:00:00. > :00:00.BBC World News. Now for the latest financial news and World Business
:00:00. > :00:21.Report. The chips are down for Intel as it
:00:22. > :00:24.faces the decline of the PC and the rise of the smartphone. Can the
:00:25. > :00:29.giant of silicon valley reinvent itself? Plus, investing for the
:00:30. > :00:47.future. We look for signs that corporate America is starting to
:00:48. > :00:50.spend again. Welcome to World Business Report. I'm Alice Baxter.
:00:51. > :00:54.Also in the programme, will 2013 see the weakest growth in China in more
:00:55. > :00:57.than a decade? We look ahead to key GDP figures. But first: For decades
:00:58. > :01:03.it's been one of the biggest names in technology. But is Intel in
:01:04. > :01:06.decline? Late on Thursday the world's top computer chip maker
:01:07. > :01:12.reported profits of 2.6 billion dollars in the three months to
:01:13. > :01:15.December. That was up around 6% on the previous year but not quite as
:01:16. > :01:21.much as investors had been expecting. Here are some other
:01:22. > :01:30.numbers to consider. Intel completely dominates the PC market.
:01:31. > :01:35.More than 80% of personal computers and servers are based on Intel
:01:36. > :01:38.chips. The problem is PCs are a declining market. Sales fell 10% in
:01:39. > :01:52.2013 according to IDC, with further declines forecast for this year. As
:01:53. > :01:55.we all know - more of us now use smartphones and tablets to access
:01:56. > :01:58.the internet. Intel has less than 1% of the market for smartphone chips.
:01:59. > :02:01.Intel's boss has pledged to get its chips into 40 million tablets this
:02:02. > :02:10.year. With me is Patrick Bliemer, Managing Director of Intel for
:02:11. > :02:13.Northern Europe. Thank you for coming in to talk to us. One of
:02:14. > :02:16.Intel's strengths has always been it's complete dominance of the PC
:02:17. > :02:19.market however the decline of the PC market, overridden by smartphones
:02:20. > :02:29.tablets, has taken everyone by surprise - has it caught it Intel by
:02:30. > :02:35.surprise? Not necessarily by surprise. For the first three
:02:36. > :02:39.quarters of last year we saw a decline in the PC segment. We've
:02:40. > :02:44.seen it stabilise in the fourth quarter. We've seen the decline
:02:45. > :02:49.stabilise. We have been revolutionising the PC industry.
:02:50. > :02:59.From the traditional old type of computers, now it is all about all
:03:00. > :03:07.truth in, -- thin devices. Including the progress of two N ones. Changes
:03:08. > :03:11.ahead. And yet you are now looking to enter the smartphone/tablet
:03:12. > :03:13.market - your Boss has said he wants to get 40 million chips into tablets
:03:14. > :03:22.this year - aggressively market chips to get into tablets? We are
:03:23. > :03:26.making huge investments. The robber will hit the road for us this year.
:03:27. > :03:32.We have very aggressive goals and are confident. Analysts have been
:03:33. > :03:36.focussing on the performance of your data centre business - is that a
:03:37. > :03:45.growth area? One analyst described Q4 earnings as disappointing? It is
:03:46. > :03:49.disappointing. It is still growing, but we expected it to be in low
:03:50. > :03:56.double-digit. It has been high single digits. It didn't grow as
:03:57. > :04:02.fast as we expected. A bit of slowdown by the Americas. I wouldn't
:04:03. > :04:06.be too negative about that. We expect it will grow in 2014. What
:04:07. > :04:12.new technologies can we expect from Intel over the coming months? What's
:04:13. > :04:22.going to keep you current? What is exciting for us is the Internet and
:04:23. > :04:28.wearables. Last week at the atomic show we showed a new product range
:04:29. > :04:33.to target that segment. Any device will become smart and connected to
:04:34. > :04:38.the Internet. It will require computer capabilities. That is the
:04:39. > :04:45.core of our business. We are excited about that market opportunity. In
:04:46. > :04:51.phones, there are huge volumes. But with Internet it is even bigger.
:04:52. > :05:06.Lots of chatter about 3-D cameras as well. We will have to leave it
:05:07. > :05:10.there. Thank you for coming in. A week in to earnings season in the US
:05:11. > :05:13.and many are looking for indications that companies are starting to
:05:14. > :05:16.invest again. The trend for the last few years in Corporate America has
:05:17. > :05:18.been to cut back on spending in order to increase profits. During
:05:19. > :05:22.the recession, it allowed for companies to give money back to its
:05:23. > :05:24.shareholders. But in order to grow, companies need to start spending on
:05:25. > :05:31.their businesses. Samira Hussain reports from New York. One tile at a
:05:32. > :05:39.time. These workers are transforming this 9000 square foot space into
:05:40. > :05:46.Jonathan Butler 's newest project. Food lenders will be here. He is
:05:47. > :05:53.bringing his third markets inside. This is our first venture into
:05:54. > :05:57.bricks and mortar. We pop up on Saturdays and Sundays and then I
:05:58. > :06:04.gone on Mondays. We felt it was time to put down some routes and get some
:06:05. > :06:09.seven-day week businesses. This is a small example of what many hope will
:06:10. > :06:15.be a trend in corporate America. Spending money on investing in their
:06:16. > :06:20.business. Now that the US GDP looks at us from a world standpoint to be
:06:21. > :06:24.the most stable in the world, CEOs are starting to feel more confident
:06:25. > :06:30.that they can listen the cough is a little bit. It is not just the gross
:06:31. > :06:37.domestic product that is looking good. There is no longer dragging
:06:38. > :06:42.confidence and the Federal reserve is easing its financial support of
:06:43. > :06:47.the US economy. Indications point to a bullish market. Spending tends to
:06:48. > :06:53.go hand-in-hand with a better economy. Firms spend a lot on
:06:54. > :06:58.capital equipment and then hire a lot. If the economy is doing better
:06:59. > :07:06.at producing more goods, it will be a healthier, stronger, wealthier
:07:07. > :07:12.economy. The tables here. You can go to the bar and get your beer. Beer
:07:13. > :07:16.and food. The winning combination that made this company invest. It is
:07:17. > :07:22.now up to other businesses to do the same.
:07:23. > :07:27.To Asia now where the financial world is looking ahead to growth
:07:28. > :07:30.figures from China - due to be released early on Monday. A poll by
:07:31. > :07:33.AFP is already warning that 2013 saw the weakest growth in more than a
:07:34. > :07:38.decade - with a further slowdown expected this year. Babita Sharma
:07:39. > :07:39.and the team in Singapore have been looking at this. Babita, what can
:07:40. > :07:52.you tell us? Good to see. The world is number one
:07:53. > :07:56.economy has been seen as an engine of growth. While Europe and America
:07:57. > :08:04.were dealing with slowdowns, you might remember China's economy
:08:05. > :08:10.entered pretty upbeat starting well. This was dashed as growth stopped
:08:11. > :08:19.for 2/4 before picking up. They're said to reach seven .3%. We
:08:20. > :08:24.expecting to hear on Monday? Crucial results on the GDP and the fourth
:08:25. > :08:34.quarter. And the outlook for this year. Earlier I spoke to a man from
:08:35. > :08:40.HSBC. They did pretty well in the third quarter. Then decelerated
:08:41. > :08:45.until the fourth quarter. Some data suggests it is slowing down. It is
:08:46. > :08:52.not a collapse, but a slowdown. We might see even weaker growth. Growth
:08:53. > :08:57.is weighing on economic demand. There will be a deceleration. We
:08:58. > :09:01.should add that other economists we have spoken to said they believe
:09:02. > :09:07.China is likely to exceed the government 's four-year growth
:09:08. > :09:17.target of 7.5%. Good news there if that is the case. Those figures are
:09:18. > :09:25.released at oh 200 GMT. We will bring coverage on this later.
:09:26. > :09:30.In other news Shares of Goldman Sachs have fallen after the Wall
:09:31. > :09:33.Street giant reported a 21 per cent drop in quarterly profits. It made
:09:34. > :09:37.two and a quarter billion dollars in the three months to December - down
:09:38. > :09:49.from 2.8 billion in the same period the previous year. Rival Citigroup
:09:50. > :09:52.also disappointed Wall Street despite more than doubling its
:09:53. > :09:54.quarterly profits to 2.7 billion dollars. Citi's benefited from
:09:55. > :09:58.retail customers saving more money and a rise in commercial lending.
:09:59. > :10:01.But it's making less money than it hoped from trading on the bond and
:10:02. > :10:04.stock markets - where revenue dropped some 11 per cent, much worse
:10:05. > :10:07.than some analysts were expecting. American Express saw its profits
:10:08. > :10:14.more than double in the fourth quarter to 1.3
:10:15. > :10:26.that is also now. Vaccine with a look at the papers.
:10:27. > :10:36.Many thanks for that. The emergency services have been searching through
:10:37. > :10:41.the night for Mikaeel Kular. He was last seen on Wednesday night.
:10:42. > :10:42.Detectives say it there is no sign that a