05/02/2014

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:00:00. > :00:00.in September's referendum would increase costs for the company. Now

:00:00. > :00:19.on BBC News all the latest business news live from Singapore. Microsoft

:00:20. > :00:29.installs a new chief executive and chairman. The politically sensitive

:00:30. > :00:42.rice scheme in Thailand is dealt a blow after a major contract. Roof.

:00:43. > :00:47.We begin in Silicon Valley where a long anticipated changing of the

:00:48. > :00:52.guard has taken place at Microsoft. Company insider Satya Nadella has

:00:53. > :00:57.been tapped as the third ever CEO of the company. He joins the software

:00:58. > :01:02.manufacturer -- joined the software manufacturer more than two decades

:01:03. > :01:09.ago. He led various businesses in Microsoft before being given the big

:01:10. > :01:13.job. Microsoft founder, Bill Gates, is stepping aside as well as

:01:14. > :01:18.chairman to become a technology adviser to the company. John

:01:19. > :01:27.Thompson, a director who led the CEO search, will take over from Mr

:01:28. > :01:30.Gates. I asked the founder of a major technology website about how

:01:31. > :01:36.the tech world was receiving this change. A lot of shareholders wanted

:01:37. > :01:42.somebody who could shake up Microsoft, from the outside. That is

:01:43. > :01:47.why there was so much excitement about the Ford CEO coming in and

:01:48. > :01:50.taking a fresh look at Microsoft. Shareholders are disappointed with

:01:51. > :01:54.the notion of one of the tenants of Steve Ballmer taking over the job. A

:01:55. > :02:00.lot of investors were looking for that. Satya Nadella is not widely

:02:01. > :02:05.known in the tech world. What are your sources tell you about him? She

:02:06. > :02:11.is very well respected and that the company. In the tech world he is not

:02:12. > :02:17.a household name at this point. She is a quiet but strong individual. He

:02:18. > :02:21.has a lot of principle and, according to people who worked with

:02:22. > :02:27.him, we'll look at the data and not be afraid of bold decisions. He

:02:28. > :02:31.needs to translate that respect into the broader world and the stock

:02:32. > :02:40.market. Many analysts are saying that it will basically be three

:02:41. > :02:45.people running the company. The big question is, will Satya Nadella be

:02:46. > :02:50.allowed to make the transformative change is that Microsoft needs at

:02:51. > :02:56.the product and people level? The fact that you have seen John

:02:57. > :03:01.Thompson, rise so quickly to the role of chairman speaks to the fact

:03:02. > :03:07.that he at least will be willing to give the new CEO a long leash to

:03:08. > :03:10.make potential changes. Bill Gates being there is more the product

:03:11. > :03:15.side. She will be willing to make changes, given the struggles that

:03:16. > :03:20.Microsoft has had, particularly on smartphones and tablets. That

:03:21. > :03:27.extent, we will see change. It will not be radical change. Over time,

:03:28. > :03:34.you will see Satya Nadella make his own mark on the company. In other

:03:35. > :03:41.business News, shares of Panasonic surged more than 50% after posting

:03:42. > :03:46.stronger than expected earnings. The Japanese electronics maker said that

:03:47. > :03:56.its quarterly profit tripled to $3.4 billion. The stock price of Sony,

:03:57. > :04:01.rose on reports that it will sell its computer division. Its shares

:04:02. > :04:13.gained 8% in trade at Tokyo. That is a one-week high. Please do not

:04:14. > :04:17.worry. The commerce Ministry is trying its best. Those are the words

:04:18. > :04:20.of a government minister in Thailand on Tuesday as he announced that

:04:21. > :04:24.China has cancelled the contract to buy more than 1 million tonnes of

:04:25. > :04:30.rice. The deal would have been the first stage of a much bigger sale,

:04:31. > :04:33.but Thailand's entire rice subsidy scheme is being investigated by the

:04:34. > :04:43.corruption commission. The political turmoil is no close to being

:04:44. > :04:45.resolved. For more than two years, Thai farmers have been able to sell

:04:46. > :04:50.the entire rice crop to the government for a guaranteed price.

:04:51. > :04:54.It has been an understandably popular policy with them. But it has

:04:55. > :05:01.left the government holding an immense and growing rice Mt. It is

:05:02. > :05:05.estimated at more than 15 million tonnes. It has proved hard to sell

:05:06. > :05:09.overseas without making a huge loss. When I met the minister in charge of

:05:10. > :05:14.the rice scheme, I asked him if he was having any success in unloadings

:05:15. > :05:22.the rice. We have been doing pretty well lately. At the beginning, we

:05:23. > :05:29.may have had a problem but that was only a short time and it has now

:05:30. > :05:35.been moving quite well. We are still doing the normal sales. Which were

:05:36. > :05:43.selling at a lower price? You have to look at this. With this kind of

:05:44. > :05:49.programme, you need a budget. You may say, this is the loss. But even

:05:50. > :05:53.the skin of the last government, they provided a budget for this. The

:05:54. > :06:02.amount of the subsidy is not that high. Really? Do you actually know

:06:03. > :06:11.how much this rice scheme has cost? Can you put a figure on it? We have

:06:12. > :06:20.accounts year by year, but we do not know exactly. We can estimate. The

:06:21. > :06:26.amount of money, the subsidy, what you're calling a loss, it is not

:06:27. > :06:30.very different. At a time, he was still in talks with China to explore

:06:31. > :06:35.a million tonnes of rice at an undisclosed price. There was a hope

:06:36. > :06:41.of selling a further 6 million tonnes. That deal would help to

:06:42. > :06:46.reduce the stocks and feel hole in the budget. Now it has fallen

:06:47. > :06:51.through. This leaves the government with few options for paying farmers

:06:52. > :06:55.for the last crop in October. Until Parliament reconvenes it has limited

:06:56. > :06:59.powers to raise funds. Angry, unpaid farmers have been protesting by

:07:00. > :07:03.blocking roads. Some have even joined the anti-government movement

:07:04. > :07:13.in Bangkok. Critics now believe that the government will have to abandon

:07:14. > :07:19.the rice scheme. Thailand can only then recover its previous reputation

:07:20. > :07:23.as a benchmark for quality. Car sales in India have dipped for the

:07:24. > :07:28.first time in over a decade last year. The entire industry is feeling

:07:29. > :07:32.the effects. India is holding one of the biggest auto Expo is holding one

:07:33. > :07:37.of the biggest auto expos in Asia, it is worth asking if the sector can

:07:38. > :07:44.come out of this slump? Trying to get back into the spotlight, these

:07:45. > :07:56.are the first new cars from the major motoring companies in nearly

:07:57. > :08:06.four years. Sales at Tata fell more than at any of its rivals. This was

:08:07. > :08:08.the ultra cheap, small car that Tata Motors created and which were

:08:09. > :08:15.supposed to revolutionise the industry. What it has disappointed

:08:16. > :08:20.since its launch. The current -- the company now wants to change its

:08:21. > :08:25.strategy. If you look at the demographic of the buyers, we are

:08:26. > :08:29.seeing more younger buyers. Cheap is not what they are looking for.

:08:30. > :08:34.They're looking for the right value, something that enhances their

:08:35. > :08:40.identity. We are repositioning the brand, and targeting those younger

:08:41. > :08:45.buyers. And it is not just Tata Motors. Every other car maker in the

:08:46. > :08:51.country is trying to tempt the consumers in a market down 10%.

:08:52. > :08:54.Customers are hardly walking into the showrooms these days. Borrowing

:08:55. > :09:01.has become more expensive in the last couple of years. But about two

:09:02. > :09:05.thirds of all cars in India are being sold on loans. Higher

:09:06. > :09:13.borrowing costs mean that purchasing decisions are being delayed. But the

:09:14. > :09:20.market is not uniformly bad. Foreign firms like Ford are sitting on

:09:21. > :09:28.months of orders. Launching a new prototype of the existing compact

:09:29. > :09:33.car, the company says that getting India right is crucial for its

:09:34. > :09:39.success. Our investments are on track. We are investing $2 billion

:09:40. > :09:43.into India, 1 billion of which is for a factory facility. That will be

:09:44. > :09:49.operational by the end of this year. There is great potential. While the

:09:50. > :09:54.urban roads of India may be struggling with traffic jams, there

:09:55. > :10:00.are millions of people still looking to buy their first car. So carmakers

:10:01. > :10:05.in the third watermark at in Asia, are hoping that the auto show will

:10:06. > :10:13.drive interest and sales to help change the fortunes of the

:10:14. > :10:19.industry. In the markets, after a strong start, the rally has fizzled.

:10:20. > :10:27.Sentiment is mixed, following a rise in Wall Street. Hong Kong is lower.

:10:28. > :10:29.Australia is also in negative territory as the Australian dollar

:10:30. > :10:36.continues to gain.