Skip to main content

tv   Business Briefing  BBC News  July 17, 2018 5:30am-5:46am BST

5:30 am
this is the business briefing. i'm sally bundock. the crown has slipped shares in netflix plunge in after—hours trade, as the streaming giant disappoints, adding fewer new users than expected. as the biggest aerospace show kicks off here in the uk, we talk to the boss of qatar airways who says the us is on qatar's side amid the blockade by saudi arabia. and on the markets the japanese yen slipped boosting stocks in tokyo but elsewhere in asia share markets are slipping as some companies disappoint with their earnings. shares in netflix have plunged in after hours trade after the firm reported dissapointing levels of user growth. in the three months tojune netflix added 5.2—million
5:31 am
subscribers, well short of its own forecast of 6.2—million. netflix described the performance as strong but not stellar. its total number of users globally now stands at 130—million. the fall in share price follows a run for the stock since it has more than doubled so far this year, closing last night at just over $400 a share. tim mulligan is a senior analyst and research director at midia research. talk us through what netflix had to say. it was a 14% drop? what we talk us through what netflix had to say. it was a 1496 drop? what we are seeing here is wall street having particularly strong anticipated performance for one of the founders
5:32 am
of the group comprising of facebook, google, amazon and netflix. the stock has doubled. what we are seeing is a return to normalisation of expectations the netflix. if you look at what they have achieved in the 21 years... is it 21 years? 1997. they have only been a streaming video first company in the last few years. they have gone from being a dvd rental business 11 years ago, focused primarily in the us, to 110w ago, focused primarily in the us, to now being as global subscription and video demand market with 20% of the global market. but it is not met its own targets when it comes to new subscribers. we are seeing the drop—off in the us. have they
5:33 am
reached saturation point? clearly, there is limited continued room for growth. even though we are talking about is the underperforming of their domestic growth, they still added 700,000 subscribers in the last two months. april, may, june, some argued the world cup might have had an impact on netflix. absolutely service —— strategic subscribing and unsubscribing happens. savvy subscript is choose to subscribe or unsubscribe based on the content. you have given me a new phrase this morning. the savvy switcher. i wish i was one of those, i'm definitely
5:34 am
not. we will discuss it more in a news briefing as well. the global aviation industry is gathering at the farnborough air show here in the uk. it's the biggest aerospace event of the year. our very own aaron heslehurst has been speaking with the boss of qatar airways about the saudi—led blockade on the arab kingdom. he asked about its impact on the airline and what president trump thinks of the dispute. 19 roads to be precise are blockaded and we added 21 new roads and we already have announced several more, as much as 15 new roads, in the next several months which, any other airline would have collapsed under this blockade that we persevered and we grow and we showed the world that when there is determination, you will always succeed in what you want to do. but you have taken a hit by it because you have recently announced a fairly hefty loss,
5:35 am
haven't you? we haven't announced that we will announce in the next month or so. the exact figure we will be losing. the airline has provided for this kind of scenario. every business has to take a hit from time to time but what is important is that we, as an airline, are growing and expanding and we are buying more aeroplanes which we did just this morning. where does washington, the trump administration, stand in all of this in terms of the blockade? the trump administration is with qatar. they realised they were duped into believing that qatar is doing what they were accused of doing and the administration is absolutely behind us administration is absolutely behind us and have realised that qatar is an airline, a peaceloving nation, and part of the anti— terror
5:36 am
grouping that has been found and are led by the united states and qatar is the only signatory to anti— money laundering, anti terrorist funding agreement with the united states. have you asked the trump administration if they can then turn to the saudis and the united emirates to apply pressure?” to the saudis and the united emirates to apply pressure? i am not a politician, iam emirates to apply pressure? i am not a politician, i am the ceo of an airline but yes, my government has banned pompeo has already mentioned __ my banned pompeo has already mentioned —— my government has. pompeo has already mentioned. the eu is due to sign a new free—trade deal with japan later today. the pact will remove almost all tariffs with the eu saying it is the largest deal it has ever negotiated. rupert wingfield—hayes is in tokyo. it sounds impressive. is it? young,
5:37 am
it isa it sounds impressive. is it? young, it is a big dealforjapan and the eu because these are big economies. european union has 500 million consumers in japan has 126 european union has 500 million consumers injapan has 126 million consumers. japan is the second—biggest economy in the world -- third second—biggest economy in the world —— third biggest. it is certainly significant. of course, it is not a big deal as if the united states and europe did it also, there is a political message being sent by japan in europe in this agreement, to the united states, to say, look, we will push ahead with free trade regardless of what president trump and his administration are doing in the opposite direction. certainly forjapan, it lost the opposite direction. certainly for japan, it lost the the opposite direction. certainly forjapan, it lost the us from the trans—pacific forjapan, it lost the us from the tra ns—pacific partnership two forjapan, it lost the us from the trans—pacific partnership two years ago, or1.5 years trans—pacific partnership two years ago, or 1.5 years ago, when president trump pulled out so this is the consolation prize forjapan but you know, a decent one. and interesting, for the eu and japan to
5:38 am
doa interesting, for the eu and japan to do a deal with this —— to do a deal like this. japan has factories in the uk, nissan, car companies, like this. japan has factories in the uk, nissan, carcompanies, in the uk, nissan, carcompanies, in the meantime, the eu is getting closer to japan. young, this is something that should worry manufacturers oi’ something that should worry manufacturers or at least the government politicians in the uk. —— yeah. they are essentially leaving an economic bloc that is not only significant for uk exports to the eu but is it significant forjapanese manufacturers because after this agreement, if the eu uk leaves the eu and does not sign a similar agreement with japan and a similar agreement with japan and a similar agreement with japan and a similar agreement with the eu, it really risks falling out of this trading area and japanese manufacturers will have the alternative then of exporting directly to the eu with no
5:39 am
ta riffs exporting directly to the eu with no tariffs or moving their manufacturing from the uk to elsewhere in the eu. interesting times. thanks, rupert. all correspondence in tokyo. —— our correspondent. now let's brief you on some other business stories. many shoppers in the us and elsewhere are struggling to access amazon's website as one of its biggest annual sales gets underway. many users report the site either crashes or is showing an error message. amazon says it is working to resolve the issues. shares in the electric car company tesla have fallen after its chief executive directed abuse on twitter at one of the british cave divers who helped to rescue 12 thai children last week. shares fell 2.75% after elon musk referred to the british diver as a pedophile. the diver is considering legal action. the uk government has narrowly avoided defeat on its customs bill after agreeing to brexiteers' demands to change its wording. the bill survived byjust three votes following a backlash from pro—eu politicians who accuse the prime minister of caving into demands by eurosceptic mps. that's it for
5:40 am
the business briefing this hour. but before we go, here are the markets. yesterday, a public holiday so no action in tokyo but you can see a difference in how things are going because we have japan up over 1% and hong kong down 1%. a mixed day in merging in asia. corporate earnings are playing a part in that. up next, newsbriefing. the number of secondary school—aged children in england and wales who've
5:41 am
received private tuition in the last year has more than doubled over a decade. it's now 360,000, according to data from the charity the sutton trust. that's just over one in every ten children. but there's no legal requirement for tutors to have criminal record checks. a labour mp is pushing for a change in the law. dave edwards reports. dividing fractions. this is a private jewish and dividing fractions. this is a privatejewish and centre in centre in wetherby in west yorkshire. one small part of a growing industry. —— tuition centre. it helps me a lot in school. i like coming here. the staff here have all passed a cheque which looks for criminal records and makes sure they haven't been banned with working with children. —— banned from working with children. at those cheques are not compulsory for private tutors. we are trusting oui’ for private tutors. we are trusting our children's care with professionals and i would expect them to have those of standard
5:42 am
checks will stop inmate, birmingham —based private shootout was jailed for five years for abusing two girls during lessons. police said he may have tutored hundreds of children. we asked the government for an interview. they declined but they did send us a statement. it says if pa rents did send us a statement. it says if parents decide to employ a private tutor for their children, they should assure themselves of a tutor‘s suitability beforehand. but a labourmp is tutor‘s suitability beforehand. but a labour mp is campaigning for background checks to be made mandatory. anybody could turn up as a tutor and perpetrators of abuse could well use it as a mechanism to reaching their victims. but with no government plans to change the law, is down to parents to decide who comes into contact with their children. thinking their safety is well as their education. dave edwards, bbc news. this is the briefing from bbc news.
5:43 am
the latest headlines — russia's president says the claims that his country tried to influence the us election are "ridiculous." prime minister theresa may narrowly wins a series of votes in the uk's parliament on her brexit policy. a boat carrying tourists to view hawaii's erupting volcano, mount kilauea, is struck by molten lava. now, it's time to look at the stories that are making the headlines in the media across the world. we begin with the moscow times' take on the trump putin summit. the article looks at president trump's denial of russian meddling in the 2016 election, highlighting trump said not a single critical word about russia on any of the issues that've brought relations between washington and moscow to a post—cold war low. let's look at uk paper the mirror, and this story from overnight, a fresh parliamentary battle over
5:44 am
brexit for theresa may today after being forced into a major climbdown over amendments to the customs bill. looking at bloomberg and plunging netflix stocks. what's the reason for the slowdown? analysts say it could be the company's spending spree on new content or potential customers may have been distracted by the world cup. staying with football, or soccer as it's called in australia, the sydney morning herald has the story on the world's fastest man starting a trial with australian a—league team the central coast mariners. and finally on the bbc website, the uk heatwave doesn't look to be disappearing anytime soon, it's here for weeks, but what is appearing are remains of prehistoric features. they're normally kept hidden by lush grass and crops with the help
5:45 am
of yellowing fields and drones the ghost images are coming to the surface. so let's begin. with me is james hughes a chief market analyst from brokerage firm axi trader. let's get stuck in. everyone is trying to make sense of the extraordinary summit yesterday between president trump, president putin, that press conference. they have done interviews with television broadcasters. moscow says, goes on trump's alignment with russia and not with the us intelligence services, saying there is no reason to believe rougher hacks the us election. the


info Stream Only

Uploaded by TV Archive on