02/02/2017

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:00:00. > :00:19.Well on the way to 2 billion friends - Facebook gets more popular,

:00:20. > :00:22.more profitable and more powerful than ever before.

:00:23. > :00:25.Plus, driving a Brexit bargain - why Britain's the place to snap up

:00:26. > :00:52.Also in the programme: A rare bit of good news for Mexico's car

:00:53. > :00:55.We start with Facebook - because despite predictions

:00:56. > :00:58.of a slowdown, the world's biggest social network keeps getting more

:00:59. > :01:00.popular, more profitable and more powerful.

:01:01. > :01:03.Late on Wednesday it reported quarterly numbers that were much

:01:04. > :01:07.They round off another year of rapid growth that has seen it become one

:01:08. > :01:09.of the biggest advertising businesses on earth.

:01:10. > :01:12.Its massive reach has also of course raised concerns about the amount

:01:13. > :01:15.of influence it can have and the reliability of information

:01:16. > :01:28.So let's give you an idea of how big Facebook now is.

:01:29. > :01:32.By the end of last year, over 1.86 billion people

:01:33. > :01:35.around the world were logging on at least once a month,

:01:36. > :01:41.1.25 billion of those log on every single day -

:01:42. > :01:46.and the vast majority via smartphones.

:01:47. > :01:49.Advertisers love it - last year, they spent almost $29

:01:50. > :01:58.billion placing ads on Facebook - a jump of 57% on 2015.

:01:59. > :02:02.That made Facebook profits of well over $10 billion

:02:03. > :02:09.reaching saturation point for the amount of advertising it can

:02:10. > :02:18.And it could give companies more opportunity

:02:19. > :02:22.to promote themselves on Instagram, the image sharing platform

:02:23. > :02:29.Instagram though is facing tough competition from rival Snapchat

:02:30. > :02:33.which is about to sell shares in New York in the biggest tech

:02:34. > :02:39.And it wasn't all celebration for Facebook after a jury

:02:40. > :02:42.ruled its virtual reality division Oculus had infringed another

:02:43. > :02:44.company's intellectual property and should pay them

:02:45. > :02:52.Our North America Technology reporter Dave Lee is at Facebook

:02:53. > :02:59.headquarters in Menlo Park, California.

:03:00. > :03:06.Nice to see you. It's the middle of the night there now. It is

:03:07. > :03:12.incredible, really, the news from Facebook in terms of the earnings

:03:13. > :03:18.but this Oculus rift ruling is a thorn in its side? It really is.

:03:19. > :03:26.Mark Zucker Berg had testified in that trial to convince the jury it

:03:27. > :03:31.was Facebook's oh and innovation. -- Zuckerberg. Originally the company

:03:32. > :03:36.which brought the lawsuit, they wanted $2 billion in damages. They

:03:37. > :03:41.got $500 million relating to the breach of a nondisclosure agreement

:03:42. > :03:46.so the got some damages. Both sides are calling that a victory for

:03:47. > :03:50.themselves. It is a bit of a destruction. Just a drop in the

:03:51. > :03:55.Ocean given the enormous amount of money Facebook is making. You

:03:56. > :04:00.mentioned in the queue, over $10 million profit -- $10 billion profit

:04:01. > :04:04.in the last year. That is because in this transition to mobile which

:04:05. > :04:10.originally Facebook were concerned about, they thought people would not

:04:11. > :04:13.click on ads on mobiles, it makes up 80% of their and revenue. They've

:04:14. > :04:20.made the transition and made it very well. That trick is to keep that

:04:21. > :04:25.growth. Facebook is cautious. It does not like to get investors hopes

:04:26. > :04:35.up. For the time being, Facebook is matching those expectations. Dave

:04:36. > :04:42.outside Facebook headquarters. Let's get more analysis with Matthew. The

:04:43. > :04:48.Oculus story is not fantastic. The year has been a good one but how

:04:49. > :04:51.long can they keep this up? Particularly impressive, the user

:04:52. > :04:55.growth but over the next year, some things to look out for in terms of

:04:56. > :05:00.short-term areas to improve Facebook, for example, time spent on

:05:01. > :05:08.the platform in the core markets as well as the average price paid by

:05:09. > :05:15.advertisers so Facebook needs to convince advertisers of the value.

:05:16. > :05:19.And it has to be about the value. There is only so much advertising

:05:20. > :05:24.that Facebook users will tolerate. It has to be less but advertisers

:05:25. > :05:31.pay more for that. Facebook is limiting the overall and load on its

:05:32. > :05:36.main Facebook and and that limit is being reached late this year. We

:05:37. > :05:39.have seen growth in American users given how far its reach is there

:05:40. > :05:46.already but also an increase in Asia. China has been a real problem

:05:47. > :05:51.for Facebook. It's not been able to penetrate China and has issues with

:05:52. > :05:57.the authorities. It wants a piece of that massive cake in terms of the

:05:58. > :06:01.number of users in mainland China. NACRO two was asked about China and

:06:02. > :06:06.he put it in an interesting way, saying they will consider going to

:06:07. > :06:17.China if they can come up with an agreement. That illustrates how it

:06:18. > :06:20.might be a trade-off between compromising the date of the users

:06:21. > :06:25.when it comes to Chinese authorities and their copperheads and

:06:26. > :06:30.surveillance. All right, thank you for joining us this morning. Very

:06:31. > :06:32.interesting. There is so much on the interest -- on the Internet so do

:06:33. > :06:34.take a look. Now - think supercar and bargain

:06:35. > :06:37.isn't the word that immediately But since the UK's vote

:06:38. > :06:42.to leave the European Union, wealthy petrol-heads from around

:06:43. > :06:45.the world have been heading here to do their shopping thanks

:06:46. > :06:48.to the slump in Sterling. Luxury car dealer Tom Jaconelli

:06:49. > :07:14.explains what it has meant I am Tom Jaconelli at Roman is

:07:15. > :07:19.international. We are a family run business. We sell McLaren, Ferrari

:07:20. > :07:24.are the very best of the supercars. What it is meant to European buyers

:07:25. > :07:31.is with the falling pound, they have managed to bag themselves a bargain.

:07:32. > :07:35.The price of one of these McLaren P1s used to cost $2.2 million in

:07:36. > :07:43.America but now they are buying it here for 20% less which is $1.9

:07:44. > :07:47.million to its $300,000 saving. A real increase in sales to

:07:48. > :07:52.foreigners. Cars that have gone to Hong Kong, Americo, you're up. We

:07:53. > :07:58.normally sell probably three or four cars overseas every year. We mainly

:07:59. > :08:03.sell to the UK but since Brexit, we have seen that threefold. We are

:08:04. > :08:08.selling ten or 11 cars since Brexit overseas which is unheard of for us.

:08:09. > :08:11.We didn't expect it. It is a bonus for us.

:08:12. > :08:14.Mexico has found itself under huge pressure since the election

:08:15. > :08:19.as US companies freeze their investment plans there.

:08:20. > :08:27.But there's been some good news - this press conference on Wednesday

:08:28. > :08:30.heralded a major car manufacturing deal with China

:08:31. > :08:39.Rico Hizon is following this story for us in Singapore.

:08:40. > :08:47.What's going on? It is indeed good news and it's green and gopher China

:08:48. > :08:56.Mexico Mexico Alliance in the automotive sector. You have JAC and

:08:57. > :09:00.giant motors teaming up to invest more than $200 million US in the

:09:01. > :09:05.plant to produce sports utility -- utility vehicles in central Mexico

:09:06. > :09:09.and they are expected to start at the end of March with the goal of

:09:10. > :09:14.making 10,000 units per year by 2021. The SUV will be sold in Mexico

:09:15. > :09:18.and Central America and South America. The announcement comes as

:09:19. > :09:22.US President Donald Trump has threatened to impose stiff export

:09:23. > :09:28.tariffs on companies that ship jobs to Mexico. We have seen Ford decide

:09:29. > :09:32.last month to cancel plans for a $1.6 billion factory in northern

:09:33. > :09:37.Mexico. Trump is also lashed out against General Motors and Toyota.

:09:38. > :09:43.Mexico is the world's fourth biggest car exporter and of course, China is

:09:44. > :09:46.one of the biggest markets for cars. We will see more alliances in

:09:47. > :09:48.manufacturing industries as well. Very end of -- interesting. Good to

:09:49. > :09:50.see you. Oil giant Royal Dutch Shell

:09:51. > :09:52.reports results later. Annual profits are expected to be

:09:53. > :09:56.more than double the previous year - Extreme weather and a pledge by OPEC

:09:57. > :10:01.to cut oil production has seen crude prices surge over

:10:02. > :10:14.the past few months. The dollar has weakened quite a bit

:10:15. > :10:20.-- quite a bit since the US Federal Reserve had delivered a press

:10:21. > :10:24.conference keeping rates on hold. No surprises from the Fed but a

:10:25. > :10:28.stronger yen is not helping Japan trade today. Everybody is wondering

:10:29. > :10:32.when the next move might be from the Fed and it will probably be March or

:10:33. > :10:34.June in terms of an interest rate rise in the States. I will see you

:10:35. > :10:43.soon. The number of students

:10:44. > :10:47.from the European Union applying to study at universities

:10:48. > :10:50.in the UK has fallen by 7% according to the admissions

:10:51. > :10:53.service UCAS.