:00:00. > :00:00.This is Business Live from BBC News with Aaron
:00:07. > :00:12.Samsung Electronics expects to report a 50% surge in fourth
:00:13. > :00:15.quarter profits despite the fiasco with its flagship Note 7 phone.
:00:16. > :00:34.Live from London, that's our top story on Friday 6th January.
:00:35. > :00:38.Samsung's on track for its best profit in years -
:00:39. > :00:48.and pledges to put the Galaxy Note 7 debacle behind it.
:00:49. > :00:53.And the power of a Trump Tweet - the President-elect threatens
:00:54. > :00:55.Toyota, and the result - $1.2 billion is wiped off
:00:56. > :01:01.the value of the company in less than five minutes.
:01:02. > :01:10.The markets appeared to be risk on mode. We'll tell you why.
:01:11. > :01:13.Can economists be compared to weather-forecasters when it comes
:01:14. > :01:17.Our Economics editor Kamal Ahmed will be here with that
:01:18. > :01:19.and a look back at the rest of the business week.
:01:20. > :01:22.And following the impact of Donald Trump's Toyota tweet,
:01:23. > :01:24.we want to know what's the biggest Twitter storm you've ever sparked?
:01:25. > :01:40.We start with Samsung - because in the last few hours
:01:41. > :01:44.the South Korean tech giant has said it's on track for the best quarterly
:01:45. > :01:50.It's a major boost for the company after the exploding smartphone
:01:51. > :02:02.scandal that put a serious dent in its reputation.
:02:03. > :02:05.In the three months to the end of December, Samsung is forecasting
:02:06. > :02:13.That's up by half on the same period last year,
:02:14. > :02:21.much better than expected and the best quarter since mid-2013.
:02:22. > :02:28.That might come as a surprise, as we know Samsung was forced
:02:29. > :02:32.to scrap its top of the range phone, the Galaxy Note 7, after a spate
:02:33. > :02:39.Hugely embarrassing and hugely expensive.
:02:40. > :02:41.It has warned the scandal sent more than $5 billion
:02:42. > :02:53.Samsung makes chips and screens for the whole tech industry.
:02:54. > :02:56.Samsung hasn't revealed the details but it's thought to have been
:02:57. > :03:02.the best quarter ever for its semiconductor division.
:03:03. > :03:07.It makes the complex chips that are more and more in demand
:03:08. > :03:13.as phones get smarter, and the prices of those have jumped.
:03:14. > :03:15.So despite the exploding phone scandal, Samsung's investors have
:03:16. > :03:17.had a pretty good year, shares up by almost 50%
:03:18. > :03:28.Cyrus Mewawalla, managing director of global technology research
:03:29. > :03:42.Thank you for coming in. Looking at those figures, giving everything
:03:43. > :03:47.that's happened in the past year, it sounds like a pretty positive result
:03:48. > :03:51.from shareholders but how will they be feeling? I think Samsung
:03:52. > :03:58.management have done a very good job this year. Record profits and the
:03:59. > :04:03.share price has gone up 50%. Looking forward, Samsung's future may not be
:04:04. > :04:08.that rosy for the rest of 2017. Earnings momentum will carry it for
:04:09. > :04:12.a few weeks or months, but there are big roadblocks ahead of the Samsung.
:04:13. > :04:16.It's a very successful hardware company, the eighth largest tech
:04:17. > :04:25.company in the world, but it's week on software. If you look at the fact
:04:26. > :04:31.Samsung are strong on chips and smartphones but that is yesterday's
:04:32. > :04:36.story. Tomorrow's story is a whole new theme of technology, artificial
:04:37. > :04:40.intelligence, virtual reality, internet TV, cyber security, the
:04:41. > :04:45.Cloud. All these things have one thing in common which is software.
:04:46. > :04:50.You need to have a software ecosystem to plug into which is
:04:51. > :04:57.where Samsung is weak. I was talking to an expert this morning who was
:04:58. > :05:06.telling us about the price of chips. Normally chip prices have come down
:05:07. > :05:11.but some of the chips, D-Ram? Those prices are up, why are those prices
:05:12. > :05:14.up? Prices of D-Ram have risen because there was an unexpectedly
:05:15. > :05:20.good demand from smartphone makers all around the world. If you ask any
:05:21. > :05:25.analyst, he'll have a massive supply and demand model. They will move out
:05:26. > :05:30.of sync and when there is too much demand prices will go up. This can
:05:31. > :05:37.change very, very quickly. What's more important in 2017 as far as
:05:38. > :05:41.Samsung's chip division is concerned is new chip technologies. Samsung is
:05:42. > :05:45.a specialist in memory chips, but what is happening around the world
:05:46. > :05:48.is chip architectures are changing so logic chips and memory chips are
:05:49. > :05:55.coming closer together and new type vulnerable types of chips are being
:05:56. > :06:02.developed. AI chips are going to be big. Intel and Micron are developing
:06:03. > :06:05.a new chip that could blow the technology out of the water. Thank
:06:06. > :06:07.you for joining us this morning. The Australian economy has
:06:08. > :06:14.recorded its first trade surplus The latest official numbers show
:06:15. > :06:24.the country exported more than $900 million more goods
:06:25. > :06:26.and services than it The resource rich nation saw big
:06:27. > :06:30.growth in exports of coal, It means Australia is likely
:06:31. > :06:33.to avoid the recession that some economists had feared,
:06:34. > :06:35.after the economy's suprise in contraction in the third
:06:36. > :06:44.quarter of last year. Mexico's president has
:06:45. > :06:45.defended a sharp increase in the price of petrol
:06:46. > :06:47.despite protests and looting. More than 250 people
:06:48. > :06:49.have been arrested. Fuel prices went up by as much
:06:50. > :06:52.as 20% at the beginning of the month Enrique Pena Nieto said the changes
:06:53. > :06:58.were necessary because of the rise The average price of a gallon
:06:59. > :07:19.of petrol is now almost as much You've got the live page. What did
:07:20. > :07:25.you find? In the UK we've got some results out today. We mentioned
:07:26. > :07:29.Next, a huge UK retailer. Share is continuing to fall after a
:07:30. > :07:33.disappointing Christmas sales. That story is being reflected around the
:07:34. > :07:38.world. What about this, outsmarted by your toothbrush. This is from the
:07:39. > :07:43.consumer Electronics show. I think it's smart, it tells me how long
:07:44. > :07:55.I've been doing it for but it also says if you are pressing too hard.
:07:56. > :08:04.It's not a fancy things. Tesla? That is yesterday's! Let's move on! Let's
:08:05. > :08:09.talk about this. The power of a tweet, some can be good, some can be
:08:10. > :08:16.bad. Shares in the Japanese car-maker Toyota closed nearly 1.7%
:08:17. > :08:20.down. They were at one point down nearly 3%. It is because Donald
:08:21. > :08:37.Trump did something. He sent a tweet. He wrote that...
:08:38. > :08:50.Sarah, sorry, we are just chatting away! Good to see you. At one point
:08:51. > :08:57.that Trump tweet knocked $1.2 billion off the value of Toyota!
:08:58. > :09:02.That's right. As you said, Toyota shares fell more than 3% in early
:09:03. > :09:08.trade on Friday. But they did recover some ground. Closing down
:09:09. > :09:12.around 1.7%. You have do remember, too, that the drop could be due to
:09:13. > :09:18.the power of a Trump tweet, but it could also have been influenced by a
:09:19. > :09:25.slightly stronger yen which is bad news for the country's exporters.
:09:26. > :09:29.Despite Mr Trump's warnings, Toyota's president said the company
:09:30. > :09:32.has no immediate plans to curb production in Mexico. Toyota has ten
:09:33. > :09:36.manufacturing plants in the US and the company 's US arm says
:09:37. > :09:41.production and employment levels in the US wouldn't decrease because of
:09:42. > :09:45.the new Mexican plant. Lower labour costs and the Nafta free trade area
:09:46. > :09:50.makes it attractive firms to make cars in Mexico to sell in the US. Mr
:09:51. > :09:53.Trump says he will end this practice as it is costing American jobs. Have
:09:54. > :10:00.a great weekend! The markets appear
:10:01. > :10:01.to be risk-on mode. Well, traders suggesting it could be
:10:02. > :10:08.because of the returns on US debt, It could be signs of stability
:10:09. > :10:13.in Europe, or a recovery in oil. Anything that has been battered
:10:14. > :10:20.by higher US rates is coming back. On the markets around the world,
:10:21. > :10:29.is a correction of the "Trump The markets have been trying
:10:30. > :10:33.to fully price in his policies That's what the traders
:10:34. > :10:36.are telling us. Talking of telling us,
:10:37. > :10:39.let's go see what Samira has to tell us about the big biz news
:10:40. > :10:42.on the other side of the pond. Well, if it's the first
:10:43. > :10:44.Friday of a new month then This will be the first unemployment
:10:45. > :10:48.report for the New Year. It will be an opportunity for the US
:10:49. > :10:51.Labor Department to offer insights on trends for the labour market
:10:52. > :10:59.for the entire year of 2016. Now for the month of December,
:11:00. > :11:02.economists are expecting to have added about 178,000 jobs,
:11:03. > :11:04.similar to what we saw The unemployment rate
:11:05. > :11:10.is likely to have increased Also being released
:11:11. > :11:22.Friday is November's It will likely show that the trade
:11:23. > :11:26.deficit narrowed for the month. The results of this report could
:11:27. > :11:29.impact growth estimates for the US Joining us is Richard Dunbar,
:11:30. > :11:44.Investment Director Thank you for coming in. We are
:11:45. > :11:48.going to start off talking about BitCoin, the digital currency that
:11:49. > :11:56.had headlines a couple of months ago. It fell 20% overnight. Explain
:11:57. > :12:04.to us, what is Bitcoin? Digital or crypto currency on the web. Invented
:12:05. > :12:07.by a programmer who we don't know who he or she is. It is
:12:08. > :12:12.peer-to-peer, there is no central bank looking after it for us. Which
:12:13. > :12:16.has made it very popular in an era when central banks seem to be
:12:17. > :12:24.falling over themselves to debase their currencies. So no tangible
:12:25. > :12:29.notes or coins? It's all cyber. All cyber but accepted by 100,000
:12:30. > :12:32.retailers around the world. You can swap it for dollars... You can buy
:12:33. > :12:37.your groceries with it in some places and swap it for other
:12:38. > :12:43.currencies. Wasn't it the best performing currency last year? It's
:12:44. > :12:48.doubled, more than doubled over the past year. It's had some wobbles
:12:49. > :12:55.over its short history since 2008, but fell 20% overnight. What is the
:12:56. > :12:59.appeal of Bitcoin? Appeal is that it's not controlled by central banks
:13:00. > :13:04.or politicians. It competes with traditional currencies and since the
:13:05. > :13:08.financial crisis we had seen central banks and governments falling over
:13:09. > :13:11.themselves to reduce the value of their currencies, boost exports and
:13:12. > :13:14.their economy. Which is great for those economies but if you are
:13:15. > :13:18.selling these currencies and you either don't trust or trust these
:13:19. > :13:23.politicians then maybe something else is better. I suspect, and my
:13:24. > :13:28.traditional training would suggest that a fool and his money are easily
:13:29. > :13:34.parted but it has been a big performer. Do you have any? No.
:13:35. > :13:40.We'll leave it there. Identity then have any real money! -- I don't even
:13:41. > :13:42.have any real money! Coming up - what do
:13:43. > :13:44.economists and weather You're with Business
:13:45. > :13:47.Live from BBC News. Consultants BDO say High Street
:13:48. > :13:49.retail sales last month were down slightly compared
:13:50. > :13:51.to the previous year. That's the fourth year in a row
:13:52. > :13:54.of falling sales and follows a dramatic plunge in sales
:13:55. > :13:56.in December 2015. Our business correspondent
:13:57. > :13:58.Theo Leggett joins us now Theo, what does this say
:13:59. > :14:12.about the health of the High Street? There has been a fall in December
:14:13. > :14:16.sales for the past four years. This year's were only down slightly on
:14:17. > :14:20.last year, but that was after what was really seen as a very bad year
:14:21. > :14:24.last year. There hasn't been much recovery, that can't be a good
:14:25. > :14:28.thing. Another point I took from this report is that the first three
:14:29. > :14:33.weeks in December were pretty awful. The month as a whole retailers was
:14:34. > :14:37.kind of saved by the week before Christmas. Christmas fell on a
:14:38. > :14:40.Sunday so we had Christmas Eve being a Saturday. That really brought
:14:41. > :14:44.people are out shopping. Overall for the month it was a bad period for
:14:45. > :14:48.the high street retailers. If they can't do well in December that
:14:49. > :14:56.doesn't bode well for them going forward, especially as we are
:14:57. > :14:59.expecting inflation to be on the up over the next few months. Internet
:15:00. > :15:03.retailers did rather well. They did, but in general consumers are still
:15:04. > :15:07.spending, right? They're still putting their hand in their pocket?
:15:08. > :15:11.Absolutely, just because they aren't going to the high-street doesn't
:15:12. > :15:16.mean they aren't spending. We saw a 20% increase in online shopping and
:15:17. > :15:20.a 50% increase in the run-up to Christmas. At the moment, consumer
:15:21. > :15:24.sentiment seems to be holding up relatively well. Some areas aren't
:15:25. > :15:28.doing as well as others. Home where, soft furnishings are doing well.
:15:29. > :15:35.Retailers who are in fashion are struggling. We had the results from
:15:36. > :15:38.Next, they aren't alone. Fashion retailers are feeling the pinch.
:15:39. > :15:40.Part of that is because of the weather. It hasn't been cold enough,
:15:41. > :15:51.obviously! You Brits love to blame the weather
:15:52. > :15:55.and everything. What have you got? Do you check your e-mail for work at
:15:56. > :16:07.home? I check it all the time. I don't
:16:08. > :16:09.think of it as a chore. I have FOMO, fear of missing out.
:16:10. > :16:17.Workers in France have been told they don't have to be compelled to
:16:18. > :16:19.check e-mails outside office hours. The French have a 35 hour working
:16:20. > :16:22.week. They have got it right! Know they
:16:23. > :16:25.haven't, look at the economy. Samsung Electronics expects
:16:26. > :16:32.to report a 50% surge in fourth quarter profits,
:16:33. > :16:48.despite the fiasco with its We seem to have a short memory, but
:16:49. > :16:51.it is more their components side that is pushing those profits out.
:16:52. > :16:55.A quick look at how markets are faring.
:16:56. > :17:04.Markets are all in the red. But they have had a cracking time of it.
:17:05. > :17:10.The FTSE 100, only early in the day, but the FTSE 100 has had something
:17:11. > :17:16.like three new record, continuous record highs in succession.
:17:17. > :17:18.You think it is time for a correction?
:17:19. > :17:21.It's only the end of the first week of 2017 and already some of the big
:17:22. > :17:23.themes of the coming year are with us.
:17:24. > :17:25.There's the incoming US president Donald Trump,
:17:26. > :17:28.who yesterday sent a Tweet that caused Toyota shares to plummet.
:17:29. > :17:30.And then there are the ongoing negotiations over Brexit,
:17:31. > :17:32.including the resignation of the UK's ambassador
:17:33. > :17:39.Plus, the Bank of England's Chief Economist has admitted that
:17:40. > :17:41.economists, like weather forecasters, can sometimes
:17:42. > :17:58.When I said the big bloke, I said that with absolute respect!
:17:59. > :18:02.Our Economics Editor Kamal Ahmed is with us.
:18:03. > :18:13.What was Andy Haldane talking about exactly?
:18:14. > :18:24.Is he a mate of yours? No, and neither is Donald Trump, but his
:18:25. > :18:30.policies, have alluded that they could be inflationary? He wants to
:18:31. > :18:36.have this big fiscal stimulus, wants to spend a lot more money rebuilding
:18:37. > :18:42.airports, roads and rebuilding America's infrastructure, which is
:18:43. > :18:45.seen as in pretty poor state. That will have an inflationary pressure
:18:46. > :18:50.as that flows into the American economy. It is fascinating. We have
:18:51. > :18:58.spoken about this on a number of occasions on our analysis of
:18:59. > :19:02.President-elect from. Was he going to be the president like the
:19:03. > :19:08.campaigning Donald Trump? Would he change his tone after he won. Would
:19:09. > :19:12.there be a more conservative President-elect. What we have seen
:19:13. > :19:15.from these tweets and the way he is behaving, how he campaigned and how
:19:16. > :19:23.at the moment he seems to be saying how he will be the president, are
:19:24. > :19:27.pretty similar. He is very aggressive about car companies, for
:19:28. > :19:33.example, that are producing cars in Mexico. Has been critical of Toyota,
:19:34. > :19:40.General Motors. He praised Ford who said they would move production into
:19:41. > :19:45.America from Mexico. In Billy Macri has been pretty front foot on how he
:19:46. > :19:54.campaigned. He can affect things in real-time. People voted, or the
:19:55. > :20:01.election gave us a different type of president and that is what people
:20:02. > :20:04.seemed to want. He's doing that. A notion that the president of the
:20:05. > :20:09.United States tweeting policy in real-time, which as you say, have
:20:10. > :20:15.these huge effects on very large companies' share price has come is a
:20:16. > :20:20.new way of operating. Will it continue after his inauguration on
:20:21. > :20:23.January the 20th? We will see, but at the moment campaigning Donald
:20:24. > :20:31.Trump and President-elect Trump is pretty similar. The chief economist
:20:32. > :20:40.of the banker links -- Bank of England says predicting the future
:20:41. > :20:45.is hard? Yes, Michael Fish said in 1987 he didn't believe a hurricane
:20:46. > :20:48.was on its way, 24 hours before one of the most devastating hurricane to
:20:49. > :20:53.hit the South East and caused millions of devastation. The chief
:20:54. > :20:59.economist of the Bank of England has said, we also sometimes get it
:21:00. > :21:03.wrong! The bank forecast that if there was a vote for Brexit, which
:21:04. > :21:06.there was in the UK, that there would be an immediate negative
:21:07. > :21:10.effect on the UK economy. That hasn't appeared in the short term at
:21:11. > :21:19.least, to have happened. Consumers are still spending strongly. And the
:21:20. > :21:21.Bank of England is saying just like weather forecasters, they have to
:21:22. > :21:28.learn the lesson that that prediction was wrong. Economists,
:21:29. > :21:33.they have to use the data better. They have to be aware that economics
:21:34. > :21:38.is a judgment of human behaviour. And that will be difficult. It is
:21:39. > :21:41.always going to be tricky and imprecise. What they are saying is,
:21:42. > :21:49.we need to be more honest about that. We mentioned about the UK's
:21:50. > :21:55.ambassador to the EU, a resignation and an appointment already. What
:21:56. > :22:00.would that do to Theresa May's negotiating position on Brexit? It
:22:01. > :22:06.is reported now she will make quite a big speech in the next few weeks,
:22:07. > :22:15.laying out Britain's position to an extent, or at least by which Britain
:22:16. > :22:20.will approach the members of the European Union when Britain sparks
:22:21. > :22:24.Article 50, the process to leave the European Union. The British Prime
:22:25. > :22:29.Minister, she feels like she has to take care. If you reveal too much of
:22:30. > :22:32.your hand in a negotiation, you have lost leveraged and power by doing
:22:33. > :22:37.that. She doesn't want to put herself into the position where she
:22:38. > :22:41.has made her position clear and Britain is unclear what the rest of
:22:42. > :22:45.the European nations want. She has to play it carefully and we will not
:22:46. > :22:51.see a huge amount of detail on what Britain actually wants from that
:22:52. > :22:57.Article 50 process. Thank you very much. Have a great weekend.
:22:58. > :23:00.In a moment we'll take a look through the Business Pages but first
:23:01. > :23:03.here's a quick reminder of how to get in touch with us.
:23:04. > :23:08.The business live page is where you stay ahead of the braking business
:23:09. > :23:12.news. We will keep you up-to-date with the latest details with insight
:23:13. > :23:19.and analysis from the BBC's team of editors from around the world. We
:23:20. > :23:26.want to hear from you. Get Involved on the BBC Business Live web page.
:23:27. > :23:31.And on Twitter... You can find us on Facebook. Business Live on TV and
:23:32. > :23:34.online, whenever you need to know. What other business
:23:35. > :23:36.stories has the media been Richard Dunbar, Investment
:23:37. > :23:49.Director at Aberdeen Would you have liked to have gone to
:23:50. > :23:56.a football boarding school? It seems like a good option in China. $8,000
:23:57. > :24:00.a year. Some academic stuff probably, but mostly football. 32
:24:01. > :24:05.football pitches around the schools and it looks like a great way to
:24:06. > :24:18.spend your education. They have so many fields. 48 football pitches.
:24:19. > :24:23.But they will start churning out probably world-class football
:24:24. > :24:27.players? China has decided it wants to win the World Cup, so it has to
:24:28. > :24:34.throw money at the problem, as it has done in other sports. They are
:24:35. > :24:37.probably going to continue to fuel the football cost boom that we have
:24:38. > :24:42.seen in Europe and our players will be attracted to that also. Can I
:24:43. > :24:56.talk about another big business? Do you like sushi? I love sushi. I love
:24:57. > :25:03.Japanese food. Tell us about that photo, how much did he pay for that?
:25:04. > :25:07.That was sold yesterday morning for $600,000. So when you chop that big
:25:08. > :25:12.fish up, it will be expensive for each little bit that goes into
:25:13. > :25:20.sushi. The man who bought it said it was a little bit expensive! He is
:25:21. > :25:25.known as the tuna PR king. I suspect he is putting bat against his
:25:26. > :25:31.marketing budget. My concern is it is always 24 hours old, when does it
:25:32. > :25:37.stop being fresh gesture marked that is your fault for eating the raw
:25:38. > :25:43.stuff. We cook it. Have you returned any Christmas gifts? No, didn't get
:25:44. > :25:49.any. This is the biggest day for returns in the US. All the stuff
:25:50. > :25:57.that arrived after Christmas, you can now return. Richard, have a
:25:58. > :25:59.great weekend. OK, got to go. Have a good weekend, we are getting booted
:26:00. > :26:14.off. Goodbye. Good morning. Rain on the menu over
:26:15. > :26:18.the next 24 hours or so. Further east, it is a different story. Snow
:26:19. > :26:19.more likely to be coming out of the