27/11/2013 World Business Report

their boat capsized near the Bahamas. Those are the latest

headlines. Now it is time for World Business Report.

A surprise jump in revenue at Hewlett`Packard causes shares to

rise over 7%. Risk sales of enterprise computers out ways and PC

sales. The largest shareholder in Alitalia has refused to contribute

money to keep the airline alive. Hello, and welcome. Also in the

programme, we focus on the rising cost of living in Brazil, where even

the price of a football ticket is now out of reach for many. First of

all, investors were braced for a bad news from Hewlett`Packard, but got

just the opposite. Share prices rose by 7%, after it was announced that a

2% rise in sales had been enjoyed by the company. The news has inspired

cautious optimism as the 70 year old company struggles to keep up with

shifting consumer demand for smaller, portable devices.

Today's personal computing power is now in pockets and handbags across

the world, and that has left the traditional PC in big trouble. And

that matters to HP, because personal computing makes up around a third of

all sales. It has stuck with a business which is largely in

decline, and unrelenting pressure from the likes of Dell and Lenovo,

is squeezing profits in that market. Could he turnaround be taking hold?

These latest figures are better than Wall Street expected. Sales of

services to businesses help offset falls in the home computer market,

which sent shares rallying more than 7%. The company is counting on Meg

Whitman, it urged CEO in three years, to restore dominance in the

tech sector. What we are starting to see under Meg Whitman, is a smaller

more focused HP, that may not be all things to all people as they have

been in the past. She has taken off the table, at least for now, the

idea that they would spin out their PC business, will divest any big

pieces. She says HP is better as one piece, which has advantages for

suppliers and customers. For now, building and selling PCs is still

crucial to HB's efforts to restore growth. The boss claims it will take

five years, but that they be longer than some investors are prepared to

wait. Time is running out for Alitalia.

Today is the deadline for shareholders to sign up to a 300

million euros investment plan, which it hopes will get the company back

on track. But major shareholder, Air France`KLM, which owns 25%, has

refused a plea for cash. It says the carrier cannot be saved and less it

gets creditors to write off some of its 830 million euros worth of

debt. I am joined by an airline analyst from Scotland. So far, some

investors in Italy and also some domestic banks there, have pledged

214 million euros in this cash call. You think it will get the rest it

needs today? I think so. It is a very good airline with a sound

business plan that he put in place before this call for cash, to make

the airline viable. I think they will get the money. Tell us more

about the plan. As I have said to you before, I have talked about the

fact that Alitalia is on the brink of collapse for many years now, so

why is this new plan going to work? I think it looks at the airline

fleet and the rotation of the aircraft, and looks at the Ritz that

they are good at, and where they pick up good revenue, and

concentrates on those. `` the roots. You think there will be a of

heart in Air France`KLM? I don't think so. I think it has to come out

of the Italian banks. What about the argument that they have to see a

huge amount of debt written off in order for the company to have a

chance? I think it is a get out clause to try and get away from the

restructuring and to try and not put the money in without losing too much

face. In terms of the future full of company, and you are saying it has

got a good plan and will hopefully get the money today, what about the

issue of redundancies and unions? Will that not come to a head

eventually for Alitalia in the future? I think it will, because

they do have a very large workforce, and if they are scaling down the

places they go they will have to make redundancies. They will also

need to restore traveller confidence. If people stop booking

with them it will become a downward spiral, and it doesn't matter how

much money you pumping, if you are not flying people around, you are

not an airline. I think the travellers need to be reassured that

if they have booked with Alitalia, for they need to, certainly in the

UK market you can take out airline failure protection cover. If you

book your travel agency, they will work with you to rebook you if it

does happen, so I think there should be a degree of traveller confidence

involved in this action as well. I appreciate your time. I'm sure we

will talk about this again soon. It is one of the highlights of the

football calendar in Brazil, the Brazil cup final, and millions will

be crowding around television sets later today to watch. Many would

rather be watching live at stadium, but could not afford it. It has

taken almost three years and cost half $1 billion to upgrade the

Maracana Stadium for next year's World Cup. We report on the rising

cost of living in Brazil, wary than football is getting too expensive

for ordinary people. This is where Rio's football fans

learn to shell cherish the sport from a young age. But the new

Maracana Stadium, renovated for the World Cup, is expensive. Ticket

prices for the cup final started over $100. For this term, it was too

much. TRANSLATION: I would like to bring my whole family here with me,

to watch the final. But there is no way I can afford to pay for

everyone. So we came tonight for a less important match. I don't have

to watch the final on television. Some improvements are being made for

the World Cup and Olympics, but hearing Rio many people feel that

this is bringing them more fame and fortune. Especially when it comes to

real estate prices. This woman grew up in Copacabana, but has been

living here for a year now. She placed $270 for a tiny studio here.

Real estate prices in Rio have almost tripled since the city won

the Olympic bid six years ago. I had to move out because they had no

money at all to do anything else. I was just working to pay my bills and

to pay my house. I just could not afford it, so I came to the favela

so I could have more money to live my life, to have more quality of

life. Even here, rental prices are going up, with the pacification

policy. After years of hyperinflation, Brazil has enjoyed a

decade of stability, but prices of food and services are on the rise

again. This restaurant specialises in a traditional stew made of black

beans and meat. Beans are a staple food in Brazil, but it's prices have

gone up 27% in a year. Brazilians now have better wages and more

buying power, but the rising cost of living are swallowing up many of

these games. I have to say, when we report on

food from this programme, I do start to feel rather hungry. The markets

in Asia are mixed. Exporters are having a tough time on the fear that

Americans won't be spending in a major way in the run`up to

Christmas. Smoking should be banned in all NHS

hospitals and clinics in England, according