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tv   World Business Report  BBC News  January 23, 2017 5:30am-5:46am GMT

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this is bbc world news. the headlines: negotiations aimed at ending the conflict in syria are due to get under way in kazakhstan shortly. the talks have the backing of russia, iran and turkey. a special adviser to the gambia's new president, adama barrow, says more than $11 million are missing from the state coffers following the departure of long—time ruler, yahya jammeh. the white house says it's in the early stages of talks to fulfil president trump's controversial pledge to move the us embassy in israel from tel aviv to jerusalem. he spoke to the israeli prime minister on sunday night. france's governing socialist party will choose between benoit hamon and manuel valls as its presidential candidate in april, after they came through the first round of a primary contest yesterday. there'll be a run—off next sunday. the news review is after this. nothing wrong with the phones, it
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was all in the battery — samsung explains the reason why the galaxy note mobile phones caught fire and we re note mobile phones caught fire and were recalled. the uk government to outline the industrial strategy. but with brexit looming large, where will any government money go? welcome to world business report. i'm sally bundock. also in the programme: iphone maker foxconn signals $7 billion investment in the us. details injust a moment. but first. korean electronics giant samsung has released the results of its investigation into its flagship galaxy note 7 smartphones. in october last year the phones were recalled because some had overheated and caught fire. the company today confirmed problems
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with the design saying the manufacturing of batteries was to blame, not the actual phones. the note 7 was supposed to rival apple's iphone 7 but instead, the device caused massive damage to the company's profits, and its brand. last year, over 100 of the phones spontaneously burst into flames. this forced samsung to halt production and recall millions globally months before the all important christmas sales period. the debacle almost entirely wiped out the company's mobile business profit in the third quarter of last year, which is samsung's core business. and this dragged total profits at the company down by 30%, to their lowest level in two years. but it didn't end there. samsung itself predicted another three billion dollars could be wiped off profits over the next two quarters. the total cost of the recall has been estimated at around
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$5.3 billion, but the damage to the company's brand could prove harder to predict. this is how one of the independent external experts that has helped samsung find the cause of the fires summed it up. we need additional analysis to understand the root cause of the damage to the edge or corner of the battery which results in internal issues at that location. in summary design and manufacturing issues with the batteries led to failures of the devices. with me is daniel gleeson, consumer technology analyst at ovum. good morning. good to see you. so that was the big press conference that was the big press conference that happened today. give us more on where they went wrong. while it is good news for samsung that it wasn't their own design that was the
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problem it was a problem on their behalf that they didn't do enough testing of the note 7 and after they caught the problem and switched battery suppliers they asked the new supplier to go too fast too quickly and a whole new set of problems occurred with this new supplier. so there are a lot of lessons to be learned for other manufacturers as well as we try to shrink phones and pressure the batteries about how to design and test those issues. pressure the batteries about how to design and test those issuesm pressure the batteries about how to design and test those issues. it was almost like the race was on to get this phone out there at the same time as the apple iphone 7 and also google launching its phone as well, there is so much competition right 110w there is so much competition right now that perhaps there i was off some of the detail. exactly, and especially the last two or three months of the year are so important for any consumer device sales obviously with black monday in the us leading into christmas and most of the western world leading into the chinese new year at this time of
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year. so, what now, they have set as well today that they are not going to be launching their next news samsung smartphone in february at the big mobile phone conference in spain, which was expected. so, what now? yes, the galaxy sb, which we expected at the end of february we won't see until april, which gives a big window of opportunity for sony, htc, huawei, launching flagship phones in the next month or two to make an impact on the market. for samsung it was them in a difficult position because they are in a non—traditional launch window but i guarantee they will come to the market with the s8 and not only will it be very well—prepared and tested but they will come with millions of marketing to try to overcome the brand damage. how damaging has it been, how put off are we when it comes to buying a samsung, are we keeping samsung for the time being,
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oui’ keeping samsung for the time being, our people staying loyal?” keeping samsung for the time being, our people staying loyal? i think with most controversies with mobile phones, it stuck in people's mind, it was a protracted recalled, that really pushed it into the public consciousness, the butt of late—nightjokes consciousness, the butt of late—night jokes on american consciousness, the butt of late—nightjokes on american tv networks, it was all over social media, soi networks, it was all over social media, so i think because of that it isa media, so i think because of that it is a kind of issue that will stick with consumers for several months and will impact on a lot of decision—making. ultimately i think samsung can recover if they invest heavily enough into their market. and if nothing goes wrong again in future, you would imagine. thank you for your time this morning. and there is much more detail on the story on the website, as with this story on the website, as with this story too, which we will discuss next. foxconn, one apple's biggest suppliers based in taiwan, has confirmed it's considering setting up a display—making plant in the united states. sharanjit leyl is in our asia business hub in singapore. interesting announcement from
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foxconn? indeed it is, and it was from none other than the chief executive terry go, part of taiwan's technology giant foxconn, basically confirming they are to set up a plant in the us, with mr go saying it might exceed $7 billion. it is a major supplier of apple and a likely generate thousands ofjobs for the us, if it does indeed go ahead and the plans come after us president donald trump confirmed his america first agenda which is meant to overturn international trade treaties, which he said during his inaugural speech on friday and during his campaign. since his election he repeatedly threatened high import tariffs in order to try to encourage us as well as foreign
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companies to improve production in the united states and he singled out china as a significant cause of loss of manufacturing jobs in the united states. as we know, foxconn doesn't just manufacture for apple but for other global giants as well. it is formally known as honhai position and has most of its factories in china, where it assembles its iphone. very interesting. thank you. see you soon. the uk prime minister theresa may will today launch the government's vision for an industrial strategy for britain. our industry correspondent john moylan talks us through what the government is likely to announce. how can the government ensure the economy is fit for the future? for the business secretary greg clark places like this are part of the answer, it is a new automotive innovation centre in warwick backed by government industry money and designed to keep carmakers firing on
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all cylinders. one of the things with industrial strategy is to build on the great success and also to help make sure that we drive growth in all parts of the country. the industrial strategy will be committed to driving very hard to spread the opportunities right across the country and to drive not justjobs but across the country and to drive not just jobs but really across the country and to drive not justjobs but really good well—paid jobs in all parts of the country. it is going to be a big part of the strategy. today the strategy will be outlined in a new green paper aimed at kickstarting wide—ranging consultation on the government's new vision, including plans for sector deals where businesses and stakeholders in specific sectors can make the case for government support. that is just one of ten so—called strategic pillars which are all designed to increase productivity and drive growth. in the past, governments used industrial strategies as an excuse to back key firms or industries. it
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didn't always work. as we prepare for the challenges of leaving the eu the big test of this plan will be that it doesn'tjust deliver for successful firms like this but that it reaches out to all parts of the uk to deliver the government's aim ofan uk to deliver the government's aim of an economy that works for everyone. united airlines says in a statement it grounded all domestic flights on sunday due to an "it issue". you might have noticed if you try to fly on sunday. it did not give any more details, and it was not immediately clear how many flights were affected. the chicago—based airline and united express operate more than 11,500 flights a day to 339 airports across five continents. so, let's hope they have fixed that problem. looking at market very quickly and we have a stronger yen, the dollar falling in value, affecting japan, and that is merely because the news out of the new
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president so far hasn't really been about how to boost growth but more political issues and issues that could cause a must as opposed to host growth and help the world's biggest economy, so disappointment for financial markets so far on the trump effect for the global economy — that is down for the dollar and up for the yen, which is not helping exporters in japan. i for the yen, which is not helping exporters injapan. i will see you $0011. food scientists have warned that a compound called acrylamide, formed when starchy food is heated, can cause cancer in animals and that people are also eating too much. the food standards agency says when foods such as biscuits and potatoes are cooked at high temperatures, the sugar and protein combine to form acrylamide. as our health correspondent robert pigott reports, it's challenged the nation to rethink its approach, even to toast. awarding includes some of the most
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popular foods in the awarding includes some of the most popularfoods in the british awarding includes some of the most popular foods in the british diets such as crisps, chips, cakes and biscuits. the longer they are cooked above 120 celsius the more acrylamide they contain. those foods go for eight browning process which many of us like in terms of flavour and taste at it also produces this acrylamide. the sugars in starchy foods such as your breakfast toast combined with the molecules that make up protein to produce acrylamide that can damage the dna in cells. we know that in animal studies is can create cancer and so we are concerned if there is the same mechanism in people that high exposure could increase people's risk. the fsa says people should go for gold aiming for gold and yellow in baking, roasting, frying or toasting rather than something darker. it says eating a balanced diet rich in vegetables will guard against cancer. cancer research uk
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says acrylamide might be harmful to people but insists there are other far bigger proven dangers. being obese, drinking too much and especially smoking. coming up at 6am on breakfast, dan walker and louise minchin will have all the day's news, business and sport. they'll also have more on a police crackdown on motorists who illegally use mobile phones at the wheel. it resulted in nearly 8000 drivers being caught in the space of seven days. that's more than a0 drivers caught every hour. 36 forces took part in the operation in november. the national police chiefs' council has released the figures as a new operation gets under way today. the top stories this hour: negotiations aimed at ending the conflict in syria are due to get underway in kazakhstan shortly. the peace talks have the backing of russia, iran and turkey. a special adviser to the gambia's new president, adama barrow, says more than $11 million are missing from the state coffers, following the departure of long—time ruler yahya jammeh. the white house says it is in the early stages of talks
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to fulfil president trump's controversial pledge to move the us embassy in israel from tel aviv to jerusalem. france's governing socialist party will choose between benoit hamon and manuel valls as its candidate for april's presidential election. they came through the first round of a primary contest on sunday, and will contest a run—off next sunday. now it is time for our news review. we begin with the ft which leads with us president donald trump's new administration, which has stepped up its war with the media, saying it will present "alternative facts" to those reported by the press. the telegraph says uk prime minister theresa may will travel to the us this week to meet with president trump and discuss a uk—us trade deal,
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that will slash tariffs and make it easier for workers to move between both countries. also in the ft, former gambia leader yahya jammeh has left the country and gone into exile in equatorial guinea, 22 years after seizing power in a coup. his departure is seen as a victory for democracy in west africa. the china daily looks at how beijing is teaming up with russia and investing in a huge natural gas project in the resource—rich arctic region. and finally, the guardian financial pages look at claims that the current technological revolution will make manyjobs obsolete in the future.

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