07/07/2017 Asia Business Report

still appears to be making a lot of money. And the G20 meets in Germany.

We look at how America's Protectionist stance is affecting

its global position. Hello and welcome to Asia Business Report. I

am Sharanjit Leyl. From exploding mobile phone batteries to its chief

executive being behind bars, Samsung has had its share of scandals,

lately. Despite all about, it is more money than Apple in the first

quarter for the first time, with profit coming in at over $12

billion. And as this mobile research analyst explained, it is all due to

its chip business. Samsung has found itself in a fortunate position where

there is undersupplied in the chip business and there is a strong

demand for high capacity, high density memory chips. So that has

driven the prices up and, Samsung being the one with the biggest

capacity in the technology, has benefited tremendously. Shareholders

have been driving the shares up in recent months. Do they have a

short-term memory? If you just rewind a year, you had those

exploding Galaxy Note 7 is that cost the company billions in profit. The

Galaxy Note 7 debacle is not really have a link to the chip business,

and you see that the chip business is now a major contributor to profit

for the company. If you look at the smartphone business as a whole, with

the recently launched Galaxy S8, you can see that they are not too

affected by the Galaxy Note 7 the buckle. And with that de facto boss

behind bars, there appears to be some sort of power vacuum. Are these

profits that we are seeing at the moment projected for Samsung, will

they likely be sustainable? We can definitely say that the profits will

stay at this current momentum for a least 2017 or 2018. Because of the

supply constraint in the chip business. But for Samsung, there are

longer-term problem is that they have to look at how the smartphone

business has been losing money in terms of revenue, and profit

contribution has been lowered. So they have been heavily attacked in

the mid range in the developing markets, and that is it clear

problem for them. As we have been telling you about on Newsday, at the

G20 has traditionally been a place for leaders of the world's largest

economies to discuss global issues, like free trade or international

financial stability. But today's summits sees these leaders divided

on many topics, including North Korea will stop so will trade get a

mention? And how will America's protectionist does affect its

position on the global stage? I put that to Tom Rafferty. The US is

probably not to play a role in driving globalisation like did in

previous decades, under Donald Trump. That was a key part of his

election campaign, and he is looking to increment those policies in

office. One of the key things to look at this meeting will be his

discussions on the sidelines with Xi Jinping. They are coming towards the

end of the 108 trade negotiation period. -- 100 day. We will now see

if they could be further US retired reactions on China. So that trade

negotiation is going to end very soon Tom Rafferty there. Now, the EU

and Japan have cited major deal. It has been hailed as the birth of the

largest free-trade zone in the world, covering a third of the

world's economy, and that is over $21 trillion. EU officials say it

will boost the EU economy by .8%, and Japan's by almost a third of a

percent. This follows the withdrawal from the TPP. Let's hear what the

Japanese Ambassador to the European Union had to say. We have not given

up hope that Donald Trump could return to the TPP. The European and

Japanese trade deal will be a model for people to follow. Microsoft is

announcing thousands of cuts worldwide, and it is expected to hit

the sales team the hardest. The technology giant wants to beef of

its presence in the cloud computing sector, but is facing opposition

from us on and Google. Tesla has lost its title as America's most

valuable carmaker. It wiped almost $8 billion off its capitalisation.

General Motors has reclaimed that title. Same with the car industry,

for years, companies like Toyota were concerned that younger people,

so called millennial is, would buy fewer cars. But the Japanese car

giant feels that danger is no longer real, at least in America. Michelle

Fleury has more. Further's new headquarters in Texas. Too did the

centre, a climbing wall, two stories, doctors offices... It is

all would you expect today in a modern campus. From the inside out,

Toyota is targeting generation Y, those born between the early 80s and

90s. The group better known as millennial. There was a belief of

years ago the general I was not interested in purchasing cars. That

they were interested in ride-sharing and car sharing. -- millenials. That

is not necessarily the case today. 90% of Toyota's American sales last

year was to millenials. If you look at small luxury SUV is, a lot of

that is being driven by General Y. It is easy to see why it carmakers

are going up to this group. They make of a fast-growing segment of

new buyers in the United States. -- gen Y. Tailoring its ad campaign to

appeal this group. Toyota got YouTube start Bad Lip Reader to sub

its commercials. A lot of these people came out of college with

debts, jobs, but not necessarily Korea's. It is now goes beyond that.

Their desire to buy cars is now coming back. For dirt and its new

campus, moving with the times and appealing to a new generation.

Michelle Fleury, BBC News, New York. -- for Toyota. The growing middle

class means Asia's demand for food is rising fast. That is a lucrative

opportunity for companies in the agri- food business. One comedy that

is tapping into this is Royal DSM. I asked a broadband how they could

make the industry more sustainable. If people move to you basically need

to do more with the land. One third of food goes to waste. Can you

imagine in a world where urbanisation takes place?

Sustainability, getting more out of the land, efficiently, but reducing

waste, is the key area for the future. That is extremely. A third

of food going to waste. Often go from farmers and getting spoilt on

the way to the shops. We know it is a five trillion dollar opportunity.

-- going from. The opportunities are almost everywhere. Let me pick one.

Rice. 2 billion in the world, 2 billion people, it cries. The only

of rice is that it missing the micro nutrition. Nutritionally, it is not

good enough. It could fortify that rice and said about 230 or 50,000

migrant workers in Singapore, you increase and improve health of these

people. That is one example. But how long does it take for an idea, the

innovations that you are suggesting, to become applicable to everyday

life, like for instance, how do you even stop this third of food getting

spoilt? I think that is an excellent question. We were a little

frustrated on the way. The speed of that implementation is not where it

is. And industry chain is beefing up their efforts on it. We need to find

an incentive to accelerate that, such as a carbon price will stop

just to accelerate the transition. Every crippled the market before we

go. And the ones that have opened, they are taking their keys from Wall

Street. The Nikkei is done half a percent. Australia down 1%. This is

really due to a slump in iron ore futures. We also have the key jobs

numbers coming out of the US. And that is it for Asia Business Report

today. Thank you for joining us. You're watching BBC News. Our main

story this hour: Police in Germany have clashed

with protestors as world leaders gather in Hamburg ahead

of the G20 summit.