15/05/2013

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:00:03. > :00:13.Lee. Those are the latest headlines from BBC World News. Now for the

:00:13. > :00:21.

:00:21. > :00:24.latest financial news with World Western retailers will line up to

:00:24. > :00:28.sign a landmark agreement to protect the safety of workers in

:00:28. > :00:33.Bangladesh. It has come up with computerised

:00:33. > :00:43.glasses and a driverless cars - all eyes are on Google as it gets ready

:00:43. > :00:49.

:00:49. > :00:54.Also in the programme, the boss of HSBC has just been talking in Hong

:00:54. > :00:57.Kong about his plans for Europe's largest bank. We will have the

:00:57. > :01:00.details. Today is the deadline for retailers

:01:01. > :01:05.to sign up to a landmark plan to help improve workers' safety in

:01:05. > :01:12.Bangladesh. 1,100 people died after a factory making clothing for

:01:12. > :01:18.Western companies died after -- collapsed two weeks ago. 11

:01:18. > :01:21.European retailers have signed up including Swedish clothes seller

:01:21. > :01:25.Hennes and Mauritz, Marks & Spencer and Inditex, the owner of Zara.

:01:25. > :01:29.There is a criticism that many US companies have dragged their feet -

:01:30. > :01:33.Wal-Mart, the largest retailer in the world, has refused to sign

:01:33. > :01:39.because, it says, its own voluntary safety programmes are sufficient.

:01:40. > :01:43.At least 1127 people were killed in Bangladesh when it the plaza

:01:43. > :01:50.collapsed. In the three weeks since, hundreds of factories had been

:01:50. > :01:54.forced to close due to work unrest sparked by the disaster. Some have

:01:54. > :01:59.blamed the fierce competition among the clothing manufacturers, forced

:01:59. > :02:04.to come -- forced to cut costs which resulted in less safety. Is a

:02:04. > :02:11.compensation for this? If we take a 50 pound pair of jeans in Germany,

:02:11. > :02:15.and this is how the price breaks down. 59% goes to the retailer. 16%

:02:15. > :02:20.in sales tax in Germany. 9% is the cost of shipping and transport in

:02:20. > :02:25.the genes from Bangladesh to the shop. The raw materials, mostly

:02:25. > :02:32.denim and buttons, cost 20%. Only 12% is spent on making a pair of

:02:32. > :02:37.jeans. This leaves 4% or two US dollars as the profit for the

:02:37. > :02:42.Bangladeshi producer -- $2. The must majority of close on the

:02:42. > :02:48.Bangladeshi industry come into America and Europe. It is

:02:48. > :02:54.significant for some companies to have signed up for the new safety

:02:54. > :02:57.record. The new Accord was agreed between the International Labour

:02:57. > :03:07.Organisation, unions, and Western retailers. What does it actually

:03:07. > :03:12.mean Tim Lafai it will look at ensuring that ensuring that safety

:03:12. > :03:16.is insured. -- what does it actually mean it?. The companies

:03:16. > :03:20.are actually agreeing to put their money where their mouth is and I do

:03:20. > :03:23.something about it. Will consumers be willing to pay more if they can

:03:23. > :03:33.insure high levels of safety and better working conditions in

:03:33. > :03:35.

:03:35. > :03:38.Bangladesh Tim Lafai --? We will be able to ensure that people are in

:03:38. > :03:43.Vettel living conditions. concern is that people would pay

:03:43. > :03:46.the extra money and it would not go where it is supposed to go. The key

:03:46. > :03:51.question for workers in Bangladesh is whether the new accord will make

:03:51. > :04:01.a difference to conditions on the ground. Some retailers have already

:04:01. > :04:02.

:04:02. > :04:06.agreed to the binding accord, In the last half hour, Vert CEO of

:04:06. > :04:16.HSBC, Stuart Glover, has delivered his strategy for the bank -- these

:04:16. > :04:21.

:04:21. > :04:24.CEO. -- Stuart Gulliver. To sum up Gulliver has reduced costs by $4

:04:24. > :04:26.billion. He's also announced 46,000 job cuts and sold or closed 52

:04:26. > :04:31.businesses to revive earnings. He did deliver reporting better than

:04:31. > :04:35.expected profits earlier this month. So what is next on his hit list?

:04:35. > :04:41.The briefing for the investors has begun. They will brief investors in

:04:41. > :04:46.London later today. Just tell us what you know so far about the

:04:46. > :04:51.plans of HSBC. The key message to investors is

:04:51. > :04:56.that they are staying the course. They had been quite successful,

:04:56. > :05:01.cutting back $4 billion in costs. Bail was no additional cost saving

:05:01. > :05:05.of up to $3 billion. They did not mention job cuts. They have so far

:05:05. > :05:09.already excited after 52 different business plans enclosing Islamic

:05:09. > :05:14.banking in the region, focusing mainly on the core markets such as

:05:14. > :05:20.Malaysia and Saudi Arabia. The growth area, the key focus is still

:05:20. > :05:25.in Asia and that is their strategy at this point in time. The

:05:25. > :05:30.difficulty is that outside Asia, it is weak especially in the retail

:05:30. > :05:34.sector. Outside of the core markets in Asia and the UK, they are still

:05:34. > :05:38.weak. The question for him when he addresses investors later this

:05:38. > :05:40.afternoon in London and also when reporters can ask more questions

:05:40. > :05:47.but certainly the key message is that they are doing something right

:05:47. > :05:51.and they will keep the park. They are on course. As you say, they're

:05:51. > :05:58.at pains to say that as a company, they are now been an simpler. There

:05:58. > :06:02.is an enormous Oval that has gone through in the last few years. --

:06:02. > :06:10.enormous oval hall. The company recognises that it needs to go

:06:10. > :06:15.through all this. They realise that they cannot be everything to

:06:15. > :06:19.everyone. They are recognised that cost-cutting needs to be done. Jobs

:06:19. > :06:26.need to be cut back and it needs to be trim off. They have to refocus

:06:26. > :06:29.on what they are glad. They cannot especially neglect their core

:06:29. > :06:33.markets and they need to refocus in Asia where much of the growth is

:06:33. > :06:38.happening. Thank you for your time. We will keep an eye on that story

:06:38. > :06:48.because it is developing as we speak. HSBC is briefing investors

:06:48. > :06:49.

:06:49. > :06:51.and shareholders in London as well. Other business stories: One of

:06:51. > :06:54.Sony's biggest shareholders has suggested that the Japanese firm

:06:54. > :06:57.should spin off up to 20% of its entertainment business and use the

:06:57. > :07:00.money to shore up its struggling electronics arm. Daniel Loeb,

:07:00. > :07:03.founder of US hedge fund Third Point, put forward the idea in a

:07:03. > :07:06.letter to Sony president Kazuo Hirai.Sony said in a statement that

:07:06. > :07:09.its entertainment division was not for sale. Shares in Sony in Asia

:07:09. > :07:16.jumped over 12% overnight after rising more than 10% on Tuesday in

:07:16. > :07:18.the US. Boeing has resumed delivery of its

:07:18. > :07:21.787 Dreamliner after two incidents involving the overheating of

:07:21. > :07:23.batteries led to a worldwide grounding of the aircraft. The jet

:07:23. > :07:33.was delivered to Japan's All Nippon Airways. The company will restart

:07:33. > :07:38.

:07:38. > :07:44.Most people know it as a means of searching for information on wine.

:07:44. > :07:47.Google is working hard to show that it has other ideas. In the last

:07:47. > :07:51.year, it could be worth nine ambitious products which include

:07:51. > :07:57.Google Glass, which a wearable computer glasses and had been

:07:57. > :08:04.caused excitement in attack world. There is also ester elsewhere. --

:08:04. > :08:08.in the hi-tech world. -- a stir elsewhere. Google is road-testing a

:08:08. > :08:12.self driving cars. Today, they are holding a developer's' conference.

:08:12. > :08:20.There are a lot of rumours. There are rumours about what is in the

:08:20. > :08:25.pipeline. We will speak to a technology expert. Thank you for

:08:25. > :08:30.being on the programme. What you expect Google to reveal today?

:08:30. > :08:34.is a consolidation conference. In the past, you see a big splash in

:08:34. > :08:39.technology announcements about home automation and streaming devices.

:08:39. > :08:43.In the last few years, we have refocus the country on four core

:08:44. > :08:48.products. This will be about looking after the development

:08:48. > :08:54.community. They have the biggest software platform in the world.

:08:54. > :09:00.They have a huge market share with crime and Android. Crime has 40% of

:09:00. > :09:04.the market. This is about keeping them happy -- chrome. There are a

:09:04. > :09:13.lot of rumours that Google will announce a music product or

:09:13. > :09:20.software that could really challenge iTunes and spot a five. -

:09:20. > :09:30.- Spotify. From the consumer's perspective, that will be the big

:09:30. > :09:32.

:09:32. > :09:36.announcement. They have 60% of the market share off. The remit is a

:09:36. > :09:43.�10 per month subscription for music either by a streaming or

:09:43. > :09:50.download servers. It will compete strongly. We must leave it there.