14/05/2013

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:00:03. > :00:13.David Bowie's Space Oddity while on the space station. Those are the

:00:13. > :00:22.

:00:22. > :00:27.latest headlines. Now for the D-Day for not year as it prepares

:00:27. > :00:33.to unveil a new model of its Lumia phone -- Nokia. Another attempt to

:00:33. > :00:39.win customers away from its rivals. And Sharp things its hopes on

:00:39. > :00:47.Samsung as it gets set to reveal another huge last -- pins its hopes.

:00:47. > :00:51.-- huge loss. Also in the programme: Australia presents its

:00:51. > :00:55.budget not long before elections. What will the government offer? We

:00:55. > :01:01.will assess that as well. But first, a very big day for the Finnish

:01:01. > :01:11.mobile phone maker Nokia. In a few hours it will unveil a brand new

:01:11. > :01:12.

:01:12. > :01:16.addition of this Lumia line of Windows Phones in London -- it's.

:01:16. > :01:20.Their success in the high-margin smartphone market is crucial for

:01:20. > :01:29.its long-term survival. The latest model is expected to offer a

:01:29. > :01:35.superior camera technology. I'm joined by Martin Garner from CCS In

:01:35. > :01:40.sight. What are you expecting Nokia to reveal this time? We saw about a

:01:40. > :01:44.week ago that they launch an upgraded flagship with one operator

:01:44. > :01:52.in North America. Expectations are quite high. We're expecting this

:01:52. > :01:58.time around is something similar to what we saw a week ago. And

:01:58. > :02:03.advancement but not a real leap forward. Many are saying that Nokia

:02:03. > :02:08.keeps introducing new versions but it is so far behind Samsung and

:02:08. > :02:13.Apple. What is your take on its attempts to try to steal market

:02:13. > :02:18.share in the smartphone Arena. has been in turnaround mode in

:02:18. > :02:22.smartphones for about two years. It is now quite a small player in

:02:22. > :02:26.smartphones. We think it now has quite a good range of products in

:02:26. > :02:30.the area. It just needs to keep pushing and build momentum and keep

:02:30. > :02:35.going. We saw a bit of that with its quarter one results. But it

:02:35. > :02:41.just needs to keep pushing hard. What about the argument that the

:02:41. > :02:45.team up with Microsoft was a bad move. The CEO was quizzed on that

:02:45. > :02:50.at the last AGM. He said that the decision was made and they will

:02:50. > :02:55.continue. We think she did not have that many auctions. If he had come

:02:55. > :03:03.with Android, there are a lot of unhappy Android suppliers --

:03:03. > :03:12.options. Only Samsung is having a good time so it might not have been

:03:12. > :03:16.the answer not to go with Windows. There are cycles in his industry.

:03:16. > :03:20.Nokia is not someone we should forget just yet. You need to

:03:20. > :03:25.remember five years ago Nokia was king of the hill and had everything

:03:25. > :03:30.going for it. Market share does change hands quite a lot in this

:03:30. > :03:35.industry. In five years at all and Samsung are unlikely still to be at

:03:35. > :03:39.the top of their game -- Apple. There is an opportunity. There are

:03:39. > :03:44.lots of people chasing that opportunity, so Nokia will have a

:03:44. > :03:49.tough time, but they have to keep trying. In previous years when you

:03:49. > :03:59.look at these technical moves in the industry, we weren't in a

:03:59. > :04:05.

:04:05. > :04:10.smartphone era, does that still apply? -- the cyclical moves.

:04:10. > :04:14.needs to keep developing more and more apps, and keep that side of it

:04:14. > :04:19.building, so it can show the world it has this momentum and can carry

:04:19. > :04:24.that across to consumers. Really good to hear your perspective,

:04:24. > :04:29.Martin, thank you for joining us. The launch is today in London. It

:04:29. > :04:36.is shrouded in secrecy. We will keep you updated as far as Nokia's

:04:36. > :04:41.concerned today. Let's move on. Another struggling tech firm, Sharp,

:04:41. > :04:47.Japan's number one maker of LCD TVs is expected to make another huge

:04:47. > :04:57.loss today as TV consumers turn to cheaper options. They are hoping a

:04:57. > :04:57.

:04:57. > :05:02.closer tie with Samsung will secure Sharp has been having a tough time.

:05:02. > :05:05.Sales are on the steady decline as TV consumers turn to overseas

:05:05. > :05:10.manufacturers for cheaper options. Amid mounting losses the company

:05:10. > :05:19.has been trying to restructure. But it's been tough. After its credit

:05:19. > :05:25.rating was ruined last year. Two months ago Samsung agreed to buy a

:05:25. > :05:28.3% stake in them for $110 million. A deal analysts said should give a

:05:28. > :05:32.boost to the company's efforts to turn its business around. The

:05:32. > :05:38.deadline for talks on another potential cash injection, this time

:05:38. > :05:43.from Taiwan's Hong Hi, passed without an agreement. Thousands of

:05:43. > :05:48.jobs at Shah have already been cut as part of efforts to secure its

:05:48. > :05:53.long-term survival -- Sharp. Now there are expectations more workers

:05:53. > :05:57.will go and there will be an even tighter tie-up with Samsung. It is

:05:58. > :06:07.a painful restructuring designed to lead to profitability. Whether it

:06:08. > :06:10.

:06:11. > :06:14.Let's go to Australia now where the budget will be revealed this

:06:15. > :06:19.evening. It could be the chance for a few cash handouts because the

:06:19. > :06:23.election will be in September. But that is unlikely, the government is

:06:23. > :06:27.well behind in the polls and finances are tight despite two

:06:27. > :06:31.decades of growth. For the past two decades successive Australian

:06:31. > :06:36.treasurers have generally enjoyed their moment in the Budget might

:06:36. > :06:40.limelight. After all the economy has seen 21 years of uninterrupted

:06:40. > :06:45.annual growth. 12 months ago Wayne Swan was basking in that success.

:06:45. > :06:49.Now, as he prepares to deliver what is likely to be his final Budget,

:06:49. > :06:55.his Swann song, it will doubtless be called, the mood is very

:06:55. > :06:58.different. He could be looking at a decade of debt. Having pledged

:06:58. > :07:07.repeatedly to return the Budget to surplus he has admitted in the

:07:07. > :07:11.lead-up that the country now faces a fiscal black hole. During the

:07:11. > :07:15.mining boom, successive governments made long-term spending commitments

:07:15. > :07:20.that are now hard to fund the cost of a falling commodity price and

:07:20. > :07:26.corporate taxes -- because of. The mining tax, intended to spread the

:07:26. > :07:31.vast riches of the resources boom, has hardly swell the coffers. Nor

:07:31. > :07:35.has the carbon tax, brought in last year, brought in the revenue first

:07:35. > :07:42.forecast. Making matters worse for the overall economic output,

:07:42. > :07:46.Australia's terms of trade have declined. The Australian dollar has

:07:46. > :07:51.stayed at high levels. Even though it has fallen off recently it is

:07:51. > :07:58.still at parity with the greenback. And concerns about a slowdown in

:07:58. > :08:03.the economy and an end to the mining boom caused a reduction in

:08:03. > :08:07.the interest rate to the lowest in 52 years. With an election in

:08:07. > :08:12.September, which the government is expected to lose heavily, this will

:08:12. > :08:18.be a very political Budget. But given there's no money there's

:08:18. > :08:21.little likelihood of any vote giveaways. George Osborne will be

:08:21. > :08:25.meeting with other European Union finance ministers today where he

:08:25. > :08:30.plans to call for more efforts to tackle tax evasion and avoidance.

:08:30. > :08:34.He is seeking EU backing for a global tax standard based on

:08:34. > :08:38.automatic exchange of information between tax authorities. The man

:08:38. > :08:42.expected to be Pakistan's next prime minister Nawaz Sharif has

:08:42. > :08:46.told the BBC that fixing the economy will be his top priority.

:08:46. > :08:51.Mr Sharif said this would go a long way to reducing unemployment,

:08:51. > :08:55.poverty, illiteracy and terrorist violence. Shares in India's Tata

:08:56. > :09:01.Steel have fallen as much as 2.5% today following an announcement

:09:01. > :09:05.they will write down $1.6 billion on weak figures in Europe. Over

:09:05. > :09:11.saturation of the market was also given as another reason for the

:09:11. > :09:15.data. Now the markets today in Asia, quite excited about the fact that

:09:15. > :09:20.yesterday in the US we saw retail sales figures higher than expected

:09:20. > :09:25.in the month of April. You can see in Japan a slight loss, but let's

:09:25. > :09:30.not forget Japan has been on a roll for quite some time. It is well

:09:30. > :09:35.above 14,000 now. Only the week before last it recover 14,000 for

:09:35. > :09:40.the first time in five years. Now it's not too far away from 15,000.

:09:40. > :09:45.Hong Kong down a bit. We will keep an eye on Australia today as the