Browse content similar to 09/05/2016. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
Now on BBC News, all the latest business news live from Singapore. | :00:00. | :00:12. | |
The Philippine economy has been one of Asia's star performers. Will its | :00:13. | :00:21. | |
new president keep up the good work? And China's levels of bad debt is | :00:22. | :00:24. | |
causing jitters among the investment community. Good morning, Asia, | :00:25. | :00:32. | |
hello, world. Welcome to Asia Business Report. Thank you for | :00:33. | :00:34. | |
investing your time with us. It is the start of a brand-new week. It is | :00:35. | :00:39. | |
Monday. Thank you for joining us. I am Rico Hizon. It is a big day in | :00:40. | :00:45. | |
the Philippines. Millions of people have started voting for a new | :00:46. | :00:49. | |
president. It has been one of the few economic success stories in Asia | :00:50. | :00:55. | |
with GDP growth of around 6%. There are concerns that the residential | :00:56. | :01:00. | |
candidate, Rodrigo Duterte, could undo some of that progress. -- | :01:01. | :01:09. | |
presidential. I spoke to a correspondent. He is a wild card. | :01:10. | :01:14. | |
For the foreign investment community, as you are saying, | :01:15. | :01:20. | |
everyday Filipinos, some of the biggest issues for them are | :01:21. | :01:23. | |
corruption and poverty, even though they have seen remarkable growth | :01:24. | :01:30. | |
over the last years. Poverty rates have stayed at the 5% level. That | :01:31. | :01:36. | |
hasn't changed over the last few decades. It is these sorts of issues | :01:37. | :01:41. | |
which have resulted in such a strong showing at the polls for Rodrigo | :01:42. | :01:48. | |
Duterte. He is known as the punisher. He is a controversial and | :01:49. | :01:53. | |
loud figure. The concern from the economic community is that he said | :01:54. | :02:02. | |
he would sever ties with the US and Australia. That won't give | :02:03. | :02:05. | |
confidence to investors. He doesn't have a clear economic policy in | :02:06. | :02:13. | |
place. His policies are about fighting crime and drugs and | :02:14. | :02:17. | |
corruption. On the other hand, voters are disenchanted with the | :02:18. | :02:23. | |
administration at the moment because traffic, you may experience it in | :02:24. | :02:27. | |
Manila, it takes hours to get from place to place. Much infrastructure | :02:28. | :02:32. | |
is unfinished. There is an ongoing sense of frustration. Despite the | :02:33. | :02:39. | |
numbers this government keeps spouting, more money for | :02:40. | :02:42. | |
infrastructure and education, etc, people don't feel it. They feel they | :02:43. | :02:46. | |
have been left out of the economic growth success story. There is | :02:47. | :02:51. | |
disenchantment. Just walk down the streets of Manila to see the way the | :02:52. | :02:54. | |
infrastructure is completely destroying any chance of people to | :02:55. | :03:01. | |
enjoy the fruits of economic growth. It is this disenchantment, the sense | :03:02. | :03:04. | |
they have been left out of the economic boom, and also the fact | :03:05. | :03:07. | |
they feel the system is stacked up against them... A statistic we | :03:08. | :03:14. | |
talked about earlier, 40% of legislators in the Philippines have | :03:15. | :03:16. | |
ties and connections to bury politically placed families. -- | :03:17. | :03:22. | |
very. There is a sense among people, I certainly felt it, that, | :03:23. | :03:28. | |
look we will vote for the wild card outsider because everything until | :03:29. | :03:34. | |
now has not worked in our favour. Karishma Vaswani on the Philippine | :03:35. | :03:42. | |
election. Could China's economy crash? That has been a worry for a | :03:43. | :03:46. | |
long time, especially after expected trade numbers over the weekend | :03:47. | :03:52. | |
showed and remains weak. Exports and imports fell in April, widening the | :03:53. | :03:56. | |
surplus to a bout $46 billion. However, it is not macro economics | :03:57. | :04:04. | |
but the financial system which is making them nervous. -- to about. It | :04:05. | :04:09. | |
is the biggest, accounting for two fifths of global GDP. It is the | :04:10. | :04:16. | |
third biggest behind the United States in terms of being a bond | :04:17. | :04:21. | |
market behind the US and Japan. I spoke to Simon in Shanghai. Bad debt | :04:22. | :04:30. | |
poses a major risk to the financial system. The official bad loan ratio | :04:31. | :04:35. | |
is 1.7%. They have a categorical special mention loans which should | :04:36. | :04:40. | |
be loans at risk but most investors think they are bad already. That is | :04:41. | :04:47. | |
5.5% already. When you look at the balance sheets carefully of the | :04:48. | :04:50. | |
different banks, especially the mid-sized and smaller ones, they | :04:51. | :04:56. | |
have ratios of 15 to 20% already. That picture is already concerning. | :04:57. | :05:05. | |
The big thing is Beijing trying to address it. At a turning a blind | :05:06. | :05:15. | |
eye? -- are they. One step forward and one back. They have talked about | :05:16. | :05:19. | |
vulnerabilities and have come up with small solutions for dealing | :05:20. | :05:24. | |
with it. There was a spot where risky loans were transferred from | :05:25. | :05:29. | |
government bonds. Now they are being swapped from equity companies. | :05:30. | :05:33. | |
Little things are being done to address vulnerabilities. But the | :05:34. | :05:36. | |
worrying thing that has markets on edge is that if you look at the | :05:37. | :05:44. | |
overall debt to GDP ratio, it was 150% a decade ago, now it is close | :05:45. | :05:50. | |
to 260%. That is the kind of rise that in other countries, | :05:51. | :05:53. | |
historically, has brought on serious problems. Be it a serious economic | :05:54. | :06:00. | |
slowdown or a financial crisis. 260% of GDP! Is the economy now headed | :06:01. | :06:08. | |
for a hard landing? The argument is that it has got to a point where it | :06:09. | :06:17. | |
is going to have to be painful. In other business news, Saudi Arabia | :06:18. | :06:20. | |
has replaced its influential and long serving oil minister as part of | :06:21. | :06:26. | |
a major economic revamp. The monarchy is looking to move the | :06:27. | :06:31. | |
country away from oil and merge multiple ministries over the wicket | :06:32. | :06:37. | |
it. The new Energy Minister is the chairman of and oil giant. -- over | :06:38. | :06:47. | |
the weekend. -- an. Prices have jumped because of the fires in | :06:48. | :06:51. | |
Canada. It has taken half of the country's oil capacity. Currently, | :06:52. | :07:01. | |
Brent is up more than 2%. Malcolm Turnbull, the Australian president, | :07:02. | :07:06. | |
is calling for an election in July. Australia is experiencing deflation | :07:07. | :07:10. | |
of oil prices for the first time in seven years as well as rising public | :07:11. | :07:16. | |
doubt. Polls show that his coalition government has been losing | :07:17. | :07:19. | |
popularity and is currently almost neck and neck with the opposition, | :07:20. | :07:26. | |
the Labour Party. Across Asia, diets are changing, and it isn't making us | :07:27. | :07:30. | |
healthier. Millions of people have diabetes. 100,000 people died from | :07:31. | :07:38. | |
it last year. One company has seen a business opportunity, delivering | :07:39. | :07:42. | |
healthy food to those in need. We have more. World health experts say | :07:43. | :07:50. | |
diabetes is now the third biggest killer in Indonesia after a stroke | :07:51. | :07:57. | |
or heart disease. TRANSLATION: Diabetes is caused by obesity. I | :07:58. | :08:01. | |
have type 2 diabetes which is caused by my bad lifestyle that lead to | :08:02. | :08:06. | |
obesity. Bad diet and exercise habits. Changing diets is crucial to | :08:07. | :08:14. | |
cracking the problem. Any catering service has started up to do that. | :08:15. | :08:23. | |
-- A new. It offers healthy food to people with clinical conditions. The | :08:24. | :08:27. | |
owner's father struggled to find healthy food so he figured others | :08:28. | :08:33. | |
would as well. TRANSLATION: We want to help people change their dietary | :08:34. | :08:36. | |
habits so they can enjoy a healthy life. If you do that it can benefit | :08:37. | :08:44. | |
them for life. MyMeal employs nutrition is to make sure that the | :08:45. | :08:50. | |
food being prepared meats needs. -- nutritionists. It is delivered by | :08:51. | :08:57. | |
motorbike. The World Health Organisation says around 10 million | :08:58. | :09:02. | |
Indonesians have diabetes. Doctors say many people don't even realise | :09:03. | :09:06. | |
that staple dishes like rice and oily foods push up blood sugar | :09:07. | :09:12. | |
levels. TRANSLATION: Just giving them the medicine is not enough, you | :09:13. | :09:16. | |
need to give them a lot of education about food and lifestyle. We also | :09:17. | :09:20. | |
need to teach them how to take in medicine so they will know the | :09:21. | :09:23. | |
effect and what will happen if they take too much or too little. You | :09:24. | :09:29. | |
cannot just give it to them. So far, it has only around 250 customers. | :09:30. | :09:37. | |
Each meal costs more than $5. This is a country where millions live in | :09:38. | :09:42. | |
poverty. The company says it is optimistic it can grow its business, | :09:43. | :09:46. | |
helping to prevent diabetes, and lessening the burden facing the | :09:47. | :09:49. | |
healthcare system here, now, and into the future. BBC News. Before we | :09:50. | :09:56. | |
go, I have 35 seconds to tell you about the markets. It begins with | :09:57. | :10:04. | |
Japan up by 1%. It is a touch higher after US stocks ended in positive | :10:05. | :10:11. | |
territory. The US central bank may keep interest rates low for another | :10:12. | :10:17. | |
year. The Nikkei is up to to the weaker yen against the US dollar. | :10:18. | :10:26. | |
The All Ords is flat at 53-56. Thank you very much for investing your | :10:27. | :10:33. | |
time with us. I am Rico Hizon. Sport Today is coming up | :10:34. | :10:35. |