:00:15. > :00:20.of the seven Tour de France titles. Time for the latest financial news.
:00:20. > :00:26.A very warm welcome to World Business Report. The headlines: A
:00:26. > :00:34.mobile device, perhaps an operating system? The blogosphere is buzzing.
:00:34. > :00:38.What will Facebook reveal today? The share prices of Apple's Asian
:00:38. > :00:46.suppliers of screens and other components continue to decline,
:00:47. > :00:51.amid reports that it is scaling back what -- orders of parts.
:00:51. > :01:01.We look at how Japanese carmakers are trying to regain their market
:01:01. > :01:02.
:01:02. > :01:05.position. Facebook has invited members of the
:01:05. > :01:10.press to a special event at its corporate headquarters in
:01:10. > :01:14.California. The sorts of invites are rare for the social media giant
:01:14. > :01:19.and the blogosphere is buzzing with speculation about what the company
:01:19. > :01:24.is going to stay. Facebook stock is still well down from where it was
:01:24. > :01:27.in May when it listed. Investors are hoping for something big,
:01:27. > :01:35.possibly around the mobile sector where the company is struggling to
:01:35. > :01:39.make money. What do you think they will say?
:01:39. > :01:45.think it will likely be software related, possibly a tie-up with a
:01:45. > :01:48.telephone bender. Maybe the announcement of a Facebook fine. We
:01:48. > :01:54.will see something that will encourage advertisers and investors
:01:54. > :01:59.to believe that Facebook can make money. Let's talk about the issue.
:01:59. > :02:04.That has been the main issue. There is no doubt that it has got uses,
:02:04. > :02:11.but it is how those users spend their time on Facebook and weather
:02:11. > :02:18.that generates profits for the company. In UK and America, $10 per
:02:18. > :02:23.user per year revenue. In Asia, and in other developing countries, you
:02:23. > :02:29.measure it incense. What Facebook has to do is to try to deliver more
:02:29. > :02:35.money per user to its advertisers and ultimately to its investors.
:02:35. > :02:38.How would that generate more profit, what it has to say today? It is
:02:38. > :02:43.about amplifying brands, perhaps the one brand that has not been
:02:43. > :02:47.leveraged enough is its own. If you go into a mobile phone shop and you
:02:47. > :02:51.see a Facebook phone, and you are re young person who spends hours
:02:51. > :02:59.and hours a day on Facebook, then this find may be the one that you
:02:59. > :03:03.choose to buy. -- a mobile phone. Windows 8 and Anne Droid are
:03:03. > :03:08.basically pieces of software. They do not mean anything emotionally.
:03:08. > :03:17.But Facebook is driven by emotion. So and will find that could be the
:03:17. > :03:23.answer. -- amplifying. What if it was to reveal an operating system
:03:23. > :03:29.of its own? It would have to do that bit there wanted to become the
:03:29. > :03:34.4th of the big 3. Apple, Microsoft and Google all have operating
:03:34. > :03:39.systems. It is a basis on which to build applications. Facebook does
:03:39. > :03:44.not have an operating system, but it has an environment, if it can
:03:44. > :03:54.turn it into a challenger, then maybe it has got some revenue
:03:54. > :03:56.
:03:56. > :04:06.streams to come. Shares in suppliers to Apple are
:04:06. > :04:08.
:04:08. > :04:16.falling in Asia. What is going on? Apple shares have
:04:16. > :04:21.been slipping as well. It is all about media reports that Apple has
:04:21. > :04:24.slashed orders with suppliers of liquid crystal displays, LCD panels,
:04:24. > :04:34.for its iPhone fight in this current quarter are due to weak
:04:34. > :04:34.
:04:34. > :04:39.demand. -- iPhone 5. But we will see the full picture. They will
:04:39. > :04:49.report their earnings on 23rd January. All of the talk is hurting
:04:49. > :04:54.
:04:54. > :05:00.supply share prices. They are dipping as much as 7%. The company
:05:00. > :05:05.that resembles the iPads and iPhones, down more than 3%. --
:05:05. > :05:12.assembles. They have lost gradually to Samsung as well as smaller and
:05:12. > :05:18.fast-growing rivals in China. Samsung has overtaken Apple in
:05:18. > :05:22.market share. But Apple still has more than 70% of the profits in the
:05:22. > :05:28.entire smartphone sector. Research shows that Samsung will sell 290
:05:28. > :05:38.million smartphones D C, compared to iPhone sales of 180 million
:05:38. > :05:43.units. This year. It is getting tougher in the smartphone space.
:05:43. > :05:46.Let's look at the car industry. Japanese car giants are still
:05:46. > :05:52.hurting from the politically driven backlash they suffered at the hands
:05:52. > :05:56.of the Chinese consumers. Toyota and Nissan say their sales to shot
:05:56. > :06:04.-- to China has shrunk due to the island is bit. But they and other
:06:04. > :06:10.Asian car giants are hoping to come back. -- Island dispute. They are
:06:10. > :06:16.showing their latest models at the Detroit Motor Show.
:06:16. > :06:21.Toyota showed off its version of the next generation. It is perhaps
:06:21. > :06:26.a reflection of the company's new found confidence, which is well
:06:26. > :06:30.placed, because there are reports that it is once again the world's
:06:30. > :06:34.top seller. It comes after a difficult years, in which has
:06:35. > :06:40.suffered recalls in the US, where the related problems, and more
:06:40. > :06:45.recently, a Chinese boycott of its cars, a bit -- because of a
:06:45. > :06:51.political dispute. Back in de trot, things are looking up.
:06:51. > :06:56.-- Detroit. We think that things are moving in a good direction. It
:06:56. > :07:00.is driven by these new products. They are exciting with new
:07:00. > :07:07.technology, great new styling from Toyota, that you probably have not
:07:07. > :07:13.seen from us before. But nobody can afford to keep it easy. Young guy
:07:13. > :07:18.has benefited from the boycott. -- Hyundai. It is not going to give up
:07:18. > :07:24.any gains that it made easily. Now it is focusing on the luxury market
:07:24. > :07:32.and this is its latest offering. It has not been a bad year for de
:07:32. > :07:35.trot's home-grown car industry. -- Detroit. It is not the Ali reason
:07:36. > :07:45.that General Motors has to celebrate. Last year they enjoyed
:07:46. > :07:47.
:07:47. > :07:51.their best sales at up in China. -- sales ever.
:07:51. > :07:55.The Federal Reserve chairman is saying that it is important that
:07:55. > :08:00.Congress raised America's borrowing limit to avoid a potential default
:08:00. > :08:05.on US debt. He said the approaching debt limit is one of the critical
:08:05. > :08:08.fiscal watersheds for the Government in coming weeks. The
:08:08. > :08:11.Treasury Secretary has told congressional leaders that the US
:08:11. > :08:16.government will exhaust its borrowing limit as soon as mid-
:08:16. > :08:21.February, earlier than expected. One of the biggest names on
:08:21. > :08:25.Britain's high streets, HMV, has announced that it is calling in the
:08:25. > :08:30.administrators. It has been trading for more than 90 years. It has been
:08:30. > :08:35.struggling in the face of online competition. It has got 240 stores
:08:35. > :08:39.in the UK and employs more than 4,000 people. Its shares will be
:08:39. > :08:42.suspended when trading starts in London this morning.
:08:42. > :08:51.The photo showing website Instagram has seen a massive drop off in
:08:51. > :08:55.users, according to data. It has fallen by almost half. The fall was
:08:55. > :08:59.triggered by new copyright laws announced just before Christmas.
:08:59. > :09:03.Users feared that Instagram would be able to profit from their photos
:09:03. > :09:09.and the company was forced to backtrack.
:09:09. > :09:13.Japanese markets are open for the first time this week. There was a
:09:13. > :09:18.public holiday yesterday. We are seeing games. It is at its
:09:18. > :09:26.strongest since August of 2011. A lot of this has to do with the
:09:26. > :09:36.weakness of the Japanese yen. It is not as weak as yesterday. $1 buying
:09:36. > :09:38.
:09:38. > :09:42.almost 89 yen. This is boosting the likes of Sony, Toyota, Nissan, many