:00:00. > :00:00.Some head-teachers have warned of staff cuts to make ends meet.
:00:00. > :00:00.Labour's welcomed the extra money, but says it's not enough.
:00:00. > :00:20.Now on BBC News, all the latest business news live from Singapore.
:00:21. > :00:26.Netflix beats expectations by adding more than 5 million new users, but
:00:27. > :00:42.what about the bottomline? And, Grexit talks. The European Union is
:00:43. > :00:53.asking for one thing, clarity. Good morning, Asia, hello, world. I'm
:00:54. > :01:00.glad you could join us. Netflix beat Wall Street expectations after
:01:01. > :01:06.adding over 5 million new users, mostly from overseas. It has been
:01:07. > :01:12.put down to including non- English Netflix Provisionals are alongside
:01:13. > :01:19.its Western popular television shows. It's shares have jumped
:01:20. > :01:28.nearly 9%. Our North American technology reporter told me why
:01:29. > :01:32.investors are so up the. This is typically not a great quarter for
:01:33. > :01:39.them, normally it is quite slow and they told investors as much. But we
:01:40. > :01:43.have seen a huge growth in users, particularly in the US. You
:01:44. > :01:48.mentioned overseas subscriber growth, but hearing the US, they
:01:49. > :01:54.over 1 million new subscribers, much more than analysts had thought. They
:01:55. > :01:57.will be very pleased. It is a sign that their strategy of creating lots
:01:58. > :02:02.of original shows does seem to be working. But they must keep on
:02:03. > :02:06.making those, and to keep them very popular, they are investing $6
:02:07. > :02:12.billion in making original programmes over the next year. They
:02:13. > :02:15.need to keep up the quality to keep people coming to Netflix, rather
:02:16. > :02:22.than any of the other video streaming services. 104 million
:02:23. > :02:27.subscribers now for Netflix. Have these subscriber numbers peaked, or
:02:28. > :02:32.are there still more on the way? I think we will see a saturation here
:02:33. > :02:37.in the US. Many people think we have reached that already. It's's about
:02:38. > :02:42.international expansion. They are investing a lot into non-English
:02:43. > :02:47.programming. They are also investing in feature films, while they have
:02:48. > :02:51.the bench watching the side of television under wraps, they are
:02:52. > :02:55.looking at longer form films. They are working on about 40 films at the
:02:56. > :02:59.moment. I think that is where they will see their future growth come
:03:00. > :03:04.from. But the competition is huge, especially from Amazon, who are
:03:05. > :03:08.investing just as much in their original programming because they
:03:09. > :03:12.think they can muscle in on Netflix. When you compare the amount of
:03:13. > :03:16.people watching Netflix, subscribing, it is more than the
:03:17. > :03:20.number of people that subscribe to traditional cable television. That
:03:21. > :03:23.is a milestone I don't think we will see goal in the reverse direction.
:03:24. > :03:29.Everything is heading towards this new industry of video streaming,
:03:30. > :03:34.right now, Netflix was in front. But it may not be for the rest of time.
:03:35. > :03:49.Rio Tinto have aborted one of its primary areas of production. I nor,
:03:50. > :03:55.a major contributor to its earnings, matched last year's levels, but
:03:56. > :03:59.shipments were down by 6%. That has followed a typhoon in the first
:04:00. > :04:02.quarter of the year. This resource analyst told me that there were no
:04:03. > :04:13.surprises that that would affect their upcoming earnings report. I
:04:14. > :04:21.and all was down about 2% on the same half last year. That is on the
:04:22. > :04:24.back of what we would call cyclones here, which affected magnets on
:04:25. > :04:33.their rail network. Rail maintenance can be made up, but some of its
:04:34. > :04:39.kindly. We have now seen production for 2000 and 1714 and about 30
:04:40. > :04:43.million tons. That is at the bottom end of the range they were
:04:44. > :04:50.forecasting. From an iron ore perspective, a fairly satisfactory
:04:51. > :04:56.result. Copper was down about 21% at 209 million tons, that was primarily
:04:57. > :05:02.on the back of a strike. Not such a good result for cop. 12 weeks to go
:05:03. > :05:09.before the year ends, figures coming out in August. Could we see some
:05:10. > :05:12.exceptional numbers? With the half-year result, the operational
:05:13. > :05:16.side will not impact significantly on their half-year result,
:05:17. > :05:20.financially. We do think that when you have a look at the commodity
:05:21. > :05:24.prices, that is where they are going to get significant leverage for
:05:25. > :05:29.their first half results. We are expecting some very good numbers.
:05:30. > :05:34.Unfortunate, volumes will take a little bit away. Pricing is going to
:05:35. > :05:37.be the reverse of what we have seen in many years.
:05:38. > :05:43.In other headlines, the Trump administration has outlined calls
:05:44. > :05:49.for renegotiating the North American Free Trade Agreement. Getting access
:05:50. > :05:53.for American products to Canada and Mexico to improve the trade deficit.
:05:54. > :05:58.They are worried that too many Americans have been hurt by closed
:05:59. > :06:03.factories, exported jobs and what they call broken political promises.
:06:04. > :06:09.Formal talks to renegotiate the deal are expected to begin next month.
:06:10. > :06:14.Ministers from the EU and the UK have been getting down to business.
:06:15. > :06:18.Wretched negotiations continue in Brussels. The clock is ticking for
:06:19. > :06:24.the deadline in March 2019 for Britain to leave the EU. Several
:06:25. > :06:29.issues are on the agenda. Number one, the rights of more than 3
:06:30. > :06:34.million EU citizens, currently living in the UK, and about 1
:06:35. > :06:41.million living in the EU. -- 1 million Britons. The British
:06:42. > :06:51.chancellor confirmed that Britain would honour its's debt. And
:06:52. > :06:59.finally, how they will address the traffic of people across borders.
:07:00. > :07:08.So, a mixed bag. You can see hear how that has affected the markets. I
:07:09. > :07:14.asked why this response has been so muted. Investors don't really like
:07:15. > :07:19.uncertainty, so until we get a resolution, you always have this
:07:20. > :07:22.hanging over the market. The UK is an outstanding geopolitical issue.
:07:23. > :07:28.We still have the US and potentially, trade tax against the
:07:29. > :07:38.Chinese. GDP was up yesterday, and the UK, EU and US markets shrunk
:07:39. > :07:42.back. We look at flows, there is still a somewhat negative sentiment
:07:43. > :07:46.towards China. That is correct. A lot of factors for investors to
:07:47. > :07:53.digestive. Even though we had better than expected growth. What could
:07:54. > :08:03.really turn the tide in these Brexit negotiations? Perhaps some kind of
:08:04. > :08:08.trade agreement. We saw a trade agreement in terms of the Japanese,
:08:09. > :08:13.but that took years to be finalised. We need some agreements like that
:08:14. > :08:18.from an economic perspective to alleviate some of the tension and
:08:19. > :08:26.perceived stress. Why are we seeing is doubt about the Chinese economy,
:08:27. > :08:30.despite 6.9% growth? I think it is concerned about the underlying debt
:08:31. > :08:37.situation. The people's Congress is going to be important to the
:08:38. > :08:46.Chinese. Investors did not take the news positively. And liquidity
:08:47. > :08:53.access in China and Hong Kong? Yes, it is a wait-and-see approach. Given
:08:54. > :08:56.all these landmines in the investment landscape, where do you
:08:57. > :09:04.tell your investors to put their money? The Chinese consumer, it
:09:05. > :09:07.makes a lot of sense, companies that can access strategies in China.
:09:08. > :09:10.Chinese companies are becoming more innovative. Some very good
:09:11. > :09:23.opportunities in that part of the market. Uber is facing more trouble,
:09:24. > :09:29.they are halting business in Macau as of Saturday because of local
:09:30. > :09:36.regulations. It faced problems in Taiwan earlier in the year, it
:09:37. > :09:42.suspended operations but resumed after setting up a partnership with
:09:43. > :09:46.a local company. Another recap of the markets. Japan and Australia are
:09:47. > :09:51.in negative territory because Chinese markets are depressed. We
:09:52. > :09:58.will watch how that welfare when it opens in about 45 minutes. Black
:09:59. > :10:05.Monday yesterday, nearly 500 shares suffered steep falls. The plunge
:10:06. > :10:09.came after regulators flagged an extended crackdown on the financial
:10:10. > :10:16.system. Investors were rattled even though China had better than
:10:17. > :10:20.expected growth numbers, 6.9% in the April- June quarter. The rest of
:10:21. > :10:24.Asia is currently in negative territory. Having a look now at Wall
:10:25. > :10:31.Street. The NASDAQ continues to break record highs for an eight
:10:32. > :10:40.consecutive session. Thank you for investing your time with us.
:10:41. > :10:44.Senior Russian and US officials have been locked in talks,
:10:45. > :10:46.over whether to hand back two diplomatic compounds seized
:10:47. > :10:50.by the Obama administration last year.