tv World Business Report BBC News July 18, 2017 5:30am-5:46am BST
this is bbc world news. the headlines: in the us, two more republican senators have said they'll oppose president trump's proposed healthcare bill. it's now impossible for the bill to pass in its current form. three years after malaysian airlines flight, mh17, was shot down over eastern ukraine, the region remains locked in a brutal stalemate. a ceasefire has failed, amid regular skirmishes between rebels who want closer ties to moscow and ukrainian armed forces. forest fires are sweeping towards the croatian coastal city of split. hundreds of firefighters and soldiers are battling the blaze. neighbouring montenegro has also been hit by wildfires, and has asked for international help. venezuela's political crisis has deepened, after voters rejected plans to rewrite the constitution. president trump has said the country will face strong and swift economic action if the controversial plans go ahead. now it's time for world business
report. stronger than a house of cards. netflix wows markets as it surges past 100 million subscribers, potentially sending shares to a record high. and would giving away one thousand euros a month to a person free them up to pursue their passions? we discover how one bold start—up is finding the answer to the question of a universal basic income. welcome to world business report. i'm rachel horne. in a minute, we'll have an update on rio tinto‘s operations. but first: we begin with netflix. the video streaming giant surprised investors overnight with its second quarter earnings. the company added 5.2 million
subscribers in the past three months, boosting its global customer base to 104 million. it's a company whose growth reflects the changing culture of tv viewing habits around the world. since its transformation from a dvd rental service to video streaming ten years ago, the firm's share price has rocketed from just over $3 to more than $160 a share. and netflix is splashing the cash. this year it will spend $6bn on content. that's 25% more than its rival amazon is thought to be spending. it's all in an effort to lure viewers away from traditional tv networks. netflix has been aggressively expanding abroad, and says it is now in more than 190 countries. but with one notable exception, china. in april, the firm agreed a deal to licence its content to one of china's biggest streaming sites which is controlled by baidu. our technology correspondent, dave lee, has more from silicone valley. just about all of netflix's money
comes from its subscribers. it is no wonder when the company updates people on how it is performing, people on how it is performing, people look at the user growth column to see how it is going on. in the last quarter, they added 5.2 million new subscribers, a lot more than million new subscribers, a lot more tha n a nalysts million new subscribers, a lot more than analysts ever expected. most of that has come from overseas were netflix has been investing in non— english programming and huge marketing to spread the word about what they do. they have done well in the us where they added 1 million subscribers in the last three months, almost double what was expected of the company. netflix now has more than 100 million subscribers around the world, making it the leader of the pack in the video streaming market. that can be attributed to original shows like house of cards and oranges new
black, attracting new subscribers. they need to have more shows to continue that, and they will spend $6 billion this year to do just that. joining me is my guest. thank you for coming in in. netflix has been so for coming in in. netflix has been so successful. more than 5 million subscribers in the last three months, beating expectations. how are they doing it? investing in new content and building a great service. they had 30 millionjust content and building a great service. they had 30 million just a few years ago, now they have more than 100 million. it is all about investing. we looked at some of the figures and sought revenue for the quarter was almost $3 billion. 2.8. they are investing a lot more than they are making. they are investing a lot into acquiring content. they
are not making much on the bottom line. they are spending money on cash to get content and are actually losing cash every single quarter. they have the expectation they can double their subscriber base to 2 million. -- 200 million. what will it mean? 50- 3096 profit margin is all the way down to the bottom. if you double that base, it is roughly the same. that will drop to the bottom line. that is the theory. we mentioned china and baidu. it is a market netflix wants to get into. that is scheduled for april. if it is successful, what could that mean? there are 7 million people in china alone. they have 20 million subscribers. it is a big market. netflix is going in through the
backdoor. netflix has not released how much of a cart they would get by licensing to baidu they would get. —— cut. licensing to baidu they would get. -- cut. they also have hollywood quite concerned. they have become frenemies. 0n the one hand they are finding these things, and on the other hand they are competing. they released a movie with brad pitt, both in the movie theatre and at home. it's got banned from cannes this year because they are making films no one wants because they are not actually a movie. they don't go to theatres, they go straight to netflix. cannes wanted to limit that has a contestant. 0k. thank you very much for your time. it's one of the richest countries on earth,
and boasts record—low unemployment. but germany has some systemic problems, including an ageing population, and a lack of entrepreneurship. now, one radical start—up is setting out to change all that, by handing out a basic income of 1000 euros a month to dozens of total strangers, with the hope that it will liberate them to pursue their passions. joe miller reports from karlsbad in south—west germany. when this boy was born, neither of his parents were able to work. translation: i was studying and my boyfriend came from mali so neither of us could work. when our child arrived, we had such big money problems we were wondering what we could do. this was a possibility, the only one. three months later, he became the sole breadwinner, thanks toa became the sole breadwinner, thanks to a radical experiment. the child is one of almost 100 randomly selected people across germany receiving a basic income of 1000
euros a month for a year. thousands are queueing up to be the next recipients. every few weeks, one gets chosen by raffle, sometimes on prime time german tv. the initiative is the brainchild ofjust one young entrepreneur. ten years ago i started my own on line business. after a few years of hard work, it started to work on its own and has changed my life dramatically. i wa nted changed my life dramatically. i wanted to find out if it could help other people. i started the crowd fund money over the internet to raise money to give it to other people as a basic income for one year and see how it affects their lives. the idea of giving everyone a basic income is gaining in popularity around the globe, even winning the endorsement of facebook‘s mark zuckerberg. with election is looming, a newlyformed political party is arguing prosperous germany should introduce
the policy as well. 2596 of workers are working in this sector. basic income would help them a lot, along with society. there is a lot of stigma around poor people which could be resolved. we would foster solidarity in society. valerie has managed to find employment as an interior designer. his dad has learnt german and works locally as well. by the time he grows up, the experiment of his childhood might just become policy. bbc news. 0ther other news now. tesla has added two independent directors to its board, including the boss of 21st century fox, james murdoch. the appointments increase the board size at the electric car and storage company to nine. the move comes amid criticism by some shareholders of a lack of independence on tesla's board. some investors believe that too many of the company's board members have personal or professional ties to boss elon musk.
bnp paribas is the latest in a long line of banks to be hit by a currency—rigging scandal. the french bank hasjust been handed a whopping $216 million dollarfine by america's central bank. it's the latest punishment for traders who allegedly shared information about currency bids without adequate oversight from their banks. the scandal has led to billions of dollars in fines on both sides of the atlantic, having already hit the likes of barclays, rbs, deutsche bank, ubs and jp morgan chase before we go, a quick look at what the markets have been up to. you can see the figures in the asian markets. we have the ftse. the nikkei has opened after a public holiday yesterday. lots of markets reacting to china's figures yesterday. you can get in touch with me on twitter. buying a knife on line
is set to become harder, as new government proposals aim to restrict children getting access to knives. anyone buying a knife on line in england and wales would have to pick it up in person with id, to stop a system where anyone can buy a blade on the internet and have it delivered. here's our home affairs correspondent tom symonds. this is the sharp end of the battle against knife crime in britain. police in birmingham make yet another stop and find yet another nice. without good reason, it is illegal to carry anything bigger than a three inch penknife. —— knife. but this is what police have found in london, including a so—called zombie knife, shown to the
home secretary. why? it is illegal to buy a knife if you are under 18. 16 in scotland. but some young people are getting them delivered. the plan is to change the law so knives purchased have to be picked up knives purchased have to be picked up in person with idea. some types of knives cannot even be sold. —— id. police may even get powers to seize them. we need to give more powers to the police to break the cycle of danger and violence in communities. after all, police reported knife crime has started rising. scotland is already considering the changes proposed today in england and wales. this young man did not suffer a serious injury despite being stabbed, but every knife on the streets can result in at least one life lost.
tom symonds, bbc news. coming up at 6am on breakfast, dan walker and louise minchin will have all the day's news, business and sport. they'll also have more on the duke and duchess of cambridge's visit to poland with their children, george and charlotte. this is bbc news. the latest headlines: in the us, two more republican senators have said they'll oppose president trump's proposed healthcare bill. it's now impossible for the bill to pass in its current form. three years after malaysian airlines flight mh17 was shot down over eastern ukraine, the region remains locked in a brutal stalemate. a ceasefire has failed, amid regular skirmishes between rebels who want closer ties to moscow and ukrainian armed forces. forest fires are sweeping towards the croatian coastal city of split. hundreds of firefighters and soldiers are battling the blaze. neighbouring montenegro has also been hit by wildfires and has asked for international help. venezuela's political crisis has deepened after voters rejected plans to rewrite the constitution. president trump has said the country will face strong and swift economic action if the controversial plans go ahead. now it is time for our
newspaper review. what's making headlines around the world ? let's start with a story on the washington post about us—russia relations. the us paper is reporting that diplomats from both countries met yesterday and chief on their list of concerns were two diplomatic compounds in the us that were seized last year. moving on to the front page of the financial times, where they're running a story about china's poor track record in foreign railway investment. an investigation by the business paper say that their new diplomacy—on—wheels scheme, the new silk road being the most well—known initiative, has been beset with many problems causing project cancellations. staying with the ft, a story on their website about netflix announces that the streaming site's subscriber figures have far exceeded wall street estimations with the number of base subscribers reaching 104 million.
an interesting uk story on the front page of the guardian says that "sexist stereotypes" are going to be banned in adverts here. it's the latest in a crackdown on adverts that critics say promote unhealthy gender expectations. and finally, there on every page of the uk newspapers, prince william, kate and their two children george and charlotte, snapped on their royal tour in poland. of course, many talking of the royals renewed role in post—brexit diplomacy, but most photos like this one focusing on the young prince george. so let's begin. with me is maike currie, investment director at fidelity personal investing thank you for coming in. let's begin with that story in the washington post.