25/02/2014 World Business Report

sites. Those are the latest headlines from BBC World News. Now

for the latest financial news, and World Business Report. The race to

prevent a financial collapse: the EU, IMF and US discuss the options

for Ukraine, as Russia suspends its financial bailout. It can take your

pulse and recognise your finger, but how does it stack up against the

competition? We check out Samsung's latest offering, the Galaxy S5.

Welcome to World Business Report. I'm Sally Bundock. Also in the

programme, we'll have the details on the next step in the

multibillion-dollar Trans-Pacific Partnership. With the world's focus

on Ukraine, and how to rebuild a broken country, what of its economy?

Russia's suspended the second instalment of its financial

assistance for Ukraine. It doesn't want to risk their money being

managed by the opposition. We're not just talking about a financial

arrangement either, but serious tension, and concern between Russia

and the Western world. It's a complicated mess, nearing

bankruptcy, Ukraine has $88 billion dollars in long-term foreign debt.

But it is estimated the government, the national bank, and state-owned

gas company together need to pay $13 billion this year just to service

that debt. And the country's reserves are now down to less than

$18 billion. So the question is, how will Ukraine overcome its financial

crisis without these funds? Well Baroness Ashton, the EUs foreign

policy chief, is trying to co-ordinate a short-term package of

financial assistance, with donors from the EU and US and the

International Monetary Fund discussing a loan programme to

prevent the Ukraine economy from heading into abyss. Here to help us

unpack this detail is Lilit Gevorygan, Russia analyst with IHS

Global Insight. You. To take on the various options on the table

regarding Ukraine economy. And where the help will come from in the near

future? Toner I don't think Ukraine has many choices. The Russian credit

line that was offered in mid-December 2013, the gas price

discount, are pretty much off table. Ukraine has two seek external

financing from IMF to meet its immediate external obligations. I

believe that the economy is not in the shape to get along without the

external help. Hence, Ukraine has to pursue external financing from IMF

and EU. That is likely to happen, isn't it? Ukraine is in such a

critically important place, it is in anyone's interest that it doesn't

collapse. Think so. Despite some speculation or perception that

Russia is not really interested in a stable Ukraine, it is. For example.

Almost 70% of Russia's EU bound gas exports go via Ukraine. Obviously

stability and economic stability is quite important. Russia is a major

investor in the country. So is EU. So European businesses, Russian

businesses, are very interested in stability of this country. And it

economic stability. Why is it in such a mess? It has been in

turmoil, political turmoil, for a long time. It has been ten years

now, and two revolutions within ten years is quite a serious blow to any

country's economy. Successive governments have mismanaged the

economy because they have been spending more, the country's

industry wasn't expanding, and business environment was poor, and

the expected windfall never really came to the Ukraine in large sums.

It was a combination of elements that led to this dire state. Also,

for a long time, IMF have been calling for cutting the domestic gas

subsidy. Letting the local currency float. All of these have been

delayed because they were popular with the electorate. Now is the time

for the Ukraine politicians to tackle these issues. Thank you very

much for your time. We will talk some more about that when we discuss

today's newspapers in about five minutes. Let's talk about Samsung.

Samsung have announced their new flagship smartphone. The Galaxy S5

will be launched in April this year globally, except for Japan. At a

press event in Barcelona, Samsung's Stephen Taylor showed the BBC's Mark

Gregory some of its new and improved features. The hype is over, the

launch has happened. The Galaxy S5 is here. With me is Steven Taylor of

Samsung. How did the launch go? You are in your selves. There was

genuine excitement. There is always a lot of anticipation around

launches. We were getting spontaneous applause for a lot of

the features. For us it was a really good success. We were very pleased

with it. Let's look at the phone. Yes, lets. The first thing is the

simplicity of the screen. We have cleaned up the user interface.

Consumers are keen on that. A lot of the features we have enhanced the

ones that are super important. The key thing is the camera. The camera

has been improved on a number of levels. For one, it has a sharp

autofocus and is .3 of a second. You can take a quick shot. The other

thing you have in their is this rich depth feature with HDR. By switching

on that feature, you have real colours. Could make the colour that

writer and prettier. Stands out. And in real low light or brightness it

will adjust. You can see photograph in the best quality. What else does

it have? It's the first smartphone to have a heart rate monitor

integrated into the back of it. It can monitor your heart rate all the

time. A new family of devices. I hope you enjoy it. That is the

latest from the mobile phone conference in Barcelona. Take a look

at the scene behind me. You concede many smiley faces, smiling up for

the cameras. Global trade ministers are holding their final round of

talks today for an ambitious new free trade zone called the

Trans-Pacific Partnership. The proposed deal will link 12

countries, ranging from Australia to Peru, by allowing greater market

access, and lower taxes. But China is excluded. It's a key part of

America's so-called pivot to Asia, given the region's rising economic

importance. For more, let's go live to Rico Hizon, who has been

following the meeting in Singapore. What is the latest? In about an hour

's time, we will have a clearer picture. They may be smiling, but

they may not be smiling at the end of the meeting. Because according to

many trade analyst they are not very hopeful that the deal was forged.

Japan's economic minister said that differences remain between them. And

the United States. There are still basically tensions over agricultural

tariffs. That is one of the key hurdles facing this transpacific

partnership. Japan has tried to protect its rice, beef, dairy and

sugar. That is in particular the focus. Farmers in the big exporting

countries push for the elimination of all tariffs. It seems like they

are not willing to budge. The United States is also not showing any

willingness to make concessions on its demands. Negotiators are hoping

that a draft deal will be ready by the time Obama visits the region in

April. Some analysts are sceptical, saying a deal is only likely to

materialise by year 's end. And give remote indeed. Let's squeeze in some

other stories. Sales of Cuba's famous cigars jumped 8% in 2013,

helped by strong demand from the island's smokers, and China. Total

sales reached $447 million, up from $416 million in 2012, according to

Habanos SA, which is co-owned by Cubatabaco and British firm Altadis.

Europe remains the biggest market, but demand from China and the Middle

East has helped boost sales. Cuban cigars are still banned from the US

market. The markets were seeing a much stronger session today than we

saw yesterday. The main market up almost 1.5%. They have 20 minutes to

go. I will see you soon.