18/12/2013 Asia Business Report


18/12/2013

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constructions lifted on them on January one. -- claiming benefits.

:00:00.:00:00.

Time for Asia Business Report. Under pressure. Qantas executives

:00:00.:00:23.

face questions from unions over proposed job cuts. How one of the

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world's most motorcycle brands as muscling in on the Asian market. We

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start off in Australia with its national flight carrier in financial

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dire straits. Qantas is set to meet unions today as it moves to slash

:00:46.:00:49.

1000 jobs and cut cost Essendon. Job reductions were announced as they

:00:50.:00:55.

issued a surprise profit warning for six months to December. Shares

:00:56.:01:00.

remain weak and its credit rating was slashed by ratings agency

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Standard Poor's. They think the big thing on the

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uneven playing field is that they have been pushing the government to

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lift restrictions. They have a lot peculiar to them that allows them to

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have only 49% foreign ownership. Virgin Australia doesn't have this.

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It as foreign capital. They need to be changes. It is an old carrier

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with legacy cost Essendon. It needs to bring them down. Do you think the

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government will accept foreign ownership for Qantas? It seems the

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government is indicating that are opening to dropping these rules. It

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will take time. It is not like they will be able to access the money as

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soon as possible. And they have already basically stepped in, and

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Brett is said and what pumping new investment into Qantas editors

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lifted. -- Emirates said. Yes, if the cap is lifted, we don't know.

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What is the future for Qantas right now? There is competition from

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Virgin Australia. As they go through these painful times, it is going to

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get better later on. In the short term they are hurting. They are

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saying that the yields of airfares are down. Virgin's of growing. It is

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interesting. I think what this is going to have to abandon the idea

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that they control two thirds of the Australian market and neither verge

:02:26.:02:28.

of the last third. Soon the need to be an mean organisation for further

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cuts down the road. It is probably possible. There will be job cuts,

:02:35.:02:38.

restructuring, which will lead to more pain and be unpopular but is

:02:39.:02:45.

what they need to do to survive. Tony Abbott announces plans for a US

:02:46.:02:52.

fund to help create jobs in the states affected by the closure of

:02:53.:02:59.

local manufacturing facilities in 2017. Victorian and South last and

:03:00.:03:07.

are expected to contribute. -- Victoria and South Australia. The

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trade deficit in Japan has expanded from one year ago and soaring power

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bills caused by it Fukushima crisis have contributed. A deficit last

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month. It is a 17th straight month of deficit. Exports rising 18% off

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the back of strong shipments but imports soared 21% with hefty bills

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for oil and gas purchases. The Central Bank is expected to increase

:03:36.:03:40.

interest rates following a sharp rise in inflation. Surging vegetable

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prices push India's man and inflation to a 14 month high in

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November, reinforcing expectations and will raise the cost of borrowing

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despite India's stalling growth. Will they or won't they question on

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the heads of the US Central Bank, will be announced are winding down

:03:58.:04:02.

of quantitative easing? They have in buying $85 billion in bonds every

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month to keep down the long-term borrowing cost us in. The flood of

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cheap mud in from America plus a Central Bank was meant to lower

:04:13.:04:15.

borrowing costs and boost the US economy. Is the job done? In the

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junior as in much of America, there is a sense of optimism. -- in

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Virginia. Here, they have another reason to feel good. The inventories

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is running low. It is great. Sales are up. People like our product.

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Divided people like the product then we will keep selling it and we will

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keep hiring people to make it. This week he took on another employee and

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plans to add more in January. Hiring its businesses like this one has

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helped push down the nation's unemployment rate to 7%. Is it time

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for America's Central Bank to start turning off the stimulus taps? One

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reason it may hold fires that the economy is still not back normal.

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The economy is on the Synod back to where anybody would want it. We have

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7% unemployment and we have a very low labour force participation. The

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reason that unemployment has come back as well as it has is very

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heavily because of the people dropping out of the labour force.

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Economic challenge is not new. Past and present chair of the Federal

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Reserve are here to mark the 100th anniversary. Those inside this

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balding, the American Central Bank had indicated they are moving

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towards building down their stimulus measures. Whether or not the process

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begins at this Wednesday, it will fall into the next federal

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chairman, Janet Yellen to finish the job.

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What have people been searching for on the Internet this year. Google

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releases results. 'Gangnam Style' was globally the most popular search

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term and 2012. Psy was hugely popular in South

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Korea and Thailand and North Korea. This is an indication that Psy is

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here to stay. It seems like in India and Thailand, the trend seems to be

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more driven to the domestic market. Yes, in India Bollywood and cricket

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squad really high. In Thailand it is all but pop songs. It goes to show

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what the cultural unifies. In India enters about movies and hard it is

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about comedy and song. What were some of the unexpected trend from

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this year? We have seen a lot of natural disasters. There was Hayes

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in Singapore, tycoons in Japan. -- haze. People turn to the Internet as

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a first responder for information at the crisis at hand. In the

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Philippines, you will remember that there was 80 boxer who had his fight

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after the typhoon. Leyte was the strongest hit by the typhoon and had

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big search results for his match. People were turning to find out

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information about their favourite boxer, their hometown hero. Tired of

:07:55.:08:02.

traffic and high fuel prices, for many people this is the reason they

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opt to own a motorcycle instead of a car. China, and India are big for

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motorcycles. Motorcycles are everywhere in Asia. They are usually

:08:18.:08:22.

Japanese, Korean, or Chinese brands. Typically, they are cheap and small.

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Now, another name wants to muscle in on the market. Harley-Davidson. It

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is not a bikie would we through traffic on and is traditionally

:08:36.:08:37.

focused on its home market in the US. It has been expanding. The

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iconic brand now is passed 40% of its sales coming from international

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markets next year. Billed is the great-grandson of the founder of the

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company. Uses global recession changed strategy. The great thing

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about being global as it allows us the opportunity to be flexible. We

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know that the world economy is not always going to be a consistent

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pinnacle. There are going to be ups and downs. Hopefully Harley-Davidson

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can lean on the upwards side of that and continue to grow.

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Harley-Davidson has more customers in its hometown of Milwaukee than it

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does in all of China. Why is that the Tesco, Milwaukee is the

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birthplace. -- why is that the case was ? We have a strategy to grow the

:09:31.:09:42.

brand in China. We are tracking through that strategy. Chinese

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authorities have put restrictions on two wheeled vehicles and quite a few

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of their cities. Is it a concern? Not really. We have faced this

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elsewhere. Japan is a good example. We used to not be able to ride two

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wheeled heavyweight motorcycles in any of their freeways or interstate

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systems. Now you can because of our government affairs people waiting in

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and developing policies along with the Japanese government to allow

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this. Harley-Davidson has had a famous writers like Elvis Risley,

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Ireland Schwarzenegger, and even a Pope. -- Arnold.

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Here is a quick look at the market. Asian share prices are moving

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higher. On Wednesday investors are waiting to hear whether the bank

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will again winding down the stimulus campaign, and major driver.

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Thank you for your time. Goodbye for now.

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Welcome to BBC News. Let's have a look at the headlines. British

:11:16.:11:22.

government Minister says man crew died in detention in Syria was

:11:23.:11:27.

murdered by the Syrian regime. In Italy, secretly

:11:28.:11:28.

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