21/02/2013 World Business Report

News. Now for the latest financial Sony launches the Playstation 4 -

its boss calls it the moment of truth for the company. But will it

put them back in the game? Plus- coal, conspiracy and copious cash.

Billionaire Nat Rothschild heads for a final showdown with

Welcome to World Business Report. It's been a big night for computer

games players - and an even bigger one for Sony and this chap here -

the head of its games division - Andrew House. He even called it the

moment of truth for the company. He was talking of course about the

launch of the Playstation 4 or PS4 - seen as a make-or-break product

for the once dominant electronics giant. Michelle Fleury was at the

event - she's just sent this report These are tough times for defence

At last, after a seven-year gap, Sony introduced its next-generation

games console, the Playstation 4. It hopes to compete against the

next offer from Microsoft. Both will be in stores by Christmas.

Today marks a moment of truth for Sony has a company, as creators and

innovators. They refused to rid reveal the device or offer a price.

They showed the new controller. It has a share button. Your friends do

not have to be in the same room to watch you play games. It is a key

moment. The company wants to find consumer electronics. They had a

hit TV in 1968, followed by the Walkman. The first PlayStation was

in 1994. Its fortunes reversed and it has not made a profit in years.

This is the new landscape they are competing in. This man's company

may schemes that do not need a dedicated console. They can be

played on something we carry around all the time, a mobile phone.

big difference is that we are a race small company. We can be in

the same space and room is a really large company, which is incredible

in itself. Camserney face up to the challenge? The big question is, do

we even need the consoles? Instead of running away from smart phones

and tabards, Sony is embracing them. It is bring them into the

experience. The one thing that was missing was the device itself. Sony

spent a long time talking about the social aspects of the console. It

knows that if the console is to succeed, it must do more than just

be a reboot of the brand. These are tough times for defence

companies. After decades of growth, global sales of military hardware

are falling as Western governments cut defence spending. UK arms giant

BAE Systems reports results shortly. It's expected to say profits in

2012 were hit by cutbacks in the US, its biggest market. Jeremy Howell

reports. Seven years ago, BA he decided to sell his stake in civil

aircraft makers Airbus to concentrate on bid defence sector

of. Since then, it has missed out on summon booming years for the

civil airline industry. It is facing tight times ahead. There

will be an impact in what is its largest market outside the UK. They

are seeking other markets. It is doing well as it moves further into

the Middle east. They are moving into new opportunities for every

country. The company is looking to the Middle east to fill its order

books. It is a major contract to deliver fighters to Saudi Arabia.

It recently bought equipment sales in Armagh. It is hoping for further

orders from the UAE. An attempt to merge with Airbus shows that it

sees the need to re- enter the civil aircraft market. It has

become more balanced. They would like an exposure to commercial

aerospace. It looks like a good merger. All the industrial

reasoning is there. They abandoned a tie-up because of opposition from

German politicians. There are widespread expectation that some

point it may approach them again. Now, what do these two men have in

common and why don't they like each other? On the left is Abdurizal

Bakrie, the richest man in Indonesia and a candidate for the

country's presidency. On the right, Nat Rothschild, billionaire

financier and descendant of the 200-year-old banking dynasty. So-

apart from both being very rich - they are also both co-founders of

Bumi Resources, one of the world's largest exporters of coal for power

stations. They have fallen out spectacularly over the company amid

claims of financial irregularities and a plunging share price that has

cost its investors a billion dollars. The name is synonymous

with power in Indonesia. It has dominated in business for decades.

It has holdings in 200 businesses ranging from a mining to media. The

current patriarch, Abdurizal Bakrie, is running for Indonesia's

president in 2014. The clash between Nat Rothschild and the

family of the Abdurizal Bakrie have had a negative impact on the grip's

fortune. Local media was rife with speculation that the family will

have to sell off their media arm. The company has denied these

rumours. Nat Rothschild has also made allegations, saying they have

been financial irregularities. The family say this is not true. They

have alleged that Nat Rothschild has had their e-mail accounts

hacked into and have complained about corporate espionage. This

combination of mud-slinging, corporate espionage and mugs of

bitter boardroom battles have taken their toll on the share price. The

prices dropped by 60% in the last few years. It has not been helped

by a dramatic plunge in the price of coal. When shareholders get down

to voting on the future of the company, a line will be drawn under

the company's troubles. Clara Ferreira Marques is the mining and

steel correspondent at Thomson Reuters. She's been covering this

story. This really is the clash. The banking dynasty of Abdurizal

Bakrie and Nat Rothschild. They run the operational sides of the

business. They have been pretty much at odds since the start. They

came together in 2010. The company has had a turbulent relationship.

The company has only been in existence for two years. It has

been troubled ride from beget go. The idea was simple. You bring

promising Indonesian assets, puts them in an investment. You bring up

the valuations and everyone is a winner. In reality, mistrusts,

boardroom battles and falling coal prices have been dramatic. The

impact has been a disaster. It has read like a transcript from

dynasties. It is clearly a lot at stake. Abdurizal Bakrie would say

it is not personal. If he loses today he will still have done a lot

to support minority shareholder interests. The bitterness of the

battle between the two sides, press releases, full-page advertisements,

it will be seen as a personal loss. Do you think investors may look

toward Nat Rothschild and say, you should have seen this coming? This

was almost predictable. Hindsight is a wonderful thing. Everything

looks a lot better in 2010. He has had some success elsewhere. His

initial investment has been a lot less problematic. Perhaps he could

have seen it coming. They could have found some of the problems.

next few hours unfold. In other news, Australian airline Qantas

says it has been paid $128 million in compensation by Boeing so far

for delays in delivery of its troubled Dreamliner jet. That and

the ongoing turnaround in its loss- making international business

helped the carrier report higher profits in the second half of last

year. Top of the agenda in the US - results from the world's largest

retailer Wal-Mart. It's expected to post higher

profits on rising sales in the US despite pressures including higher

fuel prices and an increase in payroll tax.

Results out too from computer maker Hewlett Packard. Investors will be