:00:00. > :00:00.still appears to be making a lot of money. And the G20 meets in Germany.
:00:00. > :00:15.We look at how America's Protectionist stance is affecting
:00:16. > :00:19.its global position. Hello and welcome to Asia Business Report. I
:00:20. > :00:24.am Sharanjit Leyl. From exploding mobile phone batteries to its chief
:00:25. > :00:28.executive being behind bars, Samsung has had its share of scandals,
:00:29. > :00:34.lately. Despite all about, it is more money than Apple in the first
:00:35. > :00:41.quarter for the first time, with profit coming in at over $12
:00:42. > :00:46.billion. And as this mobile research analyst explained, it is all due to
:00:47. > :00:52.its chip business. Samsung has found itself in a fortunate position where
:00:53. > :00:57.there is undersupplied in the chip business and there is a strong
:00:58. > :01:03.demand for high capacity, high density memory chips. So that has
:01:04. > :01:10.driven the prices up and, Samsung being the one with the biggest
:01:11. > :01:14.capacity in the technology, has benefited tremendously. Shareholders
:01:15. > :01:17.have been driving the shares up in recent months. Do they have a
:01:18. > :01:24.short-term memory? If you just rewind a year, you had those
:01:25. > :01:31.exploding Galaxy Note 7 is that cost the company billions in profit. The
:01:32. > :01:36.Galaxy Note 7 debacle is not really have a link to the chip business,
:01:37. > :01:41.and you see that the chip business is now a major contributor to profit
:01:42. > :01:51.for the company. If you look at the smartphone business as a whole, with
:01:52. > :01:55.the recently launched Galaxy S8, you can see that they are not too
:01:56. > :02:00.affected by the Galaxy Note 7 the buckle. And with that de facto boss
:02:01. > :02:06.behind bars, there appears to be some sort of power vacuum. Are these
:02:07. > :02:10.profits that we are seeing at the moment projected for Samsung, will
:02:11. > :02:18.they likely be sustainable? We can definitely say that the profits will
:02:19. > :02:25.stay at this current momentum for a least 2017 or 2018. Because of the
:02:26. > :02:29.supply constraint in the chip business. But for Samsung, there are
:02:30. > :02:35.longer-term problem is that they have to look at how the smartphone
:02:36. > :02:40.business has been losing money in terms of revenue, and profit
:02:41. > :02:44.contribution has been lowered. So they have been heavily attacked in
:02:45. > :02:50.the mid range in the developing markets, and that is it clear
:02:51. > :02:54.problem for them. As we have been telling you about on Newsday, at the
:02:55. > :02:59.G20 has traditionally been a place for leaders of the world's largest
:03:00. > :03:04.economies to discuss global issues, like free trade or international
:03:05. > :03:06.financial stability. But today's summits sees these leaders divided
:03:07. > :03:13.on many topics, including North Korea will stop so will trade get a
:03:14. > :03:16.mention? And how will America's protectionist does affect its
:03:17. > :03:23.position on the global stage? I put that to Tom Rafferty. The US is
:03:24. > :03:28.probably not to play a role in driving globalisation like did in
:03:29. > :03:32.previous decades, under Donald Trump. That was a key part of his
:03:33. > :03:35.election campaign, and he is looking to increment those policies in
:03:36. > :03:39.office. One of the key things to look at this meeting will be his
:03:40. > :03:45.discussions on the sidelines with Xi Jinping. They are coming towards the
:03:46. > :03:58.end of the 108 trade negotiation period. -- 100 day. We will now see
:03:59. > :04:02.if they could be further US retired reactions on China. So that trade
:04:03. > :04:11.negotiation is going to end very soon Tom Rafferty there. Now, the EU
:04:12. > :04:15.and Japan have cited major deal. It has been hailed as the birth of the
:04:16. > :04:21.largest free-trade zone in the world, covering a third of the
:04:22. > :04:26.world's economy, and that is over $21 trillion. EU officials say it
:04:27. > :04:33.will boost the EU economy by .8%, and Japan's by almost a third of a
:04:34. > :04:37.percent. This follows the withdrawal from the TPP. Let's hear what the
:04:38. > :04:43.Japanese Ambassador to the European Union had to say. We have not given
:04:44. > :04:53.up hope that Donald Trump could return to the TPP. The European and
:04:54. > :04:59.Japanese trade deal will be a model for people to follow. Microsoft is
:05:00. > :05:03.announcing thousands of cuts worldwide, and it is expected to hit
:05:04. > :05:09.the sales team the hardest. The technology giant wants to beef of
:05:10. > :05:12.its presence in the cloud computing sector, but is facing opposition
:05:13. > :05:22.from us on and Google. Tesla has lost its title as America's most
:05:23. > :05:26.valuable carmaker. It wiped almost $8 billion off its capitalisation.
:05:27. > :05:31.General Motors has reclaimed that title. Same with the car industry,
:05:32. > :05:35.for years, companies like Toyota were concerned that younger people,
:05:36. > :05:40.so called millennial is, would buy fewer cars. But the Japanese car
:05:41. > :05:46.giant feels that danger is no longer real, at least in America. Michelle
:05:47. > :05:53.Fleury has more. Further's new headquarters in Texas. Too did the
:05:54. > :05:57.centre, a climbing wall, two stories, doctors offices... It is
:05:58. > :06:01.all would you expect today in a modern campus. From the inside out,
:06:02. > :06:06.Toyota is targeting generation Y, those born between the early 80s and
:06:07. > :06:11.90s. The group better known as millennial. There was a belief of
:06:12. > :06:15.years ago the general I was not interested in purchasing cars. That
:06:16. > :06:21.they were interested in ride-sharing and car sharing. -- millenials. That
:06:22. > :06:26.is not necessarily the case today. 90% of Toyota's American sales last
:06:27. > :06:31.year was to millenials. If you look at small luxury SUV is, a lot of
:06:32. > :06:35.that is being driven by General Y. It is easy to see why it carmakers
:06:36. > :06:43.are going up to this group. They make of a fast-growing segment of
:06:44. > :07:01.new buyers in the United States. -- gen Y. Tailoring its ad campaign to
:07:02. > :07:15.appeal this group. Toyota got YouTube start Bad Lip Reader to sub
:07:16. > :07:20.its commercials. A lot of these people came out of college with
:07:21. > :07:25.debts, jobs, but not necessarily Korea's. It is now goes beyond that.
:07:26. > :07:29.Their desire to buy cars is now coming back. For dirt and its new
:07:30. > :07:34.campus, moving with the times and appealing to a new generation.
:07:35. > :07:41.Michelle Fleury, BBC News, New York. -- for Toyota. The growing middle
:07:42. > :07:46.class means Asia's demand for food is rising fast. That is a lucrative
:07:47. > :07:56.opportunity for companies in the agri- food business. One comedy that
:07:57. > :08:01.is tapping into this is Royal DSM. I asked a broadband how they could
:08:02. > :08:07.make the industry more sustainable. If people move to you basically need
:08:08. > :08:12.to do more with the land. One third of food goes to waste. Can you
:08:13. > :08:15.imagine in a world where urbanisation takes place?
:08:16. > :08:18.Sustainability, getting more out of the land, efficiently, but reducing
:08:19. > :08:23.waste, is the key area for the future. That is extremely. A third
:08:24. > :08:30.of food going to waste. Often go from farmers and getting spoilt on
:08:31. > :08:37.the way to the shops. We know it is a five trillion dollar opportunity.
:08:38. > :08:44.-- going from. The opportunities are almost everywhere. Let me pick one.
:08:45. > :08:48.Rice. 2 billion in the world, 2 billion people, it cries. The only
:08:49. > :08:54.of rice is that it missing the micro nutrition. Nutritionally, it is not
:08:55. > :08:58.good enough. It could fortify that rice and said about 230 or 50,000
:08:59. > :09:06.migrant workers in Singapore, you increase and improve health of these
:09:07. > :09:09.people. That is one example. But how long does it take for an idea, the
:09:10. > :09:15.innovations that you are suggesting, to become applicable to everyday
:09:16. > :09:19.life, like for instance, how do you even stop this third of food getting
:09:20. > :09:23.spoilt? I think that is an excellent question. We were a little
:09:24. > :09:27.frustrated on the way. The speed of that implementation is not where it
:09:28. > :09:37.is. And industry chain is beefing up their efforts on it. We need to find
:09:38. > :09:46.an incentive to accelerate that, such as a carbon price will stop
:09:47. > :09:50.just to accelerate the transition. Every crippled the market before we
:09:51. > :09:55.go. And the ones that have opened, they are taking their keys from Wall
:09:56. > :09:59.Street. The Nikkei is done half a percent. Australia down 1%. This is
:10:00. > :10:10.really due to a slump in iron ore futures. We also have the key jobs
:10:11. > :10:12.numbers coming out of the US. And that is it for Asia Business Report
:10:13. > :10:16.today. Thank you for joining us. You're watching BBC News. Our main
:10:17. > :10:22.story this hour: Police in Germany have clashed
:10:23. > :10:25.with protestors as world leaders gather in Hamburg ahead
:10:26. > :10:30.of the G20 summit.