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tv   Business Briefing  BBC News  November 2, 2017 5:30am-5:46am GMT

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this is business briefing. i'm sally bundock. more cash and more controversy. facebook unveils record profits and vows to keep a closer eye on its content. plus, the new face of the fed. he's set to be the world's most powerful central banker, but willjerome powell carry on where janet yellen left off? and here are the markets. asian shares are higher after the fed kept interest rates unchanged and said the us economy is growing at a "solid pace" despite hurricanes harvey and irma. but some are tiring, and we will explain why that is. we start with the world's biggest social network. it keeps getting bigger, more profitable, and more controversial. facebook has announced record profits and another big jump in the number of people using it.
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that will only fuel the debate about about the power of the network and the content that appears on it. let's show you some of the details. facebook made profits of $4.71 billion in the three months to september, up 80% on the same time last year, as advertisers spend ever more cash. well over two billion people log onto facebook at least once a month, more than a quarter of the world's population. it's up 16% over the past year. with this vast reach of course comes growing scrutiny, for example, over its role in the us election. earlier in the day, facebook admitted to a congressional hearing that political content originating from russia was seen by 126 million people, a huge chunk of the electorate. its chief lawyer said the company was sorry and would learn from its mistakes. none of this has put investors off. facebook‘s share price has hit new record highs this week, valuing the company
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at over $530 billion. it pains us as a company, it pains me personally to see that we were... ..that our platform was abused in this way. people in this country care deeply and what about issues of public concern and it's one of the strengths of our country that people are so willing to speak freely about them. the fact that foreign actors were able to use our platform to exploit that openness, is a deeply painful lesson for us, and one we are focused on learning from going forward. he said deeply painful many times. with me is james erskine, the director of social media marketing consultancy, social circle. it is nice to see you. it is an interesting day. facebook coming out with strong robust earnings, going strength to strength, and yet we hear the lawyer saying how deeply
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painful it is. what do you make of it? it is funny you talk about facebook as being controversial, even though it is the old timer of social media. you mentioned many numbers. a few more fascinate me. one is 6 million advertisers are currently live on the facebook platform. it stands to reason why it is profitable. in order to understand where it is going in the future, you have to look at its past. it is part of the duopoly. revenue goes to facebook or google. it is quite predatory, at least in the past. classified advertising is going that way. another thing is look at the acquisition. instagram in 2012. it does what it is doing in a business sense. in a content
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sense, that is where it is coming under close scrutiny. that is an exciting challenge. exciting, or a big headache? how does it police itself and how does it do that effectively enough so it is not regulated via another authority? effectively enough so it is not regulated via another authority7m is really tough, that is what with a first. it has always had a position where it is a platform. we work with creators around the world to look at how they make use of different social networks. that is what we do. we see how people engage on facebook. but how does it police itself? the first line of its statement around results were about increasing another 10,000 journalists. we have to look at new products as well. they very cleverly have new products around creators and video. now it is specifically a mission in its own video content. so
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i think it has more shaky ground to stand on. despite efforts, do you think it will be regulated anyway. and not just think it will be regulated anyway. and notjust facebook, google and twitter? it will be tough to regulate it because of the incredible amount of traffic. if it democratises, it will be strong enough to say it is up to the community to police it. whether you agree or not that, that is another question. thank you for your time this morning. we will dig into that during the newspaper talk. and now we will stay with the us. later today, president trump will name the successor to janet yellen as head of the us federal reserve when her term ends in february. several reports say he has settled onjerome powell , a current fed governor. and as michelle fleury reports, that will mean continuity. a new man at the federal reserve
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will be seen as representing continuity with outgoing chairjanet yellen. that should calm anyjitters from investors who more than anything want stability, as they hate unexpected change. jerome powell is widely assumed to have if you are similarto powell is widely assumed to have if you are similar to janet yellen‘s. things should be the same, needing more gradual rate rises and a winding down of the federal reserve asset pile which it accumulated in an economy ravaged by the financial crisis. what is less clear is whetherjerome powell will have the same approach to the other big job of regulation. he spoke in favour of loosening rules for the banks put in place after the crisis by the bank. what is unknown is how he will manage relations with the president about to appoint him. that is michelle fleury who was extremely
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busy right now. that nomination news is expected to come before donald trump goes to asia. he has the big trip. he will go to china. china ahead of that is taking steps to boost for imports. we will speak to rico hizon. what has china announced ahead of his arrival? six days to go before donald trump arrives in beijing. china is making some moves to appease donald trump! beijing will be lowering tariffs when importing consumer products and stepping up banking finance for imports. details of what products are affected are not provided. by china, as everyone knows, it has a vast trade surplus and has been accused of countries like the us of protecting domestic companies with unfair trade practices like high import tariffs. today, donald trump
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called the trade deficit between the two countries embarrassing. he also described the trade gap as horrible. official figures reveal america described the trade gap as horrible. officialfigures reveal america has imported four times the amount of goods from china banned exports, so far this year at least the pit hopefully. —— hopefully he will be appeased. thank you. now, let's brief you some other business stories. the bank of england is set to deliver one of the most closely watched interest rate decisions since the financial crisis. economists and investors are expecting the first increase in a decade, taking the main interest rate to 0.5% from its record low of 0.25%. president trump will outline his long—awaited tax reform proposals in washington later. he has promised to cut corporate and personal taxes to boost the economy. critics have said
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the reforms will largely benefit big business and the wealthy. so, what is trending in business news this morning? well, popular on quartz media is the story that tesla has made its biggest ever quarterly loss, and it has delivered far fewer of its new model three cars than it had predicted. is the magic of elon musk fading? on the financial times twitter feed, a study that claims the global gender gap has widened in the past decade and will take 100 years to close. and this one is causing a storm on twitter. the ceo of pizza chain, papa john's, berating the american football governing body for not "showing leadership" over player protests, because it has hit pizza sales! and don't forget, let us know what you are spotting on line. use the hashtag #bbcthebriefing. and now for the markets. this
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trading session in asia is ahead of the central bank day as far as the uk and the united states is concerned. that is a look at the dow jones the night before. apple earnings as well. facebook shares are up 5% in after hours trade on wall street. next, we will take you through the stories making headlines in global media, including an analysis of donald trump's reaction ahead of the deadly terror attack in new york. that is coming up. we will see you soon. there's been a sharp decline in the number of nurses from the european union
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wanting to work in the uk. the nursing and midwifery council says comparing this year with last, there has been almost a 90% drop in new registrations. more midwives and nurses are leaving the register than joining it, new figures show. this continues a trend first identified in july. the government said it represented a minuscule decrease in overall staffing numbers. around one in every 20 nurses and midwives working in the uk was trained in the eu. many are from spain, portugal, poland, and romania. according to new figures, numbers are declining. the regulator, the mmc, says more than 10,000 joined the uk register until 2015. that fell dramatically to around 1000 this year. the number of eu nurses working here already who decided to give up uk registration rose by 67%. clearly, it is a worrying trend. for those responsible for thinking about what
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we need in the future, nurses and midwives we need in the future to ca re midwives we need in the future to care for us, they will look at this and think what can we do to reverse that trend? really difficult to speculate as to reasons why. the figures add to previous evidence pointing to a significant reduction in the number of eu nurses keen to work in the uk since the eu referendum. the royal college of nursing has described the figures as alarming, and estimated the nhs should have at least 40,000 nurses. the government said it is making sure the nhs has the staff it needs for a 25% increase in nurse training places. sophie hutchinson, bbc news. more on that story on breakfast, along with the news, business, and sport. and the programme has some safety tips on how to remain safe during these events. this is the briefing from bbc news. the latest headlines:
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the uzbek immigrant accused of the new york city truck attack that killed eight people on tuesday has appeared in court on terrorism charges. president trump has criticised the american justice system for terrorism suspects, calling it "a joke and a laughing stock". several ousted catalan government ministers are due to appear at spain's high court in the next few hours to face charges over the region's disputed independence referendum. in the business news, facebook has unveiled an 80% rise in profits but warned that investments in online security would "impact" future earnings. various lots of analysis online, including that look at the trip that we have mentioned so far of donald trump going to asia. what is as you
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wa nt trump going to asia. what is as you want from donald trump at the moment? this analysis takes a look. if you are interested in what he's doing next week, look that later. now, at the stories making the media around the world. we start with africa's daily news. —— daily news. and us president trump who said he will terminate the green card lottery programmes that helped sayfullo saipov, the suspect in the new york terror attack, come to america. and there's an opinion piece in the guardian which criticises president trump for his politicised reaction to the new york attack by targeting democrat chuck schumer for helping create the "diversity visa" programme. let's look at some of the other stories. we will quickly talk you through those, we are struggling
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with our graphics. the ft says jay powell is expected to be the president's nominee to chair the us federal reserve. that will be in february next year, if that is in place. also in the ft, oil has rallied above $60 a barrel. and finally the atlantic asks whether social media giant facebook has in fact become too big and ubiquitous for the company to be able to effectively control itself. well, let's welcome back cordelia. she has


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