Business

Morning business round-up: Samsung set for record profits

  • 5 October 2012
  • From the section Business

What made the business news in Asia and Europe this morning? Here's our daily business round-up:

Samsung Electronics has estimated that it will make record profits in the three months to September, led by strong sales of its Galaxy smartphones.

The South Korean company expects operating profits of 8.1 trillion won ($7.3bn; £4.5bn), nearly double last year's figure.

The latest estimate was higher than analysts' expectations, and sent Samsung shares up 1.5%.

In India, airline Kingfisher made the business headlines after it grounded its fleet for a further week due to a dispute with staff over pay.

Staff at the airline have been protesting against months of unpaid wages.

After the latest talks with workers brown down, Kingfisher said it would be grounding flights until 12 October.

In other Indian business news, the government has approved opening up the country's insurance market to foreign investment.

Overseas companies will now be able to buy a stake of up to 49% in an Indian insurance firm.

India is also opening up its pensions sector to foreign investors.

In Europe, a report said that electric cars might pollute much more than petrol or diesel-powered cars.

The study the Norwegian University of Science and Technology study found greenhouse gas emissions rose dramatically if coal was used to produce the electricity.

Electric car factories also emitted more toxic waste than conventional car factories, their report in the Journal of Industrial Energy said.

In the UK, a survey found that shoppers stocking up on winter clothing helped consumer spending to rise at its fastest rate for more than three years in September.

Visa Europe's UK expenditure index found that sales rose 3% last month, the biggest rise since May 2009.

As well as clothing sales, consumers were spending more in hotels and restaurants, the survey found.

Separate figures from John Lewis showed its department stores enjoyed a strong rise in sales last week.

In another UK report, energy regulator Ofgem said Britain risks running out of energy generating capacity in the winter of 2015-16.

Its study predicted that the amount of spare capacity could fall from 14% now to only 4% in three years.

Ofgem said this would leave Britain relying more on imported gas, which would make price rises more likely.

The government said that its forthcoming Energy Bill would ensure that there was secure supply.

The latest Business Daily podcast from the BBC World Service sees presenter Justin Rowlatt head to Las Vegas to find out how badly the consumption-fuelled economy was hit by the recession, and ask whether Sin City will ever get its shine back.

Around the BBC