:00:06. > :00:12.officials. The move came hours after Peter Kevin Kerchers was
:00:13. > :00:22.released from prison on bail. Now it is time for the latest
:00:22. > :00:31.financial news in World Business Counting the cost of the Dreamliner
:00:31. > :00:36.battery scare. We find out what the financial hit has been some Boeing.
:00:36. > :00:46.Apple turnover. The technology giant reports its first drop in
:00:46. > :00:54.profits for a decade but the shares go up. We explain why.
:00:54. > :00:58.Welcome to World Business Report. And who do you believe? Nintendo
:00:58. > :01:03.company bosses say they will be proffered in the future but
:01:03. > :01:06.analysts have a different story. Eight dramatic emergency landing of
:01:06. > :01:10.a Dreamliner in Japan in January led to the grounding of the entire
:01:10. > :01:16.fleet and the suspension of deliveries of new planes. It marked
:01:16. > :01:21.the start of a nightmare for its maker, Boeing. We find out how
:01:21. > :01:26.badly the company suffered financially as a result. This
:01:26. > :01:34.report from New York. These images of charge batteries
:01:34. > :01:40.may have a lasting impact on Boeing's prized 787s. The
:01:40. > :01:45.Dreamliner was their answer to the Airbus's offerings. But in 1st
:01:45. > :01:48.January of the aeroplanes caught fire. Almost ten days, another,
:01:48. > :01:53.resulting in all Dreamliners have been grounded and all new
:01:53. > :02:01.deliveries being suspended. Even now American regulators are trying
:02:01. > :02:07.to determine what went wrong. are here to understand why the 787
:02:07. > :02:13.experienced unexpected battery failures polling a design programme
:02:13. > :02:17.led by one of the world's leading manufacturers. Boeing admits it may
:02:17. > :02:21.never know the cause of the battery malfunctions but it says it has
:02:21. > :02:26.found a fix. It is a big step towards getting the aeroplanes back
:02:26. > :02:30.in the air. Despite Boeing's turbulent few months it is still
:02:30. > :02:35.the largest manufacturer of military and commercial aircraft.
:02:36. > :02:41.They make a lot of different airlines. When the sales of the
:02:41. > :02:47.Dreamliner slowdown, they can get up around it by having sales on
:02:47. > :02:56.other popular aircraft. In fact, European low-cost carrier Ryanair
:02:56. > :03:02.has said it will buy 175 of the smaller 737s, the biggest deal of
:03:02. > :03:07.Boeing this year. But airliners waiting for Dreamliners to be
:03:07. > :03:13.delivered and that had to cancel flights still have the question of
:03:13. > :03:19.compensation and that has yet to be resolved.
:03:19. > :03:23.4th this time yesterday I was warning you that Apple could report
:03:23. > :03:30.its first fall in profits for nearly a decade. It did just that.
:03:30. > :03:35.The company told us the second quarter net profits came in at $9.5
:03:35. > :03:40.billion down from 11.6 billion the same time last year. It was better
:03:40. > :03:48.than most predicted and sales continue to go up. In the case of
:03:48. > :03:52.the iPad, as much as 60%. Sales in Asia were very strong and the big
:03:53. > :03:59.announcement that Apple is raising its dividend by 15% and the share
:03:59. > :04:05.buy-back programme to $60 billion. The company is returning $100
:04:05. > :04:13.billion to shareholders by 2015. We speak to an analyst based in
:04:13. > :04:20.Singapore. We were bracing for the news from Apple and we have all
:04:20. > :04:24.talked about it. Give us your take. I think the important thing here is
:04:24. > :04:31.to think back to the last time Apple came to market and the
:04:31. > :04:36.disappointment that came there. I think it was largely because of a
:04:36. > :04:44.lack of new products on the horizon and they had not rewarded investors
:04:44. > :04:51.for their face. I think what we saw last night, this was much more
:04:51. > :04:56.warmly greeted. Investors want more return for the volatility. Tell us
:04:56. > :05:00.as well about the sales increase in Asia and in particular, China. I
:05:00. > :05:08.was reading a few months ago reports about the fact that Apple
:05:08. > :05:17.may struggle in China because there are so many more home-grown rivals
:05:18. > :05:21.that were much cheaper. I think Apple's problem is that they are
:05:21. > :05:26.not willing to come down to the lower end of the marketing terms of
:05:26. > :05:31.price. They are willing to let the consumer pay for what they believe
:05:31. > :05:36.is the best product on the market. We know they are being undercut in
:05:36. > :05:46.China. They are using their older Lionel Smart finds effectively
:05:46. > :05:49.
:05:49. > :05:55.there in terms of the chip market. -- older smartphones. There is
:05:55. > :05:59.still room for them to push on in China. Where are you at the morning
:05:59. > :06:09.after the results? Area optimistic that they will continue with break
:06:09. > :06:14.
:06:14. > :06:20.through Greg -- gadgets? What we learnt yesterday it is there are
:06:20. > :06:25.more products in the pipeline. That will help investors making up their
:06:25. > :06:30.decisions. In terms of the share buy-back and the dividend, that has
:06:31. > :06:36.helped doubters who I think would have been holding on to the share
:06:36. > :06:41.price move recently. The move in shares last night was much more
:06:41. > :06:47.comforting, a much better reaction than we have seen in the past year.
:06:48. > :06:53.Thank you very much. We stay with technology because
:06:53. > :06:58.Nintendo is releasing its annual results today. In Tokyo has. There
:06:58. > :07:04.are expectations of a second full year loss in a row for a company.
:07:04. > :07:10.When it comes to forecasts, what is lying ahead, it is a case of who
:07:10. > :07:12.you want to believe it. As wheatear from Tokyo, the head of the company
:07:12. > :07:16.and market analysts have different views.
:07:16. > :07:22.When the results come out we expect to see that Nintendo will make an
:07:22. > :07:27.operating loss of somewhere around 180 million US dollars. There is no
:07:27. > :07:33.real surprise in that but the surprise is that Nintendo's boss is
:07:33. > :07:37.predicting that Nintendo will make an operating profit this year of 1
:07:37. > :07:43.billion US dollars. That is surprising because most analysts in
:07:43. > :07:46.Tokyo do not believe that is possible. The reason is there the
:07:46. > :07:54.game console market around the world is shrinking and Nintendo's
:07:54. > :08:01.share of the market is shrinking as well. In 2011, the worldwide market
:08:01. > :08:11.for game consorts was for around 40 million products. -- game consoles.
:08:11. > :08:15.
:08:15. > :08:22.It fell in one year to 30 million. In tender's -- their share of the
:08:22. > :08:27.market fell as well. This year they face more competition. Sony is
:08:27. > :08:34.releasing a new PlayStation before the end of the year. A new X Box
:08:34. > :08:38.will come out. More competition in a shrinking market. And many
:08:38. > :08:46.traditional uses of Nintendo has said they are disappointed by the
:08:46. > :08:51.latest products and the games. I will speak about the latest
:08:51. > :08:56.releases when we get them. Netflix shares have jumped by more
:08:56. > :09:01.than 20% after they reported a strong results later on Monday.
:09:01. > :09:08.They said they added up two million subscribers in the United States in
:09:08. > :09:11.the first quarter. It has been helped by a shift
:09:11. > :09:18.towards producing its own programming.
:09:18. > :09:23.HSBC is cutting another 3166 UK jobs as it continues its efforts
:09:23. > :09:28.have to reduce costs. It was looking at redeployment options, it
:09:28. > :09:35.said. It follows the loss of 2,200 jobs
:09:35. > :09:40.last year. The markets today R AAP beat in
:09:40. > :09:49.Asia. Japan is at a five-year higher pretty much. The yen has