:00:02. > :00:12.set up emergency shelters. Those are the latest headlines. Time for
:00:12. > :00:17.the latest money news. Here is Sally and World Business Report.
:00:17. > :00:22.Hello and a warm welcome to World Business Report. Here are the
:00:22. > :00:28.headlines - Facebook is set to launch its share sale today. The
:00:28. > :00:34.company wants to raise $5 billion on the stock market. Portugal wants
:00:34. > :00:37.to borrow $2 billion but investors worry whether they will get their
:00:37. > :00:43.money back. I'm Rico Hizon. Manufacturing activity in China
:00:43. > :00:53.continues to improve as a spring festival in January helps boost the
:00:53. > :00:57.country's domestic consumption. Good to have you with us. There has
:00:57. > :01:02.been an awe pull lot of anticipation about it. It looks
:01:02. > :01:06.like Facebook will start its share sale today. The company wants to
:01:07. > :01:14.raise around $5 billion. That would make it the biggest first-time
:01:14. > :01:21.any. It would value Facebook at more
:01:21. > :01:26.than companies like Disney. From New York, here is our correspondent.
:01:26. > :01:31.This is an adventure sport company in this seven countries this.
:01:31. > :01:36.Business has been built entirely using Facebook. The founder says
:01:36. > :01:42.its been a great fit. We tis almost exclusively through
:01:42. > :01:52.Facebook. Our first event was only two years ago. We were hoping for
:01:52. > :01:54.500 people. We had a marketing budget of $8,200. We filled 5,000
:01:54. > :01:59.spots. Facebook sizable profits come from
:01:59. > :02:03.companies that place ads on your Facebook page or attach them to a
:02:03. > :02:08.piece of interesting content, what is known as sponsored stories.
:02:08. > :02:14.Those two stories are 90% of Facebook's profit. The power of
:02:14. > :02:18.Facebook certainly when it comes to generating advertising revenue, is
:02:19. > :02:24.it has masses of information and it can really target advertisements
:02:24. > :02:29.directly to the individual. Sometimes it's not even a company
:02:29. > :02:34.but a friend telling you about a brand that they happen to like.
:02:34. > :02:38.It used to be that businesses could tis, right, and people would either
:02:38. > :02:42.respond or not. Now businesses can build a presence on Facebook and
:02:42. > :02:46.let their own customers do their advertising for them as they spread
:02:46. > :02:50.the word to their friends. But Facebook has other cash
:02:50. > :02:56.generators. They take a slice of all applications that use Facebook
:02:56. > :03:01.as a platform and they sell highly profitable virtual gifts online.
:03:01. > :03:05.There are new ideas like Facebook's own currency, Facebook credit.
:03:05. > :03:10.There are companies which use Facebook credit to create a loyalty
:03:10. > :03:15.programme and say this could be a huge money spirn in the future.
:03:15. > :03:19.We are predicting that every year for the next five years, that the
:03:19. > :03:25.revenue from Facebook credits will double for the next five years and
:03:25. > :03:28.the - which would lead it to to be a $16 billion business by the end
:03:28. > :03:30.of 2016. Looking in may be free but all your information and
:03:31. > :03:39.connections are worth a lot to Facebook, whether you like it or
:03:39. > :03:44.not. Later this morning, Portugal will
:03:44. > :03:49.attempt to raise $-- 1.5 billion euros. Portugal would have been
:03:49. > :03:53.able to borrow that money at a low interest and pay it back over many
:03:53. > :04:00.years but confidence has evaporated and many fear Portugal will have to
:04:00. > :04:05.go to creditors and ask for a large part of its debt to be forgiven.
:04:05. > :04:09.Flee markets are the new trend in Portugal. They are a way for people
:04:09. > :04:14.to sell pe sessions to make ends meet and others snap up bargains.
:04:14. > :04:19.For good reason, thanks to the government's programme of cuts,
:04:19. > :04:23.national spending is set to be cut by 4%. The country's deficit in
:04:23. > :04:30.proportion to GDP has continued to soar. The government insists it
:04:30. > :04:33.needs no more bailout money but the yields on its bonds recently spiked.
:04:33. > :04:37.The markets suspect Portugal will have to write down its debt.
:04:37. > :04:42.Given the high level of debt, it's clearly a risk that Portugal will
:04:42. > :04:48.have to restructure its debts in order to get them down to a
:04:48. > :04:51.sustainable level. Not only that, it's possible it might have to
:04:51. > :05:00.contemplate leaving the eurozone to boost growth and get it out of
:05:00. > :05:03.recession as well. But that would be a big blow for
:05:03. > :05:07.the whole eurozone. The recovery plan is that only Greece will
:05:07. > :05:14.default. If they have to say that Greece and
:05:14. > :05:18.Portugal have had to restructure their debt, they feel that might
:05:18. > :05:23.undermine confidence in other countries and lead to a chain
:05:23. > :05:28.reaction across the eurozone. Portugal is defying public anger
:05:28. > :05:37.and cutting spending. It says it can pay back all its blound money
:05:37. > :05:45.by September next year. But if the yields remain high, it will have to
:05:45. > :05:52.ask for another bailout. It is suspected they will have to accept
:05:52. > :05:56.a Greek-style drawdown. Now Disney is expanding its reach
:05:56. > :06:02.in India. Rico Hizon is in Singapore with the details on that.
:06:02. > :06:06.Nice to see you. Tell us what Disney is up to?
:06:06. > :06:11.Well, the American entertainment giant sees India as a very
:06:11. > :06:16.lucrative market for its film, television and interactive content.
:06:16. > :06:23.It's expanding its footprint there by acquiring a controlling stake in
:06:23. > :06:27.UTV, which is the country's largest media and entertainment company.
:06:27. > :06:31.The financial terms were not revealed but Disney did say the two
:06:31. > :06:35.companies plan to integrate operations which will produce both
:06:36. > :06:43.UTV films and Disney-branded local films. This will help increase the
:06:43. > :06:50.US media giant's reach in the country, which is more than one
:06:50. > :06:55.billion strong. This already owns three children's markets.
:06:56. > :06:59.Let's talk about China. Some good news out about the money sector
:06:59. > :07:05.there which has brought cheer to the market?
:07:05. > :07:10.Absolutely. We saw an improvement for the index in the month of
:07:10. > :07:16.January, indicating that the economic slow down may be
:07:16. > :07:26.stabilising. The PMI rose to 50.5, up slightly from 50.3 in December.
:07:26. > :07:32.Last November was the worst. The PMI was 49. A roading below 50
:07:32. > :07:41.suggests a contracts. Analysts are suggesting, Sally, that the week-
:07:41. > :07:47.long spring festival holiday, which helped boost the country's domestic
:07:47. > :07:53.consumption, led basically by industries which include the likes
:07:53. > :07:59.of tobacco, food processing and food production. This strong demand,
:07:59. > :08:03.basically offset Europe's sovereign debt crisis which has impacted the
:08:03. > :08:09.world's second-largest economy over the past year. On some economists
:08:09. > :08:15.are concerned whether the PMI number above 50 can be sustained.
:08:15. > :08:19.They say if it continues, exports could weaken and bring it below 50.
:08:19. > :08:24.It the government imposes rate cuts and more fiscal pressures, this
:08:24. > :08:28.could keep the number above 50. We will have to see what the PMI shows
:08:28. > :08:31.over the next few months. Sally. Thank you, Rico, in Singapore.
:08:31. > :08:35.Amazon warned it could make a loss in the first three months of this
:08:36. > :08:39.year. That follows a sharp drop in profits at the end of 2011. The
:08:40. > :08:45.company is investing heavily in its online retailing business as well
:08:45. > :08:51.as new convenient furs. The Kindle e-book is one of those. Apple
:08:51. > :08:59.barely makes any money on the device or possibly even a loss. It
:08:59. > :09:09.looks like France has won a huge deal to sell combat jets to India.
:09:09. > :09:12.
:09:12. > :09:18.They are going to buy 1. 26 jets. A family is considering taking
:09:18. > :09:25.fashion shares which has been trading in Milan since 1976. They
:09:25. > :09:32.will meet to decide whether they buy shares. Markets, as Rico
:09:32. > :09:35.Chinese manufacturing number which proves to be more positive than we
:09:35. > :09:38.expected. That boosted the markets but they are fairly flat at the
:09:38. > :09:43.moment. We are waiting for that conclusion of debt resf debt res