:00:00. > :00:17.Now it's time for World Business Report.
:00:18. > :00:20.Hit by the EU - profits fall at Google's parent company Alphabet,
:00:21. > :00:25.after a huge fine levvied by the European Union.
:00:26. > :00:31.Well, now you can use the cryptocurrency to pay for art.
:00:32. > :00:40.Welcome to World Business Report. I'm Rachel Horne.
:00:41. > :00:43.In a minute Sharanjit will tell us how SK Hynix increased its profits
:00:44. > :00:49.Three of the world's most valuable internet firms release
:00:50. > :00:53.The biggest by far is Google's Alphabet,
:00:54. > :00:56.which has just reported a 21% jump in revenues.
:00:57. > :00:59.That was better than expected But there was less cheer
:01:00. > :01:08.Net profit fell 27.7% to $3.5 billion.
:01:09. > :01:11.Hitting the bottom line was a $2.7 billion fine issued
:01:12. > :01:16.It ruled the firm abused its power by promoting its own shopping
:01:17. > :01:18.comparison service in it's search results.
:01:19. > :01:27.But, Alphabet's shareprice fell 3% in after hours trading.
:01:28. > :01:30.But take a look at this - over the past nine years
:01:31. > :01:33.the firm's share price has rocketed as it has dominated
:01:34. > :01:37.From $140 a share - to just under $1,000 a share.
:01:38. > :01:40.It's now worth more than two-thirds of a trillion dollars.
:01:41. > :01:43.A key area for Google is mobile advertising,
:01:44. > :01:45.where it's battling its rival, Facebook.
:01:46. > :01:50.But does that mean they are too reliant on one revenue stream?
:01:51. > :01:57.With me is Gary Reid, Managing Director Forward3D.
:01:58. > :02:07.Thank you for joining me. Do you think alphabet is too reliant on one
:02:08. > :02:16.revenue stream? Google have proved they can work on different apps
:02:17. > :02:25.which consumers buying into. I think they are but it is also going to be
:02:26. > :02:31.voice searching mobile and that is where Google can take a leap
:02:32. > :02:36.forward. This record billion-dollar fine, if we were to take that out of
:02:37. > :02:41.the equation, how would we be looking at the figures? Google would
:02:42. > :02:46.say they are really good. The underlying problem is that the cost
:02:47. > :02:50.is rising quicker than their revenue and that is to do with this move
:02:51. > :02:56.towards mobile. If they could get the costs under control, perhaps
:02:57. > :03:04.everyone can be happier. How can they do that? It is about looking at
:03:05. > :03:08.the infrastructure. How they are moving into the cloud is one way
:03:09. > :03:16.they can get extra revenues from the infrastructure. Alphabet, Google,
:03:17. > :03:21.Facebook, Amazon on... How does it compare the big companies at the
:03:22. > :03:28.minute. If we look at Facebook, they make a bigger profit on its revenue.
:03:29. > :03:33.Google needs to make more money to get similar profits. Google do not
:03:34. > :03:38.look at profits by grace and of revenue. They are probably twice the
:03:39. > :03:43.size of Facebook at the new battleground is where this is going
:03:44. > :03:50.to come to shore and whether they can do what Microsoft do and hold on
:03:51. > :03:56.to the leadership position. Google alphabet has other revenue streams.
:03:57. > :04:02.They have the driverless, self driving, they have the Android, are
:04:03. > :04:06.those avenues ever going to replace the amount of money they get through
:04:07. > :04:12.advertising? Nest is quite an interesting one, home automation,
:04:13. > :04:14.the more that is integrated into our daily lives, the more the revenue
:04:15. > :04:17.stream can start to increase. South Korea's SK Hynix has reached
:04:18. > :04:22.a new earnings high. They reported this morning that
:04:23. > :04:25.profits rose a whopping 574% Joining us from Singapore
:04:26. > :04:41.is Sharanjit Leyl. Those are impressive figures, how
:04:42. > :04:45.have they done it? SK Hynix is the chip supplier for companies like
:04:46. > :04:52.Apple and the world 's second-largest memory chip maker.
:04:53. > :04:57.They are on track for the largest ever annual profit for the firm.
:04:58. > :05:06.Essentially, chip makers are riding a supercycle due to strong remark
:05:07. > :05:12.for computer memory chips. The SK Hynix saying the average selling
:05:13. > :05:17.price have risen by 11% from the previous three months. The selling
:05:18. > :05:30.price fall at the chips have rose 80% but shipments fell a percent --
:05:31. > :05:40.8%. Trouble Japanese conglomerate Toshiba, a government backed group
:05:41. > :05:47.and another group have been in a bidding war. In spite of stellar
:05:48. > :05:50.results, I should say the shares have been falling today as investors
:05:51. > :05:52.take profits. Art is getting excited
:05:53. > :05:54.about digital currencies. In a first for the tradition-bound
:05:55. > :05:57.art world, one gallery is now allowing its clients
:05:58. > :06:00.to pay using Bitcoin, underpinned by
:06:01. > :06:30.blockchain technology. We found an owner of fine art. It
:06:31. > :06:38.gives more people an opportunity to experience and to use this new
:06:39. > :06:45.currency. I believe it is going to be a widely used currency in next to
:06:46. > :06:52.no time. The me to request a payment, I go to my wallet. I will
:06:53. > :06:58.give my wallet addressed to the sender and the sender will send me
:06:59. > :07:04.an amount to my address. My wallet is linked to a bank so I can
:07:05. > :07:12.immediately convert the big point into pounds, euros or dollars. Not
:07:13. > :07:17.everyone can afford these, it is a luxury business, but more people can
:07:18. > :07:19.have an opportunity to buy and, as a small Independent business, it makes
:07:20. > :07:22.sense to broaden your client base. In other news The UK's
:07:23. > :07:25.Serious Fraud Office says it has opened an investigation
:07:26. > :07:27.into British-Australian mining giant The SFO says the probe
:07:28. > :07:34.is into suspected corruption in the conduct of business
:07:35. > :07:37.in the Republic of Guinea by the Rio Tinto group,
:07:38. > :07:39.its employees and others It is asking anyone with relevant
:07:40. > :07:43.information to get in touch. Rio Tinto says it will fully
:07:44. > :07:46.co-operate with the investigation. Toymaker Hasbro has reported a 30
:07:47. > :07:49.percent bump in its profits. That's due to strong sales
:07:50. > :07:51.of Transformers action figures However Hasbro shares closed more
:07:52. > :07:58.than 9% lower on Monday - the most in nine years -
:07:59. > :08:01.after its revenue missed market expectations because of weak sales
:08:02. > :08:03.in regional markets including In asia markets have been hitting
:08:04. > :08:26.multi year highs in recent weeks - ... That does not look like the
:08:27. > :08:31.today not so much movement - waiting to hear from the 2 day fed
:08:32. > :08:35.res meeting which kicks off today - no change on interest rates expected
:08:36. > :08:41.this time - but there could be more guidance from Janet Yellen.
:08:42. > :08:56.No. What markets and investors will be looking is further guidance on
:08:57. > :09:03.how the US will begin to tighten its monetary policy. Huge amounts of
:09:04. > :09:10.money pushed out into the market. Brent crude up that's because of the
:09:11. > :09:16.meeting in Russia and hearing Saudi Arabia saying they will try to put a
:09:17. > :09:27.and reduce the amount of oil they are producing. Looking ahead at
:09:28. > :09:34.America... The NASDAQ, it will be in the steam to see how they open.
:09:35. > :09:47.After all it trading on Google alphabet. The share price dropping
:09:48. > :09:49.3% in after how trading. We will be hearing what the Fed have to say at
:09:50. > :09:51.close of play. Don't forget you can get in touch
:09:52. > :09:56.with me and some of the team