:00:01. > :00:11.latest headlines from BBC News. Now for the latest financial news with
:00:11. > :00:17.
:00:17. > :00:26.Alice Baxter and World Business Report. Hewlett-Packard profits
:00:26. > :00:30.slump by a third - the latest sign of waning demand for PCs. Plus -
:00:30. > :00:40.could Iron Man 3 become China's biggest grossing film ever? How
:00:40. > :00:41.
:00:41. > :00:48.Hollywood is looking eastwards for new cinema audiences. Welcome to
:00:48. > :00:51.World Business Report. We start with one of the biggest names in
:00:52. > :00:55.technology - as it struggles to re- adjust to huge changes in the
:00:55. > :01:01.industry. The world's top PC maker Hewlett-Packard reported quarterly
:01:01. > :01:04.results after the close of the US markets on Wednesday. It said
:01:04. > :01:14.profits plunged 32% the three months to April, compared with the
:01:14. > :01:19.
:01:19. > :01:23.same period last year. This it was being suffered is part of the Act
:01:23. > :01:32.it epidemic ravaging PC businesses throughout the world. More people
:01:32. > :01:40.are moving to a portable tablets. Competitors such as Dell and IBM
:01:40. > :01:44.Minogue though have suffered slumps. The company is restructuring.
:01:44. > :01:51.29,000 workers may be laid off. Consumers will be offered more
:01:51. > :02:01.across various ranges including tablets. Business customers will
:02:01. > :02:01.
:02:01. > :02:04.receive new focus. Even with all that decline, Cathie Lesjak, HP's
:02:04. > :02:07.CFO, said on the call that the company believed it held PC market
:02:07. > :02:10.share and made gains in China and India, fast-growing markets for PCs
:02:10. > :02:18.these days and places where HP and Dell have both struggled against
:02:18. > :02:23.the local competition. We have made progress, you won't have to wait
:02:23. > :02:30.five years. The search for a new direction has already been costly.
:02:30. > :02:40.Hewlett-Packard wrote off $15.3 billion after the disastrous
:02:40. > :02:44.
:02:44. > :02:51.acquisition of two British This is the principal analyst here.
:02:52. > :02:58.32%, its suggesting the decline in PC sales is at the root of all
:02:58. > :03:06.this? In its not just PC sales. This is a reminder that
:03:06. > :03:13.restructuring processes, as the CEO just reminded us, it may take
:03:13. > :03:19.several years. We've seen the revenues declining. There has been
:03:19. > :03:24.marginal improvement in printing but that gives the market some hope
:03:24. > :03:29.and what seemed a little bit of movement. So no, not all bad news?
:03:29. > :03:37.Other elements within Hewlett- Packard and doing OK? It's a long
:03:37. > :03:42.restructuring prepare it. -- process. We may see a few quarters
:03:42. > :03:47.of improvement. The market may jump to a positive. It's a difficult
:03:47. > :03:54.process to move from that infrastructure within Hewlett-
:03:54. > :04:02.Packard to a more serviceable strategy. There talk about
:04:02. > :04:09.different fortunes. Decline in profits in other companies, and
:04:10. > :04:15.interestingly, results from others saying they had doubled their
:04:15. > :04:20.products in China. You need to look carefully. Hewlett-Packard is not
:04:20. > :04:27.just an infrastructure company so the comparison is slightly
:04:27. > :04:33.difficult. We've seen others tried to to similar moves away from
:04:33. > :04:39.infrastructure. Other companies focus on infrastructure and scale
:04:39. > :04:45.and other mechanisms. Hewlett- Packard went the other way, moving
:04:45. > :04:54.away with an announcement tried to sell the PC business. They tried to
:04:54. > :04:57.de emphasize that infrastructure. Disney's 'Iron Man 3' movie is
:04:57. > :05:00.proving to a superhero at the box office. Within a month of its
:05:00. > :05:03.global release it has raked in more than $ 1billion around the world.
:05:03. > :05:09.On its opening weekend in China it made a record-breaking $65 million,
:05:09. > :05:12.and could become the country's highest-grossing film of all time.
:05:12. > :05:21.As Samira Hussain reports, the Chinese market is now a vital part
:05:21. > :05:29.of the business plan for Hollywood studios. As far as movies go, Super
:05:29. > :05:35.heroes and villains is a universal appeal. Just one reason why Iron
:05:35. > :05:43.Man 3 is easy to sell in China. market is largely untapped. It's
:05:43. > :05:47.not over saturated the like some of the traditional markets in the west.
:05:47. > :05:53.Although the Premier had all of the glitz from Hollywood, China only
:05:53. > :05:59.allows 34 films from Hollywood each year. Getting through the senses is
:05:59. > :06:03.tough. Iron Man found success with a Chinese actors and a local
:06:03. > :06:09.production company and seems made for the Chinese audience. Producers
:06:09. > :06:16.found a winning combination at the box-office. China is building 10
:06:16. > :06:20.movie theatres like this one every day. Even with that rapid expansion
:06:20. > :06:25.there's only one movie screen for every 100,000 people in China
:06:25. > :06:30.compared to the United States where for everyone movie screen there are
:06:30. > :06:38.only 8,000 people. There is an immense potential for growth and
:06:38. > :06:44.one that's very attractive to Hollywood. They need to be in China
:06:44. > :06:48.and look to develop actors in China. More movie theatres, more
:06:48. > :06:54.accessible to the consumer and a better experience so the Chinese
:06:54. > :07:00.consumers will want to go to the theatre rather than by the DVD.
:07:00. > :07:05.Even with piracy as a big issue in China, Hollywood still profits from
:07:05. > :07:08.the 1 billion people that want to watch good films with Ward winning
:07:08. > :07:11.over evil. Staying with China and some preliminary economic data out
:07:11. > :07:19.in the last few hours suggests factory activity shrank in May for
:07:19. > :07:25.The figures will raise concerns that the economic recovery is
:07:25. > :07:32.flagging. John Sudworth is in Shanghai. As the recovery
:07:32. > :07:39.stagnated? There has been concerned that growth has been slowing in
:07:39. > :07:47.China for some time. GDP in 2012 came in at 7.8%, well short of
:07:47. > :07:53.double-digit growth we have seen over the past decade. We are
:07:53. > :07:59.already seeing as a result of this weakening data, stock markets in
:07:59. > :08:04.Hong Kong reacted badly to this. It will be seen as further evidence I
:08:04. > :08:09.think, and if you look into the detail of the figures, the worrying
:08:09. > :08:13.thing is that of course it reflects the ongoing external headwind that
:08:13. > :08:23.the difficulties in Europe and North America that will impact the
:08:23. > :08:27.Chinese exporters. According to HSBC bank, and the survey of
:08:27. > :08:33.factory strength within China, they say the figures also reflect slower
:08:33. > :08:39.domestic demand within China and that will be a big worry. That's of
:08:39. > :08:43.course domestic demand which time is looking to keep growing.
:08:43. > :08:45.indeed. Many thanks. International Monetary Fund chief Christine
:08:45. > :08:48.Lagarde will be grilled later by prosecutors investigating a huge
:08:48. > :08:56.state payout to a disgraced tycoon during her time as French finance
:08:56. > :08:58.minister. Lagarde will appear before the Court of Justice of the
:08:58. > :09:01.Republic, which probes cases of ministerial misconduct, to explain
:09:01. > :09:11.her 2007 handling of a row that resulted in 400 million euros being
:09:11. > :09:12.
:09:12. > :09:14.paid to Bernard Tapie. Economic figures out later are expected to
:09:14. > :09:19.show business activity in Europe has continued its decline this
:09:19. > :09:22.month. Purchasing Managers' Index data for France, Germany and the
:09:22. > :09:32.Eurozone as a whole may show a slight improvement in manufacturing
:09:32. > :09:41.
:09:41. > :09:47.and services compared with April, Most of the Asian stocks have