12/01/2016 Asia Business Report


12/01/2016

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 12/01/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

will be provided, is the result of a row over new contracts.

:00:00.:00:00.

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

:00:00.:00:17.

Asian stock markets are recovering some of the losses from Monday stop

:00:18.:00:23.

we cross live to Hong Kong for the latest. Drowning in rubbish. We look

:00:24.:00:29.

at how Jakarta is facing a waste management crisis.

:00:30.:00:38.

Thank you for joining us. The Chinese markets are showing no sign

:00:39.:00:52.

of stabilising after more falls yesterday. As trade opens this

:00:53.:00:57.

morning, the Chinese currency is as much in focus as the stocks. Looking

:00:58.:01:04.

at the market now... The Hang Seng has just opened for trading and is

:01:05.:01:11.

in positive territory. The Nikkei is continuing to feel jitters after the

:01:12.:01:16.

market was closed yesterday for a public holiday. South Korea and

:01:17.:01:38.

Australia are in positive territory. We are seeing so far a mixed bag

:01:39.:01:43.

from the Chinese stock market, particularly the Shanghai stock

:01:44.:01:46.

market, which is up by one third of 1% in early trade. Thank you for

:01:47.:02:01.

joining us. It seems that we are seeing some, waters in the Chinese

:02:02.:02:11.

markets this morning. That is right. I think a lot of people are

:02:12.:02:19.

relieved. The Hang Seng is it about 0.5%, basically tracking what we

:02:20.:02:24.

have seen in the Shanghai market, which opened slightly earlier. May

:02:25.:02:31.

be one of the reasons for a slightly better day today than yesterday as

:02:32.:02:36.

the fact that the Chinese central bank said the midpoint for the

:02:37.:02:40.

Chinese currency steady from where it was said yesterday. I think that

:02:41.:02:56.

is helping inject some stability, particularly into the Chinese market

:02:57.:02:59.

this morning. And Reuters is reporting that the central bank will

:03:00.:03:04.

be injecting about $12 billion of liquidity into the money market

:03:05.:03:14.

today. Despite these measures being implemented by Chinese regulators,

:03:15.:03:19.

there seems to still be no trust among investors to really come back

:03:20.:03:24.

in a big way into the mainland markets, despite all of these

:03:25.:03:33.

initiatives. I think that you are right. The Central Bank of China has

:03:34.:03:37.

been promising to improve its communication with the market. I

:03:38.:03:43.

think that investors are not rating how well they have been doing in

:03:44.:03:49.

terms of communication. That as well as genuine worries about the state

:03:50.:03:53.

of the economy are still continuing to affect markets. Thank you. All of

:03:54.:04:06.

this market volatility in China and the other economic problems are

:04:07.:04:10.

affecting sentiment globally and commodity producers are bearing the

:04:11.:04:19.

brunt. Alcoa posted better-than-expected fourth-quarter

:04:20.:04:25.

numbers but reported a loss of about $500 million. They have been hit

:04:26.:04:31.

hard by the, which is crunch, with shares falling nearly 50%. -- by the

:04:32.:04:41.

commodities crunch. There is certainly no doubt that through 2016

:04:42.:04:47.

if we see this weakness in commodities continue, we will see

:04:48.:04:51.

companies beginning to look too in depth -- divest their dismisses and

:04:52.:04:59.

take further cost-cutting. -- divest their businesses. You can really see

:05:00.:05:07.

that companies are cutting costs out and we think that through 2016, the

:05:08.:05:11.

big resource companies, especially in Australia, will continue to do

:05:12.:05:13.

that. Car lovers from across the world are

:05:14.:05:22.

in Detroit right now for the annual North American International auto

:05:23.:05:27.

show. How have the major car giants been affected by the slowdown in

:05:28.:05:28.

mainland China? Obviously, we are talking about an

:05:29.:05:38.

autoshow in North America, which is just coming off a record year for

:05:39.:05:42.

sales full of unsurprisingly, many of the people I have been speaking

:05:43.:05:50.

to have been offbeat. But when it comes to China, -- upbeat. But when

:05:51.:06:00.

it comes to China, they have not got much less do will be for them. They

:06:01.:06:16.

feel is fairly flesh. -- bullish. We just completed a number of new

:06:17.:06:19.

plants in the country, so we are still bullish and we still have the

:06:20.:06:25.

long-term growth plans in China that are still very positive. Does that

:06:26.:06:32.

mean you will outpace sales this year? Our expectation is that the

:06:33.:06:38.

market will grow moderately. The reason for that is that the

:06:39.:06:44.

government will be supporting auto industry sales. They are also quite

:06:45.:06:51.

bullish about the Chinese auto market. What are some of the trends

:06:52.:07:02.

in Detroit? This year, it has actually been calmer than before. I

:07:03.:07:10.

think because vehicles are selling well, we have seen a lot of

:07:11.:07:13.

practical cars but not much that really gets the pulse racing. One

:07:14.:07:18.

thing I want to show you... You may be familiar with this because it is

:07:19.:07:27.

made by Hyundai, but this vehicle is actually making its debut for the

:07:28.:07:31.

first time here in North America in Detroit. It is part of Hyundai's

:07:32.:07:37.

attempt to make further inroads into the luxury market. They have been

:07:38.:07:45.

investing heavily in trying to develop that brand.

:07:46.:07:49.

Jakarta is one of the world 's largest megacities and its growing

:07:50.:07:54.

middle class is producing more and more trash. There are not enough

:07:55.:08:00.

garbage trucks or space for the waste. The country is now facing a

:08:01.:08:02.

waste management crisis. Jakarta relies on this one rubbish

:08:03.:08:16.

dump on the outskirts of the city. BJ, lorries bring in 10,000 tons of

:08:17.:08:23.

rubbish. -- every day. A lot of the waste never makes it anywhere near

:08:24.:08:27.

the landfill, ending up here in the river. It is estimated around seven

:08:28.:08:31.

football fields per day of rubbish ends up here. There has been heavy

:08:32.:08:37.

rain lately, so the river is cleaner than usual. Still, every five

:08:38.:08:41.

minutes, we have to stop and pull out plastic from our engine.

:08:42.:08:48.

TRANSLATION: There is a lot of rubbish here and it is overflowing

:08:49.:08:54.

into the river. 200 kilometres from the coast, this is where some of the

:08:55.:08:59.

waste ends up, washing ashore on these beautiful beaches of the

:09:00.:09:02.

thousand Islands. The community relies heavily on tourism but

:09:03.:09:08.

swimming here is like swimming in a sea of plastic. TRANSLATION: Most of

:09:09.:09:19.

the Savage comes from Jakarta. 12 heavily polluted rivers empty out

:09:20.:09:22.

into the bay. -- most of this rubbish comes from Jakarta. A study

:09:23.:09:31.

by the university of Georgia release this year found the water around

:09:32.:09:34.

Indonesia as the world's second-highest amount of plastic.

:09:35.:09:44.

The government is paying the screen is $200 per month to pick up the

:09:45.:09:47.

rubbish. It is then shipped back to that one rubbish dump in Jakarta. To

:09:48.:09:55.

offer an alternative, this man set up a small recycling company when

:09:56.:10:00.

you go. We want to make zero waste. Zero waste is the Smiths. Companies

:10:01.:10:05.

and housing complexes train them to collect waste and recycle it. The

:10:06.:10:13.

business opportunity is there because people want to be

:10:14.:10:19.

responsible. There is a desire among people to recycle. He says the

:10:20.:10:25.

government and investors are slowly realising what they have known for a

:10:26.:10:28.

long time, that there is money in recycling.

:10:29.:10:33.

Taking a quick look at the markets, now, most stocks in the Asia-Pacific

:10:34.:10:39.

region are in positive territory after US equities ended a volatile

:10:40.:10:53.

session overnight. China jitters continue to impact the Japanese

:10:54.:10:57.

market and the Chinese stock markets are currently flat. Thank you or

:10:58.:11:01.

investing your time with us. Goodbye for now.

:11:02.:11:05.

The top stories this hour: Fans around

:11:06.:11:07.

the world have been celebrating the life and music of David Bowie,

:11:08.:11:11.

Download Subtitles

SRT

ASS