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expected. Time for the latest business news. | :00:00. | :00:14. | |
As World Cup fever takes hold in Asia, we look at how companies can | :00:15. | :00:22. | |
catch in on the action. And how Indonesia's growing appetite | :00:23. | :00:26. | |
for chocolate is fuelling a new business opportunities. | :00:27. | :00:34. | |
Thank you for joining us for this edition of the Asia Business Report. | :00:35. | :00:41. | |
You could not have missed it. Brazil has kicked off the World Cup in | :00:42. | :00:46. | |
style, winning off the first match against Croatia 3`1. But this is not | :00:47. | :00:51. | |
just about the fans. Football is big business. Companies have paid up to | :00:52. | :00:56. | |
$200 million to associate their brands with what is one of the | :00:57. | :01:01. | |
largest events on the global sporting calendar. FIFA is estimated | :01:02. | :01:08. | |
to make more than $1.4 billion over the cycle. Several companies are | :01:09. | :01:20. | |
signed on up to 2022. What about other businesses? The huge | :01:21. | :01:28. | |
pricetag, the top tier sponsors will pay $1.3 billion just to associate | :01:29. | :01:34. | |
themselves with the event. For a lot of companies, that is out of their | :01:35. | :01:38. | |
price range. What Asian companies are trying to make money and the | :01:39. | :01:44. | |
sponsor around the World Cup? The smart companies will attach | :01:45. | :01:47. | |
themselves to the events. They are attaching themselves to football. | :01:48. | :01:54. | |
Sony are launching their 3`D TV. Toshiba have a campaign left your | :01:55. | :01:58. | |
home country wins the event, you get a TV free. They are not attached to | :01:59. | :02:05. | |
the World Cup, but they are basking in the glow of football. What about | :02:06. | :02:13. | |
the smaller Asian companies? How are they leveraging themselves around | :02:14. | :02:18. | |
the World Cup? The smaller companies are using the fans to provide the | :02:19. | :02:21. | |
content and the information. They are becoming the conduit. The | :02:22. | :02:29. | |
smaller brands are helping the fans can act. They are producing contact | :02:30. | :02:37. | |
content and material. It is all about the gimmicks. It is about who | :02:38. | :02:50. | |
is the smartest brand. Meanwhile, India's new government | :02:51. | :02:56. | |
starts work with looking at the economic challenges it faces. India | :02:57. | :03:02. | |
spends more than $20 billion on making fuel cheaper for its people. | :03:03. | :03:06. | |
But producing those subsidies is a sensitive issue. | :03:07. | :03:14. | |
You would find a red cylinder like this one in virtually every Indian | :03:15. | :03:19. | |
household. It contains gas that is used for cooking. The government | :03:20. | :03:25. | |
gives every family 12 cylinders each year for $84. Less than half the | :03:26. | :03:34. | |
cost price. But for many, with six mouse to feed at home that is not | :03:35. | :03:41. | |
enough. TRANSLATION: It is not sufficient for my family. If I have | :03:42. | :03:45. | |
to buy gas at the actual price, that is money we can spend on our | :03:46. | :03:54. | |
children's education and health. A change in gas prices affect | :03:55. | :04:00. | |
virtually every person in India. But subsidising the fuel is also a | :04:01. | :04:04. | |
burden on the country's finances. India imports most of the fuel | :04:05. | :04:10. | |
needs. Some of that is also spent on making diesel cheaper. The cost of | :04:11. | :04:17. | |
this fuel has been at the centre of many political debates. During the | :04:18. | :04:21. | |
last coalition, an important ally walked out of government because of | :04:22. | :04:27. | |
a hike of diesel prices. Diesel is used in lorries like these, which | :04:28. | :04:31. | |
transport everything from fruit and vegetables to consumer goods. Making | :04:32. | :04:36. | |
the fuel more expensive means everything ends up costing more. But | :04:37. | :04:41. | |
the new government won the next election with a majority. When you | :04:42. | :04:53. | |
get aggressive towards the subsidy, it becomes unpopular. The government | :04:54. | :04:58. | |
has come up with a mandate that has been given by popular demand. | :04:59. | :05:04. | |
Especially in the context that people aspire to. These motorists | :05:05. | :05:11. | |
will be watching what happens closely. But with high expectations | :05:12. | :05:17. | |
at home to keep prices low and the show from credit ratings agencies to | :05:18. | :05:23. | |
make India financially stable, this is a delicate balance the new | :05:24. | :05:26. | |
government has to strike early in its time in power. | :05:27. | :05:30. | |
In other business News making headlines, has the is opening up its | :05:31. | :05:38. | |
patents for others to use. The firm's chief executive says the move | :05:39. | :05:44. | |
is aimed at speeding up the development of electric cars. The | :05:45. | :05:46. | |
firm sold just under 23,000 of the units last year. Expedia has become | :05:47. | :05:54. | |
the latest company to accept bitcoin is as payment. It is restricting the | :05:55. | :06:03. | |
trial to its US website. Water may be a scarce resource in many places, | :06:04. | :06:08. | |
but it can also be crucial for businesses. Like Coca`Cola. We spoke | :06:09. | :06:19. | |
to the director of the world switch programme run by Coke. There are | :06:20. | :06:25. | |
certain times and places, take the midwest of the United States, take | :06:26. | :06:30. | |
Northwest India, the north of China, water supplies are limited. | :06:31. | :06:36. | |
That is being exacerbated by overuse. The amount of water that is | :06:37. | :06:44. | |
replenished naturally, through rain, snow, ice, can not keep up with the | :06:45. | :06:50. | |
amount of water being used by civilisation. Has water become the | :06:51. | :06:56. | |
oil of the 21st`century? The comparisons to oil suggest a level | :06:57. | :07:04. | |
of scarcity. And competition. While that is true in certain times and | :07:05. | :07:10. | |
places, you can face water stresses from scarcity to quality, the amount | :07:11. | :07:15. | |
of water on Earth is fixed. It is a finite resources. You cannot create | :07:16. | :07:20. | |
or destroy it. It is renewable. Unlike fossil fuels. What's more is | :07:21. | :07:25. | |
Coca`Cola going to do to respond to criticism that it is using up | :07:26. | :07:29. | |
valuable resources in water stressed areas? The programmes, the partners | :07:30. | :07:36. | |
and the progress we have made over the last ten years has shown an | :07:37. | :07:45. | |
evolution immaturity of the understanding and response. It does | :07:46. | :07:49. | |
not then we are done. The 500 projects we have with partners in | :07:50. | :07:54. | |
3000 communities around the world, the investments we have made, it is | :07:55. | :07:57. | |
the beginning. Water is always going to be required. There is always | :07:58. | :08:05. | |
going to be something to do. With rising incomes, Indonesians | :08:06. | :08:09. | |
have required a taste for chocolate. `` acquired. You would be hard | :08:10. | :08:14. | |
pressed to find any good`quality chocolates made in the country. | :08:15. | :08:22. | |
We find out how businesses are seeing opportunities for a | :08:23. | :08:26. | |
home`grown market. Nobody would call these in | :08:27. | :08:30. | |
Indonesian delicacy. Chocolates in Indonesia used to content more on | :08:31. | :08:37. | |
milk and sugar and cocoa. `` than sugar and cocoa. But there is a | :08:38. | :08:43. | |
growing appetite. The owners began selling chocolate 13 years ago. They | :08:44. | :08:46. | |
started the business from home. But it has grown to 13 outlets. They use | :08:47. | :08:52. | |
cocoa powder and butter from Belgium. We want to maintain our | :08:53. | :09:01. | |
quality and it does not mean we are not trusting the quality of | :09:02. | :09:09. | |
Indonesia, but we can export to another country. Some of the best | :09:10. | :09:16. | |
cocoa beans actually come from right here in Indonesia. Like those grown | :09:17. | :09:21. | |
by villagers on this island. This is where a lot of the cocoa beans come | :09:22. | :09:26. | |
from. There is a variety of trees here. But these farmers make most of | :09:27. | :09:30. | |
their money from cocoa. These beans and up on some of the best chocolate | :09:31. | :09:36. | |
in Europe, not Indonesia. But things may be changing. An American food | :09:37. | :09:42. | |
processing company has been sourcing cocoa beans from Indonesia for | :09:43. | :09:47. | |
nearly 20 years. Now it is investing in a $100 million cocoa processing | :09:48. | :09:52. | |
plant in Indonesia. Given the rapid growth of cocoa consumption in | :09:53. | :09:57. | |
Indonesia and Asia and the fact that Indonesia is the third largest | :09:58. | :10:03. | |
producing company in the world, the next step for the region would be a | :10:04. | :10:09. | |
cocoa processing plant. Harvest time. The mood is jubilant. | :10:10. | :10:13. | |
Good`quality cocoa has nearly doubled these villagers' income. | :10:14. | :10:20. | |
There is hope for an even better future. | :10:21. | :10:27. | |
All Asian stock markets are declining at this tour due to | :10:28. | :10:31. | |
violence in Iraq and lack of economic news in the US. Thank you | :10:32. | :10:33. | |
for joining us. Here are the headlines: President | :10:34. | :10:49. | |
Obama says he is looking at all options to help the Iraqi government | :10:50. | :10:51. | |
counter the Islamist | :10:52. | :10:52. |