Browse content similar to 01/02/2012. Check below for episodes and series from the same categories and more!
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set up emergency shelters. Those are the latest headlines. Time for | :00:02. | :00:12. | |
the latest money news. Here is Sally and World Business Report. | :00:12. | :00:17. | |
Hello and a warm welcome to World Business Report. Here are the | :00:17. | :00:22. | |
headlines - Facebook is set to launch its share sale today. The | :00:22. | :00:28. | |
company wants to raise $5 billion on the stock market. Portugal wants | :00:28. | :00:34. | |
to borrow $2 billion but investors worry whether they will get their | :00:34. | :00:37. | |
money back. I'm Rico Hizon. Manufacturing activity in China | :00:37. | :00:43. | |
continues to improve as a spring festival in January helps boost the | :00:43. | :00:53. | |
country's domestic consumption. Good to have you with us. There has | :00:53. | :00:57. | |
been an awe pull lot of anticipation about it. It looks | :00:57. | :01:02. | |
like Facebook will start its share sale today. The company wants to | :01:02. | :01:06. | |
raise around $5 billion. That would make it the biggest first-time | :01:07. | :01:14. | |
any. It would value Facebook at more | :01:14. | :01:21. | |
than companies like Disney. From New York, here is our correspondent. | :01:21. | :01:26. | |
This is an adventure sport company in this seven countries this. | :01:26. | :01:31. | |
Business has been built entirely using Facebook. The founder says | :01:31. | :01:36. | |
its been a great fit. We tis almost exclusively through | :01:36. | :01:42. | |
Facebook. Our first event was only two years ago. We were hoping for | :01:42. | :01:52. | |
500 people. We had a marketing budget of $8,200. We filled 5,000 | :01:52. | :01:54. | |
spots. Facebook sizable profits come from | :01:54. | :01:59. | |
companies that place ads on your Facebook page or attach them to a | :01:59. | :02:03. | |
piece of interesting content, what is known as sponsored stories. | :02:03. | :02:08. | |
Those two stories are 90% of Facebook's profit. The power of | :02:08. | :02:14. | |
Facebook certainly when it comes to generating advertising revenue, is | :02:14. | :02:18. | |
it has masses of information and it can really target advertisements | :02:19. | :02:24. | |
directly to the individual. Sometimes it's not even a company | :02:24. | :02:29. | |
but a friend telling you about a brand that they happen to like. | :02:29. | :02:34. | |
It used to be that businesses could tis, right, and people would either | :02:34. | :02:38. | |
respond or not. Now businesses can build a presence on Facebook and | :02:38. | :02:42. | |
let their own customers do their advertising for them as they spread | :02:42. | :02:46. | |
the word to their friends. But Facebook has other cash | :02:46. | :02:50. | |
generators. They take a slice of all applications that use Facebook | :02:50. | :02:56. | |
as a platform and they sell highly profitable virtual gifts online. | :02:56. | :03:01. | |
There are new ideas like Facebook's own currency, Facebook credit. | :03:01. | :03:05. | |
There are companies which use Facebook credit to create a loyalty | :03:05. | :03:10. | |
programme and say this could be a huge money spirn in the future. | :03:10. | :03:15. | |
We are predicting that every year for the next five years, that the | :03:15. | :03:19. | |
revenue from Facebook credits will double for the next five years and | :03:19. | :03:25. | |
the - which would lead it to to be a $16 billion business by the end | :03:25. | :03:28. | |
of 2016. Looking in may be free but all your information and | :03:28. | :03:30. | |
connections are worth a lot to Facebook, whether you like it or | :03:31. | :03:39. | |
not. Later this morning, Portugal will | :03:39. | :03:44. | |
attempt to raise $-- 1.5 billion euros. Portugal would have been | :03:44. | :03:49. | |
able to borrow that money at a low interest and pay it back over many | :03:49. | :03:53. | |
years but confidence has evaporated and many fear Portugal will have to | :03:53. | :04:00. | |
go to creditors and ask for a large part of its debt to be forgiven. | :04:00. | :04:05. | |
Flee markets are the new trend in Portugal. They are a way for people | :04:05. | :04:09. | |
to sell pe sessions to make ends meet and others snap up bargains. | :04:09. | :04:14. | |
For good reason, thanks to the government's programme of cuts, | :04:14. | :04:19. | |
national spending is set to be cut by 4%. The country's deficit in | :04:19. | :04:23. | |
proportion to GDP has continued to soar. The government insists it | :04:23. | :04:30. | |
needs no more bailout money but the yields on its bonds recently spiked. | :04:30. | :04:33. | |
The markets suspect Portugal will have to write down its debt. | :04:33. | :04:37. | |
Given the high level of debt, it's clearly a risk that Portugal will | :04:37. | :04:42. | |
have to restructure its debts in order to get them down to a | :04:42. | :04:48. | |
sustainable level. Not only that, it's possible it might have to | :04:48. | :04:51. | |
contemplate leaving the eurozone to boost growth and get it out of | :04:51. | :05:00. | |
recession as well. But that would be a big blow for | :05:00. | :05:03. | |
the whole eurozone. The recovery plan is that only Greece will | :05:03. | :05:07. | |
default. If they have to say that Greece and | :05:07. | :05:14. | |
Portugal have had to restructure their debt, they feel that might | :05:14. | :05:18. | |
undermine confidence in other countries and lead to a chain | :05:18. | :05:23. | |
reaction across the eurozone. Portugal is defying public anger | :05:23. | :05:28. | |
and cutting spending. It says it can pay back all its blound money | :05:28. | :05:37. | |
by September next year. But if the yields remain high, it will have to | :05:37. | :05:45. | |
ask for another bailout. It is suspected they will have to accept | :05:45. | :05:52. | |
a Greek-style drawdown. Now Disney is expanding its reach | :05:52. | :05:56. | |
in India. Rico Hizon is in Singapore with the details on that. | :05:56. | :06:02. | |
Nice to see you. Tell us what Disney is up to? | :06:02. | :06:06. | |
Well, the American entertainment giant sees India as a very | :06:06. | :06:11. | |
lucrative market for its film, television and interactive content. | :06:11. | :06:16. | |
It's expanding its footprint there by acquiring a controlling stake in | :06:16. | :06:23. | |
UTV, which is the country's largest media and entertainment company. | :06:23. | :06:27. | |
The financial terms were not revealed but Disney did say the two | :06:27. | :06:31. | |
companies plan to integrate operations which will produce both | :06:31. | :06:35. | |
UTV films and Disney-branded local films. This will help increase the | :06:36. | :06:43. | |
US media giant's reach in the country, which is more than one | :06:43. | :06:50. | |
billion strong. This already owns three children's markets. | :06:50. | :06:55. | |
Let's talk about China. Some good news out about the money sector | :06:56. | :06:59. | |
there which has brought cheer to the market? | :06:59. | :07:05. | |
Absolutely. We saw an improvement for the index in the month of | :07:05. | :07:10. | |
January, indicating that the economic slow down may be | :07:10. | :07:16. | |
stabilising. The PMI rose to 50.5, up slightly from 50.3 in December. | :07:16. | :07:26. | |
Last November was the worst. The PMI was 49. A roading below 50 | :07:26. | :07:32. | |
suggests a contracts. Analysts are suggesting, Sally, that the week- | :07:32. | :07:41. | |
long spring festival holiday, which helped boost the country's domestic | :07:41. | :07:47. | |
consumption, led basically by industries which include the likes | :07:47. | :07:53. | |
of tobacco, food processing and food production. This strong demand, | :07:53. | :07:59. | |
basically offset Europe's sovereign debt crisis which has impacted the | :07:59. | :08:03. | |
world's second-largest economy over the past year. On some economists | :08:03. | :08:09. | |
are concerned whether the PMI number above 50 can be sustained. | :08:09. | :08:15. | |
They say if it continues, exports could weaken and bring it below 50. | :08:15. | :08:19. | |
It the government imposes rate cuts and more fiscal pressures, this | :08:19. | :08:24. | |
could keep the number above 50. We will have to see what the PMI shows | :08:24. | :08:28. | |
over the next few months. Sally. Thank you, Rico, in Singapore. | :08:28. | :08:31. | |
Amazon warned it could make a loss in the first three months of this | :08:31. | :08:35. | |
year. That follows a sharp drop in profits at the end of 2011. The | :08:36. | :08:39. | |
company is investing heavily in its online retailing business as well | :08:40. | :08:45. | |
as new convenient furs. The Kindle e-book is one of those. Apple | :08:45. | :08:51. | |
barely makes any money on the device or possibly even a loss. It | :08:51. | :08:59. | |
looks like France has won a huge deal to sell combat jets to India. | :08:59. | :09:09. | |
:09:09. | :09:12. | ||
They are going to buy 1. 26 jets. A family is considering taking | :09:12. | :09:18. | |
fashion shares which has been trading in Milan since 1976. They | :09:18. | :09:25. | |
will meet to decide whether they buy shares. Markets, as Rico | :09:25. | :09:32. | |
Chinese manufacturing number which proves to be more positive than we | :09:32. | :09:35. | |
expected. That boosted the markets but they are fairly flat at the | :09:35. | :09:38. | |
moment. We are waiting for that conclusion of debt resf debt res | :09:38. | :09:43. |