04/10/2016 Asia Business Report


04/10/2016

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Now on BBC News, all the latest business news live from Singapore.

:00:00.:00:15.

Advantaged Asia. Find out how the region could benefit as a trans-

:00:16.:00:23.

Atlantic trade deal faces new hurdles after Brexit. India's

:00:24.:00:27.

growing car industry is helping to tens of thousands of people out of

:00:28.:00:29.

poverty. Good morning Asia, hello world. It

:00:30.:00:43.

is Thursday. Glad you could join us for this edition of Asia Business

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Report, I am Rico Hizon. The round of talks between the European Union

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and the US have begun in New York over a massive trade deal called the

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TTIP. That is short for trans- Atlantic trade and investment

:00:57.:01:00.

partnership. There are now doubts on whether a deal can be pushed

:01:01.:01:07.

through. Here is some background. Plans to create a free trade zone

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between Europe and America have stirred up controversy from the

:01:14.:01:17.

start. The pact will group together 850 million consumers in the one

:01:18.:01:21.

market. Those in favour say it would offer tens of billions of dollars

:01:22.:01:27.

worth of benefits to both Europe's and America's economy. At sceptics

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disagreed, saying it would favour big business and lower product

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safety standards. An earlier I spoke with Debra elms from the Asian trade

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centre. She says the failed trade outcome will benefit Asia especially

:01:45.:01:51.

China. I asked whether there will be approval of TTIP before the US

:01:52.:01:55.

elections in November? It is to complicated, the gap is too big.

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There are too many growing doubts on both sides of the Atlantic, so I

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don't think it can be done. And what would be the repercussions if TTIP

:02:05.:02:08.

is not designed and delivered to the transpacific partnership led by the

:02:09.:02:13.

US? I don't know that there are so many implications for the TPP, the

:02:14.:02:20.

Asia trade agreement, exactly, because I don't think the two

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unnecessarily linked. But I do think there are implications if TTIP

:02:25.:02:28.

collapses for Asia, which is that the European Union is now freed up

:02:29.:02:32.

to do a lot of other things. And for the EU, I think they will turn their

:02:33.:02:37.

attention to other activities. Chief among them is negotiating a lot of

:02:38.:02:41.

trade agreements here in Asia. And for the transpacific partnership,

:02:42.:02:45.

could it be signed before the presidential polls, or even before

:02:46.:02:50.

the next president, whether it be Clinton or Trump, takes office in

:02:51.:02:56.

January? It will not be signed before the US election, that is for

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sure but it could be signed between the narrow window between when the

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election takes place and when the new president takes office, that is

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called the lame-duck session. If the TPP is not signed then, I think it

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will be very difficult for the next president to take up very soon.

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Trump has said he doesn't want it at all, Clinton has said she does not

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want it either. She is more likely to sign it in the medium term but

:03:23.:03:27.

prospects are not rate. So it will have to come in a while, but

:03:28.:03:32.

hopefully soon -- not great. So how will this benefit Asia, especially

:03:33.:03:37.

China? If the TTIP agreement between the US and EU collapses, then

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attention will be turned to Asia. They are already negotiating a

:03:42.:03:44.

number of agreements and I think they will speed up especially their

:03:45.:03:48.

bilateral investment treaties talks with China, and they will speed up a

:03:49.:03:53.

lot of negotiations that they have ongoing in Asia, with Indonesia, for

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example, which just launched last month, with a number of countries in

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this region, and I think they will prioritise negotiations in Asia in a

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way that they haven't, because they have been very busy negotiating with

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Americans. And all this week the BBC is looking at trade and its impact

:04:11.:04:16.

around the world. Today we examine car exports from India, and they

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have been rising steadily. It is also helping many people out of

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poverty. This report was sent from the southern city of Chenai. This

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woman lives with her mother in a small town near Chenmai. -- Chennai.

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She lived in a village, and after he her father died it was up to her to

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put food on the table. By night she helps out in the kitchen but today

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she is a technician at a car factory. She leads a small team

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here, and can't imagine a life without this job. TRANSLATION: I

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would have had to work on a farm, and we would have had just enough

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money for our day-to-day lives. Before I started this job, because

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we were poor, no one gave us any respect. Now, people say she is

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working in a big company and making money. In fact, a lot of people

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asking for jobs for their children as well. Thousands of people are

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employed at this plant. Each salary earned helps keep the home running.

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Hundreds of cars are made here every day. They are sold across India, and

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nearly half of them are exported. This car is being loaded onto a

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lorry, from where it will be taken to the Chennai nearby on India's

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eastern coast, to be sold overseas. Cars that are made here are sent to

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more than 100 countries, and the West is a big market. So a lot of

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the jobs at the factory depend on exports. Like this carmaker, several

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other foreign brands have set up shop in Chennai. There are

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challenges. Inadequate infrastructure, and India's famed

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bureaucracy. But there are big advantages as well. India is a cost

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competitive country. That means Labour is relatively cheap compared

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to other countries, and it also means that we can get parts

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relatively cheap. So in other words, we can make cars here, the total

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delivered cost of the vehicles, more competitively than perhaps western

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Europe or North America or Japan. If more factories open in India, and

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sell more to the world, the faster it economy will grow. For many of

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these workers it could be a chance to grow as well. From being the

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makers of cars to perhaps someday becoming buyers. In other business

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news, Dutch bank ING will cut 700 jobs in the next five years, the

:06:59.:07:02.

majority of them from their offices in the Netherlands and Belgium. The

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bank expect to make savings of $1 billion a year. It says it will

:07:06.:07:09.

invest in new technology to deal with the increasing use of digital

:07:10.:07:13.

banking services. The digital world is shaking up. In the past only

:07:14.:07:21.

shareholder reports were required but the internet is making them more

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accountable to the wider public. A survey by business School revealed

:07:26.:07:29.

80% of chief executives are now on social media. But do they really

:07:30.:07:34.

know how to properly sell themselves, and is it a good idea?

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We put the question to the chief executive of one of the biggest

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social advertising platforms. Depends what they do with it. I

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mean, if they are posting some embarrassing pictures from holidays

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or getting drunk, probably not. But if they are coming out with

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intelligent thoughts and articles, or even challenging thoughts and

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articles, but things that define what they believe in, challenge

:07:59.:08:02.

things they don't believe in, give it reinforces or amplifies what

:08:03.:08:06.

their company does, that is cool. Should CEO is beyond Twitter and

:08:07.:08:15.

Facebook and LinkedIn? Yes. All three? I would probably prioritise

:08:16.:08:21.

Twitter and Facebook in terms of CEO social media. So who in terms of

:08:22.:08:26.

companies has a successful digital strategy or profile? Starbucks have

:08:27.:08:30.

a good approach to every part of social media. Their CEO has really

:08:31.:08:33.

strong values he wants to project, he says here is what we believe in.

:08:34.:08:38.

They have all this PR around guns not being welcomed in Starbucks in

:08:39.:08:43.

America, that is a big debate. Most companies stay clear of it, he has

:08:44.:08:47.

said you can't ring a gun into Starbucks. The CEO believes in it,

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the company believes in it and they are proud and will tell people about

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it. Power Asian CEOs doing relative to their global counterparts in

:08:56.:08:59.

selling themselves? To start with, probably not enough. I don't think

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they are publishing enough. So how can they be seen as the leaders?

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Because ultimately a lot of people in business but also customers like

:09:08.:09:11.

to read visionary statements. Richard Branson is a good example,

:09:12.:09:17.

Larry Page is a good example, Mark Zuckerberg is a good example. These

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people challenge the way people think and it is stimulating. So the

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first thing is, if they have cool ideas, put them down. So that would

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be one, and probably around that would be travel and speak outside of

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Asia as well. Go to conferences in the US or Europe or whatever it

:09:34.:09:37.

might be, as opposed to just in Asia, because if you want to be seen

:09:38.:09:41.

as a global company, you want to be seen on the global stage, not just

:09:42.:09:47.

on the Asian stage. That was Ben Legg. Here is a quick look at the

:09:48.:09:55.

markets. The Nikkei 225 is up 0.6% as of the stronger than expected US

:09:56.:10:00.

manufacturing number. That is indeed inspiring Japanese investors to buy

:10:01.:10:04.

into the Japanese stock market. But you have the all ordinaries index

:10:05.:10:09.

down by 22 points, and this is after US stocks slipped on the first

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trading day of the fourth quarter, led by declines in utilities and

:10:14.:10:17.

real estate companies. The Dow Jones industrial average overnight in the

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red, with the Dow lower and the NASDAQ listing 11. Thank you so much

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for investing your time with us. I am Rico Hizon. Sport Today is coming

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up next. The top stories this hour: One

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of the worst typhoons in decades barrels towards Japan, with gusts

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of 300 kilometres per hour. As the misery continues in Aleppo,

:10:45.:10:46.

the United States suspends talks

:10:47.:10:50.

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