09/08/2017 World Business Report


09/08/2017

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Now it's time for World Business Report.

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The US market rally shows no signs of losing steam.

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But what does the high valuation tell us about Wall Street

:00:24.:00:26.

The Magic Kingdom sets out on its own.

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Disney's announcing it will pull its movies from Netflix

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and set up its own streaming services.

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we focus on stem cell banking in India.

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This week the main stock markets in the US have had another record

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run and London's FTSE 100 flirted with breaking into record territory.

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It's a far cry from ten years ago when the global

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On the 9th of August 2007 there was a swift reduction

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in availability of loans as banks suddenly found they had billions

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of dollars in toxic debts clients couldn't afford to repay.

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The ensuing financial crisis cost the British

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economy up to 7.4 trillion pounds in lost output -

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the US economy the cost was more staggering at $22 trillion.

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So with traders now celebrating a record breaking run for the Dow

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and other markets have we really learnt lessons

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from the costly mistakes of the global financial crisis?

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Well, yesterday it was revealed that in June consumer credit-card debt

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in the US rose above the previous record set in 2008 to just over

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In the same month unsecured consumer debt here in the UK topped

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200 billion pounds - that's $260 billion.

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So do the stock markets have it wrong or is this level of debt

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Samira Hussain in New York has been finding out.

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US markets have been doing this a lot lately, reaching record-breaking

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milestones something everybody is taking notice of, even at the

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President. We have picked up substantially more than $4 trillion

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in net worth in terms of our country, our stocks, our companies.

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Apple stocks hit an all-time high as did hammers on and that has been

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contributing to these market highs. As US markets go higher and higher

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we should be seeing more companies going public and listing on places

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like the New York stock exchange that is not happening. In fact,

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quite the opposite. Number of US companies listed is actually going

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down. Over the last decade, the number has fallen. By 2016, the

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number falling. That is a 46% drop in the last ten years. So why the

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decline? Companies have other sources of cash, private equity,

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bank loans, going overseas. If there are less companies trading, where is

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all this cash going? If market capitalisation are as healthy as

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they are at the right so many fewer firms, it asked mean the typical

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firm is much larger and we are seeing that. Lots of evidence of

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that. Furthermore, a much greater concentration of that capital in

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certain kinds of firms. That concentration does not help the

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broader economy. The President may want to use caution before taking

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credit. Media giant Walt Disney plans

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to start its own online streaming services for movies,

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shows and sports in a change that it says will bring its productions

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directly to consumers. This will end its present

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distribution deal with Netflix. Rico Hizon has been

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following the story from our Nice to see you. What is going to

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happen to Mickey Mouse! He will live forever. But explain this from

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Disney? It is a natural step for the Magic Kingdom which has a huge

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library of valuable movies and shows, from Star Wars, beauty and

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the beast, to Mickey and Minnie. They want to capture audiences that

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move on from traditional television. It will be launching its service in

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2019, mate possible by Disney buying an additional stake in a company for

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1.5 billion dollars. It is a major blow to Netflix which secured the

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deal ticking in just last year. How did it do in terms of earnings?

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Quite a disappointment. Disney seems to be losing some of its Sparc. 9%

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fall in July. A fall in number of TV subscribers. Its ratings and cable

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subscriptions falling. It looks for box offered hits the big its

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successors last year. Growth is dedicated to the parks and other

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businesses. Nice to see you and see you very soon.

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Now time for the business of birth, today we turn to India

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and the controversial topic of stem cell banking.

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The use of stem cells is still being researched.

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But in the future it's expected that these cells will be used

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to treat a host of genetic disorders and help rebuild damaged tissue.

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Some companies are taking advantage of that, and are making good money

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But is this money well spent when the benefits are still unclear?

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Moments after entering the world, this baby girl may have already

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Her stem cells are being harvested from the blood

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Stem cells are already being used to treat some diseases and,

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with hundreds of trials under way globally, one day they could be used

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to cure a range of genetic disorders.

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This is the best time to harvest stem cells,

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rather than a painful procedure later in life.

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And because of the size of India's population,

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there is huge potential for stem cell banking.

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But more people need to do what is happening here.

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India accounts for 20% of the world's population but less

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than 1% of stem cell donors come from here.

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That means the chances of Indians finding a suitable match

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India's largest bank, LifeCell, has a customer base of 250,000

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people - 50,000 of them signing up last year alone.

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And as the business expands, prices have come down.

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It costs just over $1000 to have cells collected and stored at this

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But that is still a high cost for the average Indian,

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especially when the chances of being able to use your own stem

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cells for treatment are less than 0.01%.

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So far the stem cells are being preserved by the family

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The benefit was only limited to the baby but now we have made

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a model way and parents can share their stem cells

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with the community at large and what that does is it increases

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the benefits and not just for the baby but the baby's

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siblings, baby's parents and also the baby's grandparents.

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It is a multi-fold increase in benefit.

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Experts agree that sharing stem cells in a bank will increase

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the chances of finding a donor exponentially.

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The concept of community banking encouraged these first-time parents

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We are very lucky that we are doing something for my baby,

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Although sceptics say the medical science is only in the very early

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stages, parents are willing to take a chance and pay the price

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to potentially protect their new arrivals.

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And join the conversation online - do you think it is fair that formula

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milk brands have their advertising restricted?

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Let us know your thoughts #BusinessofBirth

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The raising of tensions between the US and North Korea has caused people

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to be quite fearful in financial markets are so gold and the Japanese

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again are climbing and shares are falling. In the US, a slight tick

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down for the first time in several sessions. Not a big fall again to do

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with the concerns about what might happen with regards to the US and

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North Korea. We will discuss that again in the paper preview. See you

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then. 500 new medical school places

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will be made available in England

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