10/02/2016

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:00:00. > :00:00.junior doctors. They say government plans to change pay and working

:00:00. > :00:00.hours are a threat to patient's health.

:00:00. > :00:00.Those are the latest headlines from BBC World News.

:00:00. > :00:22.Now for the latest financial news with the World Business Report.

:00:23. > :00:26.The Force Awakens for Disney with its profits getting a major boost

:00:27. > :00:29.from the latest Star Wars film, but is it enough to counter falling

:00:30. > :00:33.And the apprentice is big business in Germany.

:00:34. > :00:35.We focus on a system that is proving very

:00:36. > :00:40.successful in creating long term employment in high skilled jobs.

:00:41. > :00:43.Welcome to World Business Report, I'm Sally Bundock.

:00:44. > :00:46.Also in the programme, Rico will update us on the Japanese

:00:47. > :00:53.stock market, where shares continue to fall.

:00:54. > :00:56.But first - the mouse took to space, and it paid off.

:00:57. > :01:04.Profits at Walt Disney's studio division rose 86 percent

:01:05. > :01:07.in the last quarter fuelled by the latest Star Wars Film.

:01:08. > :01:10.But overall it was not such a rosy picture, Disney's sports

:01:11. > :01:12.channel ESPN suffered from high payments for broadcast rights

:01:13. > :01:15.The other parts of its media networks unit

:01:16. > :01:18.including the Disney Channels and ABC also suffered mainly due to

:01:19. > :01:25.So overall net income for the whole company only rose to $2.9 billion

:01:26. > :01:33.dollars compared to $2.2 billion for the same period the year before.

:01:34. > :01:36.And that wasn't enough to thrill Wall Street, Disney shares fell over

:01:37. > :01:48.With me is Guy Bisson, Research Director at Ampere Analysis.

:01:49. > :01:55.Disney is a massive media empire. It has so many elements. Talk us

:01:56. > :02:01.through the challenges? The challenges for business and Disney

:02:02. > :02:08.remain around the television. The problem they are facing is the shift

:02:09. > :02:12.in the subscriber base. Customers are increasingly moving to over the

:02:13. > :02:22.top platforms lack networks. The challenge for Disney is to challenge

:02:23. > :02:27.the premium TV channels. It is even more acute for Disney, it was their

:02:28. > :02:33.subscribers are quite young, and their behaviour is changing more

:02:34. > :02:38.rapidly? -- like Netflix. Yes, their demographic is moving quickly

:02:39. > :02:44.towards online platforms. The challenge for Disney is hitting back

:02:45. > :02:49.audience both in the pay-TV space and also advertising, because

:02:50. > :02:54.advertising is moving online. They are taking steps to counter this?

:02:55. > :03:02.They have done a deal with net flicks and are going to get their

:03:03. > :03:06.own offerings? One way to counter this is to licence to people like

:03:07. > :03:16.Netflix, which they have done US -- Netflix. In UK, we also had the

:03:17. > :03:19.launch of a monthly subscription of a service delivered over the

:03:20. > :03:24.Internet. That is targeting the young demographic who are watching

:03:25. > :03:32.increasingly online. When you look at their portfolio, they have a lot

:03:33. > :03:38.of very strong elements such as Star Wars and Marvel? That is a big

:03:39. > :03:42.element, they have some good parts to the business. Dude, they have

:03:43. > :03:53.made huge investments in character driven enterprises such as Marvel --

:03:54. > :03:58.yes, they have. They are being driven by those character driven

:03:59. > :04:05.enterprises. They are great for the theme park business, which is the

:04:06. > :04:09.second largest part of their enterprise. A lot more on that on

:04:10. > :04:13.our website, take a look. Shares in Tokyo are continuing

:04:14. > :04:15.to fall, after yesterday's Rico Hizon is in our Singapore

:04:16. > :04:35.bureau. We are not headed higher. One market

:04:36. > :04:42.special I spoke with said there could still be a correction of

:04:43. > :04:47.another five to 10%. It seems to be heading in that direction, steeper

:04:48. > :05:01.falls for the Tokyo stock market. The UK to -- Nikkei 225 is down a

:05:02. > :05:05.lot, that is more than 8% in two trading days. Concerns have been

:05:06. > :05:11.fuelled by the strong Japanese yen. The worry is that currency is seen

:05:12. > :05:17.as the safe haven. It will hurt international company's

:05:18. > :05:26.competitiveness is the worry. The yen has been rising against the US

:05:27. > :05:34.dollar from 121 up to 114, despite Japan's recent introduction of

:05:35. > :05:35.negative interest rates which many analysts were hoping would

:05:36. > :05:43.depreciate the yen against the dollar. Rates are expected to

:05:44. > :05:49.squeeze their already tight profit margin. Companies like Mitsubishi

:05:50. > :05:53.are losing as much as 4% today. That is on top of the losses they had on

:05:54. > :05:57.Tuesday. And now to the third part

:05:58. > :06:00.of our week long education series. Germany has Europe's lowest rates of

:06:01. > :06:03.youth unemployment, at around 7%. This is partly because

:06:04. > :06:05.of the traditional apprenticeship system, which allows young Germans

:06:06. > :06:08.who don't go to university to train The training lasts

:06:09. > :06:22.three-and-a-half years. And apprentices are typically paid

:06:23. > :06:24.just under $1,000 More than half of young

:06:25. > :06:27.Germans go down this route. Our correspondent in

:06:28. > :06:41.Germany Damien McGuinness has been They might look like students, but

:06:42. > :06:47.these are the future leaders of Europe's largest technology company,

:06:48. > :06:52.Siemens. Apprentices like Ben. When he is not sitting at a desk, he is

:06:53. > :06:57.getting on-the-job experience. Because apprentices in Germany

:06:58. > :07:05.divide their time equally between the classroom and the factory

:07:06. > :07:10.floor. The generosity is great. You can talk about something, but you're

:07:11. > :07:15.not doing it. Here, you talk about something and later you go to our

:07:16. > :07:20.centre and work there. You get something done. And you see and you

:07:21. > :07:26.can hold it in your hands. That is important to me, to see what I did.

:07:27. > :07:32.The big draw is that most trainees are guaranteed a job afterwards. It

:07:33. > :07:35.is how most of the top managers started out at Siemens. In practice

:07:36. > :07:39.it may be great for young people, but incredibly expensive for the

:07:40. > :07:46.German companies that employ them. Here, each young trainee costs the

:07:47. > :07:51.company 100,000 euros. What do German companies get out of this?

:07:52. > :07:58.Managers tell me that apprenticeships provide the exact

:07:59. > :08:00.skills needed, and Germany's low unemployment rate and ageing

:08:01. > :08:05.population mean there is increasing pressure for workers. It's an

:08:06. > :08:09.investment in the future. We save a lot of costs in further education

:08:10. > :08:15.and training because we are involved in the education. They get all the

:08:16. > :08:22.qualifications that they need for practical work. I think that we have

:08:23. > :08:26.about, in two or three years, a return of investment. What makes the

:08:27. > :08:31.German approach difficult is the support the scheme gets from the

:08:32. > :08:36.rest of the country. Most of the learning is paid for by the state,

:08:37. > :08:37.and apprenticeships are well respected -- German approach less

:08:38. > :08:40.difficult. In other news: Japan Airlines has

:08:41. > :08:43.announced that it will cancel fuel surcharges on

:08:44. > :08:45.its international flights in April This is the first such move in six

:08:46. > :08:51.and a half years. Its rival All Nippon Airways

:08:52. > :08:52.is expected to follow suit. Australia's top mortgage lender

:08:53. > :08:54.Commonwealth Bank has posted Banking shares down under are

:08:55. > :09:03.suffering the worst start to a year since the global financial crisis

:09:04. > :09:19.due to rising bad debt charges. British luxury fashion brand

:09:20. > :09:22.Burberry is suing JC Penney. It's accusing the US retailer

:09:23. > :09:24.of trademark infringement by selling clothes that featured

:09:25. > :09:36.exact copies of its famous Looking at the markets. We have got

:09:37. > :09:42.20 minutes left in Japan, almost three and a half % down on top of

:09:43. > :09:48.the 5.4% loss we saw yesterday. Most of the markets in Asia are closed

:09:49. > :09:54.for the lunar New Year. Singapore is open, that is how strong the

:09:55. > :09:57.Japanese yen is. This is America, not as bad as the day before but

:09:58. > :09:59.still headed in the wrong