18/02/2014 Asia Business Report

cost businesses south of the border hundreds of millions of pounds. Now

on BBC News, all the latest business news live from Singapore. Big jump

in earnings, we look at what is driving strong results of the

largest mining company, BHP Billiton. Old world against new

world, the former head of the global trade organisation ways in on

today's round of trade negotiations. We start off with BHP Billiton, the

mining giant posting an 83% rise in earnings for the months to

December. Net profit soaring to $8 billion. Due to strong production

across the iron ore, coal and petroleum operations. The result was

above expectations. It is optimistic about its future prospects. It sees

the global economy strengthening over the next 2014 financial year.

At a more moderate face of close though. Look at the latest results

shows cost cuts played a part in roosting its earnings. We talk to

resort analyst. There is no doubt, the sector has suffered, especially

weaker prices. That has seen companies like BHP Billiton turned

to a less palatable approach of generating profits, to cut cost. For

the half it has reported, it pulled out $1 billion in cost savings.

Going forward, it is expect in it has $4 billion of embedded savings

now. Built into their operations. We do think they have a very big tip on

that side of the equation. Do you think we could see more cost saving

measures from BHP Billiton to make it leaner and meaner, and there are

been reports of its global thermal core business? That it may unload

it. We do think that through the rest of 2014 they will be continuing

to strive to take costs out of the system. It does become little more

difficult once you start initiating those activities because you get all

the easy costs first. Because there was quite a long period of growth

for the business, they will be able to actually continue to become more

leaner through the rest of this year. As China still a weak market

in terms of demand for its iron ore and other resource product? No, the

exact opposite is happening. If you look at the January results from

China, they imported a record 86 million tonnes of iron ore for the

month. An annual record of 846 million tonnes. We saw in the last

two recorded months, records of iron or delivery. We think that will slow

little bit but the momentum of growth in iron ore imports will

continue through 2014. Staying with commodities, Alcoa will be shutting

down three facilities in stray which will lead the 1,000 staff pleaded --

losing jobs. The aluminium giant said a smelter in project will will

close in August and true mills in New South Wales will shut down by

the end of the year. The shutdowns and closures will cost the company

$250 million. Toyota has resumed operations at three plants are macro

Japan which were suspended due to heavy snow which disrupted the

supply of parts. It is the plants with a make the prius hybrid that is

where activity will be suspended. Heavy snow has disrupted the

delivery of goods and closed roads and suspended car production at

Honda, Suzuki and Subaru. The world Trade Organisation only exists to

negotiate reductions in tariffs and solve trade disputes. One proposed

deal, the transpacific partnership is proving difficult to agree on,

the Doha round of negotiations has dragged on for a decade. Significant

progress was made at sea meeting in Bali in December. Earlier I asked

the former chief of the organisation and asked how progress at Bulli

could be changed into a proper trading agreement? The agenda needs

to adjust to the new realities of how world trade is happening today

with the global supply chain. There is also other ways of opening trade.

Bilateral, regional, transpacific partnership, the treaty between

ASEAN, Corey Anderson and. The trans- Atlantic partnership. How

these various styles of it under the roof of world trade, is an open

question. Will it all come in and synergise. Should not be just be one

deal to do away with the PPP and all this bilateral agreement? It does

not matter what the colour of there is. Provided it catches mice. What

has happened for the last 15 years, you have had bilateral, regional,

market opening, so far, it has synergised. It may not be

aesthetically right, it is a bit difficult to understand. But it

works. The question whether in the future bilateral, regional,

multilateral will converge the way they have in the past is an open

question. What you have to deal with right now... . Different from the

past. In the past you had to get rid of tariffs, in the new world of

trade, you have to get rid of differences in regular Tory issues.

That is more complex. When do you see a trade deal being forged? We

will not have the old-style of 20 topics being agreed together. We

will have a more progressive issue by issue progress. Again, that is

what is needed. Not least because much more many countries than in the

past are involved in international trade. US computer maker Dell went

private last year and now the company is focusing on its strategy

for Asia and specifically its gaming business to counter the global

decline we have been seeing in demand for personal computers. The

court of the Vice President for Dell Asia-Pacific to find out how they

are trying to revive the war tunes. We are standing that an alien with

Arena in Singapore. An attempt of Dell diversified into the gaming

business. How successful has that been? We are the leaders in gaming

worldwide. We have the best product is, we have this alien we are stored

here in Singapore. We'll so have stalls in China, Japan, Australia,

all over the world. We continue to invest in us and we believe we get

the best products in the market. Let us talk to one of these gamers. How

do you like playing on the systems against other games you play? I have

tried the top brands, and I prefer that I can put all my games on

maximum city -- settings with no problems at all. I am really

satisfied. Are you positive as part of your business will grow? We are

continuing to make investment, we will have a gaming console that will

be coming out later this year. It will enable people to have the

experience they have here at the gaming arena in the living room.

Imagine running a company catering to customers who are anything but

loyal, fickle macro tastes and constantly the move. Business is

booming for entrepreneurs who sell products to the expatriate

community. Today we focus on one businessmen cashing in on the rich,

single and lonely expatriate in the citystate. His business generated

$200,000 in revenue in the first year. He tells us how he became part

of the ex- patriot economy. We saw a really big gap in the travel

industry market. Especially for young professionals in Southeast

Asia. You take Hong Kong, Singapore or Bangkok, a lot of experts come

there, they do not know anybody they craved new experiences and to meet

new people. This is always a challenge to start a business from

scratch. It may be a cliche, but it is a rollercoaster at the beginning.

The challenge was to get the funding. Get somebody believing in

you. Eight out of ten start-ups fail. If you invest in something

like this, you have to have a passion for the product and

division. It is already a good feeling. Out of the vision, and a

little bubble you created, you have established something which pays a

living and which you enjoy doing. It is your own thing. Everybody thinks

I had to create this life, they see me at all these parties and travel

getaways where we are on the yachts, beautiful weather, useful exclusive

locations. But what they do not see as me being in the office at 2am

with my business partners and working on new concepts and going

through the numbers. That is the life of being an entrepreneur. Hard

work, but if it pays off, and you enjoy what you do, you did not mind

doing it. Thank you for watching. Sport today is next.

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independence has turned into a war of