tv World Business Report BBC News April 28, 2017 5:30am-5:46am BST
this is bbc world news, the headlines. president trump has warned that a major conflict could break out with north korea over its nuclear and missile programmes. he said he'd prefer a diplomatic outcome to the dispute —— that would be very difficult to achieve. marine le pen has vowed to tackle terrorism — and make the security of france a priority — on the campaign trail in the southern city of nice. little more than a week before the presidential election, polls suggest emmanuel macron‘s lead is shrinking. protestors have stormed macedonia's parliament — attacking politicians — in protest at the election of an ethnic albanian as speaker. police used stun grenades inside the parliament building to bring chaotic scenes under control. facebook is introducing new security to try to combat ‘fake news‘. the social network says it has uncovered co—ordinated operations to influence last year's presidential election in the us, by spreading disinformation. now it's time for world business report. raking in the billions —
another huge quarter for silicon valley‘s tech titans. but can the likes of google and amazon keep on growing? plus, consumer confidence up, business confidence up — stock markets up. how long can the trump bump last? we take stock of the president's first 100 days at the helm of the world's top economy. welcome to world business report. begin me that 8.5 minutes and i will give you an exciting snapshot of the
world of business and money. also coming up — more surprises from president trump as he vows to renegotiate the us trade deal with south korea. we'll be getting the reaction from asia. but first. we start in silicon valley where three of the biggest names in technology have been reporting their numbers for the last three months. we are talking about the tech titans — google, amazon and microsoft. and it seems they are just getting bigger and bigger. the numbers are jaw dropping, take a look. kicking off with google. along with rival facebook it dominates online advertising. but it's still managing to grow very fast. google‘s parent company alphabet saw revenues jump by almost a quarter on last year. up 22% to $24.8 billion. remember this is just three months worth of sales.
$5.5 billion of that was profit. it's the same story with amazon. it's one of the world's biggest retailers — it dominates online shopping, and still saw sales grow over 22% to almost $36 billion for the three months to march. three quarters of a billion of that was profit. amazon has been growing sales in double—digits for 20 years. microsoft too is raking in huge sales. many people wrote it off as a victim of the decline in pc‘s and the rise of tablets and smartphones. but it's become a leader in cloud computing. it made revenues of over $23 billion although they were only up 6%, and that was less than wall street was expecting. but are these tech titanstoo dominant — simply too big — and too powerful in their respective industries? that if they remain under scrutiny.
some practices, adding conventionally, you'd have to say yes. they would be up to 50% of the e—commerce market. knocking out a lot and traditional retailers as well as on line rivals but it's not behaving in the two —— traditional monopoly way. with price gouging. consumers still get a pretty good deal. prices are actually going down. gary reid is managing director at forward sd which is a digital which is a digital marketing company. great to have you with us. some people might say, google, for example. is it really too big and too dominant? maybe to begin dominant because there is not much
ofa dominant because there is not much of a competition out there. that is pa rt of a competition out there. that is part of the point. they have got great products but if you look at e—commerce, there is less than 20%. there is a line right now. still a long way to go. isn't it funny, and not funny, but it highlights the times we're living in. we used to talk about ge, general electric, as being the world's biggest company. that is now dominated at the top three in the world are tech companies. absolutely. it shows you where everything is going. going from desktop pcs and mobile phones. the whole world is changing. they are providing the infrastructure for us. are providing the infrastructure for us. imaginea are providing the infrastructure for us. imagine a deal without google maps. we would be lost. talking of google, when the numbers come out, things to look out, what we call it? the cost per click. the advertising
money. every time somebody clicks on an advert, somebody pays for that. that probably masks the fact that their revenue has been going up. that's because there is incremental clicks coming from mobile phones. people do a lot of clicking on mobile phones. that is what is happening at the moment. say with hammers on, people going to the amazon on site. going straight to looking for a product as opposed to searching on google. with hammers on e now, you can orderfrom your home without going even want your mobile phone. —— amazon echo. what google are trying to do with google shopping is aggregate everything thatis shopping is aggregate everything that is not amazon, to create some competition to amazon. they are doing a pretty good job. the one, microsoft. microsoft sales of pcs,
they are going to be hit hard but they are going to be hit hard but they reinvented into this cloud storage. unbelievable. they become so storage. unbelievable. they become so dominant in that, google are trying to catch up with them. big companies are using them. they have got that heritage which says they can be trusted in that area. amazon makes most of its money from the cloud. gary reed, a pleasure. your first time does. it will not be your last. we are also talking about president donald trump— because as you've been hearing, saturday marks the 100th day of his presidency. on the campaign trail mr trump made some big pledges on business and the economy. stock markets are still riding high on a wave of optimism — the so called trump bump —— how much will he be able to deliver?
samira hussain has more from new york. asa as a candidate, donald trump had ambitious plans for the economy in his first 100 days in office. ambitious plans for the economy in his first 100 days in officelj ambitious plans for the economy in his first 100 days in office. i am asking the american people to dream big once again. what follows is my 100 day action plan to make america great again. but things that require action by congress have stopped. the tax code not reformed, 0bamacare not repealed. even though, donald trump has seen the economy and crime. the domestic economy is good. regardless of policies, they will take time to implement. that is why i think you have seen a period. just forget the 100 days. periods where the market moves up. 100 days. periods where the market moves up. consumer confidence has
risen. so too has business confidence. and crucially, stock markets are up as well. the s&p 500 is written as investors seem convinced that donald trump will deliver for corporate america. they have a checklist of items they want to pursue to get to growth number. implicitly, they premise that growth on the idea of tax cuts, mainly as expanded infrastructure spending. that is an important milestone, they've got a lot of legislating to do. present john hasn't -- president trump has not been able to change much and if he doesn't soon, the high hopes which are fuelling economic activity, they may start to stall. let's stay with president trump
because he's been telling reuters news agency he will either renegotiate or terminate what he called a "horrible" free trade deal with south korea. he also says seoul should pay for a us anti—missile system that he priced at $1 billion. let's go over to singapore and sharanjit. good let's go over to singapore and shara njit. good to let's go over to singapore and sharanjit. good to see you, sharanjit. good to see you, sharanjit. another one sharanjit. good to see you, shara njit. another one of sharanjit. good to see you, sharanjit. another one of these announcements by the president. it is the currency, the won, that has taken a hit. yes, the currency, the w011 as taken a hit. yes, the currency, the won as well is the local index went into reverse. it stunned a lot of investors. they weren't expecting this to come and mr trump is, as you said, the gift that keeps on giving. he is calling the five—year pact with south korea unacceptable and that he would renegotiate it. a real
reva m p of that he would renegotiate it. a real revamp of the north american free trade agreement. he essentially blamed the us— south korea trade deal on his 2016 election opponent hillary clinton who was secretary of state at the time who promoted the final version of the trade pact before its approval by congress in 2011. as i mentioned, president trump has stunned the financial markets. they weren't expecting this. we have seen a slightly brightening prospect for the korean economy. we have seen global demand improving. they have been leading the recovery in south korea as well asa number of the recovery in south korea as well as a number of other trade reliant agent —— asian economies such as japan and taiwan. we heard from a high—ranking south korean finance ministry official who declined to be named, telling reuters the trump administration had not requested anything from them yet so they are just waiting and seeing. we will do a u—turn. he's done that and everything else. cu, sharanjit. follow me on twitter. i will be back
with james did look —— to look at some of the newspapers from around the world. the general election will be a tipping point the education, with head teachers warning the stability of the whole system is at risk. a survey by the national association of head teachers found that nearly three—quarters of heads say their budget will be untenable within two years. it comes as economists predict it would cost £2 billion to freeze school funding in real terms over the next five years. 0ur education correspondent marc ashdown reports. but the corbet school in shropshire top of figures. but they are struggling, some of them. many have had to make savings to balance the books and schools funding will be a keyissue books and schools funding will be a key issue during election campaigning. we'll have to look carefully at how staffing levels. if
you do that in a small school like the corbet, you're in danger of restricting your curriculum, in danger of having to increase school class sizes. all of that affects standards and affects the quality of education. money is tight at schools across england. the head of its annual conference, the national association of head teachers, surveyed its members. 72% their budgets would be untenable by 2020. at 18% said already in deficit. it comes as the institute of fiscal studies says that to keep up with inflation and freeze funding in real terms, the next government will need to find an extra £2 billion over the next parliament and it will effectively amount to a cut. all the main parties have said funding schools as a priority but will have to wait for the manifestoes to see how they will make the figures add up. coming up on breakfast, all the days
news, business and sport. and the car maker vauxhall is being accused ofa car maker vauxhall is being accused of a reckless disregard the safety of a reckless disregard the safety of the way it handled a series of fires on one of its models. this is bbc news. the latest headlines: president trump has warned that a major conflict could break out with north korea over its nuclear and missile programmes. he said he'd prefer a diplomatic outcome to the dispute, but that would be very difficult to achieve. marine le pen has vowed to tackle terrorism and make the security of france a priority, on the campaign trail in the southern city of nice. little more than a week before the presidential election, polls suggest emmanuel macron‘s lead is shrinking. protestors have stormed macedonia's parliament, attacking politicians in protest at the election of an ethnic albanian as speaker. police used stun grenades inside the parliament building to bring chaotic scenes under control. facebook is introducing new security to try to combat ‘fake news'. the social network says it has
uncovered co—ordinated operations to influence last year's presidential election in the us, by spreading disinformation. now it is time for our newspaper review. what's making headlines around the world ? 0n the front page of le figaro, ‘a hundred days of chaos under president trump'. le figaro gives a harsh critique of the new leader's achievements so far, stating that "no legislation of importance can be credited to the new president". the frankfurter allgemeine reports on angela merkel‘s warning