06/01/2017 World Business Report


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Samsung's on track for its best profit in years and pledges to put


The boss of Sony tells us why goods and information must


Also coming up, Mr Trump locks horns with Toyota over plans to build


In the last few hours South Korean tech giant has said it's on track


for the best quarterly profits in more than three years.


It's a major boost for the company after the exploding smartphone


scandal that put a serious dent in its reputation.


In the three months to the end of December, Samsung is forecasting


That's up by half on the same period last year, much better than expected


That might come as a surprise as we know Samsung was forced


to scrap its top of the range phone, the Galaxy Note 7, after a spate


Hugely embarrassing, and hugely expensive.


It has warned the scandal sent more than $5 billion of profit


Samsung makes chips and screens for the whole tech industry.


Samsung hasn't revealed the details but it's thought to have been


the best quarter ever for its semiconductor division.


It makes the complex chips that are more and more in demand


as phones get smarter, and the prices of those have jumped.


So despite the exploding phone scandal, Samsung's investors have


had a pretty good year, shares up by almost 50% over


We'll be hearing from an expert on all this in 20 minutes' time.


Tim Baxter said at the consumer Electronics expo in Las Vegas said


they would find out what happened and put it behind them.


As you know, this year was a challenging year for Samsung.


Some of you were directly impacted and certainly many saw the media


coverage, especially about the Note 7.


We continue our intensive efforts, internally and with third party


experts to understand what happened and to make sure it does


And very soon we will be sharing the root cause report


of Pelham Smithers Associates is here.


Great to have you here, thanks for coming in at this horrible hour.


This is an interesting company, I think of it like Amazon, when we


think Amazon most think online retail and when we think of Samsung


weakening of phones and TVs but both companies make big chunks of money


from other areas. Amazon with cloud computing and these guys make it


from chips. Chips, screens, yes, stuff like that. In a good year if


everything was perfect they would make most money from phones. That


and the semiconductors. Semiconductors is the perfect high


pressure, everything is going right, they are getting their processing


chips into phones from companies like Apple, they are getting their


the UNs into their laptops and their flash memory into handsets -- the


UNs. Are the UNs chips... For the flash memory they have not gone down


anything like as much as they normally would, some chips you


expect to fall 30 or 40% a year because you are making so many more


and you are making more... If the prices don't come down and you make


40% more from the same wafer as you made before, that is glory days.


That adds to the profits. You mentioned Apple, I don't know if


many people know but they are just huge competitors and all they do is


this but if you open an Apple iPhone, Samsung chips are inside.


It's amazing that they have to work together and compete. A new phone


for Samsung, a big deal next month? That is what is planned, it is a


moving feast right now because there is the world Mobile Congress in


Barcelona and normally they make it available for that and that's what


they are trying to do this year but because of the adverse publicity of


the Samsung Note 7 they have to get this right but fortunately for them


this is different from the Note. In the UK you don't see the Note ari


much because it is more like a PDA with a pen, it is much more popular


in Asia, the Galaxy -esque is much more popular in the UK and Europe.


-- Galaxy S. They are hoping the audience for the Galaxy S won't be


au fait with what happened in the Note and they will be happy with


their previous Galaxy Less, as long as they get the publicity right it


should be successful. We will wrap up there -- Galaxy S. Thanks for


joining us. We are also at the Consumer


Electronics Show in Las Vegas where the world's top technology


bosses are showing off the latest This week the show's organisers have


warned that sales of technology They think political uncertainty


might weigh on peoples willingness Our correspondent Rory Cellan Jones


spoke to the boss of Sony, Kazuo Hirai, and asked him


how concerned he is, particularly about the policies


we may get from a Trump presidency. I think that the best course of


action at this point is really to see what presidential elect Trump


and what his policies will actually be after he's inaugurated and how


that's going to impact things like the TPP for example or the


continuation of NAFTA. And we'll have to deal with the policies he


comes up with at that point and it's difficult for us to second-guess


what he's going to be doing. He's appointed a lot of Hawks when it


comes to trade, does that worry you, would it be bad for Sony and the


rest of the global economy if things like the TPP and other big trade


treaties basically were stalled? We are a global company and we


manufacture globally as well. So obviously it's very important that


free trade is something that we keep an eye on and also the other


important thing for us is really to make sure that currency fluctuations


are kept to a minimum so that all the currencies are stable and we are


able to plan ahead and make the investments were appropriate. We're


about to see a new president, Donald Trump, do you have concerns about


what that means for trade in particular? I think it's not just


President elect Trump but all world leaders, including obviously the


leaders of Japan as well, this is a global economy and the free flow of


goods, information, is something that is part of our lives today and


to try to overregulate that I think it is not good for business.


There you go, the big boss of Sony. I am plugged back in and I can hear


the voice of God! Let's stay with President-elect


Trump, because he has been whipping up a storm


on Twitter once again. I will quote, "Toyota Motor said


will build a new plant in Baja, Mexico, to build


Corolla cars for US. Build plant in US or


pay big border tax." American car companies have faced


harsh criticism from Mr Trump for building cars more


cheaply outside the US. So how is this latest episode


going down in Asia? Sharanjit Leyl is following


the story for us in our Asia It's having quite a big impact on


its shares, in the Asian trade the Nikkei, we saw Tiote shares falling


3% when the market opened this morning but it has since recovered


-- Toyota. It shows the influence president Dole might be


President-elect has in terms of his tweets and when he first tweeted


this in the US, the American depository fell, wiping $1.2 billion


in value in just five minutes after he tweeted that. -- it shows the


influence the President-elect has. The chief of Toyota said they had no


plans to curb manufacturing in Mexico and he said that employment


numbers would not decrease, he said Toyota was the smallest importer of


vehicles from Mexico to the US in 2016. We know the company has plants


in the US and they continue to target US carmakers, his tweets, and


we saw Ford's decision to cancel plans for a $1.6 billion plant in


Mexico. The first time I have seen you this week, Sharanjit, so happy


New Year! Don't forget you can get in touch


with me and some of the team I will be back in a few minutes to


look at some of the papers from around the world. Bye-bye.


Bed blocking in the NHS in England has become significantly worse


in mental health trusts than in acute hospitals,