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European Parliament in Strasbourg following a confrontation with one | :00:00. | :00:00. | |
of his colleagues. Now on BBC News, all the latest business news live | :00:00. | :00:00. | |
from Rico in Singapore. Samsung Electronics is facing an | :00:00. | :00:19. | |
explosive situation with its smart phones. Will its bottom line get | :00:20. | :00:25. | |
burned? And Filipino President Rodrigo Duterte eight marks 100 days | :00:26. | :00:29. | |
in office but his shock tactics may be scaring away investors. | :00:30. | :00:35. | |
Welcome to this Friday edition of Asia Business Report. | :00:36. | :00:41. | |
It is almost the weekend. We start off with Samsung Electronics and the | :00:42. | :00:53. | |
conglomerate in South Korea has signalled a 5.5% increase in | :00:54. | :00:56. | |
operating profit for the third quarter compared to year ago levels. | :00:57. | :01:01. | |
The company will disclose full earnings results at the end of the | :01:02. | :01:04. | |
month when it will also provide details on how various businesses | :01:05. | :01:08. | |
performed in the three months until September. This, take a look at it, | :01:09. | :01:16. | |
the Galaxy Note 7 was supposed to be Samsung's big hit to boost its | :01:17. | :01:20. | |
bottom line but instead it's faulty batteries have resulted in a global | :01:21. | :01:25. | |
recall. Earlier I spoke with tech analyst takes orders and asked if | :01:26. | :01:29. | |
Samsung can recover from this massive recall. There will be some | :01:30. | :01:35. | |
impact on the third quarter but I think more of the consequences will | :01:36. | :01:38. | |
be felt in the fourth quarter even potentially after that. It is about | :01:39. | :01:41. | |
2.5 million phones have been recall but I think the challenge is not | :01:42. | :01:45. | |
everyone will hand them back. There is going to be someone with the | :01:46. | :01:49. | |
contacts, with pictures of their grandchildren, they are not aware of | :01:50. | :01:53. | |
the news and haven't handed it back. It won't have a sufficient impact on | :01:54. | :01:57. | |
the earnings guidance but now there are calls for the company to be | :01:58. | :02:02. | |
split two ways. Is this the way forward for Samsung? It is a huge | :02:03. | :02:13. | |
company. It sits on a cash pile of $69 billion. Comparatively, Apple | :02:14. | :02:18. | |
sits on $231 billion. In relation to that it is small fry but it is a | :02:19. | :02:22. | |
big, hegemonic company. At its root is -- it is an entrepreneurial | :02:23. | :02:30. | |
company, from fridges to smartphone, tablets, you cannot be the slow, | :02:31. | :02:35. | |
clunking bureaucratic companies to do that. Taking a look at the share | :02:36. | :02:39. | |
price on Thursday, it has reached a new record high. Well, of course you | :02:40. | :02:46. | |
have one point there being the news about the proposal to split the | :02:47. | :02:49. | |
company, but you also have the global recall and you also have a | :02:50. | :02:55. | |
succession issue that may impact the structure of Samsung going forward. | :02:56. | :02:59. | |
I'm not sure it will break up because of this. I think there are | :03:00. | :03:03. | |
too many vested interests. You are right it is a sure company. If you | :03:04. | :03:08. | |
look at the profitability, it is much lower than Apple. Samsung | :03:09. | :03:12. | |
outsells phones to 21 in terms of but profitability Apple outstrips | :03:13. | :03:19. | |
it. -- two to one. Samsung was trying to boost the profit margin | :03:20. | :03:24. | |
with the Note 7. That has been a roadblock. Will Samsung recover from | :03:25. | :03:28. | |
this global recall? It seems like they are making investment into | :03:29. | :03:31. | |
artificial intelligence. The story that Note 7 will keep bubbling and | :03:32. | :03:38. | |
popping for sometime to come. They are trying to diversify into | :03:39. | :03:42. | |
innovative areas. They have invested in Viv, it is an AI company. I don't | :03:43. | :03:48. | |
know if you saw Pixel from Google. It was Google assisted, artificial | :03:49. | :03:53. | |
intelligence. You have Siri with Apple and they are trying to do | :03:54. | :03:55. | |
something similar with their own AI construct. In other news:, | :03:56. | :04:05. | |
Twitter shares losing 20% of their value overnight in the US markets on | :04:06. | :04:09. | |
fears that the much anticipated sale of the company will draw minimal | :04:10. | :04:14. | |
interest from potential buyers. Shares headed south on reports that | :04:15. | :04:18. | |
neither Walt Disney nor Google will be making a bid for the social media | :04:19. | :04:23. | |
company. Deutsche Bank will cut 1000 jobs in Germany in addition to the | :04:24. | :04:28. | |
3000 job losses previously announced in June. The lender has been under | :04:29. | :04:33. | |
intense pressure over the last few weeks in US authorities asked the | :04:34. | :04:37. | |
bank to pay a final $14 billion US to settle an investigation into | :04:38. | :04:42. | |
mortgage-backed securities. That was to help boost its finances. Deutsche | :04:43. | :04:45. | |
Bank has been selling assets and promising cost cuts. | :04:46. | :04:46. | |
Now to the Philippines, where President Duterte marks 100 days in | :04:47. | :04:53. | |
office this weekend. He has made headlines for what is perceived to | :04:54. | :05:00. | |
erratic behaviour including telling Barack Obama to go to hell. He has | :05:01. | :05:11. | |
challenged the US and EU to end its eight. The stock market has taken a | :05:12. | :05:16. | |
tumble -- aid. Earlier I spoke with the head of the European Chamber of | :05:17. | :05:20. | |
Commerce in the Philippines and I asked him if Mr Duterte comments are | :05:21. | :05:23. | |
interacting the European business community. Locally the situation | :05:24. | :05:33. | |
seems to be contained but if you are at some of the local investors here, | :05:34. | :05:39. | |
foreign investors here in the local market, they are hesitant to expand | :05:40. | :05:43. | |
at this point in time. But no one has so far indicated they are going | :05:44. | :05:47. | |
to pull out. I think the danger is more bringing in new investment. If | :05:48. | :05:53. | |
you don't focus on Mr Duterte's statements and on his drug campaign, | :05:54. | :05:59. | |
what is your assessment of his economic reform programmes in his | :06:00. | :06:03. | |
first 100 days? So far we have to give him and his government, it is | :06:04. | :06:08. | |
very good, because the ten point agenda that they worked out, even | :06:09. | :06:15. | |
before he was nominated as President already, it covers a lot of issues | :06:16. | :06:21. | |
that they have tackled there. All of the ministers have been working on | :06:22. | :06:25. | |
the different resources and so far the feedback is positive that we | :06:26. | :06:30. | |
will achieve what we have set out to get done. Mr Duterte has rated | :06:31. | :06:39. | |
himself in the first 100 days six tenths, what about you, what is your | :06:40. | :06:47. | |
rating of his first 100 days? -- six out of ten. On the economy I would | :06:48. | :06:51. | |
say six out of ten makes a fair assessment. In other portions, like | :06:52. | :06:57. | |
for instance traffic situation, foreign policy, I would certainly | :06:58. | :07:02. | |
not give it a six out of ten. Because there is lots to be desired | :07:03. | :07:06. | |
in those aspects. Is Mr Duterte at this point in communication with the | :07:07. | :07:14. | |
ECCP? Is the open to dialogue to discuss what needs to be done to | :07:15. | :07:18. | |
move the Philippine economy forward? He talked to all his secretaries of | :07:19. | :07:22. | |
the different departments, especially trade, finance and | :07:23. | :07:26. | |
whatnot, and as I said earlier we are very much on track with what we | :07:27. | :07:30. | |
have set out to achieve within the 60 years of his presidency. The head | :07:31. | :07:41. | |
of the World Bank, Doctor Jim Kim, says the UN target of poverty is at | :07:42. | :07:46. | |
risk because of political backlash against global trade seen by many | :07:47. | :07:51. | |
economistss as the fastest driver of growth and the quickest way to lift | :07:52. | :07:54. | |
billions of people out of poverty. He spoke with our economics editor | :07:55. | :07:59. | |
in Washington. We can build all the infrastructure we want and then we | :08:00. | :08:02. | |
can increase trade among the emerging market countries. But at | :08:03. | :08:07. | |
the end of the day of if global trade does not grow at a robust rate | :08:08. | :08:11. | |
it will be difficult to reach those targets. We are going to work at it. | :08:12. | :08:16. | |
We know that it is not just investing in infrastructure and the | :08:17. | :08:20. | |
other sort of foundational elements of economic growth, you have to | :08:21. | :08:24. | |
invest in people, you have to have better social protection programmes | :08:25. | :08:27. | |
and better health programmes, so we will do all that. But if the | :08:28. | :08:33. | |
developed countries all close their borders it will be difficult, and it | :08:34. | :08:37. | |
will be difficult for those countries as well. Is that it will | :08:38. | :08:41. | |
be difficult, if there is a closing of boarders do you fear we may miss | :08:42. | :08:45. | |
those targets? We very well could, absolutely -- borders. Any of us who | :08:46. | :08:49. | |
have watched this up close, how important trade is for everybody, we | :08:50. | :08:53. | |
have not done a good enough job of telling that story to people in high | :08:54. | :08:58. | |
income countries. That was the president of the World Bank. With | :08:59. | :09:02. | |
the Paris global agreement on climate change to take effect next | :09:03. | :09:08. | |
month, the focus is on the airline industry. For the last 25 years of | :09:09. | :09:12. | |
the UN has tried and failed to get airlines to limit carbon emissions | :09:13. | :09:17. | |
but now the UN's aviation body, the ICAO, which sets global industry | :09:18. | :09:22. | |
rules, has endorsed a scheme to cut emissions. Here is how it works. | :09:23. | :10:19. | |
And finally, as you can see right now on the market boards, Asian | :10:20. | :10:24. | |
stock markets trading cautiously ahead of a key US employment report | :10:25. | :10:28. | |
to be released later today. Thank you so much for investing your time | :10:29. | :10:32. | |
with us. I am Rico Hizon. Sport Today is up next. | :10:33. | :10:39. | |
Before Sport Today, let's catch up with some of the headlines. Two days | :10:40. | :10:45. | |
after it was struck by Hurricane Matthew a picture is emerging of the | :10:46. | :10:49. | |
devastation on the south-western Tennessee off Haiti with 250 people | :10:50. | :10:53. | |
now dead -- south-western | :10:54. | :10:54. |