10/08/2017 World Business Report

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Now it's time for World Business Report with Sally.


Deadline day - Toshiba secures an auditors sign off on its much


delayed results and avoids delisting - but analysts warn its future


And Silicon Valley is setting an example when it comes to paid


But will the rest of the country follow?


Also in the programme, Facebook revamps its television offering.


Challenging you choose and other television networks. We will fill


you in on that in just a moment. the mystery over how much money


Toshiba is losing or making The troubled Japanese tech giant


says auditors have signed off its financial results


for the year to the end of March. This comes after months of delays


and should mean Toshiba avoids an immediate delisting from the top


tier of the Tokyo Stock Exchange. It has now been revealed Toshiba


made an 8.8 early in dollars loss. -- 8.8 billion dollars.


So what's gone wrong for the 140-year-old Japanese giant?


Well, two years ago an accounting scandal was revealed that


led to the resignation of several members of the firm's senior


At the time company was found to have inflated the previous seven


years profits by a massive $1.2 billion.


Problems came to a head again this year, when Toshiba's US nuclear


unit, Westinghouse was forced to file for bankruptcy protection


after suffering a $13 billion cost overrun.


As you can imagine its proving pretty difficult to find a buyer


for Westinghouse - so Toshiba has yet to confirm any interest.


So in a desperate move Toshiba is forced to put up


This is a major part of its business, that makes memory


Analysts have valued it at about $18 billion.


All of this has taken its toll on the company's share price,


which has effectively halved, and in April Toshiba actually warned


Joining us now from Tokyo is Damian Thong, tech analyst


Good to see you. Give us your reaction to the news we have heard


today, this loss of 8.8 billion dollars. How bad is that, or is it


in line with what people were expecting? I think the market is


looking forward. The losses, in many ways, are a thing of the past. It is


important to know what they were, but what the market really wants to


know is whether they can sell the memory business in time to avoid the


listing at the end of the fiscal year. We will see that in the first


quarter results. The memory business is going through a phenomenal


period, profits are through the roof. If you look at the four-year


guidance that has been given, basically all the profits for


Toshiba are in the memory business. If this is not the time to sell for


good value, then in some sense, the chances of Toshiba being able to


afford to be nuclear liabilities in its future restructuring will be


severely diminished. Everything hangs on the sale of the memory


business. How is that a sale going? Given that sell got in trouble with


various parts of Toshiba. -- that sale. That is right. Toshiba's


long-standing partner is opposed to a disposal. And there are issues


such as anti-trust hurdles that Toshiba would have to cross with the


sale. The time, the window for this to happen, is getting rather short.


If they do not clear the sale by the end of this fiscal year, which ends


in March, the Tokyo stock exchange will be put in a situation where


Toshiba will be in breach of the rules and they would have to look at


the delisting criteria. Financial solvency is not the issue. However,


it will still be able to certainly the prestige of the company, and


also, I certainly think it could lead to further issues in the


sequencing of future reforms. Getting the deal done to sell memory


will wobbly have to be done sometime in the next one or two months. --


probably. Let's assume they successfully sell the memory chip


unit, which is worth a locked and is doing extremely well. What is left


of Toshiba, if it sells that unit? You speak about restructuring and


dealing with the Westinghouse loss. But what is left for Toshiba? It


will be a very reduced company. In many ways, it will be focused on the


old economy, including things like thermal power, as well as some of


its old industrial businesses, like industrial motors, and selling


freight locomotives. Certainly I think they will probably have to


restore both the customer trust, so that they can win new business


again, and also basically shift them all the way from making things


towards providing services, to create recurring revenue streams


that are profitable in the long-term. The cultural shift that


is required will take many years to come. What the sale of the memory


business gives them is the breathing room to make the necessary reforms,


to be much healthier but also to be a much reduced company, compare to


the glorious heyday. Thank you for your time, we appreciate it. Just to


say, of course, the news is coming out from Toshiba. More details are


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


Business Report. Facebook has announced


it is launching a new service Users in the US will soon see


a new Watch tab that will offer a range of shows, some of which have


been funded by the social network. This opens up new revenue potential


for both Facebook and programme makers - users can of course expect


to see targeted advertising before A global rollout will


follow in due course The question is, how concerned are


the likes of YouTube? We be discussing that more detail later.


The owner of Fox News and Twenty-First Century Fox movie


studio looks to have benefited from a Trump bump.


Fox said revenues rose by 1.5% to $6.8 billion


in the fourth quarter after ratings at its cable TV business improved


Fox is owned by media mogul Rupert Murdoch.


He is looking to buy the rest of European TV station Sky that it


does not already own for $14.5 billion.


And now for our latest instalment in our business of birth series that


has been running across the BBC all this week.


Today we turn Silicon Valley where tech firms like Google


and Facebook are leading the way when it comes to offering


The US is one of only three countries that doesn't require


But President Trump's daughter is trying to convince her father


that it needs to be a priority, so is change coming?


Our North America tech reporter Dave Lee went to find out.


When Eileen decided it was time to have children, she knew that her job


in PR for technology companies would become untenable? I have been


thinking for a long time about all of the ways that work does not align


well with being a professional parent. She decided to set up her


own firm and set about putting in place family family policies, the


types which most people in this country do not have access to. I


decided to be intentional about building a business where we could


be our whole selves. The mothers among us have in very clear with the


other employees that if they have things they need to per shoe that


fall inside of normal work hours, they can prosciutto is also, so that


we are not favouring one stage of life over another or penalising


anybody in favour of another. -- pursue those also. Raising a child


in the US is incredibly difficult and costly. Just 12 cent of rye that


sector companies offer paid maternity leave for their employees


and the US is one of just three countries in the world not to have a


paid rental leave law. There is hope silicon valley could be starting a


trend that changes that. Moms Rising campaigns for maternity leave. There


has been lots of momentum around tech companies for increasing


maternity leave, and in some cases family leave and medical leave as


well. It shows that it makes good business sense. These companies


would not doing it if it was not good to their bottom lines. That is


good for the economy and very good for the individual families and


employees. One of those technology companies is GoDaddy, the world's


largest seller of internet domain names. The company has faced


criticism in the past for being an overly macho workplace, which is


prevalent in Silicon Valley. Like lots of other tech companies, we


have similar issues. We are trying to resolve those and continue to


build an awesome culture where people can do the best work of their


lives. Anybody who is a new parent can get 12 weeks off, paid, to go


and welcome their new family member. The birthing mother gets an


additional six weeks she is able to recover as well physically. Silicon


Valley is perhaps best placed to set the example, given the fierce


competition for top talent. Progress requires people at the top of the


companies to value both successful careers and happy families. I am


sure you have a few on the stock get in touch with me on Twitter, and use


the hashtag #businessofbirth. There is a real debate about all of that.


I will be back in a moment. Stay with us.


A widow has spoken of her "shock and horror" after a private GP


who treated her late husband admitted failings in the case.


Dr Peter Wheeler, who was Princess Diana's doctor,


has acknowledged he failed to properly monitor his patient