:00:00. > :00:00.Those are the latest headlines from BBC World News.
:00:00. > :00:00.Now for the latest financial news with Sally
:00:00. > :00:21.The chips are down - Intel announces massive layoffs
:00:22. > :00:25.as the declining market for desktop PCs takes its toll.
:00:26. > :00:28.Touchdown - President Obama will soon arrive in Saudi Arabia, where
:00:29. > :00:39.trade relations have been tested thanks to a much lower oil price.
:00:40. > :00:47.Japan's exports fall for the sixth month in a row.
:00:48. > :00:56.It is not the kind of track record you want when you are running an
:00:57. > :00:58.economy. We start with the US tech giant
:00:59. > :01:01.Intel, that is taking drastic action to boost its bottom line as it
:01:02. > :01:04.grapples with the swift decline The maker
:01:05. > :01:07.of computer chips has announced it's shedding 12,000 jobs worldwide -
:01:08. > :01:13.that's 11% of its workforce. This will cost Intel $1.2 billion
:01:14. > :01:18.dollars in restructuring costs, and the job cuts will come into
:01:19. > :01:22.effect over the next 12 months. Michelle Fleury has the latest
:01:23. > :01:40.from New York. The CEO admitted Intel missed a move
:01:41. > :01:43.to mobile wallet was dominating the business of making chips for
:01:44. > :01:46.personal computers. More of our technology was moving onto mobile
:01:47. > :01:50.phones and tablets. Intel was left playing catch up. In the
:01:51. > :01:55.fastest-growing and most lucrative part of the chip making business.
:01:56. > :01:59.And now it faces the daunting prospect of the next stage of the IT
:02:00. > :02:05.revolution getting away from it. If it doesn't act fast. An increasing
:02:06. > :02:08.number of the electronic devices in our homes and offices are becoming
:02:09. > :02:14.Internet devices, this so-called Internet of things. And each of them
:02:15. > :02:17.requires chips. It is already a sizeable market, but it is expected
:02:18. > :02:22.to get much bigger in the near future. That is why even though
:02:23. > :02:26.Intel is still a huge force in technology, it needs to restructure
:02:27. > :02:29.and quickly to try to dominate the market for Internet devices and the
:02:30. > :02:37.cloud just as it dominated the PC market. If it doesn't, many more
:02:38. > :02:41.jobs might be lost, then the 12,000 it shed. That is Michelle in New
:02:42. > :02:43.York for us. President Obama lands in
:02:44. > :02:46.Saudi Arabia in a few hours' time - and it will mark his first visit to
:02:47. > :02:49.the country since King Abdullah's As well as security issues, the two
:02:50. > :02:53.leaders will also discuss their trading relationship, including
:02:54. > :02:58.the key sectors of oil and defence. The US imports around 11% of its
:02:59. > :03:01.oil from Saudi Arabia, making it America's second biggest external
:03:02. > :03:05.source of oil after Canada. Saudi Arabia, meanwhile,
:03:06. > :03:08.is the biggest importer of US arms, and has spent $95 billion
:03:09. > :03:11.on American hardware However,
:03:12. > :03:16.that close economic relationship has Increasing supplies of US base shale
:03:17. > :03:24.oil have decreased America's That's been compounded by the Iran
:03:25. > :03:31.nuclear deal, which helps to strengthen the economy of Saudi
:03:32. > :03:46.Arabia's key rival in the region. The US was central in brokering that
:03:47. > :03:49.deal with Iran. investment manager at
:03:50. > :03:58.Seven Investment Management. Good morning. It has been quite some
:03:59. > :04:04.time since President Obama has been to Saudi Arabia, and since his last
:04:05. > :04:09.visit, a lot has changed, many because of the fall in the price of
:04:10. > :04:15.oil. Last time he was there, oil had fallen from about $110 down to $60,
:04:16. > :04:21.and everyone thought this is it, and then the oil price fell again
:04:22. > :04:24.hitting $25 last summer. That is really to find the relationship
:04:25. > :04:30.between the US and Saudi Arabia, the reliance of you the US on site well.
:04:31. > :04:35.That is not there any more. The number is declining. The more the US
:04:36. > :04:39.comes out its own shale oil, the less it needs the Middle East. From
:04:40. > :04:44.President Obama's point of view, this relationship is not as
:04:45. > :04:47.important, but from Saudi Arabia's interview, their revenues are
:04:48. > :04:51.falling significantly, and they are having to borrow money and will
:04:52. > :04:54.issue bonds on international markets. From their point of view,
:04:55. > :05:02.how important is this relationship now? They have played a strong hand
:05:03. > :05:07.for the past few decades. America has needed their oil, so they have
:05:08. > :05:10.had a great ally in the region. Now the US is brokering deals with Iran,
:05:11. > :05:13.they key rival, and they are struggling to mystically to work out
:05:14. > :05:19.how to change their economy. They rely on their oil. They have
:05:20. > :05:23.borrowed $10 million to get them through some immediate pain crisis.
:05:24. > :05:31.They are about issuing bonds. They are struggling to deal with the New
:05:32. > :05:40.World. The other issue is Saudi Arabia has been so determined to not
:05:41. > :05:44.reduce production or cat production or freeze production partly because
:05:45. > :05:49.it wants to stamp out the shell produces in the United States. It is
:05:50. > :05:55.more expensive for the American oil producers to get the oil out of the
:05:56. > :05:58.ground -- shale producers. I imagine both leaders will be thinking about
:05:59. > :06:03.that as they negotiate. You can't really do anything. They are private
:06:04. > :06:09.companies in theory. Nobody seems to be backing down. It is expensive,
:06:10. > :06:13.but no one is really stopping. They might stop drilling new holes and
:06:14. > :06:16.exploring, but Saudi Arabia is not stopping and Iran is coming online.
:06:17. > :06:25.There are barrels coming from Libya. They all war is continuing. Thank
:06:26. > :06:28.you. -- the oil war. We'll keep you across as this story developments.
:06:29. > :06:30.More bad news from Asia's second-largest economy.
:06:31. > :06:34.Exports in Japan fell 6.8% in March from a year earlier - that's six
:06:35. > :06:37.Once again, a slowing Chinese economy is blamed
:06:38. > :06:47.Rico Hizon is in our Asia Business Hub in Singapore.
:06:48. > :06:58.Sally! Good morning. All good afternoon for you. Tell us more
:06:59. > :07:02.about Japan. Apart from China, there is also soft demand for Japanese
:07:03. > :07:08.electronic components, and the strong yen. At the start of the year
:07:09. > :07:14.it was at 120, and is now at 108 against the greenback. They want to
:07:15. > :07:18.add more pressure on the government and the bank of Japan to do more to
:07:19. > :07:22.sting allegro. The recent earthquakes have struck the southern
:07:23. > :07:28.benefaction hub and could also hamper the supply chain. -- to do
:07:29. > :07:34.more to stimulate growth. It is affecting output of cars and other
:07:35. > :07:39.goods, which is an unwelcome development for a flagging economy.
:07:40. > :07:48.Before you go, Malaysia Airlines need a new boss, I understand? It
:07:49. > :07:57.seems like the former boss will be stepping down this coming
:07:58. > :08:03.September. He has brought in -- he was brought in to restructure, but
:08:04. > :08:08.he is leaving within one year. He says he is leaving for personal
:08:09. > :08:12.reasons. The airline cut six dozen workers and abandoned unprofitable
:08:13. > :08:17.routs. They signed new partnership agreements. But in the month of
:08:18. > :08:20.fabric, they finally made money. They made a profit and did him. --
:08:21. > :08:24.under him. Thank you again. Tata Steel's Port Talbot chief
:08:25. > :08:27.Stuart Wilkie is to launch a management buyout of
:08:28. > :08:30.the company's operations in the UK. Tata is selling
:08:31. > :08:32.its entire loss-making UK business and has asked for expressions
:08:33. > :08:35.of interest as part Mr Wilkie was one of the main people
:08:36. > :08:42.behind a survival plan that was rejected by the board of Tata, and
:08:43. > :08:48.the UK business was put up for sale. Yahoo has reported a $99 million
:08:49. > :08:51.quarterly loss, compared to a $21.2 million profit for
:08:52. > :08:57.the period last year, as it reviews The internet firm also saw revenues
:08:58. > :09:16.fall 11.6% in the January-March Let's have a look at the markets.
:09:17. > :09:22.Very mixed picture today. A much weaker dollar at the moment, which
:09:23. > :09:26.is not helping Japan. We do have audited company is doing much
:09:27. > :09:29.better. Brent crude over $43 a barrel. That is all from me for now.
:09:30. > :09:40.See using. -- see you soon. Primary school children who go to
:09:41. > :09:43.after school clubs or take part in sports lessons get better grades
:09:44. > :09:46.than their peers. Research carried out
:09:47. > :09:49.by the Institute of Education