25/04/2014

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:00:00. > :00:07.a mother has been accused of murdering her three children. She

:00:08. > :00:20.will appear in court in the morning. Ups and downs in the car industry.

:00:21. > :00:24.We go through the latest earning numbers from the US and Japan.

:00:25. > :00:29.What do businesses want from Indonesia's next president? One

:00:30. > :00:34.entrepreneur shares his wish list. Welcome to Asia Business Report. We

:00:35. > :00:41.start off with the automotive sector. Investors have to buckle up

:00:42. > :00:46.for an interesting ride. The US carmaker GM posting a profit of $125

:00:47. > :00:50.million for the first quarter. Its worst financial result in four

:00:51. > :00:54.years. Its image has been dented by much`publicised recalls. Here,

:00:55. > :00:59.things have gone better for Mitsubishi, which shrugged off

:01:00. > :01:05.sluggish sales in some Asian markets to post a significant increase in

:01:06. > :01:09.profits. GM ended you positively, with a

:01:10. > :01:14.multimillion dollar profit and its fourth straight year in the black.

:01:15. > :01:18.It seemed like a true reversal of fortune for the automotive giant

:01:19. > :01:24.which, if you years earlier, filed for bankruptcy protection and needed

:01:25. > :01:29.a government bailout. This year, it has been far more challenging. It

:01:30. > :01:34.recalled 7 million vehicles over faulty ignition systems that have

:01:35. > :01:41.been linked to over 12 deaths. Now it is looking to China to secure its

:01:42. > :01:45.fortunes. It will invest $12 billion in the coming years to take on its

:01:46. > :01:50.European rivals, who have more of a foothold in the market there. China

:01:51. > :01:56.was a bright point for Japanese carmaker Mitsubishi in its annual

:01:57. > :02:01.earnings as well. Sales in Asia, its biggest market, dropped by 4% over

:02:02. > :02:05.the past year. China, the Philippines bucked the trend `` and

:02:06. > :02:15.the Philippines bucked the trend. Overall, the carmaker did well. Its

:02:16. > :02:22.net income was 104.7 billion yen, and increase of 176% over the

:02:23. > :02:26.previous year. Mazda and Honda are hoping for equally positive results

:02:27. > :02:32.when they report later today. Over to Japan. Ices remained static

:02:33. > :02:37.for a second straight month. That suggests the government still has

:02:38. > :02:45.some way to go when it comes to meeting their target of 2%

:02:46. > :02:52.inflation. This morning's Dato showed the price of things has

:02:53. > :02:56.increased. CPI in Tokyo rose by 2.7% of April, meaning the national CPI

:02:57. > :03:01.gauge could soon follow suit. Tokyo has ordered for bankruptcy

:03:02. > :03:05.proceedings to begin against the bitcoin exchange that collapsed

:03:06. > :03:10.earlier this year. That is expected to lead to a liquidation of the

:03:11. > :03:13.currency exchange. The court appointed trustee will look at how

:03:14. > :03:18.much the company's remaining bitcoin holdings are worth and will sell`off

:03:19. > :03:21.of assets to raise cash. It is unclear at this stage if investors

:03:22. > :03:24.will get back any of their investments.

:03:25. > :03:27.Within a few months Indonesia will have a new president and many

:03:28. > :03:29.businesses have been hoping that the election will bring to power the

:03:30. > :03:35.government that is in favour of economic reform. So, how much will

:03:36. > :03:41.the election change the business environment and will it be a change

:03:42. > :03:45.for the better? Recently I spoke to an Indonesian entrepreneur. He is

:03:46. > :03:56.the head of a company which holds the franchise for more than 107 11

:03:57. > :04:07.`` 711 stores 100 in the country. We are in the mostly food and beverages

:04:08. > :04:12.sales. The 240 million people will still need to eat and drink. We are

:04:13. > :04:16.optimistic. Indonesia will have a new president by the middle of this

:04:17. > :04:25.year. What are your expectations? What will you need from the new

:04:26. > :04:31.president? The most important thing is stability. As long as Indonesia

:04:32. > :04:37.is stable and secure, the business and people will grow. Number two is

:04:38. > :04:43.the policies. Indonesia is growing so fast and the government policy

:04:44. > :04:47.has to catch up with the changing needs of customers, as well as

:04:48. > :04:57.people. And businesses. So, more stable, secure and better policies

:04:58. > :05:01.towards the businesses. What are some of the problems of Indonesia

:05:02. > :05:06.that still need to be fixed? Number one is infrastructure. In Jakarta,

:05:07. > :05:10.traffic jams are everywhere. The roads aren't as equipped to

:05:11. > :05:18.accommodate the growth of the automotive is here. So, the

:05:19. > :05:25.infrastructure is clearly the number one priority for the government. In

:05:26. > :05:33.Jakarta, they are building a monorail, ices. Clearly the number

:05:34. > :05:38.one thing for everyone in the business and government sector is to

:05:39. > :05:42.build infrastructure. You have hundreds of stores but only in

:05:43. > :05:48.Jakarta. Wendy you plan to expand to the other islands? We continue to

:05:49. > :05:58.study the other islands but 70% of the population live in Java. 70%.

:05:59. > :06:06.So, our eyes are currently focusing on guitars `` Jakarta. In the short

:06:07. > :06:12.distance, it will be in Java. In other business is making headlines,

:06:13. > :06:17.Barclays bank will pay $280 million to US companies to settle claims

:06:18. > :06:21.that it sold them faulty mortgage`backed securities during

:06:22. > :06:25.the housing bubble. Other banks that have reached settlements with US

:06:26. > :06:30.regulators include Citigroup and Deutsche bank. Mortgage`backed

:06:31. > :06:32.securities referred to investment products at the centre of the recent

:06:33. > :06:34.global financial crisis. For major technology companies in

:06:35. > :06:40.America, including Apple and Google, have agreed to pay three ``

:06:41. > :06:46.by some to settle a lawsuit that accuses them of conspiring to hold

:06:47. > :06:48.down salaries in Silicon Valley. According to Reuters, the settlement

:06:49. > :06:52.took place just weeks before the trial was scheduled to begin. Tech

:06:53. > :07:01.workers filed a class action suit against misty Apple, Google, Intel

:07:02. > :07:07.and Adobe, alleging they tried to solicit one another's employees in

:07:08. > :07:15.order to avoid a salary war. The jury could amount up to $3 billion

:07:16. > :07:21.in damages. The loss could have been tripled to $9 billion, US. The once

:07:22. > :07:26.chief executive of Apple and the man thought we could `` thought to be

:07:27. > :07:30.behind Steve Jobs smacks resignation in 1985 now runs a company that

:07:31. > :07:38.invests and acquires other information technology firms. ``

:07:39. > :07:42.Steve Jobs'. He has spoken about how he has moved on since his time at

:07:43. > :07:47.Apple. This is the right time to be in Asia. The past five decades, the

:07:48. > :07:51.American middle class model has been the aspiration and has been exported

:07:52. > :07:54.around the world that it is no longer affordable for us in the US.

:07:55. > :08:01.In Asia, we have this rapidly growing emerging middle class. With

:08:02. > :08:07.a more frugal model of what that aspiration will be. I believe not

:08:08. > :08:12.only can we learn from that and be able to bring products and services

:08:13. > :08:15.to the Asian market but I think we can bring a lot of new ways of

:08:16. > :08:22.thinking back to the West. You are known as the guy who fired Steve

:08:23. > :08:24.Jobs. It has since emerged that he was pushed out of the company. What

:08:25. > :08:35.would you do differently in hindsight? First of all, Steve Jobs

:08:36. > :08:40.was brilliant. Unquestionably, maybe one of the best entrepreneurs of our

:08:41. > :08:48.generation. But Steve Jobs in his 20s was not the same Steve Jobs as

:08:49. > :08:53.we saw in his later years. I think I didn't understand well enough what

:08:54. > :08:59.it meant to be the founder of a company. As a professional manager

:09:00. > :09:03.who was brought in, I wish I had better coaching, probably from the

:09:04. > :09:06.board. In hindsight, there's no reason why we had to break up. I

:09:07. > :09:12.think the board could have taken a more proactive role. I never wanted

:09:13. > :09:18.to take Apple away from him. His job was to launch the Macintosh. It just

:09:19. > :09:21.so happened he was a few years too early, the technology wasn't ready

:09:22. > :09:26.to do all the things that it was later able to do. Those are problems

:09:27. > :09:31.that could have been solved in other ways. What kind of advice would you

:09:32. > :09:33.give Apple now? They have been embroiled in several legal cases

:09:34. > :09:39.against rivals like Samsung. How would you change the company, ``

:09:40. > :09:41.many? The management is doing a brilliant job now. It is an

:09:42. > :09:45.extremely well`run company. But I think it probably lacks the creative

:09:46. > :09:51.leap that it had when Steve was alive running the company. Those

:09:52. > :09:56.things only come along once every five or six years. So we will have

:09:57. > :10:01.to wait and see as to whether there is an opportunity for Apple to do

:10:02. > :10:04.another creative leap under the current leadership or whether it

:10:05. > :10:07.will be one of those really well`managed companies, like BMW,

:10:08. > :10:12.that turns out very high`quality products but doesn't necessarily do

:10:13. > :10:20.creative leaps. A former Apple chief executive. Asian stocks are

:10:21. > :10:25.lethargic in early Friday trading. Investors await the results of more

:10:26. > :10:30.earning numbers. Japan is up by 109 points. Hong Kong and South Korea in

:10:31. > :10:39.negative territory. Thank you for investing your time with us.

:10:40. > :10:42.The top stories this hour: The American Secretary of State John

:10:43. > :10:45.Kerry has accused Russia of being responsible for the increase of

:10:46. > :10:49.violence in eastern Ukraine. Israel's Prime Minister Benjamin

:10:50. > :10:50.Netanyahu has told the BBC that Middle East peace talks can only