30/07/2014 World Business Report

headlines from BBC News. Now for the latest financial news with Sally

Bundock and World Business Report. Twitter flying high. Shares spike

35% as the social media giant reveals it now has over 270 million

monthly users The clock is ticking. Argentina faces default if the

government and vulture funds don't reach a deal before midnight.

Welcome to World Business Report. I'm Sally Bundock. Also in the

programme, the latest in our series on how the young are using

technology to develop new ways of working. But first, there was some

nervousness on Wall Street, before Twitter released its second quarter

earnings, only the third time it's reporting earnings as a public

company. But despite those agitations, the micro`blogging site

did not disappoint. Revenue rose 124% to $312 million, compared to

the same quarter a year ago. But the number that investors were really

looking for was just how many users Twitter has. And the company

surprised analysts and the street. Samira Hussain reports from New

York. Twitter is the microblogging website that became a publicly

traded company in November last year. Since then, its history on the

stock market has been rocky. Since January this year, its stock price

has dropped more than 40%. Although it has been able to demonstrate that

it can make money through advertising, what investors are

worried about is its growth potential. They need to get more new

users. The second`quarter earnings did not disappoint. The company

reported 270 million monthly average users. More than three quarters of

that group are accessing Twitter through their mobile phones. For

investors in New York, that was newsworthy of tweeting. The share

price was up more than 20%. A big part of these gains are as a result

of the World Cup. The question for Twitter is whether they can keep the

new Users. New data out of Japan shows

industrial output fell at the fastest rate since the 2011

earthquake and tsunami disaster. Sharanjit Leyl is in our Asia

business hub in Singapore. We're getting a picture of how Japan is

faring. Tell us about today's news. It is the factory

output data that is out today. It is the fastest growth since the

earthquake. That is from May until June. That is the latest to show

that the sales tax rise is affecting consumer demand, and many other

things. Japan raised its sales tax, also known as consumption tax, from

5% to 8% in April. There has been a lot of concern about that move. It

makes goods more expensive and consumers cut back on spending.

Recent data released showed that retail sales declined in

household spending was also down. They are also saying that consumers

and businesses are rushing to make purchases ahead of the rise in

April, it meant that the downturn is much steeper after the tax took a

fact. There is a silver lining. The Ministry of economy, trade and

industry don't expect that dismal picture to last. They expect output

to rise in the coming months. Thank you for putting that in perspective.

We will look at the markets later. First, let's talk about Argentina.

The Argentine finance minister Axel Kicillof has held negotiations to

avoid his country's second default in 13 years. He was speaking after

five hours of talks in New York; discussions will resume on Wednesday

ahead of the midnight deadline for Argentina to pay a group of hedge

funds $1.3 billion. The companies bought the debt on the cheap

following Argentina's original default in 2001 and have refused to

accept the partial settlement the country has agreed with other

bondholders. Katy Watson now reports from Buenos Aires. On the streets of

Buenos Aires, it feels like is not as usual. Only, by the end of today,

things might not be as they were. The newspapers report every small

detail, offering a glimpse of the competitions that could face this

country in the coming hours. I feel very sad. It is difficult for

Argentina and other people. Everyone in the country is worried about the

situation. For myself, I am an entrepreneur. I will not invest as

I should. Or as I would like to. I am afraid my customers won't invest.

That will affect my business. Negotiators from Argentina were on

New York. The country has so far failed to comply with a ruling that

says it will have to repay money after investors bought heavily

discounted bonds after their economic collapse in 2001. The

comely has experienced dark times. But this is the feeling on the

street, people feel they have been unfairly treated. The man in charge

of restructuring the debt in 2005, it feels surreal. I couldn't imagine

this in my wildest dreams. Although people were unsatisfied and there

were tough negotiations, they knew that Argentina would pay. That is a

big difference from today. Today, Argentina has the money. Back then,

we didn't. I think the negotiations begin to be much tougher. Experts

say it won't be anywhere near as bad as the default in 2001. Banks are

stronger and Argentina is isolated from international capital markets.

But a default will deter investment, push up inflation and affect the

economy. Argentina are stronger than 12 years ago, but it is not in doubt

that the lives of average Argentinians will become harder. The

Bank of England is expected to announce a wide`ranging review of

City pay levels later, which means some bankers may have to return

their bonuses, up to seven years after receiving them. Repayment

could be ordered in the event of misdemeanour, big losses at the

relevant bank, or bad risk management. Japanese car giant

Toyota remains number one in global vehicles sales after the first six

months of this year, followed by Volkswagen. General Motors was

bumped out of second place as the US automaker grapples with a recall

scandal. Toyota announced global sales totalled well over five

million vehicles, up nearly 4% from a year earlier. The markets are

focused on the US. We have great numbers out of there. The Federal

Reserve is expected to withdraw stimulus for the sixth time in a row

and discuss the timeline of interest rates rising in the United States.

In Asia, it is a mixed picture. This is the close in the United States.

We lost across the board. Twitter was the big mover. As I have already

mentioned. Other earnings are affecting markets. For gross

domestic product, we have had Japanese numbers out about

industrial production. It did disappoint. It showed the impact the

hike in sales tax has had on the wild's third biggest economy in

terms of consumer demand. `` the world's. Also today, there are other

corporate stories. They could have an impact on trading. Also, greater

sanctions on Russia will stop three Russian banks have been mentioned

and there are energy areas that could have an effect on sentiment. I

will be back shortly. Stay with us here on the BBC. A new study

suggests 5`portions of fruit and vegetables a day saves lives, but

eating anymore than that has no extra