14/10/2016 World Business Report

This is BBC World News, the headlines:

The people of Thailand are mourning the death

of King Bhumibol Adulyadej, after seventy years on the throne.

In the next few hours, his body will be moved to the Temple

of the Emerald Buddha in Bangkok - one of the country's most sacred

Donald Trump has denied fresh accusations by numerous women

that he groped them - as totally false.

Mr Trump told supporters that he is the victim of a vicious

campaign to stop him becoming President.

Now for the latest financial news with World Business Report.

Leaders of the top emerging economies face challenging times

and deep divisions as they gather for a summit in India.

Samsung puts a price on the exploding Galaxy Note 7

Also coming up - another quarter - another scandal on Wall Street.

Wells Fargo casts a shadow ahead of the latest round of bank results.

We start with the world's emerging economic giants -

We are talking about the so called BRICS nations - Brazil, Russia,

Their leaders are gathering in the coastal town of Panaji

in the Indian state of Goa for a summit this weekend.

It's fifteen years since the phrase BRICS was coined.

Since then they have fallen on much harder economic times,

and they have struggled to work together -

not least because of the major rivalry between China and India.

But the BRICS are still a major force in the world -

As of last year - together the five countries were home to over

That's 53% of the world's population.

Their combined economies are worth an annual -

That's just under a quarter, 23%, of world GDP.

India used to be at the miners now is the a star pupil? China and India

has done really well. The Economist to point this term was saying that

he expected that China and India wouldn't do so well. Brazil as well,

you mentioned, the economies have been on a footing. That is what will

be discussed in the summit. The annual summit in Panaji which starts

tomorrow. President Vladimir Putin, they will all arrive tomorrow. Over

the next few days, the leaders will figure out a way, how to increase

and help each other on the economic front despite their political

differences. You mentioned all the figures in the beginning but do you

know how much is the intra- trade between these nations? Only 5% of

what we do with the rest of the world and that is the figure they

want to focus on. How can they do more trade with each other. That

will be on the agenda in the next few days. Great stuff. We will talk

to you soon. Thank you for your number.

We start with Samsung - because the South Korean tech giant

has been counting the cost of the massive recall crisis

surrounding its flagship Galaxy Note 7 phone.

Remember - it recalled the phones after reports

Then the same problems emerged with the replacement phones it

issued - and it finally abandoned the project altogether.

Samsung says its profits will be hit to the tune of about $3 billion over

The total bill? $5.3 billion. Let's go sure eight to Singapore. --

straight. It won't kill Samsung, though, will it? It's not expected

to but of course, it wrecks are a lot of havoc for the company and it

outlook. As you are listing out the losses and numbers, I will tell you

one number that is up, the stocks. The shares are actually up just over

1% today. That is in spite of all that news. As you say, these are

huge blows to the company. The notes seven was really the phone they were

pinning all their hopes on. Phone that was meant to take on the new

Apple iPhone. Of course, they have now scrapped it and that damaging

numbers has been enormous. Essentially what the company is

saying now is they are going to try and focus on some of the other

phones that still continue to do reasonably well. They have said they

want to normalise their mobile business, expand sales of the other

flagship devices such as the Galaxy S seven and edge. Of course we know,

the company recalled about 2.5 million note to seven devices after

exploding batteries. It later said that all the devices were safe and

however, that was discovered that those phones are also catching fire.

Earlier this week, we heard even more bad news, the company saying

permanently it will cease production of the Galaxy Note 7 and urging

owners to turn it. Thanks for the update. Are you I bet your bottom

dollar that will be back to the Samsung phones.

We are also looking at US banking giant Wells Fargo.

It's among the first of the Wall Street banks to report

third quarter results - those are out later today.

And it's likely to provide a very negative start

Last month it agreed to pay $190m to regulators over

revelations its staff opened up to two million fake bank accounts

Yesterday the scandal cost finally cost the CEO his job -

Wells Fargo has already been fined $185 million for creating false

accounts. But the American bank faces more enquiries coming

including a criminal investigation. The appearances before Congress is

not appease critics. OK, so you haven't resigned? You haven't

returned a single nickel of your personal earnings, you haven't fired

a single senior executive, instead, evidently, your definition of

accountable is to push the blame to your local level employees that

don't have the money for a fancy PR firm to defend themselves? It at

less leadership. The new man Tim Sloan much -- must restore Wells

Fargo's image. Michelle McGrade,

Chief Investment Officer, The people watching around the world

they may remember this story. It is astonishing. This bank made up

accounts? They make at accounts. The interesting thing is that there were

over 5000 employees involved in doing this. That is astonishing. Not

only was that 2 million accounts but 5000 plus employees were involved in

the process. How was that not seen? Lets us see. There he is, there is

the CEO. He stood quite Valiant but now I'm not. I read that the CEO is

changing. It smells of it. He must have known about this. Some will say

he may be tainted? He may be tainted but would he have known about it? 2

million accounts. It sounds like a huge number but they were all very

small amounts. So many people involved in covering it up. When you

are running a huge bank like that, you know, it was in the community

division. There is a commercial division as well. It is a huge bank.

Somebody at the top to actually know what is going on down there, it's

probably a bit difficult. But he was chief operating officer and

operations are in charge of the operating side. That's what I'm

saying? That is my point! We will hear from all the big US banks but a

keep reading that the experts following this in the banking

industry keeps saying, you know what? The only good news will be no

bad news. What does that mean? What is interesting in the moment if the

banks, where they are making their money is commercial and industrial

loans. In the first quarter, they were making quite a lot of these

loans and then it suddenly dropped off in the second quarter. Everyone

is looking towards the third quarter and wondering whether the drop-off

was a blip or a trend. That is what everybody is watching today. The

quantity and volume of loans is really important because it is our

low margin gain at the moment with interest so low. -- game. We will

keep across those numbers. Thank you very much for coming in and have a

good weekend. HP Incorporated - the hardware

business of former tech giant Hewlett-Packard, says it expects

to cut about 3000 to 4000 jobs over HP has been hit hard by the decline

in personal computers and printers and the increasing dominance

of mobile devices. It was split up last year

when the corporate IT services Political leaders meeting in Rwanda

are expected to agree a new deal that would phase out some

of the most widely used chemicals Hydrofluorocarbons or HFCs are used

in refrigeration and air conditioning but the coolants

are several thousand times more warming than CO2 -

Experts believe the rapid phase out could save up to a half

a degree of global warming. Consumer goods giant Unilever says

issues surrounding the supply of leading brands including Marmite

to Tesco have now been resolved.