22/07/2014

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:00:00. > :00:00.the collapse of the trial of the pop star, Tulisa Contostavlos. She'd

:00:00. > :00:00.been accused of drugs offences which she had always denied. Now on BBC

:00:00. > :00:16.News all the latest business news live from Singapore.

:00:17. > :00:24.Fuel subsidies as we await the final count of Indonesia's collection, we

:00:25. > :00:27.look at a key economic issues facing the new president. Subsidizing

:00:28. > :00:32.petrol has led to a huge deficit which is unsustainable for their

:00:33. > :00:43.economy. Shanghai's shut down, a food scare in China said to be

:00:44. > :00:51.selling out of date meat. Welcome to Asia Business Report. Indonesia is

:00:52. > :00:53.set to announce the winner of the presidential election today with

:00:54. > :01:01.almost all of the votes counted. Most private tallies give Joko

:01:02. > :01:05.Widodo a slim lead over his rival. Whoever takes over as president will

:01:06. > :01:12.have to tackle the issue of fuel subsidies, the main cause of their

:01:13. > :01:18.current deficit. Now we go to our correspondant. Every year, Indonesia

:01:19. > :01:23.spends $20 billion subsidizing fuel for its citizens. Petrol is around

:01:24. > :01:29.56 cents a leader which means that they are paying some of the cheapest

:01:30. > :01:34.prices in the world for their fuel. This is a gas guzzling country and

:01:35. > :01:41.demand is high with the middle class anymore than ever before `` paying

:01:42. > :01:47.more. Fuel subsidies only benefit the wealthy and Indonesia and

:01:48. > :01:51.raising subsidies is unlikely to be popular. TRANSLATION: I don't agree

:01:52. > :01:58.with the decision to get rid of subsidies. They keep raising

:01:59. > :02:02.prices, it is enough. I guess the subsidies must be reduced but it

:02:03. > :02:08.would be better if they could hand back some cash to the poor in some

:02:09. > :02:11.other way. Analyst say that the reality is that Indonesia no longer

:02:12. > :02:16.has a choice when it comes to raising fuel prices. Subsidizing

:02:17. > :02:21.petrol has led to a huge deficit which is unsustainable for their

:02:22. > :02:24.economy and could prove to be dangerous as this country tries to

:02:25. > :02:31.maintain economic stability in the future.

:02:32. > :02:37.Malaysian Airlines faces a difficult road ahead as it tries to restore

:02:38. > :02:40.its reputation in the wake of its disasters but could the flood of

:02:41. > :02:48.compensation claims also affect the airline's Bottom Line? Joseph

:02:49. > :02:54.Wheeler is an expert in this issue and he gave us his estimate on how

:02:55. > :03:00.much the claims are likely to cost. A lawsuit of this size, typically

:03:01. > :03:12.the claims could run to hundreds of millions of dollars. And currently

:03:13. > :03:19.they are recovering from the loss of MH370. Is there any prospect of

:03:20. > :03:25.getting back the original compensation money given that it is

:03:26. > :03:33.possible they are not to blame? Only time will tell. History has shown us

:03:34. > :03:37.that in cases like this, an admission by a government or

:03:38. > :03:44.persuasion through political efforts can result in that sort of

:03:45. > :03:49.compensation. For full compensation to be payable to passengers, they

:03:50. > :03:54.would be subject to the Montreal convention which covers proven

:03:55. > :04:00.losses but does not cover all of the losses that these families are

:04:01. > :04:02.tragically facing now. Could they be legally negligent given that the

:04:03. > :04:08.decision was to fly through a war zone? Negligence is a curious issue

:04:09. > :04:14.when it comes to air crash cases. It is not applicable. In terms of

:04:15. > :04:22.liability of the air carrier, except in so far as the measure of

:04:23. > :04:29.damages. But with all of these compensation being paid, could the

:04:30. > :04:32.airline go bankrupt? There have been a lot of questions about the

:04:33. > :04:37.financial capacity of Malaysian Airlines but what people must

:04:38. > :04:41.remember with the international treaty is that the airline must be

:04:42. > :04:49.fully insured for losses of this kind. He is an expert in aviation

:04:50. > :04:57.compensation claims and joined us from Brisbane. Keep up`to`date with

:04:58. > :05:03.all the latest developments into the MH17 crash right here on BBC News.

:05:04. > :05:07.Log onto our website where you will find special coverage including news

:05:08. > :05:17.that revels in Ukraine have handed over the flight data recorders to

:05:18. > :05:19.Malaysian authorities. British regulators are looking over

:05:20. > :05:25.allegations of price`fixing. The Serious Fraud Office is looking into

:05:26. > :05:27.alleged fraudulent conduct and more than a dozen international agencies

:05:28. > :05:33.are investigating claims of price manipulation. It is alleged that

:05:34. > :05:42.online chat rooms were used to fix benchmark prices. The board of Time

:05:43. > :05:52.Warner has taken steps to fend off the takeover bid of Rupert Murdoch.

:05:53. > :06:03.Last week they rejected a $75 billion takeover offer from the

:06:04. > :06:06.media giant. Yahoo has acquired an application analytics company called

:06:07. > :06:11.Flurry to help boost advertising revenue from smart phones. Flurry

:06:12. > :06:17.helps out developers learn more about their users and deliver more

:06:18. > :06:20.personalized ads to them. Details of not been revealed but some are

:06:21. > :06:24.saying that they paid up to 300 million US dollars. A factory in

:06:25. > :06:30.Shanghai has been shut down for selling out of date meat two

:06:31. > :06:41.restaurants across China including McDonald's and KFC. It is the latest

:06:42. > :06:45.in a number of food scares. This was triggered after a report on

:06:46. > :06:52.television which said that the supplier who was selling this meat

:06:53. > :06:57.had passed its sell by date. Oath of the giants involved, McDonald's and

:06:58. > :06:59.KFC say that when they found out, they immediately stopped supplies

:07:00. > :07:03.and will carry out investigations into how this could've happened in

:07:04. > :07:08.the first place. It is the latest in a long line of food safety scares in

:07:09. > :07:14.China that have damaged consumer confidence. Generally speaking,

:07:15. > :07:19.foreign brands are seen as more reliable here that in terms of KFC,

:07:20. > :07:24.is is the second safety scare for them in 12 months, the last one

:07:25. > :07:30.within December and sales slumped after that. With this latest scare

:07:31. > :07:34.at more than 4000 KFC restaurants in China, a will once again be worried

:07:35. > :07:45.that this will affect their bottom line `` they. In other news, Netflix

:07:46. > :07:52.reported profits of $71 billion, more than a year ago compared to

:07:53. > :08:02.last year's levels. The streaming video firm now has 50 million users

:08:03. > :08:07.in over 40 countries. Huawei is reporting a 93% jump in sales for

:08:08. > :08:11.the first six months of the year. They have traditionally concentrated

:08:12. > :08:14.on making telecoms network equipment but its decision to diverse affiant

:08:15. > :08:27.into fast`growing sectors like smart phones has seen it become one of the

:08:28. > :08:30.world's biggest manufacturers. Shares in Candy Technologies did

:08:31. > :08:40.well overnight on the NASDAQ apparently because the government of

:08:41. > :08:47.China excluded electronic vehicle makers from its programme.

:08:48. > :08:55.It may be convenient to check on your laundry or car from your

:08:56. > :09:01.thermostat with these new electronic devices. We're going to hear more

:09:02. > :09:06.about it. Some of these guys in the hacker community are very talented

:09:07. > :09:09.but the good news is, there are a lot of smart people who have made

:09:10. > :09:16.the security profession their career now. It is becoming a path for smart

:09:17. > :09:20.developers, people who are excellent in the business field and we are

:09:21. > :09:26.seeing a huge growth in the security community to counteract that kind of

:09:27. > :09:31.hacking. These devices are already widely used in the United States.

:09:32. > :09:35.You can control your thermostat and washing machine. Is this technology

:09:36. > :09:41.already being used widely in Asia? It is Ground Zero. If you think

:09:42. > :09:47.about the massive penetration of smartphones, and how many things are

:09:48. > :09:53.now connected to your smart phone. Asia is a very interesting place

:09:54. > :09:56.because it is the place that many companies are starting to run early

:09:57. > :10:05.experiments in getting the product out to market. If you are thinking

:10:06. > :10:13.about getting an Uber in Korea, you had better be quick as authorities

:10:14. > :10:18.want to ban it. The City Council of Seoul is worried that it creates

:10:19. > :10:23.unfair competition for taxi drivers. Before we go, here is a

:10:24. > :10:28.quick look at the market. Asian markets are currently mixed. Thank

:10:29. > :10:39.you for investing your time with us.

:10:40. > :10:44.Welcome to BBC News. I'm Adnan Nawaz. The top stories this hour.

:10:45. > :10:48.Pro` Russian rebels in eastern Ukraine have handed over the black

:10:49. > :10:51.box recorders for flight MH17 to Malaysian officials and agreed to a

:10:52. > :10:56.ceasefire around the crash site. The train carrying the bodies of those

:10:57. > :10:57.killed in the disaster is transferring them to Dutch