22/03/2016 World Business Report

Those are the latest headlines from BBC World News.

Now for the latest financial news with

Do millions of iPhones have a security flaw that

The FBI thinks so and they plan on using it to try and crack

More bad news for Petrobras - The Brazilian oil giant made a

record loss of $10.2 billion in the final three months of last year.

Is it now too late to turn the company around?

We're also live in Sydney to get the latest on Australia's stock

exchange boss who's resigned amid an ongoing bribery probe.

Federal prosecutors in the United States say the FBI may have found

a way to unlock the mobile phone of a gunman involved in the killing

of 14 people in the city of San Bernardino, California, in December.

The revelation could have security implications for millions

Apple has until now been contesting a court

order to help FBI investigators access data on the phone saying it

would have implications far beyond the legal case.

Bruce Schneier is a computer security expert.

Speaking a little earlier he said it's still unclear if the FBI

will tell Apple how they plan on cracking the iPhone's encryption.

This is not a good week for Apple and the iPhone. There has been

another issue at Johns Hopkins University, allowing people to get

into e-mails. The question is whether Apple should try to make

their devices secure. They will fix vulnerabilities as they find them

but nobody believes these are unbreakable. They asked for a

two-week delay while they figure it out, and it might work or it might

not. If it does work, what does the FBI do? They keep everyone's phones

insecure or do they get Apple to try to fix it. This was always about the

legal precedent, not about the details of the case. The case was

chosen because it sounded good on television. This shows us that the

FBI lacks expertise. What the FBI needs is expertise in computer

security, not backdoors. Edward Snowden is right, we all knew there

were other ways in, but the FBI lacked the expertise to exploit

them, so they went after Apple. Brazilian commodities giant

Petrobras has released The company made a record loss

of $10.2 billion If ever there was a case

for linking the fate of a company and a country together

it would be Petrobras and Brazil. A decade ago both were seen as the

darlings of the developing world. An economy and company both getting

rich off the boom in commodity prices, since then

things have gone downhill fast. Petrobras' investments alone

represent 2% of Brazil's gross national product,

and its downturn has harmed a national economy struggling as

a result of low commodity prices. While the price of raw materials has

fallen, the company has also been bogged down in allegations that

large oil contracts were awarded by executives and politicians,

in exchange for bribes. The Petrobras inquiry has led to

proceedings against dozens of business executives

and ruling party figures, with some already being sentenced to prison

time for their part in the scandal. Even Brazil's former president

Luiz Inacio Lula da Silva is being investigated over allegations

of money laundering linked to An attempt by current

President Dilma Rousseff last week to make him part of her current

government was met by mass protests The appointment is currently

being blocked by a senior judge. So where does this leave

the company, well the corruption scandal has already cost Petrobras

$17 billion due to losses As for the Brazilian economy,

it's in a deep recession, Joining me now is Benat

Bilbao-Osorio, Regional Director for Latin America and the Caribbean

at the Economist Intelligence Unit. Welcome to the programme. If we

first of all talk about the results making a record loss last quarter.

Some questioning whether this company can survive. I think the

loss was anticipated by the market in order to adjust the price of the

asset of Petrobras. In that sense, this is not unexpected. Certainly,

Petrobras is facing some important challenges in terms of the losses we

were mentioning. Nevertheless, we still think that Petrobras will

survive because it is a solvent company with large assets. In this

current market, with the oil price remaining at around $40 a barrel,

will those assets raise that amount of money will it be a fire sale? It

is a more challenging market, but the key is to understand the timing

and the need for Petrobras to sell those assets in order to face the

repayments of the debt. I think the good news for the company is that it

has good cash flow that will allow the company to make those payments

in the short term, so they may not need to sell their assets as fast as

many people believe. In any case, this kind of investment and the

recovery of the price, it will probably not be such a hasty sale at

a very low price, as many people believe. When it comes to the

corruption scandal, he has had to put a lot of money aside as well, in

terms of legal costs. Will Petrobras ever be able to restore confidence

in terms of it being a legitimate company with a reputation that can

be trusted? I think that is a very good question, and I think I will

speak to that aspect. The first thing is that there is new

management in place who are making some strides to improve the

performance of Petrobras. But what this scandal has also revealed is a

new government system with higher independence from government is

needed. Thank you for your time today, and we will keep you

up-to-date with every twist and turn.

The Australian Securities Exchange opened for trading this morning

Elmer Funke Kupper resigned Monday amid allegations of bribery

He has also taken a leave of absence from the board of Tabcorp,

Australia's biggest bookmaker, and the company under investigation.

The BBC's Phil Mercer joins me now from Sydney with more on this.

He's denying the allegations but says he resigned to try to deal with

the problem? We have heard from him via an Australian newspaper. He says

the situation he has found himself in his unfair and not right, and

that he has been subjected to trial by media. He also said that this was

much more important than his own personal reputation. He has denied

everything, but as you can imagine this is making headlines here, given

that the stock exchange is one of the most important financial

institutions. What did he do that Tab Corp? This surrounds an alleged

payment of a bribe about six years ago to the family of the Cambodian

president by Tab Corp, which is a giant in the Australian gaming

industry. At the time, he was the chief executive of Tab Corp, and he

has denied any wrongdoing but safe to say he this is the centre of an

international antibribery investigation.

In other Apple related news, the tech giant has unveiled

With a starting price of $399 The iPhone SE will be the cheapest

The move is seen as a way for the company to compete with

Android devices that dominate the budget and mid-range global market.

Apple says the new phone will be available

Starwood Hotels has backed a sweetened offer from

Marriott raised its offer to $13.6bn after the Chinese insurance firm

Anbang stepped in last week with a $13.2bn bid.

Starwood accepted Marriott's latest offer, describing it

The companies say that they expect the deal to close by the middle

Personal trainers and exercise classes will be offered

to thousands of overweight people in England as part of a plan to combat

Up to 100,000 people identified by GPs as being

at high risk will be offered a course in weight loss, physical