10/08/2017

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:00:00. > :00:17.Now it's time for World Business Report with Sally.

:00:18. > :00:20.Deadline day - Toshiba secures an auditors sign off on its much

:00:21. > :00:23.delayed results and avoids delisting - but analysts warn its future

:00:24. > :00:31.And Silicon Valley is setting an example when it comes to paid

:00:32. > :00:42.But will the rest of the country follow?

:00:43. > :00:56.Also in the programme, Facebook revamps its television offering.

:00:57. > :00:59.Challenging you choose and other television networks. We will fill

:01:00. > :01:02.you in on that in just a moment. the mystery over how much money

:01:03. > :01:08.Toshiba is losing or making The troubled Japanese tech giant

:01:09. > :01:11.says auditors have signed off its financial results

:01:12. > :01:15.for the year to the end of March. This comes after months of delays

:01:16. > :01:18.and should mean Toshiba avoids an immediate delisting from the top

:01:19. > :01:24.tier of the Tokyo Stock Exchange. It has now been revealed Toshiba

:01:25. > :01:26.made an 8.8 early in dollars loss. -- 8.8 billion dollars.

:01:27. > :01:29.So what's gone wrong for the 140-year-old Japanese giant?

:01:30. > :01:33.Well, two years ago an accounting scandal was revealed that

:01:34. > :01:36.led to the resignation of several members of the firm's senior

:01:37. > :01:47.At the time company was found to have inflated the previous seven

:01:48. > :01:48.years profits by a massive $1.2 billion.

:01:49. > :01:53.Problems came to a head again this year, when Toshiba's US nuclear

:01:54. > :02:00.unit, Westinghouse was forced to file for bankruptcy protection

:02:01. > :02:09.after suffering a $13 billion cost overrun.

:02:10. > :02:12.As you can imagine its proving pretty difficult to find a buyer

:02:13. > :02:17.for Westinghouse - so Toshiba has yet to confirm any interest.

:02:18. > :02:19.So in a desperate move Toshiba is forced to put up

:02:20. > :02:26.This is a major part of its business, that makes memory

:02:27. > :02:37.Analysts have valued it at about $18 billion.

:02:38. > :02:40.All of this has taken its toll on the company's share price,

:02:41. > :02:43.which has effectively halved, and in April Toshiba actually warned

:02:44. > :02:52.Joining us now from Tokyo is Damian Thong, tech analyst

:02:53. > :03:05.Good to see you. Give us your reaction to the news we have heard

:03:06. > :03:10.today, this loss of 8.8 billion dollars. How bad is that, or is it

:03:11. > :03:17.in line with what people were expecting? I think the market is

:03:18. > :03:21.looking forward. The losses, in many ways, are a thing of the past. It is

:03:22. > :03:25.important to know what they were, but what the market really wants to

:03:26. > :03:29.know is whether they can sell the memory business in time to avoid the

:03:30. > :03:32.listing at the end of the fiscal year. We will see that in the first

:03:33. > :03:36.quarter results. The memory business is going through a phenomenal

:03:37. > :03:39.period, profits are through the roof. If you look at the four-year

:03:40. > :03:43.guidance that has been given, basically all the profits for

:03:44. > :03:48.Toshiba are in the memory business. If this is not the time to sell for

:03:49. > :03:54.good value, then in some sense, the chances of Toshiba being able to

:03:55. > :03:56.afford to be nuclear liabilities in its future restructuring will be

:03:57. > :04:01.severely diminished. Everything hangs on the sale of the memory

:04:02. > :04:05.business. How is that a sale going? Given that sell got in trouble with

:04:06. > :04:14.various parts of Toshiba. -- that sale. That is right. Toshiba's

:04:15. > :04:21.long-standing partner is opposed to a disposal. And there are issues

:04:22. > :04:25.such as anti-trust hurdles that Toshiba would have to cross with the

:04:26. > :04:32.sale. The time, the window for this to happen, is getting rather short.

:04:33. > :04:36.If they do not clear the sale by the end of this fiscal year, which ends

:04:37. > :04:40.in March, the Tokyo stock exchange will be put in a situation where

:04:41. > :04:44.Toshiba will be in breach of the rules and they would have to look at

:04:45. > :04:49.the delisting criteria. Financial solvency is not the issue. However,

:04:50. > :04:54.it will still be able to certainly the prestige of the company, and

:04:55. > :04:58.also, I certainly think it could lead to further issues in the

:04:59. > :05:03.sequencing of future reforms. Getting the deal done to sell memory

:05:04. > :05:08.will wobbly have to be done sometime in the next one or two months. --

:05:09. > :05:12.probably. Let's assume they successfully sell the memory chip

:05:13. > :05:17.unit, which is worth a locked and is doing extremely well. What is left

:05:18. > :05:21.of Toshiba, if it sells that unit? You speak about restructuring and

:05:22. > :05:28.dealing with the Westinghouse loss. But what is left for Toshiba? It

:05:29. > :05:32.will be a very reduced company. In many ways, it will be focused on the

:05:33. > :05:38.old economy, including things like thermal power, as well as some of

:05:39. > :05:44.its old industrial businesses, like industrial motors, and selling

:05:45. > :05:48.freight locomotives. Certainly I think they will probably have to

:05:49. > :05:52.restore both the customer trust, so that they can win new business

:05:53. > :05:57.again, and also basically shift them all the way from making things

:05:58. > :06:00.towards providing services, to create recurring revenue streams

:06:01. > :06:06.that are profitable in the long-term. The cultural shift that

:06:07. > :06:09.is required will take many years to come. What the sale of the memory

:06:10. > :06:13.business gives them is the breathing room to make the necessary reforms,

:06:14. > :06:19.to be much healthier but also to be a much reduced company, compare to

:06:20. > :06:24.the glorious heyday. Thank you for your time, we appreciate it. Just to

:06:25. > :06:28.say, of course, the news is coming out from Toshiba. More details are

:06:29. > :06:29.coming through all the time. We will keep you up-to-date here on World

:06:30. > :06:31.Business Report. Facebook has announced

:06:32. > :06:34.it is launching a new service Users in the US will soon see

:06:35. > :06:39.a new Watch tab that will offer a range of shows, some of which have

:06:40. > :06:43.been funded by the social network. This opens up new revenue potential

:06:44. > :06:46.for both Facebook and programme makers - users can of course expect

:06:47. > :06:49.to see targeted advertising before A global rollout will

:06:50. > :07:11.follow in due course The question is, how concerned are

:07:12. > :07:14.the likes of YouTube? We be discussing that more detail later.

:07:15. > :07:17.The owner of Fox News and Twenty-First Century Fox movie

:07:18. > :07:19.studio looks to have benefited from a Trump bump.

:07:20. > :07:21.Fox said revenues rose by 1.5% to $6.8 billion

:07:22. > :07:25.in the fourth quarter after ratings at its cable TV business improved

:07:26. > :07:28.Fox is owned by media mogul Rupert Murdoch.

:07:29. > :07:32.He is looking to buy the rest of European TV station Sky that it

:07:33. > :07:43.does not already own for $14.5 billion.

:07:44. > :07:47.And now for our latest instalment in our business of birth series that

:07:48. > :07:49.has been running across the BBC all this week.

:07:50. > :07:52.Today we turn Silicon Valley where tech firms like Google

:07:53. > :07:55.and Facebook are leading the way when it comes to offering

:07:56. > :08:01.The US is one of only three countries that doesn't require

:08:02. > :08:07.But President Trump's daughter is trying to convince her father

:08:08. > :08:10.that it needs to be a priority, so is change coming?

:08:11. > :08:20.Our North America tech reporter Dave Lee went to find out.

:08:21. > :08:27.When Eileen decided it was time to have children, she knew that her job

:08:28. > :08:33.in PR for technology companies would become untenable? I have been

:08:34. > :08:37.thinking for a long time about all of the ways that work does not align

:08:38. > :08:41.well with being a professional parent. She decided to set up her

:08:42. > :08:44.own firm and set about putting in place family family policies, the

:08:45. > :08:48.types which most people in this country do not have access to. I

:08:49. > :08:51.decided to be intentional about building a business where we could

:08:52. > :08:55.be our whole selves. The mothers among us have in very clear with the

:08:56. > :08:59.other employees that if they have things they need to per shoe that

:09:00. > :09:04.fall inside of normal work hours, they can prosciutto is also, so that

:09:05. > :09:07.we are not favouring one stage of life over another or penalising

:09:08. > :09:12.anybody in favour of another. -- pursue those also. Raising a child

:09:13. > :09:17.in the US is incredibly difficult and costly. Just 12 cent of rye that

:09:18. > :09:20.sector companies offer paid maternity leave for their employees

:09:21. > :09:24.and the US is one of just three countries in the world not to have a

:09:25. > :09:32.paid rental leave law. There is hope silicon valley could be starting a

:09:33. > :09:35.trend that changes that. Moms Rising campaigns for maternity leave. There

:09:36. > :09:40.has been lots of momentum around tech companies for increasing

:09:41. > :09:43.maternity leave, and in some cases family leave and medical leave as

:09:44. > :09:46.well. It shows that it makes good business sense. These companies

:09:47. > :09:50.would not doing it if it was not good to their bottom lines. That is

:09:51. > :09:56.good for the economy and very good for the individual families and

:09:57. > :09:58.employees. One of those technology companies is GoDaddy, the world's

:09:59. > :10:03.largest seller of internet domain names. The company has faced

:10:04. > :10:07.criticism in the past for being an overly macho workplace, which is

:10:08. > :10:11.prevalent in Silicon Valley. Like lots of other tech companies, we

:10:12. > :10:14.have similar issues. We are trying to resolve those and continue to

:10:15. > :10:18.build an awesome culture where people can do the best work of their

:10:19. > :10:21.lives. Anybody who is a new parent can get 12 weeks off, paid, to go

:10:22. > :10:25.and welcome their new family member. The birthing mother gets an

:10:26. > :10:29.additional six weeks she is able to recover as well physically. Silicon

:10:30. > :10:33.Valley is perhaps best placed to set the example, given the fierce

:10:34. > :10:38.competition for top talent. Progress requires people at the top of the

:10:39. > :10:47.companies to value both successful careers and happy families. I am

:10:48. > :10:54.sure you have a few on the stock get in touch with me on Twitter, and use

:10:55. > :10:58.the hashtag #businessofbirth. There is a real debate about all of that.

:10:59. > :11:07.I will be back in a moment. Stay with us.

:11:08. > :11:11.A widow has spoken of her "shock and horror" after a private GP

:11:12. > :11:13.who treated her late husband admitted failings in the case.

:11:14. > :11:16.Dr Peter Wheeler, who was Princess Diana's doctor,

:11:17. > :11:19.has acknowledged he failed to properly monitor his patient