24/04/2014 World Business Report


24/04/2014

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the latest headlines from BBC World News.

:00:00.:00:00.

Now for the latest financial news with Alice.

:00:00.:00:15.

Strong quarters from Apple and Facebook cheer investors. So has

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confidence returned to the tech sector? Plus ` Formula One chief

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Bernie Ecclestone faces a German court on bribery charges ` if

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convicted the billionaire faces up to ten years in jail.

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Welcome to World Business Report. I'm Alice Baxter.

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In a moment ` one year on from the Raynor Plaza disaster ` what's

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really changed in Bangladesh's textile trade?

:00:48.:00:52.

Shares of technology companies have been punished over the past month or

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so amid fears that the "tech bubble" may be bursting. We have certainly

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been talking about it a lot here. In other words ` that their growth

:01:06.:01:08.

simply can't justify their huge stock market valuations. Well `

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there's been relief on Wall Street with strong results after the

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closing bell from two of the biggest names in the business. First

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Facebook ` it proved it's still growing strongly, with revenues of

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2.5 billion dollars in the three months to March ` up 72 % on the

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same time last year. Then came the news from Apple. It made a massive

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45.6 billion dollars in revenue over the same period ` the best

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non`holiday quarter ever ` thanks to booming iPhone sales in China. Apple

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also says it's splitting its shares seven ways to make them more

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affordable to small investors. So an Apple share will be around 70

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dollars instead of 500. And it's returning another 30 billion dollars

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to investors. All this is aimed at keeping shareholders on side. From

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New York ` here's Samira Hussain. Two American tech giants that are

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painting very different pictures. Facebook has delivered earnings that

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investors really like. It was a huge quarter for Facebook. They spent

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more than $20 billion buying the messaging app, What's App and the

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virtually reality firm. Signs that Facebook is expanding its horizons.

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But they also surpassed 1 billion monthly users on mobiles. Since 59%

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of their advertising revenue came from mobiles, more users mean more

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and money. The revenue is up by more than 70% and the revenue from

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advertising is up by more than 80%. But the story is as juicy for Apple.

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The company that championed a listening of byproducts has not been

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able to deliver anything new that eye`catching. The pressure continues

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to mount on the CEO, Tim Cook. Apple is taking steps to play the

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investors by sharing more of the $150 billion it has in cash. As it

:03:18.:03:24.

is as consumers, saying that new products are coming soon, .

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Formula One boss Bernie Ecclestone goes on trial in Munich later this

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Thursday on bribery charges that could lead to a prison term of up to

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ten years if he is convicted. The trial could spell the end of the

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83`year`old Ecclestone's career running F1, which he turned into a

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billion dollar business. He says he intends to 'vigorously defend the

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case'. Let's talk to the BBC's correspondent in Berlin ` Stephen

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Evans. Talk us through the charges against

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Bernie Ecclestone. Bribery is the main charge and it is a complicated

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case, it goes back to when a Bavarian bank owned a stake. 47% of

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Formula 1 which it wanted to sell. Bernie Ecclestone, it is alleged,

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wanted that fail to go to a particular company with which he had

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a connection. He wanted to remain in charge of Formula 1 and he thought,

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so the allegation is, if the sale went to this company, he would stay

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in the top job. A payment of $44 million was made to a banker in that

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Bavarian bank. No dispute that money was paid, is to be about whether it

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was legally paid or whether it a corrupt payment. The competition for

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Bernie Ecclestone is that the banker has already been found guilty of

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corruption and is currently in jail. The banker will testify in court

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against the Nicholson. But it Ecclestone vehemently denies he is

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innocent `` Bernie Ecclestone, he says there is no wrongdoing and the

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payment was legitimate. That will play out over the next eight weeks

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once a week in this court in Munich. It is a complicated case for all of

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those reasons. Talk us through the process. Will Bernie Ecclestone be

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asked to appear in court himself? He has already appeared for this judge

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before, hasn't he? It is the same judge who tried the recipient of the

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money. He will appear, he said he wants to clear his name. He will be

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the evidence, he has no choice about it. There is a deal, obviously

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Germany and Britain are in the EU, same judicial system in lots of

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ways. He have to appear but he has that anywhere, I want to appear. I

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will be there, I will put the case. We will have to wait and see what

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comes out of the courtroom. Thank you.

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A year ago today Bangladesh witnessed its worst ever industrial

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disaster when a garment factory complex ` known as Raynor Plaza `

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collapsed killing more than 1100 people. It severely damaged the

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image of Bangladesh's clothing industry, which exported more than

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twenty`two billion dollars of clothes last year. The BBC's

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Anbarasan Ethirajan who extensively reported during the disaster looks

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at what has changed since then. This woman was lucky enough to

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survive the disaster. She was among hundreds of women working inside the

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complex when it came crashing down last year. Trapped under the rubble,

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she was rescued two days after the disaster. Her mangled legs had to be

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amputated. TRANSLATION: I am borrowing money to survive. My

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husband is taking care of me and he has no time to go to work. Who will

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look after me and do the housework? One year later, I am still waiting

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for my full compensation. That is because Western brands and retailers

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have so far contributed only $15 million to a $40 million fund to

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compensate victims and their families. Money has only just

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started trickling down and it is likely to take months to reach the

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victims. Thousands were saved from the rubble. It was a Bangladesh's

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worst ever industrial disaster. More than 1100 people were killed. The

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disaster was a major wake`up call for the clothing sector. A series of

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measures have been taken in the last year. The minimum monthly wage for

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workers has been increased from $38 per month to $68. Western retailers

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have also set up a fund to help improve safety standards in the

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clothing industry in Bangladesh. Around 200 new safety inspectors

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will be appointed to try and prevent another major collapse or fire in

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the factories. For others who escaped, they are back at work in

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new jobs. Safer factories but life has not been easy. TRANSLATION: I do

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not want to work any more. I get flashbacks about those horrible

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days. I cannot sleep properly as I have nightmares. I don't have any

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option as we are poor. My father and brother are no more. We have to work

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to pay our bills. Learning the lessons from the disaster is crucial

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to the economy. The clothing sector represent nearly 80% of exports but

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while Western retailers say they want safety to improve, they have

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not been shy to warn they will go elsewhere if cost is rise to high.

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`` too high. In other news. General Electric is

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in talks to buy French engineering giant Alstom for 13 billion dollars

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` according to Bloomberg news. The report claims a deal could be

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announced as early as next week. Alstom ` whose products include wind

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turbines and trains ` has been hit by a drop in orders from power

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companies amid a fall in electricity prices ` and announced 1300 job cuts

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last year. A spokeswoman for the company described the report as

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"totally unfounded rumours". If you want to get in touch with me, I am

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on Twitter. I would love to hear from you.

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Many thanks to Alice. The number of older people needing

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