Browse content similar to 03/08/2016. Check below for episodes and series from the same categories and more!
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A fresh beating on European banks as the strain of negative interest | :00:00. | :00:21. | |
rates and that lingering crisis in Italy weigh heavy. | :00:22. | :00:23. | |
And today Europe's biggest - HSBC - tells us it's making less money | :00:24. | :00:29. | |
as it shrinks its operations around the world. | :00:30. | :00:40. | |
and making it easier to do business across the country. | :00:41. | :00:45. | |
It's one of the biggest economic changes since the end of the Raj. | :00:46. | :00:49. | |
will it boost the fastest growing economy in the world? | :00:50. | :00:55. | |
Let's start with the global waking giant HSBC. Not good at all. | :00:56. | :01:28. | |
Global Banking giant HSBC has just released its latest set of results. | :01:29. | :01:31. | |
The bank is the latest major player to take a financial hit this year. | :01:32. | :01:41. | |
They are the latest financial player to take a big hit. | :01:42. | :01:45. | |
Top of the list - billions of dollars in fines for everything | :01:46. | :01:50. | |
from rigging rates to doing business with blacklisted countries, | :01:51. | :01:52. | |
laundering money and charging consumers for services | :01:53. | :01:55. | |
Low and negative interest rates across Europe have also | :01:56. | :02:02. | |
Low rates make it much harder for banks to make money | :02:03. | :02:06. | |
because they decrease the margin that can be charged on a loan. | :02:07. | :02:11. | |
Since the financial crisis banks have also had to hold much more cash | :02:12. | :02:16. | |
If they are storing it they can't lend it and if they can't lend it | :02:17. | :02:24. | |
Finally - investors and businesses have been spooked by the UK's | :02:25. | :02:30. | |
decision to leave the EU and the Chinese economic slowdown. | :02:31. | :02:32. | |
Companies are much more likely to hold off borrowing for a big | :02:33. | :02:37. | |
project if they believe the economy is in poor health. | :02:38. | :02:43. | |
Mark Dunne is Head of Research at investment service company AJ-Bell. | :02:44. | :02:50. | |
Great to have you with us. Welcome to the programme. It is a pleasure | :02:51. | :02:59. | |
having you with us. Quickly, we said everything about HSBC, kind offer. | :03:00. | :03:03. | |
They are just an example of what is going on. There has been | :03:04. | :03:07. | |
restructuring. I have had to put their hand in their pocket, make | :03:08. | :03:12. | |
redundancies, pay off things. They all seemed to be in a turnaround or | :03:13. | :03:18. | |
refocusing position. HSBC, once the world 's largest bank, no longer the | :03:19. | :03:23. | |
case, now focused on population growth. Asia, Middle East, Africa. | :03:24. | :03:27. | |
They are focused on selling more products to consumers in those | :03:28. | :03:31. | |
markets. They will be a lot of job cuts, plans to cut 50,000 people | :03:32. | :03:38. | |
from the workforce. But billion-dollar 's worth of costs by | :03:39. | :03:41. | |
the end of next G, plans to get that. 50,000. -- end of next year. | :03:42. | :03:56. | |
Last year, we had the stress test. That was last week. These early | :03:57. | :04:03. | |
shows are doing my head in. A lot of failures amongst the European banks | :04:04. | :04:07. | |
for the stress test but untrained in a sense for the audience around the | :04:08. | :04:10. | |
world, what is the difference between the European banks and the | :04:11. | :04:14. | |
American banks? The American banks are doing pretty good. Europe is not | :04:15. | :04:20. | |
so. A couple of reasons. American banks have had their act together. | :04:21. | :04:25. | |
European banks have had to pay out a lot of costs. The American banks, | :04:26. | :04:31. | |
the worst seems to be over for those. They have done the hard work. | :04:32. | :04:40. | |
Whereas the Europeans were less aggressive in solving the problems. | :04:41. | :04:48. | |
You talk about aggression, forget caged fighting, boxing, if you want | :04:49. | :04:52. | |
to see real fighting, speak to an investor. We should make that a | :04:53. | :04:57. | |
television show! We talked about the Italian banking, that has cropped up | :04:58. | :05:03. | |
a lot. It is in a mess. Some say there is a looming crisis. I'm | :05:04. | :05:08. | |
wondering, we say the word Italy or Italian, if they get into a mess, we | :05:09. | :05:13. | |
all feel bad? There will be a knock-on effect. If some of the | :05:14. | :05:18. | |
biggest banks in Europe, HSBC, if they are struggling, we will have a | :05:19. | :05:23. | |
knock-on effect. If you get banks in Italy needing the Italian government | :05:24. | :05:26. | |
to put their hands in their pockets to stop them from collapsing, in | :05:27. | :05:32. | |
uncertain times, lower demand for low growth. Uncertain times, | :05:33. | :05:39. | |
turbulent times. On a cheery note, we will leave it there. Thank you | :05:40. | :05:43. | |
very much, mate. Mark Dunne from AJ-Bell. | :05:44. | :05:44. | |
It's one of the biggest financial reforms since India achieved | :05:45. | :05:52. | |
independence from Britain nearly 70 years ago. | :05:53. | :05:54. | |
The Goods and Services Tax aims to simplify the way the country does | :05:55. | :05:57. | |
The tax will turn India into a single national market. | :05:58. | :06:02. | |
The upper house of parliament is expected to vote today | :06:03. | :06:04. | |
on whether to introduce the tax - which could boost economic growth | :06:05. | :06:07. | |
But the government doesn't enjoy a majority in the upper house so it | :06:08. | :06:12. | |
has been trying to win over the opposition and reach a political | :06:13. | :06:15. | |
Is that the parliament behind you? Before we talk about the government, | :06:16. | :06:31. | |
can they? Will they? Weekday? Can you X plane to ask -- can you | :06:32. | :06:43. | |
explain to us, I have to pay tax in each state I pastor if I am a truck | :06:44. | :06:50. | |
driver? Absolutely. Experts say the business loss is about five to 10%, | :06:51. | :06:54. | |
just because of high taxes and the kind of delays that you face on the | :06:55. | :06:58. | |
highway because the truck will take forever to reach from one end to the | :06:59. | :07:02. | |
other. But it only consumer gets it, you have paid so many different | :07:03. | :07:03. | |
taxes. You had a strap that had Mumbai, you | :07:04. | :07:13. | |
are not in Mumbai, you are in Delhi. We apologise for that. The debate, | :07:14. | :07:19. | |
can they get this past? What we know about India, there is a lot of red | :07:20. | :07:21. | |
tape. Absolutely. This is crucial for the | :07:22. | :07:29. | |
ruling government. It has taken forever. It was introduced by the | :07:30. | :07:33. | |
previous government, there has been ten years for a ticket a draft stage | :07:34. | :07:39. | |
to a debate at this place. -- -- for it to get. It went until late | :07:40. | :07:46. | |
yesterday. Today, we had the Finance Minister is hopeful of getting it | :07:47. | :07:49. | |
through. It will be a historic reform for India. We'll talk you | :07:50. | :07:54. | |
very soon. Let's keep our fingers crossed. | :07:55. | :07:57. | |
A lawsuit has been filed against the makers of Pokemon Go | :07:58. | :08:00. | |
over players trespassing on private property. | :08:01. | :08:11. | |
Rico using Singapore. This is a story from the states? What is going | :08:12. | :08:32. | |
on? It is unbelievable how far a comment Goyder players will go to | :08:33. | :08:38. | |
capture these players. Even in the people 's homes. -- how far Pokemon | :08:39. | :08:49. | |
Go players will go. There is a lawsuit against Nintendo, Pokemon | :08:50. | :08:56. | |
Go. This game has been huge since it was launched a month ago. They have | :08:57. | :09:02. | |
shown a flagrant disregard without seeking the permission of property | :09:03. | :09:07. | |
owners. A number of locations, such as the Hiroshima peace Memorial Park | :09:08. | :09:11. | |
in Japan, has to be removed from Pokemon Go. A museum in America | :09:12. | :09:18. | |
asking them to not play Pokemon Go during their visit. During this | :09:19. | :09:23. | |
excitement, Nintendo says the game will have a limited impact on its | :09:24. | :09:28. | |
bottom line. Last week, earnings showed more hefty losses for | :09:29. | :09:31. | |
Nintendo and that is where we saw the stock price of Nintendo dropped | :09:32. | :09:36. | |
double digits. Indeed. Does your son play it? No. It is still not here in | :09:37. | :09:44. | |
Asia. It is in Australia. In Japan, still not in Singapore or other | :09:45. | :09:47. | |
south-east Asian countries. You are missing out! I am missing out the | :09:48. | :09:53. | |
fun. I will have a word. I will have worked Nintendo in a crop that game. | :09:54. | :09:57. | |
I love how we do a story of the United States and to go to Singapore | :09:58. | :10:02. | |
to do that story. And Nintendo is a Japanese company. Let's look at the | :10:03. | :10:03. | |
market. The Nikkei is down. Investors are | :10:04. | :10:20. | |
not so pleased. When Japanese government announced the stimulus | :10:21. | :10:28. | |
package, about $270 billion. The biggest spending package in Japan | :10:29. | :10:32. | |
since the financial crisis in 2009. Throwing more money at the problem | :10:33. | :10:35. | |
will not fix it. Tweet me @bbcaaron. | :10:36. | :10:40. |