20/12/2012

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:00:03. > :00:13.Those are the latest headlines from BBC World News. Now for the latest

:00:13. > :00:16.

:00:16. > :00:19.financial news with World Business Welcome to World Business Report.

:00:20. > :00:23.More heavy losses are expected from Research In Motion as the company

:00:23. > :00:33.enters the most important months of its history with the global launch

:00:33. > :00:35.

:00:35. > :00:42.of the Blackberry 10 just weeks away.

:00:42. > :00:46.The Bank of Japan expanded asset purchase programme again. There

:00:46. > :00:51.will be further stimulus to jump- start the ailing economy.

:00:51. > :01:01.His Nike running out of puff? The sportswear giant faces an uphill

:01:01. > :01:02.

:01:02. > :01:06.struggle in Europe and up will Will the Blackberry 10 rescue

:01:06. > :01:09.Research in Motion? That's the question that will be answered

:01:09. > :01:13.early in the new year when it launches its latest generation of

:01:13. > :01:17.phones. For the Blackberry maker, it's critical that users are

:01:17. > :01:23.excited and snap up its new line of smartphones as Research in Motion

:01:23. > :01:27.is expected to report more heavy losses later today. The company has

:01:27. > :01:30.seen its market share in the US dwindle to just 4% this year as the

:01:30. > :01:37.Blackberry struggles to compete with Apple's iPhone and Samsung's

:01:37. > :01:42.Galaxy smartphone. For Blackberry and its parent

:01:42. > :01:46.company, the next few months could be make or break. Investors care

:01:46. > :01:53.little about its earnings reports and instead are focused on what

:01:53. > :01:58.happens next. Early next year, they will unveil their long-awaited

:01:58. > :02:03.Blackberry 10. It has new software and a new operating system. It

:02:03. > :02:07.could be the firm's last chance to buy up -- win back a market it once

:02:07. > :02:11.dominated. The Blackberry was once the handset of choice for

:02:11. > :02:16.businesses and consumers around the world. As the pace of innovation

:02:16. > :02:21.picked up, they were left behind. In the increasingly competitive

:02:21. > :02:24.market, it is struggling to stand out. It must now come up with

:02:24. > :02:29.something rather special. If it is to reclaim a slice of the fast-

:02:29. > :02:34.moving market. This is a big difference from anything they have

:02:34. > :02:37.done in the past. It is a brand new operating system, rebuilt from the

:02:37. > :02:45.ground up. There is no other trick they can pall. Nor that all they

:02:45. > :02:49.can lever. This has to work. They are trying to save to the market,

:02:49. > :02:53.what you're doing now is not the correct way to do it. We are going

:02:54. > :02:58.to show you how to do it better and faster. The new Blackberry may

:02:58. > :03:02.attract customers and win that -- windows to have gone elsewhere,

:03:02. > :03:06.they must concentrate on their existing customers. The customer

:03:06. > :03:11.base is still growing, especially in emerging markets. The amount it

:03:11. > :03:15.makes from each is falling. Alongside cheaper handsets, that is

:03:16. > :03:21.cutting into profits. So can they win back those more lucrative

:03:21. > :03:24.customers? That is what the new device is intended to do. The

:03:25. > :03:30.launch in January could determine not only the short-term success of

:03:30. > :03:34.the company but also its long-term survival.

:03:34. > :03:40.Action from the Bank of Japan to stimulate the economy was widely

:03:40. > :03:48.anticipated after last weekend's election. In the last hour we have

:03:49. > :03:53.had it. We go to Singapore. Tell us more about the latest stimulus

:03:53. > :03:57.measure. There was some external pressure.

:03:57. > :04:02.An action they did. The Bank of Japan seems to have responded by

:04:02. > :04:07.further loosening its already sued a easy monetary policy by expanding

:04:07. > :04:12.its asset purchase programme by about 10 trillion yen. That is

:04:12. > :04:17.around $190 billion. The bank has been facing intense pressure from

:04:17. > :04:22.the incoming Prime Minister Shinzo Abe to jump-start the ailing

:04:22. > :04:28.Japanese economy. It has been sunk in stagnation for two decades. The

:04:28. > :04:32.central bank's move comes two days after the country voted into party

:04:32. > :04:36.the Conservative Party led by Shinzo Abe. They promised to

:04:36. > :04:40.improve public spending and pressured the central bank for more

:04:40. > :04:46.aggressive policy action. The bank kept interest rates unchanged but

:04:46. > :04:54.said it would look at reviewing its target inflation rate. Shinzo Abe

:04:54. > :04:57.wants it to be at 2%. Analysts are positive about the move. They said

:04:57. > :05:04.that at least to today's initiative gives a message to the market that

:05:04. > :05:07.the bank is willing to do something more.

:05:07. > :05:10.Sportswear giant Nike also reports quarterly results later today.

:05:10. > :05:17.There's huge interest on Wall Street in what the company has to

:05:17. > :05:20.say about global consumer spending. Back in September, it admitted

:05:20. > :05:30.orders for its goods in China had fallen, causing its shares to

:05:30. > :05:33.

:05:33. > :05:36.tumble. What are they getting run in China?

:05:36. > :05:44.We have to remember that the economy has slowed a little. That

:05:44. > :05:48.is hurting a few companies. You add local competitors that are in

:05:48. > :05:53.trouble, small and local brand in China have got too much stock of

:05:53. > :05:58.the market and you are seen extreme discounting. As a result, no brand

:05:58. > :06:03.can escape that. Especially nothing -- a brand that is the centre of

:06:03. > :06:07.industry. For Nike, when it comes to issues that is not the real

:06:07. > :06:12.problem. It is to do with the other clothing that it makes. It was

:06:12. > :06:17.necessarily the right size for the Chinese or Asian buyer. Again, with

:06:17. > :06:22.issues, tonight he is able to sell issues on performance. It has a

:06:22. > :06:29.technical edge. It is a strong brand. It is much harder to prove

:06:29. > :06:35.that age when you're talking about a T-shirt. When something else is

:06:35. > :06:39.50% off, it is harder to compete with them not on price. That is

:06:39. > :06:42.when the night he has more acute issues, in terms of clothing issues

:06:42. > :06:47.rather than shooting them Tories. The other problem is that many of

:06:47. > :06:50.these multinational companies, when they tried to push for aggressive

:06:50. > :06:54.growth, they pushed for just two bidders to buy stock aggressively

:06:54. > :07:00.so that they can report strong numbers back to US investors. That

:07:00. > :07:07.has happened here but as a result, it Nike may be suffering as a

:07:07. > :07:11.result of local competitors, but they have flooded the market.

:07:11. > :07:18.Nike, China is an important market. As well as the other Asian

:07:18. > :07:22.economies. How will it recover from this? China is hitting its numbers

:07:22. > :07:26.significantly. I think it will recover. In terms of shoes, the

:07:26. > :07:33.brand is doing well in China. It is considered aspirational and is

:07:33. > :07:37.doing well. The process that it is going through, it needs to get us

:07:37. > :07:42.to bid is to buy less. It needs to take a hit in terms of growth rate

:07:42. > :07:46.and we need to see this excess stock be cleared out. I do think

:07:46. > :07:51.that this is a one to two-year process. They won't see anything

:07:51. > :07:57.for a few years in China. We will get the numbers later. We have some

:07:57. > :08:00.other business stories: US budget talks remain deadlocked

:08:00. > :08:03.with the House of Representatives expected to pass a plan by

:08:03. > :08:07.Republican speaker John Boehner to raise taxes only on earnings over

:08:07. > :08:09.$1 million and the White House warning it will veto it. President

:08:10. > :08:13.Obama wants higher taxes for anyone earning over $400,000. Economists

:08:13. > :08:21.have warned that a failure to agree on tax and spending for next year

:08:21. > :08:26.could push the US into recession, the so-called fiscal cliff.

:08:26. > :08:29.More pressure on UBS. It's being investigated in Hong Kong over

:08:29. > :08:32.claims it tried to rig the local interbank interest rate, HIBOR.

:08:32. > :08:36.Earlier on Wednesday, the Swiss bank agreed to pay $1.5 billion in

:08:36. > :08:38.fines to regulators in the United States, UK and Switzerland for

:08:38. > :08:41.manipulating London's interbank offered rate, Libor, which is used

:08:41. > :08:50.to set interest rates for trillions of dollars of transactions around

:08:50. > :08:55.the world. The cruise liner Carnival is

:08:55. > :08:58.expected to report earnings do. They are expected to show a sharp

:08:58. > :09:05.fall. Because of the accident at the beginning of 2012. A fall in

:09:05. > :09:07.bookings as well as customer confidence has suffered.

:09:07. > :09:12.The big story for the markets in Asia is the Bank of Japan's

:09:12. > :09:17.stimulus. You can see in Japan there we are seeing a bit of a

:09:17. > :09:21.sell-off. Not surprising at all. You buy on the rumour and sell on

:09:21. > :09:26.the news. We have seen, since Monday, the Japanese market rising

:09:26. > :09:31.and rising. It is still above 10,000. Let us look at how the yen

:09:31. > :09:35.is trading. Following that announcement from the Bank of Japan.

:09:35. > :09:41.It is still relatively weak versus the dollar. Of course, it has been

:09:41. > :09:51.weaker than that in recent days. It is still helping boost exporters in