09/01/2017 Asia Business Report


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09/01/2017

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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You're watching BBC World News. Four Israeli soldiers have been killed in

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a track attack in Jerusalem. The driver of the vehicle were shot

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dead. The Prime Minister Benjamin Netanyahu believes the attacker was

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inspired by it Islamic State. US Defence Secretary Ash Carter called

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the North Korean missile testing a serious threat to the US and that

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America would be prepared to shoot down a missile. This video is

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trending online. It is footage caught off a huge school of wire

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which fell off a truck in the US state of Pennsylvania and proceeded

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to roll down the wrong way at cross a motorway, causing havoc and

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forcing cars to swerve out of its way -- spool of wire. Luckily no

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cars were hit and no one was injured. You are up-to-date. Stay

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with us here on BBC World News. And the top story for you in the UK, a

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24-hour strike by London Underground workers is under way, it is by

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drivers and station staff about job losses and ticket office closures.

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More from me but first hearing is Sharanjit. Chrysler Fiat pours $1

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billion into US factories and moved some production from Mexico. And a

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decade since this little gadget changed the way we communicate, what

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is in store for the next ten years of the smartphone? Hello, welcome to

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Asia Business Report. Another car maker makes a huge investment in the

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United States. Fiat Chrysler is investing $1 billion in America,

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including modifying a plant in Michigan which will make pickup

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trucks manufactured in Mexico. The move comes as the President-elect

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Donald Trump pressures the auto industry to hire workers and produce

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vehicles north of the border. Last week Ford announced it was

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cancelling plans for a factory in Mexico and will build the cars in

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the US. All of this comes as one of the world's biggest auto shows'

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where car giant showcase their latest products. Earlier I spoke

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with a spokesperson for the auto industry and his reaction to the

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Fiat Chrysler and Mt. They have followed suit with what Ford has

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done and some of the automakers we have heard from, so there seems to

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be a new awareness that if you are planning and had big ideas to roll

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out Mexico -based production, maybe you are not going to do that now,

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you will keep it in the US. It is startling given he is not even the

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president yet. Is this becoming a long-term change or trained in car

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manufacturing? I think Donald Trump will come into office and he will

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look for smart ways to keep jobs in America. At the same time you have

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to be careful for unintended consequences, always the bugaboo of

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government agencies. If you keep the jobs here and force up prices of

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cars and make them uncompetitive with cars coming from elsewhere,

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companies building the cars in a different way, you might end up

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hurting companies because they simply cannot make cars affordable

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for Americans, then you will have companies laying people off not

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because cars are built elsewhere but they cannot sell enough to employ

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people. Economics is interesting. Usually there is cause and effect.

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And you can't do one thing and assume an upside. There is almost

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always repercussion somewhere else. This show has taken on political

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overtones as the President-elect Donald Trump targets the car

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industry, so is it something a lot of people are talking about? Yes,

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there is a buzz about the impact on drum is having on the car industry

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and how much he has had before he has been officially sworn as

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president and there is definitely apprehension across the country as

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to how big an impact he will have on plans, whether it is building plants

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in Mexico or redistributing where the cars are built and how they are

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shipped, there is a thinker little uncertainty that was unfair to

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months ago -- that wasn't there two months ago because they don't know

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what the man in charge is going to do.

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The shares in Australian miners are down this morning on forecasts of

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lower iron ore prices. The government expects average iron ore

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prices for the next two years to drop nearly half. Current spot

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prices of the commodity used in making steel are at about US $80 per

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ton and iron ore is Australia's biggest commodity export.

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Over in Mexico, nearly 10,000 people are taking to the streets in the

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western area to protest the country's gasoline price hike. They

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are enraged by a 20% jump in fuel prices which were announced as part

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of the government deregulation of the energy sector.

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Jakarta is known for having some of the world's worst traffic and to

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reduce the number of motorbikes the government has made it three times

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more expensive to register a vehicle. It also wants to raise

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money for its infrastructure programme.

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Jamal al-Jamal is the first in his family to own a motorbike.

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TRANSLATION: I borrowed money for the downpayment from a friend and

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then I paid it off slowly and finally it was mine. I never dared

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to dream I would own a motorbike. It is like a dream come true.

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Motorbikes can be bought here with a deposit of as little as $50 US and

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then paid off in monthly instalments. Nearly half a million

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motorbikes are sold in Indonesia each year. In Jakarta, with very few

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public transport options, people turn to motorbikes to try and get

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around reasonably quickly. They can weave through the traffic but the

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government is hoping that by making it harder and more expensive for

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people to own a bike they will think twice about buying a bike and having

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to add their bike to this already chaotic and traffic jams Streets.

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But for this motorbike driver, owning a bike isn't a choice and he

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is worried about how he is going to pay a 300% increase in this year's

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registration fees. TRANSLATION: It is too much all at once. I don't

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earn very much. Why didn't they make it a slow increase? It is going to

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be very hard. I am struggling at the moment to earn enough to feed my

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family, let alone pay registration. The government says it is going to

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use the money that it gets from the increase to pay for its

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infrastructure projects that include the building of a mass rapid

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transport network, an underground subway train network that this city

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has been talking about for decades but now the government says is

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finally building it and is this the long-term answer to the traffic was?

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-- woes? Ten years ago today the first ever iPhone was announced by

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this man, the then chief executive of Apple, the late Steve Jobs, now

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of course we know it took the world by storm and lots of other

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manufacturers such as South Korea and Samsung have joined the game as

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well, but smart phones have changed Alli lives dramatically, so just how

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obsessed are we? Let's have a look. -- changed our lives dramatically.

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No, I don't think it is possible right now to live without a

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smartphone. I mean, it is possible, but it just becomes very difficult.

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Right now everything is easy. I can do things without having to go

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outside, like booking my movie tickets, or even interacting with my

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friends, I don't have to make calls and everything because I cant just

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send text messages. -- because I can. When I am not working usually I

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am always on my phone. 22 hours a day. Almost every minute. Don't tell

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my boss. When you see people walking around, they are on their phone.

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They are reading their phone all the time. I don't think it is healthy. I

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am sure we can all identify with that.

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Well, of course, those figures are from EMarketeer, and I spoke with a

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spokesperson from the firm and asked where the exports for smart phone

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penetration come from. We are looking at Indonesia and the

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Philippines as countries that will grow significantly. The most

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significantly in 2017 in terms of smartphone adoption. We saw that

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Taiwan and Singapore, nearly 90% of the population have smart phones.

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Will it ever get to 100%, and why not? Well, I would say that it would

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not get to 100%, because if you look at the population, and we estimate

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smart usage among individuals of all, the youngest demographic is

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where we wouldn't expect smartphone adoption to be happening, so that is

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why we wouldn't reach the 100% anytime soon. When you look at

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percentage mobile phone users, we will get close to that 100%, and

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Taiwan will be one country that will come the closest, but we don't

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expect 100% anytime before 2020. Aside from Taiwan and Singapore we

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know Asia has a lot of developing markets. Will the technological

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infrastructure ever get good enough to support more smartphones in this

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region? Yes, I think it will, and if you look at the country like Vietnam

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we see 3G is widely available and also 4G LTE availability is

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improving, and we expect it to improve over the next few years, so

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when that infrastructure is in place it really encourages smartphone

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adoption, as well as wireless becoming more affordable. When do

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you think 5G will be rolled out in these markets? I would say that is a

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longer term prospects. Just because we have to get the infrastructure in

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place before uptake really will occur.

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Let's have a quick look at the market before we go because Japan's

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market is closed. Australia continues to gain despite

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the fall in iron ore prices being projected, leading to a fall in

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miners. It is gaining as it follows the US. That is it for this edition

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of Asia Business Report. Thank you for watching.

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Four Israeli soldiers have been killed in a truck attack

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The US defence secretary calls North Korea's missile programme

:11:57.:12:01.

a threat and warns America is prepared to respond.

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