:00:00. > :00:16.rose after the announcement. Now on BBC News, all the latest
:00:17. > :00:22.business news live from Singapore. Tough times for aviation. What do
:00:23. > :00:27.regional airlines need to do to maintain profitability? Investor
:00:28. > :00:35.confidence gets hit in Vietnam due to heightened tensions with China.
:00:36. > :00:42.Thanks for watching Asia Business Report, I'm Rico Hizon. Two pages
:00:43. > :00:44.list airlines are struggling to stay afloat and with earnings under way,
:00:45. > :00:51.investors braced for bad news. `` two of Asia's. Thai Airways will
:00:52. > :00:57.reveal a lower than in `` larger than expected loss when it reports
:00:58. > :01:05.its earnings. It has been hit the crisis in Thailand, which has led to
:01:06. > :01:11.a drop in tourism. The flesh `` flagship carrier in Malaysia is
:01:12. > :01:14.expected to do the same. They may have to pay millions in compensation
:01:15. > :01:17.to families on flight MH370, which disappeared two months ago. I spoke
:01:18. > :01:24.with an aviation lawyer earlier and ask him if the troubles are due to
:01:25. > :01:31.the political unrest or just more Management. Political protest is a
:01:32. > :01:38.major factor. `` poor management. Traffic from China, Japan, Korea has
:01:39. > :01:45.dropped by 25%. Wouldn't say it is bad management. Many carriers and in
:01:46. > :01:50.Indonesia and the Philippines are also struggling in this competitive
:01:51. > :01:54.environment. What about Malaysia Airlines? They have gone through so
:01:55. > :01:59.much over the past year. Is it being run by bad management has yellow
:02:00. > :02:09.Malaysia Airlines is a tale of two halves. They have the highest
:02:10. > :02:19.traffic growth in 2013, 20 9%. They have benefited from that in they
:02:20. > :02:22.have struggled with profit. They have been competing with low`cost
:02:23. > :02:27.carriers in Malaysia and have struggled to make a profit. Could
:02:28. > :02:34.they be taken over? Malaysia Airlines is the national carrier and
:02:35. > :02:42.they employ thousands. There is a right issue. It won't get taken
:02:43. > :02:49.over. `` pride issue. Singapore airlines made a what keeps it
:02:50. > :02:54.competitive and profitable? It's a mere global brand. Singapore is a
:02:55. > :03:00.major transit location for passengers `` major global brand.
:03:01. > :03:06.They are also famous for being one of the best run carriers in the
:03:07. > :03:10.world. They use a multi` pronged approach to their business model,
:03:11. > :03:19.including long haul, cargo, premium service and low`cost, and not only
:03:20. > :03:26.low`cost in the regional sense but also in the long haul. In other news
:03:27. > :03:29.making headlines. $35 billion merger between two advertising giant has
:03:30. > :03:35.been called off according to industry sources. Omnicom and
:03:36. > :03:39.progress is not agree on terms including who would be the chief
:03:40. > :03:45.financial officer `` Publicis. The merger would have seen the combined
:03:46. > :03:56.unit overtake WPP as the world 's largest advertising company. It
:03:57. > :04:04.included a joint structure in Donna called Publicis Omnicom group.
:04:05. > :04:09.According to media, if the deal goes through for Apple, it will be the
:04:10. > :04:13.largest acquisition ever. They also run a streaming music service and it
:04:14. > :04:20.is a collaboration between Jimmy iPhone and Doctor dray. Raising
:04:21. > :04:25.tensions in the South China Sea make investors nervous with the biggest
:04:26. > :04:29.loss in the stock market for a decade in Vietnam. Naval ships and
:04:30. > :04:34.Chinese vessels collided in the disputed area of the South China Sea
:04:35. > :04:37.this week, marking the most serious event at sea in decades. Talks in
:04:38. > :04:42.Vietnam fell `` stocks in Vietnam fell by 6% following the clash. It
:04:43. > :04:45.extends a six`week sell`off that has turned the country 's benchmark
:04:46. > :04:51.index into the world 's worst performer. We speak now with Tony
:04:52. > :04:59.Foster, a managing partner in Hanoi. Thank you for joining us. As we
:05:00. > :05:04.saw, the markets are indeed feeling the pressure. What about where you
:05:05. > :05:11.are? Our businesses and investors feeling the tension from the
:05:12. > :05:20.Chinese? I don't think so. There is a certain level of concern,
:05:21. > :05:24.obviously. There is concern that is slightly more heightened than
:05:25. > :05:28.normal. China is always a presence in the thinking in Vietnam. The
:05:29. > :05:36.event the other day and recently have been more serious than usual. I
:05:37. > :05:43.don't think it's likely to have much of a long`term impact on investment
:05:44. > :05:50.activity either in the market or with direct investors, unless... Yar
:05:51. > :05:56.a direct investors jittery about this ongoing dispute between Vietnam
:05:57. > :06:02.and China? `` so why are. Domestic investors sold off yesterday, the
:06:03. > :06:09.foreign investors were buying. It's potentially more serious if there is
:06:10. > :06:15.something politically that people don't really know about and so at
:06:16. > :06:20.the back of people 's minds, the question is, whether this domestic
:06:21. > :06:22.sell`off is an indication of something going on politically that
:06:23. > :06:27.other foreign investors aren't yet aware of. If that's the case, then
:06:28. > :06:33.there is something to be worried about. What about bad debts in the
:06:34. > :06:35.banking sector and corruption? Are these major issues that are also
:06:36. > :06:41.impacting sentiment among businesses? Bad debts are definitely
:06:42. > :06:45.a more important factor at the moment. There is a serious bad debt
:06:46. > :06:52.problem which flows in from inefficient state`owned company. The
:06:53. > :06:55.government is dealing with it `` state`owned companies. They are
:06:56. > :06:59.dealing with it at a slow pace, taking bad debts off the books of
:07:00. > :07:04.banks but not recapitalising the banks, so this situation is under
:07:05. > :07:09.control and that wouldn't account for what's going on in that market.
:07:10. > :07:13.What is your outlook on the Vietnamese economy? How will it
:07:14. > :07:19.performed this year? I think it will be slow growth. The problem is, the
:07:20. > :07:26.banking system isn't going to allow for substantial inflows of credit
:07:27. > :07:31.into businesses. So, I think we are in for a period of slow growth for
:07:32. > :07:34.the next year or two before the economy takes off again. Tony
:07:35. > :07:40.Foster, from Hanoi, thank you for your insight. Did you ever wonder
:07:41. > :07:46.how people live when they work in some of the most inhospitable oceans
:07:47. > :07:50.on earth? Floating hotels provide accommodation for hundreds of oil
:07:51. > :07:55.rig workers who need to work long`term out at sea. A Singaporean
:07:56. > :07:58.firm is a market leader in building these vessels and our correspondent.
:07:59. > :08:04.Access to the site of their latest project. This is the fourth floating
:08:05. > :08:10.accommodation platform that the company is building. It cost $350
:08:11. > :08:17.million. When ready, it will house at least 440 workers. I am here at
:08:18. > :08:24.the fabrication yard where the oil rigs are being built as well as the
:08:25. > :08:30.floating vessel platform. We are here to look at this special
:08:31. > :08:37.floating platform. Or, they flotel. What is different about that one?
:08:38. > :08:43.The uniqueness of the design is that it can operate in harsh environments
:08:44. > :08:49.on the North Sea. Wave heights have recorded 16.5`17 metres. You can see
:08:50. > :08:54.waves as close to about 30 metres approaching the vessel. What
:08:55. > :08:57.specifically is it helpful for? We know a vessel like this was used
:08:58. > :09:04.around the deep water horizon disaster cleanup workers `` where
:09:05. > :09:10.cleanup workers were housed to clean up after the BP spill. Will we be
:09:11. > :09:15.used after situations like that? Yes. In that accident, the vessels
:09:16. > :09:19.that were used were one of ours. You are referring to a ship basically.
:09:20. > :09:24.That is how it compares to a ship that is holding and providing
:09:25. > :09:33.accommodation. This would be more safe. A lot safer and it is also
:09:34. > :09:40.more comfortable. It avoids seasickness. During the time around
:09:41. > :09:44.that disaster, workers complained about the uncomfortable nature of
:09:45. > :09:48.the accommodation. How are you making it more comfortable for these
:09:49. > :09:54.workers who work in a stressful industry? In terms of accommodation,
:09:55. > :10:01.we have single men rooms. If you go on board this vessel, you will find
:10:02. > :10:07.that the accommodation is close to a 5`star hotel. The central bank of
:10:08. > :10:11.the Philippines wants banks to hold more cash amid concerns high
:10:12. > :10:18.liquidity could lead to inflation. From the end of the month, the hike
:10:19. > :10:24.in the ratio will drain $1.4 billion to the country's financial system.
:10:25. > :10:27.Before we go, a look at the Asian stocks. Most are in negative
:10:28. > :10:34.territory after Wall Street finished low. That was after better than
:10:35. > :10:50.expected Chinese trade data. Thank you for investing your time with us.
:10:51. > :10:53.As anger grows in Nigeria, the president tells the BBC that with
:10:54. > :10:57.international help we will be able to bring home the 200 schoolgirls
:10:58. > :11:02.who were abducted. Defying a Moscow, by Russians say they will go
:11:03. > :11:04.ahead with their vote for independence in eastern Ukraine on