Browse content similar to 01/07/2014. Check below for episodes and series from the same categories and more!
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telephone directories. Those are the headlines. Let's go to | :00:00. | :00:00. | |
Singapore for all the latest business news. | :00:00. | :00:15. | |
BNP Paribas pleads guilty to breaking US sanctions against | :00:16. | :00:18. | |
blacklisted countries. Can it survive the record fines? Japan pop | :00:19. | :00:25. | |
back biggest manufacturer turns pessimistic after a sales tax | :00:26. | :00:26. | |
increase `` Japan's. Welcome to Asia Business Report. | :00:27. | :00:39. | |
France's largest bank, BNP Paribas, is told it will be fined almost $9 | :00:40. | :00:43. | |
billion for transferring funds to blacklisted countries. It is the | :00:44. | :00:48. | |
largest penalty for a case like this in US history. It is accused of | :00:49. | :00:52. | |
breaking sanctions against Iran, Cuba and Sudan between 2002`2009. | :00:53. | :00:59. | |
The record fine quadruples a similar penalty imposed on HSBC 80 years | :01:00. | :01:07. | |
ago. For more, I am joint by an author in Sydney `` HSBC are few | :01:08. | :01:11. | |
years ago. What do you make of this huge fine is that what will the | :01:12. | :01:19. | |
implications be? `` this huge fine? There will be some impact but there | :01:20. | :01:21. | |
will be relieved that the actual fine has been agreed to. There is no | :01:22. | :01:26. | |
more uncertainty. It will impact the profits of the bank this year | :01:27. | :01:29. | |
because, essentially, it equates to roughly what the bank makes in a | :01:30. | :01:34. | |
year. They will have to make a substantial write`down. It will be | :01:35. | :01:39. | |
extraordinary. The capital will be reduced. They are comfortably at | :01:40. | :01:44. | |
10%. We will have to wait and see what happens in the EU with their | :01:45. | :01:48. | |
asset quality review, whether there are implications from that. The | :01:49. | :01:51. | |
damage will come from the fact that they won't be allowed to clear US | :01:52. | :01:56. | |
dollar transactions begin in January next year for one year. It will have | :01:57. | :02:01. | |
franchise issues for them. It is unclear whether it will affect all | :02:02. | :02:04. | |
aspects of the operations of the bank. Those are some of the things | :02:05. | :02:10. | |
affecting BNP Paribas itself. There will be wider implications for the | :02:11. | :02:14. | |
banking industry generally. Let's look at some of those. What will | :02:15. | :02:19. | |
they be? Banks today are looking nervously at the outcome. It won't | :02:20. | :02:26. | |
be the last prosecution. There will be others. We have seen HSBC and ING | :02:27. | :02:31. | |
and Standard Chartered. All foreign banks interest `` interestingly. | :02:32. | :02:39. | |
There are wider investigations outside of these specific ones, to | :02:40. | :02:43. | |
do with the manipulation of different rates, like the foreign | :02:44. | :02:46. | |
exchange rates, the golden rates and so on. The bad news for the banks in | :02:47. | :02:51. | |
terms of prosecutions and fines they will have to pay an over and this | :02:52. | :02:57. | |
will affect the sector's profitability and ultimately their | :02:58. | :03:00. | |
sharemarket performance. This is the biggest fine ever by the US | :03:01. | :03:05. | |
regulator. Are there are concerns the regulator might have | :03:06. | :03:10. | |
extraterritorial reach beyond the US? This is the biggest issue about | :03:11. | :03:17. | |
the BNP Paribas and the previous fines. The US are taking their | :03:18. | :03:21. | |
legislation and applying it to other banks. They are using the primacy of | :03:22. | :03:27. | |
the US dollar and the fact that foreign banks have to clear their US | :03:28. | :03:30. | |
dollars through New York, which has been the weapon they have used. It | :03:31. | :03:37. | |
is a concerted are of US foreign and economic policy and we now risk | :03:38. | :03:44. | |
seeing retaliation. Immediately, it will be in trade talks between | :03:45. | :03:52. | |
Europe and America. Thank you. A financial expert in Sydney. | :03:53. | :03:58. | |
The Bank of Japan's quarterly survey shows business confidence worsened | :03:59. | :04:03. | |
among the largest manufacturers. It fell by five points in the three | :04:04. | :04:07. | |
months to June two plus 12, below market forecast for a plus 15. | :04:08. | :04:12. | |
Overall, there was optimism about the economy. It might be due to the | :04:13. | :04:19. | |
PM 's economic policies, which saw inflation rise 3.4% in May, its | :04:20. | :04:24. | |
fastest pace in 32 years. Household spending fell by 8%, and the sales | :04:25. | :04:32. | |
tax began biting. I asked an analyst what he made of the latest figures. | :04:33. | :04:40. | |
We are looking closely and this time it is because the sales tax and | :04:41. | :04:43. | |
consumption tax went up. We had a boom before, but we have negative | :04:44. | :04:49. | |
growth now. It is important what companies make out of that. We see | :04:50. | :04:53. | |
the relief that the impact wasn't a strong as expected. The forecast, | :04:54. | :04:58. | |
which has been negative, went down for this quarter, but they are | :04:59. | :05:02. | |
already in terms of outlook going up again. A split between | :05:03. | :05:07. | |
manufacturers, which has received a big hit, and a mob looted outlook on | :05:08. | :05:12. | |
the nonmanufacturers, which are seeing households affected in the | :05:13. | :05:17. | |
long`term. Certainly by the sales tax which took effect in April. What | :05:18. | :05:23. | |
does this say about the PM 's economics? His reform plan to | :05:24. | :05:26. | |
restructure the economy. Is it working? It is working so far. What | :05:27. | :05:33. | |
we see is that basically industry must take over. Last year, we had | :05:34. | :05:39. | |
this expansion in terms of money printing and monetary expansion and | :05:40. | :05:43. | |
fiscal expansion, optimism with talk of structural reforms. Now, | :05:44. | :05:46. | |
implementation has to come in. This depends on invest in `` investment | :05:47. | :05:52. | |
corporations. Companies are saying, we will invest more than 7% | :05:53. | :05:58. | |
traditionally this year. This is close to the number. Companies are | :05:59. | :06:02. | |
investing. They are optimistic that demand will increase again and that | :06:03. | :06:10. | |
business conditions are improving. It is interesting to see where | :06:11. | :06:13. | |
companies are headed next. Will this day to drive the central bank to | :06:14. | :06:22. | |
change their policy? No. The short`term engines of growth, the | :06:23. | :06:26. | |
government pushing the economy, talking up the economy, the Bank of | :06:27. | :06:30. | |
Japan printing more money, lowering the exchange rate, this is done. | :06:31. | :06:37. | |
Stable companies are expected to be stable. The question is, can they | :06:38. | :06:42. | |
sell overseas and in Japan's it depends on if they are investing and | :06:43. | :06:46. | |
coming up with new products `` Japan? They need to put money behind | :06:47. | :06:56. | |
their word and behind their plans. China's factory activity accelerated | :06:57. | :06:59. | |
to a six`month high in June, showing the economy is gaining strength. The | :07:00. | :07:04. | |
purchasing managers index rose to 51 last month, compared with 50.8 in | :07:05. | :07:08. | |
May, which was in line with market estimates. In Japan, no`frills air | :07:09. | :07:13. | |
travel is still a phenomenon which hasn't taken off. Today, the | :07:14. | :07:21. | |
Japanese online retailer Rakuten and air Asia are expected to announce | :07:22. | :07:26. | |
they are teaming up to launch a new airline in the market. Our | :07:27. | :07:27. | |
correspondent reports on what the deal would mean for the companies. | :07:28. | :07:34. | |
Air Asia is expected to it announce a less conventional approach to | :07:35. | :07:36. | |
entering the Japanese market by throwing in its fortunes with the | :07:37. | :07:45. | |
online retailer, Rakutan. It is the answer to Amazon and sells watches, | :07:46. | :07:49. | |
clothing, medical supplies. It has bought dozens of companies and made | :07:50. | :07:55. | |
a billionaire of the founder. Its most recent purchase is the Israeli | :07:56. | :08:04. | |
messaging service, Viper, for 900 million dollars `` Vibr. What might | :08:05. | :08:11. | |
they gain by linking? It could mean a boost to the online travel site of | :08:12. | :08:17. | |
Rakutan's, one of Japan's largest. It could mean a second chance in the | :08:18. | :08:21. | |
lucrative Japanese market for Air Asia. It is among the world's | :08:22. | :08:28. | |
largest. Last year, Air Asia pulled out of a venture with ANA. It is | :08:29. | :08:32. | |
clear the company has had a different approach with Air Asia | :08:33. | :08:38. | |
focusing on cost and 80 and ANA focusing on servers. They bought out | :08:39. | :08:44. | |
the 33% stake and rebranded the low`cost carrier as Vanilla Air. | :08:45. | :08:49. | |
Now, Air Asia will be in competition with the former partner. It will | :08:50. | :08:53. | |
compete with a number of other carriers, including Jet start Japan | :08:54. | :08:59. | |
and Peach. White one of the senior military | :09:00. | :09:03. | |
officials in China has been accused of accepting bribes and has been | :09:04. | :09:09. | |
expelled from the Communist Party. He is under investigation and will | :09:10. | :09:13. | |
face a military court. For the latest development in the crackdown | :09:14. | :09:17. | |
on corruption in government and the armed forces. Our correspondent has | :09:18. | :09:24. | |
more. China is turning its army into a | :09:25. | :09:28. | |
powerful fighting force. Until last year, one of the senior generals in | :09:29. | :09:33. | |
charge of that process was this man. He is retired. Authorities say he is | :09:34. | :09:42. | |
under investigation for corruption. The news was announced on national | :09:43. | :09:48. | |
TV. The general had taken bribes, and so had his family. He promoted | :09:49. | :09:54. | |
his friends. The Communist Party has expelled him. He now faces a | :09:55. | :09:59. | |
military court. The general wasn't just an army man. He was a | :10:00. | :10:04. | |
politician in the Communist Party's decision`making Politburo. He is | :10:05. | :10:08. | |
seen here alongside another corrupt official. He had powerful friends, | :10:09. | :10:15. | |
so the decision to investigate wasn't taken lightly. It was made by | :10:16. | :10:21. | |
the politburo at a meeting presided over by the President himself. The | :10:22. | :10:26. | |
president has promised to root out corruption in the Armed Forces and | :10:27. | :10:29. | |
elsewhere. Nervous officials will be wondering who is next. Michael | :10:30. | :10:35. | |
Bristow, BBC News. That is it for this addition of Asia | :10:36. | :10:39. | |
Business Report. You can follow us on Twitter. Thank you for watching. | :10:40. | :10:51. | |
I'm Adnan Nawaz. The top stories this hour: Israel has vowed to make | :10:52. | :10:54. | |
Hamas pay after three Israeli teenagers were kidnapped and killed | :10:55. | :11:01. | |
in the West Bank. Hamas denies allegations it was involved. | :11:02. | :11:05. | |
Ukraine's President has called an end to | :11:06. | :11:06. |