08/12/2015 Asia Business Report

Stacking one on top of the other. Overcapacity and slowing global

trade. Results from a giant merger. More on the way. And we go on a set

of a Filipino variety show which has broken social media records. Find

out why they have a long-term future. Good morning, Asia, hello,

world. Thank you for joining us on Asia Business Report. I am Rico

Hizon in Singapore. A record merger is on the cards in the global

shipping industry. In a 2.4 billion deal, they have agreed to by the

Orient Lines. It could be the biggest deal in almost a decade. --

buy. We have the details. This is one of Asia's is used ports. A major

player that has helped them turn into a shipping hub is this. --

busiest. It started at the national shipping line. Today, it is one of

the world's largest. 92 vessels servicing over 100 ports worldwide.

But slowing trade has hit them and they have racked up $4 billion in

debt. So they have been looking for a suitor. For us to compete

effectively we will require significant capital investment to

achieve the scale that is necessary for us to improve our competitive

position and stay competitive in this industry. And to be able to

take the capital investment in spite of the week conditions of the

industry. Now, this deal could be one of the biggest ever in the

global shipping industry. Companies have been under pressure to cut

costs, fell off the assets. -- there. Expect more consolidation to

come with next step's figures looming over us. We ask Lloyd's

whether more mergers are on the way. We already know there is a guarantee

coming from China between cost you an China Shipping. The two largest

shipping industries in the country. And the container lines for those

two companies will end up being the fourth largest in the world after

NOL. Is the industry consolidation help the? Of course. -- healthy. The

only way for companies to build strength is to build scale. There is

a real battle for scale going on in the market. But that doesn't stop

the problem. There is too much capacity on whether there will be

disposals and layouts. When will we see a turnaround in trade freight?

Because of the huge megaships that have come in and also the order book

we are expecting, more than 100 to come in over the next two years, the

earliest we can expect is 2017. 2016 is too early. And what about falling

oil prices? US crude at $27 per barrel. How will this impact than?

At the outset, before this extra capacity came in, it improved the

performance. -- them. They could take the lot of cost out to be but

is lower bumper price, fuel for these containerships, has been

around for a long time. -- bunker. They won't get much more help unless

it goes a good deal lower. Thank you. The continuing slow in price of

oil will affect the global economy. The prices are the lowest level

since the global financial crisis nearly seven years ago. There was a

broad sell-off of energy stocks on Wall Street and it comes after OPEC

members said they would maintain his record levels. -- these. The Sowetan

the oil prices stand at the moment. -- These are the. The lowest since

February 2009. As for Brent Crude, it is above that level. Data out of

Japan shows the economy was not actually in recession in the three

months till September. Preliminary government it has suggested that the

economy had shrunk by .8 of a percent but the latest figures

reveal that it grew by 1% in the third quarter compared to year ago

levels. The government has said Toshiba should have $60 million

fines over a profit padding scheme. It is worth looking at the possible

criminal charges over the former executives. Construction has been

halted in Beijing and half of the capital's cars taken off the streets

after the first ever red alert issued for hazardous air. This is

what we know about the code red. The bread alert status has been

raised due to unhealthy levels. -- red. Many of us watch it for

entertainment and news but advertisers are wondering if

television has a future or whether social media and the Internet will

eventually take over. This show in the Philippines, as you can see on

the screen, it drew up, it might be showing that the two are not

mutually exclusive. -- blew. It smashed the committee records in

October, generating millions of tweets in a few hours. Success

revolves around the chemistry of the stars, and they have a specific

hashtag. I asked one of TV is really dead. I don't think it is. It is

like, social media is the blood, Tete is the Dracula. You suck it out

and give the threat. -- TV. It is a symbiotic relationship. TV will not

be dead. It will go on as long as it can get this threat from social

media. SPEAKING ANOTHER LANGUAGE this is part of a new time variety

show going on for 36 years. Is it struggling financially? I would like

to say the financial aspect is not part of the programme. We are OK

with that. The problem is the challenge on how to get into social

media and the power and how to get the younger crowd, to keep them

going. Because of we do not get the younger crowd, what can happen in,

say, two years, or five years, it is like laying down the ground for the

next five years, if we cannot get the younger market and those people

who feed on social media, those people will always be on Instagram,

Facebook, social media, if we cannot get those people it will not

survive. So, what do you think is the winning formula for this

phenomenon? I don't know. I have learned many things. One, when you

see an opportunity, you have to grab it. Now that they have said they are

open to an off-camera relationship, what would you say to sceptics that

it is part of a clever marketing campaign to get more fans and

supporters? I don't want them to the visually a couple because if they

fight they will bring it on stage. But if they do, it is like with the

market, it is reality happening. That is part of the story. It is not

part of our stories of the before we go, here is a quick look at the

markets. -- stories. Asia is in negative territory. They have been

weighed down by a sharp decline in energy stocks. Japan, Hong Kong and

Australia, all in the red. Thank you for investing your time in us I am

Rico Hizon. Goodbye for now. -- us.. You are watching BBC News. Let's

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