09/08/2017 World Business Report


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09/08/2017

The latest business news with informed analysis from the world's financial centres.


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Now it's time for World Business Report.

:00:00.:00:16.

The US market rally shows no signs of losing steam.

:00:17.:00:23.

But what does the high valuation tell us about Wall Street

:00:24.:00:26.

The Magic Kingdom sets out on its own.

:00:27.:00:29.

Disney's announcing it will pull its movies from Netflix

:00:30.:00:32.

and set up its own streaming services.

:00:33.:00:41.

we focus on stem cell banking in India.

:00:42.:00:56.

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

:00:57.:01:04.

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

:01:05.:01:07.

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

:01:08.:01:10.

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

:01:11.:01:16.

in availability of loans as banks suddenly found they had billions

:01:17.:01:19.

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

:01:20.:01:30.

The ensuing financial crisis cost the British

:01:31.:01:32.

economy up to 7.4 trillion pounds in lost output -

:01:33.:01:38.

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

:01:39.:01:48.

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

:01:49.:01:52.

and other markets have we really learnt lessons

:01:53.:01:54.

from the costly mistakes of the global financial crisis?

:01:55.:02:01.

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

:02:02.:02:05.

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

:02:06.:02:11.

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

:02:12.:02:25.

200 billion pounds - that's $260 billion.

:02:26.:02:34.

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

:02:35.:02:42.

Samira Hussain in New York has been finding out.

:02:43.:02:53.

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

:02:54.:03:00.

milestones something everybody is taking notice of, even at the

:03:01.:03:08.

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

:03:09.:03:14.

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

:03:15.:03:22.

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

:03:23.:03:27.

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

:03:28.:03:32.

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

:03:33.:03:36.

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

:03:37.:03:40.

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

:03:41.:03:46.

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

:03:47.:04:01.

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

:04:02.:04:08.

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

:04:09.:04:13.

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

:04:14.:04:21.

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

:04:22.:04:26.

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

:04:27.:04:31.

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

:04:32.:04:37.

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

:04:38.:04:42.

certain kinds of firms. That concentration does not help the

:04:43.:04:47.

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

:04:48.:04:51.

credit. Media giant Walt Disney plans

:04:52.:04:52.

to start its own online streaming services for movies,

:04:53.:04:55.

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

:04:56.:04:58.

directly to consumers. This will end its present

:04:59.:05:05.

distribution deal with Netflix. Rico Hizon has been

:05:06.:05:10.

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

:05:11.:05:26.

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

:05:27.:05:34.

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

:05:35.:05:37.

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

:05:38.:05:43.

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

:05:44.:05:50.

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

:05:51.:05:57.

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

:05:58.:06:05.

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

:06:06.:06:14.

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

:06:15.:06:22.

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

:06:23.:06:34.

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

:06:35.:06:41.

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

:06:42.:06:49.

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

:06:50.:06:57.

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

:06:58.:06:58.

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

:06:59.:07:01.

and the controversial topic of stem cell banking.

:07:02.:07:04.

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

:07:14.:07:16.

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

:07:17.:07:24.

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

:07:25.:07:33.

Her stem cells are being harvested from the blood

:07:34.:07:39.

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

:07:40.:07:44.

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

:07:45.:07:47.

to cure a range of genetic disorders.

:07:48.:08:01.

This is the best time to harvest stem cells,

:08:02.:08:03.

rather than a painful procedure later in life.

:08:04.:08:06.

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

:08:14.:08:15.

than 1% of stem cell donors come from here.

:08:16.:08:18.

That means the chances of Indians finding a suitable match

:08:19.:08:21.

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

:08:22.:08:25.

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

:08:26.:08:30.

And as the business expands, prices have come down.

:08:31.:08:33.

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

:08:53.:08:55.

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

:08:56.:09:00.

a model way and parents can share their stem cells

:09:01.:09:03.

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

:09:04.:09:06.

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.

:09:10.:09:12.

It is a multi-fold increase in benefit.

:09:13.:09:14.

Experts agree that sharing stem cells in a bank will increase

:09:15.:09:17.

the chances of finding a donor exponentially.

:09:18.:09:20.

The concept of community banking encouraged these first-time parents

:09:21.:09:23.

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

:09:24.:09:32.

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

:09:33.:09:38.

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

:09:39.:09:42.

to potentially protect their new arrivals.

:09:43.:09:46.

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

:09:47.:09:57.

milk brands have their advertising restricted?

:09:58.:09:59.

Let us know your thoughts #BusinessofBirth

:10:00.:10:09.

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

:10:10.:10:15.

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

:10:16.:10:21.

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

:10:22.:10:29.

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

:10:30.:10:34.

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

:10:35.:10:40.

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

:10:41.:10:42.

then. 500 new medical school places

:10:43.:10:47.

will be made available in England

:10:48.:10:51.