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tv   Business Briefing  BBC News  January 4, 2018 5:30am-5:46am GMT

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this is business briefing. i'm sally bundock. revenue stream. music giant spotify cues up a new york stock market listing — that could see it valued at 20 billion dollars plus — inflation and stagnation. iran declares victory over the protestors but their economic grievances have not gone away. and on the markets, asian stocks are headed forfresh historic highs with japan up nearly 2% following new records on wall street. we start with the fast—growing world of internet music streaming. it has soared in popularity over the past year — and soon investors could have the chance to cash in. according to a string of reports — the world's most popular music service spotify has applied to list
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on the new york stock exchange in the next few months. the company was valued at almost 20 billion dollars last year. but there are some big question marks — as samira hussain in new york explains spotify is the world's biggest music streaming company, ahead of rivals like amazon and apple. for months there have been rumours about its aspirations to go public. founded in sweden, the firm has over 140 million active users but it has continued to report losses. the road ahead for the music streaming service seems a little clearer. although spotify has declined to comment, reports suggest it wishes to start trading on the first three months of this year. spotify is taking an unusual route, selling shares directly to market rather than using an investment bank to underwrite the shares. that could mean choppy beginnings for the company as it may take a while for spotify
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to find its value. the timing is unfortunate as spotify has been slapped with a $1.6 billion lawsuit for infringing on some legal rights. as soon as we get more news about spotify‘s plans we will update you. let's go to iran now — where the head of the revolutionary guards has declared the defeat of sedition in the country. he's referring of course to a wave of anti—government protests which began last week. but the economic issues behind them haven't gone away. this is iran's economic growth rate over the past decade. you can see how it has struggled because of international sanctions — and then been boosted since the deal over iran's nuclear programme the problem is many people have yet to feel the benefit. according to a bbc persian investigation,
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living standards have fallen sharply over the last decade with the average household budget down to $12,500. france—based tv presenter sanam shantyaei hasjust returned from iran — which she has covered over the past decade. she told the bbc the economy is the main grievance for many people. i have always observed in a run that because we had the revolution, because we had the revolution, because we had the revolution, because we have already had that instability in addition with the war with iraq and years of sanctions that have broken the country's economy, the one thing that iranians are united in the fact that if the economy continues to deteriorate and your average taxi driver or teacher can not put a piece of bread on the table, that is what will bring them to the streets. that is something that the administration and the
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a nalyst that the administration and the analyst as saying that the administration needs to bring to a recovery point. dr parvin alizadeh, is lecturer in economics at boston university, based here in london. you are from iran. you heard that comment and you must be watching closely what has been happening in the last week. what is your perspective. even if the country has a relatively large young population. 60% of the population of the 30 yea rs 60% of the population of the 30 years old. unemployment is rife for that population, i2.5%. the young population, over 25%. it that population, i2.5%. the young population, over25%. it was that population, i2.5%. the young population, over 25%. it was hoped that the removal of sanctions would lead to economic prosperity, particularly with a quick rise in employment. the banking sector in
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iran has prevented this from happening. for decades it has been behind sanctions and outside the globalfinancial behind sanctions and outside the global financial market. for that reason it has not operated... it has not been operated transparently. the operation is opaque. that led to a lot of bad debt, especially under populist policies. as you say, the banking sector and the financial system a re not banking sector and the financial system are not getting up to speed and that has held the iranian economy back. is it realistic, anyway, for anyone to think the economy would bounce back quickly in terms of people feeling economic benefits of sanctions being lifted. the expectation has probably been too high. but because unemployment
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is very high and at the same time the government of the moment is implementing subsidy reforms which implies that the rise of a lot of basic items gas, eggs, petroleum, bread etc, they are all rising. because this reform means people pay higher prices of these commodities. we are running out of time but there isa we are running out of time but there is a lot to discuss. what do you think will happen next in terms of what the president will do? he must be taking note of the protest is over the last week and the fact that people are frustrated.” over the last week and the fact that people are frustrated. i think the government is actively involved in the form of the banking sector. a p pa re ntly the form of the banking sector. apparently the president has said that it apparently the president has said thatitis apparently the president has said that it is the biggest challenge he faces. is actively trying to change
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the financial sector but it is not easy. like we said it is a short space of time in the banking sector is riven with bad loans. again, we have a lot more analysis on our website. we must mention intel of course. intel has confirmed reports by security experts that a feature in its chips has left most computers made over the past decade vulnerable to hacking. the news sent intel shares down sharply in new york. but intel says the vulnerability is not limited to its products and denies it is a flaw or a bug. it says it is working on an industry—wide approach to resolve the issue — and in the meantime users should make sure their software is up—to—date. go to your operating system provider or your manufacturer, ask for the latest software update and use it. they say that, you know, there were reports that this could cause some
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systems to close down. intel says that that should not happen. it depends on how much you use your computer, what you use on your computer, what you use on your computer, but it should not slow your system down. essentially we are asking you to find your latest update and download it. the price of oil has continued to rise in asian trade. prices are now at levels not seen since the start of the commodity slump in 2014/2015. so what's driving them? let's go to singapore where rico hizon is following the story lovely to see you. prices are heading north. i can hear those in saudi arabia and venezuela, places like that are cheering right now. what is going on? when you speak with oil analyst they say that markets are tightening right now amid the political tensions in iran and the ongoing opec
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amid the political tensions in iran and the ongoing 0pec led production car. freezing weather in the united states has also stimulated short—term demand especially for heating oil. these factors push oil prices to 2.5 year highs. bullish asian that's also support market —— prices to big in asian trading, us west texas futures are up by 1%, above $62 a barrel and the international benchmark for oil prices is at $68 a barrel. we will keep a close eye on that. thank you. now let's brief you on some other business stories. electric car maker tesla has again pushed back production targets for its mass—market model 3. tesla now says it will hit 5000 cars per week at the end of the second quarter — instead of at the end of the first quarter. but it's claiming "major progress" overcoming manufacturing problems that have hampered the vehicle's rollout.
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a turkish banker has been convicted in new york over a massive scheme to help iran evade us sanctions. a jury found mehmet hakan atilla, deputy chief executive of turkish state—controlled lender halkbank, guilty of five counts of bank fraud and conspiracy. the investigation has strained diplomatic ties between ankara and washington. premier league leaders manchester city have more financial firepower than any other club in world football, according to a new ranking by event organiser soccerex. manchester city is owned by multi—billionaire sheikh mansour, a member of abu dhabi's ruling family, who has invested heavily in the team since he took it over almost a decade ago. and now, what's trending in the business news this morning. from business insider — intel was aware of chip vulnerability when its ceo sold off $24 million in company stock
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dear me, perhaps somebody is hacking our system. you can imagine, that story is trending all over the place. i imagine many of you are concerned. 0ur place. i imagine many of you are concerned. our technology can respondents are all over it and you can find out a lot more about it on our website. and here are the market with a good session in asia. looking now at the next board. we mention the price of oil rising so let's quickly look at the next green... can we? yes. regan. look at that price of oil. $68.11. news briefing is coming up in a second and we will see you shortly. first 2017 was a great year for the
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music industry across the uk. the amount of music were purchased, streams and downloaded rose at its fastest rate since the 1990s. not just digital downloads, there has been a revival in vinyl as well. 2018 is set to be big for francis lung, releasing his first album on manchester's buzzing music scene. because of the internet, he doesn't need the backing of a big label to be heard. i've got the power to put it on line immediately and everybody that is waiting for it can hear it. whereas before, i would have to wait for someone to give me permission, wait for somebody to tell me that it's good enough for other people to hear. last year we streamed more music than ever,
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68 billion songs, the equivalent of more than 1,00 each. father christmas brought it, and that's elbow... perhaps more surprising is how the tables have turned with vinyl records, as some who'd flirted with digital returned to their first love. just the beauty of having the record in your hand, vinyl sales were up an astonishing 26% on the year before with four million records sold. today's news is encouraging for studios like this one in manchester, which is home to a small record label, but there's still what is termed a value gap. that is a disparity between the amount of music that's being listened to and the amount of money that that's generating for the industry. but our willingness to spend more on music as times get tighter does give the industry a little something to dance about. nina warhurst, bbc news, in manchester. with spotify possibly listing on
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market soon we asked the your views. many of you have been in trust. some say they love streaming but there cds and finals are loved far more. —— vinyls. this is the breathing and here are the headlines. winter storms that have swept across europe have claimed lives, cut power and caused chaos for commuters and coastline communities. donald trump has said his former chief strategist has lost his mind — the president's response to reports that steve bannon has accused mr trump's son, donald jr, and his son—in—law, jared kushner, of treason. australia's air accident — investigators are trying to raise the seaplane, which crashed near sydney on new year. now it is time look at the stories that are making the headlines in media across the world.
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we begin with the new york times, and donald trump, who excommunicated his former chief strategist, steve bannon, after the latter made caustic comments about the president and his family to the author of a new book. the new york times all over that story. let's have a look at another perspective on that in the us media. fox news focused on donald trumer, who fired back at the remarks made by bannon by calling him "an opportunist" who brought "backstabbing, harassing and lying" to the white house. 0 nto 0nto other stories here in the uk.


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