:00:00. > :00:12.Now for the latest financial news with Sally.
:00:13. > :00:18.No buyer and the losses are widening, so what now for Yahoo
:00:19. > :00:23.as it attempts to woo bidders for its core business?
:00:24. > :00:26.The price is too high for Netflix subscribers.
:00:27. > :00:30.Shares in the streaming giant tumble in after hours trade as it
:00:31. > :00:38.reveals its stellar growth is slowing.
:00:39. > :00:54.I'm Sally Bundock, also in the programme:
:00:55. > :00:56.The internet firm Yahoo saw its losses widen to $440 million
:00:57. > :01:00.in the three months to the end of June.
:01:01. > :01:02.This was expected but investors were hoping for an update
:01:03. > :01:04.on the company's plans to sell its core search
:01:05. > :01:10.on that subject Yahoo revealed nothing!
:01:11. > :01:12.Over the years shareholders have had a rollercoaster ride.
:01:13. > :01:13.Yahoo's chief executive, Marissa Mayer,
:01:14. > :01:24.It was hoped that she'd revive the business fortunes.
:01:25. > :01:26.Acquisitions were Mayer's weapon of choice.
:01:27. > :01:27.Since her appointment, Yahoo has bought more
:01:28. > :01:35.Including the micro-blogging website Tumblr.
:01:36. > :01:39.In the two years after she took over Yahoo's share
:01:40. > :01:44.But in 2014, things started to change.
:01:45. > :01:47.The company's share price took a tumble after the Chinese retailing
:01:48. > :01:54.Yahoo owns a massive 15% stake in the business, so when Alibaba's
:01:55. > :01:56.shares began to sink, it took Yahoo down with it.
:01:57. > :01:59.So Yahoo's next plan of action was to sell
:02:00. > :02:04.This move was announced earlier this year with several big tech names
:02:05. > :02:13.But still no news of a concrete offer.
:02:14. > :02:19.With me is Jamie Gavin from inPress online.
:02:20. > :02:25.He can talk us through Yahoo. Nice to see you. It's been a troubled
:02:26. > :02:31.time for this company for a long time and I think there was a lot of
:02:32. > :02:36.excitement when they said they would sell core assets, but no news? No
:02:37. > :02:39.news. I think the figures that were put out were largely in keeping with
:02:40. > :02:44.where analysts thought they would be. I think what has surprised
:02:45. > :02:48.analysts in most quarters is an announcement has not now been made
:02:49. > :02:52.on the sell-off of its core business. We believe Yahoo has been
:02:53. > :02:56.up for sale, it's been up for auction since around February this
:02:57. > :03:00.year with some of the front runners being the likes of AT and Horizon,
:03:01. > :03:06.real old school telecommunications companies. It was expected on the
:03:07. > :03:09.back of this Q2 announcement an announcement would be made on the
:03:10. > :03:15.sale of the core assets but that hasn't happened. For Root two or
:03:16. > :03:20.AT you can understand why they would be interested, Yahoo has 1
:03:21. > :03:29.billion active users mainly in the United States -- Verizon. There's
:03:30. > :03:34.still a huge audience and it is a profitable business still, looking
:03:35. > :03:38.at it with my media cat on, wherever there's eyes there's hope you can
:03:39. > :03:46.scale that backup. What does that mean for those not familiar with the
:03:47. > :03:52.term -- cap. An audience, an engaged user base. They have Yahoo Sport and
:03:53. > :03:57.Finance, the e-mail business is still in place, people still go into
:03:58. > :04:00.the property and the entities within it. For someone like an old school
:04:01. > :04:03.telecommunications company that looks at the size of the audience
:04:04. > :04:10.and infrastructure, there is still an appeal. In terms of the outlook,
:04:11. > :04:16.if it were to sell its core business, what is left of Yahoo,
:04:17. > :04:21.what would it then do? This is when it becomes more interesting. As
:04:22. > :04:25.we've said it holds that 15% stake in Alibaba, this massive e-commerce
:04:26. > :04:30.business, a stake also in Yahoo Japan. The King at it from a holding
:04:31. > :04:34.company business point of view, things still look rosy -- looking.
:04:35. > :04:39.But when it comes to its core business you wonder how much is left
:04:40. > :04:44.in place. Let's now talk about Netflix. Netflix has come out with
:04:45. > :04:55.its results. Among the news is the fact that the number of subscribers
:04:56. > :04:58.has actually stalled a little bit. Netflix was the darling, the
:04:59. > :05:02.disruptive technology company that everyone watched with great
:05:03. > :05:06.interest. It seems it's asking for too much in terms of price, it's
:05:07. > :05:10.come down to that very basic element. This is the interesting
:05:11. > :05:14.one. Yahoo has been stalling and has been expected to reach this point
:05:15. > :05:19.for a long time now, something like a Netflix is much more of a New Kid
:05:20. > :05:24.on the Block. It was seen by many to be one of the four runners in
:05:25. > :05:30.bridging that gap between old school broadcaster technology with your new
:05:31. > :05:35.school online video play. It is shocking that the shares can tumble
:05:36. > :05:39.like this. I would say it is very content focused, it doesn't have a
:05:40. > :05:44.Facebook or Twitter, that real kind of community engagement and that
:05:45. > :05:48.aspect to its offering. If the popularity of the content goes down
:05:49. > :05:53.or the price of the content goes up then you could be in trouble. It
:05:54. > :05:57.reminds us that for Netflix, although everyone was watching
:05:58. > :06:02.Netflix and talking about the fact it was disrupted for companies like
:06:03. > :06:08.the BBC. A major headache. It shows the competition is really hot.
:06:09. > :06:16.Netflix has got to keep its eye on other players like Amazon Prime.
:06:17. > :06:19.Amazon and Hulu and the BBC is ramping up its iPlayer offering, and
:06:20. > :06:25.who knows what that could look like in two to three years time on a
:06:26. > :06:29.global level. YouTube is evolving its own services allowing for longer
:06:30. > :06:34.videos and promoting the longer content it's got. There will always
:06:35. > :06:38.be competitors and when you go for this old school subscription based
:06:39. > :06:41.model, it is quite an old school media model of asking for a monthly
:06:42. > :06:47.subscription, you're always going out on a limb and looking for a very
:06:48. > :06:52.loyal, retained audience and that can be subject to fluctuation.
:06:53. > :06:55.Difficult in these times to get a loyal, retained audience. Thank you
:06:56. > :07:00.for coming in and appreciate your analysis so early in the morning, he
:07:01. > :07:05.not normally up at this type. Let's continue with other business news.
:07:06. > :07:06.Fiat Chrysler is being investigated by US
:07:07. > :07:09.regulators over the way it reports quarterly and annual results.
:07:10. > :07:12.The company says it records revenues based on shipments to dealers rather
:07:13. > :07:18.Fiat Chrysler recorded a 7% rise in its monthly sales in June,
:07:19. > :07:24.its best result for that month since 2005.
:07:25. > :07:26.Shares in Istanbul closed down more than 7% on Monday
:07:27. > :07:28.following the failed military coup in Turkey on Friday.
:07:29. > :07:37.After a fairly quiet start to trading on Monday,
:07:38. > :07:39.shares slid by nearly 9% cent at one point
:07:40. > :07:43.Markets in the country are due to start trading in
:07:44. > :07:57.That the equity markets we're talking about of course. -- that's.
:07:58. > :08:04.In Japan's Softbank have tumbled 10 in Tokyo --
:08:05. > :08:26.Let's find out what analysts think. Nice to see you. People not
:08:27. > :08:32.impressed with the decision in Tokyo? Quite disappointed, investors
:08:33. > :08:37.and traders, about Softbank buying our holdings for $32 billion because
:08:38. > :08:50.Sally, Softbank is a highly indebted company and its largest takeover to
:08:51. > :08:54.date piles on additional debt investors and analysts never saw
:08:55. > :09:00.this investment coming. Masayoshi son, the founder of Softbank, has
:09:01. > :09:05.invested $90 billion in assets sales including sales in Alibaba and a
:09:06. > :09:08.software company in Finland but analysts and investors expected
:09:09. > :09:12.Softbank to use this huge pile of cash to reduce its debt load or give
:09:13. > :09:15.shareholders a windfall by buying back its own shares or through
:09:16. > :09:19.dividends, but it wasn't meant to be. It's putting pressure on the
:09:20. > :09:25.stock and it is borrowing money through bridge financing to make
:09:26. > :09:28.this Arm deal happen. We will have to wait and see after investors
:09:29. > :09:32.digests what the synergies of this deal will be if we are going to see
:09:33. > :09:37.the stock back up in a few hours time or by tomorrow. Thanks very
:09:38. > :09:41.much. Nice to see you. Let show you the markets. Japan closed for the
:09:42. > :09:48.day on Monday but it has opened today. Up by 0.6%. Hong Kong and
:09:49. > :09:54.elsewhere we are seeing declines, the price of oil going down, just
:09:55. > :09:59.under $47 a barrel. Let's go to the next board which shows you things
:10:00. > :10:03.ending in the US, up but not significantly. The earnings stories
:10:04. > :10:09.dominating trade on Wall Street. As they come in we will update you.
:10:10. > :10:13.Yahoo and Netflix were the big ones reporting yesterday after the close
:10:14. > :10:19.on Wall Street. That's all from World Business Report. CU soon.
:10:20. > :10:26.A group of MPs has calculated that the annual increase in health
:10:27. > :10:29.spending in England by the end of this parliament will be little
:10:30. > :10:32.more than half the figure claimed by government.