Samsung to Post Second Straight Decline in Quarterly Profit on Lower Smartphone Margins

Samsung Galaxy S5Samsung

Electronics giant Samsung has estimated a year-on-year decline in its first-quarter profit due to a slowdown in the smartphone market.

The company estimated a 4.3% decline in operating profit for the quarter ending in March to 8.4tn won ($7.9bn, £4.8bn, €5.8bn). Analysts polled by Thomson Reuters expect an operating profit of 8.5tn won for the quarter.

That would be the South Korean company's second consecutive quarter of profit decline, after reporting a 6% decline in operating profit in the previous quarter.

Samsung expects first-quarter sales at 53tn won, compared with a market forecast of 54.58tn won. It is expected to announce full quarterly results by 25 April.

The decline comes amid a slowdown in the smartphone market along with falling prices of smartphones, hurting the company's profit margins.

Samsung has largely depended on its mobile phone business to achieve bulk of its profit. It is presently the market leader in the smartphone market.

The company has been forced to cut prices because of the emergence of low-cost Chinese rivals such as Lenovo, ZTE and Huawei in the smartphone market and the continued stiff competition from Apple and HTC.

While the move boosted the company's sales in terms of numbers, its profit margin came under pressure.

Samsung had earlier warned that the competition in the sector would intensify further, as more and more global companies are entering the market.

Analysts pointed out that the company would have to cut costs in order sustain its profit growth, given the decline in margins.

"What Samsung needs to do this year for additional growth are things like cost reduction and reducing marketing costs," said, Greg Roh, analyst at HMC Investment and Securities.

"In some sense, Samsung has no way to prevent a decline in its earnings without improving internal efficiencies."

Given the adverse conditions, Samsung has priced its latest Galaxy S5 model about 10% cheaper than the S4. The S5 has earlier witnessed weak sales in the home country.

Renewable Energy Up Despite Dwindling Investments

The amount of renewable energy has risen worldwide despite a drop in investments

The percentage of renewable energy that was generated in 2013 was up on the previous year, despite a drop in global investment, says a report from Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance.

The report states that renewable energy was responsible for 8.5% of the world's electricity generation, up 7.8% in 2012, despite global investment being down.

The amount of money invested worldwide was $214bn (£129, €156) in 2013, down by 14% - a total of $35bn.

The analysis puts the decline in investment partly down to the reduced cost of technology in the renewable energy sector – particularly in photovoltaic systems.

Another factor behind the decline in investment is also a result of uncertainty around energy policy. UN Energy expert and one of the report's lead editors, Eric Usher, told BBC News that the drop in price had "left some governments thinking that they had been paying too much and reviewed their subsidies".

The report also shows that China invested more in renewable energy than the whole of Europe combined.

China spent $56bn on renewable energy, and despite the fact that it was down by 6% on the previous year, it was still well ahead of Europe which invested $48bn – down 44%.

Usher added: "For the first time in 2013, China installed more new generation capacity using renewables than fossil fuels. So it is a good sign for the sector that the world's largest emerging economy is taking the sector very seriously indeed."

Oscar Pistorius Trial: Bladerunner 'Pointed Gun at Attackers During Street Fight' in Pretoria

Oscar Pistorius recalled pulling a gun on three attackers during a street fightReuters

Oscar Pistorius has revealed he pulled out a gun on three men during a fight in the street at his murder trial.

The Olympics and Paralympics athlete recalled the incident which happened in Pretoria only weeks before he shot dead girlfriend Reeva Steenkamp, on Valentine's Day last year.

Pistorius told North Gauteng High Court he was driving home after training when violence erupted at a set of traffic lights.

He said: "A taxi skipped the robots [traffic lights] and pushed a Corrolla onto the pavement and they started chucking bricks at each other.

"I was shocked and didn't know what to do. They smashed the window and started beating the guy with rocks in his head.

"I hooted the horn and pulled up and pointed my firearm at the three people. These people jumped in the taxi and sped off.

"This guy was covered in blood. He was trying to stand up and every time he fell over he was hitting his head. I picked him and dragged him and forced him to sit down. I got a training towel and gave it to the gentleman.

"About 30 people had come up and were helping him," said Pistorius. He added he drove away from the scene when he thought it had been "contained".

Pistorius was speaking at his trial for the first time during questioning by defence lawyer Barry Roux. He was not shown on video cameras inside the court room and only his voice was broadcasted.

The 27-year-old has been depicted as a gun enthusiast during his trial for killing Steenkamp. But he said since the incident his interest in firearms had vanished.

Pistorius recounted the road rage incident during his first day of giving evidence and looked and sounded "exhausted," according to judge Thokozile Masipa.

The athlete said he had not slept at all the night before and also revealed he had been on a cocktail of drugs for depression and sleep deprivation since Steenkamp died.

The runner denies murder and claims he mistook Steenkamp for an intruder inside his luxury home on the outskirts of Pretoria. The prosecution alleges he killed her following an argument between the couple.

The trial continues.

Mark Mobius Twists on Tencent after Technology Rout

A file photograph of Mark Mobius, chairman of Templeton Emerging Markets Group.Reuters

Templeton Emerging Markets Group boss Mark Mobius is investing in technology stocks in the wake of a global retreat that has left companies like Asia's largest Internet firm Tencent Holdings trading at "reasonable" valuations.

Mobius, who manages about $50bn (£30bn, €36bn), is increasing holdings amid a rout that wiped out this year's gains in the Bloomberg Asia Pacific Internet Index and pulled down the Chinese social media giant's stock to a two-month low.

The Bloomberg Asia Internet measure shed 3.8% on 7 April; Tencent fell 4.5% at 13:40 hrs in Hong Kong.

In Japan, telecoms major SoftBank, which holds a stake in Chinese e-commerce giant Alibaba Group, fell 4.5%. In South Korea, the nation's leading search portal Naver lost 6.7%.

Tencent traded 23% below the average 12-month price target of 32 analysts tracked by Bloomberg. The business has lost some $32bn of market value since 6 March. SoftBank and Naver stocks were 24% and 20% below analysts' average price forecast respectively.

Investor concern that a flood of stock market flotations in the technology industry would pull down existing equity prices has eased, Mobius told Bloomberg.

Mobius also said he was not interested in Alibaba's planned New York flotation owing to concerns about the firm's corporate governance.

"If you look at Tencent for example, it's come down about 20% and that's a pretty good correction," Mobius told Bloomberg. He refused to name the stocks he was buying.

"A lot of people were concerned because of the number of new issues coming in the US market," Mobius said. "I think that's probably coming to an end now."

Technology IPOs

Sina Weibo, China's Twitter-like micro-blogging service, has filed for an initial public offering in the US, in a bid to cash in on the high valuation of internet firms in the country.

Weibo plans to raise $500m through the sale of American depository shares.

Meanwhile, a US initial public offering (IPO) is expected to value Alibaba at as much as $120bn.

India Elections: BJP Vows to Resurrect Ram Temple and Economy

Narendra Modi (4th R), the prime ministerial candidate for Bharatiya Janata Party (BJP), along with other party leaders hold copies of election manifesto in New DelhiReuters

India's main opposition Bhartiya Janata Party (BJP) has released its much-awaited election manifesto promising to resurrect the controversial Ram temple in the north Indian city of Ayodhya and vowed to revive the limping economy.

The party has also pledged to bar Foreign Direct Investment in the multi-brand retail sector but backed FDI in other areas in order to boost employment.

The 52-page document, which has been delayed for nearly two weeks, also promises to do away with Article 370 of the constitution which bestows special autonomous status on Jammu and Kashmir region.

The roadmap given by the party, which is widely expected to win the elections, says: "BJP reiterates its stand to explore all possibilities within the framework of the Constitution to facilitate the construction of the Ram temple in Ayodhya."

"The country has been dragged through 10 years of jobless growth by the Congress—led UPA Government. Under the broader economic revival, BJP will accord high priority to job creation and opportunities for entrepreneurship."

The release of the BJP's manifesto has been blocked in the northeastern states of Assam and Tripura as polling there is already under way.

The ruling Indian National Congress has also filed a complaint with the Election Commission against the BJP for releasing the document on polling day.

The BJP's prime ministerial nominee, Narendra Modi, said: "This manifesto is not just a formality but our goal. Good governance and development are our key agenda. I will do nothing for myself. I will not do anything with ill intent."

China's Consumer Boom Tempts Singapore Firms Looking for Expansion but Doubts Remain

Water spouts out of the mouth of the Merlion statue in Singapore.Reuters

Singapore wants its companies to cash in on China's consumption boom, but the uncertainties that plague the world's second-largest economy could compel companies from the island nation to tread with caution.

Overseas expansion is a necessity for Singapore firms, which are battling rising rental costs and a labour crunch amid government curbs on foreign workers willing to accept lower wages.

Meanwhile, Chinese leaders are keen on rebalancing the economy by reducing its reliance on exports and big-ticket government investments.

China became Singapore's biggest trading partner last year, replacing Malaysia.

However, companies in Singapore are hesitant to enter China owing to capital constraints and because it is difficult to do business without knowing local government officials, said Seah Moon Ming, chairman of trade promotion agency IE Singapore.

Seah, who also heads energy supply and trading firm Pavilion Energy, will lead a business delegation to Shandong, China, this week.

Seah will explore the possibility of constructing liquefied natural gas (LNG) receiving terminals in Shandong. Singapore firms such as Jurong Consultants can provide construction and consultancy services while Rotary Engineering and its firms can build storage tanks, he said.

More Trade

Singapore's shipments to China could increase as a share of total exports, driven by consumer, infrastructure, logistics and energy, said Seah.

"We want to leverage on every possible access channel that we can have, either market access or business access," he told Bloomberg.

He added that China is expected to have net growth of over 5-6 percentage points, higher than that of the US, though economic expansion could slow to below 7%.

"The whole issue is not rules and regulation but how to navigate," Seah said. "You want to go China, what do you want? Somebody to hold your hand."

Singapore's small and medium enterprises can keep the growth momentum in the future only if they expand into regional markets, the report cited economist Vishnu Varathan of Mizuho Bank as saying.

Oscar Pistorius Hid in Cupboard to Escape Terrible Nightmares About Killing Reeva Steenkamp

Oscar Pistorius is haunted by terrible nightmares about killing Reeva Steenkamp, he revealed in courtReuters

Oscar Pistorius is haunted by "terrible nightmares" about the night he gunned down his girlfriend Reeva Steenkamp, the runner revealed in dramatic scenes at court.

The 27-year-old once hid in a cupboard because he was so scared and had to be rescued by his sister, he told a packed court room at his murder trial.

Fallen star Pistorius was speaking for the first time at his trial for killing 29-year-old Steenkamp.

He said he has been taking up to four medications for depression and sleep deprivation since killing her on Valentine's Day, last year.

Struggling to maintain his composure as he fought back tears, Pistorius said he hated sleeping and would try to stay awake instead.

He told the court: "I'm scared to sleep for several reasons. I have terrible nightmares about things that happened. I wake up and can smell blood and I awake to being terrified.

"If I hear a noise I wake up in a complete state of terror to the point I'd rather not sleep. For many weeks I didn't sleep. In April last year, I lost a significant amount of weight. I sought medical advice to start medication for sleeping."

He revealed that one night terror in particular was so bad that it caused him to flee in to a cupboard in his bedroom.

He told the court: "I woke up in a panic. I can phone my sister up in the middle of night, which I often do. I climbed in to the cupboard and phoned my sister (Aimee Pistorius) to sit by me, which she did."

Pistorius also revealed he can no longer stand being around firearms, in contrast to the impression painted of him as a gun enthusiast during the trial. He said a guard now keeps watch at his home.

He said: "I don't ever want to handle a firearm again so I have guard who stands outside my door every night."

Pistorius also talked about his charity work and humanitarian work helping people affected by landmines in Africa.

The Olympian and Paralympian denies murder and claims he mistook Steenkamp for an intruder inside his luxury home on the outskirts of Pretoria. The prosecution alleges he killed her following an argument between the couple.

The trial continues.

Oscar Pistorius Breaks Down Before Giving Evidence at Reeva Steenkamp Murder Trial

Oscar Pistorius holds his head in his hands as his trial resumes for killing Reeva SteenkampNorth Gauteng High Court

Oscar Pistorius held his head in his hands and retched as he waited to speak for the first time at his trial for killing Reeva Steenkamp.

The fallen track star was passed a bucket during the first morning back in court, following a week-long adjournment.

Pistorius has vomited on several occasions during proceedings at North Gauteng High Court since the trial started a month ago.

His voice wavered and nearly broke while he was being sworn in on the witness stand.

This morning (Monday) there was shock in the courtroom when a gruesome image was shown of Steenkamp's head after it was blasted by Pistorius.

The 29-year-old Steenkamp died after Pistorius shot her four times through the bathroom door of his luxury apartment. The killer shot hit Steenkamp in the head, while she was also injured in the hip and arm.

Pistorius also got a front-row seat to see prosecutor Gerrie Nel go on the attack against pathologist Jan Botha.

Pistorius denies murder and claims he mistook Steenkamp for an intruder at his luxury home. However the prosecution alleges he killed her following an argument.

The trial continues.

Hot Shots Photos of the Day: Pillow Fights, Mermaid Lessons, Phallus Festival

Catherine, Duchess of Cambridge and Prince George of Cambridge – or Kate Middleton and baby George – arrive at Wellington Military Terminal in New Zealand for the first day of a three-week Royal Tour of New Zealand and AustraliaGetty

Twin polar bear cubs play in their enclosure at Hellabrunn zoo in Munich. The two cubs have now been named – Nela and NobbyReuters

Lady Gaga climbs a ladder to reach the balcony...Getty

...to serenade Tony Bennett during her concert at Roseland Ballroom in New YorkGetty

An instructor from the Philippine Mermaid Swimming Academy puts three trainee mermaids through their paces in a private pool in Paranaque city, metro ManilaReuters

A large pink penis-shaped 'Mikoshi' is paraded through the streets during the annual Kanamara Matsuri (Festival of the Steel Phallus) in Kawasaki, Japan. The bizarre festival has its roots in the early 1600s, when prostitutes would visit a local shrine, praying for good business and protection from sexually-transmitted diseasesGetty

Revellers take part in a giant pillow-fight in Trafalgar Square to celebrate International Pillow Fight Day. Similar events were staged in cities around the world.Getty

Pillow fight in Hong Kong...AFP

... and New YorkReuters

People throw coloured powder during Holi festival celebrations in BarcelonaReuters

Galatasaray fans light flares to celebrate a goal against Fenerbahce during the Turkish Super League derby match in IstanbulReuters

Jayden Hayward of the Force collides in midair with Jonah Placid of the Reds during their round eight Super Rugby match in Brisbane, AustraliaGetty

Oxford's cox Sophie Shawdon is thrown into the Thames by her crew after they won the 160th Oxford-Cambridge Boat RaceGetty

Mahendra Singh Dhoni of India celebrates bowling out Lahiru Thirimanne of Sri Lanka during their ICC World Twenty20 final at Sher-e-Bangla Mirpur Stadium in Dhaka, BangladeshGetty

Lasith Malinga of Sri Lanka and his team celebrate with the trophy after beating India in the final of the ICC World Twenty20 in Dhaka, BangladeshGetty

People walk past Salt Lake temple as they arrive to attend the biannual general conference of the Church of Jesus Christ of Latter-day Saints – more commonly known as Mormons – in Salt Lake City, UtahReuters

Hakimullah, 12, alongside camel prepares to extract oil from sesame paste at a traditional sesame oil processing factory in Mazar-I-Sharif, AfghanistanReuters

Men rescue a boy from under the rubble of a building after what activists said was a barrel bomb attack by forces loyal to Syria's President Bashar Al-Assad in Al-Shaar neighbourhood of AleppoReuters

China to US: Keep Off Hong Kong's Political Affairs

Protesters wave Chinese national flags during an anti-mainland tourist rally in Hong Kong, in March.Reuters

China has expressed its strong displeasure over a meeting between Hong Kong pro-democracy campaigners and US Vice-president Joseph Biden at the White House.

The country urged Washington to distance itself from their internal affairs and cautioned against interference in Hong Kong politics.

The two pro-democracy supporters, Anson Chan and Martin Lee, went to Washington to lobby for international support against Beijing's growing political domination in Hong Kong.

They also met US Democratic Party leader Nancy Pelosi in the House of Representatives to brief her about what they see as China's indirect political autocracy in Hong Kong, according to Reuters.

The former British colony became a Special Administrative Region of China in 1997 with the rider that it would retain its civil liberties.

Hong Kong was long accustomed to broad freedoms taken for granted in a capitalist economic setup and society.

Beijing had promised elections for Hong Kong's chief executive in 2017, but democracy activists fear that China will install its own candidate for the position, as China ruled out any possibility of Hong Kong voters being allowed to decide.

China's refusal to let people choose candidates for the democratically elected office triggers frequent protests in Hong Kong.

Backing the meeting, the White House reiterated its stance on political freedom, saying that Biden had "underscored our long-standing support for democracy in Hong Kong".

"The future of freedom and democracy in Hong Kong is under serious threat," US Senator Sherrod Brown, said in a statement.

"China is already placing 'pre-conditions' on who can run [in 2017], raising serious doubts about whether the elections will be free and fair."

However, China's foreign ministry spokesman said that Hong Kong was at a critical juncture of political reforms, and interference by any country in the region will not be tolerated, the state-run Xinhua news agency reported.

A foreign ministry official was quoted as saying that the US must "proceed discreetly" on Hong Kong affairs, and "refrain from interfering."

Activists are reportedly planning to lead a civil disobedience moment called "Occupy Central" in Hong Kong's central business district if Beijing does not agree to hold democratic elections in accordance with international norms.

World Bank Trims China and East Asia Growth Forecasts

Strength in numbers: the last day of China's National Day Golden Week in Hefei, Anhui province, China (Reuters).

The World Bank has trimmed its 2014 growth forecast for developing East Asia

However, the region's economies will see stable economic growth this year, helped by a recovery in global trade and growth, and the market's modest response so far to the US Federal Reserve's stimulus taper, according to the development bank.

The World Bank expects the East Asia and Pacific (EAP) region to grow 7.1% in 2014 and 2015, down from the 7.2% rate it had previously predicted for both years.

Growth in 2016 will also hover at 7.1%, which is slightly below the 2013 growth rate of 7.2%, according to the World Bank's East Asia and Pacific Economic Update report released on 7 April.

In its report, the World Bank said improving global trade would make up for the difficulties that economies are likely to face from the tightening of the global financial markets

China Growth

The World Bank also trimmed its 2014 growth forecast for the world's second-largest economy, to 7.6% from 7.7% previously. It left the 2015 growth forecast for China at 7.5%, down from 2013's 7.7% growth rate.

The revised 2014 forecast reflected "the bumpy start to the year," it said, noting that China's industrial production and exports had been weak in the first two months of this year.

“...spillovers from a disorderly rebalancing in China could hurt regional and global growth”

- World Bank

Axel van Trotsenburg, World Bank East Asia and Pacific Regional vice president, said in a statement: "East Asia Pacific has served as the world's main growth engine since the global financial crisis.

"Stronger global growth this year will help the region expand at a relatively steady pace while adjusting to tighter global financial conditions."

Bert Hofman, chief economist of the World Bank's East Asia and Pacific Region, added: "A slower-than-expected recovery in advanced economies, a rise in global interest rates, and increased volatility in commodity prices on account of recent geo-political tensions in Eastern Europe serve as reminders that East Asia remains vulnerable to adverse global developments."

"Over the longer term, to keep growth high, developing East Asia should redouble efforts to pursue structural reforms to increase their underlying growth potential and enhance market confidence," Hofman said.

"Successful reforms in China could bring considerable benefits to trade partners supplying it with agricultural products, consumption goods and modern services. Conversely, spillovers from a disorderly rebalancing in China could hurt regional and global growth, especially in countries relying on natural resource exports," the report added.

China Slowdown

About a fifth of China's economy is shrinking while the remainder is growing moderately, an independent economist, Andy Xie, has said.

Xie also said a credit bubble in China is deflating, leading to weaker growth momentum.

Xie, speaking to CNBC Asia, said China's economy was probably not growing at the 7.5% rate that Beijing targets this year. However, he did not provide any forecast.

Xie added that Beijing's recent stimulus measures were possibly aimed at bolstering sentiment.