:00:07. > :00:08.Those are the latest headlines from BBC World News.
:00:09. > :00:10.Now for the latest financial news with
:00:11. > :00:18.Do millions of iPhones have a security flaw that
:00:19. > :00:24.The FBI thinks so and they plan on using it to try and crack
:00:25. > :00:30.More bad news for Petrobras - The Brazilian oil giant made a
:00:31. > :00:33.record loss of $10.2 billion in the final three months of last year.
:00:34. > :00:42.Is it now too late to turn the company around?
:00:43. > :00:49.We're also live in Sydney to get the latest on Australia's stock
:00:50. > :00:51.exchange boss who's resigned amid an ongoing bribery probe.
:00:52. > :01:05.Federal prosecutors in the United States say the FBI may have found
:01:06. > :01:08.a way to unlock the mobile phone of a gunman involved in the killing
:01:09. > :01:11.of 14 people in the city of San Bernardino, California, in December.
:01:12. > :01:13.The revelation could have security implications for millions
:01:14. > :01:19.Apple has until now been contesting a court
:01:20. > :01:22.order to help FBI investigators access data on the phone saying it
:01:23. > :01:24.would have implications far beyond the legal case.
:01:25. > :01:26.Bruce Schneier is a computer security expert.
:01:27. > :01:29.Speaking a little earlier he said it's still unclear if the FBI
:01:30. > :01:38.will tell Apple how they plan on cracking the iPhone's encryption.
:01:39. > :01:51.This is not a good week for Apple and the iPhone. There has been
:01:52. > :01:57.another issue at Johns Hopkins University, allowing people to get
:01:58. > :02:03.into e-mails. The question is whether Apple should try to make
:02:04. > :02:06.their devices secure. They will fix vulnerabilities as they find them
:02:07. > :02:13.but nobody believes these are unbreakable. They asked for a
:02:14. > :02:17.two-week delay while they figure it out, and it might work or it might
:02:18. > :02:23.not. If it does work, what does the FBI do? They keep everyone's phones
:02:24. > :02:27.insecure or do they get Apple to try to fix it. This was always about the
:02:28. > :02:31.legal precedent, not about the details of the case. The case was
:02:32. > :02:39.chosen because it sounded good on television. This shows us that the
:02:40. > :02:44.FBI lacks expertise. What the FBI needs is expertise in computer
:02:45. > :02:48.security, not backdoors. Edward Snowden is right, we all knew there
:02:49. > :02:50.were other ways in, but the FBI lacked the expertise to exploit
:02:51. > :02:56.them, so they went after Apple. Brazilian commodities giant
:02:57. > :03:00.Petrobras has released The company made a record loss
:03:01. > :03:04.of $10.2 billion If ever there was a case
:03:05. > :03:08.for linking the fate of a company and a country together
:03:09. > :03:15.it would be Petrobras and Brazil. A decade ago both were seen as the
:03:16. > :03:18.darlings of the developing world. An economy and company both getting
:03:19. > :03:21.rich off the boom in commodity prices, since then
:03:22. > :03:23.things have gone downhill fast. Petrobras' investments alone
:03:24. > :03:25.represent 2% of Brazil's gross national product,
:03:26. > :03:27.and its downturn has harmed a national economy struggling as
:03:28. > :03:33.a result of low commodity prices. While the price of raw materials has
:03:34. > :03:36.fallen, the company has also been bogged down in allegations that
:03:37. > :03:39.large oil contracts were awarded by executives and politicians,
:03:40. > :03:41.in exchange for bribes. The Petrobras inquiry has led to
:03:42. > :03:44.proceedings against dozens of business executives
:03:45. > :03:46.and ruling party figures, with some already being sentenced to prison
:03:47. > :03:49.time for their part in the scandal. Even Brazil's former president
:03:50. > :03:52.Luiz Inacio Lula da Silva is being investigated over allegations
:03:53. > :03:54.of money laundering linked to An attempt by current
:03:55. > :03:58.President Dilma Rousseff last week to make him part of her current
:03:59. > :04:01.government was met by mass protests The appointment is currently
:04:02. > :04:11.being blocked by a senior judge. So where does this leave
:04:12. > :04:13.the company, well the corruption scandal has already cost Petrobras
:04:14. > :04:16.$17 billion due to losses As for the Brazilian economy,
:04:17. > :04:41.it's in a deep recession, Joining me now is Benat
:04:42. > :04:44.Bilbao-Osorio, Regional Director for Latin America and the Caribbean
:04:45. > :04:56.at the Economist Intelligence Unit. Welcome to the programme. If we
:04:57. > :05:00.first of all talk about the results making a record loss last quarter.
:05:01. > :05:06.Some questioning whether this company can survive. I think the
:05:07. > :05:11.loss was anticipated by the market in order to adjust the price of the
:05:12. > :05:19.asset of Petrobras. In that sense, this is not unexpected. Certainly,
:05:20. > :05:27.Petrobras is facing some important challenges in terms of the losses we
:05:28. > :05:33.were mentioning. Nevertheless, we still think that Petrobras will
:05:34. > :05:51.survive because it is a solvent company with large assets. In this
:05:52. > :05:57.current market, with the oil price remaining at around $40 a barrel,
:05:58. > :06:04.will those assets raise that amount of money will it be a fire sale? It
:06:05. > :06:10.is a more challenging market, but the key is to understand the timing
:06:11. > :06:14.and the need for Petrobras to sell those assets in order to face the
:06:15. > :06:19.repayments of the debt. I think the good news for the company is that it
:06:20. > :06:24.has good cash flow that will allow the company to make those payments
:06:25. > :06:31.in the short term, so they may not need to sell their assets as fast as
:06:32. > :06:36.many people believe. In any case, this kind of investment and the
:06:37. > :06:40.recovery of the price, it will probably not be such a hasty sale at
:06:41. > :06:44.a very low price, as many people believe. When it comes to the
:06:45. > :06:52.corruption scandal, he has had to put a lot of money aside as well, in
:06:53. > :06:57.terms of legal costs. Will Petrobras ever be able to restore confidence
:06:58. > :07:01.in terms of it being a legitimate company with a reputation that can
:07:02. > :07:07.be trusted? I think that is a very good question, and I think I will
:07:08. > :07:13.speak to that aspect. The first thing is that there is new
:07:14. > :07:16.management in place who are making some strides to improve the
:07:17. > :07:22.performance of Petrobras. But what this scandal has also revealed is a
:07:23. > :07:29.new government system with higher independence from government is
:07:30. > :07:31.needed. Thank you for your time today, and we will keep you
:07:32. > :07:32.up-to-date with every twist and turn.
:07:33. > :07:35.The Australian Securities Exchange opened for trading this morning
:07:36. > :07:38.Elmer Funke Kupper resigned Monday amid allegations of bribery
:07:39. > :07:43.He has also taken a leave of absence from the board of Tabcorp,
:07:44. > :07:59.Australia's biggest bookmaker, and the company under investigation.
:08:00. > :08:03.The BBC's Phil Mercer joins me now from Sydney with more on this.
:08:04. > :08:13.He's denying the allegations but says he resigned to try to deal with
:08:14. > :08:19.the problem? We have heard from him via an Australian newspaper. He says
:08:20. > :08:25.the situation he has found himself in his unfair and not right, and
:08:26. > :08:39.that he has been subjected to trial by media. He also said that this was
:08:40. > :08:46.much more important than his own personal reputation. He has denied
:08:47. > :08:51.everything, but as you can imagine this is making headlines here, given
:08:52. > :08:56.that the stock exchange is one of the most important financial
:08:57. > :09:01.institutions. What did he do that Tab Corp? This surrounds an alleged
:09:02. > :09:07.payment of a bribe about six years ago to the family of the Cambodian
:09:08. > :09:13.president by Tab Corp, which is a giant in the Australian gaming
:09:14. > :09:18.industry. At the time, he was the chief executive of Tab Corp, and he
:09:19. > :09:28.has denied any wrongdoing but safe to say he this is the centre of an
:09:29. > :09:32.international antibribery investigation.
:09:33. > :09:36.In other Apple related news, the tech giant has unveiled
:09:37. > :09:40.With a starting price of $399 The iPhone SE will be the cheapest
:09:41. > :09:45.The move is seen as a way for the company to compete with
:09:46. > :09:47.Android devices that dominate the budget and mid-range global market.
:09:48. > :09:49.Apple says the new phone will be available
:09:50. > :09:55.Starwood Hotels has backed a sweetened offer from
:09:56. > :09:58.Marriott raised its offer to $13.6bn after the Chinese insurance firm
:09:59. > :10:00.Anbang stepped in last week with a $13.2bn bid.
:10:01. > :10:02.Starwood accepted Marriott's latest offer, describing it
:10:03. > :10:06.The companies say that they expect the deal to close by the middle
:10:07. > :10:29.Personal trainers and exercise classes will be offered
:10:30. > :10:33.to thousands of overweight people in England as part of a plan to combat
:10:34. > :10:36.Up to 100,000 people identified by GPs as being
:10:37. > :10:40.at high risk will be offered a course in weight loss, physical