18/09/2014 Asia Business Report


Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.

Similar Content

Browse content similar to 18/09/2014. Check below for episodes and series from the same categories and more!



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


America's central bank makes it clear it is in no rush to raise the


cost of borrowing. The largest e`commerce site in the world,


Alibaba, gets set for what could be the biggest ever public share


listing. Welcome to Asia Business Report.


Is the American economy strong enough to survive without emergency


help Western interest rates have been at record lows since 2008 and


billions has been pumped into the economy. In Washington, the US


Federal Reserve made it clear while stimulus measures might be ending,


it's not rushing to raise the cost of borrowing.


Here at the central bank, the focus was on whether change would be


occurring in the language to describe a rise in interest rates.


That's because the Fed has insisted it won't raise rates until


considerable time after the end of its economic stimulus programme.


With that expiring next month, tension shift to when rates might


rise. The chair of the Fed insisted that guidance of considerable time


shouldn't be linked to a specific date. I want to emphasise that there


is no mechanical interpretation of what the term considerable time


means. As I have repeatedly said, the decisions the committee makes


about what is the appropriate time to begin raising its target for the


federal funding rate will be dated depending. What's the point of


forward guidance if not linked with a date? The Fed needs to adapt to


changing economies. Unemployment is falling, inflation coming back in


line, but it needs the flexibility to adapt to changing economic


conditions. Raising rates too quickly could choke an economic


recovery. Keep them too low for too long and the economy could spiral


out of control. America has been awash with cheap cash through low


interest rates and economic stimulus. Those emergency measures


can't last indefinitely. Shares in Sony have fallen by 12% in


Tokyo today after they said it stands to lose $2 billion this year.


That's more than four times its forecast of just a few months ago.


The company blames a downturn in mobile phone business for the


estimated net loss. Sony has promised a turnaround but will it


deliver? I spoke earlier with a partner at frost and telephone and


asked him if Sony's troubles were linked with a smart phones `` Frost


and Sullivan. It is a balance sheet. They are taking the goodwill they


had in the business. Having said that, the forecast has been lowered.


The positioning is muddied. They aren't at the top end. They aren't a


follower. They aren't acting at the low end. They are in a muddled


position. It isn't the first choice of the customer. Zero at the mass


market. Any indication they are addressing the issues? Apple has


released new products. Samsung will react. There are so many other


brands in the market. I don't see that changing. They are launching a


new product. I don't see anything that will make it a category leader.


I don't see anything that will attract it for the small market.


They don't have a strategy if you look at what they have done. They


will continue to muddle, begging the question, should they be in the


business? Official figures in Japan show exports fell by 1.3% from one


year ago. The data shows Japan shipments to the US declined in


August, adding to concerns of the third`largest economy mightn't be


able to rely on a pick up in trade to help recover from the April tax


hike. News Corp demands of the European Commission have a tough


approach with Google. They say the search engine has


become a platform for piracy and that powers increase in every day


with Google. Google said it tackles piracy rigourously.


EBay has been compromised with users who clicked on some links diverted


to a site designed to steal their credentials.


It was set up to look like eBay's welcome page. Motorists in the UK


are warned about the dangers of using smart watches while driving.


The wrist device are covered by other laws designed to stop people


checking gadgets on the move but officials say any accidents caused


wide drivers distracted by the device will result in severe


penalties. Currency and market watchers are


waiting to see how Scotland votes in its referendum on Friday. Some tip


the pound to head for a fall if it is a yes vote. I spoke earlier with


Tony Nash from Delta economics. If there is a yes vote there will be


volatility, some say 10%. It depends on how people calibrate the value of


that pound. What is the GDP contribution? What stays with


England? The separation isn't for some time. The volatility we will


see is people figuring out the calculation. There are so many


unknowns. The issue of currency and what Scotland users, sharing the


pound, the euro, that isn't decided. That isn't decided yet. Until it is,


it will be difficult to assign a value. Do you see the pound falling


as much as 10% as some predict? It is possible but it depends on the


tone from both sides. If you assume a yes vote, is there an agreeable


tone? Many small countries don't have their own country, it currency.


`` their own currency. Discussion has said that Scotland can't use the


pound when a lot of other countries do that with other currency. An


agreeable tone would help to calm the market and ease volatility. Lots


of countries hold foreign currency in the pound. What impact in the


region? Depending on the value and volatility, if there is a devalued


pound, countries could look at their allocation of the pound, the


third`largest reserve currency globally. If people retain a certain


value to their reserve holdings, they might up their holdings or


switch to other currencies. Not too long and we will know the outcome of


the referendum. One of the world's biggest offerings will take place in


New York with China's leading e`commerce site Ali Bubba expected


to complete it they'll all shares to investors on Thursday `` Alibaba.


Trading opens on Friday to the public. What can the company expect


from investors? The big apple, America's financial


centre. New Yorkers have a reputation as a tough crowd to


please especially with investment as massive Chinese company at Alibaba,


will soon discover when shares begin trading here at the New York stock


exchange. In 20 years trading, it has been one of the biggest events I


have witnessed. Inside this emblem of capitalism, Alibaba, trading and


Alibaba, is about to have what could be the biggest stock offering on the


planet, bigger than Facebook. Such is the anticipation for this trader


who has had a request for shares by a Chinese social media. I am active


on Chinese social media and I have had people chatting with me asking


if I can connect them with their IPO team because they want to buy two `5


million shares of the IPO. Why all the hype? This internet analyst


explains. The company is poised to take advantage of the largest


emerging middle class in the world, China, and the largest consumer


class in the history of the world, China. Alibaba's success has made it


the biggest force in Chinese internet. It's helped turn its


founder Jack Meagher from a teacher into one of China's richest men. ``


Jack Ma. Investors have been told to trust Jack, but should they? This


company comes with unusual risk, including a unique owning structure,


giving Mr Ma control. Despite the risk it appears there isn't a


shortage of investors in the world largest economy covering for Alibaba


in the rise of the world's second`largest economy.


A look at the market and you can see the turnaround in trade this


morning. The Nikkei is up, the Hang Seng and Australia are down despite


those comments from the Federal Reserve in the US. That is it from


this edition of Asia Business Report. Thank you for watching.


Report. I am Mike Embley with the main news


stories. With hours to go before polls open,


both sides in the Scottish referendum campaign have held


rallies as they made their final efforts to win over undecided


voters. President Obama says American forces


won't have a combat mission in Iraq, the day after his top general


Download Subtitles