14/02/2014 Asia Business Report


14/02/2014

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


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Kane. The Conservatives were pushed into third place by UKIP. The

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by-election was brought about by the sudden death of the serving MP Paul

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Goggins last month. Now on BBC News, all the latest business news live

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from Singapore. ET is the last day of deals at the

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Singapore Airshow. We find out the final figures, live from the

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organiser. And doing trade between the Gulf and China. It's no longer

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about oil. Welcome. Trade is winding up at

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Asia's biggest aviation event, the Singapore Airshow. There have been

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orders worth $11 billion. We will bring you the final figures shortly

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when we speak with the organiser live from the air show. Let's take a

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look at some of the highlights. Their boss revealed its latest

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plane, the A350. It is seen as a rival to the Boeing 787 Dreamliner.

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Boeing forecast its fleet will triple in 20 years. Airbus won the

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biggest deal, with an order for 20 A380 super jumbo jets. That's worth

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more than $8 billion. Let's cross to the Singapore Airshow and talk to

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the organiser, who can give us the final figure on the deals. Thanks

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for joining us. Over the next few hours, we are talking about the

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figure of over $11 billion. Can you tell us what is the final tally of

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how many deals have been closed? Good morning. At the end of the

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third day of trading, yesterday there was the announcement of close

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to US $32 billion worth of deals announced. That surpasses what we

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did two years ago. Indeed, it does surpass what happened last time.

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Close to $30 billion. But with Asia driving growth in air travel, there

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were many expectations for this 2014 airshow. Do you think you met

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expectations? The orders have come from all over Asia this time. I

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think we are moving close to where I hope we will end up at the end of

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trading this evening. But, if you take a look at the other global

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airshow is over the past year, you have the likes of Dubai, with 206

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billion dollars, US, we also have the likes of others at over $70

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billion worth of deals. This figure of $32 billion, isn't that

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disappointing? No, it isn't a disappointment because I think one

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should consider that the middle eastern countries are suffering from

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a very low base. Being the objective of making themselves a major hub

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over the next few years, their orders are largely concentrated on

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the bigger aircraft, the super jumbo jet is, the triple sevens, those

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kinds of orders. But in the Asia-Pacific, most of the growth

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will come from the LCCs. -- 777. Base of most regional and domestic

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routes. The condition is different. We can't possibly reach those sorts

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of numbers that Asia. It is a more mature market than the middle east.

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But you should also consider that LCC has at least on order a fleet

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that is going to be over what they are operating right now. They are

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commanding something about 1000 aircraft but they have on their

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books 1500 aircraft to be delivered over the next ten years and this

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year alone 230 aircraft. It is one aircraft per day. Before we let you

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go, a lot of people are saying that this is your last airshow that he

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will be overseeing. Have you changed your mind? Will you come back for

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another one? LAUGHS. I don't think so. I think I need a rest before I

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embark on any other projects. It has been quite a ride. The last four

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shows. It has been a great team effort and I think the show has

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paced itself -- placed itself as one of the most important events in the

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global aviation calendar. We will have to leave it there. Thank you so

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much for joining us. And for revealing for the first time the

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final tally of figures at the Singapore Airshow. As you mentioned,

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more than 32 million dollars, US. Thanks for joining us. -- 30 $2

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billion. Other news, fresh numbers from China

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reveals consumer prices or inflation coming in at 2.5% in January,

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compare to one year ago. The data measures changes in the prices paid

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by consumers for a basket of goods and services. The figure to January

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falls broadly in line with market expectations. Analysts say that

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expect the central plank -- central bank will keep its monetary policy

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tight this year, as the inflation situation is under control.

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Australian goldmining giants have been announcing a big fall in

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profits. The underlying results for the six months in December dropped

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to 6% to $180 million. The report follows problems in certain minds

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and big write-downs of assets in West Africa.

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It's no secret that Chinese companies are investing billions of

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dollars around the world. But it's not just cash-strapped companies

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proving attractive. The Middle East has been viewed as a good place to

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do business. Our reporter has been to meet the Chinese business

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community in Dubai to find out what deals are being done.

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This is Dragon Mart. It the biggest trader of Chinese products outside

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of the country itself. This tour group is the biggest tenant and has

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been here since it opened in 2004. What attracted them here as a

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trading post for their products? TRANSLATION: First of all, Dubai is

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very well located. It is halfway from China to Europe. Another very

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important aspect is the government in Dubai has offered favourable

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policies, including zero taxes and EasyBiz processing. Plus, people --

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easy business. In this country are very friendly to us. We find it safe

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to live here and our business is growing by 30% every year. Even

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though they are less than one decade-old, they have experienced

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enough demand to the overall footprint of the shopping centre

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with this construction. When it opened in time for the 10th

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anniversary later this year, the overall floor space will be around

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the area of 50 international football pitches. So, what is

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driving the demand? There has been great exchange of trade. The huge

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amount of trade between the country and China is done through Dragon

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Mart. The trade is much more than goods and services. Around two

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thirds of the oil imports, from the Middle East, with Saudi Arabia alone

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providing 1 million barrels a day. That dependency has led the IMF to

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suggest that a slowdown in Chinese economic productivity could prove to

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have a more significant impact on Gulf economies than the European

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debt crisis. A cat Dragon Mart, -- back at, it is worth noting not

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everyone is celebrating. Some said business was flat or declining,

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particularly in the wake of the global financial crisis. None of

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them wanted to appear on camera but it serves as a reminder that while

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over Royal trade volumes are growing, there is always the chance

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that business can go splat. -- overall trade. You can get more from

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the team in Dubai in the Middle East business report this weekend.

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The recoveries of major economies around the world seem to be gaining

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pace and becoming attractive again to investors. What happens when

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people are doing better? Apparently they drink more. In an exclusive

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interview, we ask Alan Clark, the Chief Executive of a large company,

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that the relationship between beer and the economy. If the economy

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slows down, there is quite price elastic. About 75% of our business

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is in merchant markets. You can see the impact of that in the economic

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slowdown. -- emerging markets. Consumers can be affected by the

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downturn. In the US today, where there is quite a lot of pressure on

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the beer market, that's a result of the high levels of unemployment and

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the economic position they have together with the rest of the world.

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You can catch the rest of that interview and much more discussion,

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whether businesses expect to find future growth, in Talking Business.

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Before we go, a quick look at the markets.

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future growth, in Talking Business. Before we go, a quick look at Most

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Asian stocks in good territory. US shares closed higher for a sixth

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straight day. shares closed higher for

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You can keep up-to-date with more news from Asia and special ABC

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reports on Twitter. -- BBC reports. The sport is up next.

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The top stories this hour: Belgian MPs have voted to give terminally

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ill children the right to die, regardless of age, taking the law on

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euthanasia further than anywhere else.

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At least 20 people have died in accidents resulting from the winter

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storm that is paralysing much of the east coast of the United States.

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