:00:00. > :00:00.Those are the latest headlines from BBC World News. Now for the latest
:00:00. > :00:16.financial news here's Maryam Moshiri and World Business Report.
:00:17. > :00:24.Tech boom or tech kaboom? Is the technology bubble set to burst?
:00:25. > :00:27.Yahoo and Intel report earnings. High frequency and high risk `
:00:28. > :00:28.European Parliament prepares to back curbs on ultra`fast computerised
:00:29. > :00:40.share trading. Welcome to World Business Report.
:00:41. > :00:50.I'm Maryam Moshiri. In a minute we'll have a report on the movie
:00:51. > :00:53.business in Asia. But first we talk about tech shares. Last week shares
:00:54. > :00:56.in many of the world's biggest technology shares plunged. Some are
:00:57. > :00:59.now half the price they were at their peak a few months ago. The
:01:00. > :01:02.investor sell`off was sparked by fresh fears that a lot of these
:01:03. > :01:05.companies are over`valued and can never generate the profits expected
:01:06. > :01:09.of them. So are those fears founded? On Tuesday, search engine Yahoo and
:01:10. > :01:18.chip maker Intel report earnings. Michelle Fleury reports from New
:01:19. > :01:22.York. Over a year ago, this woman was
:01:23. > :01:27.brought in from Google to help turn Yahoo! Around. But investors may be
:01:28. > :01:34.more interested in what the company has to sack about its 21% stake in
:01:35. > :01:45.Aly Baba. Yahoo will provide investors into the company profits.
:01:46. > :01:51.They are having a difficult time finding a revenue growth. Minority
:01:52. > :01:58.investments provide more net income than the core business itself.
:01:59. > :02:04.Google continues to see its market share increase. Investors want to
:02:05. > :02:09.know, can it maintain its momentum? When this quarter get reported,
:02:10. > :02:14.there will be uneaten as in the numbers because they have split
:02:15. > :02:18.their stock, they are speaking out another company, there will be some
:02:19. > :02:24.confusion but the search is fantastic. For Intel the challenge
:02:25. > :02:32.is making the switch to smart phones. While the outlook for IBM
:02:33. > :02:39.may not be too rosy. This is where doubt hit. Last week, the market
:02:40. > :02:42.fell more than 3% with investors questioning whether they got the
:02:43. > :02:48.pricing right foot technology stocks, people will be watching
:02:49. > :02:52.these reports closely. They call it a flash crash ` a large
:02:53. > :02:55.and sudden swing in market prices that could even spark a wider
:02:56. > :02:57.financial crisis. The usual suspect is ultra`fast or high frequency,
:02:58. > :03:02.computerised trading in shares, bonds, currencies and other
:03:03. > :03:06.investments. European Parliament hopes it can head off that threat
:03:07. > :03:15.today by approving new curbs on the practice. Bill Blain is a strategist
:03:16. > :03:22.at the stock broker Mint Partners. Explained for our viewers in simple
:03:23. > :03:28.terms, what exactly is high`frequency trading? What happens
:03:29. > :03:32.is, stock markets take orders from all around the world. People
:03:33. > :03:40.telephone in all sent instructions by computer. We have now a system
:03:41. > :03:47.where the ultrahigh, fast traders have direct lines into these stock
:03:48. > :03:52.exchanges where the trade are actually close. What has been
:03:53. > :03:58.concerning the market is the sheer speed at which these guys are able
:03:59. > :04:02.to trade means they affect the bleak front run will stop in other words,
:04:03. > :04:07.they watch what other people are about to do and trade ahead of them.
:04:08. > :04:14.I heard it described as being able to put your bed on a roulette ball,
:04:15. > :04:18.the second you see where it is going to fall. If you know how other
:04:19. > :04:25.people are trading and you can trade ahead, that gives you an unfair
:04:26. > :04:33.advantage. What are the dangers? The impacts? We create the perception
:04:34. > :04:42.that the markets are brig. That is why this has become so important
:04:43. > :04:46.stop `` rigged. Michael Lewis published a book about
:04:47. > :04:50.high`frequency trading. It is getting all the attention. More
:04:51. > :04:55.important is the possibility that you might see something go wrong
:04:56. > :05:03.with the computer programmes that drive it. This is where your comment
:05:04. > :05:07.about Flash crash is important. If the algorithms go wrong, we can see
:05:08. > :05:15.the markets being hit by enormously wrong trade. We saw that two years
:05:16. > :05:21.ago with light securities. The results could run amok in the market
:05:22. > :05:28.and that is why people are keen to regulate this. The European
:05:29. > :05:35.government wants to cope this, is that possible? When we get new
:05:36. > :05:44.financial rules, players work their way around them. I am afraid that
:05:45. > :05:48.will happen again. Imagine being given free rein and a blank check to
:05:49. > :05:51.design and build a world class film studio. That was the job given to
:05:52. > :05:54.Australian Mike Lake, a veteran of the film industry with a career
:05:55. > :05:57.spanning four decades and three continents. Ashleigh Nghiem caught
:05:58. > :06:00.up with him at the Pinewood studios in Johor in southern Malaysia.
:06:01. > :06:03.If your ambition is to get into the film industry and you have the
:06:04. > :06:06.ability to think big, then this could be the job for you. Mike Lake
:06:07. > :06:11.designed and developed this complex and his job now is to bring in
:06:12. > :06:15.filmmakers from around the world. Welcome Pinewood Malaysia Studios.
:06:16. > :06:18.He was headhunted by the Malaysian government to turn the little city
:06:19. > :06:24.of Johor into a base for international film and television
:06:25. > :06:28.production. Blink and you could think you were in Hollywood. That is
:06:29. > :06:33.because Mike spent ten years there before moving to Malaysia. He
:06:34. > :06:35.started out in TV in Australia 40 years ago before working in
:06:36. > :06:44.production companies in ten countries. What we did in the early
:06:45. > :06:48.days while it was still jungle, we did all the designing and got all
:06:49. > :06:51.that right first. Then we went into the construction stage. We spent
:06:52. > :06:54.months and months. We cleared and moved something like one million
:06:55. > :06:57.cubic feet of earth. Mike's job is not about glitz and glamour. It is
:06:58. > :07:12.about hiring and managing all the staff needed to support filmmakers
:07:13. > :07:15.and their huge crews. They do a lot of local films just for Malaysia but
:07:16. > :07:19.they never really got into international production. The
:07:20. > :07:22.challenges are this is a unique. Mike is now overseeing the final
:07:23. > :07:26.stages of construction. He and his team have come a long way since the
:07:27. > :07:29.project started four years ago but they have been some low points when
:07:30. > :07:32.he had many burning questions. How do I bring the infrastructure that
:07:33. > :07:36.is required? How do I bring the labour that is required to service
:07:37. > :07:48.this it is a plan that may well pave the way for local talent to one day
:07:49. > :07:52.take over? He set up a training college. It is a plan that may well
:07:53. > :08:06.pave the way for local talent to one day take over.
:08:07. > :08:16.What has been happening on the markets? Some Asian shares are
:08:17. > :08:22.getting a break after this moderate railing in the US stocks. Japanese
:08:23. > :08:29.stocks are rebounding, led by exports. The weaker yen has the
:08:30. > :08:36.likes of Sony leading the way forward. Australia down slightly
:08:37. > :08:42.after the Reserve Bank has said they would keep interest rates steady.
:08:43. > :08:51.Looking ahead, investors will be watching closely to the Chinese GDP
:08:52. > :08:58.data. The economy is slowing. Also today, the US market watchers will
:08:59. > :09:07.be listening to Janet Yellen and what she has to say about the
:09:08. > :09:16.economy and interest rates. A quick look at some of the days other
:09:17. > :09:24.business News, raw materials for everything from mobile phones to
:09:25. > :09:30.jury reminds links to malicious. The court found they broke rules. US
:09:31. > :09:37.Airways has apologised about an image on its Twitter feed. The
:09:38. > :09:40.carrier said the image had been sent to its sister company America
:09:41. > :09:56.airlines and was inadvertently attached to the customer response.
:09:57. > :10:00.More than a million people could have had their personal data stolen
:10:01. > :10:02.after the UK's leading website for parents was