13/06/2014

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:00:00. > :00:00.and positive news for savers. Now on BBC News, all the latest

:00:00. > :00:16.business news live from Singapore. As World Cup fever takes hold in

:00:17. > :00:20.Asia, we look at how companies can cash in on the action.

:00:21. > :00:27.And how Indonesia's growing appetite for chocolate is fuelling a new

:00:28. > :00:33.business opportunities. `` fuelling new.

:00:34. > :00:41.Thank you for joining us for this edition of Asia Business Report. I'm

:00:42. > :00:46.Rico Hizon. You could not have missed it. Brazil has kicked off the

:00:47. > :00:49.World Cup in style, winning off the first match against Croatia 3`1. But

:00:50. > :00:54.this is not just about the fans. Football is big business. Companies

:00:55. > :00:57.have paid up to $200 million to associate their brands with what is

:00:58. > :01:12.one of the largest events on the global sporting calendar. As a

:01:13. > :01:16.result, FIFA is estimated to make more than $1.4 billion over a

:01:17. > :01:26.four`year World Cup cycle. Adidas has signed up until 2030. What about

:01:27. > :01:32.other businesses? We look at why there are no big Asian brands. The

:01:33. > :01:35.huge pricetag. The top tier sponsors will pay $1.3 billion just to

:01:36. > :01:41.associate themselves with the event. For a lot of companies, that is out

:01:42. > :01:44.of their price range. What big Asian companies are trying to make money

:01:45. > :01:50.and the sponsor around the World Cup? The smart companies will attach

:01:51. > :01:54.themselves to the event, not the World Cup. They are attaching

:01:55. > :02:04.themselves to football. Sony are launching their 3D TV. Toshiba have

:02:05. > :02:07.a campaign, if your home country wins the event, you get a TV free.

:02:08. > :02:11.They are not attached to the World Cup, but they are basking in the

:02:12. > :02:13.glow of football. You have this halo effect. What about the smaller Asian

:02:14. > :02:21.companies? How are they leveraging themselves around the World Cup? Are

:02:22. > :02:23.they using social media? The smaller companies are using the fans to

:02:24. > :02:27.provide the content and the information. They are becoming the

:02:28. > :02:36.conduit. The big brands talk to the fans. The smaller brands are helping

:02:37. > :02:41.the fans connect with each other. They are producing contact content

:02:42. > :02:49.and material. It is all about the gimmicks? It is about who is the

:02:50. > :02:59.smartest brand. Who can connect to what consumers and fans believe.

:03:00. > :03:02.As India's new government starts work, we've been looking at the

:03:03. > :03:05.economic challenges it faces. India spends more than $20 billion on

:03:06. > :03:10.making fuel cheaper for its people. But producing those subsidies is a

:03:11. > :03:13.sensitive issue. You would find a red cylinder like

:03:14. > :03:20.this one in virtually every Indian household. It contains gas that is

:03:21. > :03:25.used for cooking. The government gives every family 12 cylinders each

:03:26. > :03:35.year for $84. Less than half the cost price. But, for many, with six

:03:36. > :03:44.mouths to feed at home that is not enough. TRANSLATION: One a month

:03:45. > :03:48.isn't sufficient for my family. If I have to buy gas at the actual price,

:03:49. > :03:56.that is money we can spend on our children's education and health. As

:03:57. > :04:00.it is, our incomes aren't high. A change in gas prices effects

:04:01. > :04:02.virtually every person in India. But subsidising the fuel is also a

:04:03. > :04:12.burden on the country's finances. Because India imports most of the

:04:13. > :04:16.fuel needs. `` its fuel needs. A chunk of that is spent on making

:04:17. > :04:26.diesel cheaper. The cost of this fuel has been at the centre of many

:04:27. > :04:29.political debates. During the tenure of the last coalition, an important

:04:30. > :04:32.ally walked out of government because of a hike in diesel prices.

:04:33. > :04:34.Diesel is used in lorries like these, which transport everything

:04:35. > :04:39.from fruit and vegetables to consumer goods. So, making the fuel

:04:40. > :04:45.more expensive means everything ends up costing more. But the new

:04:46. > :04:54.government won the recent election with a majority. Will they be

:04:55. > :04:57.stronger on fuel prices? When you get aggressive towards reducing the

:04:58. > :05:00.subsidy, it becomes unpopular. The government has come up with a

:05:01. > :05:08.mandate that has been given by popular demand. Especially in the

:05:09. > :05:11.context that people aspire to. That is government should reduce the cost

:05:12. > :05:20.of living and inflation. These motorists will be watching what

:05:21. > :05:23.happens closely. But with high expectations at home to keep prices

:05:24. > :05:26.low and pressure from credit ratings agencies to make India financially

:05:27. > :05:33.stable, this is a delicate balance the new government has to strike

:05:34. > :05:37.early in its time in power. Tesla's Chief Executive says that

:05:38. > :05:42.are moving to speed up the development of electric cars. The

:05:43. > :05:52.firm sold just under 23,000 of its new model last year.

:05:53. > :05:55.Expedia has become the latest company to accept bitcoins as

:05:56. > :05:59.payment. It is restricting the trial to its US website.

:06:00. > :06:04.Water may be a scarce resource in many places, but it can also be

:06:05. > :06:25.crucial for businesses. Like Coca`Cola. We spoke to the director

:06:26. > :06:28.of its water switch programme. There are certain times and places, take

:06:29. > :06:31.the midwest of the United States, take northwest India, the north of

:06:32. > :06:42.China, water supplies are limited. That's being exacerbated by overuse.

:06:43. > :06:45.The amount of water that is replenished naturally, through rain,

:06:46. > :06:47.snow, ice, can't keep up with the amount of water being used by

:06:48. > :06:50.civilisation. Has water become the oil of the 21st`century? The

:06:51. > :07:06.comparisons to oil suggest a level of scarcity. And competition. While

:07:07. > :07:09.that is true in certain times and places, you can face water stresses

:07:10. > :07:13.from scarcity to quality, the amount of water on earth is fixed. It is a

:07:14. > :07:24.finite resources. You can't create or destroy it. It is renewable.

:07:25. > :07:27.Unlike fossil fuels, oil, coal. What's more is Coke going to do to

:07:28. > :07:34.respond to criticism that it is using up valuable resources in water

:07:35. > :07:37.stressed areas? The programmes, the partners and the progress we have

:07:38. > :07:46.made over the last ten years has shown an evolution. A maturity in

:07:47. > :07:54.the understanding of water issues and our response. It does not mean

:07:55. > :07:57.we're done. The 500 projects we have with partners in 3000 communities

:07:58. > :08:00.around the world, the investments we have made, it is the beginning.

:08:01. > :08:05.Water is always going to be required. There is always going to

:08:06. > :08:08.be something to do. With rising incomes, Indonesians

:08:09. > :08:11.have aquired a taste for chocolate. You would be hard pressed to find

:08:12. > :08:22.any good`quality chocolates made in the country.

:08:23. > :08:32.Nobody would call these an Indonesian delicacy. Chocolates in

:08:33. > :08:36.Indonesia used to contain more on milk and sugar than cocoa. But there

:08:37. > :08:39.is a growing appetite. The owners began selling chocolate 13 years

:08:40. > :08:42.ago. They started the business from home. But it has grown to 13

:08:43. > :08:59.outlets. They use cocoa powder and butter from Belgium. We want to

:09:00. > :09:02.maintain our quality. It doesn't mean we don't trust the quality of

:09:03. > :09:07.Indonesian chocolate. But we can export to another country. Some of

:09:08. > :09:11.the best cocoa beans actually come from right here in Indonesia. Like

:09:12. > :09:15.those grown by villagers on this island. This is where a lot of the

:09:16. > :09:18.cocoa beans come from. There is a variety of trees here. But these

:09:19. > :09:27.farmers make most of their money from cocoa. These beans end up in

:09:28. > :09:30.some of the best chocolates in Europe, not Indonesia. But things

:09:31. > :09:32.may be changing. An American food processing company has been sourcing

:09:33. > :09:38.cocoa beans from Indonesia for nearly 20 years. Now it's investing

:09:39. > :09:47.in a $100 million cocoa processing plant in Indonesia. Its first in

:09:48. > :09:50.Asia. Given the rapid growth of cocoa consumption in Indonesia and

:09:51. > :09:54.Asia, and the fact that Indonesia is the third largest producing company

:09:55. > :09:57.in the world, the next step for the region would be a cocoa processing

:09:58. > :10:04.plant. Harvest time. The mood is jubilant.

:10:05. > :10:12.Good`quality cocoa has nearly doubled these villagers' income. If

:10:13. > :10:17.chocolate making becomes an industry here, there's hope for an even

:10:18. > :10:23.better future. A quick look at the markets. All

:10:24. > :10:30.Asian stock markets are under pressure. Thank you for joining us.

:10:31. > :10:40.The sport is next. I'm Mike Embley. The top stories

:10:41. > :10:43.this hour: President Obama is said to be considering options, including

:10:44. > :10:48.the use of airstrikes, to help the Iraqi government counter the

:10:49. > :10:50.Islamist insurgency. And Brazilians have been celebrating after the host

:10:51. > :10:51.nation won the