25/04/2014 Asia Business Report


25/04/2014

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a mother has been accused of murdering her three children. She

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will appear in court in the morning. Ups and downs in the car industry.

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We go through the latest earning numbers from the US and Japan.

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What do businesses want from Indonesia's next president? One

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entrepreneur shares his wish list. Welcome to Asia Business Report. We

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start off with the automotive sector. Investors have to buckle up

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for an interesting ride. The US carmaker GM posting a profit of $125

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million for the first quarter. Its worst financial result in four

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years. Its image has been dented by much`publicised recalls. Here,

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things have gone better for Mitsubishi, which shrugged off

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sluggish sales in some Asian markets to post a significant increase in

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profits. GM ended you positively, with a

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multimillion dollar profit and its fourth straight year in the black.

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It seemed like a true reversal of fortune for the automotive giant

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which, if you years earlier, filed for bankruptcy protection and needed

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a government bailout. This year, it has been far more challenging. It

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recalled 7 million vehicles over faulty ignition systems that have

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been linked to over 12 deaths. Now it is looking to China to secure its

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fortunes. It will invest $12 billion in the coming years to take on its

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European rivals, who have more of a foothold in the market there. China

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was a bright point for Japanese carmaker Mitsubishi in its annual

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earnings as well. Sales in Asia, its biggest market, dropped by 4% over

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the past year. China, the Philippines bucked the trend `` and

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the Philippines bucked the trend. Overall, the carmaker did well. Its

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net income was 104.7 billion yen, and increase of 176% over the

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previous year. Mazda and Honda are hoping for equally positive results

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when they report later today. Over to Japan. Ices remained static

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for a second straight month. That suggests the government still has

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some way to go when it comes to meeting their target of 2%

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inflation. This morning's Dato showed the price of things has

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increased. CPI in Tokyo rose by 2.7% of April, meaning the national CPI

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gauge could soon follow suit. Tokyo has ordered for bankruptcy

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proceedings to begin against the bitcoin exchange that collapsed

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earlier this year. That is expected to lead to a liquidation of the

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currency exchange. The court appointed trustee will look at how

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much the company's remaining bitcoin holdings are worth and will sell`off

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of assets to raise cash. It is unclear at this stage if investors

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will get back any of their investments.

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Within a few months Indonesia will have a new president and many

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businesses have been hoping that the election will bring to power the

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government that is in favour of economic reform. So, how much will

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the election change the business environment and will it be a change

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for the better? Recently I spoke to an Indonesian entrepreneur. He is

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the head of a company which holds the franchise for more than 107 11

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`` 711 stores 100 in the country. We are in the mostly food and beverages

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sales. The 240 million people will still need to eat and drink. We are

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optimistic. Indonesia will have a new president by the middle of this

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year. What are your expectations? What will you need from the new

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president? The most important thing is stability. As long as Indonesia

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is stable and secure, the business and people will grow. Number two is

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the policies. Indonesia is growing so fast and the government policy

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has to catch up with the changing needs of customers, as well as

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people. And businesses. So, more stable, secure and better policies

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towards the businesses. What are some of the problems of Indonesia

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that still need to be fixed? Number one is infrastructure. In Jakarta,

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traffic jams are everywhere. The roads aren't as equipped to

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accommodate the growth of the automotive is here. So, the

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infrastructure is clearly the number one priority for the government. In

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Jakarta, they are building a monorail, ices. Clearly the number

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one thing for everyone in the business and government sector is to

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build infrastructure. You have hundreds of stores but only in

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Jakarta. Wendy you plan to expand to the other islands? We continue to

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study the other islands but 70% of the population live in Java. 70%.

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So, our eyes are currently focusing on guitars `` Jakarta. In the short

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distance, it will be in Java. In other business is making headlines,

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Barclays bank will pay $280 million to US companies to settle claims

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that it sold them faulty mortgage`backed securities during

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the housing bubble. Other banks that have reached settlements with US

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regulators include Citigroup and Deutsche bank. Mortgage`backed

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securities referred to investment products at the centre of the recent

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global financial crisis. For major technology companies in

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America, including Apple and Google, have agreed to pay three ``

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by some to settle a lawsuit that accuses them of conspiring to hold

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down salaries in Silicon Valley. According to Reuters, the settlement

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took place just weeks before the trial was scheduled to begin. Tech

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workers filed a class action suit against misty Apple, Google, Intel

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and Adobe, alleging they tried to solicit one another's employees in

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order to avoid a salary war. The jury could amount up to $3 billion

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in damages. The loss could have been tripled to $9 billion, US. The once

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chief executive of Apple and the man thought we could `` thought to be

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behind Steve Jobs smacks resignation in 1985 now runs a company that

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invests and acquires other information technology firms. ``

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Steve Jobs'. He has spoken about how he has moved on since his time at

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Apple. This is the right time to be in Asia. The past five decades, the

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American middle class model has been the aspiration and has been exported

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around the world that it is no longer affordable for us in the US.

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In Asia, we have this rapidly growing emerging middle class. With

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a more frugal model of what that aspiration will be. I believe not

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only can we learn from that and be able to bring products and services

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to the Asian market but I think we can bring a lot of new ways of

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thinking back to the West. You are known as the guy who fired Steve

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Jobs. It has since emerged that he was pushed out of the company. What

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would you do differently in hindsight? First of all, Steve Jobs

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was brilliant. Unquestionably, maybe one of the best entrepreneurs of our

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generation. But Steve Jobs in his 20s was not the same Steve Jobs as

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we saw in his later years. I think I didn't understand well enough what

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it meant to be the founder of a company. As a professional manager

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who was brought in, I wish I had better coaching, probably from the

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board. In hindsight, there's no reason why we had to break up. I

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think the board could have taken a more proactive role. I never wanted

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to take Apple away from him. His job was to launch the Macintosh. It just

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so happened he was a few years too early, the technology wasn't ready

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to do all the things that it was later able to do. Those are problems

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that could have been solved in other ways. What kind of advice would you

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give Apple now? They have been embroiled in several legal cases

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against rivals like Samsung. How would you change the company, ``

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many? The management is doing a brilliant job now. It is an

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extremely well`run company. But I think it probably lacks the creative

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leap that it had when Steve was alive running the company. Those

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things only come along once every five or six years. So we will have

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to wait and see as to whether there is an opportunity for Apple to do

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another creative leap under the current leadership or whether it

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will be one of those really well`managed companies, like BMW,

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that turns out very high`quality products but doesn't necessarily do

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creative leaps. A former Apple chief executive. Asian stocks are

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lethargic in early Friday trading. Investors await the results of more

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earning numbers. Japan is up by 109 points. Hong Kong and South Korea in

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negative territory. Thank you for investing your time with us.

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The top stories this hour: The American Secretary of State John

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Kerry has accused Russia of being responsible for the increase of

:10:43.:10:45.

violence in eastern Ukraine. Israel's Prime Minister Benjamin

:10:46.:10:49.

Netanyahu has told the BBC that Middle East peace talks can only

:10:50.:10:50.

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