Browse content similar to 02/08/2016. Check below for episodes and series from the same categories and more!
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Record low interest rates, that's what investors in Australia are | :00:13. | :00:17. | |
hoping for. But will they get them? And not long until fans of Samsung's | :00:18. | :00:26. | |
Galaxy get to see the latest model, but can the company continued its | :00:27. | :00:29. | |
strong growth and the more competition from China? | :00:30. | :00:36. | |
Good morning, Asia. Hello, world. It's Tuesday and glad you could join | :00:37. | :00:44. | |
us for this edition of Asia Business Report, I'm Rico Hizon. Pressure is | :00:45. | :00:48. | |
on the central bank of Australia to give a jolted economy a boost when | :00:49. | :00:53. | |
it reveals its interest rate decision in a few hours. Week wages | :00:54. | :00:57. | |
and a strong currency are causing inflation to fall earlier. I asked | :00:58. | :01:02. | |
Phil Mercer earlier if anyone is expecting a rate cut. | :01:03. | :01:05. | |
That's the view of many economists in Australia. They believe the | :01:06. | :01:11. | |
Reserve Bank of Australia will pull the trigger on another rate cut. | :01:12. | :01:16. | |
That would take the cost of borrowing in Australia from its | :01:17. | :01:22. | |
current level of 1.75% to a new record low. If the bank decides to | :01:23. | :01:27. | |
reduce interest rates in this country it will be an attempt to | :01:28. | :01:32. | |
increase the flow of money in the economy, to remove any blockages | :01:33. | :01:36. | |
that may be hindering economic growth and providing a boost for | :01:37. | :01:39. | |
employment. There are some economists in this | :01:40. | :01:44. | |
country, though, Rico, who believe the Reserve Bank won't cut rates | :01:45. | :01:49. | |
today, instead saving their powder should the Australian economy in any | :01:50. | :01:53. | |
real trouble in the next few months -- hit. | :01:54. | :01:54. | |
Phil Mercer in Sydney. In other business news making headlines, | :01:55. | :02:01. | |
Cathay Pacific and Dragonair, its affiliate, cancelled all of their | :02:02. | :02:05. | |
flights in and out of Hong Kong last night for 16 hours as Typhoon Nida | :02:06. | :02:09. | |
swirls towards the region. The cancellation will last until 2pm | :02:10. | :02:13. | |
today and it will involve more than 100 flights. | :02:14. | :02:15. | |
South Korea will decide whether to revoke the certification of | :02:16. | :02:21. | |
Volkswagen vehicles because of allegations the firm fabricated | :02:22. | :02:24. | |
emissions test documents. It could result in the suspension of their | :02:25. | :02:29. | |
sales and a fine on the German automaker. The decision is expected | :02:30. | :02:31. | |
in a few hours time. Samsung will unveil its Galaxy seven | :02:32. | :02:40. | |
today and investors will hope stocks continue to soar above expectations. | :02:41. | :02:45. | |
The South Korean conglomerate posted its best profit in over two years | :02:46. | :02:50. | |
last quarter, while its main rival Apple saw a sharp fall in profits | :02:51. | :02:55. | |
due to tumbling iPhone sales during the same period. I asked Jake | :02:56. | :02:59. | |
Saunders what the latest model is expected to offer. | :03:00. | :03:01. | |
That's one of the things they are trying to emphasise with this | :03:02. | :03:05. | |
release, the curved screen and the curved edge. With the S7 they had an | :03:06. | :03:11. | |
edge to the screen but the phone was flat, so there will be a economics | :03:12. | :03:16. | |
there as well. It will be 5.7 inches as well. Is it a marketing gimmick | :03:17. | :03:20. | |
for Samsung because they are skipping the model number six, which | :03:21. | :03:24. | |
it had with the smart phone, it is a five and now it is a seven? It seems | :03:25. | :03:29. | |
like they can't count but also Microsoft did something similar with | :03:30. | :03:33. | |
Windows, they went from eight all the way to ten. If Microsoft can do | :03:34. | :03:39. | |
it then why not Samsung? It's about bringing the phones into | :03:40. | :03:44. | |
synchronisation. You had the S7 and the S7 edge, which came out in | :03:45. | :03:47. | |
March, so they want the linearity with the modelling. Could this | :03:48. | :03:54. | |
sustain their profitability into another quarter? They have been | :03:55. | :03:58. | |
hammered over the past two years by the Chinese manufacturers. Certainly | :03:59. | :04:06. | |
in 2015, second quarter of 2015 was very tough for them and they | :04:07. | :04:10. | |
experienced heavy conditions due to the new iPhone that came out last | :04:11. | :04:14. | |
year. Yes we have seen while way, out with its P9 putting pressure on. | :04:15. | :04:24. | |
But they have to innovate. They have to make the whole service tighter | :04:25. | :04:28. | |
and they have to benefit the profitability, which you mention, in | :04:29. | :04:32. | |
to a fairly positive second half to to a fairly positive second half to | :04:33. | :04:34. | |
the year. A marriage made in Silicon Valley, | :04:35. | :04:42. | |
Tesla merging with the Zola installer Solar City. The move is | :04:43. | :04:45. | |
considered a game changer as the joint company prepares to launch its | :04:46. | :04:49. | |
massive plan for the future later this week. Earlier I asked Dave lead | :04:50. | :04:52. | |
if everyone thinks it's a good idea. Elon Musk actually has a big stake | :04:53. | :05:01. | |
in both Tesla and Solar City. Wild Hasler is known as an electric car | :05:02. | :05:06. | |
maker, one side of their business is creating energy storage units. -- | :05:07. | :05:11. | |
while Tesla. You can buy them for your home or your business. Solar | :05:12. | :05:16. | |
City make solar panels. Joining the two countries they hope to have | :05:17. | :05:20. | |
literally a top to bottom solution, people having solar panels on their | :05:21. | :05:23. | |
roof and a storage unit in the building. By bringing the companies | :05:24. | :05:28. | |
together Elon Musk thinks they can streamline that, saving $150 million | :05:29. | :05:35. | |
a year by doing that. That's the thinking behind this Foreteller. | :05:36. | :05:39. | |
Dave, this is a merger of two money-losing enters these, depending | :05:40. | :05:44. | |
on borrowing from the market -- entities. This is a risk reward kind | :05:45. | :05:51. | |
of deal? It really is. Many investors have shared their | :05:52. | :05:54. | |
concerns. This is a company... They are calling it a KERS lurve backed | :05:55. | :06:02. | |
bailout of Solar City -- Tesla backed. The stock was heading | :06:03. | :06:07. | |
downwards. Tesla taking them over. Many think it is Elon Musk's way of | :06:08. | :06:12. | |
saving a company he had a large interest in, owning 20% of their | :06:13. | :06:16. | |
stock. A lot of criticism of Elon Musk to do that. | :06:17. | :06:20. | |
Uber has made a deal to merge its loss-making operation in China with | :06:21. | :06:28. | |
local rival Didi Chuxing. The ride sharing app has been battling to win | :06:29. | :06:31. | |
a bigger share of the Chinese market since launching two years ago | :06:32. | :06:38. | |
Stoppila Sunzu at what's at stake. -- two years ago. Let's look at | :06:39. | :06:40. | |
what's at stake. Joining me now from New York is a | :06:41. | :07:34. | |
CEO of Task Ventures and a strategic advisor to Uber. Thank you for | :07:35. | :07:38. | |
joining us on Asia Business Report. Was this a good deal for Uber or was | :07:39. | :07:45. | |
it lopsided for DD? At least from Uber's perspective, whenever you | :07:46. | :07:49. | |
invest $2 billion and less than two years later you get $7 billion value | :07:50. | :07:54. | |
back, that's a good deal. I make investments in tech companies all | :07:55. | :07:57. | |
the time and if I could do that I would do it any day of the week. But | :07:58. | :08:03. | |
by signing off on this deal, doesn't Uber basically raised the white | :08:04. | :08:08. | |
flag, we've given up on China? I think Uber came a lot further in | :08:09. | :08:13. | |
China than a US tech company ever has by a longshot and now they are | :08:14. | :08:16. | |
part of a company within China that has the potential to go from its | :08:17. | :08:21. | |
current valuation of $35 million to five or ten times that, which will | :08:22. | :08:25. | |
make Uber vastly wealthier and more successful than it is right now. To | :08:26. | :08:29. | |
be you have to operate different league in different parts of the | :08:30. | :08:33. | |
globe and Uber thought the best way to do that was to consult with Didi | :08:34. | :08:38. | |
in this case -- differently. But tell us, losing $1 billion a year, | :08:39. | :08:42. | |
why was it different to make money in China -- difficult? Almost every | :08:43. | :08:56. | |
tech company, you did a report on Tesla and SolarCity, to scale | :08:57. | :09:00. | |
globally you have to invest a lot of resources before you get the | :09:01. | :09:03. | |
profitability. That's true of Facebook and Google and other | :09:04. | :09:07. | |
companies and Google is already profitable all over the world. Uber | :09:08. | :09:13. | |
now by emerging with Didi it can be profitable in China too. It takes | :09:14. | :09:16. | |
the most valuable start-up in the entire world and making it more six | :09:17. | :09:23. | |
at and better. The deal with Didi Chuxing, does it pave the way for | :09:24. | :09:32. | |
the Uber IPO -- make it more successful and better. I've been | :09:33. | :09:36. | |
doing business with Travis for five years now and whenever I think he | :09:37. | :09:39. | |
will go left, he goes right, and whenever I think he goes right, he | :09:40. | :09:44. | |
goes left. I remember when Facebook bought WhatsApp for $19 billion, I | :09:45. | :09:51. | |
remember thinking, while, if Uber had $19 billion I would be so happy. | :09:52. | :09:56. | |
We are now worth 3.5 times that -- while. Would you like it to happen | :09:57. | :10:02. | |
now? I don't know -- plough. When I let Travis do his job he makes me a | :10:03. | :10:07. | |
lot of money cash while. I will let him do that whenever he wants. -- | :10:08. | :10:10. | |
wow. There is plenty more on the Didi | :10:11. | :10:18. | |
Uber deal on the website including an analysis from our ABI | :10:19. | :10:23. | |
correspondent Richmond Ridge Warnie -- AVR correspondent -- AVR. | :10:24. | :10:31. | |
Days before the opening of the Rio Olympics, | :10:32. | :10:42. | |
research suggests that pollution levels remain worryingly high. | :10:43. | :10:45. | |
South China is braced for powerful Typhoon Nida, | :10:46. | :10:48. |