:00:00. > :00:00.Now for the latest financial news with Sally
:00:00. > :00:22.Europe's largest bank reports a surprise 32% rise in profits,
:00:23. > :00:25.but what does it mean for the future of HSBC's
:00:26. > :00:29.And is Fitbit losing the race in the wearable health tech sector?
:00:30. > :00:31.The competition is gaining ground but will it impact
:00:32. > :00:45.Also in the programme China adjusts to the "new normal",
:00:46. > :00:53.we'll have the latest manufacturing data and it's another contraction.
:00:54. > :00:58.I am afraid the information is going in the wrong direction, once again.
:00:59. > :01:00.HSBC has just reported its third quarter results and pre-tax
:01:01. > :01:03.profit was up 32% to $6.1 billion dollars from a year earlier.
:01:04. > :01:06.The main reason for the rise, reduced costs from fines.
:01:07. > :01:08.Remember, this is the first update since
:01:09. > :01:10.substantial cost-saving measures were announced back in June.
:01:11. > :01:14.And then there's the question of moving the headquarters
:01:15. > :01:18.Back in April, Britain's largest bank said it would begin a review
:01:19. > :01:30.of whether or not to stay in the City or move back to Asia.
:01:31. > :01:39.With me is Gemma Godfrey Investment Director, at Moo.la.
:01:40. > :01:46.You have looked at the numbers and the report, what do you make of
:01:47. > :01:49.them? It is interesting that revenues fell because they are so
:01:50. > :01:53.exposed to the Asian market to. Two thirds of their earnings are
:01:54. > :01:56.generated in Asia and the plunging stock market there meant it impacted
:01:57. > :02:07.their topline. The fact that they have done these cost cuttings, their
:02:08. > :02:12.compliance costs have risen while the rest has fallen has had an
:02:13. > :02:16.impact on their bottom line. All of those massive hits because of the
:02:17. > :02:20.barriers come of the inflation issues and so forth, that is getting
:02:21. > :02:25.less and less, but in terms of the cost savings they announced, none of
:02:26. > :02:29.that is in these numbers now. When will we start to see that the impact
:02:30. > :02:33.on the earnings in the future? They only announced in June that they
:02:34. > :02:38.were going to cut 25,000 jobs, so we are yet to see those follow-through
:02:39. > :02:40.into the numbers. If we take a step back and look at the banking
:02:41. > :02:43.industry as a whole, there are three things investors are looking at.
:02:44. > :02:50.Where's the growth going to from? Because revenues fell HSBC, we are
:02:51. > :02:52.still uncertain. Secondly, how are they going to cut costs? They have
:02:53. > :02:54.given the plans and see that through. Thirdly is how
:02:55. > :03:12.they're going to raise into it. We're not expecting an
:03:13. > :03:12.announcement this year but looking at
:03:13. > :03:19.did recently announced that they were going to be moving
:03:20. > :03:26.their investment banking relations back to Hong Kong and the reason for
:03:27. > :03:31.that is twofold. Reduced costs but also they want to reduce regulatory
:03:32. > :03:38.costs and to reduce the tax burden as well.
:03:39. > :03:42.less of a burden elsewhere, but with the banking moving, it does remove
:03:43. > :03:49.the impetus to do more of their operations in other areas. For
:03:50. > :03:59.international viewers, there is a levy imposed by the UK government on
:04:00. > :04:03.profits made in the UK by banks? It is going to go over in the next few
:04:04. > :04:07.years. That was a big amount of money going straight to the UK
:04:08. > :04:11.government. Absolutely and the thing about that is it comes back to being
:04:12. > :04:16.competitive. The argument of HSBC was, they are being penalized in a
:04:17. > :04:23.way that other international banks aren't. Thank you. Those of the
:04:24. > :04:27.numbers of HSBC which is come out in the last half-an-hour. We will be
:04:28. > :04:29.keeping you up-to-date with how the shares perform in light of this
:04:30. > :04:34.figures. -- those. Technology has made life easier
:04:35. > :04:36.in lots of different ways especially for those of you who are
:04:37. > :04:40.aiming to be healthy and active. Wearable tech keeps track of
:04:41. > :04:42.activity levels, calorie intake and even sleep - and the most popular
:04:43. > :04:46.brand on the market is Fitbit. Competitors are creeping in and
:04:47. > :04:50.in a few hours' time Fitbit will release its latest financial results
:04:51. > :04:52.which will give us an indication of the company's ability to stay
:04:53. > :05:14.ahead of the pack. Few electronic gadgets have caught
:05:15. > :05:18.on with people as fast as Fitbit. These devices help you to track your
:05:19. > :05:21.fitness eye measuring the number of stairs you have climbed, the
:05:22. > :05:26.distance you have walked and how much sleep you have had. 20 million
:05:27. > :05:32.of them are now sold annually. Last June, Fitbit floated its shares in
:05:33. > :05:38.New York and the price soared from $20 to over $50 but then fell back.
:05:39. > :05:41.Some investors seem to be having second thoughts about Fitbit's
:05:42. > :05:44.supposedly positive future. They arrived on the market with a very
:05:45. > :05:51.good packaged product at the right time. That so many other companies
:05:52. > :05:54.have now entered the market with similar products packaged in similar
:05:55. > :05:58.ways and there's come addition from very large organizations such as
:05:59. > :06:00.major sportswear manufacturers, not to mention the smartwatch and
:06:01. > :06:06.smartphone manufacturers who have got in on the space as well.
:06:07. > :06:11.Fitbit's two biggest challenges are a Chinese firm which sells a
:06:12. > :06:17.cutprice device and Apple which has the fitness monitoring app in its
:06:18. > :06:21.smartwatch. In summer of last year, Fitbit was still the clear leader of
:06:22. > :06:28.its field with 30% of the market. Apple had no share of it and neither
:06:29. > :06:34.had the Chinese version. Now Fitbit has sunk to 24% and Apple has 20%
:06:35. > :06:39.and the Chinese version has 17%. Does that mean Fitbit is in danger
:06:40. > :06:44.of being overtaken or can it rely on the name and has established? Fitbit
:06:45. > :06:48.has become synonymous with fitness trackers in general. When people, to
:06:49. > :06:53.me and see I am wearing all these different devices, the question is
:06:54. > :06:56.whether these are my Fitbit devices? So they have become household names
:06:57. > :07:02.just like Go-Pro has become synonymous with a wearable camera.
:07:03. > :07:10.The central strategy of Fitbit has been to build enough of a brand
:07:11. > :07:11.recognition amongst fitness fanatics that it maintains its place in the
:07:12. > :07:15.wearable technology world. We've had manufacturing data out
:07:16. > :07:18.of China and it's fallen Sharanjit Leyl is
:07:19. > :07:32.in our business hub in Sinapore. Tell us more about this. It is
:07:33. > :07:38.interesting in light of what happened last week and China
:07:39. > :07:44.desperately trying to, with a plan to reverse this trend -- trying to
:07:45. > :07:47.determine a plan. You have summed it up. This is the latest government
:07:48. > :07:52.survey and it is watched very closely. It is a gauge of how the
:07:53. > :07:57.manufacturing industry is doing in China. It is showing a reading of
:07:58. > :08:01.49.8 for October. We know any figure below 50 indicates that factory
:08:02. > :08:11.activity has contracted and that has been several months now. 'S shortly
:08:12. > :08:16.after the release, a private survey pretty much reiterated this --
:08:17. > :08:25.shortly. It to the index at 48.3. It is often considered more accurate as
:08:26. > :08:33.tiny statistics from the government can often be viewed with skepticism
:08:34. > :08:37.-- it has shown. They are growing at the weakest rate since the financial
:08:38. > :08:40.crisis and over the summer, we reported a lot about the stock
:08:41. > :08:47.market slump which impacted many other markets globally and indeed,
:08:48. > :08:52.the slowdown that was seen in demand generally. In fact, the government
:08:53. > :08:57.is tried to move away, really, from being an export led economy to being
:08:58. > :09:02.a consumer services lead one. This has all been an adaptation, at
:09:03. > :09:12.keeping issue according to many experts -- a teething issue. They
:09:13. > :09:15.have cut rates five times in the last year. Thank you.
:09:16. > :09:18.In other news: Chipotle Mexican Grill has temporarily closed 43
:09:19. > :09:20.restaurants in Washington state and Oregon while authorities
:09:21. > :09:25.People who ate in six Chipotle restaurants are among 20 cases of E.
:09:26. > :09:28.The fastfood chain said it was acting with
:09:29. > :09:31."an abundance of caution" as most of the 43 outlets were unaffected and
:09:32. > :09:40.Martin Blessing, chief executive of Commerzbank,
:09:41. > :09:45.Mr Blessing has been in charge since May 2008 and had been asked
:09:46. > :09:48.by the bank to stay on but he said it was a good time
:09:49. > :09:52.Mr Blessing helped Germany's second largest lender recover after
:09:53. > :10:07.the financial crisis and turned around its financial fortunes.
:10:08. > :10:13.Markets across Asia have been hit quite hard by the news that was
:10:14. > :10:18.mentioned recently. Markets in Japan are down around 1.5%. That is all
:10:19. > :10:24.from the, see you soon. Prime Minister David Cameron has
:10:25. > :10:27.unveiled new measures to speed up As well as cutting red tape,
:10:28. > :10:31.councils will be challenged to