03/02/2014 Asia Business Report


03/02/2014

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 03/02/2014. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

been charged with the murder of her seven-week old boy. She was -- he

:00:00.:00:00.

died a day after being taken to hospital.

:00:00.:00:00.

Now for all the latest business news.

:00:00.:00:18.

Thailand's collections are disrupted by protesters, leaving millions

:00:19.:00:22.

unable to vote. Will this cost the country into political limbo. As

:00:23.:00:29.

millions celebrate Chinese New Year, we take a look at the investment

:00:30.:00:37.

projections. We start off with Thailand, which

:00:38.:00:43.

held elections on Sunday, despite a boycott from the opposition party.

:00:44.:00:47.

The election commission was unable to tally the result after

:00:48.:00:50.

anti-government protesters forced hundreds of polling stations to shut

:00:51.:00:54.

down. Affecting more than 6 million voters. A new date is expected to be

:00:55.:01:01.

set to pass the ballot. Earlier I spoke with Tony Nash and asked if we

:01:02.:01:06.

could see any resolution to the conflict. The good part is that

:01:07.:01:14.

there was no violence. It was not extreme. We are not looking at the

:01:15.:01:16.

military coup. What the opposition is hoping for is that the

:01:17.:01:23.

Constitution Court comes into the election commission and the close

:01:24.:01:27.

the vote invalid or that the corruption commission proceeds with

:01:28.:01:33.

corruption allegations and prosecution against Yingluck

:01:34.:01:38.

Sinawatra. With those options that you have put on the table, how will

:01:39.:01:46.

investors perceive all of this? They will see things slow down for a

:01:47.:01:50.

while. The best option that people have is that it is a waiting game.

:01:51.:01:58.

They are hoping that protest fatigue sets in. As protest fatigue sets

:01:59.:02:11.

in, that is the best friend. With more political gridlock, as you

:02:12.:02:16.

say, will investors remain on the sidelines, or will they see this as

:02:17.:02:20.

an opportunity to come in and look into the economy and investment

:02:21.:02:29.

opportunities? It depends. There is a milestone that they need to see in

:02:30.:02:35.

the next two weeks. If the corruption commission say that there

:02:36.:02:39.

are going to persecute the government or Yingluck Sinawatra

:02:40.:02:45.

this -- specifically, that milestone first. That is before major action

:02:46.:02:56.

on investment takes place. The airline sector in India has seen

:02:57.:03:01.

a jump in bookings after slashing FS. But it comes at a time when many

:03:02.:03:05.

of the domestic carriers are running at massive losses.

:03:06.:03:15.

Getting up for a holiday. This woman is searching for hotels in goal,

:03:16.:03:18.

where she will be flying for a weekend with a friend. She had no

:03:19.:03:24.

plans are going for a short break. Then she saw that airlines were

:03:25.:03:28.

selling tickets at a huge discount. She could not resist. It was the

:03:29.:03:35.

reason. I would love to go every month, but that is not feasible. If

:03:36.:03:43.

you take a bus or a train, that wastes a time of travelling. The

:03:44.:03:52.

tickets have become expensive. Domestic airlines had a sale

:03:53.:03:55.

offering cheaper tickets for travel between February and April. Online

:03:56.:04:00.

travel portals see that bookings on some routes struggled to in the same

:04:01.:04:06.

period. But can Indian airlines afford to offer tickets at such low

:04:07.:04:13.

prices? In 2013, the combined loss of all domestic Indian airlines was

:04:14.:04:19.

over $1 billion. So why are they offering such huge discounts if they

:04:20.:04:24.

are not making profits? Every year between January-March is the school

:04:25.:04:27.

and university exam season. That means less people are flying. They

:04:28.:04:33.

offering cheaper tickets, airlines hope that they can tempt passengers

:04:34.:04:40.

and fill in more seats. India already has five national domestic

:04:41.:04:49.

carriers. And several airline groups are planning to start flights in

:04:50.:04:56.

India. While it has been growing every year, most Indian airlines are

:04:57.:04:59.

still struggling to make money because of the lower fares, the high

:05:00.:05:05.

taxes and operational costs. Globally, aviation has been a

:05:06.:05:09.

notoriously difficult industry to make money. And squeezing every

:05:10.:05:12.

dollar out of passengers helps the chances. But the recent ticket sales

:05:13.:05:20.

and arrival of new airlines into the market means that India will no

:05:21.:05:25.

doubt see more airfare battle is in 2014. -- battles.

:05:26.:05:32.

Markets in China and Hong Kong remain shut down for the bigger New

:05:33.:05:36.

Year celebrations. It is the year of the horse, according to the Chinese

:05:37.:05:43.

zodiac. Many people will visit an expert to get one's fortune. I spoke

:05:44.:05:49.

to an analyst about the animal index that predicts investment trends. We

:05:50.:05:57.

looked at the Fortune shot of the year. It has a strong presence of

:05:58.:06:03.

fire. We are expecting the market to go strong. So we are producing

:06:04.:06:09.

markets galloping higher. Especially in the first half. It is going to be

:06:10.:06:19.

big run. Which particular companies are going to do well? Sectors like

:06:20.:06:26.

the wood and fire sectors. Companies in fashion, retail, soft commodities

:06:27.:06:35.

and Internet technologies. Which particular companies will

:06:36.:06:42.

underperform? From our perspective, the sector is going to struggle.

:06:43.:06:50.

Companies in property, construction, resources, they should be more

:06:51.:06:57.

cautious. And the report specifically predicts sins are they

:06:58.:07:01.

not only turning on Japan's nuclear power stations, but eventually

:07:02.:07:05.

confirming reports that the nation is pursuing nuclear weapons. How did

:07:06.:07:09.

the index arrived at this conclusion? -- Shinzo Abe A. It is

:07:10.:07:16.

particularly light-hearted predictions. We are predicting that

:07:17.:07:21.

he is going to have a challenging year. It is a wealth of fire

:07:22.:07:34.

element. Fire combined with the gang metal could indicate a new form of

:07:35.:07:38.

energy. We are looking possibly at nuclear. But also from a

:07:39.:07:49.

geopolitical position. Another common sight during the

:07:50.:07:52.

Chinese beer are lion dance groups, which are believed to bless

:07:53.:07:56.

businesses with good fortune. -- Chinese New Year. They are paid as

:07:57.:08:03.

much as $4000 for their services. We caught up with a popular troupe in

:08:04.:08:11.

Kuala Lumpur. The Chinese lion dance brings good

:08:12.:08:16.

fortune to businesses. But over the years they have perfect it into

:08:17.:08:21.

quite an arts. This is one of the top line dance trips in the country.

:08:22.:08:26.

They are going to do some incredible acrobatics. Sitting next to me is

:08:27.:08:31.

one of the lion heads. You can see his pants. A lot of people are very

:08:32.:08:40.

excited and are drawn most specifically to watch this

:08:41.:08:42.

particular performance. Are you excited? Yes. The lion dance is

:08:43.:08:51.

amazing. I hope that I can get an orange. That will bring me good

:08:52.:08:54.

luck. I would not eat it on the spot. The cost of living is going

:08:55.:09:02.

up, Chinese New Year is like Christmas, people spend a lot of

:09:03.:09:10.

money, have you noticed that at all? Somewhat. This year I am spending

:09:11.:09:18.

less than the previous year. It is more towards family time rather than

:09:19.:09:22.

spending money. How much less are you spending? 50%. Have businesses

:09:23.:09:32.

held back on hiring dancing groups? Yes. Every month they cut the

:09:33.:09:49.

budget. This particular performance lasted for about 15 minutes and it

:09:50.:09:53.

cost over $1000. If that sounds like a lot of money, consider how many

:09:54.:09:57.

people they attract just to watch this particular performance. This is

:09:58.:10:01.

also seen as a blessing for all of the businesses in the shopping mall.

:10:02.:10:05.

In this particular year where people are cutting back on spending,

:10:06.:10:09.

businesses want as much luck and fortune as they can get.

:10:10.:10:13.

In the Asian markets, stocks are struggling this Monday after reports

:10:14.:10:17.

over the weekend showed that China's factory growth fell to a

:10:18.:10:23.

low. That is for this edition of the Asia Business Report. The Super Bowl

:10:24.:10:29.

is currently under way. More up next.

:10:30.:10:39.

You are watching BBC News. Here are the headlines: The Oscar-winning

:10:40.:10:46.

actor Philip Seymour Hoffman has been found

:10:47.:10:47.

Download Subtitles

SRT

ASS