tv World Business Report BBC News January 6, 2017 5:30am-5:46am GMT
this is bbc world news, the headlines: donald trump has voiced fresh scepticism about allegations that russia interfered in the american presidential election. mr trump's comments on twitter came just hours before us intelligence officials brief him on why they believe moscow ordered hackers to undermine his democratic rival, hillary clinton. two people have been killed and least five wounded by a car bomb in the turkish resort of izmir outside the city's courthouse. two attackers were shot dead by police and a third is said to be on the run. in mexico, a police officer has been killed and more than 600 people have been arrested in violent protests over petrol prices. demonstrators are furious about a 20% increase announced five days ago. prosecutors in the us city of chicago have charged four people with hate crimes over a video live—streamed on facebook, in which a bound and gagged man was assaulted. police believe the victim may have been kidnapped for up to 48 hours before the attack. now for the latest financial news
with aaron and world business report. never mind those exploding phones! samsung's on track for its best profit in years and pledges to put the galaxy note 7 debacle behind it. plus, technology, trade and trump. the boss of sony tells us why goods and information must keep flowing freely. welcome to world business report. i'm aaron heslehurst. also coming up, mr trump locks horns with toyota over plans to build a new car plant in mexico. but first we start with samsung.
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. let's give you the numbers. in the three months to the end of december, samsung is forecasting profits of $7.8 billion. that's up by half on the same period last year, much better than expected and the best quarter since mid—2013. 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 of exploding batteries. hugely embarrassing, and hugely expensive. it has warned the scandal sent more than $5 billion of profit up in smoke.
so why is it doing so well? in a word, components. 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 the past year. 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 not happen again. and very soon we will be sharing the root cause report on the note 7. pelham smithers, managing director 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 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 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 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 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 phones, tvs, gadgets and robots. this week the show‘s organisers have warned that sales of technology will be down again this year. they think political uncertainty might weigh on peoples willingness to spend money. 0ur 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 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 area 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 notjust president elect trump but all world leaders, including obviously the leaders, including obviously the leaders of japan as leaders, including obviously the leaders ofjapan as well, this is a global economy and the free flow of goods, information, is something thatis 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. iam there you go, the big boss of sony. i am plugged there you go, the big boss of sony. iam plugged back 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. no way! 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 business bureau in singapore. it's having quite a big impact on its shares, in the asian trade the nikkei, we saw tiote shares falling 396 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 injust 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 we saw ford's decision to cancel plans fora $1.6 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 on twitter, i'm @bbcaaron. 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, according to new research. the study reveals that over the past year mental health trusts have been suffering from a lack of community services and also support for issues like addiction. michael buchanan has more. 0liver lang helps his father run a small post office in norfolk. in 2014 the 27—year—old was detained under the mental health act. he spent several weeks in a psychiatric unit but even when he was well enough to leave he couldn't. delays in arranging suitable support in the community meant he spent a further two months unnecessarily in hospital. are just dai like i was in danger in there and because a lot happens in hospital and ifelt like if someone attacked me i would have to defend myself but if i did defend myself and hurt someone they would say i was a danger to the public
still and they would keep me locked up still and they would keep me locked upfor still and they would keep me locked up for longer, though i was trying to be whiter than white. the latest figures show 200,000 bed days were lost in the nhs in england as a whole in 2016 due to delayed discharges. for nhs trusts specialising in physical healthcare, that represented a 30% rise from the previous 12 months but for those trusts most closely focused on mental health and learning disabilities, the increase was 56%. the analysis was carried out for this poor macken minister that says the figures show mental health patients are being discriminated against. it means there's a shortage of community psychiatric nurses, a shortage of support services like peacocks facilities and a shortage in social care, which i think has hit people with mental ill—health disproportionately hard. ministers say they're spending £400 million over the next four years to ensure mental health teams can provide more support to people in their homes. michael buchanan, bbc news. coming up at 6am on breakfast,
charlie and louise will have all the day's news, business and sport plus more on the three day strike planned by southern rail drivers. i'm james menendez. the top stories this hour: donald trump has tweeted again that he's sceptical about intelligence warnings on russian cyber attacks just hours before he meets spy chiefs for a briefing. a car bomb in the turkish city of izmir has killed two people. police say they shot dead two militants thought to be behind the attack. a third is still on the run. in mexico, a police officer has been killed and more than 600 people have been arrested in violent protests over petrol prices. demonstrators are furious about a 20% increase announced five days ago. prosecutors in the us city of chicago have charged four people with hate crimes over a video live—streamed on facebook, in which a bound and gagged man was tortured. police believe the victim may have been kidnapped for up to 48 hours before the attack.
we start our news review with the wall streetjournal website. it reports that during a us committee hearing on foreign cyber threats, intelligence chief james clapper described a "multifaceted russian campaign" surrounding last year's american election. president—elect donald trump, who is due to be briefed on the issue, has voiced scepticism about the allegations. the guardian reports the bank of england's chief economist has admitted his profession is in crisis, afterfailing to predict the 2008 financial crash and the impact of brexit.