14/02/2014 Asia Business Report


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


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


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


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


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


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


about oil. Welcome. Trade is winding up at


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


should consider that the middle eastern countries are suffering from


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


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


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


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


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


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


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


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


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


commanding something about 1000 aircraft but they have on their


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


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


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


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


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


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


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


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


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


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


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


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


billion. Other news, fresh numbers from China


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


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


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


falls broadly in line with market expectations. Analysts say that


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


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


Australian goldmining giants have been announcing a big fall in


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


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


and big write-downs of assets in West Africa.


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


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


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


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


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


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


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


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


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


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


important aspect is the government in Dubai has offered favourable


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


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


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


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


enough demand to the overall footprint of the shopping centre


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


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


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


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


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


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


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


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


suggest that a slowdown in Chinese economic productivity could prove to


have a more significant impact on Gulf economies than the European


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


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


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


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


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


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


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


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


pace and becoming attractive again to investors. What happens when


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


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


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


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


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


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


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


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


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


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


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


Before we go, a quick look at the markets.


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


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


straight day. shares closed higher for


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


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


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


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


euthanasia further than anywhere else.


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


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


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