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and positive news for savers. Now on BBC News, all the latest | :00:00. | :00:00. | |
business news live from Singapore. As World Cup fever takes hold in | :00:00. | :00:16. | |
Asia, we look at how companies can cash in on the action. | :00:17. | :00:20. | |
And how Indonesia's growing appetite for chocolate is fuelling a new | :00:21. | :00:27. | |
business opportunities. `` fuelling new. | :00:28. | :00:33. | |
Thank you for joining us for this edition of Asia Business Report. I'm | :00:34. | :00:41. | |
Rico Hizon. You could not have missed it. Brazil has kicked off the | :00:42. | :00:46. | |
World Cup in style, winning off the first match against Croatia 3`1. But | :00:47. | :00:49. | |
this is not just about the fans. Football is big business. Companies | :00:50. | :00:54. | |
have paid up to $200 million to associate their brands with what is | :00:55. | :00:57. | |
one of the largest events on the global sporting calendar. As a | :00:58. | :01:12. | |
result, FIFA is estimated to make more than $1.4 billion over a | :01:13. | :01:16. | |
four`year World Cup cycle. Adidas has signed up until 2030. What about | :01:17. | :01:26. | |
other businesses? We look at why there are no big Asian brands. The | :01:27. | :01:32. | |
huge pricetag. The top tier sponsors will pay $1.3 billion just to | :01:33. | :01:35. | |
associate themselves with the event. For a lot of companies, that is out | :01:36. | :01:41. | |
of their price range. What big Asian companies are trying to make money | :01:42. | :01:44. | |
and the sponsor around the World Cup? The smart companies will attach | :01:45. | :01:50. | |
themselves to the event, not the World Cup. They are attaching | :01:51. | :01:54. | |
themselves to football. Sony are launching their 3D TV. Toshiba have | :01:55. | :02:04. | |
a campaign, if your home country wins the event, you get a TV free. | :02:05. | :02:07. | |
They are not attached to the World Cup, but they are basking in the | :02:08. | :02:11. | |
glow of football. You have this halo effect. What about the smaller Asian | :02:12. | :02:13. | |
companies? How are they leveraging themselves around the World Cup? Are | :02:14. | :02:21. | |
they using social media? The smaller companies are using the fans to | :02:22. | :02:23. | |
provide the content and the information. They are becoming the | :02:24. | :02:27. | |
conduit. The big brands talk to the fans. The smaller brands are helping | :02:28. | :02:36. | |
the fans connect with each other. They are producing contact content | :02:37. | :02:41. | |
and material. It is all about the gimmicks? It is about who is the | :02:42. | :02:49. | |
smartest brand. Who can connect to what consumers and fans believe. | :02:50. | :02:59. | |
As India's new government starts work, we've been looking at the | :03:00. | :03:02. | |
economic challenges it faces. India spends more than $20 billion on | :03:03. | :03:05. | |
making fuel cheaper for its people. But producing those subsidies is a | :03:06. | :03:10. | |
sensitive issue. You would find a red cylinder like | :03:11. | :03:13. | |
this one in virtually every Indian household. It contains gas that is | :03:14. | :03:20. | |
used for cooking. The government gives every family 12 cylinders each | :03:21. | :03:25. | |
year for $84. Less than half the cost price. But, for many, with six | :03:26. | :03:35. | |
mouths to feed at home that is not enough. TRANSLATION: One a month | :03:36. | :03:44. | |
isn't sufficient for my family. If I have to buy gas at the actual price, | :03:45. | :03:48. | |
that is money we can spend on our children's education and health. As | :03:49. | :03:56. | |
it is, our incomes aren't high. A change in gas prices effects | :03:57. | :04:00. | |
virtually every person in India. But subsidising the fuel is also a | :04:01. | :04:02. | |
burden on the country's finances. Because India imports most of the | :04:03. | :04:12. | |
fuel needs. `` its fuel needs. A chunk of that is spent on making | :04:13. | :04:16. | |
diesel cheaper. The cost of this fuel has been at the centre of many | :04:17. | :04:26. | |
political debates. During the tenure of the last coalition, an important | :04:27. | :04:29. | |
ally walked out of government because of a hike in diesel prices. | :04:30. | :04:32. | |
Diesel is used in lorries like these, which transport everything | :04:33. | :04:34. | |
from fruit and vegetables to consumer goods. So, making the fuel | :04:35. | :04:39. | |
more expensive means everything ends up costing more. But the new | :04:40. | :04:45. | |
government won the recent election with a majority. Will they be | :04:46. | :04:54. | |
stronger on fuel prices? When you get aggressive towards reducing the | :04:55. | :04:57. | |
subsidy, it becomes unpopular. The government has come up with a | :04:58. | :05:00. | |
mandate that has been given by popular demand. Especially in the | :05:01. | :05:08. | |
context that people aspire to. That is government should reduce the cost | :05:09. | :05:11. | |
of living and inflation. These motorists will be watching what | :05:12. | :05:20. | |
happens closely. But with high expectations at home to keep prices | :05:21. | :05:23. | |
low and pressure from credit ratings agencies to make India financially | :05:24. | :05:26. | |
stable, this is a delicate balance the new government has to strike | :05:27. | :05:33. | |
early in its time in power. Tesla's Chief Executive says that | :05:34. | :05:37. | |
are moving to speed up the development of electric cars. The | :05:38. | :05:42. | |
firm sold just under 23,000 of its new model last year. | :05:43. | :05:52. | |
Expedia has become the latest company to accept bitcoins as | :05:53. | :05:55. | |
payment. It is restricting the trial to its US website. | :05:56. | :05:59. | |
Water may be a scarce resource in many places, but it can also be | :06:00. | :06:04. | |
crucial for businesses. Like Coca`Cola. We spoke to the director | :06:05. | :06:25. | |
of its water switch programme. There are certain times and places, take | :06:26. | :06:28. | |
the midwest of the United States, take northwest India, the north of | :06:29. | :06:31. | |
China, water supplies are limited. That's being exacerbated by overuse. | :06:32. | :06:42. | |
The amount of water that is replenished naturally, through rain, | :06:43. | :06:45. | |
snow, ice, can't keep up with the amount of water being used by | :06:46. | :06:47. | |
civilisation. Has water become the oil of the 21st`century? The | :06:48. | :06:50. | |
comparisons to oil suggest a level of scarcity. And competition. While | :06:51. | :07:06. | |
that is true in certain times and places, you can face water stresses | :07:07. | :07:09. | |
from scarcity to quality, the amount of water on earth is fixed. It is a | :07:10. | :07:13. | |
finite resources. You can't create or destroy it. It is renewable. | :07:14. | :07:24. | |
Unlike fossil fuels, oil, coal. What's more is Coke going to do to | :07:25. | :07:27. | |
respond to criticism that it is using up valuable resources in water | :07:28. | :07:34. | |
stressed areas? The programmes, the partners and the progress we have | :07:35. | :07:37. | |
made over the last ten years has shown an evolution. A maturity in | :07:38. | :07:46. | |
the understanding of water issues and our response. It does not mean | :07:47. | :07:54. | |
we're done. The 500 projects we have with partners in 3000 communities | :07:55. | :07:57. | |
around the world, the investments we have made, it is the beginning. | :07:58. | :08:00. | |
Water is always going to be required. There is always going to | :08:01. | :08:05. | |
be something to do. With rising incomes, Indonesians | :08:06. | :08:08. | |
have aquired a taste for chocolate. You would be hard pressed to find | :08:09. | :08:11. | |
any good`quality chocolates made in the country. | :08:12. | :08:22. | |
Nobody would call these an Indonesian delicacy. Chocolates in | :08:23. | :08:32. | |
Indonesia used to contain more on milk and sugar than cocoa. But there | :08:33. | :08:36. | |
is a growing appetite. The owners began selling chocolate 13 years | :08:37. | :08:39. | |
ago. They started the business from home. But it has grown to 13 | :08:40. | :08:42. | |
outlets. They use cocoa powder and butter from Belgium. We want to | :08:43. | :08:59. | |
maintain our quality. It doesn't mean we don't trust the quality of | :09:00. | :09:02. | |
Indonesian chocolate. But we can export to another country. Some of | :09:03. | :09:07. | |
the best cocoa beans actually come from right here in Indonesia. Like | :09:08. | :09:11. | |
those grown by villagers on this island. This is where a lot of the | :09:12. | :09:15. | |
cocoa beans come from. There is a variety of trees here. But these | :09:16. | :09:18. | |
farmers make most of their money from cocoa. These beans end up in | :09:19. | :09:27. | |
some of the best chocolates in Europe, not Indonesia. But things | :09:28. | :09:30. | |
may be changing. An American food processing company has been sourcing | :09:31. | :09:32. | |
cocoa beans from Indonesia for nearly 20 years. Now it's investing | :09:33. | :09:38. | |
in a $100 million cocoa processing plant in Indonesia. Its first in | :09:39. | :09:47. | |
Asia. Given the rapid growth of cocoa consumption in Indonesia and | :09:48. | :09:50. | |
Asia, and the fact that Indonesia is the third largest producing company | :09:51. | :09:54. | |
in the world, the next step for the region would be a cocoa processing | :09:55. | :09:57. | |
plant. Harvest time. The mood is jubilant. | :09:58. | :10:04. | |
Good`quality cocoa has nearly doubled these villagers' income. If | :10:05. | :10:12. | |
chocolate making becomes an industry here, there's hope for an even | :10:13. | :10:17. | |
better future. A quick look at the markets. All | :10:18. | :10:23. | |
Asian stock markets are under pressure. Thank you for joining us. | :10:24. | :10:30. | |
The sport is next. I'm Mike Embley. The top stories | :10:31. | :10:40. | |
this hour: President Obama is said to be considering options, including | :10:41. | :10:43. | |
the use of airstrikes, to help the Iraqi government counter the | :10:44. | :10:48. | |
Islamist insurgency. And Brazilians have been celebrating after the host | :10:49. | :10:50. | |
nation won the | :10:51. | :10:51. |