06/02/2017 Asia Business Report


Download Subtitles

SRT

ASS


06/02/2017

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


Similar Content

Browse content similar to 06/02/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Not for hire. After pulling out of Taiwan we find out what's next for

:00:15.:00:21.

Uber. And it's the Holy Grail of

:00:22.:00:25.

prime-time advertising, the Super Bowl, but is the $5 million pricetag

:00:26.:00:27.

worth it? Hello and welcome to Asia Business

:00:28.:00:39.

Report, I'm Sharanjit Leyl. Uber will exit Taiwan this week. The

:00:40.:00:44.

car booking company is calling it quits after a lengthy battle with

:00:45.:00:48.

the government there. Uber faced massive fines, which reportedly

:00:49.:00:54.

totalled 35 in US dollars after Taiwanese authorities raised fines

:00:55.:00:58.

for drivers caught working for unlicensed transportation services.

:00:59.:01:03.

In Taiwan, Uber is registered as an information services company.

:01:04.:01:07.

Earlier I spoke with the general manager for Uber in Taiwan and he

:01:08.:01:11.

said the fine was among the highest imposed.

:01:12.:01:12.

We haven't received any new fines today but I can confirm the fines

:01:13.:01:20.

right now are the highest in the world, which leaves very little room

:01:21.:01:25.

for innovation going forward. The focus for us is really now that the

:01:26.:01:30.

bill has passed, what is the right regulation framework looking like?

:01:31.:01:35.

We believe there should be a pattern and we need to sit down with

:01:36.:01:38.

government to do that. Have you got a meeting scheduled with the

:01:39.:01:42.

government? We are very eager to meet with the government and we're

:01:43.:01:46.

doing everything we can in our power to make those arrangements happen.

:01:47.:01:50.

The key question now is the government supportive of the concept

:01:51.:01:54.

of ride sharing in Taiwan? Interesting you mention whether the

:01:55.:01:57.

government is supporting the concept because according to the Taiwanese

:01:58.:02:02.

transport authority they say Uber is registered as an information

:02:03.:02:06.

services provider. But what you're doing is providing transportation.

:02:07.:02:09.

Does the government do you think have a point?

:02:10.:02:14.

Uber is a ride sharing company, we like to be registered as such. I

:02:15.:02:19.

think the issue is there's no regulations for right sharing in

:02:20.:02:22.

Taiwan because the concept itself has come around only in the past six

:02:23.:02:27.

or seven years when right sharing companies like ourselves started.

:02:28.:02:30.

The question now is if the government does believe in the

:02:31.:02:33.

concept of ride sharing, we're more than happy to work with them in

:02:34.:02:37.

terms of finding the right types of regulation for companies like

:02:38.:02:42.

ourselves. Briefly, getting out of Taiwan, short-term or permanent?

:02:43.:02:48.

I think we certainly hope we can resume operations as soon as the. I

:02:49.:02:51.

think this pause is something we feel will alleviate pressure but we

:02:52.:02:57.

do believe that the president has a mandate to improve technology and

:02:58.:03:00.

economic development and we think ride sharing fits in well with that.

:03:01.:03:06.

The biggest sporting event in the United States is under way. We are

:03:07.:03:10.

of course talking about the Super Bowl, the Championship game in

:03:11.:03:15.

American football which, last year, attracted 111 million viewers. I can

:03:16.:03:19.

tell you that today we are still seeing the Falcons, the underdogs,

:03:20.:03:24.

they are beating the New England Patriots at the moment. It's a big

:03:25.:03:28.

eel, the Super Bowl, because advertisers are spending an average

:03:29.:03:34.

of $5 million for a 32nd commercial -- big deal. Some of Asia's most

:03:35.:03:40.

recognisable brands are getting into the game and here's a sneak peek of

:03:41.:03:44.

the highly anticipated Super Bowl commercials.

:03:45.:03:54.

I'm just curious... Puyol services still apply if I'm not technically

:03:55.:04:03.

on a road or land -- do your services.

:04:04.:04:07.

Machines don't have emotions. But the rare few can inspire them.

:04:08.:04:16.

Some of the commercials that Super Bowl viewers will get to watch.

:04:17.:04:19.

Earlier I spoke with James Walton, who manages the sports business

:04:20.:04:24.

group at Deloitte and I asked him if companies splurging on the Super

:04:25.:04:27.

Bowl ads will be getting their money back? The actual cost is even higher

:04:28.:04:32.

than $5 million because $5 million just buys you space on TV. On top of

:04:33.:04:37.

that you have to pay for the production of a world-class advert,

:04:38.:04:41.

which is around $1 million, and in this day and age you also have to

:04:42.:04:45.

put out on social media and build other advertising spend as round two

:04:46.:04:50.

well. Recent studies suggest the cost of a Super Bowl campaign is

:04:51.:04:55.

closer to $10 million. For that you're getting access to the largest

:04:56.:05:00.

TV audience of the year in the US. In fact the last seven Super bowls

:05:01.:05:04.

have been the seven highest TV programmes of all time, you're

:05:05.:05:09.

getting 110 million viewers also. There's still a feeling that perhaps

:05:10.:05:13.

it has peaked now because this year they were still selling some of

:05:14.:05:18.

these advertising slots as recently as last week, which is the first

:05:19.:05:21.

time that's ever happened. Fascinating you have these big Asian

:05:22.:05:26.

names taking part, the likes of Nintendo with their new Switch games

:05:27.:05:32.

console, Toyota, Lexus and Kia as well. Why is it so crucial for the

:05:33.:05:37.

Asian and co is to be there? Most of these Asian companies have been

:05:38.:05:44.

there before. Nintendo is the is the only one for the first time, Hyundai

:05:45.:05:49.

went all the back, way back to the 1980s and is a sponsor of the NFL at

:05:50.:05:55.

the moment. They see this TV audience represents a big

:05:56.:05:59.

opportunity for them. Last year Toyota pushed hard on their previous

:06:00.:06:02.

hybrid and they ended up selling over 3.5 million units as a result

:06:03.:06:09.

of the campaign. They feel this is clearly an opportunity. The one time

:06:10.:06:13.

of the year when people actually watch the adverts and everyone

:06:14.:06:16.

gathers around the TV, this is your one chance to make a big impression.

:06:17.:06:21.

You mentioned social media, everyone thought TV advertising is more or

:06:22.:06:26.

less dead because this is the other big opportunity for lots of

:06:27.:06:30.

advertisers. Tell us about the scourge of social media, will it

:06:31.:06:34.

obliterate TV advertising in the future? It is definitely affecting

:06:35.:06:38.

because companies only have a certain amount of marketing spend

:06:39.:06:41.

and you have to decide where you're going to put that and social media

:06:42.:06:45.

is another channel to take that but the best companies at the moment are

:06:46.:06:49.

the ones working out how to use traditional and modern media in

:06:50.:06:53.

tandem. There's a lot of drumbeat campaigns even around the Super Bowl

:06:54.:06:57.

where companies are releasing their adverts early, doing teaser

:06:58.:07:01.

trailers, buying up a lot of advertising space on social media

:07:02.:07:05.

around the time of their TV advert and combining the two pieces

:07:06.:07:09.

together for the whole experience. On a day like today, it is estimated

:07:10.:07:14.

around 60 million people will talk about the Super Bowl on Facebook as

:07:15.:07:17.

well as watch it, so that represents an opportunity as well. James Walton

:07:18.:07:22.

from Deloitte. Were into the third week of President Trump the's

:07:23.:07:26.

administration and so far we've heard tough talk on trade and

:07:27.:07:30.

threats of import taxes against the auto sector. Research house, less

:07:31.:07:35.

says if the president goes ahead with his campaign promise of

:07:36.:07:39.

imposing higher tariffs on Chinese products they could make it tough

:07:40.:07:43.

for Chinese mobile handset makers to do business in the US.

:07:44.:07:50.

We understand that it is already very hardfought Petronius Marveaux

:07:51.:07:59.

business to get into the US. It's a very complicated market and you need

:08:00.:08:02.

strong relationships with the carriers like the horizon or AT --

:08:03.:08:09.

hard for Chinese handset makers. -- the horizon. With Donald Trump you

:08:10.:08:13.

have the possibility of higher tariffs. With that thread on Chinese

:08:14.:08:19.

products, it could create a problem for them because their products are

:08:20.:08:23.

more expensive and what is happening is will people want to buy more

:08:24.:08:28.

expensive products? No. Obviously it will make it hard for them but is

:08:29.:08:32.

the US market even worth it? We know it is an incredibly saturated

:08:33.:08:37.

market, you've got huge leaders like Apple with the iPhone and Samsung.

:08:38.:08:43.

So why bother? The key to the US market is that it is not a market of

:08:44.:08:49.

volume like India or China itself, the US market is the crown jewels of

:08:50.:08:53.

all smartphone markets as we know it. It's the market of high-value.

:08:54.:09:00.

That is worth it for the smart phone vendors to go into the US, to

:09:01.:09:07.

displace Apple, to displace Samsung and gain market share from them to

:09:08.:09:08.

gain a very high-value market. The Chinese capital, Beijing, aims

:09:09.:09:17.

to cut the use of coal by 30% this year to battle against air

:09:18.:09:21.

pollution. According to the state news agency the government will get

:09:22.:09:25.

more aggressive this year and help residents of 700 villages make use

:09:26.:09:30.

of clean energy. Large parts of northern and central China have been

:09:31.:09:35.

covered in fix for this winter disrupting flight and port

:09:36.:09:39.

operations and schools -- thick smoke. There's been a glut of sell

:09:40.:09:44.

orders this morning on reports the airbag manufacturer has selected

:09:45.:09:53.

key... -- thick smog. A Japanese firm has been looking for support to

:09:54.:09:58.

deal with billions of dollars of recall costs related to millions of

:09:59.:10:02.

potentially defective airbags. Let's look that the markets before we go

:10:03.:10:06.

because as you can see they are all higher, taking their cues from Wall

:10:07.:10:11.

Street's record close on Friday. We saw the NASDAQ at a record high. I

:10:12.:10:16.

should say we are having some impact from the fact that the Chinese

:10:17.:10:20.

central bank actually raised short-term interest rates on Friday.

:10:21.:10:25.

We saw a fairly good US jobs report as well, better than expected

:10:26.:10:31.

numbers, fuelling the rise. That's it for this edition of

:10:32.:10:32.