10/04/2012 World Business Report


10/04/2012

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Those are the latest headlines from BBC World News. Now for the latest

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Welcome to World Business Report. Company profits under pressure as

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the US earnings season kicks off, feeling investor concerns about the

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whole economic recovery. China's wins back. -- China swings back.

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Import and export growth slows. The last international flight for

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Kingfisher Airlines as it struggles Before we take a look at the US

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economy and the concerns there, we have had some positive news from

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China in the last hour. Stronger than expected exports came through

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There are two sides to these trade numbers which try nap released a

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few hours ago. The positive angle is that Trina returned at a surplus

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in March. -- try -- China. Exports have slowed to reduce the demand

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for Chinese products overseas, particularly from its main markets,

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the United States and Europe. Imports have also weakened as the

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main mind's rapid economic growth slows as well. -- mainland. Last

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month's global trade surplus came in at 5.3 billion US dollars and

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that it is indeed a big turnaround from the February deficit of 31.50

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billion US dollars. It is a bad sign for many countries, such as

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Australia and Brazilian countries. It counts on China for oil and

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industrial components. One economist I spoke to Ellis said the

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forecast it will come in at 8.3%. Analysts are expected to fall even

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further, not only in the past quarter, but in this quarter and

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the court has to come. Before that trade data came in,

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businesses had been brooding over Friday's wig US jobs figures. It is

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earnings seasons. -- weak. Google will report later in the week,

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followed by JP Morgan and Wells Fargo. Alcoa could set the tone for

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this opening season when it releases its numbers. The mood

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among investors is pessimistic. Of the 105 companies in the 500 index

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who had estimated their own needs ahead of time, 64% fell short of

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analysts' expectations. I think the biggest driver of the slowdown is

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tougher comparisons. In the wake of the global financial crisis,

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earnings collapsed and in I was easy to stroll -- showed strong

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profit growth. Now the comparison is harder. We tie energy costs, and

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is slow way in China, US companies may find it hard to make profit.

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Employees will have fewer staff than expected in March. -- employee

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has to go on. It is not all bad news for all companies. A new

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aerospace factory opened last week. They will make parts for Boeing.

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see strong demand for our products and we will continue to expand both

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our internal and external supply chains so we can meet that demand.

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After a couple of years of growth, a reversal would not be welcome. A

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could spark concerns about the strength of the US economic

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But as try and put all these things together. -- let us try. Quite

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difficult to know where we are. How important is it that Tyneham's

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exports are growing again? -- China. It is important. The trend is lower

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and slower. The surplus is smaller. The Adlard is getting slower. Oh --

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the economy is slowing down as one of -- as well. Leicester mind in

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terms of exports and more figures domestically but that is not strong

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as well. -- less than demand. It is probably unlikely. Europe still has

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to go through... It is still a recession over there? Yes.

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Certainly in Gem income I think you will see some growth. -- in Germany.

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You have forestay if he gets around -- Europe will stay when they get

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the Europe around. You see the corporates taking account of their

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situation. They have been cutting costs. They find themselves in a

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situation where demand has come up, margin has come a bit record levels.

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This is as good as it gets. After this, the demand will be the

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figures to look at this week. Is divide beginning to weaken? This is

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what the markets will be discounting. Look at that. I

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looking a bit weaker. Huge cash power was building up but very

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little investment. As you saw with Apple, they give it back to

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investors. The vital word is messing - confidence. The

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atmosphere is corporate going on a spending spree to buy other

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corporates. Were have not seen that. I was worried about it.

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Final flight from Delhi to Heathrow today. India's Kingfisher airlines

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suspended all international operations. It has been forced to

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curtail large numbers of flights as a looks to cut costs and recoup

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profits. Beset by financial troubles and

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waves of flight cancellations, Kingfisher Airlines has slashed

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rates. Part of its so-called plan announced in March, the airline has

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a scaled back to 120 flights a day. A although the airline says this is

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a temporary measure. For the time being, all its national flights to

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eight overs eight oversnations in Europe and Asia has been halted.

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Tough competition on ticket prices have pushed Kingfisher airlines

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deep into the red for stops and so was lodged in 2005, the airline has

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never made a profit. Over the final three months of 2011, it was losing

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on average $1 million each day. In the spotlight for months now, the

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tycoon behind Kingfisher Airlines has had some tough negotiating to

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do. The career owes money to airports, tax authorities, lenders

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and it's our own staff. Some of those have been settled and its

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account unfroze. The airline's percentages have been cleared but

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with there were fights in the -- with fewer flights, it will not be

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enough to recoup their costs. Now for the market. Small falls

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It was closed yesterday for Easter Monday, which the rest of China was

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not. The Nikkei was not as well. It is there for that is happening in

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there. The main influence on that was the poor jobs figures we were

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