:00:00. > :00:00.This is Business Live from BBC News, with Ben Thompson and Sally Bundock.
:00:07. > :00:09.Samsung suspends sales of its Galaxy Note 7 smartphones
:00:10. > :00:13.and warns existing users to turn them off as the scandal grows over
:00:14. > :00:23.It could abandon the model altogether over fears that it could
:00:24. > :00:26.overheat and explode. Live from London, that's our top
:00:27. > :00:36.story on Tuesday 11th October. The electronics giant
:00:37. > :00:40.warns customers not We'll get the latest from our Asia
:00:41. > :00:44.business hub and assess what it means for Samsung
:00:45. > :00:53.with our technology correspondent. He has won with him, it is switched
:00:54. > :00:56.off. Regulators shut down the Singapore
:00:57. > :01:00.operations of a private Swiss bank over accusations
:01:01. > :01:08.of money laundering. Financial markets have got the
:01:09. > :01:12.jitters, with the rising price of oil and the falling pound. What does
:01:13. > :01:14.that mean for inflation? We will tell you all you need to know.
:01:15. > :01:17.We'll meet the member of the Rothschild family urging
:01:18. > :01:21.businesses to put people before profit and make society fairer.
:01:22. > :01:25.And, in the light of that Samsung saga, we want to know,
:01:26. > :01:28.has it damaged your trust in the brand?
:01:29. > :01:46.Let us know, use the hashtag #BBCBizLive.
:01:47. > :01:49.It's a disaster for Samsung at a critical time for
:01:50. > :01:57.It has told all users of its flagship Galaxy Note 7
:01:58. > :02:02.smartphone to switch them off whilst the company investigates new reports
:02:03. > :02:07.Samsung has also announced it is to stop all sales
:02:08. > :02:16.The company recalled 2.5 million phones in September after complaints
:02:17. > :02:21.of exploding batteries, and later assured customers that
:02:22. > :02:30.But there are now reports that even those phones were catching fire.
:02:31. > :02:37.Now, organisations such as the US Federal Aviation Administration
:02:38. > :02:41.are telling airline passengers with these phones they must be
:02:42. > :02:45.switched off and not stowed in checked-in baggage due
:02:46. > :02:50.The Galaxy Note 7 was meant to be Samsung's flagship phone,
:02:51. > :02:56.released just weeks before Apple's iPhone 7.
:02:57. > :02:59.It was well received, but since the scandal,
:03:00. > :03:06.Samsung shares have taken a major hit.
:03:07. > :03:09.There's also expected to be significant damage to brand
:03:10. > :03:20.There have been reports the firm is considering halting production of
:03:21. > :03:30.the phone altogether. We have talked about this since
:03:31. > :03:36.September, what is the latest today? Shares have taken a beating today,
:03:37. > :03:40.down by another 8%, after Samsung announced they would stop sales and
:03:41. > :03:45.they told users to turn their phone off. They are also facing a
:03:46. > :03:51.shareholder challenge from a hedge fund. All of the woes it is facing
:03:52. > :03:57.at the moment, it is giving the hedge fund ammunition to take their
:03:58. > :04:02.proposal to split Samsung into two. The hedge fund is looking to see
:04:03. > :04:06.them spin it off into an operating company and list that on the Nasdaq,
:04:07. > :04:11.to bring up the shareholder value of the company. This would be a major
:04:12. > :04:15.corporate shake-up, one of the biggest in history, and it will be
:04:16. > :04:22.hard, because Samsung is South Korea's biggest company, it has a
:04:23. > :04:32.complex structure, but shareholders are looking to change that.
:04:33. > :04:40.You have got the phone, it is turned off, but we should have some sort of
:04:41. > :04:44.risk assessment to have a PR. There was some chat about bringing a
:04:45. > :04:48.dangerous item into the studio. This was one of the original ones that
:04:49. > :04:53.were sent out in late August, early September, it should have been sent
:04:54. > :04:59.back already. Some song thought it had identified the original problem,
:05:00. > :05:02.which was that the battery was from one particular supplier and there
:05:03. > :05:07.was a fault at that one particular supplier. It withdrew them, it sent
:05:08. > :05:11.out new phones, with actress from different suppliers. Now in the last
:05:12. > :05:14.week we have had at least five different reports in the did state
:05:15. > :05:21.that replacement phones have suffered problems from catching
:05:22. > :05:28.fire, in a teenager's hand, and on an aircraft. The crisis for some
:05:29. > :05:33.song is they have failed to identify exactly what has gone wrong. Once
:05:34. > :05:37.they have identified it, they can act. As late as yesterday afternoon,
:05:38. > :05:43.I was talking to them about a British owner who was worried, he
:05:44. > :05:48.had a replacement phone, 1MDB said, don't worry, it is a replacement,
:05:49. > :05:54.everything is fine. If you hours later came the statement. The timing
:05:55. > :05:58.is also a disaster, the crucial holiday season coming up, people
:05:59. > :06:05.replace devices or buy new ones, and Google launching their phone. This
:06:06. > :06:11.is a great phone in many ways. When it first came out, it was so much...
:06:12. > :06:14.It was outlandish, it looked huge, now everybody else is doing them,
:06:15. > :06:22.but this phone set the pattern. It is not as big as the Galaxy S seven,
:06:23. > :06:29.which is the flagship, but it is a very well reviewed version. Very
:06:30. > :06:36.important to Samsung. Huge competition, not just from Apple's
:06:37. > :06:41.iPhone seven, but Google also hitting the top end of the market.
:06:42. > :06:48.That is an android phone, for those who don't want an Apple device. If
:06:49. > :06:55.you wanted a top end android phone, Samsung has been the dominant
:06:56. > :07:03.player. They have dominated the luxury end. It has been hard to make
:07:04. > :07:07.money, but Samsung have been making serious money at the top end of the
:07:08. > :07:14.market. That must be under threat. In terms of brand damage, Tim
:07:15. > :07:18.tweets, my faith in Samsung is not shaken, they are pushing the limits
:07:19. > :07:22.and bumps on the road to be expected. One person says, I will
:07:23. > :07:30.not ever buy one after this. That is the issue. There are lots of loyal
:07:31. > :07:36.fans, and I doubt that many of them will disappear, but you don't need
:07:37. > :07:40.to lose much of the market to have your margins really seriously
:07:41. > :07:42.threatened. It is becoming ever more competitive, margins have been
:07:43. > :07:54.getting thinner. It is a big problem. We are all over this, Rory
:07:55. > :07:58.and Dave Lee on Twitter, and our team in Asia. Keep it with the BBC
:07:59. > :08:02.for our latest. Keep your comments coming in as
:08:03. > :08:05.well, use the hashtag. Is your faith in Samsung tempted?
:08:06. > :08:12.The price of Brent crude oil has surged to its highest in a year
:08:13. > :08:14.after Russia said it will support Opec's plans to freeze production.
:08:15. > :08:17.The group of oil-producing nations are gathered once again,
:08:18. > :08:19.this time in Istanbul, on the side lines of
:08:20. > :08:26.Oil has come down a tad from its 15 month high.
:08:27. > :08:28.US investor Warren Buffett has released his tax details
:08:29. > :08:30.after Republican candidate Donald Trump accused him of using
:08:31. > :08:35.Mr Buffett said he had paid income tax every year since 1944,
:08:36. > :08:38.following Mr Trump's assertion that he had taken a "massive
:08:39. > :08:42.deduction" during Sunday's TV debate with Democrat Hillary Clinton.
:08:43. > :08:46.In 1995, Mr Trump claimed losses of $916 million
:08:47. > :08:59.There is no evidence he did anything illegal.
:09:00. > :09:07.The moral of the story, don't take on Warren Buffett.
:09:08. > :09:14.A quick look at our page. Sterling under $1 23. The continued fall in
:09:15. > :09:23.sterling. As promised, this proves we are live, a picture of Rory with
:09:24. > :09:26.his phone! I was feeling a little scared of that phone. Plenty more
:09:27. > :09:29.there, including on sterling. And another story we're
:09:30. > :09:33.following from Asia today, more fallout from Malaysia's
:09:34. > :09:38.1MDB investment-fund scandal. Let's head back to
:09:39. > :09:47.Leisha in Singapore. It has been a long-running saga,
:09:48. > :09:55.explain some of the detail on what we have heard today. The scandal has
:09:56. > :10:01.been rolling for years. The allegations are that more than $4
:10:02. > :10:05.billion was misappropriated. There are six countries investigating
:10:06. > :10:09.alleged corruption to do with 1MDB. Singapore is one of them, the
:10:10. > :10:17.development has to do with them kicking out a second Swiss bank from
:10:18. > :10:22.the city. The bank is Falk, accused of serious breaches of
:10:23. > :10:27.anti-money-laundering rules. In May BS I was kicked out for some and
:10:28. > :10:35.violations. In today's charges, UBS and a Singapore lender got
:10:36. > :10:38.financially penalised, and the local unit of Standard Chartered is also
:10:39. > :10:51.being investigated over possible breaking of these laws.
:10:52. > :10:58.A week Japanese currency helping stocks listed in Tokyo. Hong Kong
:10:59. > :11:02.hit pretty hard. Energy stocks pulling it down. The price of oil
:11:03. > :11:07.and down a little bit. Technology stocks pulled down. He story with
:11:08. > :11:15.Samsung, their suppliers, struggling.
:11:16. > :11:24.A mixed picture in Europe, fairly flat. The pound falling again today,
:11:25. > :11:26.four days in a row against the dollar, could be the worst run since
:11:27. > :11:27.June. And Samira Hussain has
:11:28. > :11:40.the details about what's ahead A high patent fight gets it day in
:11:41. > :11:43.court, nearly six years after the legal battle began. This is a fight
:11:44. > :11:49.between the design similarities between Apple and Samsung
:11:50. > :11:56.smartphones. Samsung is appealing an earlier decision that would have had
:11:57. > :11:59.them paying $548 million to Apple for a patent infringement. This
:12:00. > :12:06.comes at a difficult time for Samsung as it deals with its woes
:12:07. > :12:12.over its phones. Also happening, a new season for earnings, beginning
:12:13. > :12:16.on Tuesday. The first company will report, the last quarterly results
:12:17. > :12:20.before the metals company splits into two.
:12:21. > :12:22.Joining us is Jane Sydenham, investment director
:12:23. > :12:34.Let's talk oil, it is back-up, just when you thought things were
:12:35. > :12:40.starting to calm down. We might see more money in our pockets? I don't
:12:41. > :12:50.think it will be the case. Russia is trying to cooperate with Opec, to
:12:51. > :12:56.agree a reduction in production, although Opec has so far only agreed
:12:57. > :13:01.a freeze. It shows an intent. A lot of these nations are under pressure.
:13:02. > :13:05.What it means for us is not only is the price rising, which means it
:13:06. > :13:09.costs more to fill up the car, but the dollar has been rising against
:13:10. > :13:16.sterling, so you have a double whammy. That is pushing up
:13:17. > :13:21.inflation. Sterling has been weak, so food import prices, and clothing
:13:22. > :13:26.import prices, they are rising, so inflation should be pushed up. The
:13:27. > :13:31.next Opec meeting is in November in Vienna. That is when we are
:13:32. > :13:35.expecting them to say, we have agreed to the freeze that we have
:13:36. > :13:39.put out there to financial markets. It will be interesting to see if
:13:40. > :13:44.they can finally agree to that, because who will agree to cutting
:13:45. > :13:48.what? Exactly. The world will want to see the evidence that there is a
:13:49. > :13:56.genuine cut taken place. What will it mean for inflation? The issue
:13:57. > :14:00.with a weak pound, oil going up, energy prices going up, it could be
:14:01. > :14:07.a problem for us in the future. Our ideal inflation target is around 2%.
:14:08. > :14:12.At the moment the CPI is not .6, 0.7. The fact that sterling has
:14:13. > :14:20.fallen should push inflation up I 1% anyway. If we see rage rises come up
:14:21. > :14:24.oil prices going up, inflation will start to take up, which is good as
:14:25. > :14:29.long as we are around 2%. If it really started to run away, that is
:14:30. > :14:32.not good, because that has an effect on expectations for interest rates
:14:33. > :14:37.and all sorts of things. It is very early days at the moment. You will
:14:38. > :14:38.return to talk is through some paper stories.
:14:39. > :14:42.We'll meet the Rothschild persuading companies to embrace
:14:43. > :14:56.You're with Business Live from BBC News.
:14:57. > :15:02.We have seen a lot of market volatility, and it has had an impact
:15:03. > :15:07.on one company's decision over whether it should float or not.
:15:08. > :15:10.It was going to be the largest IPO planned since June's vote to leave
:15:11. > :15:15.the EU, but it has now been cancelled.
:15:16. > :15:22.Pure Gym has pulled the plug on it, citing market volatility.
:15:23. > :15:29.What's the reasoning? Market volatility covers a lot of things?
:15:30. > :15:35.It does, indeed. It seems to suggest that investors are getting cold feet
:15:36. > :15:41.and recent IFOs haven't done as well as expected. It is the UK's biggest
:15:42. > :15:46.gym operator. It has been expanding rapidly. Largely due to a business
:15:47. > :15:49.model which allows people to pay monthly and weekly or by the day
:15:50. > :15:56.rather than having to commit for a full year and pay a large annual
:15:57. > :15:59.fee. It is in the value sector, a low-cost gym chain. They announced
:16:00. > :16:03.they were going to float on the stock market in September. So a long
:16:04. > :16:08.time after the Brexit vote. But they have decided that that doesn't look
:16:09. > :16:12.great and I'm led to believe that's because recent IPOs of similar sized
:16:13. > :16:16.companies haven't done too well. They are worried although there is
:16:17. > :16:20.initial investor interest, the share price may not be sustain over the
:16:21. > :16:24.next year or two and they don't know what the immediate future holds. So
:16:25. > :16:31.it is better safe than sorry. Pull the IPO now and perhaps return on
:16:32. > :16:41.another day. If you want more details on that
:16:42. > :16:52.story, there is more on the website. It is a featured on the Business
:16:53. > :16:58.Live page. It is a story of sterling today.
:16:59. > :17:02.Yes, sterling all over the financial press. Everyone keeping a close eye.
:17:03. > :17:06.It is good news and bad news depending what you're up to. If
:17:07. > :17:10.you're planning on travelling abroad, it is bad news. It is Budget
:17:11. > :17:13.Day in Ireland and the UK traveller to Ireland is one of their biggest
:17:14. > :17:17.areas when it comes to their tourism industry. So they're watching this
:17:18. > :17:22.veriks very closely and they export a lot to the UK and Ireland imports
:17:23. > :17:27.a lot from the UK. So lots of ramifications for that.
:17:28. > :17:31.We're keeping an eye on that story for Samsung. Good news for Apple and
:17:32. > :17:35.Google as a result of that scandal at Samsung.
:17:36. > :17:38.Our top story: Samsung has suspended sales
:17:39. > :17:44.The move follows continuing reports that battery problems are causing
:17:45. > :17:46.some phones to catch fire including replacements.
:17:47. > :18:03.South Korean safety authorities say they're investigating.
:18:04. > :18:06.Some reports suggest Samsung may ditch the model entirely because of
:18:07. > :18:09.the problems. A quick look at how
:18:10. > :18:21.markets are faring. We are keeping a close on the pound
:18:22. > :18:26.and dollar exchange rate. Brent Crude earlier today above $53 a
:18:27. > :18:31.barrel. The last look just below $53 a barrel. Energy shares have been
:18:32. > :18:39.sensitive. They were up strongly on Monday as the price of oil surged.
:18:40. > :18:43.The trigger for Monday's 15 month hike in oil was Russia saying they
:18:44. > :18:48.would adhere to the production freeze announced earlier by Opec.
:18:49. > :18:51.Can the world's biggest companies help make the world a better place
:18:52. > :18:54.That's the fundamental question when it comes to what's known
:18:55. > :19:08.AXA Investment is - for example - pledging to make 75%
:19:09. > :19:14.of its real estate investments green.
:19:15. > :19:17.Top business leaders from around the world gathered in New York
:19:18. > :19:19.to debate exactly that and Samira Hussain went along
:19:20. > :19:21.to speak with the coalitions founder Lynn de Rothschild
:19:22. > :19:23.about whether investors can really change the world.
:19:24. > :19:26.We are as investors not only looking at what did you do
:19:27. > :19:28.in the last quarter, were you up half
:19:29. > :19:32.No, what we want to know is what did you do for your customers?
:19:33. > :19:40.And if we as investors say that and we have $43 trillion of assets
:19:41. > :19:43.under management involved with us at the CEO and CIO level so that's
:19:44. > :19:48.almost two-thirds of assets under management in the world.
:19:49. > :19:51.So if we all decide that we are going to ask inclusive
:19:52. > :19:54.questions of our management and where we put our money,
:19:55. > :20:07.How do you avoid turning into a meeting of elites that don't
:20:08. > :20:11.We are asking everyone who comes to make a commitment that works
:20:12. > :20:15.for their organisation, for their shareholders,
:20:16. > :20:18.for their employees that leads them on a path to more inclusive
:20:19. > :20:21.capitalism and the coalition for inclusive capitalism actually
:20:22. > :20:26.works through the year with all of these organisations
:20:27. > :20:32.to measure progress and we're not prescriptive and we don't have
:20:33. > :20:42.We believe that a journey of 1,000 miles starts with the first
:20:43. > :20:54.step and we are grateful for the first step.
:20:55. > :20:57.So I think that's how we really differiate ourselves from a Davos.
:20:58. > :21:01.People come to learn and to think and then to implement action
:21:02. > :21:03.and that's where we really hope we distinguish ourselves.
:21:04. > :21:06.Either we really believe that capitalism works for everyone
:21:07. > :21:13.and we make it or we don't and if we don't, shame on us
:21:14. > :21:16.and I think those companies that have let ethics go or let treatment
:21:17. > :21:18.of employees go should be penalised by investors.
:21:19. > :21:21.I'm glad you raised the issue of cynicism, especially
:21:22. > :21:24.in this election cycle, I'm wondering if you feel that this
:21:25. > :21:31.I think it is true that the system has let too many people
:21:32. > :21:45.In this country, the medium income has not risen since 2000.
:21:46. > :21:48.Now, granted last year it did go up by almost 4.5%
:21:49. > :21:50.which is an improvement, but 90% of the gains,
:21:51. > :21:52.after the great recession, went to the top 5%.
:21:53. > :21:57.And that's why people are angry and so I don't think those
:21:58. > :22:05.I think those people are right and I think
:22:06. > :22:09.it is our obligation to bring them back in so we are all in this
:22:10. > :22:12.society and in this economy together as one.
:22:13. > :22:16.What would you say to the people that have become disheartened
:22:17. > :22:19.with the way that the economy and the way big businesses are run?
:22:20. > :22:24.I can promise you that the majority of the people in the 1% want
:22:25. > :22:28.an economy and a society that works for everyone.
:22:29. > :22:39.That the arc of history does bend towards justice and we have made
:22:40. > :22:43.mistakes in the business and in the investment community.
:22:44. > :22:50.I can grant that, but I also know that by and large the bulk
:22:51. > :23:03.of the people who you call the 1% want a better outcome for everyone.
:23:04. > :23:10.Lots of you getting in touch with the top story related to Samsung and
:23:11. > :23:14.whether it would dent your confidence in the brand. Whether you
:23:15. > :23:19.would still buy a Samsung. A viewer says, "They have got my trust. All
:23:20. > :23:25.my previous Samsung phones have been amazing." Nick says, "I have had a
:23:26. > :23:33.Note 7 and I have had it replaced, but I've had enough now." One viewer
:23:34. > :23:37.says I'll get another Samsung when the bugs are fixed. I will never get
:23:38. > :23:47.an Apple. This one which cracked me up. This is from Nicotine Lee, "I
:23:48. > :23:53.have a Galaxy S6 and if my Samsung exploded in my hands, I would still
:23:54. > :23:57.buy a new Samsung phone." Jay says, "It changed my life and then it was
:23:58. > :24:01.gone. The best phone this year. Hands down regardless of the
:24:02. > :24:05.problems." Jane is back with us to talk us through the stories in the
:24:06. > :24:07.papers. Jane, let's stay with the technology theme and talk about
:24:08. > :24:18.Facebook because it is moving into new territory? It is. It is. It is
:24:19. > :24:22.launch ago rival to linked in. It is networking for business. So not
:24:23. > :24:26.really posting of your cat, but spread sheets instead! And
:24:27. > :24:32.networking on a global basis to do with business. A big change. It is
:24:33. > :24:35.quite interesting for Facebook thaws that's the area it hasn't
:24:36. > :24:39.infiltrated successfully. It has very much got the market of social
:24:40. > :24:43.news and what you're up to on the weekends and your own personal life,
:24:44. > :24:46.but not the office? I mean it is a gap and it would be interesting to
:24:47. > :24:50.see how successful it is and it is really going to put measure on
:24:51. > :24:54.linked in. Let's turn our attention elsewhere
:24:55. > :24:59.to Dubai, a place that I spent many a year. This is an interesting one.
:25:00. > :25:02.A new tall tower, they have got the world's tallest, but they want a
:25:03. > :25:08.taller one. This is interesting when it comes to things like timing, you
:25:09. > :25:14.build in a downturn and then are ready in another downturn? It is
:25:15. > :25:18.interesting. Another 100 meters above the tallest building in Dubai.
:25:19. > :25:22.It is not good for those of scared of heights, but timing is everything
:25:23. > :25:26.and anticipating what the cycle is going to be is pretty difficult.
:25:27. > :25:30.Obviously, if the oil price improves, it will help as far as
:25:31. > :25:35.Dubai are concerned, but it is also, you know, it sends a signal to the
:25:36. > :25:39.rest of the world. How long it will take, I don't know, but we will have
:25:40. > :25:45.to wait and see where the business cycle is. Have you been to the top?
:25:46. > :25:49.Me? Yes, I reported from the top. I have got a bit of a head for heights
:25:50. > :25:56.so it was all right. But it tends to be very dusty so the view to be
:25:57. > :26:00.amaze, but you don't see very much. Thank you for your company. That's
:26:01. > :26:02.Business Live for another day. We're back tomorrow. Same time, same
:26:03. > :26:13.place, bye-bye. Hello there. The weather is stuck in
:26:14. > :26:17.a little bit of a rut for the next few days. The only thing that will
:26:18. > :26:21.start to change is the strength of the wind and it will continue to
:26:22. > :26:22.come in from the east thanks to this area of high