04/07/2014 Asia Business Report


04/07/2014

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identified the location of shale`bearing rock. Now on BBC News

:00:00.:00:00.

all the latest business news live from Singapore. After a strong jobs

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report spurs a record rally on Wall Street. And, from living room to

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boardroom, research is claimed playing videogames can help improve

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your business skills. Welcome to this Friday edition of Asia Business

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Report. We are seeing positive gains in Asian stock markets this morning,

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following encouraging news from the US jobs market. Japan, Korea,

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Australia, they are all flat to higher after the US reports that its

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unemployment rate fell to a six`year low of 6.1%. It spurred US stocks to

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new highs, with the Dow Jones industrial average breaking through

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the key 17,000 point level for the first time ever. But is the rally

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sustainable? Our reporter was in New York. Not everyone expected this

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kind of a jump. Most estimates were around 200,000 jobs added to the

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economy, and many didn't think the unemployment rate would change much.

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This comes as really good news, and we have been looking for the Dow

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Jones to go up about 17,000 for a couple of days, but it was the very

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positive jobs report that pushed it up into that territory. Despite what

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we are seeing in the economy, a lot of jobs have been created. A lot of

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the jobs that are being created are in fact part`time jobs, and there is

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still the problem of what Janet Yellen, the chairperson of the

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Federal Reserve, called the shadow unemployment. That is people who

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aren't looking for work at all. They have dropped out of even searching

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for a job, and that is a particular problem here in the US. Although we

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are seeing a lot more people that are being employed, we are not

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getting the kinds of jobs that they want. Earlier, I asked an economist,

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Tony Nash, for his take on the data. I think it is more of a cause for

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relief than celebration. It is very good news, and hopefully the start

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of a good trend in the US economy. It is a cause for relief, but we

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know that the first`quarter GDP contracted 3%, so there is a real

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concern, particularly here in Asia, with a lot of investors watching the

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US and manufacturers counting on US markets, so to what extent does the

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US continue to influence what happens here? It still does in a big

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way. Exports from Asia still go to the US as a large share of the

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export market. Many companies contribute a lot in terms of direct

:03:10.:03:12.

investment, and things for the large economies in Asia. There is a huge

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overlap between the benefits for those countries. Unfortunately, but

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what we are seeing is the rate of growth in countries like China to

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the US declining, while it grows almost 10% in the other direction.

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It was something like 14% last year, it is 6% this year. Those rates of

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growth of exports from Japan, China and other places are slowing this

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year. Tony Nash from Delta economics. In other business news,

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China and South Korea's presidents have agreed to sign a free`trade

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deal by the end of year. They also plan to allow direct trading of

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their currencies in order to deepen economic ties. The announcement came

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during a trip by the Chinese leader, Xi Jinping, to South Korea, which

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ends today. Sharp electronics may stop producing LCD TVs in Europe.

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Sharp is expecting to focus on Asian and American markets. They recently

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posted their annual first profit in three years. Next week, air India

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joined a coalition of more than two dozen carriers around the world,

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Star Alliance. It is a big move, given it was previously turned down

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for not being scratch. It continues to deal with huge debts and a

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history of labour unrest. It also faces a rising number of competitive

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rivals. The importance of the national carrier is that it provides

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connectivity that others don't. Look at the biggest airline of this

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country, they provide connectivity to about 30 destinations in the

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country. Air India provides connectivity to 63 places in the

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country. If there was no national carrier, who would connect these

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places? You are the only airline where the government has pumped in

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so much money to bail you out. Critics have asked the question

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repeatedly that you have got a lot of taxpayer money, and why should

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Air India be entitled to that? What is your reaction? All owners of

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companies pump in money, somebody's money has to go into a company for

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it to run successfully. In this case, it is government money that is

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being pumped in, after all the transport companies. Whether it is

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railways, whether it is a state transport companies, look at the

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power companies which are run by the government. It is taxpayer money

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ultimately that goes into it. Too much is made of this in the case of

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Air India. What is your turnaround plan for Air India? How do you plan

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to restructure the company? Costs are the most important thing. If the

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company does not cut costs we cannot keep going infinitely. We have been

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trying to do that, and we have made substantial savings as far as

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employee costs are concerned. Our productivity has gone up 29% in the

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last three years. The second important thing is the 787, which

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will cut down on fuel bills. That should make a difference to our

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economics. The third important thing is basically that we can see that a

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network is rational. You can catch more of that interview with the

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managing director of Air India this weekend. For those of you out there

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who love plain computer games, you will are probably sick and tired of

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people telling you you are wasting your time. Researchers in Singapore

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have found that some games could help you develop the skills you need

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for a successful career. Problem`solving, planning and

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decision`making, these are highly sought`after skills in any

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boardroom. You can learn these by going to business school or climbing

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away up the ladder. But a new study done here at this technological

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university suggests playing videogames can develop these skills

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as well. With the now is Michael Pattison, the senior author of the

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study. You have highlighted this game. How does this develop your

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mental abilities? Unlike most games, in this game, before you start you

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need to plan what you are doing next. Most games, you fire when you

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see an enemy, but in this game I have to plan, OK, what is the

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sequence I can do in order to get the candy into the creature's now.

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`` mouth. In the business world we often have a steel where we plan

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what we will say next. The situation may change, we need to be more

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reactive to situations. This is a game in which a strategy that worked

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in the previous level won't work in the next level. How relevant is this

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when there are not the same pressures you face in a boardroom?

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One element of this game is that if you keep trying you will be

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successful. Try different methods. That can work in business. If you

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are designing a new product, and the manufacturing didn't work the first

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time, you can try a different approach. Sometimes it may seem

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stressful and you might not think you can get through, but if you keep

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persisting you will survive, and if you don't succeed you learn how to

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deal with failure, because in the game many times you fail. Like in a

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boardroom, your pitch may not be successful but you can find a

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different boardroom, so it teaches mental toughness. The bad news for

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gamers is that not all videogames will help you develop these specific

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skills. The important thing is to play complex puzzle games if you

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want to think more creatively on your feet. As cashless transactions

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come more common, big bank notes will be harder to find. This is a

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specimen of Singapore's $10,000 note. If it were real, it would be

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worth $8000 US. It will be taken off the printing presses from the 1st of

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October, in a move to lower with the risk of money laundering. In the US,

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the biggest note currently printed is the $100 bill, while in the UK

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the highest denomination is only ?50, worth 85 US dollars. In

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Switzerland, the biggest banknote you will find his 1000 Swiss francs,

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which is worth about $1125. The biggest bill in Indonesia is the

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100,000 note. It would make you feel rich. That is fascinating about what

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you can learn about notes around the world. There is more on our website.

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Thank you for watching. A bridge has collapsed in the Brazilian city of

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Belo Horizonte, killing at least two people. 19 are injured. It is feared

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more may be trapped in their vehicles under the

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