Browse content similar to 03/05/2016. Check below for episodes and series from the same categories and more!
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The company says it has complied with orders. | :00:00. | :00:00. | |
Those are the latest headlines from BBC World News. | :00:00. | :00:07. | |
Now for the latest financial news with Sally | :00:08. | :00:09. | |
Profits slide at Europe's biggest bank HSBC as it faces serious | :00:10. | :00:24. | |
challenges in Europe and China - so what is the outlook for this banking | :00:25. | :00:28. | |
With an election expected in a few months' time, will it be | :00:29. | :00:39. | |
Economic reforms from tax to pensions are key election issues. | :00:40. | :00:46. | |
The Brexit debate - what do those who run small | :00:47. | :00:52. | |
We will hear from one business leader in a moment. | :00:53. | :01:01. | |
But first, global banking powerhouse HSBC has just released | :01:02. | :01:04. | |
It made $6.1 billion, the pre-tax profits figure. That is an over 20% | :01:05. | :01:17. | |
fall compared to the before. It made just under $7.1 billion. 2016 has | :01:18. | :01:24. | |
been a tough year from banks from the big players in the US to date | :01:25. | :01:30. | |
European rivals. -- to their European rivals. It is also banking | :01:31. | :01:40. | |
on growth in China, so is it exposing itself to more pain in the | :01:41. | :01:43. | |
future? With me is Christopher Wheeler, | :01:44. | :01:44. | |
bank analyst at Atlantic Equities. Nice to see you again. Last time we | :01:45. | :01:55. | |
spoke it was all of the big US names reporting, and it was bad news after | :01:56. | :01:59. | |
bad news. What you make of the HSBC numbers? Similar problems in many | :02:00. | :02:06. | |
ways. Their strong this business is commercial banking, and investment | :02:07. | :02:12. | |
banking. Investment banking has been hit ID trading issues we have seen | :02:13. | :02:18. | |
from the US banks. A big focus on Asia in commercial banking where has | :02:19. | :02:26. | |
been so down. -- slowdown. And it's personal banking businesses in the | :02:27. | :02:29. | |
UK and Hong Kong have been hit by the environment. Interesting for | :02:30. | :02:35. | |
HSBC, because it may be an announcement it is keeping its | :02:36. | :02:38. | |
headquarters in the UK, it is still focused on Asia. History is a part | :02:39. | :02:46. | |
of that. And China especially. Yet especially we have seen extreme | :02:47. | :02:48. | |
volatility in markets globally hitting investment bank profits. But | :02:49. | :02:55. | |
for HSBC, it is exposed to China in a different way to its rivals. Is | :02:56. | :03:00. | |
that a good or bad thing? For the last six years, the CEO has been | :03:01. | :03:04. | |
slimming back businesses to improve performance. But the whole premises | :03:05. | :03:10. | |
of this bank is it is such a big player in Asia, especially China. It | :03:11. | :03:14. | |
will continue to focus on China. This has been a difficult time for | :03:15. | :03:20. | |
them. As someone said on one of your TV shows, if Asia is going 5% a | :03:21. | :03:24. | |
year, that is the size of the Belgian economy. He still sees the | :03:25. | :03:29. | |
benefits of being incumbent in that market. HSBC has cut back on jobs | :03:30. | :03:34. | |
and investment in parts of the business. Many rivals doing the | :03:35. | :03:39. | |
same. What is the outlook for ages busy and banks in general for the | :03:40. | :03:46. | |
rest of the year -- ages busy? -- ages busy. Energy companies are | :03:47. | :03:53. | |
still struggling. But in Latin America where the bank has a big | :03:54. | :03:59. | |
footprint, it is trying to reduce it. The low interest rate is still | :04:00. | :04:04. | |
hurting in the UK and Hong Kong retail banking businesses. This is | :04:05. | :04:09. | |
part of the problem, the fact that central banks are keeping rates | :04:10. | :04:13. | |
extremely low or even negative? That's right. It is exacerbated by | :04:14. | :04:20. | |
the fact that HSBC has proffered it can't deploy. It is a nice luxury to | :04:21. | :04:25. | |
have and makes it a strong bag, but another head wind to its | :04:26. | :04:29. | |
profitability. Thank you for your time. The HSBC results literally | :04:30. | :04:35. | |
just. We will look at how the Hang Seng is trading later in the show. | :04:36. | :04:40. | |
When it comes to the EU referendum, the business vote in the UK won't | :04:41. | :04:43. | |
come from the City's boardrooms, but from small enterprises. | :04:44. | :04:46. | |
The majority of UK companies are considered small | :04:47. | :04:48. | |
The BBC's business unit has been scouring the county to hear | :04:49. | :04:51. | |
My name is Bethany. The company and what it's like to run | :04:52. | :05:04. | |
My name is Bethany. The company breeds and distributes medicinal | :05:05. | :05:09. | |
leeches to hospitals run the world. Primarily, they are used in post | :05:10. | :05:15. | |
reconstructive surgery. If you are reiterating a limb or digit SIGGRAPH | :05:16. | :05:19. | |
is or tissue transfer. -- skin graft. Because wages have been used | :05:20. | :05:25. | |
for so long in medicine, we are able to supply them without hassle -- | :05:26. | :05:32. | |
leeches. There is a definite move towards more and more you | :05:33. | :05:38. | |
regulation. There are several medicinal directives coming out in | :05:39. | :05:41. | |
the pipeline. The longer we stay in the EU, the more, located it could | :05:42. | :05:48. | |
get for us. It would mean we potentially face massive amount of | :05:49. | :05:53. | |
paperwork to comply with EU medical device regulations, and that is a | :05:54. | :05:57. | |
considerable cost. It is a considerable addition to your | :05:58. | :05:58. | |
overheads. You can find more from | :05:59. | :06:00. | |
our series EU: Business Talks at We'll find out the state of | :06:01. | :06:03. | |
Australia's finances later today. It's widely expected that | :06:04. | :06:12. | |
the country will go to the polls in less than two months, so economic | :06:13. | :06:16. | |
reforms ranging from tax to pensions Last year's budget deficit swelled | :06:17. | :06:19. | |
to $29 billion That may put | :06:20. | :06:27. | |
its triple-A credit rating at risk. Moody's has warned it could lose | :06:28. | :06:33. | |
that coveted status So how will | :06:34. | :06:36. | |
the government balance the books? Let's go to Rico Hizon. We have | :06:37. | :06:49. | |
missed you. I know where you've been. Tell us more about Australia. | :06:50. | :06:58. | |
According to many economists we have spoken to, definitely the Australian | :06:59. | :07:01. | |
government cannot balance the books with this current budget. When the | :07:02. | :07:07. | |
government makes its announcements, they are saying this budget is all | :07:08. | :07:11. | |
about jobs, growth and living within our means. Scott Morrison, the | :07:12. | :07:16. | |
treasurer, announcing the details later today, which will also double | :07:17. | :07:20. | |
as the unofficial start of an election campaign. What will likely | :07:21. | :07:24. | |
be part of the package are small tax cuts and spending on health, | :07:25. | :07:28. | |
infrastructure and education, and the cost of these will likely be | :07:29. | :07:33. | |
offset by pension changes and closing tax loopholes for modern | :07:34. | :07:37. | |
national companies. The budget is expected to form the backbone of the | :07:38. | :07:41. | |
Liberal coalition manifesto for an election. If Prime Minister Malcolm | :07:42. | :07:46. | |
Turnbull, saying that he will dissolve both Houses of Parliament, | :07:47. | :07:55. | |
calls the election. As both houses are waiting for the budget | :07:56. | :07:58. | |
announcement from the treasurer, minutes ago, the central bank of | :07:59. | :08:03. | |
Australia made an announcement and they have cut interest rates to an | :08:04. | :08:07. | |
all-time low of 1.75%, hoping to head off falling prices after a very | :08:08. | :08:13. | |
low inflation rates during the January -March quarter. This is some | :08:14. | :08:21. | |
development that investors in Australia will be thinking about | :08:22. | :08:24. | |
before the market closes today. So the central bank cutting interest | :08:25. | :08:29. | |
rates to 1.75%. It is all happening today. Thank you. | :08:30. | :08:32. | |
Puerto Rico has defaulted on a $422 million debt payment that | :08:33. | :08:36. | |
was due on Monday, but it won breathing space from some | :08:37. | :08:38. | |
The US territory's governor warned on Sunday | :08:39. | :08:41. | |
the island's financial crisis meant it could not meet the deadline. | :08:42. | :08:44. | |
Puerto Rico has $70 billion of debts. | :08:45. | :08:46. | |
Creditors have agreed to 30 days of talks and hold off | :08:47. | :08:49. | |
Ferrari said it was on course for a record 2016 | :08:50. | :09:01. | |
after posting a rise in profits and sales for the first three months. | :09:02. | :09:05. | |
The Italian maker of sports cars, spun off from | :09:06. | :09:07. | |
Fiat Chrysler Automobiles last year, sold 1,882 cars in the first | :09:08. | :09:10. | |
Let's look at the markets. Those HSBC numbers came in during the | :09:11. | :09:32. | |
lunchtime break in trading. The Hang Seng opened today and is doubt | :09:33. | :09:39. | |
1.13%. HSBC's numbers were below expectations, so we will see how | :09:40. | :09:43. | |
that affects things. This is not the main market but one of those in | :09:44. | :09:48. | |
Australia. As Rico Hizon engine, the central bank cutting interest rates | :09:49. | :09:53. | |
in a surprise move down to 1.75% -- mentioned. The price of oil is | :09:54. | :09:56. | |
heading up. I will see you soon. Thousands of parents across England | :09:57. | :10:03. | |
are expected to keep their children home from school | :10:04. | :10:05. | |
today in a protest about national | :10:06. | :10:09. |