12/05/2014 Asia Business Report


12/05/2014

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for Mr Gove says the claims are totally wrong. Now on BBC News, all

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the latest business news, live from Singapore. Countdown as India enters

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the final days of its elections. Can the upcoming weather conditions

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impact the country's economy? And we will find out what is really

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worrying some of the world's biggest bank. Thank you for joining us.

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India is in the final week of the world's biggest democratic election,

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in which rising costs have been a key issue on voters' minds. The

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increasing amount people have to pay for basic goods is one of India's

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biggest economic and political problems. And there is increasing

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concern that higher cost could be exacerbated this year, when the

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forecast is for the return of El Nino weather conditions. The weather

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system can trigger floods and droughts in different parts of the

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world. Earlier, I spoke with one economist from Barclays. How could

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El Nino impact this economy? Last time it came around, it was in 2009,

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and the north`west monsoons suffered quite badly. Inflation increased

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quite a bit. At this point, India's Weather Bureau says that rainfall is

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going to be probably normal but in the past, their forecasts have been

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wrong and if that happens, I think that we will have a big problem on

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the inflation front. Inflation coming out today and also wholesale

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prices. What are you expecting? Will it be impacted by this weather

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pattern? The run`up to the monsoons normally begins in June but we have

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already seen some dry weather and this will have some impact on

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particular food items. We expect an increase in inflation numbers for

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the month of April. The main risk is that we will have a failure in crops

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and this will have significant impact for the second half of the

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year, especially when the new government is in power. That can

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potentially be the first major challenge they face in office. Thank

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you. In the north`east of India, the state of Bihar once lagged far

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behind the rest of the country when it came to economic development. It

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was a place where young people could not find jobs and were forced to

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relocate to other areas. Now, things are changing.

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Far away from home in Mumbai's melting pot, this man is still

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trying to acquire a taste for the big city. He sells spicy Indian

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snacks from his roadside eatery and lives with six other men all from

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his village in Bihar. He came here about 20 years ago in search of work

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and goes back just once every year to meet his wife and children.

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TRANSLATION: When we left, there was no chance of getting any work in

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Bihar. We were poor and were forced to come here to make money and send

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some back to our families. If there had been any jobs there, I would not

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have left my home. Millions of people like him moved away from the

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heart, but now, things seem to be moving forward for the young people

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there. Ravi recently bought this motorcycle with the salary he makes

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working at a local factory. When he finished his education a few years

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ago, he found a job almost immediately. TRANSLATION: I'm very

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happy that I did not have to leave my home. I have a wife and small

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baby. It would have been very hard without them and I would have been

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constantly worrying. Earlier, claims like these used to be full of people

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leaving the heart and moving to more developed parts of the country in

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search of work. Now, young people ready to join the workforce have

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found there are opportunities for them here. In this area of Bihar

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state alone, more than 100 factories have started up in the last few

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years. One of them is this skit manufacturing plant. Set up three

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years ago, it employs 350 people. `` biscuit manufacturing grant. But

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Bihar is yet to attract many big names and while the state's rapid

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rate of growth has been welcomed, it will take a while to catch up with

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the rest of the country. Much of how the state of Bihar progresses

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depends on politics here, and so people are relying on whichever

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party comes to power both in national government and here in the

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state to keep them moving in the right direction. For the first

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time, the UK has more billionaires per head of population than any

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other country, according to a rich list published by the Sunday Times

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newspaper. To Indian born brothers topped the list, with a fortune of

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more than $20 billion. There are now more than 104 billionaires based in

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the UK, with a combined wealth of more than $500 billion. The chairman

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of Samsung is in a stable condition after undergoing emergency heart

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surgery. He underwent the operation after suffering breathing

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difficulties late on Saturday night. He took over as chairman of Samsung

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in 1987 after his father's deaths. He is now recuperating and is in a

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stable condition. India's biggest casino operator announces its

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earnings today. It runs 20 out of 30 casinos in Macau. But in the past

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week, its shares have hit a rough patch. It's among six casino

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operators to have seen this takes plunge after concerns China may

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tighten its currency controls in Macau. The Hong Kong listed shares

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in Macau casino operators fell by something up to 9%. And it comes

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after worries of a growing crackdown on money`laundering and illegal

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money transfers out of China. We had news from the biggest network of

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debt and 80 cards in China, saying they would tighten their

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restrictions. This is how most Chinese travellers when they leave

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China access money. There are lots of restrictions on how much they can

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take out of the country including two places like Hong Kong and

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Macau, and there are also restrictions as to how much they can

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take out once they arrive in these places. People in the Macau casino

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industry have said that the way some gamblers have been getting around

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these currency controls has been going to a porn shop in Macau,

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buying something expensive, returning that item immediately in

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exchange for cash. `` pawn shop. And the pawn shop owners would get a cut

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on that. Thank you. From rogue traders to sub`prime mortgages,

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banks are dealt with major crises in recent years, but a recent survey

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has found the industry is now worried that technology may pose one

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of the biggest risks to their businesses. We asked why this was

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the main concern. Immediately after the global financial crisis, people

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were very concerned about where the economy was growing, `` where it was

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going, what they could do about it and how that would affect them. By

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and large, people have settled down on that. Now the main issue is how

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the regulators will respond to the crisis. The regulators have not

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quite put their plans in place yet. While the banks are pretty certain

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what their business strategies will be as we go forward, they are

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concerned about what regulations they will be working under.

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Macroeconomic factors really do affect this region, however. The

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Asia`Pacific banks were not as badly damaged by the global financial

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crisis as their counterparts in the US and Europe. They will be looking

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at how the market develops after the changes in regulation. Then they are

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looking at things that are slightly different. What consistent between

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the two is the uplift of technology risk, which is consistent between

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the board. What do you mean by that? Cyber risks? Everything.

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Customers drive the banks to be more efficient in their services and they

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are almost making that... The banks have had to adopt two world`class

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technology standards in order to service their customers. This comes

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with a certain amount of risk and the banks are beginning to

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understand the type of risk in the marketplace to the sort of internet

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and other platforms where they need to serve their customers. How big a

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risk is this? Technology risk has arisen for the first time. The last

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time technology risk came up was in 1998, two years before Y2K. Thank

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you for investing your time with us. Goodbye for now.

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The top stories this hour: Unofficial self`rule referenda have

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been held in parts of the east of Ukraine.

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There has been a shooting in one town.

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Voting has begun in the final round of India's five`week general

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election. Three key states are going to the polls. Senior Liberal

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Democrats have increased pressure on the Education Secretary Michael

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Gove,

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