12/01/2016 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.

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


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


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


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


at how Jakarta is facing a waste management crisis.


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


of stabilising after more falls yesterday. As trade opens this


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


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


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


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


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


from the Chinese stock market, particularly the Shanghai stock


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


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


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


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


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


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


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


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


is helping inject some stability, particularly into the Chinese market


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


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


today. Despite these measures being implemented by Chinese regulators,


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


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


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


been promising to improve its communication with the market. I


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


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


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


this market volatility in China and the other economic problems are


affecting sentiment globally and commodity producers are bearing the


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


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


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


commodities crunch. There is certainly no doubt that through 2016


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


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


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


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


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


that. Car lovers from across the world are


in Detroit right now for the annual North American International auto


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


mainland China? Obviously, we are talking about an


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


investing heavily in trying to develop that brand.


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


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


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


waste management crisis. Jakarta relies on this one rubbish


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


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


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


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


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


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


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


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


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


thousand Islands. The community relies heavily on tourism but


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


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


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


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


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


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


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


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


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


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


business opportunity is there because people want to be


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


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


long time, that there is money in recycling.


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


region are in positive territory after US equities ended a volatile


session overnight. China jitters continue to impact the Japanese


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


investing your time with us. Goodbye for now.


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