07/05/2014 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.

Similar Content

Browse content similar to 07/05/2014. Check below for episodes and series from the same categories and more!



American company has been warned not to use the UK as a tax haven. Now on


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


Could it be the biggest stock market listing in history? Ali Baba six


billions from investors. Could Indonesian coffee become less


available to foreigners? Welcome to Asia Business Report. I'm Rico


Hizon. Starting with China's Alibaba. It has filed for a share


sale in the US, which could make it as much as $15 billion. In initial


stages of the filing, it hasn't specified how much stock will be


sold or at what price. The online shopping giant operates a network of


e`commerce services and brings in more money than us on and eBay


combine. But how well known is Alibaba in the US? `` Amazon and


eBay. To give you an idea of how much interest it is already


building, Yahoo has a 40% stake in Alibaba and investors are buying


shares in Yahoo just to have some of its shares in Alibaba. There is


already quite a bit of interest, despite the fact that it might not


be as well`known and amongst regular kind of investors. The one thing


that might hold investors back in the US is the complex web of


businesses. That might deter some investors. One merely `` $1 billion,


US, is that realistic? It is probably going to be more than that.


The $1 billion is really just a placeholder, a number they have to


put. But most people believe they can raise anywhere from $15 billion


`$20,000,000,000. If they are published that, it would be


Facebook's IPO. They decided to file in the US rather than their home


base. By? The United States allows for more control. `` why? That's


what executives want. Alibaba proposed something different. Their


shareholders, 20 members of the executive team, are able to vote on


the people who are part of the board. That wasn't going to fly with


regulators in Hong Kong. But it's something that was accepted here in


big US, which is why they decided to list in New York. A marketplace


which facilitates consumer to consumer online shopping now.


It is the supreme shopping platform. There is almost nothing you can't


buy on it. People call me Lunar Mum on internet. I sell maternity and


infant products. It was hard at the beginning. Every day I wouldn't


finish before midnight and I had to look after my baby as well. Now I


have eight staff, divided into morning and evening ships. I even


have customer service and a graphic designer. We chat to customers


online before finalising the orders. In the afternoon, we start sorting


the goods according to orders. We pack them into parcels for the


delivery men. When I started, I made 10,000 yuan every month. Now the


income is 40 times that. All young people now shop online. Even older


people are joining the trend. The website has transformed my life. I


believe its influence is only going to increase. The successful use. The


following rate of growth of China's economy is a source of concern for


many in the developing nations of Asia.


But for countries in Africa, China's investment is still


galloping ahead. By 2020, it expects trade with Africa to double to $400


billion and Chinese foreign investment is expected to rise to


100 Indian dollars. In Abuja, Nigeria, the World Economic Forum is


taking place. We report from there. Nigeria is China's third`largest


trading partner. Trade volume has increased as there is hardly any


household in Nigeria without a product made China, especially at ``


electronics. This is coming with huge business delegation. Several


bilateral agreements will be signed. There are huge investment here, with


interest spanning telecom, aviation and banking, as well as a huge


presence in construction. This visit underscores the importance of


Nigeria to China and the rising profile of Chinese business


activities in Africa's largest economy. The World Economic Forum


begins today. There is the risk of it being overshadowed by security


concerns. China has started controlling


imports of baby milk formula to try to rebuild its dairy industry.


Demand for imports soared after a scandal in 2008. But authorities are


trying to help local producers claw back market share from suppliers in


New Zealand, Australia and Europe by stopping imports from producers who


are not registered with them. New Zealand is a major exporter of milk


formula to China. Earlier, I spoke to the head of the trade body in


Auckland and asks how this will impact their industry. Each year it


is about $200 million, New Zealand dollars, of milk formula. This is a


rising market for New Zealand because of our free trade agreement


that we signed back in 2008. It is part of a market that is growing and


part of our market where Ali Young, small, entrepreneurial companies


have taken a good share of the market and that market is now at


risk. `` our young. Suppliers now have to be approved by mainland


authorities. Apparently only 30 suppliers, six other countries, were


approved. How could this impact, in terms of production and revenues,


the New Zealand baby formula market? What we are going to see is the


initial audit covered 13 companies and now we have about eight of those


who have passed the globe mark. What we will see is some pressure put on


the brand holders. For some reason the Chinese are looking at brands


and looking to have Rands reduced, whereas in the New Zealand market I


am saying that what they should be doing is looking at the quality of


products supplied. `` brands. That will give accountability to


consumers in the China market. There is no need to exclude part of our


supply chain. If it is breakfast where you are


watching, you might have had your first couple of coffee or at least


he might be thinking about it. But do you know where it comes from?


Indonesia is the world's fourth largest coffee producer and in the


past is exported almost all of it. Now, Indonesians are demanding


better coffee and that is expected to put a shotgun exports.


Afternoon coffee. It is fast becoming Indonesia's pastime. This


couple opened this shop last year. She admits business is slow but she


is confident that the future is bright. Older generations like my


father or uncle, the way they drink coffee, they just drink the popular


Indonesian instant coffee or they just put water over the ground


coffee and they drink the sediment. Now, the young generation drinks


espresso, Pacino. This is where all of that coffee comes from. ``


cappuccino. These are unprocessed coffee beans. In the past,


Indonesian farmers would pick the beans indiscriminately. It is faster


but the result is a lower quality coffee. Now, it pays to pick only


the best beans. This man has been a coffee farmer for more than 20


years. He first learned about the plant on his grandmother's farm.


But, until recently, nobody taught him how to produce high`quality


coffee. Now he is small `` he is all smiles while picking the best beans.


TRANSLATION: I used to sell one kilogram of regular quality coffee


beans. For the superior quality, people are willing to pay almost


three times the price. The best Indonesian copy used to be mainly


for exports. This Di Resta sells special coffee, the highest in the


trade, locally and overseas. `` this exporter. The majority will be


local. Locals will consume it. Mid to upper class. We do not expect


foreigners, because our biggest market is our growing need


upper`class. `` mid. But the bulk of Indonesian copy still has to go


overseas for some time as it had enough demand in the country. But


farmers are increasingly setting the price for the popular commodity.


Thank you for investing your time with us. The sport is up next.


The top stories this hour. Eight more schoolgirls have been abducted


in Nigeria. The US is sending a team


Download Subtitles