17/04/2013 World Business Report

headlines from BBC World News. Now for the latest financial news and

A 20-year run of rising profits could be over for Tesco. It's

expected to report lower annual profits and back-out of the US

Welcome to World Business Report. Also in the programme: and I knew

hundred for France. -- and new Budget for France. But first we go

to Tesco. It is a very important day. It has enjoyed rising profits

but at Rhine is likely to come when end today when the company report

results. It had to spend heavily last year to keep up with the

competition and it has her at prop that. Some blame overseas ventures.

It is likely to retreat from one of those international for race today.

It is expected to come over it is expected to abandon trained it

started in the US six years ago. Thailand has delivered a strong

performance. The mighty Tesco. A retailer with 6,000 stores in more

than a dozen countries. The biggest retailer by fire in the UK. It is

now fighting all sorts of problems at once. In far-flung corners of

its empire. Restart in the US. It build fresh and is the six years

ago. It was an ambitious move by the then boss into one of the

world's toughest markets but it has not made any money. Going to

California made Tesco into a global business. If you want to be really

global, and you have to be in the USA. It was a very big move to get

their and it is an even bigger move to pull out. It is Gopal the part,

it could cost more than $1 billion to walk away. -- if Tesco pull the

plug today. Stores in central Europe at been hit by the downturn

from the crisis. The main reason for its expected for in underline

prop that is the cost of reviving its UK business. As it expanded

rapidly abroad, it took its eye off the ball here in its core market

and sales start at two SMART. Now, it is paying a high price to fix

its UK business, pouring $1 billion in investments. Including new fresh

food counters to turn things around. It is a retail juggernaut and a

British success story yet it needs to do more to pull UK shoppers in.

The fightback is underway but it will take time. We will have the

annual numbers in 1.5 hours. Most analysts agree there will announce

a 10% fall in pre-tax profits to �3.5 billion. $5.2 billion. France

could slide into recession this year, that's according to a

forecast from the International government cutbacks, weak exports

and low consumer confidence will combine to damage the French

economy. So instead of weak growth this year the IMF expects France to

shrink 0.1%. That's grim news for President Francois Hollande and his

government. And it could hamper plans to bring the budget deficit

back under control. A new budget will be presented to parliament

today. The plan is to reduce the gap between spending and income to

3% of GDP by 2014. That's the European Union target. But the IMF

says that's unlikely to happen. Director

Director at Forex.com. What is your take on this Budget? How will

President Francois Hollande's government and things around?

focussed the next year is on public sector cuts. In France, there has

been higher taxes - has backfired a little bit. He's going to focus on

public spending for next year which is not going to help his popularity

in the polls and possibly could way for the France. In terms of the

issues, he has owned a tough time because it and into government, he

beat Nicklas Sarkozy with a different mandate. He talked about

power, power, his approval rating has hit

the floor and all the measures he put into place are not what he

promised before getting into power as may it seems like the Perfect

than than expected. France is considered

one of the danger signs in the eurozone which is a worry, not just

in front but wider than that. Certainly for the and globally.

Because it is the second largest economy in the currency bloc, there

economy in the currency bloc, there we can get the Budget statement

brought out parliament let alone pass and implemented. What you

think the outlook is for France? Many economists expects ice-pick to

actually say they are worried about France. Italy and Sply and Sp an

an eye but France is the real concern. I agree with that. In fact,

some of the data from France is worse than that from the European

periphery - worse than Spain and Italy. From a growth perspective,

it is looking very, very weak. This Budget - the growth assumptions,

yesterday the Iowa came up and said they growth assumptions are weaker

for next year and a low beyond. -- in the eye him again. It continued

so much to do bower farm. It is of great concern. -- the bail-out fund.

One of the biggest takeover deals in the mining business has received

clearance for China. Trading firm Glencore has been haggling with

Beijing for months over its deal to it had to make some pretty big

talking about these two getting together for a long time. They

finally walked down the aisle finally? They could indeed. They

have finally cleared the big hurdle. It all came up that lane court

agreed to sell its stake in extra copper mining project in Peru to a

mine approved by Chinese mine approved by Chinese

supply a minimum 1 euros of copper eight

eight years. It will form one of the biggest metal and commodities

firms. The 30 billion-dollar takeover was first announced in

February last year. It has been February last year. It has been

date has been put back several times. There were concerns over the

influence the combined entity would have on the global commodity

markets. Account for roughly 7% of the global copper supply and it is

estimated that bling core controls between 10% to 14% of Chinese

copper concentrate imports. China is one of the biggest commodity

consumer markets. They were looking at what it could mean. Analysts are

mistake of the per reproach, bling Court not and we have satisfied a

key concern of China but also those earnings stories. Intel south and

prop its -- sales and profits. They're $2 billion down by a

quarter in the same year. It reported net income of $2 billion,

down by a quarter on the same period in the previous year. Intel

also said that sales in the current quarter would probably be weaker

than last year as the company continues to struggle with falling

sales of personal computers. Yahoo's latest quarterly results

have disappointed some in the financial markets. Revenue fell

almost 7% to $1.1 billion. But profits were up by a third to $391

million. Yahoo has been an investor favourite since Chief Executive

Marissa Mayer moved into the top job last July. Shares have risen

around 50% since then. American malfunction in its computer systems

the US on Tuesday. The airline said a problem had occurred in its

booking and reservation system. Flights were grounded for several

hours, causing delays and cancellations. Markets do that are

higher. In Asia, this is the first day of gains we have seen in weeks.

I % gain for Japan. South Korea is there a touch and Hong Kong is