shake—up at hsbc. europe's biggest lender announces a huge overhaul of its operations. india's biggest ipo gets in gear — shares in hyundai motor india begin trading on the mumbai stock market. plus switching off down under — we take a look at how australia's new "right to disconnect" law has been impacting workplace culture. welcome to business today. we start with the world of banking — hsbc�*s chief executive has announced a major overhaul of the bank that would split it into four divisions. from next year, europe's bigest bank will restructure its operations into four distinct units — hong kong, uk, corporate, and

institutional banking. like many banks, hsbc is under pressure to address climbing costs and better manage expenses. let's speak now to peter hahn, emeritus professor at the london institute of banking & finance. you look at the rationale of how they are splitting up, it feels like east versus west and it is no coincidence given all the geopolitical tensions right now. , . , ., , the geopolitical tensions right now. , . ., now. yes, and investors have been asking _ now. yes, and investors have been asking for _ now. yes, and investors have been asking for this - now. yes, and investors have been asking for this for - now. yes, and investors have been asking for this for a - now. yes, and investors have| been asking for this for a long time to try to understand really where hsbc�*s futures, where it is a its money —— where it is a its money —— where it is making its money when its returns are subpar. hong kong, one unit, uk, separate unit, then there will be corporate, and institutional banking. why is it beneficial for them to be separated in that way? i for them to be separated in that way?— that way? i think investors have long _ that way? i think investors have long perceived - that way? i think investorsi have long perceived hsbc, certainly outside of china, is an asian bank thatjust happens

to be headquartered in london. and i think hsbc has tried to say that it is more of a collection of pieces around the world, but i think with what they are trying to tempt us to show that all the parts of hsbc are in a sense paying for themselves, providing a return and trying to make that more visible. and the share price reaction this morning, clearly investors want to see a result, so i think there's a lot there. ultimately, i think this will lead to hsbc further slimming down, if you will, getting rid of businesses that don't provide the correct return on capital and don't fit their long—term strategy. capital and don't fit their long-term strategy. they have described it _ long-term strategy. they have described it as _ long-term strategy. they have described it as a _ long-term strategy. they have described it as a way _ long-term strategy. they have described it as a way of - long-term strategy. they have | described it as a way of making the bank simpler, more agile, the bank simpler, more agile, the question is also about regulation, isn't it? because

banks are under so much more scrutiny than they ever have been, particularly in the wake of things like the financial crisis, is this a way of circumnavigating regulation as well? ., ., �* ~' circumnavigating regulation as well? ., ., �* ~ well? no, i don't think so, i think the — well? no, i don't think so, i think the critical— well? no, i don't think so, i think the critical regulation | think the critical regulation is in country for that, it is largely run as a group of subsidiaries worldwide, and their uk operations, as an example, inside the uk ring fence provide their own return and structure. what has been confused as some of their reporting where it was hard to say in a global business where the profits were coming from, and i think now the sport leads to clear indications of where the profits are. and where you see hsbc taking its future. we

will kee- see hsbc taking its future. we will keep a _ see hsbc taking its future. we will keep a close eye on where that ends up. always good to have you with us, peter, thank you. in the uk, some unwelcome news for the chancellor on the state of public finances. there's just over a week until chancellor rachel reeves' first budget, but the latest figures show government borrowing rose last month, marking the third—highest september since records began injanuary 1993. borrowing — the difference between what the government earns through taxes but spends on public services — reached £16.6 billion. it continues a trend of overshooting official forecasts. the numbers present a challenge for the treasury at the budget next week as it cannot borrow to fund day—to—day spending. let's discuss this in more detail with kathleen brooks, research director at xtb. how much of a problem is this for rachel reeves? it is how much of a problem is this for rachel reeves?— for rachel reeves? it is a problem. _ for rachel reeves? it is a problem, not _ for rachel reeves? it is a problem, not unfixable i for rachel reeves? it is a |

problem, not unfixable but for rachel reeves? it is a i problem, not unfixable but a challenge, and of course borrowing is a 7 billion more than expected between april and september, so it really reduces the fiscal headroom that she has, but she has got options. does she go and change the measurement of debt in the uk? that is a possibility. does she ditch her own debt rules? that could wobble the markets a little bit. or a small percentage point on vat or income tax across the board, that could certainly solve some of the uk's fiscal problems but maybe not its growth problems. kathleen, a lot of people will watch this, and we know it is not an exact science and it is very complicated, but how can you get the numbers wrong to the tune of £7 billion?- the tune of £7 billion? well, ou the tune of £7 billion? well, you know. — the tune of £7 billion? well, you know. we _ the tune of £7 billion? well, you know, we have - the tune of £7 billion? well, you know, we have had - the tune of £7 billion? well, you know, we have had a . the tune of £7 billion? well, - you know, we have had a change of government in that period of time, they have brought in some new policies, public sector pay rises for example. you can't blame it on inflation because that has actually been coming down, but day—to—day expenses are, you know, they are high and they are staying high, so inflation has not been fallen

but it has been rising at a lower rate, so that is one of the reasons as well. you are right, it is very difficult and it is not an exact science, and it is not an exact science, and it is not an exact science, and it is just another example of how when you look at uk public finances, it is never really a pretty picture. it finances, it is never really a pretty picture-— finances, it is never really a pretty picture. it also raises questions — pretty picture. it also raises questions about _ pretty picture. it also raises questions about what - questions about what governments or what prospective governments or what prospective governments commenced in their manifestos, she said the labour party here committing not to raise vat or income tax or other personal taxes, national insurance amongst them, but they have to find the money from somewhere, and so we might see some of that easing up on the wording and they will try to raise taxes elsewhere to meet that borrowing. absolutely, and i think the public is a bit aware of stealth tax now as well, so freezing income tax thresholds, for example, that is considered a stealth tax to many. but it really is the growth, we are borrowing more, historically more, yet we are not seeing growth. growth is only 0.5% for the last quarter, so that really is a concern, and i think the chancellor will need to be very wary about where she

is spending so that it generates growth, because that was also their key manifesto pledge, and that is meant to get us out of this fiscal hole. so it really needs to be a good positive budget commission is to be careful about how much she is willing to tax the uk economy because that could stifle growth in the long run. you are right, business will keep a close eye on this to see whether they end up carrying the can. kathleen, good to talk to you. kathleen brooks there at xtb. in india, shares in hyundai motor india have begun trading on the mumbai stock exchange today in what is india's biggest—ever market listing. it could value the south korean car maker's indian unit at $19 billion. hyundai is looking to cash in on india's booming stock market and fast growing car sales. our india business reporter archa shukla has been following the day's trading in mumbai. how is it looking right now? the markets have just closed and it has not been a great day for hyundai. it saw a muted

listing, it closed 6.69% lower as against its issue price. this was kind of expected, looking at how the book was subscribed. two full subscriptions by institutional investors, but retail investors have stayed away. most of the investors have been wary of the expense of valuations of the issue price for hyundai shares in india, and also not certain that it will be able to make money on this expensive listing in the indian market for the moment. but overall, it has been a very significant ipo. the first for the korean car—maker outside of its home country, and for india at the largest ever that it has seen at $3.3 billion. and it also shows how crucial the indian market is for the korean car—maker. they hold the second largest... they are the second largest... they are the second

largest car maker and seller in india, holding about 50% of the market share, and has publicly stated plans to expand capacity here in india and also expand exports out of india, other electric makers as well as other cars, especially at the suvs for the emerging markets in and around india, as well as to other parts of the world. in the short term, the valuations do seem expensive, and that is why the stock could be in pressure, but the company does hold a long—term fundamental value for investors, to get in better returns in the longer term. , . , better returns in the longer term. , ., , ., ., better returns in the longer term. , ., ., , term. keep an eye on it for us, archa, term. keep an eye on it for us, archa. and _ term. keep an eye on it for us, archa, and thank _ term. keep an eye on it for us, archa, and thank you _ term. keep an eye on it for us, archa, and thank you for- term. keep an eye on it for us, archa, and thank you for now. | in australia, employees have the right to ignore their bosses outside working hours thanks to a recent law which enshrines the so—called "right to disconnect." the legislation, which passed in february, protects workers who refuse to monitor, read,

or respond to messages from their employers outside work hours. more than 20 countries, including france, have brought in similar laws. from sydney, phil mercer reports on the impact in the workplace. familyfun fa m ily fu n bstress family fun bstress any day of the week. kelly is starting a new marketing position in sydney. she has made sure it will not be as demanding an environment as her previous environment.— environment as her previous environment. every now had to be answered — environment. every now had to be answered within _ environment. every now had to be answered within ten - environment. every now had to i be answered within ten minutes, did not matter what time of day or night, whether it was the weekend or holidays.- weekend or holidays. what affect does _ weekend or holidays. what affect does that _ weekend or holidays. what affect does that have - weekend or holidays. what affect does that have on i weekend or holidays. what i affect does that have on you? it was pretty dramatic, to be honest. ~ ., , ., it was pretty dramatic, to be honest. ~ ., ~ , ., ., , honest. millions of australians can now break _ honest. millions of australians can now break free _ honest. millions of australians can now break free from - honest. millions of australians can now break free from the i can now break free from the pressure of after—hours calls and e—mails. new laws are based on the premise that staff are happier if they are not followed home by theirjobs. in

australia, we have a mental health crisis. as many as one in four employees are suffering from a mental health condition, and a lot of people have a lot ofjob uncertainty. add to that the cost of living crisis in australia, this is going to look to address some of that. people have been overworked for a long time. people have been overworked for a long time-— a long time. similar laws are in lace a long time. similar laws are in place in — a long time. similar laws are in place in france, _ a long time. similar laws are | in place in france, argentina, and ireland. however, industry groups here insist the right to disconnect legislation will hamper productivity at a time of economic uncertainty. but academics argue that the changes will be good for business.— changes will be good for business. we are seeing businesses _ business. we are seeing businesses in _ business. we are seeing businesses in response l business. we are seeing l businesses in response to business. we are seeing - businesses in response to the right— businesses in response to the right to — businesses in response to the right to disconnect think about how they— right to disconnect think about how they and their staff can work— how they and their staff can work smarter, not necessarily harden — work smarter, not necessarily harden i_ work smarter, not necessarily harder. i think the impact of these — harder. i think the impact of these laws will have a positive impact — these laws will have a positive impact on _ these laws will have a positive impact on workers in terms of their— impact on workers in terms of their well—being. impact on workers in terms of their well-being.— their well-being. there has been a long-standing - their well-being. there has i been a long-standing process their well-being. there has - been a long-standing process at been a long—standing process at one of us where's dominant telecommunications companies, allowing employees to switch

off after work for more than a decade. ., , .,, ., , decade. for people to be engaged _ decade. for people to be engaged and _ decade. for people to be engaged and productive, | decade. for people to be - engaged and productive, that really means being able to have a balanced life, where you are able to give your best and do your best value at work but 1523 00:12:12