28/08/2014 World Business Report

raising concerns over further instances of electoral fraud. Those

are the latest headlines on BBC News. Now for the latest financial

news, World Business Report. Of $2.6 billion for Qantas by the

airline boss says the worst is over. Writing China's internet wave,

profit surge at Ali Bubba as it gears up for a vast stock market

debut `` riding. Welcome to World Business Report. In

a moment, Israel's Hotel is demanding state compensation as

visitor numbers hit a seven year low. `` Israel's Hotels. Hard times

for Qantas, revealing the biggest financial loss in 94 years as it

battles to restructure and stay in the air. In the year to the above

June, it lost $2.6 billion US, most of it a huge charge for

restructuring including thousands of redundancies that the firm has

made. One of the world's oldest and most recognisable airlines is in

deep trouble. Soaring fuel costings and fierce competition have resulted

losses. Despite its decline, Qantas losses. Despite its decline, Qantas

remains a popular institution at home. Australians want Qantas to

survive. They're not afraid to fly with someone else. It's good with

had an airline for some long. Pontus is allied with and rents and wants

the government to relax regulations `` Qantas is allied with Emirates.

Travellers continue to desert Australia's national cal `` carrier.

If you look at the passenger airline miles, they are diminishing for

Qantas. Where does the shrinking stop? Probably with Qantas closing

or with foreign capital coming in. The aviation market in Australia is

saturated and Qantas faces relentless competition on

international and to match `` domestic routes. Many feel he

international takeover is inevitable. Foreign ownership, look

at the mining, it is owned by the Chinese. If it keeps it afloat,

keeps the jobs in Australia, makes no difference. In an ultra

competitive industry, Qantas' plans for a profitable future will come

under scrutiny. There are those who believe that for the flying

kangaroo, this could be a life or death struggle. At stake, not only

thousands of jobs, but Australia's aviation restricts the ``

reputation. Trade unions threaten strike actions over job cuts

including in maintenance. Pilots say decisive action is needed to build a

stronger airline. It needs to go through pain initially like we are

going through now with the redundancies and losses. It needs to

justify to the banks and to shareholders that injections of

capital can re`equip the fleet so it can buy a modern aircraft. Qantas

has flown for a century but is facing unprecedented challenges. For

the famous flying kangaroo, the months ahead promise to be

turbulent. From a struggling company to one

that is the opposite, the Chinese e`commerce giant Ali Bubba has

announced a surge in profits as it gears up for a massive stock market

flotation in the US `` Alibaba. Profits tripled to $1.99 billion in

the three months to June. Not surprising given that Ali Baba

accounts for most retail sales in China. It could be worth more than

$200 billion when it floats. That is more than Amazon or eBay. Good news

for this man, the founder and chairman, and former college

lecturer who is China's richest man according to Bloomberg billionaires

index. Of course, the flotation could make him quite a bit richer.

Let's get more from Rico Hizon in Singapore. Just what the company

needs as it prepares to float. That's right. The firm will debut on

the New York Stock Exchange later this year and it is expected to be

the biggest internet stock offer since Facebook in 2012. Analyst said

the company could raise over $20 billion `` analyst we're. That will

make it a 200 billion dollar company, one of the 20 biggest

listed. `` analysts. The main takeaway from this earnings is that

Mobile monetisation is on a strong trajectory `` mobiles. Growth has

slowed over the last two years due to stiff competition and major

investment. The e`commerce giant is looking to develop mobile platforms

as a key revenue source with people increasingly accessing the internet

from smart phones and tablets. They want to compete with the likes of

Facebook and Amazon in their own turf in the US markets. Thank you.

We will look at that more in the run`up to the flotation. In other

news, owners of hotels in Israel demand millions in compensation from

the state over the conflict in Gaza. Before the ceasefire, the crisis saw

visitor numbers dropped to the lowest level in seven years and it

hit many businesses in Palestine that rely on tourism to the holy

Over 4500 rocket launched into Over 4500 rocket launched into

Israel from Gaza over 50 days of fighting kept foreign tourists awake

and stopped Israelis from travelling around the country. Tourism fell by

one fifth. Some of the most famous sites in Jerusalem were almost

empty. How has this affected business? It has cut down on the

number of terms. The groups have gotten smaller and I would not be

surprised if there had been cancellations. Feeling the pain too

is Israel's Hotel industry. In Tel Aviv, this hotel would normally be

full. Up till last week it was hard, around 25`30 percent of

occupation. Israel's government says $500 million worth of damage has

been done to the industry of tourism. It is not good for tourism.

In Israel, unlike Europe, high it season in tourism is in October and

May not July and August so there is time to heal. It is a blow though, I

don't deny it. Sunseekers in Tel Aviv had 90 seconds to find shelter

when an alarm was triggered. Now, the alarms have fallen silent and

beach`goers look calm. Domestic tourism was badly hit too.

Businesses across Israel, directly or indirectly related to the

incoming or outgoing tourism have been affected either crisis. As the

ministry of tourism puts it, the longer the hostilities continue, the

more the sector is affected. Even before the dust has settled, a new

battle breaks out over compensation from the state. However, for

Palestinians perfected beyond the separation barrier with Israel,

there is no sign of compensation. In Bethlehem, souvenir shops lie empty.

Since 45 days I don't sell $100. Should someone step into Seaview? ``

save you? . Save me. Businesses in the holy land pray for economic help

but know if the ceasefire holds it will allow a return to profit.

In other stories, the trade union members in the Argentine capital

have begun a 36 hour strike in protest at the government's economic

policies. The cost of living is soaring for ordinary Argentines but

inflation in the recession hit country is running as much as 40%

each year. Argentina has been ruled in default on its debts after a

legal dispute with US investors. Apple could launch an dumb at a

watch `` could launch at a watch introducing the device to compete

with Samsung's watch. It is a new generation iPhone

six`month firm. `` phone. Let's look at Asian markets. A mixed picture.

Off the back of strong figures in the US with a record close for the

SNP. More later. See you soon. Britain is deeply early test towards

people from private school, and Oxbridge graduates dominate senior

public life. The commission found 70% of senior judges, half of the

House of Lords and one third of