08/04/2014 Asia Business Report


08/04/2014

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Geldof, said his family was beyond pain. He said they would cherish

:00:00.:00:00.

forever. `` her forever. Now for the latest

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business news, live from Singapore. Australia and Japan agreed to the

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major points of a free`trade agreement, dubbed the cars and cows

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deal. We find out more about the chicken

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cup going under the hammer in Hong Kong.

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Thank you for joining us. I'm Rico Hizon. We start with the free`trade

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pact between Australia and Japan, which has been dubbed the cars and

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cows deal. It has been negotiated for over seven years but tonight the

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prime ministers of Australia and Japan agreed on the key points of

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the arrangement. Mr Abe said that the two countries will sign the deal

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as early as possible. Part of the deal will see a drop in the 5% duty

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on Japanese cars and Tokyo would reduce in half its steep tariff of

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almost 40% on Australian beef. Tony Abbott says that the deal marks a

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historic occasion for both nations. I earlier spoke to one of our

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regular economist commentators from Sydney. The deal is good for

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Australia and it is hard to quantify these things but the bottom line is

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that Australian farmers, particularly beef producers, can

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export more products to Japan and Australian consumers get the

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advantage of cheaper Japanese cars. You have to say, that's good for

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Australian industry and consumers. When will Australians feel the

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benefits? The car prices should start to come down pretty

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immediately, whenever that is introduced. I think almost

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straightaway. If you're buying a $30,000 Japanese car that should

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fall to about $28,500. Quite a saving there. The economic benefit

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should start to become apparent fairly soon. I will not revise up my

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economic growth prospect for Australia but this is promising.

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Prime Minister Tony Abbott is heading to South Korea to sign

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another deal. Do you think that these free`trade agreements will

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help fill the gap left by the mining boom? They will help. Australia got

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a huge boost over the last few years as mining investment boomed. That's

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now coming down as quickly as it went up and we need other sectors of

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the economy to help out. Agriculture is a big part of that and free`trade

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deals help there. That combines with the recovery we are seeing in the

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Australian housing and consumer sectors to fill the gap left as the

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mining boom slows down. The Australian economy should come out

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of this reasonably well. How has this bilateral deal with the Koreans

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and the Japanese impacted on the transpacific partnership being

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sponsored by the US? There are various deals going on. There are

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also negotiations with the WTO. These things have an impact on that

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and I would expect that, if agreements are reached in the TPP,

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these deals will get folded into that. The bottom line is that

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multilateral agreements are the best ones. But bilateral ones are a good

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second best. Having Australia do this with several countries in the

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region, that is a good move. In other business news, South

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Korea's electronics giant Samsung has forecast a fall in profits. .

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They're the world 's biggest maker of TV sets and mobile phones and

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they expect to make operating profit down 4% from last year. It follows a

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6% decline in operating profits from the previous quarter.

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Microsoft will end support for its Windows XP operating system later

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today. That means that there will be no more security updates or bug

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fixes. Some governments have negotiated extended support

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contracts in a bid to keep users protected, but security firms warn

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that anybody else using the 13`year`old software will be at an

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increased risk of infection and compromise.

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World finance ministers are gathering in Washington, DC for the

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meetings of the IMF and World Bank. Later today, the IMF will reveal its

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global economic forecast. What can we expect?

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The streets around the Washington headquarters of the IMF and the

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World Bank will be teeming with visitors from government officials

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to academics. The IMF is one of the most powerful players in the world

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economy. It's expected to urge policymakers to do more to spur

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growth. The lender of last resort says that five years after the start

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of the financial crisis, growth remains too weak and too slow. Some

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of the obstacles to growth include super low inflation, especially in

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Europe. Geopolitical tensions and communication by central banks are

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also issues. They would like to see greater cooperation among countries,

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especially when it comes to developing economic policies. The

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global economy may no longer be frozen, but the economic buds are

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slow to bloom. Anyone can have a good idea but

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turning it into a viable business and persuading investors to back you

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is not always easy. One start`up called Grab Taxi is announcing a new

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eight figure investment. But how did it get this far? I spoke earlier to

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the firm's founder to find out where the initial money came from. We won

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a competition. Being in that place, the continent of Southeast Asia is

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now half of China, 600 million population, growing very fast with

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mobile phone penetration. a competition. Being in that place,

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the continent of Does it help that you win a Harvard business

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competition? What about others? Where do they get their money? For

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us, it's betting on the right wave. Taking this mobile phone wave. We

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are also involved in the daily fabric of everybody's lives. It is

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public transportation, extremely visible. We are 15 times bigger than

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the next guy. You have to be unique. Yes. And very dominant in every

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market. What about the venture, capital landscaping in Southeast

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Asia? It is exciting. People are getting more confidence. We've seen

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what people are betting on in China. There are more start`ups that fail

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than succeed. Your application is getting more traction. How does it

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continue to attract more funding? The key is making sure that you are

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a leader, making sure that you innovate. There will be a lot of

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noise but really investing in your people. Our same group of people

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that we started with are still with us and fighting like there's no

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tomorrow. Ensuring that you maintain that leadership and grow the gap

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from 15 to 20. Chinese art lovers and investors the

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world over will be keeping their eyes on one small porcelain cup

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today. The so`called chicken cup is going under the hammer in Hong Kong

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and is expected to set a record price for Chinese ceramics, between

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39 and 40 million US dollars. `` 25 to 39 million.

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Unveiling a masterpiece. This tiny 15th century cup is expected to

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unleash a furious bidding war between international collectors. A

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winning bid above $32 million would set a new global record for Chinese

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porcelain at auction. These chicken cups were produced with a trademark

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and soon after that later emperors all collected them. They had them

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copied. These are objects bathed in mythology. This is why they are so

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valuable. Their legendary aura goes far beyond their historical

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importance. This cup is believed to be one of four in private hands. Art

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investors are closely watching the sale for clues about the once

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booming Chinese art market. Revenues are estimated to have peaked in

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2011. They then fell sharply in 2012. Part of the problem is the

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prevalence of fakes, including these copies. This has proven to be one of

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the biggest challenges facing the art investment market. China's

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auction industry has pledged to tackle the problem. But, despite

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worries about counterfeits in the market, appetites are once again

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whetted. A record`setting price for the Ming Dynasty cup may point to

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signs of recovery for the Chinese art and porcelain market.

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A pricey chicken cup. Let's have a look at the markets. As you can see,

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mixed reaction from the Asian stock markets. Thank you so much for

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investing your time with us. Bye for now.

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The main news stories this hour. The US has voiced great concern about

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heightened tension in eastern Ukraine.

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Pro`Russian demonstrators have seized control of government

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buildings. An Australian ship is set to launch

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an underwater remote submarine to look for the black

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