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Now for the latest financial news, Aaron Heslehurst and | :00:00. | :00:00. | |
Welcome to World Business Report. I'm Aaron Heslehurst. | :00:00. | :00:22. | |
Facebook keeps on growing, and so do its profits. | :00:23. | :00:25. | |
Plus, when $700 billion a year just isn't enough, | :00:26. | :00:29. | |
but the Bank of Japan resists enormous pressure to boost its vast | :00:30. | :00:32. | |
Welcome to World Business Report. I'm Aaron Heslehurst. | :00:33. | :00:52. | |
Nine minutes, ten seconds, that is the deal! I will give you an | :00:53. | :01:03. | |
exciting and fascinating look at the business world. | :01:04. | :01:04. | |
Also coming up, VW faces investors and the media | :01:05. | :01:07. | |
later as it tries to move on from the emissions cheating scandal. | :01:08. | :01:11. | |
We start in Silicon Valley, where it's been | :01:12. | :01:13. | |
a challenging week for tech giants including Apple and Twitter. | :01:14. | :01:16. | |
The world's biggest social network continues to attract new friends by | :01:17. | :01:22. | |
the million - and more importantly - to convert them into profit. | :01:23. | :01:27. | |
Let's show you the numbers Facebook saw revenue surge more than 50% | :01:28. | :01:31. | |
in the first three months of the year to over $5.3 billion - better | :01:32. | :01:38. | |
than Wall Street was expecting that's largely down to booming sales | :01:39. | :01:45. | |
With smaller screens smartphones have been a platform many other | :01:46. | :01:57. | |
Not so Facebook - 82% of Facebook's ad revenue now comes | :01:58. | :02:04. | |
The social network has continued to grow and grow as of the end of March | :02:05. | :02:12. | |
1.65 billion people were logging on at least once a month. | :02:13. | :02:18. | |
That's 200 million people more than this time last year. | :02:19. | :02:23. | |
Shares have jumped again in afterhours trade. | :02:24. | :02:27. | |
If you look at the past 3 years you can see the value has steadily | :02:28. | :02:32. | |
climbed from just over $20 to now well over $100 a share. | :02:33. | :02:40. | |
Our North America Business Correspondent Dave Lee has been | :02:41. | :02:42. | |
following the story at their headquarters in | :02:43. | :02:44. | |
Right now in silicon valley you can rely on two things. Blustery wind | :02:45. | :03:00. | |
conditions and Facebook making lots and lots of money. It had exceeded | :03:01. | :03:06. | |
Wall Street already skyhigh expectations and it is making more | :03:07. | :03:09. | |
money from advertising particularly with users and mobile devices and | :03:10. | :03:20. | |
watching video. Excitement about the future potential of the company, | :03:21. | :03:27. | |
investing heavily on bringing innovation. Twitter has continued to | :03:28. | :03:33. | |
decline and Apple has posted its worst result in over the decade. | :03:34. | :03:38. | |
To Japan now where the central bank has decided not to expand its | :03:39. | :03:41. | |
massive economic stimulus programme, despite enormous pressure. | :03:42. | :03:48. | |
They are trying to banish deflation - or falling prices - | :03:49. | :03:51. | |
In the last few hours official data has shown consumer prices fell | :03:52. | :03:58. | |
Japan's policy makers are fast running out of ammunition. | :03:59. | :04:08. | |
They are already pumping money into the economy at a rate | :04:09. | :04:13. | |
of 80 trillion yen a year - that's more than $700 billion. | :04:14. | :04:21. | |
And in January they stunned markets by | :04:22. | :04:24. | |
introducing a negative interest rate - charging banks 0.1% to park money | :04:25. | :04:30. | |
with the Bank of Japan - in the hope it will push them to lend it out. | :04:31. | :04:41. | |
Seijiro Takeshita is Professor of Management and Information | :04:42. | :04:44. | |
at the University of Shizuoka, He joins us via Skype. | :04:45. | :04:50. | |
My friend, good to see you. What the heck happened! What are you doing | :04:51. | :05:02. | |
over there? The entire world was expecting boost in the arm to the | :05:03. | :05:10. | |
economy? 65% of participants were expecting some kind of action but | :05:11. | :05:16. | |
for two reasons, they have seen of the saturating effect and secondly, | :05:17. | :05:23. | |
a lot of criticism about the lack of stability. We need stability in the | :05:24. | :05:31. | |
system and the ball is actually in the court of the action. I am just | :05:32. | :05:38. | |
wondering... Some may suggest all that money is not working, we saw | :05:39. | :05:45. | |
the latest numbers, but for the Japanese economy, look, we know it | :05:46. | :05:53. | |
has been in the dog house for far too long, instead of printing and | :05:54. | :05:58. | |
spending all that money, in lay terms, it needs an economic change | :05:59. | :06:04. | |
to the structure? Definitely. Structural transitions is obviously | :06:05. | :06:14. | |
needed in Japan. You can see the second set clearly depicts those | :06:15. | :06:20. | |
areas. But the market is expecting answers, 65% of participants | :06:21. | :06:27. | |
expecting something, but the results of these structure changes take | :06:28. | :06:34. | |
years. There is big gap between the two and that is why we are seeing | :06:35. | :06:39. | |
our lack of patience and it is exacerbating the situation. Short | :06:40. | :06:44. | |
and sweet as always but we appreciate your time. | :06:45. | :06:47. | |
To Germany now where the car giant Volkswagen faces | :06:48. | :06:50. | |
investors and the media later as it presents its annual results. | :06:51. | :06:54. | |
VW has already revealed it made the biggest loss | :06:55. | :06:58. | |
in its history last year after setting aside more than 16 billion | :06:59. | :07:01. | |
euros towards costs arising from its cheating of diesel emissions tests. | :07:02. | :07:05. | |
Investors have seen their dividend cut for the first time in six years | :07:06. | :07:13. | |
- they will be hoping for more clarity on the rising bill from the | :07:14. | :07:18. | |
VW insists it is on the road to recovery. It now believes it knows | :07:19. | :07:36. | |
how much of the scandal will cost and can start looking to the future. | :07:37. | :07:42. | |
Set aside 60.2 billion euros to cover buying back up to 500,000 cars | :07:43. | :07:48. | |
in the US, modifying millions of others around the world, paying | :07:49. | :07:52. | |
fines and settling legal claims. It made an operating loss in 2015 of | :07:53. | :07:59. | |
more than 4 billion euros. Senior executives have seen their pay cut | :08:00. | :08:05. | |
back. Ordinary members of the board will use more than 2 million euros | :08:06. | :08:10. | |
apiece compared to the year before. But we did not know he was | :08:11. | :08:18. | |
ultimately responsible. VW has refused to publish findings of an | :08:19. | :08:20. | |
internal investigation saying it would undermine negotiations with US | :08:21. | :08:25. | |
authorities. Investors are keen to know how much progress has been made | :08:26. | :08:30. | |
in finalising those talks. Meanwhile, they wanted to consumers | :08:31. | :08:36. | |
attention away from its past wrongdoing and into its latest | :08:37. | :08:38. | |
products. Let's return to Asia where Samsung | :08:39. | :08:39. | |
Electronics says its first-quarter operating profit was up 12 % | :08:40. | :08:45. | |
in the three months to March - thanks to strong early sales of its | :08:46. | :08:48. | |
new flagship Galaxy S7 smartphones. Good to see it as always. Tell us | :08:49. | :09:04. | |
the story? The Galaxy phone that you mention and also the profit is very | :09:05. | :09:07. | |
much aligned with large Samsung had forecast. The huge improvement over | :09:08. | :09:13. | |
the two years of shrinking profits and losses and adding to hopes this | :09:14. | :09:18. | |
will be the first annual profit in three years. You saw the smart phone | :09:19. | :09:27. | |
profit jumping to an almost two-year high. Samsung saying it is expecting | :09:28. | :09:33. | |
further growth for the Galaxy at seven device as well for its move to | :09:34. | :09:38. | |
lower tier product. The cheaper phones at our key because that is | :09:39. | :09:44. | |
where Samsung are battering against much cheaper phones made in China. | :09:45. | :09:52. | |
Some sang makes a lot of other things, chips or example and profits | :09:53. | :09:57. | |
had fallen 6% because they were undercut by price decline. Slower | :09:58. | :10:05. | |
demand for personal computers. Generally brighter outlook for the | :10:06. | :10:10. | |
firm stop thank you. Talk to you soon. Quick flash of the markets. | :10:11. | :10:19. | |
Because of that non- move in Japan, we see the yen is up but the BK is | :10:20. | :10:28. | |
down. AM running out of time but I will be back to have looked at some | :10:29. | :10:32. | |
of the papers. See you soon. | :10:33. | :10:35. |