05/07/2013

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:00:03. > :00:13.in their original graves. Those are the latest headlines from BBC World

:00:13. > :00:20.

:00:20. > :00:29.News. Now for the latest financial news with World Business report.

:00:29. > :00:34.Good news on the economy may mean bad news for the global markets. We

:00:34. > :00:37.brace for the latest jobs in the US. Living on borrowed time again -

:00:37. > :00:45.Greece tries to convince EU and IMF inspectors it deserves more money -

:00:45. > :00:55.amid concerns its reform programme is slipping. Welcome to World

:00:55. > :00:56.

:00:56. > :01:02.Business report. It's a mix lighting snapshot of the world of business.

:01:02. > :01:05.We will talk about Greece and also Samsun with them doing it again but

:01:05. > :01:08.the investors are not happy. We start in the United States where

:01:08. > :01:14.most people were enjoying the 4th of July holiday on Thursday. Markets

:01:14. > :01:17.have been closed as many will be making a long week-end of it. But

:01:17. > :01:19.for Wall Street it's back to action stations this morning. In a few

:01:19. > :01:29.hours time we get official employment figures- the Non-farm

:01:29. > :01:31.

:01:31. > :01:34.Payrolls for June. The figures could not be more important for global

:01:35. > :01:37.markets. They have been on a rollercoaster ride since Federal

:01:37. > :01:46.Reserve chief Ben Bernanke talked last month about winding down his

:01:47. > :01:53.massive stimulus programme as the economy improves. It's 85 billion

:01:53. > :01:57.dollars each month pumping into the economy. So here's the paradox the

:01:57. > :02:02.Fed has to deal with that good news on the economy is seen as bad news

:02:02. > :02:05.by investors. What are we expecting today? Economists think US employers

:02:05. > :02:15.created 165,000 jobs in June, well below the average for the past six

:02:15. > :02:16.

:02:16. > :02:22.months. That may have made a tiny dent in the unemployment rate -

:02:22. > :02:24.which is expected to have crept down to 7.5% from 7.6% in May. Any

:02:24. > :02:34.stronger figures than that and markets could be in for another

:02:34. > :02:37.

:02:37. > :02:43.bumpy ride. Our report from Coney Island, New York. In the United

:02:43. > :02:52.States it is a national holiday and Americans are in good spirits and in

:02:52. > :02:57.New York, they looked relaxed but is popular spot is Coney Island. The

:02:57. > :03:01.recent wild ride on the stock market has not been quite as much fun.

:03:01. > :03:06.Stocks headed downhill after the Federal reserve chairman Ben Bonetti

:03:06. > :03:13.says the Central Bank may stop withdrawing the stimulus support as

:03:13. > :03:20.the economy improves. One week later the stop the stocks shot up and the

:03:20. > :03:27.recovery was weaker than first thought but what is going on?

:03:27. > :03:30.up and down and spinning around. This trader says the end of the

:03:30. > :03:35.cheap money sending financial markets into a tailspin. We have got

:03:35. > :03:40.back on our feet and it's solid underneath but moving forward

:03:40. > :03:45.without government help many people are apprehensive. Cheap money

:03:45. > :03:52.printed by the simple bank has helped the recovery and also made

:03:52. > :03:57.government bonds less profitable pushing capital into risky asset.

:03:57. > :04:03.Getting X at right is important not just for the economy but all

:04:03. > :04:10.avoiding a financial shock and communication is crucial. Not only

:04:11. > :04:15.is the Federal reserve using new policy tools but they are choosing

:04:15. > :04:23.communication as the tool to manage the expect patient. When you try to

:04:23. > :04:26.manage that you can get it wrong. Americans tried to escape the stress

:04:26. > :04:30.but not everyone will get a break and one of the conditions the

:04:30. > :04:36.Federal reserve will set by slowing the stimulus is the employment

:04:36. > :04:41.picture needs to improve and while Americans relax this weekend, the

:04:41. > :04:51.investors and the central bankers will be monitoring the jobs figures

:04:51. > :04:51.

:04:51. > :04:55.on Friday very closely. I love Coney Island. We will keep a look on those

:04:55. > :05:00.numbers. When are record profits simply not good enough? That seems

:05:00. > :05:03.to be the problem for South Korean electronics giant Samsung. In the

:05:03. > :05:10.last few hours it has released estimated earnings for the April to

:05:10. > :05:13.June period ahead of full quarterly earnings in a couple of weeks. It

:05:13. > :05:18.said it made an operating profit of $8.3 billion in the last three

:05:19. > :05:28.months. That was up 47% on the same period last year and a record figure

:05:29. > :05:29.

:05:29. > :05:32.for the company. This is the thing! It's been boosted by sales of its

:05:32. > :05:35.new Galaxy S4 smartphone - and they are expected to keep rising over the

:05:35. > :05:45.next few months. But investors are not happy. Today's numbers were

:05:45. > :05:51.

:05:51. > :05:54.below market expectations. Let's get the latest from Sharanjit Leyl who

:05:54. > :06:00.has been following this story from our Singapore office. There's more

:06:00. > :06:06.pressure on Samsung shares then? They are bit of their own success?

:06:06. > :06:11.You hit the nail on the head. The share price has dipped today down 3%

:06:11. > :06:18.after that profit and the shares dropped 15% since July futures

:06:18. > :06:22.certain brokerages down grading the brokerage figures. The biggest TV

:06:22. > :06:28.maker and mobile phone maker eggs they will be slowing down despite

:06:28. > :06:33.the new models and this slowdown appears to be worse than expect and

:06:33. > :06:40.Robert guidance reinforces that with Samsun smart phone growth beginning

:06:40. > :06:46.to slow down. It has enjoyed tremendous success recently. The

:06:46. > :06:53.popularity of the galaxy range saw it overtake the other phone makers

:06:53. > :06:58.but according to research firm 's Samsun accounts for about 95% of the

:06:58. > :07:05.Android profits and that comes to a downside because they have grown so

:07:05. > :07:10.fast or growth slowing and that trend may hurt their profits. We saw

:07:10. > :07:14.earlier the south Korean investment has cut forecasts for that

:07:14. > :07:19.technology giant and there's been similar moves from other companies

:07:19. > :07:27.as well with concerns triggered by the launch of new products from

:07:27. > :07:30.rivals in China and elsewhere. Chinese products are giving a lot of

:07:30. > :07:34.the big companies a run for their money and we will talk to you again

:07:34. > :07:37.soon. Now to Greece, where austerity policies are certainly very painful

:07:37. > :07:39.and deeply unpopular, but are they going far enough? That's a question

:07:39. > :07:44.officials from the EU, European Central Bank and International

:07:44. > :07:46.Monetary Fund - the Troika - are asking today. They are in Athens to

:07:46. > :07:50.decide whether Greece has done enough to qualify for the next

:07:50. > :08:00.tranche of money - eight billion euros - ahead of a decision by

:08:00. > :08:06.

:08:06. > :08:09.eurozone finance ministers on Monday. They are concerned about the

:08:09. > :08:15.slow pace of reforms to the public sector - including cutting some

:08:15. > :08:21.15,000 jobs. Greece warns it won't meet targets by a deadline set for

:08:21. > :08:25.today. Plans to sell off state assets to raise cash, including the

:08:25. > :08:33.national lottery, have also been going very slowly. This report from

:08:33. > :08:40.Athens. The State lottery is not taking bets on whether they will get

:08:40. > :08:43.the reassurances they seek keep their bail-out cash flowing. It's

:08:43. > :08:49.not just setbacks for privatisations such as this lottery but the

:08:49. > :08:52.Government has a few hours to deliver its promise to get rid of

:08:52. > :08:57.thousands of civil servants. International lenders and desperate

:08:57. > :09:04.to see savings taking off. You'd be hard pressed to find anywhere to

:09:04. > :09:09.better illustrate the inability to move on and to reinvigorate and to

:09:09. > :09:14.try to make some of its assets. This airport was abandoned at a time of

:09:14. > :09:19.the Olympic Games ten years ago when the airport moved out of town and

:09:19. > :09:24.the site has been left which is three times the size of Monte Carlo

:09:24. > :09:28.and it is up for sale and the hope is to bring in billions of dollars

:09:28. > :09:35.from one of the latest privatisation and this project has hit major

:09:35. > :09:41.delays. There can only be positive thing. The new chief leading the

:09:41. > :09:46.seller insist the lottery is a change and that Greeks will come to

:09:46. > :09:50.understand that job losses now are for the best. I think finally we

:09:50. > :09:56.will have a happy and but unfortunately in Greece sometimes it

:09:56. > :10:02.takes longer and needs a bit more effort to put things and track and

:10:02. > :10:09.to see a result. The has shrunk dramatically over four years and in

:10:09. > :10:14.addition the income from the people, nobody 's dream is trying to

:10:14. > :10:19.be employed in but that been a dream for over 40 years but it might they

:10:19. > :10:24.are today. For many, this is the latest in a long line of weary

:10:24. > :10:30.manoeuvres to keep the country afloat and in Greece personal

:10:30. > :10:40.economic survival which is now paramount. We will keep close to

:10:40. > :10:41.

:10:41. > :10:44.that. A quick look at the markets. There's been a rally in Europe.

:10:44. > :10:46.Asian markets followed the rally on European markets after yesterday.

:10:46. > :10:48.The eurozone and British central banks signalled that easy-money