28/04/2017 World Business Report


28/04/2017

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Now it's time for World Business Report.

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Raking in the billions - another huge quarter for Silicon

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But can the likes of Google and Amazon keep on growing?

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consumer confidence up, business confidence up -

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We take stock of the President's first 100 days at the helm

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Begin me that 8.5 minutes and I will give you an exciting snapshot of the

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world of business and money. Also coming up - more surprises

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from President Trump as he vows to renegotiate the US trade

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deal with South Korea. We'll be getting the

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reaction from Asia. We start in Silicon Valley

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where three of the biggest names in technology have been

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reporting their numbers We are talking about the Tech Titans

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- Google, Amazon and Microsoft. And it seems they are just

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getting bigger and bigger. The numbers are jaw

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dropping, take a look. Along with rival Facebook it

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dominates online advertising. But it's still managing

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to grow very fast. Google's parent company Alphabet saw

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revenues jump by almost a quarter Remember this is just three

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months worth of sales. It's one of the world's

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biggest retailers - it dominates online shopping,

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and still saw sales grow over 22% to almost $36 billion

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for the three months to March. Three quarters of a billion

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of that was profit. Amazon has been growing sales

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in double-digits for 20 years. Microsoft too is

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raking in huge sales. Many people wrote it off as a victim

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of the decline in PC's and the rise But it's become a leader

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in cloud computing. It made revenues of over $23 billion

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although they were only up 6%, and that was less than

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Wall Street was expecting. But are these Tech Titanstoo

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dominant - simply too big - and too powerful in their

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respective industries? That if they remain under scrutiny.

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Some practices, adding conventionally, you'd have to say

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yes. They would be up to 50% of the e-commerce market. Knocking out a

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lot and traditional retailers as well as on line rivals but it's not

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behaving in the two -- traditional monopoly way. With price gouging.

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Consumers still get a pretty good deal. Prices are actually going

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down. Gary Reid is managing director

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at Forward 3D which is a digital which is a digital

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marketing company. Great to have you with us. Some

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people might say, Google, for example. Is it really too big and

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too dominant? Maybe to begin dominant because there is not much

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of a competition out there. That is part of the point. They have got

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great products but if you look at e-commerce, there is less than 20%.

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There is a line right now. Still a long way to go. Isn't it funny, and

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not funny, but it highlights the times we're living in. We used to

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talk about GE, General Electric, as being the world's biggest company.

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That is now dominated at the top three in the world are tech

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companies. Absolutely. It shows you where everything is going. Going

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from desktop PCs and mobile phones. The whole world is changing. They

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are providing the infrastructure for us. Imagine a deal without Google

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Maps. We would be lost. Talking of Google, when the numbers come out,

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things to look out, what we call it? The cost per click. The advertising

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money. Every time somebody clicks on an advert, somebody pays for that.

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That probably masks the fact that their revenue has been going up.

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That's because there is incremental clicks coming from mobile phones.

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People do a lot of clicking on mobile phones. That is what is

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happening at the moment. Say with hammers on, people going to the

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Amazon on site. Going straight to looking for a product as opposed to

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searching on Google. With hammers on E now, you can order from your home

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without going even want your mobile phone. -- Amazon Echo. What Google

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are trying to do with Google shopping is aggregate everything

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that is not Amazon, to create some competition to Amazon. They are

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doing a pretty good job. The one, Microsoft. Microsoft sales of PCs,

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they are going to be hit hard but they reinvented into this cloud

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storage. Unbelievable. They become so dominant in that, Google are

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trying to catch up with them. Big companies are using them. They have

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got that heritage which says they can be trusted in that area. Amazon

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makes most of its money from the cloud. Gary Reed, a pleasure. Your

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first time does. It will not be your last.

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We are also talking about President Donald Trump-

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because as you've been hearing, Saturday marks the 100th day

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On the campaign trail Mr Trump made some big pledges on business

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Stock markets are still riding high on a wave of optimism -

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the so called Trump Bump -- how much will he be able to deliver?

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Samira Hussain has more from New York.

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As a candidate, Donald Trump had ambitious plans for the economy in

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his first 100 days in office. I am asking the American people to dream

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big once again. What follows is my 100 day action plan to make America

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great again. But things that require action by Congress have stopped. The

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tax code not reformed, Obamacare not repealed. Even though, Donald Trump

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has seen the economy and crime. The domestic economy is good. Regardless

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of policies, they will take time to implement. That is why I think you

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have seen a period. Just forget the 100 days. Periods where the market

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moves up. Consumer confidence has risen. So too has business

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confidence. And crucially, stock markets are up as well. The S 500

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is written as investors seem convinced that Donald Trump will

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deliver for corporate America. They have a checklist of items they want

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to pursue to get to growth number. Implicitly, they premise that growth

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on the idea of tax cuts, mainly as expanded infrastructure spending.

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That is an important milestone, they've got a lot of legislating to

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do. Present John hasn't -- President Trump has not been able to change

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much and if he doesn't soon, the high hopes which are fuelling

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economic activity, they may start to stall.

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Let's stay with President Trump because he's been telling Reuters

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news agency he will either renegotiate or terminate

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what he called a "horrible" free trade deal with South Korea.

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He also says Seoul should pay for a US

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anti-missile system that he priced at $1 billion.

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Let's go over to Singapore and Sharanjit. Good to see you,

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Sharanjit. Another one of these announcements by the President. It

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is the currency, the won, that has taken a hit. Yes, the currency, the

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won as well is the local index went into reverse. It stunned a lot of

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investors. They weren't expecting this to come and Mr Trump is, as you

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said, the gift that keeps on giving. He is calling the five-year pact

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with South Korea unacceptable and that he would renegotiate it. A real

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revamp of the North American Free Trade Agreement. He essentially

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blamed the US- South Korea trade deal on his 2016 election opponent

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Hillary Clinton who was Secretary of State at the time who promoted the

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final version of the trade pact before its approval by Congress in

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2011. As I mentioned, President Trump has stunned the financial

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markets. They weren't expecting this. We have seen a slightly

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brightening prospect for the Korean economy. We have seen global demand

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improving. They have been leading the recovery in South Korea as well

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as a number of other trade reliant agent -- Asian economies such as

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Japan and Taiwan. We heard from a high-ranking South Korean Finance

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Ministry official who declined to be named, telling Reuters the Trump

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administration had not requested anything from them yet so they are

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just waiting and seeing. We will do a U-turn. He's done that and

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everything else. CU, Sharanjit. Follow me on Twitter. I will be back

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with James did look -- to look at some of the newspapers from around

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the world. The general election will be a

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tipping point the education, with head teachers warning the stability

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of the whole system is at

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