Samsung slashes profit estimates, Russia resumes Aleppo strikes and lessons on sovereignty

Smartphone maker also cuts sales forecasts a day after scrapping its fire-prone Galaxy Note 7

Listen to this article

00:00
00:00

Sign up to receive FirstFT by email here

Samsung Electronics has been buffeted by more bad news, a day after it took the unprecedented step of halting production of its fire-prone Galaxy Note 7 handset. The smartphone maker slashed its profit estimates for the third quarter by one-third, or $2.3bn. Sales forecasts were cut by 4 per cent. The FT’s Lex team warns the damage could yet be worse.

The Note 7’s fires and explosions were caused by a production error that placed pressure on plates within the device’s lithium-ion battery plates. Replacing the faulty batteries with other, safer ones was next to impossible, according to Wired magazine, because Samsung glued them down. Given that most other manufacturers do the same, the experts reckon we are likely to see more exploding devices. (FT, Wired)

In the news

Russia resumes Aleppo strikes Russian warplanes have carried out air strikes in rebel-held Aleppo after a relative lull in recent days. Activists say at least 25 people have been killed. The bombardment came as Vladimir Putin cancelled a trip to France after François Hollande strongly criticised Moscow’s role in the bombing campaign in Syria. The row between the two nations had been brewing since the weekend, when Russia vetoed a France-led UN resolution to end bombings on Aleppo. (BBC, FT)

Hong Kong politicians defy Beijing Newly-elected pro-democracy campaigners turned the swearing-in ceremony for Hong Kong’s parliament into a show of defiance against Beijing. One unfurled a banner that read “Hong Kong is not China”; others refused to read the official oath declaring loyalty to China. (Guardian)

The Donald unleashed Donald Trump has signalled that he will revert to the bare-knuckled campaigning that won him the Republican nomination. A day after House speaker Paul Ryan abandoned Mr Trump’s campaign, the Republican nominee sent out a series of tweets lambasting his party’s most senior official as “weak and ineffective”, and said that he was now free to go after Democratic rival Hillary Clinton “unshackled” by party restraint. Prepare for the final month of the race to be the nastiest yet. (FT)

Turks seek justice Thousands of Turks have found themselves caught up in the country’s failed coup as Recep Tayyip Erdogan uses emergency powers to arrest, suspend or sack more than 100,000 people. But opposition figures are warning that the president has gone too far and have set up a commission for those who claim to have been wrongly accused. (FT)

China and Russia close ranks against US Chinese and Russian defence officials on Tuesday blasted Washington’s plans to deploy a missile defence system in Asia and Europe, saying it would prompt a new arms race. A Chinese general said deployments in South Korea would jeopardise regional stability, while a Russian officer said they were presumptuous and arrogant. (SCMP)

It’s a big day for

Brexit The Labour party is set to challenge the government in the House of Commons to provide more details on its strategy for Brexit and submit a list of 170 allegedly unanswered questions on its plans. (FT)

Food for thought

Theresa May’s hard lesson on sovereignty Unwise words have consequences. The UK government’s extreme goals are now clear, writes Martin Wolf. “Investors have duly marked down the value of the country’s assets in the simplest way, by selling the pound.” (FT)

Xi Jinping’s third term Speculation is growing that Xi Jinping will defy China’s rule on leadership retirement, in what would be the biggest test yet of his authority over the Communist party. He will be 69 at the expiry of his second term in 2022 and some say he has hinted at seeking a third. (FT)

Japan’s sushi wars Despite the boom in sushi’s popularity outside Japan, the industry is declining at home as traditionalists battle new, fast-track training schemes to attract young sushi chefs. (NAR)

Ireland, land of giants Giants are a staple of Irish mythology but the tales may have a basis in fact. Scientists have discovered a gene defect in Northern Ireland that makes carriers grow abnormally tall. (BBC)

Crash: how computers are setting us up for disaster We increasingly let computers fly planes and carry out security checks. Driverless cars are next. But is our reliance on automation dangerously diminishing our skills? (The Guardian)

Video of the day

White House is Clinton’s to take What impact has the Trump tape made? How critical will congressional races be? FT editor Lionel Barber talks to chief US commentator Ed Luce and companies editor Brooke Masters. (FT)

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.