31/07/2013 World Business Report


31/07/2013

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neighbourhood. Time for the latest money news, he is the World Business

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Report. -- here is the World Business Report. Light, camera,

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action. Official US growth figures are factoring in the television

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industry for the first time. Can the new boss of drinks giant Diageo to

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continue the results we have become very used to. Also in the programme,

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we continue our series that looks into how the housing market is doing

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in various parts of the world. Today, we are looking at the market

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in the US. We start with the US, the world 's biggest economy, where

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historic changes are taking place to the way they measured growth. The

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question of how do you capture in one number the health, or otherwise,

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of an economy is a very tricky one to answer. Today the commerce

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Department will release its first estimate of the three months from

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April to June. Expectations are not high but as experts believe that

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these calculations will give a better calculation of how the worlds

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largest economy is progressing. What has the film industry got to do with

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the size of the US economy? More than you suspect. A lot of wealth is

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generated by film and TV production. The US government wants to capture

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that in its measure of growth. To do so, it has invented a new way to

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calculate gross domestic product. What is GDP? It is an attempt to

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capture how an economy is going in one now that -- number.

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Statisticians tend to do this by valuing the goods of products

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purchased by consumers. GDP will now include spending on research and

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development and some forms of entertainment. As well as changes to

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pension accounting. These adjustments are expected to boost

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America's output by up to $400 billion, roughly the same size as

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Sweden's economy. Which brings us back to this onset. Right now

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they're going to shoot a scene from the TV show girls which is wrought

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cast on HBO. The way it GDP used to be calculated, revenue from DVD

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sales used to be counted but not the money that goes into making the

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programme. But from today, budgets like this will be included. US

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economist say these new additions are meant to reflect the change in

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the economy. They have made similar changes before. For example with the

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creation of sulphur. This is part of an ongoing programme to better

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reflect the contribution of intellectual property to the overall

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economic productivity. When it comes to the story of economic growth, the

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US is the first to get his major rewrite. But it will not change the

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economic reality for most Americans. When it comes to today's GDP number,

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economist at predicting a growth of a meagre 1%. That is quite a drop on

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the first quarter. Investors are also keeping an eye on this

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building, the Federal reserve in Washington. It is ending its two-day

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meeting today, as you can imagine the markets are fairly jittery about

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that ahead of what they might say. You love story between Tinseltown

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and China has just turned a bit sour. China has stopped paying

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Hollywood studios for its films and a dispute over Chinese tax on movie

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profits. We like to think of him as our own movie star, we cross the

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Ricoh in Singapore. Tell us more about this story. You are talking

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about this lovers quarrel, Sally, and it started over this 2% value

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added tax that Beijing is charging on US films. The Hollywood studios

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say this tax violates a World Trade Organisation film trade agreement

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between the two countries. China has a state owned distributor that has

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stopped payment since the start of the year. They have not given at

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this point a reason why they did so. Tens of millions of dollars of box

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office revenue are now owed to the like of Warner, Disney, Sony. China

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owes more than $31 million to specifically for Warner Brothers,

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$20 million for sky fall, and $20 million for life of high -- to Fox

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Studios. It is an increase in the revenue sharing scheme. Despite all

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their differences, everyone is hoping for a Hollywood ending. They

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are trying to resolve this lovers quarrel. Thank you very much. Five

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years have passed since America's housing market collapsed, affecting

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economies around the world. If you look at recent figures, the US

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market seems to be recovering but for much of the younger generation,

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achieving the American dream of owning their own home is still in

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the impossible. As part of our home truths series, we visited one couple

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in New Jersey. Friday afternoon in a suburb of New Jersey, the sun is out

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and so are his family. It looks like a picture perfect American family

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except for one issue, the house they live in isn't theirs. It is tough

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because coming out of college, you both have student loan debts and it

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is really difficult because when we go to apply to the debt we carry,

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compared to what we make is a little lopsided. We do not really qualify.

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They at least have family fans who come to the rescue. Mike has worked

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at this store ever since he was a high school student. Its owner is

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their landlord. Her father and more -- her father-in-law owns the house.

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I think that one for era that my father-in-law had that opportunity

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to make as much money as he had, investing in stocks in real estate,

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I am not so sure that the generations to come will be able to

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do that. Their stories are not unique. Within a few generations,

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achieving the American dream has become much tougher. Today, not just

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here in New Jersey but across the country, young people are struggling

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to afford their first home. Over the last few decades, first home buyers

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in their late 20s and early 30s have on average a carrot -- accounted for

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40% of home sales. That figure has now fallen to 30%. To make things

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harder, it was hit by hurricane in sandy last year. An industry expert

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thinks that things are starting to look better. We are starting to look

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prices, transactions and the market moving in the right direction. That

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is consistent with what the overall country is doing. But for this

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couple, it is still a far-off dream. Just like many other first home time

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buyers, making a living is the reality they are faced with. Watch

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out TV executive 's, Facebook is coming for some of your advertising

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revenues. According to a report, the social networking company is going

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to sell TV like ads on its site for as much as two and a half million

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dollars per day. The 15 second ads could start appearing on the 1.5

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billion Facebook users screens. So says the report. Drinks giant Diageo

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is to release its full year results in a fall -- in a few hours. It is a

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result of all the first new executive to outline his plan for

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the company to tweak the emerging market strategy drawn up by his

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predecessor. We will be speaking to inhere on world report in two hours

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time. It is an incredible busy day for the financial markets in Japan.

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