:00:04. > :00:14.performance of opening Woodstock. Now it is time to get the latest
:00:14. > :00:24.
:00:24. > :00:28.financial news. A bruised Apple. The world's
:00:28. > :00:33.biggest technology company Bill announces first fall in profits for
:00:33. > :00:43.ten years. Growth in China's factories is slowing, suggesting
:00:43. > :00:46.
:00:46. > :00:51.the economy faces global head wind. Hello and welcome. Also on the
:00:52. > :00:57.programme, we hear from the chief- executive of Goldman Sachs. For
:00:57. > :01:03.years, it was an investor's dream. Apple became the most valued
:01:03. > :01:07.company in the world last year. Recently, the share price has been
:01:07. > :01:13.sinking one concerns it is running out of ideas to find the next
:01:13. > :01:18.breakthrough gadget. It is battling to overcome a hot competition from
:01:18. > :01:28.the likes of Samsung. They will reveal their first fall in profits
:01:28. > :01:30.
:01:30. > :01:37.in a decade. The instantly recognisable ring off and iPhone.
:01:37. > :01:44.This is the latest model from a company that was unstoppable. Today,
:01:44. > :01:50.Apple is operating under a different tune. You can see that
:01:50. > :01:56.Apple has been on a steady decline since reaching its record high. It
:01:56. > :02:01.is hovering at around $400 at the moment. That trend is worrying to
:02:02. > :02:07.some enthusiasts. They won from a stock to a great stock to a great
:02:07. > :02:12.tech stock to a could not fail way to make money. When you step up
:02:12. > :02:19.that far, you eventually have to fall down. What we have seen them
:02:19. > :02:24.do is fall down the stairs back to still being a great tech stock.
:02:24. > :02:28.Make the mistake, they remain hugely successful. They are the
:02:28. > :02:34.largest tech firm in the world. Despite strong competition from
:02:34. > :02:41.Samsung and Android, there are dominating the smart phone and
:02:41. > :02:45.tabloid markets. Their most popular products were updated last fault.
:02:45. > :02:49.As a money-making machine, they do not have to do anything apart from
:02:49. > :02:56.put up the products that they have. They will continue to make money
:02:56. > :03:00.for a long time. Making money is not the problem. And proving his
:03:00. > :03:09.line-up may not be enough to stop customers and investors who are
:03:09. > :03:13.eager to take a bite out of something new. The real focus is
:03:13. > :03:19.everyone wants to know what they will say later. We will let you
:03:19. > :03:25.know on the BBC. Let's look at China. Growth in its vast factory
:03:25. > :03:30.sector dipped in April as new export orders shrank. That is the
:03:30. > :03:37.finding of an initial survey of factory managers which is done by
:03:37. > :03:46.HSBC a few hours ago. Rico Hizon is in Singapore. Nice to see you. More
:03:46. > :03:49.news to say that China is struggling. Absolutely. The data
:03:49. > :03:59.was a disappointment after manufacturing expanded the previous
:03:59. > :04:09.month. The economy still faces major global obstacles. The
:04:09. > :04:13.
:04:13. > :04:23.eurozone is still mired in a recession. This initially HSBC
:04:23. > :04:23.
:04:23. > :04:27.purchasing managers' index fell to 50.5 in the month of April. That is
:04:27. > :04:34.compared to 51.6 last month. The number is still above 50. That is
:04:35. > :04:40.still an expansion in the economy. It has been suggested that the cash
:04:40. > :04:45.moving around the economy is still not having the desired effect of
:04:45. > :04:51.jump-start in growth. Instead, it could exacerbate property and the
:04:51. > :05:01.risk of inflation. The government is expected to step up once again.
:05:01. > :05:03.
:05:03. > :05:08.They will boost investment and consumption. There will be a more
:05:08. > :05:12.sustainable domestic expansion pathos dog thank you for keeping us
:05:12. > :05:17.up to date. One of the most powerful bankers in
:05:17. > :05:21.the world is in London for the Goldman Sachs 10,000 small
:05:21. > :05:28.businesses programme. It equips entrepreneurs to run their own
:05:28. > :05:32.businesses. Kevin Davis met up with him to find out why so many small
:05:33. > :05:40.businesses find it difficult to borrow money from banks. There is a
:05:40. > :05:49.lot of liquidity in the world. There are small businesses that are
:05:49. > :05:53.starving for cash. A lot of banks are not investing that cash. We are
:05:53. > :06:03.and investing bank. We are not a lending bank. In a recessionary
:06:03. > :06:07.
:06:07. > :06:14.time, the risks of enterprises are higher. Banks are afraid of taking
:06:14. > :06:20.losses. There are repercussions of losses. They are very conservative.
:06:20. > :06:24.The market pressure is for them to be conservative. As a result of
:06:24. > :06:29.that Conservatism, the market transaction is less likely to be
:06:29. > :06:39.done in this market than it was in a previous time. Has finance become
:06:39. > :06:43.too complicated? You have even delivers some results for
:06:43. > :06:48.shareholders. It is complicated. It is all derivative. It is
:06:48. > :06:53.complicated. The basics do not need to be complicated. The basics of
:06:53. > :06:56.banking are still the same. The problem that you just correctly
:06:57. > :07:04.described, there is nothing complicated about that at all. You
:07:04. > :07:08.lend out money. And, by the way, lending money for a financial
:07:08. > :07:13.institution is the riskiest thing you can do. You send money out the
:07:13. > :07:18.door and you hope it comes back. More than hope, you do work, credit
:07:18. > :07:23.analysis, but, at the end of the day, you have to hope it comes back.
:07:23. > :07:29.When you deal with an economy that is where the growth is not
:07:29. > :07:33.necessarily building, it is an economic downturn, it should not
:07:33. > :07:39.just be someone failed to pay you back but it could be because they
:07:39. > :07:45.could not, they are not making money themselves. When will we be
:07:45. > :07:49.back in what we call normal times? Anything you are living through
:07:49. > :07:53.seems extraordinary. Normal Times is when you are writing your
:07:53. > :07:58.memoirs. The statistics were different in the late 1970s. That
:07:58. > :08:04.was a bad time. It is hard to feel the weight of it because it is
:08:04. > :08:10.resolved and over. That was interesting. The chief executive of
:08:10. > :08:17.Goldman Sachs. Let's squeeze in more business. British Airways has
:08:17. > :08:23.ordered more or Airbus A350 aircraft. They are talking to both
:08:23. > :08:31.Airbus and Boeing about supplying aircraft to the Spanish arm, Iberia.
:08:31. > :08:36.This is the end of the deal. The rating agency Standard and Poor's
:08:36. > :08:39.is saying it sees more than a one- third chance that it could
:08:39. > :08:43.downgrade to plan's sovereign ratings because of uncertainty
:08:43. > :08:53.about whether the government's peers to solve growth and inflation
:08:53. > :08:54.
:08:54. > :08:58.will work. Just a few minutes ago, the Civil Aviation Authority in
:08:58. > :09:01.Japan said final authorisation to resume flights may come as early as
:09:01. > :09:06.Thursday. Boeing is replacing batteries and some of the grounded
:09:06. > :09:14.fleet. It is moving a step closer to getting the dream liners flying
:09:14. > :09:19.again. It comes on the back of a revamped battery design. The entire
:09:20. > :09:29.fleet of 787s had been grounded. Deliveries at been grounded. -- all
:09:30. > :09:33.
:09:33. > :09:38.Everything he did law. Significantly Seoul in Hong Kong.
:09:38. > :09:43.The markets are impacted by what is going on. The Yen has strengthened