:00:00. > :00:00.Now for the latest financial news with Sally and World Business
:00:07. > :00:20.A shock drop in profits at Europe's biggest bank -
:00:21. > :00:23.HSBC says pretax profits dived 62% compared to the year before.
:00:24. > :00:38.And he started out on the shop floor - now Natarajan Chandrasekaran
:00:39. > :00:47.is running India's biggest company - so what will the new boss bring?
:00:48. > :00:50.Hello and a very warm welcome to World Business Report.
:00:51. > :00:54.In a minute we'll have the latest installment in our series disability
:00:55. > :01:05.full year results for banking giant HSBC.
:01:06. > :01:11.Net profit fell 62% from the previous year,
:01:12. > :01:13.the bank calling it a period remembered for its "largely
:01:14. > :01:19.unexpected economic and political events".
:01:20. > :01:22.The net profits therefore only of $7.1 billion compared with $18.87
:01:23. > :01:25.recorded in 2015, with group chairman Douglas Flint saying
:01:26. > :01:26.geopolitical changes contributed to "volatile
:01:27. > :01:40.Last year it agreed to pay $1.6 billion to end
:01:41. > :01:43.a class action lawsuit over its involvement in the US
:01:44. > :01:45.sub-prime mortgage scandal during the financial crisis.
:01:46. > :01:47.It's also facing pressure to tighten up
:01:48. > :01:50.US regulators have said HSBC has made some progress,
:01:51. > :01:55.And all this comes as the bank closes an additional 62 branches
:01:56. > :01:59.in the UK on top of the 55 announced last year.
:02:00. > :02:02.And it also tries to recover from the reputational damage caused
:02:03. > :02:08.by being found guilty of taking part in an interest rate fixing scheme.
:02:09. > :02:10.That's just a few issues to highlight.
:02:11. > :02:13.With me is Chris Wheeler, Banking Analyst, Atlantic Equities
:02:14. > :02:20.Good morning. These numbers do not sound good at all. Shares in Hong
:02:21. > :02:25.Kong at the moment down 3.5%. Gives you take. I think they are messy
:02:26. > :02:31.numbers as you touched on in your introduction. Lots of unusual items.
:02:32. > :02:38.They have also put through some more structuring costs, which are bit
:02:39. > :02:42.more than kitchen sinking, getting into a bad quarter. But they have
:02:43. > :02:47.been difficult market conditions. Looking forward, I think that the
:02:48. > :02:52.shares are down because they announced two and a half billion
:02:53. > :02:56.dollars worth of buyback in shares, and people were expecting the same
:02:57. > :03:02.this year. They have only announced 1 billion so far. So disappointed in
:03:03. > :03:09.the buyback size. That is all the dirty laundry out? That is a
:03:10. > :03:13.difficult one. HSBC has a big split in businesses, and it is difficult
:03:14. > :03:17.to keep track of every dedicated before the crisis. I think they are
:03:18. > :03:21.getting there. They have made some progress. This has been their
:03:22. > :03:27.biggest restructure since 2012, but now people want is he simply numbers
:03:28. > :03:33.going to 2017, as they do. Also people want to know who will be
:03:34. > :03:38.leading the bank. The chairman is retiring. And also Stewart governors
:03:39. > :03:42.to move on. What is to happen in terms of succession? -- in terms of
:03:43. > :03:46.succession? This to a very important, particularly at HSBC, and
:03:47. > :03:53.they need a chairman well-connected, a strong individual. This is a 24/7
:03:54. > :03:57.job. This is not just turning up very far support once a month. HSBC
:03:58. > :04:02.has always got an internal candidate. There are one or two
:04:03. > :04:05.there, but there has been a lot of talk again about it may be being an
:04:06. > :04:10.external candidate that brings the fresh view to this bank. Talking
:04:11. > :04:14.about its size, we talked about the fact that it is reducing the number
:04:15. > :04:19.of branches, significantly, in the UK. This is all part of its massive
:04:20. > :04:24.restructuring. But give us your take on how that is going and when we
:04:25. > :04:28.will see the of that. This is not just restructuring the UK. They have
:04:29. > :04:32.not done badly in the UK. Our economy has been OK. The issue there
:04:33. > :04:38.is digitisation. We are using phones and laptops to do our banking. We
:04:39. > :04:43.saw BankAmerica in the United States ( just last week. This is the way we
:04:44. > :04:48.are going. This is not just HSBC. We are seeing branches closing over the
:04:49. > :04:51.world and this will increase with the adaptation to a new paradigms.
:04:52. > :04:56.Thank you for joining us this morning Chris. As a mention, their
:04:57. > :05:02.shares are down in Hong Kong, and they will start trading in London,
:05:03. > :05:11.as well, and if you hours. -- in a few hours.
:05:12. > :05:13.The new Chairman of Tata Group, Natarajan Chandrasekaran,
:05:14. > :05:16.work today ending one of India's most public boardroom spats.
:05:17. > :05:19.A bitter feud was sparked when his predecessor Cyrus Mistry
:05:20. > :05:23.Tata owns more than a hundred companies and is one
:05:24. > :05:27.And of course it owns many key assets around the world.
:05:28. > :05:31.So what are the key issues the new boss will have to tackle?
:05:32. > :05:38.Seeking divine help, this man is all set to lead one of the oldest and
:05:39. > :05:42.biggest businesses in India, the Tata group. He is the first person
:05:43. > :05:47.from the fluent Parsi community to be appointed to the post. After an
:05:48. > :05:54.acrimonious stand-off with its foremost head, it will be huge shift
:05:55. > :05:57.here at the Tata group headquarters. Natarajan Chandrasekaran is an
:05:58. > :06:00.insider who spent his entire professional life within the group.
:06:01. > :06:05.He is popular amongst employees and has long been the favourite for the
:06:06. > :06:08.role. But it is widely accepted that the task ahead of him is nothing
:06:09. > :06:14.short of monumental. The Tata group has interests raising from steel and
:06:15. > :06:17.cars to soil NT. But many of its businesses have been struggling in
:06:18. > :06:25.recent years. Luxury carmaker Jaguar Land Rover and IT services have
:06:26. > :06:31.struggled. They account for more than half of the group's revenues.
:06:32. > :06:35.So Mr Natarajan Chandrasekaran first challenge will be to reduce
:06:36. > :06:38.dependence on these two businesses and turnaround others. His second
:06:39. > :06:42.big challenge will be making a decision about the future of Tata
:06:43. > :06:47.Steel in the UK, where it has suffered heavy losses. A recent
:06:48. > :06:50.ballot by union workers backed a rescue package that Tata Steel
:06:51. > :06:56.offered its British operation, moving towards saving Britain's
:06:57. > :06:59.largest steel producer. With over 100 group companies, many analysts
:07:00. > :07:02.and pay the Tata group to a lumbering of it, but Mr Natarajan
:07:03. > :07:08.Chandrasekaran has the experience of creating the mammoth IT services
:07:09. > :07:09.firm, TCS. Many hope he has the similar success with the
:07:10. > :07:18.conglomerate. Toshiba reportedly wants to raise
:07:19. > :07:25.nearly $9 billion by selling a majority stake in its
:07:26. > :07:27.lucrative chip business. The troubled Japanese company
:07:28. > :07:31.is under pressure to raise money after cut the value
:07:32. > :07:34.of its US nuclear business This week we've been focusing
:07:35. > :07:43.on disability in the workplace - Today we take you to: Brazil,
:07:44. > :07:47.a country which last year received its highest number
:07:48. > :07:49.of foreign visitors due But for tourists with mobility
:07:50. > :07:53.issues, Brazil is often seen as a poor choice of destination
:07:54. > :07:56.as it lacks basic infrastructure Campaigners say the country
:07:57. > :08:01.is missing out on billions of dollars of business
:08:02. > :08:19.opportunities, but one man TRANSLATION: I can face problems and
:08:20. > :08:23.find solutions for them. I am on the frontline, so I can go all sorts of
:08:24. > :08:25.problems so that others do not have to go through any trouble. So that
:08:26. > :08:59.problems only happen to me. Brazil still has very precarious
:09:00. > :09:03.conditions. No one sees a person with disability as being a consumer.
:09:04. > :09:09.I once had a request from Israel fought 22 tourists who want to come
:09:10. > :09:12.to Brazil. Ten of them were in wheelchairs. No transport company in
:09:13. > :09:17.Brazil has the capability of moving ten people in wheelchairs. Here in
:09:18. > :09:24.Sao Paulo, no hotel would have that many people at the same time. But
:09:25. > :09:28.one tool I offered in France come takes 14 people in wheelchairs. They
:09:29. > :09:36.use the same bus, standards and hotel, and do all tours together at
:09:37. > :09:42.the same time. -- stay in the same hotel. Because other companies have
:09:43. > :09:51.this vision, the earned billions of dollars servicing this niche. --
:09:52. > :09:54.other countries and billions of dollars servicing this niche.
:09:55. > :09:58.And that is all from World Business Report. I was here in a moment for
:09:59. > :10:09.the World News review. You then. A shortage of teachers in England's
:10:10. > :10:16.schools is getting worse,