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tv   Business Briefing  BBC News  February 20, 2018 5:30am-5:46am GMT

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this is business briefing. i'm sally bundock. here are the headlines. pre—tax profits more than double at europe's biggest bank as hsbc leaves its problems firmly in the past. and british billionaire richard branson tells us hyperloop technology can be the giant step forward that india needs to connect its cities. and on the markets: hsbc isjust hsbc is just about to reopen from its lunch break. sorry, hang seng in hong kong. we will see how hsbc shares trade fair. a fairly mixed day with japan down after a very strong monday. let's bring you the details on
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your‘s biggest bank. —— europe's biggest bank. europe's biggest bank, hsbc, has reported a big jump in profits for last year. but it's mainly because it's been able to shake off the huge costs the company has faced in restructuring after a string of problems. it means there will be a strong base to build on when the new chief executive, john flint, takes the reigns from stuart guillver on wednesday. the numbers show that hsbc made a pre—tax profit of $17.2 billion for the calendar year of 2017. that's up a massive 1a1% on the $7.1 billion in made the year before. however, it's still below expectations. the bank says adjusted pre—tax profit of $21 billion gives a better idea of how the business is performing. it excludes one—off items and foreign exchange losses and was up 11% on a year ago. the bank's desire to focus more on asia, including expanding in china, is paying off too with 75% of profits now coming from the region. but despite these good numbers, the bank continues to have problems with the authorities. just injanuary, they agreed to pay
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$101.5 million to the us authorities to settle claims of rigged currency transactions. it also meant the bank entered into a dpa, that's a deferred prosecution agreement with the us — a kind of corporate probation period, just a month after a previous 5—year arrangement ended. bill blain is a strategist at the investment firm mint partners. good morning. you have been chewing over the numbers. give us your take. the numbers are a fractional myths, but it is where hsbc goes from here. for the last seven years, hsbc has he managed to avoid regulatory conflict. they have had a whole series of issues relating to their mexican operation and recently the other scandal. may they are finally getting over that and continue the
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process of managing the bank for returns. it has also changed dramatically in the last ten years but it is no longer the world's local bank, it is very much focused on asia. it can do that very well given its history. in hong kong, shanghai, banking corporation. that is where it started out. its roots are certainly in asia and it has been able to grow on the back of that. it is also in the right place just now for growth. it is interesting to see that all its regulatory problems have been in the us and in europe. they haven't had any of that backlash against them in asia. is that something that can come in the future when they catch 7 come in the future when they catch up? when a bank becomes very focused on one particular thing, one predicted —— particular product in one area, it raises potential risks. people like with bank investments is to make them dull, boring and ridicule. in the past, hsbc achieved all of these in absolute spades. ——
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predictable. it has been more exciting the last couple of years. they still face a number of challenges, they are still your‘s biggest bank. that potentially makes them a target for us regulators if we have any further rejectionists that and they are so big, even in places like the uk, turning them around and introducing new technology which customers want ta kes a technology which customers want takes a long time. they have that challenge for sure. let's talk about the change at the top. something has beenin the change at the top. something has been in place for a while. the handover has been going on for a while. what do we know aboutjohn flint? he is a life, he had been there a long time. that was a very smart decision. they have brought in for the first time ever and external chairman because investors had been pushing for a long time that hsbc‘s jean paul was limited and they needed to bring in other people in order to broaden its base —— gene pool order to broaden its base —— gene
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pool. they also have the core genetics of the bank contained by keeping somebody likejohn genetics of the bank contained by keeping somebody like john flint genetics of the bank contained by keeping somebody likejohn flint in place. it is going to be interesting to see how he performs. i was intrigued by the stuart gulliver —— comment about being stronger. where they take it from here will be interesting. we shall watch this space. thank you for coming in and giving us your analysis so early in the morning. let's turn our attention to india. many countries regard the sheer size of the population — about 1.3 billion people — as a reason to boost trade ties. and canada isn't much different. prime ministerjustin trudeau is there this week and in a few hours' time, is set to meet business leaders in mumbai. suranjana tewari is there for us. just tell us a bit more about this trip and how important it is to justin trudeau. we are not expecting
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any major announcements from his visit to mumbai today, but he is already met a lot of prominent indian business ceos like mahindra. he will be making a speech to a former business leader at later today and there are 150 canadian companies in mumbai today as well. they are hoping to expand their business dealings with india, possibly set up business and farm —— form joint partnerships with indian businesses. india is a big market for canada. they have had a long relationship, mainly because of the number of indians who had emigrated to canada. i have also got trade deals worth $8 billion last year. mainly in products like agricultural product like beans and lentils that come from canada to india. the prime minister has said that he wants to increase investment with india and also expand ca nada's
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increase investment with india and also expand canada's business deals with india during this trip. 0k. thank you very much indeed. thank you for all the latest onjustin trudeau's trip. now, let's brief you some other business stories. in your‘s government has signed an agreement with richard branson's virgin hyperloop one that can cut three hours from the journey time between woombye making them just minutes apart. is the theory a reality soon? there will be naysayers at the start of any new industry and they are right to be naysayers until we have actually proven them wrong. the upside of it is gigantic. trains made a very big difference to india in the last century. i believe that hyperloop will be the giant step forward that
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india needs. it can connect most of the major cities in india in well under two hours. you have to make sure the cost is reasonable, especially countries like india where basic trends or patient and infrastructure is still an issue. a lot of governments see the process as too high and might get turned off. the cost will be private money. the cost of the passenger will be competitive with any high—speed train and we believe quite a lot less. we think we can build it for a lot less tha n less. we think we can build it for a lot less than you can build a high—speed train. therefore, we should be able to charge less. recently your friend and rival airline mask launched a rocket. you said you are a bitjealous after that —— elon musk. will it be this year as you said earlier?|j that —— elon musk. will it be this
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year as you said earlier? i would be very disappointed if it is not this year. for other people, we will have oui’ year. for other people, we will have our brave test pilot going up and i will go up. will we see you going up if that happens? i would obviously love to go up this year, so we will see how it goes. you have been trying to do this for a long time. as elon musk really increased the pressure? in this business, there must be no pressure. we have spent 12 years getting this far. we will not rush unnecessarily to be the first to put people into space. if we happen to be the first to put people into space, i am sure, i'm hope elon musk will do the same! with see how it goes. the reason he hasn't put people into space it is he wants to be sure of their safety. that is richard branson there now. let's brief you on other business stories. hundreds of kentucky fried chicken's 900 restaurants across the uk
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are expected to remain closed today because of a lack of chicken. they've been struggling to deliver supplies chain switched its delivery contract to dhl last week. kfc says its unclear when the problems will be rectified. —— kfc says it's unclear when the problems will be rectified. staff are being encouraged to take holidays, but not being forced to do so. that is the situation. the social media giant facebook says it is to send postcards in the us mail in order to verify the location of people requesting to buy adverts related to us election candidates. the postcard would contain a code, which would be required to complete the booking. 13 russians have been charged with interfering in the 2016 presidential election. the indictment says they bought political advertising and set up groups on social media sites, including facebook. a mixed day forfinancial a mixed day for financial markets across asia will and a strong day on monday. hong kong opens today for the first time this week. in
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australia, bhp had come out with its results. they are down 37%. i will be back injust a moment. these other commodity prices. i will be back for the news briefing. —— these are the commodity prices. let's talk about the new research. 0ne let's talk about the new research. one in let's talk about the new research. 0ne infour let's talk about the new research. one in four people suffering mental illness also have a financial problem. a new incentive to freeze debt interest is intended to provide a breathing space for those struggling with both issues. they are sometimes called the ugly sisters. depression and debt. they move ina sisters. depression and debt. they move in a vicious circle. depression and debt‘s depression and debt until
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it can feel like there is no way out. there is often a spiral of disruptive inking so you start thinking about the debt and debt is, losing your property and assets, your job, friends, family. losing your property and assets, yourjob, friends, family. you have to pay this, pay that, when are you paying, how are you paying... lee lives with a condition called bipolar disorder and either manic disorders, he worked up over £30,000 of debt. last year it is for 23,000 people were being traced the debt while being treated in hospitalfor their mental health. today's report is calling on government to give anyone who is in mental health crisis six weeks of reading space, reading a freeze on interest and debt collection. the report outlines the different ways that depression and anxiety can impact that. he talks about people who lost their jobs and then work too poorly to pay their bills. 0thers jobs and then work too poorly to pay their bills. others who had been sectioned and then came home to find
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court summons, and there was even an example of someone who try to take their own life after visits from bailiffs. in a breathing space would make debt disappear, but it would offer some sense is of control —— wouldn't make the debt disappear. energy suppliers, banks and lenders we spoke to say they are always keen to listen to customers struggling. campaigners say it is essential that changes become law. brea kfast breakfast is at six o'clock today with dan and away. join them in 15 minutes. —— dan and louise. this is the briefing from bbc news. the latest headlines. the un has warned syria to stop bombing civilians in eastern ghouta. dozens have died in the past 2a hours alone. the war in the city has intensified as air attacks have rained down in the battle for one of the countries last rebel—held areas. students have been protesting outside the white house,
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demanding action on gun control. president trump has signalled he is now "supportive" of improved background checks for people buying guns in the wake of the florida school shooting that killed 17 students and staff. the brexit secretary heads to austria for a keynote speech setting out the uk's aim of maintaining even—handed co—operation after exiting the eu. the trip is part of a whistlestop tour of europe. and we had news from hsbc, the biggest bank in europe, profitsjumping hsbc, the biggest bank in europe, profits jumping to $17.2 hsbc, the biggest bank in europe, profitsjumping to $17.2 billion. doing well in asia. lots of the growth is down to profits made in that part of the world. the latest news also says bhp billiton has come out with earnings as well. the
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business page on line is all about for you as it breaks. —— has all of that. now it's time look at the stories that are making the headlines in media across the world. we begin with the new york times, and a un report that has found iran is in violation of a united nations weapons embargo and in defiance of security council resolutions that could endanger the iran nuclear deal. the guardian leads with comments from uk brexit secretary, david davis, who said fears the conservatives will plunge britain into a "mad max—style world borrowed from dystopian fiction"


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