:00:17. > :00:19.Nerves begin to fray on Wall Street amid dire warnings the US risks
:00:19. > :00:28.Plus, from backroom website to amid dire warnings the US risks
:00:28. > :00:41.Welcome to World Business Report. I'm Maryam Moshiri. In a moment
:00:41. > :00:42.Welcome to World Business Report. Air France—KLM staff brace for
:00:42. > :00:53.It's the first Friday in the month, normally a big day for financial
:00:53. > :01:05.Department. Today, though, investors have bigger things to worry about. A
:01:05. > :01:11.the IMF to the US Treasury, about government means no non—farm payroll
:01:11. > :01:11.the IMF to the US Treasury, about politicians can't resolve their
:01:11. > :01:17.stalemate over government spending. The most chilling of them came from
:01:17. > :01:50.the US Treasury itself. In a report The most chilling of them came from
:01:50. > :01:54.That report seemed to seemed to focus the minds of Wall Street
:01:54. > :02:02.traders. Here's what one of them had important part. The rest of the
:02:02. > :02:04.traders. Here's what one of them had they're putting on in front of the
:02:04. > :02:07.cameras in Washington is something to keep the viewer is busy. The
:02:07. > :02:11.market is more concerned on the to keep the viewer is busy. The
:02:11. > :02:18.that the US government may default. That was put out today by the US
:02:18. > :02:26.Treasury. The market has rebounded from its lows today because of a
:02:26. > :02:39.suggesting he would not allow the D4 technical point of view, it appears
:02:39. > :02:44.Twitter has published the documents after revealing its plans to float
:02:44. > :02:46.last month. The papers give a first insight into the finances of the
:02:46. > :02:50.social networking site. It hopes to insight into the finances of the
:02:50. > :02:54.social networking site. It hopes to raise $1 billion in a stock market
:02:54. > :03:03.listing next month. That might value more than 215 million active users.
:03:03. > :03:07.And the key thing for would—be investors — growth. It made revenues
:03:07. > :03:16.times as much as the previous year. investors — growth. It made revenues
:03:16. > :03:18.times as much as the previous year. year. But Twitter is nowhere near
:03:18. > :03:24.being profitable. It lost almost $80 co—founder and former CEO Evan
:03:24. > :03:43.Electronics giant Samsung says it's largest shareholder with 12% of
:03:43. > :03:51.Electronics giant Samsung says it's profits. Let's go straight to Rico
:03:51. > :03:53.Hizon in Singapore for the details. Good to talk to you this morning.
:03:53. > :04:02.Absolutely. They're expected in Good to talk to you this morning.
:04:02. > :04:14.operating profit of nearly nine point fall billion dollars. —— nine
:04:14. > :04:16.point fall billion dollars. The major catalyst is not more sales of
:04:16. > :04:22.its smartphones or TV units but major catalyst is not more sales of
:04:22. > :04:26.rebound in its business. The global chip market has rallied since late
:04:27. > :04:31.2012 due to a supply shortage caused years of cautious investment. This
:04:32. > :04:38.has helped Samsung plasma would line. Mobile devices that have
:04:38. > :04:43.helped the company report a record profit every quarter since last
:04:43. > :04:53.year, except the first three months of 2013, is stalling as sales of the
:04:54. > :05:00.Samsung Galaxy for slows. —— Samsung To Japan now, where in the last
:05:00. > :05:03.couple of hours the Central Bank has To Japan now, where in the last
:05:03. > :05:07.couple of hours the Central Bank has kept its massive stimulus measures
:05:07. > :05:11.helping its attempts to boost the economy, plans by Prime Minister
:05:11. > :05:16.consumption tax for the first time in 16 years. Some economists fear
:05:16. > :05:39.correspondent Rupert Wingfield—Hayes the tax rise could slow down, or
:05:39. > :05:45.little choice. Business is booming right now. The stock market is up,
:05:45. > :05:46.the currency value is down. Shoppers aren't back those in Japan and
:05:46. > :05:56.consumption tax over the next two aren't back those in Japan and
:05:56. > :06:01.consumption tax over the next two years. What be the shoppers think
:06:01. > :06:08.about that? TRANSLATION: Taxes are difficult. Wages are not going up.
:06:08. > :06:21.It will be really hard for people to Japan's that is so huge. There is no
:06:21. > :06:30.choice but to put up taxes. But Japan's that is so huge. There is no
:06:30. > :06:41.Japan's shoppers may be in for a rude shock. Analysts say raising the
:06:41. > :06:52.taxes will not be enough. Normal estimates for the consumption tax
:06:52. > :06:57.rise is about 20 five to 25%. —— 20 — 25%. This will be a difficult
:06:57. > :07:02.situation for years to come. It — 25%. This will be a difficult
:07:02. > :07:07.task made more difficult and the fact that Japan's population is
:07:07. > :07:12.ageing and shrinking. Who is going to pay? The other thing you really
:07:12. > :07:18.notice is that a lot of the people around me are speaking Chinese.
:07:18. > :07:22.There is a reason for that. Japan is very cheap rate now. The Japanese
:07:22. > :07:27.government, by pushing down the value of the currency, is getting
:07:27. > :07:33.growth. The hope is profits of the foreigners to fuel Japan's economic
:07:33. > :07:41.Japanese corporations will go up. If Japanese corporations will go up. If
:07:41. > :07:42.the long run, that is what the Japanese government is hoping will
:07:42. > :07:53.help pay off the enormous debt. Japanese government is hoping will
:07:53. > :08:09.Dutch carrier KLM there has been talk of cuts, also the slowdown
:08:09. > :08:19.Dutch carrier KLM there has been Europe has hit passenger numbers.
:08:19. > :08:29.expecting to hear a significant None of this will go down well with
:08:29. > :08:33.unions but they can do the maths as well as anyone. This is a company
:08:33. > :08:43.that lost 1 billion euros last year and the year before. They know
:08:43. > :08:47.something has to change. Are they similar problems to what other
:08:47. > :08:49.European airlines are going through? If you look across southern Europe,
:08:50. > :08:57.you see these toxic combination If you look across southern Europe,
:08:57. > :09:03.the intense competition from the big low—cost carriers and the euro
:09:03. > :09:21.crisis. Cargo volume has decreased by at least 5% this year. Micro—
:09:21. > :09:29.Italian airline. —— Air France—KLM. The airline is in a worse position
:09:30. > :09:31.than air France. And France is in the position to drive a hard bargain
:09:31. > :09:53.of one of its cars on fire were investing cash when it is also
:09:53. > :09:55.of one of its cars on fire were Emergency officials at the accident
:09:55. > :10:21.personnel put forward for military electric vehicle's lithium—ion
:10:21. > :10:23.personnel put forward for military Now for a look at the markets. The
:10:23. > :10:28.budget deadlock in Washington is starting to have a serious impact on
:10:28. > :10:29.the markets. There is worried the stalemate will trigger a damaging