:00:00. > :00:21.Losses mounting at Japan's biggest conglomerates
:00:22. > :00:24.Mitsui and Mitsubishi who are the latest victims of the fall
:00:25. > :00:31.Fancy shopping till you drop, you'd better head to asia.
:00:32. > :00:34.Fancy shopping till you drop, you'd better head to Asia.
:00:35. > :00:36.The region that has more luxury shopping than anywhere else
:00:37. > :00:44.Also in the programme:
:00:45. > :00:47.What tech is going to shake up the way we do things next?
:00:48. > :00:49.Michelle Fleury has been finding out.
:00:50. > :00:51.Things have been going haywire for some of the titans of corporate
:00:52. > :00:55.Two of the oldest and biggest company's in
:00:56. > :01:03.the country, Mitsui and Mitsubishi, are expected to post their first
:01:04. > :01:07.The two companies trade in a wide range of products and materials,
:01:08. > :01:09.including energy, machinery, chemicals, food and logistics.
:01:10. > :01:11.They blame China's economic slowdown and the subsequent fall
:01:12. > :01:13.in demand for raw materials for the losses.
:01:14. > :01:17.The price of copper has dropped 20% since mid-2014.
:01:18. > :01:20.It's a commodity both Mitsui and Mitsubishi have invested heavily
:01:21. > :01:28.in, especially in copper mining operations in Chile.
:01:29. > :01:31.Similarly, the sharp fall in the oil price has also hit both
:01:32. > :01:37.They have invested billions in shale oil exploration in
:01:38. > :01:45.Saijiro Takeshi is professor of management and information
:01:46. > :01:59.Nice to see you, Saijiro. We have yet to get the numbers from these
:02:00. > :02:05.two companies but they won't be good news, will they? Unfortunately not.
:02:06. > :02:11.It's also a transitionary state for these trading firms, this is like
:02:12. > :02:14.the Japanese companies that used to trade in conglomerate groupings, but
:02:15. > :02:19.these manufacturers can now trade on their own. For that reason these
:02:20. > :02:23.trading houses had to find a new role within their group. Obviously
:02:24. > :02:28.they looked at energy and the fact is they overdid it, or I should say
:02:29. > :02:33.the diversification with other businesses has not boomed as much as
:02:34. > :02:36.they hoped yet. Where do these companies go from here? Are they of
:02:37. > :02:43.such scale that they can ride these storms? They have gone through a lot
:02:44. > :02:49.and they are extremely strong. They have a strong network and they have
:02:50. > :02:54.a good value chain, there are lots of opportunities. Mitsubishi have to
:02:55. > :02:58.focus on their science side and Mitsui in their infrastructure
:02:59. > :03:04.side, add 1.80% of profit from Mitsui came from energy and 70% from
:03:05. > :03:14.Mitsubishi. They are definitely tipping the scale on the energy
:03:15. > :03:23.side. We are expecting they will come back strongly. What impact will
:03:24. > :03:30.the news today have on sentiment in Japan, where it is barely bruised
:03:31. > :03:37.right now? /Fairly. It means times are changing. -- fairly. Even these
:03:38. > :03:40.giant conglomerates having such a loss tells you the external factors
:03:41. > :03:48.could sway their profitability or their plans. They need to be a lot
:03:49. > :03:53.more flexible and more diverse with their business structure, that's
:03:54. > :03:57.what it is telling us. Times are changing very quickly and that's
:03:58. > :04:02.what these two losses mean too many of us here. Saijiro, good to see you
:04:03. > :04:04.and thank you for your analysis. When we get the numbers for both of
:04:05. > :04:06.those companies we will update you. The Greek Government says it's
:04:07. > :04:09.hopeful it will receive the next instalment
:04:10. > :04:11.of its bailout loan from eurozone However, the Eurogroup still wants
:04:12. > :04:17.Greece to create a privatisation It also says it will offer Greece
:04:18. > :04:21.a form of debt relief from 2018 Tata Steel says seven potential
:04:22. > :04:31.buyers are interested The firm,
:04:32. > :04:36.which put the assets up for sale in March, potentially jeopardising
:04:37. > :04:38.jobs, says it's clarifying outstanding
:04:39. > :04:42.points with the interested parties. Tata and others within the European
:04:43. > :04:45.industry blames cheap Chinese imports for a collapse
:04:46. > :04:49.in steel prices. China's Google,
:04:50. > :04:51.Baidu, has been told to reduce the number of paid-for adverts it
:04:52. > :04:56.includes in its search results. The warning
:04:57. > :04:58.from Chinese regulators came after a student died from an experimental
:04:59. > :05:01.cancer therapy that came top of How many Krispy Kreme doughnuts do
:05:02. > :05:11.you think you could get The owner the Kenco coffee and
:05:12. > :05:19.Jimmy Choo shoes has agreed to buy the sugary snack maker
:05:20. > :05:22.for exactly that amount. The chairman
:05:23. > :05:25.of Krispy Kreme said the deal would allow them to continue to spread
:05:26. > :05:28.that joy to a growing number Where should you set up shop
:05:29. > :05:37.if you want to sell luxury goods? According to a new report,
:05:38. > :05:40.Asia is your perfect destination. According to a new
:05:41. > :05:46.study It's home to seven According to a new
:05:47. > :05:48.study it's home to seven of the top 10 cities with
:05:49. > :05:51.the highest luxury retail presence. Hong Kong is second only to
:05:52. > :05:53.London in its global popularity and despite China's slowing economy
:05:54. > :05:56.still gets many of its high spending Also in the top ten,
:05:57. > :06:02.Shanghai, Singapore and Beijing, all of which have benefited
:06:03. > :06:04.from growing middle classes Our very own Rico is in Singapore,
:06:05. > :06:33.have you had a chance to do I don't aspire to buy any luxury
:06:34. > :06:38.goods. I'm not a high end retailer type of customer, I'm a budget
:06:39. > :06:43.consumer. Taking a look at the research, Hong Kong remains Asia's
:06:44. > :06:46.leading luxury shopping destination with many retailers using it as a
:06:47. > :06:54.springboard for expansion into China. You mentioned Shanghai,
:06:55. > :06:59.Beijing and Singapore, but one city that has seen a revival is Tokyo,
:07:00. > :07:04.taking fourth placed globally. Luxury retailers are looking for
:07:05. > :07:07.high-quality real estate in the country as a result of improving
:07:08. > :07:14.economic conditions and the rising tourism numbers. Diem, which has
:07:15. > :07:22.devalued by 30% since 2012, has made Japan a magnet for high-end retail
:07:23. > :07:32.in the region -- the yen. It is also meaning Japanese citizens can make
:07:33. > :07:37.the most of their purchasing power. Hong Kong is still number one,
:07:38. > :07:40.though. Good to see you, frugal living, that's the BBC life. Nice to
:07:41. > :07:43.see you, Rico. TechCrunch's Disrupt New York event
:07:44. > :07:46.is happening right now in the For those of you not in the know,
:07:47. > :07:49.it's a huge show highlighting the technology that aims to shake up
:07:50. > :07:52.the way we live. We gave Michelle the day
:07:53. > :07:55.off to check this out for us. She found a lot of the excitement is
:07:56. > :07:58.about the next generation I'm at the cruiseship terminal
:07:59. > :08:03.in Brooklyn and instead of tourists, as you can see, the room here today
:08:04. > :08:06.is filled with technologists. A lot of the buzz has centred around
:08:07. > :08:14.the creators of Siri, Apple's digital assistant, they did a demo
:08:15. > :08:18.a short while ago showing off their newest creation, it's called Viv,
:08:19. > :08:22.and it's what they say is the next generation of artificial
:08:23. > :08:28.intelligence assistant. We think there will be a new icon
:08:29. > :08:31.that will be very recognisable, as Will it be warmer than 70 degrees
:08:32. > :08:42.near the golden gate bridge Will it be warmer than 70 degrees
:08:43. > :08:45.near the Golden Gate Bridge Send Adam $20
:08:46. > :08:58.for the drinks last night. It knows who Adam is,
:08:59. > :09:02.it knows what it's about, we are One of the questions that came up is
:09:03. > :09:09.whether or not Viv could potentially replace search,
:09:10. > :09:14.Siri routinely directs queries to search engines when it can't answer
:09:15. > :09:18.the questions it self. search engines when it can't answer
:09:19. > :09:21.the questions itself. This obviously wouldn't be
:09:22. > :09:24.the case with Viv but he still thought there was a role
:09:25. > :09:27.in the future for search engines. And when asked about whether
:09:28. > :09:43.artificial intelligence posed any Michelle Fleury, who is at the event
:09:44. > :09:46.in New York. A lot more about that online and more business news as
:09:47. > :09:54.well, have a look when you have time but for now, goodbye.
:09:55. > :09:58.The legal case for the use of drone strikes against so-called
:09:59. > :10:04.Islamic State terrorists needs urgent clarification, according to
:10:05. > :10:10.A report from the Joint Committee on Human Rights says