06/07/2012 World Business Report

air strike. Those are the latest headlines.

It is time for World Business Report.

Will come. -- welcome to the programme. The headlines: Samsung

says its smartphones offline off the shelf but could be rezoned

crisis her to the rest of its business?

Is US economic recovery stalling? Jobs numbers out I did today are

expected to show that firms are not hiring fast enough to boost growth.

A surprise rate cut by China also. For a stake, Samsung says it

expects its profits to surge. Sales of its smart phones begin to grip -

- continued to grow. It is forecast a profit of $6 billion for that

period. The feature could look tricky for the electronic giant. It

says that Europe's debt crisis is denting demand in its biggest

market - television and home appliances. We're drawing from

Singapore. Will come. But Dorkbot smartphones First Fleet. -- of

First Fleet. What is Samsung doing right in the smartphone business?

It is leading the Android charge against Apple by producing devices

that are very attractive to consumers and getting the timing

right. The latest one was time to between two Apple watchers. There

are getting the marketing mix right. They also have a variety of

different parts -- price 0.4 more people there but -- devices that

offer this operating system. Apple is fixed with a smaller number of

devices. The bigger picture is Android verses Apple. But Samsung

is leading the charge in this area. They do understand how to make the

most of this situation. Samsung also announced contingency plans

earlier. They are very worried about the biggest market - Europe.

That is an issue for most companies. The economic outlook is not great

for many companies that depend on consumer demand. From a smartphone

perspective, Samsung is struggling to keep up with the demand. They

had issues with getting components. But it has not impacted them in the

smartphone market. But some of their other aspects have not been

doing too well. Most of the profits have been coming from smartphones

but there are clouds on the horizon for other parts of its business.

Thank you. China surprised the market

yesterday, cutting interest rates for the second time in a month.

There are fears that second quarter GDP economic growth will be weaker

than expected. We're joined from Beijing. I was on air when that

news from Beijing broke. It came as a surprise. Everybody seems to be

interpreting Beijing's actions as saying, China is worse than we

thought. It is really the second rate cut in the past few weeks.

Most people are interpreting that this has something to do with the

numbers we will see next week. Firstly, it suggests that the CPI

number which will come out on Monday will come out below 3%. Most

people will interpret that as good news. It is important to remember

that consumer inflation is the tip of the iceberg of inflation in

China. Much of the money pumped into the economy has been pouring

into investment. Secondly, they took a look at the GDP and other

group members due out on Friday and did not like what they saw. There

was a lot of hope that the second quarter would be better than the

first. It does not look like that will pan out. How worried should we

be, no matter where we live? Surely we will all feel the pain of a

slowdown in China? It depends on where you sit relative to the

Chinese economy. Iraq countries and companies that have been feeding

China's investment boom. -- there are countries. If that investment

boom comes to an end, they will be hard hit. But if you're looking to

sell consumer goods, the adjustment that this represents may be a good

thing. Thank you. From manufacturing to consumer

spending, economic numbers from the West in recent weeks have been grim.

The numbers are out on the jobs market. It is expected to show that

US employers have increased their hiring in June, but not by enough

to dispel concerns that the American economy is losing steam.

Hunting for work as a frustrating business. Many of the unemployed

coming to this government backed JobCentre in Manhattan are highly

qualified. Rachel has a master's degree and experience. After six

fruitless months looking for research work in public health, she

is at the end of her tether. What more can I do? I have offered to

work for free. Especially in the global market. I have said, I'll go

review would be to go and you do not have to pay me. It still comes

down to, you don't have the experience. It is a similar story

by William Johnson - a qualified librarian. He says he has applied

for hundreds of jobs in the two years he has been unemployed.

There's no work. I don't know. That is why I'm here today. I would like

to be an -- a librarian but at this point I think I will have to do

whatever will keep the money coming in. High unemployment has been a

drag on the US economy. Some see a bit of light at the end of the

tunnel. The unemployment figures have been improving recently. There

are some good signs. We have to guess a bit too. We feel a little

rosier than we have previously. is likely that the jet -- American

economy generated around 90,000 new jobs last month. That is better

than the previous couple of months. But still only half the rate of job

creation we saw at the start of the year. Hitting America back to work

is proving to be a long, hard slog. Let's get more on this. I guess

this is the big problem for the US economy. The lack of jobs. It

started off great but it has been a downhill run ever since.

unemployment rate in the US has been above 8% since February of

2009. That might not seem that long but it is the longest stretch since

records began in 1948. The Americans are not used to this

level of unemployment. Under 10% does not seem that bad but it is

the duration -- duration at which it has been at those levels. The

government seemed to be running out of ideas. We have heard President

Obama announce back-to-work programmes. But whether it is he a

Mitt Romney in the chair after November, can they do anything?

problem is the difference between short and long-term. The difference

between what quality and high quality jobs. The high-quality jobs

take a longer time to just state because they require infrastructure

and Investments. In the short-term, you end up having to have policy