:00:14. > :00:20.Samsung's on track for its best profit in years and pledges to put
:00:21. > :00:29.The boss of Sony tells us why goods and information must
:00:30. > :00:42.Also coming up, Mr Trump locks horns with Toyota over plans to build
:00:43. > :01:06.In the last few hours South Korean tech giant has said it's on track
:01:07. > :01:10.for the best quarterly profits in more than three years.
:01:11. > :01:16.It's a major boost for the company after the exploding smartphone
:01:17. > :01:19.scandal that put a serious dent in its reputation.
:01:20. > :01:26.In the three months to the end of December, Samsung is forecasting
:01:27. > :01:37.That's up by half on the same period last year, much better than expected
:01:38. > :01:44.That might come as a surprise as we know Samsung was forced
:01:45. > :01:50.to scrap its top of the range phone, the Galaxy Note 7, after a spate
:01:51. > :01:52.Hugely embarrassing, and hugely expensive.
:01:53. > :01:56.It has warned the scandal sent more than $5 billion of profit
:01:57. > :02:11.Samsung makes chips and screens for the whole tech industry.
:02:12. > :02:14.Samsung hasn't revealed the details but it's thought to have been
:02:15. > :02:16.the best quarter ever for its semiconductor division.
:02:17. > :02:21.It makes the complex chips that are more and more in demand
:02:22. > :02:24.as phones get smarter, and the prices of those have jumped.
:02:25. > :02:27.So despite the exploding phone scandal, Samsung's investors have
:02:28. > :02:30.had a pretty good year, shares up by almost 50% over
:02:31. > :02:49.We'll be hearing from an expert on all this in 20 minutes' time.
:02:50. > :02:56.Tim Baxter said at the consumer Electronics expo in Las Vegas said
:02:57. > :02:57.they would find out what happened and put it behind them.
:02:58. > :03:00.As you know, this year was a challenging year for Samsung.
:03:01. > :03:04.Some of you were directly impacted and certainly many saw the media
:03:05. > :03:05.coverage, especially about the Note 7.
:03:06. > :03:08.We continue our intensive efforts, internally and with third party
:03:09. > :03:11.experts to understand what happened and to make sure it does
:03:12. > :03:15.And very soon we will be sharing the root cause report
:03:16. > :03:27.of Pelham Smithers Associates is here.
:03:28. > :03:33.Great to have you here, thanks for coming in at this horrible hour.
:03:34. > :03:37.This is an interesting company, I think of it like Amazon, when we
:03:38. > :03:42.think Amazon most think online retail and when we think of Samsung
:03:43. > :03:48.weakening of phones and TVs but both companies make big chunks of money
:03:49. > :03:52.from other areas. Amazon with cloud computing and these guys make it
:03:53. > :03:56.from chips. Chips, screens, yes, stuff like that. In a good year if
:03:57. > :04:04.everything was perfect they would make most money from phones. That
:04:05. > :04:07.and the semiconductors. Semiconductors is the perfect high
:04:08. > :04:11.pressure, everything is going right, they are getting their processing
:04:12. > :04:17.chips into phones from companies like Apple, they are getting their
:04:18. > :04:31.the UNs into their laptops and their flash memory into handsets -- the
:04:32. > :04:34.UNs. Are the UNs chips... For the flash memory they have not gone down
:04:35. > :04:39.anything like as much as they normally would, some chips you
:04:40. > :04:46.expect to fall 30 or 40% a year because you are making so many more
:04:47. > :04:51.and you are making more... If the prices don't come down and you make
:04:52. > :04:55.40% more from the same wafer as you made before, that is glory days.
:04:56. > :05:01.That adds to the profits. You mentioned Apple, I don't know if
:05:02. > :05:06.many people know but they are just huge competitors and all they do is
:05:07. > :05:09.this but if you open an Apple iPhone, Samsung chips are inside.
:05:10. > :05:15.It's amazing that they have to work together and compete. A new phone
:05:16. > :05:20.for Samsung, a big deal next month? That is what is planned, it is a
:05:21. > :05:24.moving feast right now because there is the world Mobile Congress in
:05:25. > :05:28.Barcelona and normally they make it available for that and that's what
:05:29. > :05:33.they are trying to do this year but because of the adverse publicity of
:05:34. > :05:39.the Samsung Note 7 they have to get this right but fortunately for them
:05:40. > :05:44.this is different from the Note. In the UK you don't see the Note ari
:05:45. > :05:50.much because it is more like a PDA with a pen, it is much more popular
:05:51. > :05:59.in Asia, the Galaxy -esque is much more popular in the UK and Europe.
:06:00. > :06:03.-- Galaxy S. They are hoping the audience for the Galaxy S won't be
:06:04. > :06:07.au fait with what happened in the Note and they will be happy with
:06:08. > :06:12.their previous Galaxy Less, as long as they get the publicity right it
:06:13. > :06:19.should be successful. We will wrap up there -- Galaxy S. Thanks for
:06:20. > :06:21.joining us. We are also at the Consumer
:06:22. > :06:24.Electronics Show in Las Vegas where the world's top technology
:06:25. > :06:27.bosses are showing off the latest This week the show's organisers have
:06:28. > :06:31.warned that sales of technology They think political uncertainty
:06:32. > :06:35.might weigh on peoples willingness Our correspondent Rory Cellan Jones
:06:36. > :06:47.spoke to the boss of Sony, Kazuo Hirai, and asked him
:06:48. > :06:50.how concerned he is, particularly about the policies
:06:51. > :07:03.we may get from a Trump presidency. I think that the best course of
:07:04. > :07:07.action at this point is really to see what presidential elect Trump
:07:08. > :07:12.and what his policies will actually be after he's inaugurated and how
:07:13. > :07:16.that's going to impact things like the TPP for example or the
:07:17. > :07:23.continuation of NAFTA. And we'll have to deal with the policies he
:07:24. > :07:26.comes up with at that point and it's difficult for us to second-guess
:07:27. > :07:30.what he's going to be doing. He's appointed a lot of Hawks when it
:07:31. > :07:35.comes to trade, does that worry you, would it be bad for Sony and the
:07:36. > :07:41.rest of the global economy if things like the TPP and other big trade
:07:42. > :07:45.treaties basically were stalled? We are a global company and we
:07:46. > :07:52.manufacture globally as well. So obviously it's very important that
:07:53. > :07:56.free trade is something that we keep an eye on and also the other
:07:57. > :08:04.important thing for us is really to make sure that currency fluctuations
:08:05. > :08:08.are kept to a minimum so that all the currencies are stable and we are
:08:09. > :08:11.able to plan ahead and make the investments were appropriate. We're
:08:12. > :08:16.about to see a new president, Donald Trump, do you have concerns about
:08:17. > :08:20.what that means for trade in particular? I think it's not just
:08:21. > :08:25.President elect Trump but all world leaders, including obviously the
:08:26. > :08:29.leaders of Japan as well, this is a global economy and the free flow of
:08:30. > :08:34.goods, information, is something that is part of our lives today and
:08:35. > :08:36.to try to overregulate that I think it is not good for business.
:08:37. > :08:41.There you go, the big boss of Sony. I am plugged back in and I can hear
:08:42. > :08:46.the voice of God! Let's stay with President-elect
:08:47. > :08:48.Trump, because he has been whipping up a storm
:08:49. > :08:53.on Twitter once again. I will quote, "Toyota Motor said
:08:54. > :08:59.will build a new plant in Baja, Mexico, to build
:09:00. > :09:03.Corolla cars for US. Build plant in US or
:09:04. > :09:12.pay big border tax." American car companies have faced
:09:13. > :09:15.harsh criticism from Mr Trump for building cars more
:09:16. > :09:17.cheaply outside the US. So how is this latest episode
:09:18. > :09:19.going down in Asia? Sharanjit Leyl is following
:09:20. > :09:27.the story for us in our Asia It's having quite a big impact on
:09:28. > :09:32.its shares, in the Asian trade the Nikkei, we saw Tiote shares falling
:09:33. > :09:39.3% when the market opened this morning but it has since recovered
:09:40. > :09:42.-- Toyota. It shows the influence president Dole might be
:09:43. > :09:48.President-elect has in terms of his tweets and when he first tweeted
:09:49. > :09:53.this in the US, the American depository fell, wiping $1.2 billion
:09:54. > :10:01.in value in just five minutes after he tweeted that. -- it shows the
:10:02. > :10:07.influence the President-elect has. The chief of Toyota said they had no
:10:08. > :10:17.plans to curb manufacturing in Mexico and he said that employment
:10:18. > :10:22.numbers would not decrease, he said Toyota was the smallest importer of
:10:23. > :10:35.vehicles from Mexico to the US in 2016. We know the company has plants
:10:36. > :10:40.in the US and they continue to target US carmakers, his tweets, and
:10:41. > :10:45.we saw Ford's decision to cancel plans for a $1.6 billion plant in
:10:46. > :10:47.Mexico. The first time I have seen you this week, Sharanjit, so happy
:10:48. > :10:48.New Year! Don't forget you can get in touch
:10:49. > :10:57.with me and some of the team I will be back in a few minutes to
:10:58. > :10:59.look at some of the papers from around the world. Bye-bye.
:11:00. > :11:04.Bed blocking in the NHS in England has become significantly worse
:11:05. > :11:07.in mental health trusts than in acute hospitals,