23/07/2014 World Business Report


23/07/2014

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open in the Scottish city of Glasgow later today. The event, held every

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four years, brings together athletes from seventy`one nations and

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territories, almost all once part of the British Empire. Those are the

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latest headlines from BBC News. Now for the latest financial news with

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Sally Bundock and World Business Report.

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Mixed results for America's tech giants. Apple reports bumper

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profits, but Microsoft fails to impress as its hurt by the Nokia

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acquisition. Clearing its name: GlaxoSmithKline prepares to unveil

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its latest earnings, we look at how the company plans to rebuild its

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reputation following a bribery scandal in China.

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

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programme, we take a look at how job vacancies in the Asia Pacific region

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are surging. We will find out why. But first... Another bumper quarter

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` Apple has reported a 12 % gain in profits on this time last year. The

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company raked in seven. Eight billion dollars in the three months

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to the end of June. Profits were driven higher by strong iPhone sales

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with 35 million being sold in the quarter, up 13%. Despite the high

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price tag, iPhone sales in the BRICS nations of Brazil, Russia, India,

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South Africa, and China were particularly strong up a staggering

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48%. By contrast, numbers from Microsoft weren't so pretty. In a

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moment we'll take a closer look at Microsoft's struggle, but first,

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Michelle Fleury explores how Apple hopes to stay on top.

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In a now familiar sight, Long lines formed outside the Apple store when

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the iPhone five first went on sale. In Hong Kong, customer were greeted

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with cheers. It is increasingly important for Apple's Bottom Line.

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Sales in China have been climbing despite the phone's hefty price

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tag. All of it is in the developing world where it could easily mean a

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third of GDP per capita but people are still willing to pay it due to

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the status issues surrounding owning an iPhone. Not so hot is the tablet

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computer. Most of us are carrying around computers with the screens

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and we are using them to carry out functions now performed by the iPad.

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The iPhone is not powerful enough to rival these. They have teamed up

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with old rival IBM as its tablet is squeezed from both sides. The fact

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that there has not been a major rethink on the iPad is beginning to

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hurt them a little bit and I think they probably need to do something

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cool or it. Overall profits are up and get the earnings of Apple remind

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us that, given a our reliance on these products, there is increased

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pressure for the next product to be a hit. While profits rose for Apple,

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it was a different story for another US tech giant. Microsoft has

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reported a 7% fall in profit for the last quarter as its new Nokia

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acquisition hurt the company's bottom line. Microsoft said its

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Nokia division, which it acquired in April and is earmarked for 12,500

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job cuts, lost $692 million for the three months ending June. These

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Nokia numbers underscore the challenges facing new Chief

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executive, Satya Nadella, as they seek to halt the decline of the

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Nokia handset business and turn it into an asset that can aid

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Microsoft's mobile efforts. But it wasn't all bad news ` cloud and

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enterprise software performed well, with revenues doubling for the

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Web`based versions of Office and Microsoft's Azure cloud`based

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service. That is the latest on those two

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companies. In a few hour's time the pharmaceuticals giant,

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GlaxoSmithkline will open its books and unveil its second quarter

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results. And it's been a tough quarter for the company since news

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broke of the bribery scandal that has seen senior executives in China

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arrested. As a result the company's share price has been on the move `

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currently GSK shares are 8% lower than this time last year. So what

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can we expect from the company later today, and are more arrests expected

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in China? With me...now is Dr Stephen Godwin,

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Senior Researcher Director at the Planning Shop International, an

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independent healthcare research agency. Good morning. It has been a

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very trying time for GlaxoSmithKline in the headlines for all the wrong

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reasons. It is the kind of story that we all... Well, any company

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does not want to get. Rivalry and corruption. What can we expect from

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them today? It is a bit of a distraction. It has nothing to do

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with the main business and I think that the strong pound will hit them

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as everyone has been saying. The issue with the strong pound, there

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have been a lot of movement in the drugs industry over the last

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quarter. AstraZeneca is fighting off Pfizer and other companies are being

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bought up. With lots of SmithKline, what is it thinking in terms of

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strategy `` GlaxoSmithKline? I think they did a clever and innovative

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deal. They picked up some vaccines from another company and I think

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they are now looking to the future for a strong performance. In terms

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of the area it is going to focus on, I know cancer and curing that is

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very much on its radar? The relationship with cancer at this

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particular moment in time is not really in the right area of stop

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that may be the reason for its recent deal. The philosopher's stone

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is finding the cure for cancer or something that turns it into a more

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manageable condition. I think everyone is looking at the new ideas

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that came up from the big meeting a few months ago where new results

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were revealed and short`term control of cancer and new technologies with

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a great deal of interest were exhibited. I'm sure they're looking

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at that in the longer term. Very briefly mentioned China at the

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sidebar that many people may think only of that when they think of GSK.

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I think from a strategic point of view, GSK sees that as an old

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issue. It keeps coming back to trouble them from a legal or

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financial point of view but from the business point of view, it is

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probably a sidebar. Thank you and appreciate your analysis. We will

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get the updates in a few hours. If you are considering a move to

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Singapore for a banking job, you're not alone. But, you might be in the

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minority if you're planning to move to Sydney. A study on professional

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job opportunities in financial services shows vacancies across the

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Asia Pacific region are up 5% from last year, indicating a growing war

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for talent. There's a risk that Australia might lose out with 68% of

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those surveyed considering an opportunity overseas. While in

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Japan, the labour market seems to be reacting to efforts to stimulate the

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economy. More businesses are hiring as they look to expand their overall

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headcount that this time last year. Let's get more on this. Joining me

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now is Rico Hizon from our Asia business hub in Singapore. It sounds

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like you're in the place to be. . Straight. In my own backyard in

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Singapore `` that is right. Costs here are high, Singapore is one of

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the most expensive in the world. `` expensive cities. Available regional

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jobs are up 5% from last year which indicates growing competition for

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talent and I spoke earlier with Andrew Evans from a recruitment firm

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which carried out the survey and he said that they were looking for a

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mix of young and middle`aged talent. Is opportunity for both. I

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think the way our clients operate these days which is in financial and

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nonfinancial services, the variety of roles that they have and the way

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in which they have and the way in which they're looking for talent to

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move around and be taken advantage of, that is illustrated by the rise

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in contracting market which is nonpermanent recruitment. That is in

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Singapore, Hong Kong and Sydney. It indicates that it is not long`term

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goals that are in the majority at the moment. The survey also says

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that people are testing the market but not aggressively, they're

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looking around looking for better pay and benefits and banks have been

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good at moving staff from their headquarters in Europe to Asia.

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Thank you very much. Let's look at the Asian markets. A very good day

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today apart from Japan which has just fallen. The majority of

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companies have been either hitting expectations or beating them lately

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and that has been boosting markets. They're ignoring the geopolitical

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situations in the Middle East and Ukraine. The S is a few points off

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a record high. I will see you again

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