:00:00. > :00:14.Now on BBC News, all the latest business news live from Singapore
:00:15. > :00:24.Samsung Electronics' business earnings estimates because of a
:00:25. > :00:28.slump in smartphone sales. Energy of the future or an environmental
:00:29. > :00:30.catastrophe? We will look at why coal seam gas is so controversial in
:00:31. > :00:42.Australia. Good morning, Asia. Hello, world.
:00:43. > :00:45.Glad you could join us for this Thursday edition of Asia Business
:00:46. > :00:50.Report. I'm Rico Hizon in Singapore. We start with Samsung and
:00:51. > :00:54.the Korean technology giant just released its latest results. And
:00:55. > :01:00.after years of record profits, things appear to be slowing down.
:01:01. > :01:06.Its profits falling by about 40% to $2.7 billion in the three months to
:01:07. > :01:11.December. And that was significantly below analysts' expectations. What
:01:12. > :01:15.is happening to the world's biggest smart phone maker? Earlier I asked
:01:16. > :01:21.Jake Saunders. It's been a squeeze, should be a
:01:22. > :01:25.fabulous number, but the markets aren't impressed. The revenue number
:01:26. > :01:29.overall increased, the profit has been squeezed, it shows they are
:01:30. > :01:33.under pressure. That squeeze, when you think about half their revenue
:01:34. > :01:41.comes from mobile advice is, that the net result, other companies
:01:42. > :01:45.getting traction traction in places like India, a very strong smartphone
:01:46. > :01:51.market, the smart phone market growing a little over 2% in 2015.
:01:52. > :01:54.They will have a tough time and with these economic headwinds they will
:01:55. > :02:00.have a tough time. Not only challenging for Samsung but all the
:02:01. > :02:07.other smartphone app makers. How should Samsung compete against the
:02:08. > :02:11.iPhone and other cheaper rivals? They are trying to clean up their
:02:12. > :02:17.portfolio and the F six didn't do particularly well. The one with the
:02:18. > :02:22.curved screen came along and that helped them get some traction in the
:02:23. > :02:26.second half of 2015. In February they are planning to come up with
:02:27. > :02:28.the S7, that could go head to head with the top end of the market. But
:02:29. > :02:34.there are challenges at the bottom end as
:02:35. > :02:39.well. Jaque unders. The Federal Reserve kept interest rates on hold
:02:40. > :02:44.after a two-day meeting in the US but has left the day open to more
:02:45. > :02:49.gradual rate heights this year -- Jake Sanders. Janet Yellen, the
:02:50. > :02:52.central bank chief, and her board members increased borrowing costs
:02:53. > :02:56.for the first time in almost a decade last December and markets are
:02:57. > :02:57.closely watching its next move. Michelle Fleury has more from New
:02:58. > :03:03.York. America's Central Bank is keeping
:03:04. > :03:09.its options open, even as it said growth in the world's biggest
:03:10. > :03:13.economy had slowed. Weeks after raising rates Bramham record lows,
:03:14. > :03:17.it stay the same on Wednesday. They said they wanted more time to study
:03:18. > :03:22.the increased weakness in the economy. In a statement published
:03:23. > :03:27.after the two-day policy meeting, it said it is closely monitoring global
:03:28. > :03:30.economies and markets. Some economists said they now expect
:03:31. > :03:35.three quarters point rate increases this year rather than the Force that
:03:36. > :03:41.had been pencilled in. But no one can be sure -- four. The Fed did not
:03:42. > :03:46.commit to slowing its place of rate increases. That perhaps explains why
:03:47. > :03:51.US markets fell on the news. US investors hoping for a clear single
:03:52. > :03:53.that the Fed would move more slowly this year were disappointed.
:03:54. > :03:59.Michelle Fleury in New York. Another business news making headlines,
:04:00. > :04:03.shares of Facebook have jumped by 6% in extended US trading after it
:04:04. > :04:07.reported better than expected earnings. The world's biggest social
:04:08. > :04:13.network software first-quarter revenue rose to a record $5.8
:04:14. > :04:18.billion, due to high advertising sales on mobile devices. Profits
:04:19. > :04:23.coming in at 79 cents per share, beating analyst predictions by 68
:04:24. > :04:28.cents. The collapse in oil prices is hitting the central Asian nation of
:04:29. > :04:32.Azerbaijan, particularly hard. The oil exporter is facing a currency
:04:33. > :04:36.crisis and could require a financial bailout. Officials from The
:04:37. > :04:39.International Monetary Fund and the World Bank are ported Lee heading
:04:40. > :04:47.there this week to discuss a possible $4 billion emergency loan
:04:48. > :04:51.package -- are reportedly. It's a natural gas which could power and
:04:52. > :04:56.other resources boom in Australia. Coal seam gas is banned in coal
:04:57. > :04:59.deposits and it has supplied 90% of domestic gas in the state of
:05:00. > :05:04.Queensland over the last two decades. But activists want to stop
:05:05. > :05:09.exploration in neighbouring New South Wales because they say it is
:05:10. > :05:12.an environmental catastrophe. The BBC's film so went to a protest near
:05:13. > :05:24.the farming town of Nehra bright. Desperate measures. With the lock
:05:25. > :05:28.around his neck, a farmer demonstrates against an industry
:05:29. > :05:32.that he says has the potential to ruin some of Australia's prime
:05:33. > :05:35.agricultural land. We're being forced to do this because the
:05:36. > :05:40.government are backing this people and the government will not listen
:05:41. > :05:45.to the people. We have made it clear we don't want this coal seam gas. In
:05:46. > :05:51.this part of the world in the dry scrub of New South Wales, water is
:05:52. > :05:55.critical to the survival of farming families. Anti-coal seam gas
:05:56. > :05:59.industry here near Narrabri has faced community opposition for more
:06:00. > :06:04.than five-year is. And the main concern is the effect on
:06:05. > :06:09.groundwater. This is a risky, dangerous industry. Invariably we've
:06:10. > :06:12.seen in other jurisdictions, Queensland, the United States,
:06:13. > :06:17.groundwater contaminated. Water is more precious than short-term
:06:18. > :06:21.profits from unconventional gas. Under my feet are the also seems
:06:22. > :06:29.that contain the gas. It's trapped by the pressure of underground water
:06:30. > :06:35.-- are the coal seams. For some the protest, process amounts to
:06:36. > :06:40.environmental vandalism. For others it's an economic boom. $50 million
:06:41. > :06:44.has been spent developing coal seam gas reserves in Eastern Australia.
:06:45. > :06:49.Exports to Australia have also begun. Santos, the energy company
:06:50. > :06:54.hoping to start production near Narrabri, said the project could
:06:55. > :06:59.provide half of the natural gas used in the state of New South Wales.
:07:00. > :07:04.Business leaders in the region say the community is mostly supportive
:07:05. > :07:08.of the scheme. It's our duty now as leaders here to develop whatever we
:07:09. > :07:13.can in a suitable, Safeway for the future. Narrabri has done extremely
:07:14. > :07:17.well out of coal seam gas, particularly out of Santos, who have
:07:18. > :07:22.been a model of corporate citizens in this area. They generally care
:07:23. > :07:26.about the community, that's the truth. Despite concerns from
:07:27. > :07:32.campaigners, the petroleum industry says that any credible scientific
:07:33. > :07:36.study in Australia, Britain and the United States confirms
:07:37. > :07:41.is safe when properly regulated. But Australia must find a way to balance
:07:42. > :07:45.its economic necessities with its environmental obligations.
:07:46. > :07:52.For more on this issue we are joined now by Steve Wright from the energy
:07:53. > :07:56.resource centre, an industry funded group that promotes gas projects in
:07:57. > :08:01.Australia. Great to have you with us on Asia Business Report. We heard
:08:02. > :08:05.from Phil Mercer that there is a huge domestic market for coal seam
:08:06. > :08:16.gas, but what is the potential to export this in Asia? Good to be
:08:17. > :08:20.here. It is a very big potential and that is why it has been such a great
:08:21. > :08:25.investment by Santos and other Australian companies as well as
:08:26. > :08:29.global names. As we've seen in the US, investment in LNG can be very
:08:30. > :08:37.good for the reduction in greenhouse gases. The development of a strong
:08:38. > :08:42.industry of LNG into Asia in the developing countries and the
:08:43. > :08:48.established countries will help as an interim towards a more heavily
:08:49. > :08:52.renewable energy future. But Mr Wright, opponents are saying coal
:08:53. > :08:58.seam gas poses threats to water and agriculture in particular. Why is
:08:59. > :09:02.the industry so sure it is safe? Well, that is a claim that is made
:09:03. > :09:08.but the claim that there is evidence of groundwater contamination is not
:09:09. > :09:13.backed up by science or any respected analysis either in
:09:14. > :09:17.Australia or in the United States or in Europe. There have been many
:09:18. > :09:21.claims but none have been substantiated. In fact, the New
:09:22. > :09:26.South Wales chief scientists conducted an 18 month enquiry and
:09:27. > :09:30.studied in Australia, New South Wales and Queensland, and overseas,
:09:31. > :09:34.and came to the conclusion that there was a lot of misinformation
:09:35. > :09:38.about coal seam gas and natural gas. But a lot of companies have
:09:39. > :09:43.already been sanctioned for water contamination and other violations
:09:44. > :09:47.in the past. Why should we issue regulations are strong enough? In
:09:48. > :09:51.New South Wales the regulations are regarded as one of the strongest in
:09:52. > :09:55.the world, if not the strongest in the world. While there have been
:09:56. > :09:59.reports of surface water, water sitting on the surface of the ground
:10:00. > :10:03.having had accidental spills, they have been very small and they have
:10:04. > :10:08.been cleaned up quickly without damage to the environment. As you
:10:09. > :10:11.mentioned in the introduction, Queensland has been operating
:10:12. > :10:15.successfully producing natural gas now for almost 20 years. In South
:10:16. > :10:20.Australia, it's been going since the nineteen sixties. And a first
:10:21. > :10:27.natural gas was actually put to use 100 years ago in Queensland --
:10:28. > :10:30.nineteen sixties. Steve Wright from the Energy Resource Centre. I'm Rico
:10:31. > :10:34.Hizon. Thanks for joining us. Goodbye for now.
:10:35. > :10:41.Scientists have warned it could be ten years before a Zika virus