28/08/2012 World Business Report


28/08/2012

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been affected more. A man allegedly supported s supported silitants. For

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the latest financial news now with Hello and a very warm welcome.

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You're with World Business Report. International inspectors arrive in

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Portugal to see if the country's fitting to the term -- sticking to

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figures out today show the US housing market has finally turned

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the corner? I'm Rico Hizon in Singapore.

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Slumping orders from clients of Nokia and Motorola.

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Good to have you with us. The focus on Europe's most debts-laden

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countries shifts from Greece to porch -- debt-laden countries

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today. Inspectors arrived for their fifth visit to Lisbon. Their

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mission is to see if the country is sticking to the terms of its

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bailout. Portugal has cut state spending, it's raised taxes and

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made progress with privatisation but the recession is deepening and

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the country could requirefort bailout help before it can return

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to the public bond market. Unlike Greece, Lisbon's wasted no

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time in getting to grips with its wayward finances. Yet the

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inspectors seen here on their last visit may find it's not the pace of

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reforms but the seemingly ever- skhrining economy and rising

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joblessness which may leave Lisbon well short of its targets. So what

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progress can Portugal point to? So far, reforms have included selling

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stakes in state utilities to bolster Lisbon's finances. The hope

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now is that Portugal will be able to hang on to its euro currency,

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even if Greece is forced out. Perhaps the biggest threat is a

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full state financial collapse across the border at its eurozone

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neighbour, Spain. The one big issue is bringing down the costs for

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Portuguese government so they can fund themselves in the market.

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We're going to have to see progress, progress towards a proper fiscal

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and banking on top of the Monetary Union and the intermediate crisis

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measures that are being put in place by European leaders. If these

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are applied to Portugal as well, they'll be quite powerful in

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helping them return to the markets. Today, the inspectors will start

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going over the country which is enduring deep hardship. It may need

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more time. At least another year to meet its present debt targets.

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Shares in Foxconn International have been hit hard today falloge

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their worst set of results. Nice to see you, Ricoism tell us why

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Foxconn is having such a tough time? Well, you have slumping

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orders, Sally, from clients such as Nokia and Motorola. That's why

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we're seeing Foxconn International Holdings' stock price plunging by

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almost 8%. We want to make it clear that they do not manufacture Apple

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products. The losses of FIH are during the January to June period

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with more than 10 times the amount compared to the same period last

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year. The first half net loss came in at $226 million US, compared to

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an $18 million loss a year earlier. The company is blaming slowing

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global demand for mobile phones, and falling prices of smartphones.

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Looking ahead, officials expect challenging global economic

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conditions and they said this will continue to cast uncertainty in the

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business environment. Foxconn International Holdings, a parent

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company, as I mentioned helps assemble Apple iPhones and iPads.

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Things are not looking bright for one of Warren Buffett's

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investments? That's right. His 10% investment in BYD which is a

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Chinese car-maker which also has exposure in solar panels is

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starting to turn sour. You have the 94% drop in first-half earnings,

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pushing the stock price down today more than 3%. Some analysts are

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saying that Buffett's halo is beginning to fade with the Chinese

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firm blaming the profit slide on slowing car sales, a weak domestic

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economy and the spreading of the eurozone debt criticise. If you

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take a look at its rivals, they're faring better than BYD, showing a

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profit gain in the first half of this year. And BYD's solar business

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is also suffering, Sally. They're facing pressure in the US and

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Europe where the Chinese are accused of undercutting the market

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for cheaper products. Thank you very much. Good to see you. Let's

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look at a team now for the health of the US economy coming out today.

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It's about the housing market. It will show aapartmently for the

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first time in a long time that there may be a turning point for

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the housing market. Over the past few weeks, a string of data's

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indicated that for years, falling property prices in America could be

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over. That could mean a consumer recovery beckons.

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Hi. How are you? Good. How are you? Kimberley is on the market. With

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her current home already sold, she's actively looking for a new

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place to live. I do feel as though houses are kind of starting to move

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now. I don't know if that's because I sold my house and I'm getting

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nervous but it does seem like you see more under contract signs as

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you drive along the streets. It's not just existing homes that are

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seeing movement, new homes are too. Behind this new housing development,

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the sixth largest home builder in the US. We had some of the worst

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housing markets we had seen in seven decades and the last four or

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five years it's been pretty tough. But this year it for once feels

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like it's not a head fake. We're actually seeing a recovery.

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Thoroughly signs of the beginning of a recovery. While -- The early

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signs of the beginning of a recovery. The shadow inventory is

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looming. There's still a large pipeline of foreclosures that need

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to be cleared. Delinquency rates have come down but they're still

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elevated. We'll be seeing a steady flow of distressed properties in to

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the market. That, coupled with the fragile US economy, means the

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recovery could be bumpy. It's been almost seven years since the

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housing bubble burst. People are looking for a reason to be

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optimistic. And being here surrounded by new homes being built

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and sold, there's a sense that some activity is reason enough to cheer.

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Other business stories - in the wake of Apple's US court victory

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over Samsung, Apple has asked a court to ban eight Samsung mobile

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phones in the US. It's from the Galaxy Smartphone range but does

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not include the S3 as this model is one of the most recent versions and

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was not on the market when the legal battle began. Samsung has

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asked the court to delete an injunction on its Galaxy Tab 10.1

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after the youry found it did not infringe Apple's design patent for

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the iPad tablet. An intense fire has spread to a third fuel tank on

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Monday nearly three days after an explosion killed at least 41 people

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and injured more than 100 people. A third tank ignited at the refinery

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which had been in flames since Saturday last. Officials have said

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a gas leak led to the blast. Investigators have yet to determine

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the precise causes. Philippine Airlines has ordered 54 Airbus

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aircraft. The orders will plia key role in revitalising travel. Airbus

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is expected to have offered hefty discounts as it's engulfed in an

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ongoing price war with Boeing. Most of the main markets in Asia seeing

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declines. Australia bucking the trend there at the bottom. One of

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the stories dominating sentiment on the market in Asia is the Japanese

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Government has downgraded its assessment of its gross outlook. So

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the world's third biggest economy, the assessment for growth there is

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downgraded. They're saying it could shrink this quarter because there's

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