04/06/2013 World Business Report


04/06/2013

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Those are the latest headlines from BBC World News.

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Now for the latest financial news Investors dump Turkish shares on

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fears the economy could be threatened by the unrest.

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Jobs are slashed at US games maker Zynga. We'll explain why it's gone

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from a hot stock to crisis mode in just 1.5 years.

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Welcome to World Business Report. I'm Sally Bundock. Also in the

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programme: The second part in our Getting Started series about

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entrepreneurs that focuses on getting finance.

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The protests in Istanbul have shaken investor confidence in

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Turkey. Yesterday, the main share index plunged more than 10%.

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Investors are worried about the impact on the economy if the unrest

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continues. Turkey's economy was struggling even before the trouble.

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Last year, it grew just 2.2% and economic data for this year has not

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been encouraging. That won't be helped if the important tourism

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industry is hit. Last year, the industry was worth $29 billion and

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June is the first month of the peak season. Some of the country's key

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:01:37.:01:38.

unions are now staging strike This chart shows how Turkish shares

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have performed over the last fives years. If you invested at the start

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of 2009, you would be up around 300% now. It is a market known for

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its volatility. So perhaps it's not surprising there was a big reaction

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yesterday. Let's get some market perspective on all of this. Justin

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Urquhart Stewart is a director at Seven Investment Management.

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Welcome. Its economy has two and viewpoints. On the one hand, people

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are excited about the future for Turkey. On the other hand, people

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are frustrated by the promise of reforms that they have not seen.

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have to put this in perspective. Economy has grown significantly. It

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was not one of the groups include with India and China. It was one

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step down. But it has grown. Especially when compared to Brazil.

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With tourism, it is important. And the manufacturing sector is

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important. They need of reform. We have social and religious issues.

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There are political changes as well. The eastern areas of the country

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are sensitive as well. It is part of European history. It wants to be

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part of the European Union. It has gone for a long time. They have not

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move forward significantly for a long time. This situation is very

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volatile. It is not clear which direction they will go in. They

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have been pushed back by the EU on many occasions. Turkey is an

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excitingly developing nation. They have made significant changes. They

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have a big Agricole call sector. -- agricultural. Investors are pouring

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away because it has been a perfect position. However, money will flow

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back in again. Turkey will continue to develop but it needs stability.

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The level of social unrest can be the start of more difficulties.

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Watch out for more shots in the market. It is down 17% since May.

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Thank you. We would talk about Turkey later.

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It is all over the papers. In other news: Not so long ago, it

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was one of the hottest technology companies. But San Francisco-based

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Zynga is in trouble. Late on Monday, the computer games maker announced

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it's cutting 520 jobs. That's almost a fifth of its total

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workforce. Zynga also warned of deepening losses. It shot to fame

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with games like Farmville, which is played on Facebook. But it has not

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been able to replicate that success. Robert Scoble is a well known

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blogger on the technology industry. Games are very fetish activities.

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If they hit it, it is a home run. It is like the game, angry birds.

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It is a multi-million dollar home run. They are struggling to find

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that. If they find that, people will be happy. But it takes time.

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Adidas buys them enough time to find the next two or three

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interesting games. But they do need to get there.

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In other news: Shares in the Australian surf-wear maker,

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Billabong, halved in value in Sydney, hitting an all-time low.

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That's after it announced that takeover talks with two interested

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parties had ended. Billabong is looking for new investors after an

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expansion plan failed and left the company with large debts. The

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company says it is discussing alternative financing.

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Panasonic will raise a production in Japan if the currency weakens.

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At the moment, it produces one- third of its products to Japan but

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it will decrees that to one half if US prosecutors have accused Apple

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of conspiring with publishers to raise the price of electronic books

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in a civil lawsuit which started on Monday. A Justice Department lawyer

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said that Apple told publishers it could deliver higher prices. Apple

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lawyers described the case as bizarre and accused them of

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inventing a conspiracy. The trial is due to last three weeks.

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The EC will give to that via the go-ahead to become the 18th member

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Approval is needed from EU leaders and the European Parliament. That

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is expected later this year. Now for the second part of our

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Getting Started series about entrepreneurs. Today, we head to

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France where small businesses generate most new jobs. But, as in

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other countries, start-up firms are finding it difficult to get

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financing. Jeremy Howell has this report from Paris.

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It is proving a popular option. People in France do not want to

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spend their money going out. People learn to make a three-course meal

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and I take it home and eat it. This shop has many customers per year.

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None of this would not have been possible if not for the cash

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brought into the business by private investors. So-called

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business angels. I raised 2 million euros with business interest. The

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first step is the most difficult. When you managed to convince the

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first business angels to invest, it is easier to get more funding from

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them. You have a good track record. There are four. Five million small

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firms in France, creating many new jobs. Most of the firms are tiny. 4

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million of them. Three staff or less. Entrepreneurs complain their

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businesses are held back by a lack of funding sources. The director of

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the Paris business-school and vice chairman of the French Institute of

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directors' has a special responsibility for small firms.

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Bankers are prudent in not lending money to start a business. If you

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are already in business, and have a huge net asset, they will not lend

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you money. It is a clear line. is a widespread call from small

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businesses. Banks could put up resistance. They have lost their

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taste for start-ups in the recent economic downturn. They need to see

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more success stories like this cooking business have to get their

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appetite back. Looking at him markets. There are

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some gains in Japan for the first time in four days. The markets have

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been hit quite hard by very is issues, not least how successful

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so-called ergonomics is going. It is the phrase coined by Shinzo Abe,

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the new prime minister, and his action to boost the Japanese

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economy. One of the reasons for the gains in the market is because in

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