11/10/2016 BBC Business Live

This is Business Live from BBC News, with Ben Thompson and Sally Bundock.

Samsung suspends sales of its Galaxy Note 7 smartphones

and warns existing users to turn them off as the scandal grows over

It could abandon the model altogether over fears that it could

overheat and explode. Live from London, that's our top

story on Tuesday 11th October. The electronics giant

warns customers not We'll get the latest from our Asia

business hub and assess what it means for Samsung

with our technology correspondent. He has won with him, it is switched

off. Regulators shut down the Singapore

operations of a private Swiss bank over accusations

of money laundering. Financial markets have got the

jitters, with the rising price of oil and the falling pound. What does

that mean for inflation? We will tell you all you need to know.

We'll meet the member of the Rothschild family urging

businesses to put people before profit and make society fairer.

And, in the light of that Samsung saga, we want to know,

has it damaged your trust in the brand?

Let us know, use the hashtag #BBCBizLive.

It's a disaster for Samsung at a critical time for

It has told all users of its flagship Galaxy Note 7

smartphone to switch them off whilst the company investigates new reports

Samsung has also announced it is to stop all sales

The company recalled 2.5 million phones in September after complaints

of exploding batteries, and later assured customers that

But there are now reports that even those phones were catching fire.

Now, organisations such as the US Federal Aviation Administration

are telling airline passengers with these phones they must be

switched off and not stowed in checked-in baggage due

The Galaxy Note 7 was meant to be Samsung's flagship phone,

released just weeks before Apple's iPhone 7.

It was well received, but since the scandal,

Samsung shares have taken a major hit.

There's also expected to be significant damage to brand

There have been reports the firm is considering halting production of

the phone altogether. We have talked about this since

September, what is the latest today? Shares have taken a beating today,

down by another 8%, after Samsung announced they would stop sales and

they told users to turn their phone off. They are also facing a

shareholder challenge from a hedge fund. All of the woes it is facing

at the moment, it is giving the hedge fund ammunition to take their

proposal to split Samsung into two. The hedge fund is looking to see

them spin it off into an operating company and list that on the Nasdaq,

to bring up the shareholder value of the company. This would be a major

corporate shake-up, one of the biggest in history, and it will be

hard, because Samsung is South Korea's biggest company, it has a

complex structure, but shareholders are looking to change that.

You have got the phone, it is turned off, but we should have some sort of

risk assessment to have a PR. There was some chat about bringing a

dangerous item into the studio. This was one of the original ones that

were sent out in late August, early September, it should have been sent

back already. Some song thought it had identified the original problem,

which was that the battery was from one particular supplier and there

was a fault at that one particular supplier. It withdrew them, it sent

out new phones, with actress from different suppliers. Now in the last

week we have had at least five different reports in the did state

that replacement phones have suffered problems from catching

fire, in a teenager's hand, and on an aircraft. The crisis for some

song is they have failed to identify exactly what has gone wrong. Once

they have identified it, they can act. As late as yesterday afternoon,

I was talking to them about a British owner who was worried, he

had a replacement phone, 1MDB said, don't worry, it is a replacement,

everything is fine. If you hours later came the statement. The timing

is also a disaster, the crucial holiday season coming up, people

replace devices or buy new ones, and Google launching their phone. This

is a great phone in many ways. When it first came out, it was so much...

It was outlandish, it looked huge, now everybody else is doing them,

but this phone set the pattern. It is not as big as the Galaxy S seven,

which is the flagship, but it is a very well reviewed version. Very

important to Samsung. Huge competition, not just from Apple's

iPhone seven, but Google also hitting the top end of the market.

That is an android phone, for those who don't want an Apple device. If

you wanted a top end android phone, Samsung has been the dominant

player. They have dominated the luxury end. It has been hard to make

money, but Samsung have been making serious money at the top end of the

market. That must be under threat. In terms of brand damage, Tim

tweets, my faith in Samsung is not shaken, they are pushing the limits

and bumps on the road to be expected. One person says, I will

not ever buy one after this. That is the issue. There are lots of loyal

fans, and I doubt that many of them will disappear, but you don't need

to lose much of the market to have your margins really seriously

threatened. It is becoming ever more competitive, margins have been

getting thinner. It is a big problem. We are all over this, Rory

and Dave Lee on Twitter, and our team in Asia. Keep it with the BBC

for our latest. Keep your comments coming in as

well, use the hashtag. Is your faith in Samsung tempted?

The price of Brent crude oil has surged to its highest in a year

after Russia said it will support Opec's plans to freeze production.

The group of oil-producing nations are gathered once again,

this time in Istanbul, on the side lines of

Oil has come down a tad from its 15 month high.

US investor Warren Buffett has released his tax details

after Republican candidate Donald Trump accused him of using

Mr Buffett said he had paid income tax every year since 1944,

following Mr Trump's assertion that he had taken a "massive

deduction" during Sunday's TV debate with Democrat Hillary Clinton.

In 1995, Mr Trump claimed losses of $916 million

There is no evidence he did anything illegal.

The moral of the story, don't take on Warren Buffett.

A quick look at our page. Sterling under $1 23. The continued fall in

sterling. As promised, this proves we are live, a picture of Rory with

his phone! I was feeling a little scared of that phone. Plenty more

there, including on sterling. And another story we're

following from Asia today, more fallout from Malaysia's

1MDB investment-fund scandal. Let's head back to

Leisha in Singapore. It has been a long-running saga,

explain some of the detail on what we have heard today. The scandal has

been rolling for years. The allegations are that more than $4

billion was misappropriated. There are six countries investigating

alleged corruption to do with 1MDB. Singapore is one of them, the

development has to do with them kicking out a second Swiss bank from

the city. The bank is Falk, accused of serious breaches of

anti-money-laundering rules. In May BS I was kicked out for some and

violations. In today's charges, UBS and a Singapore lender got

financially penalised, and the local unit of Standard Chartered is also

being investigated over possible breaking of these laws.

A week Japanese currency helping stocks listed in Tokyo. Hong Kong

hit pretty hard. Energy stocks pulling it down. The price of oil

and down a little bit. Technology stocks pulled down. He story with

Samsung, their suppliers, struggling.

A mixed picture in Europe, fairly flat. The pound falling again today,

four days in a row against the dollar, could be the worst run since

June. And Samira Hussain has

the details about what's ahead A high patent fight gets it day in

court, nearly six years after the legal battle began. This is a fight

between the design similarities between Apple and Samsung

smartphones. Samsung is appealing an earlier decision that would have had

them paying $548 million to Apple for a patent infringement. This

comes at a difficult time for Samsung as it deals with its woes

over its phones. Also happening, a new season for earnings, beginning

on Tuesday. The first company will report, the last quarterly results

before the metals company splits into two.

Joining us is Jane Sydenham, investment director

Let's talk oil, it is back-up, just when you thought things were

starting to calm down. We might see more money in our pockets? I don't

think it will be the case. Russia is trying to cooperate with Opec, to

agree a reduction in production, although Opec has so far only agreed

a freeze. It shows an intent. A lot of these nations are under pressure.

What it means for us is not only is the price rising, which means it

costs more to fill up the car, but the dollar has been rising against

sterling, so you have a double whammy. That is pushing up

inflation. Sterling has been weak, so food import prices, and clothing

import prices, they are rising, so inflation should be pushed up. The

next Opec meeting is in November in Vienna. That is when we are

expecting them to say, we have agreed to the freeze that we have

put out there to financial markets. It will be interesting to see if

they can finally agree to that, because who will agree to cutting

what? Exactly. The world will want to see the evidence that there is a

genuine cut taken place. What will it mean for inflation? The issue

with a weak pound, oil going up, energy prices going up, it could be

a problem for us in the future. Our ideal inflation target is around 2%.

At the moment the CPI is not .6, 0.7. The fact that sterling has

fallen should push inflation up I 1% anyway. If we see rage rises come up

oil prices going up, inflation will start to take up, which is good as

long as we are around 2%. If it really started to run away, that is

not good, because that has an effect on expectations for interest rates

and all sorts of things. It is very early days at the moment. You will

return to talk is through some paper stories.

We'll meet the Rothschild persuading companies to embrace

You're with Business Live from BBC News.

We have seen a lot of market volatility, and it has had an impact

on one company's decision over whether it should float or not.

It was going to be the largest IPO planned since June's vote to leave

the EU, but it has now been cancelled.

Pure Gym has pulled the plug on it, citing market volatility.

What's the reasoning? Market volatility covers a lot of things?

It does, indeed. It seems to suggest that investors are getting cold feet

and recent IFOs haven't done as well as expected. It is the UK's biggest

gym operator. It has been expanding rapidly. Largely due to a business

model which allows people to pay monthly and weekly or by the day

rather than having to commit for a full year and pay a large annual

fee. It is in the value sector, a low-cost gym chain. They announced

they were going to float on the stock market in September. So a long

time after the Brexit vote. But they have decided that that doesn't look

great and I'm led to believe that's because recent IPOs of similar sized

companies haven't done too well. They are worried although there is

initial investor interest, the share price may not be sustain over the

next year or two and they don't know what the immediate future holds. So

it is better safe than sorry. Pull the IPO now and perhaps return on

another day. If you want more details on that

story, there is more on the website. It is a featured on the Business

Live page. It is a story of sterling today.

Yes, sterling all over the financial press. Everyone keeping a close eye.

It is good news and bad news depending what you're up to. If

you're planning on travelling abroad, it is bad news. It is Budget

Day in Ireland and the UK traveller to Ireland is one of their biggest

areas when it comes to their tourism industry. So they're watching this

veriks very closely and they export a lot to the UK and Ireland imports

a lot from the UK. So lots of ramifications for that.

We're keeping an eye on that story for Samsung. Good news for Apple and

Google as a result of that scandal at Samsung.

Our top story: Samsung has suspended sales

The move follows continuing reports that battery problems are causing

some phones to catch fire including replacements.

South Korean safety authorities say they're investigating.

Some reports suggest Samsung may ditch the model entirely because of

the problems. A quick look at how

markets are faring. We are keeping a close on the pound

and dollar exchange rate. Brent Crude earlier today above $53 a

barrel. The last look just below $53 a barrel. Energy shares have been

sensitive. They were up strongly on Monday as the price of oil surged.

The trigger for Monday's 15 month hike in oil was Russia saying they

would adhere to the production freeze announced earlier by Opec.

Can the world's biggest companies help make the world a better place

That's the fundamental question when it comes to what's known

AXA Investment is - for example - pledging to make 75%

of its real estate investments green.

Top business leaders from around the world gathered in New York

to debate exactly that and Samira Hussain went along

to speak with the coalitions founder Lynn de Rothschild

about whether investors can really change the world.

We are as investors not only looking at what did you do

in the last quarter, were you up half

No, what we want to know is what did you do for your customers?

And if we as investors say that and we have $43 trillion of assets

under management involved with us at the CEO and CIO level so that's

almost two-thirds of assets under management in the world.

So if we all decide that we are going to ask inclusive

questions of our management and where we put our money,

How do you avoid turning into a meeting of elites that don't

We are asking everyone who comes to make a commitment that works

for their organisation, for their shareholders,

for their employees that leads them on a path to more inclusive

capitalism and the coalition for inclusive capitalism actually

works through the year with all of these organisations

to measure progress and we're not prescriptive and we don't have

We believe that a journey of 1,000 miles starts with the first

step and we are grateful for the first step.

So I think that's how we really differiate ourselves from a Davos.

People come to learn and to think and then to implement action

and that's where we really hope we distinguish ourselves.

Either we really believe that capitalism works for everyone

and we make it or we don't and if we don't, shame on us

and I think those companies that have let ethics go or let treatment

of employees go should be penalised by investors.

I'm glad you raised the issue of cynicism, especially

in this election cycle, I'm wondering if you feel that this

I think it is true that the system has let too many people

In this country, the medium income has not risen since 2000.

Now, granted last year it did go up by almost 4.5%

which is an improvement, but 90% of the gains,

after the great recession, went to the top 5%.

And that's why people are angry and so I don't think those

I think those people are right and I think

it is our obligation to bring them back in so we are all in this

society and in this economy together as one.

What would you say to the people that have become disheartened

with the way that the economy and the way big businesses are run?

I can promise you that the majority of the people in the 1% want

an economy and a society that works for everyone.

That the arc of history does bend towards justice and we have made

mistakes in the business and in the investment community.

I can grant that, but I also know that by and large the bulk

of the people who you call the 1% want a better outcome for everyone.

Lots of you getting in touch with the top story related to Samsung and

whether it would dent your confidence in the brand. Whether you

would still buy a Samsung. A viewer says, "They have got my trust. All

my previous Samsung phones have been amazing." Nick says, "I have had a

Note 7 and I have had it replaced, but I've had enough now." One viewer

says I'll get another Samsung when the bugs are fixed. I will never get

an Apple. This one which cracked me up. This is from Nicotine Lee, "I

have a Galaxy S6 and if my Samsung exploded in my hands, I would still

buy a new Samsung phone." Jay says, "It changed my life and then it was

gone. The best phone this year. Hands down regardless of the

problems." Jane is back with us to talk us through the stories in the

papers. Jane, let's stay with the technology theme and talk about

Facebook because it is moving into new territory? It is. It is. It is

launch ago rival to linked in. It is networking for business. So not

really posting of your cat, but spread sheets instead! And

networking on a global basis to do with business. A big change. It is

quite interesting for Facebook thaws that's the area it hasn't

infiltrated successfully. It has very much got the market of social

news and what you're up to on the weekends and your own personal life,

but not the office? I mean it is a gap and it would be interesting to

see how successful it is and it is really going to put measure on

linked in. Let's turn our attention elsewhere

to Dubai, a place that I spent many a year. This is an interesting one.

A new tall tower, they have got the world's tallest, but they want a

taller one. This is interesting when it comes to things like timing, you

build in a downturn and then are ready in another downturn? It is

interesting. Another 100 meters above the tallest building in Dubai.

It is not good for those of scared of heights, but timing is everything

and anticipating what the cycle is going to be is pretty difficult.

Obviously, if the oil price improves, it will help as far as

Dubai are concerned, but it is also, you know, it sends a signal to the

rest of the world. How long it will take, I don't know, but we will have

to wait and see where the business cycle is. Have you been to the top?

Me? Yes, I reported from the top. I have got a bit of a head for heights

so it was all right. But it tends to be very dusty so the view to be

amaze, but you don't see very much. Thank you for your company. That's

Business Live for another day. We're back tomorrow. Same time, same

place, bye-bye. Hello there. The weather is stuck in

a little bit of a rut for the next few days. The only thing that will

start to change is the strength of the wind and it will continue to

come in from the east thanks to this area of high