Browse content similar to 19/04/2016. Check below for episodes and series from the same categories and more!
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The bidders are gathering, but who will walk away with the price? | :00:00. | :00:18. | |
The bidders are gathering, but who will walk away with the prize? | :00:19. | :00:22. | |
And America's big investment banks are revealing they're experiencing | :00:23. | :00:25. | |
a tough time so what will Goldman Sachs say later, we get | :00:26. | :00:29. | |
Global miner Rio Tinto cuts its iron ore | :00:30. | :00:45. | |
But it has done rather well this year. | :00:46. | :00:55. | |
Yahoo reports its latest results but investors aren't exactly | :00:56. | :00:59. | |
What they want to know is what's happening to the company, | :01:00. | :01:07. | |
whether it'll sell its core business and to whom. | :01:08. | :01:09. | |
Despite its huge losses, the firm remains | :01:10. | :01:11. | |
an attractive target thanks to its stake in China's e-commerce giant | :01:12. | :01:13. | |
I've used Yahoo since 2001, it's fine, I've had no problems with it. | :01:14. | :01:30. | |
I think I just use it because it's easier and familiar. I would be sad | :01:31. | :01:34. | |
if Yahoo wasn't around, it's like an old friend, you know? But the | :01:35. | :01:39. | |
company is struggling financially. Take a look at its share price, | :01:40. | :01:43. | |
investors really haven't been happy with the company performance until | :01:44. | :01:47. | |
in February Yahoo announced it is open to selling its core business. | :01:48. | :01:52. | |
Since then its share price has risen by some 30%. Yahoo management is | :01:53. | :01:57. | |
feeling pressure from their shareholders to pursue a possible | :01:58. | :02:01. | |
course of sale. This current management team has had three years | :02:02. | :02:08. | |
, spent billions of dollars in acquisitions and revenue will | :02:09. | :02:11. | |
decline by double digits in this quarter. So who is interested in | :02:12. | :02:16. | |
buying Yahoo? There are reportedly dozens of companies, including US | :02:17. | :02:20. | |
telecom giant horizon. Its bigger rival Google. And the owner of the | :02:21. | :02:27. | |
British newspaper Daily Mail. A big part of what makes Yahoo appealing | :02:28. | :02:32. | |
to buyers is its stake in China's e-commerce giant Alibaba. Its stake | :02:33. | :02:38. | |
is worth $30 billion, much more than Yahoo's core business. But the | :02:39. | :02:42. | |
popularity of its search engine is also attractive to those who think | :02:43. | :02:46. | |
they can do a better job of making money from the Internet business. | :02:47. | :02:50. | |
We will keep you up to date today as it progresses with Yahoo's results | :02:51. | :02:59. | |
and any confirmation of bits coming in, who's interested etc. | :03:00. | :03:01. | |
Today we'll hear more about the health | :03:02. | :03:04. | |
of the US banking sector as another of the giants Goldman Sachs | :03:05. | :03:07. | |
tells investors how the first few months of the year have been. | :03:08. | :03:10. | |
Yesterday Morgan Stanley revealed its profits more than halved | :03:11. | :03:12. | |
in the first three months of the year as a result of what it called | :03:13. | :03:16. | |
The first quarter is usually the busiest time of the year | :03:17. | :03:20. | |
for Wall Street, as money managers return from holidays eager to put | :03:21. | :03:22. | |
But at the start of this year the crazy volatility | :03:23. | :03:26. | |
experienced on global markets kept them on the sidelines. | :03:27. | :03:29. | |
Plus low commodity prices, notably oil, has also hit | :03:30. | :03:35. | |
With me is Chris Wheeler, banks analyst at Atlantic Equities. | :03:36. | :03:43. | |
He can give us a perspective on this. Lovely to see you. Morning. | :03:44. | :03:51. | |
Goldman, what's it going to say? Earnings down about 60%, | :03:52. | :03:57. | |
year-on-year, not too dissimilar to Morgan Stanley -- 16%. Issues of | :03:58. | :04:03. | |
equity and debt, normally a big part of the early part of the year, hit | :04:04. | :04:07. | |
by the volatility. They have big private equity stakes | :04:08. | :04:10. | |
which they have to mark down because a lot were based in Asia, and Asian | :04:11. | :04:16. | |
markets were particularly weak. All in all a very tough quarter. | :04:17. | :04:19. | |
Interestingly all the banks, Goldman is one of the last big ones to | :04:20. | :04:24. | |
report, they've all come out with similar stories but they managed | :04:25. | :04:29. | |
expectations so well that they beat expectations with shares going up. | :04:30. | :04:33. | |
Explain that for us, because the results aren't good at all? The | :04:34. | :04:36. | |
banks have been talking this down aggressively, but to be fair they | :04:37. | :04:40. | |
have to stop talking to us in early March because they go into a closed | :04:41. | :04:44. | |
period. Having said that, March was a better month. January and February | :04:45. | :04:49. | |
were very volatile. But they have a tactic. If you look at the overall | :04:50. | :04:53. | |
performance of the bank stocks in the first quarter, most are still | :04:54. | :04:57. | |
down substantially. What now? Because they've made a lot less at | :04:58. | :05:01. | |
their busiest time of year, are they going to have to cut back and lay | :05:02. | :05:04. | |
people off those yellow looking at all the large banks, they have big | :05:05. | :05:11. | |
retail banking asset management businesses. They are pumping along | :05:12. | :05:16. | |
well. For the investment banking arms of those businesses, like | :05:17. | :05:19. | |
Morgan Stanley and Goldman Sachs, who are focused in that area, it is | :05:20. | :05:23. | |
tough because they won't make up the normal first quarter if you want | :05:24. | :05:29. | |
surge of activity unless we have something extraordinary happened in | :05:30. | :05:32. | |
the second half of the year. It's not just the US banks, it's all of | :05:33. | :05:37. | |
them. We had an announcement from new mirror closing down its... Some | :05:38. | :05:43. | |
drastic action being taken. One of my clients asked if we would see | :05:44. | :05:46. | |
more consolidation in the investment banking space, but people are | :05:47. | :05:52. | |
actually withdrawing. Since the crisis the amount of capital you now | :05:53. | :05:55. | |
need quite rightly has been pushed up, making a lot of areas of the | :05:56. | :06:00. | |
business a lot less profitable than before. People are taking some | :06:01. | :06:03. | |
pretty tough decisions. We appreciate your time, a busy time of | :06:04. | :06:07. | |
year for you so we will let you go. The world's second largest iron ore | :06:08. | :06:10. | |
producer, Rio Tinto, has cut its But it has seen an 11% rise | :06:11. | :06:17. | |
in shipments so far this year. So how is Rio doing amidst | :06:18. | :06:21. | |
the commodity slump? Rico Hizon is in our | :06:22. | :06:24. | |
Asia Business Hub in Singapore. Lovely to see you, Rico. Tell us | :06:25. | :06:39. | |
more about Rio's situation at the moment. If you look at the situation | :06:40. | :06:43. | |
right now in the iron ore business, it goes to show the big players such | :06:44. | :06:49. | |
as Rio Tinto and BHP Billiton are indeed very resilient given the | :06:50. | :06:54. | |
challenges of the slowdown in the Chinese economy. The world's number | :06:55. | :06:58. | |
two iron or producer confirming it was on track for a record 315 | :06:59. | :07:06. | |
million tons in 2016 as it runs its mines at full tilt despite this | :07:07. | :07:10. | |
global supply glut due to slower Chinese industrial growth. The | :07:11. | :07:15. | |
production increases show the outgoing Chief Executive, they are | :07:16. | :07:23. | |
determined to deny calls for supply restraints until markets are in | :07:24. | :07:29. | |
better balance. He defended running at maximum speed as the steel mills | :07:30. | :07:36. | |
demand slowed, saying contain one would fill the void for | :07:37. | :07:45. | |
competitors. They are continuing their goal despite the oversupply | :07:46. | :07:49. | |
issue. Before you go, what did the central bank decide to do in South | :07:50. | :07:54. | |
Korea? They did nothing. They decided to keep interest rates | :07:55. | :07:59. | |
untouched at 1.5%. The central bank governor stressed the current state | :08:00. | :08:05. | |
of the current rate levels support economic growth, but a lower growth | :08:06. | :08:09. | |
forecast for this year kept expectations of a rate cut alive and | :08:10. | :08:14. | |
the decision to leave rates on hold follows seven successive cuts. You | :08:15. | :08:17. | |
had the fallout from a parliamentary election earlier this month and the | :08:18. | :08:20. | |
effects of measures in other economies are factors towards this | :08:21. | :08:26. | |
decision to keep rates on hold. Thank you, Rico, good to see you. | :08:27. | :08:28. | |
Argentina's return to the... with a sale of sovereign bonds | :08:29. | :08:33. | |
after 15 years of exile The country is raising up to 15 | :08:34. | :08:37. | |
billion dollars and demand for the bond issue was strong and attracted | :08:38. | :08:42. | |
orders worth $65 billion. Some of the money will go to | :08:43. | :08:45. | |
repaying bondholders who for years opposed the terms | :08:46. | :08:48. | |
of Argentina's debt restructuring Netflix shares fell more than 9% in | :08:49. | :08:50. | |
after-hours trading on Wall Street after the video streaming company | :08:51. | :08:55. | |
predicted slower subscriber growth. The company said it expected to add | :08:56. | :09:00. | |
about 500,000 new customers in the US and 2 million | :09:01. | :09:03. | |
internationally by the end of June. Analysts were expecting | :09:04. | :09:06. | |
the company to add more. At the start of the year Netflix | :09:07. | :09:08. | |
started a global push A quick look at the markets, look at | :09:09. | :09:25. | |
Japan, up over 3%, yesterday it was down over 3%, it's becoming a daily | :09:26. | :09:29. | |
event. The price of oil is down a bit but higher than it was this time | :09:30. | :09:35. | |
yesterday. Loss of earnings to look out for today, we've mention Goldman | :09:36. | :09:39. | |
Sachs and Yahoo, we've also got Johnson and Johnson, so a really | :09:40. | :09:43. | |
busy time of year. Looking at the US, a really good end to the day on | :09:44. | :09:48. | |
Wall Street. We will discuss some business news again when we look at | :09:49. | :09:51. | |
the papers in a few minutes. See you then. | :09:52. | :09:53. |