25/07/2017 World Business Report

Now it's time for World Business Report.

Hit by the EU - profits fall at Google's parent company Alphabet,

after a huge fine levvied by the European Union.

Well, now you can use the cryptocurrency to pay for art.

Welcome to World Business Report. I'm Rachel Horne.

In a minute Sharanjit will tell us how SK Hynix increased its profits

Three of the world's most valuable internet firms release

The biggest by far is Google's Alphabet,

which has just reported a 21% jump in revenues.

That was better than expected But there was less cheer

Net profit fell 27.7% to $3.5 billion.

Hitting the bottom line was a $2.7 billion fine issued

It ruled the firm abused its power by promoting its own shopping

comparison service in it's search results.

But, Alphabet's shareprice fell 3% in after hours trading.

But take a look at this - over the past nine years

the firm's share price has rocketed as it has dominated

From $140 a share - to just under $1,000 a share.

It's now worth more than two-thirds of a trillion dollars.

A key area for Google is mobile advertising,

where it's battling its rival, Facebook.

But does that mean they are too reliant on one revenue stream?

With me is Gary Reid, Managing Director Forward3D.

Thank you for joining me. Do you think alphabet is too reliant on one

revenue stream? Google have proved they can work on different apps

which consumers buying into. I think they are but it is also going to be

voice searching mobile and that is where Google can take a leap

forward. This record billion-dollar fine, if we were to take that out of

the equation, how would we be looking at the figures? Google would

say they are really good. The underlying problem is that the cost

is rising quicker than their revenue and that is to do with this move

towards mobile. If they could get the costs under control, perhaps

everyone can be happier. How can they do that? It is about looking at

the infrastructure. How they are moving into the cloud is one way

they can get extra revenues from the infrastructure. Alphabet, Google,

Facebook, Amazon on... How does it compare the big companies at the

minute. If we look at Facebook, they make a bigger profit on its revenue.

Google needs to make more money to get similar profits. Google do not

look at profits by grace and of revenue. They are probably twice the

size of Facebook at the new battleground is where this is going

to come to shore and whether they can do what Microsoft do and hold on

to the leadership position. Google alphabet has other revenue streams.

They have the driverless, self driving, they have the Android, are

those avenues ever going to replace the amount of money they get through

advertising? Nest is quite an interesting one, home automation,

the more that is integrated into our daily lives, the more the revenue

stream can start to increase. South Korea's SK Hynix has reached

a new earnings high. They reported this morning that

profits rose a whopping 574% Joining us from Singapore

is Sharanjit Leyl. Those are impressive figures, how

have they done it? SK Hynix is the chip supplier for companies like

Apple and the world 's second-largest memory chip maker.

They are on track for the largest ever annual profit for the firm.

Essentially, chip makers are riding a supercycle due to strong remark

for computer memory chips. The SK Hynix saying the average selling

price have risen by 11% from the previous three months. The selling

price fall at the chips have rose 80% but shipments fell a percent --

8%. Trouble Japanese conglomerate Toshiba, a government backed group

and another group have been in a bidding war. In spite of stellar

results, I should say the shares have been falling today as investors

take profits. Art is getting excited

about digital currencies. In a first for the tradition-bound

art world, one gallery is now allowing its clients

to pay using Bitcoin, underpinned by

blockchain technology. We found an owner of fine art. It

gives more people an opportunity to experience and to use this new

currency. I believe it is going to be a widely used currency in next to

no time. The me to request a payment, I go to my wallet. I will

give my wallet addressed to the sender and the sender will send me

an amount to my address. My wallet is linked to a bank so I can

immediately convert the big point into pounds, euros or dollars. Not

everyone can afford these, it is a luxury business, but more people can

have an opportunity to buy and, as a small Independent business, it makes

sense to broaden your client base. In other news The UK's

Serious Fraud Office says it has opened an investigation

into British-Australian mining giant The SFO says the probe

is into suspected corruption in the conduct of business

in the Republic of Guinea by the Rio Tinto group,

its employees and others It is asking anyone with relevant

information to get in touch. Rio Tinto says it will fully

co-operate with the investigation. Toymaker Hasbro has reported a 30

percent bump in its profits. That's due to strong sales

of Transformers action figures However Hasbro shares closed more

than 9% lower on Monday - the most in nine years -

after its revenue missed market expectations because of weak sales

in regional markets including In asia markets have been hitting

multi year highs in recent weeks - ... That does not look like the

today not so much movement - waiting to hear from the 2 day fed

res meeting which kicks off today - no change on interest rates expected

this time - but there could be more guidance from Janet Yellen.

No. What markets and investors will be looking is further guidance on

how the US will begin to tighten its monetary policy. Huge amounts of

money pushed out into the market. Brent crude up that's because of the

meeting in Russia and hearing Saudi Arabia saying they will try to put a

and reduce the amount of oil they are producing. Looking ahead at

America... The NASDAQ, it will be in the steam to see how they open.

After all it trading on Google alphabet. The share price dropping

3% in after how trading. We will be hearing what the Fed have to say at

close of play. Don't forget you can get in touch

with me and some of the team