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Koh Tao. Now on BBC News all the latest business news live from | :00:00. | :00:00. | |
Singapore. Raising the stakes ` e`commerce | :00:00. | :00:13. | |
giant Alibaba hikes its price, days before its listing. And why India | :00:14. | :00:20. | |
looks set to become the world's fastest`growing exporter. Hello and | :00:21. | :00:30. | |
welcome to Asia Business Report on BBC World News. I'm Rico Hizon. | :00:31. | :00:37. | |
China's e`commerce giant Alibaba has boosted the price of its US share | :00:38. | :00:40. | |
flotation to between $66 and $68 per share, in a sign there is strong | :00:41. | :00:43. | |
investor demand for its initial public offering. This news comes as | :00:44. | :00:51. | |
the Alibaba roadshow arrives in Singapore. Our reporter Ashley | :00:52. | :01:01. | |
Ngheim has been looking at this huge share sale, and why it matters. She | :01:02. | :01:05. | |
joins us now live from outside the venue for today's investors' lunch. | :01:06. | :01:17. | |
Good morning, Rico. From outside the Ritz Carlton hotel, where as you say | :01:18. | :01:21. | |
we believe investors would be treated to a special lunch and | :01:22. | :01:26. | |
perhaps even an appearance I Alibaba's chief executive. Not a lot | :01:27. | :01:30. | |
of detail has been revealed about this share sale information session, | :01:31. | :01:36. | |
but what we do know is that if this price between 66 dollars and $68 | :01:37. | :01:46. | |
goes ahead, Alibaba stands to raise up to $25 billion in its share | :01:47. | :01:49. | |
listing. It was already set to become the biggest in history, and | :01:50. | :01:52. | |
despite the huge investor interest, many people still don't know about | :01:53. | :01:55. | |
it. With just days to go until Alibaba's stock listing in New York, | :01:56. | :01:58. | |
it is the talk of investors from Hong Kong to Wall Street. While it | :01:59. | :02:02. | |
may be based in China, it is the world's biggest e`commerce company. | :02:03. | :02:05. | |
In fact, more than 80% of online sales in China happen on an Alibaba | :02:06. | :02:11. | |
site. But how big it is it outside its home market? We hit the streets | :02:12. | :02:14. | |
of two of the world's biggest shopping meccas to ask whether they | :02:15. | :02:19. | |
had heard of Alibaba. First to London. Alibaba? A long time ago. | :02:20. | :02:29. | |
Aladdin. And the 40 thieves. Have you heard about Alibaba? The kebab | :02:30. | :02:41. | |
shop? No. And then to New York. I am from China and I have never heard of | :02:42. | :02:44. | |
it. It is actually an Arabian fairy tale, it is not Chinese. I have | :02:45. | :02:49. | |
heard of it, but have never been to the site. Of course, the closer you | :02:50. | :02:52. | |
get to China, people not only know Alibaba and shop on its site, but it | :02:53. | :02:56. | |
has also been an inspiration for entrepreneurs, like this 29`year`old | :02:57. | :02:59. | |
who has teamed up with the Chinese tech giant to sell more than one | :03:00. | :03:01. | |
million products. We solve the problems in terms of language, in | :03:02. | :03:04. | |
terms of payments, in terms of inspection, in terms of shipping. So | :03:05. | :03:24. | |
they have four parts we do better. Alibaba and its offshoots may not | :03:25. | :03:28. | |
yet be household names, but once its shares hit Wall Street, that may | :03:29. | :03:30. | |
change ` something the entrepreneur is banking on, as he looks to expand | :03:31. | :03:41. | |
his own business. The countdown is on, and all details will be revealed | :03:42. | :03:44. | |
on Friday. From Singapore, the roadshow heads to London, and then | :03:45. | :03:57. | |
goes to Chicago. A lot of excitement with Alibaba. Thank you for joining | :03:58. | :04:05. | |
us, Ashleigh Nghiem. In other news making headlines, Microsoft has | :04:06. | :04:08. | |
purchased the Swedish company behind the popular videogame Minecraft, for | :04:09. | :04:10. | |
$US2.5 billion. More than 50 million copies of the game have been sold, | :04:11. | :04:13. | |
which allows players to build objects with Lego`style blocks, as | :04:14. | :04:16. | |
well as battle other players and explore a map. The three founders | :04:17. | :04:24. | |
however are leaving the company, but have told investors everything will | :04:25. | :04:31. | |
be OK. The famous French fashion house Jean`Paul Gaultier says it is | :04:32. | :04:34. | |
to stop making ready`to`wear clothes for men and women. The fashion house | :04:35. | :04:37. | |
said it will be concentrating on exclusive custom`made clothes from | :04:38. | :04:40. | |
now on, as well as its perfume lines. Mr Gaultier launched his | :04:41. | :04:46. | |
business in the early 1980s, and is one of the world's best known | :04:47. | :04:53. | |
fashion designers. Some positive news for India this morning, with | :04:54. | :04:56. | |
the country tipped to become the world's fastest`growing exporter. | :04:57. | :04:58. | |
HSBC says global trade is heading for long`term growth, after a period | :04:59. | :05:01. | |
of stagnation triggered by the global financial crisis. Our | :05:02. | :05:03. | |
correspondent has more. When Prime Minister Narendra Modi gave his | :05:04. | :05:06. | |
Independence Day speech recently, he coined a new catchphrase ` make in | :05:07. | :05:08. | |
India. Sell anywhere, but manufacture here, he said. But in | :05:09. | :05:19. | |
reality he knows the true potential is to sell abroad. Despite its size, | :05:20. | :05:22. | |
India is only the world's 14th`largest exporter, and needs to | :05:23. | :05:25. | |
grab a much larger slice of what it makes, especially as domestic growth | :05:26. | :05:34. | |
has slowed down. At the moment, Indian exports are worth more than | :05:35. | :05:38. | |
$440 billion, though about a third of that is from services like IT, | :05:39. | :05:42. | |
rather than manufacturing. Selling more products overseas partly | :05:43. | :05:44. | |
depends on economic conditions, investing, and economies improving, | :05:45. | :05:46. | |
and those countries having the appetite for Indian`made goods. But | :05:47. | :05:54. | |
that is not the only battle. Other countries in the region are | :05:55. | :05:57. | |
developing their export sectors. Bangladesh makes garments, | :05:58. | :05:58. | |
Philippines electronics, Thailand and Vietnam machines and computer | :05:59. | :06:01. | |
parts. The competition is getting tougher. I spoke earlier to HSBC's | :06:02. | :06:12. | |
regional head of global trade Simon Constantinides about the bank's | :06:13. | :06:14. | |
report, and started by asking about India's projected growth, and if | :06:15. | :06:17. | |
Prime Minister Modi would be one of the main drivers behind it. | :06:18. | :06:24. | |
Certainly the reforms that we expect Narendra Modi to put into place will | :06:25. | :06:27. | |
help that, but India has got a growing middle`class economy, it has | :06:28. | :06:30. | |
got a competitive Labour rate still, and it has a good hi`tech sector in | :06:31. | :06:34. | |
the pharmaceutical area, and we are going to see pharmaceuticals grow. | :06:35. | :06:43. | |
At the same time, India has been very much a domestic`driven economy. | :06:44. | :06:50. | |
And we see that this is certainly going to change. But these reform | :06:51. | :06:59. | |
policies are indeed promises, and you still have a high`interest`rate | :07:00. | :07:02. | |
environment in India. Do you think Narendra Modi can deliver? The | :07:03. | :07:05. | |
general sense that I get from speaking with clients in India is | :07:06. | :07:08. | |
there is really a very, very positive momentum in place. | :07:09. | :07:10. | |
Companies are getting very much set, from capital structures and their | :07:11. | :07:13. | |
balance sheets, to take advantage of the growth they expect coming out | :07:14. | :07:20. | |
next year. Well, who controls the Internet? The answer right now is, | :07:21. | :07:25. | |
no single organisation. But there is increasing concern about what could | :07:26. | :07:28. | |
happen if governments demand more say in how the Internet works. It is | :07:29. | :07:31. | |
an issue being discussed by ICANN, the group responsible for assigning | :07:32. | :07:34. | |
the billions of Internet domain names and IP addresses in existence | :07:35. | :07:42. | |
today. Ali Moore caught up with their chief executive Fadi Chehade, | :07:43. | :07:45. | |
and asked them about the risk of governments wanting to write the | :07:46. | :07:49. | |
rules. It is a threat because if we do not give answers to governments | :07:50. | :07:52. | |
on how we can together ensure that we have an Internet that allows | :07:53. | :07:55. | |
limitless and permissionless innovation, but also is secure, if | :07:56. | :07:58. | |
we do not give government mechanisms or parts to participate in the | :07:59. | :08:01. | |
policy setting to do that, I think it is a threat, because governments | :08:02. | :08:04. | |
have a duty to protect their people, and their citizens. But in reality, | :08:05. | :08:16. | |
don't governments really control the Internet today? I mean, for example, | :08:17. | :08:22. | |
they control access that their populations have. They may control | :08:23. | :08:24. | |
the access, but they do not control the Internet, because the Internet | :08:25. | :08:30. | |
is far more than access. The Internet is content. The Internet is | :08:31. | :08:34. | |
policies on how things get managed. And it is that space that so far | :08:35. | :08:37. | |
today has been managed by what we call the multi`stakeholder community | :08:38. | :08:40. | |
` IT, governments, business, civil society, academia, technical people, | :08:41. | :08:42. | |
come together and make these policies. So how are you satisfy | :08:43. | :08:52. | |
governments? How do you ensure that they stay on the sidelines? We need | :08:53. | :09:00. | |
to show governments that the multi`stakeholder model works, and | :09:01. | :09:03. | |
that they can have an active, participatory role in it. Regarding | :09:04. | :09:05. | |
privacy of citizens, protection of children, cyber security, | :09:06. | :09:08. | |
governments have a role, and we need to have them at the table. If you | :09:09. | :09:19. | |
don't appease them, however, what are the risks of governments getting | :09:20. | :09:24. | |
more involved? Fragmentation. You will find that if the Internet is | :09:25. | :09:28. | |
not working for those who are in power, and they are unable to | :09:29. | :09:31. | |
contribute to how it is run, we will see a fragmentation of the Internet. | :09:32. | :09:40. | |
And fragmentation is not just at the physical level, meaning possibly | :09:41. | :09:43. | |
having multiple Internets, but it is also at the policy level. So if you | :09:44. | :09:50. | |
are operating on the Internet, you will find that being able to render | :09:51. | :09:53. | |
your services in one country becomes completely different from another | :09:54. | :09:55. | |
country, and that fragmentation takes away, frankly, what made the | :09:56. | :09:58. | |
Internet the massive engine of growth it is. Fadi Chehade, speaking | :09:59. | :10:18. | |
to Ali Moore. Markets feeling the effects of China's weak economic | :10:19. | :10:24. | |
data, Hong Kong as you can see shut today due to the Thai firm. Thank | :10:25. | :10:28. | |
you for investing your time with us. `` typhoon. The top stories this | :10:29. | :10:38. | |
hour: US planes have targeted Islamic State militants close to the | :10:39. | :10:41. | |
Iraqi capital, Baghdad, in the first attacks under President Obama's new | :10:42. | :10:50. | |
plan to combat the group. The attacks follow agreement among 30 | :10:51. | :10:53. | |
countries agree to support the Iraqi government's campaign against | :10:54. | :10:59. | |
Islamic State. The high street chain Phones 4U has gone | :11:00. | :11:00. |