06/01/2017 Asia Business Report


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06/01/2017

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


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of alleged abusers questioning their own victims.

:00:00.:00:00.

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

:00:00.:00:11.

US President-elect Donald Trump pics on Japanese car maker Toyota for its

:00:12.:00:20.

plans to build a new plant in Mexico.

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And a new gadget for cyclists, one that tracks your performance while

:00:24.:00:33.

keeping your eyes on the road. Hello and welcome to Asia Business Report.

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Shares of Japanese car maker Toyota are down 1.5% right now after

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tumbling 3% earlier this morning. This comes after President-elect

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Donald Trump tweeted that if Toyota goes ahead with plans to build a new

:00:51.:00:56.

plant in Mexico, especially for its Corolla car model, instead of the

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US, then it faces a big border tax when it ships cars north. Toyota

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announced in April that it would build a $1 billion macro -- Carolla

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factory in Mexico. I asked if there had been any reaction to that latest

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tweet. Toyota was quick to respond to the latest tweet by the

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President-elect and they said quickly in a statement that they

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employ someone and 36,000 people here in the United States and that

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the production in the United States would not be impacted by this

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facility that they are planning to build in Mexico. They also talked

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about just how many millions of dollars of US investment that the

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company brings here, so it was really quick to talk about its

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achievements in the US and offcourse that it is looking forward to

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working with a Trump administration. Why do you think he is particularly

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going after the auto industry this week? This is really part of Mr

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Trump's America First policy. This is something he campaigned on and

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right now we are really seeing him call some of these companies to

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task. He wants to see companies that are manufacturing things, to make

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them in the US, and if they don't he wants to see them pay really heavy

:02:23.:02:27.

tariffs on those items that they are going to be selling in the US. This

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is really part of the more protectionist language that we heard

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from Mr Trump and that will be carried through to his

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administration, especially when you look at some of his appointments.

:02:42.:02:46.

Samsung Electronics says it expects to make $7.8 billion in profit in

:02:47.:02:52.

the final quarter of last year, that's a jump of 50% from the

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previous year and better than many analysts were expecting, thanks to

:02:58.:03:02.

sales of memory chips. Samsung embarrassingly stopped sales of its

:03:03.:03:06.

Samsung Galaxy Note 7 phone after reports of them catching fire. We

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are joined by a technology consultant from IDC. Memory chips

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have offset concerns about the Galaxy Note 7, but you were

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expecting this? When you look at a lot of the headlines in the past

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couple of months it has always been about exploding batteries, doom for

:03:26.:03:30.

Samsung, that's not their only business. If anything, what really

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driving things is the strong memory, they have high memory and demand

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from mobile phone makers and it also displayed, this small, high end

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screens that are increasingly going into a lot of high end phones.

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Really helping them. They are very profitable businesses, so these

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businesses are behind the scenes of the mainstream consumer and that's

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what is driving it. At the end of the day what happened to the Galaxy

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Note 7, as painful it was, it just bounced right off because all of

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these other businesses helped it. It is to use a that's because there are

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many concerns that it will impact them and their reputation. Will that

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follow Samsung into this year and how can it continue to stay

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profitable? It still is a cloud lingering over their heads. They

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still haven't explained what caused those exploding batteries. The good

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thing is a couple of days ago at the consumer Electronics Show in Las

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Vegas they said something was coming soon. They didn't say exactly when.

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They will explain what happened. What that will be key to the

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reputation, got until then people are still worried. They are the butt

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of jokes. If you buy a Samsung it will explode. They have to make it

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clear what went wrong, why it won't happen again and they have to get

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this announcement soon announcement now. Of course there's the arch

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rivalry with the Mac and iPhone. Because of the Galaxy Note 7

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scandal, Apple's iPhone 6 was said to be the most popular smartphone.

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How can Samsung regain ground? In terms of popularity, there are

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different ways to measure it. In terms of market share, Samsung still

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has a commanding lead and it is continue to have that. They are just

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at the high end, have a low-end and that carries things through. But as

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you say what about from a mind share perspective? That will depend on the

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user. Some are Apple's fans, others are Android fans. The rumours we are

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hearing about the next Galaxy, maybe no home button, stuff around AI. So

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there is interesting stuff, if these rumours are true, that could end up

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being a nice product for them, but they have to get the battery

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reputation behind them. We look forward to the next big product.

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Thank you so much for that. Will it be a better year for Asia's property

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markets this year, after a mixed bag in 2016? Property markets in China

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and Australia remain strong, driven by growth in major cities, there's a

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different in much of Southeast Asia where growth was more subdued. Which

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markets are likely to do well in the coming 12 months? Here is the view

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from someone with a real estate firm. Let's pick out some of these

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star performers. China, this has caught the imagination of many

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people. 20% plus price growth in cities like Beijing and Shanghai. So

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much so that the authorities have stepped in again to try to bring in

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cooling measures. Elsewhere, Australia has still been a steady

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performer, as you mentioned. This is like Sydney and Melbourne, still

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seem fairly reasonable price growth. And then places like New Zealand,

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Auckland continues to be a star performer. China and Hong Kong have

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been seeing growth, despite these measures. The government has tried

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to put in more measures and are regulating the finance, trying to

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impose some capital controls. What impact might this have full Bell? --

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might this have? It is difficult to say. Over the last 12 months with

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the number of cooling measures. It is difficult if you don't have the

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money to invest in certain cities. That's not to -- that has had a

:07:35.:07:42.

cooling effect. But PS3 and four cities still have a big overhang of

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supply. -- tier three and four. How could this impact the market? It

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could have a dampening impact on outbound but that could lead to the

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benefit of some Chinese markets themselves. Chinese investing in

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Shanghai and Beijing, instead of overseas.

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The annual Consumer Electronics Show is a mecca for anyone interested in

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the latest high-tech gadgets and among them a type of smart glasses

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designed to make people fitter. Smart glasses have failed to have

:08:19.:08:21.

much of an impact. People will remember Google class. But it's

:08:22.:08:26.

believed these $500 glasses will succeed.

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These are some smart glasses, especially for cyclists. I am

:08:32.:08:35.

wearing them now. Very fetching. It is a Google Glasses like setup. I

:08:36.:08:45.

can see the calories on burning, how fast I am cycling and the

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innovation. How high I am, if I was on a bike. You are the creator of

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this device. Why is it better to have smart glasses than a little

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device on your handlebars eating it the same information? We are seeing

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an evolution of how people in different areas consume their data,

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especially sports, where data is becoming the norm. You are training

:09:07.:09:11.

to become better. There is standard technology out there for cyclists,

:09:12.:09:15.

that amount on handlebars, but we believe the evolution of how data is

:09:16.:09:20.

consumed is real-time, and so you don't have to get distracted. Isn't

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it more distracting to have things projected over my vision? No,

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because you can see through the information. The information

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disappears when you focus beyond it for five metres and that information

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is actually on demand. When you change focused information suddenly

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appears in your field of view, art at the same time you aren't losing

:09:43.:09:45.

your context because you are focusing on the road. In addition to

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the display you also have integrated speakers in the headset that are

:09:51.:09:54.

acoustically giving you directions for your training. So I don't have

:09:55.:10:00.

to look at my phone. Why are these built into tinted spectacles? Would

:10:01.:10:06.

it make driving or cycling at night more difficult? The lenses are

:10:07.:10:12.

interchangeable. There is a dark lens, but the user can change it for

:10:13.:10:18.

a clear and lens or a mirrored on. It is just another smart set of

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glasses, with technology built in. That ends this edition of Asia

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Business Report. Thanks for watching.

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