Browse content similar to 16/03/2017. Check below for episodes and series from the same categories and more!
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National Insurance contributions - a week after announcing the policy | :00:00. | :00:00. | |
two interest-rate hikes in three months. The Central Bank of the US | :00:00. | :00:24. | |
increases rates again. We look at the Asian impact. And some parents | :00:25. | :00:31. | |
are paying pretty penny for their child's cream of being a beauty | :00:32. | :00:37. | |
pageant queen. -- dream. Good morning, Asia. A low, world. | :00:38. | :00:43. | |
Thursday, Asia Business Report. I'm Rico Hizon. We start off with | :00:44. | :00:49. | |
America's Central Bank and the Federal Reserve has raised the cost | :00:50. | :00:55. | |
of borrowing by 0.25%, the second in three months and it is a | :00:56. | :01:00. | |
confirmation that the Fed is a fairly upbeat view of the economy. | :01:01. | :01:04. | |
Here is what Janet Yellen had to say. We are closing in on our | :01:05. | :01:10. | |
employment objective, coming closer with the inflation objective and as | :01:11. | :01:14. | |
we read those objectives, particularly in light of the fact | :01:15. | :01:20. | |
that we see the risks of the outlook is roughly balanced at this point. | :01:21. | :01:24. | |
That has been our assessment that the last several meetings. It looks | :01:25. | :01:30. | |
to us to be appropriate to gradually raise the Federal funds rate back to | :01:31. | :01:36. | |
the direction of neutral. That rate hike pumping up US stocks overnight, | :01:37. | :01:43. | |
the Dow gaining 112 points on the NASDAQ higher by 43. What kind of | :01:44. | :01:48. | |
impact on Asian financial markets? We're joined now by our very own a | :01:49. | :01:58. | |
submission is correspondence. -- our very own business correspondence. | :01:59. | :02:03. | |
How is this impact in the markets? The immediate impact we have seen | :02:04. | :02:08. | |
both from the US rate rise overnight and Hong Kong's subsequently is that | :02:09. | :02:13. | |
shares in Hong Kong are up. I think the explanation is the US, even | :02:14. | :02:19. | |
though it raised interest rates last night, it signalled it will not | :02:20. | :02:24. | |
raise them as quickly as many in the market had anticipated. Gradual rate | :02:25. | :02:29. | |
rises. Something investors in Asia are taking a sense of relief from | :02:30. | :02:34. | |
because they can be prepared and that is the key phrase for the day, | :02:35. | :02:37. | |
being prepared and this is something that will happen gradually, based on | :02:38. | :02:41. | |
how the US economy is going to do over the next couple of years. This | :02:42. | :02:47. | |
rate rises having various effects on regional markets. Japan is down, | :02:48. | :02:52. | |
Australia is up because of higher oil prices. Apart from Hong Kong, | :02:53. | :02:57. | |
which other central banks could follow the same trend as the Fed? | :02:58. | :03:04. | |
Hong Kong follows what the Fed does because the Hong Kong dollar is | :03:05. | :03:08. | |
pegged to the US dollar but if you look at the major meetings that are | :03:09. | :03:12. | |
taking place today, you have a decision due from Indonesia's | :03:13. | :03:16. | |
Central Bank and the Bank of Japan making a decision. I don't expect | :03:17. | :03:22. | |
either of them to come out with any of -- any sort of dramatic shift in | :03:23. | :03:26. | |
policy because even though we have seen the Fed raise rates people will | :03:27. | :03:32. | |
take a wait-and-see attitude to this sort of thing. Will they raise rates | :03:33. | :03:37. | |
in June? Not entirely clear. The other thing is that the reason that | :03:38. | :03:44. | |
the Nikkei has fallen, the Japanese yen has strengthened which is bad | :03:45. | :03:49. | |
for Japanese exporters. What about the impact on China? It's been | :03:50. | :03:55. | |
slowing down and of course, their currencies. China is the big | :03:56. | :04:03. | |
standout, the?. It is in a tricky position because the yuan has been | :04:04. | :04:07. | |
weakening and when money flows out of Asia, because interest rates in | :04:08. | :04:11. | |
the US -- the US are getting higher and yielding more returns for | :04:12. | :04:15. | |
investors, that puts pressure on a sink currencies including the yuan. | :04:16. | :04:23. | |
-- Asian currencies. The central Chinese bank is stuck in a difficult | :04:24. | :04:27. | |
position, will they boost rates to strengthen the yuan or do they do | :04:28. | :04:31. | |
nothing? That is the key question going forward. Thank you very much | :04:32. | :04:37. | |
for your insight, Karishma Vaswani, our Asia business correspondence. | :04:38. | :04:40. | |
Now to US President Donald Trump who was in Detroit, known as the | :04:41. | :04:45. | |
automobile capital of America. He was talking about jobs in the auto | :04:46. | :04:49. | |
industry and met up with executives and union officials but what is | :04:50. | :04:54. | |
getting a lot of attention is the presidential order to review fuel | :04:55. | :04:58. | |
efficiency standards put in place by the previous administration. | :04:59. | :05:06. | |
Another campaign style event for a president who has been in office | :05:07. | :05:13. | |
almost two months. This is the first time Mr Trump has come to Detroit | :05:14. | :05:17. | |
since his election win. Now he's back to deliver on some of his | :05:18. | :05:21. | |
promises. My administration will work tirelessly to get rid of the | :05:22. | :05:28. | |
industry killing regulations, lower job crushing taxes and ensure a | :05:29. | :05:32. | |
level playing field for all American companies and workers. For motor | :05:33. | :05:39. | |
city, that means addressing fuel efficiency standards, originally put | :05:40. | :05:44. | |
in place by the Obama Administration, American car | :05:45. | :05:47. | |
manufacturers were being forced to make an entire fleet of cars that | :05:48. | :05:51. | |
make these lower emissions requirements. President Trump has | :05:52. | :05:55. | |
promised to review these rules. We are going to ensure that any | :05:56. | :05:59. | |
regulations we have protect and defend your jobs, your factories. We | :06:00. | :06:05. | |
are going to be fair. But it's hard to see how these particular | :06:06. | :06:10. | |
regulations have hurt America's auto industry which has been renting in | :06:11. | :06:12. | |
high gear with record sales for the high gear with record sales for the | :06:13. | :06:17. | |
last two years. When you look at the record sales they have and the | :06:18. | :06:20. | |
record profits they have in the fact that you already have cars on the | :06:21. | :06:24. | |
road now that meet these 2025 standards, I think the industry has | :06:25. | :06:30. | |
shown it can meet and improve the standards. The industry has shown it | :06:31. | :06:35. | |
can innovate and make the kind of targets that are laid out in the | :06:36. | :06:39. | |
current rules. President Trump is trying to show that he can bring | :06:40. | :06:43. | |
jobs back to America by cutting some of the costs of doing business but | :06:44. | :06:49. | |
on Wednesday, he was short on specifics, stating only that those | :06:50. | :06:51. | |
regulations were up for review. The business of beauty pageants in | :06:52. | :07:00. | |
Asia might not be as jawdropping moneywise it is the -- as it is in | :07:01. | :07:05. | |
North America but it's still a business and one that costs families | :07:06. | :07:10. | |
money. For the latest in our series, we meet a tiny international | :07:11. | :07:13. | |
competitor and a former child star who share with is how pageants | :07:14. | :07:15. | |
shaped them. I have to do a lot of research and | :07:16. | :07:47. | |
they say, talent, and I have to find a talent the port to perform, | :07:48. | :07:55. | |
costume and everything. -- for her to perform. I will get a | :07:56. | :07:58. | |
professional before the time so one month before, I will get a | :07:59. | :08:04. | |
professional catwalk to train her fall once a week. Other than | :08:05. | :08:12. | |
costume, we always order from the US who specialise in pageant costume. | :08:13. | :08:17. | |
This is my favourite dress. It's pink and there are buckles on it. | :08:18. | :08:24. | |
And look at this. It's so cool. When you move anywhere, it will follow | :08:25. | :08:26. | |
you. That is why I like this. When I went to compete in the | :08:27. | :08:51. | |
States, a lot of the diamonds, the crowns, the sashes, all the | :08:52. | :09:00. | |
beautiful dresses, came from the US. I wish nothing but the best for | :09:01. | :09:10. | |
you... There are people monitoring what you are saying to people. There | :09:11. | :09:15. | |
are people telling you what to do it each time you go on stage, where you | :09:16. | :09:24. | |
walk. Eventually, he became kids to justice and to instructions. Which | :09:25. | :09:31. | |
girl doesn't want to be a princess? I'm not sure how much I spend. | :09:32. | :09:37. | |
Whatever she wants, to do something and it's a benefit to her and me, | :09:38. | :09:48. | |
why not? It's an investment. The business of kids beauty pageants. | :09:49. | :09:53. | |
Now let's have a look at the markets. As you can see on your | :09:54. | :10:01. | |
screens, currently a mixed bag with the Nikkei down and that is because | :10:02. | :10:05. | |
of the strength of the Japanese yen against the US dollar which is | :10:06. | :10:08. | |
having an impact on exporters. The Hang Seng Index gaining a hefty 309 | :10:09. | :10:13. | |
points after the de facto Central Bank of Hong Kong raised the cost of | :10:14. | :10:22. | |
borrowing in tandem with the US Fed. Rising oil prices helping the All | :10:23. | :10:28. | |
Ordinaries Index -- index. Thank you so much for investing your time with | :10:29. | :10:33. | |
us. Have a wonderful birthday, I am Rico Hizon, thank you for joining | :10:34. | :10:35. | |
us. The Dutch Prime Minister Mark Rutte | :10:36. | :10:43. | |
has claimed victory in prime ministerial | :10:44. | :10:44. |