24/01/2013 World Business Report


24/01/2013

Similar Content

Browse content similar to 24/01/2013. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Welcome back to BBC News. A summary of the main international stories:

:00:12.:00:15.

A statement carried by North Korea's KCNA news agency says the

:00:15.:00:18.

country will carry out a third nuclear test aimed at the United

:00:18.:00:23.

States. The threat comes after a UN resolution condemning North Korea's

:00:23.:00:27.

recent long-range rocket launch. American Defence Secretary, Leon

:00:27.:00:32.

Panetta, is expected to end a ban on women serving in combat. The

:00:32.:00:35.

move overturns a 1994 rule stopping women from being assigned to small

:00:35.:00:38.

ground-combat units. It means women could be available for hundreds of

:00:38.:00:43.

thousands of front line positions and commando jobs. A day after

:00:43.:00:45.

British Prime Minister David Cameron promised an EU referendum,

:00:45.:00:48.

he'll address leaders from the diplomatic and business worlds

:00:48.:00:50.

later on Thursday, at the World Economic Forum in Switzerland. He's

:00:50.:00:53.

expected to call for greater international cooperation on tax

:00:53.:00:56.

evasion. A French woman who was sentenced to 60 years in a Mexican

:00:56.:00:59.

prison on kidnapping charges is on her way home after the Mexican

:00:59.:01:09.
:01:09.:01:11.

Supreme Court ruled that her trial was tainted. Those are the latest

:01:11.:01:14.

headlines will stop. Now, the latest financial news with World

:01:14.:01:20.

Business Report. Hello and welcome to World Business Report. Has the

:01:21.:01:25.

shine been wiped away from Apple? Record sales figures for the tech

:01:25.:01:30.

giant but investors don't seem happy. We'll have the latest from

:01:30.:01:37.

the World Economic Forum in Davos. We'll find out what one business

:01:37.:01:40.

leader thinks of David Cameron's proposal for an EU Referendum in

:01:40.:01:50.
:01:50.:01:50.

the UK. Apple reported another set of record sales figures on

:01:50.:01:55.

Wednesday. The tech giant sold 47.8 million iPhones and 22.9 million

:01:55.:02:00.

iPad tablets. But, despite the numbers, investors were still

:02:00.:02:05.

disappointed. In after hours trade, shares slumped another 10%, wiping

:02:05.:02:08.

$50 billion off its value, after what's been a tough few months for

:02:08.:02:15.

the firm. But, what has worried the markets? Ben Thompson has been

:02:15.:02:25.
:02:25.:02:25.

finding out in New York. For many, Apple is the company that can do no

:02:25.:02:30.

wrong. Each new product is launched with a fanfare. There's no shortage

:02:30.:02:36.

of loyal customers spending hundred dollars each time. Why are

:02:36.:02:43.

investors nervous? The share price could tell the story. Look at this.

:02:43.:02:49.

The shares hit $700 in September when it launched the iPhone five

:02:49.:02:54.

and since then it's all the way to under $500. That's the first time

:02:54.:02:59.

its Dunn in one year. Many investors fear that the best days

:02:59.:03:05.

but Apple may be behind him. That's partly thanks to the rivals who

:03:05.:03:09.

have caught up with their innovations. With little difference

:03:09.:03:13.

between smartphones and what they can do, many are reluctant to pay

:03:13.:03:23.

the premium for an Apple product. We newspeak about $500? Nadir would

:03:23.:03:29.

not take it. May be I would use it but otherwise have done it. That is

:03:29.:03:35.

reflected in the sales numbers. In that third quarter, manufacturers

:03:35.:03:41.

sold 181 million smartphones. Google's and draw it was installed

:03:41.:03:48.

on 75%. The Apple system was on me on 15%. Apple may sell pure

:03:49.:03:53.

handsets but it earns more money on each sale and despite the share

:03:53.:03:58.

slump it's a hugely successful business. Does the problem might

:03:58.:04:00.

would-be investors and their expectations rather than Apple

:04:00.:04:07.

itself? It's a fantasy world in which apple moves without friction

:04:07.:04:13.

at the speed of light up would and one would breaking records they

:04:13.:04:18.

deliver blockbuster products aren't out of thin air of but in reality,

:04:18.:04:25.

despite being a mammoth successful company and they need to invest and

:04:25.:04:29.

spend and grow and expand and they need to spend money and that eats

:04:29.:04:34.

into the products. Investors are used to record sales and soaring

:04:34.:04:38.

profits. They have increased competition and maintain the growth

:04:38.:04:44.

and it will not be easy. Just as Wall Street expects, that may be

:04:44.:04:48.

harder still. We've been reporting this week from the World Economic

:04:48.:04:52.

Forum in Davos, Switzerland. It's an opportunity for ministers,

:04:52.:04:59.

business leaders and policy experts to meet in a relaxed atmosphere.

:04:59.:05:02.

One issue under the spotlight is sure to be David Cameron's EU

:05:02.:05:07.

referendum proposal. The British Prime Minister is due to speak in

:05:07.:05:10.

Davos later this morning. One European business leader who

:05:10.:05:13.

understands why Mr Cameron has made this proposal is Axel Weber, the

:05:13.:05:15.

former head of Germany's central bank and current chairman of Swiss

:05:15.:05:25.
:05:25.:05:28.

bank, UBS. As power is centralised in Europe, what he says his but he

:05:28.:05:38.
:05:38.:05:39.

wants a binary choice. You in or are you out? That is a sensible

:05:39.:05:44.

proposition. As a European, pro- European, I hope the British

:05:44.:05:49.

population decides when the boat comes up that they see the benefits.

:05:49.:05:52.

Joining us from Davos now is Sir Martin Sorrell, CEO of the global

:05:52.:06:01.

advertising group, WPP. Many thanks for joining me. It's a very cool

:06:01.:06:08.

morning. We just had their about thoughts about the proposal for the

:06:08.:06:14.

referendum. What do you make of this? Politically I understand the

:06:14.:06:21.

Prime Minister and his predicament. Maybe 16% of the poll's more from

:06:21.:06:27.

the Conservatives from Labour or he is in a political predicament to

:06:27.:06:32.

deal with., a business point of view, economically, it cannot be

:06:32.:06:38.

good news. At best, if you put a gloss on it will be neutral but at

:06:38.:06:45.

worst it will be negative in terms of uncertainty. There's enough

:06:45.:06:49.

uncertainty in the eurozone and the Middle East and China has a soft

:06:49.:06:53.

landing and the US deficit dealing with their debt crisis which is the

:06:53.:06:58.

biggest issue. Now we have added another problem and Middle East

:06:58.:07:03.

which is unpredictable and another one now with this referendum and we

:07:03.:07:09.

have to referendums, the one in Scotland at more uncertainty. At

:07:09.:07:14.

referendum, somewhere between 2015 or 2018 add more uncertainty and

:07:14.:07:19.

the multinationals have about to Turin dollars sitting on the ballot

:07:19.:07:24.

sheets and what we need do is talk about growth and employment and how

:07:24.:07:29.

we get the youth at work because 50% of the youth population does

:07:29.:07:34.

not have a job. We need to reduce the uncertainty. That is the

:07:34.:07:39.

problem. From a business point of view it's not easy. With luck have

:07:39.:07:46.

good terms, just like anybody else, we'd love that but we welcome the

:07:46.:07:50.

referendum but its 2015 all 2000 a team with the election in between

:07:50.:07:57.

and it's too much uncertainty. speak about the worry in five years

:07:57.:08:02.

and uncertainty. Yet, you have decided recently to move your head

:08:02.:08:07.

quarters back into London after four years in Ireland. Within the

:08:07.:08:13.

context of these debates, about the issue of corporation tax at, do you

:08:13.:08:18.

still view London as a good place to do business? I do. The

:08:18.:08:24.

Government has done a good job to deal with Paddy deficit. A good job

:08:24.:08:30.

to put the long-term plan together for the economy. Talking about the

:08:30.:08:36.

uncertainty, we moved back because precisely of the uncertainty and

:08:36.:08:39.

taxation on overseas profits. Under the Labour government there was a

:08:39.:08:44.

threat of a double taxation or overseas profits and that's why we

:08:44.:08:50.

and other companies have moved. The agenda is a wider issue. And one

:08:50.:08:57.

point, we did some polling online with the system at our company and

:08:57.:09:02.

it was interesting last night that the sample said they like the Prime

:09:02.:09:06.

Minister and his speech and the content and interestingly, it there

:09:06.:09:11.

was a referendum today they would be a vote to go out. That would

:09:11.:09:17.

distress many people. That would affect people with investments in

:09:17.:09:22.

the UK and that a posers everybody. This debate, which is very welcome

:09:22.:09:27.

to, a strong debate, open and democratic, the sooner that takes

:09:27.:09:33.

place the better. As I said, we have five is now of uncertainty and

:09:33.:09:39.

that's the last thing that we need. Briefly, we will get the chance to

:09:39.:09:44.

hear David Cameron later on and what do you hope to hear from him

:09:44.:09:52.

and you hope to get out of Davos this year? Davos is a good talk

:09:52.:09:59.

best and probably rightly, it's a chance to air their views and have

:09:59.:10:08.

a debate and talk with incredible form last 43 years. He wants us to

:10:08.:10:13.

be more optimistic and days Abbey more optimism and growth in the

:10:13.:10:20.

economy and I don't believe that 2013 will be any different to 2000

:10:20.:10:27.

well. We may see some growth of about 3% with inflation about 5%

:10:27.:10:34.

and if advertising stays about the same level, that gives us another

:10:34.:10:39.

room to manoeuvre. We do see a few positive signs and the most

:10:39.:10:47.

depressed economies in Spain with some good restructuring reforms and

:10:47.:10:50.

measures will be good. The Italian elections will create uncertainty

:10:50.:11:00.
:11:00.:11:01.

but we hope that Mario Monti will make progress. The stock to bad

:11:01.:11:11.
:11:11.:11:30.

Now for some more news from the UK. A backlog of more than 16,000

:11:30.:11:33.

unresolved immigration cases has been discovered by inspectors at UK

:11:33.:11:35.

Border Agency offices. Some of the cases involved people who'd been

:11:35.:11:39.

waiting up to a decade to find out if they could stay in the UK with

:11:39.:11:42.

their husbands or wives. The Home Office says it's taking action to

:11:42.:11:51.

deal with historical applications. Now this to more backlogs adding to

:11:51.:11:57.

16,000 unresolved cases. This 40,000 applications by people

:11:57.:12:02.

seeking a review on a refusal for their husband or wife. Immigration

:12:02.:12:08.

inspectors found the load was rising by 700 each month among

:12:08.:12:12.

confusion and 2,000 people wait for any decision at all and some go

:12:12.:12:18.

back a decade. Await such a long time, even if it's a complex case,

:12:18.:12:22.

it's outside any standards that we have. It should be addressed

:12:22.:12:28.

urgently. The report found that children involved were rarely

:12:28.:12:34.

conceded and too many appeals were heard. A Home Office says the

:12:34.:12:37.

backlog has been clear since an inspection but the change in rules

:12:37.:12:46.

may prevent a repeat of this large back wall. -- back clock. Coming up

:12:46.:12:49.

at 6am on this channel, Jon Kay and Louise Minchin will be here with

:12:49.:12:53.

Breakfast. As well as all the day's news, business and sport, we'll be

:12:53.:12:55.

talking to movie star Jessica Chastain on Hollywood's recent take

:12:55.:12:58.

on the tough female lead. We'll be looking into whether or not it

:12:58.:13:01.

might be time for you to think about switching your energy

:13:01.:13:05.

supplier as this winter's icy weather pushes up fuel bills.

:13:05.:13:15.
:13:15.:13:18.

There's all that and more from 6am this morning. The headlines: North

:13:18.:13:20.

Korea warns of more nuclear tests and long-range rocket launches,

:13:20.:13:29.

responding to what it calls The United States Defence Secretary

:13:29.:13:36.

is expected to end a ban on women Mexico overturns a controversial

:13:36.:13:39.

ruling condemning a French woman to 60 years in prison on kidnapping

:13:39.:13:46.

Despite record profits and huge iPhone sales, Apple shares slump

:13:46.:13:55.

wiping $50 billion off the Now it is time for our newspaper

:13:55.:13:58.

review where Alice and I look at the stories making headlines around

:13:58.:14:06.

the world. Let's begin with the times and the business community

:14:06.:14:11.

backs the British Prime Minister called for a referendum on the EU

:14:11.:14:16.

and Angela Merkel is ready to talk. That's on the front page of many of

:14:16.:14:22.

papers. China talks about the warning at the World Economic Forum.

:14:22.:14:28.

They say that senior officials advise against undue optimism that

:14:29.:14:36.

the worst of a financial crisis is over. The International tribune

:14:36.:14:38.

pleads with the House of represented in the US with

:14:38.:14:42.

President Obama and the showdown over the legislation allowing the

:14:42.:14:51.

Download Subtitles

SRT

ASS