21/07/2014 Asia Business Report


21/07/2014

Similar Content

Browse content similar to 21/07/2014. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

to close its accident and emergency department. Now on BBC News all the

:00:07.:00:08.

latest business news live from Singapore.

:00:09.:00:16.

There is an uncertain future. After the latest tragedy, Malaysia

:00:17.:00:29.

Airlines come through this? An icon that spans five generations. Welcome

:00:30.:00:42.

to Asia Business Report. It is hard for an airline to rebound from one

:00:43.:00:47.

disaster, let alone to within a space of two months. Even before the

:00:48.:00:55.

disappearance of MH 370, Malaysia Airlines were struggling. Can they

:00:56.:00:57.

rebound after have three options. They can put a

:00:58.:01:15.

lot of money after it, but I don't think that is viable. They could do

:01:16.:01:22.

something similar to Japan Airlines. They could put it into bankruptcy.

:01:23.:01:32.

They could privatise the airline. Let's look at the option of carrying

:01:33.:01:36.

on as they are. They have the backing of the government. Can they

:01:37.:01:44.

keep pouring money in? They can do that on the short`term. In the

:01:45.:01:51.

mid`term to the long`term, that is not an option. They are losing money

:01:52.:01:57.

and something needs to done. Even before the second incident, they

:01:58.:02:02.

were already making huge losses. What about bump

:02:03.:02:09.

`` bankruptcy? That is what Japan Airlines did. It is possible. We

:02:10.:02:25.

have seen their share price decrease since the beginning of the year. You

:02:26.:02:29.

have to do things to turn the airline around. Privatisation might

:02:30.:02:37.

mean rebranding and giving it a new name. That would cost hundreds of

:02:38.:02:42.

millions of dollars. It will cost money. With privatisation, we may

:02:43.:02:48.

look at some spin`off of the operations and Malaysia Airlines

:02:49.:02:54.

keeping the carrier. Will this impact other regional carriers and

:02:55.:03:00.

travel in the region? Without a doubt. Long`distance travel has been

:03:01.:03:06.

challenged since the Asian financial crisis. Lack of safety, which would

:03:07.:03:10.

be the first concern of all airlines, is going to create

:03:11.:03:14.

problems for consumers travelling at those distances. Stock is falling

:03:15.:03:24.

11% on Friday in Kuala Lumpur. The share price is down more than 30%

:03:25.:03:29.

this year. We will know the latest numbers soon when the stock exchange

:03:30.:03:35.

opens for trading. In other news, one of India 's largest industrial

:03:36.:03:43.

conglomerates has reported a jump in profits, thanks to return turnaround

:03:44.:03:48.

in oil and gas. Net profit in April and June rose to 1 billion. That is

:03:49.:03:55.

14% higher than the year earlier. It is controlled by India 's richest

:03:56.:04:00.

man. He has many plans in the pipeline and includes retail. What

:04:01.:04:14.

happens when the World Bank president tells a chief business

:04:15.:04:19.

correspondent about Chinese leadership. My predecessor started a

:04:20.:04:26.

wonderful process. He and the Chinese government put forward a

:04:27.:04:33.

report called China 2030. It laid out all the calls for reform. They

:04:34.:04:40.

wanted to talk about growth driven from exports to one driven by

:04:41.:04:46.

consumption and services. They made explicit commitments to move toward

:04:47.:04:50.

higher quality and more sustainable growth. They followed the plan and

:04:51.:04:56.

they follow it today. Even though growth has dropped, they continue to

:04:57.:05:01.

go forward with reforms. The Premier and the President asked me to tackle

:05:02.:05:06.

healthcare. It is a huge issue for China. They have rapidly rising

:05:07.:05:11.

demands and there is a huge demand on hospitals. They have to get this

:05:12.:05:18.

right. They have to get this trusting relationship to continue.

:05:19.:05:23.

We have to up our game. We have to provide value. I will follow the

:05:24.:05:29.

study closely. It is my area. It is something I have worked on my entire

:05:30.:05:34.

life. We provide the Chinese a vision of how to go forward that

:05:35.:05:38.

will decrease their costs and improve their outcomes. If we can do

:05:39.:05:44.

that, we can show that we are relevant. It is important to do

:05:45.:05:48.

that. There is a new development bank. It is something that you have

:05:49.:05:54.

said that you would look forward to working with, but what kind of

:05:55.:05:59.

formal arrangements would be needed to ensure that the work of that bank

:06:00.:06:08.

was co`ordinated with your work? I welcome the increased efforts to

:06:09.:06:13.

fund infrastructure. It is what we need to end poverty and boost

:06:14.:06:17.

prosperity. There is not a clear operating procedure that has been

:06:18.:06:22.

laid out in great detail. We look forward to working closely. The

:06:23.:06:26.

Chinese government has asked us to have a person to work with them to

:06:27.:06:30.

help as they put their ideas together. We are happy to do that.

:06:31.:06:36.

You can catch more of that interview with the World Bank president on

:06:37.:06:48.

Talking Business. After 97 years of family ownership, a majority stake

:06:49.:06:56.

in Forbes media has been sold. A Hong Kong `based group has bought

:06:57.:07:01.

it. Forbes magazine was sold for an undisclosed sum. The Forbes family

:07:02.:07:08.

says it will retain a significant share of the group, which includes

:07:09.:07:13.

the magazine. The current chairman and editor in chief will remain. For

:07:14.:07:20.

over a years, one family has been making Australia 's most iconic

:07:21.:07:26.

hats. Since its inception, it has been run by the same family. There

:07:27.:07:30.

is a lot to consider when thinking about who is next in line. Aside

:07:31.:07:42.

from one of these, one of these hats is about as icon at the Australian

:07:43.:07:47.

as it gets. The hardware in rabbit fur hats are a staple for farmers

:07:48.:07:52.

and lunches. They have graced the hands of politicians, celebrities

:07:53.:07:59.

and religious leaders. The company has been run by the same family

:08:00.:08:09.

since its inception 137 years ago. The factory in New South Wales

:08:10.:08:14.

produces 140,000 hats each year. They use custom machinery that was

:08:15.:08:22.

designed by their great`grandfather. We have survived through recessions

:08:23.:08:27.

and wars. We are first generation now. It is a long part of Australia

:08:28.:08:35.

's history. It takes over a month to make the hat. 200 hands will touch a

:08:36.:08:41.

hats before it is done. He says his siblings grew up on the factory

:08:42.:08:44.

floor, where they learnt the trade from their father and grandfather.

:08:45.:08:49.

We would vacuum the floors and do odd jobs in the holidays. We all did

:08:50.:08:57.

that. It grounded us well. His sister, Nicky, who was a director,

:08:58.:09:06.

says things have changed. It was in sole ownership are now three of us

:09:07.:09:09.

own it. There are seven children between us. We are working hard to

:09:10.:09:15.

see what the smoothest way forward will be. It has to be the best

:09:16.:09:22.

person for the job. Simple as that. If someone wants to be there, but if

:09:23.:09:27.

there are two that want to be here and one is not as well qualified,

:09:28.:09:32.

they will miss out. If that is one of my children, that is hard, but

:09:33.:09:37.

that is a decision we have made as a group. These sums so they would like

:09:38.:09:44.

to be part of the business in a future. `` these sons. I can't

:09:45.:09:50.

imagine it not been part of the family. We have all done an amazing

:09:51.:09:56.

job. Being part of an Australian icon, it would be great to continue.

:09:57.:10:06.

The family legacy is well intact. Before we go, here is a quick look

:10:07.:10:11.

at the markets. Asian stocks are in positive territory. There were gains

:10:12.:10:19.

on Friday, but there are many questions that remain over the crash

:10:20.:10:30.

of Malaysia Airlines flight MH 17. Thank you for investing your time

:10:31.:10:32.

with us.

:10:33.:10:36.

Download Subtitles

SRT

ASS