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