10/02/2016 World Business Report

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

hours are a threat to patient's health.

Those are the latest headlines from BBC World News.

Now for the latest financial news with the World Business Report.

The Force Awakens for Disney with its profits getting a major boost

from the latest Star Wars film, but is it enough to counter falling

And the apprentice is big business in Germany.

We focus on a system that is proving very

successful in creating long term employment in high skilled jobs.

Welcome to World Business Report, I'm Sally Bundock.

Also in the programme, Rico will update us on the Japanese

stock market, where shares continue to fall.

But first - the mouse took to space, and it paid off.

Profits at Walt Disney's studio division rose 86 percent

in the last quarter fuelled by the latest Star Wars Film.

But overall it was not such a rosy picture, Disney's sports

channel ESPN suffered from high payments for broadcast rights

The other parts of its media networks unit

including the Disney Channels and ABC also suffered mainly due to

So overall net income for the whole company only rose to $2.9 billion

dollars compared to $2.2 billion for the same period the year before.

And that wasn't enough to thrill Wall Street, Disney shares fell over

With me is Guy Bisson, Research Director at Ampere Analysis.

Disney is a massive media empire. It has so many elements. Talk us

through the challenges? The challenges for business and Disney

remain around the television. The problem they are facing is the shift

in the subscriber base. Customers are increasingly moving to over the

top platforms lack networks. The challenge for Disney is to challenge

the premium TV channels. It is even more acute for Disney, it was their

subscribers are quite young, and their behaviour is changing more

rapidly? -- like Netflix. Yes, their demographic is moving quickly

towards online platforms. The challenge for Disney is hitting back

audience both in the pay-TV space and also advertising, because

advertising is moving online. They are taking steps to counter this?

They have done a deal with net flicks and are going to get their

own offerings? One way to counter this is to licence to people like

Netflix, which they have done US -- Netflix. In UK, we also had the

launch of a monthly subscription of a service delivered over the

Internet. That is targeting the young demographic who are watching

increasingly online. When you look at their portfolio, they have a lot

of very strong elements such as Star Wars and Marvel? That is a big

element, they have some good parts to the business. Dude, they have

made huge investments in character driven enterprises such as Marvel --

yes, they have. They are being driven by those character driven

enterprises. They are great for the theme park business, which is the

second largest part of their enterprise. A lot more on that on

our website, take a look. Shares in Tokyo are continuing

to fall, after yesterday's Rico Hizon is in our Singapore

bureau. We are not headed higher. One market

special I spoke with said there could still be a correction of

another five to 10%. It seems to be heading in that direction, steeper

falls for the Tokyo stock market. The UK to -- Nikkei 225 is down a

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

fuelled by the strong Japanese yen. The worry is that currency is seen

as the safe haven. It will hurt international company's

competitiveness is the worry. The yen has been rising against the US

dollar from 121 up to 114, despite Japan's recent introduction of

negative interest rates which many analysts were hoping would

depreciate the yen against the dollar. Rates are expected to

squeeze their already tight profit margin. Companies like Mitsubishi

are losing as much as 4% today. That is on top of the losses they had on

Tuesday. And now to the third part

of our week long education series. Germany has Europe's lowest rates of

youth unemployment, at around 7%. This is partly because

of the traditional apprenticeship system, which allows young Germans

who don't go to university to train The training lasts

three-and-a-half years. And apprentices are typically paid

just under $1,000 More than half of young

Germans go down this route. Our correspondent in

Germany Damien McGuinness has been They might look like students, but

these are the future leaders of Europe's largest technology company,

Siemens. Apprentices like Ben. When he is not sitting at a desk, he is

getting on-the-job experience. Because apprentices in Germany

divide their time equally between the classroom and the factory

floor. The generosity is great. You can talk about something, but you're

not doing it. Here, you talk about something and later you go to our

centre and work there. You get something done. And you see and you

can hold it in your hands. That is important to me, to see what I did.

The big draw is that most trainees are guaranteed a job afterwards. It

is how most of the top managers started out at Siemens. In practice

it may be great for young people, but incredibly expensive for the

German companies that employ them. Here, each young trainee costs the

company 100,000 euros. What do German companies get out of this?

Managers tell me that apprenticeships provide the exact

skills needed, and Germany's low unemployment rate and ageing

population mean there is increasing pressure for workers. It's an

investment in the future. We save a lot of costs in further education

and training because we are involved in the education. They get all the

qualifications that they need for practical work. I think that we have

about, in two or three years, a return of investment. What makes the

German approach difficult is the support the scheme gets from the

rest of the country. Most of the learning is paid for by the state,

and apprenticeships are well respected -- German approach less

difficult. In other news: Japan Airlines has

announced that it will cancel fuel surcharges on

its international flights in April This is the first such move in six

and a half years. Its rival All Nippon Airways

is expected to follow suit. Australia's top mortgage lender

Commonwealth Bank has posted Banking shares down under are

suffering the worst start to a year since the global financial crisis

due to rising bad debt charges. British luxury fashion brand

Burberry is suing JC Penney. It's accusing the US retailer

of trademark infringement by selling clothes that featured

exact copies of its famous Looking at the markets. We have got

20 minutes left in Japan, almost three and a half % down on top of

the 5.4% loss we saw yesterday. Most of the markets in Asia are closed

for the lunar New Year. Singapore is open, that is how strong the

Japanese yen is. This is America, not as bad as the day before but

still headed in the wrong