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territories will be taking part in the Games. | :00:00. | :00:00. | |
Those are the headlines. Time for Asia Business Report. | :00:00. | :00:15. | |
A big like for Facebook, posting better`than`expected results, | :00:16. | :00:18. | |
sending its shares to an all`time high. Talk about Thai Airways, we | :00:19. | :00:30. | |
ask what is ahead for the company as it tries to turn itself around. | :00:31. | :00:38. | |
Hello and welcome to Asia Business Report. | :00:39. | :00:42. | |
Social networking giant Facebook has announced a 138% rise in their | :00:43. | :00:45. | |
income for the second quarter ending in June, sending its shares to an | :00:46. | :00:48. | |
all`time high in extended trading hours in the US. The company has | :00:49. | :00:55. | |
more than one billion users but it has had to work out a way to make | :00:56. | :01:00. | |
money from them. These latest numbers show that the company's | :01:01. | :01:03. | |
advertising model must be working, with advertising revenue up 67% | :01:04. | :01:12. | |
compared to one year ago. I spoke earlier with a tech analyst to ask | :01:13. | :01:22. | |
more about these owning. `` earnings. What has happened is the | :01:23. | :01:26. | |
rise of mobile. We have seen the amount of mobile revenue from | :01:27. | :01:29. | |
Facebook jump up to 60%. It has been amazing. An amazing rise for mobile | :01:30. | :01:32. | |
advertising, but is Asia part of that equation? Are Asian Facebook | :01:33. | :01:34. | |
users just using the social media platform for their selfies and | :01:35. | :01:41. | |
photographs and status updates? I certainly get a lot of ads on my | :01:42. | :01:44. | |
Facebook feed. Facebook does not break the numbers down by geography. | :01:45. | :01:48. | |
It is emerging markets like Asia that are the biggest users of | :01:49. | :01:55. | |
Facebook. It is not cheap. If you advertise... And that is just to | :01:56. | :02:06. | |
boost your status. It can cost up to $50 just to do that. There are a | :02:07. | :02:10. | |
whole range of advertisers including individuals. The corporate sector | :02:11. | :02:19. | |
can target a certain demographic of people right down to very specific | :02:20. | :02:22. | |
information about people. That is what Facebook allows them to do. | :02:23. | :02:25. | |
This is indeed a frontier for advertising on Facebook in Asia, | :02:26. | :02:27. | |
with countries like India and the Philippines being big users. What | :02:28. | :02:31. | |
about China? Facebook would love to be everywhere. But China likes to | :02:32. | :02:39. | |
promote their homegrown social media companies. | :02:40. | :02:50. | |
Japan posted an unexpended 2% fall in exports. Imports rose 85%. It | :02:51. | :02:58. | |
left the country with a shortfall of $8 billion. Policy makers hoped | :02:59. | :03:03. | |
exports would offset the introduction of a sales tax increase | :03:04. | :03:06. | |
in April which is waiting on the economy. A survey finds factory | :03:07. | :03:12. | |
activity in China has accelerated at its fast as since January. HSBC | :03:13. | :03:20. | |
manufacturing index shows manufacturing output reached 52 in | :03:21. | :03:24. | |
July, a reading above 50 indicates an expansion while a reading below | :03:25. | :03:30. | |
50 means retraction. The result beats expectations and need a raft | :03:31. | :03:38. | |
of government stimulus initiatives. THAILAND Thailand's political system | :03:39. | :03:40. | |
has faced turbulent times of late and so has the national carrier. | :03:41. | :03:43. | |
Thai Airways is in the red, suffering massive losses last year. | :03:44. | :03:47. | |
Its performance was inconsistent prior to that as well. A board | :03:48. | :03:49. | |
meeting today will consider a detailed restructuring initiative | :03:50. | :03:52. | |
for the struggling airline. However, the changes could be a little bit | :03:53. | :03:58. | |
unusual. Thailand's military government says | :03:59. | :04:00. | |
repairing the economy is a high priority. Repairing the flagship | :04:01. | :04:10. | |
airline could be a test. Ticket sales have been weak, operating | :04:11. | :04:14. | |
costs high and competition is increasingly fierce. Last year, Thai | :04:15. | :04:17. | |
Airways lost nearly $4 billion and they have been in the red for the | :04:18. | :04:21. | |
first two quarters of this year as well. `` $400 million. The chief of | :04:22. | :04:28. | |
the Royal Thai air force has the job of fixing the airline. A detailed | :04:29. | :04:31. | |
restructuring plan aimed at returning the airline to profit will | :04:32. | :04:34. | |
be considered at a board meeting today. The board is reduced from its | :04:35. | :04:38. | |
original size because several members resigned, including some | :04:39. | :04:42. | |
with ties to the former regime. It seems politics is never far away. | :04:43. | :04:47. | |
While Thai Airways's new management structure is unique among national | :04:48. | :04:50. | |
carriers, its cash flow problems are not. Qantas is attempting to save $2 | :04:51. | :05:01. | |
billion in the next few years and relax 5000 jobs. There are reports | :05:02. | :05:04. | |
it is considering splitting its domestic and international arms as | :05:05. | :05:07. | |
part of a restructure. Malaysia Airlines has problems that are | :05:08. | :05:11. | |
tragic and all well`documented. There are questions hanging over its | :05:12. | :05:18. | |
future. Aviation analysts say it might be | :05:19. | :05:21. | |
difficult for Thai Airways to turn things around it head of the Thai | :05:22. | :05:24. | |
Air Force, without management experience, continues to run the | :05:25. | :05:27. | |
carrier. He is just the acting president. They will appoint a | :05:28. | :05:31. | |
full`time president over the next few months. He will be chairing the | :05:32. | :05:36. | |
meetings for now, but obviously this is just the first of several moves. | :05:37. | :05:49. | |
Eyes are on the government to see if they can fix an airline that, | :05:50. | :05:51. | |
honestly, the previous government had trouble fixing as well. An | :05:52. | :05:54. | |
unusual move. A permanent move would be bringing in a person who might | :05:55. | :05:57. | |
know something about the aviation industry. What kind of person should | :05:58. | :06:02. | |
they be hiring? Hopefully they will consider someone with significant | :06:03. | :06:04. | |
airline industry experience, significant commercial experience. | :06:05. | :06:06. | |
Possibly someone from outside Thailand, which is not something | :06:07. | :06:11. | |
they have done traditionally. There will be many candidates but whoever | :06:12. | :06:15. | |
gets the job will have a lot of hard work to do. A lot of hard work | :06:16. | :06:24. | |
indeed, Brendan. They lost nearly $400 million last year. What must | :06:25. | :06:28. | |
they do to turn things around? They will need to put in a restructuring | :06:29. | :06:34. | |
plan. They will have to potentially cut their network and some | :06:35. | :06:42. | |
unprofitable destinations. Other airlines did that a couple of years | :06:43. | :06:45. | |
ago, like Malaysia Airlines. Thai Airways has not had such a network | :06:46. | :06:48. | |
restructure in a while. They will have to trim the fat and cut costs. | :06:49. | :06:51. | |
They might have to accelerate fleet renewal and get rid of some of their | :06:52. | :06:55. | |
older aircraft. Like the 747 400s. Other carriers have retired them. | :06:56. | :07:00. | |
There is also the political crisis and the tough competition, | :07:01. | :07:09. | |
especially from Air Asia. That is also hurting its bottom line. There | :07:10. | :07:13. | |
is a lot of competition especially from the low`cost airlines. Thai | :07:14. | :07:16. | |
Airways has been hit with its European operation. European tourist | :07:17. | :07:25. | |
figures are increasing to Thailand but its market share has gone down. | :07:26. | :07:34. | |
Thank you. In other news, South Korea recorded | :07:35. | :07:44. | |
its weakest growth in more than a year. GDP increased by 0.6% quarter | :07:45. | :07:48. | |
on quarter for the April to June period, down from the last report. | :07:49. | :07:59. | |
The IMF has downgraded economic forecast for the US for the second | :08:00. | :08:03. | |
time this year, saying that overall growth would be disappointing at | :08:04. | :08:08. | |
1.7%. It blames a contraction at the start of the year and suggests a | :08:09. | :08:11. | |
boost in the minimum wage and an expansion of tax credits to help the | :08:12. | :08:15. | |
poorest in the country. In June, it predicted growth of 2%. | :08:16. | :08:24. | |
In India, vegetable prices have once again hit the headlines, soaring | :08:25. | :08:28. | |
over the past month. It has proven to be a big challenge for the | :08:29. | :08:30. | |
country's newly elected government to bring the prices down. Our | :08:31. | :08:33. | |
correspondent reports from Mumbai. These vegetables are not just being | :08:34. | :08:36. | |
consumed on dinner tables. They have also become part of the | :08:37. | :08:39. | |
conversation. That is because the cost of buying them has gone up so | :08:40. | :08:46. | |
steeply. This month alone, the price of tomatoes have trebled and that of | :08:47. | :08:49. | |
onions has doubled. These vegetables are key ingredients in meals across | :08:50. | :08:52. | |
the country and that is why this is really hitting domestic budgets | :08:53. | :08:54. | |
hard. Last month, inflation came down sharply. Much of that was | :08:55. | :08:58. | |
because of food prices. Nobody expects that to continue. There is a | :08:59. | :09:04. | |
forecast of less than normal rainfall during the monsoon season | :09:05. | :09:06. | |
and if that happens, it will inevitably hit food production. | :09:07. | :09:12. | |
Already, wholesalers in some parts of the country have been holding | :09:13. | :09:16. | |
onto their stocks and this has been blamed for the rise in prices. Last | :09:17. | :09:19. | |
month, the government took some steps to bring down the cost of | :09:20. | :09:22. | |
food, putting export controls on onions and limiting the quantity of | :09:23. | :09:25. | |
vegetables that can be stocked up by wholesalers. So far, the effects of | :09:26. | :09:33. | |
those measures is yet to be seen on the ground. PM Narendra Modi and his | :09:34. | :09:36. | |
team promised to bring the cost of living down for ordinary citizens | :09:37. | :09:39. | |
here. People in India will be hoping they can do more to live up to that | :09:40. | :09:47. | |
promise. Before we go, here is a look at the | :09:48. | :09:52. | |
markets in Asia. Stocks remain in positive territory in mid`morning | :09:53. | :10:04. | |
trade. US equities ended mostly higher overnight, with the broader | :10:05. | :10:07. | |
SNP 500's index closing at a record high. Conflict in Ukraine and the | :10:08. | :10:10. | |
Gaza Strip keep the market gains in check. The Nikkei is up 23 points | :10:11. | :10:21. | |
despite a trading deficit which was expected. China's better than | :10:22. | :10:27. | |
expected factory output numbers, gaining 71 point four. Australia's | :10:28. | :10:34. | |
index gained 7.5. Thank you for joining us. | :10:35. | :10:41. | |
This is BBC News. The headlines: The UN High Commissioner for Human | :10:42. | :10:48. | |
Rights has said Israel may be committing war crimes in Gaza. Navi | :10:49. | :10:52. | |
Pillay has also condemned Hamas rocket attacks on Israeli civilians. | :10:53. | :10:57. |