10/08/2017 World Business Report


10/08/2017

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


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Transcript


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

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

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delayed results and avoids delisting - but analysts warn its future

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

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But will the rest of the country follow?

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Also in the programme, Facebook revamps its television offering.

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Challenging you choose and other television networks. We will fill

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

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Toshiba is losing or making The troubled Japanese tech giant

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says auditors have signed off its financial results

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

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and should mean Toshiba avoids an immediate delisting from the top

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

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

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

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Well, two years ago an accounting scandal was revealed that

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

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

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years profits by a massive $1.2 billion.

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

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unit, Westinghouse was forced to file for bankruptcy protection

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after suffering a $13 billion cost overrun.

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

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

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So in a desperate move Toshiba is forced to put up

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

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Analysts have valued it at about $18 billion.

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

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which has effectively halved, and in April Toshiba actually warned

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Joining us now from Tokyo is Damian Thong, tech analyst

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

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

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

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

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

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

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

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quarter results. The memory business is going through a phenomenal

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

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guidance that has been given, basically all the profits for

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

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

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afford to be nuclear liabilities in its future restructuring will be

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severely diminished. Everything hangs on the sale of the memory

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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its old industrial businesses, like industrial motors, and selling

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freight locomotives. Certainly I think they will probably have to

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

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

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towards providing services, to create recurring revenue streams

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

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

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

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

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

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

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

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Business Report. Facebook has announced

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

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

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

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

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to see targeted advertising before A global rollout will

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follow in due course The question is, how concerned are

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

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

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studio looks to have benefited from a Trump bump.

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Fox said revenues rose by 1.5% to $6.8 billion

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

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Fox is owned by media mogul Rupert Murdoch.

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

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does not already own for $14.5 billion.

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

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has been running across the BBC all this week.

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Today we turn Silicon Valley where tech firms like Google

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and Facebook are leading the way when it comes to offering

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

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

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

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

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

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

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

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

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

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

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decided to be intentional about building a business where we could

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

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

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

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

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

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

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sector companies offer paid maternity leave for their employees

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

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

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

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has been lots of momentum around tech companies for increasing

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

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

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

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

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

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largest seller of internet domain names. The company has faced

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

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

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

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

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

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

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

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

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

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

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

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

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

:10:59.:11:07.

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

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who treated her late husband admitted failings in the case.

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

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has acknowledged he failed to properly monitor his patient

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