31/07/2017 World Business Report

Now it's time for World Business Report.

and looks to push shares higher with a big money share buyback.

-- Banking on big profits - HSBC rakes billions of dollars

and looks to push shares higher with a big money share buyback.

And China cools - the world's second biggest economy saw manufacturing

growth slow last month, fuelling fears that Chinese growth

Also in the programme, we will show you a robot that can

First of all that silly when on the latest numbers coming from Europe's

biggest bank, HSBC, reporting its earnings in the last 30 minutes. It

made a pre-tax profit of $5.28 billion in the second quarter of

this year. A from $4.6 billion the previous time and analysts were

expecting a high number but not as big as that. It announced a share

buyback as many we predict in, looking at $2 billion worth. It

looks to make the most of its huge cash pile. The move will effectively

restrict the supply of HSBC shares in the marketplace of course and so

should lead to the company's value rising. In the past 12 months the

bankers had a good run, the stock price as you can see almost doubling

in value. However this is partly because of the weakness of the pound

which boosted the value of its earnings from outside the UK, which

for HSBC is a substantial sum. With me to discuss this

is Chris Wheeler, a banking analyst HSBC more than delivering

expectations were high but it has done better? These are good figures,

putting things in perspective with HSBC, like all of the banks they are

coming through restructuring and are used to be the world 's local bank

but not any more. They have had to restructure, shut down various areas

and like a lot of the banks also have regulatory issues, fines to

pay, and Stuart Gulliver saw them through it, they were the first into

the problems because they have a lot of sub-prime debt for the first bank

into the problems but equally one of the first to get out of those

problems. The restructure is seen to be working but now they will see the

handover and that is going to be in terms of Stuart Gulliver stepping

down, they will find a replacement. A lot of questions about that

because it's getting a new chair man as well. At Tuccu is coming into

place to replace Douglas went in October and with a lot of questions

hanging over about who will be the chief executive, a lot of change at

the top. HSBC recruit from within so using people who have come through

the system and worked through the whole structure, while Mr Tucker has

a great reputation, he was at AIA, he is seen as more of an outsider.

It shows a change now I've actually how HSBC moves from recovery mode

into continuing to develop into the next stage and it is good, the

buyback is better than we thought. A $2 billion share buyback. Why would

choose to do that? It shows that the bank says we have an amount of

profit or available funds, we could use it for investment and what they

are looking around the world and saying we don't necessarily want to

spend it, or we and paid out as a dividend or buy those shares back in

there for anybody who owns HSBC shares will actually find their

overall share value will go up because the relief available. And

the dividends coming in at 10 cents a share so it's like win- win. It

is, and HSBC traditionally have always been a good shareholder stock

to have. In terms of always paying a regular dividend when they could,

are often times when haven't, but they make sure shareholders onside

but there in mind, this is a British bank but of course it is a global

bank, East effectively in Hong Kong, the clue is in the name, but it sees

itself with the UK base in Birmingham. Of course you have to

look at global lease it's a good reflection as to how the global

economy is doing and recovering and if you look at the bigger pictures

the globe, despite what President Trump likes to say about America,

the global economy isn't to be that bad and HSBC reflects that. Thank

you, Justin. He will be back reviewing our stories in the papers.

Let's talk about the last few days because apparently the world 's best

hackers have been gathering. And if you want to get kudos

from the hacking elite, the best way to do that is with

a daring on-stage demo. And this year, one team

took on a challenge - it cracked open a leading-brand safe

using a cheap robot. Our North America technology

reporter Dave Lee has more. The rest of the 100 people in here

all expecting this team to hack at safe. They are looking kind of

nervous up there! And will focus about a million

combinations, 100 times 100 times 100, this produces that from 1

million down to about 1000 combinations. Doing a demo at DEF

CON is kind of stressful but we are excited.

I'm so excited that we got the safe open, it was one of the scariest

things we have done. It works! Or some! This robot will never go into

someone's home and open the safe, there are a lot more things they

should be worried about but not a robot but yeah, this is a

fundamentally in. -- fun demonstration.

Now let's look at the Chinese economy. New Saturday from the

government suggest that the country's

manufacturing sector - the backbone of its

economy- is slowing. Joining me now from our

Asia Business Hub in Singapore nice to see you. Is it really bad

news or are we talking a blip in July? What do you think? It seems to

be a blip really. As you say, it was the Chinese manufacturing but also

services, purchasing managers into this, they both slipped in July,

that they remained above the 50 point mark that separates growth

from contraction and remarkably investors in this region are seeing

it as a positive sign because it actually lead to stocks reversing

the lacklustre slump they have been in all morning after the news was

out. The official purchasing in death metaphor index is 1.4 which

was down in June, the data suggests over the world 's second-largest

economy will call the coming months as borrowing costs rise and

regulators they are clamping down on lots of risky financing and this

despite the fact that China posted much stronger than affected economic

growth of 6.9% in the first half and that was really thanks to a

year-long construction boom we saw robust exports, retail services as

well, and all of that indicate that it is a fairly mixed picture for

China but markets here are seeing good things. Thank you. Good to see

you. Tech giant Apple has come under

criticism after it removed some software from its app store in China

that allows users to get around tough restrictions

on internet access. The change comes after the Chinese

government announced a crack down on virtual private

networks - known as VPNs. They are used to find ways around

China's filters and restrictions on access to certain

websites within its borders. The British finance minister or

chancel of the exchequer if you prefer Philip Hammond has suggested

the UK will not cut taxes and regulations after Brexit to try to

undercut European rivals. The remarks in an interview with the

French newspaper Le Monde contradicts what he said in an

interview with the German newspaper earlier this year. Will talk about

that in a bit more detail than we do review some of the stories in papers

in a few minutes. Quickly to the markets.

Japan is flat at the moment. Basically what it's all about, many

commodity prices are on the way up, particularly oil, so mining stocks

are doing well and energy companies doing rather well. That's how things

ended last week in the United States. In a minute for the News

review. -- back in a minute. HIV testing should be offered

to patients when they register with a new GP in areas

where there are high rates of infection, according

to new research.