16/03/2017 Asia Business Report


16/03/2017

Similar Content

Browse content similar to 16/03/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

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.

Download Subtitles

SRT

ASS