24/07/2014 World Business Report

competitors will now take part in the event. Now for World Business

Report. Confounding the sceptics, Facebook

shares hit a new record high. Plus, bogus burgundy and bent Bordeaux.

The fraudster who fooled America's top wine collectors. Welcome to

World Business Report. Coming up: Privacy or censorship. The battle

over the so`called right to be forgotten online. First, let's talk

about Facebook. If you use it, you are part of a seemingly

ever`increasing number. If you have invested in it, you are likely to be

richer than you were a few months ago. Facebook shares averaged a new

record high after an increase in quarterly profit and revenue.

Facebook is all but put to bed the investor scepticism that saw its

shares drop by half their value in the month following its flotation.

Take a look at the numbers that have finally won over Wall Street.

Facebook made profits of just under $800 million. That is in the three

months to June. That is an increase of 138% on the period last year.

Facebook says it has 1.3 billion active users every month, 40 million

more than it had three months ago. Facebook's shares hit $74 in

trading. That is nearly double the 38 dollars they sold for when they

first floated. The number of people logging on to Facebook on a desktop

computer increased by almost 20% compared to this time last year.

That is good news but not exactly what investors are really interested

in. They want to know how many people are logging on to the social

networking site on one of these, a mobile device. Because that is where

the money is. Advertising is where companies like Facebook make most of

their money. With more people using social media on mobile phones or

tablets, instead of desktop computers, how many people are using

the platform on their mobile devices becomes a very important number.

Facebook has not disappointed. In this last quarter, war than `` more

than 1 billion active monthly users access the website on their mobile

device. Advertising revenue... That is a big increase in the same time

last year. For the last year, Facebook's results have defeated the

expectations of analysts. The social media website that began in a

college room storm has managed to exceed expectations yet again.

Staying with the internet and a balancing act between personal

privacy and freedom of speech. In May, the European Court of

Justice gave EU citizens the right to be forgotten. They ruled that

they could ask search engines to take down sensitive or embarrassing

results which related to their names. Today, Google, Microsoft and

others have been called in to face privacy regulators amid concerns

they have not done enough to implement the ruling. Thank you for

joining us. Do you think this is worth it? We have received many

reports about some fairly dubious characters asking for references to

themselves to be removed from the internet. Is this working? Not in

its present form. It's very challenging. Those with first

recourse to this are those who should probably not be doing it,

those trying to airbrush their reputations. If it is inaccurate or

inadequate, one can understand that. If it is irrelevant or excessive...

How do you decide if something is relevant? Irrelevant now or

irrelevant in ten years? I do not know how they would do it without a

clear code. Many of these subjective judgements... Everything from

advertising to our children's rights are dealt with by codes of conduct.

And unless encourages figured out, it will be difficult to work. Who

decides something is irrelevant or excessive? It is Gogol, isn't it? It

is Google and if I were Google, I would be going about things in a way

to make the law look impossible to implement. If they are doing that,

what would happen is they continue to interpret the law in a way that

no secret of the fact that they do no secret of the fact that they do

not want this decision. It will cost them money and gets the way of

business. Is it possible some sort of code might be developed? It's

possible. The decision of a core is the beginning of such a code. What

kinds of things might we see? Transparancy? Showing people that

something has been taken down? Yes. That is a double`edged sword. That

means anyone who does have recourse to the right to be forgotten risks

it being really public, such as what happened when Barbra Streisand

tie`dyed photographs of her house removed. Six people had seen the

photographs before she applied. 40,000 people saw them in the four

days afterwards. Thank you. It was an elaborate con and put out some of

America's wealthiest investors. Let's delay, an Indonesian born one

collectable learn how much you will spend in jail for selling fake wine.

`` later today. He is the first person to be convicted for it in the

US. He was caught manufacturing some of the world's finest vintages in

his own kitchen. And for a while, he had the experts convinced. The

Indonesian born man went from being a respected collector of fine wines

to a criminal. His magic seller turned out to be his kitchen, where

FBI agents found a draw of fake wine labels and foil wrappers used to

cover Cox. Many of his victims have remained silent but not all. Pigeon,

soccer, the Mark... Is not everyday you hear a billionaire admitting to

being ripped off on television. But this man is not your typical rare

wine collector. I cannot stand to be cheated. I want someone to know that

if they sell me a fake, I will come after them, no matter how much it

costs. The hoax began to unravel at an auction in New York after a

French wine producer accused him of selling fake versions of his

family's bottles. Journalist Peter Hellman was there. I went and I

asked him what the story was with these bottles that were withdrawn

and he shrugged his shoulders and he said, well, we try our best but this

is burgundy and (BLEEP) happens. The defendant says one became his life

and he lost himself in it. It is an obsession that will be difficult to

pursue from behind bars. More evidence this morning that China's

economy is picking up. Stimulus measures starting to kick in. Good

morning! The numbers, if you look at them today, are convincing many

people that the recovery could be well on its way. The factory output

jumped to 52%. Anything above 50% is an expansion and anything below that

is a contraction. The highest level in 18 months. This is based on the

Purchasing Managers Index, which tracks at 30 in factories and

workshops. `` tracks activities in factories and workshops. This is off

the back of China's small`scale stimulus measures including tax

breaks for enterprises, targeted infrastructure spending and

improving lending in rural areas and small companies. These are all

starting to bear fruit. Exports are vital to the economy. But others are

still sceptical, warning that it will not be such smooth sailing. The

real estate sector remains troubled and that accounts for a significant

share of the overall economy. Thank you.

Police have arrested seven people over a $1.6 million fraud on the

online ticket market. It is the latest website for victim to a

hacking attack. Stolen credit card details will use to buy tickets to a

number of high profile events, which were then sold on. Suspects include

a Russian national detained in Spain. Two were arrested in the US

and three in London. Canadian plane maker bombardier says it will cut

1800 jobs as part of a reorganisation of its business. ``

Bombardier. It hopes its latest line will take on medium`range jets from

Boeing and Airbus. Quickly taking a look at the market is now will stop

very little movement. `` quickly taking a look at where the market is

now. Very little movement. Not very exciting. These might be more

interesting. The euro is looking weaker against the American dollar.

And not a huge amount of difference in the Japanese yen. That is

business, I'm afraid. Not much excitement. That is it.

They rush through the financial markets and I know that feeling all

too well.