22/07/2014 Asia Business Report


22/07/2014

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the collapse of the trial of the pop star, Tulisa Contostavlos. She'd

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been accused of drugs offences which she had always denied. Now on BBC

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News all the latest business news live from Singapore.

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Fuel subsidies as we await the final count of Indonesia's collection, we

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look at a key economic issues facing the new president. Subsidizing

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petrol has led to a huge deficit which is unsustainable for their

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economy. Shanghai's shut down, a food scare in China said to be

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selling out of date meat. Welcome to Asia Business Report. Indonesia is

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set to announce the winner of the presidential election today with

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almost all of the votes counted. Most private tallies give Joko

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Widodo a slim lead over his rival. Whoever takes over as president will

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have to tackle the issue of fuel subsidies, the main cause of their

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current deficit. Now we go to our correspondant. Every year, Indonesia

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spends $20 billion subsidizing fuel for its citizens. Petrol is around

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56 cents a leader which means that they are paying some of the cheapest

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prices in the world for their fuel. This is a gas guzzling country and

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demand is high with the middle class anymore than ever before `` paying

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more. Fuel subsidies only benefit the wealthy and Indonesia and

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raising subsidies is unlikely to be popular. TRANSLATION: I don't agree

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with the decision to get rid of subsidies. They keep raising

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prices, it is enough. I guess the subsidies must be reduced but it

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would be better if they could hand back some cash to the poor in some

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other way. Analyst say that the reality is that Indonesia no longer

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has a choice when it comes to raising fuel prices. Subsidizing

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petrol has led to a huge deficit which is unsustainable for their

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economy and could prove to be dangerous as this country tries to

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maintain economic stability in the future.

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Malaysian Airlines faces a difficult road ahead as it tries to restore

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its reputation in the wake of its disasters but could the flood of

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compensation claims also affect the airline's Bottom Line? Joseph

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Wheeler is an expert in this issue and he gave us his estimate on how

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much the claims are likely to cost. A lawsuit of this size, typically

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the claims could run to hundreds of millions of dollars. And currently

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they are recovering from the loss of MH370. Is there any prospect of

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getting back the original compensation money given that it is

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possible they are not to blame? Only time will tell. History has shown us

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that in cases like this, an admission by a government or

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persuasion through political efforts can result in that sort of

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compensation. For full compensation to be payable to passengers, they

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would be subject to the Montreal convention which covers proven

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losses but does not cover all of the losses that these families are

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tragically facing now. Could they be legally negligent given that the

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decision was to fly through a war zone? Negligence is a curious issue

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when it comes to air crash cases. It is not applicable. In terms of

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liability of the air carrier, except in so far as the measure of

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damages. But with all of these compensation being paid, could the

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airline go bankrupt? There have been a lot of questions about the

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financial capacity of Malaysian Airlines but what people must

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remember with the international treaty is that the airline must be

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fully insured for losses of this kind. He is an expert in aviation

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compensation claims and joined us from Brisbane. Keep up`to`date with

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all the latest developments into the MH17 crash right here on BBC News.

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Log onto our website where you will find special coverage including news

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that revels in Ukraine have handed over the flight data recorders to

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Malaysian authorities. British regulators are looking over

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allegations of price`fixing. The Serious Fraud Office is looking into

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alleged fraudulent conduct and more than a dozen international agencies

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are investigating claims of price manipulation. It is alleged that

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online chat rooms were used to fix benchmark prices. The board of Time

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Warner has taken steps to fend off the takeover bid of Rupert Murdoch.

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Last week they rejected a $75 billion takeover offer from the

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media giant. Yahoo has acquired an application analytics company called

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Flurry to help boost advertising revenue from smart phones. Flurry

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helps out developers learn more about their users and deliver more

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personalized ads to them. Details of not been revealed but some are

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saying that they paid up to 300 million US dollars. A factory in

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Shanghai has been shut down for selling out of date meat two

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restaurants across China including McDonald's and KFC. It is the latest

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in a number of food scares. This was triggered after a report on

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television which said that the supplier who was selling this meat

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had passed its sell by date. Oath of the giants involved, McDonald's and

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KFC say that when they found out, they immediately stopped supplies

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and will carry out investigations into how this could've happened in

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the first place. It is the latest in a long line of food safety scares in

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China that have damaged consumer confidence. Generally speaking,

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foreign brands are seen as more reliable here that in terms of KFC,

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is is the second safety scare for them in 12 months, the last one

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within December and sales slumped after that. With this latest scare

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at more than 4000 KFC restaurants in China, a will once again be worried

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that this will affect their bottom line `` they. In other news, Netflix

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reported profits of $71 billion, more than a year ago compared to

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last year's levels. The streaming video firm now has 50 million users

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in over 40 countries. Huawei is reporting a 93% jump in sales for

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the first six months of the year. They have traditionally concentrated

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on making telecoms network equipment but its decision to diverse affiant

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into fast`growing sectors like smart phones has seen it become one of the

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world's biggest manufacturers. Shares in Candy Technologies did

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well overnight on the NASDAQ apparently because the government of

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China excluded electronic vehicle makers from its programme.

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It may be convenient to check on your laundry or car from your

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thermostat with these new electronic devices. We're going to hear more

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about it. Some of these guys in the hacker community are very talented

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but the good news is, there are a lot of smart people who have made

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the security profession their career now. It is becoming a path for smart

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developers, people who are excellent in the business field and we are

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seeing a huge growth in the security community to counteract that kind of

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hacking. These devices are already widely used in the United States.

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You can control your thermostat and washing machine. Is this technology

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already being used widely in Asia? It is Ground Zero. If you think

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about the massive penetration of smartphones, and how many things are

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now connected to your smart phone. Asia is a very interesting place

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because it is the place that many companies are starting to run early

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experiments in getting the product out to market. If you are thinking

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about getting an Uber in Korea, you had better be quick as authorities

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want to ban it. The City Council of Seoul is worried that it creates

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unfair competition for taxi drivers. Before we go, here is a

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quick look at the market. Asian markets are currently mixed. Thank

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you for investing your time with us.

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Welcome to BBC News. I'm Adnan Nawaz. The top stories this hour.

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Pro` Russian rebels in eastern Ukraine have handed over the black

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box recorders for flight MH17 to Malaysian officials and agreed to a

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ceasefire around the crash site. The train carrying the bodies of those

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killed in the disaster is transferring them to Dutch

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