26/10/2012

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:00:05. > :00:15.power and corruption. Those are the top stories. Now for the latest

:00:15. > :00:20.

:00:20. > :00:27.What then to the programme. The chance to catch up a wall latest in

:00:27. > :00:34.a world business and money. Headlines: The US growth figures

:00:34. > :00:39.could give their last me a boost to Obama's re-election hopes. A record

:00:39. > :00:44.profit for Samsung thanks to its smote -- smartphone sales. And the

:00:44. > :00:54.best laid plans. One year on from Europe's make-or-break summer. How

:00:54. > :01:02.

:01:02. > :01:06.It's it really is the big question, will President Obama get a last-

:01:06. > :01:10.minute boost in his re-election hopes this Friday? In a few hours'

:01:10. > :01:14.time the US Department of Commerce releases its first estimate of

:01:15. > :01:19.economic growth for a three-month period to a September. It is the

:01:19. > :01:26.last major Reading on the US economy before the election on 6th

:01:26. > :01:32.November. Growth figures for the second quarter were revised down.

:01:32. > :01:36.They started coming in at 1.7% growth. They came down to 1.3%.

:01:36. > :01:43.Will have more analysis on this and a murmured. First we have this

:01:44. > :01:50.report. In this factory in New Jersey there is plenty of activity.

:01:50. > :01:55.We do everything from Cabinet Serie up to more complicated pieces.

:01:55. > :01:58.Everything heres done right here. Engineers make the designs and

:01:58. > :02:03.workers create the finished products. There is a be little

:02:03. > :02:08.sawdust on the floor. Much of the work is done by machines. This is

:02:08. > :02:14.what modern woodworking works like. In America's slow recovery,

:02:14. > :02:17.manufacturers like this have shown surprising strength. The fabric of

:02:17. > :02:22.America was built on quality manufacturing. Over the past few

:02:22. > :02:29.decades we have lost it. Americans realise that the loss is difficult

:02:29. > :02:36.to swallow. Every way cannot make money in a service business. Making

:02:36. > :02:40.these is what generates income for a nation. Making things is what

:02:40. > :02:47.Paul this country out of a recession. Exports are languishing

:02:47. > :02:54.and businesses are pulling back. ahead.

:02:54. > :02:59.ahead. The most likely outcome for the US economy is a continued sub-

:02:59. > :03:06.par growth performance. There are plenty of risks and opportunities

:03:06. > :03:12.on the upside and downside. upside is recent housing numbers.

:03:12. > :03:15.Would be enough to push the US be on a lukewarm recovery? With the

:03:15. > :03:20.jobs report due next week, Americans will pay close attention

:03:20. > :03:26.to the last set of economic data before the presidential elections.

:03:26. > :03:32.Despite the uncertainty ahead, this factory owner remains optimistic.

:03:32. > :03:39.believe manufacturing or have a reverse in America. And optimism

:03:39. > :03:48.President Obama hopes more Americans will share. We were it

:03:48. > :03:54.mourn all this. -- we will get more on this. Let us talk about the US

:03:54. > :04:00.economic recovery. What can we expect today? Is it on track? The

:04:00. > :04:10.last quarter started off at 1.7%. It eventually came down to 1.3%.

:04:10. > :04:11.

:04:11. > :04:15.The absolutely. All the signs are pointing towards a continues effort.

:04:15. > :04:21.It feels relatively slow to where the growth was prior to the crisis.

:04:21. > :04:27.Relative to other countries of the developed world, growth of 1.5% is

:04:27. > :04:32.OK. Absolutely. Many countries in Europe would give their right arm

:04:32. > :04:37.for it growth. Things do not look that great. We just had a raft of

:04:37. > :04:42.US corporate results. Big names with dismal numbers. What was

:04:42. > :04:48.interesting is that the same message was being echoed from the

:04:48. > :04:54.likes of 3 m, FedEx, Amazon, that warning is to batten down the

:04:54. > :05:01.hatches. What has been disappointing in this cycle is

:05:01. > :05:07.where the profits have fallen, companies have not studied to hire.

:05:07. > :05:16.The employment rate has been weak. It reflects a lack of confidence by

:05:16. > :05:20.companies. It reflects an uncertain political situation. To break that

:05:20. > :05:25.down you're talking about company is making profits. You're saying

:05:25. > :05:31.that they have been squealing away the money? They are too nervous to

:05:31. > :05:38.invest in new machinery or people? Cash flow for US companies has been

:05:38. > :05:42.quite strong. Usually at this point aggressively and a startled engage

:05:42. > :05:48.in capital expenditure. That has not happened to the extent we would

:05:48. > :05:52.expect. Briefly, we talk about global connectivity. Looking good

:05:52. > :05:57.China there is a slowdown. Big problems in the reserves. Can you

:05:57. > :06:06.have an economy like the US isolate itself? Caddied bundle along with

:06:06. > :06:14.1% growth? The US economy has a slower external sector than some

:06:14. > :06:20.other economists. It is less impact than smaller economy is. It is

:06:20. > :06:25.certainly not immune. The US exports a lot to Europe and China.

:06:25. > :06:30.Those exports would be impacted. Because US policy has been so

:06:30. > :06:34.stimulative. Rates have been cut aggressively. There has been some

:06:34. > :06:44.fiscal stimulus. That has helped them from suffering worse rates of

:06:44. > :06:47.

:06:47. > :06:51.growth. Thank you. We will move on. South Korean tech

:06:51. > :07:01.giant Samsung has tightened its grip on the global smartphone

:07:01. > :07:04.

:07:04. > :07:14.market. It has posted another set of record profits. What do you say,

:07:14. > :07:14.

:07:14. > :07:21.what is it, 56 million handsets have been sold? For us is right.

:07:21. > :07:26.All of that is not getting boring for Samsung executives. Record

:07:26. > :07:32.profits in the three months to is a term by led by strong sales were

:07:32. > :07:38.taken up in numbers. But profit came in at nearly $6 billion. There

:07:38. > :07:43.is a jump from a year earlier. We saw strong demand for its display

:07:43. > :07:47.panel unit which helped boost earnings. We have increasing

:07:47. > :07:52.competition and legal tussles from Apple. That has raised questions

:07:52. > :07:56.over future performance. The two firms are filed legal cases against

:07:56. > :08:01.it other in more than 10 countries. Each has accused the other of

:08:01. > :08:09.violating patents. Samsung is losing on that front. Earlier we

:08:09. > :08:16.sought a court ruled that Sam's I had violated patents and awarded

:08:16. > :08:23.Apple $1 billion in damages. We have now heard that they had

:08:23. > :08:30.infringed another four. We have a new report saying that in the last

:08:30. > :08:35.quarter or so Samsung has sold 56 million smartphones. That would

:08:35. > :08:38.mean that one in three smartphones sold and the world is a Samsung.

:08:38. > :08:42.Quite staggering. I was only joking when I talked

:08:42. > :08:49.about the boring part. Every quarter it seems to near record

:08:49. > :08:55.proper track record profit. Good on them. Thank you. We will take a

:08:55. > :08:59.quick look at some other business news making headlines. We will talk

:08:59. > :09:07.about Samsung's competitor apple. Profits of just over $8 billion.

:09:07. > :09:11.That is up 24%. It was less than what analysts were heard before.

:09:11. > :09:15.Sales of the current iPad has been hit by a consumers holding out for

:09:15. > :09:23.the new smaller version which Apple launched just this week. Apple

:09:23. > :09:28.shares are down 13% from that record high. Disappointment from

:09:28. > :09:33.Amazon. It lost to I didn't $74 million in the three months to

:09:33. > :09:40.September having made a profit in the previous 18 quarters. Amazon

:09:40. > :09:50.has been hit by a weak economy in Europe. There has also been heavy

:09:50. > :09:50.

:09:50. > :09:53.spending in some of its investments. Its stock dropped 5% in late trade.