Browse content similar to 06/10/2016. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
Chickening out. The owner of KFC prepares to spin off its China | :00:15. | :00:21. | |
business as it disappoints with a fall in sales. Sex on the sly. An | :00:22. | :00:27. | |
Indian start up helps young couples escape disapproving eyes. Good | :00:28. | :00:38. | |
morning, Asia and hello world. It is Thursday. Glad you could join us for | :00:39. | :00:42. | |
this edition of Asia Business Report. We begin with Young Brands | :00:43. | :00:49. | |
and the company has missed its mark for third-quarter results. The | :00:50. | :00:58. | |
protest in China against Western brands. The owner of KFC, Taco Bell | :00:59. | :01:04. | |
and Pizza Hut will be spinning off its China business in a few weeks | :01:05. | :01:11. | |
time. It is not the one making big changes. McDonald's is also | :01:12. | :01:15. | |
reportedly planning to convert more than 2000 stores into a franchise | :01:16. | :01:19. | |
business. Why are fast food companies switching things up? I | :01:20. | :01:29. | |
earlier spoke to somebody for a reaction to the earning results from | :01:30. | :01:32. | |
Yum Brands. It is a backlash against the dispute in the South China Sea | :01:33. | :01:36. | |
and what they did was not deliberately boycott but I think | :01:37. | :01:39. | |
mentally sort of try boycott these are Western brands. That hurt | :01:40. | :01:43. | |
Kentucky fried chicken. It is spinning off the chiding business, | :01:44. | :01:50. | |
is that the right way for Yum Brands or for McDonald's which is going for | :01:51. | :01:55. | |
a franchising strategy? It is the right time, but also for McDonald's. | :01:56. | :02:02. | |
Western brands can sell in China and they have made tremendous amount of | :02:03. | :02:06. | |
money from this. Consequently what they are saying is that the next | :02:07. | :02:12. | |
stage of growth had been plucked all of the low hanging growth, they now | :02:13. | :02:17. | |
want to expand into the rest of China. In the case of Yum Brands | :02:18. | :02:21. | |
they want to triple the number of stores that they have. They say now | :02:22. | :02:26. | |
that they have done all they can, and now it is up to the Chinese | :02:27. | :02:33. | |
market. They will be licking their fingers all the way to the bank. | :02:34. | :02:37. | |
Even though they spin off the China business, David, it still has the | :02:38. | :02:45. | |
Western brand. So will the new or owner also feel political backlash? | :02:46. | :02:50. | |
This is the stupidity of it all. What they are damaging is | :02:51. | :02:57. | |
themselves. Yum Brands China will be owned by the company that is of Ali | :02:58. | :03:03. | |
Babar. It is now a Chinese company, not a Western company. I think the | :03:04. | :03:12. | |
boycott will be short lived. A smart move for McDonald's because when you | :03:13. | :03:16. | |
have this franchising strategy you have royalties every year and you | :03:17. | :03:20. | |
have a recurrent income at Hull on the other hand this could also | :03:21. | :03:23. | |
impact the quality of McDonald's because franchise also often have a | :03:24. | :03:27. | |
difficult time maintaining quality of food. In the case of Yum Brands | :03:28. | :03:32. | |
and in the case of McDonald's it will be a franchise and they will be | :03:33. | :03:37. | |
earning a revenue from this. In the case of Yum Brands they will get 3% | :03:38. | :03:46. | |
of sales. And they will be getting that for doing absolutely nothing | :03:47. | :03:49. | |
except providing the brand. In other business news, Samsung Electronics | :03:50. | :04:01. | |
is acquiring Viv Labs. With this acquisition Samsung plans to | :04:02. | :04:05. | |
integrate the AI platform into its range of Galaxy smart phones. | :04:06. | :04:11. | |
Staying with Samsung, a Southwest Airlines flight departing in | :04:12. | :04:15. | |
Kentucky was evacuated after a passenger's Galaxy Note 7 smart | :04:16. | :04:20. | |
phone started emitting smoke. That model is on a global recall and | :04:21. | :04:27. | |
Samsung cannot confirm if that incident is caused by a new and | :04:28. | :04:35. | |
replaced phone. The bank of Australia are under watch this week. | :04:36. | :04:43. | |
There is a parliamentary enquiry into their activities. The manager | :04:44. | :04:49. | |
of ANZ has already apologised for not meeting proper standards. We | :04:50. | :04:54. | |
heard from ANZ, one of the biggest banks here, accepting that there had | :04:55. | :04:59. | |
been problems, some blunders, money played into wrong accounts. The | :05:00. | :05:02. | |
chief executive saying there was not a blokey culture within banking in | :05:03. | :05:08. | |
Australia. Likewise we are hearing from the head of the NAD bank and | :05:09. | :05:13. | |
the biggest business banker in Australia. He denies that there is | :05:14. | :05:17. | |
systemic failure within the banking system. There was detailed their on | :05:18. | :05:23. | |
rogue financial planners. 43 have been suspended by the bank. He | :05:24. | :05:27. | |
accepted that no senior manager had lost their job, however. The | :05:28. | :05:33. | |
questioning was fierce by the MPC in Australia who feel that customers | :05:34. | :05:37. | |
are being wronged and problems need to be faced. So the | :05:38. | :05:42. | |
parliamentarians, are they satisfied with this apology and the lip | :05:43. | :05:46. | |
service or do they want some major changes within the internal culture | :05:47. | :05:50. | |
of the banking industry? Everyone says they want change, the question | :05:51. | :05:56. | |
is what change will they get? Already this week the government of | :05:57. | :06:00. | |
Malcolm Turnbull has assembled legislation on rate reading. That is | :06:01. | :06:03. | |
significant because three of the banks appearing this week, NAD, ANZ | :06:04. | :06:09. | |
and Westpac have been accused of market manipulation by the regulator | :06:10. | :06:13. | |
here in Australia. People want more action. There is talk of a tribunal | :06:14. | :06:18. | |
system for aggrieved customers which would mean they would not have to go | :06:19. | :06:22. | |
through a lengthy court case. But the opposition party here in | :06:23. | :06:26. | |
Australia say that this process so far has been a whitewash. They have | :06:27. | :06:32. | |
been too soft. What they want is a royal commission that would look at | :06:33. | :06:38. | |
granular detail of some of the problems. But you must remember that | :06:39. | :06:41. | |
the banks here in the regulatory system is credited with stopping | :06:42. | :06:45. | |
Australia going into recession when many of the markets in the world | :06:46. | :06:50. | |
failed. While there are clearly problems being exposed, overall, | :06:51. | :06:54. | |
people here argue that the banking system in Australia is still in | :06:55. | :07:00. | |
robust health. Now there are plenty of companies out there aiming to | :07:01. | :07:05. | |
make breathing easier. In particular in India it can be difficult. Many | :07:06. | :07:11. | |
of the young people live with large and disapproving families in small | :07:12. | :07:15. | |
houses with little privacy. Enter by's uncle. It helps young couples | :07:16. | :07:24. | |
book hotel rooms for half a day. Stealing a few moments alone. | :07:25. | :07:29. | |
Couples in Mumbai have few places to go if they want to sneak a kiss all | :07:30. | :07:34. | |
hold hands stop in India, public displays of affection can be seen as | :07:35. | :07:38. | |
a moral and premarital sex is still taboo. This is one of the so-called | :07:39. | :07:44. | |
lovers points. Couples come here every day to spend some time alone. | :07:45. | :07:51. | |
But it is not ideal. Open Era and right by the road. And, importantly, | :07:52. | :07:55. | |
a high chance of being seen by somebody known to the family. What | :07:56. | :08:02. | |
are the alternatives? When you go to a hotel you know, you know by the | :08:03. | :08:09. | |
way that people look at you. It makes you feel disgusting about | :08:10. | :08:14. | |
yourself. This young woman did not want to reveal her identity. But she | :08:15. | :08:20. | |
is exactly the kind of customer a new start up is targeting. Stay | :08:21. | :08:25. | |
uncle helps young couples or could discreetly by helping them find a | :08:26. | :08:31. | |
place to stay that will accept them. It is not legal but convincing | :08:32. | :08:35. | |
hotels to signup has not been easy. There has been almost seven months | :08:36. | :08:41. | |
now. We still face difficulties in actually, you know, asking hotels to | :08:42. | :08:48. | |
accept couples. There are only two or three hotels on board at the | :08:49. | :08:56. | |
moment. This is the kind of moral policing we are talking about. Last | :08:57. | :09:04. | |
year Mumbai police evicted couples from hotels. For the businesses are | :09:05. | :09:10. | |
willing to take the risks it is already proving to be profitable. | :09:11. | :09:14. | |
The rooms are offered 14 hours each at 60% of the normal rate making it | :09:15. | :09:21. | |
possible to rent one room out twice in a day. She had to face it. If | :09:22. | :09:29. | |
they are doing it by the law, it is OK. Ultimately we will say yes. We | :09:30. | :09:33. | |
have a hotel and it is profitable. It is worth doing. The conservative | :09:34. | :09:40. | |
attitudes of India towards love and intimacy are a struggle for some | :09:41. | :09:49. | |
couples. But fought start-ups like Stay Uncle and its hotel partners, | :09:50. | :09:52. | |
there is an opportunity to make money. Here is a quick look at the | :09:53. | :09:57. | |
marker before we go. A positive day for Asian stocks as you can see. | :09:58. | :10:01. | |
They are all on the plus. This is after US shares gained overnight, | :10:02. | :10:05. | |
led by petroleum companies due to high oil prices large banks and | :10:06. | :10:09. | |
expectations that the Federal bank will assume the cost of borrowing | :10:10. | :10:11. | |
for the end of the year. The All Ordinaries index, because of | :10:12. | :10:22. | |
the rising price of commodities, is up by 15 points. Those are the | :10:23. | :10:25. | |
markets. Thank you for investing your time with us. Sport Today is | :10:26. | :10:27. | |
coming up next. Our top stories this hour, at least | :10:28. | :10:46. | |
three people have been killed by Typhoon Chaba in South | :10:47. | :10:48. |