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HSBC has warned it could start charging for “basic banking services” after reporting a 35% fall in pre-tax profits for the three months to the end of September.
With interest rates so low, Europe’s biggest bank by assets is finding it difficult to charge more for loans than it pays out to depositors.

The bank said it is considering charging for products such as current accounts that customers in Britain are used to having for free.
Chief Financial Officer Ewen Stevenson told Reuters: “We will have to look at charging for basic banking services in some markets, because a large number of our customers in this environment will be losing us money.”
HSBC reported pretax profit of $3.1bn (£2.4bn) for the third quarter, down from $4.8bn (£3.7bn) at the same time last year.

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The drop was less than expected and this was attributed to expectations that losses from bad loans would not be quite as bad as forecast and that the bank’s main markets would improve.

Asia-focused HSBC said: “This latest guidance, which continues to be subject to a high degree of uncertainty due to COVID-19 and geopolitical tensions, assumes that the likelihood of further significant deterioration in the current economic outlook is low.”

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The bank has previously said it will cut costs and downsize, accelerating plans announced earlier this year to cut 35,000 jobs, selling its French business and minimising its presence in the US.
It also plans to reduce costs to $31bn (£24bn) by 2022, well below last year’s operating expenses of $42.3bn (£32bn).

Meanwhile, Spanish bank Santander forecast an improvement in core profits for the year due to better customer behaviour in expired loan payments and more cost savings in Europe.
Presenting the bank’s third quarter results, executive chairman Ana Botin said: “The recovery of our business is progressing well, and the third quarter was significantly stronger than the second.
“Revenues increased 18% in constant euros as activity returned close to pre-pandemic levels.”
The bank has forecast an underlying profit of around €5bn this year, having reported that net profit more than trebled in the third quarter to €1.75bn (£1.6bn) compared to the same time a year ago.
However, in underlying terms, the third quarter net profit fell by 18% due to coronavirus-related provisions.
It comes after a second quarter net loss of €11.1bn (£10bn), also due to coronavirus-related write-downs.

BP has reported a profit of $100m (£77m) for the third financial quarter, helped by stronger oil prices.
Analysts had expected a loss of $120m (£92m) for the quarter, which ended on 30 September, following a record $6.7bn (£5.1bn) loss in the previous quarter.

The business said: “The ongoing impacts of the COVID-19 pandemic continue to create a volatile and challenging trading environment.”
Oil prices have started to recover but the pace is slow.
Weak demand, particularly for aviation fuel due to the pandemic’s effect on air travel, is resulting in weaker refining profit margins.

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“BP’s future financial performance, including cash flows, net debt and gearing, will be impacted by the extent and duration of the current market conditions,” BP said.
“It is difficult to predict when current supply and demand imbalances will be resolved and what the ultimate impact of COVID-19 will be.”

Heavyweight political figures including the former prime minister David Cameron will this week throw their support behind an initiative aimed at ending the “chronic under-representation” of black people across major British industries.
Sky News understands that a group of senior City figures will on Tuesday launch 10,000 Black Interns, a programme that they will describe as an ambitious attempt to transform the prospects of young black people in the UK.

The project will establish a target of securing 10,000 paid work experience places for young black people at employers across 10 industries, including accountancy, education, marketing and advertising, healthcare management and law, during the next five years.

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10,000 Black Interns has been set up by Jonathan Sorrell, president of the alternative asset manager Capstone Investment Advisors, following the launch of a smaller initiative, 100 Black Interns, for the investment management sector.
Mr Sorrell and his co-founders have secured the support of Mr Cameron, the Labour peer Baroness Amos and the former Liberal Democrat and Labour MP Chuka Umunna, who is now an executive at the communications consultancy Edelman.

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Speaking ahead of Tuesday’s launch, Mr Cameron said: “This initiative will help build a more inclusive economy that works for everyone.

“We are encouraging leaders from British industry and professional services to champion the effort in their sector.”

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The launch comes at a time when the ethnic diversity of Britain’s workplaces is drawing unprecedented scrutiny.
The issue has become a particular area of focus following the emergence of the Black Lives Matter movement in recent months.

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Earlier this month, the CBI, Britain’s biggest employers’ group, launched Change The Race, an initiative to improve ethnic diversity in boardrooms.
Recently published data shows that black, Asian and minority ethnic (BAME) people remain under-represented in British business’s senior echelons.
People close to the 10,000 Black Interns project said the CBI, the Association of British Insurers and companies such as Credit Suisse, the law firms Linklaters and Travers Smith, PricewaterhouseCoopers and Sainty Hird, a recruitment consultancy, had agreed to participate.
The venture has also agreed to work with bodies representing higher education institutions, including University Alliance, GuildHE, MillionPlus and the Russell Group.
Collectively, these bodies represent 84 institutions with an estimated one million students, of whom approximately 80,000 are black.

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The expanded 10,000 Black Interns programme is targeting companies which will offer approximately 100 internships in each industry each year for five years in order to reach the programme’s objective.
Participants will be asked to commit to a longer-term responsibility to advise, mentor, and sponsor other black pupils and students, with the goal being to create more high-quality career opportunities for black people over a prolonged period.
10,000 Black Interns will also confirm on Tuesday that it is launching a search for a chief executive and board of trustees.
The project’s other co-founders are Dawid Konotey-Ahulu of pensions platform Mallowstreet, Michael Barrington-Hibbert, founder of search firm Barrington Hibbert Associates, and Wol Kolade, managing partner of the private equity investor Livingbridge.
Baroness Amos said: “It is so powerful to see leading players in different sectors pulling together to address the underrepresentation of black talent in such a tangible and sustainable fashion.
“Of course there is so much more to do, but this programme is a great step in the right direction.”

Chinese online payments firm Ant Group – a spin-off of Alibaba – has revealed its plans for a stock market debut next month set to be the largest the world has ever seen.
The Chinese financial technology firm, which counts China’s richest man Jack Ma among its founding major shareholders, is to raise up to $34.4bn (£26.4bn) through listings in both Shanghai and Hong Kong.

The sale of shares in the operator of China’s dominant online payment system is to be split evenly between the two markets.

Image: Jack Ma built both Alibaba and Ant Group and retains significant shareholdings in both
A total stake of 11% in Ant Group is up for grabs in the Initial Public Offering (IPO), with demand set to easily outstrip supply at a time when such stocks are in high demand because of global coronavirus disruption to consumer behaviour.
A string of sovereign wealth funds were named as backers while Alibaba, founded by Mr Ma and separated from Ant in 2011, is to take 44% of the Shanghai flotation’s allotted shares.

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Other notable investors will include China’s National Council for Social Security Fund.

It marks a coup for both Shanghai and Hong Kong as the sums to be raised will easily outstrip the $29.4bn Saudi Aramco flotation of 2019.

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However, the $10-per share offer would value Ant at more than $313bn (£240.3bn) – a fraction of the near $2trn enjoyed by Apple.
Analysts have expressed some concern that Ant, which counts more than one billion customers, faces hurdles including regulatory scrutiny of its consumer credit business and possible trading restrictions in the United States under President Trump’s trade war with China.
The IPO is set to go ahead on 5 November – two days after the US election.

The telecoms regulator has confirmed it is to ban mobile phone operators from selling locked handsets.
Ofcom, which first floated the idea in December last year, said the move would be implemented from December 2021 to make switching providers easier for consumers.

It said the rule was targeting companies still selling devices which cannot be used on other networks, unless they are unlocked for a fee – usually around £10.

Image: BT/EE is the industry leader by market share
They included, Ofcom stated, BT/EE, Tesco Mobile and Vodafone while it said O2, Sky – the owner of Sky News – Three and Virgin all choose to sell unlocked handsets.
The watchdog said its research found the issue was putting more than a third of people off switching with their existing handset and potentially getting a better deal.

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It also cited time-consuming difficulties experienced by many consumers who currently need to be sent a code to unlock their device.

Ofcom said frustrations included failed codes and a loss of service during the unlocking process.

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The move builds on the regulator’s earlier work to make switching providers easier, which included the “text-to-switch” service.

Image: ‘Text-to-switch’ was introduced last year. Pic: Ofcom
Its connectivity director, Selina Chadha, said: “We know that lots of people can be put off from switching because their handset is locked.
“So we’re banning mobile companies from selling locked phones, which will save people time, money and effort – and help them unlock better deals.”
Ofcom said a broader package of measures would support the switching process.
This included mobile and broadband operators being forced to send prospective customers a summary of their contract terms in advance of a sale.
The regulator said it would also be holding a consultation on a simpler process for switching broadband provider.

Harry Styles is investing in a new live music arena, set to become the biggest indoor venue in the UK.
Co-op Live, which will be located in Manchester City Football Club’s Etihad Campus, is set to open in 2023.

The £350m venue, which got planning permission in September, will have a capacity of 23,500.

Image: Styles will help with the development and design of the project
Styles said he was “proud and excited” to be part of it, adding: “Manchester is an incredible city, filled with incredible people, and I couldn’t be happier being involved in this project.”
He went on: “It very much feels like coming home.

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“I was drawn to this project on every level, from the opportunities it brings, to the contribution it will make to the city, and, most importantly, that it will allow even more live music to thrive in Manchester.

“It’s just another sign that this amazing city continues to grow.”

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American entertainment company Oak View Group (OVG) which is building the arena said the singer will be “actively involved in the development of the project”, and that his “advice and consultation is going to be invaluable”.
With many live music venues struggling to survive due to coronavirus social distancing measures, news that up to 1,000 jobs could be created at the venue in the future will be well received.
The project will also create 3,500 jobs during construction, according to OVG.

There are already two large indoor arenas in Manchester, the Manchester Arena, known as the AO Arena, and Emirates Old Trafford stadium.
The AO Arena was the site of the bombing at an Ariana Grande concert in May 2017, into which an inquiry is currently taking place.
Manchester is close to Styles’s heart, as he was brought up in the neighbouring county, Cheshire, and performed his first X Factor audition in the city.
He also joked that he had come full circle as his first job was delivering newspapers for retail giant Co-op as a teenager.
The singer – who has recently branched out into acting – is currently filming the thriller Don’t Worry, Darling, directed by Olivia Wilde and starring Chris Pine and Florence Pugh.

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It is a busy time for the 26-year-old, who also releases his latest single Golden along with a music video today.
Last month, the Watermelon Sugar singer was forced to postpone all his planned 2020 performances until 2021 due to the COVID-19 pandemic.

A retired British Airways Boeing 747 plane is set to be converted into a cinema and educational facility in Gloucestershire.
The jumbo jet will also be used as a conference venue, museum and visitor attraction when it goes on display at Cotswold Airport, near Kemble, next spring.

A percentage of the money made from these events will be donated to charities and a scholarship programme run by Cotswold Airport.

Image: The final two 747s at Heathrow made retirement flights earlier this month
The G-CIVB Boeing 747 first entered the British Airways (BA) fleet in February 1994 and made its last passenger flight on 6 April – in this time it has flown nearly 60 million times.
The passenger plane is one of two Heathrow-based 747s used by BA that departed on retirement flights earlier this month.

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The carrier had initially planned to phase out the fleet by 2024, allowing for smaller fuel efficient planes to be used, however the plans were bought forward due to the coronavirus pandemic.

The G-CIVB model is painted in the airline’s Negus livery, dating back to the 1970s and 1980s – and it was one of four aircrafts given a heritage makeover during centenary celebrations last year.

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Sean Doyle, chief executive at BA, said: “It was with great sadness that we retired our two final 747s based at Heathrow earlier this month, so we’re glad Cotswold Airport is able to give one of these aircraft a new home and a new lease of life.
“The 747, and the Negus livery, are iconic in BA’s past, and we hope locals and visitors will enjoy seeing this slice of history for years to come.”
Cotswold Airport chief executive Suzannah Harvey said: “It is great news for locals and visitors who will be able to see and experience one of the most iconic passenger aircraft of its time.
“We’re absolutely delighted to make this happen following its final flight from London Heathrow to Cotswold Airport on 8 October.”

The Post Office says it is to ditch almost a third of its free-to-use cash machines but invest £16m to protect and upgrade the rest of its network.
The 2,000 ATMs it currently has are owned and operated by Bank of Ireland, which is withdrawing from the business.

The Post Office said that under a transfer, due to be completed by spring 2022, it would join the LINK network of cash machines and close down 600 existing ATMs which, it said, were little-used or had alternatives nearby.

Image: Free-to-use cash machines are disappearing from UK high streets
Its statement said: “A subsequent ATM replacement programme will be undertaken, so that all ATMs are replaced with new devices that have the latest cash dispensing technology and security measures.
“This programme should be completed by mid-2023.”

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Cash machine numbers have fallen at pace over the past few years as demand continues to decline rapidly in the face of the challenge posed by digital payments and contactless cards.

According to the consumer group Which?, 10,000 have been lost in the past two years.

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Such is the concern about maintaining access to cash, the government is consulting on the potential expansion of ‘cashback’ across all retail stores to ensure cash provision in small towns and villages, in particular.

Image: It is hoped more retailers, other than supermarkets, can offer cashback in future
The Post Office argued its announcement should be seen as a commitment to access to cash.
Martin Kearsley, its banking director, said: “This is one of the largest investment programmes in the free to use ATM market for over a decade.
“Millions of people rely on cash every day and we are ensuring anyone who wants cash can get it in whichever way is most convenient for them.”
The Post Office said that under its plans it had committed to retaining almost 60 lower transacting ATMs at locations where the next free to access ATM was a significant distance away.
It added that in addition to the 1,400 ATMs in its own network, its franchisee postmasters could apply to LINK if they wanted to have a machine installed.

The footwear retailer Clarks is kicking off talks with landlords about store closures and rent cuts, reviving tensions between high street shop-owners and tenants which have been thrust into sharp focus during the COVID-19 crisis.
Sky News understands that Clarks and its advisers are meeting with landlords this week to discuss a restructuring that would see the chain switch to a ‘turnover rent’ model for future rent payments.

The proposed deal, which must be approved by creditors, would be in the form of a company voluntary arrangement (CVA), a form of insolvency mechanism which has been, at times, controversially deployed by retailers and casual dining operators.

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If the CVA is approved, it would pave the way for Clarks to receive a cash injection of more than £100m from LionRock Capital, a Hong Kong-based private equity firm.
That would entail the founding Clark family, who established the business in Somerset in 1825, relinquishing majority ownership of the company for the first time.

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The restructuring would also involve the permanent closure of roughly 50 UK shops, triggering hundreds of job losses.

Clarks’ pension trustees are expected to play a significant role in the CVA vote, with the deliberations over the chain’s future coming as the COVID-19 pandemic continues to wreak havoc on Britain’s high streets.

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Numerous chains have been forced into emergency restructuring deals, although some have drawn criticism from landlords over the scale of the pain inflicted on store-owners.
The British Property Federation (BPF), which represents commercial landlords, previously attacked New Look, the fashion retailer, for “weaponising” CVAs in order to cut costs.
On Monday, Melanie Leech, the BPF chief executive, said: “The BPF supports a rescue culture for businesses in distress – including CVAs, which were designed to support a struggling business back onto its feet, with store closures and rental discounts, as part of a wider restructuring to safeguard the business’ future.
“It is in property-owners’ interests to support tenants working hard to create a sustainable future for their business.

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“The CVA process, however, is increasingly being used by businesses to simply walk away from debt owed to creditors, including local authorities, and to rip up leases freely agreed with property owners, without the business addressing its wider issues. This abuse must stop.”
LionRock’s injection of funds into Clarks is understood to be contingent upon the CVA being approved, making the restructuring vote critical to securing the company’s future.
In May, Clarks’ new chief executive, Giorgio Presca, unveiled a strategy – dubbed ‘Made to Last’ – that will aim to steer it into its third century of operation.
The company was founded in 1825 and has become synonymous with generations of parents buying their children’s first pair of shoes.
It remains largely owned by descendants of Cyrus and James Clark, who founded the business in Somerset nearly 200 years ago.
Clarks trades from about 345 stores in the UK, employing thousands of people, many of whom were furloughed under the government’s Coronavirus Job Retention Scheme.
In the last year for which figures are available, Clarks reported a post-tax loss of more than £80m.
The company declined to comment specifically on a CVA, but repeated an earlier statement which said: “We recently announced Clarks’ long-term ‘Made to Last’ strategy that is designed to ensure that our business has a sustainable and successful future, keeping it in step with changes in how consumers around the world choose and buy their shoes.
“As part of this strategy the Clarks board of directors is currently reviewing options to best position our business, our people and the Clarks brand for future long-term growth.”

Finland’s national carrier has started selling its business class meals in a supermarket to prevent jobs cuts at its catering unit – and the food has been a hit.
Some 1,600 meals were sold in the first few days at the supermarket, which is near the airline’s main hub of Helsinki-Vantaa airport.

Plans are being made to sell the meals from more outlets.
Kimmo Sivonen, a shopkeeper at Kesko’s K-Citymarket Tammisto in Vantaa told Reuters that there had been “positive feedback” from customers and the product was “one of the best-selling products in our store”.
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Head of Finnair Kitchen Marika Nieminen added: “There are redundancies and layoffs going on already at Finnair and we are trying our best to find new innovative ways.”

Having produced 12,000 meals a day in 2018, Finnair Kitchen’s production collapsed after the COVID-19 pandemic hit air travel. The airline will cut around 700 jobs by March next year.

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The airline’s menu on the ground includes beef with teriyaki-radish sauce served with grilled spring onion and rice, or smoked Arctic char with chantarelle risotto for €12.9 (£11.70) apiece.
New dishes planned include reindeer meat from Lapland and Japanese-style pork shoulder.

Image: Singapore Airlines launched an A380 restaurant at Changi Airport on Saturday
It is not the only example of airlines getting creative in the quest to make money and save jobs during the COVID-19 pandemic.
In September, Singapore Airlines (SIA) announced plans for destination-less flights, meaning passengers would take off and land at the airline’s home, Changi Airport.
These plans were later dropped, reportedly due to environmental concerns, but other ideas designed to recreate the air travel experience include inviting customers to dine in an A380 “restaurant”, where they can eat the airline’s food and watch movies on the in-flight entertainment system.
This launched on Saturday, with meal costs ranging from £30 per person in economy to £370 for a suites-class meal with champagne.
The airline is also running a home delivery service for its first class and business class meals.
For two weekends in November, there is also a tour of the SIA training centre for about £18 (half that for a child).
Optional extras include flight simulator sessions, grooming workshops with the airline’s flight attendants (Lancome make-up palette included), a junior cabin crew experience, and wine appreciation sessions with the airline’s sommeliers.

Image: Hong Kong Airlines ran a flight from Hong Kong to… Hong Kong
Singapore Airlines might have passed on the “flights to nowhere”, but Hong Kong Airlines went ahead.
On Saturday 100 passengers flew on an Airbus A320 for 90 minutes, enjoying views of the city and the sunset.
The flight had sold out in 30 minutes.