Browse content similar to 14/05/2014. Check below for episodes and series from the same categories and more!
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Investigation into allegations of abuse will begin regarding reports | :00:00. | :00:00. | |
of abuse by British soldiers. As Australia digests a brand`new | :00:00. | :00:18. | |
budget with tough spending cuts and tax hikes, we get the reaction from | :00:19. | :00:24. | |
the man on the street. And, Sony get set to announce its latest numbers, | :00:25. | :00:33. | |
with warnings of a massive loss. Thank you for joining us on Asia | :00:34. | :00:38. | |
Business Report. I'm Rico Hizon. Australians were warned it would be | :00:39. | :00:43. | |
tough, and it was. The country's first Budget under the Abbott | :00:44. | :00:47. | |
government includes plans to nearly cut the deficit by half, with | :00:48. | :00:50. | |
reductions to welfare and higher taxes, and at the same time the | :00:51. | :00:54. | |
government is increasing spending on infrastructure. The aim is to bring | :00:55. | :00:59. | |
the deficit of nearly $50 billion, down to about 30 billion next year. | :01:00. | :01:02. | |
To help with that goal, higher income earners will pay a special | :01:03. | :01:07. | |
tax than three years. The new levy also applies to murmurs of | :01:08. | :01:10. | |
Parliament. Benefits for families have been reduced as well. On the | :01:11. | :01:15. | |
investment side, the government promised to spend $11 billion over | :01:16. | :01:17. | |
five years on infrastructure spending. Phil Mercer in Sydney had | :01:18. | :01:21. | |
a very early start this morning, he was out and about getting people's | :01:22. | :01:27. | |
reaction to the budget. Pain with purpose, is how the | :01:28. | :01:30. | |
government is describing its efforts to balance straight's books. There | :01:31. | :01:34. | |
will be sweeping cuts to welfare, tax cuts for higher income earners, | :01:35. | :01:38. | |
and the retirement age will rise to 70 further down the track. | :01:39. | :01:41. | |
Government spending will be slashed, and thousands of public servants | :01:42. | :01:45. | |
will lose their jobs. The aim is to save $34 billion in the next four | :01:46. | :01:52. | |
years. The morning after, Australians are digesting their | :01:53. | :01:55. | |
country's harshest Budget since the late 1990s. Tax hike are probably a | :01:56. | :02:02. | |
reasonable thing, cuts to welfare are bit questionable. Is the part | :02:03. | :02:08. | |
government stuff the country up, we have to try to everyone has to help | :02:09. | :02:12. | |
out, pay to go to the doctor, that is what we have to do. Root think it | :02:13. | :02:16. | |
is hard on health and education, but things have got to be sorted out, so | :02:17. | :02:24. | |
as long as it is only short`term. The government says the budget will | :02:25. | :02:28. | |
strengthen the Australian economy for decades to come. Billions will | :02:29. | :02:33. | |
be spent on road, rail and port projects, to boost prosperity, as a | :02:34. | :02:37. | |
decade`long resources boom comes to an end. Critics have labelled the | :02:38. | :02:43. | |
Budget regressive and shortsighted. The opposition party has described | :02:44. | :02:48. | |
it as a string of broken promises. Investors will be expecting a | :02:49. | :02:54. | |
backlash from voters, but the next federal election is two years away, | :02:55. | :02:56. | |
so the government will have time to sell the benefits of what it | :02:57. | :02:59. | |
describes as a long`term budget repair job. | :03:00. | :03:07. | |
Earlier, I spoke to the chief executive of the Australian innocent | :03:08. | :03:11. | |
group, which represents the interests of more than 60,000 | :03:12. | :03:16. | |
businesses across a range of sectors, including manufacture, and | :03:17. | :03:21. | |
labour hire. I asked him if this budget was what he had been | :03:22. | :03:25. | |
expecting. This is a tough budget, it could have been tougher in some | :03:26. | :03:30. | |
respects. But it is one for the longer term. The short`term pain | :03:31. | :03:33. | |
will be quite significant for many within the community, as your street | :03:34. | :03:38. | |
poll said, a lot of the focus is around health and welfare issues. | :03:39. | :03:42. | |
For business, there are very significant cuts to government | :03:43. | :03:50. | |
programmes, and that will be recalibrated, but it will be quite | :03:51. | :03:56. | |
harsh on businesses. A lot of government programmes have been cut | :03:57. | :03:58. | |
out, there has been cuts to research and development, we have had very | :03:59. | :04:03. | |
welcome cuts to corporate taxes. Those will come down by one and a | :04:04. | :04:08. | |
half points, to 28.5%. That is welcome. So, this Budget will indeed | :04:09. | :04:17. | |
impact many businesses, but are their sectors that will benefit from | :04:18. | :04:21. | |
it? Look, definitely. The biggest winner at this is infrastructure. We | :04:22. | :04:26. | |
have a very dry infrastructure pipeline, and we need to get that | :04:27. | :04:30. | |
going. Part of the problem that this Budget has identified is that the | :04:31. | :04:33. | |
Australian economy is sluggish at the moment, we are growing below | :04:34. | :04:37. | |
trend, unemployment is forecast to go up over the next year, do we need | :04:38. | :04:40. | |
to get those infrastructure projects going. That was the CEO of the | :04:41. | :04:49. | |
Australian industry group. Other news making headlines, a top caught | :04:50. | :04:57. | |
in the EU has ruled that Google must altar search results if asked to buy | :04:58. | :05:03. | |
an individual. An individual has rights to ask Google to remove | :05:04. | :05:06. | |
information under particular circumstances. That is, individuals | :05:07. | :05:13. | |
have a right to be forgotten. In the stock market, fresh highs on Tuesday | :05:14. | :05:16. | |
after records were broken at the beginning of the week. The rupee | :05:17. | :05:21. | |
rallied to its strongest point in ten months. It follows the end of | :05:22. | :05:26. | |
five weeks of voting across India. It is a sign that investors are | :05:27. | :05:32. | |
confident, particularly that Narendra Modi's BGP will win the | :05:33. | :05:43. | |
election. `` BJP. Retail sales have grown, showing that consumers cut | :05:44. | :05:49. | |
back on purchases of electronics and furniture. The slowdown surprised | :05:50. | :05:54. | |
many analysts, who were looking for continued growth after a harsh | :05:55. | :06:00. | |
winter impacted spending. A BBC Watchdog investigation into the | :06:01. | :06:05. | |
German carmaker, Audi, has discovered widespread lying about | :06:06. | :06:08. | |
the safety testing of their vehicles. Undercover research has | :06:09. | :06:10. | |
witnessed nine out of ten dealers from around the UK falsely claiming | :06:11. | :06:20. | |
the Audi A5 was safety tested. Audi UK said it had not been an | :06:21. | :06:28. | |
deliberate intent to mislead. The electronics business is a tough one, | :06:29. | :06:32. | |
and no country has been feeling the pain more than Japanese giant Sony. | :06:33. | :06:37. | |
Just how big the challenges the company is facing will become | :06:38. | :06:41. | |
clearer today, when it announces its latest report, with warnings of a | :06:42. | :06:47. | |
massive loss. We explain why Sony, once the undisputed will market | :06:48. | :06:52. | |
leader, has been struggling. Sony was once the king of consumer | :06:53. | :06:55. | |
electronics, but it has fast been overtaken by competitors like Apple | :06:56. | :07:01. | |
and Samsung. It is expected to book annual losses of $1.3 billion. That | :07:02. | :07:05. | |
is despite undergoing restructuring of the firm, plans to cut 5000 jobs, | :07:06. | :07:12. | |
and the $1 billion sell`off of its headquarters in Manhattan. The big | :07:13. | :07:17. | |
drag on its bottom line has come from its TV and personal computer | :07:18. | :07:22. | |
divisions. It prompted Moody's to cut its credit rating to junk status | :07:23. | :07:26. | |
this year. Part of the losses have been put down to 1`off costs, linked | :07:27. | :07:31. | |
to its decision to exit the PC business and sell off its brand of | :07:32. | :07:35. | |
computers. There has been pressure to ditch its television division as | :07:36. | :07:39. | |
well, a fiercely competitive sector with slim margins, but so far the | :07:40. | :07:43. | |
firm is resisting the move, and is instead splitting the unit into a | :07:44. | :07:48. | |
wholly owned subsidiary. It could prove to be a costly decision for | :07:49. | :07:52. | |
the top executives, could be forced to forego their bonuses for yet | :07:53. | :07:58. | |
another year. Some may now be asking why Sony is so different to other | :07:59. | :08:02. | |
gadget makers like Panasonic and sharp. Both of them have turned | :08:03. | :08:07. | |
their fortunes around, and are back in the black, after huge losses last | :08:08. | :08:12. | |
year. Earlier, I spoke to an expert, | :08:13. | :08:21. | |
asking him what Sony should do with its business. It is one of the | :08:22. | :08:26. | |
toughest business sectors, they are struggling to turn it around, moving | :08:27. | :08:31. | |
it into a separate subsidiary. The pace of innovation in that segment | :08:32. | :08:36. | |
is not enough for Sony to be able to differentiate and command a premium. | :08:37. | :08:42. | |
It is a tough business, I don't see them providing any ads is as yet `` | :08:43. | :08:50. | |
answers, as to how they can bring back profitability. It is a tough | :08:51. | :08:54. | |
business, as you say. Should they just shut it down? We all have | :08:55. | :09:06. | |
associated televisions with the Sony brand. Diversification is what they | :09:07. | :09:12. | |
need to do. As we see a variety of different consumer devices having | :09:13. | :09:15. | |
the screen, that is an opportunity to bring growth. What Sony is doing, | :09:16. | :09:20. | |
with its foray into healthcare, is an interesting proposition. They | :09:21. | :09:24. | |
could integrate consumer devices into a new value proposition in | :09:25. | :09:28. | |
hospitals, as well as consumers. That is an interesting idea. They | :09:29. | :09:35. | |
will need more of these ideas to help drive growth and | :09:36. | :09:39. | |
profitability. The PlayStation is doing very well, the movie business | :09:40. | :09:44. | |
is profitable. When do you think this healthcare business will bring | :09:45. | :09:47. | |
in revenues? To make the company again profitable? I think they are | :09:48. | :09:53. | |
making tough decisions in terms of selling the PC business, and as a | :09:54. | :09:57. | |
result they are left with only the television business. The remaining | :09:58. | :10:02. | |
parts of the business are growing, there is profitability. The real | :10:03. | :10:07. | |
value can come through Sony if it can integrate the various pieces of | :10:08. | :10:10. | |
its business, from the television to the software to the music. And, have | :10:11. | :10:14. | |
a greater impact on the consumer lifestyle. | :10:15. | :10:21. | |
Asian stocks are inching upwards after another strong day. South | :10:22. | :10:29. | |
Korea and Hong Kong in positive territory. Japan and Australia are | :10:30. | :10:33. | |
moving sideways. Thank you for investing your time with us. | :10:34. | :10:42. | |
Our top stories: An explosion at a coal mine in western Turkey has | :10:43. | :10:51. | |
killed at least 160 people. Around 200 have been | :10:52. | :10:52. |