tv Business Briefing BBC News November 9, 2018 5:30am-5:45am GMT
this is the business briefing. i'm victoria fritz. a fairytale quarter for disney as the movie studios work their magic. but are its plans about to become a nightmare for netﬂix? plus, the $25 billion retail binge — china's online shoppers gear up for singles day. but are they handing over too much personal data along with their cash? and on the markets, us shares fall as the federal reserve leaves interest rates on hold, but seems to be sticking to its plans to keep raising them, despite recent volatility on wall street. we start with the walt disney company. shares of the entertainment giant have been rising in after—hours trade after it reported earnings that were much better than expected. the movie and tv industry is being transformed by the rise
of streaming services like netflix but disney is positioning itself to dominate that future. let's show you some of the details disney made. overall revenues of $14.31 billion in the three months to the end of september — that's up 12% on the same time last year and well above wall street forecasts. disney's film studios had a particularly good quarter with earnings up 50%. over the summer, disney agree to pay $71 billion for the entertainment business of 21st century fox after an epic takeover battle with cable tv giant comcast. it's all to do with streaming. these days, more of us get our entertainment via services like netflix and amazon prime and disney is planning its own, disney plus, next year. it will now have a vast amount of content to offer and it says it's removing all its movies from netflix. in the last few hours the boss of netflix, reed hoffman, has been speaking to the bbc‘s
sharanjit leyl. she asked how worried he is. i think it is more like adidas and nike, to great competitors around the world, they are formidable, they have so much content, star wars and marvel so they will be a great competitor and that will push us to do the work of our lives so we are really excited about it and we have been competing with amazon are more than ten years we are used a healthy, strong competition and it makes us better. richard broughton is research director at ampere analysis. all of this, streaming service and megamergers, and quite a lot of consumer confusion as well, it comes ata consumer confusion as well, it comes at a cost? it does. the ambition is to go direct consumer through disney plus will have to be backed up by quite heavy expenditure on original show brands and potentially, as disney has indicated in the us with
its pulling its existing shows many of their current partners which means forgoing the revenue streams associated with them. so when we look at the results, they were pretty good by anyone ‘s standards, the revenues were up, but is more important really, arguably, for a company in transition is the outlook for the future so how do you see that? disney has a strong base to build on and with the fox merger going ahead, they will have a whole slate of titles to be ploughing into future endeavours. in general, disney is probably better position than many of its peers. you can see that growth is pretty strong across all its divisions. the weak point, if there could be one in the disney portfolio, is media network switches its pay and cable channels and they will be facing rising costs and that is what is driving the direct to consumer strategy, both via the deep —— disney plus brand and espn plus
sports streaming brand. some of the issues around this is how you divvy up issues around this is how you divvy up the content they have and where people can find it. it is extremely confusing for consumers and are they really are likely to ditch the likes of netflix and take up disney plus in the future if they are not guaranteed they will be able to find star wars, if they are a fan, for example, whenever they want? increasingly refined consumers are taking multiple purposes of the price would love netflix and disney plus we suspect will be in aggregate, low enough that as consumers you can take two, three, four or five of those. now disney isn't the only one looking at a streaming service and there are plenty of other big and small studio and production groups with similar ambitions and the question is how many subscriptions can the average household support? it will not be 20. could it be 5— ten? maybe. household support? it will not be 20. could it be 5- ten? maybe. all of this adds to the intrigue in the yea rs of this adds to the intrigue in the years long guessing game of who will replace big boss at disney. very
much. the rollout of the new strategy over the next year or two also will be a key determining factor as to how it unfolds. on the fence, richard! have a lovely weekend. thank you for coming in. this weekend is singles day. the online retail event was started almost a decade ago by chinese e—commerce giant alibaba and has fast become the biggest shopping day of the year, outstripping black friday and cyber monday. but it's notjust the money that'll be flowing in — so, controversially, will the personal data of hundreds this is the countdown to the biggest online shopping day of the year. not just in china but the world. it's called singles day, held on the 11th of november, get it? all of the
ones? it is a hugely successful shopping festival, invented by chinese e—commerce giant alibaba. in 2017, alibaba chinese e—commerce giant alibaba. in 2017, aliba ba earned chinese e—commerce giant alibaba. in 2017, alibaba earned a record 116.2 billion yuan or 25 billion us dollars on that day a loan. and it keeps making more money every year. but shoppers are notjust handing over their dollars, singles day might well be alibaba's biggest data collection event of the year too. take one of the most popular shopping apps for example, monitoring notjust shopping apps for example, monitoring not just what you shopping apps for example, monitoring notjust what you buy but what pages you view, what you bookmark, and uses artificial intelligence to predict what you are most likely to buy. alibaba says it does this to tailor its recommendations to you so you have a better shopping experience. and what it is doing is pretty common in e—commerce, just like other sites like amazon, they are doing it as
well, but when it comes to alibaba it is doing it on a whole other scale. over 600 million people are using alibaba's scale. over 600 million people are using aliba ba's retail sites scale. over 600 million people are using alibaba's retail sites and applications and millions more are using the other businesses like financial services and entertainment sites, all of these customers are generating a huge mountain of data. let's stay in asia, because there's more evidence of a slowdown in china's economy. price rises of goods as they leave the factory have eased for the fourth month in a row. sharanjit leyl is following this for us in singapore. sharanjit, what's going on? that's right, it is really a sign as you say that growth in the world's second—largest economy is starting to stall, chinese inflation slowing for a fourth month and even though we have been talking about the trade war, it to blame. it is due to falling domestic demand from chinese consumers and also partly due to a slowdown in manufacturing and the producer russ index is important
barometer of the sector and measures the cost of goods at the factory gate and it be celebrated two or 3.3% rise in octoberfrom the previous year, it has been kicking downwards from a high of nearly 5% injune and we also saw the consumer price index, a key measure of retail inflation, rise 2.5% are adding to the strain on consumers, we have seen the strain on consumers, we have seen things at the cost of diesel and gasjumping on the seen things at the cost of diesel and gas jumping on the 20% from last year, we know economic momentum is softening in the past month, and just last week we heard from xi jinping acknowledging that the economy is in a growing downward momentum. it is a signal that beijing will likely push through more growth boosting measures as well in the face of trade frictions with the united states. interesting. a slowdown in domestic demand. thank you, sharanjit. now let's brief you on some other business stories. canadian aircraft and train maker bombardier says it will cut 5,000 jobs around the world — 2,500 in quebec and another 500 in ontario. there are no details yet on where the remaining jobs will be lost over the next 12 to 18 months,
meaning uncertainty for thousands of people who work for the firm in the uk, mainly in belfast and derby. accountancy firm kpmg has said it will no longer do consultancy work for the uk's biggest companies if it is also auditing them. in a memo, the firm's chairman said the move was to "remove even the perception of a possible co nflict" of interest. the big four accountancy firms are under scrutiny following the collapse of construction firm carillion. about 1a shops are closing every day as uk high streets face their toughest trading climate in five years, according to a report by accou nta nts pwc. it says more than 1100 shops disappeared from britain's top 500 high streets in the first six months of the year with fashion and electrical stores suffering most as customers do more shopping online. and now, what's trending in the business news this morning.
"we're setting the stage for a recession in next 12 to 18 months" — that's the view of analysts on cnbc discussing the latest federal reserve meeting. it brought down a lot of the market earlier on today. —— it brought down a lot of the markets earlier on today. an opinion piece on bloomberg suggests: at disney, it's a whole new messy kingdom. a streaming service, a megamerger and consumer confusion could mean a difficult period coming up for the entertainment giant. lots on that story. and on business insider, american airlines will soon allow passengers with peanut allergies to board flights early. and don't forget — let us know what you are spotting online. get in touch with us. use the hashtag #bbcthebriefing. this is a quick look at the markets. gold has been falling a little bit and you can see crude recovering to $70 per barrel. the newly appointed chair
of the parole board, caroline corby, says the organisation has suffered a loss of confidence since the high court overturned its decision to free the serial sex offender, john worboys. in herfirst interview, mrs corby says parole panels in england and wales are demanding more information before making release decisions and letting fewer prisoners out. our home affairs correspondent danny shaw reports. thejohn the john worboys thejohn worboys cases had a profound impact on the parole board, the man known as the black cab rapist said to be freed from prison earlier this year after parole panel decided it was safe to let him out. but the high court blocked his release and the case is being looked
at again. the head of the board, nick hardwick, stepped down under government pressure. his nick hardwick, stepped down under government pressure. his successor told me it was a very difficult period. we saw the departure of our previous chair in difficult circumstances, the board was subject to unprecedented amount of publicity or the like of which we have not experienced before, and i think there was a loss of confidence amongst ourselves a little bit, perhaps a loss of confidence in the wider public, and that was something iam very wider public, and that was something i am very keen to repair. since then the parole board has made changes. it is sent summaries of its decision to 500 victims of crime and appointed an in—house lawyer while the prisoner release rate has dropped to 46%, a sign it has become more cautious about letting offenders out. and none of the 240 pa role offenders out. and none of the 240 parole board members making decisions about the release of prisoners is black, 13 are from other ethnic minority groups. the new chair says that is a significant
concern which must be addressed when new members are recruited next year. danny shaw, bbc news. that story coming at six o'clock on breakfast with charlie stayt and naga munchetty. plus, england's top doctor has called on the nhs to embrace technology such as skype and apps, so patients can avoid hospital and save the nhs millions. those stories and more at 6am. this is the briefing from bbc news. the latest headlines: the united states authorities say they will prevent people who illegally enter the country from claiming asylum. a former us marine with suspected mental health problems has been identified as the gunman who killed 12 people at a bar in california. now it's time to look at the stories that are making the headlines in the media across the world. we're going to begin with vox. it's leading with the latest us policy to limit asylum for migrants, and it calls it donald trump's "most legally dicey immigration move yet". that is the quote over at vox.
the front page of the independent has a rather alarming messge from the eu, which expects britain to have the weakest growth in the bloc over the next two years. the top story on the scottish daily mail looks at how scottish children are to become the very first in the world to be given gay rights lessons in the classroom. and the new york times international edition features a story on how, from the working from a populist playbook, italy is now loosening its gun laws — a move that would've been unthinkable not even that long ago. and the times looks at how nannies are being asked to sign contracts that keep them off social media over fears that they are too distracted by their smartphones. so let's begin. priya lakhani is founder and ceo of century tech, a uk based education technology platform. let's start with vox, shall we?
yeah. start at the top with vox and this sort of extraordinary new us law that he wants to bring in, this ban, and the us albury is the requirement to hear claims from asylu m requirement to hear claims from asylum seekers if they claim they are under threat from their home countries, under international law, these are considered refugees. can these are considered refugees. can the president really stop immigration in the national interest? well, it is his donald trump, so everything is different when it comes to