01/11/2016 Asia Business Report

Now all the latest business news live from Singapore.

A giant leap into private banking. Find out why Singapore's bank is

picking up assets that rivals are ditching.

And from dairy farms to aeroplanes. Breaking ground in New Zealand. Good

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

Report. We start with Singapore's diggers to lender, the boss of the

DBS group says he is confident there is more wealth creation to take

place in Asia in the coming years and that's why it is making a major

push into private banking with the purchase of ANZ bank's wealth and

retail businesses in five regional markets. We caught up with the chief

executive to find out more about the bank's strategy.

China is growing at 6%, India at 7%, Indonesia at 5% plus, my definition

of six is not flatlining. Six is four times the growth in Europe and

three times that of the US. So, frankly, I am still very will wish

about Asian creation. -- bullish. Frankly we have only just scratched

the tip. There will be a lot of growth in Indonesia in the next 10-

20 years. DBS has focused on tech and you have focused on the fact

that it isn't competition from smaller players, it is more the big

platform players, like Alibaba. TUC a future where companies like

Alibaba will replace banks in regards to rudimentary banking

services? The platform players like Facebook, Google, Amazon, Alibaba.

They already have the customer base, so the cost of customer acquisition

is low. To compete with them you have to embrace a lot of their

strengths. You have to have the same kind of culture. You have to have

the same embrace of technology. Only some banks can make this migration.

You will find a fundamental restructuring of markets over the

next 5- ten years. Moving now of other business news making

headlines. Japan airlines has slashed its earnings outlook for the

full year until March, after having a 30% decline in their first half

net profit. A slump in international business and strength of the

Japanese yen badly in the third earnings in the six months until

September. Meanwhile, a rival carrier saw a 6% boost to its first

half net profit, thanks to cost-cutting and a pickup in

business travel to North America and Asia. They say management played a

big part in its latest financial performance. More on corporate Japan

and Sony has reduced its profit outlook by 10% due to losses related

to the sale of its battery business. The consumer electronics giant

announced its first half results -- will announce its first half results

later today. Well, they don't agree on much, but both Hillary Clinton

and Donald Trump said he will not support the transpacific partnership

if elected president. At the former Australian Prime Minister Kevin Rudd

is warning that scrapping the deal would negatively impact the way the

US is viewed in Asia. I think from a American policy perspective a

central pillar will be the Trans-Pacific Partnership. Of course

free trade area involving a large number of Asian Pacific countries,

but not China. I think if the United States Congress decides not to pass

the DPP, or the new administration doesn't pass the TPP, then there

will be a huge impact in terms of American influence in the region.

The second one is less obvious, which is for the TPP to be a

successful instrument of regional and bilateral trade policy, the door

has to be wide open for China to join. That has always been my

position. The whole notion of creating competitive, competing or

conflict in or opposing trade regimes does not add to regional

peace and security. It undermines it. You mentioned the TPP but both

candidates oppose this deal. You think the election has actually

affected the perception of the United States in Asia in

generalwe've seen in the United States in the body politic is the

same as we have seen in many countries around the world. There is

a rising tide of protectionism and people saying, what's in it for me

as far as globalisation is concerned? Has my living standard

increased? To I still have my job? Related a better job? -- will I get

a better job? Because many people are answering those questions in

America and around the world, we see domestically this rise in

protectionism. Of course the difficulty for all of us, including

China, is that if this rising tide of protectionism begins to redirect

trade barriers then we undermine the economic growth model, which has

helped Asia develop since 1945, and certainly since 1975, and I think

that will be a big step for all, not just the US or China.

That was Kevin Rudd, the former Australian Prime Minister, speaking

with my colleague in New York. The Bank of England governor Mark

Carney says he will step down in June, 2019, which means he will

serve another year than what it committed to. He will now remain at

the helm of the Bank of England until Britain has negotiated its

exit from the EU and that is assuming the government sticks to

its stated goal of starting the two-year process early next year.

New Zealand has long been a nation that thrives on farming but these

days that means a lot more than just sheep. Agricultural technology has

become an industry worth more than $1 billion a year to the New Zealand

economy and it is now expanding into new territories and soaring to new

heights. A dairy farm isn't the first place

you would think of for the latest in robotic technology. But this noisy

little rover, that defies gravity, is exactly that, able to climb

non-magnetic surfaces it is being developed to inspect dairy tanks.

Normally we have people abseiling from the top or by putting

scaffolding around the tank, or inside the tank, in order to expect

them. So it's a human on a rope with airport. So the suction cups we use

provide enough suction and enough sleep underneath that suction for us

to slide over the surface. It has taken five years to get to this

point and the robot is about to jump industries, the agriculture to

airport and New Zealand is trialling it to inspect planes. The aviation

industry thought it was left field but if you think about it it isn't

that big of a stretch. We were used to going inside a tank, not too

dissimilar to the outside of an aircraft. If we can reduce the

amount of time it takes for those inspections to be completed, that

aircraft is back in operation more quickly. The robot isn't the first

is ill and farm technology to expand into another industry. The humble

electric fence was first established as an animal control tool in the

1950s. The family run company is now an agricultural tech giant, taking

the electric fence far beyond the farm. The technology goes through to

the security business. One is our perimeter, the electric fencing

redeveloped for cattle, etc, that's good for people. The security tech

is used in 200 places in New Zealand, Australia and the US, in

prisons. Technology development is crucial to the company's success. Of

its 1300 worldwide staff, one in ten focus on R We have a Western

standard of living based on unsubsidised agriculture and that's

done with technology. About 80% of our revenue is outside of New

Zealand. As things get more tough, we need lower cost methods and New

Zealand is the king of low-cost methods. Low-cost but a massive

return. Agricultural tech generates exports of more than $800 million a

year. Before we go, a quick look at the

Asian Pacific markets. The market board is mixed. The Hang Seng

opening for trade and it is up by about 80.5 points, due to positive

manufacturing numbers coming out of China. That's compared to 50.4 in

September. As for the Nikkei, down by 80 points due to the stronger yen

against the US dollar, which impacts exporters. The All Ords down by 36

due to the fall in oil prices overnight. Thanks for investing your

time with us. Goodbye for now. A lorry driver has been

jailed for ten years for killing a mother

and three children because he was looking at his mobile

phone while travelling at 50 The judge said that Tomasz Kroker

might as well have