:00:03. > :00:13.air strike. Those are the latest headlines.
:00:13. > :00:15.
:00:15. > :00:23.It is time for World Business Report.
:00:23. > :00:27.Will come. -- welcome to the programme. The headlines: Samsung
:00:27. > :00:30.says its smartphones offline off the shelf but could be rezoned
:00:30. > :00:34.crisis her to the rest of its business?
:00:34. > :00:44.Is US economic recovery stalling? Jobs numbers out I did today are
:00:44. > :00:49.
:00:49. > :00:58.expected to show that firms are not hiring fast enough to boost growth.
:00:58. > :01:04.A surprise rate cut by China also. For a stake, Samsung says it
:01:05. > :01:09.expects its profits to surge. Sales of its smart phones begin to grip -
:01:09. > :01:16.- continued to grow. It is forecast a profit of $6 billion for that
:01:16. > :01:20.period. The feature could look tricky for the electronic giant. It
:01:20. > :01:27.says that Europe's debt crisis is denting demand in its biggest
:01:27. > :01:37.market - television and home appliances. We're drawing from
:01:37. > :01:46.Singapore. Will come. But Dorkbot smartphones First Fleet. -- of
:01:46. > :01:50.First Fleet. What is Samsung doing right in the smartphone business?
:01:50. > :01:55.It is leading the Android charge against Apple by producing devices
:01:55. > :02:04.that are very attractive to consumers and getting the timing
:02:04. > :02:09.right. The latest one was time to between two Apple watchers. There
:02:09. > :02:13.are getting the marketing mix right. They also have a variety of
:02:13. > :02:17.different parts -- price 0.4 more people there but -- devices that
:02:17. > :02:25.offer this operating system. Apple is fixed with a smaller number of
:02:25. > :02:30.devices. The bigger picture is Android verses Apple. But Samsung
:02:30. > :02:37.is leading the charge in this area. They do understand how to make the
:02:37. > :02:47.most of this situation. Samsung also announced contingency plans
:02:47. > :02:50.
:02:50. > :02:57.earlier. They are very worried about the biggest market - Europe.
:02:57. > :03:03.That is an issue for most companies. The economic outlook is not great
:03:03. > :03:08.for many companies that depend on consumer demand. From a smartphone
:03:08. > :03:18.perspective, Samsung is struggling to keep up with the demand. They
:03:18. > :03:24.had issues with getting components. But it has not impacted them in the
:03:24. > :03:28.smartphone market. But some of their other aspects have not been
:03:28. > :03:32.doing too well. Most of the profits have been coming from smartphones
:03:32. > :03:41.but there are clouds on the horizon for other parts of its business.
:03:41. > :03:47.Thank you. China surprised the market
:03:47. > :03:57.yesterday, cutting interest rates for the second time in a month.
:03:57. > :04:04.There are fears that second quarter GDP economic growth will be weaker
:04:04. > :04:10.than expected. We're joined from Beijing. I was on air when that
:04:10. > :04:14.news from Beijing broke. It came as a surprise. Everybody seems to be
:04:14. > :04:23.interpreting Beijing's actions as saying, China is worse than we
:04:23. > :04:27.thought. It is really the second rate cut in the past few weeks.
:04:27. > :04:32.Most people are interpreting that this has something to do with the
:04:32. > :04:38.numbers we will see next week. Firstly, it suggests that the CPI
:04:38. > :04:42.number which will come out on Monday will come out below 3%. Most
:04:42. > :04:47.people will interpret that as good news. It is important to remember
:04:47. > :04:52.that consumer inflation is the tip of the iceberg of inflation in
:04:52. > :05:00.China. Much of the money pumped into the economy has been pouring
:05:00. > :05:04.into investment. Secondly, they took a look at the GDP and other
:05:04. > :05:07.group members due out on Friday and did not like what they saw. There
:05:07. > :05:16.was a lot of hope that the second quarter would be better than the
:05:16. > :05:24.first. It does not look like that will pan out. How worried should we
:05:24. > :05:29.be, no matter where we live? Surely we will all feel the pain of a
:05:29. > :05:34.slowdown in China? It depends on where you sit relative to the
:05:34. > :05:40.Chinese economy. Iraq countries and companies that have been feeding
:05:40. > :05:47.China's investment boom. -- there are countries. If that investment
:05:47. > :05:53.boom comes to an end, they will be hard hit. But if you're looking to
:05:53. > :06:03.sell consumer goods, the adjustment that this represents may be a good
:06:03. > :06:03.
:06:03. > :06:08.thing. Thank you. From manufacturing to consumer
:06:08. > :06:13.spending, economic numbers from the West in recent weeks have been grim.
:06:13. > :06:17.The numbers are out on the jobs market. It is expected to show that
:06:17. > :06:25.US employers have increased their hiring in June, but not by enough
:06:25. > :06:28.to dispel concerns that the American economy is losing steam.
:06:28. > :06:33.Hunting for work as a frustrating business. Many of the unemployed
:06:33. > :06:40.coming to this government backed JobCentre in Manhattan are highly
:06:40. > :06:43.qualified. Rachel has a master's degree and experience. After six
:06:43. > :06:47.fruitless months looking for research work in public health, she
:06:47. > :06:55.is at the end of her tether. What more can I do? I have offered to
:06:55. > :06:59.work for free. Especially in the global market. I have said, I'll go
:06:59. > :07:03.review would be to go and you do not have to pay me. It still comes
:07:03. > :07:07.down to, you don't have the experience. It is a similar story
:07:07. > :07:12.by William Johnson - a qualified librarian. He says he has applied
:07:12. > :07:21.for hundreds of jobs in the two years he has been unemployed.
:07:21. > :07:26.There's no work. I don't know. That is why I'm here today. I would like
:07:26. > :07:30.to be an -- a librarian but at this point I think I will have to do
:07:30. > :07:35.whatever will keep the money coming in. High unemployment has been a
:07:35. > :07:41.drag on the US economy. Some see a bit of light at the end of the
:07:41. > :07:46.tunnel. The unemployment figures have been improving recently. There
:07:46. > :07:51.are some good signs. We have to guess a bit too. We feel a little
:07:51. > :07:55.rosier than we have previously. is likely that the jet -- American
:07:55. > :08:00.economy generated around 90,000 new jobs last month. That is better
:08:00. > :08:05.than the previous couple of months. But still only half the rate of job
:08:05. > :08:15.creation we saw at the start of the year. Hitting America back to work
:08:15. > :08:18.
:08:18. > :08:25.is proving to be a long, hard slog. Let's get more on this. I guess
:08:25. > :08:29.this is the big problem for the US economy. The lack of jobs. It
:08:29. > :08:33.started off great but it has been a downhill run ever since.
:08:33. > :08:39.unemployment rate in the US has been above 8% since February of
:08:39. > :08:43.2009. That might not seem that long but it is the longest stretch since
:08:43. > :08:51.records began in 1948. The Americans are not used to this
:08:51. > :08:55.level of unemployment. Under 10% does not seem that bad but it is
:08:55. > :09:00.the duration -- duration at which it has been at those levels. The
:09:01. > :09:05.government seemed to be running out of ideas. We have heard President
:09:05. > :09:09.Obama announce back-to-work programmes. But whether it is he a
:09:09. > :09:13.Mitt Romney in the chair after November, can they do anything?
:09:13. > :09:17.problem is the difference between short and long-term. The difference
:09:17. > :09:22.between what quality and high quality jobs. The high-quality jobs
:09:22. > :09:31.take a longer time to just state because they require infrastructure
:09:31. > :09:34.and Investments. In the short-term, you end up having to have policy