11/10/2016

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:00:00. > :00:00.Now for the latest financial news with Sally Bundock

:00:00. > :00:24.Turn it off - that's the warning from Samsung to owners

:00:25. > :00:28.Shares plunge in South Korea after the company orders a worldwide

:00:29. > :00:34.Europe's fastest growing economy presents its budget under the cloud

:00:35. > :00:41.of alleged sweetheart corporate tax deals.

:00:42. > :00:51.Also in the programme, what next for the price

:00:52. > :00:55.We'll have the latest on the rising price of crude oil.

:00:56. > :00:58.It's a disaster for Samsung at a critical time for

:00:59. > :01:04.It has told all users of its flagship Galaxy Note 7

:01:05. > :01:07.smartphone to switch them off while the company investigates new

:01:08. > :01:13.Samsung has also announced it is to stop all sales of the phone

:01:14. > :01:20.The company recalled 2.5 million phones in September

:01:21. > :01:23.after complaints of exploding batteries and later assured

:01:24. > :01:27.customers that all replaced devices were safe.

:01:28. > :01:31.But there are now reports that even those phones that had been replaced

:01:32. > :01:36.Now organisations such as the US Federal Aviation Administration

:01:37. > :01:40.are telling airline passengers with these phones they must be

:01:41. > :01:44.switched off and not stowed in checked in baggage

:01:45. > :01:54.The Galaxy Note 7 was meant to be Samsung's flagship phone,

:01:55. > :01:56.released just weeks after Apple's iPhone 7.

:01:57. > :01:58.It was well received but since the scandal,

:01:59. > :02:00.Samsung shares have taken a major hit.

:02:01. > :02:02.There's also expected to be significant damage to brand

:02:03. > :02:15.The reputational damage is the biggest thing. Samsung have spent

:02:16. > :02:20.billions and billions of pounds over many years marketing and building up

:02:21. > :02:24.a trusted brand and then you get exploding phones. It questions the

:02:25. > :02:26.reliability of all of their projects but especially their mobile phone

:02:27. > :02:27.handsets. Rico Hizon is in our

:02:28. > :02:40.Asia Business Hub in We were talking about this

:02:41. > :02:46.yesterday. They were rumoured problems and now it is a worldwide

:02:47. > :02:51.halt. The crisis deepens for Samsung Electronics. South Korea's largest

:02:52. > :02:55.conglomerate. If you have a look at the stock price right now in South

:02:56. > :03:01.Korea the losses have indeed accelerated in midday trading.

:03:02. > :03:08.Samsung stock price lower plunging now to around 7% after it told shops

:03:09. > :03:13.across the globe to stop selling its new Galaxy Note 7. They have safety

:03:14. > :03:18.regulators saying they found a product defect in the unit and urged

:03:19. > :03:23.consumers to stop using them. Samsung has asked all users to turn

:03:24. > :03:26.their phone off and seek a refund or exchange for a different phone. With

:03:27. > :03:32.these problems mounting, sale, on the note seven there is no pressure

:03:33. > :03:36.on the company to drop the high-end smart phone and some analysts or

:03:37. > :03:40.even saying it is now meaningless to continue producing the Aleksei note

:03:41. > :03:45.seven. The reputational damage is too much. And apart from the recall

:03:46. > :03:50.of 2.5 million units there will also be doubts about whether or not the

:03:51. > :03:54.replacement units are safe to have. The Galaxy Note 7 has gone from

:03:55. > :03:59.praised condonation within weeks as images of charred handsets have

:04:00. > :04:02.spread throughout social and traditional media. Analysts are

:04:03. > :04:04.forecasting that the recall is damaging and could cost Samsung

:04:05. > :04:15.Electronics billions of dollars. Samsung could have more financial

:04:16. > :04:18.problems on the way with the US Supreme Court set to finalize how

:04:19. > :04:21.much it should pay rival Apple In the original court ruling

:04:22. > :04:25.the world's largest smartphone maker was ordered to pay close to $400

:04:26. > :04:28.million in their tit Now Apple is hoping for more

:04:29. > :04:37.and Samsung for less. Do take a look at our website. Our

:04:38. > :04:45.correspondence are all over this story. They are updating the website

:04:46. > :04:50.all the time so take a look. Let's speak about Ireland. It looks like

:04:51. > :04:54.being Europe's fastest-growing economy in the indie 16. The country

:04:55. > :04:57.is about to announce its budget at a time when it is seeking to

:04:58. > :05:03.consolidate its reputation as the comeback kid of the EU. Nearly three

:05:04. > :05:06.years ago Ireland needed an international of over 65 billion

:05:07. > :05:10.euros to combat the impact of a crippling recession. The country is

:05:11. > :05:15.expected to see growth of almost 5% this year. Rather good. Attracting

:05:16. > :05:20.international corporations especially through its tax regime is

:05:21. > :05:25.a key part of its strategy. Last year Ireland saw corporation tax

:05:26. > :05:29.receipts leapt by 50% to 6.9 billion euros but the future of that

:05:30. > :05:34.strategy is coming into question after the EU ordered apple to repay

:05:35. > :05:38.more than 13 billion euros in that taxes after finding the Irish

:05:39. > :05:43.government arranging a sweetheart deal with the tech giant, and

:05:44. > :05:49.allegations that Dublin and Apple have denied. Ireland doesn't want

:05:50. > :05:53.the money. It is appealing against the ruling saying it intends to

:05:54. > :05:59.protect the integrity of its tax system. First of all, the budget.

:06:00. > :06:02.What will be the big announcements, do you think?

:06:03. > :06:09.The emphasis will be on what we call be squeezed middle in Ireland.

:06:10. > :06:13.Universal child-care payments. Everybody will be entitled to them

:06:14. > :06:17.and the poorest families will get more. There are also attempts to

:06:18. > :06:21.reduce the number of universal social charge which came in as a

:06:22. > :06:25.means of trying to alleviate the problems of the budget deficit post

:06:26. > :06:29.the global financial crisis. You think they will tingle with

:06:30. > :06:37.corporation tax? No. Absolutely not. In terms of that holder Bakul no

:06:38. > :06:42.change from Ireland. It is going to the court room. There was an opinion

:06:43. > :06:46.poll yesterday in the Irish Times which suggested a majority of people

:06:47. > :06:50.in Ireland supported the appeal. Again, it is one of those big

:06:51. > :06:54.problems because it is a far wider issue in terms of how do you tax

:06:55. > :07:01.corporate is in a very global mobile world? Again you will need to look

:07:02. > :07:06.at a in the terms of attitudes of corporate is towards paying taxes. A

:07:07. > :07:13.report released last week in the US suggests that 73% of Fortune 500

:07:14. > :07:16.companies have offshore sun city areas and tax havens and that is

:07:17. > :07:25.probably an illustration of the problem. The last Irish budget now

:07:26. > :07:30.faces Brexit. It has implications for Ireland. Is there anything to do

:07:31. > :07:36.with that in the budget at all? Despite the good growth rate

:07:37. > :07:39.predicted for 2016 they were revised downward. One of the most immediate

:07:40. > :07:43.effects are certainly in the run-up to Christmas will be cross-border

:07:44. > :07:47.shopping. Because of the devaluation of the UK pound. I think the other

:07:48. > :07:51.issues that will be tourism because the UK sent a lot of tourists every

:07:52. > :07:55.year to Ireland and I think there will be fewer of those. Again, I

:07:56. > :07:59.think the food and agribusiness sector is the ones that will be most

:08:00. > :08:04.immediately affected because 41% of exports go to the UK. There are

:08:05. > :08:09.positives, however. Positives in the terms of the ability we can pick up

:08:10. > :08:12.some more mobile investment, particularly in areas where Ireland

:08:13. > :08:18.is strong such as data, pharmaceuticals, parts of the

:08:19. > :08:22.financial sector. I was hearing after the referendum, people I speak

:08:23. > :08:26.to an finance saying that many people are now looking towards

:08:27. > :08:32.Ireland. I think we are seeing that. One of the interesting areas is

:08:33. > :08:38.legal services in terms of UK legal practices be registering in Ireland

:08:39. > :08:42.-- reregistering in Ireland to avail themselves of the ability to trade

:08:43. > :08:46.with the European Union. The other interesting area is the Irish

:08:47. > :08:49.government last week announced 2 billion euros to attract overseas

:08:50. > :08:55.students. There may be positives there as well. Thank you very much

:08:56. > :08:58.for coming in. It is going to be very, very interesting and we need

:08:59. > :09:02.to announce their budget we will keep you up to date. Also in

:09:03. > :09:08.business news the monetary authority of Singapore announced it is closing

:09:09. > :09:12.down a merchant bank and finding it to others for anti- money-laundering

:09:13. > :09:17.controls. The action follows an investigation into the Malaysians

:09:18. > :09:23.state investment fund. One bank will lose its merchant bank status and

:09:24. > :09:32.the branch manager was arrested last week. The biggest bank has been

:09:33. > :09:36.fined 1 million Singaporean dollars. The price of Brent crude has surged

:09:37. > :09:43.to its highest after the Russians said they will support proposals to

:09:44. > :09:46.freeze oil production. The group are gathered in Istanbul on the

:09:47. > :09:50.sidelines of the world energy Congress. But look at the markets

:09:51. > :09:54.right now so you can be right across the price of oil. We have not got it

:09:55. > :09:59.there, actually, for some reason. Brent crude was down slightly today

:10:00. > :10:03.from that high point that it hit yesterday off the back of the News

:10:04. > :10:08.of Russia's support. I will be back shortly to look at the papers. Jonas

:10:09. > :10:21.for that. In the meantime, I will hedge about. -- join us for that. In

:10:22. > :10:23.the meantime I will hand you back. A newsreader Wauchope has begun on

:10:24. > :10:27.Southern Railway with dispute over the role of conductors on trains

:10:28. > :10:31.after months of destruction