26/04/2016 World Business Report


26/04/2016

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Those are the latest headlines from BBC World News.

:00:00.:00:00.

Now for the latest financial news with Sally

:00:00.:00:00.

There will be lots of Tweets tonight as Twitter reveals its results.

:00:00.:00:21.

But will it be enough to revive a tumbling share price

:00:22.:00:23.

Political deadlock in Spain that's causing the economy to stall.

:00:24.:00:30.

But will a final round of talks with King Felipe resolve

:00:31.:00:33.

a four-month stalemate or is a new election imminent?

:00:34.:00:42.

Also in the programme: The South Korean economy shows signs

:00:43.:00:51.

Our team in Singapore will tell you all you need to know.

:00:52.:01:00.

Under pressure, Twitter reports its first quarter earnings after the

:01:01.:01:03.

market close in the US later and shares in the social media company

:01:04.:01:07.

Co-founder Jack Dorsey has sought to revive the company's fortunes by

:01:08.:01:11.

Michelle Fleury reports from New York.

:01:12.:01:24.

We can't stop sharing. Stop and think, how many times a day do you

:01:25.:01:33.

interact with social media? Why isn't Twitter more popular? What is

:01:34.:01:42.

the problem? I have a few different social media programmes I use. I

:01:43.:01:47.

don't need it. Do you use Twitter? I don't. It is more friendly for

:01:48.:01:53.

people who are accustomed to being on line. Brevity is key to the

:01:54.:02:01.

appeal. Unlike Facebook, posts are limited to 140 characters. The

:02:02.:02:05.

number of people using it has grown over the last four years. But as you

:02:06.:02:11.

can see, the pace of that growth has started slowing down. A far cry from

:02:12.:02:18.

when it first took flight in 2013, November. It is now 35% below the

:02:19.:02:25.

$26 a share it commanded on the first trading day. It went out to

:02:26.:02:30.

Wall Street in 2013 and said we are going to be this size. Advertisers,

:02:31.:02:35.

we will be this size, we will reach these people. It isn't just Wall

:02:36.:02:40.

Street getting it. Advertisers will say, wait a minute, if we want more

:02:41.:02:45.

people we will go to Google and Facebook, we don't need Twitter.

:02:46.:02:49.

Could be an fell safe Twitter? They will stream ten Thursday night

:02:50.:02:55.

national football games this season, expanding content beyond

:02:56.:02:58.

journalists, politicians and celebrities. The coal users are

:02:59.:03:07.

loyal and vocal. -- core. The problem for Wall Street is there

:03:08.:03:11.

aren't enough of them. With poor share prices, some investors may

:03:12.:03:19.

unfollow the blogging site if they fail to broaden their base.

:03:20.:03:26.

She will tweet about that later. So follow that.

:03:27.:03:34.

It's gone to deadlock in Spain between the political parties

:03:35.:03:36.

as they struggle to form a new government.

:03:37.:03:38.

In fact, Spain has been without a government since 21 December.

:03:39.:03:41.

And it looks increasingly unlikely any progress will be made

:03:42.:03:43.

before Mondays deadline to form a government.

:03:44.:03:45.

last-ditch talks are taking place today

:03:46.:03:47.

With me is Dr Pablo Calderon Martinez, lecturer in Spanish

:03:48.:03:55.

Good morning. Good morning. We have talked about this before, haven't

:03:56.:04:06.

we? Yeah. Since the 21st of September any progress? I don't

:04:07.:04:12.

think so. The talks today are the leadership of the political parties

:04:13.:04:16.

explaining to the king why they cannot reach agreement and why there

:04:17.:04:20.

will not be any way forward. Then everybody will give up towards the

:04:21.:04:27.

new election is. Having said that, I didn't think we were going to get

:04:28.:04:32.

this far. -- elections. Anything can happen to be new elections in June,

:04:33.:04:38.

I think. And what will voters here this time? -- happen. It is the same

:04:39.:04:44.

parties, presumably with the same policies. That will be the issue.

:04:45.:04:51.

There might be some difference but not a massive one in terms of people

:04:52.:04:55.

voting for the left and right. Things will remain the same. The

:04:56.:05:01.

rise of the anti-austerity party, PODEMOS, has been the catalyst for

:05:02.:05:09.

this deadlock. It won't do a deal with another left-wing party perhaps

:05:10.:05:13.

to get into government? They are thinking of getting into a coalition

:05:14.:05:22.

with a leader of the Communist Party in Spain. But the hope of the

:05:23.:05:28.

Socialist Party is steal votes from each other. Then

:05:29.:05:36.

one of them would emerge as the main force in Spain. In the meantime, the

:05:37.:05:42.

Spanish economy has been just carrying on with no decline or in

:05:43.:05:50.

crease. -- increase. Just floating through. The budget proposal was

:05:51.:05:54.

rejected by the European Commission. They have to make serious cuts. How

:05:55.:05:59.

well they worked that out? That is a key problem for the economy. -- how

:06:00.:06:07.

will they. Eventually they will have to deal with the issues. You need a

:06:08.:06:12.

government to do that. The issue of the deficit is quarrying and they

:06:13.:06:15.

need around 2 billion euros in cuts. That will be carried out or a

:06:16.:06:24.

policy defined only when you have a government. This will make it

:06:25.:06:30.

worse. Thank you for your time. We will probably talk about it in the

:06:31.:06:34.

future. Probably. Probably. (LAUGHING). OK. Let us move on.

:06:35.:06:38.

South Korea's economic expansion is continuing to slow.

:06:39.:06:40.

From January to March the economy grew by only 0.4% in

:06:41.:06:43.

That's slightly behind expectations and down from 0.7%.

:06:44.:07:03.

Tell us more detail. That is right. As you said, the statistics weren't

:07:04.:07:11.

great. .4 of a percent is a slow... Even the slow last growth in three

:07:12.:07:18.

quarters. -- slowest. It was due to sluggish exports. Domestic demand

:07:19.:07:26.

also sagged to a great extent due to heavy household debt. Consumers are

:07:27.:07:30.

cutting back on spending. Exports have fallen for 16 consecutive

:07:31.:07:36.

months and will decline again this month. All of this is no real

:07:37.:07:42.

surprise. We know that South Korea's greatest trading partner is

:07:43.:07:47.

China and they are slowing. There is very little South Korea can actually

:07:48.:07:50.

do of its own accord to spur the economy dramatically. Though it has

:07:51.:07:55.

been trying. The nation's Finance Minister has said South Korea has

:07:56.:08:01.

looked at lower borrowing costs and more debt if that is needed to

:08:02.:08:06.

achieve the 3.1% growth for the economy this year. Thank you very

:08:07.:08:11.

much, Sharanjit Leyl, fulfilling us in. See you soon. That is not a

:08:12.:08:15.

spaceship. That is a car. China's slowing economy is having

:08:16.:08:19.

an impact far beyond its own borders but it seems global car

:08:20.:08:21.

makers are staying upbeat, despite Beijing's annual auto show has

:08:22.:08:24.

opened its doors, with plenty of optimism that this

:08:25.:08:28.

year will be a profitable one Stephen McDonell went along

:08:29.:08:31.

for a look. No, I am absolutely convinced that

:08:32.:08:45.

China will stay the biggest single market. There is still a lot of

:08:46.:08:50.

growth potential. Of course, after a year of consolidation in 2015, we

:08:51.:08:55.

will see further growth and also that the Chinese market will turn

:08:56.:09:01.

rapidly into, let's say, a new energy vehicle strategy. There is an

:09:02.:09:07.

obligation that we would like to comply with with emissions. We need

:09:08.:09:13.

a certain kind of hybrid structure and better electric vehicles. And

:09:14.:09:20.

this is where we are investing. The chairman of Audi there.

:09:21.:09:22.

Japan's Transport Minister says he expects Mitsubishi Motors Corp to

:09:23.:09:25.

submit information related to its falsification of fuel economy

:09:26.:09:27.

data on Tuesday, within the deadline set by the ministry.

:09:28.:09:30.

Transport Minister Keiichi Ishii also said the ministry has set up a

:09:31.:09:33.

task force to examine fuel economy data submitted by automakers.

:09:34.:09:46.

Saudi Arabia has laid out plans to diversify its economy moving away

:09:47.:09:49.

80% of its revenues come from oil but it's been hit

:09:50.:09:53.

Under 2030, shares in the state-owned Aramco Oil

:09:54.:09:57.

company will be sold to create a sovereign wealth fund.

:09:58.:09:59.

These markets are trading a little. Two key central bank meetings this

:10:00.:10:07.

week. People are seeing risky assets. This is how it ended on Wall

:10:08.:10:13.

Street. Fairly flat, to be honest. Idle see you soon as we look through

:10:14.:10:14.

the day's newspapers. -- I will see. Junior doctors go on strike

:10:15.:10:22.

in England this morning and, for the first time,

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will not provide emergency care.

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