26/10/2012 World Business Report

power and corruption. Those are the top stories. Now for the latest

What then to the programme. The chance to catch up a wall latest in

a world business and money. Headlines: The US growth figures

could give their last me a boost to Obama's re-election hopes. A record

profit for Samsung thanks to its smote -- smartphone sales. And the

best laid plans. One year on from Europe's make-or-break summer. How

It's it really is the big question, will President Obama get a last-

minute boost in his re-election hopes this Friday? In a few hours'

time the US Department of Commerce releases its first estimate of

economic growth for a three-month period to a September. It is the

last major Reading on the US economy before the election on 6th

November. Growth figures for the second quarter were revised down.

They started coming in at 1.7% growth. They came down to 1.3%.

Will have more analysis on this and a murmured. First we have this

report. In this factory in New Jersey there is plenty of activity.

We do everything from Cabinet Serie up to more complicated pieces.

Everything heres done right here. Engineers make the designs and

workers create the finished products. There is a be little

sawdust on the floor. Much of the work is done by machines. This is

what modern woodworking works like. In America's slow recovery,

manufacturers like this have shown surprising strength. The fabric of

America was built on quality manufacturing. Over the past few

decades we have lost it. Americans realise that the loss is difficult

to swallow. Every way cannot make money in a service business. Making

these is what generates income for a nation. Making things is what

Paul this country out of a recession. Exports are languishing

and businesses are pulling back. ahead.

ahead. The most likely outcome for the US economy is a continued sub-

par growth performance. There are plenty of risks and opportunities

on the upside and downside. upside is recent housing numbers.

Would be enough to push the US be on a lukewarm recovery? With the

jobs report due next week, Americans will pay close attention

to the last set of economic data before the presidential elections.

Despite the uncertainty ahead, this factory owner remains optimistic.

believe manufacturing or have a reverse in America. And optimism

President Obama hopes more Americans will share. We were it

mourn all this. -- we will get more on this. Let us talk about the US

economic recovery. What can we expect today? Is it on track? The

last quarter started off at 1.7%. It eventually came down to 1.3%.

The absolutely. All the signs are pointing towards a continues effort.

It feels relatively slow to where the growth was prior to the crisis.

Relative to other countries of the developed world, growth of 1.5% is

OK. Absolutely. Many countries in Europe would give their right arm

for it growth. Things do not look that great. We just had a raft of

US corporate results. Big names with dismal numbers. What was

interesting is that the same message was being echoed from the

likes of 3 m, FedEx, Amazon, that warning is to batten down the

hatches. What has been disappointing in this cycle is

where the profits have fallen, companies have not studied to hire.

The employment rate has been weak. It reflects a lack of confidence by

companies. It reflects an uncertain political situation. To break that

down you're talking about company is making profits. You're saying

that they have been squealing away the money? They are too nervous to

invest in new machinery or people? Cash flow for US companies has been

quite strong. Usually at this point aggressively and a startled engage

in capital expenditure. That has not happened to the extent we would

expect. Briefly, we talk about global connectivity. Looking good

China there is a slowdown. Big problems in the reserves. Can you

have an economy like the US isolate itself? Caddied bundle along with

1% growth? The US economy has a slower external sector than some

other economists. It is less impact than smaller economy is. It is

certainly not immune. The US exports a lot to Europe and China.

Those exports would be impacted. Because US policy has been so

stimulative. Rates have been cut aggressively. There has been some

fiscal stimulus. That has helped them from suffering worse rates of

growth. Thank you. We will move on. South Korean tech

giant Samsung has tightened its grip on the global smartphone

market. It has posted another set of record profits. What do you say,

what is it, 56 million handsets have been sold? For us is right.

All of that is not getting boring for Samsung executives. Record

profits in the three months to is a term by led by strong sales were

taken up in numbers. But profit came in at nearly $6 billion. There

is a jump from a year earlier. We saw strong demand for its display

panel unit which helped boost earnings. We have increasing

competition and legal tussles from Apple. That has raised questions

over future performance. The two firms are filed legal cases against

it other in more than 10 countries. Each has accused the other of

violating patents. Samsung is losing on that front. Earlier we

sought a court ruled that Sam's I had violated patents and awarded

Apple $1 billion in damages. We have now heard that they had

infringed another four. We have a new report saying that in the last

quarter or so Samsung has sold 56 million smartphones. That would

mean that one in three smartphones sold and the world is a Samsung.

Quite staggering. I was only joking when I talked

about the boring part. Every quarter it seems to near record

proper track record profit. Good on them. Thank you. We will take a

quick look at some other business news making headlines. We will talk

about Samsung's competitor apple. Profits of just over $8 billion.

That is up 24%. It was less than what analysts were heard before.

Sales of the current iPad has been hit by a consumers holding out for

the new smaller version which Apple launched just this week. Apple

shares are down 13% from that record high. Disappointment from

Amazon. It lost to I didn't $74 million in the three months to

September having made a profit in the previous 18 quarters. Amazon

has been hit by a weak economy in Europe. There has also been heavy

spending in some of its investments. Its stock dropped 5% in late trade.