24/04/2013 World Business Report

officials. The move came hours after Peter Kevin Kerchers was

released from prison on bail. Now it is time for the latest

financial news in World Business Counting the cost of the Dreamliner

battery scare. We find out what the financial hit has been some Boeing.

Apple turnover. The technology giant reports its first drop in

profits for a decade but the shares go up. We explain why.

Welcome to World Business Report. And who do you believe? Nintendo

company bosses say they will be proffered in the future but

analysts have a different story. Eight dramatic emergency landing of

a Dreamliner in Japan in January led to the grounding of the entire

fleet and the suspension of deliveries of new planes. It marked

the start of a nightmare for its maker, Boeing. We find out how

badly the company suffered financially as a result. This

report from New York. These images of charge batteries

may have a lasting impact on Boeing's prized 787s. The

Dreamliner was their answer to the Airbus's offerings. But in 1st

January of the aeroplanes caught fire. Almost ten days, another,

resulting in all Dreamliners have been grounded and all new

deliveries being suspended. Even now American regulators are trying

to determine what went wrong. are here to understand why the 787

experienced unexpected battery failures polling a design programme

led by one of the world's leading manufacturers. Boeing admits it may

never know the cause of the battery malfunctions but it says it has

found a fix. It is a big step towards getting the aeroplanes back

in the air. Despite Boeing's turbulent few months it is still

the largest manufacturer of military and commercial aircraft.

They make a lot of different airlines. When the sales of the

Dreamliner slowdown, they can get up around it by having sales on

other popular aircraft. In fact, European low-cost carrier Ryanair

has said it will buy 175 of the smaller 737s, the biggest deal of

Boeing this year. But airliners waiting for Dreamliners to be

delivered and that had to cancel flights still have the question of

compensation and that has yet to be resolved.

4th this time yesterday I was warning you that Apple could report

its first fall in profits for nearly a decade. It did just that.

The company told us the second quarter net profits came in at $9.5

billion down from 11.6 billion the same time last year. It was better

than most predicted and sales continue to go up. In the case of

the iPad, as much as 60%. Sales in Asia were very strong and the big

announcement that Apple is raising its dividend by 15% and the share

buy-back programme to $60 billion. The company is returning $100

billion to shareholders by 2015. We speak to an analyst based in

Singapore. We were bracing for the news from Apple and we have all

talked about it. Give us your take. I think the important thing here is

to think back to the last time Apple came to market and the

disappointment that came there. I think it was largely because of a

lack of new products on the horizon and they had not rewarded investors

for their face. I think what we saw last night, this was much more

warmly greeted. Investors want more return for the volatility. Tell us

as well about the sales increase in Asia and in particular, China. I

was reading a few months ago reports about the fact that Apple

may struggle in China because there are so many more home-grown rivals

that were much cheaper. I think Apple's problem is that they are

not willing to come down to the lower end of the marketing terms of

price. They are willing to let the consumer pay for what they believe

is the best product on the market. We know they are being undercut in

China. They are using their older Lionel Smart finds effectively

there in terms of the chip market. -- older smartphones. There is

still room for them to push on in China. Where are you at the morning

after the results? Area optimistic that they will continue with break

through Greg -- gadgets? What we learnt yesterday it is there are

more products in the pipeline. That will help investors making up their

decisions. In terms of the share buy-back and the dividend, that has

helped doubters who I think would have been holding on to the share

price move recently. The move in shares last night was much more

comforting, a much better reaction than we have seen in the past year.

Thank you very much. We stay with technology because

Nintendo is releasing its annual results today. In Tokyo has. There

are expectations of a second full year loss in a row for a company.

When it comes to forecasts, what is lying ahead, it is a case of who

you want to believe it. As wheatear from Tokyo, the head of the company

and market analysts have different views.

When the results come out we expect to see that Nintendo will make an

operating loss of somewhere around 180 million US dollars. There is no

real surprise in that but the surprise is that Nintendo's boss is

predicting that Nintendo will make an operating profit this year of 1

billion US dollars. That is surprising because most analysts in

Tokyo do not believe that is possible. The reason is there the

game console market around the world is shrinking and Nintendo's

share of the market is shrinking as well. In 2011, the worldwide market

for game consorts was for around 40 million products. -- game consoles.

It fell in one year to 30 million. In tender's -- their share of the

market fell as well. This year they face more competition. Sony is

releasing a new PlayStation before the end of the year. A new X Box

will come out. More competition in a shrinking market. And many

traditional uses of Nintendo has said they are disappointed by the

latest products and the games. I will speak about the latest

releases when we get them. Netflix shares have jumped by more

than 20% after they reported a strong results later on Monday.

They said they added up two million subscribers in the United States in

the first quarter. It has been helped by a shift

towards producing its own programming.

HSBC is cutting another 3166 UK jobs as it continues its efforts

have to reduce costs. It was looking at redeployment options, it

said. It follows the loss of 2,200 jobs

last year. The markets today R AAP beat in

Asia. Japan is at a five-year higher pretty much. The yen has