Browse content similar to 28/07/2016. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
Now for the latest financial news with Aaron and World Business | :00:00. | :00:00. | |
200 million new friends for Facebook. | :00:00. | :00:15. | |
The world's biggest social network keeps getting bigger. | :00:16. | :00:21. | |
And I tell you what, so do its profits. | :00:22. | :00:24. | |
The Hinkley C power station could get the go-ahead within hours, | :00:25. | :00:28. | |
the country's first new plant for a generation. | :00:29. | :00:38. | |
Welcome to World Business Report, I'm Aaron Heslehurst. | :00:39. | :00:49. | |
This is a bite-size snapshot, an exciting one, I hope, of all the | :00:50. | :00:54. | |
latest in the world of business and money. | :00:55. | :00:54. | |
Also coming up: The S7 smartphone boosts Samsung's profits, | :00:55. | :00:56. | |
despite stiff competition in the mobile phone business. | :00:57. | :01:02. | |
We will go to Singapore to talk about that. | :01:03. | :01:04. | |
We start in the US, with the world's biggest social network, | :01:05. | :01:07. | |
which just seems to get bigger and bigger. | :01:08. | :01:09. | |
We are talking, of course, about Facebook. | :01:10. | :01:11. | |
It has reported a huge jump in profits, and in the number | :01:12. | :01:14. | |
Advertising agencies are moving more of their money away from television | :01:15. | :01:18. | |
and towards the internet, especially on mobile phones, | :01:19. | :01:21. | |
and Facebook has been one of the big winners. | :01:22. | :01:23. | |
In the three months to the end of June, Facebook made profits | :01:24. | :01:34. | |
That was an increase of 186% compared to the same three-month | :01:35. | :01:38. | |
Since then, it has also signed up 220 million new users who use | :01:39. | :01:45. | |
That takes Facebook's total membership to this, | :01:46. | :01:50. | |
more than 1.7 billion people who log on at least once a month. | :01:51. | :01:53. | |
And all of that had driven the share price higher and higher, | :01:54. | :01:59. | |
giving Facebook a stock market value of $350 billion and counting. | :02:00. | :02:15. | |
Looking at Facebook on their phone or tablet everyday, but it is not | :02:16. | :02:28. | |
enough just to have eyeballs. Facebook is not just good at getting | :02:29. | :02:32. | |
more of us to use their services. It has also shown a knack for making | :02:33. | :02:36. | |
money of our social media habits. Whether that is using Messenger, | :02:37. | :02:43. | |
WhatsApp or Instagram, which it bought in 2012. It is also making of | :02:44. | :02:48. | |
push into mobile video where it faces competition from the likes of | :02:49. | :02:52. | |
snap chat and YouTube. We have seen brands having fun with Facebook live | :02:53. | :02:59. | |
broadcast. One fast food company, ihop, live streamed pancakes on a | :03:00. | :03:03. | |
beach. I am not sure why. But it speaks to Facebook's success at | :03:04. | :03:09. | |
attracting new advertisers and getting existing ones to spend more. | :03:10. | :03:12. | |
Along with Google, Facebook has benefited hugely from advertisers | :03:13. | :03:17. | |
shifting money from television to the internet. As one analyst put it, | :03:18. | :03:22. | |
the social network is running away with the mobile advertising market. | :03:23. | :03:25. | |
At this point it is hard to see how rivals can catch up. | :03:26. | :03:26. | |
Matti Littunen is from Enders Analysis. | :03:27. | :03:30. | |
I did really good on that one, didn't I? Welcome to the programme. | :03:31. | :03:36. | |
Thank you for coming in. Let's start with what Michelle ended on. It does | :03:37. | :03:42. | |
appear, looking at these numbers, that it would be very difficult at | :03:43. | :03:46. | |
the moment for anybody out there to catch up to Facebook. Yes, | :03:47. | :03:51. | |
especially when it comes to display advertising, especially on mobile. | :03:52. | :03:55. | |
They are in a very strong market position. There are a few would-be | :03:56. | :04:00. | |
challengers, but Facebook has risen above the rest. You talk about | :04:01. | :04:04. | |
advertising, I remember years ago experts would come into this | :04:05. | :04:07. | |
programme saying Facebook have done well but need to crack the mobile | :04:08. | :04:11. | |
advertising market. They have cracked it and then some. They have | :04:12. | :04:16. | |
a pretty decent knack of making money. How are they doing it? Is it | :04:17. | :04:20. | |
because the number of users just gives all this rich information to | :04:21. | :04:25. | |
advertisers out there? It is absolutely crucial, what you said | :04:26. | :04:28. | |
there. A few years ago they put their best product people on the | :04:29. | :04:33. | |
mobile app products, rolling out new ways of targeting users, making use | :04:34. | :04:37. | |
of the massive amounts of data they have on usage of the social network. | :04:38. | :04:41. | |
And we see, even now we see continuously them rolling out new | :04:42. | :04:48. | |
advertising formats, new ways for advertisers to reach those users. So | :04:49. | :04:52. | |
they are building on steady progress in those areas. Have we reached peak | :04:53. | :04:59. | |
Facebook? 1.7 billion, I don't know. Can you sit here and say that maybe | :05:00. | :05:04. | |
in one year's time we could have 2.5 billion people or 3 billion people? | :05:05. | :05:08. | |
It looks like there is definitely still more upside to come. The user | :05:09. | :05:13. | |
growth is as fast as it has been in three years and we have lots of | :05:14. | :05:17. | |
product, Facebook frankly hasn't even started monetising some of its | :05:18. | :05:26. | |
product, such as WhatsApp, and things like Messenger. We will see | :05:27. | :05:30. | |
more payments and other services on that platform. It will be more than | :05:31. | :05:35. | |
just advertising so lots of areas available for Facebook's business. | :05:36. | :05:39. | |
There are many areas as you say, but it is getting the young users, using | :05:40. | :05:45. | |
things like SnapChat. Yes, it seems that audience reach among the young | :05:46. | :05:49. | |
groups is definitely still something Facebook does well but there have | :05:50. | :05:53. | |
been some questions raised, especially in advanced markets like | :05:54. | :05:57. | |
the US, where upstart services like SnapChat might be eating into | :05:58. | :06:01. | |
Facebook's most engaged young users. The evidence of that is still quite | :06:02. | :06:06. | |
mixed but that is still something Facebook will be keeping a close eye | :06:07. | :06:10. | |
on. We appreciate your time, thank you for coming in. | :06:11. | :06:13. | |
We are also in the west of England, where Britain's first new nuclear | :06:14. | :06:17. | |
power plant in a generation is expected to get the green light | :06:18. | :06:20. | |
The board of the French energy giant EDF, which is due to fund most | :06:21. | :06:24. | |
of the controversial project, is meeting in Paris later, | :06:25. | :06:27. | |
and is expected to approve the investment. | :06:28. | :06:28. | |
Our industry correspondent John Moylan has more. | :06:29. | :06:34. | |
It is a project on a vast scale. The twin nuclear reactors planned for | :06:35. | :06:42. | |
Hinkley point will provide 7% of the UK's electricity. Due to start | :06:43. | :06:46. | |
generating in 2025, it will be one of the first new nuclear plants to | :06:47. | :06:51. | |
be given the green light in Europe in years. Preparation work at the | :06:52. | :06:56. | |
site is under way. EDF has already ploughed in more than 2.5 billion | :06:57. | :07:02. | |
euros. Now, after years of delays, it is set to be approved. Hinkley C | :07:03. | :07:07. | |
will cost more than 21 billion euros. It has been called one of the | :07:08. | :07:10. | |
most expensive man-made structures on the planet. The Chinese nuclear | :07:11. | :07:20. | |
group CGN has a 35% stake in The Project. It is part of a wider deal | :07:21. | :07:24. | |
which could see Chinese reactors built in Britain. But plans to | :07:25. | :07:28. | |
export their technology around the world have suffered a series of | :07:29. | :07:31. | |
setbacks. The Project in northern front has been hit by delays and is | :07:32. | :07:37. | |
billions over Budget. Its nuclear fleet will also need a 100 billion | :07:38. | :07:43. | |
euros upgrade in decades ahead. That led its finance chief to resign | :07:44. | :07:47. | |
earlier this year, amid concerns soaring cost could destabilise EDF's | :07:48. | :07:53. | |
finances. Its powerful unions also want Hinkley to be delayed. Earlier | :07:54. | :08:00. | |
this week EDF's shareholders agreed a major refinancing plan which has | :08:01. | :08:04. | |
paved the way for today's decision. The UK looks set to enter a new | :08:05. | :08:06. | |
nuclear era. To Asia now, and Samsung has | :08:07. | :08:08. | |
made its best quarterly profits in two years thanks to strong sales | :08:09. | :08:11. | |
of its flagship smartphone, It is also confident | :08:12. | :08:14. | |
about the rest of the year, despite stiff competition | :08:15. | :08:21. | |
from rivals like Apple, at the top end of the market, | :08:22. | :08:22. | |
and cheaper brands from China. Mariko Oi is following this | :08:23. | :08:25. | |
for us in Singapore. Good to see you. I talk about the | :08:26. | :08:39. | |
bottom end, those other competitions, we are talking about | :08:40. | :08:49. | |
the likes of Huawei. Indeed, Samsung has been struggling to compete at | :08:50. | :08:52. | |
the Top End and the bottom end for several years now but this set of | :08:53. | :08:55. | |
results has come in very strong. Earlier this week we were talking | :08:56. | :09:00. | |
about Apple reporting a fall in iPhone sales but as you mentioned, | :09:01. | :09:06. | |
Samsung managed to sell more of its smartphones, as you mentioned, known | :09:07. | :09:11. | |
as Galaxy S7. Its mobile division had profits jumping 27%, helping the | :09:12. | :09:16. | |
overall profit at the company. In other divisions like the TV sales, | :09:17. | :09:20. | |
which were down, Samsung still supplies chips for Apple's iPhones | :09:21. | :09:25. | |
and chip sales were actually down. The company is still counting on its | :09:26. | :09:29. | |
smartphone for strong performance in the future. It is releasing its new | :09:30. | :09:34. | |
model next week, ahead of Apple's launch of new models in September. | :09:35. | :09:37. | |
We will talk to you soon, thank you. In other news: The Federal Reserve | :09:38. | :09:40. | |
has kept interest rates unchanged at between 0.25% and 0.5%, | :09:41. | :09:43. | |
where they have been The US central bank said near-term | :09:44. | :09:46. | |
risks to the economic outlook have diminished, but inflation remained | :09:47. | :09:54. | |
below the bank's target. It is still expected to raise | :09:55. | :09:56. | |
rates twice this year. Investors expect the first | :09:57. | :09:59. | |
increase to come in autumn. Mining giant BHP Billiton will take | :10:00. | :10:08. | |
a hit of up to $1.3 billion to cover the costs of a dam disaster last | :10:09. | :10:12. | |
November at the Samarco iron ore mine in Brazil, which it co-owns | :10:13. | :10:15. | |
with Brazilian rival Vale. That puts the company | :10:16. | :10:18. | |
on course to report its worst The charge accounts for BHP's share | :10:19. | :10:20. | |
of a settlement reached with the Brazilian government | :10:21. | :10:30. | |
to cover clean-up costs and damages, for the dam burst that killed 19 | :10:31. | :10:32. | |
people, left hundreds homeless, You are going to make me do the | :10:33. | :10:39. | |
markets? This robotic camera is all over the place, forcing me to do the | :10:40. | :10:42. | |
market. Despite some of the recent gains we have seen in the hope that | :10:43. | :10:45. | |
Japan and its new stimulus, which we will know about very soon. I will be | :10:46. | :10:48. | |
back to take a look at some of the papers from around the world. | :10:49. | :10:51. | |
An iconic fairground attraction, described as the original | :10:52. | :11:00. | |
white-knuckle ride, is in danger of being lost, | :11:01. | :11:02. | |
The owners of the Moon Rocket, which first appeared in 1939, | :11:03. | :11:06. | |
want to sell it, but the National Heritage Memorial Fund needs | :11:07. | :11:09. | |
to raise another ?17,000 to stop it going abroad or being broken up. | :11:10. | :11:13. |