02/09/2014 Asia Business Report


02/09/2014

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Now on BBC News, all the latest business news live from Singapore.

:00:00.:00:17.

A trade pact by November? Officials from 12 countries are negotiating in

:00:18.:00:26.

Hanoi for The Trans`Pacific Partnership.

:00:27.:00:35.

Moscow hopes that a new flight from Russia to China will bring in new

:00:36.:00:43.

customers. `` pipeline. Banks are joining us. Negotiators

:00:44.:00:48.

from 12 nations are meeting in Hanoi to thrash out an agreement on The

:00:49.:00:51.

Trans`Pacific Partnership. They failed to strike a deal on the

:00:52.:00:55.

international trade agreement so far despite several rounds of

:00:56.:00:58.

negotiations. The talks are scheduled to go for ten days. The

:00:59.:01:04.

countries are aiming to clinch a broad`based deal by the in November.

:01:05.:01:08.

Barack Obama is scheduled to make a visit to Asia at the same time. I

:01:09.:01:12.

spoke to a trade expert and asked her what are main stumbling blocks

:01:13.:01:17.

have been. The difficult issues are mostly the ones we identified from

:01:18.:01:21.

the beginning. Agricultural issues especially. Market access problems,

:01:22.:01:28.

textile issues, government procurement, intellectual property

:01:29.:01:33.

concerns. Most of them we already knew about. The only new one is the

:01:34.:01:39.

fight over state owned enterprises. How far are the Japanese and

:01:40.:01:43.

Americans the negotiating process in Mac we can see both sides agreeing

:01:44.:01:48.

by November? Both sides have to agree by November. The issue is who

:01:49.:01:53.

will blink first. They have spent a lot of hours saying no to one

:01:54.:01:57.

another. Are they finally ready to say yes? Without that peace in

:01:58.:02:04.

place, the rest of the deal cannot come together. Automobiles and

:02:05.:02:06.

agricultural products between the US and Japan. Who will blink first? Who

:02:07.:02:13.

will say yes first? There is a solution to this. It is complicated

:02:14.:02:18.

and technical. There is a solution in which they could use a mechanism

:02:19.:02:23.

under which, especially on the agricultural side, you could solve

:02:24.:02:27.

the problem. They just have to agree that that would be acceptable. I

:02:28.:02:32.

think that would work. I gather from you and what you are saying, it will

:02:33.:02:36.

be a grinding out process over the next ten days? This is a US

:02:37.:02:43.

initiative. How important is it to Asia that it be done by November? It

:02:44.:02:48.

is very important. If not done, it get caught in the electoral cycles.

:02:49.:02:55.

It may not be finished. After years of negotiating and an important deal

:02:56.:03:00.

for Asia, it could get stuck in electoral politics in the US if they

:03:01.:03:01.

do not close the deal in November. Japan and India had agreed to step

:03:02.:03:10.

up their economic and security cooperation. The move comes as the

:03:11.:03:15.

Indian Prime Minister is honoured by day visit to Japan. `` on a five`day

:03:16.:03:23.

visit. They have set a target of doubling the Japanese investment in

:03:24.:03:27.

India. Japan will help with the construction of high`speed railways

:03:28.:03:32.

and smart cities in India. They have agreed to accelerate talks on the

:03:33.:03:36.

nuclear energy pact. The trip is being seen by the two democracies as

:03:37.:03:42.

a way to balance the rising weight of China across Asia.

:03:43.:03:48.

The United rank of India has declared that a tycoon is a wilful

:03:49.:03:53.

default. He owns Kingfisher Airlines. It lost

:03:54.:03:56.

it failed to end the strike by staff who had not been paid. It will be

:03:57.:04:02.

difficult for the owner of the carrier to access more funding from

:04:03.:04:08.

traditional backing sources. Kingfisher debts have run up to

:04:09.:04:11.

nearly $1.5 billion. Airports, fuel suppliers and others are owed money.

:04:12.:04:17.

$60 million is owed to the United bank of India.

:04:18.:04:26.

The anti`trust regulator has given Microsoft 20 days to answer the

:04:27.:04:30.

questions about the compatibility of its operating system and office

:04:31.:04:36.

suite. This is coming as there is an antimonopoly investigation into the

:04:37.:04:41.

software company. It is suspected that Microsoft has not fully

:04:42.:04:45.

disclosed compatibility issues which are native to the software and the

:04:46.:04:47.

operating system. Work as big an a landmark to build a

:04:48.:04:53.

gas pipeline linking Russia and China. The Kremlin hopes that it

:04:54.:04:58.

would reduce the dependence on European buyers who have imposed

:04:59.:05:03.

economic sanctions. It will see China buying $400 billion worth of

:05:04.:05:12.

gas from Russia's oil giant, Gazprom. Russia also hope and ``

:05:13.:05:17.

hopes that it will open up new markets.

:05:18.:05:21.

President Putin, thousands of kilometres from the border with

:05:22.:05:24.

Ukraine. He is in the Siberian city to formally launch a project linked

:05:25.:05:29.

with the crisis in Russia's relations with its western

:05:30.:05:33.

neighbour. It is a new pipeline that will ultimately connect the gas

:05:34.:05:37.

fields of eastern Siberia with China and with terminals on the Pacific

:05:38.:05:42.

coast which will enable Russia to expand seaborne exports to Asian

:05:43.:05:44.

countries such as Japan and South Korea. TRANSLATION: The unit that

:05:45.:05:51.

today, we finalise a very big investment project? These years a

:05:52.:05:56.

new pipeline which will not only allow us to increase export

:05:57.:06:00.

deliveries and let us expand the geography of our exports, it will

:06:01.:06:04.

allow us to take another serious doubt, supplying gas to worry

:06:05.:06:08.

country which is especially important for the eastern parts of

:06:09.:06:12.

our country. For eastern Siberia, and the parties. Construction is now

:06:13.:06:18.

under way. At a time when the European Union is planning further

:06:19.:06:20.

sanctions against Russia. While there is no immediate suspect of a

:06:21.:06:26.

gas embargo, Europe needs the fuel too much. The crisis has highlighted

:06:27.:06:30.

the Russian dependence on the EU. The need to sell Ross `` gas there

:06:31.:06:34.

is a complicated factor for the Kremlin's foreign policy. There is a

:06:35.:06:39.

strong commercial case for relying less on European customers which

:06:40.:06:43.

account for more than 70% of their gas exports. The EU wants to reduce

:06:44.:06:48.

its dependence on Russia and is now using less gas than it did a decade

:06:49.:06:52.

ago. The continent's economic weakness, if it persists, will

:06:53.:06:57.

affect energy needs in the future. By contrast, China is now the

:06:58.:07:00.

biggest energy consumer in the world and the appetite is likely to

:07:01.:07:04.

continue growing strongly. The pipeline will offer better access by

:07:05.:07:08.

sea to other Asian markets with potential for growth. It will make a

:07:09.:07:13.

difference. The planned capacity is well short of what Russia sells to

:07:14.:07:17.

Europe currently. It will not eliminate the need to sell to a

:07:18.:07:20.

market where medical relations are to be in crisis and deeply uncertain

:07:21.:07:25.

for the future. `` current relations.

:07:26.:07:29.

If you are booking a concert ticket or a hotel room, many of us are

:07:30.:07:35.

making more online transactions than ever before. This year is to be the

:07:36.:07:39.

first time that consumers in the Asia`Pacific market will be spending

:07:40.:07:43.

more than North Americans, making this the largest e`commerce market

:07:44.:07:47.

in the world. Forecasts suggest that sales will hit more than $525

:07:48.:07:53.

billion compared to around $483 billion worth of sales in North

:07:54.:07:56.

America. This may bring huge opportunities for businesses and

:07:57.:07:58.

poses big challenges, especially to poses big challenges, especially to

:07:59.:08:02.

the banks. We speak to the regional head of the analytic company, Fido.

:08:03.:08:10.

We know that we have to be careful when we use an ATM to prevent these

:08:11.:08:15.

from stealing personal information. With the growing middle class in

:08:16.:08:19.

Asia, more people are making online transactions. What are the security

:08:20.:08:24.

risks of using phones and mobile devices to make these transactions?

:08:25.:08:28.

There is a significant shift of fraud from what used to be physical

:08:29.:08:36.

point`of`sale terminals to cart not present transactions, such as the

:08:37.:08:44.

phone and online. `` card. 70% of all card fraud in Australia is where

:08:45.:08:49.

the card is not present. That is continuing. How much is this costing

:08:50.:08:54.

the banks? What can be done to stop it? Our estimates in Asia`Pacific

:08:55.:09:00.

alone is upwards of $400 million annually. That is increasing 20 `

:09:01.:09:06.

25% per year. The syndicates can get a lot of information from and off

:09:07.:09:11.

individuals either through contacting them all in areas like

:09:12.:09:16.

social media which is being used to perpetrate fraud. How can analytic

:09:17.:09:22.

help? If you do not usually purchase expensive jewellery and suddenly

:09:23.:09:24.

there is an expensive jewellery transaction, the bank will flag it

:09:25.:09:31.

as potentially what you want. We have taken it in the next level. We

:09:32.:09:35.

are creating statistical models which have the ability to self

:09:36.:09:42.

alone. It. Transactions in real time using analytics. How do the banks

:09:43.:09:46.

build a business model around this when consumers assume that the banks

:09:47.:09:50.

will always shoulder the losses and financial burden of fraud? The banks

:09:51.:09:56.

understand that the cost to them if consumer attrition happens is

:09:57.:09:59.

significant. Consumers need to be the legend and the banks need to

:10:00.:10:04.

have strong darter security measures in order to ensure that there are no

:10:05.:10:09.

breaches. In the new digital age, banks have their jobs cut out for

:10:10.:10:18.

them. `` data security. Consumers can do something to help themselves.

:10:19.:10:23.

It is currently a lacklustre day in the Asian market. The markets are

:10:24.:10:30.

closed for Labour Day. They are still digesting the downbeat Chinese

:10:31.:10:32.

manufacturing survey. Thank you for investing time with

:10:33.:10:37.

us. Goodbye for now. The main news stories this hour: The

:10:38.:10:52.

United Nations Human Rights' Council is to send a team to Iraq to

:10:53.:10:54.

investigate alleged violations committed by Islamic State fighters.

:10:55.:10:57.

The council said it had evidence of acts of inhumanity on an

:10:58.:11:00.

unimaginable scale in Iraq and that they may amount to war crimes and

:11:01.:11:04.

crimes against humanity. Ukrainian government troops were

:11:05.:11:05.

first

:11:06.:11:07.

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