28/07/2016 Asia Business Report


28/07/2016

Similar Content

Browse content similar to 28/07/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Monday as 34 U Ricardo Hunter from south London. He died from a single

:00:00.:00:00.

bullet wound to the chest and a man has been arrested on suspicion of

:00:00.:00:00.

murder. Japan's deke cash splash, but will

:00:00.:00:21.

it kickstart the country's economy? And, be like for Facebook, as

:00:22.:00:28.

profits nearly tripled and share prices soared.

:00:29.:00:36.

Good morning and welcome to Asia Business Report. We start with

:00:37.:00:43.

markets, and Japan's Nikkei started trading half-an-hour ago and opened

:00:44.:00:47.

lower. That is after getting a boost on Wednesday due to the announcement

:00:48.:00:52.

by the Japanese Prime Minister, Shinzo Abe, who has said his

:00:53.:00:55.

government will announce a huge spending spree worth more than $265

:00:56.:01:01.

billion. The size of it is much bigger than expected, and the

:01:02.:01:06.

Japanese yen has initially weakened after the announcement, but now it

:01:07.:01:09.

seems to be strengthening against the US dollar, and that is partly

:01:10.:01:14.

why the Nikkei is trading lower. Now, all eyes are on the country's

:01:15.:01:18.

central bank, which is holding a policy meeting today and tomorrow,

:01:19.:01:25.

if they announce further stimulus at the meeting tomorrow. But will this

:01:26.:01:36.

massive stimulus help the economy? We still don't know when he will

:01:37.:01:40.

spend that amount of money and how he will finance it, and then I don't

:01:41.:01:45.

think the Japanese government is actually able to increase spending,

:01:46.:01:51.

because the Prime Minister also has another goal, to balance the budget

:01:52.:01:56.

by 2020. In order to do that in the next few years he will have to cut

:01:57.:02:04.

spending by as much as Y20 trillion. I think this is a vast li inflated

:02:05.:02:10.

figure. What will be the actual figure we are talking about, and

:02:11.:02:13.

where will that money be coming from if the money is not to be spent? In

:02:14.:02:23.

the next six months the Japanese government will compile a

:02:24.:02:25.

supplementary budget for this fiscal year. I would expect that at most

:02:26.:02:31.

say 20 billion economic stimulus to be in the budget. Shinzo Abe has

:02:32.:02:37.

tried a similar approach several years ago, but the impact didn't

:02:38.:02:42.

really last for a long time. In your phew, what is actually needed to

:02:43.:02:49.

jumpstart the economy? Write, well, if you do want to jumpstart the

:02:50.:02:57.

economy, for say a year, I think spending a big amount of money,

:02:58.:03:01.

public work, building roads and bridges, it helps to inflate the

:03:02.:03:08.

economy for one year. But that is what happened in 2013, and I do

:03:09.:03:12.

believe the Japanese authorities, the government and the bank of

:03:13.:03:16.

Japan, have to think in more long-term sustainable growth. In

:03:17.:03:23.

other business news making headlines, Samsung has posted a

:03:24.:03:24.

better-than-expected second-quarter profit. They are up 18% compared to

:03:25.:03:33.

a year ago. It is the firm's best result in more than two years and

:03:34.:03:37.

was fuelled by a pickup in smartphone sales, with profits in

:03:38.:03:44.

its mobile division jumping 57%. India has passed a controversial new

:03:45.:03:47.

child labour law which allows children to work in family

:03:48.:03:50.

businesses. Rights groups have criticised the move, saying it could

:03:51.:03:54.

push more children into work and out of school. Official figures show

:03:55.:03:59.

India has more than 12 million child workers, but some estimates say the

:04:00.:04:03.

figure could be as high as 60 million. The US Federal Reserve has

:04:04.:04:08.

left interest rates unchanged but held open the possibility of a

:04:09.:04:12.

second rise later this year. The last hope was in December. The Fed

:04:13.:04:18.

said that near-term risks in the US economy had diminished and there had

:04:19.:04:21.

been a pickup in the jobs market recovery. Some have said the

:04:22.:04:31.

brighter outlook suggests the impact of Britain's decision to leave the

:04:32.:04:35.

EU. In the past 24 hours we found out that the British economy

:04:36.:04:44.

performed better than expected. How much can we deduce from these

:04:45.:04:45.

figures? Better figures than expected today,

:04:46.:04:51.

and an announcement by London City Airport

:04:52.:04:54.

that it was expanding. For the Chancellor, Philip Hammond,

:04:55.:04:56.

not exactly blue skies ahead, The UK economy is fundamentally

:04:57.:04:59.

strong as we go into the challenge That gives us the tools

:05:00.:05:03.

and the scope to respond And do you really think,

:05:04.:05:09.

as some suggested, that we could be Well, I think it's far too early

:05:10.:05:19.

to say how the economy Inevitably, people's reaction

:05:20.:05:24.

to a surprise is caution. No such caution today

:05:25.:05:35.

from pharmaceutical giant GlaxoSmithKline, which announced

:05:36.:05:36.

a ?275 million investment But the maker of Night Nurse

:05:37.:05:38.

and Panadol did lace its good news This was a company, after all,

:05:39.:05:42.

that was a firm supporter My guess is that we're probably

:05:43.:05:46.

going to see some choppy signals I don't think we'll see a dramatic

:05:47.:05:50.

shift to the left or the right. But we will see some choppiness,

:05:51.:05:56.

we will see some things which are indicative

:05:57.:05:58.

of a bit of a slowdown, and it's likely we will see some

:05:59.:06:00.

signals of early inflation. With business investment

:06:01.:06:03.

still continuing, like here at London City Airport,

:06:04.:06:05.

some people might wonder, what was all the fuss

:06:06.:06:07.

about with the economy I think there are two big

:06:08.:06:09.

things worth considering. Firstly, we are still largely

:06:10.:06:15.

looking in the rear-view mirror. Most of the economic information

:06:16.:06:18.

published today is actually from April, when business

:06:19.:06:20.

confidence was far higher. And many senior economists I've

:06:21.:06:22.

spoken to who are very close to the Government warn

:06:23.:06:25.

against a false sense of security. Britain is still facing

:06:26.:06:27.

uncertain times. Uncertainty has been an issue

:06:28.:06:28.

for this leather company in Oxford, to the Government warn

:06:29.:06:40.

against a false sense of security. Britain is still facing

:06:41.:06:42.

uncertain times. Uncertainty has been an issue

:06:43.:06:44.

for this leather company in Oxford, which has found the post-Brexit

:06:45.:06:47.

world a more difficult proposition. Next week the Governor of the Bank

:06:48.:06:52.

of England will announce his latest The bank may even agree to cut

:06:53.:06:57.

interest rates to boost growth, a move that will only come

:06:58.:07:01.

if the economic news has indeed The world's biggest social network

:07:02.:07:08.

seems to get bigger and bigger. Facebook shares have jumped on news

:07:09.:07:10.

that the number of people using the site is growing, and it is

:07:11.:07:14.

attracting more advertising. In the three months to the end of June,

:07:15.:07:17.

Facebook made profits of more than $2 billion. That was an increase of

:07:18.:07:24.

186% on the same period last year. Since then it has also signed up 220

:07:25.:07:30.

million new monthly users, taking the total number of users to more

:07:31.:07:36.

than 1.7 billion people, and that has driven the share price even

:07:37.:07:43.

higher. That has given it a stock market value of $350 billion.

:07:44.:07:48.

Facebook makes its money from ads, lots of them, it turns out. Here is

:07:49.:07:55.

the appeal. Close to one seventh of the human race looks at Facebook on

:07:56.:07:59.

their final tablet everyday. But it is not enough just to have eyeballs.

:08:00.:08:03.

Facebook is not just good at getting more of us to use its services, it

:08:04.:08:08.

has also shown an making money off our social media habits, whether

:08:09.:08:19.

that is using messenger, or other applications. It is also pushing

:08:20.:08:23.

into mobile video, where it faces competition from the likes of

:08:24.:08:27.

Snapchat and YouTube. We have seen big brands having fun with Facebook

:08:28.:08:34.

live broadcasts, with I hop live streaming pancakes on a beach. I'm

:08:35.:08:37.

not sure why. But it speaks to Facebook success, at attracting new

:08:38.:08:42.

advertisers and encouraging existing ones to spend more. Along with

:08:43.:08:45.

Google, Facebook has benefited hugely from advertisers should the

:08:46.:08:51.

money from TV to the internet. As one analyst put it, the social

:08:52.:08:56.

network is running away with the mobile advertising market. At this

:08:57.:09:00.

point it is hard to see how rivals can catch up. If you have ever

:09:01.:09:07.

doubted the power of social media, there is one charity campaign that

:09:08.:09:12.

has arguably made a difference. You may remember the ice bucket

:09:13.:09:16.

challenge back in 2014, which proved to be a mobile market's dream,

:09:17.:09:20.

raising millions, and even bankrolling the scientific

:09:21.:09:21.

breakthrough. I do not think it is presidential

:09:22.:09:29.

for me to be splashed with icewater, so I'm simply going to write you a

:09:30.:09:38.

cheque. It was a simple concept, pour a bucket of iced water

:09:39.:09:42.

Radiohead, nominate others to do the same, raise money for motor neurone

:09:43.:09:47.

disease. It was the brainchild of Peter freights and his friend Pat

:09:48.:09:50.

Quinn, both diagnosed with the condition. Critics called it

:09:51.:10:03.

selective ism, particularly when celebrities jumped on the bandwagon.

:10:04.:10:07.

But it raised $150 million, and now we know where the money has gone and

:10:08.:10:11.

what it has done. Six research projects were funded by the stunt,

:10:12.:10:15.

and scientists say that research is help them identify in Eugene that

:10:16.:10:21.

contributes to the disease. Called Emenike one, the genes is only links

:10:22.:10:30.

to a small number of inherited cases -- NEK1. But scientists say it could

:10:31.:10:35.

lead to new treatments. That is it for this edition of Asia

:10:36.:10:41.

Business Report. Sport Today is coming up

:10:42.:10:42.

Download Subtitles

SRT

ASS