16/02/2017 Asia Business Report


16/02/2017

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

:00:00.:00:17.

Take two - the prosecutors office of South Korea gets another shot at

:00:18.:00:25.

arresting Samsung's group chief. And gridlock in Delhi - commuters

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struggled to get to work as Uber drivers keep off the road.

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Welcome to this edition of Asia Business Report.

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We begin with the corruption scandal in South Korea and, for the second

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time in three weeks, a court will decide whether to grant a request to

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a rest ahead of South Korea's largest company. A hearing is about

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to start, where prosecutors will try to persuade a judge of that there is

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enough evidence to arrest JY Lee. He is a suspect in a bribery

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investigation which could bring down the country's president. The

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prosecutors office explains why it is seeking an arrest warrant for Mr

:01:16.:01:21.

Lee. TRANSLATION: For three weeks after the first arrest warrant was

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denied we secured additional evidence that we can be sure about

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and, after careful deliberation, we have requested an arrest warrant for

:01:32.:01:38.

the second time. Earlier, I asked James Rooney, Korea watcher, if they

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have a better chance this time around. They certainly hope so, and

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they will try to avoid being embarrassed as second time around,

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but career is in chaos these days, so nothing is as expected as once in

:01:54.:02:03.

the past. If indeed Mr Mr Lee is arrested, James, what will happen to

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Samsung is, will operations suffer? Not in my opinion, because he

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doesn't run the day-to-day operations, there is a vast army

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with senior managers with great depth and breath who make the

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regular day today decisions but when the boss is locked up in prison

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there becomes a certain caution amongst those other folk. They don't

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want to step out of line, they don't want to get blamed for something and

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they don't have their boss to give them a cover. Plus, of course, he is

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becoming an important figure in public for Samsung, or he has been,

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and that plays into negotiating deals and Saifon and so forth.

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Samsung is a very large organisation. I have educated some

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of their senior managers over the years, especially the foreign ones

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that they hire, and I don't imagine that, you know, it will impact of

:02:55.:02:59.

the next year or even two years on the financial performance or

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anything like that. But, as you say, it is the largest conglomerate in

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South Korea. If Mr Lee is indeed arrested, could this have a wider

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impact on business confidence in South Korea? To be honest, I don't

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think so. The issue here isn't about business, the issue here is really

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about the President. However, you know, Samsung got themselves tangled

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up with the President through trying to do a restructuring to help

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transfer the ownership and the control of the company from one

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generation to the next generation, which he is a beneficiary to. In

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other news: making headlines - US President Donald Trump's choice for

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Labour Secretary has withdrawn from consideration. Andrew passed a law

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support from Republican senators after he employed an illegal

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immigrant as a housekeeper. He has been criticised for his remarks on

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women and employees at his restaurants. He is the first cabinet

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pick the failed to secure nomination. Lenovo was one of the

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first Chinese companies to transform itself into a global company.

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One decade after buying IBM's personal computer business it

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leapfrogged HP and Dell to become the biggest PC maker, but expansion

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into the tablet and smart phone market hasn't gone as smoothly.

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After taking over motor Rohler, thousands of jobs have been cut. The

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head of the company's earnings, I asked an analyst why the firm is

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struggling in its home market -- Motorola. In China, what Lenovo

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hasn't done well is it has lost its focus. A few years ago in China,

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Lenovo got to the number-1 position because of a strong of budget lines.

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But, as China shifts away from first-time smartphone users, going

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to replacement models, now people want expensive, high quality

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devices, Lenovo has fallen out. So, did the acquisition of Motorola

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verdant -- burden Lenovo? It was seen as an addition bite Lenovo has

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struggled to integrate the Moto brat into its portfolio. They have three

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brands into its wing. -- as an addition to Lenovo. Without clear

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focus, without a clear brand and no key volume driver, Lenovo has

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suffered. So what has made Lenovo's personal computer is still relevant

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in this highly competitive space? Lenovo has been able to maintain the

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momentum it gained after the IBM acquisition and created quality

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products, especially PCs and notebooks. It is also working hard

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in terms of innovation, for example recently with the double

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touchscreen. And, briefly, we have seen a clash between the Chinese and

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the Americans under the Trump administration - good operations and

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ambitions end America be under threat? -- could. It is too early to

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say for now but for Lenovo we still expect it to see a very healthy

:06:25.:06:28.

business in the Americas. It has a very strong brand, its channel is

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very established, and as a result even if there is a big change to

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Trump's trade policy, that would only be in the long run.

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Global businesses such as Lenovo might be affected by proposed border

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taxes in the US if President Trump goes ahead with the initiative but

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American resale giants such as Target and Gap are concerned, they

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are waiting in on the plans. Let's have a look at what is at stake.

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-- weighing in. It is good to have you here, thank

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you very much. Good job. Thank you. So, we will go around the room a

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little bit... The best opportunities to really impact our economy...

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Commuters in India's capital Dehli have struggled to get to work this

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last week with a driving strike at the country's two mean right hailing

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services Uber and Hola. Our correspondent reports.

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Thousands of drivers in Delhi two mean right hailing apps Hola and

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Uber are on strike and that has brought parts of the capital to a

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standstill. Most drivers have stopped taking bookings via the

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smartphone apps which connect them with nearby passengers.

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Attempting to book a ride on either app and both say no cars are

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available. In some places where they are available the waiting time has

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increased from 30 minutes up to one Allah and this shows a surge in in

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pricing because of increased demand. Many Indian drivers work for both

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companies to make sure they get enough work but as the number of

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drivers signing up has increased, they say that minimum fares and

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other incentives have been cut, making it hard to earn a living --

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hours. TRANSLATION: The car firms promised us pick things. The

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incentives have reduced. They also take a bigger commission now.

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TRANSLATION: Like many others, I took out a loan to buy a new car on

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the guaranteed high monthly earnings. Now I am struggling to

:09:10.:09:16.

repay my debts. I now have to work long hours to pay my loan. Ola is

:09:17.:09:27.

working with the government to solve the issue. The firm has turned to

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the courts for help. We received an order from the Delhi High Court

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which stops anyone from disrupting operations from Uber across India

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and we have urged authorities to make sure they are able to endorse

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those orders, which will enable drivers to go back online and start

:09:45.:09:48.

serving riders again. The real problem is that for both right

:09:49.:09:51.

hailing companies there is pressure to keep the rates down as they

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battle it out in the market, which is thought to be worth about $12

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billion, and, as they squeeze on prices, the drivers are trying to

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unionise. This is the first sign of them flexing their muscles. Whoever

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wins the state of, for commuters of the weight to hail a cab has just

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got longer. A look at the markets, and not an

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exciting start to Asian equities, Tokyo stocks opening flat despite

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rallies on Wall Street overnight to record highs. Despite optimism about

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the market. Thank you

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