26/01/2016 World Business Report


26/01/2016

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Now for the latest financial news and World Business Report.

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Iran is open for business - President Rouhani is in Rome on his

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first official visit to Europe since sanctions were lifted and businesses

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Apple will post its latest earnings news but will it also reveal sales

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Also in the programme Sharanjit will join us from Singapore to explain

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why Ford is pulling out of Japan and Indonesia.

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It's being described as a European business bonanza -

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it's the first official state visit of Iran's President to Europe just

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a week after sanctions were lifted following

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and European businesses are eager to get in on the tens of billions

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of dollars worth deals expected to be signed over the next few days.

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Italian media say agreements worth $18 billion will be done while

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They include an Italian firm building

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a 2,000 kilometre pipeline, steel agreements worth more than

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5-billion dollars and a joint venture called Persian Metallics.

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Metallics.Later in the week in Paris - President Rouhani's expected to

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finalise a deal with Airbus to buy 114 new planes - to replace Iran's

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Over the weekend Iran signed a trade an energy deal with China

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With me is Dominic Bokor-Ingram from Charlemagne Capital.

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Thank you for coming in. It sounds like business is booming and in some

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ways, I am not surprised to hear that given the amount of time

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companies and countries have had to get ready for this? Effectively,

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they have had two years to get ready since the start of the nuclear

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talks. The next 18 months, we will start to see it built. Iran is not

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suffer from lack of money as a lack of expertise. To provide all the way

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of doing business to wean contracts. -- a more modern way.

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Italy, France, but where are the US and the UK and are you understand

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Germany is on that list as well. Germany never cut the dramatic ties

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throughout the sanctions. UK is further down in terms of the

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European pecking order and the US is blast at the moment although, given

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what I have said about the need for knowledge and expertise, I would

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expect them to move up the pecking order due to some of their oil and

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gas exploration expertise. You specialise in investing in Iran.

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From your point of view, tell us about the potential because the

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financial markets are happening and very transparent and very modern,

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are they not? Their stock exchange has been going on since the 1960s,

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it is well developed with $100 billion of capitalisation. It is

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very rare these days to find a developed, big stock market has been

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completely shut to foreigners for a few years. We see a market on a

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price-earnings ratio of five times, in an economy, given the deals and

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economic hiccup, could grow six to 8% in the next ten years and that is

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an opportunity. We could talk for much longer but unfortunately we did

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not have the time. Thank you for coming in. And, of course, as a

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deals and agreements are announced we will let you know.

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Computing giant Apple is set to publish its latest earning figures -

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and after the Christmas period it's expected the company will declare

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another record-breaking quarter of success and profits.

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But despite that, stock has fallen, and investors are worried.

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Our North America technology reporter Dave Lee finds out.

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Throughout 2015 any update from Apple was usually fantastic news for

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it occurs. It was a time of record-breaking profits and rapid

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expansion but investors may be expecting some uncharacteristically

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bad news from the bosses at Apple HQ. After blistering 2015, is the

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company showing some signs of weakness? After a high in May of

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over $130 a share, for the first time since Dover 2013, it dipped to

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below $100. There are two key theories. There are a lot of people

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that look at Apple performance and the Reliance they have on the iPhone

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when it comes to revenue and they are questioning, going forward, how

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much that will be a problem for them or not fool 's top Right now, 63% of

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its entire revenue is from its iPhone. Apple still will not tell us

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how much it new watch is bringing in. The company's latest results are

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expected to be good but they may come with a warning that, for the

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first since its launch, sales of the mighty iPhone are now in decline.

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The second issue facing Apple is China for the company now makes more

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money here than in the whole of Europe. With Chinese growth slowing,

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there is concern that will affect Apple's growth as well. They really

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bet their house on the China growth opportunity. Apple insist it is not

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worried. They are still buying gadgets and the company has 30

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stores in China with 20 of room for more. 2016 headlines will tell their

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story. This year will bring the iPhone to seven and an upgraded

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budget iPhone as well. Murmurs that Apple is creating its car are

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getting higher and higher. It is what happens behind closed doors but

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we be determined their fate. While Apple is not invincible, it still

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very much in control. This time tomorrow we will tell you

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how Apple did. We will keep an eye on that story.

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Ford is shutting down all its operations in Japan and Indonesia.

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Let's go straight to Sharanjit Leyl in our Asia Business Hub

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Why it is for doing that? They are doing that because essentially they

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have had poor sales and market conditions in those two markets. The

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company said it will close all operations in Japan and Indonesia as

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there was really no reasonable part to profitability in those countries.

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Gerald motors said it to will pull out of Indonesia. -- and General

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Motors. If you take a look at the sales Ford made to these two

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markets, it only accounted for 0.1%. And a 6% of the Indonesian

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market. I spoke earlier to an analyst who had this to say. Ford

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never made sense in Japan. Indonesia, you have a strategy, you

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could argue, is a substantial market at the problem is, the Indonesian

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government has a policy of insisting on Local Assembly. Ford either had

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to get in in a very big way, which made no sense. Markets like

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Indonesia are hard for foreign carmakers. Ford blames the

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government for protective policies that favour domestic brands over

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imported cars. The 12 nation transpacific trade agreement in its

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current form also does not improve Ford's ability to compete there. In

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terms of the number of people employed in these markets, 300

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workers in Japan and 35 people in Indonesia.

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Deutsche Bank's South Korean unit has been fined $1-point-3 million

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dollars over its role in the 2010 stock market plunge.A

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Seoul court found the lender guilty of market

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manipulation and said it illegally profited after Korea's benchmark

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Kospi index fell nearly 3% in the final 10 minutes of trading.

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A Deutsche Bank employee was also sentenced to five years

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in prison for his role in the so-called flash crash.

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Let's look at the financial markets very quickly. I'm afraid to say they

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have succumbed to pessimism around the world. Japan is down. Australia

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is closed for a public holiday. The yen is still fairly weak. But if you

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look at what happened in Wall Street, losses across the board.

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