12/02/2014 Asia Business Report


12/02/2014

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object in dealing with the flood. 16 severe warnings are in place. Now on

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BBC News all the latest business news live from Singapore.

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We go to the Singapore Air Show to find out more about the first deals

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may -- being made. We kick off with the first

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congressional testimony of Janet Yellen is becoming chair of the US

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Federal reserve. She made it clear to the central bank is on track in

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pulling back in stimulus programme. It will continue to gradually reduce

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the amount of money it pumps into the US economy as long as there is

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no slowdown. US stocks rallied overnight on her statement with the

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Dow Jones and NASDAQ also gaining. Ms Yellin 's comments come despite a

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rocky start to the year that saw a sharp sell-off.

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It has been a little over a week since Janet Yellen was sworn in as

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chair of America's central bank. She is already made the track to Capitol

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Hill. The US has seen some weak economic data. Including some

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lacklustre unemployment numbers. As the weak jobs report caused you to

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consider slowing the pace of the Fed 's tapering? I was surprised that

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the report is in December and January, the pace of job creation

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was running under what I had anticipated. But we have to be very

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careful not to jump to conclusions. The Fed believes that the US economy

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may still be on the path to recovery. The gradual reduction in

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asset purchases is wreaking havoc in emerging markets as investors pull

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money out of the window been watching closely the recent

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volatility in global financial markets. Our sense is that at this

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stage these developments do not pose a substantial risk to the US

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economic outlook. We will, of course continue to monitor the situation.

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The Federal reserve believes it is primary responsibility is to this

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country 's economy. While it is watching very closely what happens

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in emerging markets, unless it negatively affect America's economic

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recovery, we can expect the Federal reserve to stay the course.

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As you had, the House of Representatives have voted to

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suspend the debt limit until March 2015. The move raises the government

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is to avoid a default at the end of the month. The outcome is a victory

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for President Obama who has lobbied for weeks to have the debt ceiling

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reached. Positive reactions from Asian markets regarding Janet Yellen

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's testimony. Currently they are all in positive territory.

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In other business News making headlines, fresh official trade

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numbers from China revealed. The countries exported in January rose

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by just over ten and a half percent compared to last year. That is well

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above most forecast. The Asian giant imports also exceeded expectations,

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growing by 10% and leaving the country with a surplus of $32

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billion. In Australia, one of the big lenders, Commonwealth Bank

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gained 14% to about $3.8 billion. The results of the period came in

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better than analysts expectations. The results show that the bank is

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focused on its long-term priorities. Staying with banking and

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to the UK lending giant, Barclays. It says it is set to cut 12,000

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jobs. The bank has a global staff including teams in Asia. The staff

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cuts come at a time when the bank is increasing its staff bonuses. If

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voters pool is rising by 10% to nearly $4 billion. One of the things

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that we do when we look at bonuses is we have to be competitive on pay

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and we have to pay for performance. We operate in countries from

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Singapore to San Francisco and we compete for talent in global markets

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so we have to be competitive and our judgement was this year, it was

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important that we increase the bogus pull by 10%. The profits are down

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for the reasons that I said. It is in the interest of our shareholders

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that we pay the compensation that we are. People don't understand that?

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Aside our investment, to about businesses have done really well.

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Aaron Baddeley banking division grew by 3%. Our fixed income business was

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down. We have paid for performance as it is aligned with our

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principles. On the surface of it, it raises a

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number of questions at a time when topline and bottom-line numbers are

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down. As you mentioned, Barclays is in the process of transition. A

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transformation. The CEO and board of directors obviously have to get what

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this means for the business. They are trying to grow their business

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and retain staff. He mentioned at one point 2 billion in restructuring

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costs. It is substantially higher. With this mindset there has been a

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lot of backlash against banks and their higher paid since the

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financial crisis in the UK. Do people in financial centres like

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Hong Kong share this feeling? In Singapore, we have observed that the

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culture in Asia is much more conservative. The first deals to be

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made at Asia's largest aviation event, the Singapore Air Show has

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just been revealed. Airbuses has said that it had orders for its

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super jumbo worth about $8.3 billion. Other deals announced this

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week. Myanmar 's national carrier also announced a deal worth nearly

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$1 billion. I spoke earlier to our reporter who is at the airshow.

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Myanmar is seen as having huge potential. Some even describing it

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as the next frontier in aviation. Myanmar has had some of the highest

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passenger rates in Asia. There are many challenges. Thank you, Andrew

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for joining us. There are already eight carriers in Myanmar. Is there

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a risk of overcapacity? Until recently, it has been a small

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market. There were a number of small airlines that are looking to grow

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with the opening up of the market we are seeing exciting developments. It

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is very competitive. Do you think with the domestic market being so

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fierce but there are foreign players coming on board. Do you think the

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country and its infrastructure are ready? It is a fantastic tourist

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destination. The truth numbers are growing rapidly but the key

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challenges are, while the infrastructure keep up? That

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involves new investment and the Myanmar government is talking to new

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investors and bringing foreign expertise. The potential is there

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but it needs to be carefully co-ordinated to make sure we can

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satisfy that demand effectively. Very exciting times for the Asia

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Pacific, particularly Myanmar. The challenge will now be will be

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infrastructure be able to keep pace with the growing demands? We will be

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bringing you the latest from this major airshow events throughout the

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day and this week. You can go to our website for the latest news. Today,

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the competition to have the best in-flight entertainment. With that,

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we and that addition of Asia Business Report.

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Officials from South Korea have left for the border village of Panmunjom

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for talks with North Korea. Hundreds of civilians are still trapped in

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Homs with attempts to them out on the besieged centre so far failing.

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Many of the country's top scientists are warning that in some communities

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the floodwaters

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