20/05/2014

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:00:00. > :00:00.since Thursday, but the American search was called off on Sunday. Now

:00:00. > :00:14.on BBC News, all the latest business news live from Singapore. Five

:00:15. > :00:19.Chinese military officials are charged with stealing US trade

:00:20. > :00:22.secrets through cyber`espionage. Swiss banking giant Credit Suisse

:00:23. > :00:41.pleads guilty to charges of aiding American tax invaders. Welcome to

:00:42. > :00:48.Asia Business Report. We start with China, which has warned the US that

:00:49. > :00:55.it may jeopardise co`operation between the two sides after the US

:00:56. > :01:03.charged five Chinese officials with economic espionage. They are accused

:01:04. > :01:08.of hacking into US company computers to steal trade secrets. They have

:01:09. > :01:16.denied all the charges, with its Foreign Minister saying they are

:01:17. > :01:18.based on fabricated. Our correspondent has more from

:01:19. > :01:21.Washington, DC. But American authorities say it has a real impact

:01:22. > :01:31.on the lives of ordinary Americans. The world of corporate espionage can

:01:32. > :01:33.seem quite abstract, I am joined by an expert, the US Attorney for the

:01:34. > :01:42.district of Pennsylvania. What impact does it have on the lives of

:01:43. > :01:46.ordinary people? It has a real and painful impact on ordinary people. I

:01:47. > :01:49.come from Pittsburgh, which is a steel town and the cradle of

:01:50. > :01:51.American industry. It should be obvious when steel companies invest

:01:52. > :01:54.huge amounts of money into research and development in an increasingly

:01:55. > :01:56.competitive global economy and to have these investments stolen from

:01:57. > :02:05.them through cyber`espionage, there are real consequences. Plants close,

:02:06. > :02:18.people get laid off and lose their homes. The charges that you brought

:02:19. > :02:26.against these Chinese hackers involve companies in your state.

:02:27. > :02:32.What proof do you have? Today, we have employed the American criminal

:02:33. > :02:46.justice system. But in simple strokes, these individuals who are

:02:47. > :02:49.affiliated with the military in China, were using spearphishing to

:02:50. > :02:51.intrude on the victims who were named in the indictment, leaving

:02:52. > :02:54.bugs there and creating backdoors to get into other compromised computers

:02:55. > :03:01.to exfiltrate compromised data. But governments around the world have

:03:02. > :03:06.not made the same distinction. I really can't say. I can tell you

:03:07. > :03:10.that this is a United States law enforcement action, and the use of

:03:11. > :03:15.our criminal justice system through a criminal indictment based on

:03:16. > :03:22.evidence that was put before me. I signed it and presented it to a

:03:23. > :03:25.grand jury. There you have it. Talking about the commercial damage

:03:26. > :03:28.and the human cost that results from that. The action taken today will

:03:29. > :03:34.add further strain to the relationship between the United

:03:35. > :03:41.States and China. Credit Suisse has become the first bank in more than a

:03:42. > :03:45.decade to admit to crime in the US. The wealth manager and two of its

:03:46. > :03:53.units pleaded guilty of two charges of helping its clients to evade

:03:54. > :03:56.taxes. It agreed to a settlement of $2.6 billion in American Federal

:03:57. > :04:07.Court. We spoke to an expert to get her views on the case. There may be

:04:08. > :04:11.a chilling effect. If you have a choice between a bank that has no

:04:12. > :04:20.criminal conviction and a bank that does, you will go with the bank with

:04:21. > :04:25.a better reputation. So this can have a serious effect on business

:04:26. > :04:32.and its prospects. As stakeholders decide that they want to do business

:04:33. > :04:36.with a more potentially Conservative or higher behavioural standard kind

:04:37. > :04:42.of organisation. Thailand's military has declared martial law, following

:04:43. > :04:48.months of anti`government protest, it caused a drop in its currency.

:04:49. > :04:55.The army said they are looking to restore peace and order but they

:04:56. > :04:59.stressed the move was not a coup d'etat. It could continue to hurt

:05:00. > :05:06.the economy. It posted weaker than expected growth figures for the

:05:07. > :05:09.first part of the year. I was told earlier it was possible that

:05:10. > :05:15.Thailand could fall into a recession because of the crisis. This region I

:05:16. > :05:20.have seen up and down growth. As long as there is not severe

:05:21. > :05:24.disruption to trade and investment flows, we will be able to ride

:05:25. > :05:27.through this period. So you don't see any disruption. But what will it

:05:28. > :05:32.mean for Thailand? Obviously, long`term prospects. After all, the

:05:33. > :05:37.drag on the economy is likely to happen again. We are expecting lower

:05:38. > :05:44.estimates for the rest of the year. For us, supply chain disruption is a

:05:45. > :05:49.risk, as in the auto sector. So far that has not happened. If that

:05:50. > :05:52.happens, the disruption to trade region meet will be minimal. In

:05:53. > :05:57.Singapore and elsewhere. It should be fairly contained. We have seen

:05:58. > :06:03.growth coming out a little bit stronger for the quarter. But just

:06:04. > :06:10.how integrated our south`east Asian economies. You have the ASEAN next

:06:11. > :06:15.year. We are the largest trading partner. A reflection of growing

:06:16. > :06:19.wealth as well as rising consumption and investment within the region.

:06:20. > :06:24.2015 is an important year for ASEAN. So all of this going on in

:06:25. > :06:30.Vietnam and Thailand doesn't help. It distracts from the aim of getting

:06:31. > :06:35.together to talk about a more seamless front on trade and people

:06:36. > :06:40.flow. As you heard, Singapore's economy grew by more than estimated

:06:41. > :06:46.in the first three months of 2014. That was because of stronger

:06:47. > :06:51.manufacturing. GDP rose to buy an annualised 2.3% compared to

:06:52. > :06:55.forecasts of 0.1% growth. But what the locals think of the growth so

:06:56. > :07:00.far? We took to the streets of Singapore to find out. They are

:07:01. > :07:04.doing quite well. We will continue to grow, with a lot of external

:07:05. > :07:10.events and we have made wise investment so far. The Singapore

:07:11. > :07:16.economy will probably start picking up, but probably at a slower pace as

:07:17. > :07:22.we move to a more developed economy itself. Things will be slower but

:07:23. > :07:25.eventually will move up. I believe the economy is very good in

:07:26. > :07:31.Singapore. I believe that many people are able to work and find

:07:32. > :07:36.good jobs. We are paid well. So I am very happy to be in Singapore

:07:37. > :07:41.actually. And other business News, the company that owns the

:07:42. > :07:45.Australia's Penfolds wine brand has rejected a takeover bid. The

:07:46. > :07:54.world's second`largest listed wine company said the offer was too low.

:07:55. > :08:05.The shares surged on that news. Indonesia is made up of 70,000

:08:06. > :08:11.islands, but most are protected IR law if the environment or its people

:08:12. > :08:15.are at risk. There are fears that law is being eroded. Our

:08:16. > :08:18.correspondent reports from a small environment where despite local, a

:08:19. > :08:26.Chinese company is in the first stages of setting up an iron iron

:08:27. > :08:31.ore mine. Once, all the I could see on this island. Life here had hardly

:08:32. > :08:37.changed for generations. Until this arrived. A Chinese company have been

:08:38. > :08:40.granted a license to explore half of the island for an iron ore mine. The

:08:41. > :08:45.local villagers are outraged. They tried to stop the trucks from being

:08:46. > :08:50.unloaded. That they were powerless against the armed police. Or

:08:51. > :08:54.generations people he lived without roads linking villages. And now,

:08:55. > :09:01.this road is being built by the mining company and will go up to

:09:02. > :09:07.where the mine will be. The villagers say the company has no

:09:08. > :09:10.right over this land and it is destroying their lifestyle. This

:09:11. > :09:15.woman has lived here all her life. She does not have much, but she

:09:16. > :09:20.knows that she does not want the mining company here. It will kill

:09:21. > :09:24.the fish. TRANSLATION: How are we going to eat? The villagers have

:09:25. > :09:27.filed a lawsuit against the company, and they won, but that law has

:09:28. > :09:42.expired and the company has now secured a new permit. This man

:09:43. > :09:47.allowed the company to keep mining. He is convinced it was the right

:09:48. > :09:54.position TRANSLATION: Of course the mining operation will destroy the

:09:55. > :09:58.land. But we will reclaim it later. We know how to do it. Despite

:09:59. > :10:05.concerns, the local ministry defended the government's decision.

:10:06. > :10:09.The mining sector plays an important role. What we are trying to do is

:10:10. > :10:12.determine which activity can generate the maximum benefit for

:10:13. > :10:15.local people first. I believe that mining activities will give them a

:10:16. > :10:27.good choice to enhance the quality of life. But does sound like empty

:10:28. > :10:32.promises for these villages. They feel powerless in the face of

:10:33. > :10:39.development, worried about their way of life vanishing. And that's it for

:10:40. > :10:53.Asia Business Report. Thank you for watching. You are watching BBC News.

:10:54. > :10:55.The top stories this hour: After months of political unrest,

:10:56. > :10:58.Thailand's army has declared martial law, but a military spokesman says

:10:59. > :11:01.the government is still running the country. Bosnia says 500,000 people

:11:02. > :11:03.have left or have been evacuated from their homes because of

:11:04. > :11:07.flooding. A quarter of the population is without clean water.

:11:08. > :11:11.Richard Scudamore, the Chief Executive of the English Premier

:11:12. > :11:12.League, won't face any disciplinary action for sexist remarks he made