13/02/2014 Asia Business Report


13/02/2014

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of bullying and intimidation. Now on BBC News all the latest

:00:00.:00:00.

business news live from Singapore. The world's biggest PC maker beats

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expectations for its December quarterly earnings, to post record

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results. At the Singapore Airshow we get on

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board an aircraft like no other. It has plans to spread its wings

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across Asia. Welcome to Asia Business Report. We

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kick off with the world's biggest personal computer Manufacturer,

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Lenovo. It has posted record results. Shares are slightly down,

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despite beating quarterly earnings in December, and posting record

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numbers. The data comes in the wake of the company's more than $5

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billion shopping spree to buy IBM's low-end server business and

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Motorola's Mobility from Google. Investors will be watching that

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closely. They expect their sale to dilate future earnings. We cross

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live to our correspondent in Hong Kong. They touted strong earnings

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from October to December. Profits are up 30%. Revenue is up 15%. 32.6

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million units shipped, one every five seconds. They gave a

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marketshare figure, saying that they command 18.5% of the global market.

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Number one in that space. Two of Asia's big economies

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announced their interest-rate decisions today. Earlier, South

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Korea's central bank kept rates on hold, Indonesia is expected the same

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-- to do the same. Close attention is being held to these nations, and

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the rest of Asia's emerging economies as the US Federal reserve

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looks set to continue winding back its stimulus programme. Our chief

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business correspondent explains why the Fed's moves are being held here.

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It was not logo that emerging economies were what excited

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investors. The growth rate outpaced that of developed economies. In

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fact, they still do. Developing countries are projected to grow at

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5%, that is more than twice as fast as developed economies, as 2.2%.

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Asia is projected to grow even more quickly, and 6%. China has over 7%.

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The US is at around 3%. So why are some investors leaving emerging

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markets? There is a big downside risk to the growth. Some economies

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have grown accustomed to plentiful cash. They have large external

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deficits. The Fed has been injecting cash for the past five years. Now it

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is winding down. That is why some countries have raised rates, to

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attract investors with higher returns. The problem is that it

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hurts growth. They worry that if they do not act, they risk a crisis

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where the cash will dry up. It is not all down to the Federal Reserve.

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Emerging economies have huge possibilities. Look at their

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populations. They are more volatile. Only 17 countries have grown enough

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to become rich. That gives a sense as to why it has always been risky

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to invest in them. Now, with the US and Europe recovering, investors are

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reconsidering. Earlier I spoke to a regional

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economist with Barclays Bank to ask about the outlook for the emerging

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nations globally and here in Asia. It has been a challenging start of

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the year for emerging markets. There has been pressure. Asia is feeling

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that. More vulnerable countries coming under the radar. These

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countries have outperformed. They have come under pressure.

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With all of these factors having an impact on Asia's emerging economies

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in the first quarter of this year, has it now stabilised?

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We are seeing a breather on the market. There has been some

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stabilisation. Through the next couple of months, we will have

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regular bouts of stress. For investors, it is good to be in their

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positions. What stresses are happening for the

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Asian economies? It is safe to say that the global

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manufacturing cycle continues to improve. There is still strength in

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the US economy. That is benefiting countries in the North Asian bloc,

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such as Korea, which is geared to manufacturing, especially

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electronics. We continue to like North Asian countries, we like

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China, we like Korea. They are less vulnerable in this environment.

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Thank you. More than two thirds of the

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population of Myanmar live without mains electricity. As the country

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opens up to investment, basic utilities and infrastructure are the

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biggest concerns. This week, a US -based energy supplier struck a deal

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with the government. They will provide temporary gas, and power

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generators to bring electricity to 6 billion people. Earlier I spoke with

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the company's had for business to the limit. -- 6 million people. We

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are about fast track to power. We build large scale fast track power

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plants in three months or less. This plant is already under construction.

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It will be delivered by the end of March. How many households will it

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reach? How many people can make this facility should deliver power to

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around 6 billion people. It is one of the largest, cleanest and most

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efficient plants. -- six million. It will deliver power using indigenous

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fuel. It will be built in three months time. Can you tell us how

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much this deal was worth, and how much of the company is investing in

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Myanmar? We cannot disclose the specifics of the deal, but it is a

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substantial investment. It is one of the largest investments by an

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American company in India now. Time. We are the first country to sign a

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power contract in Myanmar for many years. This is the first of what we

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hope our number of investment. At the Singapore Airshow,

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manufacturers are keen to tap into the growing defence market in the

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Asia-Pacific. Bell Helicopters has its Osprey planes on display. It is

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only used by the US Marines, but the company is keen to attract new

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investors. We got on board as a craft to get a first-hand experience

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of its capabilities. -- on board this aircraft.

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Saving lives in times of distress, the Osprey played a key role in

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relief and rescue operations after Typhoon Haiyan struck the

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Philippines. Bell Helicopters, the maker of the plane, has now brought

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it to the Singapore show for countries other than the US to take

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a closer look at it, and see if they would like to buy the plane. I got a

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chance to experience the plane's capabilities firsthand. What makes

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it unique is the fact that it combines the capabilities of a

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helicopter with that of a traditional plane. It can take off

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vertically. It can climb at a rate of 5000 feet per minute. That is

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more than ten times what you would do in a normal civil aeroplane. The

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traditional plane mode allows it to achieve speeds faster than a

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helicopter can. The Osprey is not just about combining the

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capabilities. One of the pilots who flew the plane to the Philippines

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says high end technology on board gives it an edge over other planes.

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The one behind us is a Black Sea version. It has a weather radar

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operation. It allowed us to navigate through the weather to provide

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relief to some of the outlying islands that other aircraft may not

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have been able to navigate through. It is only the Americans who use

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these right now. They have bought more than 270 of them. They have

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ordered another 100. The firm is ready to sell them abroad.

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We are looking at different countries. We are giving other

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countries there first exposure. We expect interest to increase

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dramatically after the show. It does not come cheap. It costs

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nearly $90 million to buy one, that is before maintenance and training.

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There are only a limited number of countries which will be able to

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afford that. We will continue to bring you the

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latest from this major Asian air event from Singapore. Head to our

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website for all the latest news and analysis.

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Today - the race to become the world's best airport.

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Before we go, a quickwitted Asian markets. Currently lacklustre. Most

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in negative territory coming off three-week eyes. Investors are

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cautiously optimistic. Thank you for investing in time with us.

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The top stories this hour: Much of Britain is continuing to experience

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some of its worst weather for years with high winds, driving rain and

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widespread flooding. On a far bigger scale - the weather

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is

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