12/08/2014 Asia Business Report


12/08/2014

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compensation. Now on BBC News, it is time for the

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latest business news live from Singapore. It is Asia Business

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Report with Rico Hizon. As New Zealand is up for the general

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elections, what role will the economy play? Going social. Banks

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look for ways to tap into the growing smart phone market.

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Thank you for joining us of this addition of World Business Report on

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BBC News. I am Ricco who's on. `` Rico Hizon.

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If no news is good news, perhaps that's why we hear so little about

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New Zealand's economy. But as it enters its election

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campaign period, there are clouds on the horizon. Export values dipped

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sharply in the last quarter. And dairy, which is the nation's largest

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export, is a concern with farm incomes forecast to fall 3.5 billion

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dollars or 1.5% of GDP over the next year. Earlier, my colleague, Rico

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Hizon, spoke to ANZ's Chief Economist, Cameron Bagrie, in

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Wellington and asked if he was concerned about the overall outlook

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for the economy. Generally, the economic performance

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has been rock solid. The New Zealand economy has been turned into a rock

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star economy. We have seen economic cracks. Dairy prices have come under

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pressure. The housing market's looking soft under the bonnet. New

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Zealand is getting thrown around by global and local gyrations. You have

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to learn how to rock and roll if you want to be an economic rock star.

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Under the bonnet, the economy is working well. If it is in a rock and

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roll status, what else would you like to see from the national party

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led by the PM? They are hitting the right notes with a strong focus on

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driving an efficient and productive economy across the state sector with

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strategic priorities rebuilding Christchurch. We are turning

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substantial deficits into fiscal surplus so that the government isn't

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looking at borrowing lots of money but driving efficiency across the

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economy. ANZ's chief economist from Wellington.

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India's biggest carmaker, Tatar Motors, has reported a big jump in

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profits thanks to strong sales at its Jaguar Land Rover business.

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Overall the company saw its profits triple to more than $880 million in

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the three months to June, which was far more than analysts had expected.

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The strong sales at Jaguar Land Rover offset a near 30% fall in

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domestic vehicle sales. Pharmaceutical giant GlaxoSmithKline

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is facing new claims that it bribed distributors in Syria to increase

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sales there. Reuters news agency says it has seen an anonymous e`mail

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sent to top management about the charges. The claims follow other

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corruption accusations related to GSK's business in Syria, as well as

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bribery claims in China. GSK said it would thoroughly investigate the

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claims. China's biggest re`insurer is

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reportedly planning to publicly list in Hong Kong. According to the Wall

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Street Journal, China Reinsurance is looking to raise up to about $2

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billion in an initial public offering in the first half of next

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year. It marks the Chinese government's latest attempt to open

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up its financial sector. Earlier, Juliana Liu in Hong Kong spoke to me

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about whether this listing would be welcomed.

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The news is welcomed by the investment bankers in Hong Kong who

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stand to make a lot of money from big listings like this. Hong Kong

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used to be the listings capital of the world but hasn't been the case

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to court to back years because of a drying up of listings `` going back.

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`` two years. This is a wave of another trend of companies listing

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again because of this new administration under the new

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President and Premier has done a lot to reform the financial industry

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once again. Last year we saw the establishment of a free`trade zone

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Shanghai. Later, we will see Hong Kong and Shanghai's stock markets be

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able to trade in each other's markets. We have had a wave of

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announcements about reforms in state`owned banks including China

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Everbright. China Reinsurance is an enormous insurer to other insurers.

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It enjoys a monopoly. This is unique. Investors will be

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interested. Indeed, investment bankers will rejoice. What about

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investors? It depends on the evaluation of these listings. There

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are several major Chinese companies planning to list in Hong Kong in

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2014. According to the Wall Street Journal, China Postal Bank and the

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big investment bank, the ICC, will also look at coming to market in the

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next year. Valuations are key. We saw with the China pork supply, the

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W H group, that they could not get the valuations that they hoped for.

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That is why they had to reduce the size of the listing. It looks as

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though the investment bankers and companies themselves are becoming

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more realistic about what investors are willing to pay.

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Have you ever had to pay back a friend some cash, but had to wait

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because you didn't have their bank account details? Well, banks and

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others are trying to solve the problem by letting you transfer

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money by phone or social media. Vince Tallent is the Chief Executive

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of fastacash, which is expanding in this sector and he spoke to Rico

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Hizon about security. One of our biggest concerns has

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always been security and our view is that the best way to address that is

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to work with the financial institutions, for example, banks. We

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want to make sure the security layers that banks look at are the

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same that we are looking at. Working with big banks. They see the

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opportunity in this platform and launched their own platforms. They

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are now your competitors even though you are working with them. We don't

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see them our goal is to partner with the right people who have the

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licences to enable the movement of value. We provide technology `` we

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don't see them as our competitors. We believe that what they have

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launched is narrow. We are focused on any social network, any messaging

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channel. Vince talent from fastacash.

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With the explosion of social media in recent years, you might be hard

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pressed to find a marketing expert who doesn't recommend it as part of

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any business strategy. But, is it really worth the time and effort to

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build a social media presence? Ashleigh Nghiem speaks to two

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experts about the challenges and advantages that it brings.

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It wasn't long ago that big rand firms spent millions on advertising

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in traditional media. `` brand. In this digital age, it is about direct

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engagement with consumers on phones or tablets. By lighting and sharing

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content on social media, they can help brands build brand loyalty with

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friends and family, let's go find out how they measure success ``

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liking. With me now are two social media experts, Dan Sloan from this

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and Ann Thomas Frampton from Pokhran. How much do you invest in

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social media? In addition, we have created a team of former

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journalists who have come together to create a media centre. They

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create content and we use social media as a distribution platform.

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Relative to that content, you can measure exactly how many eyes you

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are getting and ultimately what the return on investment is from hiring

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a team and making this move. Thomas, you have seen this trend

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across Asia? Absolutely. We have seen every type of company in every

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category increased their capability of communicating in an engagement

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format rather than broadcast form. With potential customers often

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through the creation of content studios or content factories or some

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similar structure that helps to create the necessary material. Is it

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all about whether something goes viral? What social needs to do is

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not look for likes or Twitter followers, it's about solving

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business problems. How do we use social media to solve a company

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problem? If it doesn't directly translate to sales and profit, why

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do it? We know stories will resonate most, fast cars, cool technology,

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the breadth of stories that we are creating guarantee loss leaders.

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They won't be universally interesting or viral, but it's all

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part of knowing more about the brand and we need to make the story. Thank

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Stan and Thomas. Social media is important in building brand loyalty

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and is one tool in modern marketing campaigns `` thanks Dan. Before we

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go, a quick look at the markets. Asian stocks are in positive

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territory. US equities ended higher overnight with investors hoping

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Russia's move to send humanitarian aid to Ukraine will ease tensions

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between the countries. If Japan and Australia are in negative territory

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but Hong Kong's Hang Seng index is slightly lower. `` Japan and

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Australia. I and Mike Embley in London with the

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main stories this hour. The Oscar`winning actor and comedian,

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Robin Williams, has died at his home in California at the age of 63.

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Police say he appears to have killed himself.

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Thousands of Iraqis who've fled islamic militants remain stranded,

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many without food or water as political disagreement

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