26/01/2016

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:00:00. > :00:16.Now for the latest financial news and World Business Report.

:00:17. > :00:20.Iran is open for business - President Rouhani is in Rome on his

:00:21. > :00:23.first official visit to Europe since sanctions were lifted and businesses

:00:24. > :00:33.Apple will post its latest earnings news but will it also reveal sales

:00:34. > :00:46.Also in the programme Sharanjit will join us from Singapore to explain

:00:47. > :00:50.why Ford is pulling out of Japan and Indonesia.

:00:51. > :00:53.It's being described as a European business bonanza -

:00:54. > :00:56.it's the first official state visit of Iran's President to Europe just

:00:57. > :00:59.a week after sanctions were lifted following

:01:00. > :01:08.and European businesses are eager to get in on the tens of billions

:01:09. > :01:11.of dollars worth deals expected to be signed over the next few days.

:01:12. > :01:14.Italian media say agreements worth $18 billion will be done while

:01:15. > :01:22.They include an Italian firm building

:01:23. > :01:24.a 2,000 kilometre pipeline, steel agreements worth more than

:01:25. > :01:36.5-billion dollars and a joint venture called Persian Metallics.

:01:37. > :01:39.Metallics.Later in the week in Paris - President Rouhani's expected to

:01:40. > :01:42.finalise a deal with Airbus to buy 114 new planes - to replace Iran's

:01:43. > :01:46.Over the weekend Iran signed a trade an energy deal with China

:01:47. > :01:58.With me is Dominic Bokor-Ingram from Charlemagne Capital.

:01:59. > :02:05.Thank you for coming in. It sounds like business is booming and in some

:02:06. > :02:10.ways, I am not surprised to hear that given the amount of time

:02:11. > :02:16.companies and countries have had to get ready for this? Effectively,

:02:17. > :02:20.they have had two years to get ready since the start of the nuclear

:02:21. > :02:28.talks. The next 18 months, we will start to see it built. Iran is not

:02:29. > :02:35.suffer from lack of money as a lack of expertise. To provide all the way

:02:36. > :02:44.of doing business to wean contracts. -- a more modern way.

:02:45. > :02:50.Italy, France, but where are the US and the UK and are you understand

:02:51. > :02:57.Germany is on that list as well. Germany never cut the dramatic ties

:02:58. > :03:00.throughout the sanctions. UK is further down in terms of the

:03:01. > :03:06.European pecking order and the US is blast at the moment although, given

:03:07. > :03:09.what I have said about the need for knowledge and expertise, I would

:03:10. > :03:16.expect them to move up the pecking order due to some of their oil and

:03:17. > :03:22.gas exploration expertise. You specialise in investing in Iran.

:03:23. > :03:26.From your point of view, tell us about the potential because the

:03:27. > :03:33.financial markets are happening and very transparent and very modern,

:03:34. > :03:39.are they not? Their stock exchange has been going on since the 1960s,

:03:40. > :03:43.it is well developed with $100 billion of capitalisation. It is

:03:44. > :03:50.very rare these days to find a developed, big stock market has been

:03:51. > :03:55.completely shut to foreigners for a few years. We see a market on a

:03:56. > :04:01.price-earnings ratio of five times, in an economy, given the deals and

:04:02. > :04:07.economic hiccup, could grow six to 8% in the next ten years and that is

:04:08. > :04:10.an opportunity. We could talk for much longer but unfortunately we did

:04:11. > :04:17.not have the time. Thank you for coming in. And, of course, as a

:04:18. > :04:19.deals and agreements are announced we will let you know.

:04:20. > :04:22.Computing giant Apple is set to publish its latest earning figures -

:04:23. > :04:24.and after the Christmas period it's expected the company will declare

:04:25. > :04:26.another record-breaking quarter of success and profits.

:04:27. > :04:29.But despite that, stock has fallen, and investors are worried.

:04:30. > :04:42.Our North America technology reporter Dave Lee finds out.

:04:43. > :04:49.Throughout 2015 any update from Apple was usually fantastic news for

:04:50. > :04:53.it occurs. It was a time of record-breaking profits and rapid

:04:54. > :04:59.expansion but investors may be expecting some uncharacteristically

:05:00. > :05:04.bad news from the bosses at Apple HQ. After blistering 2015, is the

:05:05. > :05:11.company showing some signs of weakness? After a high in May of

:05:12. > :05:17.over $130 a share, for the first time since Dover 2013, it dipped to

:05:18. > :05:23.below $100. There are two key theories. There are a lot of people

:05:24. > :05:29.that look at Apple performance and the Reliance they have on the iPhone

:05:30. > :05:32.when it comes to revenue and they are questioning, going forward, how

:05:33. > :05:41.much that will be a problem for them or not fool 's top Right now, 63% of

:05:42. > :05:47.its entire revenue is from its iPhone. Apple still will not tell us

:05:48. > :05:54.how much it new watch is bringing in. The company's latest results are

:05:55. > :06:01.expected to be good but they may come with a warning that, for the

:06:02. > :06:06.first since its launch, sales of the mighty iPhone are now in decline.

:06:07. > :06:10.The second issue facing Apple is China for the company now makes more

:06:11. > :06:15.money here than in the whole of Europe. With Chinese growth slowing,

:06:16. > :06:20.there is concern that will affect Apple's growth as well. They really

:06:21. > :06:25.bet their house on the China growth opportunity. Apple insist it is not

:06:26. > :06:31.worried. They are still buying gadgets and the company has 30

:06:32. > :06:37.stores in China with 20 of room for more. 2016 headlines will tell their

:06:38. > :06:45.story. This year will bring the iPhone to seven and an upgraded

:06:46. > :06:50.budget iPhone as well. Murmurs that Apple is creating its car are

:06:51. > :06:56.getting higher and higher. It is what happens behind closed doors but

:06:57. > :06:58.we be determined their fate. While Apple is not invincible, it still

:06:59. > :07:10.very much in control. This time tomorrow we will tell you

:07:11. > :07:11.how Apple did. We will keep an eye on that story.

:07:12. > :07:14.Ford is shutting down all its operations in Japan and Indonesia.

:07:15. > :07:17.Let's go straight to Sharanjit Leyl in our Asia Business Hub

:07:18. > :07:29.Why it is for doing that? They are doing that because essentially they

:07:30. > :07:33.have had poor sales and market conditions in those two markets. The

:07:34. > :07:38.company said it will close all operations in Japan and Indonesia as

:07:39. > :07:46.there was really no reasonable part to profitability in those countries.

:07:47. > :07:51.Gerald motors said it to will pull out of Indonesia. -- and General

:07:52. > :07:57.Motors. If you take a look at the sales Ford made to these two

:07:58. > :08:05.markets, it only accounted for 0.1%. And a 6% of the Indonesian

:08:06. > :08:12.market. I spoke earlier to an analyst who had this to say. Ford

:08:13. > :08:20.never made sense in Japan. Indonesia, you have a strategy, you

:08:21. > :08:23.could argue, is a substantial market at the problem is, the Indonesian

:08:24. > :08:30.government has a policy of insisting on Local Assembly. Ford either had

:08:31. > :08:39.to get in in a very big way, which made no sense. Markets like

:08:40. > :08:45.Indonesia are hard for foreign carmakers. Ford blames the

:08:46. > :08:53.government for protective policies that favour domestic brands over

:08:54. > :08:58.imported cars. The 12 nation transpacific trade agreement in its

:08:59. > :09:02.current form also does not improve Ford's ability to compete there. In

:09:03. > :09:09.terms of the number of people employed in these markets, 300

:09:10. > :09:12.workers in Japan and 35 people in Indonesia.

:09:13. > :09:15.Deutsche Bank's South Korean unit has been fined $1-point-3 million

:09:16. > :09:18.dollars over its role in the 2010 stock market plunge.A

:09:19. > :09:20.Seoul court found the lender guilty of market

:09:21. > :09:24.manipulation and said it illegally profited after Korea's benchmark

:09:25. > :09:29.Kospi index fell nearly 3% in the final 10 minutes of trading.

:09:30. > :09:32.A Deutsche Bank employee was also sentenced to five years

:09:33. > :09:44.in prison for his role in the so-called flash crash.

:09:45. > :09:51.Let's look at the financial markets very quickly. I'm afraid to say they

:09:52. > :09:57.have succumbed to pessimism around the world. Japan is down. Australia

:09:58. > :10:05.is closed for a public holiday. The yen is still fairly weak. But if you

:10:06. > :10:07.look at what happened in Wall Street, losses across the board.