Browse content similar to 30/07/2012. Check below for episodes and series from the same categories and more!
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in Russia's main cathedral. Now for the latest financial news. | :00:14. | :00:21. | |
Welcome to World Business Report. Apple and Samsung had fought a | :00:21. | :00:25. | |
court in America for the latest round of their dispute over patents | :00:25. | :00:30. | |
in mobile phone devices. HSBC is due to reveal its first | :00:30. | :00:38. | |
half earnings, but our investor confidence is dropping after money- | :00:38. | :00:42. | |
laundering allegations. Japan's industrial output falls for | :00:43. | :00:50. | |
its third straight month amid fears that the recovery might be losing | :00:50. | :00:59. | |
momentum. It has been billed as the clash of | :00:59. | :01:04. | |
the titans. The war of words between Apple and Samsung in a | :01:04. | :01:10. | |
court this Sunday. The latest round of their patent battle is over | :01:10. | :01:17. | |
mobile devices. Together, they account for almost half of the | :01:17. | :01:20. | |
smartphone market, but they have seen their share prices hit record | :01:20. | :01:24. | |
highs cent to profits fuelled by these devices. | :01:24. | :01:30. | |
-- thanks to. Apple is known for its | :01:30. | :01:34. | |
distinctiveness. Its latest attempt to protect that will play out in | :01:34. | :01:39. | |
San Jose, California. They have accused Samsung of copying the | :01:39. | :01:49. | |
iPhone and iPad. Samsung has counter-sued, claiming that Apple | :01:49. | :01:53. | |
infringed its patent. Both deny the allegations. What makes this | :01:53. | :01:56. | |
dispute so interesting is that the two companies have a complex | :01:56. | :02:02. | |
relationship. While Samsung's smart phones and tablets compete with | :02:02. | :02:06. | |
Apple products, Samsung also sells components to Apple. This could | :02:06. | :02:13. | |
make reaching an agreement easier. Over the past couple of years, the | :02:13. | :02:16. | |
two might have clashed in court rooms around the world. With | :02:16. | :02:20. | |
impending litigation involving Google, it seems that Apple and its | :02:20. | :02:24. | |
rival, Samsung, are not the only ones who have a lot riding on the | :02:24. | :02:29. | |
outcome of this case. The beleaguered banking sector will | :02:29. | :02:33. | |
be in the spotlight this week. Hate SPC posts its first set of results | :02:33. | :02:38. | |
since a report by the US Senate says it allowed billions of dollars | :02:38. | :02:46. | |
in cash to be laundered by Mexican drug gangs -- HSBC. The bank has | :02:46. | :02:51. | |
announced it will cut 30,000 jobs over the next two years. This will | :02:51. | :02:56. | |
affect about one tenth of its global workforce. Big numbers. I am | :02:56. | :03:00. | |
joined by a banking analyst. They are expected to set aside a fair | :03:00. | :03:04. | |
amount of money for the selling of financial products, but at the same | :03:04. | :03:09. | |
time they are expected to turn in a profit of around $20 billion. Do | :03:09. | :03:13. | |
those figures tally with your analysis? | :03:13. | :03:19. | |
I heard something like 16.8 billion. Within that there is a 3 billion | :03:19. | :03:22. | |
dollar Game when they sold a credit card business with in America last | :03:22. | :03:32. | |
:03:32. | :03:38. | ||
laundering allegations that I mentioned earlier. If it doesn't | :03:38. | :03:41. | |
hit them now in the current crop of numbers, presumably it will for the | :03:41. | :03:46. | |
second half of the year. No provision has been made for this | :03:46. | :03:54. | |
fine yet. They have a lot of litigation. We don't know how big | :03:54. | :03:57. | |
these fines will be. They have a little bit put away but they don't | :03:57. | :04:00. | |
want to make headlines because they haven't yet been fined. | :04:00. | :04:04. | |
They obviously want to say that they are in discussion and they | :04:04. | :04:09. | |
will see what happens. What about the position of Stuart | :04:09. | :04:14. | |
Glover, he is the CEO. He has apologised for the money-laundering | :04:14. | :04:19. | |
allegations - is there a sense that if the numbers come out below what | :04:19. | :04:23. | |
the market is expecting, that could be the queue to get rid of him? | :04:23. | :04:28. | |
Absolutely not, Stuart Gulliver is very safe. He has been very busy | :04:28. | :04:33. | |
putting his strategy in and making cost cuts. I think they sold almost | :04:33. | :04:37. | |
30 businesses since May last year when they announced the changes. | :04:37. | :04:42. | |
They are really getting the bank moving forward. I think he is in a | :04:42. | :04:47. | |
pretty safe position in terms of the allegations. He was running an | :04:47. | :04:50. | |
investment bank at the time. There are a lot of other board members | :04:50. | :04:57. | |
there, including the chairman, who were also on the board at the time. | :04:57. | :05:04. | |
Even if he is saved, they could be other people will be booted out. | :05:04. | :05:09. | |
You could argue that no-one's hands were entirely clean. | :05:09. | :05:13. | |
At the end of the day, the board knew they bought a Mexican bank in | :05:13. | :05:18. | |
2002. One of the joys of working in developing markets is faster growth | :05:18. | :05:22. | |
and earnings. The downside is that you have to be aware that sometimes | :05:22. | :05:27. | |
business is conducted the way that it wouldn't be done in the | :05:27. | :05:30. | |
developed markets. You have to be very aware of that. Clearly this is | :05:30. | :05:34. | |
something they missed. We will get those numbers in a few | :05:34. | :05:40. | |
hours' time. Two of Europe's leading carriers | :05:40. | :05:44. | |
put out their latest financial results. They are right and air and | :05:44. | :05:50. | |
Air France. Those numbers tell dramatically different stories. | :05:50. | :05:53. | |
Ryanair should see its profits soaring, but Air France is likely | :05:53. | :05:58. | |
to go in the opposite direction, posting deep losses. They lost | :05:58. | :06:00. | |
almost $500 million in the first half of this year. They are | :06:00. | :06:04. | |
planning to lay off 5,000 staff. Will this be enough to put it back | :06:05. | :06:14. | |
:06:15. | :06:16. | ||
into profit? Ryanair's budgeted through hard | :06:16. | :06:19. | |
times. Air France has taken the brunt of the storm. Last year they | :06:19. | :06:26. | |
lost almost $1 billion, and it is on course to do the same again.... | :06:26. | :06:36. | |
:06:36. | :06:37. | ||
Its managers would like to shed one tenth of the workforce. 5,000 staff. | :06:37. | :06:43. | |
Unions are deciding whether to accept. They are becoming aware | :06:43. | :06:46. | |
that if something doesn't change, the airlines will be in a very | :06:46. | :06:56. | |
difficult position. I imagine that other airlines will follow suit. | :06:56. | :06:59. | |
Cutting costs is the first step as the managers try to turn the | :06:59. | :07:03. | |
company around in a cut-throat market. There are 320 airlines | :07:03. | :07:07. | |
across Europe. All of them are cutting prices to the quick as they | :07:07. | :07:11. | |
scrabble to sell tickets. That is why Air France can't make any money, | :07:11. | :07:15. | |
even given the recent pick up in passenger numbers. There is an | :07:15. | :07:18. | |
urgent need to consolidate throughout the sector in Europe. | :07:18. | :07:24. | |
Air France is one of the big groups of airlines which will be expected | :07:24. | :07:34. | |
:07:34. | :07:34. | ||
to buy up the smaller.... They need to sort out their internal issues. | :07:35. | :07:38. | |
They need to restructure, they need to get their costs down. Until that | :07:38. | :07:42. | |
is done, and it will take some time, they will not be in a position to | :07:42. | :07:52. | |
:07:52. | :07:52. | ||
go shopping for other airlines. Air France has said it needs 7.5 | :07:52. | :07:57. | |
billion. If job-cutting does not do it, they will go to the state and | :07:57. | :08:01. | |
ask them to pump in more. Japan's industrial production fell | :08:01. | :08:07. | |
unexpectedly last month. Good morning in Singapore. These numbers | :08:07. | :08:11. | |
are not very encouraging. How bad are they? Should we hide under the | :08:11. | :08:18. | |
covers now? It is a third straight month of | :08:18. | :08:22. | |
declines as Japan continues to feel the impact of this global economic | :08:22. | :08:27. | |
slowdown. You have the strong yen against the US dollar. Their | :08:27. | :08:32. | |
industrial output inched lower by 0.1%. This was due to falling | :08:32. | :08:37. | |
output from auto makers and the electronic industry. You also have | :08:37. | :08:43. | |
the yen appreciating. Auto makers are moving production overseas and | :08:43. | :08:52. | |
demand is low abroad. For July, manufacturers are still expecting a | :08:52. | :08:56. | |
4.5% increase. One Japanese economist has said the numbers are | :08:56. | :08:59. | |
disappointing and though they could be a recovery this month it will be | :08:59. | :09:02. | |
temporary and the economy will continue to languish for the months | :09:02. | :09:08. | |
ahead. The Week In Numbers, the Economist said, would not be enough | :09:08. | :09:18. | |
:09:18. | :09:31. | ||
for the Bank of Japan to ease... -- The point you are making their | :09:31. | :09:34. | |
about the expectations of Central Bank activity helping to lift the | :09:34. | :09:43. |