:00:00. > :00:00.headlines from BBC News. Now for the latest financial news with Sally
:00:00. > :00:21.Bundock and World Business Report. Twitter flying high. Shares spike
:00:22. > :00:27.35% as the social media giant reveals it now has over 270 million
:00:28. > :00:30.monthly users The clock is ticking. Argentina faces default if the
:00:31. > :00:41.government and vulture funds don't reach a deal before midnight.
:00:42. > :00:47.Welcome to World Business Report. I'm Sally Bundock. Also in the
:00:48. > :00:50.programme, the latest in our series on how the young are using
:00:51. > :00:53.technology to develop new ways of working. But first, there was some
:00:54. > :00:56.nervousness on Wall Street, before Twitter released its second quarter
:00:57. > :01:04.earnings, only the third time it's reporting earnings as a public
:01:05. > :01:08.company. But despite those agitations, the micro`blogging site
:01:09. > :01:14.did not disappoint. Revenue rose 124% to $312 million, compared to
:01:15. > :01:18.the same quarter a year ago. But the number that investors were really
:01:19. > :01:23.looking for was just how many users Twitter has. And the company
:01:24. > :01:33.surprised analysts and the street. Samira Hussain reports from New
:01:34. > :01:35.York. Twitter is the microblogging website that became a publicly
:01:36. > :01:41.traded company in November last year. Since then, its history on the
:01:42. > :01:47.stock market has been rocky. Since January this year, its stock price
:01:48. > :01:51.has dropped more than 40%. Although it has been able to demonstrate that
:01:52. > :01:55.it can make money through advertising, what investors are
:01:56. > :02:01.worried about is its growth potential. They need to get more new
:02:02. > :02:06.users. The second`quarter earnings did not disappoint. The company
:02:07. > :02:11.reported 270 million monthly average users. More than three quarters of
:02:12. > :02:16.that group are accessing Twitter through their mobile phones. For
:02:17. > :02:24.investors in New York, that was newsworthy of tweeting. The share
:02:25. > :02:30.price was up more than 20%. A big part of these gains are as a result
:02:31. > :02:31.of the World Cup. The question for Twitter is whether they can keep the
:02:32. > :02:44.new Users. New data out of Japan shows
:02:45. > :02:46.industrial output fell at the fastest rate since the 2011
:02:47. > :02:50.earthquake and tsunami disaster. Sharanjit Leyl is in our Asia
:02:51. > :02:58.business hub in Singapore. We're getting a picture of how Japan is
:02:59. > :03:04.faring. Tell us about today's news. It is the factory
:03:05. > :03:16.output data that is out today. It is the fastest growth since the
:03:17. > :03:23.earthquake. That is from May until June. That is the latest to show
:03:24. > :03:29.that the sales tax rise is affecting consumer demand, and many other
:03:30. > :03:36.things. Japan raised its sales tax, also known as consumption tax, from
:03:37. > :03:40.5% to 8% in April. There has been a lot of concern about that move. It
:03:41. > :03:45.makes goods more expensive and consumers cut back on spending.
:03:46. > :03:55.Recent data released showed that retail sales declined in
:03:56. > :04:06.household spending was also down. They are also saying that consumers
:04:07. > :04:11.and businesses are rushing to make purchases ahead of the rise in
:04:12. > :04:22.April, it meant that the downturn is much steeper after the tax took a
:04:23. > :04:26.fact. There is a silver lining. The Ministry of economy, trade and
:04:27. > :04:34.industry don't expect that dismal picture to last. They expect output
:04:35. > :04:38.to rise in the coming months. Thank you for putting that in perspective.
:04:39. > :04:45.We will look at the markets later. First, let's talk about Argentina.
:04:46. > :04:48.The Argentine finance minister Axel Kicillof has held negotiations to
:04:49. > :04:51.avoid his country's second default in 13 years. He was speaking after
:04:52. > :04:54.five hours of talks in New York; discussions will resume on Wednesday
:04:55. > :04:57.ahead of the midnight deadline for Argentina to pay a group of hedge
:04:58. > :05:00.funds $1.3 billion. The companies bought the debt on the cheap
:05:01. > :05:03.following Argentina's original default in 2001 and have refused to
:05:04. > :05:07.accept the partial settlement the country has agreed with other
:05:08. > :05:17.bondholders. Katy Watson now reports from Buenos Aires. On the streets of
:05:18. > :05:25.Buenos Aires, it feels like is not as usual. Only, by the end of today,
:05:26. > :05:31.things might not be as they were. The newspapers report every small
:05:32. > :05:35.detail, offering a glimpse of the competitions that could face this
:05:36. > :05:42.country in the coming hours. I feel very sad. It is difficult for
:05:43. > :05:46.Argentina and other people. Everyone in the country is worried about the
:05:47. > :05:57.situation. For myself, I am an entrepreneur. I will not invest as
:05:58. > :06:07.I should. Or as I would like to. I am afraid my customers won't invest.
:06:08. > :06:13.That will affect my business. Negotiators from Argentina were on
:06:14. > :06:20.New York. The country has so far failed to comply with a ruling that
:06:21. > :06:25.says it will have to repay money after investors bought heavily
:06:26. > :06:34.discounted bonds after their economic collapse in 2001. The
:06:35. > :06:37.comely has experienced dark times. But this is the feeling on the
:06:38. > :06:43.street, people feel they have been unfairly treated. The man in charge
:06:44. > :06:51.of restructuring the debt in 2005, it feels surreal. I couldn't imagine
:06:52. > :06:58.this in my wildest dreams. Although people were unsatisfied and there
:06:59. > :07:04.were tough negotiations, they knew that Argentina would pay. That is a
:07:05. > :07:12.big difference from today. Today, Argentina has the money. Back then,
:07:13. > :07:19.we didn't. I think the negotiations begin to be much tougher. Experts
:07:20. > :07:25.say it won't be anywhere near as bad as the default in 2001. Banks are
:07:26. > :07:32.stronger and Argentina is isolated from international capital markets.
:07:33. > :07:39.But a default will deter investment, push up inflation and affect the
:07:40. > :07:46.economy. Argentina are stronger than 12 years ago, but it is not in doubt
:07:47. > :07:54.that the lives of average Argentinians will become harder. The
:07:55. > :07:57.Bank of England is expected to announce a wide`ranging review of
:07:58. > :08:00.City pay levels later, which means some bankers may have to return
:08:01. > :08:03.their bonuses, up to seven years after receiving them. Repayment
:08:04. > :08:05.could be ordered in the event of misdemeanour, big losses at the
:08:06. > :08:10.relevant bank, or bad risk management. Japanese car giant
:08:11. > :08:13.Toyota remains number one in global vehicles sales after the first six
:08:14. > :08:16.months of this year, followed by Volkswagen. General Motors was
:08:17. > :08:19.bumped out of second place as the US automaker grapples with a recall
:08:20. > :08:21.scandal. Toyota announced global sales totalled well over five
:08:22. > :08:36.million vehicles, up nearly 4% from a year earlier. The markets are
:08:37. > :08:43.focused on the US. We have great numbers out of there. The Federal
:08:44. > :08:48.Reserve is expected to withdraw stimulus for the sixth time in a row
:08:49. > :08:58.and discuss the timeline of interest rates rising in the United States.
:08:59. > :09:02.In Asia, it is a mixed picture. This is the close in the United States.
:09:03. > :09:10.We lost across the board. Twitter was the big mover. As I have already
:09:11. > :09:16.mentioned. Other earnings are affecting markets. For gross
:09:17. > :09:19.domestic product, we have had Japanese numbers out about
:09:20. > :09:25.industrial production. It did disappoint. It showed the impact the
:09:26. > :09:32.hike in sales tax has had on the wild's third biggest economy in
:09:33. > :09:41.terms of consumer demand. `` the world's. Also today, there are other
:09:42. > :09:49.corporate stories. They could have an impact on trading. Also, greater
:09:50. > :09:52.sanctions on Russia will stop three Russian banks have been mentioned
:09:53. > :10:01.and there are energy areas that could have an effect on sentiment. I
:10:02. > :10:11.will be back shortly. Stay with us here on the BBC. A new study
:10:12. > :10:14.suggests 5`portions of fruit and vegetables a day saves lives, but
:10:15. > :10:15.eating anymore than that has no extra