Browse content similar to 19/07/2016. Check below for episodes and series from the same categories and more!
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ageing Trident system -- top story in the UK. The Labour Party was | :00:00. | :00:00. | |
deeply divided on the vote which won by 135. Now the latest business news | :00:00. | :00:00. | |
from Singapore. Drama at Netflix. Shares are down | :00:00. | :00:19. | |
sharply as it reveals fewer people are subscribing. | :00:20. | :00:26. | |
And China's banking industry, it is huge but is it solid? We'll look at | :00:27. | :00:30. | |
the challenges facing the world's biggest banks. | :00:31. | :00:40. | |
Good morning, Asia and hello, world! It's Tuesday and glad you could join | :00:41. | :00:45. | |
us for this for this edition of Asia Business Report, I Rico Hizon. We | :00:46. | :00:50. | |
start with a big day for the technology sector in America with | :00:51. | :00:53. | |
Netflix and Yahoo releasing their earnings. The big surprise was from | :00:54. | :00:58. | |
Netflix, which has seen fewer subscribers joining the video | :00:59. | :01:03. | |
streaming service than forecast. At Yahoo!, the prospect of the sale of | :01:04. | :01:08. | |
its core search business is still just a prospect. No concrete | :01:09. | :01:14. | |
announcement on that as of yet. I asked our North American technology | :01:15. | :01:16. | |
correspondent David Lee what went wrong at Netflix. | :01:17. | :01:19. | |
They're saying they didn't attract as many new users as hoped, they | :01:20. | :01:25. | |
wanted to add 2.5 million over the last quarter, they only managed | :01:26. | :01:28. | |
growth of 1.7 million and much of that is due to people leaving the | :01:29. | :01:34. | |
site. Reed Hastings, the CEO of Netflix, came out and he said he was | :01:35. | :01:38. | |
blaming media coverage of a price hike that was coming on Netflix for | :01:39. | :01:42. | |
users that had been on the service for quite a long time. Focusing on | :01:43. | :01:48. | |
Yahoo, everyone wanting to find out not only about their earnings | :01:49. | :01:53. | |
numbers but what will happen to their search business. The sale of | :01:54. | :01:56. | |
Yahoo has been in the offing for quite some time and the earnings | :01:57. | :02:00. | |
reports Yahoo put out today are most likely probably its last ever as the | :02:01. | :02:04. | |
company is today. Some investors would have been hoping for Marissa | :02:05. | :02:10. | |
Meyer, the CEO, to say that a sale had been agreed upon, and perhaps | :02:11. | :02:15. | |
who made the Internet side of Yahoo's Internet business. But that | :02:16. | :02:19. | |
didn't happen and she said there would be no announcement and even | :02:20. | :02:23. | |
worse there will be no announcement about when the announcement could | :02:24. | :02:26. | |
be, she said she would update investors at the right time. Some of | :02:27. | :02:30. | |
those investors would be frustrated, they had hoped to hear more from | :02:31. | :02:35. | |
Marissa Mayer about that but nonetheless, Yahoo's shares have | :02:36. | :02:39. | |
gone up on the back of the earnings in anticipation of that eventual | :02:40. | :02:44. | |
deal despite the fact Yahoo itself is performing continually quite | :02:45. | :02:45. | |
badly. Dave Lee in Silicon Valley. Staying | :02:46. | :02:52. | |
with the technology space, the Japanese market has reopened | :02:53. | :02:55. | |
following one of the biggest deals of the year, which was reached on a | :02:56. | :03:00. | |
public holiday on Monday. Japan's telecommunications giant Softbank | :03:01. | :03:10. | |
will be buying British tech firm ARM Holdings. But shares in Softbank are | :03:11. | :03:15. | |
down more than 10% in Tokyo trade this morning. Our business editor | :03:16. | :03:17. | |
Simon Jack reports. It might be the most important UK | :03:18. | :03:23. | |
company you've never heard of. Last year alone 15 billion microchips | :03:24. | :03:29. | |
designed by ARM found their way into devices around the world. Based in | :03:30. | :03:33. | |
Cambridge, it's the crown jewel of the UK tech industry and soon it | :03:34. | :03:37. | |
will belong to this man's private company. I'm very excited to make | :03:38. | :03:43. | |
this announcement. This is the company that I have admired for the | :03:44. | :03:50. | |
last ten years. I want to ask you why suddenly this deal has been done | :03:51. | :03:54. | |
and whether Brexit and the devaluation of sterling had anything | :03:55. | :03:59. | |
to do with the timing. I would have made this decision at this time | :04:00. | :04:03. | |
regardless of wrecks it happening or not happening. -- Brexit. It's the | :04:04. | :04:09. | |
biggest ever investment by an Asian company in the UK and that is music | :04:10. | :04:15. | |
to the new Chancellor's the years. ARM is a great success story and the | :04:16. | :04:20. | |
fact a Japanese country three years after the referendums and decision | :04:21. | :04:23. | |
is prepared to make this commitment to the UK and commit to grow that | :04:24. | :04:27. | |
business in the UK is a resounding endorsement of the resilience of the | :04:28. | :04:31. | |
British economy -- referendum decision. And the attractiveness of | :04:32. | :04:39. | |
Britain for a international companies. The company's founder had | :04:40. | :04:48. | |
little cause for celebration. ARM is the proudest achievement of my life | :04:49. | :04:52. | |
and this is a sad day for me and a sad day for high-technology in | :04:53. | :05:00. | |
Britain because ARM has been such a phenomenal global success. | :05:01. | :05:04. | |
Cambridge's old-fashioned charm belies its high-tech prowess, but it | :05:05. | :05:09. | |
only has one arm. And while still strong, that has lost control of its | :05:10. | :05:11. | |
own destiny. Simon Jack, BBC News. For more on this deal we are joined | :05:12. | :05:21. | |
in our studios by our Asia business correspondent. Looking at the Nikkei | :05:22. | :05:25. | |
225 in positive territory but Softbank is down 10%, what's | :05:26. | :05:29. | |
happening? Investors in Japan have had their first chance to react to | :05:30. | :05:35. | |
this deal and this is a deal that has been lauded by counterparts in | :05:36. | :05:39. | |
the UK, politicians in the UK saying this is a real vote of confidence in | :05:40. | :05:45. | |
the British economy after the Brexit decision. This reaction is very | :05:46. | :05:52. | |
specific to what is going on in Softbank in Japan, this company has | :05:53. | :05:57. | |
debt to the tune of $100 billion! Investors were hoping the asset | :05:58. | :06:02. | |
sales we have seen in recent times at Softbank, selling off its private | :06:03. | :06:06. | |
stake in Alibaba, would be used to pay down some of that debt. Now it | :06:07. | :06:11. | |
looks like the CEO is going to use some of this money to pay for this | :06:12. | :06:19. | |
major acquisition in the UK, the biggest ever come of a British firm | :06:20. | :06:26. | |
by an Asian company. You don't want your boss to play down the debts | :06:27. | :06:31. | |
only, you won the dividends. What he has been saying and yesterday at the | :06:32. | :06:34. | |
conference call, he believes in the future of what ARM Holdings can | :06:35. | :06:40. | |
bring to Softbank, he's a big believer in the Internet of things | :06:41. | :06:45. | |
and the chips that ARM Holdings designs, the technology behind it, | :06:46. | :06:48. | |
is what he is paying the premium for. It's no small amount, 43%, a | :06:49. | :06:56. | |
premium of that much, on every ARM Holdings share. That's why you're | :06:57. | :07:02. | |
seeing the nervousness in regards to Softbank shares in Japan today. | :07:03. | :07:06. | |
Karishma Vaswani, thank you for joining us. I'm sure everyone will | :07:07. | :07:11. | |
want to know how this impacts the dynamics of the Asian technology | :07:12. | :07:15. | |
space going forward. To China and the latest world figures have | :07:16. | :07:20. | |
indicated that its massive economy is likely stabilising but there are | :07:21. | :07:24. | |
concerns about the health of parts of the country's banking sector, | :07:25. | :07:29. | |
which is the largest in the world. Many of China's giant banks are | :07:30. | :07:36. | |
government owned, putting a huge burden on the state. Robin Brant | :07:37. | :07:37. | |
reports from Shanghai. Big buildings and big banks, very | :07:38. | :07:43. | |
big banks in fact. They dominate here in the heart of China's | :07:44. | :07:48. | |
commercial capital. Let's start this little circuit in the city with some | :07:49. | :07:51. | |
staggering statistics. The biggest bank in the world is Chinese. ICBC | :07:52. | :07:58. | |
has just over 3.5 trillion US dollars in assets. It has around | :07:59. | :08:04. | |
half a billion customers. And four of the five biggest banks in the | :08:05. | :08:08. | |
world are Chinese. This is an industry with huge reserves and | :08:09. | :08:14. | |
global ambitions. But China has a debt problem, a big debt problem. In | :08:15. | :08:19. | |
the years following the global financial crisis there's been | :08:20. | :08:22. | |
interest rate cuts and a boom in credit, all aimed at boosting the | :08:23. | :08:26. | |
economy and all on the orders of the government which owns or controls | :08:27. | :08:29. | |
most of the banks. The International Monetary Fund estimates there is 1.3 | :08:30. | :08:38. | |
trillion in US loans at risk of default. Most of that has been | :08:39. | :08:43. | |
channelled into state-owned enterprises, mostly unprofitable, or | :08:44. | :08:46. | |
into local government and bad loans are on the up, they are at an 11 | :08:47. | :08:51. | |
year high. What next? Maybe some of the banks will topple over, the | :08:52. | :08:56. | |
government will bail them out at great cost and maybe the country's | :08:57. | :09:01. | |
currency will devalue further. Or do the banks restructure their debt and | :09:02. | :09:05. | |
survived while a select few go to the wall? Through all of this the | :09:06. | :09:09. | |
government will be remaining focused on their number one priority, | :09:10. | :09:15. | |
remaining -- retaining harmony and stability even that if that means a | :09:16. | :09:20. | |
few don't survive. Goldman require a controlling stake | :09:21. | :09:36. | |
a cosmetics maker and an investment arm in LVMH will take a stake in | :09:37. | :09:44. | |
Clio later this week. It was up 20% from the previous year. Why are | :09:45. | :09:47. | |
Korean companies more attractive than western or Japanese rivals? I | :09:48. | :09:52. | |
put that question to an industry analyst. | :09:53. | :09:55. | |
With Korean companies, a lot are very strategic in their price | :09:56. | :10:03. | |
positioning. They are in between mass and premium. A lot of Western | :10:04. | :10:09. | |
brands and Japanese brands are priced pretty high. Korean cosmetic | :10:10. | :10:17. | |
brands went into a segment which is a segment which is not exactly | :10:18. | :10:19. | |
saturated yet. Joanna Chan. A quick look at the | :10:20. | :10:25. | |
markets and currently in positive territory after the holiday break, | :10:26. | :10:31. | |
the Nikkei 225 up 0.2%. Flat elsewhere. Thanks for investing your | :10:32. | :10:33. | |
time with us. The bye for now. | :10:34. | :10:39. |