13/03/2017 Asia Business Report


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13/03/2017

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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the UK will be prepared if it has to leave

:00:00.:00:00.

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

:00:00.:00:10.

With the president forced out of office, what challenges lie ahead

:00:11.:00:16.

for the South Korean economy? And how the secrets of how to succeed in

:00:17.:00:21.

business could lie in a bit of horseplay.

:00:22.:00:31.

Hello and welcome to this Monday edition of Asia Business Report, I'm

:00:32.:00:34.

Sharanjit Leyl. Within the next two months South Korea will have a new

:00:35.:00:37.

president and that President will have a raft of economic challenges

:00:38.:00:43.

to deal with, the worsening of relations with China over a missile

:00:44.:00:47.

defence system is a big worry and what will candidates for the top job

:00:48.:00:50.

have to say about giant conglomerates like Samsung, so tied

:00:51.:00:55.

up in the corruption scandal that brought down Park Geun-hye? The

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disgraced leader left the presidential house on Sunday, two

:00:59.:01:02.

days after a court dismissed her of a corruption scandal. What will the

:01:03.:01:06.

next couple of months looked like for South Korea politically and

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economically? Here's the view our analyst.

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There's a lot of moving parts at the moment, the candidates, the leading

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candidates for the election, they have said they will hold that by the

:01:19.:01:23.

ninth of May, that's a positive outcome straightaway from the

:01:24.:01:30.

Electoral Commission. The leading candidate, Mr Moon, he is very much

:01:31.:01:35.

a reformer, so he is very much about appeasing North Korea and also

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actually taking a close look between these conglomerates and their cosy

:01:40.:01:43.

Wallacia ships with the government. He's quite a reformist. So a role I

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guess you could say it's positive for South Korea in the bigger

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picture. In terms of the Korean won, where is it headed, there are

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concerns they might be labelled a currency manipulator by the

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Americans. This is the thing, nobody is pricing into Asia this year so

:02:01.:02:08.

far, I think that the secretary would be ready by early April with

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regards to labelling or not labelling countries currency

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manipulators. If China is in that list then South Korea will either be

:02:15.:02:18.

number two or three on the list in all honesty. This is something that

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could impact on the won later on in the year. Definitely the trajectory

:02:23.:02:26.

of US interest rates with regards to the Federal Reserve will also have

:02:27.:02:30.

its impact as well. I would expect to see the won gradually weakening

:02:31.:02:34.

over the next couple of months. Very briefly, you talk about the

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potential front runners, the likes of Mr Moon and others, how will that

:02:40.:02:44.

impact the cosy relationship we are seeing with the South Korean

:02:45.:02:46.

government and the huge conglomerates? The head of Samsung

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is actually on trial now, being involved with the ex-president Park

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with corruption charges. That will lay down a marker for the behaviour

:02:57.:03:01.

going forward but definitely he is a very strong reform agenda person

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with regards to relations with the companies. The proof is in the

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putting, it could be easier said than done.

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Jeffrey Hayley. In other business news, King Salman of Saudi Arabia

:03:13.:03:16.

has arrived in Tokyo at the start of the first visit to Japan by a Saudi

:03:17.:03:20.

monarch for nearly 50 years. Japan hopes to use the visit to broaden

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its relations with Saudi Arabia and help the Kingdom's effort to

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diversify its heavily oil dependent economy. Banking giant HSBC has

:03:30.:03:34.

appointed Mark Tucker, the current CEO of Asian insurer AIA is group

:03:35.:03:40.

chairman. He will take over on the first of October, succeeding Douglas

:03:41.:03:44.

Flint, who had been in the role since 2010. He was there for seven

:03:45.:03:50.

years and he oversaw the insurer's expansion in Asia. HSBC is the

:03:51.:03:55.

European biggest bank but the bulk of profits are generated in Asia.

:03:56.:04:00.

Iceland will lift capital controls on its citizens' businesses and

:04:01.:04:05.

pensions funds from Tuesday. Capital controls like restrictions on money

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flowing out were imposed after Iceland's three biggest banks

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collapsed in 2008. The government now thinks the economy has recovered

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sufficiently to end those controls. For a look ahead at what's coming up

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over the next two days, we will start with Toshiba and they are due

:04:22.:04:24.

to publish their delayed earnings results from April to December on

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Tuesday. This was originally June in February. Next up we have the US Fed

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they are exacted to make their decision on interest rates on

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Wednesday, and that will be Thursday morning in Asia with the prospects

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of a rate hike looking fairly likely.

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We have the US Secretary of State, Rex Tillerson, he is heading to Asia

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this week and he will be viewing traditional airlines in Tokyo and

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Seoul before going on to Beijing. And finally, China will take centre

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stage on Wednesday when the National People's Congress comes to a close.

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For a closer look at the week ahead, earlier I spoke with Paul from a

:05:03.:05:06.

bank and first asked what he was expecting.

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Expectations have shifted a little bit to the chance they will delay

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again. If they miss this earnings reporting released they could go

:05:15.:05:18.

another big business days. It looks like the most likely scenario, they

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have a roughly $6 billion hole to fill with Westinghouse. The problem

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is if they go Chapter 11 with Westinghouse it opens up other

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concerns with respect to loan guarantees in the US, performance

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guarantees with respect to some of their plants. Chapter 11 doesn't

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solve as many problems as you might think. There is a likelihood they

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will delay. Moving on US interest rates, will they go up as everyone

:05:46.:05:49.

thinks? Market has given them 100% of a chance, it is as closely priced

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in as I've seen for a long time. How much? They will go .25 basis points,

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they won't want to go more than that. Certainly the Federal Reserve

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have a delicate balancing act with rogue guards to the currency, they

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don't watch it as far as their mandate but given what's going on

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around the world they have to be aware of how currencies will affect

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things, especially in the region, with China. -- with regards to. Rex

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Tillerson in Asia, he is headed to China but then he is also going to

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visit traditional airlines in Japan and South Korea, what is he

:06:27.:06:30.

expecting? That's a good question, we haven't heard much from the State

:06:31.:06:33.

Department since Tillerson took over. If you're in Japan you expect

:06:34.:06:38.

a reconfirmation of the security arrangement, in South Korea you

:06:39.:06:42.

expect more than that in terms of dealing with North Korea and in

:06:43.:06:45.

China I'm hoping at least we don't get something from the currency

:06:46.:06:51.

side, which we could have with Manu chimp at the G20. There's things

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with the security in the region but also trade. It's a blank slate

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because we don't see Tillerson in many press conferences. China and

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the closing of the People's Congress, any surprises? The words

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that come out to me our stability and flexibility.

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Paul Burt and. It may sound like forcing around but some experts say

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these animals can teach us a thing or two about leading people. -- Paul

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Bertrand. Andrew Froggatt teaches key leaders ship skills to chief

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executives, coaches and managers by showing them the right way to deal

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with horses. The horse whisperer turned management trailer told us

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how. -- leadership. We set ourselves up as the boss, I'm

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the leader of the horse, the horses behind me and it is a matter of

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consistency. If I say once to the horse to come close and the next to

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stay back, some people are confused, he is going to be confused if I say

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that. Until it becomes more of a habit it is important to be pretty

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firm. I do a lot of problem-solving, a lot

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of racehorses, starting gates and things like that, big problems. One

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of the things we do is focus on those little things, personal space,

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boundaries, what they are allowed to do and what they can't do and if

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those things are clear than a lot of the bigger issues don't develop. All

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of the biggest people, sport people, business people, they do the little

:08:50.:08:53.

things really well. A lot of people these days get caught up in the

:08:54.:08:57.

bigger picture and where they're heading and the little things get

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lost and if the little things get out of hand then you're never going

:09:03.:09:06.

to get to the big pictures. We used to have 25 horses on the go,

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often we would only get 15 but if 15 were happy and ten weren't then that

:09:11.:09:14.

affects the environment and it is evident in big companies, the boss

:09:15.:09:18.

of 250 might know 50 and the other people don't get much of a look in.

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It's little things going around the office, hello, how are you, even for

:09:23.:09:26.

a minute, making people feel a part of things, it starts to bring people

:09:27.:09:33.

together. Praise is really big. I praise more

:09:34.:09:38.

than most people, I want to really build that strong Wallacia ship, I

:09:39.:09:41.

want people comfortable and want to work with me so I tend to praise all

:09:42.:09:46.

the time and when they have a bad day I tend to ignore them -- strong

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relationship. We talk a lot about that in office situations. Do we

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praise enough? Some might be lacking in confidence, a lot more praise

:09:57.:10:00.

needed to build them up and get them to try and do things other people

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won't do. Others won't need enough but it eventually comes down to

:10:05.:10:09.

knowing who your trying to lead. That was horse whisperer Andrew

:10:10.:10:16.

Froggatt with the Falco in the starring role. Looking at the

:10:17.:10:20.

markets, we can see the Nick Caitlin is currently flat, scaling up a bit,

:10:21.:10:25.

we saw a stronger yen. -- the Nikkei. Hang Seng shares up 1% on

:10:26.:10:32.

the news of the new CEO. That's it, thanks for watching.

:10:33.:10:35.

of South Korea, Park Geun-hye, has finally left her official

:10:36.:10:45.

residence saying the truth will emerge in time.

:10:46.:10:48.