. | :09:45. |