:00:00. > :00:21.yet of finding dark matter. Now for the latest financial news.
:00:22. > :00:27.Challenging times. Samsung forecast another fall in profits as it loses
:00:28. > :00:31.ground to cheaper smartphones. The chief policymakers had to
:00:32. > :00:41.Washington to discuss what to do to boost global growth.
:00:42. > :00:47.Welcome to World Business Report. Let us start with Samsung, because
:00:48. > :00:51.they are the world's biggest maker of televisions and mobile phones. It
:00:52. > :00:56.is forecast to drop in profit for the second quarter in a row stop it
:00:57. > :01:03.expects to take an operating profit of $7.9 billion. That is down from
:01:04. > :01:08.the same period last year. It follows a 6% decline in operating
:01:09. > :01:13.profit in the previous quarter. The company share price is nearly 12%
:01:14. > :01:20.off from its record high. It is weighed down by worries over slowing
:01:21. > :01:33.smartphone growth. We can speak to Lucy Williamson. What is behind the
:01:34. > :01:36.struggling times? A large part of it is competing at the lower end of the
:01:37. > :01:40.market. Chinese companies are growing in clout. We have seen
:01:41. > :01:50.cheaper models come out from Samsung and its rivals. China promote and ``
:01:51. > :01:53.a more affordable version. Saturation at the high end of the
:01:54. > :02:02.market has been happening for some time. It is only going to get worse.
:02:03. > :02:12.Samsung is starting to feel this. How is Samsung responding to this?
:02:13. > :02:17.As I said, it is bringing out cheaper versions of its products,
:02:18. > :02:28.more affordable versions, and scaling up some of the classics.
:02:29. > :02:34.Also focusing on price. Cheaper prices designed to appeal to shift
:02:35. > :02:39.more items and make up for the saturation of fact. Also reports
:02:40. > :02:45.that Samsung is trying to cut back on its marketing. It spent a lot on
:02:46. > :02:53.marketing. That is one area where Samsung feels it can cut back.
:02:54. > :02:57.The world's top financial policymakers will descend on
:02:58. > :03:01.Washington later for the twice yearly meetings of the International
:03:02. > :03:05.Monetary Fund and World Bank. The debate is likely to be on what needs
:03:06. > :03:09.to be done to boost global growth. With the US in recovery, much of the
:03:10. > :03:16.focus is going to be on Europe and China and their ability to foster
:03:17. > :03:20.sustainable growth. Over the next few days, the streets
:03:21. > :03:23.around Washington headquarters of the International Monetary Fund and
:03:24. > :03:29.the World Bank will be full of visitors. The IMF is one of the most
:03:30. > :03:33.powerful players in the world economy. It is expected to tell
:03:34. > :03:39.policymakers to do more to increase growth. The lender of last resort
:03:40. > :03:46.says that five years after the start of the financial crisis and growth
:03:47. > :03:50.remains too weak and too slow. Some of the obstacles to growth include
:03:51. > :03:58.super low inflation, especially in Europe. Geopolitical tensions and
:03:59. > :04:01.communication by central banks. Those inside this building would
:04:02. > :04:06.like to see greater corporation between countries, especially to
:04:07. > :04:14.developing economic policies. The economy may no longer be frozen, but
:04:15. > :04:17.the economic buds are slow to bloom. The American results season is going
:04:18. > :04:27.to kick off. Stock markets are nervous. Two chance of the Internet
:04:28. > :04:37.world, Google and net Flex, were hammered. Yesterday the sell`off
:04:38. > :04:44.continued. All closing down heavily. What is going on? Always
:04:45. > :04:51.got to talk to you. What is going on? There is a sense that valuations
:04:52. > :04:57.in the technology sector were getting too extended. There may be
:04:58. > :05:02.some caution about the US economy. There is a consensus that the US
:05:03. > :05:10.economy is in good shape and the recovery is continuing. The data is
:05:11. > :05:16.not supported that. There's going to be some disappointment in the US
:05:17. > :05:22.economy. Factor that in along with valuations. So it is the fact that
:05:23. > :05:30.technology stocks and investors think that they have been
:05:31. > :05:34.overvalued? Absolutely. There have been extended, not just in the US,
:05:35. > :05:41.but other markets. Some argue that firms in the US, though they are
:05:42. > :05:50.focusing on results, at earnings are not as much. That is the case. It is
:05:51. > :05:58.all about the focus on the bottom line, cost`cutting, reorganisation.
:05:59. > :06:02.There has not been investment to ensure that the economy remains
:06:03. > :06:09.productive. You cannot just keep cutting costs. We are going to see
:06:10. > :06:14.some disappointing results, particularly with the Federal
:06:15. > :06:21.reserve unwinding stimulus. There may not be much to support stocks in
:06:22. > :06:29.the US. It almost seems like a perfect storm. What are we expecting
:06:30. > :06:35.from this stunning season? I think we will be surprised. But it will be
:06:36. > :06:41.on the basis of the bottom line results rather than revenue numbers.
:06:42. > :06:44.They may disappoint, but the bottom line results will look pretty good.
:06:45. > :06:52.That is consistent with what I am saying. Cost`cutting to get the
:06:53. > :06:58.bottomline to satisfy the numbers. But they are not doing anything in
:06:59. > :07:02.terms of sales and investment. What about what is happening in European
:07:03. > :07:09.and Asian markets? The flavour of the US trading day transmits through
:07:10. > :07:17.Asia into Europe. We will have a weaker opening. There are issues
:07:18. > :07:25.peculiar to Europe. Is there are going to be quantitative easing? If
:07:26. > :07:33.they do not, quantitative easing is it prospect for Europe. That could
:07:34. > :07:40.be positive. If markets are kept waiting, that will be a source of
:07:41. > :07:47.disappointment. And emerging markets are still in focus. That is right,
:07:48. > :07:51.they are suffering. A lot of extra cash was leaking into those markets.
:07:52. > :07:56.Those countries with account deficits are really suffering. The
:07:57. > :08:04.US will not be lifting interest rates any time soon. That will have
:08:05. > :08:09.some support. Thank you. Time for a look at some of the
:08:10. > :08:15.day's other business News. Support for the Windows XP operating system
:08:16. > :08:19.and is today. No more official security updates and bug fixes for
:08:20. > :08:23.the system. Some governments have negotiated extended support
:08:24. > :08:28.contracts for the OS in a bid to keep users protected. Anyone else
:08:29. > :08:31.using the software will be at increased risk of infection and
:08:32. > :08:38.compromise. The boss of a private bank has been
:08:39. > :08:43.shot dead in an underground car park in Lichtenstein. Detectives named a
:08:44. > :08:49.former fund manager as a suspect. He may have taken his own life. He
:08:50. > :08:58.calls himself the Robin Hood of Lichtenstein on his website.
:08:59. > :09:04.Japan and Australia have agreed a trade deal which will see it though
:09:05. > :09:08.tariffs on imports of key products. Japan has agreed to lower duties on
:09:09. > :09:19.Australian beef and agreed to raise the duty free College of on cheese.
:09:20. > :09:25.`` quota. Australia will cut tariffs on Japanese electronics, cars and
:09:26. > :09:30.white goods. The deal is agreed after seven years of negotiations.
:09:31. > :09:36.Let us take a look at the markets before I go. Plenty of talk about
:09:37. > :09:39.what the markets are doing. This is what the Asian markets are doing.