20/04/2016 World Business Report

Those are the latest headlines from BBC World News.

Now for the latest financial news with Sally

The chips are down - Intel announces massive layoffs

as the declining market for desktop PCs takes its toll.

Touchdown - President Obama will soon arrive in Saudi Arabia, where

trade relations have been tested thanks to a much lower oil price.

Japan's exports fall for the sixth month in a row.

It is not the kind of track record you want when you are running an

economy. We start with the US tech giant

Intel, that is taking drastic action to boost its bottom line as it

grapples with the swift decline The maker

of computer chips has announced it's shedding 12,000 jobs worldwide -

that's 11% of its workforce. This will cost Intel $1.2 billion

dollars in restructuring costs, and the job cuts will come into

effect over the next 12 months. Michelle Fleury has the latest

from New York. The CEO admitted Intel missed a move

to mobile wallet was dominating the business of making chips for

personal computers. More of our technology was moving onto mobile

phones and tablets. Intel was left playing catch up. In the

fastest-growing and most lucrative part of the chip making business.

And now it faces the daunting prospect of the next stage of the IT

revolution getting away from it. If it doesn't act fast. An increasing

number of the electronic devices in our homes and offices are becoming

Internet devices, this so-called Internet of things. And each of them

requires chips. It is already a sizeable market, but it is expected

to get much bigger in the near future. That is why even though

Intel is still a huge force in technology, it needs to restructure

and quickly to try to dominate the market for Internet devices and the

cloud just as it dominated the PC market. If it doesn't, many more

jobs might be lost, then the 12,000 it shed. That is Michelle in New

York for us. President Obama lands in

Saudi Arabia in a few hours' time - and it will mark his first visit to

the country since King Abdullah's As well as security issues, the two

leaders will also discuss their trading relationship, including

the key sectors of oil and defence. The US imports around 11% of its

oil from Saudi Arabia, making it America's second biggest external

source of oil after Canada. Saudi Arabia, meanwhile,

is the biggest importer of US arms, and has spent $95 billion

on American hardware However,

that close economic relationship has Increasing supplies of US base shale

oil have decreased America's That's been compounded by the Iran

nuclear deal, which helps to strengthen the economy of Saudi

Arabia's key rival in the region. The US was central in brokering that

deal with Iran. investment manager at

Seven Investment Management. Good morning. It has been quite some

time since President Obama has been to Saudi Arabia, and since his last

visit, a lot has changed, many because of the fall in the price of

oil. Last time he was there, oil had fallen from about $110 down to $60,

and everyone thought this is it, and then the oil price fell again

hitting $25 last summer. That is really to find the relationship

between the US and Saudi Arabia, the reliance of you the US on site well.

That is not there any more. The number is declining. The more the US

comes out its own shale oil, the less it needs the Middle East. From

President Obama's point of view, this relationship is not as

important, but from Saudi Arabia's interview, their revenues are

falling significantly, and they are having to borrow money and will

issue bonds on international markets. From their point of view,

how important is this relationship now? They have played a strong hand

for the past few decades. America has needed their oil, so they have

had a great ally in the region. Now the US is brokering deals with Iran,

they key rival, and they are struggling to mystically to work out

how to change their economy. They rely on their oil. They have

borrowed $10 million to get them through some immediate pain crisis.

They are about issuing bonds. They are struggling to deal with the New

World. The other issue is Saudi Arabia has been so determined to not

reduce production or cat production or freeze production partly because

it wants to stamp out the shell produces in the United States. It is

more expensive for the American oil producers to get the oil out of the

ground -- shale producers. I imagine both leaders will be thinking about

that as they negotiate. You can't really do anything. They are private

companies in theory. Nobody seems to be backing down. It is expensive,

but no one is really stopping. They might stop drilling new holes and

exploring, but Saudi Arabia is not stopping and Iran is coming online.

There are barrels coming from Libya. They all war is continuing. Thank

you. -- the oil war. We'll keep you across as this story developments.

More bad news from Asia's second-largest economy.

Exports in Japan fell 6.8% in March from a year earlier - that's six

Once again, a slowing Chinese economy is blamed

Rico Hizon is in our Asia Business Hub in Singapore.

Sally! Good morning. All good afternoon for you. Tell us more

about Japan. Apart from China, there is also soft demand for Japanese

electronic components, and the strong yen. At the start of the year

it was at 120, and is now at 108 against the greenback. They want to

add more pressure on the government and the bank of Japan to do more to

sting allegro. The recent earthquakes have struck the southern

benefaction hub and could also hamper the supply chain. -- to do

more to stimulate growth. It is affecting output of cars and other

goods, which is an unwelcome development for a flagging economy.

Before you go, Malaysia Airlines need a new boss, I understand? It

seems like the former boss will be stepping down this coming

September. He has brought in -- he was brought in to restructure, but

he is leaving within one year. He says he is leaving for personal

reasons. The airline cut six dozen workers and abandoned unprofitable

routs. They signed new partnership agreements. But in the month of

fabric, they finally made money. They made a profit and did him. --

under him. Thank you again. Tata Steel's Port Talbot chief

Stuart Wilkie is to launch a management buyout of

the company's operations in the UK. Tata is selling

its entire loss-making UK business and has asked for expressions

of interest as part Mr Wilkie was one of the main people

behind a survival plan that was rejected by the board of Tata, and

the UK business was put up for sale. Yahoo has reported a $99 million

quarterly loss, compared to a $21.2 million profit for

the period last year, as it reviews The internet firm also saw revenues

fall 11.6% in the January-March Let's have a look at the markets.

Very mixed picture today. A much weaker dollar at the moment, which

is not helping Japan. We do have audited company is doing much

better. Brent crude over $43 a barrel. That is all from me for now.

See using. -- see you soon. Primary school children who go to

after school clubs or take part in sports lessons get better grades

than their peers. Research carried out

by the Institute of Education