:00:00. > :00:00.into so`called Trojan Horse schools. Those are the headlines. Now on BBC
:00:00. > :00:12.News, all the latest business news live from Singapore. Nearly a week
:00:13. > :00:22.after the crash of MH17, we hear from passengers questioning the
:00:23. > :00:24.safety of global flight paths. And China is becoming an increasingly
:00:25. > :00:34.important market for Apple, with a surge in profits thanks to iPhone
:00:35. > :00:42.sales. Thank you for joining us for Asia Business Report. Six days after
:00:43. > :00:44.MH17 went down, the bodies of many passengers killed on the Malaysian
:00:45. > :00:49.Airlines flight are finally on their way to the Netherlands. In the
:00:50. > :00:58.Malaysian capital, a small number of protesters gathered. They demanded
:00:59. > :01:01.justice outside the Russian and Ukrainian embassies. Passengers are
:01:02. > :01:12.questioning who is responsible for the safety of global flight paths.
:01:13. > :01:19.Our correspondent reports. It is one of the world's busiest passenger air
:01:20. > :01:24.routes. 60 to 80 million people fly between Asia and Europe each year,
:01:25. > :01:30.and the path over Ukraine is one of the fastest. So not only Malaysia
:01:31. > :01:33.airlines, but many other carriers, including Lufthansa and Air India,
:01:34. > :01:41.were flying over the area last week, while others avoided the area.
:01:42. > :01:45.Carriers such as British Airways and Qantas avoided the route. This man
:01:46. > :01:51.was on a flight which also flew over Ukraine on the day of the crash. I
:01:52. > :02:01.am still in a strange emotional state about it. It was like, it
:02:02. > :02:04.could have been our flight. It could have been any flight. Within hours,
:02:05. > :02:09.flights started to avoid Ukraine, but the question is, why were they
:02:10. > :02:14.flying over Ukraine to begin with? Well, all the airlines we contacted
:02:15. > :02:16.said they were only using internationally approved flight
:02:17. > :02:19.paths, pointing the finger at air control and the Civil Aviation
:02:20. > :02:22.Organisation, but they both say that this is a sovereign issue, and it is
:02:23. > :02:38.up to the national authorities to declare any unsafe areas of
:02:39. > :02:42.airspace. I was really surprised they were allowed to fly over there.
:02:43. > :02:53.It is known as a war zone, they are having trouble there anyway.
:02:54. > :02:58.Lefevre, obviously, is a little `` the faith, obviously is a little
:02:59. > :03:01.shaken, but not destroyed. We take a lot of things for granted, and trust
:03:02. > :03:04.the regulators in whatever they decide for us. Airlines are keen to
:03:05. > :03:07.reassure passengers that their priority is to keep them safe, but
:03:08. > :03:09.the debate continues over whether this tragedy could have been
:03:10. > :03:11.avoided. And with no independent organisation taking direct
:03:12. > :03:21.responsibility for the safety of global flight paths, questions
:03:22. > :03:25.remain. And keeping you up`to`date with developments in the
:03:26. > :03:28.investigation into the crash, log onto our website, where you will
:03:29. > :03:32.find a special coverage including the latest news the remains of
:03:33. > :03:35.victims still at the crash site. Joko Widodo has officially been
:03:36. > :03:38.declared the winner of the Indonesian election, but his
:03:39. > :03:40.opponent is not giving up and has alleged that widespread fraud has
:03:41. > :03:55.taken place, and that he will challenge the result in the courts.
:03:56. > :03:58.Andrew White is the managing director of the American Chamber of
:03:59. > :04:00.Commerce in Jakarta, who said his investors are optimistic about the
:04:01. > :04:06.new President, but have expectations of him. Investors have already
:04:07. > :04:11.factored in the possibility of a constitutional challenge. They
:04:12. > :04:20.expect that by August at the latest there will be a decision. When the
:04:21. > :04:24.new president takes over in October, what should be his priorities, amid
:04:25. > :04:28.fuel corruption, and a slowing economy? One of his first priorities
:04:29. > :04:31.will be to get experts in the Cabinet, and investors will be
:04:32. > :04:34.looking at that. One of his first priorities in office is to deal with
:04:35. > :04:38.the US subsidy issue that is accounting for 15% of the Budget
:04:39. > :04:45.today. If that money could be freed up, it could go into infrastructure
:04:46. > :04:48.and other social programmes. So I would say those are his first two
:04:49. > :04:51.priorities. Getting the Cabinet right and dealing with the subsidy
:04:52. > :04:57.issue will be the most important things. How do you think he should
:04:58. > :05:01.handle the ongoing issue in mining? He needs to bring the companies to
:05:02. > :05:08.the table, with a contract of work that needs to be respected. And
:05:09. > :05:12.there needs to be a win`win solution for investors and the government. If
:05:13. > :05:14.that issue is not dealt with, it has tremendous implications for
:05:15. > :05:16.employment, and the loss of export earnings. Despite Indonesia's
:05:17. > :05:19.problems, many investors are honing in on the large population of
:05:20. > :05:35.individuals under 30, which could basically spur domestic demand going
:05:36. > :05:39.forward. That is one of the great assets that Indonesia has. They
:05:40. > :05:42.have, as you mentioned, a huge population under the age of 30, and
:05:43. > :05:45.a productive one, but that window is fairly tight. 20 years from now, the
:05:46. > :05:48.population will age, so the decisions that are made today will
:05:49. > :05:59.have tremendous ramifications 20 years down the line. Andrew White in
:06:00. > :06:02.Jakarta. In other business is making headlines, Credit Suisse received a
:06:03. > :06:05.huge fine following altercations on tax evasion charges from American
:06:06. > :06:12.authorities, but it was not all bad news. The loss was largely due to a
:06:13. > :06:18.large fine, following a settlement of a tax evasion charges. It was not
:06:19. > :06:21.all bad news. The private banking unit won more than $11 billion of
:06:22. > :06:29.new money in the quarter, which is a key indicator of future revenues.
:06:30. > :06:35.Microsoft saw revenues rising, but profits fall in the first quarter.
:06:36. > :06:39.It is in part due to incorporating the handset business of Nokia. It
:06:40. > :06:45.bought Nokia in April, and is down $5 billion from the same period last
:06:46. > :06:51.year. This comes after Microsoft last week said it will axe up to
:06:52. > :06:56.18,000 jobs, the largest in the company's history. Apple made a
:06:57. > :07:02.jumping profit of nearly $4.6 billion due to iPhone sales and
:07:03. > :07:12.computers. It is down to strong growth of sales in its iPhone is and
:07:13. > :07:17.computers. In particular, what was interesting, was that we heard from
:07:18. > :07:21.the chief executive, who talked about the strong performance in one
:07:22. > :07:34.specific region when it came to be sales of iPhones. That was the BRICS
:07:35. > :07:37.region, where sales rose 48%. I spoke to an analyst about the
:07:38. > :07:44.results, and this is what he had to say. So we saw them sell over 35
:07:45. > :07:46.million phones in a quarter. That is roughly 12 million a month, which is
:07:47. > :07:49.staggering given the high price point, and given that all the
:07:50. > :07:59.smartphone growth is in the developing world, where they are
:08:00. > :08:03.most expensive. $800 could easily mean a third of GDP per capita. But
:08:04. > :08:10.people are still willing to pay due to the status symbolism. The value
:08:11. > :08:17.of learning and iPhone and flashing it `` owning an iPhone. What about
:08:18. > :08:22.the iPad? Disappointing sales numbers for the second quarter in a
:08:23. > :08:31.row, down 9%. What did he say? Is he concerned? Well, I would be
:08:32. > :08:35.surprised if he wasn't. Only a few years ago Apple was described as an
:08:36. > :08:39.iPad company. These figures underscore how important the iPhone
:08:40. > :08:42.is to the firm. It is where the bulk of its profits come from, and we are
:08:43. > :08:45.reflecting on the fact that iPad sales were less than stellar, and we
:08:46. > :08:52.have not discussed its computer sales. And is now analysts are
:08:53. > :08:58.looking forward to this quarter. With the release of the iPhone six,
:08:59. > :09:04.and their partnership with IBM. What has been the share price reaction to
:09:05. > :09:09.these numbers? Initially, the shares moved down slightly. I think people
:09:10. > :09:12.were disappointed on some of the numbers, some of the sales figures
:09:13. > :09:16.that have come out. Looking forward, I think everyone will have their
:09:17. > :09:22.eyes to some timber, that is when we are awaiting an announcement on its
:09:23. > :09:31.new updated iPhone `` September. You mentioned wearables. There has been
:09:32. > :09:35.a lot of expectation given to the iWatch. Can Apple live up to that
:09:36. > :09:39.type? That will be the challenge for the company going forward, both on
:09:40. > :09:44.the operating system front and in terms of its hardware. The oil`rich
:09:45. > :09:48.kingdom of Saudi Arabia has given the green light to opening up its
:09:49. > :09:52.stock market to foreign investors. The move will allow the Middle
:09:53. > :09:55.East's biggest economy to bring in international investment and reduce
:09:56. > :10:02.its dependence on oil revenues. And speaking of the regional markets,
:10:03. > :10:06.share prices are currently in positive territory. US stocks rose
:10:07. > :10:11.amid some positive earnings and economic data. Investors continue to
:10:12. > :10:19.pay close attention to an stable regions overseas. The Hang Seng is
:10:20. > :10:26.up by 115.1 points, and the ASX in Australia is up by about 50 points.
:10:27. > :10:31.Earlier, Japan's market opened in positive territory. Thank you for
:10:32. > :10:43.investing your time with us. Goodbye for now. You're watching BBC News.
:10:44. > :10:46.The top stories this hour: Senior American intelligence officials say
:10:47. > :10:48.the most likely explanation for the Malaysia Airlines disaster over
:10:49. > :10:52.Ukraine is that pro`Russian separatists shot it down by mistake.
:10:53. > :10:55.All American airlines and a number of their European counterparts have
:10:56. > :10:56.suspended flights to Israel's international airport in Tel