17/02/2017 Asia Business Report


Download Subtitles

SRT

ASS


17/02/2017

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 17/02/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

54% voted against the agreement, negotiated

:00:00.:00:00.

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

:00:00.:00:13.

Samsung's boss is formally arrested as prosecutors investigate his role

:00:14.:00:19.

in a bribery scandal. And Facebook founder Mark Zuckerberg calls for

:00:20.:00:30.

every -- a reboot to globalisation. Good morning, Asia and hello, world.

:00:31.:00:38.

Thanks for joining us. Samsung's acting chairman JY Lee was arrested

:00:39.:00:46.

earlier this morning after a court granted prosecutors decision to do

:00:47.:00:51.

so. The prosecutors have said there is new evidence against Mr Lee, as

:00:52.:00:56.

they investigate his role in a major corruption scandal in connection to

:00:57.:01:02.

the president Park Geun-hye. In a statement, Samsung says the company

:01:03.:01:05.

will do its best to ensure that the truth is revealed in court.

:01:06.:01:12.

An expert in Seoul says the arrest is significant.

:01:13.:01:19.

It means that the prosecution have convinced the judge here that there

:01:20.:01:26.

is enough evidence against Jay Y Lee, to the extent that the

:01:27.:01:31.

prosecution should be able to win a conviction against him in court when

:01:32.:01:36.

it comes to trial. That's the prosecution's contention and they

:01:37.:01:41.

have found a judge who agrees it is reasonable and has issued the

:01:42.:01:48.

warrant. That has put Jay Y Lee in jail and presumably he will stay

:01:49.:01:50.

there until the trial process begins. Will prosecutors make sure

:01:51.:01:59.

there is no way out for Jay Y Lee? They filed so many charges against

:02:00.:02:03.

him, from hiding the proceeds of a criminal act, bribery, embezzlement,

:02:04.:02:08.

hiding funds overseas and perjury. Could this lead to more arrests of

:02:09.:02:12.

other conglomerate bosses down the road? That's a good question and

:02:13.:02:17.

absolutely it can and may well, because Samsung of course was not

:02:18.:02:26.

the only Korean business group to have made donations to the two

:02:27.:02:30.

foundations that are at the crux of this political scandal that has

:02:31.:02:35.

involved the impeachment the president. Will the billionaire heir

:02:36.:02:44.

of Samsung, with him now behind bars, could this throw the Samsung

:02:45.:02:51.

group into turmoil? It could because he has been the CEO... I realised

:02:52.:02:55.

his title is vice-chairman, at his father has been in a coma for

:02:56.:03:00.

several years, and so effectively Jay Y Lee has been the chief

:03:01.:03:05.

executive of the Samsung group. So there's obviously crucial business

:03:06.:03:10.

decisions involving the principal units of the group. Samsung

:03:11.:03:14.

Electronics and its associated companies in particular. But the

:03:15.:03:24.

settlements of the group's structure is not yet complete either. But have

:03:25.:03:29.

a quick look at the stock rise. Investors aren't reacting too badly.

:03:30.:03:36.

Shares in Samsung opened lower, but not by much. One share jumped by

:03:37.:03:42.

more than 8%, a company headed by the sister of Jay Y Lee. It appears

:03:43.:03:47.

some investors are expecting the sister to play a big role in the

:03:48.:03:51.

company. Staying with South Korea and wants a shipping giant, and Jim

:03:52.:04:03.

will file for bankruptcy. The debt the past five billion dollars, US. A

:04:04.:04:11.

slowdown in the global economy and trade were cited as the main reasons

:04:12.:04:15.

for Hanjin's downfall. The owner of Snapchat has confirmed

:04:16.:04:23.

there has been a lot of excitement around the company, as there often

:04:24.:04:30.

is for technology stocks, but Snapchat values itself as $22

:04:31.:04:37.

billion, significantly less than the previous estimates. So what are

:04:38.:04:39.

investors concerned about? Let's take a look.

:04:40.:04:47.

Snapchat launched in 2012 as an app that allowed users to send photo

:04:48.:04:53.

messages that disappeared after a certain time. It rebranded as Snap

:04:54.:05:04.

in 2016. The service appeals to a user base in their teens and early

:05:05.:05:08.

20s. It has over 150 million daily active users. Snap derives its

:05:09.:05:15.

income mostly from advertising. Last year's revenue was $404 million. But

:05:16.:05:21.

the company made a net loss of over $514 million. Investors may have to

:05:22.:05:28.

stick around a lot longer than a snap that message if they are to

:05:29.:05:37.

make a gain on its shares -- Snapchat.

:05:38.:05:40.

Staying with social media, the founder of Facebook says he fears

:05:41.:05:45.

millions of people are withdrawing from the globally connected world in

:05:46.:05:49.

part because of they use. It is unusual for him to speak out this

:05:50.:05:53.

way. Our economic editor explains what he told him. He told me in the

:05:54.:05:59.

BBC's interview with Mark Zuckerberg that he didn't want to be a

:06:00.:06:04.

politician. Not now, he said. He didn't say not ever. But I think he

:06:05.:06:10.

is the leader of one of the biggest businesses in the world. Frankly he

:06:11.:06:14.

is probably as influential as he is going to be as a politician, leading

:06:15.:06:19.

Facebook. What's interesting about what he called me at what he has put

:06:20.:06:24.

out in his 5500 word Post on Facebook tonight is that he talks

:06:25.:06:29.

about globalisation, as you've said, and they can use, but he talks about

:06:30.:06:34.

people not getting upset. -- fake news. But fighting back. He says the

:06:35.:06:40.

way to fight that is billed collective miss across borders,

:06:41.:06:43.

bring down barriers. What an opposite tone to the tone of

:06:44.:06:48.

President Trump. He was very careful with me not to bite on any of my

:06:49.:06:53.

questions about Donald Trump doesn't agree with you, are you going to

:06:54.:06:57.

meet Donald Trump? He famously didn't go to the roundtable that

:06:58.:07:02.

many tech leaders went to, but nevertheless it gives an alternative

:07:03.:07:09.

view. Thousands of words, well thought through, whatever you might

:07:10.:07:11.

think about the legitimacy of someone like Mark Zuckerberg talking

:07:12.:07:17.

about this. It was a well thought through 5500 word piece of work and

:07:18.:07:22.

in the present environment it certainly will be seen as an

:07:23.:07:25.

alternative manifesto to what we're hearing from the White House. You

:07:26.:07:29.

can read the interview in full on our website. While the Facebook

:07:30.:07:37.

founder may not want to comment on President Trump's policies, his

:07:38.:07:42.

protectionist rhetoric has put Asia on edge. I ask someone from APEC if

:07:43.:07:48.

he agrees with Mr Zucker the's view on globalisation. -- with Mark

:07:49.:07:57.

Zuckerberg's. Traditional trade slowed right down, although the

:07:58.:08:02.

outlook for the next year or so is probably improving. Services trade

:08:03.:08:07.

is where it is. Although trade has slowed down, as you mentioned, there

:08:08.:08:11.

is a lot of concern that even with globalisation this hasn't really

:08:12.:08:16.

filtered down to the people, especially to the masses. Well, I

:08:17.:08:22.

will be off in a week to Vietnam and we will have the first meeting for

:08:23.:08:27.

APEC in a year. They are one of the lowest income economies in APEC and

:08:28.:08:31.

they've been doing well out of globalisation, as have many other

:08:32.:08:39.

economies. So half a billion people isn't anything to scoff at. We've

:08:40.:08:43.

seen some countries pushing their populist policies. It seems there is

:08:44.:08:47.

a head-on collision between globalisation and protectionism.

:08:48.:08:51.

This free trade and open markets, has this been the cost of the

:08:52.:08:56.

discontent and the popularity of popular reason? I think

:08:57.:09:01.

globalisation has been labelled as part of the problem, we are talking

:09:02.:09:05.

about automation, migration and other things. But actually when APEC

:09:06.:09:09.

leaders talked about all of this, as they did a month or so ago, they say

:09:10.:09:14.

they are continuing down this path. We think there are big games to

:09:15.:09:19.

come, but we know we haven't communicated well and we need to do

:09:20.:09:22.

that better and talk about the winners and losers, not just talking

:09:23.:09:31.

about Peru and alpaca. How will this play out going forward? We will have

:09:32.:09:36.

to pay much more attention to what the impacts are of a lot of trade

:09:37.:09:41.

agreements and improvements in getting services and small business

:09:42.:09:45.

into the trade arena. A lot of that will help people at the bottom of

:09:46.:09:49.

the pile, not just at the top. Briefly, what is likely to the BP?

:09:50.:09:54.

Will Japan lead it or build China? -- TPP. A bunch of things could

:09:55.:09:59.

happen. In one month Chile will have a meeting of TPP leaders without the

:10:00.:10:06.

US, but with China and Korea. If that goes ahead that could change

:10:07.:10:09.

things a bit. Now let's have a look at the

:10:10.:10:14.

markets. Asia is slipping into negative territory. That is due to

:10:15.:10:18.

the weakness on Wall Street overnight. We are also watching how

:10:19.:10:24.

Singapore will open after its fourth-quarter economic growth was

:10:25.:10:27.

revised higher. Thanks for investing your time with us. Bye for now.

:10:28.:10:35.

The top stories this hour: President Trump lashes out

:10:36.:10:38.