:00:00. > :00:00.will be in the Britain. ``in Britain. The biggest cutbacks will
:00:00. > :00:00.be in the investment banking division. Shares in the bank rose
:00:00. > :00:18.after the announcement. Now on BBC News all the latest
:00:19. > :00:30.business news live from Singapore. Investor confidence stakes are hit
:00:31. > :00:33.with Vietnam, tough times for aviation. What do regional airlines
:00:34. > :00:39.need to do to maintain profitability? Investor confidence
:00:40. > :00:42.gets hit in Vietnam due to heightened tensions with China.
:00:43. > :00:54.Thanks for watching Asia Business Report, I'm Rico Hizon. Stocks in
:00:55. > :01:00.Vietnam have fallen by 6% on Thursday, following a clash between
:01:01. > :01:04.two ships, it has turned the country 's benchmark index into the world 's
:01:05. > :01:12.worst performer. Now, we are speaking with the publisher of a
:01:13. > :01:15.report. He is well`known for it his investments in emerging markets.
:01:16. > :01:18.Mark, thank you for joining us on the programme. You concerned about
:01:19. > :01:28.this conflict between the Chinese and the bigamy is? `` are you
:01:29. > :01:36.concerned? ``Vietnamese. The Western world seems to believe that we live
:01:37. > :01:40.in the 19th century, when Western powers could barely China and other
:01:41. > :01:51.Asian countries. Then, about two years ago, Hillary Clinton declared
:01:52. > :02:02.the pivot to Asia `` bully. That of course, Chinese decoration, China is
:02:03. > :02:07.reacting in the way that Russia react to Ukraine. Should the
:02:08. > :02:15.countries that are meeting now work as one and stand up to the Chinese?
:02:16. > :02:22.Basically, in my view, since you live in Asia, in Asia, we can
:02:23. > :02:31.negotiate and compromise. The increased American military presence
:02:32. > :02:38.in Asia is a sign of aggression for the Chinese, because Asia basically
:02:39. > :02:46.has become China centric, all of the countries in Asia depend on trade
:02:47. > :02:53.more. On trading more with China than the US. So other Southeast
:02:54. > :03:00.nations have a tricky balance. It is a major trading partner of the
:03:01. > :03:05.Southeast Asian economies. But you also have the Philippines involved,
:03:06. > :03:09.could this have an impact on Southeast Asian economies? Yes, I
:03:10. > :03:21.have been writing about this for a long time, instead of being glued on
:03:22. > :03:33.what has been said, it will be more productive for investors to consider
:03:34. > :03:44.the geopolitical risks. In Cambodia, and in Thailand, they are
:03:45. > :03:50.potentially great economies, but the geopolitical issues are going to
:03:51. > :03:53.have an impact on the asset market. This geopolitical conflict, in the
:03:54. > :03:57.South China Sea, and the claimants to these territories, can they
:03:58. > :04:01.resolve their issues? So that we can move forward and all of the
:04:02. > :04:11.countries here in the region can grow? For China, the access to
:04:12. > :04:16.resources, like oil from the Middle East, that is vital. They need those
:04:17. > :04:20.shipping lanes to be guaranteed. They cannot rely on the US to
:04:21. > :04:29.guarantee shipping lanes, they had to do it themselves. Over time,
:04:30. > :04:37.tensions will increase. Thank you for your insights. In other business
:04:38. > :04:39.news making headlines, a $35 billion merger between two advertising
:04:40. > :04:46.companies has been called off. According to industry sources, the
:04:47. > :04:53.companies could not agree on terms, including who would be the chief
:04:54. > :04:57.financial officer. The merger would have seen the combined unit overtake
:04:58. > :05:09.WPP as the world 's largest advertising company. It included a
:05:10. > :05:16.joint structure for a new company called Publicis Omnicom group. Apple
:05:17. > :05:22.is looking to buy a smaller company, according to various media outlets,
:05:23. > :05:45.if the deal pushes through, it will be the largest acquisition ever.
:05:46. > :05:59.They also run a streaming music service and it is a collaboration
:06:00. > :06:04.between Jimmy Irvine and Doctor Dre. Malaysia 's flight carrier is
:06:05. > :06:09.expected to sink deeper, into the red, when reports are due at the end
:06:10. > :06:17.of the month. The USA could have to pay `` the airline could have to pay
:06:18. > :06:28.millions of dollars in compensation to the families of those of the
:06:29. > :06:33.missing flight MH 317. The protests are a major factor, in the first
:06:34. > :06:39.quarter, traffic from China and Japan and Korea have dropped by over
:06:40. > :06:43.25%. I would not say it is bad management exactly. Many of the
:06:44. > :06:47.national carriers in Indonesia, and the Philippines, they are also
:06:48. > :06:51.struggling in this very competitive environment at the moment. What
:06:52. > :06:56.about Malaysia Airlines? They have gone through so much over the past
:06:57. > :07:01.year. Is it being run by bad management? Malaysia Airlines is
:07:02. > :07:11.more a tale of two halves. Malaysia Airlines has some of the highest
:07:12. > :07:14.traffic growth, at 29%. They have benefited with their own revenue
:07:15. > :07:21.growth. `` Malaysia has some of the highest traffic growth. There has
:07:22. > :07:27.been tight price competition from carriers in Malaysia. They have
:07:28. > :07:31.struggled to make a profit. It could be taken over? Malaysia Airlines is
:07:32. > :07:39.the national carrier, and they employ thousands of people. There is
:07:40. > :07:44.an issue `` if there is a private issue, it will not be taken over.
:07:45. > :07:52.With the profits, compared to Southeast Asian peers, what keeps it
:07:53. > :07:57.competitive and profitable? It is a brand in a major transit location,
:07:58. > :08:01.for passengers going to the west and east and Australia. It is famous for
:08:02. > :08:06.being one of the best run carriers in the world. There is an unusual
:08:07. > :08:14.multipronged approach to their building model. It has cargo, long
:08:15. > :08:23.haul, premium services, low costs in the regional sense and in the long
:08:24. > :08:26.haul sense. It tries to cover all bases. Monday covers the final day
:08:27. > :08:32.of voting in India's general election, there is a business
:08:33. > :08:37.sentiment in a country that has seen a slowdown in growth over the years.
:08:38. > :08:40.Our correspondent met with the central bank governor, and asked if
:08:41. > :08:44.the business of armoured could become stable if a new
:08:45. > :08:49.administration accepts early economic policies. People talk about
:08:50. > :08:52.it, a lock like this. What are the differences between one government
:08:53. > :08:58.and another? If you take another perspective, and compare the
:08:59. > :09:04.governments, there has never been a very sharp shift in policies or in
:09:05. > :09:07.policy ideology. I do not believe that it matters with the government
:09:08. > :09:12.coming into office, that would mean a big shift in policy. Certainly not
:09:13. > :09:16.in the short term. There is anticipation about a new government
:09:17. > :09:24.coming into office in Delhi. And kickstarting the economy. We have to
:09:25. > :09:30.remember, that India, as a country, there is only so much that Delhi can
:09:31. > :09:34.do. A lot has to be done at a national level, including the state
:09:35. > :09:39.level. No matter who becomes the Prime Minister, it is not only doing
:09:40. > :09:52.the right things, in Delhi, it has to do all of the right things done
:09:53. > :09:57.below and above the state level. Let's have a quick look at the
:09:58. > :10:03.markets. We are seeing mixed reactions in Asian stocks. This is
:10:04. > :10:08.after Wall Street finished in negative territory overnight after
:10:09. > :10:15.gaining headway on Thursday after better`than`expected results.
:10:16. > :10:22.Marginal gains for Hong Kong, Japan, and South Korea, they are all
:10:23. > :10:26.in positive territory at this time. There are losses in the energy and
:10:27. > :10:39.utilities sectors. Have a good weekend, thank you for your time,
:10:40. > :10:40.goodbye for now. The top stories this